SEC Filing - First Hawaiian, Inc.

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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): April 26, 2024

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 April 26, 2024, First Hawaiian, Inc. (together with its consolidated subsidiary, “First Hawaiian”) reported its earnings for the quarter ended March 31, 2024. 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 April 26, 2024 containing financial information for its quarter ended March 31, 2024.

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

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: April 26, 2024	By:	/s/ Robert S. Harrison
		Robert S. Harrison
		Chairman of the Board, President and Chief Executive Officer
		(Principal Executive Officer)

EXHIBIT 99.1

For Immediate Release

First Hawaiian, Inc. Reports First Quarter 2024 Financial Results and Declares Dividend

HONOLULU, Hawaii April 26, 2024--(Globe Newswire)--First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended March 31, 2024.

“I’m pleased to report that we started 2024 with a solid first quarter,” said Bob Harrison, Chairman, President, and CEO. “We had strong earnings, continued excellent credit quality and continued to grow our capital levels.”

On April 24, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on May 31, 2024, to stockholders of record at the close of business on May 20, 2024.

First Quarter 2024 Highlights:

●

Net income of $54.2 million, or $0.42 per diluted share

●

Total loans and leases decreased $33.3 million versus prior quarter

●

Total deposits decreased $663.2 million versus prior quarter

●

Net interest margin increased 10 basis points to 2.91%

●

Recorded a $6.3 million provision for credit losses

●

$4.1 million FDIC special assessment included in expenses

●

Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet

Total assets were $24.3 billion as of March 31, 2024, a decrease of $647.3 million, or 2.6%, from $24.9 billion as of December 31, 2023.

Gross loans and leases were $14.3 billion as of March 31, 2024, a decrease of $33.3 million, or 0.2%, from $14.4 billion as of December 31, 2023.

Total deposits were $20.7 billion as of March 31, 2024, a decrease of $663.2 million, or 3.1%, from $21.3 billion as of December 31, 2023.

Net Interest Income

Net interest income for the first quarter of 2024 was $154.4 million, an increase of $2.6 million, or 1.7%, compared to $151.8 million for the prior quarter.

The net interest margin was 2.91% in the first quarter of 2024, an increase of 10 basis points compared to 2.81% in the prior quarter.

Provision Expense

During the quarter ended March 31, 2024, we recorded a $6.3 million provision for credit losses. In the quarter ended December 31, 2023, we recorded a $5.3 million provision for credit losses.

Noninterest Income

Noninterest income was $51.4 million in the first quarter of 2024, a decrease of $7.0 million compared to noninterest income of $58.3 million in the prior quarter.

Noninterest Expense

Noninterest expense was $128.8 million in the first quarter of 2024, a decrease of $13.5 million compared to noninterest expense of $142.3 million in the prior quarter.

The efficiency ratio was 62.2% and 67.3% for the quarters ended March 31, 2024 and December 31, 2023, respectively.

Taxes

The effective tax rate was 23.3% and 24.0% for the quarters ended March 31, 2024 and December 31, 2023, respectively.

Asset Quality

The allowance for credit losses was $159.8 million, or 1.12% of total loans and leases, as of March 31, 2024, compared to $156.5 million, or 1.09% of total loans and leases, as of December 31, 2023. The reserve for unfunded commitments was $34.8 million as of March 31, 2024 compared to $35.6 million as of December 31, 2023. Net charge-offs were $3.8 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended March 31, 2024, compared to net charge-offs of $5.8 million, or 0.16% of average loans and leases on an annualized basis, for the quarter ended December 31, 2023. Total non-performing assets were $18.0 million, or 0.13% of total loans and leases and other real estate owned, on March 31, 2024, compared to total non-performing assets of $18.6 million, or 0.13% of total loans and leases and other real estate owned, on December 31, 2023.

Capital

Total stockholders' equity increased $27.7 million in the first quarter, and stood at $2.5 billion on March 31, 2024 and December 31, 2023.

