UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 7.01 | Regulation FD Disclosure. |
First Hawaiian, Inc. (the “Company”), the holding company for First Hawaiian Bank, is furnishing with this Current Report on Form 8-K a copy of an investor presentation that it intends to use for any investor meetings or related interactions in 2024. A copy of the presentation also will be posted to the Company’s website (www.fhb.com) in the Investor Relations section.
Pursuant to Regulation FD, the presentation materials are furnished as Exhibit 99.1. The information in this Item 7.01 and Exhibit 99.1 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description | |
| 99.1 | Presentation Materials | |
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FIRST HAWAIIAN, INC. | ||
| Date: February 13, 2024 | By: | /s/Robert S. Harrison |
| Robert S. Harrison | ||
| Chairman of the Board, President and Chief Executive Officer | ||
| (Principal Executive Officer) | ||
Exhibit 99.1
0 Investor Presentation February 9, 2024
DISCLAIMER Forward - Looking Statements This presentation contains, and from time - to - time in connection with this presentation our management may make, forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward - looking statements reflect our views at such time with respect to, among other things, future events and our financial performance. These statements are often, but not always , m ade through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “continu e,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would,” “annualized,” and “outlook,” or the negative version of these w ord s or other comparable words or phrases of a future or forward - looking nature. These forward - looking statements are not historical facts an d are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by m ana gement, and any such forward - looking statements are subject to risks, assumptions, estimates and uncertainties that are difficult to pre dict. Actual results may prove to be materially different from the results expressed or implied by the forward - looking statements. Factors th at could cause our actual results to differ materially from those described in the forward - looking statements, including (without limitation) t he domestic and global economic environment and capital market conditions and other risk factors, can be found in our SEC filings, including, bu t not limited to, our most recent Form 10 - K and subsequent Quarterly Reports on Form 10 - Q, which are available on our website (www.fhb.com) and th e SEC’s website (www.sec.gov). Any forward - looking statement speaks only as of the date on which it is made, and we do not underta ke any obligation to update or review any forward - looking statement, whether as a result of new information, future developments or oth erwise, except as required by applicable law. Use of Non - GAAP Financial Measures The information provided herein includes certain non - GAAP financial measures. We believe that these measures provide useful inf ormation about our operating results and enhance the overall understanding of our past performance and future performance. Although t hes e non - GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytic al tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GA AP. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assess ing our performance or financial condition. The reconciliation of such measures to the comparable GAAP figures are included in the a ppe ndix of this presentation. Other References to “we,” “us,” “our,” “FHI,” “FHB,” “Company,” and “First Hawaiian” refer to First Hawaiian, Inc. and its consolid ate d subsidiaries. 1
