A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in tough times. Obviously, banks that are losing money are less able to do those things.
First Hawaiian Bank scored 16 out of a possible 30 on Bankrate's earnings test, beating the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, basically) by total equity. The most recent annualized quarterly return on equity for First Hawaiian Bank was 7.60 percent, below the national average of 8.10 percent.
The bank reported net income of $190.6 million on total equity of $2.52 billion for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.95 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.