0001558370-24-006809 | 10-Q | XBRL Viewer

Other Assets (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of estimated future amortization expense for MSRs

Amortization of mortgage servicing rights (“MSRs”) was $0.3 million for both three months ended March 31, 2024 and 2023. The estimated future amortization expenses for MSRs over the next five years are as follows:


	Estimated
(dollars in thousands)	Amortization
Under one year	$	811
One to two years		720
Two to three years		637
Three to four years		561
Four to five years		497

Schedule of details of the Company's MSRs


	March 31,		December 31,
(dollars in thousands)	2024		2023
Gross carrying amount	$	69,612	$	69,515
Less: accumulated amortization		64,079		63,816
Net carrying value	$	5,533	$	5,699

Schedule of changes in amortized MSRs


	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Balance at beginning of period	$	5,699	$	6,562
Originations		97		17
Amortization		(263)		(280)
Balance at end of period	$	5,533	$	6,299
Fair value of amortized MSRs at beginning of period	$	14,308	$	15,193
Fair value of amortized MSRs at end of period	$	14,071	$	15,169

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


	March 31, 2024							December 31, 2023
						Weighted							Weighted
	Range					Average		Range					Average
Conditional prepayment rate	6.98	%	-	11.34	%	7.08	%	6.87	%	-	11.53	%	7.04	%
Life in years (of the MSR)	4.28		-	7.18		7.05		4.30		-	7.22		7.09
Weighted-average coupon rate	3.63	%	-	5.75	%	3.75	%	3.57	%	-	5.81	%	3.73	%
Discount rate	10.27	%	-	10.58	%	10.52	%	10.40	%	-	10.60	%	10.52	%

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 54,220	$ 66,818

- Definition

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

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+ Details

Transfers of Financial Assets

3 Months Ended

Mar. 31, 2024

Transfers of Financial Assets

Transfers of Financial Assets

6. 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 and/or securities 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 March 31, 2024 and December 31, 2023 were as follows:


(dollars in thousands)	March 31, 2024		December 31, 2023
Public deposits	$	1,946,863	$	2,571,359
Federal Home Loan Bank		5,000,994		4,495,266
Federal Reserve Bank		3,943,124		4,074,093
ACH transactions		135,443		137,101
Interest rate swaps		1,184		575
Total	$	11,027,608	$	11,278,394

As the Company did not enter into reverse repurchase agreements or repurchase agreements, no collateral was accepted as of March 31, 2024 and December 31, 2023. In addition, no debt was extinguished by in-substance defeasance.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

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+ Details

Commitments and Contingent Liabilities (Tables)

3 Months Ended

Mar. 31, 2024

Commitments and Contingent Liabilities

Schedule of financial instruments with off-balance sheet risk


	March 31,		December 31,
(dollars in thousands)	2024		2023
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	6,243,969	$	6,308,343
Standby letters of credit		250,803		234,102
Commercial letters of credit		4,105		3,629

Regulatory Capital Requirements - Capital Conservation Buffer (Details)	Mar. 31, 2024	Dec. 31, 2023
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Effective CET1 capital to risk-weighted assets (as a percent)	0.1255	0.1239
Effective Tier 1 capital to risk-weighted assets (as a percent)	0.1255	0.1239
Effective total capital to risk-weighted assets (as a percent)	0.1375	0.1357
Capital conservation buffer
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Effective CET1 capital to risk-weighted assets (as a percent)	0.07
Effective Tier 1 capital to risk-weighted assets (as a percent)	0.085
Effective total capital to risk-weighted assets (as a percent)	0.105
Capital requirements above regulatory rate (as a percent)	0.025

Derivative Financial Instruments - Notional Amounts and Fair Values (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Notional amounts and fair values of derivatives
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets	Other Assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other Liabilities	Other Liabilities
Derivatives designated as hedging instruments \| Interest rate swaps
Notional amounts and fair values of derivatives
Notional Amount	$ 266,563	$ 267,500
Asset Derivatives	10,234	10,861
Liability Derivatives	(58)	(1,799)
Derivatives designated as hedging instruments \| Interest rate collars
Notional amounts and fair values of derivatives
Notional Amount	200,000	200,000
Asset Derivatives	47	703
Liability Derivatives	(43)
Derivatives Not Designated as Hedging Instruments \| Interest rate swaps
Notional amounts and fair values of derivatives
Notional Amount	2,708,933	2,753,801
Asset Derivatives	2,740	1,204
Liability Derivatives	(4,645)	(521)
Derivatives Not Designated as Hedging Instruments \| Visa Derivative
Notional amounts and fair values of derivatives
Notional Amount	114,190	107,548
Liability Derivatives	(2,300)	(2,300)
Derivatives Not Designated as Hedging Instruments \| Foreign exchange contracts
Notional amounts and fair values of derivatives
Notional Amount	$ 800	$ 66

Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2024

Commitments and Contingent Liabilities

Commitments and Contingent Liabilities

12. Commitments and Contingent Liabilities

Contingencies

Various 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 unaudited interim 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 unaudited interim 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 $48.8 million and $61.8 million at March 31, 2024 and December 31, 2023, 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 $6.3 million and $6.8 million at March 31, 2024 and December 31, 2023, 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 March 31, 2024 have maturities ranging from April 2024 to May 2028. 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 March 31, 2024 and December 31, 2023 were as follows:


	March 31,		December 31,
(dollars in thousands)	2024		2023
Financial instruments whose contract amounts represent credit risk:
Commitments to extend credit	$	6,243,969	$	6,308,343
Standby letters of credit		250,803		234,102
Commercial letters of credit		4,105		3,629

Guarantees

The Company sells residential mortgage loans in the secondary market primarily to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation 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.

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 11. Derivative Financial Instruments” for more information.

Reorganization Transactions

On April 1, 2016, a series of reorganization transactions were undertaken to facilitate FHI’s initial public offering. In connection with the reorganization transactions, FHI distributed its interest in BancWest Holding Inc. (“BWHI”), including Bank of the West (“BOW”) to BNP Paribas (“BNPP”) so that BWHI was held directly by BNPP. 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 Corporation, 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.

Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2024

Allowance for Credit Losses

Schedule of activity in the allowance by class of loans and lease

Three Months Ended March 31, 2024

Commercial Lending

Residential Lending

Commercial

Home

and

Real

Lease

Residential

Equity

(dollars in thousands)

Industrial

Estate

Construction

Financing

Mortgage

Line

Consumer

Total

Allowance for credit losses:

Balance at beginning of period

14,956

43,944

10,392

1,754

36,880

11,728

36,879

156,533

Charge-offs

(909)

—

(4,854)

(5,763)

Recoveries

211

—

1,689

1,974

Provision

2,829

(418)

2,049

731

(120)

(325)

2,346

7,092

Balance at end of period

17,087

43,526

12,441

2,485

36,790

11,447

36,060

159,836


	Three Months Ended March 31, 2023
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Total
Allowance for credit losses:
Balance at beginning of period	$	14,564	$	43,810	$	5,843	$	1,551	$	35,175	$	8,296	$	34,661	$	143,900
Charge-offs		(791)		—		—		—		(122)		(135)		(4,782)		(5,830)
Recoveries		246		—		—		—		27		177		2,166		2,616
Provision		19		(3,499)		630		(70)		(760)		1,003		9,113		6,436
Balance at end of period	$	14,038	$	40,311	$	6,473	$	1,481	$	34,320	$	9,341	$	41,158	$	147,122

Schedule of activity in the Liability for Credit Losses for Off-Balance-Sheet Financial Instruments

Three Months Ended March 31, 2024

Commercial Lending

Residential Lending

Commercial

Home

and

Real

Lease

Residential

Equity

(dollars in thousands)

Industrial

Estate

Construction

Financing

Mortgage

Line

Consumer

Total

Reserve for unfunded commitments:

Balance at beginning of period

9,116

1,787

8,048

—

16,589

35,605

Provision

(324)

(1,151)

—

(10)

598

(792)

Balance at end of period

8,792

1,873

6,897

—

17,187

34,813


	Three Months Ended March 31, 2023
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Total
Reserve for unfunded commitments:
Balance at beginning of period	$	7,811	$	2,004	$	7,470	$	—	$	30	$	16,483	$	37	$	33,835
Provision		(658)		(312)		1,482		—		(13)		1,853		12		2,364
Balance at end of period	$	7,153	$	1,692	$	8,952	$	—	$	17	$	18,336	$	49	$	36,199

Schedule of amortized cost basis by year of origination and credit quality indicator

The amortized cost basis by year of origination and credit quality indicator of the Company’s loans and leases as of March 31, 2024 was as follows:

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

(continued)


															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.

The amortized cost basis by year of origination and credit quality indicator of the Company’s loans and leases as of December 31, 2023 was as follows:


															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
													Amortized		Amortized
(dollars in thousands)	2023		2022		2021		2020		2019		Prior		Cost Basis		Cost Basis		Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass	$	85,839	$	273,663	$	346,024	$	32,753	$	146,893	$	141,681	$	971,065	$	1,823	$	1,999,741
Special Mention		1		44,069		80		653		1,032		1,290		22,807		14		69,946
Substandard		—		342		230		677		1,686		829		8,330		—		12,094
Other ⁽¹⁾		15,978		11,598		4,814		2,370		1,702		1,125		45,981		—		83,568
Total Commercial and Industrial		101,818		329,672		351,148		36,453		151,313		144,925		1,048,183		1,837		2,165,349
Current period gross charge-offs		130		70		75		87		168		2,952		—		—		3,482

Commercial Real Estate
Risk rating:
Pass		346,369		872,783		676,362		337,529		523,446		1,414,613		74,238		1,350		4,246,690
Special Mention		2,307		7,618		41,320		1,359		13,550		11,998		819		—		78,971
Substandard		205		5,079		2,003		—		2,953		2,545		1,655		—		14,440
Other ⁽¹⁾		—		—		—		—		—		142		—		—		142
Total Commercial Real Estate		348,881		885,480		719,685		338,888		539,949		1,429,298		76,712		1,350		4,340,243
Current period gross charge-offs		—		—		—		—		2,500		—		—		—		2,500

Construction
Risk rating:
Pass		156,432		269,623		265,674		60,057		63,018		27,847		6,070		—		848,721
Special Mention		—		—		—		—		189		665		—		—		854
Other ⁽¹⁾		12,728		21,036		8,250		2,143		2,031		3,820		709		—		50,717
Total Construction		169,160		290,659		273,924		62,200		65,238		32,332		6,779		—		900,292
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Lease Financing
Risk rating:
Pass		145,914		82,833		18,680		31,791		30,299		68,520		—		—		378,037
Special Mention		56		137		414		35		—		—		—		—		642
Substandard		712		416		—		—		2		—		—		—		1,130
Total Lease Financing		146,682		83,386		19,094		31,826		30,301		68,520		—		—		379,809
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Total Commercial Lending	$	766,541	$	1,589,197	$	1,363,851	$	469,367	$	786,801	$	1,675,075	$	1,131,674	$	3,187	$	7,785,693
Current period gross charge-offs	$	130	$	70	$	75	$	87	$	2,668	$	2,952	$	—	$	—	$	5,982

(continued)


															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
(continued)													Amortized		Amortized
(dollars in thousands)	2023		2022		2021		2020		2019		Prior		Cost Basis		Cost Basis		Total
Residential Lending
Residential Mortgage
FICO:
740 and greater	$	211,598	$	529,296	$	999,522	$	529,881	$	227,058	$	987,251	$	—	$	—	$	3,484,606
680 - 739		36,975		67,205		117,337		68,122		33,148		130,387		—		—		453,174
620 - 679		3,544		16,395		19,184		12,811		4,096		38,987		—		—		95,017
550 - 619		1,305		6,521		1,917		2,492		398		11,679		—		—		24,312
Less than 550		—		—		2,909		2,017		582		6,439		—		—		11,947
No Score ⁽³⁾		9,137		19,311		11,492		6,043		9,679		51,109		—		—		106,771
Other ⁽²⁾		15,802		17,528		17,432		12,534		8,599		25,513		10,080		—		107,488
Total Residential Mortgage		278,361		656,256		1,169,793		633,900		283,560		1,251,365		10,080		—		4,283,315
Current period gross charge-offs		—		—		—		—		—		122		—		—		122

Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		964,932		1,511		966,443
680 - 739		—		—		—		—		—		—		151,716		1,920		153,636
620 - 679		—		—		—		—		—		—		36,541		1,189		37,730
550 - 619		—		—		—		—		—		—		9,896		1,012		10,908
Less than 550		—		—		—		—		—		—		4,488		100		4,588
No Score ⁽³⁾		—		—		—		—		—		—		1,283		—		1,283
Total Home Equity Line		—		—		—		—		—		—		1,168,856		5,732		1,174,588
Current period gross charge-offs		—		—		—		—		—		—		273		19		292

Total Residential Lending	$	278,361	$	656,256	$	1,169,793	$	633,900	$	283,560	$	1,251,365	$	1,178,936	$	5,732	$	5,457,903
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	122	$	273	$	19	$	414

Consumer Lending
FICO:
740 and greater		92,117		128,358		76,148		33,507		21,819		8,970		123,592		155		484,666
680 - 739		68,865		71,031		37,925		17,116		13,270		5,690		76,645		401		290,943
620 - 679		28,533		29,229		16,919		7,843		7,972		4,624		35,210		781		131,111
550 - 619		4,996		10,859		7,760		4,917		4,651		2,986		13,223		925		50,317
Less than 550		1,790		6,370		4,842		2,796		2,905		2,040		5,222		455		26,420
No Score ⁽³⁾		1,545		229		—		—		1		10		42,933		136		44,854
Other ⁽²⁾		361		368		982		335		1,059		1		78,484		—		81,590
Total Consumer Lending	$	198,207	$	246,444	$	144,576	$	66,514	$	51,677	$	24,321	$	375,309	$	2,853	$	1,109,901
Current period gross charge-offs	$	639	$	2,400	$	2,135	$	1,142	$	1,816	$	2,622	$	5,790	$	566	$	17,110

Total Loans and Leases	$	1,243,109	$	2,491,897	$	2,678,220	$	1,169,781	$	1,122,038	$	2,950,761	$	2,685,919	$	11,772	$	14,353,497
Current period gross charge-offs	$	769	$	2,470	$	2,210	$	1,229	$	4,484	$	5,696	$	6,063	$	585	$	23,506

(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.

Schedule of aging analyses of past due loans and leases

March 31, 2024

Past Due

Loans and

Greater

Leases Past

Than or

Due 90 Days

30-59

60-89

Equal to

or More and

Days

90 Days

Total

Total Loans

Still Accruing

(dollars in thousands)

Past Due

Current

and Leases

Interest

Commercial and industrial

1,713

162

1,470

3,345

2,186,530

2,189,875

529

Commercial real estate

—

2,953

4,298,347

4,301,300

—

Construction

—

606

971,911

972,517

606

Lease financing

—

394,009

—

Residential mortgage

1,857

2,742

5,406

10,005

4,232,497

4,242,502

359

Home equity line

2,996

894

2,827

6,717

1,159,061

1,165,778

—

Consumer

15,606

2,873

2,126

20,605

1,033,622

1,054,227

2,126

Total

22,172

6,671

15,388

44,231

14,275,977

14,320,208

3,620


	December 31, 2023
	Past Due												Loans and
					Greater								Leases Past
					Than or								Due 90 Days
	30-59		60-89		Equal to								or More and
	Days		Days		90 Days		Total				Total Loans		Still Accruing
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		and Leases		Interest
Commercial and industrial	$	2,611	$	349	$	1,464	$	4,424	$	2,160,925	$	2,165,349	$	494
Commercial real estate		—		196		300		496		4,339,747		4,340,243		300
Construction		25,191		—		—		25,191		875,101		900,292		—
Lease financing		—		—		—		—		379,809		379,809		—
Residential mortgage		5,244		1,475		4,720		11,439		4,271,876		4,283,315		—
Home equity line		5,940		624		3,550		10,114		1,164,474		1,174,588		—
Consumer		23,259		3,897		2,702		29,858		1,080,043		1,109,901		2,702
Total	$	62,245	$	6,541	$	12,736	$	81,522	$	14,271,975	$	14,353,497	$	3,496

Schedule of amortized cost basis of loans and leases on nonaccrual status


	March 31, 2024
	Nonaccrual
	Loans
	and Leases
	With No		Nonaccrual
	Allowance		Loans
(dollars in thousands)	for Credit Losses		and Leases
Commercial and industrial	$	—	$	942
Commercial real estate		2,685		2,953
Residential mortgage		3,297		7,777
Home equity line		1,150		6,345
Total Nonaccrual Loans and Leases	$	7,132	$	18,017


	December 31, 2023
	Nonaccrual
	Loans
	and Leases
	With No		Nonaccrual
	Allowance		Loans
(dollars in thousands)	for Credit Losses		and Leases
Commercial and industrial	$	—	$	970
Commercial real estate		2,685		2,953
Residential mortgage		2,667		7,620
Home equity line		1,163		7,052
Total Nonaccrual Loans and Leases	$	6,515	$	18,595

Schedule of loans modified to borrowers experiencing financial difficulty

Interest Rate Reduction

Three Months Ended

March 31, 2024

March 31, 2023

Amortized

% of Total Class

Amortized

% of Total Class

(dollars in thousands)

Cost Basis⁽¹⁾

of Financing Receivable

Cost Basis⁽¹⁾

of Financing Receivable

Commercial real estate

—

n/m

Consumer

628

0.06

358

0.03

Total

628

n/m

362

n/m

n/m – Represents less than 0.01% of total class of financing receivable.

(1)	The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period.

Term Extension

Three Months Ended

March 31, 2024

March 31, 2023

Amortized

% of Total Class

Amortized

% of Total Class

(dollars in thousands)

Cost Basis⁽¹⁾

of Financing Receivable

Cost Basis⁽¹⁾

of Financing Receivable

Commercial and industrial

199

0.01

n/m

Construction

—

231

0.03

Residential mortgage

310

0.01

n/m

Consumer

118

0.01

0.01

Total

627

n/m

432

n/m

n/m – Represents less than 0.01% of total class of financing receivable.

(1)	The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period.

Other-Than-Insignificant Payment Delay

Three Months Ended

March 31, 2024

March 31, 2023

Amortized

% of Total Class

Amortized

% of Total Class

(dollars in thousands)

Cost Basis⁽¹⁾

of Financing Receivable

Cost Basis⁽¹⁾

of Financing Receivable

Residential mortgage

1,260

0.03

—

Total

1,260

n/m

—

n/m – Represents less than 0.01% of total class of financing receivable.

(1)	The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period.

Schedule of financial effect of the modifications made to borrowers experiencing financial difficulty


	Interest Rate Reduction
	Financial Effect
	Three Months Ended March 31, 2024	Three Months Ended March 31, 2023
Commercial real estate	—	Reduced weighted-average contractual interest rate by 0.75%.
Consumer	Reduced weighted-average contractual interest rate by 13.55%.	Reduced weighted-average contractual interest rate by 13.51%.


	Term Extension
	Financial Effect
	Three Months Ended March 31, 2024	Three Months Ended March 31, 2023
Commercial and industrial	Added a weighted-average 3.8 years to the life of loans.	Added a weighted-average 3.0 years to the life of loans.
Construction	—	Added a weighted-average 2.9 years to the life of loans.
Residential mortgage	Added a weighted-average 1.0 years to the life of loans.	Added a weighted-average 5.9 years to the life of loans.
Consumer	Added a weighted-average 4.2 years to the life of loans.	Added a weighted-average 4.6 years to the life of loans.


	Other-Than-Insignificant Payment Delay
	Financial Effect
	Three Months Ended March 31, 2024	Three Months Ended March 31, 2023
Residential mortgage	Deferred an average of $172 thousand in loan payments.	—

Tabular disclosure of financing receivables to borrowers experiencing financial difficulty modified within the previous 12 months and for which there was a payment default


	Amortized Cost Basis of Modified Loans That Subsequently Defaulted⁽¹⁾
	Three Months Ended March 31, 2024				Three Months Ended March 31, 2023
(dollars in thousands)	Interest Rate Reduction			Term Extension	Interest Rate Reduction		Term Extension
Consumer	$	300	$	7	$	10	$	—
Total	$	300	$	7	$	10	$	—

(1)	The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period.

Schedule of aging analyses of loans modified with a borrower experiencing financial difficulty


		March 31, 2024
		Past Due
						Greater Than
						or Equal to
		30-59 Days		60-89 Days		90 Days		Total
(dollars in thousands)		Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial and industrial	$	—	$	—	$	—	$	—	$	467	$	467
Commercial real estate		—		—		—		—		2,857		2,857
Construction		—		—		—		—		657		657
Residential mortgage		—		—		—		—		1,570		1,570
Consumer		96		86		22		204		1,407		1,611
Total	$	96	$	86	$	22	$	204	$	6,958	$	7,162


		March 31, 2023
		Past Due
						Greater Than
						or Equal to
		30-59 Days		60-89 Days		90 Days		Total
(dollars in thousands)		Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial and industrial	$	—	$	—	$	—	$	—	$	96	$	96
Commercial real estate		—		—		—		—		4		4
Construction		—		—		—		—		231		231
Residential mortgage		—		—		—		—		34		34
Consumer		9		—		—		9		420		429
Total	$	9	$	—	$	—	$	9	$	785	$	794

Fair Value (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value

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

Fair Value Measurements as of March 31, 2024

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 and government agency debt securities

—

12,821

—

12,821

Government-sponsored enterprises debt securities

—

19,629

—

19,629

Mortgage-backed securities:

Residential - Government agency⁽¹⁾

—

9,609

—

9,609

Residential - Government-sponsored enterprises⁽¹⁾

—

753,385

—

753,385

Commercial - Government agency

—

213,394

—

213,394

Commercial - Government-sponsored enterprises

—

83,490

—

83,490

Commercial - Non-agency

—

22,110

—

22,110

Collateralized mortgage obligations:

Government agency

—

452,163

—

452,163

Government-sponsored enterprises

—

353,061

—

353,061

Collateralized loan obligations

—

239,676

—

239,676

Total available-for-sale securities

—

2,159,338

—

2,159,338

Other assets⁽²⁾

216

13,021

—

13,237

Liabilities

Other liabilities⁽³⁾

—

(4,746)

(2,300)

(7,046)

Total

216

2,167,613

(2,300)

2,165,529

(1)	Backed by residential real estate.

(2)	Other assets classified as Level 1 include money market funds that have quoted prices in active markets and are related to the Company’s deferred compensation plans. Other assets classified as Level 2 include derivative assets.

(3)	Other liabilities include derivative liabilities.

	Fair Value Measurements as of December 31, 2023
	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 and government agency debt securities	$	—	$	32,503	$	—	$	32,503
Government-sponsored enterprises debt securities		—		19,592		—		19,592
Mortgage-backed securities:
Residential - Government agency⁽¹⁾		—		10,182		—		10,182
Residential - Government-sponsored enterprises⁽¹⁾		—		783,297		—		783,297
Commercial - Government agency		—		218,674		—		218,674
Commercial - Government-sponsored enterprises		—		86,431		—		86,431
Commercial - Non-agency		—		21,683		—		21,683
Collateralized mortgage obligations:
Government agency		—		471,150		—		471,150
Government-sponsored enterprises		—		363,970		—		363,970
Collateralized loan obligations		—		247,854		—		247,854
Total available-for-sale securities		—		2,255,336		—		2,255,336
Other assets⁽²⁾		517		12,768		—		13,285
Liabilities
Other liabilities⁽³⁾		—		(2,320)		(2,300)		(4,620)
Total	$	517	$	2,265,784	$	(2,300)	$	2,264,001

(1)	Backed by residential real estate.

(2)	Other assets classified as Level 1 include money market funds that have quoted prices in active markets and are related to the Company’s deferred compensation plans. Other assets classified as Level 2 include derivative assets.

(3)	Other liabilities include derivative liabilities.

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


	Quantitative Information about Level 3 Fair Value Measurements at March 31, 2024
				Significant
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	Range
Collateral-dependent loans	$	14,623	Financial Statement Values	Discounts to reflect estimated selling costs	0% - 50%
Visa derivative	$	(2,300)	Discounted Cash Flow	Expected Conversion Rate - 1.5875⁽¹⁾	1.5289-1.5875
				Expected Term - 6 months⁽²⁾	n/m⁽²⁾
				Growth Rate - 9%⁽³⁾	-7% - 22%


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2023
				Significant
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	Range
Visa derivative	$	(2,300)	Discounted Cash Flow	Expected Conversion Rate - 1.5875⁽¹⁾	1.5289-1.5875
				Expected Term - 5 months⁽²⁾	n/m⁽²⁾
				Growth Rate - 10%⁽³⁾	-6% - 25%

(1)	Due to the uncertainty in the movement of the conversion rate, the current conversion rate as of the respective consolidated balance sheet dates was utilized in the fair value calculation.

(2)	The expected terms are based on a May 2024 claim filing deadline and subsequent period for claims to be processed. As such, a range is not meaningful to disclose.

(3)	The growth rate was based on the arithmetic average of analyst price targets.

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


	Visa Derivative
(dollars in thousands)	2024		2023
Three Months Ended March 31,
Balance as of January 1,	$	(2,300)	$	(851)
Total net losses included in other noninterest income		(1,476)		(1,963)
Settlements		1,476		1,614
Balance as of March 31,	$	(2,300)	$	(1,200)
Total net losses included in net income attributable to the change in unrealized losses related to liabilities still held as of March 31,	$	(1,476)	$	(1,963)

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

March 31, 2024

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

1,274,266

202,121

1,072,145

—

1,274,266

Investment securities held-to-maturity

3,988,011

—

3,470,710

—

3,470,710

Loans⁽¹⁾

13,926,199

—

13,250,470

Financial liabilities:

Time deposits⁽²⁾

3,284,045

—

3,259,350

—

3,259,350

Short-term borrowings

500,000

—

498,175

—

498,175


	December 31, 2023
			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	$	1,739,897	$	185,015	$	1,554,882	$	—	$	1,739,897
Investment securities held-to-maturity		4,041,449		—		3,574,856		—		3,574,856
Loans held for sale		190		—		192		—		192
Loans⁽¹⁾		13,973,688		—		—		13,385,683		13,385,683

Financial liabilities:
Time deposits⁽²⁾	$	3,456,158	$	—	$	3,432,330	$	—	$	3,432,330
Short-term borrowings		500,000		—		495,306		—		495,306

(1)	Excludes financing leases of $394.0 million at March 31, 2024 and $379.8 million at December 31, 2023.

(2)	Excludes deposit liabilities with no defined or contractual maturity of $17.4 billion as of March 31, 2024 and $17.9 billion as of December 31, 2023.

Schedule of assets with fair value adjustments on a nonrecurring basis


(dollars in thousands)	Level 1		Level 2		Level 3
March 31, 2024
Collateral-dependent loans	$	—	$	—	$	14,623

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
Net Income (Loss)	$ 54,220	$ 66,818
Other comprehensive income, net of tax:
Net change in investment securities	5,667	26,944
Net change in cash flow derivative hedges	763	631
Other comprehensive income	6,430	27,575
Total comprehensive income	$ 60,650	$ 94,393

- Definition

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

+ References

+ Details

Reportable Operating Segments

3 Months Ended

Mar. 31, 2024

Reportable Operating Segments

Reportable Operating Segments

17. 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 credit 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 credit losses from the Treasury and Other business segment (which is comprised of many of the Company’s support units) to the Retail and Commercial business segments. These allocations are based on direct costs incurred by the Retail and Commercial business segments.

