0000036377false00000363772021-04-232021-04-23

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 23, 2021

FIRST HAWAIIAN, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

001-14585

99-0156159

(Commission File Number)

(IRS Employer Identification No.)

999 Bishop St., 29th Floor

Honolulu, Hawaii

96813

(Address of Principal Executive Offices)

(Zip Code)

(808) 525-7000

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:

Trading Symbol(s)

Name of each exchange on which registered:

Common Stock, par value $0.01 per share

FHB

NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.02 Results of Operations and Financial Condition.

On July 23, 2021, First Hawaiian, Inc. (together with its consolidated subsidiary, “First Hawaiian”) reported its earnings for the quarter ended June 30, 2021. A copy of First Hawaiian’s press release containing this information is being furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

All information provided in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any filing of First Hawaiian under the Securities Act of 1933, as amended, or the Exchange Act except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits

Exhibit No.

Description

99.1

Press release of First Hawaiian, Inc. dated July 23, 2021 containing financial information for its quarter ended June 30, 2021.

104

Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Pril

FIRST HAWAIIAN, INC.

Date: July 23, 2021

By:

/s/ Robert S. Harrison

Robert S. Harrison

Chairman of the Board, President and Chief Executive Officer

(Principal Executive Officer)

3

EXHIBIT 99.1

Graphic

For Immediate Release

First Hawaiian, Inc. Reports Second Quarter 2021 Financial Results and Declares Dividend

HONOLULU, Hawaii July 23, 2021--(Globe Newswire)--First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended June 30, 2021.

“We are pleased with our financial performance during the second quarter, which was driven by the strong return of tourism and pickup in the local economy,” said Bob Harrison, Chairman, President and CEO. “We had good activity in the loan portfolio, solid growth in fee income and credit quality remained excellent. In addition, we benefitted from the improved outlook for the local economy with the release of $35 million from our reserves for credit losses.”

On July 21, 2021 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on September 3, 2021 to stockholders of record at the close of business on August 23, 2021.

Second Quarter 2021 Highlights:

Net income of $86.7 million, or $0.67 per diluted share
Total loans and leases decreased $196.5 million, or 1.5%, versus prior quarter
Total deposits increased $701.4 million, or 3.5%, versus prior quarter
Recorded a $35.0 million negative provision for credit losses
Board of Directors declared a quarterly dividend of $0.26 per share
Repurchased $22.4 million of stock under share repurchase program

Balance Sheet

Total assets were $24.2 billion as of June 30, 2021, compared to $23.5 billion as of March 31, 2021.

Gross loans and leases were $13.1 billion as of June 30, 2021, a decrease of $196.5 million, or 1.5%, from $13.3 billion as of March 31, 2021.

Total deposits were $20.8 billion as of June 30, 2021, an increase of $701.4 million, or 3.5%, from $20.1 billion as of March 31, 2021.

Net Interest Income

Net interest income for the second quarter of 2021 was $131.5 million, an increase of $2.3 million, or 1.8%, compared to $129.2 million for the prior quarter.

The net interest margin (NIM) was 2.46% in the second quarter of 2021, a decrease of 9 basis points compared to 2.55% in the first quarter of 2021.

Provision Expense

During the quarter ended June 30, 2021, we recorded a $35.0 million negative provision for credit losses. We did not record a provision for credit losses. in the quarter ended March 31, 2021.

Noninterest Income

Noninterest income was $49.4 million in the second quarter of 2021, an increase of $5.5 million compared to noninterest income of $43.9 million in the first quarter of 2021.

Noninterest Expense

Noninterest expense was $99.4 million in the second quarter of 2021, an increase of $3.1 million compared to noninterest expense of $96.3 million in the first quarter of 2021.

The efficiency ratio was 54.7% and 55.5% for the quarters ended June 30, 2021 and March 31, 2021, respectively.


