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

HONOLULU, July 24, 2020 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended June 30, 2020.

“I am very proud of our teams’ extraordinary efforts to manage through the pandemic’s disruption with agility and resilience while ensuring the health and safety of their co-workers, customers and community,” said Bob Harrison, Chairman, President and CEO.  “During this difficult time for our local economy, we focused our efforts on creating stability by offering relief assistance to customers and support to the community.  Our teams leveraged technology investments to develop an online application portal that enabled us to secure over $940 million in PPP loans for 6,000 small business customers.  We also successfully launched the Aloha for Hawaii Fund, which supported the restaurant industry, and donated $1 million to non-profits for COVID-19 relief.  Another $1 million was donated to the Stronger Together Fund to support the 2020 public high school graduates as they transition to the next phase of their lives.”

On July 22, 2020 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share.  The dividend will be payable on September 4, 2020 to stockholders of record at the close of business on August 24, 2020

Second Quarter 2020 Highlights:

  • Net income of $20.0 million, or $0.15 per diluted share
  • Total Loans and Leases increased $383.8 million, or 2.9%, versus prior quarter
  • Deposits balances increased $2.3 billion, or 13.8% versus the prior quarter
  • Net interest margin (“NIM”) was 2.58% 
  • Recorded a $55.4 million provision for credit losses
  • Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet
Total assets were $23.0 billion as of June 30, 2020, compared to $20.8 billion as of March 31, 2020.

Gross loans and leases were $13.8 billion as of June 30, 2020, an increase of $383.8 million, or 2.9%, from $13.4 billion as of March 31, 2020.  Loan growth was driven by Paycheck Protection Program (“PPP”) loans, partially offset by declines in other commercial loans, including shared national credits (“SNCs”) and dealer flooring loans.

Total deposits were $19.4 billion as of June 30, 2020, an increase of $2.3 billion, or 13.8%, from $17.0 billion as of March 31, 2020.  The increase in deposit balances was due to growth in consumer and commercial deposits, which included a portion of PPP loan proceeds, and an increase in public deposits.

Net Interest Income
Net interest income for the second quarter of 2020 was $127.8 million, a decrease of $10.9 million, or 7.8%, compared to $138.7 million for the prior quarter. 

The NIM was 2.58% in the second quarter of 2020, a decrease of 54 basis points compared to 3.12% in the first quarter of 2020.  The decline in NIM was due to lower interest rates and excess liquidity.

Provision Expense
During the quarter ended June 30, 2020, the Bank recorded a total provision for credit losses of $55.4 million.  In the quarter ended March 31, 2020, the total provision for credit losses was $41.2 million.  The provision expense recorded in the first and second quarters was due to expectations for increased credit losses as a result of COVID-19 and its impact on Hawaii’s economy.

Noninterest Income
Noninterest income was $45.7 million in the second quarter of 2020, a decrease of $3.6 million compared to noninterest income of $49.2 million in the first quarter of 2020.

Noninterest Expense
Noninterest expense was $91.5 million in the second quarter of 2020, a decrease of $5.0 million from $96.5 million in the first quarter of 2020.

The efficiency ratio was 52.7% and 51.3% for the quarters ended June 30, 2020 and March 31, 2020, respectively.

Taxes
The effective tax rate was 24.6% for the quarter ended June 30, 2020 and 22.6% for the quarter ended March 31, 2020.

Asset Quality
The allowance for credit losses was $192.1 million, or 1.40% of total loans and leases, as of June 30, 2020, compared to $166.0 million, or 1.24% of total loans and leases, as of March 31, 2020.  The reserve for unfunded commitments was $23.2 million as of June 30, 2020 compared to $17.3 million as of March 31, 2020.  Net charge-offs were $23.4 million, or 0.67% of average loans and leases on an annualized basis for the quarter ended June 30, 2020, compared to $6.1 million, or 0.19% of average loans and leases on an annualized basis for the quarter ended March 31, 2020.  Total non-performing assets were $33.3 million, or 0.24% of total loans and leases and other real estate owned, at June 30, 2020, compared to non-performing assets of $7.2 million, or 0.05% of total loans and leases and other real estate owned, at March 31, 2020

Capital
Total stockholders’ equity was $2.7 billion at both June 30 and March 31, 2020.   

The tier 1 leverage, common equity tier 1 and total capital ratios were 7.75%, 11.86% and 13.11%, respectively, at June 30, 2020, compared with 8.63%, 11.65% and 12.90%, respectively, at March 31, 2020.

The Company suspended its stock repurchase program during the first quarter and did not repurchase any shares of common stock in the second 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, 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:  4496063  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 July 31, 2020.  Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID:  4496063