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. Income tax expense is allocated to each business segment based on the consolidated effective income tax rate for the period shown.

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 and loans, automobile loans and leases, secured and unsecured 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 50 banking locations throughout the State of Hawaii, Guam and Saipan.

Commercial Banking

Commercial Banking offers products that include corporate banking related products, commercial real estate loans, commercial lease financing, secured and unsecured lines of credit, 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 cross-border wires for business and personal reasons 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 periods indicated.

Treasury

Retail

Commercial

and

(dollars in thousands)

Banking

Other

Total

Three Months Ended March 31, 2024

Net interest income (expense)

128,057

45,381

(19,011)

154,427

(Provision) benefit for credit losses

(3,379)

(3,713)

792

(6,300)

Net interest income (expense) after (provision) benefit for credit losses

124,678

41,668

(18,219)

148,127

Noninterest income

26,035

17,958

7,378

51,371

Noninterest expense

(76,640)

(25,685)

(26,488)

(128,813)

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

74,073

33,941

(37,329)

70,685

(Provision) benefit for income taxes

(17,928)

(7,273)

8,736

(16,465)

Net income (loss)

56,145

26,668

(28,593)

54,220


					Treasury
	Retail		Commercial		and
(dollars in thousands)	Banking		Banking		Other		Total
Three Months Ended March 31, 2023
Net interest income	$	108,920	$	40,939	$	17,388	$	167,247
Provision for credit losses		(2,563)		(3,873)		(2,364)		(8,800)
Net interest income after provision for credit losses		106,357		37,066		15,024		158,447

Noninterest income		24,267		17,888		6,868		49,023
Noninterest expense		(75,843)		(27,770)		(14,954)		(118,567)
Income before provision for income taxes		54,781		27,184		6,938		88,903

Provision for income taxes		(13,266)		(6,330)		(2,489)		(22,085)
Net income	$	41,515	$	20,854	$	4,449	$	66,818

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Allowance for Credit Losses

3 Months Ended

Mar. 31, 2024

Allowance for Credit Losses

Allowance for Credit Losses

4. Allowance for Credit Losses

The Company maintains the allowance for credit losses for loans and leases (the “ACL”) that is deducted from the amortized cost basis of loans and leases to present the net carrying value of loans and leases expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount of loans and leases. While management utilizes its best judgment and information available, the ultimate appropriateness of the ACL is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. The Company’s methodology is more fully described in our Annual Report on Form 10-K for the year ended December 31, 2023.

The Company also maintains an estimated reserve for unfunded commitments on the unaudited interim consolidated balance sheets. The reserve for unfunded commitments is reduced in the period in which the off-balance sheet financial instruments expire, loan funding occurs, or is otherwise settled.

Rollforward of the Allowance for Credit Losses

The following presents the activity in the ACL by class of loans and leases for the three months ended March 31, 2024 and 2023:

Three Months Ended March 31, 2024

Commercial Lending

Residential Lending

Commercial

Home

and

Real

Lease

Residential

Equity

(dollars in thousands)

Industrial

Estate

Construction

Financing

Mortgage

Line

Consumer

Total

Allowance for credit losses:

Balance at beginning of period

14,956

43,944

10,392

1,754

36,880

11,728

36,879

156,533

Charge-offs

(909)

—

(4,854)

(5,763)

Recoveries

211

—

1,689

1,974

Provision

2,829

(418)

2,049

731

(120)

(325)

2,346

7,092

Balance at end of period

17,087

43,526

12,441

2,485

36,790

11,447

36,060

159,836


	Three Months Ended March 31, 2023
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Total
Allowance for credit losses:
Balance at beginning of period	$	14,564	$	43,810	$	5,843	$	1,551	$	35,175	$	8,296	$	34,661	$	143,900
Charge-offs		(791)		—		—		—		(122)		(135)		(4,782)		(5,830)
Recoveries		246		—		—		—		27		177		2,166		2,616
Provision		19		(3,499)		630		(70)		(760)		1,003		9,113		6,436
Balance at end of period	$	14,038	$	40,311	$	6,473	$	1,481	$	34,320	$	9,341	$	41,158	$	147,122

Rollforward of the Reserve for Unfunded Commitments

The following presents the activity in the Reserve for Unfunded Commitments for the three months ended March 31, 2024 and 2023:

Three Months Ended March 31, 2024

Commercial Lending

Residential Lending

Commercial

Home

and

Real

Lease

Residential

Equity

(dollars in thousands)

Industrial

Estate

Construction

Financing

Mortgage

Line

Consumer

Total

Reserve for unfunded commitments:

Balance at beginning of period

9,116

1,787

8,048

—

16,589

35,605

Provision

(324)

(1,151)

—

(10)

598

(792)

Balance at end of period

8,792

1,873

6,897

—

17,187

34,813


	Three Months Ended March 31, 2023
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Total
Reserve for unfunded commitments:
Balance at beginning of period	$	7,811	$	2,004	$	7,470	$	—	$	30	$	16,483	$	37	$	33,835
Provision		(658)		(312)		1,482		—		(13)		1,853		12		2,364
Balance at end of period	$	7,153	$	1,692	$	8,952	$	—	$	17	$	18,336	$	49	$	36,199

Credit Quality Information

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

Loans and leases subject to grading primarily include: commercial and industrial loans, commercial real estate loans, construction loans and lease financing. Other loans subject to grading include installment loans to businesses or individuals for business and commercial purposes, overdraft lines of credit, commercial credit cards, and other credits as may be determined. Credit quality indicators for internally graded loans and leases are generally updated on an annual basis or on a quarterly basis for those loans and leases deemed to be of potentially higher risk.

An internal 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 factors of a borrower: character, earnings and operating cash flow, asset and liability structure, debt capacity, 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 deserve 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.

Loans that are primarily monitored for credit quality using FICO scores include: residential mortgage loans, home equity lines and consumer loans. FICO scores are calculated primarily based on a consideration of payment history, the current amount of debt, the length of credit history available, a recent history of new sources of credit and the mix of credit type. FICO scores are updated on a monthly, quarterly or bi-annual basis, depending on the product type.

The amortized cost basis by year of origination and credit quality indicator of the Company’s loans and leases as of March 31, 2024 was as follows:

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

(continued)


															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.

The amortized cost basis by year of origination and credit quality indicator of the Company’s loans and leases as of December 31, 2023 was as follows:


															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
													Amortized		Amortized
(dollars in thousands)	2023		2022		2021		2020		2019		Prior		Cost Basis		Cost Basis		Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass	$	85,839	$	273,663	$	346,024	$	32,753	$	146,893	$	141,681	$	971,065	$	1,823	$	1,999,741
Special Mention		1		44,069		80		653		1,032		1,290		22,807		14		69,946
Substandard		—		342		230		677		1,686		829		8,330		—		12,094
Other ⁽¹⁾		15,978		11,598		4,814		2,370		1,702		1,125		45,981		—		83,568
Total Commercial and Industrial		101,818		329,672		351,148		36,453		151,313		144,925		1,048,183		1,837		2,165,349
Current period gross charge-offs		130		70		75		87		168		2,952		—		—		3,482

Commercial Real Estate
Risk rating:
Pass		346,369		872,783		676,362		337,529		523,446		1,414,613		74,238		1,350		4,246,690
Special Mention		2,307		7,618		41,320		1,359		13,550		11,998		819		—		78,971
Substandard		205		5,079		2,003		—		2,953		2,545		1,655		—		14,440
Other ⁽¹⁾		—		—		—		—		—		142		—		—		142
Total Commercial Real Estate		348,881		885,480		719,685		338,888		539,949		1,429,298		76,712		1,350		4,340,243
Current period gross charge-offs		—		—		—		—		2,500		—		—		—		2,500

Construction
Risk rating:
Pass		156,432		269,623		265,674		60,057		63,018		27,847		6,070		—		848,721
Special Mention		—		—		—		—		189		665		—		—		854
Other ⁽¹⁾		12,728		21,036		8,250		2,143		2,031		3,820		709		—		50,717
Total Construction		169,160		290,659		273,924		62,200		65,238		32,332		6,779		—		900,292
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Lease Financing
Risk rating:
Pass		145,914		82,833		18,680		31,791		30,299		68,520		—		—		378,037
Special Mention		56		137		414		35		—		—		—		—		642
Substandard		712		416		—		—		2		—		—		—		1,130
Total Lease Financing		146,682		83,386		19,094		31,826		30,301		68,520		—		—		379,809
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Total Commercial Lending	$	766,541	$	1,589,197	$	1,363,851	$	469,367	$	786,801	$	1,675,075	$	1,131,674	$	3,187	$	7,785,693
Current period gross charge-offs	$	130	$	70	$	75	$	87	$	2,668	$	2,952	$	—	$	—	$	5,982

(continued)


															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
(continued)													Amortized		Amortized
(dollars in thousands)	2023		2022		2021		2020		2019		Prior		Cost Basis		Cost Basis		Total
Residential Lending
Residential Mortgage
FICO:
740 and greater	$	211,598	$	529,296	$	999,522	$	529,881	$	227,058	$	987,251	$	—	$	—	$	3,484,606
680 - 739		36,975		67,205		117,337		68,122		33,148		130,387		—		—		453,174
620 - 679		3,544		16,395		19,184		12,811		4,096		38,987		—		—		95,017
550 - 619		1,305		6,521		1,917		2,492		398		11,679		—		—		24,312
Less than 550		—		—		2,909		2,017		582		6,439		—		—		11,947
No Score ⁽³⁾		9,137		19,311		11,492		6,043		9,679		51,109		—		—		106,771
Other ⁽²⁾		15,802		17,528		17,432		12,534		8,599		25,513		10,080		—		107,488
Total Residential Mortgage		278,361		656,256		1,169,793		633,900		283,560		1,251,365		10,080		—		4,283,315
Current period gross charge-offs		—		—		—		—		—		122		—		—		122

Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		964,932		1,511		966,443
680 - 739		—		—		—		—		—		—		151,716		1,920		153,636
620 - 679		—		—		—		—		—		—		36,541		1,189		37,730
550 - 619		—		—		—		—		—		—		9,896		1,012		10,908
Less than 550		—		—		—		—		—		—		4,488		100		4,588
No Score ⁽³⁾		—		—		—		—		—		—		1,283		—		1,283
Total Home Equity Line		—		—		—		—		—		—		1,168,856		5,732		1,174,588
Current period gross charge-offs		—		—		—		—		—		—		273		19		292

Total Residential Lending	$	278,361	$	656,256	$	1,169,793	$	633,900	$	283,560	$	1,251,365	$	1,178,936	$	5,732	$	5,457,903
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	122	$	273	$	19	$	414

Consumer Lending
FICO:
740 and greater		92,117		128,358		76,148		33,507		21,819		8,970		123,592		155		484,666
680 - 739		68,865		71,031		37,925		17,116		13,270		5,690		76,645		401		290,943
620 - 679		28,533		29,229		16,919		7,843		7,972		4,624		35,210		781		131,111
550 - 619		4,996		10,859		7,760		4,917		4,651		2,986		13,223		925		50,317
Less than 550		1,790		6,370		4,842		2,796		2,905		2,040		5,222		455		26,420
No Score ⁽³⁾		1,545		229		—		—		1		10		42,933		136		44,854
Other ⁽²⁾		361		368		982		335		1,059		1		78,484		—		81,590
Total Consumer Lending	$	198,207	$	246,444	$	144,576	$	66,514	$	51,677	$	24,321	$	375,309	$	2,853	$	1,109,901
Current period gross charge-offs	$	639	$	2,400	$	2,135	$	1,142	$	1,816	$	2,622	$	5,790	$	566	$	17,110

Total Loans and Leases	$	1,243,109	$	2,491,897	$	2,678,220	$	1,169,781	$	1,122,038	$	2,950,761	$	2,685,919	$	11,772	$	14,353,497
Current period gross charge-offs	$	769	$	2,470	$	2,210	$	1,229	$	4,484	$	5,696	$	6,063	$	585	$	23,506

(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.

There were no loans and leases graded as Loss as of March 31, 2024 and December 31, 2023.

Past-Due Status

The Company continually updates its aging analysis for loans and leases to monitor the migration of loans and leases into past due categories. The Company considers loans and leases that are delinquent for 30 days or more to be past due. As of March 31, 2024 and December 31, 2023, the aging analysis of the amortized cost basis of the Company’s past due loans and leases was as follows:

March 31, 2024

Past Due

Loans and

Greater

Leases Past

Than or

Due 90 Days

30-59

60-89

Equal to

or More and

Days

90 Days

Total

Total Loans

Still Accruing

(dollars in thousands)

Past Due

Current

and Leases

Interest

Commercial and industrial

1,713

162

1,470

3,345

2,186,530

2,189,875

529

Commercial real estate

—

2,953

4,298,347

4,301,300

—

Construction

—

606

971,911

972,517

606

Lease financing

—

394,009

—

Residential mortgage

1,857

2,742

5,406

10,005

4,232,497

4,242,502

359

Home equity line

2,996

894

2,827

6,717

1,159,061

1,165,778

—

Consumer

15,606

2,873

2,126

20,605

1,033,622

1,054,227

2,126

Total

22,172

6,671

15,388

44,231

14,275,977

14,320,208

3,620


	December 31, 2023
	Past Due												Loans and
					Greater								Leases Past
					Than or								Due 90 Days
	30-59		60-89		Equal to								or More and
	Days		Days		90 Days		Total				Total Loans		Still Accruing
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		and Leases		Interest
Commercial and industrial	$	2,611	$	349	$	1,464	$	4,424	$	2,160,925	$	2,165,349	$	494
Commercial real estate		—		196		300		496		4,339,747		4,340,243		300
Construction		25,191		—		—		25,191		875,101		900,292		—
Lease financing		—		—		—		—		379,809		379,809		—
Residential mortgage		5,244		1,475		4,720		11,439		4,271,876		4,283,315		—
Home equity line		5,940		624		3,550		10,114		1,164,474		1,174,588		—
Consumer		23,259		3,897		2,702		29,858		1,080,043		1,109,901		2,702
Total	$	62,245	$	6,541	$	12,736	$	81,522	$	14,271,975	$	14,353,497	$	3,496

Nonaccrual 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. The Company charges off a loan or lease when facts indicate that the loan or lease is considered uncollectible.

The amortized cost basis of loans and leases on nonaccrual status as of March 31, 2024 and December 31, 2023 and the amortized cost basis of loans and leases on nonaccrual status with no ACL as of March 31, 2024 and December 31, 2023 were as follows:


	March 31, 2024
	Nonaccrual
	Loans
	and Leases
	With No		Nonaccrual
	Allowance		Loans
(dollars in thousands)	for Credit Losses		and Leases
Commercial and industrial	$	—	$	942
Commercial real estate		2,685		2,953
Residential mortgage		3,297		7,777
Home equity line		1,150		6,345
Total Nonaccrual Loans and Leases	$	7,132	$	18,017


	December 31, 2023
	Nonaccrual
	Loans
	and Leases
	With No		Nonaccrual
	Allowance		Loans
(dollars in thousands)	for Credit Losses		and Leases
Commercial and industrial	$	—	$	970
Commercial real estate		2,685		2,953
Residential mortgage		2,667		7,620
Home equity line		1,163		7,052
Total Nonaccrual Loans and Leases	$	6,515	$	18,595

For the three months ended March 31, 2024, the Company recognized interest income of $0.2 million on nonaccrual loans and leases and for the three months ended March 31, 2023, the Company recognized interest income of $0.1 million on nonaccrual loans and leases. Furthermore, for both the three months ended March 31, 2024 and 2023, the amount of accrued interest receivables written off by reversing interest income was $0.2 million.

Collateral-Dependent Loans and Leases

Collateral-dependent loans and leases are those for which repayment (on the basis of the Company’s assessment as of the reporting date) is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. As of March 31, 2024 and December 31, 2023, the amortized cost basis of collateral-dependent loans were $32.5 million and $11.1 million, respectively. As of March 31, 2024, these loans were primarily collateralized by residential real estate property and borrower assets and the fair value of collateral on substantially all collateral-dependent loans were significantly in excess of their amortized cost basis. As of December 31, 2023, these loans were primarily collateralized by residential real estate property and the fair value of collateral on substantially all collateral-dependent loans were significantly in excess of their amortized cost basis.

Loan Modifications to Borrowers Experiencing Financial Difficulty

Commercial and industrial loans with a borrower experiencing financial difficulty may be modified through interest rate reductions, term extensions, and converting revolving credit lines to term loans. Modifications of commercial real estate and construction loans with a borrower experiencing financial difficulty may involve reducing the interest rate for the remaining term of the loan or extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk. Modifications of construction loans with a borrower experiencing financial difficulty may also involve extending the interest-only payment period. Interest continues to accrue on the missed payments and as a result, the effective yield on the loan remains unchanged. Modifications of residential real estate loans with a borrower experiencing financial difficulty may be comprised of loans where monthly payments are lowered to accommodate the borrowers' financial needs for a period of time, including extended interest-only periods and reamortization of the balance. Modifications of consumer loans with a borrower experiencing financial difficulty may involve interest rate reductions and term extensions.

Loans modified with a borrower experiencing financial difficulty, whether in default or not, 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 with a borrower experiencing financial difficulty are evaluated for impairment. As a result, this may have a financial effect of impacting the specific ACL associated with the loan. An ACL 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 or if the loan is collateral-dependent, the estimated fair value of the collateral, less any selling costs. An ACL for impaired residential real estate 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 following tables present, by class of financing receivable and type of modification granted, the amortized cost basis as of March 31, 2024 and 2023, related to loans modified to borrowers experiencing financial difficulty during the three months ended March 31, 2024 and 2023, respectively:

Interest Rate Reduction

Three Months Ended

March 31, 2024

March 31, 2023

Amortized

% of Total Class

Amortized

% of Total Class

(dollars in thousands)

Cost Basis⁽¹⁾

of Financing Receivable

Cost Basis⁽¹⁾

of Financing Receivable

Commercial real estate

—

n/m

Consumer

628

0.06

358

0.03

Total

628

n/m

362

n/m

n/m – Represents less than 0.01% of total class of financing receivable.

(1)	The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period.

Term Extension

Three Months Ended

March 31, 2024

March 31, 2023

Amortized

% of Total Class

Amortized

% of Total Class

(dollars in thousands)

Cost Basis⁽¹⁾

of Financing Receivable

Cost Basis⁽¹⁾

of Financing Receivable

Commercial and industrial

199

0.01

n/m

Construction

—

231

0.03

Residential mortgage

310

0.01

n/m

Consumer

118

0.01

0.01

Total

627

n/m

432

n/m

n/m – Represents less than 0.01% of total class of financing receivable.

(1)	The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period.

Other-Than-Insignificant Payment Delay

Three Months Ended

March 31, 2024

March 31, 2023

Amortized

% of Total Class

Amortized

% of Total Class

(dollars in thousands)

Cost Basis⁽¹⁾

of Financing Receivable

Cost Basis⁽¹⁾

of Financing Receivable

Residential mortgage

1,260

0.03

—

Total

1,260

n/m

—

n/m – Represents less than 0.01% of total class of financing receivable.

(1)	The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period.

The following tables describe, by class of financing receivable and type of modification granted, the financial effect of the modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2024 and 2023.


	Interest Rate Reduction
	Financial Effect
	Three Months Ended March 31, 2024	Three Months Ended March 31, 2023
Commercial real estate	—	Reduced weighted-average contractual interest rate by 0.75%.
Consumer	Reduced weighted-average contractual interest rate by 13.55%.	Reduced weighted-average contractual interest rate by 13.51%.


	Term Extension
	Financial Effect
	Three Months Ended March 31, 2024	Three Months Ended March 31, 2023
Commercial and industrial	Added a weighted-average 3.8 years to the life of loans.	Added a weighted-average 3.0 years to the life of loans.
Construction	—	Added a weighted-average 2.9 years to the life of loans.
Residential mortgage	Added a weighted-average 1.0 years to the life of loans.	Added a weighted-average 5.9 years to the life of loans.
Consumer	Added a weighted-average 4.2 years to the life of loans.	Added a weighted-average 4.6 years to the life of loans.


	Other-Than-Insignificant Payment Delay
	Financial Effect
	Three Months Ended March 31, 2024	Three Months Ended March 31, 2023
Residential mortgage	Deferred an average of $172 thousand in loan payments.	—

The following table presents, by class of financing receivable and type of modification granted, the amortized cost basis, as of March 31, 2024 and 2023, of loans that had a payment default during the three months ended March 31, 2024 and 2023, respectively, and were modified in the 12 months before default to borrowers experiencing financial difficulty. The Company is reporting these defaulted loans based on a payment default definition of 30 days past due:


	Amortized Cost Basis of Modified Loans That Subsequently Defaulted⁽¹⁾
	Three Months Ended March 31, 2024				Three Months Ended March 31, 2023
(dollars in thousands)	Interest Rate Reduction			Term Extension	Interest Rate Reduction		Term Extension
Consumer	$	300	$	7	$	10	$	—
Total	$	300	$	7	$	10	$	—

(1)	The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period.

Performance of the loans that are modified to borrowers experiencing financial difficulty is monitored to understand the effectiveness of the Company’s modification efforts. As of March 31, 2024 and 2023, the aging analysis of the amortized cost basis of the performance of loans that have been modified in the last 12 months related to borrowers experiencing financial difficulty was as follows:


		March 31, 2024
		Past Due
						Greater Than
						or Equal to
		30-59 Days		60-89 Days		90 Days		Total
(dollars in thousands)		Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial and industrial	$	—	$	—	$	—	$	—	$	467	$	467
Commercial real estate		—		—		—		—		2,857		2,857
Construction		—		—		—		—		657		657
Residential mortgage		—		—		—		—		1,570		1,570
Consumer		96		86		22		204		1,407		1,611
Total	$	96	$	86	$	22	$	204	$	6,958	$	7,162


		March 31, 2023
		Past Due
						Greater Than
						or Equal to
		30-59 Days		60-89 Days		90 Days		Total
(dollars in thousands)		Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial and industrial	$	—	$	—	$	—	$	—	$	96	$	96
Commercial real estate		—		—		—		—		4		4
Construction		—		—		—		—		231		231
Residential mortgage		—		—		—		—		34		34
Consumer		9		—		—		9		420		429
Total	$	9	$	—	$	—	$	9	$	785	$	794

The Company had commitments to extend credit, standby letters of credit, and commercial letters of credit totaling $6.5 billion as of both March 31, 2024 and December 31, 2023. Of the $6.5 billion at March 31, 2024, there were no commitments to lend additional funds to borrowers experiencing financial difficulty for which the Company had modified the terms of the loans in the form of an interest rate reduction, term extension, or other-than-insignificant payment delay during the three months ended March 31, 2024. Of the $6.5 billion at December 31, 2023, there were commitments of $5.0 million to lend additional funds to borrowers experiencing financial difficulty for which the Company had modified the terms of the loans in the form of an interest rate reduction or a term extension during the year ended December 31, 2023.

Foreclosed Property

As of both March 31, 2024 and December 31, 2023, there were no residential real estate properties held from foreclosed residential mortgage loans.

Deposits - Maturity Distribution of Time Certificates of Deposits (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Maturity distribution of time certificates of deposit
Three months or less	$ 888,324
Over three through six months	1,215,093
Over six through twelve months	1,034,155
One to two years	67,281
Two to three years	31,278
Three to four years	29,803
Four to five years	17,727
Thereafter	384
Total	3,284,045
Under $250,000
Maturity distribution of time certificates of deposit
Three months or less	375,094
Over three through six months	742,247
Over six through twelve months	588,338
One to two years	54,414
Two to three years	28,830
Three to four years	22,977
Four to five years	17,156
Thereafter	384
Total	1,829,440
$250,000 or More
Maturity distribution of time certificates of deposit
Three months or less	513,230
Over three through six months	472,846
Over six through twelve months	445,817
One to two years	12,867
Two to three years	2,448
Three to four years	6,826
Four to five years	571
Total	$ 1,454,605

Earnings per Share

3 Months Ended

Mar. 31, 2024

Earnings per Share

Earnings per Share

14. Earnings per Share

For the three months ended March 31, 2024, the Company made no adjustments to net income for the purpose of computing earnings per share and there were 115,000 antidilutive securities. For the three months ended March 31, 2023, the Company made no adjustments to net income for the purpose of computing earnings per share and there were 221,000 antidilutive securities. For the three months ended March 31, 2024 and 2023, the computations of basic and diluted earnings per share were as follows:


	Three Months Ended March 31,
(dollars in thousands, except shares and per share amounts)	2024		2023
Numerator:
Net income	$	54,220	$	66,818

Denominator:
Basic: weighted-average shares outstanding		127,707,354		127,453,820
Add: weighted-average equity-based awards		510,335		579,992
Diluted: weighted-average shares outstanding		128,217,689		128,033,812

Basic earnings per share	$	0.42	$	0.52
Diluted earnings per share	$	0.42	$	0.52

Revenue from Contracts with Customers - Other (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Revenue from Contracts with Customers
Significant performance obligations	$ 0	$ 0
Material contract acquisition costs	$ 0	$ 0

Transfers of Financial Assets (Tables)

3 Months Ended

Mar. 31, 2024

Transfers of Financial Assets

Schedule of carrying amounts of assets pledged as collateral


(dollars in thousands)	March 31, 2024		December 31, 2023
Public deposits	$	1,946,863	$	2,571,359
Federal Home Loan Bank		5,000,994		4,495,266
Federal Reserve Bank		3,943,124		4,074,093
ACH transactions		135,443		137,101
Interest rate swaps		1,184		575
Total	$	11,027,608	$	11,278,394

Allowance for Credit Losses - Loan Modified to Borrowers Experiencing Financial Difficulty (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Troubled debt restructuring modifications
Amortized Cost Basis	$ 7,162,000	$ 794,000
Commitments related to borrowers experiencing financial difficulty	0
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit	6,500,000,000		$ 6,500,000,000
Commitments related to borrowers experiencing financial difficulty			$ 5,000,000.0
30 - 59 Days Past Due
Troubled debt restructuring modifications
Amortized Cost Basis	96,000	9,000
60 - 89 Days Past Due
Troubled debt restructuring modifications
Amortized Cost Basis	86,000
90 Days or Greater Past Due
Troubled debt restructuring modifications
Amortized Cost Basis	22,000
Total Past Due
Troubled debt restructuring modifications
Amortized Cost Basis	204,000	9,000
Current
Troubled debt restructuring modifications
Amortized Cost Basis	6,958,000	785,000
Commercial and Industrial
Troubled debt restructuring modifications
Amortized Cost Basis	467,000	96,000
Commercial and Industrial \| Current
Troubled debt restructuring modifications
Amortized Cost Basis	467,000	96,000
Construction
Troubled debt restructuring modifications
Amortized Cost Basis	657,000	231,000
Construction \| Current
Troubled debt restructuring modifications
Amortized Cost Basis	657,000	231,000
Commercial Real Estate
Troubled debt restructuring modifications
Amortized Cost Basis	2,857,000	4,000
Commercial Real Estate \| Current
Troubled debt restructuring modifications
Amortized Cost Basis	2,857,000	4,000
Residential mortgage
Troubled debt restructuring modifications
Amortized Cost Basis	1,570,000	34,000
Residential mortgage \| Current
Troubled debt restructuring modifications
Amortized Cost Basis	1,570,000	34,000
Consumer
Troubled debt restructuring modifications
Amortized Cost Basis	1,611,000	429,000
Consumer \| 30 - 59 Days Past Due
Troubled debt restructuring modifications
Amortized Cost Basis	96,000	9,000
Consumer \| 60 - 89 Days Past Due
Troubled debt restructuring modifications
Amortized Cost Basis	86,000
Consumer \| 90 Days or Greater Past Due
Troubled debt restructuring modifications
Amortized Cost Basis	22,000
Consumer \| Total Past Due
Troubled debt restructuring modifications
Amortized Cost Basis	204,000	9,000
Consumer \| Current
Troubled debt restructuring modifications
Amortized Cost Basis	1,407,000	420,000
Interest Rate Reduction
Troubled debt restructuring modifications
Amortized Cost Basis	628,000	362,000
Amortized Cost Basis of Modified Loans That Subsequently Defaulted	300,000	10,000
Interest Rate Reduction \| Commercial Real Estate
Troubled debt restructuring modifications
Amortized Cost Basis		$ 4,000
Reduced weighted-average contractual interest rate		0.75%
Interest Rate Reduction \| Consumer
Troubled debt restructuring modifications
Amortized Cost Basis	$ 628,000	$ 358,000
% of Total Class of Financing Receivable	0.06%	0.03%
Reduced weighted-average contractual interest rate	13.55%	13.51%
Amortized Cost Basis of Modified Loans That Subsequently Defaulted	$ 300,000	$ 10,000
Term Extension
Troubled debt restructuring modifications
Amortized Cost Basis	627,000	432,000
Amortized Cost Basis of Modified Loans That Subsequently Defaulted	7,000
Term Extension \| Commercial and Industrial
Troubled debt restructuring modifications
Amortized Cost Basis	$ 199,000	$ 96,000
% of Total Class of Financing Receivable	0.01%
Added weighted-average years to the life of loans	3 years 9 months 18 days	3 years
Term Extension \| Construction
Troubled debt restructuring modifications
Amortized Cost Basis		$ 231,000
% of Total Class of Financing Receivable		0.03%
Added weighted-average years to the life of loans		2 years 10 months 24 days
Term Extension \| Residential mortgage
Troubled debt restructuring modifications
Amortized Cost Basis	$ 310,000	$ 34,000
% of Total Class of Financing Receivable	0.01%
Added weighted-average years to the life of loans	1 year	5 years 10 months 24 days
Term Extension \| Consumer
Troubled debt restructuring modifications
Amortized Cost Basis	$ 118,000	$ 71,000
% of Total Class of Financing Receivable	0.01%	0.01%
Added weighted-average years to the life of loans	4 years 2 months 12 days	4 years 7 months 6 days
Amortized Cost Basis of Modified Loans That Subsequently Defaulted	$ 7,000
Other-Than-Insignificant Payment Delay
Troubled debt restructuring modifications
Amortized Cost Basis	1,260,000
Other-Than-Insignificant Payment Delay \| Residential mortgage
Troubled debt restructuring modifications
Amortized Cost Basis	$ 1,260,000
% of Total Class of Financing Receivable	0.03%
Financing receivable, modified, increase (decrease) from modification	$ 172,000

Investment Securities

3 Months Ended

Mar. 31, 2024

Investment Securities

Investment Securities

2. Investment Securities

As of March 31, 2024 and December 31, 2023, 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 agencies and 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.

