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Investment Securities (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of amortized cost and fair value of securities


	2019								2018
	Amortized		Unrealized		Unrealized		Fair		Amortized		Unrealized		Unrealized		Fair
(dollars in thousands)	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. Treasury securities	$	29,832	$	56	$	—	$	29,888	$	389,470	$	—	$	—	$	389,470
Government-sponsored enterprises debt securities		101,697		19		(277)		101,439		248,372		—		(6,778)		241,594
Mortgage-backed securities:
Residential - Government agency		290,131		2,224		(1,146)		291,209		426,710		—		(15,174)		411,536
Residential - Government-sponsored enterprises		395,039		6,126		(1,673)		399,492		156,056		85		(5,294)		150,847
Commercial - Government-sponsored enterprises		101,798		555		(634)		101,719		—		—		—		—
Collateralized mortgage obligations:
Government agency		2,390,143		7,483		(16,348)		2,381,278		2,779,620		—		(97,171)		2,682,449
Government-sponsored enterprises		772,023		2,505		(3,909)		770,619		620,337		—		(17,745)		602,592
Debt securities issued by states and political subdivisions		—		—		—		—		19,854		—		—		19,854
Total available-for-sale securities	$	4,080,663	$	18,968	$	(23,987)	$	4,075,644	$	4,640,419	$	85	$	(142,162)	$	4,498,342

Schedule of amortized cost and fair value of debt securities by contractual maturity


	December 31, 2019
	Amortized		Fair
(dollars in thousands)	Cost		Value
Due in one year or less	$	29,832	$	29,888
Due after one year through five years		101,697		101,439
Due after five years through ten years		—		—
Due after ten years		—		—
		131,529		131,327

Mortgage-backed securities:
Residential - Government agency		290,131		291,209
Residential - Government-sponsored enterprises		395,039		399,492
Commercial - Government-sponsored enterprises		101,798		101,719
Total mortgage-backed securities		786,968		792,420
Collateralized mortgage obligations:
Government agency		2,390,143		2,381,278
Government-sponsored enterprises		772,023		770,619
Total collateralized mortgage obligations		3,162,166		3,151,897
Total available-for-sale securities	$	4,080,663	$	4,075,644

Schedule of gross unrealized losses and fair values of securities in a continuous loss position

Time in Continuous Loss as of December 31, 2019

Less Than 12 Months

12 Months or More

Total

Unrealized

(dollars in thousands)

Losses

Fair Value

Losses

Fair Value

Losses

Fair Value

Government-sponsored enterprises debt securities

(277)

49,716

—

(277)

49,716

Mortgage-backed securities:

Residential - Government agency

—

(1,146)

109,614

(1,146)

109,614

Residential - Government-sponsored enterprises

(115)

76,481

(1,558)

109,025

(1,673)

185,506

Commercial - Government-sponsored enterprises

(634)

38,062

—

(634)

38,062

Collateralized mortgage obligations:

Government agency

(8,049)

969,762

(8,299)

565,764

(16,348)

1,535,526

Government-sponsored enterprises

(583)

180,785

(3,326)

209,752

(3,909)

390,537

Total available-for-sale securities with unrealized losses

(9,658)

1,314,806

(14,329)

994,155

(23,987)

2,308,961


	Time in Continuous Loss as of December 31, 2018
	Less Than 12 Months				12 Months or More				Total
	Unrealized				Unrealized				Unrealized
(dollars in thousands)	Losses		Fair Value		Losses		Fair Value		Losses		Fair Value
Government-sponsored enterprises debt securities	$	—	$	—	$	(6,778)	$	157,939	$	(6,778)	$	157,939
Mortgage-backed securities:
Residential - Government agency		—		—		(15,174)		373,891		(15,174)		373,891
Residential - Government-sponsored enterprises		(1)		172		(5,293)		125,869		(5,294)		126,041
Collateralized mortgage obligations:
Government agency		—		—		(97,171)		2,475,532		(97,171)		2,475,532
Government-sponsored enterprises		—		—		(17,745)		486,175		(17,745)		486,175
Total available-for-sale securities with unrealized losses	$	(1)	$	172	$	(142,161)	$	3,619,406	$	(142,162)	$	3,619,578

Schedule of OTTI write-downs included in earnings


	Year Ended
(dollars in thousands)	December 31, 2018
U.S. Treasury securities	$	(13,634)
Government-sponsored enterprises debt securities		(1,344)
Mortgage-backed securities:
Residential - Government agency		(146)
Residential - Government-sponsored enterprises		(763)
Collateralized mortgage obligations:
Government agency		(5,064)
Government-sponsored enterprises		(2,711)
Debt securities issued by states and political subdivisions		(423)
Total OTTI write-downs included in earnings	$	(24,085)

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Interest income
Loans and lease financing	$ 574,013	$ 529,877	$ 462,675
Available-for-sale securities	92,505	107,123	102,272
Other	12,174	9,051	5,821
Total interest income	678,692	646,051	570,768
Interest expense
Deposits	87,865	72,976	41,944
Short-term and long-term borrowings	17,425	6,757	20
Total interest expense	105,290	79,733	41,964
Net interest income	573,402	566,318	528,804
Provision for loan and lease losses	13,800	22,180	18,500
Net interest income after provision for loan and lease losses	559,602	544,138	510,304
Noninterest income
Service charges on deposit accounts	33,778	32,036	35,807
Credit and debit card fees	66,749	65,716	64,049
Other service charges and fees	36,253	38,316	34,063
Trust and investment services income	35,102	31,324	30,485
Bank-owned life insurance	15,479	9,217	13,283
Investment securities losses, net	2,715
Other-than-temporary impairment (OTTI) losses on available-for-sale debt securities		(24,085)
Other	7,887	26,469	27,918
Total noninterest income	192,533	178,993	205,605
Noninterest expense
Salaries and employee benefits	173,098	167,162	163,086
Contracted services and professional fees	56,321	49,775	45,011
Occupancy	28,753	27,330	23,485
Equipment	17,343	17,714	17,247
Regulatory assessment and fees	7,390	14,217	14,907
Advertising and marketing	6,910	4,813	6,191
Card rewards program	29,961	24,860	23,363
Other	50,661	59,082	54,264
Total noninterest expense	370,437	364,953	347,554
Income before provision for income taxes	381,698	358,178	368,355
Provision for income taxes	97,306	93,784	184,673
Net income (loss)	$ 284,392	$ 264,394	$ 183,682
Basic earnings per share (in dollars per share)	$ 2.14	$ 1.93	$ 1.32
Diluted earnings per share (in dollars per share)	$ 2.13	$ 1.93	$ 1.32
Basic weighted-average outstanding shares (in shares)	133,076,489	136,945,134	139,560,305
Diluted weighted-average outstanding shares (in shares)	133,387,157	137,111,420	139,656,993

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	300,000,000	300,000,000
Common stock, issued (in shares)	139,917,150	139,656,674
Common stock outstanding (in shares)	129,928,479	134,874,302
Treasury stock (in shares)	9,988,671	4,782,372

Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2019

Revenue from Contracts with Customers

Summary of revenues disaggregated by type of service and business segments

Year Ended December 31, 2019

Treasury

Retail

Commercial

and

(dollars in thousands)

Banking

Other

Total

Net interest income⁽¹⁾

413,029

141,227

19,146

573,402

Service charges on deposit accounts

30,298

1,238

2,242

33,778

Credit and debit card fees

—

58,034

6,812

64,846

Other service charges and fees

20,454

2,096

2,155

24,705

Trust and investment services income

35,102

—

35,102

Other

715

4,899

3,351

8,965

Not in scope of Topic 606⁽¹⁾

8,844

7,368

8,925

25,137

Total noninterest income

95,413

73,635

23,485

192,533

Total revenue

508,442

214,862

42,631

765,935


		Year Ended December 31, 2018
					Treasury
	Retail		Commercial		and
(dollars in thousands)	Banking		Banking		Other		Total
Net interest income⁽¹⁾	$	420,165	$	140,333	$	5,820	$	566,318

Service charges on deposit accounts		28,866		1,146		2,024		32,036
Credit and debit card fees		—		78,218		7,080		85,298
Other service charges and fees		19,977		4,089		2,175		26,241
Trust and investment services income		31,324		—		—		31,324
Other		585		6,616		2,731		9,932
Not in scope of Topic 606⁽¹⁾		8,917		(9,165)		(5,590)		(5,838)
Total noninterest income		89,669		80,904		8,420		178,993
Total revenue	$	509,834	$	221,237	$	14,240	$	745,311

(1)	Most of the Company’s revenue is not within the scope of Topic 606. The guidance explicitly excludes net interest income from financial assets and liabilities as well as other noninterest income from loans, leases, investment securities and derivative financial instruments.

Investment Securities - Unrealized Gross Losses and Fair Values of Securities in a Continuous Loss Position (Details) $ in Thousands	Dec. 31, 2019 USD ($) security	Dec. 31, 2018 USD ($) security
Securities in the available-for-sale portfolio in a continuous loss position
Number of individual securities in a continuous loss position \| security	118	154
Time in Continuous Loss, Unrealized Losses
Less Than 12 Months Unrealized Losses	$ (9,658)	$ (1)
12 Months or More Unrealized Losses	(14,329)	(142,161)
Total Unrealized Losses	(23,987)	(142,162)
Time in Continuous Loss, Fair Value
Less Than 12 Months Fair Value	1,314,806	172
12 Months or More Fair Value	994,155	3,619,406
Total Fair Value	2,308,961	3,619,578
Government-sponsored enterprises debt securities
Time in Continuous Loss, Unrealized Losses
Less Than 12 Months Unrealized Losses	(277)
12 Months or More Unrealized Losses		(6,778)
Total Unrealized Losses	(277)	(6,778)
Time in Continuous Loss, Fair Value
Less Than 12 Months Fair Value	49,716
12 Months or More Fair Value		157,939
Total Fair Value	49,716	157,939
Residential - Government agency
Time in Continuous Loss, Unrealized Losses
12 Months or More Unrealized Losses	(1,146)	(15,174)
Total Unrealized Losses	(1,146)	(15,174)
Time in Continuous Loss, Fair Value
12 Months or More Fair Value	109,614	373,891
Total Fair Value	109,614	373,891
Residential - Government-sponsored enterprises
Time in Continuous Loss, Unrealized Losses
Less Than 12 Months Unrealized Losses	(115)	(1)
12 Months or More Unrealized Losses	(1,558)	(5,293)
Total Unrealized Losses	(1,673)	(5,294)
Time in Continuous Loss, Fair Value
Less Than 12 Months Fair Value	76,481	172
12 Months or More Fair Value	109,025	125,869
Total Fair Value	185,506	126,041
Commercial - Government-sponsored enterprises
Time in Continuous Loss, Unrealized Losses
Less Than 12 Months Unrealized Losses	(634)
Total Unrealized Losses	(634)
Time in Continuous Loss, Fair Value
Less Than 12 Months Fair Value	38,062
Total Fair Value	38,062
Government agency
Time in Continuous Loss, Unrealized Losses
Less Than 12 Months Unrealized Losses	(8,049)
12 Months or More Unrealized Losses	(8,299)	(97,171)
Total Unrealized Losses	(16,348)	(97,171)
Time in Continuous Loss, Fair Value
Less Than 12 Months Fair Value	969,762
12 Months or More Fair Value	565,764	2,475,532
Total Fair Value	1,535,526	2,475,532
Government-sponsored enterprises
Time in Continuous Loss, Unrealized Losses
Less Than 12 Months Unrealized Losses	(583)
12 Months or More Unrealized Losses	(3,326)	(17,745)
Total Unrealized Losses	(3,909)	(17,745)
Time in Continuous Loss, Fair Value
Less Than 12 Months Fair Value	180,785
12 Months or More Fair Value	209,752	486,175
Total Fair Value	$ 390,537	$ 486,175

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net income	$ 284,392	$ 264,394	$ 183,682
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan and lease losses	13,800	22,180	18,500
Depreciation, amortization and accretion, net	67,824	54,903	62,019
Deferred income taxes	17,060	(3,602)	58,916
Stock-based compensation	7,826	6,185	5,292
Net gains on sale of real estate			(6,922)
Other losses (gains)	19	(1,062)	(210)
Originations of loans held for sale	(19,164)	(29,707)
Proceeds from sales of loans held for sale	18,156	29,467
Net losses (gains) on sales of loans originated for investment and held for sale	1,102	(199)	(16)
Net losses on investment securities	2,715
OTTI losses on available-for-sale debt securities		24,085
Change in assets and liabilities:
Net (increase) decrease in other assets	(20,923)	11,859	(42,359)
Net decrease in other liabilities	(76,303)	(27,090)	(9,128)
Net cash provided by operating activities	296,504	351,413	269,774
Available-for-sale securities:
Proceeds from maturities and principal repayments	767,892	810,260	888,700
Proceeds from calls and sales	1,070,715
Purchases	(1,301,041)	(130,252)	(1,088,417)
Other investments:
Proceeds from sales	14,292	12,842	15,517
Purchases	(30,996)	(65,239)	(20,487)
Loans:
Net increase in loans and leases resulting from originations and principal repayments	(133,702)	(572,488)	(750,917)
Proceeds from sales of loans originated for investment	407,698	562	9,711
Purchases of loans	(398,735)	(270,272)	(26,626)
Proceeds from bank-owned life insurance	7,682	1,151	4,482
Purchases of premises, equipment and software	(29,354)	(35,880)	(10,068)
Proceeds from sales of premises and equipment	2	65	8,139
Purchases of mortgage servicing rights		(6,444)
Proceeds from sales of other real estate owned	759	718	929
Other		(2,832)	(2,044)
Net cash provided by (used in) investing activities	375,212	(257,809)	(971,081)
Cash flows from financing activities
Net (decrease) increase in deposits	(705,074)	(462,054)	817,590
Net decrease in short-term borrowings			(9,151)
Proceeds from long-term borrowings		600,000
Repayment of long-term borrowings	(10)	(10)	(10)
Dividends paid	(138,246)	(131,036)	(122,810)
Distributions paid			(2,118)
Stock tendered for payment of withholding taxes	(1,764)	(53)	(136)
Proceeds from employee stock purchase plan		342	528
Common stock repurchased	(136,242)	(131,800)
Net cash (used in) provided by financing activities	(981,336)	(124,611)	683,893
Net decrease in cash and cash equivalents	(309,620)	(31,007)	(17,414)
Cash and cash equivalents at beginning of period	1,003,637	1,034,644	1,052,058
Cash and cash equivalents at end of period	694,017	1,003,637	1,034,644
Supplemental disclosures
Interest paid	102,457	80,381	36,633
Income taxes paid, net of income tax refunds	70,508	43,002	145,072
Noncash investing and financing activities:
Transfers from loans and leases to other real estate owned	310	549	759
Operating lease right-of-use assets obtained in exchange for new lease obligations	1,401
Transfers from loans and leases to loans held for sale	408,264		10,251
Obligation to fund low-income housing partnerships	$ 31,628	$ 36,044	$ 34,835

Parent Company - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 694,017	$ 1,003,637	$ 1,034,644	$ 1,052,058
Other assets	490,573	446,404
Total assets	20,166,734	20,695,678	20,549,461
Liabilities and Stockholders' Equity
Retirement benefits payable	138,222	127,909
Other liabilities	343,241	292,836
Total liabilities	17,526,476	18,170,839
Stockholders' equity
Stockholders' equity	2,640,258	2,524,839	2,532,551	2,476,485
Total liabilities and stockholders' equity	20,166,734	20,695,678
Parent Company
Assets
Cash and cash equivalents	24,455	5,647	$ 14,337	$ 5,994
Investment in FHB	2,617,949	2,521,347
Other assets	24,969	19,358
Total assets	2,667,373	2,546,352
Liabilities and Stockholders' Equity
Retirement benefits payable	553	509
Other liabilities	26,562	21,004
Total liabilities	27,115	21,513
Stockholders' equity
Stockholders' equity	2,640,258	2,524,839
Total liabilities and stockholders' equity	$ 2,667,373	$ 2,546,352

Reportable Operating Segments - Business Segments (Details)	12 Months Ended
	Dec. 31, 2019 segment location
Reportable operating segments
Number of business segments \| segment	3
First Hawaiian Bank (FHB)
Reportable operating segments
Number of Branches	58
Retail Banking
Reportable operating segments
Number of Branches	58

Transactions with Affiliates and Related Parties - Loans to Executive Officers, Directors and Affiliates (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Changes in loans executive officers, directors and affiliates
Balance at beginning of year	$ 66,088	$ 61,603	$ 94,466
New loans made	22,682	6,756	3,762
Repayments	(3,490)	(2,271)	(36,625)
Balance at end of year	$ 85,280	$ 66,088	$ 61,603

Allowance for Loan and Lease Losses - Activity (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) class segment	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Allowance for loan and lease losses
Number of primary portfolio segments \| segment	3
Allowance for loan and lease losses:
Balance at beginning of period	$ 141,718	$ 137,253	$ 135,494
Charge-offs	(35,987)	(27,573)	(25,925)
Recoveries	10,999	9,858	9,184
Increase (decrease) in Provision	13,800	22,180	18,500
Balance at end of period	130,530	141,718	137,253
Individually evaluated for impairment				$ 203	$ 536	$ 494
Collectively evaluated for impairment				130,327	141,182	136,759
Total allowance for loan and lease losses	$ 130,530	141,718	137,253	130,530	141,718	137,253
Loans and leases:
Individually evaluated for impairment				20,638	30,576	45,349
Collectively evaluated for impairment				13,191,012	13,045,615	12,232,020
Total loans and leases				13,211,650	13,076,191	12,277,369
Commercial Lending
Allowance for loan and lease losses
Number of distinct portfolios \| class	4
Commercial and Industrial
Allowance for loan and lease losses:
Balance at beginning of period	$ 34,501	34,006	33,129
Charge-offs	(2,718)	(778)	(1,519)
Recoveries	410	232	844
Increase (decrease) in Provision	(3,218)	1,041	1,552
Balance at end of period	28,975	34,501	34,006
Individually evaluated for impairment				46	108	4
Collectively evaluated for impairment				28,929	34,393	34,002
Total allowance for loan and lease losses	34,501	34,501	34,006	28,975	34,501	34,006
Loans and leases:
Individually evaluated for impairment				4,951	8,719	18,183
Collectively evaluated for impairment				2,738,291	3,200,041	3,117,083
Total loans and leases				2,743,242	3,208,760	3,135,266
Commercial real estate
Allowance for loan and lease losses:
Balance at beginning of period	19,725	18,044	18,448
Recoveries	263	216	596
Increase (decrease) in Provision	2,337	1,465	(1,000)
Balance at end of period	22,325	19,725	18,044
Individually evaluated for impairment				27	32	6
Collectively evaluated for impairment				22,298	19,693	18,038
Total allowance for loan and lease losses	19,725	19,725	18,044	22,325	19,725	18,044
Loans and leases:
Individually evaluated for impairment				723	5,743	10,636
Collectively evaluated for impairment				3,463,230	2,985,040	2,656,961
Total loans and leases				3,463,953	2,990,783	2,667,597
Construction
Allowance for loan and lease losses:
Balance at beginning of period	5,813	6,817	4,513
Increase (decrease) in Provision	(969)	(1,004)	2,304
Balance at end of period	4,844	5,813	6,817
Collectively evaluated for impairment				4,844	5,813	6,817
Total allowance for loan and lease losses	5,813	5,813	6,817	4,844	5,813	6,817
Loans and leases:
Collectively evaluated for impairment				519,241	626,757	632,911
Total loans and leases				519,241	626,757	632,911
Lease financing
Allowance for loan and lease losses:
Balance at beginning of period	432	611	847
Charge-offs	(24)		(147)
Increase (decrease) in Provision	16	(179)	(89)
Balance at end of period	424	432	611
Collectively evaluated for impairment				424	432	611
Total allowance for loan and lease losses	432	432	611	424	432	611
Loans and leases:
Collectively evaluated for impairment				202,483	147,769	165,066
Total loans and leases				202,483	147,769	165,066
Residential
Allowance for loan and lease losses
Specific allocation for impaired loans in which the net collateral value exceeds the unpaid principal balance of the loan				0
Allowance for loan and lease losses:
Balance at beginning of period	44,906	42,852	43,436
Charge-offs	(438)	(165)	(408)
Recoveries	967	940	687
Increase (decrease) in Provision	(6,256)	1,279	(863)
Balance at end of period	39,179	44,906	42,852
Individually evaluated for impairment				130	396	484
Collectively evaluated for impairment				39,049	44,510	42,368
Total allowance for loan and lease losses	44,906	44,906	42,852	39,179	44,906	42,852
Loans and leases:
Individually evaluated for impairment				14,964	16,114	16,530
Collectively evaluated for impairment				4,647,211	4,423,504	4,073,523
Total loans and leases				4,662,175	4,439,618	4,090,053
Consumer
Allowance for loan and lease losses:
Balance at beginning of period	35,813	31,249	28,388
Charge-offs	(32,807)	(26,630)	(23,851)
Recoveries	9,359	8,470	7,057
Increase (decrease) in Provision	22,279	22,724	19,655
Balance at end of period	34,644	35,813	31,249
Collectively evaluated for impairment				34,644	35,813	31,249
Total allowance for loan and lease losses	35,813	35,813	31,249	34,644	35,813	31,249
Loans and leases:
Collectively evaluated for impairment				1,620,556	1,662,504	1,586,476
Total loans and leases				1,620,556	1,662,504	1,586,476
Unallocated
Allowance for loan and lease losses:
Balance at beginning of period	528	3,674	6,733
Increase (decrease) in Provision	(389)	(3,146)	(3,059)
Balance at end of period	139	528	3,674
Collectively evaluated for impairment				139	528	3,674
Total allowance for loan and lease losses	$ 528	$ 528	$ 3,674	$ 139	$ 528	$ 3,674

Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenue from Contracts with Customers
Net interest income	$ 573,402	$ 566,318	$ 528,804
Not in scope of Topic 606	25,137	(5,838)
Total noninterest income	192,533	178,993	205,605
Total revenue	765,935	745,311
Retail Banking
Revenue from Contracts with Customers
Net interest income	413,029	420,165	409,796
Not in scope of Topic 606	8,844	8,917
Total noninterest income	95,413	89,669	89,372
Total revenue	508,442	509,834
Commercial Banking
Revenue from Contracts with Customers
Net interest income	141,227	140,333	131,692
Not in scope of Topic 606	7,368	(9,165)
Total noninterest income	73,635	80,904	75,566
Total revenue	214,862	221,237
Treasury and Other
Revenue from Contracts with Customers
Net interest income	19,146	5,820	(12,684)
Not in scope of Topic 606	8,925	(5,590)
Total noninterest income	23,485	8,420	$ 40,667
Total revenue	42,631	14,240
Service charges on deposit accounts.
Revenue from Contracts with Customers
Revenue by type of service	33,778	32,036
Service charges on deposit accounts. \| Retail Banking
Revenue from Contracts with Customers
Revenue by type of service	30,298	28,866
Service charges on deposit accounts. \| Commercial Banking
Revenue from Contracts with Customers
Revenue by type of service	1,238	1,146
Service charges on deposit accounts. \| Treasury and Other
Revenue from Contracts with Customers
Revenue by type of service	2,242	2,024
Credit and debit card fees.
Revenue from Contracts with Customers
Revenue by type of service	64,846	85,298
Credit and debit card fees. \| Commercial Banking
Revenue from Contracts with Customers
Revenue by type of service	58,034	78,218
Credit and debit card fees. \| Treasury and Other
Revenue from Contracts with Customers
Revenue by type of service	6,812	7,080
Other service charges and fees.
Revenue from Contracts with Customers
Revenue by type of service	24,705	26,241
Other service charges and fees. \| Retail Banking
Revenue from Contracts with Customers
Revenue by type of service	20,454	19,977
Other service charges and fees. \| Commercial Banking
Revenue from Contracts with Customers
Revenue by type of service	2,096	4,089
Other service charges and fees. \| Treasury and Other
Revenue from Contracts with Customers
Revenue by type of service	2,155	2,175
Trust and investment services income.
Revenue from Contracts with Customers
Revenue by type of service	35,102	31,324
Trust and investment services income. \| Retail Banking
Revenue from Contracts with Customers
Revenue by type of service	35,102	31,324
Other.
Revenue from Contracts with Customers
Revenue by type of service	8,965	9,932
Other. \| Retail Banking
Revenue from Contracts with Customers
Revenue by type of service	715	585
Other. \| Commercial Banking
Revenue from Contracts with Customers
Revenue by type of service	4,899	6,616
Other. \| Treasury and Other
Revenue from Contracts with Customers
Revenue by type of service	$ 3,351	$ 2,731

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of components of provision for income taxes


	Year Ended December 31,
(dollars in thousands)	2019		2018		2017
Current:
Federal	$	56,450	$	69,477	$	101,162
State and local		23,796		27,909		24,595
Total current		80,246		97,386		125,757
Deferred:
Federal		14,047		(2,043)		58,732
State and local		3,013		(1,559)		184
Total deferred		17,060		(3,602)		58,916
Total provision for income taxes	$	97,306	$	93,784	$	184,673

Schedule of components of net deferred income tax assets and liabilities


	December 31,
(dollars in thousands)	2019		2018
Assets:
Deferred compensation expense	$	56,148	$	56,989
Allowance for loan and lease losses and nonperforming assets		35,195		38,245
Lease liabilities		11,951		—
Investment securities		2,474		45,846
State income taxes		3,338		5,378
Total deferred income tax assets before valuation allowance		109,106		146,458
Valuation allowance		(1,393)		(1,901)
Total deferred income tax assets after valuation allowance		107,713		144,557
Liabilities:
Leases		(14,873)		(10,597)
Deferred income		(16,069)		(15,471)
Lease right-of-use assets		(11,931)		—
Intangible assets		(500)		(788)
Other		(10,570)		(9,852)
Total deferred income tax liabilities		(53,943)		(36,708)
Net deferred income tax assets	$	53,770	$	107,849

Schedule of reconciliation of Federal statutory to effective income tax rate


	Year Ended December 31,
	2019				2018				2017
(dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Federal statutory income tax expense and rate	$	80,157	21.00	%	$	75,217	21.00	%	$	128,924	35.00	%
State and local taxes, net of federal income tax benefit		21,179	5.55			20,817	5.81			16,106	4.37
Impact of Tax Reform		—	—			—	—			47,598	12.92
Nontaxable income		(3,269)	(0.86)			(2,037)	(0.57)			(4,974)	(1.35)
Other		(761)	(0.20)			(213)	(0.06)			(2,981)	(0.81)
Income tax expense and effective income tax rate	$	97,306	25.49	%	$	93,784	26.18	%	$	184,673	50.13	%

Schedule of reconciliation of unrecognized tax benefits


	Year Ended December 31,
	2019						2018						2017
			Interest						Interest						Interest
			and						and						and
(dollars in thousands)	Tax		Penalties		Total		Tax		Penalties		Total		Tax		Penalties		Total
Balance at beginning of year	$	131,570	$	12,524	$	144,094	$	130,619	$	10,660	$	141,279	$	127,085	$	9,965	$	137,050
Additions for current year tax positions		1,038		—		1,038		2,260		—		2,260		2,727		—		2,727
Additions for Reorganization Transactions		—		986		986		—		832		832		—		226		226
Additions for prior years' tax positions:
New uncertain tax positions identified		1,894		—		1,894		—		—		—		—		—		—
Accrual of interest and penalties		—		1,280		1,280		—		1,159		1,159		—		621		621
Other		—		—		—		—		—		—		1,152		—		1,152
Reductions for prior years' tax positions:
Expiration of statute of limitations		(190)		(89)		(279)		(280)		(127)		(407)		(345)		(152)		(497)
Other		—		—		—		(1,029)		—		(1,029)		—		—		—
Balance at December 31,	$	134,312	$	14,701	$	149,013	$	131,570	$	12,524	$	144,094	$	130,619	$	10,660	$	141,279

Other Assets

12 Months Ended

Dec. 31, 2019

Other assets.

Other assets

7. Other Assets

Goodwill

Goodwill originated from the acquisition of BancWest by BNPP in December 2001. Goodwill generated in that acquisition was recorded on the Company’s consolidated balance sheets as a result of push-down accounting treatment.

The carrying amount of goodwill reported in two of the Company’s reporting segments as of December 31, 2019 and 2018 were as shown below. The Treasury and Other segment is not assigned goodwill.


	Retail		Commercial
(in thousands)	Banking		Banking		Total
December 31, 2019	$	687,492	$	308,000	$	995,492
December 31, 2018		687,492		308,000		995,492

There was no impairment of the Company’s goodwill for the years ended December 31, 2019, 2018 and 2017.

Mortgage Servicing Rights (“MSRs”)

Mortgage servicing activities include collecting principal, interest, tax and insurance payments from borrowers while accounting for and remitting payments to investors, taxing authorities and insurance companies. The Company also monitors delinquencies and administers foreclosure proceedings.

Mortgage loan servicing income is recorded in noninterest income as a part of other service charges and fees and amortization of the servicing assets is recorded in noninterest income as part of other income. The unpaid principal amount of residential real estate loans serviced for others was $2.3 billion and $2.7 billion as of December 31, 2019 and 2018, respectively. Servicing fees include contractually specified fees, late charges and ancillary fees and were $6.3 million, $7.0 million and $6.5 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Amortization of MSRs was $3.6 million, $3.8 million and $3.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. The estimated future amortization expenses for MSRs over the next five years are as follows:


	Estimated
(dollars in thousands)	Amortization
Year ending December 31:
2020	$	2,129
2021		1,808
2022		1,530
2023		1,295
2024		1,101

The details of the Company’s MSRs are presented below:


	December 31,
(dollars in thousands)	2019		2018
Gross carrying amount	$	63,480	$	63,342
Less: accumulated amortization		50,812		47,187
Net carrying value	$	12,668	$	16,155

The following table presents changes in amortized MSRs for the years indicated:


	Year Ended December 31,
(dollars in thousands)	2019		2018
Balance at beginning of year	$	16,155	$	13,196
Originations		138		328
Purchases		—		6,444
Amortization		(3,625)		(3,813)
Balance at end of year	$	12,668	$	16,155
Fair value of amortized MSRs at beginning of year	$	27,662	$	21,697
Fair value of amortized MSRs at end of year	$	20,329	$	27,662
Balance of loans serviced for others	$	2,344,899	$	2,664,860

MSRs are evaluated for impairment if events and circumstances indicate a possible impairment. No impairment of MSRs was recorded for the years ended December 31, 2019, 2018 and 2017.

The quantitative assumptions used in determining the lower of cost or fair value of the Company’s MSRs were as follows:


	December 31, 2019							December 31, 2018
						Weighted							Weighted
	Range					Average		Range					Average
Conditional prepayment rate	10.74	%	-	23.39	%	11.10	%	7.86	%	-	19.26	%	8.31	%
Life in years (of the MSR)	2.04		-	6.33		5.99		3.43		-	7.68		7.19
Weighted-average coupon rate	3.96	%	-	7.26	%	4.01	%	3.97	%	-	6.70	%	4.02	%
Discount rate	10.00	%	-	10.01	%	10.00	%	10.00	%	-	10.02	%	10.00	%

The sensitivities surrounding MSRs are expected to have an immaterial impact on fair value.

Other

The Company had $145.6 million and $111.5 million in affordable housing and other tax credit investment partnership interest as of December 31, 2019 and 2018, respectively, included in other assets on the consolidated balance sheets. The amount of amortization of such investments reported in the provision for income taxes was $11.3 million, $5.2 million and $3.5 million during the years ended December 31, 2019, 2018 and 2017, respectively. The affordable housing tax credits and other benefits recognized during the years ended December 31, 2019, 2018 and 2017 were $10.6 million, $6.3 million and $4.5 million, respectively.

Nonmarketable equity securities include FHLB stock, which the Company holds to meet regulatory requirements. As a member of the FHLB system, the Company is required to maintain a minimum level of investment in FHLB non-publicly traded stock based on specific percentages of the Company’s total assets and outstanding advances in accordance with the FHLB’s capital plan which may be amended or revised periodically. Amounts in excess of the required minimum may be transferred at par to another member institution subject to prior approval of the FHLB. Excess stock may also be sold to the FHLB subject to a five-year redemption notice period and at the sole discretion of the FHLB. These securities are accounted for under the cost method. These investments are considered long-term investments by management and accordingly, the ultimate recoverability of its par value is considered rather than considering temporary declines in value. The investment in FHLB stock was included in other assets on the consolidated balance sheets and was $34.1 million as of both December 31, 2019 and 2018.

Organization and Basis of Presentation - Defined Benefit Assumption and Advertising and Marketing Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Expected long term rate of return for defined benefit plans
Time period for average rate of return	20 years
Percentage of greater of projected benefit obligation or fair value of plan assets for amortization of actuarial gains or losses	5.00%
Amortization period for actuarial gains and losses that exceed threshold	5 years
Advertising and marketing costs
Advertising and marketing	$ 6,910	$ 4,813	$ 6,191

Parent Company - Condensed Statements of Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income
Total revenue	$ 765,935	$ 745,311
Noninterest expense
Salaries and employee benefits	173,098	167,162	$ 163,086
Contracted services and professional fees	56,321	49,775	45,011
Equipment	17,343	17,714	17,247
Advertising and marketing	6,910	4,813	6,191
Other	50,661	59,082	54,264
Total noninterest expense	370,437	364,953	347,554
Benefit (provision) for income taxes	(97,306)	(93,784)	(184,673)
Net income (loss)	284,392	264,394	183,682
Comprehensive income	384,838	248,650	175,310
Parent Company
Income
Dividends from FHB	300,300	263,400	105,400
Other income	1,691	1,541	3,937
Total revenue	301,991	264,941	109,337
Noninterest expense
Salaries and employee benefits	5,241	5,940	5,949
Contracted services and professional fees	2,689	3,780	3,643
Equipment		31	55
Advertising and marketing			1
Other	721	732	570
Total noninterest expense	8,651	10,483	10,218
Income before benefit (provision) for income taxes and (excess distributions) equity in undistributed income of FHB	293,340	254,458	99,119
Benefit (provision) for income taxes	1,672	1,184	(642)
(Excess distributions) equity in undistributed income of FHB	(10,620)	8,752	85,205
Net income (loss)	284,392	264,394	183,682
Comprehensive income	$ 384,838	$ 248,650	$ 175,310

Premises and Equipment - Components and Depreciation and Amortization Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Components of premises and equipment
Premises and equipment	$ 547,071	$ 522,813
Less: Accumulated depreciation and amortization	230,186	217,817
Net book value	316,885	304,996
Depreciation and amortization expenses	14,522	15,303	$ 15,278
Occupancy
Components of premises and equipment
Depreciation and amortization expenses	9,037	8,815	8,852
Equipment
Components of premises and equipment
Depreciation and amortization expenses	5,485	6,488	$ 6,426
Buildings
Components of premises and equipment
Premises and equipment	289,271	280,853
Less: Accumulated depreciation and amortization	141,300	133,700
Furniture and equipment
Components of premises and equipment
Premises and equipment	86,485	81,342
Land
Components of premises and equipment
Premises and equipment	106,487	105,302
Leasehold improvements
Components of premises and equipment
Premises and equipment	$ 64,828	$ 55,316

Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets:
Deferred compensation expense	$ 56,148	$ 56,989
Allowance for loan and lease losses and nonperforming assets	35,195	38,245
Lease liabilities	11,951
Investment securities	2,474	45,846
State income taxes	3,338	5,378
Total deferred income tax assets before valuation allowance	109,106	146,458
Valuation allowance	(1,393)	(1,901)
Total deferred income tax assets after valuation allowance	107,713	144,557
Liabilities:
Leases	(14,873)	(10,597)
Deferred income	(16,069)	(15,471)
Lease right-of-use assets	(11,931)
Intangible assets	(500)	(788)
Other	(10,570)	(9,852)
Total deferred income tax liabilities	(53,943)	(36,708)
Net deferred income tax assets	$ 53,770	$ 107,849

Other Assets - Affordable Housing and Other Tax Credit Investment Partnerships (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Affordable housing and other tax credit investment partnership interests
Affordable housing tax credits and other benefits recognized	$ 10.6	$ 6.3	$ 4.5
Provision for income taxes
Affordable housing and other tax credit investment partnership interests
Amortization	11.3	5.2	$ 3.5
Included in other assets
Affordable housing and other tax credit investment partnership interests
Investment partnership interest	$ 145.6	$ 111.5

Allowance for Loan and Lease Losses - Aging of Analysis of Past Due Loans and Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due
Total Past Due	$ 58,126	$ 58,614
Current	13,148,056	13,011,034
Total Accruing Loans and Leases	13,206,182	13,069,648
Total Non Accruing Loans and Leases	5,468	6,543
Total loans and leases	13,211,650	13,076,191	$ 12,277,369
30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	36,228	41,727
60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	9,748	10,499
Greater Than or Equal to 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	12,150	6,388
Commercial and Industrial
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3,762	1,434
Current	2,739,448	3,207,052
Total Accruing Loans and Leases	2,743,210	3,208,486
Total Non Accruing Loans and Leases	32	274
Total loans and leases	2,743,242	3,208,760	3,135,266
Commercial and Industrial \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,525	1,293
Commercial and Industrial \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	808
Commercial and Industrial \| Greater Than or Equal to 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,429	141
Commercial real estate
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3,802
Current	3,460,121	2,989,125
Total Accruing Loans and Leases	3,463,923	2,989,125
Total Non Accruing Loans and Leases	30	1,658
Total loans and leases	3,463,953	2,990,783	2,667,597
Commercial real estate \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,664
Commercial real estate \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,125
Commercial real estate \| Greater Than or Equal to 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	1,013
Construction
Financing Receivable, Recorded Investment, Past Due
Total Past Due	2,367	91
Current	516,874	626,666
Total Accruing Loans and Leases	519,241	626,757
Total loans and leases	519,241	626,757	632,911
Construction \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due		91
Construction \| Greater Than or Equal to 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	2,367
Lease financing
Financing Receivable, Recorded Investment, Past Due
Total Past Due		47
Current	202,483	147,722
Total Accruing Loans and Leases	202,483	147,769
Total loans and leases	202,483	147,769	165,066
Lease financing \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due		47
Residential
Financing Receivable, Recorded Investment, Past Due
Total loans and leases	4,662,175	4,439,618	4,090,053
Consumer
Financing Receivable, Recorded Investment, Past Due
Total Past Due	38,104	44,491
Current	1,582,452	1,618,013
Total Accruing Loans and Leases	1,620,556	1,662,504
Total loans and leases	1,620,556	1,662,504	$ 1,586,476
Consumer \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	26,810	32,406
Consumer \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	7,022	8,712
Consumer \| Greater Than or Equal to 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	4,272	3,373
Residential mortgage \| Residential
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3,731	3,318
Current	3,759,799	3,519,172
Total Accruing Loans and Leases	3,763,530	3,522,490
Total Non Accruing Loans and Leases	5,406	4,611
Total loans and leases	3,768,936	3,527,101
Residential mortgage \| Residential \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	3,258	2,274
Residential mortgage \| Residential \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	399	1,012
Residential mortgage \| Residential \| Greater Than or Equal to 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	74	32
Home equity \| Home equity Line
Financing Receivable, Recorded Investment, Past Due
Total Past Due	6,360	9,233
Current	886,879	903,284
Total Accruing Loans and Leases	893,239	912,517
Total loans and leases	893,239	912,517
Home equity \| Home equity Line \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	2,971	5,616
Home equity \| Home equity Line \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	394	775
Home equity \| Home equity Line \| Greater Than or Equal to 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Total Past Due	2,995	2,842
Consumer loans \| Consumer
Financing Receivable, Recorded Investment, Past Due
Total loans and leases	226,304	239,906
Consumer - Auto \| Consumer
Financing Receivable, Recorded Investment, Past Due
Total loans and leases	1,040,468	1,078,132
Credit Cards \| Consumer
Financing Receivable, Recorded Investment, Past Due
Total loans and leases	$ 353,784	$ 344,466

Income Taxes - Effective Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of the Federal statutory income tax rate to the effective income tax rate, Amount
Federal statutory income tax expense	$ 80,157	$ 75,217	$ 128,924
State and local taxes, net of federal income tax benefit	21,179	20,817	16,106
Impact of Tax Reform			47,598
Nontaxable income	(3,269)	(2,037)	(4,974)
Other	(761)	(213)	(2,981)
Total provision for income taxes	$ 97,306	$ 93,784	$ 184,673
Reconciliation of the Federal statutory income tax rate to the effective income tax rate, Percent
Federal statutory income tax rate, Percent	21.00%	21.00%	35.00%
State and local taxes, net of federal income tax benefit (as a percent)	5.55%	5.81%	4.37%
Impact of Tax Reform (as a percent)			12.92%
Nontaxable income (as a percent)	(0.86%)	(0.57%)	(1.35%)
Other (as a percent)	(0.20%)	(0.06%)	(0.81%)
Effective Income Tax Rate Reconciliation, Percent, Total	25.49%	26.18%	50.13%

Benefit Plans - Incentive Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Incentive Plan for Key Executives \| Salaries and employee benefits
Incentive Plans
Incentive plan expense	$ 15.6	$ 14.3	$ 13.3

Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension Benefits
Components of net periodic benefit cost
Service cost	$ 14	$ 696
Interest cost	8,261	7,362
Total net periodic benefit cost	10,685	10,100	$ 12,548
Pension Benefits \| Salaries and employee benefits
Components of net periodic benefit cost
Service cost	14	696	629
Pension Benefits \| Other noninterest expense
Components of net periodic benefit cost
Interest cost	8,261	7,362	8,297
Expected return on plan assets	(4,585)	(5,273)	(5,003)
Recognized net actuarial loss (gain)	6,995	7,315	8,625
Pension Benefits \| Funded Plan
Components of net periodic benefit cost
Interest cost	3,808	3,420	3,922
Expected return on plan assets	(4,585)	(5,273)	(5,003)
Recognized net actuarial loss (gain)	3,714	2,600	4,316
Total net periodic benefit cost	2,937	747	3,235
Other Benefits
Components of net periodic benefit cost
Service cost	710	750
Interest cost	808	739
Total net periodic benefit cost	704	1,060	1,085
Other Benefits \| Salaries and employee benefits
Components of net periodic benefit cost
Service cost	710	750	738
Other Benefits \| Other noninterest expense
Components of net periodic benefit cost
Interest cost	808	739	776
Prior service credit	(429)	$ (429)	$ (429)
Recognized net actuarial loss (gain)	$ (385)

Derivative Financial Instruments - Net Gains and Losses Recognized in Income, Fair Value Hedges (Details) - Fair value hedges - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Interest rate swaps \| Interest income, loans and lease financing
Gains and losses related to derivatives
Loss recognized	$ (671)
Interest rate swaps \| Noninterest income, Other
Gains and losses related to derivatives
Gain recognized		$ 629	$ 846
Hedged item \| Interest income, loans and lease financing
Gains and losses related to derivatives
Gain recognized	$ 735
Hedged item \| Noninterest income, Other
Gains and losses related to derivatives
Loss recognized		$ (723)	$ (841)

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings per Share

Schedule of computations of basic and diluted earnings per share


	Year Ended December 31,
(dollars in thousands, except shares and per share amounts)	2019		2018		2017
Numerator:
Net income	$	284,392	$	264,394	$	183,682

Denominator:
Basic: weighted-average shares outstanding		133,076,489		136,945,134		139,560,305
Add: weighted-average equity-based awards		310,668		166,286		96,688
Diluted: weighted-average shares outstanding		133,387,157		137,111,420		139,656,993

Basic earnings per share	$	2.14	$	1.93	$	1.32
Diluted earnings per share	$	2.13	$	1.93	$	1.32

Investment Securities - Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Available for sale debt securities
Amortized Cost	$ 4,080,663	$ 4,640,419
Unrealized Gains	18,968	85
Unrealized Losses	(23,987)	(142,162)
Fair value	4,075,644	4,498,342
U.S. Treasury securities
Available for sale debt securities
Amortized Cost	29,832	389,470
Unrealized Gains	56
Fair value	29,888	389,470
Government-sponsored enterprises debt securities
Available for sale debt securities
Amortized Cost	101,697	248,372
Unrealized Gains	19
Unrealized Losses	(277)	(6,778)
Fair value	101,439	241,594
Residential - Government agency
Available for sale debt securities
Amortized Cost	290,131	426,710
Unrealized Gains	2,224
Unrealized Losses	(1,146)	(15,174)
Fair value	291,209	411,536
Residential - Government-sponsored enterprises
Available for sale debt securities
Amortized Cost	395,039	156,056
Unrealized Gains	6,126	85
Unrealized Losses	(1,673)	(5,294)
Fair value	399,492	150,847
Commercial - Government-sponsored enterprises
Available for sale debt securities
Amortized Cost	101,798
Unrealized Gains	555
Unrealized Losses	(634)
Fair value	101,719
Government agency
Available for sale debt securities
Amortized Cost	2,390,143	2,779,620
Unrealized Gains	7,483
Unrealized Losses	(16,348)	(97,171)
Fair value	2,381,278	2,682,449
Government-sponsored enterprises
Available for sale debt securities
Amortized Cost	772,023	620,337
Unrealized Gains	2,505
Unrealized Losses	(3,909)	(17,745)
Fair value	$ 770,619	602,592
Debt securities issued by states and political subdivisions
Available for sale debt securities
Amortized Cost		19,854
Fair value		$ 19,854

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Taxes

Income Taxes

16. Income Taxes

On December 22, 2017, President Trump signed into law the Tax Act. The Tax Act made many significant amendments to the Internal Revenue Code of 1986, as amended (the “Code”), including reducing the corporate tax rate from 35% to 21%, effective January 1, 2018. GAAP requires that companies record and reflect the impact of the Tax Act in their financial statements for the quarter during which the Tax Act becomes law, even if provisions of the Tax Act become effective at a future date. Accordingly, the Company reported the impact of the Tax Act on its results of operations in its consolidated financial statements for the fourth quarter and year ended December 31, 2017. The reduction in the corporate tax rate under the Tax Act required a one-time revaluation of certain tax-related assets, which resulted in the Company recording $47.6 million in additional income tax expense in our consolidated statements of income in the fourth quarter of 2017.

For the years ended December 31, 2019, 2018 and 2017, the provision for income taxes was comprised of the following:


	Year Ended December 31,
(dollars in thousands)	2019		2018		2017
Current:
Federal	$	56,450	$	69,477	$	101,162
State and local		23,796		27,909		24,595
Total current		80,246		97,386		125,757
Deferred:
Federal		14,047		(2,043)		58,732
State and local		3,013		(1,559)		184
Total deferred		17,060		(3,602)		58,916
Total provision for income taxes	$	97,306	$	93,784	$	184,673

The Company files Federal and state income tax returns for its subsidiaries. The Company’s subsidiary also files income tax returns in Guam and Saipan. The Company had a current income tax receivable due from various jurisdictions of $24.4 million and $25.3 million as of December 31, 2019 and 2018, respectively, for its share of consolidated and combined tax overpayments that had not yet been received.

The components of net deferred income tax assets and liabilities at December 31, 2019 and 2018, were as follows:


	December 31,
(dollars in thousands)	2019		2018
Assets:
Deferred compensation expense	$	56,148	$	56,989
Allowance for loan and lease losses and nonperforming assets		35,195		38,245
Lease liabilities		11,951		—
Investment securities		2,474		45,846
State income taxes		3,338		5,378
Total deferred income tax assets before valuation allowance		109,106		146,458
Valuation allowance		(1,393)		(1,901)
Total deferred income tax assets after valuation allowance		107,713		144,557
Liabilities:
Leases		(14,873)		(10,597)
Deferred income		(16,069)		(15,471)
Lease right-of-use assets		(11,931)		—
Intangible assets		(500)		(788)
Other		(10,570)		(9,852)
Total deferred income tax liabilities		(53,943)		(36,708)
Net deferred income tax assets	$	53,770	$	107,849

Net deferred income tax assets were included in other assets in the consolidated balance sheets as of December 31, 2019 and 2018.

