Press Release

First Hawaiian, Inc. Reports First Quarter 2023 Financial Results and Declares Dividend

First Hawaiian, Inc. Reports First Quarter 2023 Financial Results and Declares Dividend

April 28, 2023 at 8:00 AM EDT

HONOLULU, April 28, 2023 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended March 31, 2023.

“Our first quarter results reflect the strength of our balance sheet, the value of our customer relationships and our commitment to the communities we serve,” said Bob Harrison, Chairman, President and CEO. “Our financial results were solid, we grew capital and our credit quality metrics remained excellent. We remain well positioned to serve our customers and the community.”

On April 26, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on June 2, 2023, to stockholders of record at the close of business on May 22, 2023.  

First Quarter 2023 Highlights:

  • Net income of $66.8 million, or $0.52 per diluted share
  • Total loans and leases increased $129.3 million versus prior quarter
  • Total deposits decreased $407.5 million versus prior quarter
  • Net interest margin decreased 4 basis points to 3.11%
  • Recorded a $8.8 million provision for credit losses
  • Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet
Total assets were $24.9 billion as of March 31, 2023, compared to $24.6 billion as of December 31, 2022.

Gross loans and leases were $14.2 billion as of March 31, 2023, an increase of $129.3 million, or 0.9%, from $14.1 billion as of December 31, 2022.

Total deposits were $21.3 billion as of March 31, 2023, a decrease of $407.5 million, or 1.9%, from $21.7 billion as of December 31, 2022.  

Net Interest Income
Net interest income for the first quarter of 2023 was $167.2 million, a decrease of $4.5 million, or 2.6%, compared to $171.8 million for the prior quarter.  

The net interest margin was 3.11% in the first quarter of 2023, a decrease of 4 basis points compared to 3.15% in the prior quarter.

Provision Expense
During the quarter ended March 31, 2023, we recorded a $8.8 million provision for credit losses. In the quarter ended December 31, 2022, we recorded a $3.0 million provision for credit losses.

Noninterest Income
Noninterest income was $49.0 million in the first quarter of 2023, an increase of $0.9 million compared to noninterest income of $48.2 million in the prior quarter.     

Noninterest Expense
Noninterest expense was $118.6 million in the first quarter of 2023, an increase of $4.6 million compared to noninterest expense of $113.9 million in the prior quarter.  

The efficiency ratio was 54.5% and 51.5% for the quarters ended March 31, 2023 and December 31, 2022, respectively.

Taxes
The effective tax rate was 24.8% and 22.8% for the quarters ended March 31, 2023 and December 31, 2022, respectively.

Asset Quality
The allowance for credit losses was $147.1 million, or 1.03% of total loans and leases, as of March 31, 2023, compared to $143.9 million, or 1.02% of total loans and leases, as of December 31, 2022. The reserve for unfunded commitments was $36.2 million as of March 31, 2023, compared to $33.8 million as of December 31, 2022.   Net charge-offs were $3.2 million, or 0.09% of average loans and leases on an annualized basis, for the quarter ended March 31, 2023, compared to net charge-offs of $3.5 million, or 0.10% of average loans and leases on an annualized basis, for the quarter ended December 31, 2022. Total non-performing assets were $13.8 million, or 0.10% of total loans and leases and other real estate owned, on March 31, 2023, compared to total non-performing assets of $12.0 million, or 0.09% of total loans and leases and other real estate owned, on December 31, 2022.

Capital
Total stockholders' equity was $2.3 billion on March 31, 2023 and December 31, 2022.    

The tier 1 leverage, common equity tier 1 and total capital ratios were 8.26%, 11.97%, and 13.09%, respectively, on March 31, 2023, compared with 8.11%, 11.82%, and 12.92%, respectively, on December 31, 2022.

The Company did not repurchase any shares in the first quarter.

First Hawaiian, Inc.
First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii.  Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com.

Conference Call Information
First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time.