Collateralized loan obligations – includes structured debt securities backed by a pool of loans, consisting of primarily non-investment grade broadly syndicated corporate loans with additional credit enhancement. These are floating rate securities that have an investment grade rating of AA or better.

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

As of March 31, 2024 and December 31, 2023, the Company’s investment securities were classified as either available-for-sale or held-to-maturity. Amortized cost, gross unrealized holding gains and losses and fair value of available-for-sale and held-to-maturity investment securities as of March 31, 2024 and December 31, 2023 were as follows:


	March 31, 2024								December 31, 2023
	Amortized		Unrealized		Unrealized		Fair		Amortized		Unrealized		Unrealized		Fair
(dollars in thousands)	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. Treasury and government agency debt securities	$	13,254	$	—	$	(433)	$	12,821	$	33,169	$	—	$	(666)	$	32,503
Government-sponsored enterprises debt securities		20,000		—		(371)		19,629		20,000		—		(408)		19,592
Mortgage-backed securities:
Residential - Government agency		10,959		—		(1,350)		9,609		11,303		—		(1,121)		10,182
Residential - Government-sponsored enterprises		868,033		—		(114,648)		753,385		895,421		—		(112,124)		783,297
Commercial - Government agency		264,691		—		(51,297)		213,394		268,944		—		(50,270)		218,674
Commercial - Government-sponsored enterprises		90,441		—		(6,951)		83,490		93,459		—		(7,028)		86,431
Commercial - Non-agency		21,968		142		—		22,110		21,964		—		(281)		21,683
Collateralized mortgage obligations:
Government agency		523,160		—		(70,997)		452,163		538,718		—		(67,568)		471,150
Government-sponsored enterprises		413,731		—		(60,670)		353,061		425,826		—		(61,856)		363,970
Collateralized loan obligations		239,872		383		(579)		239,676		249,871		43		(2,060)		247,854
Total available-for-sale securities	$	2,466,109	$	525	$	(307,296)	$	2,159,338	$	2,558,675	$	43	$	(303,382)	$	2,255,336

Government agency debt securities	$	51,904	$	—	$	(5,300)	$	46,604	$	52,051	$	—	$	(4,497)	$	47,554
Mortgage-backed securities:
Residential - Government agency		42,961		—		(6,209)		36,752		43,885		—		(5,189)		38,696
Residential - Government-sponsored enterprises		97,914		—		(13,466)		84,448		99,379		—		(11,013)		88,366
Commercial - Government agency		30,853		—		(7,651)		23,202		30,795		—		(7,017)		23,778
Commercial - Government-sponsored enterprises		1,127,321		167		(144,378)		983,110		1,129,738		195		(130,757)		999,176
Collateralized mortgage obligations:
Government agency		972,199		—		(125,164)		847,035		989,130		—		(109,471)		879,659
Government-sponsored enterprises		1,610,563		—		(209,655)		1,400,908		1,642,274		—		(193,897)		1,448,377
Debt securities issued by states and political subdivisions		54,296		—		(5,645)		48,651		54,197		—		(4,947)		49,250
Total held-to-maturity securities	$	3,988,011	$	167	$	(517,468)	$	3,470,710	$	4,041,449	$	195	$	(466,788)	$	3,574,856

Accrued interest receivable related to available-for-sale investment securities was $7.0 million and $7.2 million as of March 31, 2024 and December 31, 2023, respectively. Accrued interest receivable related to held-to-maturity investment securities was $7.3 million and $7.0 million as of March 31, 2024 and December 31, 2023, respectively. Accrued interest receivable is recorded separately from the amortized cost basis of investment securities on the Company’s unaudited interim consolidated balance sheets.

Proceeds from calls and sales of investment securities were $10.3 million and nil, respectively, for the three months ended March 31, 2024, and $0.2 million and nil, respectively, for the three months ended March 31, 2023. The Company recorded gross realized gains of nil and gross realized losses of nil for the three months ended March 31, 2024 and 2023. The income tax benefit related to the Company’s net realized loss on the sale of investment securities was nil for the three months ended March 31, 2024 and 2023. Gains and losses realized on sales of securities are determined using the specific identification method.

Interest income from taxable investment securities was $29.1 million and $34.0 million, respectively, for the three months ended March 31, 2024 and 2023. Interest income from non-taxable investment securities was $3.2 million and $3.6 million, respectively, for the three months ended March 31, 2024 and 2023.

The amortized cost and fair value of debt securities issued by the U.S. Treasury, government agencies, government-sponsored enterprises and states and political subdivisions, non-agency mortgage-backed securities and collateralized loan obligations as of March 31, 2024, by contractual maturity, are shown below. Mortgage-backed securities and collateralized mortgage obligations issued by government agencies and government-sponsored enterprises are disclosed separately in the table below as remaining expected maturities will differ from contractual maturities as borrowers have the right to prepay obligations.


	March 31, 2024
	Amortized		Fair
(dollars in thousands)	Cost		Value
Available-for-sale securities
Due in one year or less	$	13,254	$	12,821
Due after one year through five years		29,275		28,885
Due after five years through ten years		87,696		87,617
Due after ten years		164,869		164,913
		295,094		294,236

Mortgage-backed securities:
Residential - Government agency		10,959		9,609
Residential - Government-sponsored enterprises		868,033		753,385
Commercial - Government agency		264,691		213,394
Commercial - Government-sponsored enterprises		90,441		83,490
Total mortgage-backed securities		1,234,124		1,059,878
Collateralized mortgage obligations:
Government agency		523,160		452,163
Government-sponsored enterprises		413,731		353,061
Total collateralized mortgage obligations		936,891		805,224
Total available-for-sale securities	$	2,466,109	$	2,159,338

Held-to-maturity securities
Due in one year or less	$	—	$	—
Due after one year through five years		—		—
Due after five years through ten years		22,132		20,121
Due after ten years		84,068		75,134
		106,200		95,255

Mortgage-backed securities:
Residential - Government agency		42,961		36,752
Residential - Government-sponsored enterprises		97,914		84,448
Commercial - Government agency		30,853		23,202
Commercial - Government-sponsored enterprises		1,127,321		983,110
Total mortgage-backed securities		1,299,049		1,127,512
Collateralized mortgage obligations:
Government agency		972,199		847,035
Government-sponsored enterprises		1,610,563		1,400,908
Total collateralized mortgage obligations		2,582,762		2,247,943
Total held-to-maturity securities	$	3,988,011	$	3,470,710

At March 31, 2024, pledged securities totaled $4.3 billion, of which $2.2 billion was pledged to secure borrowing capacity, $1.9 billion was pledged to secure public deposits and $154.0 million was pledged to secure other financial transactions. At December 31, 2023, pledged securities totaled $5.0 billion, of which $2.6 billion was pledged to secure public deposits, $2.3 billion was pledged to secure borrowing capacity and $183.0 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 March 31, 2024 and December 31, 2023.

The following tables present the unrealized gross losses and fair values of securities in the available-for-sale portfolio by length of time that the 204 and 222 individual securities in each category have been in a continuous loss position as of March 31, 2024 and December 31, 2023, respectively. The unrealized losses on available-for-sale investment securities were attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities.

Time in Continuous Loss as of March 31, 2024

Less Than 12 Months

12 Months or More

Total

Unrealized

(dollars in thousands)

Losses

Fair Value

Losses

Fair Value

Losses

Fair Value

U.S. Treasury and government agency debt securities

—

(433)

12,821

(433)

12,821

Government-sponsored enterprises debt securities

—

(371)

19,629

(371)

19,629

Mortgage-backed securities:

Residential - Government agency

—

(1,350)

9,609

(1,350)

9,609

Residential - Government-sponsored enterprises

—

(114,648)

753,385

(114,648)

753,385

Commercial - Government agency

—

(51,297)

213,394

(51,297)

213,394

Commercial - Government-sponsored enterprises

—

(6,951)

83,490

(6,951)

83,490

Collateralized mortgage obligations:

Government agency

—

(70,997)

452,163

(70,997)

452,163

Government-sponsored enterprises

—

(60,670)

353,061

(60,670)

353,061

Collateralized loan obligations

(8)

8,492

(571)

99,029

(579)

107,521

Total available-for-sale securities with unrealized losses

(8)

8,492

(307,288)

1,996,581

(307,296)

2,005,073


	Time in Continuous Loss as of December 31, 2023
	Less Than 12 Months				12 Months or More				Total
	Unrealized				Unrealized				Unrealized
(dollars in thousands)	Losses		Fair Value		Losses		Fair Value		Losses		Fair Value
U.S. Treasury and government agency debt securities	$	—	$	—	$	(666)	$	32,503	$	(666)	$	32,503
Government-sponsored enterprises debt securities		—		—		(408)		19,592		(408)		19,592
Mortgage-backed securities:
Residential - Government agency		—		—		(1,121)		10,182		(1,121)		10,182
Residential - Government-sponsored enterprises		—		—		(112,124)		783,297		(112,124)		783,297
Commercial - Government agency		—		—		(50,270)		218,674		(50,270)		218,674
Commercial - Government-sponsored enterprises		—		—		(7,028)		86,431		(7,028)		86,431
Commercial - Non-agency		—		—		(281)		21,683		(281)		21,683
Collateralized mortgage obligations:
Government agency		—		—		(67,568)		471,150		(67,568)		471,150
Government-sponsored enterprises		—		—		(61,856)		363,970		(61,856)		363,970
Collateralized loan obligations		(564)		63,667		(1,496)		163,126		(2,060)		226,793
Total available-for-sale securities with unrealized losses	$	(564)	$	63,667	$	(302,818)	$	2,170,608	$	(303,382)	$	2,234,275

At March 31, 2024 and December 31, 2023, the Company did not have any available-for-sale 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. As the Company had the intent and ability to hold the remaining available-for-sale securities in an unrealized loss position as of March 31, 2024 and December 31, 2023, each security with an unrealized loss position in the above tables has been further assessed to determine if a credit loss exists. As of March 31, 2024 and December 31, 2023, the Company did not expect any credit losses in its available-for-sale debt securities and no credit losses were recognized on available-for-sale securities during the three months ended March 31, 2024 and for the year ended December 31, 2023.

As of March 31, 2024 and December 31, 2023, the Company’s investment securities were comprised primarily of debt securities, mortgage-backed securities and collateralized mortgage obligations issued by the U.S. Government, its agencies and government-sponsored enterprises, with under 5% of the investment securities comprised of collateralized loan obligations rated AA or better and obligations issued by local state and political subdivisions rated AA or better. For investment securities issued by the U.S. Government, its agencies and government-sponsored enterprises, management has concluded that the long history with no credit losses from these issuers indicates an expectation that nonpayment of the amortized cost basis is zero, and these securities are explicitly or implicitly fully guaranteed by the U.S. government. The U.S. government can print its own currency and its currency is routinely held by central banks and other major financial institutions. The dollar is used in international commerce, and commonly is viewed as a reserve currency, all of which qualitatively indicates that historical credit loss information should be minimally affected by current conditions and reasonable and supportable forecasts. For collateralized loan obligations and debt securities issued by local state and political subdivisions, these securities are investment grade and highly rated and carry either sufficient credit enhancement or days cash on hand to support timely payments of principal and interest. As a result, the Company does not expect any future payment defaults and has not recorded an allowance for credit losses for its available-for-sale and held-to-maturity debt securities as of March 31, 2024 or December 31, 2023.

During the year ended December 31, 2023, the Company recorded a $40.8 million net realized gain related to the sale of approximately 120,000 Visa Class B restricted shares. The Company did not hold any Visa Class B restricted shares as of both March 31, 2024 and December 31, 2023.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)
Cash dividends declared (in dollars per share)	$ 0.26	$ 0.26

Derivative Financial Instruments - Cash Flow Hedges (Details) - Derivatives designated as hedging instruments - Interest rate swaps and collars - Cash Flow Hedges - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Derivative financial instruments
Pretax net losses (gains) reclassified from accumulated other comprehensive income to interest income from loans and lease financing	$ 1,755	$ 1,303
Other comprehensive income (loss)
Derivative financial instruments
Pretax net losses recognized in other comprehensive income on cash flow derivative hedges	$ (713)	$ (442)

Short-Term Borrowings (Tables)

3 Months Ended

Mar. 31, 2024

Short-Term Borrowings

Schedule of short-term borrowings


(dollars in thousands)	March 31, 2024		December 31, 2023
Short-term FHLB fixed-rate advances⁽¹⁾	$	500,000	$	500,000
Total short-term borrowings	$	500,000	$	500,000

(1)	Interest is payable monthly.

Schedule of selected information for short-term borrowings


	Three Months Ended March 31,
(dollars in thousands)	2024			2023
Federal funds purchased:
Weighted-average interest rate at March 31,		—	%		—	%
Highest month-end balance	$	—		$	150,000
Average outstanding balance	$	—		$	67,056
Weighted-average interest rate paid		—	%		4.43	%
Short-term FHLB repo advance:
Weighted-average interest rate at March 31,		—	%		5.00	%
Highest month-end balance	$	—		$	250,000
Average outstanding balance	$	—		$	52,778
Weighted-average interest rate paid		—	%		5.02	%
Short-term FHLB fixed-rate advances:
Weighted-average interest rate at March 31,		4.71	%		—	%
Highest month-end balance	$	500,000		$	—
Average outstanding balance	$	500,000		$	—
Weighted-average interest rate paid		4.79	%		—	%

Other Assets - Mortgage Servicing Rights - Quantitative Assumptions Used for MSRs (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Minimum
Quantitative assumptions used in determining lower of cost or fair value of MSRs
Conditional prepayment rate (as a percent)	6.98%	6.87%
Life in years (of the MSR)	4 years 3 months 10 days	4 years 3 months 18 days
Weighted-average coupon rate (as a percent)	3.63%	3.57%
Discount rate (as a percent)	10.27%	10.40%
Maximum
Quantitative assumptions used in determining lower of cost or fair value of MSRs
Conditional prepayment rate (as a percent)	11.34%	11.53%
Life in years (of the MSR)	7 years 2 months 4 days	7 years 2 months 19 days
Weighted-average coupon rate (as a percent)	5.75%	5.81%
Discount rate (as a percent)	10.58%	10.60%
Weighted Average
Quantitative assumptions used in determining lower of cost or fair value of MSRs
Conditional prepayment rate (as a percent)	7.08%	7.04%
Life in years (of the MSR)	7 years 18 days	7 years 1 month 2 days
Weighted-average coupon rate (as a percent)	3.75%	3.73%
Discount rate (as a percent)	10.52%	10.52%

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Interest income
Loans and lease financing	$ 199,844	$ 172,339
Available-for-sale investment securities	14,546	18,688
Held-to-maturity investment securities	17,793	18,957
Other	12,769	3,561
Total interest income	244,952	213,545
Interest expense
Deposits	84,143	43,284
Short-term and long-term borrowings	5,953	2,563
Other	429	451
Total interest expense	90,525	46,298
Net interest income	154,427	167,247
Provision for credit losses	6,300	8,800
Net interest income (expense) after (provision) benefit for credit losses	148,127	158,447
Noninterest income
Service charges on deposit accounts	7,546	7,231
Credit and debit card fees	16,173	16,298
Other service charges and fees	9,904	9,162
Trust and investment services income	10,354	9,614
Bank-owned life insurance	4,286	5,120
Other	3,108	1,598
Total noninterest income	51,371	49,023
Noninterest expense
Salaries and employee benefits	59,262	56,032
Contracted services and professional fees	15,739	16,313
Occupancy	6,941	7,782
Equipment	13,413	9,736
Regulatory assessment and fees	8,120	3,836
Advertising and marketing	2,612	1,994
Card rewards program	8,508	8,085
Other	14,218	14,789
Total noninterest expense	128,813	118,567
Income before provision for income taxes	70,685	88,903
Provision for income taxes	16,465	22,085
Net income	$ 54,220	$ 66,818
Basic earnings per share	$ 0.42	$ 0.52
Diluted earnings per share	$ 0.42	$ 0.52
Basic weighted-average outstanding shares	127,707,354	127,453,820
Diluted weighted-average outstanding shares	128,217,689	128,033,812

Accumulated Other Comprehensive Loss - Changes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pre-tax Amount
Other comprehensive income , Pre-tax Amount	$ 8,770	$ 37,607
Income Tax Benefit (Expense)
Other comprehensive loss, Income Tax Benefit (Expense)	(2,340)	(10,032)
Net of tax
Balance	2,486,066	2,269,005
Other comprehensive income	6,430	27,575
Balance	2,513,761	2,329,012
Accumulated other comprehensive Income (loss)
Pre-tax Amount
Accumulated other comprehensive loss, beginning balance, Pre-tax Amount	(723,100)	(871,813)
Accumulated other comprehensive loss, ending balance, Pre-tax Amount	(714,330)	(834,206)
Income Tax Benefit (Expense)
Accumulated other comprehensive loss, beginning balance, Income Tax Benefit (Expense)	192,890	232,559
Accumulated other comprehensive loss, ending balance, Income Tax Benefit (Expense)	190,550	222,527
Net of tax
Balance	(530,210)	(639,254)
Other comprehensive income	6,430	27,575
Balance	(523,780)	(611,679)
Pensions and Other Benefits
Net of tax
Balance	(5,373)	(5,431)
Balance	(5,373)	(5,431)
Investment securities
Pre-tax Amount
Unrealized net gains (losses) arising during the period, Pre-tax Amount	(3,432)	25,038
Other comprehensive income , Pre-tax Amount	7,728	36,746
Income Tax Benefit (Expense)
Unrealized net gains (losses) arising during the period, Income Tax Benefit (Expense)	915	(6,679)
Other comprehensive loss, Income Tax Benefit (Expense)	(2,061)	(9,802)
Net of tax
Unrealized net gains (losses) arising during the period, Net of tax	(2,517)	18,359
Other comprehensive income	5,667	26,944
Amortization of unrealized holding losses on held-to-maturity securities
Pre-tax Amount
Reclassification of net losses (gains) to net income, Pre-tax Amount	11,160	11,708
Income Tax Benefit (Expense)
Reclassification of net (losses) gains to net income, Income Tax Benefit (Expense)	(2,976)	(3,123)
Net of tax
Reclassification of net gains (losses) to net income, Net of tax	8,184	8,585
Cash Flow Derivative Hedges.
Pre-tax Amount
Unrealized net gains (losses) arising during the period, Pre-tax Amount	(713)	(442)
Reclassification of net losses (gains) to net income, Pre-tax Amount	1,755	1,303
Other comprehensive income , Pre-tax Amount	1,042	861
Income Tax Benefit (Expense)
Unrealized net gains (losses) arising during the period, Income Tax Benefit (Expense)	189	118
Reclassification of net (losses) gains to net income, Income Tax Benefit (Expense)	(468)	(348)
Other comprehensive loss, Income Tax Benefit (Expense)	(279)	(230)
Net of tax
Balance	(803)	(4,702)
Unrealized net gains (losses) arising during the period, Net of tax	(524)	(324)
Reclassification of net gains (losses) to net income, Net of tax	1,287	955
Other comprehensive income	763	631
Balance	(40)	(4,071)
Available-for-sale Investment securities
Net of tax
Balance	(222,423)	(292,175)
Other comprehensive income	(2,517)	18,359
Balance	$ (224,940)	$ (273,816)

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Cash and due from banks	$ 202,121	$ 185,015
Interest-bearing deposits in other banks	1,072,145	1,554,882
Available-for-sale, at fair value (amortized cost: $2,466,109 as of March 31, 2024 and $2,558,675 as of December 31, 2023)	2,159,338	2,255,336
Held-to-maturity, at amortized cost (fair value: $3,470,710 as of March 31, 2024 and $3,574,856 as of December 31, 2023)	3,988,011	4,041,449
Loans held for sale		190
Loans and leases	14,320,208	14,353,497
Less: allowance for credit losses	159,836	156,533
Net loans and leases	14,160,372	14,196,964
Premises and equipment, net	281,181	281,461
Accrued interest receivable	85,715	84,417
Bank-owned life insurance	484,193	479,907
Goodwill	995,492	995,492
Mortgage servicing rights	5,533	5,699
Other assets	845,085	845,662
Total assets	24,279,186	24,926,474
Deposits:
Interest-bearing	13,620,928	13,749,095
Noninterest-bearing	7,048,553	7,583,562
Total deposits	20,669,481	21,332,657
Short-term borrowings	500,000	500,000
Retirement benefits payable	102,242	103,285
Other liabilities	493,702	504,466
Total liabilities	21,765,425	22,440,408
Commitments and contingent liabilities (Note 12)
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,687,612 / 127,841,908 as of March 31, 2024; issued/outstanding: 141,340,539 / 127,618,761 as of December 31, 2023)	1,417	1,413
Additional paid-in capital	2,551,488	2,548,250
Retained earnings	858,494	837,859
Accumulated other comprehensive loss, net	(523,780)	(530,210)
Treasury stock (13,845,704 shares as of March 31, 2024 and 13,721,778 shares as of December 31, 2023)	(373,858)	(371,246)
Total stockholders' equity	2,513,761	2,486,066
Total liabilities and stockholders' equity	$ 24,279,186	$ 24,926,474

Reportable Operating Segments - Business Segments (Details)	3 Months Ended
	Mar. 31, 2024 segment location
Reportable operating segments
Number of business segments \| segment	3
Retail Banking
Reportable operating segments
Number of banking locations \| location	50

