Press Release

First Hawaiian, Inc. Reports Fourth Quarter 2020 Financial Results and Declares Dividend

First Hawaiian, Inc. Reports Fourth Quarter 2020 Financial Results and Declares Dividend

January 22, 2021 at 7:00 AM EST

HONOLULU, Jan. 22, 2021 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended December 31, 2020.

“We finished 2020 with a strong quarter and continued to support our customers and meet their evolving needs by leveraging technology, digital channels and our deep relationships,” said Bob Harrison, Chairman, President and CEO. “In these uncertain times, our ability to remain agile and innovative positions us well to continue supporting our customers and the community.”

On January 20, 2021 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on March 5, 2021 to stockholders of record at the close of business on February 22, 2021.

Fourth Quarter 2020 Highlights:

  • Net income of $61.7 million, or $0.47 per diluted share
  • Net interest income increased $1.2 million, or 0.9%, versus prior quarter
  • Net interest margin (“NIM”) was 2.71%, a 1 basis point increase versus the prior quarter
  • Noninterest income increased $4.7 million, or 9.6%, versus prior quarter
  • Noninterest expense decreased $3.5 million, or 3.8%, versus prior quarter
  • Total deposits increased $330.0 million, or 1.7%, versus prior quarter.
  • Recorded a $20.0 million provision for credit losses
  • Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet
Total assets were $22.7 billion as of December 31, 2020, compared to $22.3 billion as of September 30, 2020.

Gross loans and leases were $13.3 billion as of December 31, 2020, a decrease of $220.9 million, or 1.6%, from $13.5 billion as of September 30, 2020.

Total deposits were $19.2 billion as of December 31, 2020, an increase of $330.0 million, or 1.7%, from $18.9 billion as of September 30, 2020.

Net Interest Income
Net interest income for the fourth quarter of 2020 was $135.2 million, an increase of $1.2 million, or 0.9%, compared to $134.0 million for the prior quarter.  

The NIM was 2.71% in the fourth quarter of 2020, an increase of 1 basis point compared to 2.70% in the third quarter of 2020.

Provision Expense
During the quarter ended December 31, 2020, the Bank recorded a total provision for credit losses of $20.0 million. In the quarter ended September 30, 2020, the total provision for credit losses was $5.1 million.

Noninterest Income
Noninterest income was $53.6 million in the fourth quarter of 2020, an increase of $4.7 million compared to noninterest income of $48.9 million in the third quarter of 2020.

Noninterest Expense
Noninterest expense was $88.1 million in the fourth quarter of 2020, a decrease of $3.5 million compared to noninterest expense of $91.6 million in the third quarter of 2020.

The efficiency ratio was 46.6% and 50.0% for the quarters ended December 31, 2020 and September 30, 2020, respectively.

Taxes
The effective tax rate was 23.5% for the quarter ended December 31, 2020 and 24.5% for the quarter ended September 30, 2020.

Asset Quality
The allowance for credit losses was $208.5 million, or 1.57% of total loans and leases, as of December 31, 2020, compared to $195.9 million, or 1.45% of total loans and leases, as of September 30, 2020. The reserve for unfunded commitments was $30.6 million as of December 31, 2020 compared to $24.6 million as of September 30, 2020. Net charge-offs were $1.4 million, or 0.04% of average loans and leases on an annualized basis for the quarter ended December 31, 2020, compared to net recoveries of $0.1 million, or 0.00% of average loans and leases on an annualized basis for the quarter ended September 30, 2020. Total non-performing assets were $9.1 million, or 0.07% of total loans and leases and other real estate owned, at December 31, 2020, compared to non-performing assets of $17.6 million, or 0.13% of total loans and leases and other real estate owned, at September 30, 2020.

Capital
Total stockholders' equity was $2.7 billion at both December 31, 2020 and September 30, 2020.    

The tier 1 leverage, common equity tier 1 and total capital ratios were 8.00%, 12.47% and 13.72%, respectively, at December 31, 2020, compared with 7.91%, 12.22% and 13.47%, respectively, at September 30, 2020.

The Company suspended its stock repurchase program during the first quarter and did not repurchase any shares of common stock in the fourth 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, 8:00 a.m. Hawaii Time. To access the call, participants should dial (844) 452-2942 (US/Canada), or (574) 990-9846 (International) ten minutes prior to the start of the call and enter the conference ID: 9772806.   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. A telephonic replay of the conference call will be available two hours after the conclusion of the call until 4:30 p.m. (Eastern Time) on January 29, 2021. Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 9772806.

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, 2019 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020, and September 30, 2020.

Use of Non-GAAP Financial Measures
We present net interest income, noninterest income, noninterest expense, net income, earnings per share (basic and diluted) and the related ratios described below, on an adjusted, or ‘‘core,’’ basis, each a non-GAAP financial measure. These core measures exclude from the corresponding GAAP measure the impact of certain items that we do not believe are representative of our financial results. We believe that the presentation of these non-GAAP financial measures helps identify underlying trends in our business from period to period that could otherwise be distorted by the effect of certain expenses, gains and other items included in our operating results. We believe that these core measures provide useful information about our operating results and enhance the overall understanding of our past performance and future performance. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition.