To access the call by phone, please register via the following link: https://register.vevent.com/register/BI2a46e3679b7649d98326df98e6359e6f, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings.   The archive of the webcast will be available at the same location.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Further, statements about the potential effects of the COVID-19 pandemic on our businesses and financial results and conditions may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the ongoing impacts of COVID-19, the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2022.

Use of Non-GAAP Financial Measures
Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. 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.

Table 12 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.

Investor Relations Contact:
Kevin Haseyama, CFA
(808) 525-6268
khaseyama@fhb.com
Media Contact:
Lindsay Chambers
(808) 525-6254
lchambers@fhb.com


                         
Financial Highlights   Table 1
    For the Three Months Ended  
    March 31   December 31   March 31  
(dollars in thousands, except per share data)   2023      2022      2022
 
Operating Results:                        
Net interest income   $ 167,247     $ 171,794     $ 133,872    
Provision for credit losses     8,800       2,956       (5,747 )  
Noninterest income     49,023       48,151       41,380    
Noninterest expense     118,567       113,922       104,042    
Net income     66,818       79,588       57,719    
Basic earnings per share     0.52       0.62       0.45    
Diluted earnings per share     0.52       0.62       0.45    
Dividends declared per share     0.26       0.26       0.26    
Dividend payout ratio     50.00   %   41.94   %   57.78   %
Performance Ratios(1):                        
Net interest margin     3.11   %     3.15   %   2.42   %
Efficiency ratio     54.46   %     51.47   %   59.04   %
Return on average total assets     1.10   %     1.28   %   0.93   %
Return on average tangible assets (non-GAAP)(2)     1.15   %     1.34   %   0.97   %
Return on average total stockholders' equity     11.78   %     14.27   %   9.19   %
Return on average tangible stockholders' equity (non-GAAP)(2)     20.78   %     25.93   %   15.08   %
Average Balances:                        
Average loans and leases   $ 14,079,337     $ 13,876,136     $ 12,819,612    
Average earning assets     21,873,259       21,856,135       22,463,209    
Average assets     24,548,124       24,575,648       25,080,453    
Average deposits     21,468,624       21,725,177       21,960,819    
Average stockholders' equity     2,299,422       2,213,030       2,547,865    
Market Value Per Share:                        
Closing     20.63       26.04       27.89    
High     28.28       27.16       31.16    
Low     19.68       24.06       26.93    


    As of   As of   As of  
    March 31   December 31   March 31  
(dollars in thousands, except per share data)   2023   2022   2022  
Balance Sheet Data:                          
Loans and leases   $ 14,221,272     $ 14,092,012     $ 12,891,743    
Total assets     24,884,207       24,577,223       25,042,720    
Total deposits     21,281,500       21,689,029       22,270,430    
Short-term borrowings     250,000       75,000          
Long-term borrowings     500,000                
Total stockholders' equity     2,329,012       2,269,005       2,285,149    
                           
Per Share of Common Stock:                          
Book value   $ 18.26     $ 17.82     $ 17.90    
Tangible book value (non-GAAP)(2)     10.45       10.00       10.10    
                           
Asset Quality Ratios:                          
Non-accrual loans and leases / total loans and leases     0.10   %     0.08   %   0.07   %
Allowance for credit losses for loans and leases / total loans and leases     1.03   %     1.02   %   1.17   %
                           
Capital Ratios:                          
Common Equity Tier 1 Capital Ratio      11.97   %     11.82   %   12.27   %
Tier 1 Capital Ratio     11.97   %     11.82   %   12.27   %
Total Capital Ratio     13.09   %     12.92   %   13.48   %
Tier 1 Leverage Ratio     8.26   %     8.11   %   7.50   %
Total stockholders' equity to total assets     9.36   %     9.23   %   9.13   %
Tangible stockholders' equity to tangible assets (non-GAAP)(2)     5.58   %     5.40   %   5.36   %
                           
Non-Financial Data:                          
Number of branches     51       51       51    
Number of ATMs     296       294       298    
Number of Full-Time Equivalent Employees     2,100       2,063       2,022    

________________________
(1)   Except for the efficiency ratio, amounts are annualized for the three months ended March 31, 2023, December 31, 2022 and March 31, 2022.