Management evaluated the deferred income tax assets for recoverability by considering negative and positive evidence. Negative evidence included the uncertainty of generating future capital gains and restrictions on the ability to sell low-income housing investments during periods when carrybacks of capital losses are allowed. Positive evidence included the generation of capital gains in the current year and carryback years. Based on the weight of all available evidence, management determined a valuation allowance to offset deferred tax assets related to investments in low-income housing projects that can only be utilized to offset capital gains was required. Management further concluded it is more likely than not that the remaining deferred tax assets will be realized through carryback to taxable income in prior years, future reversals of existing taxable temporary differences, and projected future taxable income. Consequently, the remaining deferred income tax assets are not subject to a valuation allowance.

The following analysis reconciles the Federal statutory income tax rate to the effective income tax rate for the years ended December 31, 2019, 2018 and 2017:


	Year Ended December 31,
	2019				2018				2017
(dollars in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Federal statutory income tax expense and rate	$	80,157	21.00	%	$	75,217	21.00	%	$	128,924	35.00	%
State and local taxes, net of federal income tax benefit		21,179	5.55			20,817	5.81			16,106	4.37
Impact of Tax Reform		—	—			—	—			47,598	12.92
Nontaxable income		(3,269)	(0.86)			(2,037)	(0.57)			(4,974)	(1.35)
Other		(761)	(0.20)			(213)	(0.06)			(2,981)	(0.81)
Income tax expense and effective income tax rate	$	97,306	25.49	%	$	93,784	26.18	%	$	184,673	50.13	%

The Company is subject to examination by the Internal Revenue Service (“IRS”) and tax authorities in states in which the Company has significant business operations. The tax years under examination and open for examination vary by jurisdiction. The Company’s 2016 tax returns are currently under IRS examination. In addition, refund claims and tax returns for certain years are being reviewed by state jurisdictions. No material adjustments are anticipated as a result of these examinations and reviews. The Company’s income tax returns for 2016 and subsequent tax years generally remain subject to examination by U.S. federal and foreign jurisdictions, and 2015 and subsequent years are subject to examination by state taxing authorities.

A reconciliation of the amount of unrecognized tax benefits is as follows for the years ended December 31, 2019, 2018 and 2017:


	Year Ended December 31,
	2019						2018						2017
			Interest						Interest						Interest
			and						and						and
(dollars in thousands)	Tax		Penalties		Total		Tax		Penalties		Total		Tax		Penalties		Total
Balance at beginning of year	$	131,570	$	12,524	$	144,094	$	130,619	$	10,660	$	141,279	$	127,085	$	9,965	$	137,050
Additions for current year tax positions		1,038		—		1,038		2,260		—		2,260		2,727		—		2,727
Additions for Reorganization Transactions		—		986		986		—		832		832		—		226		226
Additions for prior years' tax positions:
New uncertain tax positions identified		1,894		—		1,894		—		—		—		—		—		—
Accrual of interest and penalties		—		1,280		1,280		—		1,159		1,159		—		621		621
Other		—		—		—		—		—		—		1,152		—		1,152
Reductions for prior years' tax positions:
Expiration of statute of limitations		(190)		(89)		(279)		(280)		(127)		(407)		(345)		(152)		(497)
Other		—		—		—		(1,029)		—		(1,029)		—		—		—
Balance at December 31,	$	134,312	$	14,701	$	149,013	$	131,570	$	12,524	$	144,094	$	130,619	$	10,660	$	141,279

Included in the balance of unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017, was $19.1 million, $16.2 million and $14.9 million, respectively, of unrecognized tax benefits that, if recognized, would impact the effective tax rate.

In connection with the Reorganization Transactions discussed below, the Company recorded unrecognized tax benefits and interest and penalties of $121.4 million and $7.0 million, respectively. Included in the balance of the unrecognized tax benefits as of both December 31, 2019 and 2018, was $93.9 million attributable to tax refund claims with respect to tax years 2005 through 2012 in the State of California. Such refund claims were filed by the Company in 2015, on behalf of the Company and its affiliates, including BOW, concerning the determination of taxes for which no benefit is currently recognized. It is reasonably possible that the amount of unrecognized tax benefits could decrease within the next 12 months by as much as $1.4 million of taxes and $0.9 million of accrued interest and penalties as a result of settlements and the expiration of the statute of limitations in various states.

The Company recognizes interest and penalties attributable to both unrecognized tax benefits and undisputed tax adjustments in the provision for income taxes. For the years ended December 31, 2019, 2018 and 2017, the Company recorded $2.4 million, $1.0 million and $0.7 million, respectively, of net expense attributable to interest and penalties. The Company had a liability of $16.3 million and $13.8 million as of December 31, 2019 and 2018, respectively, accrued for interest and penalties, of which $14.7 million and $12.5 million as of December 31, 2019 and 2018, respectively, were attributable to unrecognized tax benefits and the remainder was attributable to tax adjustments which are not expected to be in dispute.

Prior to the Reorganization Transactions, the Company filed consolidated U.S. Federal and combined state tax returns that incorporated the tax receivables and unrecognized tax benefits of FHB and BOW. The consummation of the Reorganization Transactions did not relieve the Company of the pre-Reorganization Transactions tax receivables and unrecognized tax benefits recognized by BOW that were included in the Company's consolidated and combined tax returns. As a result, on April 1, 2016, the Company recorded $72.8 million related to current tax receivables, $116.6 million related to unrecognized tax benefits, and an indemnification payable of $28.6 million. As of both December 31, 2019 and 2018, the Company maintained balances of $93.1 million related to current tax receivables. As of December 31, 2019 and 2018, the Company maintained balances of $118.1 million and $117.3 million, respectively, related to unrecognized tax benefits, and an indemnification receivable of $25.0 million and $24.2 million, respectively. Additionally, in connection with the Reorganization Transactions, the Company has incurred certain tax-related liabilities related to the distribution of its interest in BWHI amounting to $95.4 million. The amount necessary to pay the distribution taxes (net of the expected federal tax benefit of $33.4 million) was paid by BNPP to the Company on April 1, 2016. The Company reported total

distribution taxes of $92.1 million in the 2016 tax returns of various state and local jurisdictions, and reimbursed BWHI approximately $2.1 million pursuant to a tax sharing agreement entered into on April 1, 2016 and pursuant to certain tax allocation agreements entered into among the parties. The Company expects that any future adjustment to such taxes will be similarly reimbursed to, or funded by, BWHI or its affiliates. Accordingly, the assumption of the pre-Reorganization Transactions tax receivables, unrecognized tax benefits and distribution tax liabilities and the offsetting indemnification receivables or payables were reflected as equity contributions and distributions on April 1, 2016. The reimbursement of distribution taxes to BWHI was also reflected as an adjustment to equity. If there are any future adjustments to the indemnified tax receivables or unrecognized tax benefits, including as a result of the IRS audit of the Company’s 2016 income tax returns, an offsetting adjustment to the indemnification receivables or payables will be recorded to the provision for income taxes and other noninterest income or expense. For the years ended December 31, 2019, 2018 and 2017, the Company recorded nil, $1.5 million and $3.9 million, respectively, of such adjustments through the provision for income taxes and noninterest income.

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2019

Accumulated Other Comprehensive Income (Loss) [Abstract]

Schedule of changes in accumulated other comprehensive income (loss)


			Income
			Tax
	Pre-tax		Benefit		Net of
(dollars in thousands)	Amount		(Expense)		Tax
Accumulated other comprehensive loss at December 31, 2018	$	(180,915)	$	48,720	$	(132,195)
Year ended December 31, 2019
Pension and other benefits:
Net actuarial losses arising during the year		(5,774)		1,555		(4,219)
Prior service credit		(429)		115		(314)
Amortization of net loss included in net income		6,610		(1,780)		4,830
Net change in pension and other benefits		407		(110)		297
Investment securities:
Unrealized net gains arising during the year		134,343		(36,178)		98,165
Reclassification of net losses to net income:
Investment securities losses, net		2,715		(731)		1,984
Net change in investment securities		137,058		(36,909)		100,149
Other comprehensive income		137,465		(37,019)		100,446
Accumulated other comprehensive loss at December 31, 2019	$	(43,450)	$	11,701	$	(31,749)


			Income
			Tax
	Pre-tax		Benefit		Net of
(dollars in thousands)	Amount		(Expense)		Tax
Accumulated other comprehensive loss at December 31, 2017	$	(159,423)	$	63,040	$	(96,383)
Year ended December 31, 2018
Early adoption of ASU No. 2018-02		—		(20,068)		(20,068)
Pension and other benefits:
Net actuarial losses arising during the year		(2,835)		763		(2,072)
Prior service credit		(429)		116		(313)
Amortization of net loss included in net income		7,315		(1,970)		5,345
Net change in pension and other benefits		4,051		(1,091)		2,960
Investment securities:
Unrealized net losses arising during the year		(43,545)		11,686		(31,859)
Reclassification of net gains to net income:
OTTI losses on available-for-sale debt securities, net		24,085		(6,485)		17,600
Net change in investment securities		(19,460)		5,201		(14,259)
Cash flow derivative hedges:
Unrealized net gains on cash flow derivative hedges arising during the year		1,475		(397)		1,078
Reclassification of net gains to net income:
Other noninterest expense		(7,558)		2,035		(5,523)
Net change in cash flow derivative hedges		(6,083)		1,638		(4,445)
Other comprehensive loss		(21,492)		5,748		(15,744)
Accumulated other comprehensive loss at December 31, 2018	$	(180,915)	$	48,720	$	(132,195)


			Income
			Tax
	Pre-tax		Benefit		Net of
(dollars in thousands)	Amount		(Expense)		Tax
Accumulated other comprehensive loss at December 31, 2016	$	(145,472)	$	57,461	$	(88,011)
Year ended December 31, 2017
Pension and other benefits:
Net actuarial losses arising during the year		(1,104)		436		(668)
Prior service credit		(429)		170		(259)
Amortization of net loss included in net income		8,625		(3,407)		5,218
Net change in pension and other benefits		7,092		(2,801)		4,291
Investment securities:
Unrealized net losses arising during the year		(23,516)		9,357		(14,159)
Net change in investment securities		(23,516)		9,357		(14,159)
Cash flow derivative hedges:
Unrealized net gains on cash flow derivative hedges arising during the year		2,473		(977)		1,496
Net change in cash flow derivative hedges		2,473		(977)		1,496
Other comprehensive loss		(13,951)		5,579		(8,372)
Accumulated other comprehensive loss at December 31, 2017	$	(159,423)	$	63,040	$	(96,383)

Summary of changes in accumulated other comprehensive loss, net of tax



	Pensions						Accumulated
	and				Cash Flow		Other
	Other		Investment		Derivative		Comprehensive
(dollars in thousands)	Benefits		Securities		Hedges		Income (Loss)
Year Ended December 31, 2019
Balance at beginning of year	$	(28,379)	$	(103,816)	$	—	$	(132,195)
Other comprehensive income		297		100,149		—		100,446
Balance at end of year	$	(28,082)	$	(3,667)	$	—	$	(31,749)

Year Ended December 31, 2018
Balance at beginning of year	$	(25,946)	$	(74,117)	$	3,680	$	(96,383)
Early adoption of ASU No. 2018-02		(5,393)		(15,440)		765		(20,068)
Other comprehensive income (loss)		2,960		(14,259)		(4,445)		(15,744)
Balance at end of year	$	(28,379)	$	(103,816)	$	—	$	(132,195)

Year Ended December 31, 2017
Balance at beginning of year	$	(30,237)	$	(59,958)	$	2,184	$	(88,011)
Other comprehensive income (loss)		4,291		(14,159)		1,496		(8,372)
Balance at end of year	$	(25,946)	$	(74,117)	$	3,680	$	(96,383)

Parent Company - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net income	$ 284,392	$ 264,394	$ 183,682
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	17,060	(3,602)	58,916
Stock-based compensation	7,826	6,185	5,292
Change in assets and liabilities:
Net decrease (increase) in other assets	(20,923)	11,859	(42,359)
Net decrease in other liabilities	(76,303)	(27,090)	(9,128)
Net cash provided by operating activities	296,504	351,413	269,774
Cash flows from investing activities
Other, net		(2,832)	(2,044)
Net cash provided by investing activities	375,212	(257,809)	(971,081)
Cash flows from financing activities
Dividends paid	(138,246)	(131,036)	(122,810)
Distributions paid			(2,118)
Stock tendered for payment of withholding taxes	(1,764)	(53)	(136)
Proceeds from employee stock purchase plan		342	528
Common stock repurchased	(136,242)	(131,800)
Net cash (used in) provided by financing activities	(981,336)	(124,611)	683,893
Net decrease in cash and cash equivalents	(309,620)	(31,007)	(17,414)
Cash and cash equivalents at beginning of period	1,003,637	1,034,644	1,052,058
Cash and cash equivalents at end of period	694,017	1,003,637	1,034,644
Parent Company
Cash flows from operating activities
Net income	284,392	264,394	183,682
Adjustments to reconcile net income to net cash provided by operating activities:
(Equity in undistributed income) excess distributions of FHB	10,620	(8,752)	(85,205)
Deferred income taxes	85	(48)	(274)
Stock-based compensation	84	281	244
Change in assets and liabilities:
Net decrease (increase) in other assets	5,318	(9,635)	36,467
Net decrease in other liabilities	(5,439)	7,633	(2,058)
Net cash provided by operating activities	295,060	253,873	132,856
Cash flows from investing activities
Other, net			7
Net cash provided by investing activities			7
Cash flows from financing activities
Dividends paid	(138,246)	(131,036)	(122,810)
Distributions paid			(2,118)
Stock tendered for payment of withholding taxes	(1,764)	(69)	(120)
Proceeds from employee stock purchase plan		342	528
Common stock repurchased	(136,242)	(131,800)
Net cash (used in) provided by financing activities	(276,252)	(262,563)	(124,520)
Net decrease in cash and cash equivalents	18,808	(8,690)	8,343
Cash and cash equivalents at beginning of period	5,647	14,337	5,994
Cash and cash equivalents at end of period	$ 24,455	$ 5,647	$ 14,337

Organization and Basis of Presentation - Accounting Standards Adopted (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2020	Jan. 01, 2019
Accounting Standards Adopted in 2019
Corporate tax rate (as a percent)	21.00%	21.00%	35.00%
Lease liability	$ 44.4
Right-of-use asset	$ 44.3
Change in Accounting Principle, Accounting Standards Update, Early Adoption [true false]	false
ASU 2018-15
Accounting Standards Adopted in 2019
Capitalized hosting arrangements that are service contracts	$ 10.6
Restatement adjustment \| ASU 2016-02
Accounting Standards Adopted in 2019
Lease liability					$ 50.3
Right-of-use asset					$ 50.6
Forecast adjustment \| Minimum \| ASU 2016-13
Accounting Standards Adopted in 2019
Percentage of estimated increase in ACL and the reserve for unfunded commitments				10.00%
Forecast adjustment \| Maximum \| ASU 2016-13
Accounting Standards Adopted in 2019
Percentage of estimated increase in ACL and the reserve for unfunded commitments				15.00%

Fair Value - Significant Unobservable Inputs Used in Fair Value Measurements (Details) - Level 3 $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Fair Value Measurements, Nonrecurring \| Impaired loans
Fair value
Assets	$ 1,502	$ 402
Fair Value Measurements, Recurring \| Visa derivative
Fair value
Liabilities	$ (4,233)	$ (2,607)
Fair Value Measurements, Recurring \| Visa derivative \| Discounted cash flow \| Weighted Average
Fair value
Expected Conversion Rate	1.6228	1.6298
Expected Term	1 year	4 years
Growth Rate (as a percent)	13.00%	15.00%

Benefit Plans

12 Months Ended

Dec. 31, 2019

Benefit Plans

Benefit Plans

15. Benefit Plans

Qualified Pension Plan

The Company’s employees participate in the Employees’ Retirement Plan of First Hawaiian, Inc. (the “FHI ERP”). The FHI ERP is a frozen plan whereby there are no further benefit accruals for the Company’s employees. However, employees retain rights to participant benefits accrued as of the date of the plan freeze.

No contributions to the pension trust are expected to be made during 2020 for the Company’s participants in the FHI ERP. However, should contributions be required in accordance with the funding rules under the Employee Retirement Income Security Act of 1974 (“ERISA”), including the impact of the Pension Protection Act of 2006, the Company would make those required contributions.

Nonqualified Pension and Other Postretirement Benefit Plans

The Company also sponsors an unfunded supplemental executive retirement plan for certain key executives (“SERP”). In addition, the Company sponsors a directors’ retirement plan (“Directors’ Plan”), a non-qualified pension plan for eligible FHI and FHB directors that qualify for retirement benefits based on their years of service as a director. Both the SERP and the Directors’ Plan were frozen as of January 1, 2005 to new participants. In March 2019, the Company’s board of directors approved an amendment to the SERP to freeze the SERP, which became effective on July 1, 2019. As a result of the amendment, since the effective date, there have not been any, and there will be no, new accruals of benefits, including service accruals. Existing benefits under the SERP, as of the effective date of the amendment described above, will otherwise continue in accordance with the terms of the SERP. No contributions to the SERP are expected to be made in 2020.

A postretirement benefit plan is also offered to eligible employees that provides life insurance and healthcare benefits upon retirement. The Company provides access to medical coverage for eligible retirees under age 65 at active employee premium rates and a monthly stipend to both retiree and retiree’s spouse after age 62.

The Company expects to contribute $0.2 million to its Directors’ Plan and $1.2 million to its postretirement medical and life insurance plans in 2020. These contributions reflect the estimated benefit payments for the unfunded plans and may vary depending on retirements during 2020.

Defined Contribution Plans

401(k) Savings Plan and Money Purchase Pension Plan

The Company matched employee contributions to the First Hawaiian, Inc. 401(k) Savings Plan, a qualified defined contribution plan, up to 5%of the employee’s pay in 2019 and 2018. The Company also contributed 2.5% of employee pay to the First Hawaiian, Inc. Future Plan, a money purchase pension plan. The plans cover all employees who satisfy eligibility requirements. A select group of key executives who participate in an unqualified grandfathered supplemental executive retirement plan may participate in the 401(k) plan but are not eligible to receive the matching contribution.

The employer contributions to the above-mentioned plans for the years ended December 31, 2019, 2018 and 2017 were $7.5 million, $7.8 million and $7.3 million, respectively, and are included in salaries and employee benefits within the consolidated statements of income.

Annual Incentive Awards for Key Executives

The Company makes cash-based annual incentive awards under the First Hawaiian, Inc. Bonus Plan (the “Bonus Plan”). The Bonus Plan limits the aggregate and individual value of the awards that could be issued in any one fiscal year. The Bonus Plan expenses totaled $15.6 million, $14.3 million and $13.3 million for the years ended December 31, 2019, 2018 and 2017, respectively, and are included in salaries and employee benefits within the consolidated statements of income.

The following table details the amounts recognized in other comprehensive income during the years presented. Pension benefits include benefits from the qualified and non-qualified plans. Other benefits include life insurance and healthcare benefits from the postretirement benefit plan.


	Pension Benefits						Other Benefits
(dollars in thousands)	2019		2018		2017		2019		2018		2017
Amounts arising during the year:
Net (gain) loss on pension assets	$	(16,278)	$	12,209	$	(8,619)	$	—	$	—	$	—
Net loss (gain) on pension obligations		21,512		(6,619)		9,757		540		(2,755)		(34)
Reclassification adjustments recognized as components of net periodic benefit cost during the year:
Net (gain) loss		(6,995)		(7,315)		(8,625)		385		—		—
Prior service credit		—		—		—		429		429		429
Amount recognized in other comprehensive income	$	(1,761)	$	(1,725)	$	(7,487)	$	1,354	$	(2,326)	$	395

The following table shows the amounts within accumulated other comprehensive loss that had not yet been recognized as components of net periodic benefit cost as of December 31, 2019 and 2018:


	Pension Benefits				Other Benefits
(dollars in thousands)	2019		2018		2019		2018
Net actuarial loss (gain)	$	40,061	$	41,822	$	(1,582)	$	(2,507)
Prior service credit		—		—		(51)		(480)
Total, pretax effect		40,061		41,822		(1,633)		(2,987)
Tax impact		(10,786)		(11,260)		440		804
Ending balance in accumulated other comprehensive loss	$	29,275	$	30,562	$	(1,193)	$	(2,183)

The following table provides the amounts within accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost during 2020:


	Pension		Other
(dollars in thousands)	Benefits		Benefits
Amortization of prior service credit	$	—	$	(51)
Amortization of net actuarial loss (gain)		5,753		(103)
Total to be recognized in 2020	$	5,753	$	(154)

The following tables summarize the changes to projected benefit obligation (“PBO”) and fair value of plan assets for pension benefits and accumulated postretirement benefit obligation and fair value of plan assets for other benefits:


	Pension Benefits				Other Benefits
(dollars in thousands)	2019		2018		2019		2018
Benefit obligation at beginning of year	$	199,072	$	212,981	$	19,716	$	21,449
Service cost		14		696		710		750
Interest cost		8,261		7,362		808		739
Actuarial loss (gain)		22,573		(6,619)		540		(2,755)
Curtailment gain		(1,061)		—		—		—
Benefit payments		(15,574)		(15,348)		(469)		(467)
Benefit obligation at end of year	$	213,285	$	199,072	$	21,305	$	19,716


	Pension Benefits				Other Benefits
(dollars in thousands)	2019		2018		2019		2018
Fair value of plan assets at beginning of year	$	99,581	$	114,220	$	—	$	—
Actual return on plan assets		20,863		(6,936)		—		—
Benefit payments from trust		(7,785)		(7,703)		—		—
Fair value of plan assets at end of year	$	112,659	$	99,581	$	—	$	—

The following table summarizes the funded status of the Company’s plans and amounts recognized in the Company’s consolidated balance sheets as of December 31, 2019 and 2018:


	Pension Benefits				Other Benefits
(dollars in thousands)	2019		2018		2019		2018
Pension assets for overfunded plans	$	16,291	$	8,702	$	—	$	—
Pension liabilities for underfunded plans		(116,917)		(108,193)		(21,305)		(19,716)
Funded status	$	(100,626)	$	(99,491)	$	(21,305)	$	(19,716)

The following table provides information regarding the PBO, accumulated benefit obligation (“ABO”), and fair value of plan assets as of December 31, 2019 and 2018:


	Funded Pension Plan				Unfunded Pension Plans				Total Pension Plans
(dollars in thousands)	2019		2018		2019		2018		2019		2018
Projected benefit obligation	$	96,368	$	90,879	$	116,917	$	108,193	$	213,285	$	199,072
Accumulated benefit obligation		96,368		90,879		116,834		106,357		213,202		197,236
Fair value of plan assets		112,659		99,581		—		—		112,659		99,581
Overfunded (underfunded) portion of PBO/ABO		16,291		8,702		(116,917)		(108,193)		(100,626)		(99,491)

The Company recognizes the overfunded and underfunded status of its pension plans as an asset and liability in the consolidated balance sheets.

Unrecognized net gains or losses that exceed 5% of the greater of the PBO or the fair value of plan assets as of the beginning of the year are amortized on a straight-line basis over five years in accordance with ASC 715. Amortization of the unrecognized net gain or loss is included as a component of net periodic pension cost. If amortization results in an amount less than the minimum amortization required under GAAP, the minimum required amount is recorded.

The following table summarizes the change in net actuarial loss and amortization for the years ended December 31, 2019 and 2018:


	Pension Benefits				Other Benefits
(dollars in thousands)	2019		2018		2019		2018
Net actuarial loss (gain) at beginning of year	$	41,822	$	43,547	$	(2,507)	$	248
Amortization cost		(6,995)		(7,315)		385		—
Liability loss (gain)		21,512		(6,619)		540		(2,755)
Asset (gain) loss		(16,278)		12,209		—		—
Net actuarial loss (gain) at end of year	$	40,061	$	41,822	$	(1,582)	$	(2,507)

The following table sets forth the components of net periodic benefit cost for the years ended December 31, 2019, 2018 and 2017:


	Income line item where recognized in	Pension Benefits						Other Benefits
(dollars in thousands)	the consolidated statements of income	2019		2018		2017		2019		2018		2017
Service cost	Salaries and employee benefits	$	14	$	696	$	629	$	710	$	750	$	738
Interest cost	Other noninterest expense		8,261		7,362		8,297		808		739		776
Expected return on plan assets	Other noninterest expense		(4,585)		(5,273)		(5,003)		—		—		—
Prior service credit	Other noninterest expense		—		—		—		(429)		(429)		(429)
Recognized net actuarial loss (gain)	Other noninterest expense		6,995		7,315		8,625		(385)		—		—
Total net periodic benefit cost		$	10,685	$	10,100	$	12,548	$	704	$	1,060	$	1,085

The funded pension benefit amounts included in pension benefits for the years ended December 31, 2019, 2018 and 2017 were as follows:


	Funded Pension Benefits
(dollars in thousands)	2019		2018		2017
Interest cost	$	3,808	$	3,420	$	3,922
Expected return on plan assets		(4,585)		(5,273)		(5,003)
Recognized net actuarial loss		3,714		2,600		4,316
Total net periodic benefit cost	$	2,937	$	747	$	3,235

Assumptions

The following weighted-average assumptions were used to determine benefit obligations at December 31, 2019 and 2018:

FHI ERP Pension Benefits

SERP Pension Benefits

Other Benefits

2019

2018

2019

2018

2019

2018

Discount rate

3.16

4.30

3.16

4.30

3.16

4.30

Rate of compensation increase

4.00

4.00

Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, 2019, 2018 and 2017 were as follows:


	FHI ERP Pension Benefits						SERP Pension Benefits						Other Benefits
	2019		2018		2017		2019		2018		2017		2019		2018		2017
Discount rate	4.30	%	3.51	%	4.05	%	4.30	%	3.51	%	4.05	%	4.30	%	3.51	%	4.05	%
Expected long-term return on plan assets	4.75	%	4.75	%	4.75	%	NA		NA		NA		NA		NA		NA
Rate of compensation increase	NA		NA		NA		4.00	%	4.00	%	4.00	%	NA		NA		NA

To select the discount rate, the Company reviews the yield on high quality corporate bonds. This rate is adjusted to convert the yield to an annual discount rate basis and may be adjusted for the population of plan participants to reflect the expected duration of the benefit payments of the plan.

Assumed healthcare cost trend rates were as follows at December 31, 2019, 2018 and 2017:


	2019		2018		2017
Healthcare cost trend rate assumed for next year	6.50	%	7.00	%	7.00	%
Rate to which the cost trend is assumed to decline (the ultimate trend rate)	5.00	%	5.00	%	5.00	%
Year that the rate reaches the ultimate trend rate	2026		2026		2026

A one percentage-point change in the assumed healthcare cost trend rates would have had the following pre-tax effect:


	One Percentage-		One Percentage-
(dollars in thousands)	Point Increase		Point Decrease
Effect on 2019 total of service and interest cost components	$	75	$	(67)
Effect on postretirement benefit obligation at December 31, 2019		353		(328)

Plan Assets

The Company’s pension plan assets were allocated as follows as of December 31, 2019 and 2018:


	Asset Allocation
	2019		2018
Equity securities	31	%	29	%
Debt securities	66	%	69	%
Other securities	3	%	2	%
Total	100	%	100	%

There were no holdings of FHI or BNPP stock included in equity securities at December 31, 2019 and 2018.

The assets within the pension plan are managed in accordance with ERISA. The objective of the plan is to achieve, over full market cycles, a compounded annual rate of return equal to or greater than the pension plan’s expected long-term rate of return. The pension plan’s participants recognize that capital markets can be unpredictable and that any investment could result in periods where the market value of the pension plan’s assets will decline in value. Asset allocation is likely to be the primary determinant of the pension plan’s return and the associated volatility of returns for the pension plan. The Company estimated the long-term rate of return for the 2019 net periodic pension cost to be 4.75%. The return was selected based on a model of U.S. capital market assumptions with expected returns reflecting the anticipated asset allocation of the pension plan.

The target asset allocation for the pension plan at December 31, 2019, was as follows:


	Target
	Allocation
Equity securities	30	%
Debt securities	68	%
Other securities	2	%

Estimated Future Benefit Payments

The following table presents benefit payments that are expected to be paid over the next ten years, giving consideration to expected future service as appropriate:


	Pension		Other
(dollars in thousands)	Benefits		Benefits
2020	$	16,120	$	1,205
2021		15,902		1,315
2022		15,580		1,410
2023		15,176		1,487
2024		14,739		1,546
2025 to 2029		69,769		8,085

Fair Value Measurement of Plan Assets

The Company’s overall investment strategy includes a wide diversification of asset types, fund strategies and fund managers. Investments in mutual funds and exchange-traded funds consist primarily of investments in large-cap companies located in the United States. Fixed income securities include U.S. government agencies and corporate bonds of companies from diversified industries.

The fair values of the Company’s pension plans assets at December 31, 2019 and 2018, by asset class, were as follows:

December 31, 2019

Quoted Prices

Significant

In Active

Other

Significant

Markets for

Observable

Unobservable

Identical Assets

Inputs

(dollars in thousands)

(Level 1)

(Level 2)

(Level 3)

Total

Asset classes:

Cash and cash equivalents

2,824

—

2,824

Fixed income - U.S. Treasury securities

—

4,053

—

4,053

Fixed income - U.S. government agency securities

—

3,504

—

3,504

Fixed income - U.S. corporate securities

—

58,808

—

58,808

Fixed income - municipal securities

—

484

—

484

Fixed income - mutual funds

6,204

—

6,204

Fixed income - international securities

1,544

—

1,544

Equity - large-cap exchange-traded funds

23,278

—

23,278

Equity - mid-cap exchange-traded funds

3,379

—

3,379

Equity - small-cap exchange-traded funds

1,645

—

1,645

Equity - international funds

6,936

—

6,936

Total

45,810

66,849

—

112,659


	December 31, 2018
	Quoted Prices		Significant
	In Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
(dollars in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Asset classes:
Cash and cash equivalents	$	2,428	$	—	$	—	$	2,428
Fixed income - U.S. Treasury securities		—		4,450		—		4,450
Fixed income - U.S. government agency securities		—		3,565		—		3,565
Fixed income - U.S. corporate securities		—		53,721		—		53,721
Fixed income - municipal securities		—		451		—		451
Fixed income - mutual funds		6,272		—		—		6,272
Equity - large-cap mutual funds		8,831		—		—		8,831
Equity - large-cap exchange-traded funds		10,482		—		—		10,482
Equity - mid-cap exchange-traded funds		2,544		—		—		2,544
Equity - small-cap exchange-traded funds		1,176		—		—		1,176
Equity - international funds		5,661		—		—		5,661
Total	$	37,394	$	62,187	$	—	$	99,581

No fair value measurements used Level 3 inputs as of December 31, 2019 and 2018.

The plan’s investments in fixed income securities represent approximately 66.2% and 68.7% of total plan assets as of December 31, 2019 and 2018, respectively, which is the most significant concentration of risk in the plan.

Valuation Methodologies

Cash and cash equivalents — includes investments in money market funds. Carrying value is a reasonable estimate of fair value based on the short-term nature of the instruments.

U.S. Treasury securities — includes securities issued by the U.S. government valued at fair value based on observable market prices for similar securities or other market observable inputs.

U.S. government agency securities — includes investment-grade debt securities issued by U.S. government agencies. These securities are valued at fair value based upon the quoted market values of the underlying net assets.

U.S. corporate securities — includes investment-grade debt securities issued by U.S. corporations. These securities are valued at fair value based on observable market prices for similar securities or other market observable inputs.

Municipal securities — includes bonds issued by a city or other local government, or their agencies. Potential issuers of municipal bonds include cities, counties, redevelopment agencies, special-purpose districts, school districts, public utility districts, publicly owned airports and seaports, and any other governmental entity (or group of governments) below the state level. Municipal bonds may be general obligations of the issuer or secured by specified revenues. These securities are valued at fair value based on observable market prices for similar securities or other market observable inputs.

Mutual funds — includes an open-end fixed-income fund benchmarked to the Barclay’s Capital U.S. Government/Credit Bond Index. At least 80% of its assets are high-grade corporate bonds and U.S. government debt obligations. The fair value is based upon the quoted market values of the underlying net assets.

Large-cap mutual funds — includes open-end equity funds holding a diversified portfolio of large-cap domestic equity securities. The portfolio has a bias towards stocks with growth characteristics and stocks with high cash flow and growing dividends. The fair value is based upon the quoted market values of the underlying net assets.

Large-cap exchange-traded fund — includes an exchange-traded fund which invests mainly in U.S. large-cap stocks such as those in the S&P 500 index. The fair value is based upon the quoted market values of the underlying net assets.

Mid-cap exchange-traded funds — includes broadly-diversified exchange-traded funds which invest in U.S. mid-cap stocks such as those in the S&P 400 Mid Cap index. The fair value is based upon the quoted market values of the underlying net assets.

Small-cap exchange-traded funds — includes broadly-diversified exchange-traded funds which invest in U.S. small-cap stocks such as those in the S&P 600 Small Cap index. The fair value is based upon the quoted market values of the underlying net assets.

International funds — includes well-diversified exchange-traded funds tracking broad-based international equity indexes. The fair value is based upon the quoted market values of the underlying net assets.

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Financial Instruments

Summary of notional amounts and fair values of derivatives held


	December 31, 2019						December 31, 2018
			Fair Value						Fair Value
	Notional		Asset		Liability		Notional		Asset		Liability
(dollars in thousands)	Amount		Derivatives⁽¹⁾		Derivatives⁽²⁾		Amount		Derivatives⁽¹⁾		Derivatives⁽²⁾
Derivatives designated as hedging instruments:
Interest rate swaps	$	23,190	$	—	$	(682)	$	41,317	$	31	$	(44)
Derivatives not designated as hedging instruments:
Interest rate swaps		2,818,803		63,527		—		2,269,247		12,305		(12,007)
Funding swap		82,900		—		(4,233)		62,039		—		(2,607)
Foreign exchange contracts		1,428		12		—		1,191		—		(34)

(1)	The positive fair values of derivative assets are included in other assets.

(2)	The negative fair values of derivative liabilities are included in other liabilities.

Schedule of net gains and losses recognized in income related to derivatives in fair value hedging relationships


	Gains (losses) recognized in
	the consolidated statements	December 31,
(dollars in thousands)	of income line item	2019		2018		2017
Gains (losses) on fair value hedging relationships recognized in interest income⁽¹⁾:
Recognized on interest rate swap	Loans and lease financing	$	(671)	$	—	$	—
Recognized on hedged item	Loans and lease financing		735		—		—

Gains (losses) on fair value hedging relationships recognized in noninterest income⁽²⁾:
Recognized on interest rate swap	Other	$	—	$	629	$	846
Recognized on hedged item	Other		—		(723)		(841)

Schedule of amounts related to cumulative basis adjustments for fair value hedges

Cumulative Amount of Fair Value

Hedging Adjustment Included in the

Carrying Amount of the Hedged Asset

(dollars in thousands)

December 31, 2019

December 31, 2018

December 31, 2019

December 31, 2018

Line item in the consolidated balance sheets in which the hedged item is included

Loans and leases

24,415

42,496

1,017

293

Summary of effect of cash flow hedging relationships


	December 31,
(dollars in thousands)	2018		2017
Pretax gains recognized in other comprehensive income on derivatives (effective portion)	$	1,475	$	2,473
Pretax gain reclassified from accumulated other comprehensive income		(7,558)		—

Summary of impact on pretax earnings of derivatives not designated as hedges


	Net gains (losses) recognized
	in the consolidated statements	December 31,
(dollars in thousands)	of income line item	2019		2018		2017
Derivatives Not Designated As Hedging Instruments:
Interest rate swaps	Other noninterest income	$	16	$	574	$	819
Funding swap	Other noninterest income		(5,355)		(172)		(169)
Foreign exchange contracts	Other noninterest income		12		(58)		171

Fair Value (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value

Schedule of assets and liabilities measured at fair value on a recurring basis

Fair Value Measurements as of December 31, 2019

Quoted Prices in

Significant

Active Markets for

Other

Significant

Identical Assets

Observable

Unobservable

(dollars in thousands)

(Level 1)

Inputs (Level 2)

Inputs (Level 3)

Total

Assets

U.S. Treasury securities

—

29,888

—

29,888

Government-sponsored enterprises debt securities

—

101,439

—

101,439

Mortgage-backed securities:

Residential - Government agency⁽¹⁾

—

291,209

—

291,209

Residential - Government-sponsored enterprises⁽¹⁾

—

399,492

—

399,492

Commercial - Government-sponsored enterprises

—

101,719

—

101,719

Collateralized mortgage obligations:

Government agency

—

2,381,278

—

2,381,278

Government-sponsored enterprises

—

770,619

—

770,619

Total available-for-sale securities

—

4,075,644

—

4,075,644

Other assets⁽²⁾

—

63,539

—

63,539

Liabilities

Other liabilities⁽³⁾

—

(682)

(4,233)

(4,915)

Total

—

4,138,501

(4,233)

4,134,268


	Fair Value Measurements as of December 31, 2018
	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
(dollars in thousands)	(Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
Assets
U.S. Treasury securities	$	—	$	389,470	$	—	$	389,470
Government-sponsored enterprises debt securities		—		241,594		—		241,594
Mortgage-backed securities:
Residential - Government agency⁽¹⁾		—		411,536		—		411,536
Residential - Government-sponsored enterprises⁽¹⁾		—		150,847		—		150,847
Collateralized mortgage obligations:
Government agency		—		2,682,449		—		2,682,449
Government-sponsored enterprises		—		602,592		—		602,592
Debt securities issued by states and political subdivisions		—		19,854		—		19,854
Total available-for-sale securities		—		4,498,342		—		4,498,342
Other assets⁽²⁾		—		12,336		—		12,336
Liabilities
Other liabilities⁽³⁾		—		(12,085)		(2,607)		(14,692)
Total	$	—	$	4,498,593	$	(2,607)	$	4,495,986

(1)	Backed by residential real estate.

(2)	Other assets include derivative assets.

(3)	Other liabilities include derivative liabilities.

Summary of changes in Level 3 liabilities measured at fair value on a recurring basis


	Visa Derivative
(dollars in thousands)	2019		2018
Year Ended December 31,
Balance as of January 1,	$	(2,607)	$	(5,439)
Total net losses included in other noninterest income		(5,354)		(173)
Settlements		3,728		3,005
Balance as of December 31,	$	(4,233)	$	(2,607)
Total net losses included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of December 31,	$	(5,354)	$	(173)

Summary of estimated fair value of financial instruments not required to be carried at fair value on a recurring basis

December 31, 2019

Fair Value Measurements

Quoted Prices in

Significant

Active Markets

Other

Unobservable

for Identical

Observable

Inputs

(dollars in thousands)

Book Value

Assets (Level 1)

Inputs (Level 2)

(Level 3)

Total

Financial assets:

Cash and cash equivalents

694,017

360,375

333,642

—

694,017

Loans held for sale

904

—

904

—

904

Loans⁽¹⁾

13,009,167

—

13,140,898

Financial liabilities:

Time deposits⁽²⁾

2,510,157

—

2,501,478

—

2,501,478

Short-term borrowings

400,000

—

401,709

—

401,709

Long-term borrowings⁽³⁾

200,000

—

207,104

—

207,104


	December 31, 2018
			Fair Value Measurements
			Quoted Prices in		Significant		Significant
			Active Markets		Other		Unobservable
			for Identical		Observable		Inputs
(dollars in thousands)	Book Value		Assets (Level 1)		Inputs (Level 2)		(Level 3)		Total
Financial assets:
Cash and cash equivalents	$	1,003,637	$	396,836	$	606,801	$	—	$	1,003,637
Loans held for sale		432		—		432		—		432
Loans⁽¹⁾		12,928,422		—		—		12,664,170		12,664,170

Financial liabilities:
Time deposits⁽²⁾	$	3,092,164	$	—	$	3,058,792	$	—	$	3,058,792
Long-term borrowings⁽³⁾		600,000		—		602,088		—		602,088

(1)	Excludes financing leases of $202.5 million at December 31, 2019 and $147.8 million at December 31, 2018.

(2)	Excludes deposit liabilities with no defined or contractual maturity of $13.9 billion at December 31, 2019 and $14.1 billion at December 31, 2018.

(3)	Excludes capital lease obligations of $19 thousand and $26 thousand at December 31, 2019 and 2018, respectively.

Schedule of assets with fair value adjustments on a nonrecurring basis


(dollars in thousands)	Level 1		Level 2		Level 3
December 31, 2019
Impaired loans	$	—	$	—	$	1,502
December 31, 2018
Impaired loans	$	—	$	—	$	402

Significant unobservable inputs used in fair value measurements for Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2019
				Significant	Range
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	(Weighted Average)
Impaired loans	$	1,502	Appraisal Value	Appraisal Value	n/m⁽¹⁾
Visa derivative	$	(4,233)	Discounted Cash Flow	Expected Conversion Rate	1.6228
				Expected Term	1 year
				Growth Rate	13%


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2018
					Range
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	(Weighted Average)
Impaired loans	$	402	Appraisal Value	Appraisal Value	n/m⁽¹⁾
Visa derivative	$	(2,607)	Discounted Cash Flow	Expected Conversion Rate	1.6298
				Expected Term	4 years
				Growth Rate	15%

(1)	The fair value of these assets is determined based on appraised values of collateral or broker price opinions, the range of which is not meaningful to disclose.

Derivative Financial Instruments - Counterparty Credit Risk and Credit-Risk Related Contingent Features (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Credit-risk-related contingent features
Aggregate fair value of derivative instruments in a net liability position	$ 4.0	$ 0.8
Collateral posted for derivatives in a net liability position	4.7	0.5
Interest rate swaps
Derivative contracts
Collateral thresholds for derivative agreements with credit risk related contingent features	0.5
Counterparty credit risk adjustments	$ 0.1	$ 0.1	$ 0.1

Deposits - Time Certificate Denominations and Overdrawn Accounts (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Deposits
Time certificates of deposit in denominations of $250,000 or more, in the aggregate	$ 1,400.0	$ 1,900.0
Overdrawn deposit accounts classified as loans	$ 3.6	$ 2.4

Reportable Operating Segments (Tables)

12 Months Ended

Dec. 31, 2019

Reportable Operating Segments

Schedule of selected business segment financial information

Treasury

Retail

Commercial

and

(dollars in thousands)

Banking

Other

Total

Year Ended December 31, 2019

Net interest income

413,029

141,227

19,146

573,402

Provision for loan and lease losses

(6,248)

(7,552)

—

(13,800)

Net interest income after provision for loan and lease losses

406,781

133,675

19,146

559,602

Noninterest income

95,413

73,635

23,485

192,533

Noninterest expense

(228,389)

(82,380)

(59,668)

(370,437)

Income (loss) before (provision) benefit for income taxes

273,805

124,930

(17,037)

381,698

(Provision) benefit for income taxes

(69,285)

(32,298)

4,277

(97,306)

Net income (loss)

204,520

92,632

(12,760)

284,392

Total assets as of December 31, 2019

7,276,047

6,071,356

6,819,331

20,166,734


					Treasury
	Retail		Commercial		and
(dollars in thousands)	Banking		Banking		Other ⁽¹⁾		Total
Year Ended December 31, 2018
Net interest income	$	420,165	$	140,333	$	5,820	$	566,318
Provision for loan and lease losses		(8,753)		(13,427)		—		(22,180)
Net interest income after provision for loan and lease losses		411,412		126,906		5,820		544,138

Noninterest income		89,669		80,904		8,420		178,993
Noninterest expense		(225,881)		(80,766)		(58,306)		(364,953)
Income (loss) before (provision) benefit for income taxes		275,200		127,044		(44,066)		358,178

(Provision) benefit for income taxes		(70,335)		(32,700)		9,251		(93,784)
Net income (loss)	$	204,865	$	94,344	$	(34,815)	$	264,394
Total assets as of December 31, 2018	$	7,078,016	$	6,346,541	$	7,271,121	$	20,695,678

⁽¹⁾ Includes $24.1 million in OTTI write-downs.


					Treasury
	Retail		Commercial		and
(dollars in thousands)	Banking		Banking		Other ⁽¹⁾		Total
Year Ended December 31, 2017
Net interest income (expense)	$	409,796	$	131,692	$	(12,684)	$	528,804
Provision for loan and lease losses		(6,837)		(11,663)		—		(18,500)
Net interest income (expense) after provision for loan and lease losses		402,959		120,029		(12,684)		510,304

Noninterest income		89,372		75,566		40,667		205,605
Noninterest expense		(223,652)		(68,167)		(55,735)		(347,554)
Income (loss) before (provision) benefit for income taxes		268,679		127,428		(27,752)		368,355

(Provision) benefit for income taxes		(130,130)		(57,857)		3,314		(184,673)
Net income (loss)	$	138,549	$	69,571	$	(24,438)	$	183,682
Total assets as of December 31, 2017	$	7,003,724	$	5,462,370	$	8,083,367	$	20,549,461

⁽¹⁾ Includes $6.9 million gains on the sale of real estate.

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases

Summary of net lease expense


	Year Ended
(dollars in thousands)	December 31, 2019
Operating lease expense	$	9,158
Short-term lease expense		487
Variable lease expense		2,152
Finance lease expense:
Amortization of right-of-use assets		3
Interest on lease liabilities		2
Total finance lease expense		5
Less: Sublease income		(1,073)
Net lease expense	$	10,729

Summary of rental expense, net of sublease income, presented in accordance with Topic 840


	Year Ended December 31,
(dollars in thousands)	2018		2017
Rental expense charged to occupancy	$	9,947	$	8,620
Less: Sublease income		903		1,342
Net rental expense charged to occupancy		9,044		7,278
Rental expense charged to equipment expense		3,679		285
Total	$	12,723	$	7,563

Summary of other information related to the Company's lease liabilities


	Year Ended
(dollars in thousands)	December 31, 2019
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	8,802
Operating cash flows paid for finance leases	$	10
Financing cash flows paid for finance leases	$	10
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	1,401
Weighted Average Remaining Lease Term
Operating leases (years)		15.7
Finance leases (years)		2.5
Weighted Average Discount Rate
Operating leases		3.36	%
Finance leases		6.78	%

Summary of future minimum rental payments under noncancellable leases


	Net Operating
	Lease
(dollars in thousands)	Payments
Year ending December 31:
2020	$	8,776
2021		8,084
2022		5,453
2023		2,964
2024		2,721
Thereafter		32,227
Total future minimum lease payments		60,225
Less: Imputed interest		(15,934)
Total	$	44,291

Summary of future minimum rental payments under operating leases, Topic 840


	Operating		Less		Net Operating
	Lease		Sublease		Lease
(dollars in thousands)	Payments		Income		Payments
Year ending December 31:
2019	$	8,780	$	903	$	7,877
2020		8,668		903		7,765
2021		7,961		892		7,069
2022		5,101		—		5,101
2023		2,632		—		2,632
Thereafter		34,638		—		34,638
Total future minimum lease payments	$	67,780	$	2,698	$	65,082

Summary of future minimum rental income under noncancellable operating leases

The following table sets forth future minimum rental income under noncancelable operating leases with terms in excess of one year as of December 31, 2019:


	Minimum
	Rental
(dollars in thousands)	Income
Year ending December 31:
2020	$	6,164
2021		6,152
2022		4,431
2023		3,506
2024		2,680
Thereafter		6,511
Total	$	29,444

Organization and Basis of Presentation - Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2019 component
Premises and Equipment
Reserve for Credit Losses, Number of Components	2
Buildings \| Minimum
Premises and Equipment
Useful lives	10 years
Buildings \| Maximum
Premises and Equipment
Useful lives	39 years
Furniture and equipment \| Minimum
Premises and Equipment
Useful lives	4 years
Furniture and equipment \| Maximum
Premises and Equipment
Useful lives	20 years

Investment Securities - Pledged Securities and Concentration (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Pledged securities
Total pledged securities	$ 1,800,000	$ 2,000,000
Securities pledged to secure public deposits	1,543,492	1,749,726
Securities pledged to secure public deposits and repurchase transactions	1,500,000	1,700,000
Securities pledged to secure other financial transactions	242,300	232,700
Non-government issuer
Concentration of risk
Securities of issuers in excess of 10% of stockholders' equity	$ 0	$ 0

Leases - Terms of Leases (Details)	12 Months Ended
Leases - Terms of Leases (Details)	Dec. 31, 2019 location
Lessee, Lease, Description [Line Items]
Lessee, renewal options included	true
Number of branch properties where operating leases for space are connected	3
Maximum
Lessee, Lease, Description [Line Items]
Term of lease	44 years

Stock-Based Compensation - Employee Stock Purchase Plan (Details) - shares	1 Months Ended		12 Months Ended
	Jan. 31, 2018	Jan. 31, 2017	Dec. 31, 2019
Employee Stock Purchase Plan
Stock-based compensation
Total shares authorized			600,000
Shares available for future purchases			571,698
Employee Stock Purchase Plan
Stock-based compensation
Discount from the closing price on the exercise date (as a percent)	5.00%	5.00%
Holding period for common stock purchased by plan participants			2 years
Shares issued to employee participants	12,341	15,961

Short-Term Borrowings

12 Months Ended

Dec. 31, 2019

Short-Term Borrowings

Short-Term Borrowings

10. Short-Term Borrowings

As of December 31, 2019 and 2018, short-term borrowings were comprised of the following:


	December 31,
(dollars in thousands)	2019		2018
Short-term FHLB fixed-rate advances⁽¹⁾	$	400,000	$	—
Total short-term borrowings	$	400,000	$	—

(1)	Interest is payable monthly.