Core net interest margin, core efficiency ratio, core return on average total assets and core return on average total stockholders’ equity are non-GAAP financial measures. We compute our core net interest margin as the ratio of core net interest income to average earning assets. We compute our core efficiency ratio as the ratio of core noninterest expense to the sum of core net interest income and core noninterest income.   We compute our core return on average total assets as the ratio of core net income to average total assets. We compute our core return on average total stockholders’ equity as the ratio of core net income to average total stockholders’ equity.

Return on average tangible stockholders’ equity, core return on average tangible stockholders’ equity, return on average tangible assets, core return on average tangible assets and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. 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 core return on average tangible stockholders’ equity as the ratio of core 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 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 core return on average tangible assets as the ratio of core net income to average tangible assets. 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. 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.

Tables 14 and 15 at the end of this document provide 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:
Susan Kam
(808) 525-6254
skam@fhb.com


                                 
Financial Highlights                             Table 1
    For the Three Months Ended   For the Year Ended  
    December 31   September 30   December 31   December 31  
(dollars in thousands, except per share data)      2020      2020      2019      2020      2019  
Operating Results:                                
Net interest income   $ 135,227   $ 134,002   $ 139,619   $ 535,734   $ 573,402  
Provision for credit losses     20,000     5,072     4,250     121,718     13,800  
Noninterest income     53,598     48,898     46,708     197,380     192,533  
Noninterest expense     88,127     91,629     91,058     367,672     370,437  
Net income     61,739     65,101     67,836     185,754     284,392  
Basic earnings per share     0.48     0.50     0.52     1.43     2.14  
Diluted earnings per share     0.47     0.50     0.52     1.43     2.13  
Dividends declared per share     0.26     0.26     0.26     1.04     1.04  
Dividend payout ratio     55.32 %   52.00 %   50.00 %   72.73 %   48.83 %
Supplemental Income Statement Data (non-GAAP):                                
Core net interest income   $ 135,227   $ 134,002   $ 139,619   $ 535,734   $ 573,402  
Core noninterest income     58,438     48,874     51,331     202,322     199,748  
Core noninterest expense     88,127     91,629     91,010     367,672     367,623  
Core net income     65,288     65,083     71,250     189,378     291,785  
Core basic earnings per share     0.50     0.50     0.55     1.46     2.19  
Core diluted earnings per share     0.50     0.50     0.54     1.45     2.19  
Performance Ratio(1):                                
Net interest margin     2.71 %     2.70 %     3.15 %     2.77 %     3.20 %
Core net interest margin (non-GAAP)     2.71 %     2.70 %     3.15 %     2.77 %     3.20 %
Efficiency ratio     46.59 %     50.01 %     48.86 %     50.10 %     48.36 %
Core efficiency ratio (non-GAAP)     45.43 %     50.02 %     47.65 %     49.77 %     47.55 %
Return on average total assets     1.09 %     1.16 %     1.34 %     0.85 %     1.40 %
Core return on average total assets (non-GAAP)     1.16 %     1.16 %     1.41 %     0.87 %     1.44 %
Return on average tangible assets (non-GAAP)     1.14 %     1.21 %     1.41 %     0.89 %     1.47 %
Core return on average tangible assets (non-GAAP)(2)     1.21 %     1.21 %     1.48 %     0.91 %     1.51 %
Return on average total stockholders' equity     8.99 %     9.58 %     10.21 %     6.88 %     10.90 %
Core return on average total stockholders' equity (non-GAAP)     9.51 %     9.57 %     10.72 %     7.02 %     11.18 %
Return on average tangible stockholders' equity (non-GAAP)     14.14 %     15.16 %     16.40 %     10.91 %     17.62 %
Core return on average tangible stockholders’ equity (non-GAAP)(3)     14.95 %     15.15 %     17.22 %     11.12 %     18.08 %
Average Balances:                                
Average loans and leases   $ 13,366,980   $ 13,559,367   $ 12,940,956   $ 13,518,308   $ 13,063,716  
Average earning assets     19,977,933     19,846,674     17,649,343     19,376,343     17,892,440  
Average assets     22,468,040     22,341,485     20,089,601     21,869,064     20,325,697  
Average deposits     19,020,800     18,892,033     16,355,254     18,252,998     16,613,379  
Average stockholders' equity     2,732,271     2,704,129     2,636,651     2,698,853     2,609,432  
Market Value Per Share:                                
Closing     23.58     14.47     28.85     23.58     28.85  
High     23.90     18.96     29.47     31.25     29.47  
Low     14.16     14.32     25.48     13.56     22.13  


                       
      As of   As of   As of  
      December 31   September 30   December 31  
         2020      2020   2019  
Balance Sheet Data:                      
Loans and leases     $ 13,279,097   $ 13,499,969   $ 13,211,650  
Total assets       22,662,831     22,310,701     20,166,734  
Total deposits       19,227,723     18,897,762     16,444,994  
Short-term borrowings               400,000  
Long-term borrowings       200,010     200,010     200,019  
Total stockholders' equity       2,744,104     2,733,934     2,640,258  
                       
Per Share of Common Stock:                      
Book value     $ 21.12   $ 21.04   $ 20.32  
Tangible book value (non-GAAP)(4)       13.46     13.38     12.66  
                       