Taxes

The effective tax rate was 25.5% for the quarter ended June 30, 2021 and 24.8% for the quarter ended March 31, 2021.

Asset Quality

The allowance for credit losses was $169.1 million, or 1.29% of total loans and leases, as of June 30, 2021, compared to $200.4 million, or 1.51% of total loans and leases, as of March 31, 2021. The reserve for unfunded commitments was $29.2 million as of June 30, 2021 compared to $34.1 million as of March 31, 2021. Net charge-offs were $1.1 million, or 0.03% of average loans and leases on an annualized basis for the quarter ended June 30, 2021, compared to net charge-offs of $4.6 million, or 0.14% of average loans and leases on an annualized basis for the quarter ended March 31, 2021. Total non-performing assets were $8.9 million, or 0.07% of total loans and leases and other real estate owned, at June 30, 2021, compared to total non-performing assets of $9.1 million, or 0.07% of total loans and leases and other real estate owned at March 31, 2021.

Capital

Total stockholders’ equity was $2.7 billion at both June 30, 2021 and March 31, 2021.

The tier 1 leverage, common equity tier 1 and total capital ratios were 7.68%, 12.76% and 14.01%, respectively, at June 30, 2021, compared with 7.90%, 12.82% and 14.07%, respectively, at March 31, 2021.

The Company repurchased 0.8 million shares of common stock at a total cost of $22.4 million under the stock repurchase program in the second quarter. The average cost was $27.99 per share repurchased. Remaining buyback authority under the stock repurchase program was $43.1 million at June 30, 2021.

First Hawaiian, Inc.

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

Conference Call Information

First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time. To access the call, participants should dial (844) 452-2942 (US/Canada), or (574) 990-9846 (International) ten minutes prior to the start of the call and enter the conference ID: 3681457. A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location. A telephonic replay of the conference call will be available two hours after the conclusion of the call until 4:30 p.m. (Eastern Time) on July 30, 2021. Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 3681457.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Further, statements about the potential effects of the COVID-19 pandemic on our businesses and financial results and conditions may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the ongoing impacts of COVID-19, the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2020 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021.


Use of Non-GAAP Financial Measures

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

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

Return on average tangible stockholders’ equity, core return on average tangible stockholders’ equity, return on average tangible assets, core return on average tangible assets and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our core return on average tangible stockholders’ equity as the ratio of core net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our core return on average tangible assets as the ratio of core net income to average tangible assets. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP.

Tables 14 and 15 at the end of this document provide a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.

Investor Relations Contact:

Media Contact:

Kevin Haseyama, CFA

Susan Kam

(808) 525-6268

(808) 525-6254

khaseyama@fhb.com

skam@fhb.com


Financial Highlights

Table 1

For the Three Months Ended

For the Six Months Ended

June 30, 

March 31, 

June 30, 

June 30, 

(dollars in thousands, except per share data)

    

2021

    

2021

    

2020

    

2021

    

2020

 

Operating Results:

Net interest income

$

131,481

$

129,158

$

127,822

$

260,639

$

266,505

Provision for credit losses

(35,000)

55,446

(35,000)

96,646

Noninterest income

49,371

43,868

45,656

93,239

94,884

Noninterest expense

99,388

96,306

91,450

195,694

187,916

Net income

86,741

57,693

20,049

144,434

58,914

Basic earnings per share

0.67

0.44

0.15

1.11

0.45

Diluted earnings per share

0.67

0.44

0.15

1.11

0.45

Dividends declared per share

0.26

0.26

0.26

0.52

0.52

Dividend payout ratio

38.81

%

59.09

%

173.33

%

46.85

%

115.56

%

Supplemental Income Statement Data (non-GAAP):

Core net interest income

$

131,481

$

129,158

$

127,822

$

260,639

$

266,505

Core noninterest income

49,269

43,868

45,867

93,137

95,010

Core noninterest expense

98,228

96,306

91,450

194,534

187,916

Core net income

87,704

57,693

20,204

145,397

59,007

Core basic earnings per share

0.68

0.44

0.16

1.12

0.45

Core diluted earnings per share

0.68

0.44

0.16

1.12

0.45

Performance Ratios(1):