The tier 1 leverage, common equity tier 1 and total capital ratios were 8.80%, 12.55% and 13.75%, respectively, on March 31, 2024, compared with 8.64%, 12.39% and 13.57%, respectively, on December 31, 2023.

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

First Hawaiian, Inc.

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

Conference Call Information

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

To access the call by phone, please register via the following link:

https://register.vevent.com/register/BIb74728f7f2a14341b3028eb985e2ddf0, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

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

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. 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 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, 2023.

Use of Non-GAAP Financial Measures

Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy.

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


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


Financial Highlights	Table 1
	For the Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands, except per share data)	2024			2023			2023
Operating Results:
Net interest income	$	154,427		$	151,793		$	167,247
Provision for credit losses		6,300			5,330			8,800
Noninterest income		51,371			58,347			49,023
Noninterest expense		128,813			142,307			118,567
Net income		54,220			47,502			66,818
Basic earnings per share		0.42			0.37			0.52
Diluted earnings per share		0.42			0.37			0.52
Dividends declared per share		0.26			0.26			0.26
Dividend payout ratio		61.90	%		70.27	%		50.00	%
Performance Ratios⁽¹⁾:
Net interest margin		2.91	%		2.81	%		3.11	%
Efficiency ratio		62.15	%		67.28	%		54.46	%
Return on average total assets		0.90	%		0.77	%		1.10	%
Return on average tangible assets (non-GAAP)⁽²⁾		0.94	%		0.81	%		1.15	%
Return on average total stockholders' equity		8.73	%		7.94	%		11.78	%
Return on average tangible stockholders' equity (non-GAAP)⁽²⁾		14.53	%		13.66	%		20.78	%
Average Balances:
Average loans and leases	$	14,312,563		$	14,349,322		$	14,079,337
Average earning assets		21,481,890			21,688,816			21,873,259
Average assets		24,187,207			24,404,727			24,548,124
Average deposits		20,571,930			20,908,221			21,468,624
Average stockholders' equity		2,496,840			2,374,669			2,299,422
Market Value Per Share:
Closing		21.96			22.86			20.63
High		23.12			23.22			28.28
Low		20.37			17.18			19.68


	As of			As of			As of
	March 31,			December 31,			March 31,
(dollars in thousands, except per share data)	2024			2023			2023
Balance Sheet Data:
Loans and leases	$	14,320,208		$	14,353,497		$	14,221,272
Total assets		24,279,186			24,926,474			24,884,207
Total deposits		20,669,481			21,332,657			21,281,500
Short-term borrowings		500,000			500,000			250,000
Long-term borrowings		—			—			500,000
Total stockholders' equity		2,513,761			2,486,066			2,329,012

Per Share of Common Stock:
Book value	$	19.66		$	19.48		$	18.26
Tangible book value (non-GAAP)⁽²⁾		11.88			11.68			10.45

Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases		0.13	%		0.13	%		0.10	%
Allowance for credit losses for loans and leases / total loans and leases		1.12	%		1.09	%		1.03	%

Capital Ratios:
Common Equity Tier 1 Capital Ratio		12.55	%		12.39	%		11.97	%
Tier 1 Capital Ratio		12.55	%		12.39	%		11.97	%
Total Capital Ratio		13.75	%		13.57	%		13.09	%
Tier 1 Leverage Ratio		8.80	%		8.64	%		8.26	%
Total stockholders' equity to total assets		10.35	%		9.97	%		9.36	%
Tangible stockholders' equity to tangible assets (non-GAAP)⁽²⁾		6.52	%		6.23	%		5.58	%

Non-Financial Data:
Number of branches		50			50			51
Number of ATMs		275			275			296
Number of Full-Time Equivalent Employees		2,065			2,089			2,100

(1)	Except for the efficiency ratio, amounts are annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023.

(2)

Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 12, GAAP to Non-GAAP Reconciliation.