As of December 31, 2019, the Company’s short-term borrowings included $400.0 million in short-term FHLB fixed-rate advances with a weighted average interest rate of 2.84% and maturity dates in 2020. The short-term FHLB fixed-rate advances require monthly interest-only payments with the principal amount due on the maturity date. See “Note 8. Transfers of Financial Assets” for more information.

The table below provides selected information for short-term borrowings during the years ended December 31, 2019, 2018 and 2017:


	Year Ended December 31,
(dollars in thousands)	2019			2018			2017
Federal funds purchased:
Weighted-average interest rate at December 31,		—	%		—	%		—	%
Highest month-end balance	$	110,000		$	374,875		$	6,000
Average outstanding balance	$	16,410		$	32,987		$	1,280
Weighted-average interest rate paid		2.44	%		2.18	%		0.97	%
Securities sold under agreements to repurchase:
Weighted-average interest rate at December 31,		—	%		—	%		—	%
Highest month-end balance	$	—		$	—		$	5,951
Average outstanding balance	$	—		$	—		$	893
Weighted-average interest rate paid		—	%		—	%		0.55	%
Short-term FHLB fixed-rate advance:
Weighted-average interest rate at December 31,		2.84	%		—	%		—	%
Highest month-end balance	$	400,000		$	81,800		$	—
Average outstanding balance	$	193,425		$	6,929		$	—
Weighted-average interest rate paid		2.85	%		1.90	%		—	%

The Company treats securities sold under agreements to repurchase as collateralized financings. The Company reflects the obligations to repurchase the same or similar securities sold as liabilities, with the dollar amount of securities underlying the agreements remaining in the asset accounts. Generally, for these types of agreements, there is a requirement that collateral be maintained with a market value equal to or in excess of the principal amount borrowed. As such, the collateral pledged may be increased or decreased over time to meet contractual obligations. The securities underlying the agreements to repurchase are held in collateral accounts with a third-party custodian. The Company did not enter into any repurchase agreements in 2019 and 2018.

At December 31, 2019 and 2018, the Company had a remaining line of credit of $1.7 billion and $1.3 billion available from the FHLB, respectively, and an undrawn line of credit of $596.8 million and $671.8 million available from the FRB, respectively.

Allowance for Loan and Lease Losses - Impaired Loans and Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Recorded Investment
Impaired loans with no related allowance recorded	$ 14,280	$ 18,577
Impaired loans with a related allowance recorded	6,358	11,999
Total impaired loans	20,638	30,576
Unpaid Principal Balance
Impaired loans with no related allowance recorded	14,589	18,940
Impaired loans with a related allowance recorded	6,638	12,384
Total impaired loans	21,227	31,324
Related Allowance, Impaired loans	203	536
Average Recorded Investment
Impaired loans with no related allowance recorded	15,329	29,886	$ 38,418
Impaired loans with a related allowance recorded	11,608	11,465	12,387
Total impaired loans	26,937	41,351	50,805
Interest Income Recognized
Impaired loans with no related allowance recorded	1,352	1,259	1,874
Impaired loans with a related allowance recorded	464	675	396
Total impaired loans	1,816	1,934	2,270
Commercial and Industrial
Recorded Investment
Impaired loans with no related allowance recorded	3,825	4,449
Impaired loans with a related allowance recorded	1,126	4,270
Total impaired loans	4,951	8,719
Unpaid Principal Balance
Impaired loans with no related allowance recorded	3,841	4,498
Impaired loans with a related allowance recorded	1,126	4,270
Total impaired loans	4,967	8,768
Related Allowance, Impaired loans	46	108
Average Recorded Investment
Impaired loans with no related allowance recorded	3,687	11,409	19,929
Impaired loans with a related allowance recorded	4,485	3,154	2,572
Total impaired loans	8,172	14,563	22,501
Interest Income Recognized
Impaired loans with no related allowance recorded	431	408	890
Impaired loans with a related allowance recorded	85	273	10
Total impaired loans	516	681	900
Commercial real estate
Recorded Investment
Impaired loans with no related allowance recorded	30	5,016
Impaired loans with a related allowance recorded	693	727
Total impaired loans	723	5,743
Unpaid Principal Balance
Impaired loans with no related allowance recorded	30	5,016
Impaired loans with a related allowance recorded	693	727
Total impaired loans	723	5,743
Related Allowance, Impaired loans	27	32
Average Recorded Investment
Impaired loans with no related allowance recorded	2,825	7,873	9,846
Impaired loans with a related allowance recorded	710	942	918
Total impaired loans	3,535	8,815	10,764
Interest Income Recognized
Impaired loans with no related allowance recorded	481	231	417
Impaired loans with a related allowance recorded	40	67	42
Total impaired loans	521	298	459
Construction
Average Recorded Investment
Impaired loans with no related allowance recorded		1,248
Total impaired loans		1,248
Interest Income Recognized
Impaired loans with no related allowance recorded		91
Total impaired loans		91
Residential
Recorded Investment
Impaired loans with no related allowance recorded	10,425	9,112
Impaired loans with a related allowance recorded	4,539	7,002
Total impaired loans	14,964	16,114
Unpaid Principal Balance
Impaired loans with no related allowance recorded	10,718	9,426
Impaired loans with a related allowance recorded	4,819	7,387
Total impaired loans	15,537	16,813
Related Allowance, Impaired loans	130	396
Average Recorded Investment
Impaired loans with no related allowance recorded	8,777	9,356	8,582
Impaired loans with a related allowance recorded	6,413	7,369	8,897
Total impaired loans	15,190	16,725	17,479
Interest Income Recognized
Impaired loans with no related allowance recorded	440	529	567
Impaired loans with a related allowance recorded	339	335	344
Total impaired loans	779	$ 864	911
Consumer
Average Recorded Investment
Impaired loans with no related allowance recorded	40
Total impaired loans	$ 40
Lease financing
Average Recorded Investment
Impaired loans with no related allowance recorded			61
Total impaired loans			$ 61

Benefit Plans - Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension Benefits
Amounts arising during the year:
Net (gain) loss on pension assets	$ (16,278)	$ 12,209	$ (8,619)
Net loss (gain) on pension obligations	21,512	(6,619)	9,757
Reclassification adjustments recognized as components of net periodic benefit cost during the year:
Net (gain) loss	(6,995)	(7,315)	(8,625)
Amount recognized in other comprehensive income	(1,761)	(1,725)	(7,487)
Other Benefits
Amounts arising during the year:
Net loss (gain) on pension obligations	540	(2,755)	(34)
Reclassification adjustments recognized as components of net periodic benefit cost during the year:
Net (gain) loss	385
Prior service credit	429	429	429
Amount recognized in other comprehensive income	$ 1,354	$ (2,326)	$ 395

Leases - Future Minimum Rental Payments (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Future minimum rental payments under noncancelable leases
2020	$ 8,776
2021	8,084
2022	5,453
2023	2,964
2024	2,721
Thereafter	32,227
Total future minimum lease payments	60,225
Less: Imputed interest	(15,934)
Total	$ 44,291

Income Taxes - Components of Provision and Current Receivable (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Tax Cuts and Jobs Act of 2017
Corporate tax rate (as a percent)		21.00%	21.00%	35.00%
Additional income tax expense from on-time revaluation of certain tax-related assets	$ 47,600
Current:
Federal		$ 56,450	$ 69,477	$ 101,162
State and local		23,796	27,909	24,595
Total current		80,246	97,386	125,757
Deferred:
Federal		14,047	(2,043)	58,732
State and local		3,013	(1,559)	184
Total deferred		17,060	(3,602)	58,916
Total provision for income taxes		97,306	93,784	$ 184,673
Receivables
Current income tax receivable due from various jurisdictions		$ 24,400	$ 25,300

Commitments and Contingent Liabilities - Contingencies (Details) - Overdraft fee litigation - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Contingencies
Settlement agreement expense recorded			$ 4.1
Settlement agreement, amount funded	$ 4.1
Insurance proceeds to partially cover litigation expense incurred		$ 0.7

Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Benefit plans

Schedule of amounts recognized in other comprehensive income from benefit plans


	Pension Benefits						Other Benefits
(dollars in thousands)	2019		2018		2017		2019		2018		2017
Amounts arising during the year:
Net (gain) loss on pension assets	$	(16,278)	$	12,209	$	(8,619)	$	—	$	—	$	—
Net loss (gain) on pension obligations		21,512		(6,619)		9,757		540		(2,755)		(34)
Reclassification adjustments recognized as components of net periodic benefit cost during the year:
Net (gain) loss		(6,995)		(7,315)		(8,625)		385		—		—
Prior service credit		—		—		—		429		429		429
Amount recognized in other comprehensive income	$	(1,761)	$	(1,725)	$	(7,487)	$	1,354	$	(2,326)	$	395

Schedule of amounts within accumulated other comprehensive income not yet recognized in net periodic benefit cost


	Pension Benefits				Other Benefits
(dollars in thousands)	2019		2018		2019		2018
Net actuarial loss (gain)	$	40,061	$	41,822	$	(1,582)	$	(2,507)
Prior service credit		—		—		(51)		(480)
Total, pretax effect		40,061		41,822		(1,633)		(2,987)
Tax impact		(10,786)		(11,260)		440		804
Ending balance in accumulated other comprehensive loss	$	29,275	$	30,562	$	(1,193)	$	(2,183)

Schedule of amounts within accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost


	Pension		Other
(dollars in thousands)	Benefits		Benefits
Amortization of prior service credit	$	—	$	(51)
Amortization of net actuarial loss (gain)		5,753		(103)
Total to be recognized in 2020	$	5,753	$	(154)

Summary of changes to projected or accumulated benefit obligation


	Pension Benefits				Other Benefits
(dollars in thousands)	2019		2018		2019		2018
Benefit obligation at beginning of year	$	199,072	$	212,981	$	19,716	$	21,449
Service cost		14		696		710		750
Interest cost		8,261		7,362		808		739
Actuarial loss (gain)		22,573		(6,619)		540		(2,755)
Curtailment gain		(1,061)		—		—		—
Benefit payments		(15,574)		(15,348)		(469)		(467)
Benefit obligation at end of year	$	213,285	$	199,072	$	21,305	$	19,716

Summary of changes to fair value of plan assets


	Pension Benefits				Other Benefits
(dollars in thousands)	2019		2018		2019		2018
Fair value of plan assets at beginning of year	$	99,581	$	114,220	$	—	$	—
Actual return on plan assets		20,863		(6,936)		—		—
Benefit payments from trust		(7,785)		(7,703)		—		—
Fair value of plan assets at end of year	$	112,659	$	99,581	$	—	$	—

Summary of funded status of plans


	Pension Benefits				Other Benefits
(dollars in thousands)	2019		2018		2019		2018
Pension assets for overfunded plans	$	16,291	$	8,702	$	—	$	—
Pension liabilities for underfunded plans		(116,917)		(108,193)		(21,305)		(19,716)
Funded status	$	(100,626)	$	(99,491)	$	(21,305)	$	(19,716)

Schedule of projected and accumulated benefit obligation and fair value of plan assets


	Funded Pension Plan				Unfunded Pension Plans				Total Pension Plans
(dollars in thousands)	2019		2018		2019		2018		2019		2018
Projected benefit obligation	$	96,368	$	90,879	$	116,917	$	108,193	$	213,285	$	199,072
Accumulated benefit obligation		96,368		90,879		116,834		106,357		213,202		197,236
Fair value of plan assets		112,659		99,581		—		—		112,659		99,581
Overfunded (underfunded) portion of PBO/ABO		16,291		8,702		(116,917)		(108,193)		(100,626)		(99,491)

Summary of change in net actuarial loss and amortization


			Income
			Tax
	Pre-tax		Benefit		Net of
(dollars in thousands)	Amount		(Expense)		Tax
Accumulated other comprehensive loss at December 31, 2018	$	(180,915)	$	48,720	$	(132,195)
Year ended December 31, 2019
Pension and other benefits:
Net actuarial losses arising during the year		(5,774)		1,555		(4,219)
Prior service credit		(429)		115		(314)
Amortization of net loss included in net income		6,610		(1,780)		4,830
Net change in pension and other benefits		407		(110)		297
Investment securities:
Unrealized net gains arising during the year		134,343		(36,178)		98,165
Reclassification of net losses to net income:
Investment securities losses, net		2,715		(731)		1,984
Net change in investment securities		137,058		(36,909)		100,149
Other comprehensive income		137,465		(37,019)		100,446
Accumulated other comprehensive loss at December 31, 2019	$	(43,450)	$	11,701	$	(31,749)


			Income
			Tax
	Pre-tax		Benefit		Net of
(dollars in thousands)	Amount		(Expense)		Tax
Accumulated other comprehensive loss at December 31, 2017	$	(159,423)	$	63,040	$	(96,383)
Year ended December 31, 2018
Early adoption of ASU No. 2018-02		—		(20,068)		(20,068)
Pension and other benefits:
Net actuarial losses arising during the year		(2,835)		763		(2,072)
Prior service credit		(429)		116		(313)
Amortization of net loss included in net income		7,315		(1,970)		5,345
Net change in pension and other benefits		4,051		(1,091)		2,960
Investment securities:
Unrealized net losses arising during the year		(43,545)		11,686		(31,859)
Reclassification of net gains to net income:
OTTI losses on available-for-sale debt securities, net		24,085		(6,485)		17,600
Net change in investment securities		(19,460)		5,201		(14,259)
Cash flow derivative hedges:
Unrealized net gains on cash flow derivative hedges arising during the year		1,475		(397)		1,078
Reclassification of net gains to net income:
Other noninterest expense		(7,558)		2,035		(5,523)
Net change in cash flow derivative hedges		(6,083)		1,638		(4,445)
Other comprehensive loss		(21,492)		5,748		(15,744)
Accumulated other comprehensive loss at December 31, 2018	$	(180,915)	$	48,720	$	(132,195)


			Income
			Tax
	Pre-tax		Benefit		Net of
(dollars in thousands)	Amount		(Expense)		Tax
Accumulated other comprehensive loss at December 31, 2016	$	(145,472)	$	57,461	$	(88,011)
Year ended December 31, 2017
Pension and other benefits:
Net actuarial losses arising during the year		(1,104)		436		(668)
Prior service credit		(429)		170		(259)
Amortization of net loss included in net income		8,625		(3,407)		5,218
Net change in pension and other benefits		7,092		(2,801)		4,291
Investment securities:
Unrealized net losses arising during the year		(23,516)		9,357		(14,159)
Net change in investment securities		(23,516)		9,357		(14,159)
Cash flow derivative hedges:
Unrealized net gains on cash flow derivative hedges arising during the year		2,473		(977)		1,496
Net change in cash flow derivative hedges		2,473		(977)		1,496
Other comprehensive loss		(13,951)		5,579		(8,372)
Accumulated other comprehensive loss at December 31, 2017	$	(159,423)	$	63,040	$	(96,383)

Schedule of components of net periodic benefit cost


	Income line item where recognized in	Pension Benefits						Other Benefits
(dollars in thousands)	the consolidated statements of income	2019		2018		2017		2019		2018		2017
Service cost	Salaries and employee benefits	$	14	$	696	$	629	$	710	$	750	$	738
Interest cost	Other noninterest expense		8,261		7,362		8,297		808		739		776
Expected return on plan assets	Other noninterest expense		(4,585)		(5,273)		(5,003)		—		—		—
Prior service credit	Other noninterest expense		—		—		—		(429)		(429)		(429)
Recognized net actuarial loss (gain)	Other noninterest expense		6,995		7,315		8,625		(385)		—		—
Total net periodic benefit cost		$	10,685	$	10,100	$	12,548	$	704	$	1,060	$	1,085

Schedule of funded pension benefit amounts included in pension benefits


	Funded Pension Benefits
(dollars in thousands)	2019		2018		2017
Interest cost	$	3,808	$	3,420	$	3,922
Expected return on plan assets		(4,585)		(5,273)		(5,003)
Recognized net actuarial loss		3,714		2,600		4,316
Total net periodic benefit cost	$	2,937	$	747	$	3,235

Schedule of assumptions used to determine benefit obligations and net periodic benefit cost

The following weighted-average assumptions were used to determine benefit obligations at December 31, 2019 and 2018:

FHI ERP Pension Benefits

SERP Pension Benefits

Other Benefits

2019

2018

2019

2018

2019

2018

Discount rate

3.16

4.30

3.16

4.30

3.16

4.30

Rate of compensation increase

4.00

4.00

Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, 2019, 2018 and 2017 were as follows:


	FHI ERP Pension Benefits						SERP Pension Benefits						Other Benefits
	2019		2018		2017		2019		2018		2017		2019		2018		2017
Discount rate	4.30	%	3.51	%	4.05	%	4.30	%	3.51	%	4.05	%	4.30	%	3.51	%	4.05	%
Expected long-term return on plan assets	4.75	%	4.75	%	4.75	%	NA		NA		NA		NA		NA		NA
Rate of compensation increase	NA		NA		NA		4.00	%	4.00	%	4.00	%	NA		NA		NA

Schedule of assumed healthcare cost trend rates


	2019		2018		2017
Healthcare cost trend rate assumed for next year	6.50	%	7.00	%	7.00	%
Rate to which the cost trend is assumed to decline (the ultimate trend rate)	5.00	%	5.00	%	5.00	%
Year that the rate reaches the ultimate trend rate	2026		2026		2026

Schedule of pre-tax effect of one percentage point change in assumed healthcare cost trend rates


	One Percentage-		One Percentage-
(dollars in thousands)	Point Increase		Point Decrease
Effect on 2019 total of service and interest cost components	$	75	$	(67)
Effect on postretirement benefit obligation at December 31, 2019		353		(328)

Schedule of allocation of employee retirement plan assets


	Asset Allocation
	2019		2018
Equity securities	31	%	29	%
Debt securities	66	%	69	%
Other securities	3	%	2	%
Total	100	%	100	%

Schedule of target allocation of employee retirement plan assets


	Target
	Allocation
Equity securities	30	%
Debt securities	68	%
Other securities	2	%

Schedule of expected future benefit payments


	Pension		Other
(dollars in thousands)	Benefits		Benefits
2020	$	16,120	$	1,205
2021		15,902		1,315
2022		15,580		1,410
2023		15,176		1,487
2024		14,739		1,546
2025 to 2029		69,769		8,085

Schedule of fair value of employee retirement plan assets

December 31, 2019

Quoted Prices

Significant

In Active

Other

Significant

Markets for

Observable

Unobservable

Identical Assets

Inputs

(dollars in thousands)

(Level 1)

(Level 2)

(Level 3)

Total

Asset classes:

Cash and cash equivalents

2,824

—

2,824

Fixed income - U.S. Treasury securities

—

4,053

—

4,053

Fixed income - U.S. government agency securities

—

3,504

—

3,504

Fixed income - U.S. corporate securities

—

58,808

—

58,808

Fixed income - municipal securities

—

484

—

484

Fixed income - mutual funds

6,204

—

6,204

Fixed income - international securities

1,544

—

1,544

Equity - large-cap exchange-traded funds

23,278

—

23,278

Equity - mid-cap exchange-traded funds

3,379

—

3,379

Equity - small-cap exchange-traded funds

1,645

—

1,645

Equity - international funds

6,936

—

6,936

Total

45,810

66,849

—

112,659


	December 31, 2018
	Quoted Prices		Significant
	In Active		Other		Significant
	Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
(dollars in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Asset classes:
Cash and cash equivalents	$	2,428	$	—	$	—	$	2,428
Fixed income - U.S. Treasury securities		—		4,450		—		4,450
Fixed income - U.S. government agency securities		—		3,565		—		3,565
Fixed income - U.S. corporate securities		—		53,721		—		53,721
Fixed income - municipal securities		—		451		—		451
Fixed income - mutual funds		6,272		—		—		6,272
Equity - large-cap mutual funds		8,831		—		—		8,831
Equity - large-cap exchange-traded funds		10,482		—		—		10,482
Equity - mid-cap exchange-traded funds		2,544		—		—		2,544
Equity - small-cap exchange-traded funds		1,176		—		—		1,176
Equity - international funds		5,661		—		—		5,661
Total	$	37,394	$	62,187	$	—	$	99,581

Pension and other benefits, net actuarial losses arising during the year

Benefit plans

Summary of change in net actuarial loss and amortization


	Pension Benefits				Other Benefits
(dollars in thousands)	2019		2018		2019		2018
Net actuarial loss (gain) at beginning of year	$	41,822	$	43,547	$	(2,507)	$	248
Amortization cost		(6,995)		(7,315)		385		—
Liability loss (gain)		21,512		(6,619)		540		(2,755)
Asset (gain) loss		(16,278)		12,209		—		—
Net actuarial loss (gain) at end of year	$	40,061	$	41,822	$	(1,582)	$	(2,507)

Other Assets - Loans, Fees, Amortization and Carrying Value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other Intangible Assets
Unpaid principal amount of consumer loans serviced for others	$ 2,344,899	$ 2,664,860
Contractually specified fees, late charges, and ancillary fees	6,300	7,000	$ 6,500
Amortization of mortgage servicing rights	3,625	3,813	$ 3,600
MSRs
Estimated future amortization expenses for MSRs, next five years
2020	2,129
2021	1,808
2022	1,530
2023	1,295
2024	1,101
Details of MSRs
Gross carrying amount	63,480	63,342
Less: accumulated amortization	50,812	47,187
Net carrying value	$ 12,668	$ 16,155

Derivative Financial Instruments - Clearinghouse Margin and Collateral (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Derivative contracts
Initial margin collateral posted	$ 8.7	$ 2.1
Interest rate swaps
Derivative contracts
Financial instruments pledged as collateral	29.9	26.2
Cash pledged as collateral	13.4	2.6
Chicago Mercantile Exchange (CME)
Derivative contracts
Variation margin	1.0	0.5
London Clearing House (LCH)
Derivative contracts
Variation margin	$ 62.5	$ 0.6

Fair Value - Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets
Investment securities	$ 4,075,644	$ 4,498,342
Fair Value Measurements, Recurring
Assets
Investment securities	4,075,644	4,498,342
Other assets	63,539	12,336
Liabilities
Other liabilities	(4,915)	(14,692)
Total
Net Assets (Liabilities)	4,134,268	4,495,986
Fair Value Measurements, Recurring \| Level 2
Assets
Investment securities	4,075,644	4,498,342
Other assets	63,539	12,336
Liabilities
Other liabilities	(682)	(12,085)
Total
Net Assets (Liabilities)	4,138,501	4,498,593
Fair Value Measurements, Recurring \| Level 3
Liabilities
Other liabilities	(4,233)	(2,607)
Total
Net Assets (Liabilities)	(4,233)	(2,607)
U.S. Treasury securities
Assets
Investment securities	29,888	389,470
U.S. Treasury securities \| Fair Value Measurements, Recurring
Assets
Investment securities	29,888	389,470
U.S. Treasury securities \| Fair Value Measurements, Recurring \| Level 2
Assets
Investment securities	29,888	389,470
Government-sponsored enterprises debt securities
Assets
Investment securities	101,439	241,594
Government-sponsored enterprises debt securities \| Fair Value Measurements, Recurring
Assets
Investment securities	101,439	241,594
Government-sponsored enterprises debt securities \| Fair Value Measurements, Recurring \| Level 2
Assets
Investment securities	101,439	241,594
Residential - Government agency
Assets
Investment securities	291,209	411,536
Residential - Government agency \| Fair Value Measurements, Recurring
Assets
Investment securities	291,209	411,536
Residential - Government agency \| Fair Value Measurements, Recurring \| Level 2
Assets
Investment securities	291,209	411,536
Residential - Government-sponsored enterprises
Assets
Investment securities	399,492	150,847
Residential - Government-sponsored enterprises \| Fair Value Measurements, Recurring
Assets
Investment securities	399,492	150,847
Residential - Government-sponsored enterprises \| Fair Value Measurements, Recurring \| Level 2
Assets
Investment securities	399,492	150,847
Commercial - Government-sponsored enterprises
Assets
Investment securities	101,719
Commercial - Government-sponsored enterprises \| Fair Value Measurements, Recurring
Assets
Investment securities	101,719
Commercial - Government-sponsored enterprises \| Fair Value Measurements, Recurring \| Level 2
Assets
Investment securities	101,719
Government agency
Assets
Investment securities	2,381,278	2,682,449
Government agency \| Fair Value Measurements, Recurring
Assets
Investment securities	2,381,278	2,682,449
Government agency \| Fair Value Measurements, Recurring \| Level 2
Assets
Investment securities	2,381,278	2,682,449
Government-sponsored enterprises
Assets
Investment securities	770,619	602,592
Government-sponsored enterprises \| Fair Value Measurements, Recurring
Assets
Investment securities	770,619	602,592
Government-sponsored enterprises \| Fair Value Measurements, Recurring \| Level 2
Assets
Investment securities	$ 770,619	602,592
Debt securities issued by states and political subdivisions
Assets
Investment securities		19,854
Debt securities issued by states and political subdivisions \| Fair Value Measurements, Recurring
Assets
Investment securities		19,854
Debt securities issued by states and political subdivisions \| Fair Value Measurements, Recurring \| Level 2
Assets
Investment securities		$ 19,854

Deposits - Maturity Distribution of Time Certificates of Deposits (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Maturity distribution of time certificates of deposit
Three months or less	$ 1,032,992
Over three through six months	457,199
Over six through twelve months	536,766
2021	153,462
2022	188,030
2023	71,236
2024	70,440
Thereafter	32
Total	2,510,157
Under $250,000
Maturity distribution of time certificates of deposit
Three months or less	260,198
Over three through six months	215,191
Over six through twelve months	321,555
2021	98,344
2022	128,845
2023	59,069
2024	59,547
Thereafter	32
Total	1,142,781
$250,000 or More
Maturity distribution of time certificates of deposit
Three months or less	772,794
Over three through six months	242,008
Over six through twelve months	215,211
2021	55,118
2022	59,185
2023	12,167
2024	10,893
Total	$ 1,367,376

Allowance for Loan and Lease Losses

12 Months Ended

Dec. 31, 2019

Allowance for Loan and Lease Losses

Allowance for Loan and Lease Losses

5. Allowance for Loan and Lease Losses

The Company must maintain an allowance for loan and lease losses (the “Allowance”) that is adequate to absorb estimated probable credit losses associated with its loan and lease portfolio. The Allowance consists of an allocated portion, which covers estimated credit losses for specifically identified loans and pools of loans and leases, and an unallocated portion.

Segmentation

Management has identified three primary portfolio segments in estimating the Allowance: commercial lending, residential real estate lending and consumer lending. Commercial lending is further segmented into four distinct portfolios based on characteristics relating to the borrower, transaction, and collateral. These portfolio segments are: commercial and industrial, commercial real estate, construction, and lease financing. Residential real estate is not further segmented, but consists of residential mortgages including real estate secured installment loans and home equity lines of credit. Consumer lending is not further segmented, but consists primarily of automobile loans, credit cards, and other installment loans. Management has developed a methodology for each segment taking into consideration portfolio segment-specific factors such as product type, loan portfolio characteristics, management information systems, and other risk factors.

Specific Allocation

Commercial

A specific allocation is determined for individually impaired commercial loans. A loan is considered impaired when it is probable that the Company will be unable to collect the full amount of principal and interest according to the contractual terms of the loan agreement.

Management identifies material impaired loans based on their size in relation to the Company’s total loan and lease portfolio. Each impaired loan equal to or exceeding a specified threshold requires an analysis to determine the appropriate level of reserve for that specific loan. Impaired loans below the specified threshold are treated as a pool, with specific allocations established based on qualitative factors such as asset quality trends, risk identification, lending policies, portfolio growth, and portfolio concentrations.

Residential

A specific allocation is determined for residential real estate loans based on delinquency status. In addition, each impaired loan equal to or exceeding a specified threshold requires analysis to determine the appropriate level of reserve for that specific loan, generally based on the value of the underlying collateral less estimated costs to sell. The specific allocation will be zero for impaired loans in which the value of the underlying collateral, less estimated costs to sell, exceeds the unpaid principal balance of the loan.

Consumer

A specific allocation is determined for the consumer loan portfolio using delinquency-based formula allocations. The Company uses a formula approach in determining the consumer loan specific allocation and recognizes the statistical validity of measuring losses predicated on past due status.

Pooled Allocation

Commercial

Pooled allocation for pass, special mention, substandard and doubtful grade commercial loans and leases that share common risk characteristics and properties is determined using a historical loss rate analysis and qualitative factor considerations. Loan grade categories are discussed under “Credit Quality”.

Residential and Consumer

Pooled allocation for non-delinquent consumer and residential real estate loans is determined using a historical loss rate analysis and qualitative factor considerations.

Qualitative Adjustments

Qualitative adjustments to historical loss rates or other static sources may be necessary since these rates may not be an accurate indicator of losses inherent in the current portfolio. To estimate the level of adjustments, management considers factors including global, national and local economic conditions; levels and trends in problem loans; the effect of credit concentrations; collateral value trends; changes in risk due to changes in lending policies and practices; management expertise; industry and regulatory trends; and volume of loans.

Unallocated Allowance

The Company’s Allowance incorporates an unallocated portion to cover risk factors and events that may have occurred as of the evaluation date that have not been reflected in the risk measures utilized due to inherent limitations in the precision of the estimation process. These risk factors, in addition to past and current events based on facts at the consolidated balance sheets date and realistic courses of action that management expects to take, are assessed in determining the level of unallocated allowance.

The Allowance was comprised of the following for the years indicated:

Year Ended December 31, 2019

Commercial Lending

Commercial

and

Real

Lease

(dollars in thousands)

Industrial

Estate

Construction

Financing

Residential

Consumer

Unallocated

Total

Allowance for loan and lease losses:

Balance at beginning of year

34,501

19,725

5,813

432

44,906

35,813

528

141,718

Charge-offs

(2,718)

—

(24)

(438)

(32,807)

—

(35,987)

Recoveries

410

263

—

967

9,359

—

10,999

Increase (decrease) in Provision

(3,218)

2,337

(969)

(6,256)

22,279

(389)

13,800

Balance at end of year

28,975

22,325

4,844

424

39,179

34,644

139

130,530

Individually evaluated for impairment

—

130

—

203

Collectively evaluated for impairment

28,929

22,298

4,844

424

39,049

34,644

139

130,327

Loans and leases:

Individually evaluated for impairment

4,951

723

—

14,964

—

20,638

Collectively evaluated for impairment

2,738,291

3,463,230

519,241

202,483

4,647,211

1,620,556

—

13,191,012

Balance at end of year

2,743,242

3,463,953

519,241

202,483

4,662,175

1,620,556

—

13,211,650


	Year Ended December 31, 2018
	Commercial Lending
	Commercial		Commercial
	and		Real				Lease
(dollars in thousands)	Industrial		Estate		Construction		Financing		Residential		Consumer		Unallocated		Total
Allowance for loan and lease losses:
Balance at beginning of year	$	34,006	$	18,044	$	6,817	$	611	$	42,852	$	31,249	$	3,674	$	137,253
Charge-offs		(778)		—		—		—		(165)		(26,630)		—		(27,573)
Recoveries		232		216		—		—		940		8,470		—		9,858
Increase (decrease) in Provision		1,041		1,465		(1,004)		(179)		1,279		22,724		(3,146)		22,180
Balance at end of year	$	34,501	$	19,725	$	5,813	$	432	$	44,906	$	35,813	$	528	$	141,718
Individually evaluated for impairment		108		32		—		—		396		—		—		536
Collectively evaluated for impairment		34,393		19,693		5,813		432		44,510		35,813		528		141,182
Loans and leases:
Individually evaluated for impairment	$	8,719	$	5,743	$	—	$	—	$	16,114	$	—	$	—	$	30,576
Collectively evaluated for impairment		3,200,041		2,985,040		626,757		147,769		4,423,504		1,662,504		—		13,045,615
Balance at end of year	$	3,208,760	$	2,990,783	$	626,757	$	147,769	$	4,439,618	$	1,662,504	$	—	$	13,076,191


	Year Ended December 31, 2017
	Commercial Lending
	Commercial		Commercial
	and		Real				Lease
(dollars in thousands)	Industrial		Estate		Construction		Financing		Residential		Consumer		Unallocated		Total
Allowance for loan and lease losses:
Balance at beginning of year	$	33,129	$	18,448	$	4,513	$	847	$	43,436	$	28,388	$	6,733	$	135,494
Charge-offs		(1,519)		—		—		(147)		(408)		(23,851)		—		(25,925)
Recoveries		844		596		—		—		687		7,057		—		9,184
Increase (decrease) in Provision		1,552		(1,000)		2,304		(89)		(863)		19,655		(3,059)		18,500
Balance at end of year	$	34,006	$	18,044	$	6,817	$	611	$	42,852	$	31,249	$	3,674	$	137,253
Individually evaluated for impairment		4		6		—		—		484		—		—		494
Collectively evaluated for impairment		34,002		18,038		6,817		611		42,368		31,249		3,674		136,759
Loans and leases:
Individually evaluated for impairment	$	18,183	$	10,636	$	—	$	—	$	16,530	$	—	$	—	$	45,349
Collectively evaluated for impairment		3,117,083		2,656,961		632,911		165,066		4,073,523		1,586,476		—		12,232,020
Balance at end of year	$	3,135,266	$	2,667,597	$	632,911	$	165,066	$	4,090,053	$	1,586,476	$	—	$	12,277,369

Credit Quality

The Company performs an internal loan review and grading on an ongoing basis. The review provides management with periodic information as to the quality of the loan portfolio and effectiveness of its lending policies and procedures. The objective of the loan review and grading procedures is to identify, in a timely manner, existing or emerging credit quality problems so that appropriate steps can be initiated to avoid or minimize future losses.

Loans subject to grading include: commercial and industrial loans, commercial and standby letters of credit, installment loans to businesses or individuals for business and commercial purposes, commercial real estate loans, overdraft lines of credit, commercial credit cards, and other credits as may be determined. Loans which are not subject to grading include loans that are 100% sold with no recourse to the Company, consumer installment loans, indirect automobile loans, credit cards, home equity lines of credit and residential mortgage loans.

Residential real estate and consumer loans are underwritten primarily on the basis of credit bureau scores, debt-service-to-income ratios, and collateral quality and loan to value ratios.

A credit risk rating system is used to determine loan grade and is based on borrower credit risk and transactional risk. The loan grading process is a mechanism used to determine the risk of a particular borrower and is based on the following eight factors of a borrower: character, earnings and operating cash flow, asset and liability structure, debt capacity, financial reporting, management and controls, borrowing entity and industry and operating environment.

Pass – “Pass” (uncriticized) loans and leases, are not considered to carry greater than normal risk. The borrower has the apparent ability to satisfy obligations to the Company, and therefore no loss in ultimate collection is anticipated.

Special Mention – Loans and leases that have potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for assets or in the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

Substandard – Loans and leases that are inadequately protected by the current financial condition and paying capacity of the obligor or by any collateral pledged. Loans and leases so classified must have a well-defined weakness or weaknesses that jeopardize the collection of the debt. They are characterized by the distinct possibility that the bank may sustain some loss if the deficiencies are not corrected.

Doubtful – Loans and leases that have weaknesses found in substandard borrowers with the added provision that the weaknesses make collection of debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss – Loans and leases classified as loss are considered uncollectible and of such little value that their continuance as an asset is not warranted. This classification does not mean that the loan or lease has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future.

The credit risk profiles by internally assigned grade for loans and leases as of December 31, 2019 and 2018 were as follows:

December 31, 2019

Commercial

and

Real

Lease

(dollars in thousands)

Industrial

Estate

Construction

Financing

Total

Grade:

Pass

2,585,908

3,327,659

515,993

201,461

6,631,021

Special mention

91,365

106,331

127

1,022

198,845

Substandard

65,969

29,963

3,121

—

99,053

Total

2,743,242

3,463,953

519,241

202,483

6,928,919


	December 31, 2018
	Commercial		Commercial
	and		Real				Lease
(dollars in thousands)	Industrial		Estate		Construction		Financing		Total
Grade:
Pass	$	3,069,546	$	2,876,907	$	625,607	$	146,356	$	6,718,416
Special mention		57,012		91,298		200		1,223		149,733
Substandard		82,010		22,578		950		190		105,728
Doubtful		192		—		—		—		192
Total	$	3,208,760	$	2,990,783	$	626,757	$	147,769	$	6,974,069

There were no loans and leases graded as Loss as of December 31, 2019 and 2018.

The credit risk profiles based on payment activity for loans and leases that were not subject to loan grading as of December 31, 2019 and 2018 were as follows:

December 31, 2019

(dollars in thousands)

Residential Mortgage

Home Equity Line

Consumer

Consumer - Auto

Credit Cards

Total

Performing

3,759,799

886,879

219,046

1,016,142

347,264

6,229,130

Non-performing and delinquent

9,137

6,360

7,258

24,326

6,520

53,601

Total

3,768,936

893,239

226,304

1,040,468

353,784

6,282,731


	December 31, 2018
(dollars in thousands)	Residential Mortgage		Home Equity Line		Consumer		Consumer - Auto		Credit Cards		Total
Performing	$	3,519,172	$	903,284	$	234,458	$	1,044,393	$	339,162	$	6,040,469
Non-performing and delinquent		7,929		9,233		5,448		33,739		5,304		61,653
Total	$	3,527,101	$	912,517	$	239,906	$	1,078,132	$	344,466	$	6,102,122

Impaired and Nonaccrual Loans and Leases

The Company evaluates certain loans and leases individually for impairment. A loan or lease is considered to be impaired when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan or lease. An allowance for impaired commercial loans, including commercial real estate and construction loans, is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the estimated fair value of the collateral, less any selling costs, if the loan is collateral

dependent. An allowance for impaired residential loans is measured based on the estimated fair value of the collateral, less any selling costs. Management exercises significant judgment in developing these estimates.

The Company generally places a loan on nonaccrual status when management believes that collection of principal or interest has become doubtful or when a loan or lease becomes 90 days past due as to principal or interest, unless it is well secured and in the process of collection.

It is the Company’s policy to charge off a loan when the facts indicate that the loan is considered uncollectible.

The aging analyses of past due loans and leases as of December 31, 2019 and 2018 were as follows:

December 31, 2019

Accruing Loans and Leases

Greater

Total Non

Than or

Total

Accruing

30-59

60-89

Equal to

Total

Accruing

Loans

Days

90 Days

Past

Loans and

and

Total

(dollars in thousands)

Past Due

Due

Current

Leases

Outstanding

Commercial and industrial

1,525

808

1,429

3,762

2,739,448

2,743,210

2,743,242

Commercial real estate

1,664

1,125

1,013

3,802

3,460,121

3,463,923

3,463,953

Construction

—

2,367

516,874

519,241

—

519,241

Lease financing

—

202,483

—

202,483

Residential mortgage

3,258

399

3,731

3,759,799

3,763,530

5,406

3,768,936

Home equity line

2,971

394

2,995

6,360

886,879

893,239

—

893,239

Consumer

26,810

7,022

4,272

38,104

1,582,452

1,620,556

—

1,620,556

Total

36,228

9,748

12,150

58,126

13,148,056

13,206,182

5,468

13,211,650


	December 31, 2018
	Accruing Loans and Leases
					Greater								Total Non
					Than or						Total		Accruing
	30-59		60-89		Equal to		Total				Accruing		Loans
	Days		Days		90 Days		Past				Loans and		and		Total
(dollars in thousands)	Past Due		Past Due		Past Due		Due		Current		Leases		Leases		Outstanding
Commercial and industrial	$	1,293	$	—	$	141	$	1,434	$	3,207,052	$	3,208,486	$	274	$	3,208,760
Commercial real estate		—		—		—		—		2,989,125		2,989,125		1,658		2,990,783
Construction		91		—		—		91		626,666		626,757		—		626,757
Lease financing		47		—		—		47		147,722		147,769		—		147,769
Residential mortgage		2,274		1,012		32		3,318		3,519,172		3,522,490		4,611		3,527,101
Home equity line		5,616		775		2,842		9,233		903,284		912,517		—		912,517
Consumer		32,406		8,712		3,373		44,491		1,618,013		1,662,504		—		1,662,504
Total	$	41,727	$	10,499	$	6,388	$	58,614	$	13,011,034	$	13,069,648	$	6,543	$	13,076,191

The total carrying amounts and the total unpaid principal balances of impaired loans and leases as of December 31, 2019 and 2018 were as follows:


	December 31, 2019
			Unpaid
	Recorded		Principal		Related
(dollars in thousands)	Investment		Balance		Allowance
Impaired loans with no related allowance recorded:
Commercial and industrial	$	3,825	$	3,841	$	—
Commercial real estate		30		30		—
Residential mortgage		10,425		10,718		—
Total	$	14,280	$	14,589	$	—
Impaired loans with a related allowance recorded:
Commercial and industrial	$	1,126	$	1,126	$	46
Commercial real estate		693		693		27
Residential mortgage		4,539		4,819		130
Total	$	6,358	$	6,638	$	203
Total impaired loans:
Commercial and industrial	$	4,951	$	4,967	$	46
Commercial real estate		723		723		27
Residential mortgage		14,964		15,537		130
Total	$	20,638	$	21,227	$	203


	December 31, 2018
			Unpaid
	Recorded		Principal		Related
(dollars in thousands)	Investment		Balance		Allowance
Impaired loans with no related allowance recorded:
Commercial and industrial	$	4,449	$	4,498	$	—
Commercial real estate		5,016		5,016		—
Residential mortgage		9,112		9,426		—
Total	$	18,577	$	18,940	$	—
Impaired loans with a related allowance recorded:
Commercial and industrial	$	4,270	$	4,270	$	108
Commercial real estate		727		727		32
Residential mortgage		7,002		7,387		396
Total	$	11,999	$	12,384	$	536
Total impaired loans:
Commercial and industrial	$	8,719	$	8,768	$	108
Commercial real estate		5,743		5,743		32
Residential mortgage		16,114		16,813		396
Total	$	30,576	$	31,324	$	536

The following tables provide information with respect to the Company’s average balances, and of interest income recognized from, impaired loans for the years ended December 31, 2019, 2018, and 2017:


	Year Ended
	December 31, 2019
	Average		Interest
	Recorded		Income
(dollars in thousands)	Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial and industrial	$	3,687	$	431
Commercial real estate		2,825		481
Residential mortgage		8,777		440
Consumer		40		—
Total	$	15,329	$	1,352
Impaired loans with a related allowance recorded:
Commercial and industrial	$	4,485	$	85
Commercial real estate		710		40
Residential mortgage		6,413		339
Total	$	11,608	$	464
Total impaired loans:
Commercial and industrial	$	8,172	$	516
Commercial real estate		3,535		521
Residential mortgage		15,190		779
Consumer		40		—
Total	$	26,937	$	1,816


	Year Ended
	December 31, 2018
	Average		Interest
	Recorded		Income
(dollars in thousands)	Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial and industrial	$	11,409	$	408
Commercial real estate		7,873		231
Construction		1,248		91
Residential mortgage		9,356		529
Total	$	29,886	$	1,259
Impaired loans with a related allowance recorded:
Commercial and industrial	$	3,154	$	273
Commercial real estate		942		67
Residential mortgage		7,369		335
Total	$	11,465	$	675
Total impaired loans:
Commercial and industrial	$	14,563	$	681
Commercial real estate		8,815		298
Construction		1,248		91
Residential mortgage		16,725		864
Total	$	41,351	$	1,934


	Year Ended
	December 31, 2017
	Average		Interest
	Recorded		Income
(dollars in thousands)	Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial and industrial	$	19,929	$	890
Commercial real estate		9,846		417
Lease financing		61		—
Residential mortgage		8,582		567
Total	$	38,418	$	1,874
Impaired loans with a related allowance recorded:
Commercial and industrial	$	2,572	$	10
Commercial real estate		918		42
Residential mortgage		8,897		344
Total	$	12,387	$	396
Total impaired loans:
Commercial and industrial	$	22,501	$	900
Commercial real estate		10,764		459
Lease financing		61		—
Residential mortgage		17,479		911
Total	$	50,805	$	2,270

Modifications

Commercial and industrial loans modified in a troubled debt restructuring (“TDR”) often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Commercial real estate and construction loans modified in a TDR often involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor. Construction loans modified in a TDR may also involve extending the interest-only payment period. Lease financing modifications generally involve a short-term forbearance period, usually about three months, after which the missed payments are added to the end of the lease term, thereby extending the maturity date. Interest continues to accrue on the missed payments and as a result, the effective yield on the lease remains unchanged. As the forbearance period usually involves an insignificant payment delay, lease financing modifications typically do not meet the reporting criteria for a TDR. Residential real estate loans modified in a TDR are primarily comprised of loans where monthly payments are lowered to accommodate the borrowers' financial needs for a period of time, normally two years. During that time, the borrower's entire monthly payment is applied to principal. After the lowered monthly payment period ends, the borrower reverts to paying principal and interest per the original terms with the maturity date adjusted accordingly. Generally, consumer loans are not classified as a TDR as they are normally charged off upon reaching a predetermined delinquency status that ranges from 120 to 180 days and varies by product type.

Loans modified in a TDR may already be on nonaccrual status and in some cases partial charge-offs may have already been taken against the outstanding loan balance. Loans modified in a TDR are evaluated for impairment. As a result, this may have a financial effect of increasing the specific Allowance associated with the loan. An Allowance for impaired commercial loans, including commercial real estate and construction loans, that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. An Allowance for impaired residential loans that have been modified in a TDR is measured based on the estimated fair value of the collateral, less any selling costs. Management exercises significant judgment in developing these estimates.