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 Report on Form 10-Q for the quarter ended March 31, 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 Six Months Ended  
    June 30   March 31   June 30   June 30  
(dollars in thousands, except per share data)   2020   2020   2019   2020   2019  
Operating Results:                                
Net interest income   $  127,822   $ 138,683   $ 145,613   $  266,505   $ 290,702  
Provision for credit losses      55,446     41,200     3,870      96,646     9,550  
Noninterest income      45,656     49,228     48,773      94,884     95,845  
Noninterest expense      91,450     96,466     93,290      187,916     185,913  
Net income      20,049     38,865     72,433      58,914     142,357  
Basic earnings per share      0.15     0.30     0.54      0.45     1.06  
Diluted earnings per share      0.15     0.30     0.54      0.45     1.06  
Dividends declared per share      0.26     0.26     0.26      0.52     0.52  
Dividend payout ratio      173.33 %   86.67 %   48.15 %    115.56 %   49.06 %
Supplemental Income Statement Data (non-GAAP):                                
Core net interest income   $  127,822   $ 138,683   $ 145,613   $  266,505   $ 290,702  
Core noninterest income      45,867     49,143     48,752      95,010     98,437  
Core noninterest expense      91,450     96,466     93,029      187,916     185,391  
Core net income      20,204     38,803     72,612      59,007     144,664  
Core basic earnings per share      0.16     0.30     0.54      0.45     1.07  
Core diluted earnings per share      0.16     0.30     0.54      0.45     1.07  
Performance Ratio(1):                                
Net interest margin      2.58   3.12 %   3.25 %    2.84   3.24 %
Core net interest margin (non-GAAP)      2.58   3.12 %   3.25 %    2.84 %   3.24 %
Efficiency ratio      52.70   51.33 %   47.99 %    51.99 %   48.09 %
Core efficiency ratio (non-GAAP)      52.64   51.35 %   47.86 %    51.97 %   47.64 %
Return on average total assets      0.36   0.77 %   1.42 %    0.56 %   1.40 %
Core return on average total assets (non-GAAP)      0.36   0.77 %   1.43 %    0.56 %   1.43 %
Return on average tangible assets (non-GAAP)      0.38   0.81 %   1.50 %    0.58 %   1.48 %
Core return on average tangible assets (non-GAAP)(2)      0.38   0.81 %   1.50 %    0.58 %   1.50 %
Return on average total stockholders' equity      2.99   5.87 %   11.13 %    4.42 %   11.15 %
Core return on average total stockholders' equity (non-GAAP)      3.01   5.87 %   11.16 %    4.43 %   11.33 %
Return on average tangible stockholders' equity (non-GAAP)      4.74   9.39 %   17.99 %    7.04 %   18.17 %
Core return on average tangible stockholders’ equity (non-GAAP)(3)      4.77   9.37 %   18.03 %    7.05 %   18.46 %
Average Balances:                                
Average loans and leases   $  13,956,669   $ 13,191,426   $ 13,209,655   $  13,574,048   $ 13,142,057  
Average earning assets      19,854,795     17,814,189     17,971,615      18,834,492     18,031,189  
Average assets      22,341,654     20,313,304     20,390,273      21,327,479     20,442,266  
Average deposits      18,540,394     16,543,305     16,664,837      17,541,849     16,764,700  
Average stockholders' equity      2,697,775     2,660,811     2,610,565      2,679,293     2,575,775  
Market Value Per Share:                                
Closing      17.24     16.53     25.87      17.24     25.87  
High      21.50     31.25     28.20      31.25     28.20  
Low      13.56     15.42     24.83      13.56     22.13  

 

                           
    As of   As of   As of   As of  
    June 30   March 31   December 31   June 30  
    2020   2020   2019   2019  
Balance Sheet Data:                          
Loans and leases   $  13,764,030   $ 13,380,270   $ 13,211,650   $ 13,264,609  
Total assets      22,993,715     20,755,891     20,166,734     20,526,367  
Total deposits      19,361,634     17,020,002     16,444,994     16,792,078  
Short-term borrowings      200,000     400,000     400,000     200,000  
Long-term borrowings      200,019     200,019     200,019     400,028  
Total stockholders' equity      2,701,897     2,664,685     2,640,258     2,659,441  
                           
Per Share of Common Stock:                          
Book value   $  20.81   $ 20.52   $ 20.32   $ 19.92  
Tangible book value (non-GAAP)(4)      13.14     12.86     12.66     12.46  
                           
Asset Quality Ratios:                          
Non-accrual loans and leases / total loans and leases      0.24   0.05 %   0.04 %   0.03 %
Allowance for credit losses for loans and leases / total loans and leases      1.40   1.24 %   0.99 %   1.04 %
                           
Capital Ratios:                          
Common Equity Tier 1 Capital Ratio      11.86   11.65 %   11.88 %   11.84 %
Tier 1 Capital Ratio      11.86   11.65 %   11.88 %   11.84 %
Total Capital Ratio      13.11   12.90 %   12.81 %   12.81 %
Tier 1 Leverage Ratio      7.75   8.63 %   8.79 %   8.75 %
Total stockholders' equity to total assets      11.75   12.84 %   13.09 %   12.96 %
Tangible stockholders' equity to tangible assets (non-GAAP)      7.76   8.45 %   8.58 %   8.52 %
                           
Non-Financial Data:                          
Number of branches      58     58     58     59  
Number of ATMs      295     304     301     292  
Number of Full-Time Equivalent Employees      2,100     2,103     2,092     2,123  

(1)  Except for the efficiency ratio and the core efficiency ratio, amounts are annualized for the three and six months ended June 30, 2020 and 2019 and the three months ended March 31, 2020.