INVESTMENT HIGHLIGHTS 2 Strong, Consistent Financial Performance Leading Position In Attractive Markets Experienced Leadership Team High Quality Balance Sheet Proven Through The Cycle Performance Well - Capitalized With Attractive Dividend 1 2 3 4 5 6
$359 $365 $357 $355 $353 $380 $387 $380 $395 $365 $310 $353 $336 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1.40% 1.47% 0.89% 0.99% 0.92% 1.37% 1.03% 1.03% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 STRONG, CONSISTENT FINANCIAL PERFORMANCE 3 Source: Public filings and S&P Global Capital IQ, as of 07 - Feb - 2024 Note: Financial data as of 31 - Dec - 2023. $10 – $50 bn banks at 31 - Dec - 2023; excluding merger targets, deposits based on publicly av ailable information as of 07 - Feb - 2023 (1) Pre - Tax, Pre - Provision Earnings, ROATA (Return On Average Tangible Assets) and ROATCE (Return On Average Tangible Common Equity) are non - GAAP financial measures. A reconciliation to the comparable FHB GAAP measures is provided in the appendix. 12.1% 18.1% 10.9% 17.4% 10.4% 15.0% 11.4% 13.9% 4.0% 8.0% 12.0% 16.0% 20.0% 24.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Pre - Tax, Pre - Provision Earnings ($mm) (1) ROATA (1) Stable Earnings Drivers ROATCE (1) Year Ended December 31 Consistent PTPP Earnings Consistent History of Strong Profitability First Hawaiian, Inc. Public U.S. Banks with $10-$50bn of Assets Year Ended December 31 ▪ Dominant loan and deposit positions in attractive markets ▪ Consistent underwriting standards with proven performance through the credit cycle ▪ Demonstrated history of disciplined expense management Year Ended December 31
NALs / Loans (6) 59.5% 57.9% FHB Peer Median 17.4% 13.9% FHB Peer Median LEADING POSITION IN AN ATTRACTIVE MARKET 4 Branch Presence Financial Overview – 12/31/2023 ($ billions) Source: Public filings and S&P Global Capital IQ as of 07 - Feb - 2024 Note: Financial data as of 31 - Dec - 2023. Market data as of 31 - Dec - 2023. (1) Based on $10 – $50 bn banks at 31 - Dec - 2023; excluding merger targets, based on publicly available information as of 07 - Feb - 2023 (2) ROATA (Return On Average Tangible Assets) and ROATCE (Return on Average Tangible Common Equity) are non - GAAP financial measures. A reconciliation to the comparable FHB GAAP measures is provided in the appendix. (3) Dividend yield based on dividend paid in 2023 and closing market price as of 31 - Dec - 2023. (4) Deposit market share based on FDIC data as of 30 - Jun - 2023. (5) Full - year ending December 31, 2023 (6) As of 31 - Dec - 2023 Company Highlights x Oldest and largest Hawaii - based bank x Full - service community bank with complete suite of products & services x Largest combined deposit base in Hawaii, Guam and Saipan (4) x Largest Hawaii - based lender x $19.3 bn assets under administration as of Dec 31, 2023 x Proven through the cycle and outstanding operating performance Efficiency Ratio (5) ROATCE (2,5) Dividend Yield (3) Maui Kahoolawe Lanai Oahu Kauai Niihau Honolulu Hawaii Island Molokai 0.13% 0.39% FHB Peer Median Market Cap $2.9 Loans $ 14.4 Assets $ 24.9 Deposits $ 21.3 Guam Saipan (1) (1) (1) (1) 122 bps 171 bps FHB Peer Median Cost of Deposits (5) (1) 1.0% 1.0% FHB Peer Median ROATA (2,5) (1) 50 branches 4.5% 3.2% FHB Peer Median (1)
HAWAII BANKING MARKET DOMINATED BY LOCAL BANKS 5 The top 4 banks account for ~93% of deposits (2) Sources: FDIC, SEC and company filings. Company filings and public information used for peers where available, otherwise reg ula tory data used. Note: Financial data as of 31 - Dec - 2023. (1) ROATCE (return on average tangible common equity) and ROATA (return on average tangible assets) are non - GAAP financial measures. Reconciliations to the comparable FHB GAAP measures are provided in the appendix. (2) Deposit market share based on FDIC data as of 30 - Jun - 2023 Branches 