Asset Quality Ratios:                      
Non-accrual loans and leases / total loans and leases       0.07 %     0.13 %   0.04 %
Allowance for credit losses for loans and leases / total loans and leases       1.57 %     1.45 %   0.99 %
                       
Capital Ratios:                      
Common Equity Tier 1 Capital Ratio        12.47 %      12.22 %    11.88 %
Tier 1 Capital Ratio       12.47 %     12.22 %   11.88 %
Total Capital Ratio       13.72 %     13.47 %   12.81 %
Tier 1 Leverage Ratio       8.00 %     7.91 %   8.79 %
Total stockholders' equity to total assets       12.11 %     12.25 %   13.09 %
Tangible stockholders' equity to tangible assets (non-GAAP)       8.07 %     8.16 %   8.58 %
                       
Non-Financial Data:                      
Number of branches       54     58     58  
Number of ATMs       297     302     301  
Number of Full-Time Equivalent Employees       2,103     2,099     2,092  

_____________________________
(1) Except for the efficiency ratio and the core efficiency ratio, amounts are annualized for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019.

(2) Core return on average tangible assets is a non-GAAP financial measure. We compute our core return on average tangible assets as the ratio of core 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. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.

(3) Core return on average tangible stockholders’ equity is a non-GAAP financial measure. We compute our core return on average tangible stockholders’ equity as the ratio of core 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. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.

(4) Tangible book value is a non-GAAP financial measure. We compute our tangible book value as the ratio of tangible stockholders’ equity to shares outstanding. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.

                               
Consolidated Statements of Income   Table 2
    For the Three Months Ended   For the Year Ended
    December 31   September 30   December 31   December 31
(dollars in thousands, except per share amounts)      2020      2020      2019      2020   2019
Interest income                              
Loans and lease financing   $ 118,314     $ 120,940   $ 138,033     $ 496,523     $ 574,013  
Available-for-sale securities     22,752       20,317     20,979       81,808       92,505  
Other     615       670     3,120       4,428       12,174  
Total interest income     141,681       141,927     162,132       582,759       678,692  
Interest expense                              
Deposits     5,061       6,227     18,222       35,471       87,865  
Short-term and long-term borrowings     1,393       1,698     4,291       11,554       17,425  
Total interest expense     6,454       7,925     22,513       47,025       105,290  
Net interest income     135,227       134,002     139,619       535,734       573,402  
Provision for credit losses     20,000       5,072     4,250       121,718       13,800  
Net interest income after provision for credit losses     115,227       128,930     135,369       414,016       559,602  
Noninterest income                              
Service charges on deposit accounts     6,769       6,523     9,041       28,169       33,778  
Credit and debit card fees     15,583       14,049     16,626       55,451       66,749  
Other service charges and fees     8,404       9,021     8,818       33,876       36,253  
Trust and investment services income     8,733       8,664     8,855       35,652       35,102  
Bank-owned life insurance     4,159       4,903     2,533       15,754       15,479  
Investment securities (losses) gains, net     (12 )     24     (123 )     (114 )     (2,715 )
Other     9,962       5,714     958       28,592       7,887  
Total noninterest income     53,598       48,898     46,708       197,380       192,533  
Noninterest expense                              
Salaries and employee benefits     42,687       44,291     41,098       174,221       173,098  
Contracted services and professional fees     13,940       15,073     13,724       60,546       56,321  
Occupancy     7,355       6,921     7,231       28,821       28,753  
Equipment     5,225       5,137     4,491       20,277       17,343  
Regulatory assessment and fees     2,168       2,445     1,802       8,659       7,390  
Advertising and marketing     1,096       1,374     1,317       5,695       6,910  
Card rewards program     4,890       5,046     8,635       22,114       29,961  
Other     10,766       11,342     12,760       47,339       50,661  
Total noninterest expense     88,127       91,629     91,058       367,672       370,437  
Income before provision for income taxes     80,698       86,199     91,019       243,724       381,698  
Provision for income taxes     18,959       21,098     23,183       57,970       97,306  
Net income   $ 61,739     $ 65,101   $ 67,836     $ 185,754     $ 284,392  
Basic earnings per share   $ 0.48     $ 0.50   $ 0.52     $ 1.43     $ 2.14  
Diluted earnings per share   $ 0.47     $ 0.50   $ 0.52     $ 1.43     $ 2.13  
Basic weighted-average outstanding shares     129,912,104       129,896,054     130,463,102       129,890,225       133,076,489  
Diluted weighted-average outstanding shares     130,314,381       130,085,534     130,845,645       130,220,077       133,387,157  


                   
Consolidated Balance Sheets   Table 3
    December 31   September 30   December 31
(dollars in thousands)      2020      2020      2019
Assets                  
Cash and due from banks   $ 303,373     $ 333,744     $ 360,375  
Interest-bearing deposits in other banks     737,571       482,585       333,642  
Investment securities, at fair value (amortized cost: $5,985,031 as of
December 31, 2020, $5,584,556 as of September 30, 2020 and $4,080,663 as of
December 31, 2019)
    6,071,415       5,692,883       4,075,644  
Loans held for sale     11,579       34,669       904  
Loans and leases     13,279,097       13,499,969       13,211,650  
Less: allowance for credit losses     208,454       195,876       130,530  
Net loans and leases     13,070,643       13,304,093       13,081,120  
                   