(2)   Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets 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. For a reconciliation to the most directly comparable GAAP financial measure, see Table 12, GAAP to Non-GAAP Reconciliation.


                       
Consolidated Statements of Income   Table 2
    For the Three Months Ended
    March 31   December 31   March 31
(dollars in thousands, except per share amounts)   2023   2022   2022
Interest income                      
Loans and lease financing   $ 172,339     $ 159,526     $ 103,732  
Available-for-sale investment securities     18,688       18,714       32,107  
Held-to-maturity investment securities     18,957       19,137        
Other     3,561       3,088       782  
Total interest income     213,545       200,465       136,621  
Interest expense                      
Deposits     43,284       28,202       2,749  
Short-term and long-term borrowings     2,563       469        
Other     451              
Total interest expense     46,298       28,671       2,749  
Net interest income     167,247       171,794       133,872  
Provision for credit losses     8,800       2,956       (5,747 )
Net interest income after provision for credit losses     158,447       168,838       139,619  
Noninterest income                      
Service charges on deposit accounts     7,231       7,376       7,501  
Credit and debit card fees     16,298       16,376       14,850  
Other service charges and fees     9,162       9,185       9,654  
Trust and investment services income     9,614       9,023       8,883  
Bank-owned life insurance     5,120       2,865       (417 )
Other     1,598       3,326       909  
Total noninterest income     49,023       48,151       41,380  
Noninterest expense                      
Salaries and employee benefits     56,032       49,629       48,226  
Contracted services and professional fees     16,313       17,638       17,147  
Occupancy     7,782       8,175       7,410  
Equipment     9,736       9,984       5,977  
Regulatory assessment and fees     3,836       2,591       2,224  
Advertising and marketing     1,994       2,072       2,028  
Card rewards program     8,085       8,681       6,883  
Other     14,789       15,152       14,147  
Total noninterest expense     118,567       113,922       104,042  
Income before provision for income taxes     88,903       103,067       76,957  
Provision for income taxes     22,085       23,479       19,238  
Net income   $ 66,818     $ 79,588     $ 57,719  
Basic earnings per share   $ 0.52     $ 0.62     $ 0.45  
Diluted earnings per share   $ 0.52     $ 0.62     $ 0.45  
Basic weighted-average outstanding shares     127,453,820       127,356,795       127,556,242  
Diluted weighted-average outstanding shares     128,033,812       127,894,773       128,121,126  


                   
Consolidated Balance Sheets   Table 3
    March 31   December 31   March 31
(dollars in thousands)   2023   2022   2022
Assets                  
Cash and due from banks   $ 253,705     $ 297,502     $ 274,022  
Interest-bearing deposits in other banks     611,887       229,122       1,352,138  
Investment securities:                  
Available-for-sale, at fair value (amortized cost: $3,427,708 as of March 31, 2023, $3,549,599 as of December 31, 2022 and $8,733,170 as of March 31, 2022)     3,054,280       3,151,133       8,062,384  
Held-to-maturity, at amortized cost (fair value: $3,824,478 as of March 31, 2023, $3,814,822 as of December 31, 2022 and nil as of March 31, 2022)     4,261,361       4,320,639        
Loans and leases     14,221,272       14,092,012       12,891,743  
Less: allowance for credit losses     147,122       143,900       150,280  
Net loans and leases     14,074,150       13,948,112       12,741,463  
                   