Net interest margin

2.46

%  

2.55

%  

2.58

%  

2.50

%  

2.84

%

Core net interest margin (non-GAAP)

2.46

%  

2.55

%  

2.58

%  

2.50

%  

2.84

%

Efficiency ratio

54.74

%  

55.53

%  

52.70

%  

55.12

%  

51.99

%

Core efficiency ratio (non-GAAP)

54.13

%  

55.53

%  

52.64

%  

54.81

%  

51.97

%

Return on average total assets

1.45

%  

1.02

%  

0.36

%  

1.24

%  

0.56

%

Core return on average total assets (non-GAAP)

1.46

%  

1.02

%  

0.36

%  

1.25

%  

0.56

%

Return on average tangible assets (non-GAAP)

1.51

%  

1.07

%  

0.38

%  

1.30

%  

0.58

%

Core return on average tangible assets (non-GAAP)(2)

1.53

%  

1.07

%  

0.38

%  

1.30

%  

0.58

%

Return on average total stockholders' equity

12.92

%  

8.58

%  

2.99

%  

10.75

%  

4.42

%

Core return on average total stockholders' equity (non-GAAP)

13.07

%  

8.58

%  

3.01

%  

10.82

%  

4.43

%

Return on average tangible stockholders' equity (non-GAAP)

20.51

%  

13.51

%  

4.74

%  

16.99

%  

7.04

%

Core return on average tangible stockholders’ equity (non-GAAP)(3)

20.74

%  

13.51

%  

4.77

%  

17.10

%  

7.05

%

Average Balances:

Average loans and leases

$

13,205,086

$

13,242,270

$

13,956,669

$

13,223,575

$

13,574,048

Average earning assets

21,539,264

20,476,149

19,854,795

21,010,643

18,834,492

Average assets

24,015,065

22,944,699

22,341,654

23,482,839

21,327,479

Average deposits

20,638,015

19,503,067

18,540,394

20,073,676

17,541,849

Average stockholders' equity

2,691,966

2,727,701

2,697,775

2,709,735

2,679,293

Market Value Per Share:

Closing

28.34

27.37

17.24

28.34

17.24

High

29.85

30.80

21.50

30.80

31.25

Low

24.75

23.14

13.56

23.14

13.56


As of

As of

As of

As of

June 30, 

March 31, 

December 31, 

June 30, 

(dollars in thousands, except per share data)

2021

2021

 

2020

 

2020

Balance Sheet Data:

Loans and leases

$

13,103,785

$

13,300,289

$

13,279,097

$

13,764,030

Total assets

24,246,328

23,497,596

22,662,831

22,993,715

Total deposits

20,835,115

20,133,681

19,227,723

19,361,634

Short-term borrowings

200,000

Long-term borrowings

200,000

200,010

200,010

200,019

Total stockholders' equity

2,731,341

2,683,630

2,744,104

2,701,897

Per Share of Common Stock:

Book value

$

21.17

$

20.68

$

21.12

$

20.81

Tangible book value (non-GAAP)(4)

13.45

13.01

13.46

13.14

Asset Quality Ratios:

Non-accrual loans and leases / total loans and leases

0.07

%  

0.07

%

0.07

%

0.24

%  

Allowance for credit losses for loans and leases / total loans and leases

1.29

%  

1.51

%

1.57

%

1.40

%  

Capital Ratios:

Common Equity Tier 1 Capital Ratio

  

12.76

%  

  

12.82

%

  