Premises and equipment, net     322,401       321,229       316,885  
Other real estate owned and repossessed personal property                 319  
Accrued interest receivable     69,626       66,005       45,239  
Bank-owned life insurance     466,537       462,422       453,873  
Goodwill     995,492       995,492       995,492  
Mortgage servicing rights     10,731       10,922       12,668  
Other assets     603,463       606,657       490,573  
Total assets   $ 22,662,831     $ 22,310,701     $ 20,166,734  
Liabilities and Stockholders' Equity                  
Deposits:                  
Interest-bearing   $ 11,705,609     $ 11,989,492     $ 10,564,922  
Noninterest-bearing     7,522,114       6,908,270       5,880,072  
Total deposits     19,227,723       18,897,762       16,444,994  
Short-term borrowings                 400,000  
Long-term borrowings     200,010       200,010       200,019  
Retirement benefits payable     143,373       138,806       138,222  
Other liabilities     347,621       340,189       343,241  
Total liabilities     19,918,727       19,576,767       17,526,476  
                   
Stockholders' equity                  
Common stock ($0.01 par value; authorized 300,000,000 shares;
issued/outstanding: 140,191,133 / 129,912,272 shares as of December 31, 2020,
issued/outstanding: 140,190,428 / 129,911,789 shares as of September 30, 2020
and issued/outstanding: 139,917,150 / 129,928,479 shares as of
December 31, 2019)
    1,402       1,402       1,399  
Additional paid-in capital     2,514,014       2,511,849       2,503,677  
Retained earnings     473,974       446,315       437,072  
Accumulated other comprehensive income (loss), net     31,604       51,254       (31,749 )
Treasury stock (10,278,861 shares as of December 31, 2020, 10,278,639 shares
as of September 30, 2020 and 9,988,671 shares as of December 31, 2019)
    (276,890 )     (276,886 )     (270,141 )
Total stockholders' equity     2,744,104       2,733,934       2,640,258  
Total liabilities and stockholders' equity   $ 22,662,831     $ 22,310,701     $ 20,166,734  


                                                   
Average Balances and Interest Rates                                             Table 4  
    Three Months Ended   Three Months Ended   Three Months Ended  
    December 31, 2020   September 30, 2020   December 31, 2019  
    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   $ 688.1   $ 0.2   0.10 %   $ 889.6   $ 0.2   0.10 %   $ 548.5   $ 2.3   1.68 %
Available-for-Sale Investment Securities                                                  
Taxable     5,632.9     22.0   1.56     5,308.5     20.2   1.52     4,092.2     21.0   2.05  
Non-Taxable     220.0     0.9   1.74     25.7     0.1   2.11            
Total Available-for-Sale Investment Securities     5,852.9     22.9   1.57     5,334.2     20.3   1.53     4,092.2     21.0   2.05  
Loans Held for Sale     16.2     0.1   2.00     10.2     0.1   2.67     1.5       2.55  
Loans and Leases(1)                                                  
Commercial and industrial     3,077.6     22.6   2.93     3,230.4     21.6   2.67     2,668.5     25.3   3.76  
Commercial real estate     3,407.2     26.2   3.06     3,418.0     27.8   3.23     3,325.8     35.9   4.28  
Construction     703.1     5.6   3.14     637.6     5.2   3.22     497.8     5.4   4.36  
Residential:                                                  
Residential mortgage     3,679.6     37.1   4.03     3,680.5     37.9   4.12     3,720.2     38.5   4.14  
Home equity line     856.8     6.1   2.81     871.1     6.6   3.02     905.6     8.2   3.58  
Consumer     1,394.5     19.0   5.43     1,474.4     20.2   5.46     1,635.2     23.3   5.66  
Lease financing     248.2     1.8   2.89     247.4     1.8   2.90     187.8     1.4   2.94  
Total Loans and Leases     13,367.0     118.4   3.53     13,559.4     121.1   3.56     12,940.9     138.0   4.24  
Other Earning Assets     53.7     0.4   3.26     53.3     0.5   3.32     66.2     0.8   4.76  
Total Earning Assets(2)     19,977.9     142.0   2.83     19,846.7     142.2   2.86     17,649.3     162.1   3.66  
Cash and Due from Banks     289.2               307.9               316.5            
Other Assets     2,200.9               2,186.9               2,123.8            
Total Assets   $ 22,468.0             $ 22,341.5             $ 20,089.6            
                                                   