Premises and equipment, net     278,121       280,355       315,766  
Other real estate owned and repossessed personal property     91       91        
Accrued interest receivable     79,200       78,194       61,561  
Bank-owned life insurance     473,255       473,067       471,401  
Goodwill     995,492       995,492       995,492  
Mortgage servicing rights     6,299       6,562       7,650  
Other assets     796,366       796,954       760,843  
Total assets   $ 24,884,207     $ 24,577,223     $ 25,042,720  
Liabilities and Stockholders' Equity                  
Deposits:                  
Interest-bearing   $ 12,579,155     $ 12,824,383     $ 12,504,821  
Noninterest-bearing     8,702,345       8,864,646       9,765,609  
Total deposits     21,281,500       21,689,029       22,270,430  
Short-term borrowings     250,000       75,000        
Long-term borrowings     500,000              
Retirement benefits payable     101,622       102,577       134,323  
Other liabilities     422,073       441,612       352,818  
Total liabilities     22,555,195       22,308,218       22,757,571  
                   
Stockholders' equity                  
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,291,086 / 127,573,680 shares as of March 31, 2023, issued/outstanding: 140,963,918 / 127,363,327 shares as of December 31, 2022 and issued/outstanding: 140,875,595 / 127,686,307 shares as of March 31, 2022)     1,413       1,410       1,409  
Additional paid-in capital     2,540,653       2,538,336       2,530,795  
Retained earnings     769,791       736,544       628,642  
Accumulated other comprehensive loss, net     (611,679 )     (639,254 )     (517,502 )
Treasury stock (13,717,406 shares as of March 31, 2023, 13,600,591 shares as of December 31, 2022 and 13,189,288 shares as of March 31, 2022)     (371,166 )     (368,031 )     (358,195 )
Total stockholders' equity     2,329,012       2,269,005       2,285,149  
Total liabilities and stockholders' equity   $ 24,884,207     $ 24,577,223     $ 25,042,720  


                                                   
Average Balances and Interest Rates                                   Table 4
    Three Months Ended   Three Months Ended   Three Months Ended  
    March 31, 2023   December 31, 2022   March 31, 2022  
    Average   Income/   Yield/   Average   Income/   Yield/   Average   Income/   Yield/  
(dollars in millions)   Balance   Expense   Rate   Balance   Expense   Rate   Balance   Expense   Rate  
Earning Assets                                                  
Interest-Bearing Deposits in Other Banks   $ 299.6   $ 3.4   4.60 %   $ 321.3   $ 2.9   3.64 % $ 1,138.3   $ 0.6   0.20 %
Available-for-Sale Investment Securities                                                  
Taxable     3,081.4     18.4   2.39     3,180.8     18.3   2.30     7,800.3     29.2   1.50  
Non-Taxable     31.1     0.4   5.55     37.9     0.5   5.42     636.7     3.6   2.32  
Held-to-Maturity Investment Securities                                                  
Taxable     3,683.8     15.7   1.70     3,754.9     15.8   1.69            
Non-Taxable     612.2     4.1   2.74     613.4     4.2   2.69            
Total Investment Securities     7,408.5     38.6   2.09     7,587.0     38.8   2.04     8,437.0     32.8   1.56  
Loans Held for Sale     0.1       5.53     0.1       6.50     1.2       2.02  
Loans and Leases(1)                                                  
Commercial and industrial     2,192.9     32.4   5.98     2,126.3     28.1   5.24     1,973.1     14.6   3.01  
Commercial real estate     4,105.7     58.3   5.76     4,116.8     53.9   5.19     3,632.2     25.8   2.88  
Construction     873.9     14.7   6.83     804.4     11.8   5.83     766.9     5.7   3.03  
Residential:                                                  
Residential mortgage     4,307.0     38.4   3.57     4,280.6     38.1   3.56     4,111.0     34.8   3.38  
Home equity line     1,074.9     8.7   3.27     1,029.7     8.1   3.10     891.6     5.5   2.48  
Consumer     1,213.5     17.2   5.75     1,220.9     17.1   5.55     1,218.6     15.6   5.19  
Lease financing     311.4     3.1   4.10     297.4     2.9   3.92     226.2     1.9   3.42  
Total Loans and Leases     14,079.3     172.8   4.96     13,876.1     160.0   4.58     12,819.6     103.9   3.27  
Other Earning Assets     85.8     0.2   0.76     71.6     0.2   0.80     67.1     0.2   1.31  
Total Earning Assets(2)     21,873.3     215.0   3.97     21,856.1     201.9   3.67     22,463.2     137.5   2.47  
Cash and Due from Banks     286.1               286.4               292.1            
Other Assets     2,388.7               2,433.1               2,325.2            
Total Assets   $ 24,548.1             $ 24,575.6             $ 25,080.5            
                                                   