Allowance for Credit Losses - Credit Quality Information (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
Financing Receivable, before Allowance for Credit Loss, Total	$ 14,320,208		$ 14,353,497
Current period gross charge-offs:
Total, Current period gross charge-offs	5,763	$ 5,830
Loss
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
Financing Receivable, before Allowance for Credit Loss, Total	0		0
Residential Lending: Residential Mortgage
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	32,186		278,361
2023/2022	270,446		656,256
2022/2021	651,810		1,169,793
2021/2020	1,153,817		633,900
2020/2019	624,570		283,560
Prior	1,496,697		1,251,365
Revolving Loans Amortized Cost Basis	12,976		10,080
Financing Receivable, before Allowance for Credit Loss, Total	4,242,502		4,283,315
Residential Lending: Residential Mortgage \| 740 and greater
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	28,332		211,598
2023/2022	207,263		529,296
2022/2021	524,402		999,522
2021/2020	987,343		529,881
2020/2019	521,598		227,058
Prior	1,186,496		987,251
Financing Receivable, before Allowance for Credit Loss, Total	3,455,434		3,484,606
Residential Lending: Residential Mortgage \| 680 - 739
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	1,525		36,975
2023/2022	36,569		67,205
2022/2021	67,192		117,337
2021/2020	115,481		68,122
2020/2019	67,662		33,148
Prior	158,890		130,387
Financing Receivable, before Allowance for Credit Loss, Total	447,319		453,174
Residential Lending: Residential Mortgage \| 620 - 679
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	910		3,544
2023/2022	2,910		16,395
2022/2021	16,268		19,184
2021/2020	19,056		12,811
2020/2019	12,733		4,096
Prior	41,573		38,987
Financing Receivable, before Allowance for Credit Loss, Total	93,450		95,017
Residential Lending: Residential Mortgage \| 550 - 619
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023			1,305
2023/2022	1,303		6,521
2022/2021	6,506		1,917
2021/2020	1,903		2,492
2020/2019	2,477		398
Prior	11,685		11,679
Financing Receivable, before Allowance for Credit Loss, Total	23,874		24,312
Residential Lending: Residential Mortgage \| Less than 550
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2022/2021			2,909
2021/2020	2,894		2,017
2020/2019	2,006		582
Prior	6,686		6,439
Financing Receivable, before Allowance for Credit Loss, Total	11,586		11,947
Residential Lending: Residential Mortgage \| No Score
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023			9,137
2023/2022	9,081		19,311
2022/2021	20,505		11,492
2021/2020	11,400		6,043
2020/2019	6,006		9,679
Prior	58,777		51,109
Financing Receivable, before Allowance for Credit Loss, Total	105,769		106,771
Residential Lending: Residential Mortgage \| Fico Other
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	1,419		15,802
2023/2022	13,320		17,528
2022/2021	16,937		17,432
2021/2020	15,740		12,534
2020/2019	12,088		8,599
Prior	32,590		25,513
Revolving Loans Amortized Cost Basis	12,976		10,080
Financing Receivable, before Allowance for Credit Loss, Total	105,070		107,488
Residential Lending: Home Equity Line
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
Revolving Loans Amortized Cost Basis	1,160,270		1,168,856
Revolving Loans Converted to Term Loans Amortized Cost Basis	5,508		5,732
Financing Receivable, before Allowance for Credit Loss, Total	1,165,778		1,174,588
Residential Lending: Home Equity Line \| 740 and greater
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
Revolving Loans Amortized Cost Basis	943,792		964,932
Revolving Loans Converted to Term Loans Amortized Cost Basis	1,428		1,511
Financing Receivable, before Allowance for Credit Loss, Total	945,220		966,443
Residential Lending: Home Equity Line \| 680 - 739
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
Revolving Loans Amortized Cost Basis	162,578		151,716
Revolving Loans Converted to Term Loans Amortized Cost Basis	1,886		1,920
Financing Receivable, before Allowance for Credit Loss, Total	164,464		153,636
Residential Lending: Home Equity Line \| 620 - 679
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
Revolving Loans Amortized Cost Basis	33,728		36,541
Revolving Loans Converted to Term Loans Amortized Cost Basis	927		1,189
Financing Receivable, before Allowance for Credit Loss, Total	34,655		37,730
Residential Lending: Home Equity Line \| 550 - 619
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
Revolving Loans Amortized Cost Basis	13,382		9,896
Revolving Loans Converted to Term Loans Amortized Cost Basis	971		1,012
Financing Receivable, before Allowance for Credit Loss, Total	14,353		10,908
Residential Lending: Home Equity Line \| Less than 550
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
Revolving Loans Amortized Cost Basis	5,392		4,488
Revolving Loans Converted to Term Loans Amortized Cost Basis	296		100
Financing Receivable, before Allowance for Credit Loss, Total	5,688		4,588
Residential Lending: Home Equity Line \| No Score
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
Revolving Loans Amortized Cost Basis	1,398		1,283
Financing Receivable, before Allowance for Credit Loss, Total	1,398		1,283
Total loans
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	191,272		1,243,109
2023/2022	1,230,117		2,491,897
2022/2021	2,477,391		2,678,220
2021/2020	2,601,761		1,169,781
2020/2019	1,140,137		1,122,038
Prior	3,927,591		2,950,761
Revolving Loans Amortized Cost Basis	2,712,398		2,685,919
Revolving Loans Converted to Term Loans Amortized Cost Basis	39,541		11,772
Financing Receivable, before Allowance for Credit Loss, Total	14,320,208		14,353,497
Current period gross charge-offs:
2024, Current period gross charge-offs			769
2023, Current period gross charge-offs	508		2,470
2022, Current period gross charge-offs	1,018		2,210
2021, Current period gross charge-offs	557		1,229
2020, Current period gross charge-offs	324		4,484
Prior, Current period gross charge-offs	1,380		5,696
Revolving Loans Amortized Cost Basis, Current period gross charge-offs	1,789		6,063
Revolving Loans Converted to Term Loans Amortized Cost Basis, Current period gross charge-offs	187		585
Total, Current period gross charge-offs	5,763		23,506
Residential mortgage
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	32,186
2023/2022	270,446
2022/2021	651,810
2021/2020	1,153,817
2020/2019	624,570
Prior	1,496,697
Revolving Loans Amortized Cost Basis	1,173,246
Revolving Loans Converted to Term Loans Amortized Cost Basis	5,508
Financing Receivable, before Allowance for Credit Loss, Total	5,408,280
Current period gross charge-offs:
Prior, Current period gross charge-offs			122
Revolving Loans Amortized Cost Basis, Current period gross charge-offs			273
Revolving Loans Converted to Term Loans Amortized Cost Basis, Current period gross charge-offs			19
Total, Current period gross charge-offs		122	414
Residential mortgage \| Residential Lending: Residential Mortgage
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
Financing Receivable, before Allowance for Credit Loss, Total	4,242,502		4,283,315
Residential mortgage \| Residential Lending: Home Equity Line
Current period gross charge-offs:
Revolving Loans Amortized Cost Basis, Current period gross charge-offs			273
Revolving Loans Converted to Term Loans Amortized Cost Basis, Current period gross charge-offs			19
Total, Current period gross charge-offs			292
Home equity Line \| Residential Lending: Home Equity Line
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
Financing Receivable, before Allowance for Credit Loss, Total	1,165,778		1,174,588
Consumer
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	37,891		198,207
2023/2022	186,259		246,444
2022/2021	224,590		144,576
2021/2020	128,639		66,514
2020/2019	56,849		51,677
Prior	57,912		24,321
Revolving Loans Amortized Cost Basis	359,022		375,309
Revolving Loans Converted to Term Loans Amortized Cost Basis	3,065		2,853
Financing Receivable, before Allowance for Credit Loss, Total	1,054,227		1,109,901
Current period gross charge-offs:
2024, Current period gross charge-offs			639
2023, Current period gross charge-offs	437		2,400
2022, Current period gross charge-offs	904		2,135
2021, Current period gross charge-offs	496		1,142
2020, Current period gross charge-offs	272		1,816
Prior, Current period gross charge-offs	769		2,622
Revolving Loans Amortized Cost Basis, Current period gross charge-offs	1,789		5,790
Revolving Loans Converted to Term Loans Amortized Cost Basis, Current period gross charge-offs	187		566
Total, Current period gross charge-offs	4,854	4,782	17,110
Consumer \| 740 and greater
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	18,671		92,117
2023/2022	82,551		128,358
2022/2021	113,914		76,148
2021/2020	66,175		33,507
2020/2019	28,100		21,819
Prior	22,442		8,970
Revolving Loans Amortized Cost Basis	116,198		123,592
Revolving Loans Converted to Term Loans Amortized Cost Basis	138		155
Financing Receivable, before Allowance for Credit Loss, Total	448,189		484,666
Consumer \| 680 - 739
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	13,464		68,865
2023/2022	64,229		71,031
2022/2021	64,623		37,925
2021/2020	33,167		17,116
2020/2019	14,755		13,270
Prior	13,951		5,690
Revolving Loans Amortized Cost Basis	75,151		76,645
Revolving Loans Converted to Term Loans Amortized Cost Basis	439		401
Financing Receivable, before Allowance for Credit Loss, Total	279,779		290,943
Consumer \| 620 - 679
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	4,293		28,533
2023/2022	28,729		29,229
2022/2021	27,210		16,919
2021/2020	15,641		7,843
2020/2019	6,793		7,972
Prior	10,003		4,624
Revolving Loans Amortized Cost Basis	35,179		35,210
Revolving Loans Converted to Term Loans Amortized Cost Basis	791		781
Financing Receivable, before Allowance for Credit Loss, Total	128,639		131,111
Consumer \| 550 - 619
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	620		4,996
2023/2022	6,973		10,859
2022/2021	11,551		7,760
2021/2020	7,621		4,917
2020/2019	4,025		4,651
Prior	6,289		2,986
Revolving Loans Amortized Cost Basis	13,452		13,223
Revolving Loans Converted to Term Loans Amortized Cost Basis	795		925
Financing Receivable, before Allowance for Credit Loss, Total	51,326		50,317
Consumer \| Less than 550
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	110		1,790
2023/2022	2,634		6,370
2022/2021	6,734		4,842
2021/2020	5,075		2,796
2020/2019	2,837		2,905
Prior	4,179		2,040
Revolving Loans Amortized Cost Basis	5,782		5,222
Revolving Loans Converted to Term Loans Amortized Cost Basis	646		455
Financing Receivable, before Allowance for Credit Loss, Total	27,997		26,420
Consumer \| No Score
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	733		1,545
2023/2022	839		229
2022/2021	209
2020/2019	9		1
Prior	16		10
Revolving Loans Amortized Cost Basis	39,466		42,933
Revolving Loans Converted to Term Loans Amortized Cost Basis	256		136
Financing Receivable, before Allowance for Credit Loss, Total	41,528		44,854
Consumer \| Fico Other
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023			361
2023/2022	304		368
2022/2021	349		982
2021/2020	960		335
2020/2019	330		1,059
Prior	1,032		1
Revolving Loans Amortized Cost Basis	73,794		78,484
Financing Receivable, before Allowance for Credit Loss, Total	76,769		81,590
Residential Mortgage loans
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023			278,361
2023/2022			656,256
2022/2021			1,169,793
2021/2020			633,900
2020/2019			283,560
Prior			1,251,365
Revolving Loans Amortized Cost Basis			1,178,936
Revolving Loans Converted to Term Loans Amortized Cost Basis			5,732
Financing Receivable, before Allowance for Credit Loss, Total			5,457,903
Residential Mortgage loans \| Residential Lending: Residential Mortgage
Current period gross charge-offs:
Prior, Current period gross charge-offs			122
Total, Current period gross charge-offs			122
Commercial and Industrial
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	18,577		101,818
2023/2022	117,149		329,672
2022/2021	316,975		351,148
2021/2020	322,748		36,453
2020/2019	32,868		151,313
Prior	288,259		144,925
Revolving Loans Amortized Cost Basis	1,066,554		1,048,183
Revolving Loans Converted to Term Loans Amortized Cost Basis	26,745		1,837
Financing Receivable, before Allowance for Credit Loss, Total	2,189,875		2,165,349
Current period gross charge-offs:
2024, Current period gross charge-offs			130
2023, Current period gross charge-offs	71		70
2022, Current period gross charge-offs	114		75
2021, Current period gross charge-offs	61		87
2020, Current period gross charge-offs	52		168
Prior, Current period gross charge-offs	611		2,952
Total, Current period gross charge-offs	909	$ 791	3,482
Commercial and Industrial \| Pass
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	13,488		85,839
2023/2022	104,265		273,663
2022/2021	263,282		346,024
2021/2020	318,417		32,753
2020/2019	29,787		146,893
Prior	282,287		141,681
Revolving Loans Amortized Cost Basis	987,132		971,065
Revolving Loans Converted to Term Loans Amortized Cost Basis	26,745		1,823
Financing Receivable, before Allowance for Credit Loss, Total	2,025,403		1,999,741
Commercial and Industrial \| Special mention
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	202		1
2023/2022	1		44,069
2022/2021	23,276		80
2021/2020	73		653
2020/2019	539		1,032
Prior	1,385		1,290
Revolving Loans Amortized Cost Basis	8,132		22,807
Revolving Loans Converted to Term Loans Amortized Cost Basis			14
Financing Receivable, before Allowance for Credit Loss, Total	33,608		69,946
Commercial and Industrial \| Substandard
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023/2022			342
2022/2021	20,364		230
2021/2020	214		677
2020/2019	572		1,686
Prior	2,191		829
Revolving Loans Amortized Cost Basis	25,638		8,330
Financing Receivable, before Allowance for Credit Loss, Total	48,979		12,094
Commercial and Industrial \| Other Indicator
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	4,887		15,978
2023/2022	12,883		11,598
2022/2021	10,053		4,814
2021/2020	4,044		2,370
2020/2019	1,970		1,702
Prior	2,396		1,125
Revolving Loans Amortized Cost Basis	45,652		45,981
Financing Receivable, before Allowance for Credit Loss, Total	81,885		83,568
Commercial Real Estate
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	31,660		348,881
2023/2022	346,964		885,480
2022/2021	876,804		719,685
2021/2020	713,919		338,888
2020/2019	335,964		539,949
Prior	1,890,766		1,429,298
Revolving Loans Amortized Cost Basis	101,000		76,712
Revolving Loans Converted to Term Loans Amortized Cost Basis	4,223		1,350
Financing Receivable, before Allowance for Credit Loss, Total	4,301,300		4,340,243
Current period gross charge-offs:
2020, Current period gross charge-offs			2,500
Total, Current period gross charge-offs			2,500
Commercial Real Estate \| Pass
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	28,321		346,369
2023/2022	344,674		872,783
2022/2021	864,166		676,362
2021/2020	671,379		337,529
2020/2019	334,606		523,446
Prior	1,866,875		1,414,613
Revolving Loans Amortized Cost Basis	93,485		74,238
Revolving Loans Converted to Term Loans Amortized Cost Basis	4,223		1,350
Financing Receivable, before Allowance for Credit Loss, Total	4,207,729		4,246,690
Commercial Real Estate \| Special mention
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	3,339		2,307
2023/2022	2,290		7,618
2022/2021	7,591		41,320
2021/2020	41,337		1,359
2020/2019	1,358		13,550
Prior	18,507		11,998
Revolving Loans Amortized Cost Basis	6,863		819
Financing Receivable, before Allowance for Credit Loss, Total	81,285		78,971
Commercial Real Estate \| Substandard
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023			205
2023/2022			5,079
2022/2021	5,047		2,003
2021/2020	1,203
2020/2019			2,953
Prior	5,244		2,545
Revolving Loans Amortized Cost Basis	652		1,655
Financing Receivable, before Allowance for Credit Loss, Total	12,146		14,440
Commercial Real Estate \| Other Indicator
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
Prior	140		142
Financing Receivable, before Allowance for Credit Loss, Total	140		142
Construction
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	15,057		169,160
2023/2022	193,886		290,659
2022/2021	328,667		273,924
2021/2020	264,773		62,200
2020/2019	60,920		65,238
Prior	96,638		32,332
Revolving Loans Amortized Cost Basis	12,576		6,779
Financing Receivable, before Allowance for Credit Loss, Total	972,517		900,292
Construction \| Pass
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	14,198		156,432
2023/2022	181,628		269,623
2022/2021	311,175		265,674
2021/2020	258,400		60,057
2020/2019	59,563		63,018
Prior	65,776		27,847
Revolving Loans Amortized Cost Basis	11,872		6,070
Financing Receivable, before Allowance for Credit Loss, Total	902,612		848,721
Construction \| Special mention
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2020/2019			189
Prior	837		665
Financing Receivable, before Allowance for Credit Loss, Total	837		854
Construction \| Substandard
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
Prior	24,437
Financing Receivable, before Allowance for Credit Loss, Total	24,437
Construction \| Other Indicator
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	859		12,728
2023/2022	12,258		21,036
2022/2021	17,492		8,250
2021/2020	6,373		2,143
2020/2019	1,357		2,031
Prior	5,588		3,820
Revolving Loans Amortized Cost Basis	704		709
Financing Receivable, before Allowance for Credit Loss, Total	44,631		50,717
Lease financing
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	55,901		146,682
2023/2022	115,413		83,386
2022/2021	78,545		19,094
2021/2020	17,865		31,826
2020/2019	28,966		30,301
Prior	97,319		68,520
Financing Receivable, before Allowance for Credit Loss, Total	394,009		379,809
Lease financing \| Pass
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	50,531		145,914
2023/2022	114,686		82,833
2022/2021	78,028		18,680
2021/2020	17,488		31,791
2020/2019	28,946		30,299
Prior	97,319		68,520
Financing Receivable, before Allowance for Credit Loss, Total	386,998		378,037
Lease financing \| Special mention
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023			56
2023/2022	51		137
2022/2021	125		414
2021/2020	377		35
2020/2019	20
Financing Receivable, before Allowance for Credit Loss, Total	573		642
Lease financing \| Substandard
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	5,370		712
2023/2022	676		416
2022/2021	392
2020/2019			2
Financing Receivable, before Allowance for Credit Loss, Total	6,438		1,130
Commercial Lending
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2024/2023	121,195		766,541
2023/2022	773,412		1,589,197
2022/2021	1,600,991		1,363,851
2021/2020	1,319,305		469,367
2020/2019	458,718		786,801
Prior	2,372,982		1,675,075
Revolving Loans Amortized Cost Basis	1,180,130		1,131,674
Revolving Loans Converted to Term Loans Amortized Cost Basis	30,968		3,187
Financing Receivable, before Allowance for Credit Loss, Total	7,857,701		7,785,693
Current period gross charge-offs:
2024, Current period gross charge-offs			130
2023, Current period gross charge-offs	71		70
2022, Current period gross charge-offs	114		75
2021, Current period gross charge-offs	61		87
2020, Current period gross charge-offs	52		2,668
Prior, Current period gross charge-offs	611		2,952
Total, Current period gross charge-offs	$ 909		$ 5,982

Derivative Financial Instruments

3 Months Ended

Mar. 31, 2024

Derivative Financial Instruments

Derivative Financial Instruments

11. 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 and collars that are designated as either a fair value hedge or a cash flow hedge. The derivatives are recognized on the unaudited interim 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 the notional amounts and fair values of derivatives held by the Company as of March 31, 2024 and December 31, 2023:


	March 31, 2024						December 31, 2023
			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	$	266,563	$	10,234	$	(58)	$	267,500	$	10,861	$	(1,799)
Interest rate collars		200,000		47		(43)		200,000		703		—
Derivatives not designated as hedging instruments:
Interest rate swaps		2,708,933		2,740		(4,645)		2,753,801		1,204		(521)
Visa derivative		114,190		—		(2,300)		107,548		—		(2,300)
Foreign exchange contracts		800		—		—		66		—		—

(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. As of March 31, 2024 and December 31, 2023, the amount of initial margin cash collateral posted by the Company was $1.2 million and $0.6 million, respectively. As of March 31, 2024 and December 31, 2023, the variation margin was $1.9 million and $0.7 million, respectively.

As of March 31, 2024, the Company pledged $1.2 million in cash and received $35.0 million in cash as collateral for interest rate swaps. As of December 31, 2023, the Company pledged $0.6 million in cash and received $27.1 million in cash as collateral for interest rate swaps. As of March 31, 2024 and December 31, 2023, 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.

As of March 31, 2024 and December 31, 2023, the Company received $53.3 million and $40.9 million, respectively, in securities collateral for interest rate swaps, which is held in a custodial account and is not recorded on the Company’s unaudited interim consolidated balance sheets.

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 March 31, 2024 and December 31, 2023, the Company carried one interest rate swap with a notional amount of $66.6 million and $67.5 million, respectively, which was designated and qualified as a fair value hedge for a commercial and industrial loan. As of March 31, 2024 and December 31, 2023, the interest rate swap had a positive fair value of $10.2 million and $10.9 million, respectively. The swap matures in 2041. The Company received a USD Federal Funds floating rate and paid a fixed rate of 2.07%.

The following table shows the gains and losses recognized in income related to derivatives in fair value hedging relationships for the three months ended March 31, 2024 and 2023:


	Gains (losses) recognized in	Three Months Ended
	the consolidated statements	March 31,
(dollars in thousands)	of income line item	2024		2023
Gains (losses) on fair value hedging relationships recognized in interest income:
Recognized on interest rate swap	Loans and lease financing	$	(627)	$	1,189
Recognized on hedged item	Loans and lease financing		619		(1,284)

As of March 31, 2024 and December 31, 2023, the following amounts were recorded in the unaudited interim 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)

March 31, 2024

December 31, 2023

March 31, 2024

December 31, 2023

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

Loans and leases

56,273

56,592

(10,289)

(10,908)

Cash Flow Hedges

The Company utilized interest rate swaps to reduce asset sensitivity and enhance current yields associated with interest payments received on a pool of floating-rate loans. The Company entered into interest rate swaps paying floating rates and receiving fixed rates. The floating-rate index (Bloomberg Short-Term Bank Yield Index, or “BSBY”) corresponded to the floating-rate nature of the interest receipts being hedged (based on USD Prime). The swaps provided an initial benefit to interest income as the Company received the higher fixed rate, which persisted while the floating rate remained below the swap’s fixed rate. By hedging with interest rate swaps, the Company minimized the adverse impact on interest income previously associated with a low interest rate environment on floating-rate loans.

As of March 31, 2024 and December 31, 2023, the Company carried two interest rate swaps with notional amounts totaling $200.0 million, with a negative fair value totaling $0.1 million and $1.8 million, respectively. The swaps matured in April 2024. The Company received fixed rates ranging from 1.70% to 2.08% and paid 1-month BSBY.

The Company also utilized interest rate collars to manage interest rate risk and protect against downside risk in yields associated with interest payments received on a pool of floating-rate assets. The floating-rate index of the collars (Secured Overnight Financing Rate, or “SOFR”) corresponds to the floating-rate nature of the interest receipts being hedged (based on SOFR). Interest rate collars involve the payments of variable-rate amounts if the collar index exceeds the cap strike rate on the contract and receipts of variable-rate amounts if the collar index falls below the floor strike rate on the contract. No payments are required if the collar index falls between the cap and floor rates. By hedging with interest rate collars, the Company mitigates the adverse impact on interest income associated with possible future decreases in interest rates.

As of March 31, 2024 and December 31, 2023, the Company carried two interest rate collars with notional amounts totaling $200.0 million. As of March 31, 2024, these interest rate collars had a positive fair value of nil and a negative fair value of nil. As of December 31, 2023, these interest rate collars had a positive fair value of $0.7 million. The collars mature in 2025 and 2027. The interest rate collars had a floor strike rate of 2.00% and cap strike rates ranging from 5.31% to 5.64%.

The interest rate swaps and collars are designated and qualify as cash flow hedges. To the extent that the hedge is considered highly effective, the gain or loss on the interest rate swaps and collars is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period that the hedged transaction affects earnings.

The following table summarizes the effect of cash flow hedging relationships for the three months ended March 31, 2024 and 2023:


	Three Months Ended
	March 31,
(dollars in thousands)	2024		2023
Pretax net losses recognized in other comprehensive income on cash flow derivative hedges	$	(713)	$	(442)
Pretax net losses reclassified from accumulated other comprehensive income to interest income from loans and lease financing		1,755		1,303

The estimated net amount to be reclassified within the next 12 months out of accumulated other comprehensive income (loss) into earnings is nil as a decrease to interest income from loans and lease financing. As of March 31, 2024, the maximum length of time over which forecasted transactions are hedged is approximately four years.

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 unaudited interim consolidated statements of income for the three months ended March 31, 2024 and 2023:


	Net losses recognized	Three Months Ended
	in the consolidated statements	March 31,
(dollars in thousands)	of income line item	2024		2023
Derivatives Not Designated As Hedging Instruments:
Interest rate swaps	Other noninterest income	$	(7)	$	(378)
Visa derivative	Other noninterest income		(1,476)		(1,963)

As of March 31, 2024, the Company carried multiple interest rate swaps with notional amounts totaling $2.7 billion, all of which were related to the Company’s customer swap program, with a positive fair value of $2.7 million and a negative fair value of $4.6 million. The Company received floating rates ranging from 1.89% to 8.33% and paid fixed rates ranging from 2.39% to 5.98%. The swaps mature between April 2024 and October 2043. As of December 31, 2023, 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 $1.2 million and a negative fair value of $0.5 million. The Company received floating rates ranging from 5.84% to 8.34% and paid fixed rates ranging from 2.39% to 5.98%. These swaps resulted in net interest expense of nil during both the three months ended March 31, 2024 and 2023.

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 nil and $0.1 million for the three months ended March 31, 2024 and 2023, respectively.

Visa Class B Restricted Shares

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 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. During 2018 through 2023, Visa funded its litigation escrow account, thereby reducing each member bank’s Class B conversion rate to unrestricted Class A common shares from 1.6483 to the current conversion rate of 1.5875. 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. A derivative liability (“Visa derivative”) of $2.3 million was included in the unaudited interim consolidated balance sheets at both March 31, 2024 and December 31, 2023, to provide for the fair value of this liability. There were no sales of these shares prior to 2016. See “Note 16. Fair Value” 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 $0.3 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 nil were recognized during both the three months ended March 31, 2024 and 2023.

Credit-Risk Related Contingent Features

Certain of the Company’s 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. The aggregate fair value of all derivative instruments with such credit-risk related contingent features that are in a net liability position was nil at both March 31, 2024 and December 31, 2023, for which the Company posted nil in collateral in the normal course of business. If the Company’s credit rating had been downgraded as of March 31, 2024 and December 31, 2023, the Company may have been required to settle the contracts in an amount equal to their fair value.

Derivative Financial Instruments - Derivatives Not Designated as Hedges (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Impact on pretax earnings of derivatives not designated as hedges
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Noninterest Income, Other Operating Income	Noninterest Income, Other Operating Income
Interest rate swaps
Impact on pretax earnings of derivatives not designated as hedges
Net Gains (Losses) on Derivatives Not Designated As Hedging Instruments	$ (7)	$ (378)
Visa Derivative
Impact on pretax earnings of derivatives not designated as hedges
Net Gains (Losses) on Derivatives Not Designated As Hedging Instruments	$ (1,476)	$ (1,963)

Allowance for Credit Losses - Past-Due Status (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financing Receivable, Recorded Investment, Past Due
Loans and leases	$ 14,320,208	$ 14,353,497
Loans and Leases Past Due 90 Days or More and Still Accruing Interest	3,620	3,496
30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	22,172	62,245
60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	6,671	6,541
90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	15,388	12,736
Total Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	44,231	81,522
Current
Financing Receivable, Recorded Investment, Past Due
Loans and leases	14,275,977	14,271,975
Commercial and Industrial
Financing Receivable, Recorded Investment, Past Due
Loans and leases	2,189,875	2,165,349
Loans and Leases Past Due 90 Days or More and Still Accruing Interest	529	494
Commercial and Industrial \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	1,713	2,611
Commercial and Industrial \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	162	349
Commercial and Industrial \| 90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	1,470	1,464
Commercial and Industrial \| Total Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	3,345	4,424
Commercial and Industrial \| Current
Financing Receivable, Recorded Investment, Past Due
Loans and leases	2,186,530	2,160,925
Commercial Real Estate
Financing Receivable, Recorded Investment, Past Due
Loans and leases	4,301,300	4,340,243
Loans and Leases Past Due 90 Days or More and Still Accruing Interest		300
Commercial Real Estate \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases		196
Commercial Real Estate \| 90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	2,953	300
Commercial Real Estate \| Total Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	2,953	496
Commercial Real Estate \| Current
Financing Receivable, Recorded Investment, Past Due
Loans and leases	4,298,347	4,339,747
Construction
Financing Receivable, Recorded Investment, Past Due
Loans and leases	972,517	900,292
Loans and Leases Past Due 90 Days or More and Still Accruing Interest	606
Construction \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases		25,191
Construction \| 90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	606
Construction \| Total Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	606	25,191
Construction \| Current
Financing Receivable, Recorded Investment, Past Due
Loans and leases	971,911	875,101
Lease financing
Financing Receivable, Recorded Investment, Past Due
Loans and leases	394,009	379,809
Lease financing \| Current
Financing Receivable, Recorded Investment, Past Due
Loans and leases	394,009	379,809
Residential mortgage
Financing Receivable, Recorded Investment, Past Due
Loans and leases	5,408,280
Consumer
Financing Receivable, Recorded Investment, Past Due
Loans and leases	1,054,227	1,109,901
Loans and Leases Past Due 90 Days or More and Still Accruing Interest	2,126	2,702
Consumer \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	15,606	23,259
Consumer \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	2,873	3,897
Consumer \| 90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	2,126	2,702
Consumer \| Total Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	20,605	29,858
Consumer \| Current
Financing Receivable, Recorded Investment, Past Due
Loans and leases	1,033,622	1,080,043
Residential Lending: Residential Mortgage
Financing Receivable, Recorded Investment, Past Due
Loans and leases	4,242,502	4,283,315
Residential Lending: Residential Mortgage \| Residential mortgage
Financing Receivable, Recorded Investment, Past Due
Loans and leases	4,242,502	4,283,315
Loans and Leases Past Due 90 Days or More and Still Accruing Interest	359
Residential Lending: Residential Mortgage \| Residential mortgage \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	1,857	5,244
Residential Lending: Residential Mortgage \| Residential mortgage \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	2,742	1,475
Residential Lending: Residential Mortgage \| Residential mortgage \| 90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	5,406	4,720
Residential Lending: Residential Mortgage \| Residential mortgage \| Total Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	10,005	11,439
Residential Lending: Residential Mortgage \| Residential mortgage \| Current
Financing Receivable, Recorded Investment, Past Due
Loans and leases	4,232,497	4,271,876
Residential Lending: Home Equity Line
Financing Receivable, Recorded Investment, Past Due
Loans and leases	1,165,778	1,174,588
Residential Lending: Home Equity Line \| Home equity Line
Financing Receivable, Recorded Investment, Past Due
Loans and leases	1,165,778	1,174,588
Residential Lending: Home Equity Line \| Home equity Line \| 30 - 59 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	2,996	5,940
Residential Lending: Home Equity Line \| Home equity Line \| 60 - 89 Days Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	894	624
Residential Lending: Home Equity Line \| Home equity Line \| 90 Days or Greater Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	2,827	3,550
Residential Lending: Home Equity Line \| Home equity Line \| Total Past Due
Financing Receivable, Recorded Investment, Past Due
Loans and leases	6,717	10,114
Residential Lending: Home Equity Line \| Home equity Line \| Current
Financing Receivable, Recorded Investment, Past Due
Loans and leases	$ 1,159,061	$ 1,164,474

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings per Share
Adjustments to net income (in dollars)	$ 0	$ 0
Antidilutive securities (in shares)	115,000	221,000
Numerator:
Net income	$ 54,220	$ 66,818
Denominator:
Basic: weighted-average shares outstanding (in shares)	127,707,354	127,453,820
Add: weighted-average equity-based awards (in shares)	510,335	579,992
Diluted: weighted-average shares outstanding (in shares)	128,217,689	128,033,812
Basic earnings per share	$ 0.42	$ 0.52
Diluted earnings per share	$ 0.42	$ 0.52

Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2024

Organization and Basis of Presentation.