(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 Six Months Ended
    June 30   March 31   June 30   June 30
(dollars in thousands, except per share amounts)   2020   2020   2019   2020   2019
Interest income                              
Loans and lease financing   $  122,298     $ 134,971   $ 146,883   $  257,269     $ 291,289  
Available-for-sale securities      17,529       21,210     24,784      38,739       49,270  
Other      792       2,351     2,151      3,143       5,820  
Total interest income      140,619       158,532     173,818      299,151       346,379  
Interest expense                              
Deposits      8,583       15,600     23,693      24,183       46,890  
Short-term and long-term borrowings      4,214       4,249     4,512      8,463       8,787  
Total interest expense      12,797       19,849     28,205      32,646       55,677  
Net interest income      127,822       138,683     145,613      266,505       290,702  
Provision for credit losses      55,446       41,200     3,870      96,646       9,550  
Net interest income after provision for credit losses      72,376       97,483     141,743      169,859       281,152  
Noninterest income                              
Service charges on deposit accounts      5,927       8,950     8,123      14,877       16,183  
Credit and debit card fees      10,870       14,949     16,629      25,819       33,284  
Other service charges and fees      7,912       8,539     9,403      16,451       18,532  
Trust and investment services income      8,664       9,591     8,931      18,255       17,549  
Bank-owned life insurance      4,432       2,260     3,390      6,692       7,203  
Investment securities (losses) gains, net      (211 )     85     21      (126 )     (2,592 )
Other      8,062       4,854     2,276      12,916       5,686  
Total noninterest income      45,656       49,228     48,773      94,884       95,845  
Noninterest expense                              
Salaries and employee benefits      42,414       44,829     42,185      87,243       87,045  
Contracted services and professional fees      15,478       16,055     14,303      31,533       27,948  
Occupancy      7,302       7,243     7,286      14,545       14,272  
Equipment      5,207       4,708     4,544      9,915       8,828  
Regulatory assessment and fees      2,100       1,946     2,149      4,046       3,596  
Advertising and marketing      1,402       1,823     1,980      3,225       3,946  
Card rewards program      5,163       7,015     7,664      12,178       14,396  
Other      12,384       12,847     13,179      25,231       25,882  
Total noninterest expense      91,450       96,466     93,290      187,916       185,913  
Income before provision for income taxes      26,582       50,245     97,226      76,827       191,084  
Provision for income taxes      6,533       11,380     24,793      17,913       48,727  
Net income   $  20,049     $ 38,865   $ 72,433   $  58,914     $ 142,357  
Basic earnings per share   $  0.15     $ 0.30   $ 0.54   $  0.45     $ 1.06  
Diluted earnings per share   $  0.15     $ 0.30   $ 0.54   $  0.45     $ 1.06  
Basic weighted-average outstanding shares      129,856,730       129,895,706     134,420,380      129,876,218       134,655,217  
Diluted weighted-average outstanding shares      130,005,195       130,351,585     134,652,008      130,163,722       134,924,331  

 

                         
Consolidated Balance Sheets   Table 3
    June 30   March 31   December 31   June 30
(dollars in thousands)   2020   2020   2019   2019
Assets                        
Cash and due from banks   $  347,592     $ 353,908     $ 360,375     $ 423,802  
Interest-bearing deposits in other banks      1,507,630       698,924       333,642       259,713  
Investment securities, at fair value (amortized cost: $5,025,433 as of June 30, 2020, $4,014,397 as of March 31, 2020, $4,080,663 as of December 31, 2019 and $4,399,597 as of June 30, 2019)      5,135,775       4,058,457       4,075,644       4,395,476  
Loans held for sale      6,698       8,180       904       215  
Loans and leases      13,764,030       13,380,270       13,211,650       13,264,609  
Less: allowance for credit losses      192,120       166,013       130,530       138,535  
Net loans and leases      13,571,910       13,214,257       13,081,120       13,126,074  
                         
Premises and equipment, net      322,919       321,254       316,885       313,200  
Other real estate owned and repossessed personal property      446       238       319        
Accrued interest receivable      58,420       43,552       45,239       49,205  
Bank-owned life insurance      458,720       455,226       453,873       450,722  
Goodwill      995,492       995,492       995,492       995,492  
Mortgage servicing rights      11,595       11,979       12,668       14,573  
Other assets      576,518       594,424       490,573       497,895  
Total assets   $  22,993,715     $ 20,755,891     $ 20,166,734     $ 20,526,367  
Liabilities and Stockholders' Equity                        
Deposits:                        
Interest-bearing   $  12,481,543     $ 11,274,463     $ 10,564,922     $ 11,028,921  
Noninterest-bearing      6,880,091       5,745,539       5,880,072       5,763,157  
Total deposits      19,361,634       17,020,002       16,444,994       16,792,078  
Short-term borrowings      200,000       400,000       400,000       200,000  
Long-term borrowings      200,019       200,019       200,019       400,028  
Retirement benefits payable      138,624       138,396       138,222       128,610  
Other liabilities      391,541       332,789       343,241       346,210  
Total liabilities      20,291,818       18,091,206       17,526,476       17,866,926  
                         
Stockholders' equity                        
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,140,542 / 129,866,898 shares as of June 30, 2020, issued/outstanding: 140,092,172 / 129,827,968 shares as of March 31, 2020, issued/outstanding: 139,917,150 / 129,928,479 shares as of December 31, 2019 and issued/outstanding: 139,857,673 / 133,508,212 shares as of June 30, 2019)      1,401       1,401       1,399       1,399  
Additional paid-in capital      2,509,271       2,506,477       2,503,677       2,499,946  
Retained earnings      415,296       429,323       437,072       363,748  
Accumulated other comprehensive income (loss), net      52,731       4,129       (31,749 )     (31,984 )
Treasury stock (10,273,644 shares as of June 30, 2020, 10,264,204 shares as of March 31, 2020, 9,988,671 shares as of December 31, 2019 and 6,349,461 shares as of June 30, 2019)      (276,802 )     (276,645 )     (270,141 )     (173,668 )
Total stockholders' equity      2,701,897       2,664,685       2,640,258       2,659,441  
Total liabilities and stockholders' equity   $  22,993,715     $ 20,755,891     $ 20,166,734     $ 20,526,367  

 