The following presents, by class, information related to loans modified in a TDR during the years ended December 31, 2019, 2018 and 2017:


	Year Ended December 31, 2019
	Number of	Recorded		Related
(dollars in thousands)	Contracts⁽¹⁾	Investment⁽²⁾		Allowance
Commercial and industrial	2	$	571	$	25
Residential mortgage	1		609		—
Total	3	$	1,180	$	25


	Year Ended December 31, 2018
	Number of	Recorded		Related
(dollars in thousands)	Contracts⁽¹⁾	Investment⁽²⁾		Allowance
Commercial and industrial	1	$	369	$	10
Residential mortgage	3		875		29
Total	4	$	1,244	$	39


	Year Ended December 31, 2017
	Number of	Recorded		Related
(dollars in thousands)	Contracts⁽¹⁾	Investment⁽²⁾		Allowance
Commercial and industrial	1	$	1,075	$	—
Residential mortgage	2		659		23
Total	3	$	1,734	$	23

(1)	The number of contracts does not include TDRs that have been fully paid off, charged off or foreclosed upon by the end of the period.

(2)	The recorded investment balances reflect all partial paydowns and charge-offs since the modification date and do not include TDRs that have been fully paid off, charged off or foreclosed upon by the end of the period.

The above loans were modified in a TDR through an extension of maturity dates, temporary interest-only payments, reduced payments or below-market interest rates.

The Company had commitments to extend credit, standby letters of credit and commercial letters of credit totaling $6.1 billion and $5.8 billion as of December 31, 2019 and 2018, respectively. Of the $6.1 billion at December 31, 2019, there were commitments of $4.5 million related to borrowers who had loan terms modified in a TDR. Of the $5.8 billion at December 31, 2018, there were commitments of $1.8 million related to borrowers who had loan terms modified in a TDR.

The following table presents, by class, loans modified in TDRs that have defaulted in the current period within 12 months of their permanent modification date for the periods indicated. The Company is reporting these defaulted TDRs based on a payment default definition of 30 days past due:


	Year Ended December 31,
	2019			2018			2017
	Number of	Recorded		Number of	Recorded		Number of	Recorded
(dollars in thousands)	Contracts⁽¹⁾	Investment⁽²⁾		Contracts⁽¹⁾	Investment⁽²⁾		Contracts⁽¹⁾	Investment⁽²⁾
Commercial and industrial⁽³⁾	2	$	571	—	$	—	1	$	2,480
Commercial real estate⁽⁴⁾	—		—	—		—	1		1,393
Total	2	$	571	—	$	—	2	$	3,873

(1)	The number of contracts does not include TDRs that have been fully paid off, charged off or foreclosed upon by the end of the period.

(2)	The recorded investment balances reflect all partial paydowns and charge-offs since the modification date and do not include TDRs that have been fully paid off, charged off or foreclosed upon by the end of the period.

(3)	In 2019, the commercial and industrial loans that subsequent defaulted were temporarily modified to interest-only payments. In 2017, the maturity date for the commercial and industrial loan that subsequently defaulted was extended.

(4)	In 2017, the commercial real estate loan that subsequently defaulted was extended.

Foreclosure Proceedings

There was one residential mortgage loan collateralized by real estate property of $0.3 million that was modified in a TDR that was in process of foreclosure as of both December 31, 2019 and December 31, 2018.

Foreclosed Property

Residential real estate properties held from two foreclosed residential mortgage loans included in other real estate owned and repossessed personal property shown in the consolidated balance sheets were $0.3 million as of December 31, 2019. Residential real estate properties held from one foreclosed residential mortgage loan and one foreclosed home equity line included in other real estate owned and repossessed personal property shown in the consolidated balance sheets were $0.8 million as of December 31, 2018.

Other Assets - Changes in Amortized MSRs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Changes in amortized mortgage servicing rights
Balance at beginning of period	$ 16,155	$ 13,196
Originations	138	328
Purchases		6,444
Amortization	(3,625)	(3,813)	$ (3,600)
Balance at end of period	12,668	16,155	13,196
Fair value of amortized MSRs at end of period	20,329	27,662	21,697
Impairment of MSRs recorded	$ 0	$ 0	$ 0

Allowance for Loan and Lease Losses - Credit Risk Profiles Based on Payment Activity, Not Subject to Loan Grading (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) factor	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Percentage of loans sold with no recourse not subject to grading	100.00%
Number of risk factors in internal loan rating system \| factor	8
Loans and leases	$ 13,211,650	$ 13,076,191	$ 12,277,369
Residential and consumer
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	6,282,731	6,102,122
Residential and consumer \| Performing
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	6,229,130	6,040,469
Residential and consumer \| Non-performing and delinquent
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	53,601	61,653
Residential
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	4,662,175	4,439,618	4,090,053
Residential \| Residential mortgage
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	3,768,936	3,527,101
Residential \| Residential mortgage \| Performing
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	3,759,799	3,519,172
Residential \| Residential mortgage \| Non-performing and delinquent
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	9,137	7,929
Home equity Line \| Home equity
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	893,239	912,517
Home equity Line \| Home equity \| Performing
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	886,879	903,284
Home equity Line \| Home equity \| Non-performing and delinquent
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	6,360	9,233
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	1,620,556	1,662,504	$ 1,586,476
Consumer \| Consumer loans
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	226,304	239,906
Consumer \| Consumer loans \| Performing
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	219,046	234,458
Consumer \| Consumer loans \| Non-performing and delinquent
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	7,258	5,448
Consumer \| Consumer - Auto
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	1,040,468	1,078,132
Consumer \| Consumer - Auto \| Performing
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	1,016,142	1,044,393
Consumer \| Consumer - Auto \| Non-performing and delinquent
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	24,326	33,739
Consumer \| Credit Cards
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	353,784	344,466
Consumer \| Credit Cards \| Performing
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	347,264	339,162
Consumer \| Credit Cards \| Non-performing and delinquent
Loans and Leases Receivable Disclosure [Line Items]
Loans and leases	$ 6,520	$ 5,304

Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2019

Regulatory Capital Requirements

Regulatory Capital Requirements

13. Regulatory Capital Requirements

Federal and state laws and regulations limit the amount of dividends the Company may declare or pay. The Company depends primarily on dividends from FHB as the source of funds for the Company’s payment of dividends.

The Company and the Bank are subject to various regulatory capital requirements imposed by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s operating activities and financial condition. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of its assets and certain off-balance-sheet items. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios of Common Equity Tier 1 (“CET1”) capital, Tier 1 capital and total capital to risk-weighted assets, as well as a minimum leverage ratio.

The following provides definitions for the regulatory risk-based capital ratios and leverage ratio, which are calculated as per standard regulatory guidance:

Risk-Weighted Assets — Assets are weighted for risk according to a formula used by the Federal Reserve to conform to capital adequacy guidelines. On- and off-balance sheet items are weighted for risk, with off-balance sheet items converted to balance sheet equivalents, using risk conversion factors, before being allocated a risk-adjusted weight. The off-balance sheet items comprise a minimal part of the overall calculation.

Common Equity Tier 1 Risk-Based Capital Ratio — The CET1 risk-based capital ratio is calculated as CET1 capital, divided by risk-weighted assets. CET1 is the sum of equity, adjusted for ineligible goodwill as well as certain other comprehensive income items as follows: net unrealized gains/losses on securities and derivatives, and net unrealized pension and other benefit losses.

Tier 1 Risk-Based Capital Ratio — The Tier 1 capital ratio is calculated as Tier 1 capital divided by risk-weighted assets.

Total Risk-Based Capital Ratio — The total risk-based capital ratio is calculated as the sum of Tier 1 capital and an allowable amount of the reserve for credit losses (limited to 1.25 percent of risk-weighted assets), divided by risk-weighted assets.

Tier 1 Leverage Ratio — The Tier 1 leverage ratio is calculated by dividing Tier 1 capital by adjusted quarterly average total assets.

The table below sets forth those ratios at December 31, 2019 and 2018:


					First Hawaiian				Minimum		Well-
	First Hawaiian, Inc.				Bank				Capital		Capitalized
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Ratio⁽¹⁾		Ratio⁽¹⁾
December 31, 2019:
Common equity tier 1 capital to risk-weighted assets	$	1,676,515	11.88	%	$	1,654,304	11.72	%	4.50	%	6.50	%
Tier 1 capital to risk-weighted assets		1,676,515	11.88	%		1,654,304	11.72	%	6.00	%	8.00	%
Total capital to risk-weighted assets		1,807,645	12.81	%		1,785,434	12.65	%	8.00	%	10.00	%
Tier 1 capital to average assets (leverage ratio)		1,676,515	8.79	%		1,654,304	8.67	%	4.00	%	5.00	%

December 31, 2018:
Common equity tier 1 capital to risk-weighted assets	$	1,661,542	11.97	%	$	1,658,172	11.94	%	4.50	%	6.50	%
Tier 1 capital to risk-weighted assets		1,661,542	11.97	%		1,658,172	11.94	%	6.00	%	8.00	%
Total capital to risk-weighted assets		1,803,860	12.99	%		1,800,490	12.97	%	8.00	%	10.00	%
Tier 1 capital to average assets (leverage ratio)		1,661,542	8.72	%		1,658,172	8.70	%	4.00	%	5.00	%

(1)	As defined by the regulations issued by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the FDIC.

A new capital conservation buffer, comprised of CET1 capital, was established above the regulatory minimum capital requirements. This capital conservation buffer was phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increased each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. As of December 31, 2019, under the bank regulatory capital guidelines, the Company and Bank were both classified as well-capitalized. Management is not aware of any conditions or events that have occurred since December 31, 2019, to change the capital adequacy category of the Company or the Bank.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1C
-URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958572-112826

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1D
-URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958573-112826

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958570-112826

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958569-112826

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1G
-URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958577-112826

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1F
-URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958575-112826

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1E
-URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958574-112826

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=117337116&loc=SL5958568-112826

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1H
-URI http://asc.fasb.org/extlink&oid=117337116&loc=d3e65071-112826

+ Details

Stock-Based Compensation - Restricted Stock and Restricted Share Awards (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock-based compensation
Period for recognition of unrecognized compensation expense	1 year 3 months 18 days
Restricted Stock
Number of Shares
Granted (in shares)	162,550	0	0
Vested (in shares)	(11,239)
Forfeited (in shares)	(11,593)
Unvested as of end of period (in shares)	139,718
Weighted Average Grant Date Fair Value
Granted (in dollars per share)	$ 27.06
Vested (in dollars per share)	27.37
Forfeited (in dollars per share)	27.04
Unvested as of end of period (in dollars per share)	$ 27.04
Stock-based compensation
Total fair value of vested shares (in dollars)	$ 0.3
Unrecognized compensation expense	$ 2.9

Other Assets - Federal Home Loan Bank Stock (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Federal Home Loan Bank Stock redemption notice period	5 years
Included in other assets
Investment in Federal Home Loan Bank stock	$ 34.1	$ 34.1

Premises and Equipment

12 Months Ended

Dec. 31, 2019

Premises and Equipment

Premises and Equipment

6. Premises and Equipment

At December 31, 2019 and 2018, premises and equipment were comprised of the following:


	December 31,
(dollars in thousands)	2019		2018
Buildings	$	289,271	$	280,853
Furniture and equipment		86,485		81,342
Land		106,487		105,302
Leasehold improvements		64,828		55,316
Total premises and equipment		547,071		522,813
Less: Accumulated depreciation and amortization		230,186		217,817
Net book value	$	316,885	$	304,996

Depreciation and amortization expenses included in occupancy and equipment expenses for 2019, 2018 and 2017 were as follows:


	Year Ended December 31,
(dollars in thousands)	2019		2018		2017
Occupancy	$	9,037	$	8,815	$	8,852
Equipment		5,485		6,488		6,426
Total	$	14,522	$	15,303	$	15,278

The Company, as a lessor, leases certain properties that it owns. See “Note 14. Leases” in the notes to the consolidated financial statements included in Item 8. Financial Statements and Supplementary Data for more information.

Loans and Leases - Components (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loans and leases
Loans and leases	$ 13,211,650	$ 13,076,191	$ 12,277,369
Outstanding loan balances, deferred loan costs and fees	41,000	36,300
Residential real estate loans pledged to collateralize the borrowing capacity at the FHLB	2,900,000	2,500,000
Consumer and commercial and industrial loans pledged to collateralize the borrowing capacity at the FRB	953,200	957,000
Commercial and Industrial
Loans and leases
Loans and leases	2,743,242	3,208,760	3,135,266
Commercial real estate
Loans and leases
Loans and leases	3,463,953	2,990,783	2,667,597
Commercial real estate \| Real estate
Loans and leases
Loans and leases	3,463,953	2,990,783
Construction
Loans and leases
Loans and leases	519,241	626,757	632,911
Construction \| Real estate
Loans and leases
Loans and leases	519,241	626,757
Residential
Loans and leases
Loans and leases	4,662,175	4,439,618	4,090,053
Real estate loans in the process of foreclosure	4,100	4,600
Residential \| Real estate
Loans and leases
Loans and leases	4,662,175	4,439,618
Consumer
Loans and leases
Loans and leases	1,620,556	1,662,504	1,586,476
Lease financing
Loans and leases
Loans and leases	202,483	147,769	$ 165,066
Residential mortgage \| Residential
Loans and leases
Loans and leases	3,768,936	3,527,101
Residential mortgage \| Residential \| Real estate
Loans and leases
Loans and leases	3,768,936	3,527,101
Home equity \| Home equity Line
Loans and leases
Loans and leases	893,239	912,517
Home equity \| Home equity Line \| Real estate
Loans and leases
Loans and leases	$ 893,239	$ 912,517

Leases - Third Party Leases, Cost and Accumulated Depreciation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Lease payments to related parties	$ 300
Future minimum rental payments under noncancelable leases
2020	8,776
2021	8,084
2022	5,453
2023	2,964
2024	2,721
Thereafter	32,227
Office space leased in headquarters office and to third party lessees
Cost	547,071	$ 522,813
Accumulated Depreciation	$ 230,186	217,817
Terms of such leases
Lessor, renewal options included	true
Future minimum rental income from related parties
2020	$ 6,164
2021	6,152
2022	4,431
2023	3,506
2024	2,680
Thereafter	6,511
Third party lessees
Office space leased in headquarters office and to third party lessees
Cost	$ 288,800	289,200
Terms of such leases
Lessor, Operating Lease, Renewal Term	10 years
Operating lease income related to lease payments
Operating lease income	$ 5,900
Lease income related to variable lease payments	5,300
Rental income paid by related parties	400
Future minimum rental income from related parties
2020	400
2021	400
2022	400
2023	400
2024	400
Thereafter	800
Buildings
Office space leased in headquarters office and to third party lessees
Cost	289,271	280,853
Accumulated Depreciation	141,300	$ 133,700
Related parties associated with its branch premises
Future minimum rental payments under noncancelable leases
2020	300
2021	300
2022	200
2023	200
2024	200
Thereafter	$ 7,300

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Stock-Based Compensation

Schedule of restricted stock activity


			Weighted
	Number		Average Grant
	of Shares		Date Fair Value
Unvested as of December 31, 2018	—	$	—
Granted	162,550		27.06
Vested	(11,239)		27.37
Forfeited	(11,593)		27.04
Unvested as of December 31, 2019	139,718	$	27.04

Schedule of PSU activity


			Weighted
	Number		Average Grant
	of Shares		Date Fair Value
Unvested as of December 31, 2016	321,612	$	29.11
Granted	244,218		30.44
Vested	(38,522)		24.41
Forfeited	(21,257)		33.20
Unvested as of December 31, 2017	506,051	$	30.82
Granted	277,197		22.39
Vested	(229,809)		32.17
Forfeited	(48,942)		30.52
Unvested as of December 31, 2018	504,497	$	25.93
Granted	310,696		27.04
Vested	(36,342)		24.51
Forfeited	(83,535)		26.37
Unvested as of December 31, 2019	695,316	$	26.46

Schedule of RSU activity


			Weighted
	Number		Average Grant
	of Shares		Date Fair Value
Unvested as of December 31, 2016	5,379	$	24.41
Granted	14,506		29.74
Vested	(8,379)		26.77
Forfeited	—		—
Unvested as of December 31, 2017	11,506	$	29.74
Granted	47,094		28.64
Vested	(9,839)		32.31
Forfeited	—		—
Unvested as of December 31, 2018	48,761	$	28.60
Granted	20,418		26.50
Vested	(22,452)		28.37
Forfeited	(1,944)		28.29
Unvested as of December 31, 2019	44,783	$	27.82

Other Assets (Tables)

12 Months Ended

Dec. 31, 2019

Other assets.

Schedule of carrying amount of goodwill reported in reporting units


	Retail		Commercial
(in thousands)	Banking		Banking		Total
December 31, 2019	$	687,492	$	308,000	$	995,492
December 31, 2018		687,492		308,000		995,492

Schedule of estimated future amortization expense for MSRs


	Estimated
(dollars in thousands)	Amortization
Year ending December 31:
2020	$	2,129
2021		1,808
2022		1,530
2023		1,295
2024		1,101

Schedule of details of the Company's MSRs


	December 31,
(dollars in thousands)	2019		2018
Gross carrying amount	$	63,480	$	63,342
Less: accumulated amortization		50,812		47,187
Net carrying value	$	12,668	$	16,155

Schedule of changes in amortized MSRs


	Year Ended December 31,
(dollars in thousands)	2019		2018
Balance at beginning of year	$	16,155	$	13,196
Originations		138		328
Purchases		—		6,444
Amortization		(3,625)		(3,813)
Balance at end of year	$	12,668	$	16,155
Fair value of amortized MSRs at beginning of year	$	27,662	$	21,697
Fair value of amortized MSRs at end of year	$	20,329	$	27,662
Balance of loans serviced for others	$	2,344,899	$	2,664,860

Schedule of quantitative assumptions used in determining lower of cost or fair value of MSRs


	December 31, 2019							December 31, 2018
						Weighted							Weighted
	Range					Average		Range					Average
Conditional prepayment rate	10.74	%	-	23.39	%	11.10	%	7.86	%	-	19.26	%	8.31	%
Life in years (of the MSR)	2.04		-	6.33		5.99		3.43		-	7.68		7.19
Weighted-average coupon rate	3.96	%	-	7.26	%	4.01	%	3.97	%	-	6.70	%	4.02	%
Discount rate	10.00	%	-	10.01	%	10.00	%	10.00	%	-	10.02	%	10.00	%

Stock-Based Compensation - Restricted Stock Units (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares
Stock-based compensation
Stock-based compensation expense \| $	$ 7.8	$ 6.9	$ 3.1
Period for recognition of unrecognized compensation expense	1 year 3 months 18 days
Restricted Stock Units
Stock-based compensation
Ratio of common stock for each vested award	1
Number of Shares
Unvested as of beginning of period (in shares) \| shares	48,761	11,506	5,379
Granted (in shares) \| shares	20,418	47,094	14,506
Vested (in shares) \| shares	(22,452)	(9,839)	(8,379)
Forfeited (in shares) \| shares	(1,944)
Unvested as of end of period (in shares) \| shares	44,783	48,761	11,506
Weighted Average Grant Date Fair Value
Unvested as of beginning of period (in dollars per share) \| $ / shares	$ 28.60	$ 29.74	$ 24.41
Granted (in dollars per share) \| $ / shares	26.50	28.64	29.74
Vested (in dollars per share) \| $ / shares	28.37	32.31	26.77
Forfeited (in dollars per share) \| $ / shares	28.29
Unvested as of end of period (in dollars per share) \| $ / shares	$ 27.82	$ 28.60	$ 29.74
Stock-based compensation
Total fair value of vested shares (in dollars) \| $	$ 0.6	$ 0.3	$ 0.2
Unrecognized compensation expense \| $	$ 0.9	$ 1.1	$ 0.2
Period for recognition of unrecognized compensation expense	1 year
Restricted Stock Units \| Directors
Number of Shares
Granted (in shares) \| shares	15,918	11,799	9,006
Weighted Average Grant Date Fair Value
Granted (in dollars per share) \| $ / shares	$ 26.38	$ 27.89	$ 30.19
Restricted Stock Units \| Employees
Number of Shares
Granted (in shares) \| shares	4,500	35,295	5,500
Weighted Average Grant Date Fair Value
Granted (in dollars per share) \| $ / shares	$ 26.92	$ 28.89	$ 28.97

Regulatory Capital Requirements - Capital Conservation Buffer (Details)	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018	Jan. 01, 2016
Regulatory Capital Requirements
Phased in rate (as a percent)				0.625%
Annual increase after initial year (as a percent)	0.625%
Capital requirements above regulatory rate (as a percent)		2.50%
Effective CET1 capital to risk-weighted assets (as a percent)	4.50%		4.50%
Effective Tier 1 capital to risk-weighted assets (as a percent)	11.88%		11.97%
Effective total capital to risk-weighted assets (as a percent)	12.81%		12.99%

Transactions with Affiliates and Related Parties (Tables)

12 Months Ended

Dec. 31, 2019

Transactions with Affiliates and Related Parties

Schedule of changes in loans to executive officers, directors and affiliates


	Year Ended December 31,
(dollars in thousands)	2019		2018		2017
Balance at beginning of year	$	66,088	$	61,603	$	94,466
New loans made		22,682		6,756		3,762
Repayments		(3,490)		(2,271)		(36,625)
Balance at end of year	$	85,280	$	66,088	$	61,603

Summary of transactions with related parties


	As of December 31,
(dollars in thousands)	2019		2018		2017
Cash and due from banks	$	—	$	55,454	$	41,874
Other assets		—		19,358		23,872
Noninterest-bearing demand deposits		—		(346)		(456)
Noninterest income from affiliates		382		5,677		4,908
Noninterest expense to affiliates		(4)		(59)		(47)

Leases - Net Lease Expense (Details) $ in Thousands	12 Months Ended
Leases - Net Lease Expense (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Net lease expense
Operating lease expense	$ 9,158
Short-term lease expense	487
Variable lease expense	2,152
Amortization of right-of-use assets	3
Interest on lease liabilities	2
Total finance lease expense	5
Less: Sublease income	(1,073)
Net lease expense	$ 10,729

Allowance for Loan and Lease Losses - Troubled Debt Restructuring Modifications (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) property contract	Dec. 31, 2018 USD ($) property contract	Dec. 31, 2017 USD ($) contract
Troubled debt restructuring modifications
Number of Contracts \| contract	3	4	3
Recorded Investment	$ 1,180	$ 1,244	$ 1,734
Related Allowance	25	39	$ 23
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit	6,100,000	5,800,000
Commitments related to borrowers who had loan terms modified in a TDR	$ 4,500	$ 1,800
Loans modified in TDRs that experienced a payment default
Period past due for payment default	30 days
Number of contracts \| contract	2		2
Recorded Investment	$ 571		$ 3,873
Number of residential mortgage loans collateralized by real estate property and modified in a TDR in the process of foreclosure \| contract	1	1
Residential mortgage loans collateralized by real estate property and modified in a TDR in the process of foreclosure	$ 300	$ 300
Commercial and Industrial
Troubled debt restructuring modifications
Number of Contracts \| contract	2	1	1
Recorded Investment	$ 571	$ 369	$ 1,075
Related Allowance	$ 25	$ 10
Loans modified in TDRs that experienced a payment default
Number of contracts \| contract	2		1
Recorded Investment	$ 571		$ 2,480
Commercial real estate
Loans modified in TDRs that experienced a payment default
Number of contracts \| contract			1
Recorded Investment			$ 1,393
Lease financing
Troubled debt restructuring modifications
Short-term forbearance period after which missed payments are added to end of lease term	3 months
Residential
Troubled debt restructuring modifications
Period of time monthly payments are lowered to accommodate borrowers' financial needs	2 years
Number of Contracts \| contract	1	3	2
Recorded Investment	$ 609	$ 875	$ 659
Related Allowance		$ 29	$ 23
Residential \| Real estate property held from foreclosed TDR
Loans modified in TDRs that experienced a payment default
Number of real estate properties \| property	2	1
Real estate property held from a foreclosed TDR	$ 300	$ 800
Consumer \| Minimum
Troubled debt restructuring modifications
Threshold period past due for charge-off	120 days
Consumer \| Maximum
Troubled debt restructuring modifications
Threshold period past due for charge-off	180 days
Home equity line \| Real estate property held from foreclosed TDR
Loans modified in TDRs that experienced a payment default
Number of real estate properties \| property	1
Commitments to extend credit
Troubled debt restructuring modifications
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit	$ 5,907,690	5,549,591
Standby letters of credit
Troubled debt restructuring modifications
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit	181,412	204,324
Commercial Letters of credit
Troubled debt restructuring modifications
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit	$ 7,334	$ 7,535

Fair Value - Unfunded Loan and Lease Commitments and Letters of Credit (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Unfunded loan and lease commitments and letters of credit
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit	$ 6,100.0	$ 5,800.0
Level 3
Unfunded loan and lease commitments and letters of credit
Estimated fair value of unfunded loan and lease commitments and letters of credit	$ 14.4	$ 14.2

Revenue from Contracts with Customers - Contract Balances (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) item	Dec. 31, 2018 USD ($)
Revenue from Contracts with Customers
Signing bonuses received from vendors \| item	2
Contract liabilities	$ 1.8	$ 2.6
Decrease in recognized revenues and contract liabilities	0.8	0.8
Change in contract liabilities due to changes in transaction price estimates	0.0
Receivables from contracts with customers or contract assets	$ 0.0	$ 0.0

Fair Value - Visa Derivative (Details) - Funding Swap (Visa Derivative) $ in Thousands	Dec. 31, 2019 USD ($)	Sep. 27, 2019	Dec. 31, 2018 USD ($)	Jun. 28, 2018	Dec. 31, 2017
Class B restricted shares
Fair value
Conversion rate		1.6228		1.6298	1.6483
Included in other liabilities \| Derivatives Not Designated as Hedging Instruments
Fair value
Derivative Liability	$ 4,233		$ 2,607

Regulatory Capital Requirements (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Regulatory capital requirements
Limit on allowable reserve for credit losses for total risk-based capital ratio as a percentage of risk-weighted assets	1.25%
Common equity tier 1 capital to risk-weighted assets
Amount	$ 1,676,515	$ 1,661,542
Ratio (as a percent)	11.88%	11.97%
Minimum Capital Ratio (as a percent)	4.50%	4.50%
Well-Capitalized Ratio (as a percent)	6.50%	6.50%
Tier 1 capital to risk-weighted assets
Amount	$ 1,676,515	$ 1,661,542
Ratio (as a percent)	11.88%	11.97%
Minimum Capital Ratio (as a percent)	6.00%	6.00%
Well-Capitalized Ratio (percent)	8.00%	8.00%
Total capital to risk-weighted assets
Amount	$ 1,807,645	$ 1,803,860
Ratio (as a percent)	12.81%	12.99%
Minimum Capital Ratio (as a percent)	8.00%	8.00%
Well-Capitalized Ratio (as a percent)	10.00%	10.00%
Tier 1 capital to average assets (leverage ratio)
Amount	$ 1,676,515	$ 1,661,542
Ratio	8.79%	8.72%
Minimum Capital Ratio (as a percent)	4.00%	4.00%
Well-Capitalized Ratio (percent)	5.00%	5.00%
First Hawaiian Bank (FHB)
Common equity tier 1 capital to risk-weighted assets
Amount	$ 1,654,304	$ 1,658,172
Ratio (as a percent)	11.72%	11.94%
Tier 1 capital to risk-weighted assets
Amount	$ 1,654,304	$ 1,658,172
Ratio (as a percent)	11.72%	11.94%
Total capital to risk-weighted assets
Amount	$ 1,785,434	$ 1,800,490
Ratio (as a percent)	12.65%	12.97%
Tier 1 capital to average assets (leverage ratio)
Amount	$ 1,654,304	$ 1,658,172
Ratio	8.67%	8.70%

Accumulated Other Comprehensive Income (Loss) - Changes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pre-tax Amount
Balance	$ (180,915)	$ (159,423)	$ (145,472)
Other comprehensive income (loss)	137,465	(21,492)	(13,951)
Balance	(43,450)	(180,915)	(159,423)
Income Tax Benefit (Expense)
Balance	48,720	63,040	57,461
Other comprehensive income (loss)	(37,019)	5,748	5,579
Balance	11,701	48,720	63,040
Net of tax
Balance, beginning	2,524,839	2,532,551	2,476,485
Other comprehensive income (loss)	100,446	(15,744)	(8,372)
Balance, ending	2,640,258	2,524,839	2,532,551
Accumulated other comprehensive Income (loss)
Net of tax
Balance, beginning	(132,195)	(96,383)	(88,011)
Other comprehensive income (loss)	100,446	(15,744)	(8,372)
Balance, ending	(31,749)	(132,195)	(96,383)
Accumulated other comprehensive Income (loss) \| Early Adoption \| ASU 2018-02
Income Tax Benefit (Expense)
Early adoption of ASU No. 2018-02		(20,068)
Net of tax
Other comprehensive income (loss)	(20,068)
Pension and other benefits, net actuarial losses arising during the year
Pre-tax Amount
Unrealized net (losses) gains arising during the year	(5,774)	(2,835)	(1,104)
Reclassification of net losses (gains) to net income	6,610	7,315	8,625
Income Tax Benefit (Expense)
Unrealized net gains (losses) arising during the year	1,555	763	436
Reclassification of net losses (gains) to net income	(1,780)	(1,970)	(3,407)
Net of tax
Unrealized net gains (losses) arising during the year	(4,219)	(2,072)	(668)
Reclassification of net losses (gains) to net income	4,830	5,345	5,218
Pension and other benefits, prior service credit
Pre-tax Amount
Unrealized net (losses) gains arising during the year	(429)
Reclassification of net losses (gains) to net income		(429)	(429)
Income Tax Benefit (Expense)
Unrealized net gains (losses) arising during the year	115
Reclassification of net losses (gains) to net income		116	170
Net of tax
Unrealized net gains (losses) arising during the year	(314)
Reclassification of net losses (gains) to net income		(313)	(259)
Pension and other benefits, net change in pension and other benefits
Pre-tax Amount
Other comprehensive income (loss)	407	4,051	7,092
Income Tax Benefit (Expense)
Other comprehensive income (loss)	(110)	(1,091)	(2,801)
Net of tax
Balance, beginning	(28,379)	(25,946)	(30,237)
Other comprehensive income (loss)	297	2,960	4,291
Balance, ending	(28,082)	(28,379)	(25,946)
Pension and other benefits, net change in pension and other benefits \| Early Adoption \| ASU 2018-02
Net of tax
Other comprehensive income (loss)	(5,393)
Investment securities:
Pre-tax Amount
Unrealized net (losses) gains arising during the year	134,343	(43,545)	(23,516)
Other comprehensive income (loss)	137,058	(19,460)	(23,516)
Income Tax Benefit (Expense)
Unrealized net gains (losses) arising during the year	(36,178)	11,686	9,357
Other comprehensive income (loss)	(36,909)	5,201	9,357
Net of tax
Balance, beginning	(103,816)	(74,117)	(59,958)
Unrealized net gains (losses) arising during the year	98,165	(31,859)	(14,159)
Other comprehensive income (loss)	100,149	(14,259)	(14,159)
Balance, ending	(3,667)	(103,816)	(74,117)
Investment securities: \| Early Adoption \| ASU 2018-02
Net of tax
Other comprehensive income (loss)	(15,440)
Investment securities, OTTI losses on AFS debt securities, net
Pre-tax Amount
Reclassification of net losses (gains) to net income	2,715	24,085
Income Tax Benefit (Expense)
Reclassification of net losses (gains) to net income	731	(6,485)
Net of tax
Reclassification of net losses (gains) to net income	1,984	17,600
Cash flow derivative hedges:
Pre-tax Amount
Unrealized net (losses) gains arising during the year		1,475	2,473
Reclassification of net losses (gains) to net income		(7,558)
Other comprehensive income (loss)		(6,083)	2,473
Income Tax Benefit (Expense)
Unrealized net gains (losses) arising during the year		(397)	(977)
Reclassification of net losses (gains) to net income		(2,035)
Other comprehensive income (loss)		1,638	(977)
Net of tax
Balance, beginning		3,680	2,184
Unrealized net gains (losses) arising during the year		1,078	1,496
Reclassification of net losses (gains) to net income		(5,523)
Other comprehensive income (loss)		$ (4,445)	1,496
Balance, ending			$ 3,680
Cash flow derivative hedges: \| Early Adoption \| ASU 2018-02
Net of tax
Other comprehensive income (loss)	$ 765

Deposits (Tables)

12 Months Ended

Dec. 31, 2019

Deposits

Schedule of deposits by category


(dollars in thousands)	2019		2018
U.S.:
Interest-bearing	$	9,782,957	$	10,393,449
Noninterest-bearing		5,188,696		5,368,729
Foreign:
Interest-bearing		781,965		748,678
Noninterest-bearing		691,376		639,212
Total deposits	$	16,444,994	$	17,150,068

Schedule of maturity distribution of time certificates of deposit

The following table presents the maturity distribution of time certificates of deposit as of December 31, 2019:


	Under		$250,000
(dollars in thousands)	$250,000		or More		Total
Three months or less	$	260,198	$	772,794	$	1,032,992
Over three through six months		215,191		242,008		457,199
Over six through twelve months		321,555		215,211		536,766
2021		98,344		55,118		153,462
2022		128,845		59,185		188,030
2023		59,069		12,167		71,236
2024		59,547		10,893		70,440
Thereafter		32		—		32
Total	$	1,142,781	$	1,367,376	$	2,510,157

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2019	Feb. 20, 2020	Jun. 28, 2019
Document and Entity Information
Entity Registrant Name	FIRST HAWAIIAN, INC.
Entity Central Index Key	0000036377
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2019
Entity File Number	001-14585
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	99-0156159
Entity Address, Address Line One	999 Bishop Street, 29th Floor
Entity Address, City or Town	Honolulu
Entity Address, State or Province	HI
Entity Address, Postal Zip Code	96813
City Area Code	808
Local Phone Number	525-7000
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	FHB
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 3.5
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		130,350,725
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY

Reportable Operating Segments

12 Months Ended

Dec. 31, 2019

Reportable Operating Segments

Reportable Operating Segments

23. Reportable Operating Segments

The Company’s operations are organized into three business segments – Retail Banking, Commercial Banking and Treasury and Other. These segments reflect how discrete financial information is currently evaluated by the chief operating decision maker and how performance is assessed and resources allocated. The Company’s internal management process measures the performance of these business segments. This process, which is not necessarily comparable with similar information for any other financial institution, uses various techniques to assign balance sheet and income statement amounts to the business segments, including allocations of income, expense, the provision for loan and lease losses and capital. This process is dynamic and requires certain allocations based on judgment and other subjective factors. Unlike financial accounting, there is no comprehensive authoritative guidance for management accounting that is equivalent to GAAP.

The net interest income of the business segments reflects the results of a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics and reflects the allocation of net interest income related to the Company’s overall asset and liability management activities on a proportionate basis. The basis for the allocation of net interest income is a function of the Company’s assumptions that are subject to change based on changes in current interest rates and market conditions. Funds transfer pricing also serves to transfer interest rate risk to Treasury.

The Company allocates the provision for loan and lease losses to each segment based on management’s estimate of the inherent loss content in each of the specific loan and lease portfolios. Noninterest income and expense includes allocations from support units to the business segments. These allocations are based on actual usage where practicably calculated or by management’s estimate of such usage.

In 2019, the Company made changes to the internal measurement of segment operating profits for the purpose of evaluating segment performance and resource allocation. The primary reason for the change was to align deposit balances within the business segment that directly manages them. Specifically, certain deposit balances previously included as part of the Retail Banking segment have been reclassified to the Commercial Banking segment. The reallocation of select deposit balances affected net interest income, net interest income after provision for loan and lease losses, noninterest income, provision for income taxes and net income. The Company has reported its selected financial information using the new deposit balance alignments for the year ended December 31, 2019. The Company has restated the selected financial information for the years ended December 31, 2018 and 2017 in order to conform with the current presentation.

Additionally, during the fourth quarter of 2019 the Company changed its assumptions embedded in allocating deposit costs to the business segments. The Company has reported its selected financial information using the new deposit cost assumptions starting with the fourth quarter of 2019.

Business Segments

Retail Banking

Retail Banking offers a broad range of financial products and services to consumers and small businesses. Loan and lease products offered include residential and commercial mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans and small business loans and leases. Deposit products offered include checking, savings and time deposit accounts. Retail Banking also offers wealth management services. Products and services from Retail Banking are delivered to customers through 58 banking locations throughout the State of Hawaii, Guam and Saipan.

Commercial Banking

Commercial Banking offers products that include corporate banking, residential and commercial real estate loans, commercial lease financing, automobile loans and auto dealer financing, business deposit products and credit cards. Commercial lending and deposit products are offered primarily to middle-market and large companies locally, nationally and internationally.

Treasury and Other

Treasury consists of corporate asset and liability management activities including interest rate risk management. The segment’s assets and liabilities (and related interest income and expense) consist of interest-bearing deposits, investment securities, federal funds sold and purchased, government deposits, short- and long-term borrowings and bank-owned properties. The primary sources of noninterest income are from bank-owned life insurance, net gains from the sale of investment securities, foreign exchange income related to customer-driven currency requests from merchants and island visitors and management of bank-owned properties. The net residual effect of the transfer pricing of assets and liabilities is included in Treasury, along with the elimination of intercompany transactions.

Other organizational units (Technology, Operations, Credit and Risk Management, Human Resources, Finance, Administration, Marketing and Corporate and Regulatory Administration) provide a wide-range of support to the Company’s other income earning segments. Expenses incurred by these support units are charged to the business segments through an internal cost allocation process.

The following tables present selected business segment financial information for the years indicated:

Treasury

Retail

Commercial

and

(dollars in thousands)

Banking

Other

Total

Year Ended December 31, 2019

Net interest income

413,029

141,227

19,146

573,402

Provision for loan and lease losses

(6,248)

(7,552)

—

(13,800)

Net interest income after provision for loan and lease losses

406,781

133,675

19,146

559,602

Noninterest income

95,413

73,635

23,485

192,533

Noninterest expense

(228,389)

(82,380)

(59,668)

(370,437)

Income (loss) before (provision) benefit for income taxes

273,805

124,930

(17,037)

381,698

(Provision) benefit for income taxes

(69,285)

(32,298)

4,277

(97,306)

Net income (loss)

204,520

92,632

(12,760)

284,392

Total assets as of December 31, 2019

7,276,047

6,071,356

6,819,331

20,166,734


					Treasury
	Retail		Commercial		and
(dollars in thousands)	Banking		Banking		Other ⁽¹⁾		Total
Year Ended December 31, 2018
Net interest income	$	420,165	$	140,333	$	5,820	$	566,318
Provision for loan and lease losses		(8,753)		(13,427)		—		(22,180)
Net interest income after provision for loan and lease losses		411,412		126,906		5,820		544,138

Noninterest income		89,669		80,904		8,420		178,993
Noninterest expense		(225,881)		(80,766)		(58,306)		(364,953)
Income (loss) before (provision) benefit for income taxes		275,200		127,044		(44,066)		358,178

(Provision) benefit for income taxes		(70,335)		(32,700)		9,251		(93,784)
Net income (loss)	$	204,865	$	94,344	$	(34,815)	$	264,394
Total assets as of December 31, 2018	$	7,078,016	$	6,346,541	$	7,271,121	$	20,695,678

⁽¹⁾ Includes $24.1 million in OTTI write-downs.


					Treasury
	Retail		Commercial		and
(dollars in thousands)	Banking		Banking		Other ⁽¹⁾		Total
Year Ended December 31, 2017
Net interest income (expense)	$	409,796	$	131,692	$	(12,684)	$	528,804
Provision for loan and lease losses		(6,837)		(11,663)		—		(18,500)
Net interest income (expense) after provision for loan and lease losses		402,959		120,029		(12,684)		510,304

Noninterest income		89,372		75,566		40,667		205,605
Noninterest expense		(223,652)		(68,167)		(55,735)		(347,554)
Income (loss) before (provision) benefit for income taxes		268,679		127,428		(27,752)		368,355

(Provision) benefit for income taxes		(130,130)		(57,857)		3,314		(184,673)
Net income (loss)	$	138,549	$	69,571	$	(24,438)	$	183,682
Total assets as of December 31, 2017	$	7,003,724	$	5,462,370	$	8,083,367	$	20,549,461

⁽¹⁾ Includes $6.9 million gains on the sale of real estate.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2019

Accumulated Other Comprehensive Income (Loss) [Abstract]

Accumulated Other Comprehensive Income (Loss).

12. Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) is defined as the revenues, expenses, gains and losses that are included in comprehensive income, but excluded from net income. The Company’s significant items of accumulated other comprehensive income (loss) are pension and other benefits, investment securities and cash flow derivative hedges. Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2019, 2018 and 2017 are presented below:


			Income
			Tax
	Pre-tax		Benefit		Net of
(dollars in thousands)	Amount		(Expense)		Tax
Accumulated other comprehensive loss at December 31, 2018	$	(180,915)	$	48,720	$	(132,195)
Year ended December 31, 2019
Pension and other benefits:
Net actuarial losses arising during the year		(5,774)		1,555		(4,219)
Prior service credit		(429)		115		(314)
Amortization of net loss included in net income		6,610		(1,780)		4,830
Net change in pension and other benefits		407		(110)		297
Investment securities:
Unrealized net gains arising during the year		134,343		(36,178)		98,165
Reclassification of net losses to net income:
Investment securities losses, net		2,715		(731)		1,984
Net change in investment securities		137,058		(36,909)		100,149
Other comprehensive income		137,465		(37,019)		100,446
Accumulated other comprehensive loss at December 31, 2019	$	(43,450)	$	11,701	$	(31,749)


			Income
			Tax
	Pre-tax		Benefit		Net of
(dollars in thousands)	Amount		(Expense)		Tax
Accumulated other comprehensive loss at December 31, 2017	$	(159,423)	$	63,040	$	(96,383)
Year ended December 31, 2018
Early adoption of ASU No. 2018-02		—		(20,068)		(20,068)
Pension and other benefits:
Net actuarial losses arising during the year		(2,835)		763		(2,072)
Prior service credit		(429)		116		(313)
Amortization of net loss included in net income		7,315		(1,970)		5,345
Net change in pension and other benefits		4,051		(1,091)		2,960
Investment securities:
Unrealized net losses arising during the year		(43,545)		11,686		(31,859)
Reclassification of net gains to net income:
OTTI losses on available-for-sale debt securities, net		24,085		(6,485)		17,600
Net change in investment securities		(19,460)		5,201		(14,259)
Cash flow derivative hedges:
Unrealized net gains on cash flow derivative hedges arising during the year		1,475		(397)		1,078
Reclassification of net gains to net income:
Other noninterest expense		(7,558)		2,035		(5,523)
Net change in cash flow derivative hedges		(6,083)		1,638		(4,445)
Other comprehensive loss		(21,492)		5,748		(15,744)
Accumulated other comprehensive loss at December 31, 2018	$	(180,915)	$	48,720	$	(132,195)


			Income
			Tax
	Pre-tax		Benefit		Net of
(dollars in thousands)	Amount		(Expense)		Tax
Accumulated other comprehensive loss at December 31, 2016	$	(145,472)	$	57,461	$	(88,011)
Year ended December 31, 2017
Pension and other benefits:
Net actuarial losses arising during the year		(1,104)		436		(668)
Prior service credit		(429)		170		(259)
Amortization of net loss included in net income		8,625		(3,407)		5,218
Net change in pension and other benefits		7,092		(2,801)		4,291
Investment securities:
Unrealized net losses arising during the year		(23,516)		9,357		(14,159)
Net change in investment securities		(23,516)		9,357		(14,159)
Cash flow derivative hedges:
Unrealized net gains on cash flow derivative hedges arising during the year		2,473		(977)		1,496
Net change in cash flow derivative hedges		2,473		(977)		1,496
Other comprehensive loss		(13,951)		5,579		(8,372)
Accumulated other comprehensive loss at December 31, 2017	$	(159,423)	$	63,040	$	(96,383)

The following table summarizes changes in accumulated other comprehensive loss, net of tax, for the years indicated:



	Pensions						Accumulated
	and				Cash Flow		Other
	Other		Investment		Derivative		Comprehensive
(dollars in thousands)	Benefits		Securities		Hedges		Income (Loss)
Year Ended December 31, 2019
Balance at beginning of year	$	(28,379)	$	(103,816)	$	—	$	(132,195)
Other comprehensive income		297		100,149		—		100,446
Balance at end of year	$	(28,082)	$	(3,667)	$	—	$	(31,749)

Year Ended December 31, 2018
Balance at beginning of year	$	(25,946)	$	(74,117)	$	3,680	$	(96,383)
Early adoption of ASU No. 2018-02		(5,393)		(15,440)		765		(20,068)
Other comprehensive income (loss)		2,960		(14,259)		(4,445)		(15,744)
Balance at end of year	$	(28,379)	$	(103,816)	$	—	$	(132,195)

Year Ended December 31, 2017
Balance at beginning of year	$	(30,237)	$	(59,958)	$	2,184	$	(88,011)
Other comprehensive income (loss)		4,291		(14,159)		1,496		(8,372)
Balance at end of year	$	(25,946)	$	(74,117)	$	3,680	$	(96,383)

As of December 31, 2019, there was no non-credit OTTI loss on securities available for sale. An OTTI loss on available-for-sale debt securities of $24.1 million was recorded due to the Company’s intent to sell as of December 31, 2018.