Organization and Basis of Presentation

1. Organization and 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”), its only direct, wholly owned subsidiary. FHB offers a comprehensive suite of banking services, including loans, deposit products, wealth management, insurance, trust, retirement planning, credit card and merchant processing services, to consumer and commercial customers.

The accompanying unaudited interim consolidated financial statements of First Hawaiian, Inc. and Subsidiary (the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.

The accompanying unaudited interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair presentation of the interim period consolidated financial information, have been made. Results of operations for interim periods are not necessarily indicative of results to be expected for the entire year. Intercompany account balances and transactions have been eliminated in consolidation.

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.

Accounting Standards Adopted in 2024

In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-01, Leases (Topic 842), Common Control Arrangements. This update clarifies the accounting for leasehold improvements associated with common control leases. Prior to this update, Topic 842 generally required leasehold improvements to have an amortization period consistent with the shorter of the useful life of those improvements or the remaining lease term. This update will require leasehold improvements associated with common control leases to be (1) amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset (the leased asset) through a lease, and (2) accounted for as a transfer between entities under common control through an adjustment to equity if, and when, the lessee no longer controls the use of the underlying asset. In addition, this update also subjects leasehold improvements to the impairment guidance in Topic 360, Property, Plant, and Equipment. The Company adopted the provisions of ASU No. 2023-01 on January 1, 2024, and it did not have a material impact on the Company’s consolidated financial statements.

In March 2023, the FASB issued ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323), Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. This update expands the population of tax equity investments for which a reporting entity may elect to apply the proportional amortization method (“PAM”). Under legacy guidance, an entity can only elect to apply the PAM to investments in low-income housing tax credit (“LIHTC”) structures. This update permits an entity to make an election to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the PAM if certain conditions are met. An accounting policy election is made to apply the PAM on a tax credit program-by-program basis rather than electing to apply the PAM at the reporting entity level or to individual investments. By applying the PAM, a reporting entity must account for the receipt of the investment tax credits using the flow-through method under Topic 740, Income Taxes, even if the entity applies the deferral method for other investment tax credits received. For all tax equity investments accounted for using the PAM, this update also requires the use of the delayed equity contribution guidance. LIHTC investments not accounted for using the PAM will no longer be permitted to use the delayed equity contribution guidance. In addition, LIHTC investments accounted for using the equity method must apply the impairment guidance in Subtopic 323-10, Investments—Equity Method and Joint Ventures—Overall. Further, LIHTC investments that are not accounted for using the PAM or the equity method must use the guidance in Topic 321, Investments—Equity Securities, when accounting for equity investments. In addition, the amendments in this update require specific disclosures that must be applied to all investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the PAM, including investments within that elected program that do not meet the conditions to apply the PAM. Such disclosures include the nature of its tax equity investments and the effect of such investments and related income tax credits and other income tax benefits on its financial position and results of operations. The Company adopted the provisions of ASU No. 2023-02 on January 1, 2024, and it did not have a material impact on the Company’s consolidated financial statements. See “Note 5. Other Assets” for required disclosures related to this new guidance.

Recent Accounting Pronouncements

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

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. This update improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments will require public entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within segment profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity’s CODM. In addition, the amendments clarify circumstances in which an entity can disclose multiple measures of segment profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and expand interim disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. The amendments are effective for the Company’s annual periods beginning January 1, 2024 and interim periods beginning January 1, 2025, with early adoption permitted, and requires retrospective application to all prior periods presented in the financial statements. The Company is in the process of evaluating the impact that this new guidance may have on the Company’s consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. This update includes amendments that further enhance the transparency and decision usefulness of income tax disclosures, primarily through standardizing and disaggregating rate reconciliation categories and income taxes paid by jurisdiction. This update is effective for the Company’s annual periods beginning January 1, 2025. Early adoption is permitted. The Company is in the process of evaluating the impact that this new guidance may have on the Company’s consolidated financial statements.

Loans and Leases (Tables)

3 Months Ended

Mar. 31, 2024

Loans and Leases

Schedule of components of loans and leases


	March 31,		December 31,
(dollars in thousands)	2024		2023
Commercial and industrial	$	2,189,875	$	2,165,349
Commercial real estate		4,301,300		4,340,243
Construction		972,517		900,292
Residential:
Residential mortgage		4,242,502		4,283,315
Home equity line		1,165,778		1,174,588
Total residential		5,408,280		5,457,903
Consumer		1,054,227		1,109,901
Lease financing		394,009		379,809
Total loans and leases	$	14,320,208	$	14,353,497

Regulatory Capital Requirements

3 Months Ended

Mar. 31, 2024

Regulatory Capital Requirements

Regulatory Capital Requirements

10. 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 table below sets forth those ratios at March 31, 2024 and December 31, 2023:


					First Hawaiian				Minimum		Well-
	First Hawaiian, Inc.				Bank				Capital		Capitalized
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Ratio⁽¹⁾		Ratio⁽¹⁾
March 31, 2024:
Common equity tier 1 capital to risk-weighted assets	$	2,040,871	12.55	%	$	2,029,029	12.48	%	4.50	%	6.50	%
Tier 1 capital to risk-weighted assets		2,040,871	12.55	%		2,029,029	12.48	%	6.00	%	8.00	%
Total capital to risk-weighted assets		2,235,520	13.75	%		2,223,678	13.67	%	8.00	%	10.00	%
Tier 1 capital to average assets (leverage ratio)		2,040,871	8.80	%		2,029,029	8.75	%	4.00	%	5.00	%

December 31, 2023:
Common equity tier 1 capital to risk-weighted assets	$	2,020,784	12.39	%	$	2,006,393	12.30	%	4.50	%	6.50	%
Tier 1 capital to risk-weighted assets		2,020,784	12.39	%		2,006,393	12.30	%	6.00	%	8.00	%
Total capital to risk-weighted assets		2,212,922	13.57	%		2,198,531	13.48	%	8.00	%	10.00	%
Tier 1 capital to average assets (leverage ratio)		2,020,784	8.64	%		2,006,393	8.57	%	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 Federal Deposit Insurance Corporation (“FDIC”).

Federal regulations require a 2.5% capital conservation buffer designed to absorb losses during periods of economic stress. The capital conservation buffer is composed entirely of CET1, on top of these minimum risk weighted asset ratios, effectively resulting in minimum ratios of (i) 7% CET1 to risk-weighted assets, (ii) 8.5% Tier 1 capital to risk-weighted assets, and (iii) 10.5% total capital to risk-weighted assets. As of March 31, 2024, 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 March 31, 2024, 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 + Details

Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2024

Revenue from Contracts with Customers

Summary of revenues disaggregated by type of service and business segments

Three Months Ended March 31, 2024

Treasury

Retail

Commercial

and

(dollars in thousands)

Banking

Other

Total

Net interest income (expense)⁽¹⁾

128,057

45,381

(19,011)

154,427

Service charges on deposit accounts

6,675

824

7,546

Credit and debit card fees

—

14,592

1,006

15,598

Other service charges and fees

6,938

398

570

7,906

Trust and investment services income

10,354

—

10,354

Other

220

1,148

2,640

4,008

Not in scope of Topic 606⁽¹⁾

1,848

996

3,115

5,959

Total noninterest income

26,035

17,958

7,378

51,371

Total revenue

154,092

63,339

(11,633)

205,798

(1)

Most of the Company’s revenue is not within the scope of ASU No. 2014-09, Revenue from Contracts with Customers. The guidance explicitly excludes net interest income from financial assets and liabilities as well as other noninterest income from loans, leases, investment securities, derivative financial instruments and bank-owned life insurance.


		Three Months Ended March 31, 2023
					Treasury
	Retail		Commercial		and
(dollars in thousands)	Banking		Banking		Other		Total
Net interest income⁽¹⁾	$	108,920	$	40,939	$	17,388	$	167,247

Service charges on deposit accounts		6,541		626		64		7,231
Credit and debit card fees		—		14,414		1,296		15,710
Other service charges and fees		6,171		420		513		7,104
Trust and investment services income		9,614		—		—		9,614
Other		239		1,317		1,649		3,205
Not in scope of Topic 606⁽¹⁾		1,702		1,111		3,346		6,159
Total noninterest income		24,267		17,888		6,868		49,023
Total revenue	$	133,187	$	58,827	$	24,256	$	216,270

(1)

Most of the Company’s revenue is not within the scope of ASU No. 2014-09, Revenue from Contracts with Customers. The guidance explicitly excludes net interest income from financial assets and liabilities as well as other noninterest income from loans, leases, investment securities, derivative financial instruments and bank-owned life insurance.

Fair Value - Significant Unobservable Inputs Used in Fair Value Measurements (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2024 USD ($) M	Dec. 31, 2023 USD ($) M
Fair Value, Measurements, Nonrecurring
Fair value
Assets, Fair value		$ 0
Fair Value, Measurements, Nonrecurring \| Fair Value, Inputs, Level 3 [Member] \| Collateral-dependent loans
Fair value
Assets, Fair value	$ 14,623,000
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3 [Member] \| Collateral-dependent loans
Fair value
Assets, Fair value	$ 14,623,000
Servicing Asset, Valuation Technique [Extensible Enumeration]	us-gaap:CostApproachValuationTechniqueMember
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3 [Member] \| Collateral-dependent loans \| Appraisal Value \| Minimum
Fair value
Measurement input	0
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3 [Member] \| Collateral-dependent loans \| Appraisal Value \| Maximum
Fair value
Measurement input	0.50
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3 [Member] \| Visa derivative
Fair value
Liabilities, Fair value	$ (2,300,000)	$ (2,300,000)
Derivative Liability, Valuation Technique [Extensible Enumeration]	Discounted cash flow	Discounted cash flow
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3 [Member] \| Visa derivative \| Expected Conversation Rate \| Discounted cash flow \| Weighted Average
Fair value
Measurement input	0.015875	0.015875
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3 [Member] \| Visa derivative \| Expected Conversation Rate \| Discounted cash flow \| Minimum
Fair value
Measurement input	0.015289	0.015289
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3 [Member] \| Visa derivative \| Expected Conversation Rate \| Discounted cash flow \| Maximum
Fair value
Measurement input	0.015875	0.015875
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3 [Member] \| Visa derivative \| Expected Term (in months or years) \| Discounted cash flow \| Weighted Average
Fair value
Measurement input \| M	6	5
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3 [Member] \| Visa derivative \| Growth Rate (percentage) \| Discounted cash flow \| Weighted Average
Fair value
Growth Rate (as a percent)	9.00%	10.00%
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3 [Member] \| Visa derivative \| Growth Rate (percentage) \| Discounted cash flow \| Minimum
Fair value
Growth Rate (as a percent)	(7.00%)	(6.00%)
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3 [Member] \| Visa derivative \| Growth Rate (percentage) \| Discounted cash flow \| Maximum
Fair value
Growth Rate (as a percent)	22.00%	25.00%

Fair Value - Unfunded Loan and Lease Commitments and Letters of Credit (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Unfunded loan and lease commitments and letters of credit
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit	$ 6,500.0	$ 6,500.0
Fair Value, Inputs, Level 3 [Member]
Unfunded loan and lease commitments and letters of credit
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit	6,500.0	6,500.0
Estimated fair value of unfunded loan and lease commitments and letters of credit	$ 48.3	$ 49.8

Fair Value - Visa Derivative (Details) - Visa Derivative $ in Millions	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2017
Class B restricted shares
Fair value
Conversion rate	1.5875		1.6483
Fair Value, Measurements, Recurring \| Fair Value, Inputs, Level 3 [Member]
Fair value
Derivative liability	$ 2.3	$ 2.3

- Definition

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset. Includes liabilities not subject to a master netting arrangement and not elected to be offset.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(4)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(1)
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-URI https://asc.fasb.org//1943274/2147480524/946-210-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147480524/946-210-50-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480524/946-210-50-6

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.6-04(9)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 320
-Name Accounting Standards Codification
-Section S99
-Paragraph 5C
-Subparagraph (SX 210.12-13C(Column H)(Footnote 7))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480032/946-320-S99-5C

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(9)(b))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-1

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Paragraph 1
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147483444/210-20-55-10

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-10

+ Details

Transfers of Financial Assets - Carrying Amounts of Assets Pledged as Collateral, Borrowings and Other Transactions (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Financial Instruments Owned and Pledged as Collateral [Line Items]
In-substance debt defeasance	$ 0	$ 0
Carrying amounts of the assets pledged as collateral
Securities for reverse repurchase agreements	0	0
Asset Pledged as Collateral
Financial Instruments Owned and Pledged as Collateral [Line Items]
Assets pledged as collateral	11,027,608	11,278,394
Public deposits \| Asset Pledged as Collateral with Right
Financial Instruments Owned and Pledged as Collateral [Line Items]
Assets pledged as collateral	1,946,863	2,571,359
Federal Home Loan Bank Advances \| Asset Pledged as Collateral
Financial Instruments Owned and Pledged as Collateral [Line Items]
Assets pledged as collateral	5,000,994	4,495,266
Federal Reserve Bank Advances \| Asset Pledged as Collateral
Financial Instruments Owned and Pledged as Collateral [Line Items]
Assets pledged as collateral	3,943,124	4,074,093
ACH transactions \| Asset Pledged as Collateral without Right
Financial Instruments Owned and Pledged as Collateral [Line Items]
Assets pledged as collateral	135,443	137,101
Interest rate swaps \| Asset Pledged as Collateral without Right
Financial Instruments Owned and Pledged as Collateral [Line Items]
Assets pledged as collateral	$ 1,184	$ 575

Derivative Financial Instruments - Clearinghouse Margin and Collateral (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Derivative contracts
Initial margin cash collateral posted	$ 1.2	$ 0.6
Interest rate swaps
Derivative contracts
Cash pledged as collateral	1.2	0.6
Received cash as collateral	35.0	27.1
Securities received as collateral	53.3	40.9
Chicago Mercantile Exchange (CME) and London Clearing House (LCH)
Derivative contracts
Variation margin	$ 1.9	$ 0.7

Commitments and Contingent Liabilities - Commitments to Extend Credit, Participations Sold (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Commitments to extend credit
Commitments and Contingent Liabilities
Participations sold to other institutions	$ 48.8	$ 61.8
Standby letters of credit
Commitments and Contingent Liabilities
Participations sold to other institutions	$ 6.3	$ 6.8

Investment Securities - Unrealized Gross Losses and Fair Values of Securities in a Continuous Loss Position (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024 USD ($) security shares	Dec. 31, 2023 USD ($) security shares	Dec. 31, 2016 shares
Securities in the available-for-sale portfolio in a continuous loss position
Number of individual securities in a continuous loss position \| security	204	222
Time in Continuous Loss, Unrealized Losses
Less Than 12 Months Unrealized Losses	$ (8)	$ (564)
12 Months or More Unrealized Losses	(307,288)	(302,818)
Total Unrealized Losses	(307,296)	(303,382)
Time in Continuous Loss, Fair Value
Less Than 12 Months, Fair Value	8,492	63,667
12 Months or More Fair Value	1,996,581	2,170,608
Total Fair Value	2,005,073	2,234,275
Allowance for credit losses, investment securities	$ 0	$ 0
Investment securities comprised of collateralized loan obligations rated AA or better and obligations issued by local state and political subdivisions rated AA or better	5.00%	5.00%
Class B restricted shares
Time in Continuous Loss, Fair Value
Net realized gain		$ 40,800
Shares held \| shares	0	0
Number of shares sold \| shares		120,000
Class B restricted shares \| Visa
Time in Continuous Loss, Fair Value
Number of shares sold \| shares			274,000
U.S. Treasury and government agency debt securities
Time in Continuous Loss, Unrealized Losses
12 Months or More Unrealized Losses	$ (433)	$ (666)
Total Unrealized Losses	(433)	(666)
Time in Continuous Loss, Fair Value
12 Months or More Fair Value	12,821	32,503
Total Fair Value	12,821	32,503
Government-sponsored enterprises debt securities
Time in Continuous Loss, Unrealized Losses
12 Months or More Unrealized Losses	(371)	(408)
Total Unrealized Losses	(371)	(408)
Time in Continuous Loss, Fair Value
12 Months or More Fair Value	19,629	19,592
Total Fair Value	19,629	19,592
Residential - Government-sponsored enterprises
Time in Continuous Loss, Unrealized Losses
12 Months or More Unrealized Losses	(114,648)	(112,124)
Total Unrealized Losses	(114,648)	(112,124)
Time in Continuous Loss, Fair Value
12 Months or More Fair Value	753,385	783,297
Total Fair Value	753,385	783,297
Residential - Government agency
Time in Continuous Loss, Unrealized Losses
12 Months or More Unrealized Losses	(1,350)	(1,121)
Total Unrealized Losses	(1,350)	(1,121)
Time in Continuous Loss, Fair Value
12 Months or More Fair Value	9,609	10,182
Total Fair Value	9,609	10,182
Commercial - Government agency
Time in Continuous Loss, Unrealized Losses
12 Months or More Unrealized Losses	(51,297)	(50,270)
Total Unrealized Losses	(51,297)	(50,270)
Time in Continuous Loss, Fair Value
12 Months or More Fair Value	213,394	218,674
Total Fair Value	213,394	218,674
Commercial - Government-sponsored enterprises
Time in Continuous Loss, Unrealized Losses
12 Months or More Unrealized Losses	(6,951)	(7,028)
Total Unrealized Losses	(6,951)	(7,028)
Time in Continuous Loss, Fair Value
12 Months or More Fair Value	83,490	86,431
Total Fair Value	83,490	86,431
Commercial - Non -agency
Time in Continuous Loss, Unrealized Losses
12 Months or More Unrealized Losses		(281)
Total Unrealized Losses		(281)
Time in Continuous Loss, Fair Value
12 Months or More Fair Value		21,683
Total Fair Value		21,683
Government agency
Time in Continuous Loss, Unrealized Losses
12 Months or More Unrealized Losses	(70,997)	(67,568)
Total Unrealized Losses	(70,997)	(67,568)
Time in Continuous Loss, Fair Value
12 Months or More Fair Value	452,163	471,150
Total Fair Value	452,163	471,150
Government-sponsored enterprises
Time in Continuous Loss, Unrealized Losses
12 Months or More Unrealized Losses	(60,670)	(61,856)
Total Unrealized Losses	(60,670)	(61,856)
Time in Continuous Loss, Fair Value
12 Months or More Fair Value	353,061	363,970
Total Fair Value	353,061	363,970
Collateralized Loan Obligations
Time in Continuous Loss, Unrealized Losses
Less Than 12 Months Unrealized Losses	(8)	(564)
12 Months or More Unrealized Losses	(571)	(1,496)
Total Unrealized Losses	(579)	(2,060)
Time in Continuous Loss, Fair Value
Less Than 12 Months, Fair Value	8,492	63,667
12 Months or More Fair Value	99,029	163,126
Total Fair Value	$ 107,521	$ 226,793

Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2024

Earnings per Share

Schedule of computations of basic and diluted earnings per share


	Three Months Ended March 31,
(dollars in thousands, except shares and per share amounts)	2024		2023
Numerator:
Net income	$	54,220	$	66,818

Denominator:
Basic: weighted-average shares outstanding		127,707,354		127,453,820
Add: weighted-average equity-based awards		510,335		579,992
Diluted: weighted-average shares outstanding		128,217,689		128,033,812

Basic earnings per share	$	0.42	$	0.52
Diluted earnings per share	$	0.42	$	0.52

Deposits (Tables)

3 Months Ended

Mar. 31, 2024

Deposits

Schedule of deposits by category


(dollars in thousands)	March 31, 2024		December 31, 2023
U.S.:
Interest-bearing	$	12,451,100	$	12,731,915
Noninterest-bearing		6,212,216		6,609,483
Foreign:
Interest-bearing		1,169,828		1,017,180
Noninterest-bearing		836,337		974,079
Total deposits	$	20,669,481	$	21,332,657

Schedule of maturity distribution of time certificates of deposit

The following table presents the maturity distribution of time certificates of deposit as of March 31, 2024:


	Under		$250,000
(dollars in thousands)	$250,000		or More		Total
Three months or less	$	375,094	$	513,230	$	888,324
Over three through six months		742,247		472,846		1,215,093
Over six through twelve months		588,338		445,817		1,034,155
One to two years		54,414		12,867		67,281
Two to three years		28,830		2,448		31,278
Three to four years		22,977		6,826		29,803
Four to five years		17,156		571		17,727
Thereafter		384		—		384
Total	$	1,829,440	$	1,454,605	$	3,284,045

Derivative Financial Instruments - Counterparty Credit Risk and Credit-Risk Related Contingent Features (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Derivative contracts
Counterparty credit risk adjustments	$ 0	$ 0
Credit-risk-related contingent features
Aggregate fair value of derivative instruments in a net liability position	0		$ 0
Collateral posted for derivatives in a net liability position	0		$ 0
Interest rate swaps
Derivative contracts
Collateral thresholds for derivative agreements with credit risk related contingent features	$ 300,000

Reportable Operating Segments - Selected Business Segment Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Selected business segment financial information
Net interest income (expense)	$ 154,427	$ 167,247
Benefit (provision) for credit losses	(6,300)	(8,800)
Net interest income (expense) after (provision) benefit for credit losses	148,127	158,447
Noninterest income	51,371	49,023
Noninterest expense	(128,813)	(118,567)
Income before provision for income taxes	70,685	88,903
(Provision) benefit for income taxes	(16,465)	(22,085)
Net income	54,220	66,818
Retail Banking
Selected business segment financial information
Net interest income (expense)	128,057	108,920
Benefit (provision) for credit losses	(3,379)	(2,563)
Net interest income (expense) after (provision) benefit for credit losses	124,678	106,357
Noninterest income	26,035	24,267
Noninterest expense	(76,640)	(75,843)
Income before provision for income taxes	74,073	54,781
(Provision) benefit for income taxes	(17,928)	(13,266)
Net income	56,145	41,515
Commercial Banking
Selected business segment financial information
Net interest income (expense)	45,381	40,939
Benefit (provision) for credit losses	(3,713)	(3,873)
Net interest income (expense) after (provision) benefit for credit losses	41,668	37,066
Noninterest income	17,958	17,888
Noninterest expense	(25,685)	(27,770)
Income before provision for income taxes	33,941	27,184
(Provision) benefit for income taxes	(7,273)	(6,330)
Net income	26,668	20,854
Treasury and Other
Selected business segment financial information
Net interest income (expense)	(19,011)	17,388
Benefit (provision) for credit losses	792	(2,364)
Net interest income (expense) after (provision) benefit for credit losses	(18,219)	15,024
Noninterest income	7,378	6,868
Noninterest expense	(26,488)	(14,954)
Income before provision for income taxes	(37,329)	6,938
(Provision) benefit for income taxes	8,736	(2,489)
Net income	$ (28,593)	$ 4,449

Revenue from Contracts with Customers - Contract Balances (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($) item
Revenue from Contracts with Customers
Signing bonuses received from vendors, in prior years \| item			2
Contract liabilities	$ 1,800,000		$ 1,900,000
Increase in recognized revenues and contract liabilities	200,000	$ 200,000
Change in contract liabilities due to changes in transaction price estimates	0	$ 0
Receivables from contracts with customers or contract assets	$ 0		$ 0

Organization and Basis of Presentation (Policies)	3 Months Ended
Organization and Basis of Presentation (Policies)	Mar. 31, 2024
Organization and Basis of Presentation
Organization and 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”), its only direct, wholly owned subsidiary. FHB offers a comprehensive suite of banking services, including loans, deposit products, wealth management, insurance, trust, retirement planning, credit card and merchant processing services, to consumer and commercial customers. The accompanying unaudited interim consolidated financial statements of First Hawaiian, Inc. and Subsidiary (the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The accompanying unaudited interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair presentation of the interim period consolidated financial information, have been made. Results of operations for interim periods are not necessarily indicative of results to be expected for the entire year. Intercompany account balances and transactions have been eliminated in consolidation.
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.
Accounting Standards Adopted in 2024	Accounting Standards Adopted in 2024 In March 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-01, Leases (Topic 842), Common Control Arrangements. This update clarifies the accounting for leasehold improvements associated with common control leases. Prior to this update, Topic 842 generally required leasehold improvements to have an amortization period consistent with the shorter of the useful life of those improvements or the remaining lease term. This update will require leasehold improvements associated with common control leases to be (1) amortized by the lessee over the useful life of the leasehold improvements to the common control group (regardless of the lease term) as long as the lessee controls the use of the underlying asset (the leased asset) through a lease, and (2) accounted for as a transfer between entities under common control through an adjustment to equity if, and when, the lessee no longer controls the use of the underlying asset. In addition, this update also subjects leasehold improvements to the impairment guidance in Topic 360, Property, Plant, and Equipment. The Company adopted the provisions of ASU No. 2023-01 on January 1, 2024, and it did not have a material impact on the Company’s consolidated financial statements. In March 2023, the FASB issued ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323), Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. This update expands the population of tax equity investments for which a reporting entity may elect to apply the proportional amortization method (“PAM”). Under legacy guidance, an entity can only elect to apply the PAM to investments in low-income housing tax credit (“LIHTC”) structures. This update permits an entity to make an election to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the PAM if certain conditions are met. An accounting policy election is made to apply the PAM on a tax credit program-by-program basis rather than electing to apply the PAM at the reporting entity level or to individual investments. By applying the PAM, a reporting entity must account for the receipt of the investment tax credits using the flow-through method under Topic 740, Income Taxes, even if the entity applies the deferral method for other investment tax credits received. For all tax equity investments accounted for using the PAM, this update also requires the use of the delayed equity contribution guidance. LIHTC investments not accounted for using the PAM will no longer be permitted to use the delayed equity contribution guidance. In addition, LIHTC investments accounted for using the equity method must apply the impairment guidance in Subtopic 323-10, Investments—Equity Method and Joint Ventures—Overall. Further, LIHTC investments that are not accounted for using the PAM or the equity method must use the guidance in Topic 321, Investments—Equity Securities, when accounting for equity investments. In addition, the amendments in this update require specific disclosures that must be applied to all investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the PAM, including investments within that elected program that do not meet the conditions to apply the PAM. Such disclosures include the nature of its tax equity investments and the effect of such investments and related income tax credits and other income tax benefits on its financial position and results of operations. The Company adopted the provisions of ASU No. 2023-02 on January 1, 2024, and it did not have a material impact on the Company’s consolidated financial statements. See “Note 5. Other Assets” for required disclosures related to this new guidance.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The following ASUs have been issued by the FASB and are applicable to the Company in future reporting periods. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. This update improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments will require public entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within segment profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity’s CODM. In addition, the amendments clarify circumstances in which an entity can disclose multiple measures of segment profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and expand interim disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity’s overall performance and assess potential future cash flows. The amendments are effective for the Company’s annual periods beginning January 1, 2024 and interim periods beginning January 1, 2025, with early adoption permitted, and requires retrospective application to all prior periods presented in the financial statements. The Company is in the process of evaluating the impact that this new guidance may have on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures. This update includes amendments that further enhance the transparency and decision usefulness of income tax disclosures, primarily through standardizing and disaggregating rate reconciliation categories and income taxes paid by jurisdiction. This update is effective for the Company’s annual periods beginning January 1, 2025. Early adoption is permitted. The Company is in the process of evaluating the impact that this new guidance may have on the Company’s consolidated financial statements.