                                                   
Average Balances and Interest Rates                                             Table 4
    Three Months Ended   Three Months Ended   Three Months Ended  
    June 30, 2020   March 31, 2020   June 30, 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   $  1,436.2   $  0.4    0.10 $ 516.8   $ 1.6   1.25 % $ 247.2   $ 1.4   2.35 %
Available-for-Sale Investment Securities      4,390.4      17.5    1.60     4,033.2     21.2   2.10     4,438.1     24.8   2.23  
Loans Held for Sale      9.8      0.1    2.93     15.8     0.1   1.70     0.7       2.76  
Loans and Leases(1)                                                  
Commercial and industrial      3,601.0      24.3    2.71     2,776.2     24.6   3.56     3,235.0     34.3   4.26  
Commercial real estate      3,438.8      28.3    3.31     3,433.2     34.6   4.05     3,094.4     36.0   4.67  
Construction      584.1      4.9    3.35     538.5     5.7   4.27     583.6     6.9   4.73  
Residential:                                                  
Residential mortgage      3,682.7      35.7    3.88     3,721.2     37.7   4.05     3,581.2     37.2   4.16  
Home equity line      885.2      6.8    3.07     887.4     7.7   3.50     908.5     8.6   3.79  
Consumer      1,526.5      20.6    5.42     1,611.7     23.0   5.75     1,657.7     22.7   5.48  
Lease financing      238.4      1.7    2.88     223.2     1.6   2.85     149.3     1.2   3.31  
Total Loans and Leases      13,956.7      122.3    3.52     13,191.4     134.9   4.11     13,209.7     146.9   4.46  
Other Earning Assets      61.7      0.4    2.79     57.0     0.7   5.30     76.0     0.7   3.71  
Total Earning Assets(2)      19,854.8      140.7    2.84     17,814.2     158.5   3.57     17,971.7     173.8   3.88  
Cash and Due from Banks      295.1               327.4               342.6            
Other Assets      2,191.8               2,171.7               2,076.0            
Total Assets   $  22,341.7             $ 20,313.3             $ 20,390.3            
                                                   
Interest-Bearing Liabilities                                                  
Interest-Bearing Deposits                                                  
Savings   $  5,501.9   $  0.9    0.07 $ 5,090.4   $ 3.3   0.26 %   4,712.2   $ 4.0   0.34 %
Money Market      3,270.3      1.1    0.13     3,064.8     4.6   0.61     3,126.7     7.4   0.95  
Time      3,335.6      6.6    0.79     2,534.7     7.7   1.23     3,084.6     12.3   1.60  
Total Interest-Bearing Deposits      12,107.8      8.6    0.29     10,689.9     15.6   0.59     10,923.5     23.7   0.87  
Short-Term Borrowings      395.6      2.8    2.88     401.7     2.8   2.88     50.4     0.3   2.25  
Long-Term Borrowings      200.0      1.4    2.77     200.0     1.4   2.77     593.5     4.2   2.86  
Total Interest-Bearing Liabilities      12,703.4      12.8    0.41     11,291.6     19.8   0.71     11,567.4     28.2   0.98  
Net Interest Income         $  127.9             $ 138.7             $ 145.6      
Interest Rate Spread                2.43             2.86 %             2.90 %
Net Interest Margin                2.58             3.12 %             3.25 %
Noninterest-Bearing Demand Deposits      6,432.6               5,853.4               5,741.3            
Other Liabilities      507.9               507.5               471.0            
Stockholders' Equity      2,697.8               2,660.8               2,610.6            
Total Liabilities and Stockholders' Equity   $  22,341.7             $ 20,313.3             $ 20,390.3            

(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 $0.1 million, nil and nil for the three months ended June 30, 2020, March 31, 2020 and June 30, 2019, respectively.

 

                                   
Average Balances and Interest Rates                               Table 5
    Six Months Ended   Six Months Ended  
    June 30, 2020   June 30, 2019  
    Average   Income/   Yield/   Average   Income/   Yield/  
(dollars in millions)   Balance   Expense   Rate   Balance   Expense   Rate  
Earning Assets                                  
Interest-Bearing Deposits in Other Banks   $  976.5   $  2.0    0.40 $ 376.5   $ 4.6   2.49 %
Available-for-Sale Investment Securities      4,211.8      38.7    1.84     4,428.0     49.3   2.23  
Loans Held for Sale      12.8      0.1    2.17     0.5       2.76  
Loans and Leases(1)                                  
Commercial and industrial      3,188.4      48.9    3.08     3,200.9     67.5   4.25  
Commercial real estate      3,426.3      62.9    3.69     3,044.9     70.7   4.68  
Construction      561.5      10.6    3.79     610.2     14.4   4.75  
Residential:                                  
Residential mortgage      3,711.5      73.4    3.95     3,563.2     73.9   4.14  
Home equity line      886.3      14.5    3.28     912.1     17.3   3.82  
Consumer      1,569.2      43.6    5.59     1,662.5     45.2   5.48  
Lease financing      230.8      3.3    2.90     148.3     2.3   3.15  
Total Loans and Leases      13,574.0      257.2    3.80     13,142.1     291.3   4.46  
Other Earning Assets      59.4      1.2    3.99     84.1     1.2   2.81  
Total Earning Assets(2)      18,834.5      299.2    3.19     18,031.2     346.4   3.86  
Cash and Due from Banks      311.2               351.4            
Other Assets      2,181.8               2,059.7            
Total Assets   $  21,327.5             $ 20,442.3            
                                   
Interest-Bearing Liabilities                                  
Interest-Bearing Deposits                                  
Savings   $  5,296.1   $  4.2    0.16 $ 4,762.6   $ 8.2   0.35 %
Money Market      3,167.6      5.7    0.36     3,155.0     15.0   0.96  
Time      2,935.1      14.3    0.98     3,063.3     23.7   1.56  
Total Interest-Bearing Deposits      11,398.8      24.2    0.43     10,980.9     46.9   0.86  
Short-Term Borrowings      398.6      5.7    2.88     31.7     0.4   2.29  
Long-Term Borrowings      200.0      2.7    2.77     596.7     8.4   2.85  
Total Interest-Bearing Liabilities      11,997.4      32.6    0.55     11,609.3     55.7   0.97  
Net Interest Income         $  266.6             $ 290.7      
Interest Rate Spread                2.64             2.89 %
Net Interest Margin                2.84             3.24 %
Noninterest-Bearing Demand Deposits      6,143.0               5,783.8            
Other Liabilities      507.8               473.4            
Stockholders' Equity      2,679.3               2,575.8            
Total Liabilities and Stockholders' Equity   $  21,327.5             $ 20,442.3            

(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 $0.1 million and nil for the six months ended June 30, 2020 and 2019, respectively.