50 51 35 27 FTEs 2,089 1,899 968 720 Assets ($bn) 24.9 23.7 9.7 7.6 Loans ($bn) 14.4 14.0 6.2 5.4 Deposits ($bn) 21.3 21.1 8.1 6.8 2023 ROATCE (1) 17.4% 14.3% 13.2% 12.4% 2023 ROATA (1) 0.99% 0.72% 0.55% 0.78% Loan Portfolio Deposit Portfolio Hawaii Deposits 2 Balance ($bn) $19.4 $19.4 $8.2 $6.8 Share 33.5% 33.5% 14.2% 11.8 % Commercial Commercial RE Residential RE Consumer & Other Transaction Accounts Savings / MMDA Time Deposits 11% 15% 36% 30% 9% 12% 29% 34% 16% 5 % 11% 26% 48% 10% 12% 11% 29% 35% 13% 16% 36% 48% 14% 47% 39% 8% 79% 13% 21% 47% 32% 8% HELOC
HAWAII BANKS HAVE A SIGNIFICANT DEPOSIT ADVANTAGE 6 Source: S&P Global and the Federal Reserve website. (1) Deposit beta is defined as the change in deposit costs as a percentage of the change in Fed Funds over a particular period. D ep osit cost uses starting point (2Q04) to peak (3Q07); one quarter lag. (2) Includes First Hawaiian, Bank of Hawaii, American Savings, Central Pacific, Territorial Bancorp, Hawaii National. 4Q23 cost o f deposits based on publicly available information as of 07 - Feb - 2024. (3) Includes all U.S. bank holding companies excluding Hawaii - based banks. 4Q23 cost of deposits based on publicly available inform ation as of 09 - Feb - 2023 Hawaii banks experience more favorable deposit behavior across all rate cycles; Hawaii banks experienced a deposit beta ( ¹ ) of ~34% vs. ~47% for broader U.S. banks during the last rising rate cycle 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1.37 % 2.02 % 5.33 % 0.00 % 0.50 % 1.00 % 1.50 % 2.00 % 2.50 % 3.00 % 3.50 % 4.00 % 4.50 % 5.00 % 5.50 % 6.00 % 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Hawaii Banks² U.S. Banks³ Fed Funds 65bps Current Funding Advantage 3.32 % 2.01 % 5.25 % 131 bps Funding Advantage
$9.1 $9.4 $10.2 $10.5 $12.2 $12.9 $13.6 $14.7 $16.1 $16.8 $17.6 $17.2 $16.4 $19.2 $21.8 $21.7 $21.3 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 Demand 36% Money Market 18% Savings 26% Time 12% SOLID, LOW - COST CORE DEPOSIT BASE Strong brand, deep ties to the community and a leading market share position have driven an attractive, low - cost deposit base As of December 31 Deposit Portfolio Composition (as of 12/31/23) Consistent Deposit Growth ($bn) Best - in - Class Cost of Deposits 0.87 % 1.92 % 1.22 % 1.71 % 3.02 % 1.67 % – % 0.50 % 1.00 % 1.50 % 2.00 % 2.50 % 3.00 % 3.50 % '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 First Hawaiian, Inc. Public U.S. Banks with $10-$50bn of Assets Year Ended December 31 Source: Public filings and S&P Global Capital IQ, as of 07 - Feb - 2024 Note: Financial data as of 31 - Dec - 2023. $10 – $50 bn banks at 31 - Dec - 2023; excluding merger targets, based on publicly available i nformation as of 07 - Feb - 2023 Public Savings 4% Reduced Public Time Deposits by $1.5 bn in 2018 and 2019 Public Time 4% Deposits Well - Balanced Between Retail and Commercial 7 9.9 9.6 1.8 Retail Commercial Public ($ billions) at 12/31/23
$6.5 $7.9 $8.0 $8.3 $8.3 $9.0 $9.5 $10.0 $10.7 $11.5 $12.3 $13.1 $13.2 $13.3 $13.0 $14.1 $14.4 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 HIGH - QUALITY, BALANCED LOAN PORTFOLIO Steady through the cycle organic loan growth and balanced loan portfolio 8 Well - positioned to serve clients during the financial crisis Loans: $14.4 bn Loans / Deposits 84% 78% 79% 69% 70% 70% 68% 67% 69% 70% 76% 80% 69% 59% 62% 65% 67% As of December 31, Balanced Loan Portfolio (as of 12/31/23) Steady Loan Growth ($bn) Note: Financial data as of 31 - Dec - 2023 ▪ Largest Hawaii - based lender ▪ Balanced Portfolio ▪ 54% Commercial, 46% Consumer ▪ 76 % Hawaii/Guam/Saipan, 24% Mainland ▪ Commercial ▪ Hawaii’s leading commercial bank with experienced lending team. ▪ 56 % Hawaii/Guam/Saipan, 44% Mainland ▪ $ 1,646 mm Shared