Derivative Financial Instruments - Fair Value Hedges and Cash Flow Hedges (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024 USD ($) derivative	Dec. 31, 2023 USD ($) derivative
Other comprehensive income (loss)
Fair hedges carried
Accumulated other comprehensive income (loss) into earnings	$ 0	$ 0
Hedge term	4 years
Derivatives designated as hedging instruments \| Interest rate swaps
Fair hedges carried
Notional amounts	$ 266,563	$ 267,500
Derivatives designated as hedging instruments \| Interest rate swaps \| Fair value hedges
Fair hedges carried
Number of interest rate swaps \| derivative	1	1
Notional amounts	$ 66,600	$ 67,500
Positive fair value	$ 10,200	$ 10,900
Fixed interest rate (as a percent)	2.07%	2.07%
Derivatives designated as hedging instruments \| Interest rate swaps \| Cash Flow Hedges
Fair hedges carried
Number of derivatives carried \| derivative	2	2
Notional amounts	$ 200,000	$ 200,000
Negative fair value	$ 100	$ 1,800
Derivatives designated as hedging instruments \| Interest rate swaps \| Cash Flow Hedges \| Minimum
Fair hedges carried
Fixed interest rate (as a percent)	1.70%	1.70%
Derivatives designated as hedging instruments \| Interest rate swaps \| Cash Flow Hedges \| Maximum
Fair hedges carried
Fixed interest rate (as a percent)	2.08%	2.08%
Derivatives designated as hedging instruments \| Interest Rate Collar [Member]
Fair hedges carried
Notional amounts	$ 200,000	$ 200,000
Derivatives designated as hedging instruments \| Interest Rate Collar [Member] \| Cash Flow Hedges
Fair hedges carried
Number of derivatives carried \| derivative	2	2
Notional amounts	$ 200,000	$ 200,000
Positive fair value	0	$ 700
Negative fair value	$ 0
Floor strike rates	2.00%	2.00%
Derivatives designated as hedging instruments \| Interest Rate Collar [Member] \| Cash Flow Hedges \| Minimum
Fair hedges carried
Cap strike rates	5.31%	5.31%
Derivatives designated as hedging instruments \| Interest Rate Collar [Member] \| Cash Flow Hedges \| Maximum
Fair hedges carried
Cap strike rates	5.64%	5.64%

Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue from Contracts with Customers
Net interest income (expense)	$ 154,427	$ 167,247
Not in scope of Topic 606	5,959	6,159
Total noninterest income	51,371	49,023
Total revenue	205,798	216,270
Retail Banking
Revenue from Contracts with Customers
Net interest income (expense)	128,057	108,920
Not in scope of Topic 606	1,848	1,702
Total noninterest income	26,035	24,267
Total revenue	154,092	133,187
Commercial Banking
Revenue from Contracts with Customers
Net interest income (expense)	45,381	40,939
Not in scope of Topic 606	996	1,111
Total noninterest income	17,958	17,888
Total revenue	63,339	58,827
Treasury and Other
Revenue from Contracts with Customers
Net interest income (expense)	(19,011)	17,388
Not in scope of Topic 606	3,115	3,346
Total noninterest income	7,378	6,868
Total revenue	(11,633)	24,256
Service charges on deposit accounts.
Revenue from Contracts with Customers
Revenue by type of service	7,546	7,231
Service charges on deposit accounts. \| Retail Banking
Revenue from Contracts with Customers
Revenue by type of service	6,675	6,541
Service charges on deposit accounts. \| Commercial Banking
Revenue from Contracts with Customers
Revenue by type of service	824	626
Service charges on deposit accounts. \| Treasury and Other
Revenue from Contracts with Customers
Revenue by type of service	47	64
Credit and debit card fees
Revenue from Contracts with Customers
Revenue by type of service	15,598	15,710
Credit and debit card fees \| Commercial Banking
Revenue from Contracts with Customers
Revenue by type of service	14,592	14,414
Credit and debit card fees \| Treasury and Other
Revenue from Contracts with Customers
Revenue by type of service	1,006	1,296
Other service charges and fees.
Revenue from Contracts with Customers
Revenue by type of service	7,906	7,104
Other service charges and fees. \| Retail Banking
Revenue from Contracts with Customers
Revenue by type of service	6,938	6,171
Other service charges and fees. \| Commercial Banking
Revenue from Contracts with Customers
Revenue by type of service	398	420
Other service charges and fees. \| Treasury and Other
Revenue from Contracts with Customers
Revenue by type of service	570	513
Trust and investment services income
Revenue from Contracts with Customers
Revenue by type of service	10,354	9,614
Trust and investment services income \| Retail Banking
Revenue from Contracts with Customers
Revenue by type of service	10,354	9,614
Other.
Revenue from Contracts with Customers
Revenue by type of service	4,008	3,205
Other. \| Retail Banking
Revenue from Contracts with Customers
Revenue by type of service	220	239
Other. \| Commercial Banking
Revenue from Contracts with Customers
Revenue by type of service	1,148	1,317
Other. \| Treasury and Other
Revenue from Contracts with Customers
Revenue by type of service	$ 2,640	$ 1,649

Short-Term Borrowings - Components and Selected Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Short-term borrowings
Short-term borrowings	$ 500,000		$ 500,000
Federal Reserve Bank Advances [Member]
Short-term borrowings
Borrowing capacity	3,200,000		3,300,000
Federal funds purchased:
Short-term borrowings
Highest month-end balance		$ 150,000
Average outstanding balance		$ 67,056
Weighted-average interest rate paid (as a percent)		4.43%
Short-term FHLB repo advance:
Short-term borrowings
Weighted-average interest rate (as a percent)		5.00%
Highest month-end balance		$ 250,000
Average outstanding balance		$ 52,778
Weighted-average interest rate paid (as a percent)		5.02%
FHLB
Short-term borrowings
Short-term borrowings	500,000		500,000
Borrowing capacity	$ 2,900,000		$ 2,500,000
Weighted-average interest rate (as a percent)	4.71%		4.71%
Highest month-end balance	$ 500,000
Average outstanding balance	$ 500,000
Weighted-average interest rate paid (as a percent)	4.79%

Investment Securities - Pledged Securities and Concentration Narrative (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Concentration of risk
Credit losses recognized on securities	$ 0	$ 0
Asset Pledged as Collateral
Financial Instruments Owned and Pledged as Collateral
Investment securities pledged as collateral	4,300,000,000	5,000,000,000.0
Asset Pledged as Collateral \| Public deposits
Financial Instruments Owned and Pledged as Collateral
Investment securities pledged as collateral	1,900,000,000	2,600,000,000
Asset Pledged as Collateral \| Other financial transactions
Financial Instruments Owned and Pledged as Collateral
Investment securities pledged as collateral	154,000,000.0	183,000,000.0
Borrowing Capacity
Financial Instruments Owned and Pledged as Collateral
Investment securities pledged as collateral	2,200,000,000	2,300,000,000
Non-government issuer
Concentration of risk
Securities of issuers in excess of 10% of stockholders' equity	$ 0	$ 0

Noninterest Income and Noninterest Expense (Tables)

3 Months Ended

Mar. 31, 2024

Noninterest Income and Noninterest Expense

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	2024		2023		2024		2023
Three Months Ended March 31,
Service cost	Salaries and employee benefits	$	—	$	—	$	137	$	147
Interest cost	Other noninterest expense		1,906		2,059		211		220
Expected return on plan assets	Other noninterest expense		(878)		(883)		—		—
Recognized net actuarial loss (gain)	Other noninterest expense		503		719		(322)		(379)
Total net periodic benefit cost		$	1,531	$	1,895	$	26	$	(12)

Fair Value - Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Total available-for-sale securities, Fair value,	$ 2,159,338	$ 2,255,336
Collateralized Loan Obligations
Assets
Total available-for-sale securities, Fair value,	239,676	247,854
Fair Value, Measurements, Recurring
Assets
Total available-for-sale securities, Fair value,	2,159,338	2,255,336
Other assets	13,237	13,285
Liabilities
Other liabilities	(7,046)	(4,620)
Total
Net Assets (Liabilities)	2,165,529	2,264,001
Fair Value, Measurements, Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Other assets	216	517
Total
Net Assets (Liabilities)	216	517
Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Assets
Total available-for-sale securities, Fair value,	2,159,338	2,255,336
Other assets	13,021	12,768
Liabilities
Other liabilities	(4,746)	(2,320)
Total
Net Assets (Liabilities)	2,167,613	2,265,784
Fair Value, Measurements, Recurring \| Significant Unobservable Inputs (Level 3)
Liabilities
Other liabilities	(2,300)	(2,300)
Total
Net Assets (Liabilities)	(2,300)	(2,300)
U.S. Treasury and government agency debt securities
Assets
Total available-for-sale securities, Fair value,	12,821	32,503
U.S. Treasury and government agency debt securities \| Fair Value, Measurements, Recurring
Assets
Total available-for-sale securities, Fair value,	12,821	32,503
U.S. Treasury and government agency debt securities \| Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Assets
Total available-for-sale securities, Fair value,	12,821	32,503
Government-sponsored enterprises debt securities
Assets
Total available-for-sale securities, Fair value,	19,629	19,592
Government-sponsored enterprises debt securities \| Fair Value, Measurements, Recurring
Assets
Total available-for-sale securities, Fair value,	19,629	19,592
Government-sponsored enterprises debt securities \| Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Assets
Total available-for-sale securities, Fair value,	19,629	19,592
Residential - Government agency
Assets
Total available-for-sale securities, Fair value,	9,609	10,182
Residential - Government agency \| Fair Value, Measurements, Recurring
Assets
Total available-for-sale securities, Fair value,	9,609	10,182
Residential - Government agency \| Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Assets
Total available-for-sale securities, Fair value,	9,609	10,182
Residential - Government-sponsored enterprises
Assets
Total available-for-sale securities, Fair value,	753,385	783,297
Residential - Government-sponsored enterprises \| Fair Value, Measurements, Recurring
Assets
Total available-for-sale securities, Fair value,	753,385	783,297
Residential - Government-sponsored enterprises \| Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Assets
Total available-for-sale securities, Fair value,	753,385	783,297
Commercial - Government agency
Assets
Total available-for-sale securities, Fair value,	213,394	218,674
Commercial - Government agency \| Fair Value, Measurements, Recurring
Assets
Total available-for-sale securities, Fair value,	213,394	218,674
Commercial - Government agency \| Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Assets
Total available-for-sale securities, Fair value,	213,394	218,674
Commercial - Government-sponsored enterprises
Assets
Total available-for-sale securities, Fair value,	83,490	86,431
Commercial - Government-sponsored enterprises \| Fair Value, Measurements, Recurring
Assets
Total available-for-sale securities, Fair value,	83,490	86,431
Commercial - Government-sponsored enterprises \| Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Assets
Total available-for-sale securities, Fair value,	83,490	86,431
Commercial - Non-government mortgage \| Fair Value, Measurements, Recurring
Assets
Total available-for-sale securities, Fair value,	22,110	21,683
Commercial - Non-government mortgage \| Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Assets
Total available-for-sale securities, Fair value,	22,110	21,683
Government agency
Assets
Total available-for-sale securities, Fair value,	452,163	471,150
Government agency \| Fair Value, Measurements, Recurring
Assets
Total available-for-sale securities, Fair value,	452,163	471,150
Government agency \| Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Assets
Total available-for-sale securities, Fair value,	452,163	471,150
Government-sponsored enterprises
Assets
Total available-for-sale securities, Fair value,	353,061	363,970
Government-sponsored enterprises \| Fair Value, Measurements, Recurring
Assets
Total available-for-sale securities, Fair value,	353,061	363,970
Government-sponsored enterprises \| Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Assets
Total available-for-sale securities, Fair value,	353,061	363,970
Collateralized Loan Obligations \| Fair Value, Measurements, Recurring
Assets
Total available-for-sale securities, Fair value,	239,676	247,854
Collateralized Loan Obligations \| Fair Value, Measurements, Recurring \| Significant Other Observable Inputs (Level 2)
Assets
Total available-for-sale securities, Fair value,	$ 239,676	$ 247,854

Deposits

3 Months Ended

Mar. 31, 2024

Deposits

Deposits

7. Deposits

As of March 31, 2024 and December 31, 2023, deposits were categorized as interest-bearing or noninterest-bearing as follows:


(dollars in thousands)	March 31, 2024		December 31, 2023
U.S.:
Interest-bearing	$	12,451,100	$	12,731,915
Noninterest-bearing		6,212,216		6,609,483
Foreign:
Interest-bearing		1,169,828		1,017,180
Noninterest-bearing		836,337		974,079
Total deposits	$	20,669,481	$	21,332,657

The following table presents the maturity distribution of time certificates of deposit as of March 31, 2024:


	Under		$250,000
(dollars in thousands)	$250,000		or More		Total
Three months or less	$	375,094	$	513,230	$	888,324
Over three through six months		742,247		472,846		1,215,093
Over six through twelve months		588,338		445,817		1,034,155
One to two years		54,414		12,867		67,281
Two to three years		28,830		2,448		31,278
Three to four years		22,977		6,826		29,803
Four to five years		17,156		571		17,727
Thereafter		384		—		384
Total	$	1,829,440	$	1,454,605	$	3,284,045

Time certificates of deposit in denominations of $250,000 or more, in the aggregate, were $1.5 billion and $1.8 billion as of March 31, 2024 and December 31, 2023, respectively. Overdrawn deposit accounts are classified as loans and totaled $1.9 million and $2.5 million as of March 31, 2024 and December 31, 2023, respectively.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Regulatory Capital Requirements (Tables)

3 Months Ended

Mar. 31, 2024

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⁾
March 31, 2024:
Common equity tier 1 capital to risk-weighted assets	$	2,040,871	12.55	%	$	2,029,029	12.48	%	4.50	%	6.50	%
Tier 1 capital to risk-weighted assets		2,040,871	12.55	%		2,029,029	12.48	%	6.00	%	8.00	%
Total capital to risk-weighted assets		2,235,520	13.75	%		2,223,678	13.67	%	8.00	%	10.00	%
Tier 1 capital to average assets (leverage ratio)		2,040,871	8.80	%		2,029,029	8.75	%	4.00	%	5.00	%

December 31, 2023:
Common equity tier 1 capital to risk-weighted assets	$	2,020,784	12.39	%	$	2,006,393	12.30	%	4.50	%	6.50	%
Tier 1 capital to risk-weighted assets		2,020,784	12.39	%		2,006,393	12.30	%	6.00	%	8.00	%
Total capital to risk-weighted assets		2,212,922	13.57	%		2,198,531	13.48	%	8.00	%	10.00	%
Tier 1 capital to average assets (leverage ratio)		2,020,784	8.64	%		2,006,393	8.57	%	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 Federal Deposit Insurance Corporation (“FDIC”).

Other Assets - Mortgage Servicing Rights - Changes in Amortized MSRs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Changes in amortized mortgage servicing rights
Balance at beginning of year	$ 5,699	$ 6,562
Originations	97	17
Amortization	(263)	(280)
Balance at end of year	5,533	6,299
Fair value of amortized MSRs at beginning of period	14,308	15,193
Fair value of amortized MSRs at end of period	14,071	15,169
Impairment of MSRs recorded	$ 0	$ 0

Benefit Plans

3 Months Ended

Mar. 31, 2024

Benefit Plans

Noninterest Income and Noninterest Expense

15. Noninterest Income and Noninterest Expense

Benefit Plans

The following table sets forth the components of net periodic benefit cost for the Company’s pension and postretirement benefit plans for the three months ended March 31, 2024 and 2023:


	Income line item where recognized in	Pension Benefits				Other Benefits
(dollars in thousands)	the consolidated statements of income	2024		2023		2024		2023
Three Months Ended March 31,
Service cost	Salaries and employee benefits	$	—	$	—	$	137	$	147
Interest cost	Other noninterest expense		1,906		2,059		211		220
Expected return on plan assets	Other noninterest expense		(878)		(883)		—		—
Recognized net actuarial loss (gain)	Other noninterest expense		503		719		(322)		(379)
Total net periodic benefit cost		$	1,531	$	1,895	$	26	$	(12)

Leases

The Company recognized operating lease income related to lease payments of $1.6 million for both the three months ended March 31, 2024 and 2023. In addition, the Company recognized $1.6 million and $1.8 million of lease income related to variable lease payments for the three months ended March 31, 2024 and 2023, respectively.

Reportable Operating Segments (Tables)

3 Months Ended

Mar. 31, 2024

Reportable Operating Segments

Schedule of selected business segment financial information

Treasury

Retail

Commercial

and

(dollars in thousands)

Banking

Other

Total

Three Months Ended March 31, 2024

Net interest income (expense)

128,057

45,381

(19,011)

154,427

(Provision) benefit for credit losses

(3,379)

(3,713)

792

(6,300)

Net interest income (expense) after (provision) benefit for credit losses

124,678

41,668

(18,219)

148,127

Noninterest income

26,035

17,958

7,378

51,371

Noninterest expense

(76,640)

(25,685)

(26,488)

(128,813)

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

74,073

33,941

(37,329)

70,685

(Provision) benefit for income taxes

(17,928)

(7,273)

8,736

(16,465)

Net income (loss)

56,145

26,668

(28,593)

54,220


					Treasury
	Retail		Commercial		and
(dollars in thousands)	Banking		Banking		Other		Total
Three Months Ended March 31, 2023
Net interest income	$	108,920	$	40,939	$	17,388	$	167,247
Provision for credit losses		(2,563)		(3,873)		(2,364)		(8,800)
Net interest income after provision for credit losses		106,357		37,066		15,024		158,447

Noninterest income		24,267		17,888		6,868		49,023
Noninterest expense		(75,843)		(27,770)		(14,954)		(118,567)
Income before provision for income taxes		54,781		27,184		6,938		88,903

Provision for income taxes		(13,266)		(6,330)		(2,489)		(22,085)
Net income	$	41,515	$	20,854	$	4,449	$	66,818

Regulatory Capital Requirements (Details) $ in Thousands	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Common equity tier 1 capital to risk-weighted assets
Amount	$ 2,040,871	$ 2,020,784
Ratio (as a percent)	0.1255	0.1239
Minimum Capital Ratio (as a percent)	0.0450	0.0450
Well-Capitalized Ratio (as a percent)	0.0650	0.0650
Tier 1 capital to risk-weighted assets
Amount	$ 2,040,871	$ 2,020,784
Ratio (as a percent)	0.1255	0.1239
Minimum Capital Ratio (as a percent)	0.0600	0.0600
Well-Capitalized Ratio (percent)	0.0800	0.0800
Total capital to risk-weighted assets
Amount	$ 2,235,520	$ 2,212,922
Ratio (as a percent)	0.1375	0.1357
Minimum Capital Ratio (as a percent)	0.0800	0.0800
Well-Capitalized Ratio (as a percent)	0.1000	0.1000
Tier 1 capital to average assets (leverage ratio)
Amount	$ 2,040,871	$ 2,020,784
Ratio	0.0880	0.0864
Minimum Capital Ratio (as a percent)	0.0400	0.0400
Well-Capitalized Ratio (percent)	0.0500	0.0500
First Hawaiian Bank (FHB)
Common equity tier 1 capital to risk-weighted assets
Amount	$ 2,029,029	$ 2,006,393
Ratio (as a percent)	0.1248	0.1230
Tier 1 capital to risk-weighted assets
Amount	$ 2,029,029	$ 2,006,393
Ratio (as a percent)	0.1248	0.1230
Total capital to risk-weighted assets
Amount	$ 2,223,678	$ 2,198,531
Ratio (as a percent)	0.1367	0.1348
Tier 1 capital to average assets (leverage ratio)
Amount	$ 2,029,029	$ 2,006,393
Ratio	0.0875	0.0857

Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Financial Instruments

Summary of notional amounts and fair values of derivatives held


	March 31, 2024						December 31, 2023
			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	$	266,563	$	10,234	$	(58)	$	267,500	$	10,861	$	(1,799)
Interest rate collars		200,000		47		(43)		200,000		703		—
Derivatives not designated as hedging instruments:
Interest rate swaps		2,708,933		2,740		(4,645)		2,753,801		1,204		(521)
Visa derivative		114,190		—		(2,300)		107,548		—		(2,300)
Foreign exchange contracts		800		—		—		66		—		—

(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	Three Months Ended
	the consolidated statements	March 31,
(dollars in thousands)	of income line item	2024		2023
Gains (losses) on fair value hedging relationships recognized in interest income:
Recognized on interest rate swap	Loans and lease financing	$	(627)	$	1,189
Recognized on hedged item	Loans and lease financing		619		(1,284)

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)

March 31, 2024

December 31, 2023

March 31, 2024

December 31, 2023

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

Loans and leases

56,273

56,592

(10,289)

(10,908)

Summary of effect of cash flow hedging relationships


	Three Months Ended
	March 31,
(dollars in thousands)	2024		2023
Pretax net losses recognized in other comprehensive income on cash flow derivative hedges	$	(713)	$	(442)
Pretax net losses reclassified from accumulated other comprehensive income to interest income from loans and lease financing		1,755		1,303

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


	Net losses recognized	Three Months Ended
	in the consolidated statements	March 31,
(dollars in thousands)	of income line item	2024		2023
Derivatives Not Designated As Hedging Instruments:
Interest rate swaps	Other noninterest income	$	(7)	$	(378)
Visa derivative	Other noninterest income		(1,476)		(1,963)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net income	$ 54,220	$ 66,818
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	6,300	8,800
Depreciation, amortization and accretion, net	9,537	10,827
Deferred income tax provision	7,238	4,330
Stock-based compensation	3,242	2,320
Gain On Property Insurance Proceeds	(2,202)
Other (gains) losses	(7)	1,223
Originations of loans held for sale	(8,624)	(1,468)
Proceeds from sales of loans held for sale	8,791	1,447
Change in assets and liabilities:
Net decrease (increase) in other assets	11,782	(9,536)
Net decrease in other liabilities	(23,637)	(2,128)
Net cash provided by operating activities	66,640	82,633
Available-for-sale securities:
Proceeds from maturities and principal repayments	81,385	119,692
Proceeds from calls and sales	10,000
Held-to-maturity securities:
Proceeds from maturities and principal repayments	62,525	68,854
Proceeds from calls	345	220
Other investments:
Proceeds from sales	1,234	13,984
Purchases	(12,618)	(42,251)
Loans:
Net decrease (increase) in loans and leases resulting from originations and principal repayments	41,387	(88,408)
Purchases of loans	(15,000)	(48,741)
Proceeds from bank-owned life insurance		4,932
Proceeds from property insurance	2,202
Purchases of premises, equipment and software	(4,861)	(1,555)
Other	104	(1,614)
Net cash provided by investing activities	166,703	25,113
Cash flows from financing activities
Net decrease in deposits	(663,176)	(407,529)
Net increase in short-term borrowings		175,000
Proceeds from long-term borrowings		500,000
Dividends paid	(33,186)	(33,114)
Stock tendered for payment of withholding taxes	(2,612)	(3,135)
Net cash (used in) provided by financing activities	(698,974)	231,222
Net (decrease) increase in cash and cash equivalents	(465,631)	338,968
Cash and cash equivalents at beginning of year	1,739,897	526,624
Cash and cash equivalents at end of year	1,274,266	865,592
Supplemental disclosures
Interest paid	88,594	40,937
Income taxes paid, net of income tax refunds	1,755	1,761
Noncash investing and financing activities:
Transfers from loans and leases and other assets to other real estate owned	69
Operating lease right-of-use assets obtained in exchange for new lease obligations		$ 1,306
Obligation to fund low-income housing partnerships	$ 8,223

Noninterest Income and Noninterest Expense - Net periodic benefit cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pension Plan
Components of net periodic benefit cost
Interest cost	$ 1,906	$ 2,059
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Noninterest Expense	Other Noninterest Expense
Expected return on plan assets	$ (878)	$ (883)
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Noninterest Expense	Other Noninterest Expense
Recognized net actuarial loss (gain)	$ 503	$ 719
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Noninterest Expense	Other Noninterest Expense
Total net periodic benefit cost	$ 1,531	$ 1,895
Other Benefits
Components of net periodic benefit cost
Interest cost	$ 211	$ 220
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Noninterest Expense	Other Noninterest Expense
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Noninterest Expense	Other Noninterest Expense
Recognized net actuarial loss (gain)	$ (322)	$ (379)
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Noninterest Expense	Other Noninterest Expense
Total net periodic benefit cost	$ 26	$ (12)
Other Benefits \| Salaries and employee benefits
Components of net periodic benefit cost
Service cost	$ 137	$ 147

Deposits - Interest-bearing or Noninterest-bearing (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
U.S.:
Interest-bearing	$ 12,451,100	$ 12,731,915
Noninterest-bearing	6,212,216	6,609,483
Foreign:
Interest-bearing	1,169,828	1,017,180
Noninterest-bearing	836,337	974,079
Total deposits	$ 20,669,481	$ 21,332,657

Deposits - Time Certificate Denominations and Overdrawn Accounts (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Deposits
Time certificates of deposit in denominations of $250,000 or more, in the aggregate	$ 1,500.0	$ 1,800.0
Overdrawn deposit accounts classified as loans	$ 1.9	$ 2.5

Derivative Financial Instruments - Visa Class B Restricted Shares (Details) - Class B restricted shares $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) shares	Dec. 31, 2016 USD ($) shares	Mar. 31, 2024 USD ($)	Dec. 31, 2017
Visa Class B Restricted Shares
Number of shares sold \| shares	120,000
Visa
Visa Class B Restricted Shares
Net realized gain related to the sale of stock \| $		$ 22.7
Number of shares sold \| shares		274,000
Visa Derivative
Visa Class B Restricted Shares
Conversion rate			1.5875	1.6483
Derivative liability value \| $	$ 2.3		$ 2.3