 

                   
Analysis of Change in Net Interest Income                 Table 6
    Three Months Ended June 30, 2020
    Compared to March 31, 2020
(dollars in millions)   Volume   Rate   Total
Change in Interest Income:                  
Interest-Bearing Deposits in Other Banks   $  1.1     $  (2.3 )   $  (1.2 )
Available-for-Sale Investment Securities      1.7        (5.4 )      (3.7 )
Loans and Leases                  
Commercial and industrial      6.4        (6.7 )      (0.3 )
Commercial real estate      —        (6.3 )      (6.3 )
Construction      0.5        (1.3 )      (0.8 )
Residential:                  
Residential mortgage      (0.4 )      (1.6 )      (2.0 )
Home equity line      —        (0.9 )      (0.9 )
Consumer      (1.2 )      (1.2 )      (2.4 )
Lease financing      0.1        —        0.1  
Total Loans and Leases      5.4        (18.0 )      (12.6 )
Other Earning Assets      0.1        (0.4 )      (0.3 )
Total Change in Interest Income      8.3        (26.1 )      (17.8 )
                   
Change in Interest Expense:                  
Interest-Bearing Deposits                  
Savings      0.2        (2.6 )      (2.4 )
Money Market      0.3        (3.8 )      (3.5 )
Time      2.1        (3.2 )      (1.1 )
Total Interest-Bearing Deposits      2.6        (9.6 )      (7.0 )
Total Change in Interest Expense      2.6        (9.6 )      (7.0 )
Change in Net Interest Income   $  5.7     $  (16.5 )   $  (10.8 )

 

                   
Analysis of Change in Net Interest Income                 Table 7
    Three Months Ended June 30, 2020
    Compared to June 30, 2019
(dollars in millions)   Volume   Rate   Total
Change in Interest Income:                  
Interest-Bearing Deposits in Other Banks   $  1.4     $  (2.4 )   $  (1.0 )
Available-for-Sale Investment Securities      (0.3 )      (7.0 )      (7.3 )
Loans Held for Sale      0.1        —        0.1  
Loans and Leases                  
Commercial and industrial      3.6        (13.6 )      (10.0 )
Commercial real estate      3.7        (11.4 )      (7.7 )
Construction      —        (2.0 )      (2.0 )
Residential:                  
Residential mortgage      1.0        (2.5 )      (1.5 )
Home equity line      (0.2 )      (1.6 )      (1.8 )
Consumer      (1.8 )      (0.3 )      (2.1 )
Lease financing      0.7        (0.2 )      0.5  
Total Loans and Leases      7.0        (31.6 )      (24.6 )
Other Earning Assets      (0.1 )      (0.2 )      (0.3 )
Total Change in Interest Income      8.1        (41.2 )      (33.1 )
                   
Change in Interest Expense:                  
Interest-Bearing Deposits                  
Savings      0.6        (3.7 )      (3.1 )
Money Market      0.3        (6.6 )      (6.3 )
Time      1.0        (6.7 )      (5.7 )
Total Interest-Bearing Deposits      1.9        (17.0 )      (15.1 )
Short-Term Borrowings      2.4        0.1        2.5  
Long-Term Borrowings      (2.7 )      (0.1 )      (2.8 )
Total Change in Interest Expense      1.6        (17.0 )      (15.4 )
Change in Net Interest Income   $  6.5     $  (24.2 )   $  (17.7 )

 

                   
Analysis of Change in Net Interest Income                 Table 8
    Six Months Ended June 30, 2020
    Compared to June 30, 2019
(dollars in millions)   Volume   Rate   Total
Change in Interest Income:                  
Interest-Bearing Deposits in Other Banks   $  3.4     $  (6.0 )   $  (2.6 )
Available-for-Sale Investment Securities      (2.3 )      (8.3 )      (10.6 )
Loans Held for Sale      0.1        —        0.1  
Loans and Leases                  
Commercial and industrial      (0.2 )      (18.4 )      (18.6 )
Commercial real estate      8.3        (16.1 )      (7.8 )
Construction      (1.1 )      (2.7 )      (3.8 )
Residential:                  
Residential mortgage      2.9        (3.4 )      (0.5 )
Home equity line      (0.5 )      (2.3 )      (2.8 )
Consumer      (2.5 )      0.9        (1.6 )
Lease financing      1.2        (0.2 )      1.0  
Total Loans and Leases      8.1        (42.2 )      (34.1 )
Other Earning Assets      (0.4 )      0.4        —  
Total Change in Interest Income      8.9        (56.1 )      (47.2 )
                   
Change in Interest Expense:                  
Interest-Bearing Deposits                  
Savings      0.9        (4.9 )      (4.0 )
Money Market      0.1        (9.4 )      (9.3 )
Time      (1.0 )      (8.4 )      (9.4 )
Total Interest-Bearing Deposits      —        (22.7 )      (22.7 )
Short-Term Borrowings      5.2        0.1        5.3  
Long-Term Borrowings      (5.5 )      (0.2 )      (5.7 )
Total Change in Interest Expense      (0.3 )      (22.8 )      (23.1 )
Change in Net Interest Income   $  9.2     $  (33.3 )   $  (24.1 )