National Credit portfolio ▪ Participating in SNC lending for over 20 years ▪ 22 % Hawaii - based, 78% Mainland ▪ Leading SBA lender Hawaii ▪ SBA Lender of the Year (Category 1) 2017, 2018, 2021, and 2022 ▪ Leveraged SBA experience to quickly launch PPP program ▪ Originated over 10k PPP loans for over $1.4bn in principal balances in 2020 and 2021 ▪ Consumer ▪ Primarily a Prime and Super Prime lender ▪ ~90% of portfolio collateralized ▪ Financing consumer auto loans for over 40 years C&I $2,165 mm 15% CRE $4,340 mm 30% Construction $900 mm 6% Leasing $380 mm 3% Residential $4,283 mm 30% Home Equity $1,175 mm 8% Consumer Auto $693 mm 5% Credit Card $327 mm 2% Other Consumer $90 mm 1% Loan Portfolio Highlights (as of 12/31/23) $585 mm PPP loans repaid in 2021 Note: Percentages shown may not total to 100% due to rounding
0.21% 0.73% 0.09% 0.10% 0.95% 0.12% 0.00% 0.50% 1.00% 1.50% '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 PROVEN, CONSISTENT, AND CONSERVATIVE CREDIT RISK MANAGEMENT Strong through the cycle credit performance driven by conservative approach to credit risk management 9 Year Ended December 31 0.16% 0.63% 0.15% 0.39% 3.10% 0.47% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 As of December 31 1.43% 1.09% 1.18% 1.98% 1.16% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 71.4x 8.4x 3.7x 3.1x '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 As of December 31 As of December 31 First Hawaiian, Inc. Public U.S. Banks with $10-$50bn of Assets Source: Public filings and SNL Financial, available as of 07 - Feb - 2024 Note: Financial data as of 31 - Dec - 2023. $10 – $50 bn banks at 31 - Dec - 2023; excluding merger targets, based on publicly available i nformation as of 07 - Feb - 2023 NCOs / Average Loans NPAs + 90s / Loans + OREO Reserves / Loans Reserves / Non - Accrual Loans 75.0x 20.0x 10.0x
$9.1 $21.3 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 22 23 Source: Public filings and S&P Global Capital IQ as of 07 - Feb - 2024 Note: Financial data as of 31 - Dec - 2023. $10 – $50 bn banks at 31 - Dec - 2023; excluding merger targets, based on publicly available i nformation as of 07 - Feb - 2023 (1) ROATCE (Return on Average Tangible Common Equity) is a non - GAAP financial measure. A reconciliation to the comparable FHB G AAP measure is provided in the appendix. 12.1% 17.4% 10.4% 13.9% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 PROVEN THROUGH THE CYCLE PERFORMANCE 10 Through the Cycle Credit Performer Strong Profitability Consistent Deposit Growth ($ bn ) Steady, Balanced Loan Growth ($ bn ) $6.5 $14.4 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 23 NPAs + 90s / Loans + OREO ROATCE (1) First Hawaiian, Inc. Public U.S. Banks with $10-$50bn of Assets 0.16% 0.60% 0.15% 0.39% 3.10% 0.47% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 As of December 31 As of December 31 Year Ended December 31 As of December 31
WELL - CAPITALIZED WITH AN ATTRACTIVE DIVIDEND 11 Source: Public filings and S&P Global Capital IQ as of 07 - Feb - 2024 Note: Financial data as of 31 - Dec - 2023. $10 – $50 bn banks at 31 - Dec - 2023; excluding merger targets, based on publicly available i nformation as of 07 - Feb - 2023. (1) Dividends and share repurchases are subject to approval of FHI’s board of directors, future capital needs and regulatory appr ov als. (2) Dividend yield (MRQ) based on Q4 2023 dividends annualized and market data as of 31 - Dec - 2023. Robust Capital Position (As of 12/31/23) Attractive Dividend Yield (1)(2) Capital Management Approach 12.4 % 12.1 % 0.5 % 1.2 % 1.9 % 13.6% 14.5% FHI Public U.S. Banks with $10-$50bn of Assets Tier 2 NCT1 CET 1 Tier 1 Leverage 8.6% 9.9% ▪ Retain sufficient earnings to support loan growth and maintain strong capital levels ▪ Return excess capital through dividends and share repurchases ▪ Maintained quarterly dividend at $0.26/share in 2023 ▪ Stock repurchase authorization for up to $40mm of common stock during 2024 4.5% 3.2% First Hawaiian, Inc. Public U.S. Banks with $10-$50bn of Assets