12.47

%

11.86

%  

Tier 1 Capital Ratio

12.76

%  

12.82

%

12.47

%

11.86

%  

Total Capital Ratio

14.01

%  

14.07

%

13.73

%

13.11

%  

Tier 1 Leverage Ratio

7.68

%  

7.90

%

8.00

%

7.75

%  

Total stockholders' equity to total assets

11.26

%  

11.42

%

12.11

%

11.75

%  

Tangible stockholders' equity to tangible assets (non-GAAP)

7.47

%  

7.50

%

8.07

%

7.76

%  

Non-Financial Data:

Number of branches

54

54

54

58

Number of ATMs

294

297

297

295

Number of Full-Time Equivalent Employees

2,087

2,090

2,103

2,100


(1)Except for the efficiency ratio and the core efficiency ratio, amounts are annualized for the three and six months ended June 30, 2021 and 2020 and the three months ended March 31, 2021.
(2)Core return on average tangible assets is a non-GAAP financial measure. We compute our core return on average tangible assets as the ratio of core net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.
(3)Core return on average tangible stockholders’ equity is a non-GAAP financial measure. We compute our core return on average tangible stockholders’ equity as the ratio of core net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.
(4)Tangible book value is a non-GAAP financial measure. We compute our tangible book value as the ratio of tangible stockholders’ equity to shares outstanding. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.


Consolidated Statements of Income

Table 2

For the Three Months Ended

For the Six Months Ended

June 30, 

March 31, 

June 30, 

June 30, 

(dollars in thousands, except per share amounts)

    

2021

    

2021

    

2020

    

2021

    

2020

Interest income

Loans and lease financing

$

110,919

$

110,939

$

122,298

$

221,858

$

257,269

Available-for-sale securities

24,637

23,146

17,529

47,783

38,739

Other

666

491

792

1,157

3,143

Total interest income

136,222

134,576

140,619

270,798

299,151

Interest expense

Deposits

3,363

4,056

8,583

7,419

24,183

Short-term and long-term borrowings

1,378

1,362

4,214

2,740

8,463

Total interest expense

4,741

5,418

12,797

10,159

32,646

Net interest income

131,481

129,158

127,822

260,639

266,505

Provision for credit losses

(35,000)

55,446

(35,000)

96,646

Net interest income after provision for credit losses

166,481

129,158

72,376

295,639

169,859

Noninterest income

Service charges on deposit accounts

6,632

6,718

5,927

13,350

14,877

Credit and debit card fees

16,746

14,551

10,870

31,297

25,819

Other service charges and fees

10,303

8,846

7,912

19,149

16,451

Trust and investment services income

8,707

8,492

8,664

17,199

18,255

Bank-owned life insurance

3,104

2,389

4,432

5,493

6,692

Investment securities gains (losses), net

102

(211)

102

(126)

Other

3,777

2,872

8,062

6,649

12,916

Total noninterest income

49,371

43,868

45,656

93,239

94,884

Noninterest expense

Salaries and employee benefits

45,982

43,936

42,414

89,918

87,243

Contracted services and professional fees

16,516

17,188

15,478

33,704

31,533

Occupancy

7,314

7,170

7,302

14,484

14,545

Equipment

6,362

5,491

5,207

11,853

9,915

Regulatory assessment and fees

1,826

2,034

2,100

3,860

4,046

Advertising and marketing

1,469

1,591

1,402

3,060

3,225

Card rewards program

6,262

4,835

5,163

11,097

12,178

Other

13,657

14,061

12,384

27,718

25,231

Total noninterest expense

99,388

96,306

91,450

195,694

187,916

Income before provision for income taxes

116,464

76,720

26,582

193,184

76,827

Provision for income taxes

29,723

19,027

6,533

48,750

17,913

Net income

$

86,741

$

57,693

$

20,049

$

144,434

$

58,914

Basic earnings per share

$

0.67

$

0.44

$

0.15

$

1.11

$

0.45

Diluted earnings per share

$

0.67

$

0.44

$

0.15

$

1.11

$

0.45

Basic weighted-average outstanding shares

129,392,339

129,933,104

129,856,730

129,661,228

129,876,218

Diluted weighted-average outstanding shares

129,828,847

130,589,878

130,005,195

130,164,762

130,163,722


Consolidated Balance Sheets

Table 3

June 30, 

March 31, 

December 31, 

June 30, 

(dollars in thousands)