Interest-Bearing Liabilities                                                  
Interest-Bearing Deposits                                                  
Savings   $ 6,354.3   $ 13.9   0.89 %   $ 6,455.5   $ 10.3   0.63 %   6,668.4   $ 0.5   0.03 %
Money Market     3,853.5     14.3   1.50     4,012.9     9.8   0.97     4,048.9     0.5   0.05  
Time     2,515.6     15.1   2.44     2,163.2     8.1   1.48     1,748.5     1.7   0.39  
Total Interest-Bearing Deposits     12,723.4     43.3   1.38     12,631.6     28.2   0.89     12,465.8     2.7   0.09  
Federal Funds Purchased     67.1     0.7   4.43     45.5     0.5   4.09            
Other Short-Term Borrowings     52.8     0.7   5.02                      
Long-Term Borrowings     105.5     1.2   4.52                      
Other Interest-Bearing Liabilities     42.8     0.4   4.27                      
Total Interest-Bearing Liabilities     12,991.6     46.3   1.45     12,677.1     28.7   0.90     12,465.8     2.7   0.09  
Net Interest Income         $ 168.7             $ 173.2             $ 134.8      
Interest Rate Spread               2.52 %               2.77 %             2.38 %
Net Interest Margin               3.11 %               3.15 %             2.42 %
Noninterest-Bearing Demand Deposits     8,745.2               9,093.6               9,495.0            
Other Liabilities     511.9               591.9               571.8            
Stockholders' Equity     2,299.4               2,213.0               2,547.9            
Total Liabilities and Stockholders' Equity   $ 24,548.1             $ 24,575.6             $ 25,080.5            

________________________
(1)   Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

(2)   Interest income includes taxable-equivalent basis adjustments of $1.4 million, $1.4 million and $1.0 million for the three months ended March 31, 2023, December 31, 2022 and March 31, 2022, respectively.


                   
Analysis of Change in Net Interest Income   Table 5
    Three Months Ended March 31, 2023
    Compared to December 31, 2022
(dollars in millions)   Volume   Rate   Total
Change in Interest Income:                  
Interest-Bearing Deposits in Other Banks   $ (0.2 )   $ 0.7     $ 0.5  
Available-for-Sale Investment Securities                  
Taxable     (0.6 )     0.7       0.1  
Non-Taxable     (0.1 )           (0.1 )
Held-to-Maturity Investment Securities                  
Taxable     (0.2 )     0.1       (0.1 )
Non-Taxable     (0.1 )           (0.1 )
Total Investment Securities     (1.0 )     0.8       (0.2 )
Loans and Leases                  
Commercial and industrial     0.8       3.5       4.3  
Commercial real estate     (0.2 )     4.6       4.4  
Construction     1.0       1.9       2.9  
Residential:                  
Residential mortgage     0.2       0.1       0.3  
Home equity line     0.3       0.3       0.6  
Consumer     (0.2 )     0.3       0.1  
Lease financing     0.1       0.1       0.2  
Total Loans and Leases     2.0       10.8       12.8  
Total Change in Interest Income     0.8       12.3       13.1  
                   