Consolidated Statements of Income	Table 2
	For the Three Months Ended
	March 31,		December 31,		March 31,
(dollars in thousands, except per share amounts)	2024		2023		2023
Interest income
Loans and lease financing	$	199,844	$	196,276	$	172,339
Available-for-sale investment securities		14,546		19,033		18,688
Held-to-maturity investment securities		17,793		17,987		18,957
Other		12,769		7,734		3,561
Total interest income		244,952		241,030		213,545
Interest expense
Deposits		84,143		82,215		43,284
Short-term and long-term borrowings		5,953		6,232		2,563
Other		429		790		451
Total interest expense		90,525		89,237		46,298
Net interest income		154,427		151,793		167,247
Provision for credit losses		6,300		5,330		8,800
Net interest income after provision for credit losses		148,127		146,463		158,447
Noninterest income
Service charges on deposit accounts		7,546		7,646		7,231
Credit and debit card fees		16,173		16,381		16,298
Other service charges and fees		9,904		9,535		9,162
Trust and investment services income		10,354		9,645		9,614
Bank-owned life insurance		4,286		5,063		5,120
Investment securities gains, net		—		792		—
Other		3,108		9,285		1,598
Total noninterest income		51,371		58,347		49,023
Noninterest expense
Salaries and employee benefits		59,262		55,882		56,032
Contracted services and professional fees		15,739		16,219		16,313
Occupancy		6,941		7,561		7,782
Equipment		13,413		12,547		9,736
Regulatory assessment and fees		8,120		20,412		3,836
Advertising and marketing		2,612		1,441		1,994
Card rewards program		8,508		7,503		8,085
Other		14,218		20,742		14,789
Total noninterest expense		128,813		142,307		118,567
Income before provision for income taxes		70,685		62,503		88,903
Provision for income taxes		16,465		15,001		22,085
Net income	$	54,220	$	47,502	$	66,818
Basic earnings per share	$	0.42	$	0.37	$	0.52
Diluted earnings per share	$	0.42	$	0.37	$	0.52
Basic weighted-average outstanding shares		127,707,354		127,612,734		127,453,820
Diluted weighted-average outstanding shares		128,217,689		128,028,964		128,033,812


Consolidated Balance Sheets	Table 3
	March 31,		December 31,		March 31,
(dollars in thousands, except share amount)	2024		2023		2023
Assets
Cash and due from banks	$	202,121	$	185,015	$	253,705
Interest-bearing deposits in other banks		1,072,145		1,554,882		611,887
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,466,109 as of March 31, 2024, $2,558,675 as of December 31, 2023 and $3,427,708 as of March 31, 2023)		2,159,338		2,255,336		3,054,280
Held-to-maturity, at amortized cost (fair value: $3,470,710 as of March 31, 2024, $3,574,856 as of December 31, 2023 and $3,824,478 as of March 31, 2023)		3,988,011		4,041,449		4,261,361
Loans held for sale		—		190		—
Loans and leases		14,320,208		14,353,497		14,221,272
Less: allowance for credit losses		159,836		156,533		147,122
Net loans and leases		14,160,372		14,196,964		14,074,150

Premises and equipment, net		281,181		281,461		278,121
Other real estate owned and repossessed personal property		—		—		91
Accrued interest receivable		85,715		84,417		79,200
Bank-owned life insurance		484,193		479,907		473,255
Goodwill		995,492		995,492		995,492
Mortgage servicing rights		5,533		5,699		6,299
Other assets		845,085		845,662		796,366
Total assets	$	24,279,186	$	24,926,474	$	24,884,207
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing	$	13,620,928	$	13,749,095	$	12,579,155
Noninterest-bearing		7,048,553		7,583,562		8,702,345
Total deposits		20,669,481		21,332,657		21,281,500
Short-term borrowings		500,000		500,000		250,000
Long-term borrowings		—		—		500,000
Retirement benefits payable		102,242		103,285		101,622
Other liabilities		493,702		504,466		422,073
Total liabilities		21,765,425		22,440,408		22,555,195

Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,687,612 / 127,841,908 shares as of March 31, 2024, issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023 and issued/outstanding: 141,291,086 / 127,573,680 shares as of March 31, 2023)		1,417		1,413		1,413
Additional paid-in capital		2,551,488		2,548,250		2,540,653
Retained earnings		858,494		837,859		769,791
Accumulated other comprehensive loss, net		(523,780)		(530,210)		(611,679)
Treasury stock (13,845,704 shares as of March 31, 2024, 13,721,778 shares as of December 31, 2023 and 13,717,406 shares as of March 31, 2023)		(373,858)		(371,246)		(371,166)
Total stockholders' equity		2,513,761		2,486,066		2,329,012
Total liabilities and stockholders' equity	$	24,279,186	$	24,926,474	$	24,884,207


Average Balances and Interest Rates																	Table 4
	Three Months Ended						Three Months Ended						Three Months Ended
	March 31, 2024						December 31, 2023						March 31, 2023
	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	$	858.6	$	11.6	5.45	%	$	568.0	$	7.8	5.39	%	$	299.6	$	3.4	4.60	%
Available-for-Sale Investment Securities
Taxable		2,210.6		14.5	2.63			2,598.4		19.0	2.92			3,081.4		18.4	2.39
Non-Taxable		1.8		—	5.61			1.9		—	5.12			31.1		0.4	5.55
Held-to-Maturity Investment Securities
Taxable		3,416.4		14.6	1.71			3,472.1		14.8	1.70			3,683.8		15.7	1.70
Non-Taxable		603.4		4.0	2.65			603.9		3.9	2.58			612.2		4.1	2.74
Total Investment Securities		6,232.2		33.1	2.13			6,676.3		37.7	2.25			7,408.5		38.6	2.09
Loans Held for Sale		0.7		—	6.92			0.7		—	7.41			0.1		—	5.53
Loans and Leases⁽¹⁾
Commercial and industrial		2,164.9		37.2	6.92			2,148.1		36.7	6.78			2,192.9		32.4	5.98
Commercial real estate		4,323.5		70.1	6.53			4,356.3		71.4	6.51			4,105.7		58.3	5.76
Construction		924.7		17.4	7.55			888.7		16.7	7.45			873.9		14.7	6.83
Residential:
Residential mortgage		4,264.1		42.0	3.94			4,294.8		38.8	3.61			4,307.0		38.4	3.57
Home equity line		1,172.1		12.0	4.13			1,174.8		11.3	3.83			1,074.9		8.7	3.27
Consumer		1,083.5		18.1	6.71			1,132.4		18.4	6.43			1,213.5		17.2	5.75
Lease financing		379.8		3.7	3.91			354.2		3.6	4.03			311.4		3.1	4.10
Total Loans and Leases		14,312.6		200.5	5.63			14,349.3		196.9	5.45			14,079.3		172.8	4.96
Other Earning Assets		77.8		1.2	5.90			94.5		—	0.06			85.8		0.2	0.76
Total Earning Assets⁽²⁾		21,481.9		246.4	4.61			21,688.8		242.4	4.44			21,873.3		215.0	3.97
Cash and Due from Banks		244.3						240.8						286.1
Other Assets		2,461.0						2,475.1						2,388.7
Total Assets	$	24,187.2					$	24,404.7					$	24,548.1