Derivative Financial Instruments - Free-Standing (Details) $ in Thousands	12 Months Ended				96 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 shares	Dec. 31, 2015 shares	Oct. 31, 2019 USD ($)	Sep. 27, 2019	Jul. 31, 2018 USD ($)	Jun. 28, 2018
Visa \| Class B restricted shares
Derivative financial instruments
Estimated liability that was subsequently paid to the buyer						$ 300
Number of shares sold \| shares				274,000	0
Other noninterest income \| Visa
Derivative financial instruments
Loss related to a revaluation adjustment to increase the fair value	$ 4,500
Interest rate swaps \| Customer swap program
Derivative financial instruments
Notional Amount	2,800,000
Funding Swap (Visa Derivative) \| Class B restricted shares
Derivative financial instruments
Conversion rate			1.6483				1.6228		1.6298
Funding Swap (Visa Derivative) \| Visa
Derivative financial instruments
Conversion rate			1.6483				1.6228		1.6298
Estimated liability that was subsequently paid to the buyer								$ 700
Funding Swap (Visa Derivative) \| Included in other liabilities
Derivative financial instruments
Derivative liability value	4,200	$ 2,600
Derivatives Not Designated as Hedging Instruments \| Interest rate swaps
Derivative financial instruments
Notional Amount	2,818,803	2,269,247
Net interest expense on derivative	$ 0	$ 500	$ 900
Derivatives Not Designated as Hedging Instruments \| Interest rate swaps \| Minimum
Derivative financial instruments
Fixed interest rate (as a percent)	1.71%	2.02%
Derivatives Not Designated as Hedging Instruments \| Interest rate swaps \| Maximum
Derivative financial instruments
Fixed interest rate (as a percent)	8.73%	5.78%
Derivatives Not Designated as Hedging Instruments \| Interest rate swaps \| Customer swap program
Derivative financial instruments
Notional Amount		$ 2,200,000
Positive fair value, derivative asset		12,300
Negative fair value, derivative liability		12,000
Derivative asset value	$ 63,500	12,300
Derivative liability value	0	11,200
Derivatives Not Designated as Hedging Instruments \| Interest rate swaps \| Customer swap program \| Maximum
Derivative financial instruments
Positive fair value, derivative asset	63,500
Negative fair value, derivative liability
Derivatives Not Designated as Hedging Instruments \| Interest rate swaps \| Customer swap program \| Other noninterest income
Derivative financial instruments
Upfront fees on the dealer swap	4,500	7,300	$ 6,700
Derivatives Not Designated as Hedging Instruments \| Interest rate swaps \| Included in other assets
Derivative financial instruments
Positive fair value, derivative asset	63,527	12,305
Derivatives Not Designated as Hedging Instruments \| Interest rate swaps \| Included in other liabilities
Derivative financial instruments
Negative fair value, derivative liability		12,007
Derivatives Not Designated as Hedging Instruments \| Funding Swap (Visa Derivative)
Derivative financial instruments
Notional Amount	82,900	62,039
Derivatives Not Designated as Hedging Instruments \| Funding Swap (Visa Derivative) \| Included in other liabilities
Derivative financial instruments
Negative fair value, derivative liability	$ 4,233	$ 2,607

Derivative Financial Instruments - Notional Amounts and Fair Values (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Derivatives designated as hedging instruments \| Interest rate swaps
Notional amounts and fair values of derivatives
Notional Amount	$ 23,190	$ 41,317
Derivatives designated as hedging instruments \| Interest rate swaps \| Included in other assets
Notional amounts and fair values of derivatives
Asset Derivatives		31
Derivatives designated as hedging instruments \| Interest rate swaps \| Included in other liabilities
Notional amounts and fair values of derivatives
Liability Derivatives	(682)	(44)
Derivatives Not Designated as Hedging Instruments \| Interest rate swaps
Notional amounts and fair values of derivatives
Notional Amount	2,818,803	2,269,247
Derivatives Not Designated as Hedging Instruments \| Interest rate swaps \| Included in other assets
Notional amounts and fair values of derivatives
Asset Derivatives	63,527	12,305
Derivatives Not Designated as Hedging Instruments \| Interest rate swaps \| Included in other liabilities
Notional amounts and fair values of derivatives
Liability Derivatives		(12,007)
Derivatives Not Designated as Hedging Instruments \| Funding Swap (Visa Derivative)
Notional amounts and fair values of derivatives
Notional Amount	82,900	62,039
Derivatives Not Designated as Hedging Instruments \| Funding Swap (Visa Derivative) \| Included in other liabilities
Notional amounts and fair values of derivatives
Liability Derivatives	(4,233)	(2,607)
Derivatives Not Designated as Hedging Instruments \| Foreign exchange contracts
Notional amounts and fair values of derivatives
Notional Amount	1,428	1,191
Derivatives Not Designated as Hedging Instruments \| Foreign exchange contracts \| Included in other assets
Notional amounts and fair values of derivatives
Asset Derivatives	$ 12
Derivatives Not Designated as Hedging Instruments \| Foreign exchange contracts \| Included in other liabilities
Notional amounts and fair values of derivatives
Liability Derivatives		$ (34)

Benefit Plans - Plan Assets Allocation (Details) - Pension Benefits	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Benefit plans
Asset Allocation (as a percent)	100.00%	100.00%
Equity securities
Benefit plans
Asset Allocation (as a percent)	31.00%	29.00%
Target Allocation (as a percent)	30.00%
FHI stock
Benefit plans
Asset Allocation (as a percent)	0.00%	0.00%
BNP Paribas stock
Benefit plans
Asset Allocation (as a percent)	0.00%	0.00%
Debt securities
Benefit plans
Asset Allocation (as a percent)	66.00%	69.00%
Target Allocation (as a percent)	68.00%
Other securities
Benefit plans
Asset Allocation (as a percent)	3.00%	2.00%
Target Allocation (as a percent)	2.00%
Qualified Plan (ERP)
Benefit plans
Expected long term return on plan assets (as a percent)	4.75%	4.75%	4.75%

Loans and Leases - Remaining commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Loans and leases
Loan and lease commitments	$ 5,907,690	$ 5,549,591
Commercial and Industrial
Loans and leases
Loan and lease commitments	2,451,362	2,484,857
Commercial real estate \| Real estate
Loans and leases
Loan and lease commitments	130,597	114,186
Construction \| Real estate
Loans and leases
Loan and lease commitments	718,121	526,938
Residential \| Real estate
Loans and leases
Loan and lease commitments	1,053,581	913,757
Consumer
Loans and leases
Loan and lease commitments	1,554,029	1,509,853
Residential mortgage \| Residential \| Real estate
Loans and leases
Loan and lease commitments	842	121
Home equity \| Home equity Line \| Real estate
Loans and leases
Loan and lease commitments	$ 1,052,739	$ 913,636

Accumulated Other Comprehensive Income (Loss) - Changes, Net of Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net of tax
Balance, beginning	$ 2,524,839	$ 2,532,551	$ 2,476,485
Net income	284,392	264,394	183,682
Other comprehensive income (loss)	100,446	(15,744)	(8,372)
Balance, ending	2,640,258	2,524,839	2,532,551
Non-credit other-than-temporary impairment losses on securities available for sale	0
Accumulated other comprehensive Income (loss)
Net of tax
Balance, beginning	(132,195)	(96,383)	(88,011)
Other comprehensive income (loss)	100,446	(15,744)	(8,372)
Balance, ending	(31,749)	(132,195)	(96,383)
Accumulated other comprehensive Income (loss) \| ASU 2018-02 \| Early Adoption
Net of tax
Other comprehensive income (loss)	(20,068)
Pension and other benefits, net change in pension and other benefits
Net of tax
Balance, beginning	(28,379)	(25,946)	(30,237)
Other comprehensive income (loss)	297	2,960	4,291
Balance, ending	(28,082)	(28,379)	(25,946)
Pension and other benefits, net change in pension and other benefits \| ASU 2018-02 \| Early Adoption
Net of tax
Other comprehensive income (loss)	(5,393)
Investment securities:
Net of tax
Balance, beginning	(103,816)	(74,117)	(59,958)
Other comprehensive income (loss)	100,149	(14,259)	(14,159)
Balance, ending	(3,667)	(103,816)	(74,117)
Investment securities: \| ASU 2018-02 \| Early Adoption
Net of tax
Other comprehensive income (loss)	(15,440)
Investment securities, OTTI losses on AFS debt securities, net
Net of tax
Reclassification of net losses (gains) to net income	2,715	24,085
Cash flow derivative hedges:
Net of tax
Balance, beginning		3,680	2,184
Other comprehensive income (loss)		(4,445)	1,496
Balance, ending			$ 3,680
Reclassification of net losses (gains) to net income		$ (7,558)
Cash flow derivative hedges: \| ASU 2018-02 \| Early Adoption
Net of tax
Other comprehensive income (loss)	$ 765

Commitments and Contingent Liabilities - Commitments to Extend Credit, Participations Sold (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Commitments to extend credit
Commitments
Participations sold to other institutions	$ 94.1	$ 92.3
Standby letters of credit
Commitments
Participations sold to other institutions	$ 9.0	$ 17.3

Benefit Plans - Changes to Benefit Obligations and Fair Value of Plan Assets and Funded Status (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Funded status and amounts recognized in balance sheets
Pension liabilities for underfunded plans				$ (138,222)	$ (127,909)
Pension Benefits
Changes to PBO or APBO
Benefit obligation at beginning of year	$ 199,072	$ 212,981
Service cost	14	696
Interest cost	8,261	7,362
Actuarial loss (gain)	22,573	(6,619)
Curtailment gain	(1,061)
Benefit payments	(15,574)	(15,348)
Benefit obligation at end of year	213,285	199,072	$ 212,981
Changes to fair value of plan assets
Fair value of plan assets at beginning of year	99,581	114,220
Actual return on plan assets	20,863	(6,936)
Benefit payments from trust	(7,785)	(7,703)
Fair value of plan assets at end of year	112,659	99,581	114,220
Funded status and amounts recognized in balance sheets
Pension assets for overfunded plans				16,291	8,702
Pension liabilities for underfunded plans				(116,917)	(108,193)
Funded status				(100,626)	(99,491)
PBO, ABO and fair value of plan assets
Projected benefit obligation	199,072	199,072	212,981	213,285	199,072
Accumulated benefit obligation				213,202	197,236
Fair value of plan assets	99,581	99,581	114,220	112,659	99,581
Overfunded (underfunded) portion of PBO/ABO				(100,626)	(99,491)
Pension Benefits \| Funded Plan
Changes to PBO or APBO
Benefit obligation at beginning of year	90,879
Interest cost	3,808	3,420	3,922
Benefit obligation at end of year	96,368	90,879
Changes to fair value of plan assets
Fair value of plan assets at beginning of year	99,581
Fair value of plan assets at end of year	112,659	99,581
PBO, ABO and fair value of plan assets
Projected benefit obligation	96,368	90,879		96,368	90,879
Accumulated benefit obligation				96,368	90,879
Fair value of plan assets	112,659	99,581		112,659	99,581
Overfunded (underfunded) portion of PBO/ABO				16,291	8,702
Pension Benefits \| Unfunded Plan
Changes to PBO or APBO
Benefit obligation at beginning of year	108,193
Benefit obligation at end of year	116,917	108,193
PBO, ABO and fair value of plan assets
Projected benefit obligation	116,917	108,193		116,917	108,193
Accumulated benefit obligation				116,834	106,357
Overfunded (underfunded) portion of PBO/ABO				(116,917)	(108,193)
Other Benefits
Changes to PBO or APBO
Benefit obligation at beginning of year	19,716	21,449
Service cost	710	750
Interest cost	808	739
Actuarial loss (gain)	540	(2,755)
Benefit payments	(469)	(467)
Benefit obligation at end of year	21,305	19,716	21,449
Funded status and amounts recognized in balance sheets
Pension liabilities for underfunded plans				(21,305)	(19,716)
Funded status				(21,305)	(19,716)
PBO, ABO and fair value of plan assets
Projected benefit obligation	$ 19,716	$ 19,716	$ 21,449	$ 21,305	$ 19,716

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Statements of Comprehensive Income
Net income	$ 284,392	$ 264,394	$ 183,682
Other comprehensive income (loss), net of tax:
Net change in pensions and other benefits	297	2,960	4,291
Net change in investment securities	100,149	(14,259)	(14,159)
Net change in cash flow derivative hedges		(4,445)	1,496
Other comprehensive income (loss)	100,446	(15,744)	(8,372)
Total comprehensive income	$ 384,838	$ 248,650	$ 175,310

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Benefit Plans - Assumptions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Postretirement healthcare benefits
Assumed healthcare cost trend rates (reaches ultimate trend rate in 2026)
Healthcare cost trend rate assumed for next year (as a percent)	6.50%	7.00%	7.00%
Rate to which the cost trend is assumed to decline (the ultimate trend rate) (as a percent)	5.00%	5.00%	5.00%
Pre-tax effect of a one percentage point change in the assumed healthcare cost trend rates
Effect on 2019 total of service and interest cost components, One Percentage Point Increase	$ 75
Effect on 2019 total of service and interest cost components, One Percentage Point Decrease	(67)
Effect on postretirement benefit obligation at December 31, 2019, One Percentage Point Increase	353
Effect on postretirement benefit obligation at December 31, 2019, One Percentage Point Decrease	$ (328)
Qualified Plan (ERP) \| Pension Benefits
Weighted average assumptions were used to determine benefit obligations
Discount rate (as a percent)	3.16%	4.30%
Weighted average assumptions used to determine net periodic benefit cost
Discount rate (as a percent)	4.30%	3.51%	4.05%
Expected long term return on plan assets (as a percent)	4.75%	4.75%	4.75%
Nonqualified Plan \| Pension Benefits
Weighted average assumptions were used to determine benefit obligations
Discount rate (as a percent)	3.16%	4.30%
Rate of compensation increase (as a percent)	4.00%	4.00%
Weighted average assumptions used to determine net periodic benefit cost
Discount rate (as a percent)	4.30%	3.51%	4.05%
Rate of compensation increase (as a percent)	4.00%	4.00%	4.00%
Nonqualified Plan \| Other Benefits
Weighted average assumptions were used to determine benefit obligations
Discount rate (as a percent)	3.16%	4.30%
Weighted average assumptions used to determine net periodic benefit cost
Discount rate (as a percent)	4.30%	3.51%	4.05%

Reportable Operating Segments - Selected Business Segment Financial Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Selected business segment financial information
Net interest income (expense)	$ 573,402	$ 566,318	$ 528,804
Provision for loan and lease losses	(13,800)	(22,180)	(18,500)
Net interest income after provision for loan and lease losses	559,602	544,138	510,304
Noninterest income	192,533	178,993	205,605
Noninterest expense	(370,437)	(364,953)	(347,554)
Income before provision for income taxes	381,698	358,178	368,355
(Provision) benefit for income taxes	(97,306)	(93,784)	(184,673)
Net income (loss)	284,392	264,394	183,682
Assets	20,166,734	20,695,678	20,549,461
Total OTTI write-downs included in earnings		24,085
Gains on sale of real estate			6,922
Retail Banking
Selected business segment financial information
Net interest income (expense)	413,029	420,165	409,796
Provision for loan and lease losses	(6,248)	(8,753)	(6,837)
Net interest income after provision for loan and lease losses	406,781	411,412	402,959
Noninterest income	95,413	89,669	89,372
Noninterest expense	(228,389)	(225,881)	(223,652)
Income before provision for income taxes	273,805	275,200	268,679
(Provision) benefit for income taxes	(69,285)	(70,335)	(130,130)
Net income (loss)	204,520	204,865	138,549
Assets	7,276,047	7,078,016	7,003,724
Commercial Banking
Selected business segment financial information
Net interest income (expense)	141,227	140,333	131,692
Provision for loan and lease losses	(7,552)	(13,427)	(11,663)
Net interest income after provision for loan and lease losses	133,675	126,906	120,029
Noninterest income	73,635	80,904	75,566
Noninterest expense	(82,380)	(80,766)	(68,167)
Income before provision for income taxes	124,930	127,044	127,428
(Provision) benefit for income taxes	(32,298)	(32,700)	(57,857)
Net income (loss)	92,632	94,344	69,571
Assets	6,071,356	6,346,541	5,462,370
Treasury and Other
Selected business segment financial information
Net interest income (expense)	19,146	5,820	(12,684)
Net interest income after provision for loan and lease losses	19,146	5,820	(12,684)
Noninterest income	23,485	8,420	40,667
Noninterest expense	(59,668)	(58,306)	(55,735)
Income before provision for income taxes	(17,037)	(44,066)	(27,752)
(Provision) benefit for income taxes	4,277	9,251	3,314
Net income (loss)	(12,760)	(34,815)	(24,438)
Assets	$ 6,819,331	$ 7,271,121	$ 8,083,367

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Statements of Stockholders' Equity
Cash dividends declared (in dollars per share)	$ 1.04	$ 0.96	$ 0.88

Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Premises and Equipment

Schedule of premises and equipment

At December 31, 2019 and 2018, premises and equipment were comprised of the following:


	December 31,
(dollars in thousands)	2019		2018
Buildings	$	289,271	$	280,853
Furniture and equipment		86,485		81,342
Land		106,487		105,302
Leasehold improvements		64,828		55,316
Total premises and equipment		547,071		522,813
Less: Accumulated depreciation and amortization		230,186		217,817
Net book value	$	316,885	$	304,996

Depreciation and amortization expenses included in occupancy and equipment expenses for 2019, 2018 and 2017 were as follows:


	Year Ended December 31,
(dollars in thousands)	2019		2018		2017
Occupancy	$	9,037	$	8,815	$	8,852
Equipment		5,485		6,488		6,426
Total	$	14,522	$	15,303	$	15,278

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2019

Derivative Financial Instruments

Derivative Financial Instruments

17. Derivative Financial Instruments

The Company enters into derivative contracts primarily to manage its interest rate risk, as well as for customer accommodation purposes. Derivatives used for risk management purposes consist of interest rate swaps that are designated as either a fair value hedge or a cash flow hedge. The derivatives are recognized on the consolidated balance sheets as either assets or liabilities at fair value. Derivatives entered into for customer accommodation purposes consist of various free-standing interest rate derivative products and foreign exchange contracts. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes.

The following table summarizes notional amounts and fair values of derivatives held by the Company as of December 31, 2019 and 2018:


	December 31, 2019						December 31, 2018
			Fair Value						Fair Value
	Notional		Asset		Liability		Notional		Asset		Liability
(dollars in thousands)	Amount		Derivatives⁽¹⁾		Derivatives⁽²⁾		Amount		Derivatives⁽¹⁾		Derivatives⁽²⁾
Derivatives designated as hedging instruments:
Interest rate swaps	$	23,190	$	—	$	(682)	$	41,317	$	31	$	(44)
Derivatives not designated as hedging instruments:
Interest rate swaps		2,818,803		63,527		—		2,269,247		12,305		(12,007)
Funding swap		82,900		—		(4,233)		62,039		—		(2,607)
Foreign exchange contracts		1,428		12		—		1,191		—		(34)

(1)	The positive fair values of derivative assets are included in other assets.

(2)	The negative fair values of derivative liabilities are included in other liabilities.

Certain interest rate swaps noted above, are cleared through clearinghouses, rather than directly with counterparties. Those transactions cleared through a clearinghouse require initial margin collateral and variation margin payments depending on the contracts being in a net asset or liability position. The amount of initial margin cash collateral posted by the Company was $8.7 million and $2.1 million as of December 31, 2019 and 2018, respectively.

In 2017 and 2018, each of the Chicago Mercantile Exchange (“CME”) and the London Clearing House (“LCH”) amended its rulebook to legally characterize variation margin payments for derivative contracts that are referred to as settled-to-market as settlements of the derivative’s mark-to-market exposure and not collateral. Based on these changes, the Company has treated the CME and LCH variation margins as settlements, which has resulted in a decrease in the Company’s cash collateral and a corresponding decrease in the Company’s derivative asset and liability. As of December 31, 2019 and 2018, the CME variation margin was $1.0 million and $0.5 million, respectively. As of December 31, 2019 and 2018, the LCH variation margin was $62.5 million and $0.6 million, respectively.

As of December 31, 2019, the Company pledged $29.9 million in financial instruments and $13.4 million in cash as collateral for interest rate swaps. As of December 31, 2018, the Company pledged $26.2 million in financial instruments and $2.6 million in cash as collateral for interest rate swaps. As of December 31, 2019 and 2018, the cash collateral includes the excess initial margin for interest rate swaps cleared through clearinghouses and cash collateral for interest rate swaps with financial institution counterparties.

Fair Value Hedges

To manage the risk related to the Company’s net interest margin, interest rate swaps are utilized to hedge certain fixed-rate loans. These swaps have maturity, amortization and prepayment features that correspond to the loans hedged and are designated and qualify as fair value hedges. Any gain or loss on the swaps, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, is recognized in current period earnings.

At December 31, 2019, the Company carried one interest rate swap with a notional amount of $23.2 million with a negative fair value of $0.7 million that was categorized as a fair value hedge for a commercial and industrial loan. The Company received a USD Prime floating rate and paid a fixed rate of 2.90%. The swap matures in 2023. At December 31, 2018, the Company carried interest rate swaps with notional amounts totaling $41.3 million with a positive fair value of nil and a negative fair value of nil that were categorized as fair value hedges for commercial and industrial loans and commercial real estate loans.

The following table shows the net gains and losses recognized in income related to derivatives in fair value hedging relationships for the years ended December 31, 2019, 2018 and 2017:


	Gains (losses) recognized in
	the consolidated statements	December 31,
(dollars in thousands)	of income line item	2019		2018		2017
Gains (losses) on fair value hedging relationships recognized in interest income⁽¹⁾:
Recognized on interest rate swap	Loans and lease financing	$	(671)	$	—	$	—
Recognized on hedged item	Loans and lease financing		735		—		—

Gains (losses) on fair value hedging relationships recognized in noninterest income⁽²⁾:
Recognized on interest rate swap	Other	$	—	$	629	$	846
Recognized on hedged item	Other		—		(723)		(841)

(1)	In connection with the adoption of ASU 2017-12, beginning January 1, 2019, gain (loss) amounts for the interest rate swap qualifying as fair value hedging and the hedged item are included in interest income from loans and lease financing.

(2)	Prior to January 1, 2019, gain (loss) amounts for the interest rate swaps qualifying as fair value hedging and the hedged items were included in other noninterest income.

As of December 31, 2019 and 2018, the following amounts were recorded in the consolidated balance sheets related to the cumulative basis adjustments for fair value hedges:

Cumulative Amount of Fair Value

Hedging Adjustment Included in the

Carrying Amount of the Hedged Asset

(dollars in thousands)

December 31, 2019

December 31, 2018

December 31, 2019

December 31, 2018

Line item in the consolidated balance sheets in which the hedged item is included

Loans and leases

24,415

42,496

1,017

293

Cash Flow Hedges

During 2018 and 2017, the Company carried two interest rate swaps with notional amounts totaling $150.0 million, in order to reduce exposure to interest rate increases associated with short-term fixed-rate liabilities. The Company received 6-month LIBOR and paid fixed rates ranging from 2.98% to 3.03%. The swaps matured in December 2018. As of December 31, 2019 and 2018, the Company held no cash flow hedges.

The Company utilized interest rate swaps to reduce exposure to interest rates associated with short-term fixed-rate liabilities. The Company entered into interest rate swaps paying fixed rates and receiving LIBOR. The LIBOR index corresponded to the short-term fixed-rate nature of the liabilities being hedged. If interest rates rose, the increase in interest received on the swaps offset increases in interest costs associated with these liabilities. By hedging with interest rate swaps, the Company minimized the adverse impact on interest expense associated with increasing rates on short-term liabilities.

The interest rate swaps were designated and qualified as cash flow hedges. The effective portion of the gain or loss on the interest rate swaps was reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affected earnings. During the year ended December 31, 2018, the pretax gain recognized in accumulated other comprehensive income of $7.6 million was reclassified into other noninterest income on the maturity dates of the cash flow hedges. The interest rate swaps designated as cash flow hedges resulted in net interest expense of $1.2 million and $2.4 million during the years ended December 31, 2018 and 2017, respectively. The Company also recognized expenses related to the ineffective portion of the change in fair value of the cash flow hedges of nil and $0.1 million for the years ended December 31, 2018 and 2017, respectively.

The following table summarizes the effect of cash flow hedging relationships for the years ended December 31, 2018 and 2017:


	December 31,
(dollars in thousands)	2018		2017
Pretax gains recognized in other comprehensive income on derivatives (effective portion)	$	1,475	$	2,473
Pretax gain reclassified from accumulated other comprehensive income		(7,558)		—

Free-Standing Derivative Instruments

For the derivatives that are not designated as hedges, changes in fair value are reported in current period earnings. The following table summarizes the impact on pretax earnings of derivatives not designated as hedges, as reported on the consolidated statements of income for the years ended December 31, 2019, 2018 and 2017:


	Net gains (losses) recognized
	in the consolidated statements	December 31,
(dollars in thousands)	of income line item	2019		2018		2017
Derivatives Not Designated As Hedging Instruments:
Interest rate swaps	Other noninterest income	$	16	$	574	$	819
Funding swap	Other noninterest income		(5,355)		(172)		(169)
Foreign exchange contracts	Other noninterest income		12		(58)		171

As of December 31, 2019, the Company carried multiple interest rate swaps with notional amounts totaling $2.8 billion, all of which were related to the Company’s customer swap program, with a positive fair value of $63.5 million and a negative fair value of nil. The Company received 1-month LIBOR and paid fixed rates ranging from 1.71% to 8.73%. The swaps mature between 2021 and 2039. As of December 31, 2018, the Company carried multiple interest rate swaps with notional amounts totaling $2.3 billion, including $2.2 billion related to the Company’s customer swap program, with a positive fair value of $12.3 million and a negative fair value of $12.0 million. The Company received 1-month LIBOR and paid fixed rates ranging from 2.02% to 5.78%. These swaps resulted in net interest expense of nil, $0.5 million and $0.9 million for the years ended December 31, 2019, 2018, and 2017, respectively.

The Company’s customer swap program is designed by offering customers a variable-rate loan that is swapped to fixed-rate through an interest-rate swap. The Company simultaneously executes an offsetting interest-rate swap with a swap dealer. Upfront fees on the dealer swap are recorded in other noninterest income and totaled $4.5 million, $7.3 million and $6.7 million for the years ended December 31, 2019, 2018, and 2017, respectively. Interest rate swaps related to the program had asset fair values of $63.5 million and $12.3 million as of December 31, 2019 and 2018, respectively, and liability fair values of nil and $11.2 million as of December 31, 2019 and 2018, respectively.

In conjunction with the 2016 sale of Class B restricted shares of common stock issued by Visa, the Company entered into a funding swap agreement with the buyer that requires payment to the buyer in the event Visa reduces each member bank’s Class B conversion rate to unrestricted Class A common shares. On June 28, 2018, Visa additionally

funded its litigation escrow account, thereby reducing each member bank’s Class B conversion rate to unrestricted Class A common shares. Accordingly, on July 5, 2018, Visa announced a decrease in conversion rate from 1.6483 to 1.6298 effective June 28, 2018. In July 2018, the Company made a payment of approximately $0.7 million to the buyer as a result of the reduction in the Visa Class B conversion rate. On September 27, 2019, Visa additionally funded its litigation escrow account, thereby further reducing each member bank’s Class B conversion rate to unrestricted Class A common shares. Accordingly, on September 30, 2019, Visa announced a decrease in conversion rate from 1.6298 to 1.6228, effective September 27, 2019. In October 2019, the Company made a payment of approximately $0.3 million to the buyer as a result of the reduction in the Visa Class B conversion rate. Under the terms of the funding swap agreement, the Company will make monthly payments to the buyer based on Visa’s Class A stock price and the number of Visa Class B restricted shares that were sold until the date on which the covered litigation is settled. During the year ended December 31, 2019, the Company recorded a $4.5 million loss in other noninterest income related to a revaluation adjustment to increase the fair value of the derivative liability (“Visa derivative”). The Visa derivative of $4.2 million and $2.6 million was included in the consolidated balance sheets at December 31, 2019 and 2018, respectively, to provide for the fair value of this liability. There were no sales of these shares prior to 2016. See “Note 22. Fair Value” in the notes to the consolidated financial statements included in Item 8. Financial Statements and Supplementary Data for more information.

Counterparty Credit Risk

By using derivatives, the Company is exposed to counterparty credit risk if counterparties to the derivative contracts do not perform as expected. If a counterparty fails to perform, the Company’s counterparty credit risk is equal to the amount reported as a derivative asset, net of cash or other collateral received, and net of derivatives in a loss position with the same counterparty to the extent master netting arrangements exist. The Company minimizes counterparty credit risk through credit approvals, limits, monitoring procedures, executing master netting arrangements and obtaining collateral, where appropriate. Counterparty credit risk related to derivatives is considered in determining fair value.

The Company’s interest rate swap agreements include bilateral collateral agreements with collateral requirements which begin with exposures in excess of $0.5 million. For each counterparty, the Company reviews the interest rate swap collateral daily. Collateral for customer interest rate swap agreements, calculated as the pledged asset less loan balance, requires valuation of the pledged asset. Counterparty credit risk adjustments of $0.1 million were recognized during each of the years ended December 31, 2019, 2018 and 2017.

Credit-Risk Related Contingent Features

Certain of our derivative contracts contain provisions whereby if the Company’s credit rating were to be downgraded by certain major credit rating agencies as a result of a merger or material adverse change in the Company’s financial condition, the counterparty could require an early termination of derivative instruments in a net liability position. The aggregate fair value of all derivative instruments with such credit-risk related contingent features that are in a net liability position was $4.0 million and $0.8 million at December 31, 2019 and 2018, respectively, for which we posted $4.7 million and $0.5 million, respectively, in collateral in the normal course of business. If the Company’s credit rating had been downgraded on December 31, 2019 and 2018, we may have been required to settle the contract in an amount equal to its fair value.

Organization and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Organization and Summary of Significant Accounting Policies

Basis of Presentation

Basis of Presentation

First Hawaiian, Inc. (“FHI” or the “Parent”), a bank holding company, owns 100% of the outstanding common stock of First Hawaiian Bank (“FHB” or the “Bank”). FHB is a state-chartered bank that is not a member of the Federal Reserve System. FHB, the oldest financial institution in Hawaii, was established as Bishop & Company in 1858. As of December 31, 2019, FHB was the largest bank in Hawaii in terms of total assets, loans and leases and deposits. FHB has 58 branches located throughout the State of Hawaii, Guam and Saipan, and offers a comprehensive suite of banking services to consumer and commercial customers including loans, deposit products, wealth management, insurance, trust, retirement planning, credit card and merchant processing services.

The accounting and reporting principles of First Hawaiian, Inc. and Subsidiary (the “Company”) conform to U.S. generally accepted accounting principles (“GAAP”) and prevailing practices within the financial services industry. Intercompany accounts and transactions have been eliminated in consolidation.

Transition to an Independent Public Company

Transition to an Independent Public Company

Prior to our initial public offering in August 2016 (“IPO”), we were an indirect wholly owned subsidiary of BNP Paribas (“BNPP”), a global financial institution based in France.

On April 1, 2016, BNPP effected a series of transactions (“Reorganization Transactions”) pursuant to which FHI, which was then known as BancWest Corporation (“BancWest”), contributed Bank of the West (“BOW”), its subsidiary at the time, to BancWest Holding Inc. (“BWHI”), a newly formed bank holding company and a wholly owned subsidiary of BancWest. Following the contribution of BOW to BWHI, BancWest distributed its interest in BWHI to BNPP, and BWHI became a wholly owned subsidiary of BNPP. As part of these transactions, we amended our certificate of incorporation to change our name to First Hawaiian, Inc., with First Hawaiian Bank remaining our only direct wholly owned subsidiary.

On July 1, 2016, we became an indirect wholly owned subsidiary of BNP Paribas USA, Inc. (“BNP Paribas USA”), BNPP’s U.S. intermediate holding company. As part of that reorganization, we became a direct wholly owned subsidiary of BancWest Corporation (“BWC”), a direct wholly owned subsidiary of BNP Paribas USA.

In August 2016, FHI completed its IPO of 24,250,000 shares of common stock sold by BWC. Shares of FHI’s common stock began trading on the NASDAQ Global Select Market (“NASDAQ”) under the ticker symbol “FHB” on August 4, 2016. In connection with FHI’s IPO, BNPP announced its intent to sell its interest in FHI, including FHI’s wholly owned subsidiary, FHB, over time, subject to market conditions and other considerations.

In February 2017, BWC sold an additional 28,750,000 shares of FHI common stock in a secondary offering. In May and June 2018, BWC sold an additional 16,830,000 shares of FHI common stock in the aggregate in a secondary offering. BWC sold 20,000,000 additional shares of FHI common stock in secondary offerings completed in each of August and September 2018, respectively. BWC sold shares of FHI common stock of 2,968,069 and 1,801,801 in May and August 2018, respectively, to the Company pursuant to share repurchase agreements. On February 1, 2019, BNPP, through BWC, completed the sale of its remaining 24,859,750 shares of FHI common stock in a public offering. FHI did not receive any of the proceeds from the sales of shares of FHI common stock in that offering, in any of the secondary offerings described above or the IPO. As a result of the completion of the February 1, 2019 public offering, BNPP (through BWC, the selling stockholder) fully exited its ownership interest in FHI common stock.

Use of Estimates in the Preparation of Financial Statements

Use of Estimates in the Preparation of Financial Statements

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and various other assumptions believed to be reasonable.

Although these estimates are based on management’s best knowledge of current events, actual results may differ from these estimates.

Variable Interest Entities

Variable Interest Entities

A variable interest entity (“VIE”) is a legal entity that lacks the ability to financially support its activities or whose equity investors lack the ability to control its activities or absorb profits and losses proportionately with their investment in the entity. The primary beneficiary consolidates the VIE. The primary beneficiary is defined as the enterprise that has both the power to direct the activities of the VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits that could be significant to the VIE.

The Company has a limited partnership interest or is a member in a limited liability company (“LLC”) in several low-income housing partnerships. These partnerships or LLCs provide funds for the construction and operation of apartment complexes that provide affordable housing to that segment of the population with lower family income. If these developments successfully attract a specified percentage of residents falling in that lower income range, state and/or federal income tax credits are made available to the partners or members. The tax credits are generally recognized over 10 years. In order to continue receiving the tax credits each year over the life of the partnership or LLC, the low-income residency targets must be maintained.

The Company accounts for its interests in these low-income housing partnerships using the proportional amortization method. Unfunded commitments to fund these investments were $102.8 million and $36.0 million as of December 31, 2019 and 2018, respectively. These unfunded commitments are unconditional and legally binding and are recorded in other liabilities in the consolidated balance sheets.

These low-income housing partnership and LLC entities meet the definition of a VIE; however, the Company is not the primary beneficiary of the entities, as the general partner or managing member has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. While the partnership or LLC agreements allow the limited partners and members, through a majority vote, to remove the general partner or managing member, this right is not deemed to be substantive as the general partner or managing member can only be removed for cause.

Cash and Due from Banks and Interest bearing Deposits in Other Banks

Cash and Due from Banks

Cash and due from banks include amounts due from other financial institutions as well as in-transit clearings. Because amounts due from other financial institutions often exceed the Federal Deposit Insurance Corporation (“FDIC”) deposit insurance limit, the Company evaluates the credit risk of these institutions through periodic review of their financial condition and regulatory capital position. Under the terms of the Depository Institutions Deregulation and Monetary Control Act, the Company is required to maintain reserves with the Federal Reserve Bank of San Francisco (“FRB”) based on the amount of deposits held. The average amount of cash reserves required was $67.4 million and $57.6 million for the years ended December 31, 2019 and 2018, respectively. Cash and cash equivalents include cash and due from banks and interest-bearing deposits in other banks. All amounts are readily convertible to cash and have maturities of less than 90 days.

Interest-bearing Deposits in Other Banks

Interest-bearing deposits in other banks include funds held in other financial institutions that are either fixed or variable rate instruments, including certificates of deposits. Interest income is recorded when earned and presented within other interest income in the Company’s consolidated statements of income.

Investment Securities

Investment Securities

As of December 31, 2019 and 2018, investment securities were comprised of debt, mortgage-backed securities and collateralized mortgage obligations issued by the U.S. Government, its agencies and government-sponsored enterprises. The Company amortizes premiums and accretes discounts using the interest method over the expected lives of the individual securities. All investment securities transactions are recorded on a trade-date basis. All of the Company’s securities were categorized as available-for-sale as of December 31, 2019 and 2018. Available-for-sale investment

securities are reported at fair value, with unrealized gains and losses reported in accumulated other comprehensive income. Gains and losses realized on sales of investment securities are determined using the specific identification method.

Unrealized losses for all investment securities are reviewed to determine whether the losses are other than temporary. Investment securities are evaluated for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic and market conditions warrant such an evaluation, to determine whether the decline in fair value below amortized cost is other than temporary. For a debt security for which there has been a decline in the fair value below amortized cost, the Company will recognize an OTTI write-down in noninterest income if there is an intent to sell the security, it is more likely than not the Company will be required to sell the security before recovery of its amortized cost basis, or the Company does not expect to recover the entire amortized cost basis of the security. The OTTI write-down is measured as the entire difference between the amortized cost basis and fair value of the investment security.

Loans Held for Sale

Loans Held for Sale

The Company originates certain loans for individual sale or for sale as a pool of loans to government-sponsored enterprises. Loans held for sale are carried, on an aggregate basis, at the lower of cost or fair value. The fair value of loans held for sale is primarily determined based on quoted prices for similar loans in active markets. Net gains and losses on loan sales are recorded as a component of other noninterest income. Direct loan origination costs and fees are deferred at origination of the loan and are recognized in other noninterest income upon sale of the loan.

Loans and Leases

Loans and Leases

Loans are reported at the principal amount outstanding, net of unearned income including unamortized and unaccreted deferred loan fees and costs, and cumulative net charge-offs. Interest income is recognized on an accrual basis. Loan origination fees, certain direct costs and unearned discounts and premiums, if any, are deferred and are generally accreted or amortized into interest income as yield adjustments using the interest method over the contractual life of the loan. Other credit-related fees are recognized as fee income, a component of noninterest income, when earned.

Direct financing leases are carried at the aggregate of lease payments receivable plus the estimated residual value of leased property, less unearned income. Leveraged leases, which are a form of direct financing leases, are carried net of non-recourse debt. Unearned income on direct financing and leveraged leases is amortized over the lease terms by methods that approximate the interest method. Residual values on leased assets are periodically reviewed for impairment.

Non-Performing Loans and Leases

Non-Performing Loans and Leases

The Company generally places a loan or lease on nonaccrual status when management believes that collection of principal or interest has become doubtful or when a loan or lease becomes 90 days past due as to principal or interest, unless it is well secured and in the process of collection. A charge-off is recorded when it is probable that a loss has been incurred and when it is possible to determine a reasonable estimate of the loss. When the Company places a loan or lease on nonaccrual status, previously accrued and uncollected interest is reversed against interest income in the current period. When the Company receives an interest payment on a nonaccrual loan or lease, the payment is applied as a reduction of the principal balance. Nonaccrual loans and leases are generally returned to accrual status when they become current as to principal and interest and have demonstrated a sustained period of payment performance or become both well secured and in the process of collection.

Troubled Debt Restructurings

Troubled Debt Restructurings

A restructuring of debt constitutes a troubled debt restructuring (“TDR”) if the Company, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The Company offers various types of concessions when modifying a loan, including term extensions, temporary deferral of principal and temporary interest rate reductions. However, forgiveness of principal is rarely granted. Generally, a non-accrual loan that has been modified in a TDR remains on non-accrual status for at least six months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. However, if the borrower’s ability to meet the revised payment terms is uncertain, the loan remains on non-accrual status.

Impaired Loans

Impaired Loans

A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all amounts due from the borrower in accordance with the contractual terms of the loan, including scheduled interest payments. This evaluation is generally based on delinquency information, an assessment of the borrower’s financial condition and the adequacy of collateral, if any. The Company’s impaired loans are primarily comprised of commercial and industrial, commercial real estate, residential mortgage and any loans modified in a TDR, whether on accrual or nonaccrual status.

The Company individually measures impairment on commercial and industrial loans and commercial real estate loans based on the present value of the expected future cash flows discounted at the loan’s effective interest rate or, for residential real estate loans and collateral-dependent loans, based on the fair value of the collateral less disposition costs. On a case-by-case basis, the Company may measure impairment based upon a loan’s observable market price. Impaired loans without a related allowance for loan and lease losses are generally collateralized by assets with fair values in excess of the recorded investment in the loans.

Allowance for Loan and Lease Losses, Reserve for Unfunded Commitments and Provision for Loan and Lease Losses

Allowance for Loan and Lease Losses

The Company maintains the allowance for loan and lease losses (the “Allowance”) at a level which, in management’s judgment, is adequate to absorb probable credit losses that have been incurred in the Company’s loan and lease portfolio as of the balance sheet date. The Company’s methodology for determining an adequate and appropriate level of the Allowance takes into account many factors, including:

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Trends in the volume and severity of delinquent loans and leases, nonaccrual loans and leases, troubled debt restructurings and other loan and lease modifications;

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Trends in the quality of risk management and loan administration practices including findings of internal and external reviews of loans and the effectiveness of collection practices;

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Changes in the quality of the Company’s risk identification process and loan review system;

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Changes in lending policies and procedures including underwriting standards and collection, charge-off and recovery practices;

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Changes in the nature and volume of the loan and lease portfolio;

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Changes in concentrations within the loan and lease portfolio;

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Changes in national and local economic business conditions, including the condition of various market segments.

While the Company has a formal methodology to determine an adequate and appropriate level of the Allowance, estimates of inherent loan and lease losses involve judgment and assumptions as to various factors, including current economic conditions. Management’s determination of the adequacy of the Allowance is based on quarterly evaluations of the above factors. Accordingly, the provision for credit losses will vary from period to period based on management’s ongoing assessment of the adequacy of the Allowance.

The Allowance consists of two components, the allocated and the unallocated allowance. The allocated portion of the Allowance includes reserves that are allocated based on impairment analyses of specific loans or pools of loans. A discussion of evaluating specific loans for impairment is noted in the “Impaired Loans” section above. The Company collectively evaluates large groups or pools of smaller-balance homogeneous loans and leases such as consumer loans, residential real estate loans and small business loans. The risk assessment process includes the use of estimates to determine the inherent loss in these portfolios. The Company considers a variety of factors including, but not limited to historical loss experience, estimated defaults or foreclosures based on portfolio trends and delinquencies, and current economic conditions.

The unallocated component of the Allowance recognizes the imprecision in the loan and lease loss estimation process. While the Company’s allocated reserve methodology strives to reflect all risk factors, there may still be certain unidentified risk elements. The purpose of the unallocated reserve is to capture these factors. The relationship of the unallocated component to the total Allowance may fluctuate from period to period. Management evaluates the adequacy of the total Allowance based on the combined total of the allocated and unallocated components of the Allowance.

The Allowance is increased by provisions for loan and lease losses and reduced by charge-offs, net of recoveries. Consumer loans and leases are generally charged off upon reaching a predetermined delinquency status that ranges from 120 to 180 days and varies by product type. Other loans and leases may be charged off to the extent they are classified as loss. Recoveries of amounts that have previously been charged off are credited to the Allowance and are generally recorded only to the extent that cash is received.

Reserve for Unfunded Commitments

The reserve for unfunded commitments (the “Unfunded Reserve”) is a component of other liabilities and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include loan commitments, and standby and commercial letters of credit. The process used to determine the Unfunded Reserve is consistent with the process for determining the Allowance as adjusted for estimated funding probabilities or loan and lease equivalency factors. The level of the Unfunded Reserve is adjusted by recording an expense or recovery in other noninterest expense.

Provision for Loan and Lease Losses

The provision for loan and lease losses (the “Provision”) represents the amount charged against current period earnings to achieve an Allowance that in management’s judgment is adequate to absorb probable credit losses that have been incurred in the Company’s loan and lease portfolio as of the consolidated balance sheet date. Accordingly, the Provision will vary from period to period based on management’s ongoing assessment of the overall adequacy of the Allowance.

Premises and Equipment

Premises and Equipment

Premises and equipment, including leasehold improvements, are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of 10 to 39 years for premises, 4 to 20 years for equipment and the shorter of the lease term or remaining useful life for leasehold improvements.

On a periodic basis, long-lived assets are reviewed for impairment. An impairment loss is recognized if the carrying amount of a long-lived asset exceeds its fair value and is not recoverable. An impairment analysis is performed whenever events or changes in circumstances suggest that the carrying value of an asset or group of assets may not be recoverable.

Operating lease rental income for leased assets, primarily premises, is recognized on a straight-line basis as an offset to rental expense.

Other Real Estate Owned and Repossessed Personal Property

Other Real Estate Owned and Repossessed Personal Property

Other real estate owned (“OREO”) and repossessed personal property are comprised primarily of properties that the Company acquires through foreclosure proceedings. The Company values these properties at fair value less estimated costs to sell the property upon acquisition, which establishes the new carrying value. The Company charges losses arising upon the acquisition of the property against the Allowance. If the fair value of the property at the time of acquisition exceeds the carrying amount of the loan, the excess is recorded either as a recovery to the Allowance if a charge-off had previously been recorded, or as a gain on initial transfer in other noninterest income. After acquisition, the Company carries such properties at the lower of cost or fair value less estimated selling costs. Any write-downs or losses from the subsequent disposition of such properties are included in other noninterest expense. Gains recognized on the sale of such properties are included in other noninterest income.

Goodwill

Goodwill

Goodwill represents the cost of acquired businesses in excess of the fair value of the net assets acquired. The Company performs impairment testing of goodwill, an infinite-lived intangible asset, as required under GAAP on an annual basis or when circumstances change that indicate that a potential impairment may have occurred. The Company has assigned goodwill to its operating segments for impairment testing purposes. The goodwill impairment guidance provides the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing further impairment tests is unnecessary. However, if an entity concludes otherwise, or does not elect this option, it is required to perform impairment testing. Step 1 of the test identifies potential impairments at the reporting unit level by comparing the estimated fair value of each identified reporting unit to its carrying amount. If the estimated fair value of a reporting unit exceeds its carrying amount, there is no impairment of goodwill. However, if the carrying amount exceeds the estimated fair value, Step 2 is performed to determine the amount of the potential impairment. Step 2 compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. If the implied fair value of goodwill exceeds the goodwill assigned to the reporting unit, there is no impairment. If the carrying amount of reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. Subsequent reversals of goodwill impairment are prohibited.

Mortgage Servicing Rights

Mortgage Servicing Rights

Mortgage servicing rights are recognized as assets when residential mortgage loans are sold and the rights to service those loans are retained. Mortgage servicing rights are initially recorded at fair value by using a discounted cash flow model to calculate the present value of estimated future net servicing income, incorporating assumptions that market participants would use in their estimates of fair value.

The Company’s mortgage servicing rights are accounted for under the amortization method and periodically assessed for impairment. The Company amortizes the mortgage servicing rights over the period of estimated net servicing income, taking into account prepayment assumptions. Any such indicated impairment is recognized in earnings during the period in which the impairment occurs. Mortgage servicing income, net of the amortization of mortgage servicing rights, is recorded as a component of other noninterest income in the consolidated statements of income.

Non Marketable Equity Securities

Non-Marketable Equity Securities

The Company is required to own Federal Home Loan Bank (“FHLB”) of Des Moines stock as a condition of membership. These securities are accounted for under the cost method, which equals par value, and are included in other assets in the consolidated balance sheets. These securities do not have a readily determinable fair value as ownership is restricted and there is no market for these securities. The Company reviews these securities periodically for impairment. Management considers these securities to be long-term investments. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. No impairment was recognized on non-marketable equity securities for the years ended December 31, 2019, 2018 and 2017.

Pension and Other Postretirement Benefit Plans

Pension and Other Postretirement Benefit Plans

The Company has a qualified noncontributory defined benefit pension plan, an unfunded supplemental executive retirement plan, a directors’ retirement plan, a non-qualified pension plan for eligible directors and a postretirement benefit plan providing life insurance and healthcare benefits that is offered to directors and employees, as applicable. The qualified noncontributory defined benefit pension plan, the unfunded supplemental executive retirement plan and the directors’ retirement plan are all frozen plans to new participants. To calculate annual pension costs, management uses the following key variables: (1) size of the employee population, length of service and estimated compensation increases; (2) actuarial assumptions and estimates; (3) expected long-term rate of return on plan assets; and (4) discount rate. For all pension and postretirement benefit plan calculations, the Company uses a December 31^st measurement date.

The expected long-term rate of return was based on a calculated rate of return from average rates of return on various asset classes over a 20-year historical time horizon. Using long-term historical data allows the Company to capture multiple economic environments, which management believes is relevant when using historical returns. Net actuarial gains or losses that exceed a 5% corridor of the greater of the projected benefit obligation or the fair value of plan assets as of the beginning of the year are amortized from accumulated other comprehensive income into net periodic pension cost on a straight-line basis over five years.

In estimating the projected benefit obligation, an independent actuary bases assumptions on factors such as mortality rate, turnover rate, retirement rate, disability rate and other assumptions related to the population of individuals in the pension plan. If significant actuarial gains or losses occur, the actuary reviews the demographic and economic assumptions with management, at which time the Company considers revising these assumptions based on actual results.

The Company recognizes an asset on its consolidated balance sheets for a plan’s overfunded status or a liability for a plan’s underfunded status. The Company also measures the plans’ assets and obligations that determine its funded status as of the end of the year and recognizes those changes in other comprehensive income, net of tax. Periodic pension expense (or income) includes service costs, interest costs based on the assumed discount rate, the expected return on plan assets based on an actuarially derived market-related value and amortization of actuarial gains and losses. Service cost is included in salaries and employee benefits expense, while all other components of net periodic pension cost are included in other noninterest expense in the consolidated statements of income.