Change in Interest Expense:                  
Interest-Bearing Deposits                  
Savings     (0.2 )     3.8       3.6  
Money Market     (0.4 )     4.9       4.5  
Time     1.4       5.6       7.0  
Total Interest-Bearing Deposits     0.8       14.3       15.1  
Federal Funds Purchased     0.2             0.2  
Other Short-Term Borrowings     0.7             0.7  
Long-Term Borrowings     1.2             1.2  
Other Interest-Bearing Liabilities     0.4             0.4  
Total Change in Interest Expense     3.3       14.3       17.6  
Change in Net Interest Income   $ (2.5 )   $ (2.0 )   $ (4.5 )


                   
Analysis of Change in Net Interest Income         Table 6
    Three Months Ended March 31, 2023
    Compared to March 31, 2022
(dollars in millions)   Volume   Rate   Total
Change in Interest Income:                  
Interest-Bearing Deposits in Other Banks   $ (0.7 )   $ 3.5     $ 2.8  
Available-for-Sale Investment Securities                  
Taxable     (23.0 )     12.2       (10.8 )
Non-Taxable     (5.5 )     2.3       (3.2 )
Held-to-Maturity Investment Securities                  
Taxable     15.7             15.7  
Non-Taxable     4.1             4.1  
Total Investment Securities     (8.7 )     14.5       5.8  
Loans and Leases                  
Commercial and industrial     1.8       16.0       17.8  
Commercial real estate     3.7       28.8       32.5  
Construction     0.9       8.1       9.0  
Residential:                  
Residential mortgage     1.7       1.9       3.6  
Home equity line     1.3       1.9       3.2  
Consumer     (0.1 )     1.7       1.6  
Lease financing     0.8       0.4       1.2  
Total Loans and Leases     10.1       58.8       68.9  
Other Earning Assets     0.1       (0.1 )      
Total Change in Interest Income     0.8       76.7       77.5  
                   
Change in Interest Expense:                  
Interest-Bearing Deposits                  
Savings           13.4       13.4  
Money Market           13.8       13.8  
Time     1.0       12.4       13.4  
Total Interest-Bearing Deposits     1.0       39.6       40.6  
Federal Funds Purchased     0.7             0.7  
Other Short-Term Borrowings     0.7             0.7  
Long-Term Borrowings     1.2             1.2  
Other Interest-Bearing Liabilities     0.4             0.4  
Total Change in Interest Expense     4.0       39.6       43.6  
Change in Net Interest Income   $ (3.2 )   $ 37.1     $ 33.9  


                         
Loans and Leases                   Table 7
    March 31   December 31   March 31
(dollars in thousands)   2023      2022      2022
Commercial and industrial:                        
Commercial and industrial excluding Paycheck Protection Program loans   $ 2,254,506     $ 2,217,604     $ 1,817,346  
Paycheck Protection Program loans     13,826       18,293       106,188  
Total commercial and industrial     2,268,332       2,235,897       1,923,534  
Commercial real estate     4,106,200       4,132,309       3,759,980  
Construction     913,959       844,643       708,300  
Residential:                        
Residential mortgage     4,318,742       4,302,788       4,153,824  
Home equity line     1,095,365       1,055,351       918,101  
Total residential     5,414,107       5,358,139       5,071,925  
Consumer     1,191,552       1,222,934       1,204,834  
Lease financing     327,122       298,090       223,170  
Total loans and leases   $ 14,221,272     $ 14,092,012     $ 12,891,743  


                         
Deposits                   Table 8
    March 31   December 31   March 31
(dollars in thousands)   2023      2022      2022
Demand   $ 8,702,345     $ 8,864,646     $ 9,765,609  
Savings     6,173,398       6,382,910       6,812,758  
Money Market     3,818,355       3,965,423       3,990,225  
Time     2,587,402       2,476,050       1,701,838  
Total Deposits   $ 21,281,500     $ 21,689,029     $ 22,270,430  