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	6,059.7	$	23.4	1.56	%	$	6,067.2	$	22.4	1.46	%		6,354.3	$	13.9	0.89	%
Money Market		3,944.9		28.8	2.94			3,905.0		27.5	2.79			3,853.5		14.3	1.50
Time		3,325.3		31.9	3.86			3,390.7		32.3	3.78			2,515.6		15.1	2.44
Total Interest-Bearing Deposits		13,329.9		84.1	2.54			13,362.9		82.2	2.44			12,723.4		43.3	1.38
Federal Funds Purchased		—		—	—			—		—	—			67.1		0.7	4.43
Other Short-Term Borrowings		500.0		6.0	4.79			515.2		6.2	4.80			52.8		0.7	5.02
Long-Term Borrowings		—		—	—			—		—	—			105.5		1.2	4.52
Other Interest-Bearing Liabilities		33.0		0.4	5.22			42.1		0.8	7.44			42.8		0.4	4.27
Total Interest-Bearing Liabilities		13,862.9		90.5	2.63			13,920.2		89.2	2.54			12,991.6		46.3	1.45
Net Interest Income			$	155.9					$	153.2					$	168.7
Interest Rate Spread⁽³⁾					1.98	%					1.90	%					2.52	%
Net Interest Margin⁽⁴⁾					2.91	%					2.81	%					3.11	%
Noninterest-Bearing Demand Deposits		7,242.0						7,545.3						8,745.2
Other Liabilities		585.5						564.5						511.9
Stockholders' Equity		2,496.8						2,374.7						2,299.4
Total Liabilities and Stockholders' Equity	$	24,187.2					$	24,404.7					$	24,548.1

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

(2)	Interest income includes taxable-equivalent basis adjustments of $1.5 million, $1.4 million and $1.4 million for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

(3)	Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.

(4)	Net interest margin is net interest income annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, on a fully taxable-equivalent basis, divided by average total earning assets.


Analysis of Change in Net Interest Income						Table 5
	Three Months Ended March 31, 2024
	Compared to December 31, 2023
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	3.8	$	—	$	3.8
Available-for-Sale Investment Securities
Taxable		(2.7)		(1.8)		(4.5)
Held-to-Maturity Investment Securities
Taxable		(0.3)		0.1		(0.2)
Non-Taxable		—		0.1		0.1
Total Investment Securities		(3.0)		(1.6)		(4.6)
Loans and Leases
Commercial and industrial		0.1		0.4		0.5
Commercial real estate		(1.2)		(0.1)		(1.3)
Construction		0.5		0.2		0.7
Residential:
Residential mortgage		(0.3)		3.5		3.2
Home equity line		—		0.7		0.7
Consumer		(0.9)		0.6		(0.3)
Lease financing		0.2		(0.1)		0.1
Total Loans and Leases		(1.6)		5.2		3.6
Other Earning Assets		—		1.2		1.2
Total Change in Interest Income		(0.8)		4.8		4.0

Change in Interest Expense:
Interest-Bearing Deposits
Savings		(0.1)		1.1		1.0
Money Market		0.2		1.1		1.3
Time		(0.8)		0.4		(0.4)
Total Interest-Bearing Deposits		(0.7)		2.6		1.9
Other Short-Term Borrowings		(0.2)		—		(0.2)
Other Interest-Bearing Liabilities		(0.2)		(0.2)		(0.4)
Total Change in Interest Expense		(1.1)		2.4		1.3
Change in Net Interest Income	$	0.3	$	2.4	$	2.7


Analysis of Change in Net Interest Income						Table 6
	Three Months Ended March 31, 2024
	Compared to March 31, 2023
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	7.5	$	0.7	$	8.2
Available-for-Sale Investment Securities
Taxable		(5.6)		1.7		(3.9)
Non-Taxable		(0.4)		—		(0.4)
Held-to-Maturity Investment Securities
Taxable		(1.2)		0.1		(1.1)
Non-Taxable		—		(0.1)		(0.1)
Total Investment Securities		(7.2)		1.7		(5.5)
Loans and Leases
Commercial and industrial		(0.4)		5.2		4.8
Commercial real estate		3.3		8.5		11.8
Construction		1.0		1.7		2.7
Residential:
Residential mortgage		(0.4)		4.0		3.6
Home equity line		0.8		2.5		3.3
Consumer		(1.9)		2.8		0.9
Lease financing		0.7		(0.1)		0.6
Total Loans and Leases		3.1		24.6		27.7
Other Earning Assets		—		1.0		1.0
Total Change in Interest Income		3.4		28.0		31.4