    

2021

    

2021

    

2020

    

2020

Assets

Cash and due from banks

$

347,861

$

278,994

$

303,373

$

347,592

Interest-bearing deposits in other banks

1,558,437

983,816

737,571

1,507,630

Investment securities, at fair value (amortized cost: $6,951,153 as of June 30, 2021, $6,708,431 as of March 31, 2021, $5,985,031 as of December 31, 2020 and $5,025,433 as of June 30, 2020)

6,953,930

6,692,479

6,071,415

5,135,775

Loans held for sale

1,241

9,390

11,579

6,698

Loans and leases

13,103,785

13,300,289

13,279,097

13,764,030

Less: allowance for credit losses

169,148

200,366

208,454

192,120

Net loans and leases

12,934,637

13,099,923

13,070,643

13,571,910

Premises and equipment, net

319,452

319,949

322,401

322,919

Other real estate owned and repossessed personal property

446

Accrued interest receivable

66,734

69,879

69,626

58,420

Bank-owned life insurance

466,402

468,927

466,537

458,720

Goodwill

995,492

995,492

995,492

995,492

Mortgage servicing rights

10,007

10,869

10,731

11,595

Other assets

592,135

567,878

603,463

576,518

Total assets

$

24,246,328

$

23,497,596

$

22,662,831

$

22,993,715

Liabilities and Stockholders' Equity

Deposits:

Interest-bearing

$

12,245,193

$

11,958,606

$

11,705,609

$

12,481,543

Noninterest-bearing

8,589,922

8,175,075

7,522,114

6,880,091

Total deposits

20,835,115

20,133,681

19,227,723

19,361,634

Short-term borrowings

200,000

Long-term borrowings

200,000

200,010

200,010

200,019

Retirement benefits payable

144,101

143,736

143,373

138,624

Other liabilities

335,771

336,539

347,621

391,541

Total liabilities

21,514,987

20,813,966

19,918,727

20,291,818

Stockholders' equity

Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,542,398 / 129,019,871 shares as of June 30, 2021, issued/outstanding: 140,455,180 / 129,749,890 shares as of March 31, 2021, issued/outstanding: 140,191,133 / 129,912,272 shares as of December 31, 2020 and issued/outstanding: 140,140,542 / 129,866,898 shares as of June 30, 2020)

1,405

1,405

1,402

1,401

Additional paid-in capital

2,520,790

2,517,048

2,514,014

2,509,271

Retained earnings

550,511

497,418

473,974

415,296

Accumulated other comprehensive (loss) income, net

(29,702)

(43,435)

31,604

52,731

Treasury stock (11,522,527 shares as of June 30, 2021, 10,705,290 shares as of March 31, 2021, 10,278,861 shares as of December 31, 2020 and 10,273,644 shares as of June 30, 2020)

(311,663)

(288,806)

(276,890)

(276,802)

Total stockholders' equity

2,731,341

2,683,630

2,744,104

2,701,897

Total liabilities and stockholders' equity

$

24,246,328

$

23,497,596

$

22,662,831

$

22,993,715


Average Balances and Interest Rates

Table 4

Three Months Ended

Three Months Ended

Three Months Ended

June 30, 2021

March 31, 2021

June 30, 2020

Average

Income/

Yield/

Average

Income/

Yield/

Average

Income/

Yield/

(dollars in millions)

    

Balance

    

Expense

    

Rate

    

Balance

    

Expense

    

Rate

    

Balance

    

Expense

    

Rate

 