Income Taxes

Income Taxes

Current income tax expense is recognized for the amount of income taxes expected to be payable or refundable for the current period, and deferred income taxes are provided to reflect the tax effect of temporary differences between financial statement carrying amounts and the corresponding tax basis of assets and liabilities. Deferred income taxes are calculated by applying enacted statutory tax rates and tax laws to future years in which temporary differences are expected to reverse. The impact on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that the tax rate change is enacted. A deferred tax valuation allowance is established if it is more likely than not that a deferred tax asset will not be realized. Interest and penalties, if any, expected to be assessed or refunded by taxing authorities relating to an underpayment or overpayment of income taxes are accrued and recorded as part of income tax expense.

Excise tax credits relating to premises and equipment are accounted for using the flow-through method, and the benefit is recognized in the year the asset is placed in service. General business and excise tax credits generated from the leasing portfolio, except for credits that are passed on to lessees, are recognized over the term of the lease for book purposes, but in the year placed in service for tax purposes.

The Company maintains reserves for unrecognized tax benefits that arise in the normal course of business. As of December 31, 2019, these positions were evaluated based on an assessment of probabilities as to the likelihood of whether a liability had been incurred. Such assessments are reviewed as events occur and adjustments to the reserves are made as appropriate. In evaluating a tax position for recognition, the Company evaluates whether it is more likely than not that a tax position will be sustained upon examination, including resolution of related appeals or litigation processes, based on the technical merits of the position. If the tax position meets the more likely than not recognition threshold, the tax position is measured and recognized in the Company’s consolidated financial statements as the largest amount of tax benefit that, in management’s judgment, is greater than 50% likely of being realized upon ultimate settlement.

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

Derivatives are recognized on the consolidated balance sheets at fair value. On the date the Company enters into a derivative contract, the Company designates the derivative instrument as: (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”); (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”); or (3) held for trading, customer accommodation or not qualifying for hedge accounting (“free-standing derivative instrument”). For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability or of an unrecognized firm commitment attributable to interest rate risk are recorded in current period earnings. For a cash flow hedge, to the extent that the hedge is considered highly effective, changes in the fair value of the derivative instrument are recorded in other comprehensive income and subsequently reclassified to net income in the same period

that the hedged transaction impacts net income. To the extent the derivative instruments are not effective, any changes in the fair value of the derivatives are immediately recognized in noninterest income. For free-standing derivative instruments, changes in fair values are reported in current period earnings. The Company formally documents the relationship between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivative instruments that are designated as hedges to specific assets or liabilities, unrecognized firm commitments or forecasted transactions. The Company also formally assesses, both at the inception of a hedge and on a quarterly basis, whether the derivative instruments used are highly effective in offsetting changes in fair values of, or cash flows related to, hedged items.

Fair Value Measurements

Fair Value Measurements

Fair value measurements apply whenever GAAP requires or permits assets or liabilities to be measured at fair value either on a recurring or nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. Fair value is based on the assumptions that management believes market participants would use when pricing an asset or liability. Fair value measurement and disclosure guidance established a three-level fair value hierarchy that prioritizes the use of inputs used in valuation methodologies. Management maximizes the use of observable inputs and minimizes the use of unobservable inputs when determining fair value measurements.

Stock-Based Compensation

Stock-Based Compensation

The Company grants stock-based awards, including restricted stock, restricted stock units and performance stock units. These awards are issued at no cost to the recipient. The fair value of restricted stock and restricted stock unit awards was based on the closing price of FHI’s common stock on the date of grant. Such awards were recognized in the Company’s consolidated statements of income on a straight-line basis over the vesting period. Recipients of performance stock units are entitled to receive shares of FHI common stock at no cost, subject to the Company’s achievement of specified market or performance conditions. The grant date fair value of the performance stock units subject to the Company’s achievement of specified market conditions was estimated using a Monte Carlo simulation model. For purposes of this modeling exercise, historical volatilities of FHI common stock and members of the peer group were used. The risk-free interest rate that was used in the valuation was that of a zero-coupon U.S. Treasury note that was commensurate with the performance period.

As compensation cost is recognized, a deferred tax asset is established which represents an estimate of the future tax deduction from the release of restrictions or the achievement of performance targets. At the time that restrictions on the stock-based awards are released, the Company may be required to recognize an adjustment to income tax expense, depending on the market price of the Company’s common stock at that time.

Treasury Stock

Treasury Stock

Shares of the Parent’s common stock that were repurchased or that are used to satisfy payroll tax withholdings related to stock-based compensation are recorded in treasury stock at cost. On the date of subsequent reissuance, the treasury stock account will be reduced by the cost of such stock on a first-in, first-out basis.

Earnings per Share

Earnings per Share

Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the period, assuming conversion of potentially dilutive common stock equivalents.

Advertising and Marketing Costs

Advertising and Marketing Costs

Advertising and marketing costs are expensed as incurred. Advertising and marketing costs were $6.9 million, $4.8 million and $6.2 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Accounting Standard Adopted in 2019 and Recent Accounting Pronouncements

Accounting Standards Adopted in 2019

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). This guidance provided that lessees would be required to recognize the following for all operating leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee's obligation to make lease payments, and 2) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The Company adopted the provisions of ASU No. 2016-02 on January 1, 2019 and elected several practical expedients made available by the FASB. Specifically, the Company elected the transition practical expedient to not recast comparative periods upon the adoption of the new guidance. In addition, the Company elected the package of practical expedients which among other things, required no reassessment of whether existing contracts were or contained leases as well as no reassessment of lease classification for existing leases and the practical expedient which permitted the Company to not separate nonlease components from lease components in determining the consideration in the lease agreement when the Company was a lessee or a lessor. The Company identified the primary lease agreements in scope of this new guidance as those relating to branch premises. As a result, the Company recognized a lease liability of $50.3 million and a related right-of-use asset of $50.6 million on its consolidated balance sheet on January 1, 2019. See “Note 14. Leases” for required disclosures related to this new guidance.

In March 2017, the FASB issued ASU No. 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. Prior to the adoption of ASU No. 2017-08, entities typically amortized the premium as an adjustment of yield over the contractual life of debt securities. This guidance shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. The Company adopted the provisions of ASU No. 2017-08 on January 1, 2019 and it did not have a material impact on the Company’s consolidated financial statements.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities. The objectives of the new guidance were to: (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities, and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. Historically, the Company has participated in limited activities in fair value and cash flow hedging relationships. As a result, the adoption of ASU No. 2017-12 on January 1, 2019 did not have a material impact on the Company’s consolidated financial statements. See “Note 17. Derivative Financial Instruments” for required disclosures related to this new guidance.

In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This guidance aligns the accounting for implementation costs related to a hosting arrangement that is a service contract with the guidance on capitalizing costs associated with developing or obtaining internal-use software. Common examples of hosting arrangements include software as a service, platform or infrastructure as a service and other similar types of hosting arrangements. While capitalized costs related to internal-use software is generally considered an intangible asset, costs incurred to implement a cloud computing arrangement that is a service contract would typically be characterized in the company’s financial statements in the same manner as other service costs (e.g., other assets). The new guidance provided that an entity would be required to amortize capitalized implementation costs over the term of the hosting arrangement on a straight-line basis unless another systematic and rational basis was more representative of the pattern in which the entity expected to benefit from access to the hosted software. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with earlier adoption permitted in any annual or interim period for which financial statements have not yet been issued or made available for issuance. The Company early adopted the provisions of ASU No. 2018-15 prospectively on January 1, 2019 due to the Company’s shift towards utilizing more hosting arrangements that are service contracts. For the year ended December 31, 2019, the Company capitalized $10.6 million related to hosting arrangements that are service contracts.

In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815), Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. This guidance expands the list of U.S. benchmark interest rates permitted in the application of hedge accounting by adding the OIS rate based on the SOFR. Due to concerns about the sustainability of the London Interbank Offered Rate (“LIBOR”), a committee convened by the Federal Reserve Board and the Federal Reserve Bank of New

York initiated an effort to introduce an alternative reference rate in the U.S. The committee identified SOFR as the preferred alternative reference rate to LIBOR. The OIS rate based on SOFR was added as a U.S. benchmark interest rate to facilitate broader use in the marketplace and provide sufficient lead time for entities to prepare for changes to interest rate risk hedging strategies. The Company adopted the provisions of ASU No. 2018-16 on January 1, 2019 and it did not have a material impact on the Company’s consolidated financial statements.

Recent Accounting Pronouncements

The following ASUs have been issued by the FASB and are applicable to the Company in future reporting periods.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. This guidance eliminates the probable recognition threshold for credit losses on financial assets measured at amortized cost. For loans and held-to-maturity debt securities, this guidance requires a current expected credit loss (“CECL”) approach to determine the allowance for credit losses (“ACL”). CECL requires loss estimates for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts. CECL also applies to off-balance sheet credit exposures, except for unconditionally cancellable commitments. In addition, this guidance modifies the other-than-temporary-impairment model for available-for-sale debt securities to require an allowance for credit impairment instead of a direct write-down, which allows for a reversal of credit losses in future periods. This guidance requires entities to record a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. In April 2019, the FASB also issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. As it relates to CECL, this guidance amended certain provisions contained in ASU No. 2016-13, particularly with regards to the inclusion of accrued interest in the definition of amortized cost, as well as clarifying that extension and renewal options that are not unconditionally cancelable by the entity that are included in the original or modified contract should be considered in the entity’s determination of expected credit losses. Federal banking regulatory agencies have also provided relief for an initial capital decrease on January 1, 2020 by allowing for an election to phase-in the impact of adopting the CECL standard over a three-year period on a straight-line basis.

The Company will adopt the provisions of ASU No. 2016-13, ASU No. 2019-04 and related amendments on January 1, 2020. The Company elected the practical expedient to use the fair value of the collateral at the reporting date when recording the net carrying amount of the asset and determining the ACL for a financial asset for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the Company’s assessment as of the reporting date. The Company will also make accounting policy elections not to measure an ACL on accrued interest receivable, write-off accrued interest receivable by reversing interest income and to present accrued interest receivable separately from the related financial asset on the balance sheet. The implementation of CECL will require significant operational changes, particularly in data collection and analysis. The Company engaged a software vendor and ran several CECL parallel productions during 2019. In the fourth quarter of 2019, model validation was completed and management approved the model to be placed into production. Furthermore, significant progress was made in the Company’s user acceptance testing and reconciliation processes. Based on the Company’s portfolio balances and forecasted economic conditions as of January 1, 2020, management believes that the adoption of the CECL standard will result in an increase in the ACL of approximately 10% to 15%, as compared to the Company’s reserve levels as of December 31, 2019.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment. This guidance simplifies the subsequent measurement of goodwill by eliminating Step 2 from the current two-step goodwill impairment test. This guidance provides that a goodwill impairment test be conducted by comparing the fair value of a reporting unit with its carrying amount. Entities are to recognize an impairment charge for goodwill by the amount by which the carrying amount exceeds the reporting unit’s fair value. Entities will continue to have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This guidance is effective for annual and any interim impairment tests for periods beginning after December 15, 2019. The Company adopted the provisions of ASU No. 2017-04 on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This guidance is a part of the FASB’s disclosure framework project to improve disclosure effectiveness. This guidance eliminates certain disclosure

requirements for fair value measurements: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, an entity’s policy for the timing of transfers between levels of the fair value hierarchy and an entity’s valuation processes for Level 3 fair value measurements. This guidance also adds new disclosure requirements for public entities: changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements of instruments held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop recurring and nonrecurring Level 3 fair value measurements, including how the weighted average is calculated. Furthermore, this guidance modifies certain requirements which will involve disclosing: transfers into and out of Level 3 of the fair value hierarchy, purchases and issuances of Level 3 assets and liabilities, and information about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. The Company adopted the provisions of ASU No. 2018-13 on January 1, 2020 and it did not have a material impact on the Company’s consolidated financial statements.

Deposits

12 Months Ended

Dec. 31, 2019

Deposits

Deposits

9. Deposits

As of December 31, 2019 and 2018, deposits were categorized as interest-bearing or noninterest-bearing as follows:


(dollars in thousands)	2019		2018
U.S.:
Interest-bearing	$	9,782,957	$	10,393,449
Noninterest-bearing		5,188,696		5,368,729
Foreign:
Interest-bearing		781,965		748,678
Noninterest-bearing		691,376		639,212
Total deposits	$	16,444,994	$	17,150,068

The following table presents the maturity distribution of time certificates of deposit as of December 31, 2019:


	Under		$250,000
(dollars in thousands)	$250,000		or More		Total
Three months or less	$	260,198	$	772,794	$	1,032,992
Over three through six months		215,191		242,008		457,199
Over six through twelve months		321,555		215,211		536,766
2021		98,344		55,118		153,462
2022		128,845		59,185		188,030
2023		59,069		12,167		71,236
2024		59,547		10,893		70,440
Thereafter		32		—		32
Total	$	1,142,781	$	1,367,376	$	2,510,157

Time certificates of deposit in denominations of $250,000 or more, in the aggregate, were $1.4 billion and $1.9 billion as of December 31, 2019 and 2018, respectively. Overdrawn deposit accounts are classified as loans and totaled $3.6 million and $2.4 million at December 31, 2019 and 2018, respectively.

Fair Value - Changes in Fair Value Levels and in Level 3 Liabilities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair value
Asset transfers out of Level 1 into Level 2	$ 0	$ 0
Asset transfers into (out of) Level 3	0	0
Liability transfers out of Level 1 into Level 2	0	0
Liability transfers into (out of) Level 3	0	0
Visa derivative \| Funding Swap (Visa Derivative)
Changes in Level 3 liabilities measured at fair value on a recurring basis
Balance	(2,607,000)	(5,439,000)
Total net losses included in other noninterest income	(5,354,000)	(173,000)
Settlements	3,728,000	3,005,000
Balance	(4,233,000)	(2,607,000)
Total net (losses) gains included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of September 30,	$ (5,354,000)	$ (173,000)

Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2019

Commitments and Contingent Liabilities

Commitments and Contingent Liabilities

18. Commitments and Contingent Liabilities

Contingencies

On January 27, 2017, a putative class action lawsuit was filed by a Bank customer alleging that FHB improperly charges an overdraft fee in circumstances where an account had sufficient funds to cover the transaction at the time the transaction is authorized, but not at the time the transaction is presented for payment and that this practice constitutes an unjust and deceptive trade practice and a breach of contract. The lawsuit further alleged that FHB’s practice of assessing a one-time continuous negative balance overdraft fee on accounts remaining in a negative balance for a seven-day period constitutes a usurious interest charge and an unfair and deceptive trade practice. On October 2, 2018, the parties reached an agreement in principle to resolve this class action lawsuit. In connection with the anticipated settlement agreement, the Company recorded an expense of approximately $4.1 million during the year ended December 31, 2018. In August 2019, the court approved the settlement agreement executed by the parties, pursuant to which the Company funded a $4.1 million settlement account. During the year ended December 31, 2019, the Company received insurance proceeds of $0.7 million to partially cover the litigation expense incurred in the prior year.

In addition to the litigation noted above, various other legal proceedings are pending or threatened against the Company. After consultation with legal counsel, management does not expect that the aggregate liability, if any, resulting from these proceedings would have a material effect on the Company’s consolidated financial position, results of operations or cash flows.

Financial Instruments with Off-Balance Sheet Risk

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby and commercial letters of credit which are not reflected in the consolidated financial statements.

Unfunded Commitments to Extend Credit

A commitment to extend credit is a legally binding agreement to lend funds to a customer, usually at a stated interest rate and for a specified purpose. Commitments are reported net of participations sold to other institutions. Such commitments have fixed expiration dates and generally require a fee. The extension of a commitment gives rise to credit risk. The actual liquidity requirements or credit risk that the Company will experience is expected to be lower than the contractual amount of commitments to extend credit because a significant portion of those commitments are expected to expire without being drawn upon. Certain commitments are subject to loan agreements containing covenants regarding the financial performance of the customer that must be met before the Company is required to fund the commitment. The Company uses the same credit policies in making commitments to extend credit as it does in making loans. In addition, the Company manages the potential credit risk in commitments to extend credit by limiting the total amount of arrangements, both by individual customer and in the aggregate, by monitoring the size and expiration structure of these portfolios and by applying the same credit standards maintained for all of its related credit activities. Commitments to extend credit are reported net of participations sold to other institutions of $94.1 million and $92.3 million at December 31, 2019 and 2018, respectively.

Standby and Commercial Letters of Credit

Standby letters of credit are issued on behalf of customers in connection with contracts between the customers and third parties. Under standby letters of credit, the Company assures that the third parties will receive specified funds if customers fail to meet their contractual obligations. The credit risk to the Company arises from its obligation to make payment in the event of a customer’s contractual default. Standby letters of credit are reported net of participations sold to other institutions of $9.0 million and $17.3 million at December 31, 2019 and 2018, respectively. The Company also had commitments for commercial and similar letters of credit. Commercial letters of credit are issued specifically to facilitate commerce whereby the commitment is typically drawn upon when the underlying transaction between the customer and a third-party is consummated. The maximum amount of potential future payments guaranteed by the Company is limited to the contractual amount of these letters. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Collateral held supports those commitments for which collateral is deemed necessary. The commitments outstanding as of December 31, 2019 have maturities ranging from January 2020 to May 2022. Substantially all fees received from the issuance of such commitments are deferred and amortized on a straight-line basis over the term of the commitment.

Financial instruments with off-balance sheet risk at December 31, 2019 and 2018 were as follows:


	December 31,
(dollars in thousands)	2019		2018
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	5,907,690	$	5,549,591
Standby letters of credit		181,412		204,324
Commercial letters of credit		7,334		7,535

Guarantees

The Company sells residential mortgage loans in the secondary market primarily to The Federal National Mortgage Association (“FNMA” or “Fannie Mae”) and The Federal Home Loan Mortgage Corporation (“FHLMC” or

“Freddie Mac”) that may potentially require repurchase under certain conditions. This risk is managed through the Company’s underwriting practices. The Company services loans sold to investors and loans originated by other originators under agreements that may include repurchase remedies if certain servicing requirements are not met. This risk is managed through the Company’s quality assurance and monitoring procedures. Management does not anticipate any material losses as a result of these transactions.

Lease Commitments

The Company’s lease commitments are discussed in “Note 14. Leases” in the notes to the consolidated financial statements included in Item 8. Financial Statements and Supplementary Data.

Foreign Exchange Contracts

The Company has forward foreign exchange contracts that represent commitments to purchase or sell foreign currencies at a future date at a specified price. The Company’s utilization of forward foreign exchange contracts is subject to the primary underlying risk of movements in foreign currency exchange rates and to additional counterparty risk should its counterparties fail to meet the terms of their contracts. Forward foreign exchange contracts are utilized to mitigate the Company’s risk to satisfy customer demand for foreign currencies and are not used for trading purposes. See “Note 17. Derivative Financial Instruments” in the notes to the consolidated financial statements included in Item 8. Financial Statements and Supplementary Data for more information.

Reorganization Transactions

In connection with the Reorganization Transactions as discussed in “Note 1. Organization and Summary of Significant Accounting Policies” in the notes to the consolidated financial statements included in Item 8. Financial Statements and Supplementary Data, FHI (formerly BancWest) distributed its interest in BWHI (including BOW) to BNPP so that BWHI was held directly by BNPP (BWHI is now held indirectly by BNPP through its intermediate holding company). As a result of the Reorganization Transactions that occurred on April 1, 2016, various tax or other contingent liabilities could arise related to the business of BOW, or related to the Company’s operations prior to the restructuring when it was known as BancWest, including its then wholly owned subsidiary, BOW. The Company is not able to determine the ultimate outcome or estimate the amounts of these contingent liabilities, if any, at this time.

Derivative Financial Instruments - Derivatives Not Designated as Hedges (Details) - Derivatives Not Designated as Hedging Instruments - Other noninterest income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Interest rate swaps
Impact on pretax earnings of derivatives not designated as hedges
Net Gains (Losses) on Derivatives	$ 16	$ 574	$ 819
Funding Swap (Visa Derivative)
Impact on pretax earnings of derivatives not designated as hedges
Net Gains (Losses) on Derivatives	(5,355)	(172)	(169)
Foreign exchange contracts
Impact on pretax earnings of derivatives not designated as hedges
Net Gains (Losses) on Derivatives	$ 12	$ (58)	$ 171

Transfers of Financial Assets

12 Months Ended

Dec. 31, 2019

Transfers of Financial Assets

Transfers of Financial Assets

8. Transfers of Financial Assets

The Company’s transfers of financial assets with continuing interest may include pledges of collateral to secure public deposits and repurchase agreements, FHLB and FRB borrowing capacity, automated clearing house (“ACH”) transactions and interest rate swaps.

For public deposits and repurchase agreements, the Company enters into bilateral agreements with the entity to pledge investment securities as collateral in the event of default. The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default. The counterparty has the right to sell or repledge the investment securities. The Company is required by the counterparty to maintain adequate collateral levels. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional investment securities. For transfers of assets with the FHLB and the FRB, the Company enters into bilateral agreements to pledge loans as collateral to secure borrowing capacity. For ACH transactions, the Company enters into bilateral agreements to collateralize possible daylight overdrafts. For interest rate swaps, the Company enters into bilateral agreements to pledge collateral when either party is in a negative fair value position to mitigate counterparty credit risk. Counterparties to ACH transactions, certain interest rate swaps, the FHLB and the FRB do not have the right to sell or repledge the collateral.

The carrying amounts of the assets pledged as collateral to secure public deposits, borrowing arrangements and other transactions as of December 31, 2019 and 2018 were as follows:


(dollars in thousands)	2019		2018
Public deposits	$	1,543,492	$	1,749,726
Federal Home Loan Bank		2,928,581		2,497,030
Federal Reserve Bank		953,169		957,017
ACH transactions		155,360		150,903
Interest rate swaps		43,296		28,843
Total	$	5,623,898	$	5,383,519

As the Company did not enter into reverse repurchase agreements, no collateral was accepted as of December 31, 2019 and 2018. In addition, no debt was extinguished by in-substance defeasance.

Fair Value - Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis (Details) - Impaired loans - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets with fair value adjustments on a nonrecurring basis
Total impairment losses	$ 1,000	$ 700	$ 700
Fair Value Measurements, Nonrecurring \| Level 3
Assets with fair value adjustments on a nonrecurring basis
Fair value	$ 1,502	$ 402

Leases

12 Months Ended

Dec. 31, 2019

Leases

Leases

14. Leases

The Company, as lessee, is obligated under a number of noncancelable operating leases primarily for branch premises and related real estate. Terms of such leases extend for periods up to 44 years, many of which provide for periodic adjustment of rent payments based on changes in various economic indicators. Renewal options are included in the Company’s lease liabilities and related right-of-use assets to the extent that the Company is reasonably certain to exercise such options. For all of the Company’s short-term leases (i.e., leases with an initial term of 12 months or less), the Company recognizes lease expense on a straight-line basis over the lease term. Variable lease payments are recognized in the period in which the obligation for those payments is incurred.

The Company’s branch premises leases typically require that the Company is responsible to pay for variable lease expense, primarily maintenance expense, as well as real property taxes, property insurance and sales taxes. Maintenance expense is paid to maintain common areas and covers costs including landscaping, cleaning and general maintenance. Such variable costs are typically re-evaluated by the landlord on an annual basis and are charged to the Company based on the portion of the total building premises that is occupied by the Company.

The Company subleases certain premises and real estate to third parties. The sublease portfolio consists of operating leases for space connected with three of the Company’s branch properties.

The components of the Company’s net lease expense for the year ended December 31, 2019 were as follows:


	Year Ended
(dollars in thousands)	December 31, 2019
Operating lease expense	$	9,158
Short-term lease expense		487
Variable lease expense		2,152
Finance lease expense:
Amortization of right-of-use assets		3
Interest on lease liabilities		2
Total finance lease expense		5
Less: Sublease income		(1,073)
Net lease expense	$	10,729

For the years ended December 31, 2018 and 2017, rental expense, net of sublease income, presented in accordance with Topic 840, Leases was as follows:


	Year Ended December 31,
(dollars in thousands)	2018		2017
Rental expense charged to occupancy	$	9,947	$	8,620
Less: Sublease income		903		1,342
Net rental expense charged to occupancy		9,044		7,278
Rental expense charged to equipment expense		3,679		285
Total	$	12,723	$	7,563

Other information related to the Company’s lease liabilities as of and for the year ended December 31, 2019 was as follows:


	Year Ended
(dollars in thousands)	December 31, 2019
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$	8,802
Operating cash flows paid for finance leases	$	10
Financing cash flows paid for finance leases	$	10
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	1,401
Weighted Average Remaining Lease Term
Operating leases (years)		15.7
Finance leases (years)		2.5
Weighted Average Discount Rate
Operating leases		3.36	%
Finance leases		6.78	%

Operating lease right-of-use assets were $44.3 million and finance lease right-of-use assets were not material as of December 31, 2019. Operating lease right-of-use assets and finance lease right-of use assets were recorded as a component of other assets and premises and equipment, respectively, as of December 31, 2019. Operating lease liabilities were $44.4 million and finance lease liabilities were not material as of December 31, 2019. Operating lease liabilities and finance lease liabilities were recorded as a component of other liabilities and long-term borrowings, respectively, as of December 31, 2019.

The most significant assumption related to the Company’s application of Topic 842 was the discount rate assumption. As most of the Company’s lease agreements do not provide for an implicit interest rate, the Company used the collateralized interest rate that the Company would have to pay to borrow over a similar term to estimate the Company’s lease liability as of January 1, 2019.

The following table sets forth future minimum rental payments under noncancelable operating leases with terms in excess of one year as of December 31, 2019:


	Net Operating
	Lease
(dollars in thousands)	Payments
Year ending December 31:
2020	$	8,776
2021		8,084
2022		5,453
2023		2,964
2024		2,721
Thereafter		32,227
Total future minimum lease payments		60,225
Less: Imputed interest		(15,934)
Total	$	44,291

The following table presents future minimum rental payments under operating leases with terms in excess of one year as of December 31, 2018 presented in accordance with Topic 840, “Leases”:


	Operating		Less		Net Operating
	Lease		Sublease		Lease
(dollars in thousands)	Payments		Income		Payments
Year ending December 31:
2019	$	8,780	$	903	$	7,877
2020		8,668		903		7,765
2021		7,961		892		7,069
2022		5,101		—		5,101
2023		2,632		—		2,632
Thereafter		34,638		—		34,638
Total future minimum lease payments	$	67,780	$	2,698	$	65,082

The Company has several operating leases with related parties associated with its branch premises. The lease payments to related parties were $0.3 million for the year ended December 31, 2019. The future minimum rental payments due to related parties are $0.3 million (2020), $0.3 million (2021), $0.2 million (2022), $0.2 million (2023), $0.2 million (2024), and $7.3 million thereafter.

The Company, as lessor, rents office space in its headquarters office building as well as office space located primarily in Hawaii to third party lessees. The cost and accumulated depreciation related to leased properties were $288.8 million and $141.3 million, respectively, as of December 31, 2019, and $289.2 million and $133.7 million, respectively, as of December 31, 2018. Terms of such leases, including renewal options, may be extended for up to ten years, many of which provide for periodic adjustment of rent payments based on changes in consumer or other price indices. The Company recognizes lease income on a straight-line basis over the lease term. Non-lease components, primarily consisting of costs incurred by the Company for maintenance and utilities, are recognized as income in the period in which the payments are due.

The Company recognized operating lease income related to lease payments of $5.9 million for the year ended December 31, 2019. In addition, the Company recognized $5.3 million of lease income related to variable lease payments for the year ended December 31, 2019.

Certain of the Company’s leases are with related parties for the use of space at the Company’s headquarters office building. The rental income paid by the related parties for the year ended December 31, 2019 was $0.4 million. The future minimum rental income from related parties are $0.4 million (2020), $0.4 million (2021), $0.4 million (2022), $0.4 million (2023), $0.4 million (2024), and $0.8 million thereafter.

The following table sets forth future minimum rental income under noncancelable operating leases with terms in excess of one year as of December 31, 2019:


	Minimum
	Rental
(dollars in thousands)	Income
Year ending December 31:
2020	$	6,164
2021		6,152
2022		4,431
2023		3,506
2024		2,680
Thereafter		6,511
Total	$	29,444

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 360,375	$ 396,836
Interest-bearing deposits in other banks	333,642	606,801
Investment securities	4,075,644	4,498,342
Loans held for sale	904	432
Loans and leases	13,211,650	13,076,191
Less: allowance for loan and lease losses	130,530	141,718
Net loans and leases	13,081,120	12,934,473
Premises and equipment, net	316,885	304,996
Other real estate owned and repossessed personal property	319	751
Accrued interest receivable	45,239	48,920
Bank-owned life insurance	453,873	446,076
Goodwill	995,492	995,492
Mortgage servicing rights	12,668	16,155
Other assets	490,573	446,404
Total assets	20,166,734	20,695,678
Deposits:
Interest-bearing	10,564,922	11,142,127
Noninterest-bearing	5,880,072	6,007,941
Total deposits	16,444,994	17,150,068
Short-term borrowings	400,000
Long-term borrowings	200,019	600,026
Retirement benefits payable	138,222	127,909
Other liabilities	343,241	292,836
Total liabilities	17,526,476	18,170,839
Commitments and contingent liabilities (Note 18)
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 139,917,150 / 129,928,479 as of December 31, 2019; issued/outstanding: 139,656,674 / 134,874,302 as of December 31, 2018)	1,399	1,397
Additional paid-in capital	2,503,677	2,495,853
Retained earnings	437,072	291,919
Accumulated other comprehensive loss, net	(31,749)	(132,195)
Treasury stock (9,988,671 shares as of December 31, 2019 and 4,782,372 shares as of December 31, 2018)	(270,141)	(132,135)
Total stockholders' equity	2,640,258	2,524,839
Total liabilities and stockholders' equity	$ 20,166,734	$ 20,695,678

Organization and Basis of Presentation - Subsidiary Ownership (Details)	12 Months Ended
	Dec. 31, 2019 location
First Hawaiian, Inc. (FHI)
Capitalization
Outstanding common stock owned (as a percent)	100.00%
First Hawaiian Bank (FHB)
Capitalization
Number of banking locations	58

Benefit Plans - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Amounts within accumulated other comprehensive loss that had not yet been recognized as components of net periodic benefit cost
Tax impact	$ (11,701)	$ (48,720)	$ (63,040)	$ (57,461)
Pension Benefits
Amounts within accumulated other comprehensive loss that had not yet been recognized as components of net periodic benefit cost
Net actuarial loss (gain)	40,061	41,822	43,547
Total, pretax effect	40,061	41,822
Tax impact	(10,786)	(11,260)
Ending balance in accumulated other comprehensive loss	29,275	30,562
Amounts within accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in next year
Amortization of net actuarial loss (gain)	5,753
Total to be recognized in 2020	5,753
Other Benefits
Amounts within accumulated other comprehensive loss that had not yet been recognized as components of net periodic benefit cost
Net actuarial loss (gain)	(1,582)	(2,507)	$ 248
Prior service credit	(51)	(480)
Total, pretax effect	(1,633)	(2,987)
Tax impact	440	804
Ending balance in accumulated other comprehensive loss	(1,193)	$ (2,183)
Amounts within accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost in next year
Amortization of prior service credit	(51)
Amortization of net actuarial loss (gain)	(103)
Total to be recognized in 2020	$ (154)

Investment Securities - Visa Class B Restricted Shares (Details)	12 Months Ended		96 Months Ended
	Dec. 31, 2016 USD ($) shares	Dec. 31, 2008 USD ($) shares	Dec. 31, 2015 shares	Dec. 31, 2019 USD ($) shares	Oct. 31, 2019 USD ($)	Sep. 27, 2019	Dec. 31, 2018 USD ($) shares	Jul. 31, 2018 USD ($)	Jun. 28, 2018	Dec. 31, 2017
Visa \| Class B restricted shares
Visa Class B Restricted Shares
Historical cost included in the balance sheets		$ 0
Net realized gain related to the sale of stock	$ 22,700,000
Number of shares sold \| shares	274,000		0
Estimated liability that was subsequently paid to the buyer					$ 300,000
Shares held \| shares				120,000			120,000
Cost basis				$ 0			$ 0
Funding Swap (Visa Derivative) \| Class B restricted shares
Visa Class B Restricted Shares
Conversion rate						1.6228			1.6298	1.6483
Funding Swap (Visa Derivative) \| Visa
Visa Class B Restricted Shares
Estimated liability that was subsequently paid to the buyer								$ 700,000
Conversion rate						1.6228			1.6298	1.6483
Visa \| Class B restricted shares
Visa Class B Restricted Shares
Stock received in initial public offering (in shares) \| shares		394,000
Visa \| Funding Swap (Visa Derivative)
Visa Class B Restricted Shares
Estimated liability that was subsequently paid to the buyer					$ 300,000

Derivative Financial Instruments - Cash Flow Hedges (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) derivative	Dec. 31, 2017 USD ($) derivative	Dec. 31, 2019 USD ($) derivative
Cash Flow Hedges
Cash flow hedges
Number of derivatives carried \| derivative	0		0
Effect of cash flow hedging relationships
Pretax gains recognized in other comprehensive income on derivatives (effective portion)	$ 1,475	$ 2,473
Pretax gain reclassified from accumulated other comprehensive income	(7,558)
Interest rate swaps
Cash flow hedges
Recognized expenses related to the ineffective portion		100
Interest rate swaps \| Cash Flow Hedges
Cash flow hedges
Net interest expense on derivative	$ 1,200	$ 2,400
Minimum \| Interest rate swaps \| Cash Flow Hedges
Cash flow hedges
Fixed interest rate (as a percent)	2.98%	2.98%
Maximum \| Interest rate swaps \| Cash Flow Hedges
Cash flow hedges
Fixed interest rate (as a percent)	3.03%	3.03%
Derivatives designated as hedging instruments \| Interest rate swaps
Cash flow hedges
Notional amounts	$ 41,317		$ 23,190
Derivatives designated as hedging instruments \| Interest rate swaps \| Cash Flow Hedges
Cash flow hedges
Number of derivatives carried \| derivative	2	2
Notional amounts	$ 150,000	$ 150,000

Investment Securities - Proceeds from Calls and Sales, Realized Gains and Losses and Interest Income (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Proceeds from calls and sales of investment securities
Proceeds from calls of available for sale securities	$ 63,000,000.0
Proceeds from sales of available for sale securities	1,000,000,000.0
Debt Securities, Available-for-sale, Realized Gain (Loss) [Abstract]
Gross realized gains on sales of investment securities	500,000	0	0
Gross realized losses on sales of investment securities	3,200,000	0	0
Income tax benefit related to net realized loss on sale of investment securities	(700,000)
Interest income from taxable and nontaxable investment securities
Taxable interest income	92,500,000	106,600,000	102,300,000
Non-taxable interest income		$ 500,000	$ 100,000

Long-Term Borrowings

12 Months Ended

Dec. 31, 2019

Long-Term Borrowings

Long-Term Borrowings

11. Long-Term Borrowings

Long-term borrowings consisted of the following at December 31, 2019 and 2018:



(dollars in thousands)	2019		2018
Finance lease	$	19	$	26
FHLB fixed-rate advances⁽¹⁾		200,000		600,000
Total long-term borrowings	$	200,019	$	600,026

(1)	Interest is payable monthly.

As of December 31, 2019, the Company’s long-term borrowings included $200.0 million in FHLB fixed-rate advances with a weighted average interest rate of 2.73% and maturity dates ranging from 2023 to 2024. The FHLB fixed-rate advances require monthly interest-only payments with the principal amount due on the maturity date. The FHLB fixed-rate advances and remaining borrowing capacity were secured by residential real estate loan collateral as of December 31, 2019 and 2018. See “Note 8. Transfers of Financial Assets” in the notes to the consolidated financial statements included in Item 8. Financial Statements and Supplementary Data for more information.

At December 31, 2019 and 2018, the Company’s long-term borrowings included a finance lease obligation with a 6.78%annual interest rate that matures in 2022.

At December 31, 2019, future contractual principal payments and maturities on long-term borrowings were as follows:


	Principal
(dollars in thousands)	Payments
Year ending December 31:
2020	$	9
2021		10
2022		—
2023⁽¹⁾		100,000
2024⁽²⁾		100,000
Total	$	200,019

(1)	FHLB fixed-rate advance callable on December 4, 2020 with an interest rate of 2.80%

(2)	FHLB fixed-rate advance callable on January 15, 2021 with an interest rate of 2.65%

Organization and Basis of Presentation - VIEs and Cash and Due from Banks (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Variable Interest Entities
Period over which affordable housing tax credits are recognized	10 years
Cash and Due from Banks
Average cash reserves required with Federal Reserve Bank	$ 67.4	$ 57.6
Included in other liabilities \| VIEs, not primary beneficiary
Variable Interest Entities
Unfunded commitments to fund low-income housing partnerships	$ 102.8	$ 36.0

Earnings per Share

12 Months Ended

Dec. 31, 2019

Earnings per Share

Earnings per Share

20. Earnings per Share

The Company made no adjustments to net income for the purposes of computing earnings per share and there were no antidilutive securities.

The computations of basic and diluted earnings per share were as follows for the years ended December 31, 2019, 2018 and 2017:


	Year Ended December 31,
(dollars in thousands, except shares and per share amounts)	2019		2018		2017
Numerator:
Net income	$	284,392	$	264,394	$	183,682

Denominator:
Basic: weighted-average shares outstanding		133,076,489		136,945,134		139,560,305
Add: weighted-average equity-based awards		310,668		166,286		96,688
Diluted: weighted-average shares outstanding		133,387,157		137,111,420		139,656,993

Basic earnings per share	$	2.14	$	1.93	$	1.32
Diluted earnings per share	$	2.13	$	1.93	$	1.32

Organization and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Organization and Summary of Significant Accounting Policies

Organization and Summary of Significant Accounting Policies

FIRST HAWAIIAN, INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Summary of Significant Accounting Policies

Basis of Presentation

Transition to an Independent Public Company

Prior to our initial public offering in August 2016 (“IPO”), we were an indirect wholly owned subsidiary of BNP Paribas (“BNPP”), a global financial institution based in France.

Use of Estimates in the Preparation of Financial Statements

Although these estimates are based on management’s best knowledge of current events, actual results may differ from these estimates.

Variable Interest Entities

Cash and Due from Banks

Interest-bearing Deposits in Other Banks

Investment Securities

Loans Held for Sale

Loans and Leases

Non-Performing Loans and Leases

Troubled Debt Restructurings

Impaired Loans

Allowance for Loan and Lease Losses

●

Trends in the volume and severity of delinquent loans and leases, nonaccrual loans and leases, troubled debt restructurings and other loan and lease modifications;

●

Trends in the quality of risk management and loan administration practices including findings of internal and external reviews of loans and the effectiveness of collection practices;

●

Changes in the quality of the Company’s risk identification process and loan review system;

●

Changes in lending policies and procedures including underwriting standards and collection, charge-off and recovery practices;

●

Changes in the nature and volume of the loan and lease portfolio;

●

Changes in concentrations within the loan and lease portfolio;

●

Changes in national and local economic business conditions, including the condition of various market segments.

Reserve for Unfunded Commitments

Provision for Loan and Lease Losses

Premises and Equipment

Operating lease rental income for leased assets, primarily premises, is recognized on a straight-line basis as an offset to rental expense.

Other Real Estate Owned and Repossessed Personal Property

Goodwill

Mortgage Servicing Rights

Non-Marketable Equity Securities

Pension and Other Postretirement Benefit Plans

Income Taxes

Derivative Instruments and Hedging Activities

Fair Value Measurements

Stock-Based Compensation

Treasury Stock

Earnings per Share

Advertising and Marketing Costs

Accounting Standards Adopted in 2019

Recent Accounting Pronouncements

The following ASUs have been issued by the FASB and are applicable to the Company in future reporting periods.

Leases - Future Minimum Rental Payments, Presented in Accordance with Topic 840 (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Operating Lease Payments
2019	$ 8,780
2020	8,668
2021	7,961
2022	5,101
2023	2,632
Thereafter	34,638
Total future minimum lease payments	67,780
Less Sublease Income
2019	903
2020	903
2021	892
Total future minimum lease payments	2,698
Net Operating Lease Payments
2019	7,877
2020	7,765
2021	7,069
2022	5,101
2023	2,632
Thereafter	34,638
Total future minimum lease payments	$ 65,082

Investment Securities

12 Months Ended

Dec. 31, 2019

Investment Securities

Investment Securities

3. Investment Securities

As of December 31, 2019 and 2018, investment securities consisted predominantly of the following investment categories:

U.S. Treasury and debt securities – includes U.S. Treasury notes and debt securities issued by government-sponsored enterprises.

Mortgage-backed securities – includes securities backed by notes or receivables secured by mortgage assets with cash flows based on actual or scheduled payments.

Collateralized mortgage obligations – includes securities backed by a pool of mortgages with cash flows distributed based on certain rules rather than pass through payments.

Debt securities issued by states and political subdivisions – includes general obligation bonds issued by state and local governments.

As of December 31, 2019 and 2018, all of the Company’s investment securities were classified as debt securities and available-for-sale. Amortized cost and fair value of securities as of December 31, 2019 and 2018 were as follows:


	2019								2018
	Amortized		Unrealized		Unrealized		Fair		Amortized		Unrealized		Unrealized		Fair
(dollars in thousands)	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. Treasury securities	$	29,832	$	56	$	—	$	29,888	$	389,470	$	—	$	—	$	389,470
Government-sponsored enterprises debt securities		101,697		19		(277)		101,439		248,372		—		(6,778)		241,594
Mortgage-backed securities:
Residential - Government agency		290,131		2,224		(1,146)		291,209		426,710		—		(15,174)		411,536
Residential - Government-sponsored enterprises		395,039		6,126		(1,673)		399,492		156,056		85		(5,294)		150,847
Commercial - Government-sponsored enterprises		101,798		555		(634)		101,719		—		—		—		—
Collateralized mortgage obligations:
Government agency		2,390,143		7,483		(16,348)		2,381,278		2,779,620		—		(97,171)		2,682,449
Government-sponsored enterprises		772,023		2,505		(3,909)		770,619		620,337		—		(17,745)		602,592
Debt securities issued by states and political subdivisions		—		—		—		—		19,854		—		—		19,854
Total available-for-sale securities	$	4,080,663	$	18,968	$	(23,987)	$	4,075,644	$	4,640,419	$	85	$	(142,162)	$	4,498,342

Proceeds from call and sales of investment securities were $63.0 million and $1.0 billion for the year ended December 31, 2019. Proceeds from both calls and sales of investment securities were nil for both the years ended December 31, 2018 and 2017. The Company recorded gross realized gains of $0.5 million and gross realized losses of $3.2 million for the year ended December 31, 2019. The Company recorded no gross realized gains and no gross realized losses for both the years ended December 31, 2018 and 2017. The income tax benefit related to the Company’s net realized loss on the sale of investment securities was $0.7 million for the year ended December 31, 2019. The income tax expense related to the Company’s net realized gains on the sale of investment securities was nil during both the years ended December 31, 2018 and 2017. Gains and losses realized on sales of securities are determined using the specific identification method.

Interest income from taxable investment securities was $92.5 million, $106.6 million and $102.3 million for the years ended December 31, 2019, 2018 and 2017, respectively. Interest income from non-taxable investment securities was nil, $0.5 million and $0.1 million for the years ended December 31, 2019, 2018 and 2017, respectively.

The amortized cost and fair value of debt securities issued by the U.S. Treasury and government-sponsored enterprises as of December 31, 2019, by contractual maturity, are shown below. Mortgage-backed securities and collateralized mortgage obligations are disclosed separately in the table below as remaining expected maturities will differ from contractual maturities as borrowers have the right to prepay obligations.


	December 31, 2019
	Amortized		Fair
(dollars in thousands)	Cost		Value
Due in one year or less	$	29,832	$	29,888
Due after one year through five years		101,697		101,439
Due after five years through ten years		—		—
Due after ten years		—		—
		131,529		131,327

Mortgage-backed securities:
Residential - Government agency		290,131		291,209
Residential - Government-sponsored enterprises		395,039		399,492
Commercial - Government-sponsored enterprises		101,798		101,719
Total mortgage-backed securities		786,968		792,420
Collateralized mortgage obligations:
Government agency		2,390,143		2,381,278
Government-sponsored enterprises		772,023		770,619
Total collateralized mortgage obligations		3,162,166		3,151,897
Total available-for-sale securities	$	4,080,663	$	4,075,644

At December 31, 2019, pledged securities totaled $1.8 billion, of which $1.5 billion was pledged to secure public deposits and $242.3 million was pledged to secure other financial transactions. At December 31, 2018, pledged securities totaled $2.0 billion, of which $1.7 billion was pledged to secure public deposits and $232.7 million was pledged to secure other financial transactions.

The Company held no securities of any single issuer, other than debt securities issued by the U.S. government, government agencies and government-sponsored enterprises, which were in excess of 10% of stockholders’ equity as of December 31, 2019 and 2018.

The following table presents the unrealized gross losses and fair values of securities in the available-for-sale portfolio by length of time that the 118 and 154 individual securities in each category have been in a continuous loss position as of December 31, 2019 and 2018, respectively. The unrealized losses on investment securities were attributable to market conditions.

Time in Continuous Loss as of December 31, 2019

Less Than 12 Months

12 Months or More

Total

Unrealized

(dollars in thousands)

Losses

Fair Value

Losses

Fair Value

Losses

Fair Value

Government-sponsored enterprises debt securities

(277)

49,716

—

(277)

49,716

Mortgage-backed securities:

Residential - Government agency

—

(1,146)

109,614

(1,146)

109,614

Residential - Government-sponsored enterprises

(115)

76,481

(1,558)

109,025

(1,673)

185,506

Commercial - Government-sponsored enterprises

(634)

38,062

—

(634)

38,062

Collateralized mortgage obligations:

Government agency

(8,049)

969,762

(8,299)

565,764

(16,348)

1,535,526

Government-sponsored enterprises

(583)

180,785

(3,326)

209,752

(3,909)

390,537

Total available-for-sale securities with unrealized losses

(9,658)

1,314,806

(14,329)

994,155

(23,987)

2,308,961


	Time in Continuous Loss as of December 31, 2018
	Less Than 12 Months				12 Months or More				Total
	Unrealized				Unrealized				Unrealized
(dollars in thousands)	Losses		Fair Value		Losses		Fair Value		Losses		Fair Value
Government-sponsored enterprises debt securities	$	—	$	—	$	(6,778)	$	157,939	$	(6,778)	$	157,939
Mortgage-backed securities:
Residential - Government agency		—		—		(15,174)		373,891		(15,174)		373,891
Residential - Government-sponsored enterprises		(1)		172		(5,293)		125,869		(5,294)		126,041
Collateralized mortgage obligations:
Government agency		—		—		(97,171)		2,475,532		(97,171)		2,475,532
Government-sponsored enterprises		—		—		(17,745)		486,175		(17,745)		486,175
Total available-for-sale securities with unrealized losses	$	(1)	$	172	$	(142,161)	$	3,619,406	$	(142,162)	$	3,619,578

Other-Than-Temporary Impairment

At December 31, 2019, the Company did not have any securities with the intent to sell and determined it was more likely than not that the Company would not be required to sell the securities prior to recovery of the amortized cost basis. At December 31, 2018, the Company had the intent to sell 48 securities with an aggregate amortized cost basis of $898.2 million. As a result, the Company recorded an OTTI write-down of $24.1 million for the year ended December 31, 2018. The OTTI write-down represented the entire difference between the amortized cost basis and fair value of the securities as of December 31, 2018. In January 2019, the Company completed its sale of the 48 securities and recorded an additional loss of $2.6 million.