Change in Interest Expense:
Interest-Bearing Deposits
Savings		(0.7)		10.2		9.5
Money Market		0.3		14.2		14.5
Time		6.0		10.8		16.8
Total Interest-Bearing Deposits		5.6		35.2		40.8
Federal Funds Purchased		(0.3)		(0.4)		(0.7)
Other Short-Term Borrowings		5.3		—		5.3
Long-Term Borrowings		(0.6)		(0.6)		(1.2)
Other Interest-Bearing Liabilities		(0.1)		0.1		—
Total Change in Interest Expense		9.9		34.3		44.2
Change in Net Interest Income	$	(6.5)	$	(6.3)	$	(12.8)


Loans and Leases						Table 7
	March 31,		December 31,		March 31,
(dollars in thousands)	2024		2023		2023
Commercial and industrial	$	2,189,875	$	2,165,349	$	2,268,332
Commercial real estate		4,301,300		4,340,243		4,106,200
Construction		972,517		900,292		913,959
Residential:
Residential mortgage		4,242,502		4,283,315		4,318,742
Home equity line		1,165,778		1,174,588		1,095,365
Total residential		5,408,280		5,457,903		5,414,107
Consumer		1,054,227		1,109,901		1,191,552
Lease financing		394,009		379,809		327,122
Total loans and leases	$	14,320,208	$	14,353,497	$	14,221,272


Deposits						Table 8
	March 31,		December 31,		March 31,
(dollars in thousands)	2024		2023		2023
Demand	$	7,048,553	$	7,583,562	$	8,702,345
Savings		6,277,679		6,445,084		6,173,398
Money Market		4,059,204		3,847,853		3,818,355
Time		3,284,045		3,456,158		2,587,402
Total Deposits	$	20,669,481	$	21,332,657	$	21,281,500


Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More						Table 9
	March 31,		December 31,		March 31,
(dollars in thousands)	2024		2023		2023
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial	$	942	$	970	$	1,158
Commercial real estate		2,953		2,953		727
Total Commercial Loans		3,895		3,923		1,885
Residential Loans:
Residential mortgage		7,777		7,620		6,896
Home equity line		6,345		7,052		4,903
Total Residential Loans		14,122		14,672		11,799
Total Non-Accrual Loans and Leases		18,017		18,595		13,684
Other Real Estate Owned		—		—		91
Total Non-Performing Assets	$	18,017	$	18,595	$	13,775

Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial	$	529	$	494	$	461
Commercial real estate		—		300		1,346
Construction		606		—		102
Total Commercial Loans		1,135		794		1,909
Residential mortgage		359		—		58
Consumer		2,126		2,702		2,502
Total Accruing Loans and Leases Past Due 90 Days or More	$	3,620	$	3,496	$	4,469

Total Loans and Leases	$	14,320,208	$	14,353,497	$	14,221,272


Allowance for Credit Losses and Reserve for Unfunded Commitments	Table 10
	For the Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands)	2024			2023			2023
Balance at Beginning of Period	$	192,138		$	192,570		$	177,735
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial		(909)			(910)			(791)
Commercial real estate		—			(2,500)			—
Total Commercial Loans		(909)			(3,410)			(791)
Residential Loans:
Residential mortgage		—			—			(122)
Home equity line		—			(20)			(135)
Total Residential Loans		—			(20)			(257)
Consumer		(4,854)			(4,147)			(4,782)
Total Loans and Leases Charged-Off		(5,763)			(7,577)			(5,830)
Recoveries on Loans and Leases Previously Charged-Off
Commercial and industrial		211			171			246
Residential Loans:
Residential mortgage		30			31			27
Home equity line		44			163			177
Total Residential Loans		74			194			204
Consumer		1,689			1,450			2,166
Total Recoveries on Loans and Leases Previously Charged-Off		1,974			1,815			2,616
Net Loans and Leases Charged-Off		(3,789)			(5,762)			(3,214)
Provision for Credit Losses		6,300			5,330			8,800
Balance at End of Period	$	194,649		$	192,138		$	183,321
Components:
Allowance for Credit Losses	$	159,836		$	156,533		$	147,122
Reserve for Unfunded Commitments		34,813			35,605			36,199
Total Allowance for Credit Losses and Reserve for Unfunded Commitments	$	194,649		$	192,138		$	183,321
Average Loans and Leases Outstanding	$	14,312,563		$	14,349,322		$	14,079,337
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding⁽¹⁾		0.11	%		0.16	%		0.09	%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding		1.12	%		1.09	%		1.03	%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases		8.87x			8.42x			10.75x

(1)	Annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023.