Allowance for Credit Losses - Activity in ACL by Class of Loans and Leases (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Rollforward of the Allowance for Credit Losses
Balance at beginning of year	$ 156,533	$ 143,900	$ 143,900
Charge-offs	(5,763)	(5,830)
Recoveries	1,974	2,616
Provision	7,092	6,436
Balance at end of year	159,836	147,122	156,533
Commercial Lending
Rollforward of the Allowance for Credit Losses
Charge-offs	(909)		(5,982)
Commercial and Industrial
Rollforward of the Allowance for Credit Losses
Balance at beginning of year	14,956	14,564	14,564
Charge-offs	(909)	(791)	(3,482)
Recoveries	211	246
Provision	2,829	19
Balance at end of year	17,087	14,038	14,956
Commercial Real Estate
Rollforward of the Allowance for Credit Losses
Balance at beginning of year	43,944	43,810	43,810
Charge-offs			(2,500)
Provision	(418)	(3,499)
Balance at end of year	43,526	40,311	43,944
Construction
Rollforward of the Allowance for Credit Losses
Balance at beginning of year	10,392	5,843	5,843
Provision	2,049	630
Balance at end of year	12,441	6,473	10,392
Lease financing
Rollforward of the Allowance for Credit Losses
Balance at beginning of year	1,754	1,551	1,551
Provision	731	(70)
Balance at end of year	2,485	1,481	1,754
Residential mortgage
Rollforward of the Allowance for Credit Losses
Balance at beginning of year	36,880	35,175	35,175
Charge-offs		(122)	(414)
Recoveries	30	27
Provision	(120)	(760)
Balance at end of year	36,790	34,320	36,880
Residential mortgage \| Residential Lending: Home Equity Line
Rollforward of the Allowance for Credit Losses
Charge-offs			(292)
Residential Lending: Home Equity Line
Rollforward of the Allowance for Credit Losses
Balance at beginning of year	11,728	8,296	8,296
Charge-offs		(135)
Recoveries	44	177
Provision	(325)	1,003
Balance at end of year	11,447	9,341	11,728
Consumer
Rollforward of the Allowance for Credit Losses
Balance at beginning of year	36,879	34,661	34,661
Charge-offs	(4,854)	(4,782)	(17,110)
Recoveries	1,689	2,166
Provision	2,346	9,113
Balance at end of year	$ 36,060	$ 41,158	$ 36,879

Derivative Financial Instruments - Amounts Recorded in Balance Sheets Related to Cumulative Basis Adjustments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Derivative Financial Instruments
Carrying Amount of the Hedged Asset	$ 56,273	$ 56,592
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset	$ (10,289)	$ (10,908)

Allowance for Credit Losses - Troubled Debt Restructuring Disclosures Prior to Adoption of ASU 2022-02 (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Troubled debt restructuring modifications
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit	$ 6,500,000	$ 6,500,000
Commitments related to borrowers experiencing financial difficulty		5,000
Other real estate owned and repossessed personal property
Loans modified in TDRs that experienced a payment default
Real estate property held from a foreclosed TDR	$ 0	$ 0

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated other comprehensive Income (loss)	Treasury Stock	Total
Balance at Dec. 31, 2022	$ 1,410	$ 2,538,336	$ 736,544	$ (639,254)	$ (368,031)	$ 2,269,005
Balance (in shares) at Dec. 31, 2022	127,363,327
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)			66,818			66,818
Cash dividends declared ($0.26 per share)			(33,114)			(33,114)
Equity-based awards	$ 3	2,317	(457)		(3,135)	(1,272)
Equity-based awards (in shares)	210,353
Other comprehensive income, net of tax				27,575		27,575
Balance at Mar. 31, 2023	$ 1,413	2,540,653	769,791	(611,679)	(371,166)	2,329,012
Balance (in shares) at Mar. 31, 2023	127,573,680
Balance at Dec. 31, 2023	$ 1,413	2,548,250	837,859	(530,210)	(371,246)	$ 2,486,066
Balance (in shares) at Dec. 31, 2023	127,618,761					127,618,761
Treasury Stock, Value, Beginning Balance at Dec. 31, 2023						$ 371,246
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)			54,220			54,220
Cash dividends declared ($0.26 per share)			(33,186)			(33,186)
Equity-based awards	$ 4	3,238	(399)		(2,612)	231
Equity-based awards (in shares)	223,147
Other comprehensive income, net of tax				6,430		6,430
Balance at Mar. 31, 2024	$ 1,417	$ 2,551,488	$ 858,494	$ (523,780)	$ (373,858)	$ 2,513,761
Balance (in shares) at Mar. 31, 2024	127,841,908					127,841,908
Treasury Stock, Value, Ending Balance at Mar. 31, 2024						$ 373,858

- Definition

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

+ References

+ Details

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481372/852-10-55-10

Reference 2: http://www.xbrl.org/2003/role/exampleRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 323
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Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

Loans and Leases - Components (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Loans and leases
Loans and leases	$ 14,320,208	$ 14,353,497
Outstanding loan balances, deferred loan costs and fees	56,900	57,500
Accrued interest receivable related to loans and leases recorded separately	71,400	70,100
Consumer, commercial and industrial, commercial real estate, residential real estate loans and pledged securities, pledged to collateralize the borrowing capacity at the FRB	3,900,000	4,300,000
Residential Lending: Home Equity Line
Loans and leases
Loans and leases	1,165,778	1,174,588
Real estate
Loans and leases
Loans and leases	5,408,280	5,457,903
Commercial and Industrial
Loans and leases
Loans and leases	2,189,875	2,165,349
Commercial and Industrial \| Real estate
Loans and leases
Loans and leases	2,189,875	2,165,349
Commercial Real Estate
Loans and leases
Loans and leases	4,301,300	4,340,243
Commercial Real Estate \| Real estate
Loans and leases
Loans and leases	4,301,300	4,340,243
Construction
Loans and leases
Loans and leases	972,517	900,292
Construction \| Real estate
Loans and leases
Loans and leases	972,517	900,292
Residential mortgage
Loans and leases
Loans and leases	5,408,280
Properties in the process of foreclosure	7,800	6,900
Residential mortgage \| Residential real estate
Loans and leases
Loans and leases	4,242,502	4,283,315
Home equity Line \| Residential Lending: Home Equity Line
Loans and leases
Loans and leases	1,165,778	1,174,588
Home equity Line \| Real estate
Loans and leases
Loans and leases	1,165,778	1,174,588
Consumer
Loans and leases
Loans and leases	1,054,227	1,109,901
Consumer \| Real estate
Loans and leases
Loans and leases	1,054,227	1,109,901
Lease financing
Loans and leases
Loans and leases	394,009	379,809
Asset Pledged as Collateral
Loans and leases
Assets pledged as collateral	11,027,608	11,278,394
Asset Pledged as Collateral \| FHLB \| Residential mortgage
Loans and leases
Loans and leases	$ 5,000,000	$ 4,500,000

Fair Value

3 Months Ended

Mar. 31, 2024

Fair Value

Fair Value

16. Fair Value

The Company determines the fair values of its financial instruments based on the requirements established in Accounting Standards Codification Topic 820 (“Topic 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. Topic 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

Topic 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.

Topic 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 collateral-dependent loans, 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. 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. During 2018 through 2023, Visa funded its litigation escrow account, thereby reducing each member bank’s Class B conversion rate to unrestricted Class A common shares from 1.6483 to the current conversion rate of 1.5875. The Visa derivative of $2.3 million was included in the unaudited interim consolidated balance sheets at both March 31, 2024 and December 31, 2023, 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 March 31, 2024 and December 31, 2023 are summarized below:

Fair Value Measurements as of March 31, 2024

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 and government agency debt securities

—

12,821

—

12,821

Government-sponsored enterprises debt securities

—

19,629

—

19,629

Mortgage-backed securities:

Residential - Government agency⁽¹⁾

—

9,609

—

9,609

Residential - Government-sponsored enterprises⁽¹⁾

—

753,385

—

753,385

Commercial - Government agency

—

213,394

—

213,394

Commercial - Government-sponsored enterprises

—

83,490

—

83,490

Commercial - Non-agency

—

22,110

—

22,110

Collateralized mortgage obligations:

Government agency

—

452,163

—

452,163

Government-sponsored enterprises

—

353,061

—

353,061

Collateralized loan obligations

—

239,676

—

239,676

Total available-for-sale securities

—

2,159,338

—

2,159,338

Other assets⁽²⁾

216

13,021

—

13,237

Liabilities

Other liabilities⁽³⁾

—

(4,746)

(2,300)

(7,046)

Total

216

2,167,613

(2,300)

2,165,529

(1)	Backed by residential real estate.

(2)	Other assets classified as Level 1 include money market funds that have quoted prices in active markets and are related to the Company’s deferred compensation plans. Other assets classified as Level 2 include derivative assets.

(3)	Other liabilities include derivative liabilities.

	Fair Value Measurements as of December 31, 2023
	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 and government agency debt securities	$	—	$	32,503	$	—	$	32,503
Government-sponsored enterprises debt securities		—		19,592		—		19,592
Mortgage-backed securities:
Residential - Government agency⁽¹⁾		—		10,182		—		10,182
Residential - Government-sponsored enterprises⁽¹⁾		—		783,297		—		783,297
Commercial - Government agency		—		218,674		—		218,674
Commercial - Government-sponsored enterprises		—		86,431		—		86,431
Commercial - Non-agency		—		21,683		—		21,683
Collateralized mortgage obligations:
Government agency		—		471,150		—		471,150
Government-sponsored enterprises		—		363,970		—		363,970
Collateralized loan obligations		—		247,854		—		247,854
Total available-for-sale securities		—		2,255,336		—		2,255,336
Other assets⁽²⁾		517		12,768		—		13,285
Liabilities
Other liabilities⁽³⁾		—		(2,320)		(2,300)		(4,620)
Total	$	517	$	2,265,784	$	(2,300)	$	2,264,001

(1)	Backed by residential real estate.

(2)	Other assets classified as Level 1 include money market funds that have quoted prices in active markets and are related to the Company’s deferred compensation plans. Other assets classified as Level 2 include derivative assets.

(3)	Other liabilities include derivative liabilities.

For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of March 31, 2024 and December 31, 2023, the significant unobservable inputs used in the fair value measurements were as follows:


	Quantitative Information about Level 3 Fair Value Measurements at March 31, 2024
				Significant
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	Range
Collateral-dependent loans	$	14,623	Financial Statement Values	Discounts to reflect estimated selling costs	0% - 50%
Visa derivative	$	(2,300)	Discounted Cash Flow	Expected Conversion Rate - 1.5875⁽¹⁾	1.5289-1.5875
				Expected Term - 6 months⁽²⁾	n/m⁽²⁾
				Growth Rate - 9%⁽³⁾	-7% - 22%


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2023
				Significant
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	Range
Visa derivative	$	(2,300)	Discounted Cash Flow	Expected Conversion Rate - 1.5875⁽¹⁾	1.5289-1.5875
				Expected Term - 5 months⁽²⁾	n/m⁽²⁾
				Growth Rate - 10%⁽³⁾	-6% - 25%

(1)	Due to the uncertainty in the movement of the conversion rate, the current conversion rate as of the respective consolidated balance sheet dates was utilized in the fair value calculation.

(2)	The expected terms are based on a May 2024 claim filing deadline and subsequent period for claims to be processed. As such, a range is not meaningful to disclose.

(3)	The growth rate was based on the arithmetic average of analyst price targets.

Changes in Fair Value Levels

For the three months ended March 31, 2024 and 2023, 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 three months ended March 31, 2024 and 2023 are summarized below:


	Visa Derivative
(dollars in thousands)	2024		2023
Three Months Ended March 31,
Balance as of January 1,	$	(2,300)	$	(851)
Total net losses included in other noninterest income		(1,476)		(1,963)
Settlements		1,476		1,614
Balance as of March 31,	$	(2,300)	$	(1,200)
Total net losses included in net income attributable to the change in unrealized losses related to liabilities still held as of March 31,	$	(1,476)	$	(1,963)

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.

March 31, 2024

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

1,274,266

202,121

1,072,145

—

1,274,266

Investment securities held-to-maturity

3,988,011

—

3,470,710

—

3,470,710

Loans⁽¹⁾

13,926,199

—

13,250,470

Financial liabilities:

Time deposits⁽²⁾

3,284,045

—

3,259,350

—

3,259,350

Short-term borrowings

500,000

—

498,175

—

498,175


	December 31, 2023
			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	$	1,739,897	$	185,015	$	1,554,882	$	—	$	1,739,897
Investment securities held-to-maturity		4,041,449		—		3,574,856		—		3,574,856
Loans held for sale		190		—		192		—		192
Loans⁽¹⁾		13,973,688		—		—		13,385,683		13,385,683

Financial liabilities:
Time deposits⁽²⁾	$	3,456,158	$	—	$	3,432,330	$	—	$	3,432,330
Short-term borrowings		500,000		—		495,306		—		495,306

(1)	Excludes financing leases of $394.0 million at March 31, 2024 and $379.8 million at December 31, 2023.

(2)	Excludes deposit liabilities with no defined or contractual maturity of $17.4 billion as of March 31, 2024 and $17.9 billion as of December 31, 2023.

Unfunded loan and lease commitments and letters of credit are not included in the tables above. As of both March 31, 2024 and December 31, 2023, the Company had $6.5 billion, of unfunded loan and lease commitments and letters of credit. The Company believes that 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 $48.3 million and $49.8 million at March 31, 2024 and December 31, 2023, 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.

Collateral-dependent loans

Collateral-dependent loans are those for which repayment is expected to be provided substantially through the operation or sale of the collateral. These loans are measured at fair value on a nonrecurring basis using collateral values as a practical expedient. The fair values of collateral are primarily based on real estate appraisal reports prepared by third-party appraisers less estimated selling costs. The fair value of other collateral such as business assets is typically ascertained by assessing inventory listings and borrower’s financial statements less estimated selling costs. The Company measures the estimated credit losses on collateral-dependent loans by performing a lower of cost or fair value analysis. If the estimated credit losses are determined by the value of the collateral, the net carrying amount is adjusted to fair value on a nonrecurring basis as Level 3 by recognizing an ACL.

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 March 31, 2024:


(dollars in thousands)	Level 1		Level 2		Level 3
March 31, 2024
Collateral-dependent loans	$	—	$	—	$	14,623

Total expected credit losses recognized on collateral-dependent loans were $1.0 million for the three months ended March 31, 2024.

There were no assets with nonrecurring fair value adjustments held as of December 31, 2023. Additionally, there were no nonrecurring fair value adjustments for the three months ended March 31, 2023.

- 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

Other Assets - Bank-Owned Life Insurance and Mortgage Servicing Rights (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($) policy	Dec. 31, 2023 USD ($)
Other Intangible Assets
Noncash exchange of certain BOLI	$ 65,300
Gain or loss recognized as part of exchange	0
Number of policies exchanged \| policy		0
Unpaid principal amount of consumer loans serviced for others	1,300,000		$ 1,300,000
Contractually specified fees, late charges, and ancillary fees	800	$ 900
Amortization of mortgage servicing rights	263	$ 280
Mortgage servicing assets
Estimated future amortization expenses for MSRs over the next five years
Under one year	811
One to two years	720
Two to three years	637
Three to four years	561
Four to five years	497
Details of MSRs
Gross carrying amount	69,612		69,515
Less: accumulated amortization	64,079		63,816
Net carrying value	$ 5,533		$ 5,699

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
CONSOLIDATED BALANCE SHEETS (Unaudited)
Available-for-sale investment securities, amortized cost	$ 2,466,109	$ 2,558,675
Investment securities held-to-maturity	$ 3,470,710	$ 3,574,856
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)	141,687,612	141,340,539
Common stock outstanding (in shares)	127,841,908	127,618,761
Common stock repurchased (in shares)	13,845,704	13,721,778

Derivative Financial Instruments - Free-Standing (Details) - Derivatives Not Designated as Hedging Instruments - Interest rate swaps - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Derivative financial instruments
Notional Amount	$ 2,708,933		$ 2,753,801
Positive fair value, derivative asset	2,740		1,204
Negative fair value, derivative liability	4,645		$ 521
Net interest expense	$ 0	$ 0
Minimum
Derivative financial instruments
Derivative, Floating rate	1.89%		5.84%
Fixed interest rate (as a percent)	2.39%		2.39%
Maximum
Derivative financial instruments
Derivative, Floating rate	8.33%		8.34%
Fixed interest rate (as a percent)	5.98%		5.98%
Customer swap program
Derivative financial instruments
Notional Amount	$ 2,700,000		$ 2,800,000
Positive fair value, derivative asset	2,700		1,200
Negative fair value, derivative liability	4,600		$ 500
Upfront fees on the dealer swap	$ 0	$ 100

Organization and Basis of Presentation (Details)	Mar. 31, 2024
First Hawaiian, Inc. (FHI)
Capitalization
Outstanding common stock owned (as a percent)	100.00%

Loans and Leases

3 Months Ended

Mar. 31, 2024

Loans and Leases

Loans and Leases

3. Loans and Leases

As of March 31, 2024 and December 31, 2023, loans and leases were comprised of the following:


	March 31,		December 31,
(dollars in thousands)	2024		2023
Commercial and industrial	$	2,189,875	$	2,165,349
Commercial real estate		4,301,300		4,340,243
Construction		972,517		900,292
Residential:
Residential mortgage		4,242,502		4,283,315
Home equity line		1,165,778		1,174,588
Total residential		5,408,280		5,457,903
Consumer		1,054,227		1,109,901
Lease financing		394,009		379,809
Total loans and leases	$	14,320,208	$	14,353,497

Outstanding loan balances are reported net of deferred loan costs and fees of $56.9 million and $57.5 million at March 31, 2024 and December 31, 2023, respectively.

Accrued interest receivable related to loans and leases was $71.4 million and $70.1 million as of March 31, 2024 and December 31, 2023, respectively, and is recorded separately from the amortized cost basis of loans and leases on the Company’s unaudited interim consolidated balance sheets.

As of March 31, 2024, residential real estate loans and commercial real estate loans totaling $5.0 billion were pledged to collateralize the Company’s borrowing capacity at the Federal Home Loan Bank of Des Moines (“FHLB”), and consumer, commercial and industrial, commercial real estate, residential real estate loans and pledged securities totaling $3.9 billion were pledged to collateralize the borrowing capacity at the Federal Reserve Bank of San Francisco (“FRB”). As of December 31, 2023, residential real estate loans and commercial real estate loans totaling $4.5 billion were pledged to collateralize the Company’s borrowing capacity at the FHLB, and consumer, commercial and industrial, commercial real estate, residential real estate loans and pledged securities totaling $4.3 billion 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 $7.8 million and $6.9 million as of March 31, 2024 and December 31, 2023, 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.

Short-Term Borrowings

3 Months Ended

Mar. 31, 2024

Short-Term Borrowings

Short-Term Borrowings

8. Short-Term Borrowings

At March 31, 2024 and December 31, 2023, short-term borrowings were comprised of the following:


(dollars in thousands)	March 31, 2024		December 31, 2023
Short-term FHLB fixed-rate advances⁽¹⁾	$	500,000	$	500,000
Total short-term borrowings	$	500,000	$	500,000

(1)	Interest is payable monthly.

As of March 31, 2024 and December 31, 2023, the Company’s short-term borrowings consisted of $500.0 million in short-term FHLB fixed-rate advances with a weighted average interest rate of 4.71% and maturity dates in September 2024. The FHLB fixed-rate advances require monthly interest-only payments with the principal amount due on the maturity date.

As of March 31, 2024 and December 31, 2023, the Company had a remaining line of credit of $2.9 billion and $2.5 billion, respectively, available from the FHLB. The FHLB borrowing capacity was secured by commercial real estate and residential real estate loan collateral as of both March 31, 2024 and December 31, 2023. As of March 31, 2024 and December 31, 2023, the Company had an undrawn line of credit of $3.2 billion and $3.3 billion, respectively, available from the FRB. The borrowing capacity with the FRB was secured by consumer, commercial and industrial, commercial real estate, residential real estate loans and pledged securities as of both March 31, 2024 and December 31, 2023. See “Note 6. Transfers of Financial Assets” for more information.


	Three Months Ended March 31,
(dollars in thousands)	2024			2023
Federal funds purchased:
Weighted-average interest rate at March 31,		—	%		—	%
Highest month-end balance	$	—		$	150,000
Average outstanding balance	$	—		$	67,056
Weighted-average interest rate paid		—	%		4.43	%
Short-term FHLB repo advance:
Weighted-average interest rate at March 31,		—	%		5.00	%
Highest month-end balance	$	—		$	250,000
Average outstanding balance	$	—		$	52,778
Weighted-average interest rate paid		—	%		5.02	%
Short-term FHLB fixed-rate advances:
Weighted-average interest rate at March 31,		4.71	%		—	%
Highest month-end balance	$	500,000		$	—
Average outstanding balance	$	500,000		$	—
Weighted-average interest rate paid		4.79	%		—	%

Investment Securities - Proceeds from Calls and Sales, Realized Gains and Losses and Interest Income Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Proceeds from calls and sales of investment securities
Proceeds from calls of investment securities	$ 10.3	$ 0.2
Proceeds from sales of investment securities	0.0	0.0
Gross realized gains and losses on investment securities
Gross realized gains on sales of investment securities	0.0	0.0
Gross realized losses on sales of investment securities	0.0	0.0
Income tax benefit related to net realized loss on sale of investment securities	0.0	0.0
Interest income from taxable and nontaxable investment securities
Interest income from taxable investment securities	29.1	34.0
Interest income from non-taxable investment securities	$ 3.2	$ 3.6

Investment Securities - Amortized Cost and Fair Value, by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Amortized Cost
Due in one year or less	$ 13,254
Due after one year through five years	29,275
Due after five years through ten years	87,696
Due after ten years	164,869
Total contractual maturities	295,094
Available-for-sale investment securities, amortized cost	2,466,109	$ 2,558,675
Fair Value
Due in one year or less	12,821
Due after one year through five years	28,885
Due after five years through ten years	87,617
Due after ten years	164,913
Total contractual maturities	294,236
Total available-for-sale securities, Fair value,	2,159,338	2,255,336
Amortized Cost
Due after five years through ten years	22,132
Due after ten years	84,068
Total contractual maturities	106,200
Amortized cost	3,988,011	4,041,449
Fair Value
Due after five years through ten years	20,121
Due after ten years	75,134
Total contractual maturities	95,255
Total held to maturity, Fair value,	3,470,710	3,574,856
Mortgage-backed securities:
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	1,234,124
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	1,059,878
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	1,299,049
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	1,127,512
Residential - Government agency
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	10,959
Available-for-sale investment securities, amortized cost	10,959	11,303
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	9,609
Total available-for-sale securities, Fair value,	9,609	10,182
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	42,961
Amortized cost	42,961	43,885
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	36,752
Total held to maturity, Fair value,	36,752	38,696
Residential - Government-sponsored enterprises
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	868,033
Available-for-sale investment securities, amortized cost	868,033	895,421
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	753,385
Total available-for-sale securities, Fair value,	753,385	783,297
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	97,914
Amortized cost	97,914	99,379
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	84,448
Total held to maturity, Fair value,	84,448	88,366
Commercial - Government agency
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	264,691
Available-for-sale investment securities, amortized cost	264,691	268,944
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	213,394
Total available-for-sale securities, Fair value,	213,394	218,674
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	30,853
Amortized cost	30,853	30,795
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	23,202
Total held to maturity, Fair value,	23,202	23,778
Commercial - Government-sponsored enterprises
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	90,441
Available-for-sale investment securities, amortized cost	90,441	93,459
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	83,490
Total available-for-sale securities, Fair value,	83,490	86,431
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	1,127,321
Amortized cost	1,127,321	1,129,738
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	983,110
Total held to maturity, Fair value,	983,110	999,176
Collateralized mortgage obligations
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	936,891
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	805,224
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	2,582,762
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	2,247,943
Government agency
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	523,160
Available-for-sale investment securities, amortized cost	523,160	538,718
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	452,163
Total available-for-sale securities, Fair value,	452,163	471,150
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	972,199
Amortized cost	972,199	989,130
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	847,035
Total held to maturity, Fair value,	847,035	879,659
Government-sponsored enterprises
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	413,731
Available-for-sale investment securities, amortized cost	413,731	425,826
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	353,061
Total available-for-sale securities, Fair value,	353,061	363,970
Amortized Cost
Mortgaged-backed securities and collateralized mortgage obligations	1,610,563
Amortized cost	1,610,563	1,642,274
Fair Value
Mortgaged-backed securities and collateralized mortgage obligations	1,400,908
Total held to maturity, Fair value,	$ 1,400,908	$ 1,448,377

Allowance for Credit Losses - Collateral-Dependent Loans and Leases (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Residential Real Estate [Member]
Financing Receivable, Nonaccrual
Amortized cost basis of collateral-dependent loans	$ 32.5	$ 11.1

Investment Securities (Tables)

3 Months Ended

Mar. 31, 2024

Investment Securities

Schedule of amortized cost and fair value of securities


	March 31, 2024								December 31, 2023
	Amortized		Unrealized		Unrealized		Fair		Amortized		Unrealized		Unrealized		Fair
(dollars in thousands)	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. Treasury and government agency debt securities	$	13,254	$	—	$	(433)	$	12,821	$	33,169	$	—	$	(666)	$	32,503
Government-sponsored enterprises debt securities		20,000		—		(371)		19,629		20,000		—		(408)		19,592
Mortgage-backed securities:
Residential - Government agency		10,959		—		(1,350)		9,609		11,303		—		(1,121)		10,182
Residential - Government-sponsored enterprises		868,033		—		(114,648)		753,385		895,421		—		(112,124)		783,297
Commercial - Government agency		264,691		—		(51,297)		213,394		268,944		—		(50,270)		218,674
Commercial - Government-sponsored enterprises		90,441		—		(6,951)		83,490		93,459		—		(7,028)		86,431
Commercial - Non-agency		21,968		142		—		22,110		21,964		—		(281)		21,683
Collateralized mortgage obligations:
Government agency		523,160		—		(70,997)		452,163		538,718		—		(67,568)		471,150
Government-sponsored enterprises		413,731		—		(60,670)		353,061		425,826		—		(61,856)		363,970
Collateralized loan obligations		239,872		383		(579)		239,676		249,871		43		(2,060)		247,854
Total available-for-sale securities	$	2,466,109	$	525	$	(307,296)	$	2,159,338	$	2,558,675	$	43	$	(303,382)	$	2,255,336

Government agency debt securities	$	51,904	$	—	$	(5,300)	$	46,604	$	52,051	$	—	$	(4,497)	$	47,554
Mortgage-backed securities:
Residential - Government agency		42,961		—		(6,209)		36,752		43,885		—		(5,189)		38,696
Residential - Government-sponsored enterprises		97,914		—		(13,466)		84,448		99,379		—		(11,013)		88,366
Commercial - Government agency		30,853		—		(7,651)		23,202		30,795		—		(7,017)		23,778
Commercial - Government-sponsored enterprises		1,127,321		167		(144,378)		983,110		1,129,738		195		(130,757)		999,176
Collateralized mortgage obligations:
Government agency		972,199		—		(125,164)		847,035		989,130		—		(109,471)		879,659
Government-sponsored enterprises		1,610,563		—		(209,655)		1,400,908		1,642,274		—		(193,897)		1,448,377
Debt securities issued by states and political subdivisions		54,296		—		(5,645)		48,651		54,197		—		(4,947)		49,250
Total held-to-maturity securities	$	3,988,011	$	167	$	(517,468)	$	3,470,710	$	4,041,449	$	195	$	(466,788)	$	3,574,856