 

                         
Loans and Leases                       Table 9
    June 30   March 31   December 31   June 30
(dollars in thousands)   2020   2020   2019   2019
Commercial and industrial   $  3,423,708   $ 3,025,345   $ 2,743,242   $ 3,177,844
Commercial real estate      3,423,499     3,413,014     3,463,953     3,194,219
Construction      617,935     572,062     519,241     549,578
Residential:                        
Residential mortgage      3,691,950     3,673,455     3,768,936     3,618,433
Home equity line      876,491     891,698     893,239     908,452
Total residential      4,568,441     4,565,153     4,662,175     4,526,885
Consumer      1,492,160     1,568,073     1,620,556     1,650,713
Lease financing      238,287     236,623     202,483     165,370
Total loans and leases   $  13,764,030   $ 13,380,270   $ 13,211,650   $ 13,264,609

 

                         
Deposits                       Table 10
    June 30   March 31   December 31   June 30
(dollars in thousands)   2020   2020   2019   2019
Demand   $  6,880,091   $ 5,745,539   $ 5,880,072   $ 5,763,157
Savings      5,727,367     5,213,471     4,998,933     4,908,000
Money Market      3,247,511     3,148,694     3,055,832     3,050,843
Time      3,506,665     2,912,298     2,510,157     3,070,078
  Total Deposits   $  19,361,634   $ 17,020,002   $ 16,444,994   $ 16,792,078

 

                         
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More                       Table 11
    June 30   March 31   December 31   June 30
(dollars in thousands)   2020   2020   2019   2019
Non-Performing Assets                        
Non-Accrual Loans and Leases                        
Commercial Loans:                        
Commercial and industrial   $  11,559   $ 32   $ 32   $ 119
Commercial real estate      13,168         30    
Construction      2,043     2,422        
Total Commercial Loans      26,770     2,454     62     119
Residential Loans:                        
Residential mortgage      6,059     4,472     5,406     3,771
Total Residential Loans      6,059     4,472     5,406     3,771
Total Non-Accrual Loans and Leases      32,829     6,926     5,468     3,890
Other Real Estate Owned      446     238     319    
Total Non-Performing Assets   $  33,275   $ 7,164   $ 5,787   $ 3,890
                         
Accruing Loans and Leases Past Due 90 Days or More                        
Commercial Loans:                        
Commercial and industrial   $  2,309   $ 4,007   $ 1,429   $ 807
Commercial real estate      900     757     1,013    
Construction      248     148     2,367    
Total Commercial Loans      3,457     4,912     4,809     807
Residential Loans:                        
Residential mortgage      —     82     74    
Home equity line      4,496     2,566     2,995     1,635
Total Residential Loans      4,496     2,648     3,069     1,635
Consumer      2,167     3,353     4,272     3,295
Total Accruing Loans and Leases Past Due 90 Days or More   $  10,120   $ 10,913   $ 12,150   $ 5,737
                         
Restructured Loans on Accrual Status and Not Past Due 90 Days or More      11,182     17,823     14,493     23,466
Total Loans and Leases   $  13,764,030   $ 13,380,270   $ 13,211,650   $ 13,264,609

 

                               
Allowance for Credit Losses                             Table 12
    For the Three Months Ended   For the Six Months Ended
    June 30   March 31   June 30   June 30   June 30
(dollars in thousands)   2020   2020   2019   2020   2019
Balance at Beginning of Period   $  166,013     $ 130,530     $ 141,546     $  130,530     $ 141,718  
Adjustment to Adopt ASC Topic 326      —       770              770        
After Adoption of ASC Topic 326      166,013       131,300       141,546        131,300       141,718  
Loans and Leases Charged-Off                              
Commercial Loans:                              
Commercial and industrial      (13,974 )     (201 )     (2,000 )      (14,175 )     (2,000 )
Commercial real estate      (2,723 )                  (2,723 )      
Construction      (379 )                  (379 )      
Lease financing      —                    —       (24 )
Total Commercial Loans      (17,076 )     (201 )     (2,000 )      (17,277 )     (2,024 )
Residential Loans:                              
Residential mortgage      (14 )                  (14 )      
Home equity line      —       (8 )            (8 )      
Total Residential Loans      (14 )     (8 )            (22 )      
Consumer      (8,907 )     (8,597 )     (7,505 )      (17,504 )     (16,103 )
Total Loans and Leases Charged-Off      (25,997 )     (8,806 )     (9,505 )      (34,803 )     (18,127 )
Recoveries on Loans and Leases Previously Charged-Off                              
Commercial Loans:                              
Commercial and industrial      100       220       25        320       62  
Commercial real estate      —             32        —       63  
Construction      30       110              140        
Total Commercial Loans      130       330       57        460       125  
Residential Loans:                              
Residential mortgage      17       135       118        152       336  
Home equity line      8       122       67        130       99  
Total Residential Loans      25       257       185        282       435  
Consumer      2,456       2,083       2,382        4,539       4,834  
Total Recoveries on Loans and Leases Previously Charged-Off      2,611       2,670       2,624        5,281       5,394  
Net Loans and Leases Charged-Off      (23,386 )     (6,136 )     (6,881 )      (29,522 )     (12,733 )
Provision for Credit Losses - Loans and Leases      49,493       40,849       3,870        90,342       9,550  
Balance at End of Period   $  192,120     $ 166,013     $ 138,535     $  192,120     $ 138,535  
Average Loans and Leases Outstanding   $  13,956,669     $ 13,191,426     $ 13,209,655     $  13,574,048     $ 13,142,057  
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)      0.67 %     0.19 %     0.21 %      0.44 %     0.20 %
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding      1.40 %     1.24 %     1.04 %      1.40 %     1.04 %

(1)   Annualized for the three and six months ended June 30, 2020 and 2019 and three months ended March 31, 2020.