Interest-Bearing Liabilities                                                  
Interest-Bearing Deposits                                                  
Savings   $ 5,786.4   $ 0.5   0.03 %   $ 5,768.3   $ 0.6   0.04 %     4,943.2   $ 3.8   0.31 %
Money Market     3,440.9     0.4   0.05     3,288.2     0.4   0.05     3,117.6     5.6   0.72  
Time     2,461.3     4.2   0.67     3,029.8     5.2   0.69     2,538.4     8.8   1.37  
Total Interest-Bearing Deposits     11,688.6     5.1   0.17     12,086.3     6.2   0.20     10,599.2     18.2   0.68  
Short-Term Borrowings               45.1     0.3   2.69     400.1     2.9   2.87  
Long-Term Borrowings     200.0     1.4   2.77     200.0     1.4   2.77     200.0     1.4   2.76  
Total Interest-Bearing Liabilities     11,888.6     6.5   0.22     12,331.4     7.9   0.26     11,199.3     22.5   0.80  
Net Interest Income         $ 135.5             $ 134.3             $ 139.6      
Interest Rate Spread               2.61 %               2.60 %               2.86 %
Net Interest Margin               2.71 %               2.70 %               3.15 %
Noninterest-Bearing Demand Deposits     7,332.2               6,805.7               5,756.0            
Other Liabilities     514.9               500.3               497.6            
Stockholders' Equity     2,732.3               2,704.1               2,636.7            
Total Liabilities and Stockholders' Equity   $ 22,468.0             $ 22,341.5             $ 20,089.6            

_____________________________
(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 $0.3 million, $0.3 million and nil for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019, respectively.

                                   
Average Balances and Interest Rates                               Table 5  
    Year Ended   Year Ended  
    December 31, 2020   December 31, 2019  
    Average   Income/   Yield/   Average   Income/   Yield/  
(dollars in millions)      Balance   Expense   Rate   Balance   Expense   Rate  
Earning Assets                                                     
Interest-Bearing Deposits in Other Banks   $ 882.1   $ 2.4   0.27 %   $ 437.8   $ 9.3   2.11 %
Available-for-Sale Investment Securities                                  
Taxable     4,844.5     80.9   1.67     4,309.7     92.5   2.15  
Non-Taxable     62.0     1.1   1.77     0.5       2.71  
Total Available-for-Sale Investment Securities     4,906.5     82.0   1.67     4,310.2     92.5   2.15  
Loans Held for Sale     13.0     0.3   2.21     1.0       2.53  
Loans and Leases(1)                                  
Commercial and industrial     3,168.7     93.2   2.94     2,987.3     122.8   4.11  
Commercial real estate     3,419.1     116.9   3.42     3,176.6     143.9   4.53  
Construction     615.7     21.3   3.46     547.7     25.5   4.65  
Residential:                                  
Residential mortgage     3,698.7     148.4   4.01     3,626.0     150.9   4.16  
Home equity line     875.1     27.1   3.10     910.7     34.1   3.74  
Consumer     1,501.6     82.9   5.52     1,652.8     91.8   5.56  
Lease financing     239.4     6.9   2.90     162.6     5.0   3.08  
Total Loans and Leases     13,518.3     496.7   3.67     13,063.7     574.0   4.39  
Other Earning Assets     56.4     2.0   3.66     79.8     2.9   3.66  
Total Earning Assets(2)     19,376.3     583.4   3.01     17,892.5     678.7   3.79  
Cash and Due from Banks     304.9               340.1            
Other Assets     2,187.9               2,093.1            
Total Assets   $ 21,869.1             $ 20,325.7            
                                   
Interest-Bearing Liabilities                                  
Interest-Bearing Deposits                                  
Savings   $ 5,538.1   $ 5.2   0.09 %   $ 4,840.6   $ 16.6   0.34 %
Money Market     3,266.6     6.6   0.20     3,123.5     27.8   0.89  
Time     2,839.8     23.7   0.83     2,882.9     43.5   1.51  
Total Interest-Bearing Deposits     11,644.5     35.5   0.30     10,847.0     87.9   0.81  
Short-Term Borrowings     209.6     6.0   2.87     209.8     5.9   2.82  
Long-Term Borrowings     200.0     5.5   2.77     406.6     11.5   2.83  
Total Interest-Bearing Liabilities     12,054.1     47.0   0.39     11,463.4     105.3   0.92  
Net Interest Income         $ 536.4             $ 573.4      
Interest Rate Spread               2.62 %               2.87 %
Net Interest Margin               2.77 %               3.20 %
Noninterest-Bearing Demand Deposits     6,608.5               5,766.4            
Other Liabilities     507.6               486.5            
Stockholders' Equity     2,698.9               2,609.4            
Total Liabilities and Stockholders' Equity   $ 21,869.1             $ 20,325.7            

_____________________________
(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 $0.7 million and nil for the years ended December 31, 2020 and 2019, respectively.

                   
Analysis of Change in Net Interest Income                 Table 6
    Three Months Ended December 31, 2020
    Compared to September 30, 2020
(dollars in millions)   Volume   Rate   Total
Change in Interest Income:                           
Available-for-Sale Investment Securities                  
Taxable   $ 1.3     $ 0.5     $ 1.8  
Non-Taxable     0.8             0.8  
Total Available-for-Sale Investment Securities     2.1       0.5       2.6  
Loans and Leases                  
Commercial and industrial     (1.0 )     2.0       1.0  
Commercial real estate     (0.1 )     (1.5 )     (1.6 )
Construction     0.5       (0.1 )     0.4  
Residential:                  
Residential mortgage           (0.8 )     (0.8 )
Home equity line     (0.1 )     (0.4 )     (0.5 )
Consumer     (1.1 )     (0.1 )     (1.2 )
Total Loans and Leases     (1.8 )     (0.9 )     (2.7 )
Other Earning Assets           (0.1 )     (0.1 )
Total Change in Interest Income     0.3       (0.5 )     (0.2 )
                   