12 APPENDIX
FULL SUITE OF PRODUCTS AND SERVICES 13 • Largest commercial lender in Hawaii • 62 commercial bankers (2) • Relationship - based lending • Primary focus on Hawaii, additional focus on California • C&I, leases, auto dealer flooring, CRE, and C&D • Strong relationships with proven local real estate developers • $19.3 bn (2) of AUA and 37 financial advisors (2) • Personal services include financial planning, insurance, trust, estate, and private banking • Institutional services include investment management, retirement plan administration, and custody • Mutual funds provided by Bishop Street Capital Management • 33.5% deposit market share in Hawaii (1) • Retail deposit products offered through branch, online, mobile, and direct channels • Commercial deposits, treasury and cash management products • Hawaii state and municipal relationships Commercial Lending Wealth Management Deposits • Services provided to individuals and small to mid - sized businesses • Full service branches, online and mobile channels • Exclusively in - footprint focus • First mortgages, home equity, indirect auto financing, and other consumer loans Consumer Lending • Leading credit card issuer among Hawaii banks • Approximately 156,000 accounts with more than $2.4bn annual spend (2) • Consumer, small businesses, and commercial cards • Issuer of M asterCard Credit Cards • Largest merchant processor in Hawaii • Spans Hawaii, Guam and Saipan • Over 3,800 terminals processed ~41.0 mm transactions in 2023 • Relationships with all major U.S. card companies and select foreign cards Merchant Processing First Hawaiian is a full - service community bank focused on building relationships with our customers (1) Source: FDIC as of 30 - Jun - 2023 (2) As of 31 - Dec - 2023
HAWAII IS AN ATTRACTIVE MARKET WITH STRONG ECONOMIC FUNDAMENTALS 14 • Attractive destination for domestic and international travelers • Attractive alternative for travelers concerned about international travel • Well - developed visitor industry infrastructure • High quality medical care • Strategically important • Headquarters of US Indo - Pacific Command and regional component commands: Army, Navy, Air Force, Marines • Estimated total defense spending in Hawaii in 2022: $8.8bn (3) • Defense spending is 8.9% of state GDP (3) • Over 48.5k active duty and Reserve personnel stationed in Hawaii (3) • 20k civilian employees (3) Government 20% Real Estate 21% Residential RE 23% Other 13% Transportation & Warehousing 5% Entertainment 11% Professiona l 9 % Construction 6% Retail Trade 8 % Healthcare & Education 8% Hawaii GDP by Industry (2022) (1) Visitor spending is ~19% of Hawaii GDP (2) (1) US Bureau of Economic Analysis (2) Based on $19.3bn of 2022 visitor spending according to Hawaii Department of Business, Economic Development and Tourism. Fundamental Strengths (3) defenseeconomy.hawaii.gov
GAAP TO NON - GAAP RECONCILIATIONS Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share, tangible stockholders’ equity to tangible assets and pre - tax, pre - provision earnings are non - GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. Pre - tax, pre - provision earnings are calculated by subtracting (and thereby effectively excluding) the provision for credit losses from our income before provision for income taxes. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non - GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy. The following tables provide a reconciliation of these non - GAAP financial measures with their most directly comparable GAAP measures. 15