 

                                                       
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   $  989,501   $  349,261   $  271,941   $  76,742   $  62,113   $  68,468   $  1,182,299   $  39,617   $  3,039,942
Special Mention      28,136      9,235      8,460      841      335      27,174      113,642      509      188,332
Substandard      16,621      1,724      1,836      2,000      4,321      9,788      52,225      938      89,453
Other (1)      9,091      16,661      12,574      7,884      3,199      811      55,761      —      105,981
Total Commercial and Industrial      1,043,349      376,881      294,811      87,467      69,968      106,241      1,403,927      41,064      3,423,708
                                                       
Commercial Real Estate                                                      
Risk rating:                                                      
Pass      171,445      618,501      523,149      440,549      296,474      927,232      33,878      —      3,011,228
Special Mention      —      113,286      53,391      62,165      47,790      66,008      2,999      —      345,639
Substandard      —      16,304      14,617      1,655      6,630      17,947      8,970      —      66,123
Other (1)      —      —      —      —      —      509      —      —      509
Total Commercial Real Estate      171,445      748,091      591,157      504,369      350,894      1,011,696      45,847      —      3,423,499
                                                       
Construction                                                      
Risk rating:                                                      
Pass      16,615      135,963      192,016      96,137      24,106      41,457      29,297      —      535,591
Special Mention      —      —      2,152      4,782      —      10,850      196      —      17,980
Substandard      —      —      541      1,840      528      1,000      —      —      3,909
Other (1)      8,415      31,038      8,546      5,562      1,795      4,514      585      —      60,455
Total Construction      25,030      167,001      203,255      108,321      26,429      57,821      30,078      —      617,935
                                                       
Lease Financing                                                      
Risk rating:                                                      
Pass      45,489      67,806      11,965      18,915      3,764      59,364      —      —      207,303
Special Mention      9,142      1,931      4,626      1,545      1,440      5,854      —      —      24,538
Substandard      2,697      1,651      368      1,207      —      523      —      —      6,446
Total Lease Financing      57,328      71,388      16,959      21,667      5,204      65,741      —      —      238,287
                                                       
Total Commercial Lending   $  1,297,152   $  1,363,361   $  1,106,182   $  721,824   $  452,495   $  1,241,499   $  1,479,852   $  41,064   $  7,703,429

 

                                                       
                                              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   $  300,079   $  411,883   $  353,197   $  411,670   $  362,197   $  988,771   $  —   $  —   $  2,827,797
680 - 739      50,937      72,139      64,920      65,992      43,666      161,897      —      —      459,551
620 - 679      6,098      12,708      12,060      12,648      10,789      55,000      —      —      109,303
550 - 619      2,006      1,824      3,533      3,389      3,032      13,329      —      —      27,113
Less than 550      —      —      1,204      1,907      528      6,324      —      —      9,963
No Score (3)      15,676      21,603      24,182      23,736      16,298      51,943      —      —      153,438
Other (2)      8,244      20,308      22,241      23,435      12,412      17,063      579      503      104,785
Total Residential Mortgage      383,040      540,465      481,337      542,777      448,922      1,294,327      579      503      3,691,950
                                                       
Home Equity Line                                                      
FICO:                                                      
740 and greater      —      —      —      —      —      —      626,897      858      627,755
680 - 739      —      —      —      —      —      —      169,547      1,283      170,830
620 - 679      —      —      —      —      —      —      48,655      1,013      49,668
550 - 619      —      —      —      —      —      —      14,276      562      14,838
Less than 550      —      —      —      —      —      —      6,661      212      6,873
No Score (3)      —      —      —      —      —      —      6,527      —      6,527
Total Home Equity Line      —      —      —      —      —      —      872,563      3,928      876,491
Total Residential Lending      383,040      540,465      481,337      542,777      448,922      1,294,327      873,142      4,431      4,568,441
                                                       
Consumer Lending                                                      
FICO:                                                      
740 and greater      65,206      141,704      120,178      71,525      35,932      12,451      109,702      —      556,698
680 - 739      47,584      109,728      87,056      48,728      24,478      10,094      83,021      —      410,689
620 - 679      24,185      65,310      43,282      31,318      16,144      7,013      42,511      —      229,763
550 - 619      5,881      26,220      22,891      20,874      10,869      5,467      18,429      —      110,631
Less than 550      1,562      12,306      13,110      10,628      5,397      2,567      7,777      —      53,347
No Score (3)      3,799      124      125      126      27      1      34,281      —      38,483
Other (2)      594      9,160      96      2,225      72      6,804      73,598      —      92,549
Total Consumer Lending      148,811      364,552      286,738      185,424      92,919      44,397      369,319      —      1,492,160
                                                       
Total Loans and Leases   $  1,829,003   $  2,268,378   $  1,874,257   $  1,450,025   $  994,336   $  2,580,223   $  2,722,313   $  45,495   $  13,764,030

(1)   Other credit quality indicators used for monitoring purposes are primarily FICO scores.

(2)   Other credit quality indicators used for monitoring purposes are primarily internal risk ratings.