Loans and Leases by Year of Origination and Credit Quality Indicator

Table 11

Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

Amortized

(dollars in thousands)

2024

2023

2022

2021

2020

Prior

Cost Basis

Total

Commercial Lending

Commercial and Industrial

Risk rating:

Pass

13,488

104,265

263,282

318,417

29,787

282,287

987,132

26,745

2,025,403

Special Mention

202

23,276

539

1,385

8,132

—

33,608

Substandard

—

20,364

214

572

2,191

25,638

—

48,979

Other ⁽¹⁾

4,887

12,883

10,053

4,044

1,970

2,396

45,652

—

81,885

Total Commercial and Industrial

18,577

117,149

316,975

322,748

32,868

288,259

1,066,554

26,745

2,189,875

Current period gross charge-offs

—

114

611

—

909

Commercial Real Estate

Risk rating:

Pass

28,321

344,674

864,166

671,379

334,606

1,866,875

93,485

4,223

4,207,729

Special Mention

3,339

2,290

7,591

41,337

1,358

18,507

6,863

—

81,285

Substandard

—

5,047

1,203

—

5,244

652

—

12,146

Other ⁽¹⁾

—

140

—

140

Total Commercial Real Estate

31,660

346,964

876,804

713,919

335,964

1,890,766

101,000

4,223

4,301,300

Current period gross charge-offs

—

Construction

Risk rating:

Pass

14,198

181,628

311,175

258,400

59,563

65,776

11,872

—

902,612

Special Mention

—

837

—

837

Substandard

—

24,437

—

24,437

Other ⁽¹⁾

859

12,258

17,492

6,373

1,357

5,588

704

—

44,631

Total Construction

15,057

193,886

328,667

264,773

60,920

96,638

12,576

—

972,517

Current period gross charge-offs

—

Lease Financing

Risk rating:

Pass

50,531

114,686

78,028

17,488

28,946

97,319

—

386,998

Special Mention

—

125

377

—

573

Substandard

5,370

676

392

—

6,438

Total Lease Financing

55,901

115,413

78,545

17,865

28,966

97,319

—

394,009

Current period gross charge-offs

—

Total Commercial Lending

121,195

773,412

1,600,991

1,319,305

458,718

2,372,982

1,180,130

30,968

7,857,701

Current period gross charge-offs

—

114

611

—

909


															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
(continued)													Amortized		Amortized
(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Cost Basis		Cost Basis		Total
Residential Lending
Residential Mortgage
FICO:
740 and greater	$	28,332	$	207,263	$	524,402	$	987,343	$	521,598	$	1,186,496	$	—	$	—	$	3,455,434
680 - 739		1,525		36,569		67,192		115,481		67,662		158,890		—		—		447,319
620 - 679		910		2,910		16,268		19,056		12,733		41,573		—		—		93,450
550 - 619		—		1,303		6,506		1,903		2,477		11,685		—		—		23,874
Less than 550		—		—		—		2,894		2,006		6,686		—		—		11,586
No Score ⁽³⁾		—		9,081		20,505		11,400		6,006		58,777		—		—		105,769
Other ⁽²⁾		1,419		13,320		16,937		15,740		12,088		32,590		12,976		—		105,070
Total Residential Mortgage		32,186		270,446		651,810		1,153,817		624,570		1,496,697		12,976		—		4,242,502
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		943,792		1,428		945,220
680 - 739		—		—		—		—		—		—		162,578		1,886		164,464
620 - 679		—		—		—		—		—		—		33,728		927		34,655
550 - 619		—		—		—		—		—		—		13,382		971		14,353
Less than 550		—		—		—		—		—		—		5,392		296		5,688
No Score ⁽³⁾		—		—		—		—		—		—		1,398		—		1,398
Total Home Equity Line		—		—		—		—		—		—		1,160,270		5,508		1,165,778
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Total Residential Lending	$	32,186	$	270,446	$	651,810	$	1,153,817	$	624,570	$	1,496,697	$	1,173,246	$	5,508	$	5,408,280
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer Lending
FICO:
740 and greater		18,671		82,551		113,914		66,175		28,100		22,442		116,198		138		448,189
680 - 739		13,464		64,229		64,623		33,167		14,755		13,951		75,151		439		279,779
620 - 679		4,293		28,729		27,210		15,641		6,793		10,003		35,179		791		128,639
550 - 619		620		6,973		11,551		7,621		4,025		6,289		13,452		795		51,326
Less than 550		110		2,634		6,734		5,075		2,837		4,179		5,782		646		27,997
No Score ⁽³⁾		733		839		209		—		9		16		39,466		256		41,528
Other ⁽²⁾		—		304		349		960		330		1,032		73,794		—		76,769
Total Consumer Lending	$	37,891	$	186,259	$	224,590	$	128,639	$	56,849	$	57,912	$	359,022	$	3,065	$	1,054,227
Current period gross charge-offs	$	—	$	437	$	904	$	496	$	272	$	769	$	1,789	$	187	$	4,854

Total Loans and Leases	$	191,272	$	1,230,117	$	2,477,391	$	2,601,761	$	1,140,137	$	3,927,591	$	2,712,398	$	39,541	$	14,320,208
Current period gross charge-offs	$	—	$	508	$	1,018	$	557	$	324	$	1,380	$	1,789	$	187	$	5,763

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

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

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


GAAP to Non-GAAP Reconciliation	Table 12
	For the Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands)	2024			2023			2023
Income Statement Data:
Net income	$	54,220		$	47,502		$	66,818

Average total stockholders' equity	$	2,496,840		$	2,374,669		$	2,299,422
Less: average goodwill		995,492			995,492			995,492
Average tangible stockholders' equity	$	1,501,348		$	1,379,177		$	1,303,930

Average total assets	$	24,187,207		$	24,404,727		$	24,548,124
Less: average goodwill		995,492			995,492			995,492
Average tangible assets	$	23,191,715		$	23,409,235		$	23,552,632

Return on average total stockholders' equity⁽¹⁾		8.73	%		7.94	%		11.78	%
Return on average tangible stockholders' equity (non-GAAP)⁽¹⁾		14.53	%		13.66	%		20.78	%

Return on average total assets⁽¹⁾		0.90	%		0.77	%		1.10	%
Return on average tangible assets (non-GAAP)⁽¹⁾		0.94	%		0.81	%		1.15	%



	As of			As of			As of
	March 31,			December 31,			March 31,
(dollars in thousands, except per share amounts)	2024			2023			2023
Balance Sheet Data:
Total stockholders' equity	$	2,513,761		$	2,486,066		$	2,329,012
Less: goodwill		995,492			995,492			995,492
Tangible stockholders' equity	$	1,518,269		$	1,490,574		$	1,333,520

Total assets	$	24,279,186		$	24,926,474		$	24,884,207
Less: goodwill		995,492			995,492			995,492
Tangible assets	$	23,283,694		$	23,930,982		$	23,888,715

Shares outstanding		127,841,908			127,618,761			127,573,680

Total stockholders' equity to total assets		10.35	%		9.97	%		9.36	%
Tangible stockholders' equity to tangible assets (non-GAAP)		6.52	%		6.23	%		5.58	%

Book value per share	$	19.66		$	19.48		$	18.26
Tangible book value per share (non-GAAP)	$	11.88		$	11.68		$	10.45

(1)	Annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023.