Change in Interest Expense:                  
Interest-Bearing Deposits                  
Savings           (0.1 )     (0.1 )
Time     (0.9 )     (0.1 )     (1.0 )
Total Interest-Bearing Deposits     (0.9 )     (0.2 )     (1.1 )
Short-Term Borrowings     (0.1 )     (0.2 )     (0.3 )
Total Change in Interest Expense     (1.0 )     (0.4 )     (1.4 )
Change in Net Interest Income   $ 1.3     $ (0.1 )   $ 1.2  


                   
Analysis of Change in Net Interest Income                 Table 7
    Three Months Ended December 31, 2020
    Compared to December 31, 2019
(dollars in millions)   Volume   Rate   Total
Change in Interest Income:                           
Interest-Bearing Deposits in Other Banks   $ 0.5     $ (2.6 )   $ (2.1 )
Available-for-Sale Investment Securities                  
Taxable     6.7       (5.7 )     1.0  
Non-Taxable     0.9             0.9  
Total Available-for-Sale Investment Securities     7.6       (5.7 )     1.9  
Loans Held for Sale     0.1             0.1  
Loans and Leases                  
Commercial and industrial     3.5       (6.2 )     (2.7 )
Commercial real estate     0.8       (10.5 )     (9.7 )
Construction     1.9       (1.7 )     0.2  
Residential:                  
Residential mortgage     (0.4 )     (1.0 )     (1.4 )
Home equity line     (0.4 )     (1.7 )     (2.1 )
Consumer     (3.4 )     (0.9 )     (4.3 )
Lease financing     0.4             0.4  
Total Loans and Leases     2.4       (22.0 )     (19.6 )
Other Earning Assets     (0.1 )     (0.3 )     (0.4 )
Total Change in Interest Income     10.5       (30.6 )     (20.1 )
                   
Change in Interest Expense:                  
Interest-Bearing Deposits                  
Savings     0.6       (3.9 )     (3.3 )
Money Market     0.5       (5.7 )     (5.2 )
Time     (0.2 )     (4.4 )     (4.6 )
Total Interest-Bearing Deposits     0.9       (14.0 )     (13.1 )
Short-Term Borrowings     (1.5 )     (1.4 )     (2.9 )
Total Change in Interest Expense     (0.6 )     (15.4 )     (16.0 )
Change in Net Interest Income   $ 11.1     $ (15.2 )   $ (4.1 )


                   
Analysis of Change in Net Interest Income                 Table 8
    Year Ended December 31, 2020
    Compared to December 31, 2019
(dollars in millions)      Volume      Rate      Total
Change in Interest Income:                  
Interest-Bearing Deposits in Other Banks   $ 5.0     $ (11.9 )   $ (6.9 )
Available-for-Sale Investment Securities                  
Taxable     10.6       (22.2 )     (11.6 )
Non-Taxable     1.1             1.1  
Total Available-for-Sale Investment Securities     11.7       (22.2 )     (10.5 )
Loans Held for Sale     0.3             0.3  
Loans and Leases                  
Commercial and industrial     7.1       (36.7 )     (29.6 )
Commercial real estate     10.3       (37.3 )     (27.0 )
Construction     2.9       (7.1 )     (4.2 )
Residential:                  
Residential mortgage     3.0       (5.5 )     (2.5 )
Home equity line     (1.3 )     (5.7 )     (7.0 )
Consumer     (8.3 )     (0.6 )     (8.9 )
Lease financing     2.2       (0.3 )     1.9  
Total Loans and Leases     15.9       (93.2 )     (77.3 )
Other Earning Assets     (0.9 )           (0.9 )
Total Change in Interest Income     32.0       (127.3 )     (95.3 )
                   
Change in Interest Expense:                  
Interest-Bearing Deposits                  
Savings     2.1       (13.5 )     (11.4 )
Money Market     1.2       (22.4 )     (21.2 )
Time     (0.6 )     (19.2 )     (19.8 )
Total Interest-Bearing Deposits     2.7       (55.1 )     (52.4 )
Short-Term Borrowings           0.1       0.1  
Long-Term Borrowings     (5.8 )     (0.2 )     (6.0 )
Total Change in Interest Expense     (3.1 )     (55.2 )     (58.3 )
Change in Net Interest Income   $ 35.1     $ (72.1 )   $ (37.0 )


                     
Loans and Leases                   Table 9
      December 31   September 30   December 31
(dollars in thousands)        2020      2020      2019
Commercial and industrial     $ 3,019,507   $ 3,170,262   $ 2,743,242
Commercial real estate       3,392,676     3,461,085     3,463,953
Construction       735,819     662,871     519,241
Residential:                    
Residential mortgage       3,690,218     3,669,051     3,768,936
Home equity line       841,624     864,789     893,239
Total residential       4,531,842     4,533,840     4,662,175
Consumer       1,353,842     1,425,934     1,620,556
Lease financing       245,411     245,977     202,483
Total loans and leases     $ 13,279,097   $ 13,499,969   $ 13,211,650