Earning Assets

Interest-Bearing Deposits in Other Banks

$

1,503.0

$

0.4

0.10

%  

$

938.7

$

0.2

0.10

%  

$

1,436.2

$

0.4

0.10

%

Available-for-Sale Investment Securities

Taxable

6,298.3

22.5

1.43

5,949.9

22.1

1.49

4,389.7

17.5

1.60

Non-Taxable

468.4

2.7

2.30

278.0

1.3

1.80

0.7

2.58

Total Available-for-Sale Investment Securities

6,766.7

25.2

1.49

6,227.9

23.4

1.50

4,390.4

17.5

1.60

Loans Held for Sale

2.0

1.44

9.2

0.1

2.46

9.8

0.1

2.93

Loans and Leases(1)

Commercial and industrial

2,882.1

21.1

2.94

3,026.7

20.4

2.74

3,601.0

24.3

2.71

Commercial real estate

3,419.7

25.3

2.97

3,385.2

24.9

2.98

3,438.8

28.3

3.31

Construction

800.9

6.3

3.15

746.8

5.8

3.16

584.1

4.9

3.35

Residential:

Residential mortgage

3,765.4

34.0

3.62

3,696.1

34.7

3.76

3,682.7

35.7

3.88

Home equity line

812.6

5.5

2.72

822.0

5.7

2.80

885.2

6.8

3.07

Consumer

1,277.9

16.9

5.32

1,323.7

17.7

5.43

1,526.5

20.6

5.42

Lease financing

246.5

1.9

3.06

241.8

1.8

3.02

238.4

1.7

2.88

Total Loans and Leases

13,205.1

111.0

3.37

13,242.3

111.0

3.39

13,956.7

122.3

3.52

Other Earning Assets

62.5

0.3

1.91

58.0

0.3

1.79

61.7

0.4

2.79

Total Earning Assets(2)

21,539.3

136.9

2.55

20,476.1

135.0

2.66

19,854.8

140.7

2.84

Cash and Due from Banks

290.7

294.0

295.1

Other Assets

2,185.1

2,174.6

2,191.8

Total Assets

$

24,015.1

$

22,944.7

$

22,341.7

Interest-Bearing Liabilities

Interest-Bearing Deposits

Savings

$

6,361.8

$

0.5

0.03

%  

$

5,975.1

$

0.6

0.04

%  

5,501.9

$

0.9

0.07

%

Money Market

3,783.1

0.5

0.06

3,530.0

0.4

0.05

3,270.3

1.1

0.13

Time

2,034.5

2.3

0.45

2,288.5

3.0

0.53

3,335.6

6.6

0.79

Total Interest-Bearing Deposits

12,179.4

3.3

0.11

11,793.6

4.0

0.14

12,107.8

8.6

0.29

Short-Term Borrowings

395.6

2.8

2.88

Long-Term Borrowings

200.0

1.4

2.76

200.0

1.4

2.76

200.0

1.4

2.77

Total Interest-Bearing Liabilities

12,379.4

4.7

0.15

11,993.6

5.4

0.18

12,703.4

12.8

0.41

Net Interest Income

$

132.2

$

129.6

$

127.9

Interest Rate Spread

2.40

%  

2.48

%  

2.43

%

Net Interest Margin

2.46

%  

2.55

%  

2.58

%

Noninterest-Bearing Demand Deposits

8,458.6

7,709.5

6,432.6

Other Liabilities

485.1

513.9

507.9

Stockholders' Equity

2,692.0

2,727.7

2,697.8

Total Liabilities and Stockholders' Equity

$

24,015.1

$

22,944.7

$

22,341.7


(1)Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
(2)Interest income includes taxable-equivalent basis adjustments of $0.7 million, $0.4 million and $0.1 million for the three months ended June 30, 2021, March 31, 2021 and June 30, 2020, respectively.


Average Balances and Interest Rates

Table 5

Six Months Ended

Six Months Ended

June 30, 2021

June 30, 2020

Average

Income/

Yield/

Average

Income/

Yield/