As the Company had the intent and ability to hold the remaining securities in an unrealized loss position as of December 31, 2019 and 2018, each security with an unrealized loss position in the above tables has been further assessed to determine if a credit loss exists. If it is probable that the Company will not collect all amounts due according to the contractual terms of an investment security, an OTTI is considered to have occurred. In determining whether a credit loss exists, the Company estimates the present value of future cash flows expected to be collected from the investment security. If the present value of future cash flows is less than the amortized cost basis of the security, an OTTI exists. As of December 31, 2019 and 2018, the Company did not expect any credit losses in its debt securities and no OTTI related to credit losses were recognized on securities during the years ended December 31, 2019 and 2018. As noted above, the only OTTI losses recognized for the year ended December 31, 2018 were due to non-credit related factors.

The following table provides a detail of the OTTI write-downs included in earnings for the year ended December 31, 2018:


	Year Ended
(dollars in thousands)	December 31, 2018
U.S. Treasury securities	$	(13,634)
Government-sponsored enterprises debt securities		(1,344)
Mortgage-backed securities:
Residential - Government agency		(146)
Residential - Government-sponsored enterprises		(763)
Collateralized mortgage obligations:
Government agency		(5,064)
Government-sponsored enterprises		(2,711)
Debt securities issued by states and political subdivisions		(423)
Total OTTI write-downs included in earnings	$	(24,085)

Visa Class B Restricted Shares

In 2008, the Company received 394,000 Visa Class B restricted shares as part of Visa’s initial public offering. Visa Class B restricted shares are not currently convertible to publicly traded Visa Class A common shares, and only transferable in limited circumstances, until the settlement of certain litigation which are indemnified by Visa members, including the Company. As there are existing transfer restrictions and the outcome of the aforementioned litigation is uncertain, these shares were included in the consolidated balance sheets at their historical cost of $0.

In 2016, the Company recorded a $22.7 million net realized gain related to the sale of 274,000 Visa Class B restricted shares. Concurrent with the sale of the Visa Class B restricted shares, the Company entered into an agreement with the buyer that requires payment to the buyer in the event Visa reduces each member bank’s Class B conversion rate to unrestricted Class A common shares. On June 28, 2018, Visa additionally funded its litigation escrow account, thereby

reducing each member bank’s Class B conversion rate to unrestricted Class A common shares. Accordingly, on July 5, 2018, Visa announced a decrease in conversion rate from 1.6483 to 1.6298 effective June 28, 2018. In July 2018, the Company made a payment of approximately $0.7 million to the buyer as a result of the reduction in the Visa Class B conversion rate. On September 27, 2019, Visa additionally funded its litigation escrow account, thereby further reducing each member bank’s Class B conversion rate to unrestricted Class A common shares. Accordingly, on September 30, 2019, Visa announced a decrease in conversion rate from 1.6298 to 1.6228, effective September 27, 2019. In October 2019, the Company made a payment of approximately $0.3 million to the buyer as a result of the reduction in the Visa Class B conversion rate. See “Note 17. Derivative Financial Instruments” in the notes to the consolidated financial statements included in Item 8. Financial Statements and Supplementary Data for more information.

The Company held approximately 120,000 Visa Class B restricted shares as of both December 31, 2019 and 2018. These shares continued to be carried at $0 cost basis during each of the respective periods.

Organization and Basis of Presentation - Transition to an Independent Public Company (Details) - First Hawaiian, Inc. (FHI) - USD ($)				1 Months Ended				12 Months Ended
	Feb. 01, 2019	Feb. 17, 2017	Aug. 09, 2016	Sep. 30, 2018	Aug. 31, 2018	Jun. 30, 2018	May 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reorganization Transactions
Outstanding common stock owned (as a percent)								100.00%
BNP Paribas (BNPP)
Reorganization Transactions
Outstanding common stock owned after sales of shares (as a percent)	0.00%
Initial public offering \| BNP Paribas (BNPP)
Reorganization Transactions
Number of shares sold			24,250,000
Secondary offering \| BNP Paribas (BNPP)
Reorganization Transactions
Number of shares sold		28,750,000		20,000,000	20,000,000	16,830,000	16,830,000
Share repurchase agreements \| BNP Paribas (BNPP)
Reorganization Transactions
Number of shares sold					1,801,801		2,968,069
Completion of public offering
Reorganization Transactions
Proceeds from the sales of shares								$ 0	$ 0	$ 0
Completion of public offering \| BNP Paribas (BNPP)
Reorganization Transactions
Number of shares sold	24,859,750

Deposits - Interest-bearing or Noninterest-bearing (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
U.S.:
Interest-bearing	$ 9,782,957	$ 10,393,449
Noninterest-bearing	5,188,696	5,368,729
Foreign:
Interest-bearing	781,965	748,678
Noninterest-bearing	691,376	639,212
Total deposits	$ 16,444,994	$ 17,150,068

Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2019

Regulatory Capital Requirements

Schedule of regulatory capital ratios


					First Hawaiian				Minimum		Well-
	First Hawaiian, Inc.				Bank				Capital		Capitalized
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Ratio⁽¹⁾		Ratio⁽¹⁾
December 31, 2019:
Common equity tier 1 capital to risk-weighted assets	$	1,676,515	11.88	%	$	1,654,304	11.72	%	4.50	%	6.50	%
Tier 1 capital to risk-weighted assets		1,676,515	11.88	%		1,654,304	11.72	%	6.00	%	8.00	%
Total capital to risk-weighted assets		1,807,645	12.81	%		1,785,434	12.65	%	8.00	%	10.00	%
Tier 1 capital to average assets (leverage ratio)		1,676,515	8.79	%		1,654,304	8.67	%	4.00	%	5.00	%

December 31, 2018:
Common equity tier 1 capital to risk-weighted assets	$	1,661,542	11.97	%	$	1,658,172	11.94	%	4.50	%	6.50	%
Tier 1 capital to risk-weighted assets		1,661,542	11.97	%		1,658,172	11.94	%	6.00	%	8.00	%
Total capital to risk-weighted assets		1,803,860	12.99	%		1,800,490	12.97	%	8.00	%	10.00	%
Tier 1 capital to average assets (leverage ratio)		1,661,542	8.72	%		1,658,172	8.70	%	4.00	%	5.00	%

(1)	As defined by the regulations issued by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the FDIC.

Income Taxes - Reorganization Transactions - (Details) - USD ($) $ in Thousands		12 Months Ended
	Apr. 01, 2016	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income taxes
Current tax receivables related to transactions prior to Reorganization Transactions		$ 93,100	$ 93,100
Unrecognized tax positions		118,100	117,300
Indemnification receivable		25,000	24,200
Total state and local distribution taxes reported		92,100
Capital Distributions				$ 2,118
Net adjustments to pre-reorganization indemnification receivables or payables and unrecognized tax benefits			$ 1,500	$ 3,900
Reorganization Transactions on April 1, 2016
Income taxes
Current tax receivables recorded	$ 72,800
Unrecognized tax positions	116,600
Indemnification payable	28,600
Certain tax related liabilities incurred	95,400
Expected federal tax benefit on distribution taxes	$ 33,400
Capital Distributions		$ 2,100

Stock-Based Compensation

12 Months Ended

Dec. 31, 2019

Stock-Based Compensation

Stock-Based Compensation

21. Stock-Based Compensation

The Company has several stock-based compensation plans that allow for grants of restricted stock, restricted shares, performance share units, performance shares and restricted stock units to its employees and non-employee directors. The Company’s stock-based compensation plans are administered by the Compensation Committee of the Board of Directors. For the years ended December 31, 2019, 2018 and 2017, stock-based compensation expense was $7.8 million, $6.9 million and $3.1 million, respectively, and the related income tax benefit was $2.0 million, $1.8 million and $1.6 million, respectively. For the years ended December 31, 2019, 2018 and 2017, all common stock issuances in connection with stock-based compensation arrangements were issued from unissued shares.

As of December 31, 2019, total shares authorized under the Company’s stock-based compensation plan for employees were 5.6 million shares, of which 4.3 million shares were available for future grants. As of December 31, 2019, total shares authorized under the 2016 Non-Employee Director Plan were 75,000 shares, of which 34,842 shares were available for future grants.

Restricted Share Awards

Restricted share awards (“Restricted Stock”) provide grantees with rights to shares of common stock contingent upon completion of a service period. Restricted Stock generally vests and any restrictions will lapse over a period of three years in equal annual installments on each of the first, second and third anniversaries of the grant date, provided that the grantee remain continuously employed through the applicable vesting date, subject to certain exceptions. Grantees have the right to receive all dividends without restrictions at the times and in the manner paid to shareholders generally. The fair value of Restricted Stock is determined based on the closing price of FHI’s common stock on the date of grant. The Company recognizes compensation expense related to Restricted Stock on a straight-line basis over the vesting period for service-based awards.

The following presents the Company’s Restricted Stock activity for the year ended December 31, 2019:


			Weighted
	Number		Average Grant
	of Shares		Date Fair Value
Unvested as of December 31, 2018	—	$	—
Granted	162,550		27.06
Vested	(11,239)		27.37
Forfeited	(11,593)		27.04
Unvested as of December 31, 2019	139,718	$	27.04

For the year ended December 31, 2019, the Company granted 162,550 shares of Restricted Stock with a weighted-average grant date fair value of $27.06 to key employees. The total grant date fair value of Restricted Stock that vested for the year ended December 31, 2019 was $0.3 million. Unrecognized compensation expense related to unvested Restricted Stock was $2.9 million and nil as of December 31, 2019 and 2018, respectively. The unrecognized compensation expense as of December 31, 2019 is expected to be recognized over a weighted average vesting period of 1.3 years.

There were no shares of Restricted Stock granted for the years ended December 31, 2018 and 2017.

Performance Share Units and Performance Share Awards

Performance share units (“PSUs”) and performance share awards (“PSAs”) (collectively, “Performance Awards”) are an award of units or shares in which the recipient’s rights in the units or shares are contingent on the achievement of pre-established performance goals. At the end of the performance period, the Compensation Committee will determine to what extent the performance goals originally outlined when the Performance Awards were granted have been achieved. Depending on the level of performance achieved, 0-100% of the original grant (target number) of PSUs will be earned and will vest and 0-200% of the original grant (target number) of PSAs will be earned and will vest. All remaining unvested PSUs or PSAs will be immediately forfeited. Employees must be continuously employed by the Company from the grant date through the applicable vesting date, with any unvested Performance Awards being forfeited upon termination of employment, subject to certain exceptions. Following vesting, the Company will issue one share of FHI common stock for each vested PSU and evidence of ownership of one share of FHI common stock for each vested PSA. The fair value of

Performance Awards is estimated based on the use of a Monte Carlo simulation or based on the closing price of FHI’s common stock on the date of grant and is amortized on a straight-line basis over the vesting period. For PSUs, grantees have no voting rights until the shares of common stock underlying vested PSUs are delivered to the grantee. Conversely, for PSAs, grantees have full voting rights as of the grant date.

The Performance Awards are governed by the Company’s Long-Term Incentive Plan (the “LTIP”), which is designed to reward selected key executives for their individual performance and the Company’s performance measured over multi-year performance cycles. Awards related to the LTIP provide for equity-based awards based on the Company’s profitability and market conditions that are based on the Company’s performance relative to peer groups over a three-year performance period.

The following presents the Company’s Performance Award activity for the years ended December 31, 2019, 2018 and 2017, which includes the PSUs based on 100% target performance and the PSAs based on 200% maximum performance:


			Weighted
	Number		Average Grant
	of Shares		Date Fair Value
Unvested as of December 31, 2016	321,612	$	29.11
Granted	244,218		30.44
Vested	(38,522)		24.41
Forfeited	(21,257)		33.20
Unvested as of December 31, 2017	506,051	$	30.82
Granted	277,197		22.39
Vested	(229,809)		32.17
Forfeited	(48,942)		30.52
Unvested as of December 31, 2018	504,497	$	25.93
Granted	310,696		27.04
Vested	(36,342)		24.51
Forfeited	(83,535)		26.37
Unvested as of December 31, 2019	695,316	$	26.46

For the years ended December 31, 2019, 2018 and 2017, the Company granted 310,696, 277,197 and 209,374 Performance Awards, respectively, to key employees. The Company granted these Performance Awards in connection with its LTIP for the three-year performance periods which began on January 1, 2019, 2018 and 2017. These awards have performance conditions that are based on the Company’s profitability and market conditions that are based on the Company’s performance relative to peer groups.

For the year ended December 31, 2016, the Company granted 115,566 PSUs in connection with its IPO. One-third of these PSUs vested on each of the first, second and third anniversaries of the IPO date. However, transfer restrictions remained on these shares for six months following the vesting date. The performance condition related to these PSUs was based on the Company’s profitability in the fiscal years immediately preceding the vesting dates.

The total grant date fair value of Performance Awards that vested for the years ended December 31, 2019, 2018 and 2017 was $0.9 million, $7.4 million and $0.9 million, respectively. Unrecognized compensation expense related to unvested Performance Shares was $5.6 million, $6.2 million and $4.3 million as of December 31, 2019, 2018 and 2017, respectively. The unrecognized compensation expense as of December 31, 2019 is expected to be recognized over a weighted average vesting period of 1.5 years.

Restricted Stock Units

Restricted stock units (“RSUs”) are an award of units that correspond in number and value to a specified number of shares of FHI’s common stock that are subject to vesting requirements, including certain service conditions, and transferability restrictions. RSUs do not represent actual ownership of common stock and grantees have no voting rights until the shares of common stock underlying the RSUs are delivered. Following vesting, the Company will issue one share of FHI common stock for each vested RSU. The fair value of RSUs is valued based on the closing price of FHI’s common stock on the date of grant and is amortized on a straight-line basis over the vesting period.

The following presents the Company’s RSU activity for the years ended December 31, 2019, 2018 and 2017:


			Weighted
	Number		Average Grant
	of Shares		Date Fair Value
Unvested as of December 31, 2016	5,379	$	24.41
Granted	14,506		29.74
Vested	(8,379)		26.77
Forfeited	—		—
Unvested as of December 31, 2017	11,506	$	29.74
Granted	47,094		28.64
Vested	(9,839)		32.31
Forfeited	—		—
Unvested as of December 31, 2018	48,761	$	28.60
Granted	20,418		26.50
Vested	(22,452)		28.37
Forfeited	(1,944)		28.29
Unvested as of December 31, 2019	44,783	$	27.82

For the year ended December 31, 2019, the Company granted 15,918 RSUs to non-employee directors with a weighted-average grant date fair value of $26.38 and granted 4,500 RSUs to employees with a weighted average grant date fair value of $26.92. For the year ended December 31, 2018, the Company granted 11,799 RSUs to non-employee directors with a weighted-average grant date fair value of $27.89 and granted 35,295 RSUs to employees with a weighted average grant date fair value of $28.89. For the year ended December 31, 2017, the Company granted 9,006 RSUs to non-employee directors with a weighted-average grant date fair value of $30.19 and granted 5,500 RSUs to employees with a weighted average grant date fair value of $28.97. The awards will vest on various dates.

The total grant date fair value of RSUs that vested during the years ended December 31, 2019, 2018 and 2017 was $0.6 million, $0.3 million and $0.2 million, respectively. Unrecognized compensation expense related to unvested RSUs was $0.9 million, $1.1 million and $0.2 million as of December 31, 2019, 2018 and 2017, respectively. The unrecognized compensation expense as of December 31, 2019 is expected to be recognized over a weighted average vesting period of 1.0 years.

For all awards of PSUs, PSAs, and RSUs, dividend equivalents will accrue from the date of grant and the Company, upon delivery of the common stock, with respect to the vested PSUs and RSUs, and evidence of ownership of the shares, with respect to the vested PSAs, will pay to each grantee a cash amount equal to the product of all cash dividends paid on a share of common stock from the grant date to such delivery date and the number of shares of common stock underlying such vested PSUs, PSAs, and RSUs, as applicable, on such delivery date.

Employee Stock Purchase Plan

The Company also has an employee stock purchase plan (“ESPP”) which permits employees to periodically purchase Company stock on a payroll deduction basis. Participant purchases through the ESPP receive a discount of 5% from the closing price of FHI’s common stock on the exercise date. Participants are required to adhere to a two-year holding period with regards to shares purchased through the ESPP. The ESPP has been determined to be non-compensatory in nature. As a result, the Company expects that expenses related to the ESPP will not be material. As of December 31, 2019, total shares authorized under the Company’s ESPP were 600,000 shares. The Company issued 12,341 shares and 15,961 shares of common stock to employee participants in January 2018 and 2017, respectively, which resulted in 571,698 shares of common stock authorized for future purchases.

Leases - Lease Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$ 8,802
Operating cash flows paid for finance leases	10
Financing cash flows paid for finance leases	10	$ 10	$ 10
Right-of-use assets obtained in exchange for new lease obligations, Operating leases	$ 1,401
Weighted Average Remaining Lease Term, Operating leases (years)	15 years 8 months 12 days
Weighted Average Remaining Lease Term, Finance leases (years)	2 years 6 months
Weighted Average Discount Rate, Operating leases	3.36%
Weighted Average Discount Rate, Finance leases	6.78%
Operating lease right-of-use assets	$ 44,300
Other assets	us-gaap:OtherAssetsMember
Finance lease right-of use assets	$ 0
Premises and equipment	fhb:PremisesAndEquipmentMember
Operating lease liabilities	$ 44,400
Other liabilities	us-gaap:OtherLiabilitiesMember
Finance lease liabilities	$ 19	$ 26
Long-term borrowings	us-gaap:LongTermDebtMember

Stock-Based Compensation - Performance Share Units and Performance Share Awards (Details) $ / shares in Units, $ in Millions			12 Months Ended
	Jan. 01, 2018 $ / shares shares	Jan. 01, 2017 $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 $ / shares shares
Stock-based compensation
Stock-based compensation expense \| $			$ 7.8	$ 6.9	$ 3.1
Period for recognition of unrecognized compensation expense			1 year 3 months 18 days
Performance Share Units
Stock-based compensation
Ratio of common stock for each vested award			1
Number of Shares
Unvested as of beginning of period (in shares)	506,051	321,612	504,497	506,051	321,612
Granted (in shares)			310,696	277,197	244,218
Vested (in shares)			(36,342)	(229,809)	(38,522)
Forfeited (in shares)			(83,535)	(48,942)	(21,257)
Unvested as of end of period (in shares)			695,316	504,497	506,051	321,612
Weighted Average Grant Date Fair Value
Unvested as of beginning of period (in dollars per share) \| $ / shares	$ 30.82	$ 29.11	$ 25.93	$ 30.82	$ 29.11
Granted (in dollars per share) \| $ / shares			27.04	22.39	30.44
Vested (in dollars per share) \| $ / shares			24.51	32.17	24.41
Forfeited (in dollars per share) \| $ / shares			26.37	30.52	33.20
Unvested as of end of period (in dollars per share) \| $ / shares			$ 26.46	$ 25.93	$ 30.82	$ 29.11
Stock-based compensation
Unrecognized compensation expense \| $			$ 5.6	$ 6.2	$ 4.3
Period for recognition of unrecognized compensation expense			1 year 6 months
Total fair value of vested shares (in dollars) \| $			$ 0.9	$ 7.4	$ 0.9
Performance Share Units \| Key employees
Number of Shares
Granted (in shares)			310,696	277,197	209,374
Minimum
Stock-based compensation
Performance achieved, percentage of PSUs earned and vested			0
Performance achieved, percentage of PSAs earned and vested			0
Maximum
Stock-based compensation
Performance achieved, percentage of PSUs earned and vested			100
Performance achieved, percentage of PSAs earned and vested			200
IPO \| Performance Share Units
Number of Shares
Granted (in shares)						115,566
Stock-based compensation
Period following vesting date for lapsing of transfer restrictions					6 months
IPO \| Performance Share Units \| Tranche one
Stock-based compensation
Vesting (as a percent)						33.33%
IPO \| Performance Share Units \| Tranche two
Stock-based compensation
Vesting (as a percent)						33.33%
IPO \| Performance Share Units \| Tranche three
Stock-based compensation
Vesting (as a percent)						33.33%
LongTerm Incentive Plan
Stock-based compensation
Performance period	3 years	3 years	3 years

Commitments and Contingent Liabilities - Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financial instruments with off-balance sheet risk
Contract amount	$ 6,100,000	$ 5,800,000
Commitments to extend credit
Financial instruments with off-balance sheet risk
Contract amount	5,907,690	5,549,591
Standby letters of credit
Financial instruments with off-balance sheet risk
Contract amount	181,412	204,324
Commercial Letters of credit
Financial instruments with off-balance sheet risk
Contract amount	$ 7,334	$ 7,535

Derivative Financial Instruments - Fair Value Hedges (Details) $ in Thousands	Dec. 31, 2019 USD ($) derivative	Dec. 31, 2018 USD ($)
Fair value hedges
Fair hedges carried
Fixed interest rate (as a percent)	2.90%
Interest rate swaps \| Fair value hedges
Fair hedges carried
Number of derivatives carried \| derivative	1
Derivatives designated as hedging instruments \| Interest rate swaps
Fair hedges carried
Notional amounts	$ 23,190	$ 41,317
Derivatives designated as hedging instruments \| Interest rate swaps \| Fair value hedges
Fair hedges carried
Notional amounts	23,200	41,300
Positive fair value
Negative fair value	$ 700

Parent Company (Tables) - Parent Company

12 Months Ended

Dec. 31, 2019

Condensed Statements of Comprehensive Income


Condensed Statements of Comprehensive Income
	Year Ended December 31,
(dollars in thousands)	2019		2018		2017
Income
Dividends from FHB	$	300,300	$	263,400	$	105,400
Other income		1,691		1,541		3,937
Total income		301,991		264,941		109,337
Noninterest expense
Salaries and employee benefits		5,241		5,940		5,949
Contracted services and professional fees		2,689		3,780		3,643
Equipment		—		31		55
Advertising and marketing		—		—		1
Other		721		732		570
Total noninterest expense		8,651		10,483		10,218
Income before benefit (provision) for income taxes and (excess distributions) equity in undistributed income of FHB		293,340		254,458		99,119
Benefit (provision) for income taxes		1,672		1,184		(642)
(Excess distributions) equity in undistributed income of FHB		(10,620)		8,752		85,205
Net income	$	284,392	$	264,394	$	183,682
Comprehensive income	$	384,838	$	248,650	$	175,310

Condensed Statements of Condition


Condensed Statements of Condition
	December 31,
(dollars in thousands)	2019		2018
Assets
Cash and cash equivalents	$	24,455	$	5,647
Investment in FHB		2,617,949		2,521,347
Other assets		24,969		19,358
Total assets	$	2,667,373	$	2,546,352
Liabilities and Stockholders' Equity
Retirement benefits payable	$	553	$	509
Other liabilities		26,562		21,004
Total liabilities		27,115		21,513
Stockholders' Equity
Stockholders' equity		2,640,258		2,524,839
Total stockholders' equity		2,640,258		2,524,839
Total liabilities and stockholders' equity	$	2,667,373	$	2,546,352

Condensed Statement of Cash Flows


Condensed Statements of Cash Flows
	Year Ended December 31,
(dollars in thousands)	2019		2018		2017
Cash flows from operating activities
Net income	$	284,392	$	264,394	$	183,682
Adjustments to reconcile net income to net cash provided by operating activities:
Excess distributions (equity in undistributed income) of FHB		10,620		(8,752)		(85,205)
Deferred income taxes		85		(48)		(274)
Stock-based compensation		84		281		244
Change in assets and liabilities:
Net decrease (increase) in other assets		5,318		(9,635)		36,467
Net (decrease) increase in other liabilities		(5,439)		7,633		(2,058)
Net cash provided by operating activities		295,060		253,873		132,856

Cash flows from investing activities
Other, net		—		—		7
Net cash provided by investing activities		—		—		7

Cash flows from financing activities
Dividends paid		(138,246)		(131,036)		(122,810)
Distributions paid		—		—		(2,118)
Stock tendered for payment of withholding taxes		(1,764)		(69)		(120)
Proceeds from employee stock purchase plan		—		342		528
Common stock repurchased		(136,242)		(131,800)		—
Net cash used in financing activities		(276,252)		(262,563)		(124,520)
Net increase (decrease) in cash and cash equivalents		18,808		(8,690)		8,343
Cash and cash equivalents at beginning of year		5,647		14,337		5,994
Cash and cash equivalents at end of year	$	24,455	$	5,647	$	14,337

Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2019

Revenue from Contracts with Customers

Revenue from Contracts with Customers

19. Revenue from Contracts with Customers

In accordance with Topic 606, Revenue from Contracts with Customers, revenues are recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services that are promised within each contract and identifies those that contain performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

Disaggregation of Revenue

In 2019, the Company made changes to the internal measurement of segment operating profits for the purpose of evaluating segment performance and resource allocation. The Company has restated the selected financial information for the year ended December 31, 2018 in order to conform with the current presentation. See “Note 23. Reportable Operating Segments” in the notes to the consolidated financial statements included in Item 8. Financial Statements and Supplementary Data for further information.

The following table summarizes the Company’s revenues, which includes net interest income on financial instruments and noninterest income, disaggregated by type of service and business segments for the years ended December 31, 2019 and 2018:

Year Ended December 31, 2019

Treasury

Retail

Commercial

and

(dollars in thousands)

Banking

Other

Total

Net interest income⁽¹⁾

413,029

141,227

19,146

573,402

Service charges on deposit accounts

30,298

1,238

2,242

33,778

Credit and debit card fees

—

58,034

6,812

64,846

Other service charges and fees

20,454

2,096

2,155

24,705

Trust and investment services income

35,102

—

35,102

Other

715

4,899

3,351

8,965

Not in scope of Topic 606⁽¹⁾

8,844

7,368

8,925

25,137

Total noninterest income

95,413

73,635

23,485

192,533

Total revenue

508,442

214,862

42,631

765,935


		Year Ended December 31, 2018
					Treasury
	Retail		Commercial		and
(dollars in thousands)	Banking		Banking		Other		Total
Net interest income⁽¹⁾	$	420,165	$	140,333	$	5,820	$	566,318

Service charges on deposit accounts		28,866		1,146		2,024		32,036
Credit and debit card fees		—		78,218		7,080		85,298
Other service charges and fees		19,977		4,089		2,175		26,241
Trust and investment services income		31,324		—		—		31,324
Other		585		6,616		2,731		9,932
Not in scope of Topic 606⁽¹⁾		8,917		(9,165)		(5,590)		(5,838)
Total noninterest income		89,669		80,904		8,420		178,993
Total revenue	$	509,834	$	221,237	$	14,240	$	745,311

(1)	Most of the Company’s revenue is not within the scope of Topic 606. The guidance explicitly excludes net interest income from financial assets and liabilities as well as other noninterest income from loans, leases, investment securities and derivative financial instruments.

For the years ended December 31, 2019 and 2018, substantially all of the Company’s revenues under the scope of Topic 606 were related to performance obligations satisfied at a point in time.

The following is a discussion of revenues within the scope of Topic 606.

Service Charges on Deposit Accounts

Service charges on deposit accounts relate to fees generated from a variety of deposit products and services rendered to customers. Charges include, but are not limited to, overdraft fees, non-sufficient fund fees, dormant fees and monthly service charges. Such fees are recognized concurrent with the event on a daily basis or on a monthly basis depending upon the customer’s cycle date.

Credit and Debit Card Fees

Credit and debit card fees primarily represent revenues earned from interchange fees, ATM fees and merchant processing fees. Interchange and network revenues are earned on credit and debit card transactions conducted with payment networks. ATM fees are primarily earned as a result of surcharges assessed to non-FHB customers who use an FHB ATM. Merchant processing fees are primarily earned on transactions in which FHB is the acquiring bank. Such fees are generally recognized concurrently with the delivery of services on a daily basis.

Trust and Investment Services Fees

Trust and investment services fees represent revenue earned by directing, holding and managing customers’ assets. Fees are generally computed based on a percentage of the previous period’s value of assets under management. The transaction price (i.e., percentage of assets under management) is established at the inception of each contract. Trust and investment services fees also include broker dealer fees which represent revenue earned from buying and selling securities on behalf of customers. Such fees are recognized at the end of a valuation period or concurrently with the execution of a buy or sell transaction.

Other Fees

Other fees primarily include revenues generated from wire transfers, lockboxes, bank issuance of checks and insurance commissions. Such fees are recognized concurrent with the event or on a monthly basis.

Contract Balances

A contract liability is an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer. In prior years, the Company received signing bonuses from two vendors which are being amortized over the term of the respective contracts. As of December 31, 2019 and 2018, the Company had contract liabilities of $1.8 million and $2.6 million, respectively, which will be recognized over the remaining term of the respective contracts with the vendors. For both the years ended December 31, 2019 and 2018, the Company recognized revenues and contract liabilities decreased by approximately $0.8 million, due to the passage of time. There were no changes in contract liabilities due to changes in transaction price estimates.

A contract asset is the right to consideration for transferred goods or services when the amount is conditioned on something other than the passage of time. As of December 31, 2019 and 2018, there were no receivables from contracts with customers or contract assets recorded on the Company’s consolidated balance sheets.

Other

Except for the contract liabilities noted above, the Company did not have any significant performance obligations as of December 31, 2019 and 2018. The Company also did not have any material contract acquisition costs or use any significant judgments or estimates in recognizing revenue for financial reporting purposes.

Long-Term Borrowings - Components (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Long-term borrowings
Finance lease liabilities	$ 19	$ 26
Long-term borrowings	200,019	600,026
Short-term FHLB fixed-rate advance:
Long-term borrowings
Long-term borrowings	$ 200,000	$ 600,000

Income Taxes - Reconciliation of Unrecognized Tax Benefits - (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Tax
Balance	$ 131,570	$ 130,619	$ 127,085
Additions for current year tax positions	1,038	2,260	2,727
Additions for Reorganization Transactions				$ 121,400
Additions for prior years' tax positions: New uncertain tax positions identified	1,894
Additions for prior years' tax positions: Other			1,152
Reductions for prior years' tax positions: Expiration of statute of limitations	(190)	(280)	(345)
Reductions for prior years' tax positions: Other		(1,029)
Balance	134,312	131,570	130,619	127,085
Interest and Penalties
Balance	12,524	10,660	9,965
Additions for Reorganization Transactions	986	832	226	7,000
Additions for prior years' tax positions: Accrual of interest and penalties	1,280	1,159	621
Reductions for prior years' tax positions: Expiration of statute of limitations	(89)	(127)	(152)
Balance	14,701	12,524	10,660	9,965
Total
Balance	144,094	141,279	137,050
Additions for current year tax positions	1,038	2,260	2,727
Additions for Reorganization Transactions	986	832	226
Additions for prior years' tax positions: New uncertain tax positions identified	1,894
Additions for prior years' tax positions: Accrual of interest and penalties	1,280	1,159	621
Additions for prior years' tax positions: Other			1,152
Reductions for prior years' tax positions: Expiration of statute of limitations	(279)	(407)	(497)
Reductions for prior years' tax positions: Other		(1,029)
Balance	149,013	144,094	141,279	$ 137,050
Unrecognized tax benefits
Amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate	19,100	16,200	14,900
Unrecognized tax benefits attributable to tax refund claims in State of California	93,900	93,900
Unrecognized tax benefits, reasonably possible to decrease within the next 12 months	1,400
Unrecognized interest and penalties, reasonably possible to decrease within the next 12 months	900
Net expense attributable to interest and penalties recorded	2,400	1,000	$ 700
Accrued interest and penalties attributable to uncertain tax positions and undisputed tax adjustments	16,300	13,800
Accrued interest and penalties attributable to unrecognized tax benefits	14,700	$ 12,500
Determination of taxes benefit is currently recognized	$ 0

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated other comprehensive Income (loss)	Treasury Stock	Total
Balance, beginning at Dec. 31, 2016	$ 1,395	$ 2,484,251	$ 78,850	$ (88,011)		$ 2,476,485
Balance (in shares) at Dec. 31, 2016	139,530,654
Increase (Decrease) in Stockholders' Equity
Net income			183,682			183,682
Cash dividends declared			(122,810)			(122,810)
Equity-based awards	$ 1	5,982	(545)		$ (282)	5,156
Equity-based awards (in shares)	42,167
Other comprehensive income (loss), net of tax				(8,372)		(8,372)
Distributions		(2,118)				(2,118)
Common stock issued under Employee Stock Purchase Plan		528				528
Common stock issued under Employee Stock Purchase Plan (in shares)	15,961
Balance, ending at Dec. 31, 2017	$ 1,396	2,488,643	139,177	(96,383)	(282)	2,532,551
Balance (in shares) at Dec. 31, 2017	139,588,782
Increase (Decrease) in Stockholders' Equity
Adoption of Accounting Standards Update No. 2018-02			20,068	(20,068)
Net income			264,394			264,394
Cash dividends declared			(131,036)			(131,036)
Equity-based awards	$ 1	6,868	(684)		(53)	6,132
Equity-based awards (in shares)	43,049
Common stock repurchased					(131,800)	(131,800)
Common stock repurchased (in shares)	(4,769,870)
Other comprehensive income (loss), net of tax				(15,744)		(15,744)
Common stock issued under Employee Stock Purchase Plan		342				342
Common stock issued under Employee Stock Purchase Plan (in shares)	12,341
Balance, ending at Dec. 31, 2018	$ 1,397	2,495,853	291,919	(132,195)	(132,135)	$ 2,524,839
Balance (in shares) at Dec. 31, 2018	134,874,302					134,874,302
Increase (Decrease) in Stockholders' Equity
Net income			284,392			$ 284,392
Cash dividends declared			(138,246)			(138,246)
Equity-based awards	$ 2	7,824	(993)		(1,764)	5,069
Equity-based awards (in shares)	194,187
Common stock repurchased					(136,242)	(136,242)
Common stock repurchased (in shares)	(5,140,010)
Other comprehensive income (loss), net of tax				100,446		100,446
Balance, ending at Dec. 31, 2019	$ 1,399	$ 2,503,677	$ 437,072	$ (31,749)	$ (270,141)	$ 2,640,258
Balance (in shares) at Dec. 31, 2019	129,928,479					129,928,479

Derivative Financial Instruments - Amounts Recorded in Balance Sheets Related to Cumulative Basis Adjustments (Details) - Fair value hedges - Loans and leases - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Amounts recorded in the balance Sheets
Carrying amount of the Hedged Asset	$ 24,415	$ 42,496
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset	$ 1,017	$ 293

Transfers of Financial Assets (Tables)

12 Months Ended

Dec. 31, 2019

Transfers of Financial Assets

Schedule of carrying amounts of assets pledged as collateral


(dollars in thousands)	2019		2018
Public deposits	$	1,543,492	$	1,749,726
Federal Home Loan Bank		2,928,581		2,497,030
Federal Reserve Bank		953,169		957,017
ACH transactions		155,360		150,903
Interest rate swaps		43,296		28,843
Total	$	5,623,898	$	5,383,519

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings per Share
Adjustments to net income (in dollars)	$ 0	$ 0	$ 0
Antidilutive securities (in shares)	0	0	0
Numerator:
Net income	$ 284,392	$ 264,394	$ 183,682
Denominator:
Basic: weighted-average shares outstanding (in shares)	133,076,489	136,945,134	139,560,305
Add: weighted-average equity-based awards (in shares)	310,668	166,286	96,688
Diluted: weighted-average shares outstanding (in shares)	133,387,157	137,111,420	139,656,993
Basic earnings per share (in dollars per share)	$ 2.14	$ 1.93	$ 1.32
Diluted earnings per share (in dollars per share)	$ 2.13	$ 1.93	$ 1.32

Leases - Future Minimum Rental Income (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Future minimum rental income under noncancellable operating leases
2020	$ 6,164
2021	6,152
2022	4,431
2023	3,506
2024	2,680
Thereafter	6,511
Total	$ 29,444

Parent Company

12 Months Ended

Dec. 31, 2019

Parent Company Only

Parent Company

24. Parent Company

The following tables present Parent Company-only condensed financial statements:


Condensed Statements of Comprehensive Income
	Year Ended December 31,
(dollars in thousands)	2019		2018		2017
Income
Dividends from FHB	$	300,300	$	263,400	$	105,400
Other income		1,691		1,541		3,937
Total income		301,991		264,941		109,337
Noninterest expense
Salaries and employee benefits		5,241		5,940		5,949
Contracted services and professional fees		2,689		3,780		3,643
Equipment		—		31		55
Advertising and marketing		—		—		1
Other		721		732		570
Total noninterest expense		8,651		10,483		10,218
Income before benefit (provision) for income taxes and (excess distributions) equity in undistributed income of FHB		293,340		254,458		99,119
Benefit (provision) for income taxes		1,672		1,184		(642)
(Excess distributions) equity in undistributed income of FHB		(10,620)		8,752		85,205
Net income	$	284,392	$	264,394	$	183,682
Comprehensive income	$	384,838	$	248,650	$	175,310


Condensed Statements of Condition
	December 31,
(dollars in thousands)	2019		2018
Assets
Cash and cash equivalents	$	24,455	$	5,647
Investment in FHB		2,617,949		2,521,347
Other assets		24,969		19,358
Total assets	$	2,667,373	$	2,546,352
Liabilities and Stockholders' Equity
Retirement benefits payable	$	553	$	509
Other liabilities		26,562		21,004
Total liabilities		27,115		21,513
Stockholders' Equity
Stockholders' equity		2,640,258		2,524,839
Total stockholders' equity		2,640,258		2,524,839
Total liabilities and stockholders' equity	$	2,667,373	$	2,546,352


Condensed Statements of Cash Flows
	Year Ended December 31,
(dollars in thousands)	2019		2018		2017
Cash flows from operating activities
Net income	$	284,392	$	264,394	$	183,682
Adjustments to reconcile net income to net cash provided by operating activities:
Excess distributions (equity in undistributed income) of FHB		10,620		(8,752)		(85,205)
Deferred income taxes		85		(48)		(274)
Stock-based compensation		84		281		244
Change in assets and liabilities:
Net decrease (increase) in other assets		5,318		(9,635)		36,467
Net (decrease) increase in other liabilities		(5,439)		7,633		(2,058)
Net cash provided by operating activities		295,060		253,873		132,856

Cash flows from investing activities
Other, net		—		—		7
Net cash provided by investing activities		—		—		7

Cash flows from financing activities
Dividends paid		(138,246)		(131,036)		(122,810)
Distributions paid		—		—		(2,118)
Stock tendered for payment of withholding taxes		(1,764)		(69)		(120)
Proceeds from employee stock purchase plan		—		342		528
Common stock repurchased		(136,242)		(131,800)		—
Net cash used in financing activities		(276,252)		(262,563)		(124,520)
Net increase (decrease) in cash and cash equivalents		18,808		(8,690)		8,343
Cash and cash equivalents at beginning of year		5,647		14,337		5,994
Cash and cash equivalents at end of year	$	24,455	$	5,647	$	14,337

Leases - Rental Expense, Net of Sublease Income presented in accordance with Topic 840 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Rental expense, net of sublease income, presented in accordance with Topic 840
Net rental expense	$ 12,723	$ 7,563
Occupancy
Rental expense, net of sublease income, presented in accordance with Topic 840
Rental expense charged to occupancy	9,947	8,620
Less: Sublease income	903	1,342
Net rental expense	9,044	7,278
Equipment
Rental expense, net of sublease income, presented in accordance with Topic 840
Rental expense charged to equipment expense	$ 3,679	$ 285

Other Assets - Goodwill (Details) $ in Thousands	12 Months Ended
Other Assets - Goodwill (Details) $ in Thousands	Dec. 31, 2019 USD ($) segment	Dec. 31, 2018 USD ($) segment	Dec. 31, 2017 USD ($)
Goodwill
Number of reporting segments with goodwill \| segment	2	2
Goodwill	$ 995,492	$ 995,492
Impairment of goodwill	0	0	$ 0
Retail Banking
Goodwill
Goodwill	687,492	687,492
Commercial Banking
Goodwill
Goodwill	$ 308,000	$ 308,000

Benefit Plans - Estimated Future Benefit Payments (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Pension Benefits
Benefit payments expected to be paid over the next ten years
2020	$ 16,120
2021	15,902
2022	15,580
2023	15,176
2024	14,739
2025 to 2029	69,769
Other Benefits
Benefit payments expected to be paid over the next ten years
2020	1,205
2021	1,315
2022	1,410
2023	1,487
2024	1,546
2025 to 2029	$ 8,085

Short-Term Borrowings (Tables)

12 Months Ended

Dec. 31, 2019

Short-Term Borrowings

Schedule of short-term borrowings


	December 31,
(dollars in thousands)	2019		2018
Short-term FHLB fixed-rate advances⁽¹⁾	$	400,000	$	—
Total short-term borrowings	$	400,000	$	—

(1)	Interest is payable monthly.

Schedule of selected information for short-term borrowings


	Year Ended December 31,
(dollars in thousands)	2019			2018			2017
Federal funds purchased:
Weighted-average interest rate at December 31,		—	%		—	%		—	%
Highest month-end balance	$	110,000		$	374,875		$	6,000
Average outstanding balance	$	16,410		$	32,987		$	1,280
Weighted-average interest rate paid		2.44	%		2.18	%		0.97	%
Securities sold under agreements to repurchase:
Weighted-average interest rate at December 31,		—	%		—	%		—	%
Highest month-end balance	$	—		$	—		$	5,951
Average outstanding balance	$	—		$	—		$	893
Weighted-average interest rate paid		—	%		—	%		0.55	%
Short-term FHLB fixed-rate advance:
Weighted-average interest rate at December 31,		2.84	%		—	%		—	%
Highest month-end balance	$	400,000		$	81,800		$	—
Average outstanding balance	$	193,425		$	6,929		$	—
Weighted-average interest rate paid		2.85	%		1.90	%		—	%

Allowance for Loan and Lease Losses - Credit Risk Profiles by Internally Assigned Grade (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) factor	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Credit quality
Percentage of loans sold with no recourse not subject to grading	100.00%
Number of risk factors in internal loan rating system \| factor	8
Loans and leases	$ 13,211,650	$ 13,076,191	$ 12,277,369
Loans graded
Credit quality
Loans and leases	6,928,919	6,974,069
Pass
Credit quality
Loans and leases	6,631,021	6,718,416
Special mention
Credit quality
Loans and leases	198,845	149,733
Substandard
Credit quality
Loans and leases	99,053	105,728
Doubtful
Credit quality
Loans and leases		192
Loss
Credit quality
Loans and leases	0	0
Commercial and Industrial
Credit quality
Loans and leases	2,743,242	3,208,760	3,135,266
Commercial and Industrial \| Loans graded
Credit quality
Loans and leases	2,743,242	3,208,760
Commercial and Industrial \| Pass
Credit quality
Loans and leases	2,585,908	3,069,546
Commercial and Industrial \| Special mention
Credit quality
Loans and leases	91,365	57,012
Commercial and Industrial \| Substandard
Credit quality
Loans and leases	65,969	82,010
Commercial and Industrial \| Doubtful
Credit quality
Loans and leases		192
Commercial real estate
Credit quality
Loans and leases	3,463,953	2,990,783	2,667,597
Commercial real estate \| Loans graded
Credit quality
Loans and leases	3,463,953	2,990,783
Commercial real estate \| Pass
Credit quality
Loans and leases	3,327,659	2,876,907
Commercial real estate \| Special mention
Credit quality
Loans and leases	106,331	91,298
Commercial real estate \| Substandard
Credit quality
Loans and leases	29,963	22,578
Construction
Credit quality
Loans and leases	519,241	626,757	632,911
Construction \| Loans graded
Credit quality
Loans and leases	519,241	626,757
Construction \| Pass
Credit quality
Loans and leases	515,993	625,607
Construction \| Special mention
Credit quality
Loans and leases	127	200
Construction \| Substandard
Credit quality
Loans and leases	3,121	950
Lease financing
Credit quality
Loans and leases	202,483	147,769	$ 165,066
Lease financing \| Loans graded
Credit quality
Loans and leases	202,483	147,769
Lease financing \| Pass
Credit quality
Loans and leases	201,461	146,356
Lease financing \| Special mention
Credit quality
Loans and leases	$ 1,022	1,223
Lease financing \| Substandard
Credit quality
Loans and leases		$ 190

Short-Term Borrowings - Components and Selected Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Short-term borrowings
Short-term borrowings	$ 400,000
Short-term FHLB fixed-rate advance:
Short-term borrowings
Available remaining borrowing capacity	1,700,000	$ 1,300,000
Federal Reserve Bank line of credit
Short-term borrowings
Available remaining borrowing capacity	596,800	671,800
Federal funds purchased
Short-term borrowings
Highest month-end balance	110,000	374,875	$ 6,000
Average outstanding balance	$ 16,410	$ 32,987	$ 1,280
Weighted-average interest rate paid (as a percent)	2.44%	2.18%	0.97%
Securities sold under agreements to repurchase
Short-term borrowings
Highest month-end balance			$ 5,951
Average outstanding balance			$ 893
Weighted-average interest rate paid (as a percent)			0.55%
Short-term FHLB fixed-rate advance:
Short-term borrowings
Short-term borrowings	$ 400,000
Weighted-average interest rate (as a percent)	2.84%
Highest month-end balance	$ 400,000	$ 81,800
Average outstanding balance	$ 193,425	$ 6,929
Weighted-average interest rate paid (as a percent)	2.85%	1.90%

Organization and Basis of Presentation - Non Marketable Equity Securities Impairment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Organization and Summary of Significant Accounting Policies
Impairment recognized on non marketable equity securities	$ 0	$ 0	$ 0

Long-Term Borrowings - Future Contractual Principal Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Future contractual principal payments and maturities on long term borrowings
2020	$ 9
2021	10
2023	100,000
2024	100,000
Total	$ 200,019	$ 600,026
Finance lease
Future contractual principal payments and maturities on long term borrowings
Interest rate (as a percent)	6.78%	6.78%
Short-term FHLB fixed-rate advance:
Future contractual principal payments and maturities on long term borrowings
Total	$ 200,000	$ 600,000
Interest rate (as a percent)	2.73%
Short-term FHLB fixed-rate advance: \| December 4, 2020
Future contractual principal payments and maturities on long term borrowings
Interest rate (as a percent)	2.80%
Short-term FHLB fixed-rate advance: \| January 15, 2021
Future contractual principal payments and maturities on long term borrowings
Interest rate (as a percent)	2.65%

Loans and Leases (Tables)

12 Months Ended

Dec. 31, 2019

Loans and Leases.