                         
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More                   Table 9
    March 31   December 31   March 31
(dollars in thousands)   2023      2022      2022
Non-Performing Assets                        
Non-Accrual Loans and Leases                        
Commercial Loans:                        
Commercial and industrial   $ 1,158     $ 1,215     $ 707  
Commercial real estate     727       727       727  
Lease financing                 75  
Total Commercial Loans     1,885       1,942       1,509  
Residential Loans:                        
Residential mortgage     6,896       6,166       7,092  
Home equity line     4,903       3,797        
Total Residential Loans     11,799       9,963       7,092  
Total Non-Accrual Loans and Leases     13,684       11,905       8,601  
Other Real Estate Owned     91       91        
Total Non-Performing Assets   $ 13,775     $ 11,996     $ 8,601  
                         
Accruing Loans and Leases Past Due 90 Days or More                        
Commercial Loans:                        
Commercial and industrial   $ 461     $ 291     $ 591  
Commercial real estate     1,346              
Construction     102              
Total Commercial Loans     1,909       291       591  
Residential Loans:                        
Residential mortgage     58       58       13  
Home equity line                 2,252  
Total Residential Loans     58       58       2,265  
Consumer     2,502       2,885       1,588  
Total Accruing Loans and Leases Past Due 90 Days or More   $ 4,469     $ 3,234     $ 4,444  
                         
Total Loans and Leases   $ 14,221,272     $ 14,092,012     $ 12,891,743  


                     
Allowance for Credit Losses and Reserve for Unfunded Commitments   Table 10
    For the Three Months Ended  
    March 31   December 31   March 31  
(dollars in thousands)   2023   2022      2022     
Balance at Beginning of Period   $ 177,735     $ 178,304     $ 187,584    
Loans and Leases Charged-Off                    
Commercial and industrial     (791 )     (735 )     (706 )  
Residential Loans:                    
Residential mortgage     (122 )     (102 )        
Home equity line     (135 )     (12 )     (43 )  
Total Residential Loans     (257 )     (114 )     (43 )  
Consumer     (4,782 )     (5,094 )     (4,109 )  
Total Loans and Leases Charged-Off     (5,830 )     (5,943 )     (4,858 )  
Recoveries on Loans and Leases Previously Charged-Off                    
Commercial Loans:                    
Commercial and industrial     246       303       53    
Commercial real estate                 14    
Total Commercial Loans     246       303       67    
Residential Loans:                    
Residential mortgage     27       173       16    
Home equity line     177       138       28    
Total Residential Loans     204       311       44    
Consumer     2,166       1,804       2,148    
Total Recoveries on Loans and Leases Previously Charged-Off     2,616       2,418       2,259    
Net Loans and Leases Charged-Off     (3,214 )     (3,525 )     (2,599 )  
Provision for Credit Losses     8,800       2,956       (5,747 )  
Balance at End of Period   $ 183,321     $ 177,735     $ 179,238    
Components:                    
Allowance for Credit Losses   $ 147,122     $ 143,900     $ 150,280    
Reserve for Unfunded Commitments     36,199       33,835       28,958    
Total Allowance for Credit Losses and Reserve for Unfunded Commitments   $ 183,321     $ 177,735     $ 179,238    
Average Loans and Leases Outstanding   $ 14,079,337     $ 13,876,136     $ 12,819,612    
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)     0.09   %     0.10   %   0.08   %
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding     1.03   %     1.02   %   1.17   %
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases     10.75x       12.09x       17.47x    

________________________
(1)   Annualized for the three months ended March 31, 2023, December 31, 2022 and March 31, 2022.