                   
Deposits                 Table 10
    December 31   September 30   December 31
(dollars in thousands)      2020      2020      2019
Demand   $ 7,522,114   $ 6,908,270   $ 5,880,072
Savings     6,020,075     5,994,687     4,998,933
Money Market     3,337,236     3,379,985     3,055,832
Time     2,348,298     2,614,820     2,510,157
Total Deposits   $ 19,227,723   $ 18,897,762   $ 16,444,994


                     
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More                   Table 11
      December 31   September 30   December 31
(dollars in thousands)        2020      2020      2019
Non-Performing Assets                    
Non-Accrual Loans and Leases                    
Commercial Loans:                    
Commercial and industrial     $ 518   $ 725   $ 32
Commercial real estate       80     7,067     30
Construction       2,043     2,043    
Total Commercial Loans       2,641     9,835     62
Residential Loans:                    
Residential mortgage       6,441     7,798     5,406
Total Residential Loans       6,441     7,798     5,406
Total Non-Accrual Loans and Leases       9,082     17,633     5,468
Other Real Estate Owned               319
Total Non-Performing Assets     $ 9,082   $ 17,633   $ 5,787
                     
Accruing Loans and Leases Past Due 90 Days or More                    
Commercial Loans:                    
Commercial and industrial     $ 2,108   $ 1,938   $ 1,429
Commercial real estate       882     1,307     1,013
Construction       93     100     2,367
Total Commercial Loans       3,083     3,345     4,809
Residential Loans:                    
Residential mortgage               74
Home equity line       4,818     4,503     2,995
Total Residential Loans       4,818     4,503     3,069
Consumer       3,266     2,897     4,272
Total Accruing Loans and Leases Past Due 90 Days or More     $ 11,167   $ 10,745   $ 12,150
                     
Restructured Loans on Accrual Status and Not Past Due 90 Days or More     $ 16,684   $ 9,726   $ 14,493
Total Loans and Leases     $ 13,279,097   $ 13,499,969   $ 13,211,650


                                 
Allowance for Credit Losses                             Table 12  
    For the Three Months Ended   For the Year Ended  
    December 31   September 30   December 31   December 31   December 31  
(dollars in thousands)      2020   2020      2019      2020   2019   
Balance at Beginning of Period   $ 195,876     $ 192,120     $ 132,964     $ 130,530     $ 141,718    
Adjustment to Adopt ASC Topic 326                       770          
After Adoption of ASC Topic 326     195,876       192,120       132,964       131,300       141,718    
Loans and Leases Charged-Off                                
Commercial Loans:                                
Commercial and industrial     (799 )     (598 )     (204 )     (15,572 )     (2,718 )  
Commercial real estate     (30 )                 (2,753 )        
Construction                       (379 )        
Lease financing                             (24 )  
Total Commercial Loans     (829 )     (598 )     (204 )     (18,704 )     (2,742 )  
Residential Loans:                                
Residential mortgage                 (236 )     (14 )     (243 )  
Home equity line     (46 )           (195 )     (54 )     (195 )  
Total Residential Loans     (46 )           (431 )     (68 )     (438 )  
Consumer     (7,049 )     (4,238 )     (8,689 )     (28,791 )     (32,807 )  
Total Loans and Leases Charged-Off     (7,924 )     (4,836 )     (9,324 )     (47,563 )     (35,987 )  
Recoveries on Loans and Leases Previously Charged-Off                                
Commercial Loans:                                
Commercial and industrial     2,986       1,699       107       5,005       410    
Commercial real estate     615             170       615       263    
Construction     30       30             200          
Total Commercial Loans     3,631       1,729       277       5,820       673    
Residential Loans:                                
Residential mortgage     37       27       37       216       741    
Home equity line     21       16       70       167       226    
Total Residential Loans     58       43       107       383       967    
Consumer     2,812       3,148       2,256       10,499       9,359    
Total Recoveries on Loans and Leases Previously Charged-Off     6,501       4,920       2,640       16,702       10,999    
Net Loans and Leases (Charged-Off) Recovered     (1,423 )     84       (6,684 )     (30,861 )     (24,988 )  
Provision for Credit Losses - Loans and Leases     14,001       3,672       4,250       108,015       13,800    
Balance at End of Period   $ 208,454     $ 195,876     $ 130,530     $ 208,454     $ 130,530    
Average Loans and Leases Outstanding   $ 13,366,980     $ 13,559,367     $ 12,940,956     $ 13,518,308     $ 13,063,716    
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)     0.04   %       %     0.20   %     0.23   %     0.19   %
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding     1.57   %     1.45   %     0.99   %     1.57   %     0.99   %