Schedule of components of loans and leases


	December 31,
(dollars in thousands)	2019		2018
Commercial and industrial	$	2,743,242	$	3,208,760
Commercial real estate		3,463,953		2,990,783
Construction		519,241		626,757
Residential:
Residential mortgage		3,768,936		3,527,101
Home equity line		893,239		912,517
Total residential		4,662,175		4,439,618
Consumer		1,620,556		1,662,504
Lease financing		202,483		147,769
Total loans and leases	$	13,211,650	$	13,076,191

Schedule of components of remaining loan and lease commitments


	December 31,
(dollars in thousands)	2019		2018
Commercial and industrial	$	2,451,362	$	2,484,857
Commercial real estate		130,597		114,186
Construction		718,121		526,938
Residential:
Residential mortgage		842		121
Home equity line		1,052,739		913,636
Total residential		1,053,581		913,757
Consumer		1,554,029		1,509,853
Total loan and lease commitments	$	5,907,690	$	5,549,591

Commitments and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingent Liabilities

Schedule of financial instruments with off-balance sheet risk


	December 31,
(dollars in thousands)	2019		2018
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	5,907,690	$	5,549,591
Standby letters of credit		181,412		204,324
Commercial letters of credit		7,334		7,535

Organization and Basis of Presentation - Allowance for Loan and Lease Losses (Details)	12 Months Ended
	Dec. 31, 2019 component
Allowance for loan and lease losses
Reserve for credit losses, number of components	2
Consumer \| Minimum
Allowance for loan and lease losses
Threshold period past due for charge-off	120 days
Consumer \| Maximum
Allowance for loan and lease losses
Threshold period past due for charge-off	180 days

Fair Value - Financial Instruments not Required to be Carried at Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Lease and lease commitments excluded
Financing leases	$ 202,500	$ 147,800
Deposit liabilities with no defined or contractual maturity	13,900,000	14,100,000
Capital lease obligations	19	26
Book Value
Financial assets:
Cash and cash equivalents	694,017	1,003,637
Loans held for sale	904	432
Loans	13,009,167	12,928,422
Financial liabilities:
Time Deposits	2,510,157	3,092,164
Short-term borrowings	400,000
Long-term borrowings	200,000	600,000
Estimated Fair Value
Financial assets:
Cash and cash equivalents	694,017	1,003,637
Loans held for sale	904	432
Loans	13,140,898	12,664,170
Financial liabilities:
Time Deposits	2,501,478	3,058,792
Short-term borrowings	401,709
Long-term borrowings	207,104	602,088
Estimated Fair Value \| Level 1
Financial assets:
Cash and cash equivalents	360,375	396,836
Estimated Fair Value \| Level 2
Financial assets:
Cash and cash equivalents	333,642	606,801
Loans held for sale	904	432
Financial liabilities:
Time Deposits	2,501,478	3,058,792
Short-term borrowings	401,709
Long-term borrowings	207,104	602,088
Estimated Fair Value \| Level 3
Financial assets:
Loans	$ 13,140,898	$ 12,664,170

Benefit Plans - Contributions to Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jul. 01, 2019	Dec. 31, 2018
Qualified Plan (ERP)
Benefit plans
Benefit accruals for the company's employees	$ 0
Pension Benefits
Benefit plans
Benefit accruals for the company's employees	(100,626)		$ (99,491)
Pension Benefits \| Qualified Plan (ERP)
Benefit plans
Expected contributions in 2020	0
Pension Benefits \| Nonqualified Plan
Benefit plans
Expected contributions in 2020	200
SERP and Directors' Plan
Benefit plans
Benefit accruals for the company's employees		$ 0
Expected contributions in 2020	0
Other Benefits \| Nonqualified Plan
Benefit plans
Expected contributions in 2020	$ 1,200

Stock-Based Compensation - Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock-based compensation
Stock-based compensation expense	$ 7.8	$ 6.9	$ 3.1
Related income tax benefit of stock-based compensation	$ 2.0	$ 1.8	$ 1.6
Employee stock-based compensation plan
Stock-based compensation
Total shares authorized	5,600,000
Shares available for future grants	4,300,000
Non-employee director plan
Stock-based compensation
Total shares authorized	75,000
Shares available for future grants	34,842

Transactions with Affiliates and Related Parties

12 Months Ended

Dec. 31, 2019

Transactions with Affiliates and Related Parties

Transactions with Affiliates and Related Parties

2. Transactions with Affiliates and Related Parties

In the normal course of business, the Company makes loans to executive officers and directors of the Company and its subsidiary and to entities and individuals affiliated with those executive officers and directors. These loans are made on terms no less favorable to the Company than those prevailing at the time for comparable transactions with unrelated persons or, in the case of certain residential real estate loans, on terms that are widely available to employees of the Company who are not directors or executive officers.

Changes in the loans to such executive officers, directors and affiliates during 2019, 2018 and 2017 were as follows:


	Year Ended December 31,
(dollars in thousands)	2019		2018		2017
Balance at beginning of year	$	66,088	$	61,603	$	94,466
New loans made		22,682		6,756		3,762
Repayments		(3,490)		(2,271)		(36,625)
Balance at end of year	$	85,280	$	66,088	$	61,603

The Company has participated in various transactions with BWC, BOW, BNPP and its affiliates, in each case while such entities were affiliates and related parties of the Company. These transactions were subject to review by the FRB, FDIC and other regulatory authorities. The transactions were required to be on terms at least as favorable to the Company as those prevailing at the time for similar non-affiliate transactions. These transactions included the provision of services, sales and purchases of assets, foreign exchange activities, financial guarantees, international services, interest rate swaps and intercompany deposits and borrowings.

The Company participates in forward and spot transactions with BOW (which ceased being an affiliate of the Company in February 2019) as the counterparty. These positions as of December 31, 2019, 2018 and 2017 are summarized below along with other transactions with its related parties.


	As of December 31,
(dollars in thousands)	2019		2018		2017
Cash and due from banks	$	—	$	55,454	$	41,874
Other assets		—		19,358		23,872
Noninterest-bearing demand deposits		—		(346)		(456)
Noninterest income from affiliates		382		5,677		4,908
Noninterest expense to affiliates		(4)		(59)		(47)

The Company had no other liabilities with affiliates and no off-balance sheet commitments with affiliates to purchase and sell foreign currencies as of December 31, 2019, 2018 and 2017.

The Company did not transact in hedging or trading activities on behalf of BOW or BWC, in each case while such entities were affiliates and related parties of the Company.

In 2016, BWC and the Company entered into an Expense Reimbursement Agreement whereby BWC agreed to reimburse the Company for certain expenses incurred by the Company that are provided for the ultimate benefit of BNPP and its subsidiaries. Payments received from BWC amounted to $7.2 million, $14.6 million and $21.4 million for the years ended December 31, 2019, 2018 and 2017, respectively. Expenses incurred by the Company after 2019 are not subject to reimbursement by BWC under the Expense Reimbursement Agreement.

Allowance for Loan and Lease Losses (Tables)

12 Months Ended

Dec. 31, 2019

Allowance for Loan and Lease Losses

Schedule of components of allowance for loan and lease losses

Year Ended December 31, 2019

Commercial Lending

Commercial

and

Real

Lease

(dollars in thousands)

Industrial

Estate

Construction

Financing

Residential

Consumer

Unallocated

Total

Allowance for loan and lease losses:

Balance at beginning of year

34,501

19,725

5,813

432

44,906

35,813

528

141,718

Charge-offs

(2,718)

—

(24)

(438)

(32,807)

—

(35,987)

Recoveries

410

263

—

967

9,359

—

10,999

Increase (decrease) in Provision

(3,218)

2,337

(969)

(6,256)

22,279

(389)

13,800

Balance at end of year

28,975

22,325

4,844

424

39,179

34,644

139

130,530

Individually evaluated for impairment

—

130

—

203

Collectively evaluated for impairment

28,929

22,298

4,844

424

39,049

34,644

139

130,327

Loans and leases:

Individually evaluated for impairment

4,951

723

—

14,964

—

20,638

Collectively evaluated for impairment

2,738,291

3,463,230

519,241

202,483

4,647,211

1,620,556

—

13,191,012

Balance at end of year

2,743,242

3,463,953

519,241

202,483

4,662,175

1,620,556

—

13,211,650


	Year Ended December 31, 2018
	Commercial Lending
	Commercial		Commercial
	and		Real				Lease
(dollars in thousands)	Industrial		Estate		Construction		Financing		Residential		Consumer		Unallocated		Total
Allowance for loan and lease losses:
Balance at beginning of year	$	34,006	$	18,044	$	6,817	$	611	$	42,852	$	31,249	$	3,674	$	137,253
Charge-offs		(778)		—		—		—		(165)		(26,630)		—		(27,573)
Recoveries		232		216		—		—		940		8,470		—		9,858
Increase (decrease) in Provision		1,041		1,465		(1,004)		(179)		1,279		22,724		(3,146)		22,180
Balance at end of year	$	34,501	$	19,725	$	5,813	$	432	$	44,906	$	35,813	$	528	$	141,718
Individually evaluated for impairment		108		32		—		—		396		—		—		536
Collectively evaluated for impairment		34,393		19,693		5,813		432		44,510		35,813		528		141,182
Loans and leases:
Individually evaluated for impairment	$	8,719	$	5,743	$	—	$	—	$	16,114	$	—	$	—	$	30,576
Collectively evaluated for impairment		3,200,041		2,985,040		626,757		147,769		4,423,504		1,662,504		—		13,045,615
Balance at end of year	$	3,208,760	$	2,990,783	$	626,757	$	147,769	$	4,439,618	$	1,662,504	$	—	$	13,076,191


	Year Ended December 31, 2017
	Commercial Lending
	Commercial		Commercial
	and		Real				Lease
(dollars in thousands)	Industrial		Estate		Construction		Financing		Residential		Consumer		Unallocated		Total
Allowance for loan and lease losses:
Balance at beginning of year	$	33,129	$	18,448	$	4,513	$	847	$	43,436	$	28,388	$	6,733	$	135,494
Charge-offs		(1,519)		—		—		(147)		(408)		(23,851)		—		(25,925)
Recoveries		844		596		—		—		687		7,057		—		9,184
Increase (decrease) in Provision		1,552		(1,000)		2,304		(89)		(863)		19,655		(3,059)		18,500
Balance at end of year	$	34,006	$	18,044	$	6,817	$	611	$	42,852	$	31,249	$	3,674	$	137,253
Individually evaluated for impairment		4		6		—		—		484		—		—		494
Collectively evaluated for impairment		34,002		18,038		6,817		611		42,368		31,249		3,674		136,759
Loans and leases:
Individually evaluated for impairment	$	18,183	$	10,636	$	—	$	—	$	16,530	$	—	$	—	$	45,349
Collectively evaluated for impairment		3,117,083		2,656,961		632,911		165,066		4,073,523		1,586,476		—		12,232,020
Balance at end of year	$	3,135,266	$	2,667,597	$	632,911	$	165,066	$	4,090,053	$	1,586,476	$	—	$	12,277,369

Schedule of credit risk profiles by internally assigned grade for loans and leases

December 31, 2019

Commercial

and

Real

Lease

(dollars in thousands)

Industrial

Estate

Construction

Financing

Total

Grade:

Pass

2,585,908

3,327,659

515,993

201,461

6,631,021

Special mention

91,365

106,331

127

1,022

198,845

Substandard

65,969

29,963

3,121

—

99,053

Total

2,743,242

3,463,953

519,241

202,483

6,928,919


	December 31, 2018
	Commercial		Commercial
	and		Real				Lease
(dollars in thousands)	Industrial		Estate		Construction		Financing		Total
Grade:
Pass	$	3,069,546	$	2,876,907	$	625,607	$	146,356	$	6,718,416
Special mention		57,012		91,298		200		1,223		149,733
Substandard		82,010		22,578		950		190		105,728
Doubtful		192		—		—		—		192
Total	$	3,208,760	$	2,990,783	$	626,757	$	147,769	$	6,974,069

Schedule of credit risk profiles based on payment activity for loans and leases

December 31, 2019

(dollars in thousands)

Residential Mortgage

Home Equity Line

Consumer

Consumer - Auto

Credit Cards

Total

Performing

3,759,799

886,879

219,046

1,016,142

347,264

6,229,130

Non-performing and delinquent

9,137

6,360

7,258

24,326

6,520

53,601

Total

3,768,936

893,239

226,304

1,040,468

353,784

6,282,731


	December 31, 2018
(dollars in thousands)	Residential Mortgage		Home Equity Line		Consumer		Consumer - Auto		Credit Cards		Total
Performing	$	3,519,172	$	903,284	$	234,458	$	1,044,393	$	339,162	$	6,040,469
Non-performing and delinquent		7,929		9,233		5,448		33,739		5,304		61,653
Total	$	3,527,101	$	912,517	$	239,906	$	1,078,132	$	344,466	$	6,102,122

Schedule of aging analyses of past due loans and leases

December 31, 2019

Accruing Loans and Leases

Greater

Total Non

Than or

Total

Accruing

30-59

60-89

Equal to

Total

Accruing

Loans

Days

90 Days

Past

Loans and

and

Total

(dollars in thousands)

Past Due

Due

Current

Leases

Outstanding

Commercial and industrial

1,525

808

1,429

3,762

2,739,448

2,743,210

2,743,242

Commercial real estate

1,664

1,125

1,013

3,802

3,460,121

3,463,923

3,463,953

Construction

—

2,367

516,874

519,241

—

519,241

Lease financing

—

202,483

—

202,483

Residential mortgage

3,258

399

3,731

3,759,799

3,763,530

5,406

3,768,936

Home equity line

2,971

394

2,995

6,360

886,879

893,239

—

893,239

Consumer

26,810

7,022

4,272

38,104

1,582,452

1,620,556

—

1,620,556

Total

36,228

9,748

12,150

58,126

13,148,056

13,206,182

5,468

13,211,650


	December 31, 2018
	Accruing Loans and Leases
					Greater								Total Non
					Than or						Total		Accruing
	30-59		60-89		Equal to		Total				Accruing		Loans
	Days		Days		90 Days		Past				Loans and		and		Total
(dollars in thousands)	Past Due		Past Due		Past Due		Due		Current		Leases		Leases		Outstanding
Commercial and industrial	$	1,293	$	—	$	141	$	1,434	$	3,207,052	$	3,208,486	$	274	$	3,208,760
Commercial real estate		—		—		—		—		2,989,125		2,989,125		1,658		2,990,783
Construction		91		—		—		91		626,666		626,757		—		626,757
Lease financing		47		—		—		47		147,722		147,769		—		147,769
Residential mortgage		2,274		1,012		32		3,318		3,519,172		3,522,490		4,611		3,527,101
Home equity line		5,616		775		2,842		9,233		903,284		912,517		—		912,517
Consumer		32,406		8,712		3,373		44,491		1,618,013		1,662,504		—		1,662,504
Total	$	41,727	$	10,499	$	6,388	$	58,614	$	13,011,034	$	13,069,648	$	6,543	$	13,076,191

Schedule of total carrying amounts and total unpaid principal balances of impaired loans and leases


	December 31, 2019
			Unpaid
	Recorded		Principal		Related
(dollars in thousands)	Investment		Balance		Allowance
Impaired loans with no related allowance recorded:
Commercial and industrial	$	3,825	$	3,841	$	—
Commercial real estate		30		30		—
Residential mortgage		10,425		10,718		—
Total	$	14,280	$	14,589	$	—
Impaired loans with a related allowance recorded:
Commercial and industrial	$	1,126	$	1,126	$	46
Commercial real estate		693		693		27
Residential mortgage		4,539		4,819		130
Total	$	6,358	$	6,638	$	203
Total impaired loans:
Commercial and industrial	$	4,951	$	4,967	$	46
Commercial real estate		723		723		27
Residential mortgage		14,964		15,537		130
Total	$	20,638	$	21,227	$	203


	December 31, 2018
			Unpaid
	Recorded		Principal		Related
(dollars in thousands)	Investment		Balance		Allowance
Impaired loans with no related allowance recorded:
Commercial and industrial	$	4,449	$	4,498	$	—
Commercial real estate		5,016		5,016		—
Residential mortgage		9,112		9,426		—
Total	$	18,577	$	18,940	$	—
Impaired loans with a related allowance recorded:
Commercial and industrial	$	4,270	$	4,270	$	108
Commercial real estate		727		727		32
Residential mortgage		7,002		7,387		396
Total	$	11,999	$	12,384	$	536
Total impaired loans:
Commercial and industrial	$	8,719	$	8,768	$	108
Commercial real estate		5,743		5,743		32
Residential mortgage		16,114		16,813		396
Total	$	30,576	$	31,324	$	536

Schedule of average balances, and of interest income recognized from, impaired loans


	Year Ended
	December 31, 2019
	Average		Interest
	Recorded		Income
(dollars in thousands)	Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial and industrial	$	3,687	$	431
Commercial real estate		2,825		481
Residential mortgage		8,777		440
Consumer		40		—
Total	$	15,329	$	1,352
Impaired loans with a related allowance recorded:
Commercial and industrial	$	4,485	$	85
Commercial real estate		710		40
Residential mortgage		6,413		339
Total	$	11,608	$	464
Total impaired loans:
Commercial and industrial	$	8,172	$	516
Commercial real estate		3,535		521
Residential mortgage		15,190		779
Consumer		40		—
Total	$	26,937	$	1,816


	Year Ended
	December 31, 2018
	Average		Interest
	Recorded		Income
(dollars in thousands)	Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial and industrial	$	11,409	$	408
Commercial real estate		7,873		231
Construction		1,248		91
Residential mortgage		9,356		529
Total	$	29,886	$	1,259
Impaired loans with a related allowance recorded:
Commercial and industrial	$	3,154	$	273
Commercial real estate		942		67
Residential mortgage		7,369		335
Total	$	11,465	$	675
Total impaired loans:
Commercial and industrial	$	14,563	$	681
Commercial real estate		8,815		298
Construction		1,248		91
Residential mortgage		16,725		864
Total	$	41,351	$	1,934


	Year Ended
	December 31, 2017
	Average		Interest
	Recorded		Income
(dollars in thousands)	Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial and industrial	$	19,929	$	890
Commercial real estate		9,846		417
Lease financing		61		—
Residential mortgage		8,582		567
Total	$	38,418	$	1,874
Impaired loans with a related allowance recorded:
Commercial and industrial	$	2,572	$	10
Commercial real estate		918		42
Residential mortgage		8,897		344
Total	$	12,387	$	396
Total impaired loans:
Commercial and industrial	$	22,501	$	900
Commercial real estate		10,764		459
Lease financing		61		—
Residential mortgage		17,479		911
Total	$	50,805	$	2,270

Schedule of information related to loans modified in a TDR


	Year Ended December 31, 2019
	Number of	Recorded		Related
(dollars in thousands)	Contracts⁽¹⁾	Investment⁽²⁾		Allowance
Commercial and industrial	2	$	571	$	25
Residential mortgage	1		609		—
Total	3	$	1,180	$	25


	Year Ended December 31, 2018
	Number of	Recorded		Related
(dollars in thousands)	Contracts⁽¹⁾	Investment⁽²⁾		Allowance
Commercial and industrial	1	$	369	$	10
Residential mortgage	3		875		29
Total	4	$	1,244	$	39


	Year Ended December 31, 2017
	Number of	Recorded		Related
(dollars in thousands)	Contracts⁽¹⁾	Investment⁽²⁾		Allowance
Commercial and industrial	1	$	1,075	$	—
Residential mortgage	2		659		23
Total	3	$	1,734	$	23

(1)	The number of contracts does not include TDRs that have been fully paid off, charged off or foreclosed upon by the end of the period.

(2)	The recorded investment balances reflect all partial paydowns and charge-offs since the modification date and do not include TDRs that have been fully paid off, charged off or foreclosed upon by the end of the period.

Schedule of TDRs that defaulted in period within 12 months of their permanent modification date


	Year Ended December 31,
	2019			2018			2017
	Number of	Recorded		Number of	Recorded		Number of	Recorded
(dollars in thousands)	Contracts⁽¹⁾	Investment⁽²⁾		Contracts⁽¹⁾	Investment⁽²⁾		Contracts⁽¹⁾	Investment⁽²⁾
Commercial and industrial⁽³⁾	2	$	571	—	$	—	1	$	2,480
Commercial real estate⁽⁴⁾	—		—	—		—	1		1,393
Total	2	$	571	—	$	—	2	$	3,873

(1)	The number of contracts does not include TDRs that have been fully paid off, charged off or foreclosed upon by the end of the period.

(2)	The recorded investment balances reflect all partial paydowns and charge-offs since the modification date and do not include TDRs that have been fully paid off, charged off or foreclosed upon by the end of the period.

(3)	In 2019, the commercial and industrial loans that subsequent defaulted were temporarily modified to interest-only payments. In 2017, the maturity date for the commercial and industrial loan that subsequently defaulted was extended.

(4)	In 2017, the commercial real estate loan that subsequently defaulted was extended.

Transactions with Affiliates and Related Parties - Summary of Transactions (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Related party transactions
Other liabilities	$ 0	$ 0	$ 0
Off-balance sheet commitments with affiliates to purchase and sell foreign currencies	0	0	0
Related parties associated with its branch premises
Related party transactions
Cash and due from banks		55,454,000	41,874,000
Other assets		19,358,000	23,872,000
Noninterest-bearing demand deposits		(346,000)	(456,000)
Noninterest income from affiliates	382,000	5,677,000	4,908,000
Noninterest expense to affiliates	(4,000)	(59,000)	(47,000)
BancWest Corporation (BWC) \| Expense reimbursements
Related party transactions
Payments received from BWC	$ 7,200,000	$ 14,600,000	$ 21,400,000

Organization and Basis of Presentation - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Organization and Summary of Significant Accounting Policies
Impairment of goodwill	$ 0	$ 0	$ 0

Benefit Plans - Fair Value Measurement of Plan Assets (Details) - Pension Benefits - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Benefit plans
Fair value of plan assets	$ 112,659,000	$ 99,581,000	$ 114,220,000
Percentage of total	100.00%	100.00%
Minimum
Benefit plans
Percentage of assets in high-grade corporate bonds and U.S. government debt obligations	80.00%
Cash and cash equivalents
Benefit plans
Fair value of plan assets	$ 2,824,000	$ 2,428,000
Fixed income securities
Benefit plans
Percentage of total	66.20%	68.70%
U.S. Treasury securities
Benefit plans
Fair value of plan assets	$ 4,053,000	$ 4,450,000
Government agency debt securities
Benefit plans
Fair value of plan assets	3,504,000	3,565,000
Fixed income - U.S. corporate securities
Benefit plans
Fair value of plan assets	58,808,000	53,721,000
Fixed income - municipal securities
Benefit plans
Fair value of plan assets	484,000	451,000
Fixed income - mutual funds
Benefit plans
Fair value of plan assets	6,204,000	6,272,000
Fixed income - international securities
Benefit plans
Fair value of plan assets	1,544,000
Equity - large-cap mutual funds
Benefit plans
Fair value of plan assets		8,831,000
Equity - large-cap exchange-traded fund
Benefit plans
Fair value of plan assets	23,278,000	10,482,000
Equity - mid-cap exchange-traded funds
Benefit plans
Fair value of plan assets	3,379,000	2,544,000
Equity - small-cap exchange-traded funds
Benefit plans
Fair value of plan assets	1,645,000	1,176,000
Equity - international funds
Benefit plans
Fair value of plan assets	6,936,000	5,661,000
Level 1
Benefit plans
Fair value of plan assets	45,810,000	37,394,000
Level 1 \| Cash and cash equivalents
Benefit plans
Fair value of plan assets	2,824,000	2,428,000
Level 1 \| Fixed income - mutual funds
Benefit plans
Fair value of plan assets	6,204,000	6,272,000
Level 1 \| Fixed income - international securities
Benefit plans
Fair value of plan assets	1,544,000
Level 1 \| Equity - large-cap mutual funds
Benefit plans
Fair value of plan assets		8,831,000
Level 1 \| Equity - large-cap exchange-traded fund
Benefit plans
Fair value of plan assets	23,278,000	10,482,000
Level 1 \| Equity - mid-cap exchange-traded funds
Benefit plans
Fair value of plan assets	3,379,000	2,544,000
Level 1 \| Equity - small-cap exchange-traded funds
Benefit plans
Fair value of plan assets	1,645,000	1,176,000
Level 1 \| Equity - international funds
Benefit plans
Fair value of plan assets	6,936,000	5,661,000
Level 2
Benefit plans
Fair value of plan assets	66,849,000	62,187,000
Level 2 \| U.S. Treasury securities
Benefit plans
Fair value of plan assets	4,053,000	4,450,000
Level 2 \| Government agency debt securities
Benefit plans
Fair value of plan assets	3,504,000	3,565,000
Level 2 \| Fixed income - U.S. corporate securities
Benefit plans
Fair value of plan assets	58,808,000	53,721,000
Level 2 \| Fixed income - municipal securities
Benefit plans
Fair value of plan assets	484,000	451,000
Level 3
Benefit plans
Fair value of plan assets	$ 0	$ 0

Fair Value

12 Months Ended

Dec. 31, 2019

Fair Value

Fair Value

22. Fair Value

The Company determines the fair values of its financial instruments based on the requirements established in ASC 820, Fair Value Measurements, which provides a framework for measuring fair value under GAAP and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 defines fair value as the exit price, the price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions.

Fair Value Hierarchy

ASC 820 establishes three levels of fair values based on the markets in which the assets or liabilities are traded and the reliability of the assumptions used to determine fair value. The levels are:

●

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access.

●

Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

●

Level 3: Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability (“Company-level data”). Level 3 assets and liabilities include financial instruments whose value is determined using unobservable inputs to pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

ASC 820 requires that the Company disclose estimated fair values for certain financial instruments. Financial instruments include such items as investment securities, loans, deposits, interest rate and foreign exchange contracts, swaps and other instruments as defined by the standard. The Company has an organized and established process for determining and reviewing the fair value of financial instruments reported in the Company’s financial statements. The fair value measurements are reviewed to ensure they are reasonable and in line with market experience in similar asset and liability classes.

Additionally, the Company may be required to record at fair value other assets on a nonrecurring basis, such as other real estate owned, other customer relationships, and other intangible assets. These nonrecurring fair value adjustments typically involve the application of lower-of-cost-or-fair-value accounting or write-downs of individual assets.

Disclosure of fair values is not required for certain items such as lease financing, obligations for pension and other postretirement benefits, premises and equipment, prepaid expenses, deposit liabilities with no defined or contractual maturity, and income tax assets and liabilities.

Reasonable comparisons of fair value information with that of other financial institutions cannot necessarily be made because the standard permits many alternative calculation techniques, and numerous assumptions have been used to estimate the Company’s fair values.

Valuation Techniques Used in the Fair Value Measurement of Assets and Liabilities Carried at Fair Value

For the assets and liabilities measured at fair value on a recurring basis (categorized in the valuation hierarchy table below), the Company applies the following valuation techniques:

Available-for-sale securities

Available-for-sale debt securities are recorded at fair value on a recurring basis. Fair value measurement is based on quoted prices, including estimates by third-party pricing services, if available. If quoted prices are not available, fair values are measured using proprietary valuation models that utilize market observable parameters from active market makers and inter-dealer brokers whereby securities are valued based upon available market data for securities with similar characteristics. Management reviews the pricing information received from the Company’s third-party pricing service to evaluate the inputs and valuation methodologies used to place securities into the appropriate level of the fair value hierarchy and transfers of securities within the fair value hierarchy are made if necessary. On a monthly basis, management reviews the pricing information received from the third-party pricing service which includes a comparison to non-binding third-party broker quotes, as well as a review of market-related conditions impacting the information provided by the third-party pricing service. Management also identifies investment securities which may have traded in illiquid or inactive markets by identifying instances of a significant decrease in the volume or frequency of trades, relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets. As of December 31, 2019 and 2018, management did not make adjustments to prices provided by the third-party pricing services as a result of illiquid

or inactive markets. The Company’s third-party pricing service has also established processes for the Company to submit inquiries regarding quoted prices. Periodically, the Company will challenge the quoted prices provided by the third-party pricing service. The Company’s third-party pricing service will review the inputs to the evaluation in light of the new market data presented by the Company. The Company’s third-party pricing service may then affirm the original quoted price or may update the evaluation on a going forward basis. The Company classifies all available-for-sale securities as Level 2.

Derivatives

Most of the Company’s derivatives are traded in over-the-counter markets where quoted market prices are not readily available. For those derivatives, the Company measures fair value on a recurring basis using proprietary valuation models that primarily use market observable inputs, such as yield curves, and option volatilities. The fair value of derivatives includes values associated with counterparty credit risk and the Company’s own credit standing. The Company classifies these derivatives, included in other assets and other liabilities, as Level 2.

Concurrent with the sale of the Visa Class B restricted shares, the Company entered into an agreement with the buyer that requires payment to the buyer in the event Visa reduces each member bank’s Class B conversion rate to unrestricted Class A common shares. On July 5, 2018, Visa announced a decrease in conversion rate from 1.6483 to 1.6298 effective June 28, 2018. Additionally, on September 30, 2019, Visa announced a decrease in conversion rate from 1.6298 to 1.6228, effective September 27, 2019. The Visa derivative of $4.2 million and $2.6 million was included in the consolidated balance sheets at December 31, 2019 and 2018, respectively, to provide for the fair value of this liability. The potential liability related to this funding swap agreement was determined based on management’s estimate of the timing and the amount of Visa’s litigation settlement and the resulting payments due to the counterparty under the terms of the contract. As such, the funding swap agreement is classified as Level 3 in the fair value hierarchy. The significant unobservable inputs used in the fair value measurement of the Company’s funding swap agreement are the potential future changes in the conversion rate, expected term and growth rate of the market price of Visa Class A common shares. Material increases (or decreases) in any of those inputs may result in a significantly higher (or lower) fair value measurement.

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018 are summarized below:

Fair Value Measurements as of December 31, 2019

Quoted Prices in

Significant

Active Markets for

Other

Significant

Identical Assets

Observable

Unobservable

(dollars in thousands)

(Level 1)

Inputs (Level 2)

Inputs (Level 3)

Total

Assets

U.S. Treasury securities

—

29,888

—

29,888

Government-sponsored enterprises debt securities

—

101,439

—

101,439

Mortgage-backed securities:

Residential - Government agency⁽¹⁾

—

291,209

—

291,209

Residential - Government-sponsored enterprises⁽¹⁾

—

399,492

—

399,492

Commercial - Government-sponsored enterprises

—

101,719

—

101,719

Collateralized mortgage obligations:

Government agency

—

2,381,278

—

2,381,278

Government-sponsored enterprises

—

770,619

—

770,619

Total available-for-sale securities

—

4,075,644

—

4,075,644

Other assets⁽²⁾

—

63,539

—

63,539

Liabilities

Other liabilities⁽³⁾

—

(682)

(4,233)

(4,915)

Total

—

4,138,501

(4,233)

4,134,268


	Fair Value Measurements as of December 31, 2018
	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
(dollars in thousands)	(Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
Assets
U.S. Treasury securities	$	—	$	389,470	$	—	$	389,470
Government-sponsored enterprises debt securities		—		241,594		—		241,594
Mortgage-backed securities:
Residential - Government agency⁽¹⁾		—		411,536		—		411,536
Residential - Government-sponsored enterprises⁽¹⁾		—		150,847		—		150,847
Collateralized mortgage obligations:
Government agency		—		2,682,449		—		2,682,449
Government-sponsored enterprises		—		602,592		—		602,592
Debt securities issued by states and political subdivisions		—		19,854		—		19,854
Total available-for-sale securities		—		4,498,342		—		4,498,342
Other assets⁽²⁾		—		12,336		—		12,336
Liabilities
Other liabilities⁽³⁾		—		(12,085)		(2,607)		(14,692)
Total	$	—	$	4,498,593	$	(2,607)	$	4,495,986

(1)	Backed by residential real estate.

(2)	Other assets include derivative assets.

(3)	Other liabilities include derivative liabilities.

Changes in Fair Value Levels

For any transfers in and out of the levels of the fair value hierarchy, the Company discloses the fair value measurement at the beginning of the reporting period during which the transfer occurred. During the years ended December 31, 2019 and 2018, there were no transfers between fair value hierarchy levels.

The changes in Level 3 liabilities measured at fair value on a recurring basis for the years ended December 31, 2019 and 2018 are summarized below:


	Visa Derivative
(dollars in thousands)	2019		2018
Year Ended December 31,
Balance as of January 1,	$	(2,607)	$	(5,439)
Total net losses included in other noninterest income		(5,354)		(173)
Settlements		3,728		3,005
Balance as of December 31,	$	(4,233)	$	(2,607)
Total net losses included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of December 31,	$	(5,354)	$	(173)

Assets and Liabilities Carried at Other Than Fair Value

The following tables summarize for the periods indicated the estimated fair value of the Company’s financial instruments that are not required to be carried at fair value on a recurring basis, excluding leases and deposit liabilities with no defined or contractual maturity:

December 31, 2019

Fair Value Measurements

Quoted Prices in

Significant

Active Markets

Other

Unobservable

for Identical

Observable

Inputs

(dollars in thousands)

Book Value

Assets (Level 1)

Inputs (Level 2)

(Level 3)

Total

Financial assets:

Cash and cash equivalents

694,017

360,375

333,642

—

694,017

Loans held for sale

904

—

904

—

904

Loans⁽¹⁾

13,009,167

—

13,140,898

Financial liabilities:

Time deposits⁽²⁾

2,510,157

—

2,501,478

—

2,501,478

Short-term borrowings

400,000

—

401,709

—

401,709

Long-term borrowings⁽³⁾

200,000

—

207,104

—

207,104


	December 31, 2018
			Fair Value Measurements
			Quoted Prices in		Significant		Significant
			Active Markets		Other		Unobservable
			for Identical		Observable		Inputs
(dollars in thousands)	Book Value		Assets (Level 1)		Inputs (Level 2)		(Level 3)		Total
Financial assets:
Cash and cash equivalents	$	1,003,637	$	396,836	$	606,801	$	—	$	1,003,637
Loans held for sale		432		—		432		—		432
Loans⁽¹⁾		12,928,422		—		—		12,664,170		12,664,170

Financial liabilities:
Time deposits⁽²⁾	$	3,092,164	$	—	$	3,058,792	$	—	$	3,058,792
Long-term borrowings⁽³⁾		600,000		—		602,088		—		602,088

(1)	Excludes financing leases of $202.5 million at December 31, 2019 and $147.8 million at December 31, 2018.

(2)	Excludes deposit liabilities with no defined or contractual maturity of $13.9 billion at December 31, 2019 and $14.1 billion at December 31, 2018.

(3)	Excludes capital lease obligations of $19 thousand and $26 thousand at December 31, 2019 and 2018, respectively.

Unfunded loan and lease commitments and letters of credit are not included in the tables above. As of December 31, 2019 and 2018, the Company had $6.1 billion and $5.8 billion, respectively, of unfunded loan and lease commitments and letters of credit. A reasonable estimate of the fair value of these instruments is the carrying value of deferred fees plus the related reserve for unfunded commitments, which totaled $14.4 million and $14.2 million at December 31, 2019 and 2018, respectively. No active trading market exists for these instruments and the estimated fair value does not include value associated with the borrower relationship. The Company does not estimate the fair values of certain unfunded loan and lease commitments that can be canceled by providing notice to the borrower. As Company-level data is incorporated into the fair value measurement, unfunded loan and lease commitments and letters of credit are classified as Level 3.

Valuation Techniques Used in the Fair Value Measurement of Assets and Liabilities Carried at the Lower of Cost or Fair Value

The Company applies the following valuation techniques to assets measured at the lower of cost or fair value:

Mortgage servicing rights

MSRs are carried at the lower of cost or fair value and are therefore subject to fair value measurements on a nonrecurring basis. The fair value of MSRs is determined using models which use significant unobservable inputs, such as estimates of prepayment rates, the resultant weighted average lives of the MSRs and the option-adjusted spread levels. Accordingly, the Company classifies MSRs as Level 3.

Impaired loans

A large portion of the Company’s impaired loans are collateral dependent and are measured at fair value on a nonrecurring basis using collateral values as a practical expedient. The fair values of collateral for impaired loans are primarily based on real estate appraisal reports prepared by third-party appraisers less disposition costs, present value of the expected future cash flows or the loan’s observable market price. Certain loans are measured based on the present value of expected future cash flows, discounted at the loan’s effective rate, which is not a fair value measurement. The Company measures the impairment on certain loans and leases by performing a lower-of-cost-or-fair-value analysis. If impairment is determined by the value of the collateral or an observable market price, it is written down to fair value on a nonrecurring basis as Level 3.

Other real estate owned

The Company values these properties at fair value at the time the Company acquires them, which establishes their new cost basis. After acquisition, the Company carries such properties at the lower of cost or fair value less estimated selling costs on a nonrecurring basis. Fair value is measured on a nonrecurring basis using collateral values as a practical expedient. The fair values of collateral for other real estate owned are primarily based on real estate appraisal reports prepared by third-party appraisers less disposition costs and are classified as Level 3.

Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis

The Company may be required to record certain assets at fair value on a nonrecurring basis in accordance with GAAP. These assets are subject to fair value adjustments that result from the application of lower of cost or fair value accounting or write-downs of individual assets to fair value.

The following table provides the level of valuation inputs used to determine each fair value adjustment and the fair value of the related individual assets or portfolio of assets with fair value adjustments on a nonrecurring basis as of December 31, 2019 and 2018:


(dollars in thousands)	Level 1		Level 2		Level 3
December 31, 2019
Impaired loans	$	—	$	—	$	1,502
December 31, 2018
Impaired loans	$	—	$	—	$	402

Total losses on impaired loans for the years ended December 31, 2019, 2018 and 2017 were $1.0 million, $0.7 million and $0.7 million, respectively.

For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of December 31, 2019 and 2018, the significant unobservable inputs used in the fair value measurements were as follows:


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2019
				Significant	Range
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	(Weighted Average)
Impaired loans	$	1,502	Appraisal Value	Appraisal Value	n/m⁽¹⁾
Visa derivative	$	(4,233)	Discounted Cash Flow	Expected Conversion Rate	1.6228
				Expected Term	1 year
				Growth Rate	13%


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2018
					Range
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	(Weighted Average)
Impaired loans	$	402	Appraisal Value	Appraisal Value	n/m⁽¹⁾
Visa derivative	$	(2,607)	Discounted Cash Flow	Expected Conversion Rate	1.6298
				Expected Term	4 years
				Growth Rate	15%

(1)	The fair value of these assets is determined based on appraised values of collateral or broker price opinions, the range of which is not meaningful to disclose.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Benefit Plans - 401(k) Savings Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Salaries and employee benefits
401(k) Savings Plan and Money Purchase Pension Plan
Employer contributions	$ 7.5	$ 7.8	$ 7.3
First Hawaiian, Inc. 401(k) Savings Plan \| Maximum
401(k) Savings Plan and Money Purchase Pension Plan
Employer contributions, as percentage of employee's pay	5.00%	5.00%	5.00%
First Hawaiian, Inc. Future Plan
401(k) Savings Plan and Money Purchase Pension Plan
Employer contributions, as percentage of employee's pay	2.50%	2.50%	2.50%

Loans and Leases

12 Months Ended

Dec. 31, 2019

Loans and Leases.

Loans and Leases

4. Loans and Leases

As of December 31, 2019 and 2018, loans and leases were comprised of the following:


	December 31,
(dollars in thousands)	2019		2018
Commercial and industrial	$	2,743,242	$	3,208,760
Commercial real estate		3,463,953		2,990,783
Construction		519,241		626,757
Residential:
Residential mortgage		3,768,936		3,527,101
Home equity line		893,239		912,517
Total residential		4,662,175		4,439,618
Consumer		1,620,556		1,662,504
Lease financing		202,483		147,769
Total loans and leases	$	13,211,650	$	13,076,191

Outstanding loan balances are reported net of deferred loan costs and fees of $41.0 million and $36.3 million at December 31, 2019 and 2018, respectively.

As of December 31, 2019, residential real estate loans totaling $2.9 billion were pledged to collateralize the Company’s borrowing capacity at the FHLB, and consumer, commercial and industrial and commercial real estate loans totaling $953.2 million were pledged to collateralize the borrowing capacity at the FRB. As of December 31, 2018, residential real estate loans totaling $2.5 billion were pledged to collateralize the Company’s borrowing capacity at the FHLB, and consumer and commercial and industrial loans totaling $957.0 million were pledged to collateralize the borrowing capacity at the FRB. Residential real estate loans collateralized by properties that were in the process of foreclosure totaled $4.1 million and $4.6 million at December 31, 2019 and 2018, respectively.

In the course of evaluating the credit risk presented by a customer and the pricing that will adequately compensate the Company for assuming that risk, management may require a certain amount of collateral support. The type of collateral held varies, but may include accounts receivable, inventory, land, buildings, equipment, income-producing commercial properties and residential real estate. The Company applies the same collateral policy for loans whether they are funded immediately or on a delayed basis. The loan and lease portfolio is principally located in Hawaii and, to a lesser extent, on the U.S. Mainland, Guam and Saipan. The risk inherent in the portfolio depends upon both the economic stability of the state or territories, which affects property values, and the financial strength and creditworthiness of the borrowers.

At December 31, 2019 and 2018, remaining loan and lease commitments were comprised of the following:


	December 31,
(dollars in thousands)	2019		2018
Commercial and industrial	$	2,451,362	$	2,484,857
Commercial real estate		130,597		114,186
Construction		718,121		526,938
Residential:
Residential mortgage		842		121
Home equity line		1,052,739		913,636
Total residential		1,053,581		913,757
Consumer		1,554,029		1,509,853
Total loan and lease commitments	$	5,907,690	$	5,549,591

Long-Term Borrowings (Tables)

12 Months Ended

Dec. 31, 2019

Long-Term Borrowings

Schedule of long-term borrowings



(dollars in thousands)	2019		2018
Finance lease	$	19	$	26
FHLB fixed-rate advances⁽¹⁾		200,000		600,000
Total long-term borrowings	$	200,019	$	600,026

(1)	Interest is payable monthly.

Schedule of future contractual principal payments on long-term borrowings

At December 31, 2019, future contractual principal payments and maturities on long-term borrowings were as follows:


	Principal
(dollars in thousands)	Payments
Year ending December 31:
2020	$	9
2021		10
2022		—
2023⁽¹⁾		100,000
2024⁽²⁾		100,000
Total	$	200,019

(1)	FHLB fixed-rate advance callable on December 4, 2020 with an interest rate of 2.80%

(2)	FHLB fixed-rate advance callable on January 15, 2021 with an interest rate of 2.65%

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Transfers of Financial Assets - Carrying Amounts of Assets Pledged as Collateral, Borrowings and Other Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Carrying amounts of the assets pledged as collateral
Public deposits	$ 1,543,492	$ 1,749,726
Federal Home Loan Bank	2,928,581	2,497,030
Federal Reserve Bank	953,169	957,017
ACH transactions	155,360	150,903
Interest rate swaps	43,296	28,843
Total	5,623,898	5,383,519
Securities for reverse repurchase agreements	0	0
Extinguishment of debt
In-substance debt defeasance	$ 0	$ 0

Investment Securities - Other-Than-Temporary Impairment (Details)	1 Months Ended	12 Months Ended
	Jan. 31, 2019 USD ($) security	Dec. 31, 2019 USD ($) security	Dec. 31, 2018 USD ($) security
Investment securities
Total OTTI write-downs included in earnings			$ (24,085,000)
Number of securities intended to sell or sold \| security	48	0	48
Amortized cost of securities intended to sell			$ 898,200,000
Additional loss from sale of securities	$ 2,600,000
Expected credit losses in debt securities		$ 0	0
OTTI related to credit losses		$ 0	0
U.S. Treasury securities
Investment securities
Total OTTI write-downs included in earnings			(13,634,000)
Government-sponsored enterprises debt securities
Investment securities
Total OTTI write-downs included in earnings			(1,344,000)
Residential - Government agency
Investment securities
Total OTTI write-downs included in earnings			(146,000)
Residential - Government-sponsored enterprises
Investment securities
Total OTTI write-downs included in earnings			(763,000)
Government agency
Investment securities
Total OTTI write-downs included in earnings			(5,064,000)
Government-sponsored enterprises
Investment securities
Total OTTI write-downs included in earnings			(2,711,000)
Debt securities issued by states and political subdivisions
Investment securities
Total OTTI write-downs included in earnings			$ (423,000)

Other Assets - Quantitative Assumptions Used for MSRs (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Minimum
Quantitative assumptions used in determining lower of cost or fair value of MSRs
Conditional prepayment rate (as a percent)	10.74%	7.86%
Life in years (of the MSR)	2 years 14 days	3 years 5 months 4 days
Weighted-average coupon rate (as a percent)	3.96%	3.97%
Discount rate (as a percent)	10.00%	10.00%
Maximum
Quantitative assumptions used in determining lower of cost or fair value of MSRs
Conditional prepayment rate (as a percent)	23.39%	19.26%
Life in years (of the MSR)	6 years 3 months 29 days	7 years 8 months 4 days
Weighted-average coupon rate (as a percent)	7.26%	6.70%
Discount rate (as a percent)	10.01%	10.02%
Weighted Average
Quantitative assumptions used in determining lower of cost or fair value of MSRs
Conditional prepayment rate (as a percent)	11.10%	8.31%
Life in years (of the MSR)	5 years 11 months 26 days	7 years 2 months 8 days
Weighted-average coupon rate (as a percent)	4.01%	4.02%
Discount rate (as a percent)	10.00%	10.00%

Benefit Plans - Change in Net Actuarial Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Benefit plans
Percentage of greater of projected benefit obligation or fair value of plan assets for amortization of actuarial gains or losses	5.00%
Amortization period for actuarial gains and losses that exceed threshold	5 years
Pension Benefits
Change in net actuarial loss and amortization
Net actuarial loss (gain) at beginning of year	$ 41,822	$ 43,547
Amortization cost	(6,995)	(7,315)	$ (8,625)
Liability loss (gain)	21,512	(6,619)	9,757
Asset (gain) loss	(16,278)	12,209	(8,619)
Net actuarial loss (gain) at end of year	40,061	41,822	43,547
Other Benefits
Change in net actuarial loss and amortization
Net actuarial loss (gain) at beginning of year	(2,507)	248
Amortization cost	385
Liability loss (gain)	540	(2,755)	(34)
Net actuarial loss (gain) at end of year	$ (1,582)	$ (2,507)	$ 248

Investment Securities - Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Amortized Cost
Due in one year or less	$ 29,832
Due after one year through five years	101,697
Total contractual maturities	131,529
Amortized Cost	4,080,663	$ 4,640,419
Fair Value
Due in one year or less	29,888
Due after one year through five years	101,439
Total contractual maturities	131,327
Fair value	4,075,644	4,498,342
Mortgage-backed securities:
Amortized Cost
Government debt securities, mortgaged-backed securities and obligations	786,968
Fair Value
Government debt securities, mortgaged-backed securities and collateralized mortgage obligations	792,420
Residential - Government agency
Amortized Cost
Government debt securities, mortgaged-backed securities and obligations	290,131
Amortized Cost	290,131	426,710
Fair Value
Government debt securities, mortgaged-backed securities and collateralized mortgage obligations	291,209
Fair value	291,209	411,536
Residential - Government-sponsored enterprises
Amortized Cost
Government debt securities, mortgaged-backed securities and obligations	395,039
Amortized Cost	395,039	156,056
Fair Value
Government debt securities, mortgaged-backed securities and collateralized mortgage obligations	399,492
Fair value	399,492	150,847
Commercial - Government-sponsored enterprises
Amortized Cost
Government debt securities, mortgaged-backed securities and obligations	101,798
Amortized Cost	101,798
Fair Value
Government debt securities, mortgaged-backed securities and collateralized mortgage obligations	101,719
Fair value	101,719
Collateralized mortgage obligations
Amortized Cost
Government debt securities, mortgaged-backed securities and obligations	3,162,166
Fair Value
Government debt securities, mortgaged-backed securities and collateralized mortgage obligations	3,151,897
Government agency
Amortized Cost
Government debt securities, mortgaged-backed securities and obligations	2,390,143
Amortized Cost	2,390,143	2,779,620
Fair Value
Government debt securities, mortgaged-backed securities and collateralized mortgage obligations	2,381,278
Fair value	2,381,278	2,682,449
Government-sponsored enterprises
Amortized Cost
Government debt securities, mortgaged-backed securities and obligations	772,023
Amortized Cost	772,023	620,337
Fair Value
Government debt securities, mortgaged-backed securities and collateralized mortgage obligations	770,619
Fair value	$ 770,619	$ 602,592