                                                       
Loans and Leases by Year of Origination and Credit Quality Indicator     Table 11
                                              Revolving      
                                              Loans      
                                              Converted      
                                              to Term      
    Term Loans   Revolving   Loans      
    Amortized Cost Basis by Origination Year   Loans   Amortized      
                                        Amortized   Cost      
(dollars in thousands)   2023   2022   2021   2020   2019   Prior   Cost Basis   Basis   Total
Commercial Lending                                                      
Commercial and Industrial                                                      
Risk rating:                                                      
Pass   $ 66,587   $ 338,534   $ 412,459   $ 48,560   $ 167,698   $ 178,991   $ 921,651   $ 13,566   $ 2,148,046
Special Mention     152     16,591     202     994     2,526     1,548     2,557     283     24,853
Substandard         594     274     1,058     958     1,422     11,043     41     15,390
Other (1)     5,223     14,426     6,965     3,780     3,312     2,287     44,050         80,043
Total Commercial and Industrial     71,962     370,145     419,900     54,392     174,494     184,248     979,301     13,890     2,268,332
Current period gross charge-offs         60             20     711             791
                                                       
Commercial Real Estate                                                      
Risk rating:                                                      
Pass     105,554     880,292     661,523     321,162     521,596     1,533,711     56,034         4,079,872
Special Mention         163         551     7,031     11,490     659         19,894
Substandard                 172         5,808     305         6,285
Other (1)                         149             149
Total Commercial Real Estate     105,554     880,455     661,523     321,885     528,627     1,551,158     56,998         4,106,200
Current period gross charge-offs                                    
                                                       
Construction                                                      
Risk rating:                                                      
Pass     15,219     152,263     333,608     89,515     103,855     141,243     20,349         856,052
Special Mention                     213                 213
Substandard                         486             486
Other (1)     817     29,615     16,206     2,991     2,160     4,478     941         57,208
Total Construction     16,036     181,878     349,814     92,506     106,228     146,207     21,290         913,959
Current period gross charge-offs                                    
                                                       
Lease Financing                                                      
Risk rating:                                                      
Pass     51,664     99,102     22,653     42,081     37,333     72,254             325,087
Special Mention             388     82                     470
Substandard                 184     9     1,372             1,565
Total Lease Financing     51,664     99,102     23,041     42,347     37,342     73,626             327,122
Current period gross charge-offs                                    
                                                       
Total Commercial Lending   $ 245,216   $ 1,531,580   $ 1,454,278   $ 511,130   $ 846,691   $ 1,955,239   $ 1,057,589   $ 13,890   $ 7,615,613
Current period gross charge-offs   $   $ 60   $   $   $ 20   $ 711   $   $   $ 791


                                              Revolving      
                                              Loans      
                                              Converted      
                                              to Term      
    Term Loans   Revolving   Loans      
    Amortized Cost Basis by Origination Year   Loans   Amortized      
(continued)                                       Amortized   Cost      
(dollars in thousands)   2023   2022   2021   2020   2019   Prior   Cost Basis   Basis   Total
Residential Lending                                                      
Residential Mortgage                                                      
FICO:                                                      
740 and greater   $ 61,686   $ 550,291   $ 1,044,555   $ 546,035   $ 235,535   $ 1,057,166   $   $   $ 3,495,268
680 - 739     11,937     75,088     118,790     86,202     35,379     145,363             472,759
620 - 679     2,776     11,464     17,424     9,946     9,243     36,678             87,531
550 - 619         2,613     2,865     2,447     825     12,487             21,237
Less than 550         530     2,445     1,498     275     7,276             12,024
No Score (3)     4,909     19,766     14,573     6,773     10,494     61,168             117,683
Other (2)     4,425     18,205     18,013     13,511     9,064     35,164     13,306     552     112,240
Total Residential Mortgage     85,733     677,957     1,218,665     666,412     300,815     1,355,302     13,306     552     4,318,742
Current period gross charge-offs                         122             122
                                                       
Home Equity Line                                                      
FICO:                                                      
740 and greater                             824,038     1,304     825,342
680 - 739                             190,187     2,440     192,627
620 - 679                             52,239     1,728     53,967
550 - 619                             12,734     1,566     14,300
Less than 550                             5,370     661     6,031
No Score (3)                             3,098         3,098
Total Home Equity Line                             1,087,666     7,699     1,095,365
Current period gross charge-offs                             116     <