____________________________
(1) Annualized for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019.


                                                       
Loans and Leases by Year of Origination and Credit Quality Indicator     Table 13
                                              Revolving      
                                              Loans      
                                              Converted      
    Term Loans   Revolving   to Term      
    Amortized Cost Basis by Origination Year   Loans   Loans      
                                        Amortized   Amortized      
(dollars in thousands)   2020   2019   2018   2017   2016   Prior   Cost Basis   Cost Basis   Total
Commercial Lending                                                      
Commercial and Industrial                                                      
Risk rating:                                                      
Pass   $ 873,639   $ 324,030   $ 183,329   $ 73,000   $ 49,886   $ 94,360   $ 1,058,786   $ 28,853   $ 2,685,883
Special Mention     20,937     10,370     20,164     2,099     279     8,316     101,183     1,549     164,897
Substandard     23,804     2,023     2,568     677     4,063     8,113     33,775     250     75,273
Other (1)     13,142     13,426     9,246     5,337     1,867     280     50,156         93,454
Total Commercial and Industrial     931,522     349,849     215,307     81,113     56,095     111,069     1,243,900     30,652     3,019,507
                                                       
Commercial Real Estate                                                      
Risk rating:                                                      
Pass     342,845     611,243     541,104     447,366     295,426     814,398     47,604     323     3,100,309
Special Mention     1,500     63,617     26,187     33,482     37,841     61,279     2,999         226,905
Substandard     29     3,964     18,983     3,779     10,615     18,083     9,511         64,964
Other (1)                         498             498
Total Commercial Real Estate     344,374     678,824     586,274     484,627     343,882     894,258     60,114     323     3,392,676
                                                       
Construction                                                      
Risk rating:                                                      
Pass     53,931     233,730     202,808     83,792     23,171     41,536     28,386         667,354
Special Mention         508     707     4,717         9,172             15,104
Substandard             541     1,840     521     989             3,891
Other (1)     16,578     16,393     7,775     3,685     1,800     2,656     583         49,470
Total Construction     70,509     250,631     211,831     94,034     25,492     54,353     28,969         735,819
                                                       
Lease Financing                                                      
Risk rating:                                                      
Pass     79,064     60,717     13,669     17,207     3,010     61,266             234,933
Special Mention     950     892     311     1,300     351     295             4,099
Substandard     2,708     1,677     327     1,141         526             6,379
Total Lease Financing     82,722     63,286     14,307     19,648     3,361     62,087             245,411
                                                       
Total Commercial Lending   $ 1,429,127   $ 1,342,590   $ 1,027,719   $ 679,422   $ 428,830   $ 1,121,767   $ 1,332,983   $ 30,975   $ 7,393,413


                                                       
                                              Revolving      
                                              Loans      
                                              Converted      
    Term Loans   Revolving   to Term      
    Amortized Cost Basis by Origination Year   Loans   Loans      
(continued)                                       Amortized   Amortized      
(dollars in thousands)   2020   2019   2018   2017   2016   Prior   Cost Basis   Cost Basis   Total
Residential Lending                                                      
Residential Mortgage                                                      
FICO:                                                      
740 and greater   $ 728,807   $ 384,248   $ 290,484   $ 361,297   $ 314,971   $ 830,795   $   $   $ 2,910,602
680 - 739     85,151     53,090     44,616     50,703     39,230     144,537             417,327
620 - 679     15,767     7,604     11,460     9,628     7,982     43,393             95,834
550 - 619         1,971     2,818     2,920     4,474     10,144             22,327
Less than 550         861     593     2,916     594     2,138             7,102
No Score (3)     13,823     18,861     21,214     21,821     14,355     45,147             135,221
Other (2)     21,011     15,860     18,540     22,677     9,550     13,426     578     163     101,805
Total Residential Mortgage     864,559     482,495     389,725     471,962     391,156     1,089,580     578     163     3,690,218
                                                       
Home Equity Line                                                      
FICO:                                                      
740 and greater                             608,282     2,163     610,445
680 - 739                             159,886     3,155     163,041
620 - 679                             44,005     1,571     45,576
550 - 619                             11,644     884     12,528
Less than 550                             5,159     330     5,489
No Score (3)                             4,545         4,545
Total Home Equity Line                             833,521     8,103     841,624
Total Residential Lending     864,559     482,495     389,725     471,962     391,156     1,089,580     834,099     8,266     4,531,842
                                                       
Consumer Lending                                                      
FICO:                                                      
740 and greater     113,373     122,965     99,678     54,691     24,029     6,034     114,748     275     535,793
680 - 739     83,316     90,853     66,143     36,426     16,358     4,985     76,391     773     375,245
620 - 679     40,469     48,904     33,917     24,705     11,144     3,788     36,622     1,221     200,770
550 - 619     9,125     20,274     17,693     15,126     7,825     2,883     12,980     1,458     87,364
Less than 550     3,017     10,139     9,189     6,517     3,123     1,118     5,261     799     39,163
No Score (3)     339     103     64     109     10         33,854     356     34,835
Other (2)     380     1,890     73     2,214     45     6,768     69,302         80,672
Total Consumer Lending     250,019     295,128     226,757     139,788     62,534     25,576     349,158     4,882     1,353,842
                                                       
Total Loans and Leases   $ 2,543,705   $ 2,120,213   $ 1,644,201   $ 1,291,172   $ 882,520   $ 2,236,923   $ 2,516,240   $ 44,123   $ 13,279,097

___________________________
(1)   Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score.

(2)   Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating.

(3)   No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.

                                 
GAAP to Non-GAAP Reconciliation                             Table 14  
    For the Three Months Ended   For the Year Ended  
    December 31   September 30   December 31   December 31  
(dollars in thousands, except per share amounts)      2020       2020      2019      2020