GAAP TO NON - GAAP RECONCILIATION - ANNUAL 16 Note: Totals may not sum due to rounding. As of and for the Twelve Months Ended December 31, (Dollars in millions, except per share data) 2023 2022 2021 2020 2019 Net Income $ 235.0 $ 265.7 $ 265.7 $ 185.8 $ 284.4 Average Total Stockholders’ Equity $ 2,346.7 $ 2,321.6 $ 2,708.4 $2,698.9 $ 2,609.4 Less: Average Goodwill 995.5 995.5 995.5 995.5 995.5 Average Tangible Stockholders’ Equity $ 1,351.2 $ 1,362.1 $ 1,712.9 $1,703.4 $ 1,613.9 Total Stockholders’ Equity $ 2,486.1 $ 2,269.0 $ 2,656.9 $ 2,744.1 $ 2,640.3 Less: Goodwill 995.5 995.5 995.5 995.5 995.5 Tangible Stockholders’ Equity $1,490.6 $ 1,273.5 $1,661.4 $1,748.6 $ 1,644.8 Average Total Assets $ 24,625.4 $ 24,964.4 $ 24,426.3 $ 21,869.1 $ 20,325.7 Less: Average Goodwill 995.5 995.5 995.5 995.5 995.5 Average Tangible Assets $ 23,630.0 $ 23,968.9 $ 23,430.8 $ 20,873.6 $ 19,330.2 Total Assets $ 24,926.5 $ 24,577.2 $ 24,992.4 $ 22,662.8 $ 20,166.7 Less: Goodwill 995.5 995.5 995.5 995.5 995.5 Tangible Assets $ 23,931.0 $ 23,581.7 $ 23,996.9 $ 21,667.3 $ 19,171.2 Return on Average Total Stockholders’ Equity 10.01% 11.44% 9.81% 6.88% 10.90% Return on Average Tangible Stockholders’ Equity (non - GAAP) 17.39% 20.03% 15.51% 10.91% 17.62% Return on Average Total Assets 0.95% 1.06% 1.09% 0.85% 1.40% Return on Average Tangible Assets (non - GAAP) 0.99% 1.11% 1.13% 0.89% 1.47% Income Before Provision for Income Taxes $ 309.2 $ 351.2 $ 349.0 $ 243.7 $ 381.7 Provision For Credit Losses 26.6 1.4 (39.0) 121.7 13.8 Pre - Tax, Pre - Provision Earnings (Non - GAAP) $ 335.8 $ 352.6 $ 310.0 $ 365.4 $ 395.5
GAAP TO NON - GAAP RECONCILIATION - ANNUAL (CONTINUED) 17 Note: Totals may not sum due to rounding. As of and for the Twelve Months Ended December 31, (Dollars in millions, except per share data) 2018 2017 2016 2015 2014 2013 2012 2011 Net Income $ 264.4 $ 183.7 $ 230.2 $ 213.8 $ 216.7 $ 214.5 $ 211.1 $ 199.7 Average Total Stockholders’ Equity $ 2,457.8 $ 2,538.3 $ 2,568.2 $ 2,735.8 $ 2,698.4 $ 2,667.4 $ 2,664.2 $ 2,640.6 Less: Average Goodwill 995.5 995.5 995.5 995.5 995.5 995.5 995.5 995.5 Average Tangible Stockholders’ Equity $ 1,462.3 $ 1,542.8 $ 1,572.7 $ 1,740.3 $ 1,702.9 $ 1,672.0 $ 1,668.7 $ 1,645.1 Total Stockholders’ Equity $ 2,524.8 $ 2,532.6 $ 2,476.5 $ 2,736.9 $ 2,675.0 $ 2,651.1 $ 2,654.2 $ 2,677.4 Less: Goodwill 995.5 995.5 995.5 995.5 995.5 995.5 995.5 995.5 Tangible Stockholders’ Equity $ 1,529.3 $ 1,537.1 $ 1,481.0 $ 1,741.4 $ 1,679.5 $ 1,655.6 $ 1,658.7 $ 1,681.9 Average Total Assets $ 20,247.1 $ 19,942.8 $ 19,334.7 $ 18,785.7 $ 17,493.2 $ 16,653.6 $ 16,085.7 $ 15,246.8 Less: Average Goodwill 995.5 995.5 995.5 995.5 995.5 995.5 995.5 995.5 Average Tangible Assets $ 19,251.6 $ 18,947.3 $ 18,339.2 $ 17,790.2 $ 16,497.7 $ 15,658.1 $ 15,090.2 $ 14,251.3 Total Assets $ 20,695.7 $ 20,549.5 $ 19,661.8 $ 19,352.7 $ 18,133.7 $ 17,118.8 $ 16,646.7 $ 15,839.4 Less: Goodwill 995.5 995.5 995.5 995.5 995.5 995.5 995.5 995.5 Tangible Assets $ 19,700.2 $ 19,554.0 $ 18,666.3 $ 18,357.2 $ 17,138.2 $ 16,123.3 $ 15,651.2 $ 14,843.9 Return on Average Total Stockholders’ Equity 10.76% 7.24% 8.96% 7.81% 8.03% 8.04% 7.92% 7.56% Return on Average Tangible Stockholders’ Equity (non - GAAP) 18.08% 11.91% 14.64% 12.28% 12.72% 12.83% 12.65% 12.14% Return on Average Total Assets 1.31% 0.92% 1.19% 1.14% 1.24% 1.29% 1.31% 1.31% Return on Average Tangible Assets (non - GAAP) 1.37% 0.97% 1.26% 1.20% 1.31% 1.37% 1.40% 1.40% Income Before Provision for Income Taxes $ 358.2 $ 368.4 $ 371.8 $ 343.2 $ 344.2 $ 344.5 $ 329.8 $ 316.4 Provision For Credit Losses 22.2 18.5 8.6 9.9 11.1 12.2 34.9 42.1 Pre - Tax, Pre - Provision Earnings (Non - GAAP) $ 380.4 $ 386.9 $ 380.4 $ 353.1 $ 355.3 $ 356.7 $ 364.7 $ 358.5