(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 Six Months Ended  
    June 30   March 31   June 30   June 30  
(dollars in thousands, except per share amounts)   2020   2020   2019   2020   2019  
Income Statement Data:                                
Net income   $  20,049   $ 38,865   $ 72,433   $  58,914   $ 142,357  
Core net income   $  20,204   $ 38,803   $ 72,612   $  59,007   $ 144,664  
                                 
Average total stockholders' equity   $  2,697,775   $ 2,660,811   $ 2,610,565   $  2,679,293   $ 2,575,775  
Less: average goodwill      995,492     995,492     995,492      995,492     995,492  
Average tangible stockholders' equity   $  1,702,283   $ 1,665,319   $ 1,615,073   $  1,683,801   $ 1,580,283  
                                 
Average total assets   $  22,341,654   $ 20,313,304   $ 20,390,273   $  21,327,479   $ 20,442,266  
Less: average goodwill      995,492     995,492     995,492      995,492     995,492  
Average tangible assets   $  21,346,162   $ 19,317,812   $ 19,394,781   $  20,331,987   $ 19,446,774  
                                 
Return on average total stockholders' equity(1)      2.99   5.87 %   11.13 %    4.42   11.15 %
Core return on average total stockholders' equity (non-GAAP)(1)      3.01   5.87 %   11.16 %    4.43   11.33 %
Return on average tangible stockholders' equity (non-GAAP)(1)      4.74   9.39 %   17.99 %    7.04   18.17 %
Core return on average tangible stockholders' equity (non-GAAP)(1)      4.77   9.37 %   18.03 %    7.05   18.46 %
                                 
Return on average total assets(1)      0.36   0.77 %   1.42 %    0.56   1.40 %
Core return on average total assets (non-GAAP)(1)      0.36   0.77 %   1.43 %    0.56   1.43 %
Return on average tangible assets (non-GAAP)(1)      0.38   0.81 %   1.50 %    0.58   1.48 %
Core return on average tangible assets (non-GAAP)(1)      0.38   0.81 %   1.50 %    0.58   1.50 %
                                 

 

                           
                     
    As of   As of   As of   As of  
    June 30   March 31   December 31   June 30  
    2020   2020   2019   2019  
Balance Sheet Data:                          
Total stockholders' equity   $  2,701,897   $ 2,664,685   $ 2,640,258   $ 2,659,441  
Less: goodwill      995,492     995,492     995,492     995,492  
Tangible stockholders' equity   $  1,706,405   $ 1,669,193   $ 1,644,766   $ 1,663,949  
                           
Total assets   $  22,993,715   $ 20,755,891   $ 20,166,734   $ 20,526,367  
Less: goodwill      995,492     995,492     995,492     995,492  
Tangible assets   $  21,998,223   $ 19,760,399   $ 19,171,242   $ 19,530,875  
                           
Shares outstanding      129,866,898     129,827,968     129,928,479     133,508,212  
                           
Total stockholders' equity to total assets      11.75   12.84 %   13.09 %   12.96 %
Tangible stockholders' equity to tangible assets (non-GAAP)      7.76   8.45 %   8.58 %   8.52 %
                           
Book value per share   $  20.81   $ 20.52   $ 20.32   $ 19.92  
Tangible book value per share (non-GAAP)   $  13.14   $ 12.86   $ 12.66   $ 12.46  

(1)   Annualized for the three and six months ended June 30, 2020 and 2019 and three months ended March 31, 2020.

 

                                 
GAAP to Non-GAAP Reconciliation                             Table 15
    For the Three Months Ended   For the Six Months Ended  
    June 30   March 31   June 30   June 30  
(dollars in thousands, except per share amounts)   2020   2020   2019   2020    2019  
Net interest income   $  127,822     $ 138,683     $ 145,613     $  266,505     $ 290,702    
Core net interest income (non-GAAP)   $  127,822     $ 138,683     $ 145,613     $  266,505     $ 290,702    
                                 
Noninterest income   $  45,656     $ 49,228     $ 48,773     $  94,884     $ 95,845    
Losses (gains) on sale of securities      211       (85 )     (21 )      126       2,592    
Core noninterest income (non-GAAP)   $  45,867     $ 49,143     $ 48,752     $  95,010     $ 98,437    
                                 
Noninterest expense   $  91,450     $ 96,466     $ 93,290     $  187,916     $ 185,913    
One-time items(1)      —             (261 )      —       (522 )  
Core noninterest expense (non-GAAP)   $  91,450     $ 96,466     $ 93,029     $  187,916     $ 185,391    
                                 
Net income   $  20,049     $ 38,865     $ 72,433     $  58,914     $ 142,357    
Losses (gains) on sale of securities      211       (85 )     (21 )      126       2,592    
One-time noninterest expense items(1)      —             261        —       522    
Tax adjustments(2)      (56 )     23       (61 )      (33 )     (807 )  
Total core adjustments      155       (62 )     179        93       2,307    
Core net income (non-GAAP)   $  20,204     $ 38,803     $ 72,612     $  59,007     $ 144,664    
                                 
Basic earnings per share   $  0.15     $ 0.30     $ 0.54     $  0.45     $ 1.06    
Diluted earnings per share   $  0.15     $ 0.30     $ 0.54     $  0.45     $ 1.06    
Efficiency ratio      52.70 %     51.33 %     47.99 %      51.99 %     48.09 %  
                                 
Core basic earnings per share (non-GAAP)   $  0.16     $ 0.30     $ 0.54     $  0.45     $ 1.07    
Core diluted earnings per share (non-GAAP)   $  0.16     $ 0.30     $ 0.54     $  0.45     $ 1.07    
Core efficiency ratio (non-GAAP)      52.64 %     51.35 %     47.86 %      51.97 %     47.64 %  

(1)   One-time items included nonrecurring offering costs.

(2)   Represents the adjustments to net income, tax effected at the Company’s effective tax rate for the respective period.

 

FH Inc Logo 2016 Horizontal RGB (2).jpg

 

Source: First Hawaiian, Inc.

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