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


	March 31, 2024
	Amortized		Fair
(dollars in thousands)	Cost		Value
Available-for-sale securities
Due in one year or less	$	13,254	$	12,821
Due after one year through five years		29,275		28,885
Due after five years through ten years		87,696		87,617
Due after ten years		164,869		164,913
		295,094		294,236

Mortgage-backed securities:
Residential - Government agency		10,959		9,609
Residential - Government-sponsored enterprises		868,033		753,385
Commercial - Government agency		264,691		213,394
Commercial - Government-sponsored enterprises		90,441		83,490
Total mortgage-backed securities		1,234,124		1,059,878
Collateralized mortgage obligations:
Government agency		523,160		452,163
Government-sponsored enterprises		413,731		353,061
Total collateralized mortgage obligations		936,891		805,224
Total available-for-sale securities	$	2,466,109	$	2,159,338

Held-to-maturity securities
Due in one year or less	$	—	$	—
Due after one year through five years		—		—
Due after five years through ten years		22,132		20,121
Due after ten years		84,068		75,134
		106,200		95,255

Mortgage-backed securities:
Residential - Government agency		42,961		36,752
Residential - Government-sponsored enterprises		97,914		84,448
Commercial - Government agency		30,853		23,202
Commercial - Government-sponsored enterprises		1,127,321		983,110
Total mortgage-backed securities		1,299,049		1,127,512
Collateralized mortgage obligations:
Government agency		972,199		847,035
Government-sponsored enterprises		1,610,563		1,400,908
Total collateralized mortgage obligations		2,582,762		2,247,943
Total held-to-maturity securities	$	3,988,011	$	3,470,710

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

Time in Continuous Loss as of March 31, 2024

Less Than 12 Months

12 Months or More

Total

Unrealized

(dollars in thousands)

Losses

Fair Value

Losses

Fair Value

Losses

Fair Value

U.S. Treasury and government agency debt securities

—

(433)

12,821

(433)

12,821

Government-sponsored enterprises debt securities

—

(371)

19,629

(371)

19,629

Mortgage-backed securities:

Residential - Government agency

—

(1,350)

9,609

(1,350)

9,609

Residential - Government-sponsored enterprises

—

(114,648)

753,385

(114,648)

753,385

Commercial - Government agency

—

(51,297)

213,394

(51,297)

213,394

Commercial - Government-sponsored enterprises

—

(6,951)

83,490

(6,951)

83,490

Collateralized mortgage obligations:

Government agency

—

(70,997)

452,163

(70,997)

452,163

Government-sponsored enterprises

—

(60,670)

353,061

(60,670)

353,061

Collateralized loan obligations

(8)

8,492

(571)

99,029

(579)

107,521

Total available-for-sale securities with unrealized losses

(8)

8,492

(307,288)

1,996,581

(307,296)

2,005,073


	Time in Continuous Loss as of December 31, 2023
	Less Than 12 Months				12 Months or More				Total
	Unrealized				Unrealized				Unrealized
(dollars in thousands)	Losses		Fair Value		Losses		Fair Value		Losses		Fair Value
U.S. Treasury and government agency debt securities	$	—	$	—	$	(666)	$	32,503	$	(666)	$	32,503
Government-sponsored enterprises debt securities		—		—		(408)		19,592		(408)		19,592
Mortgage-backed securities:
Residential - Government agency		—		—		(1,121)		10,182		(1,121)		10,182
Residential - Government-sponsored enterprises		—		—		(112,124)		783,297		(112,124)		783,297
Commercial - Government agency		—		—		(50,270)		218,674		(50,270)		218,674
Commercial - Government-sponsored enterprises		—		—		(7,028)		86,431		(7,028)		86,431
Commercial - Non-agency		—		—		(281)		21,683		(281)		21,683
Collateralized mortgage obligations:
Government agency		—		—		(67,568)		471,150		(67,568)		471,150
Government-sponsored enterprises		—		—		(61,856)		363,970		(61,856)		363,970
Collateralized loan obligations		(564)		63,667		(1,496)		163,126		(2,060)		226,793
Total available-for-sale securities with unrealized losses	$	(564)	$	63,667	$	(302,818)	$	2,170,608	$	(303,382)	$	2,234,275

Allowance for Credit Losses - Rollforward of the Reserve for Unfunded Commitments (Details) - Reserve for unfunded commitments - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Reserve for unfunded commitments:
Reserve for unfunded commitments, beginning balance	$ 35,605	$ 33,835
Provision	(792)	2,364
Reserve for unfunded commitments, ending balance	34,813	36,199
Commercial and Industrial
Reserve for unfunded commitments:
Reserve for unfunded commitments, beginning balance	9,116	7,811
Provision	(324)	(658)
Reserve for unfunded commitments, ending balance	8,792	7,153
Commercial Real Estate
Reserve for unfunded commitments:
Reserve for unfunded commitments, beginning balance	1,787	2,004
Provision	86	(312)
Reserve for unfunded commitments, ending balance	1,873	1,692
Construction
Reserve for unfunded commitments:
Reserve for unfunded commitments, beginning balance	8,048	7,470
Provision	(1,151)	1,482
Reserve for unfunded commitments, ending balance	6,897	8,952
Residential Lending: Residential Mortgage
Reserve for unfunded commitments:
Reserve for unfunded commitments, beginning balance	24	30
Provision	(10)	(13)
Reserve for unfunded commitments, ending balance	14	17
Residential Lending: Home Equity Line
Reserve for unfunded commitments:
Reserve for unfunded commitments, beginning balance	16,589	16,483
Provision	598	1,853
Reserve for unfunded commitments, ending balance	17,187	18,336
Consumer
Reserve for unfunded commitments:
Reserve for unfunded commitments, beginning balance	41	37
Provision	9	12
Reserve for unfunded commitments, ending balance	$ 50	$ 49

Noninterest Income and Noninterest Expense - Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Noninterest Income and Noninterest Expense
Operating lease income related to lease payments	$ 1.6	$ 1.6
Lease income related to variable lease payments	$ 1.6	$ 1.8

Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2024

Revenue from Contracts with Customers

Revenue from Contracts with Customers

13. Revenue from Contracts with Customers

Revenue Recognition

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

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 periods indicated:

Three Months Ended March 31, 2024

Treasury

Retail

Commercial

and

(dollars in thousands)

Banking

Other

Total

Net interest income (expense)⁽¹⁾

128,057

45,381

(19,011)

154,427

Service charges on deposit accounts

6,675

824

7,546

Credit and debit card fees

—

14,592

1,006

15,598

Other service charges and fees

6,938

398

570

7,906

Trust and investment services income

10,354

—

10,354

Other

220

1,148

2,640

4,008

Not in scope of Topic 606⁽¹⁾

1,848

996

3,115

5,959

Total noninterest income

26,035

17,958

7,378

51,371

Total revenue

154,092

63,339

(11,633)

205,798

(1)


		Three Months Ended March 31, 2023
					Treasury
	Retail		Commercial		and
(dollars in thousands)	Banking		Banking		Other		Total
Net interest income⁽¹⁾	$	108,920	$	40,939	$	17,388	$	167,247

Service charges on deposit accounts		6,541		626		64		7,231
Credit and debit card fees		—		14,414		1,296		15,710
Other service charges and fees		6,171		420		513		7,104
Trust and investment services income		9,614		—		—		9,614
Other		239		1,317		1,649		3,205
Not in scope of Topic 606⁽¹⁾		1,702		1,111		3,346		6,159
Total noninterest income		24,267		17,888		6,868		49,023
Total revenue	$	133,187	$	58,827	$	24,256	$	216,270

(1)

For the three months ended March 31, 2024 and 2023, 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 fees collected when the Company acts as agent or personal representative and executes security transactions, performs collection and disbursement of income, and completes investment management and other administrative tasks.

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. The Company received signing bonuses from two vendors in prior years, which are being amortized over the term of the respective contracts. As of March 31, 2024 and December 31, 2023, the Company had contract liabilities of $1.8 million and $1.9 million, respectively, which it expects to recognize over the remaining term of the respective contracts with the vendors. For the three months ended March 31, 2024, the Company’s recognized revenues increased and contract liabilities decreased by approximately $0.2 million due to the passage of time. For the three months ended March 31, 2023, the Company’s recognized revenues increased and contract liabilities decreased by approximately $0.2 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 March 31, 2024 and December 31, 2023, there were no material receivables from contracts with customers or contract assets recorded on the Company’s unaudited interim consolidated balance sheets.

Other

Except for the contract liabilities noted above, the Company did not have any significant performance obligations as of March 31, 2024 and December 31, 2023. 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.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Fair Value - Financial Instruments not Required to be Carried at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financial assets:
Investment securities held-to-maturity	$ 3,470,710	$ 3,574,856
Lease and lease commitments excluded
Financing leases	394,000	379,800
Deposit liabilities with no defined or contractual maturity	17,400,000	17,900,000
Book Value
Financial assets:
Cash and cash equivalents	1,274,266	1,739,897
Investment securities held-to-maturity	3,988,011	4,041,449
Loans held for sale		190
Loans	13,926,199	13,973,688
Financial liabilities:
Time deposits	3,284,045	3,456,158
Short-term borrowings	500,000	500,000
Estimated Fair Value
Financial assets:
Cash and cash equivalents	1,274,266	1,739,897
Investment securities held-to-maturity	3,470,710	3,574,856
Loans held for sale		192
Loans	13,250,470	13,385,683
Financial liabilities:
Time deposits	3,259,350	3,432,330
Short-term borrowings	498,175	495,306
Estimated Fair Value \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Cash and cash equivalents	202,121	185,015
Estimated Fair Value \| Significant Other Observable Inputs (Level 2)
Financial assets:
Cash and cash equivalents	1,072,145	1,554,882
Investment securities held-to-maturity	3,470,710	3,574,856
Loans held for sale		192
Financial liabilities:
Time deposits	3,259,350	3,432,330
Short-term borrowings	498,175	495,306
Estimated Fair Value \| Significant Unobservable Inputs (Level 3)
Financial assets:
Loans	$ 13,250,470	$ 13,385,683

Investment Securities - Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Available for sale debt securities
Amortized Cost	$ 2,466,109	$ 2,558,675
Unrealized Gains	525	43
Unrealized Losses	(307,296)	(303,382)
Total available-for-sale securities, Fair value,	2,159,338	2,255,336
Held to maturity securities
Amortized Cost	3,988,011	4,041,449
Unrealized Gains	167	195
Unrealized Losses	(517,468)	(466,788)
Total held to maturity, Fair value,	3,470,710	3,574,856
Available-for-sale investment securities
Accrued interest receivable related to available-for-sale investment securities	7,000	7,200
Accrued interest receivable related to held to maturity investment securities	7,300	7,000
Collateralized Loan Obligations
Available for sale debt securities
Amortized Cost	239,872	249,871
Unrealized Gains	383	43
Unrealized Losses	(579)	(2,060)
Total available-for-sale securities, Fair value,	239,676	247,854
U.S. Treasury and government agency debt securities
Available for sale debt securities
Amortized Cost	13,254	33,169
Unrealized Losses	(433)	(666)
Total available-for-sale securities, Fair value,	12,821	32,503
Government-sponsored enterprises debt securities
Available for sale debt securities
Amortized Cost	20,000	20,000
Unrealized Losses	(371)	(408)
Total available-for-sale securities, Fair value,	19,629	19,592
Government agency debt securities
Held to maturity securities
Amortized Cost	51,904	52,051
Unrealized Losses	(5,300)	(4,497)
Total held to maturity, Fair value,	46,604	47,554
Residential - Government agency
Available for sale debt securities
Amortized Cost	10,959	11,303
Unrealized Losses	(1,350)	(1,121)
Total available-for-sale securities, Fair value,	9,609	10,182
Held to maturity securities
Amortized Cost	42,961	43,885
Unrealized Losses	(6,209)	(5,189)
Total held to maturity, Fair value,	36,752	38,696
Residential - Government-sponsored enterprises
Available for sale debt securities
Amortized Cost	868,033	895,421
Unrealized Losses	(114,648)	(112,124)
Total available-for-sale securities, Fair value,	753,385	783,297
Held to maturity securities
Amortized Cost	97,914	99,379
Unrealized Losses	(13,466)	(11,013)
Total held to maturity, Fair value,	84,448	88,366
Commercial - Government agency
Available for sale debt securities
Amortized Cost	264,691	268,944
Unrealized Losses	(51,297)	(50,270)
Total available-for-sale securities, Fair value,	213,394	218,674
Held to maturity securities
Amortized Cost	30,853	30,795
Unrealized Losses	(7,651)	(7,017)
Total held to maturity, Fair value,	23,202	23,778
Commercial - Government-sponsored enterprises
Available for sale debt securities
Amortized Cost	90,441	93,459
Unrealized Losses	(6,951)	(7,028)
Total available-for-sale securities, Fair value,	83,490	86,431
Held to maturity securities
Amortized Cost	1,127,321	1,129,738
Unrealized Gains	167	195
Unrealized Losses	(144,378)	(130,757)
Total held to maturity, Fair value,	983,110	999,176
Commercial - Non -agency
Available for sale debt securities
Amortized Cost	21,968	21,964
Unrealized Gains	142
Unrealized Losses		(281)
Total available-for-sale securities, Fair value,	22,110	21,683
Government agency
Available for sale debt securities
Amortized Cost	523,160	538,718
Unrealized Losses	(70,997)	(67,568)
Total available-for-sale securities, Fair value,	452,163	471,150
Held to maturity securities
Amortized Cost	972,199	989,130
Unrealized Losses	(125,164)	(109,471)
Total held to maturity, Fair value,	847,035	879,659
Government-sponsored enterprises
Available for sale debt securities
Amortized Cost	413,731	425,826
Unrealized Losses	(60,670)	(61,856)
Total available-for-sale securities, Fair value,	353,061	363,970
Held to maturity securities
Amortized Cost	1,610,563	1,642,274
Unrealized Losses	(209,655)	(193,897)
Total held to maturity, Fair value,	1,400,908	1,448,377
Debt securities issued by states and political subdivisions
Held to maturity securities
Amortized Cost	54,296	54,197
Unrealized Losses	(5,645)	(4,947)
Total held to maturity, Fair value,	$ 48,651	$ 49,250

Fair Value - Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2024	Dec. 31, 2023
Assets with fair value adjustments on a nonrecurring basis
Assets, Fair value			$ 0
Assets, fair value adjustment	$ 0
Collateral-dependent loans
Assets with fair value adjustments on a nonrecurring basis
Expected Credit Losses		$ 1,000,000.0
Collateral-dependent loans \| Fair Value, Inputs, Level 3 [Member]
Assets with fair value adjustments on a nonrecurring basis
Assets, Fair value		$ 14,623,000

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2024

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

9. Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss is defined as the revenues, expenses, gains and losses that are included in comprehensive loss but excluded from net income. The Company’s significant items of accumulated other comprehensive loss are pension and other benefits, net unrealized gains or losses on investment securities and net unrealized gains or losses on cash flow derivative hedges.

Changes in accumulated other comprehensive loss for the three months ended March 31, 2024 and 2023 are presented below:


			Income
			Tax
	Pre-tax		Benefit		Net of
(dollars in thousands)	Amount		(Expense)		Tax
Accumulated other comprehensive loss at December 31, 2023	$	(723,100)	$	192,890	$	(530,210)
Three months ended March 31, 2024
Investment securities:
Unrealized net losses arising during the period		(3,432)		915		(2,517)
Reclassification of net losses to net income:
Amortization of unrealized holding losses on held-to-maturity securities		11,160		(2,976)		8,184
Net change in investment securities		7,728		(2,061)		5,667
Cash flow derivative hedges:
Unrealized net losses arising during the period		(713)		189		(524)
Reclassification of net losses included in net income		1,755		(468)		1,287
Net change in cash flow derivative hedges		1,042		(279)		763
Other comprehensive income		8,770		(2,340)		6,430
Accumulated other comprehensive loss at March 31, 2024	$	(714,330)	$	190,550	$	(523,780)


			Income
			Tax
	Pre-tax		Benefit		Net of
(dollars in thousands)	Amount		(Expense)		Tax
Accumulated other comprehensive loss at December 31, 2022	$	(871,813)	$	232,559	$	(639,254)
Three months ended March 31, 2023
Investment securities:
Unrealized net gains arising during the period		25,038		(6,679)		18,359
Reclassification of net losses to net income:
Amortization of unrealized holding losses on held-to-maturity securities		11,708		(3,123)		8,585
Net change in investment securities		36,746		(9,802)		26,944
Cash flow derivative hedges:
Unrealized net losses arising during the period		(442)		118		(324)
Reclassification of net losses included in net income		1,303		(348)		955
Net change in cash flow derivative hedges		861		(230)		631
Other comprehensive income		37,607		(10,032)		27,575
Accumulated other comprehensive loss at March 31, 2023	$	(834,206)	$	222,527	$	(611,679)

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


	Pensions								Accumulated
	and		Available-for-Sale		Held-to-Maturity		Cash Flow		Other
	Other		Investment		Investment		Derivative		Comprehensive
(dollars in thousands)	Benefits		Securities		Securities		Hedges		Loss
Three Months Ended March 31, 2024
Balance at beginning of period	$	(5,373)	$	(222,423)	$	(301,611)	$	(803)	$	(530,210)
Other comprehensive (loss) income		—		(2,517)		8,184		763		6,430
Balance at end of period	$	(5,373)	$	(224,940)	$	(293,427)	$	(40)	$	(523,780)

Three Months Ended March 31, 2023
Balance at beginning of period	$	(5,431)	$	(292,175)	$	(336,946)	$	(4,702)	$	(639,254)
Other comprehensive income		—		18,359		8,585		631		27,575
Balance at end of period	$	(5,431)	$	(273,816)	$	(328,361)	$	(4,071)	$	(611,679)

Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2024

Accumulated Other Comprehensive Loss

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, 2023	$	(723,100)	$	192,890	$	(530,210)
Three months ended March 31, 2024
Investment securities:
Unrealized net losses arising during the period		(3,432)		915		(2,517)
Reclassification of net losses to net income:
Amortization of unrealized holding losses on held-to-maturity securities		11,160		(2,976)		8,184
Net change in investment securities		7,728		(2,061)		5,667
Cash flow derivative hedges:
Unrealized net losses arising during the period		(713)		189		(524)
Reclassification of net losses included in net income		1,755		(468)		1,287
Net change in cash flow derivative hedges		1,042		(279)		763
Other comprehensive income		8,770		(2,340)		6,430
Accumulated other comprehensive loss at March 31, 2024	$	(714,330)	$	190,550	$	(523,780)


			Income
			Tax
	Pre-tax		Benefit		Net of
(dollars in thousands)	Amount		(Expense)		Tax
Accumulated other comprehensive loss at December 31, 2022	$	(871,813)	$	232,559	$	(639,254)
Three months ended March 31, 2023
Investment securities:
Unrealized net gains arising during the period		25,038		(6,679)		18,359
Reclassification of net losses to net income:
Amortization of unrealized holding losses on held-to-maturity securities		11,708		(3,123)		8,585
Net change in investment securities		36,746		(9,802)		26,944
Cash flow derivative hedges:
Unrealized net losses arising during the period		(442)		118		(324)
Reclassification of net losses included in net income		1,303		(348)		955
Net change in cash flow derivative hedges		861		(230)		631
Other comprehensive income		37,607		(10,032)		27,575
Accumulated other comprehensive loss at March 31, 2023	$	(834,206)	$	222,527	$	(611,679)

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


	Pensions								Accumulated
	and		Available-for-Sale		Held-to-Maturity		Cash Flow		Other
	Other		Investment		Investment		Derivative		Comprehensive
(dollars in thousands)	Benefits		Securities		Securities		Hedges		Loss
Three Months Ended March 31, 2024
Balance at beginning of period	$	(5,373)	$	(222,423)	$	(301,611)	$	(803)	$	(530,210)
Other comprehensive (loss) income		—		(2,517)		8,184		763		6,430
Balance at end of period	$	(5,373)	$	(224,940)	$	(293,427)	$	(40)	$	(523,780)

Three Months Ended March 31, 2023
Balance at beginning of period	$	(5,431)	$	(292,175)	$	(336,946)	$	(4,702)	$	(639,254)
Other comprehensive income		—		18,359		8,585		631		27,575
Balance at end of period	$	(5,431)	$	(273,816)	$	(328,361)	$	(4,071)	$	(611,679)

Other Assets

3 Months Ended

Mar. 31, 2024

Other Assets.

Other Assets

5. Other Assets

Bank-Owned Life Insurance

During the three months ended March 31, 2024, the Company entered into a noncash exchange of certain bank-owned life insurance (“BOLI”) policies in accordance with Internal Revenue Code (“IRC”) Section 1035. Policies of $65.3 million were transferred into new policies during this period. No gain or loss was recognized as part of this exchange. There were no policies exchanged during the three months ended March 31, 2023.

Mortgage Servicing Rights

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 Company’s maximum potential exposure to repurchases is limited to the unpaid principal amount of residential real estate loans serviced for others, which was $1.3 billion as of both March 31, 2024 and December 31, 2023. Servicing fees include contractually specified fees, late charges, and ancillary fees and were $0.8 million and $0.9 million for the three months ended March 31, 2024 and 2023, respectively.


	Estimated
(dollars in thousands)	Amortization
Under one year	$	811
One to two years		720
Two to three years		637
Three to four years		561
Four to five years		497

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


	March 31,		December 31,
(dollars in thousands)	2024		2023
Gross carrying amount	$	69,612	$	69,515
Less: accumulated amortization		64,079		63,816
Net carrying value	$	5,533	$	5,699

The following table presents changes in amortized MSRs for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
(dollars in thousands)	2024		2023
Balance at beginning of period	$	5,699	$	6,562
Originations		97		17
Amortization		(263)		(280)
Balance at end of period	$	5,533	$	6,299
Fair value of amortized MSRs at beginning of period	$	14,308	$	15,193
Fair value of amortized MSRs at end of period	$	14,071	$	15,169

MSRs are evaluated for impairment if events and circumstances indicate a possible impairment. No impairment of MSRs was recorded for the three months ended March 31, 2024 and 2023.

The quantitative assumptions used in determining the lower of cost or fair value of the Company’s MSRs as of March 31, 2024 and December 31, 2023 were as follows:


	March 31, 2024							December 31, 2023
						Weighted							Weighted
	Range					Average		Range					Average
Conditional prepayment rate	6.98	%	-	11.34	%	7.08	%	6.87	%	-	11.53	%	7.04	%
Life in years (of the MSR)	4.28		-	7.18		7.05		4.30		-	7.22		7.09
Weighted-average coupon rate	3.63	%	-	5.75	%	3.75	%	3.57	%	-	5.81	%	3.73	%
Discount rate	10.27	%	-	10.58	%	10.52	%	10.40	%	-	10.60	%	10.52	%

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

Low-Income Housing Tax Credit Investments

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 5 or 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 generally accounts for its interests in these low-income housing partnerships using the proportional amortization method. The Company had $207.4 million and $206.9 million in affordable housing and other tax credit investment partnership interests as of March 31, 2024 and December 31, 2023, respectively, included in other assets on the unaudited interim consolidated balance sheets. The amount of amortization of such investments reported in the provision for income taxes was $7.7 million and $6.1 million during the three months ended March 31, 2024 and 2023, respectively. The affordable housing tax credits and other benefits recognized during the three months ended March 31, 2024 and 2023 were $9.6 million and $7.4 million, respectively, included in the provision for income taxes on the unaudited interim consolidated statements of income and net income on the unaudited interim consolidated statements of cash flows.

Unfunded commitments to fund these investments were $77.2 million and $80.7 million as of March 31, 2024 and December 31, 2023, respectively. These unfunded commitments are unconditional and legally binding and are recorded in other liabilities in the unaudited interim consolidated balance sheets.

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2024	Apr. 30, 2024
Cover page
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-14585
Entity Registrant Name	FIRST HAWAIIAN, INC.
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
Trading Symbol	FHB
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		127,841,908
Entity Central Index Key	0000036377
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Allowance for Credit Losses - Nonaccrual Loans and Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Financing Receivable, Nonaccrual
Nonaccrual Loans and Leases With No Allowance for Credit Losses	$ 7,132		$ 6,515
Nonaccrual Loans and Leases	18,017		18,595
Interest income recognized on nonaccrual loans and leases	200	$ 100
Accrued interest receivables written off, Interest income reversed	200	$ 200
Commercial and Industrial
Financing Receivable, Nonaccrual
Nonaccrual Loans and Leases	942		970
Commercial Real Estate
Financing Receivable, Nonaccrual
Nonaccrual Loans and Leases With No Allowance for Credit Losses	2,685		2,685
Nonaccrual Loans and Leases	2,953		2,953
Residential mortgage
Financing Receivable, Nonaccrual
Nonaccrual Loans and Leases With No Allowance for Credit Losses	3,297		2,667
Nonaccrual Loans and Leases	7,777		7,620
Home equity Line
Financing Receivable, Nonaccrual
Nonaccrual Loans and Leases With No Allowance for Credit Losses	1,150		1,163
Nonaccrual Loans and Leases	$ 6,345		$ 7,052

Commitments and Contingent Liabilities - Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Financial instruments with off-balance sheet risk
Contract amount	$ 6,500,000	$ 6,500,000
Commitments to extend credit
Financial instruments with off-balance sheet risk
Contract amount	6,243,969	6,308,343
Standby letters of credit
Financial instruments with off-balance sheet risk
Contract amount	250,803	234,102
Commercial letters of credit
Financial instruments with off-balance sheet risk
Contract amount	$ 4,105	$ 3,629

Other Assets - Affordable Housing and Other Tax Credit Investment Partnerships (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Affordable housing and other tax credit investment partnership interests
Investment partnership interest	$ 207.4		$ 206.9
Affordable housing tax credits and other benefits recognized	9.6	$ 7.4
Included in other assets \| Provision for income taxes
Affordable housing and other tax credit investment partnership interests
Amortization	7.7	$ 6.1
Included in other liabilities \| VIEs, not primary beneficiary
Affordable housing and other tax credit investment partnership interests
Unfunded commitments to fund low-income housing partnerships	$ 77.2		$ 80.7

Fair Value - Changes in Fair Value Levels and in Level 3 Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Fair value
Amount of transfers between hierarchy levels	$ 0	$ 0
Visa derivative \| Visa Derivative
Changes in Level 3 liabilities measured at fair value on a recurring basis
Balance as of January 1,	(2,300)	(851)
Total net losses included in other noninterest income	(1,476)	(1,963)
Settlements	1,476	1,614
Balance as of December 31,	(2,300)	(1,200)
Total net losses included in net income attributable to the change in unrealized losses related to liabilities still held as of December 31,	$ (1,476)	$ (1,963)

Derivative Financial Instruments - Gains and Losses Recognized in Income, Fair Value Hedges (Details) - Loans and lease financing - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Interest rate swaps
Gains and losses related to derivatives
Recognized on interest rate swap	$ (627)	$ 1,189
Hedged item
Gains and losses related to derivatives
Recognized on hedged item	$ 619	$ (1,284)

Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Net of tax
Balance	$ 2,486,066	$ 2,269,005
Other comprehensive income (loss)	6,430	27,575
Balance	2,513,761	2,329,012
Accumulated other comprehensive Income (loss)
Net of tax
Balance	(530,210)	(639,254)
Other comprehensive income (loss)	6,430	27,575
Balance	(523,780)	(611,679)
Pensions and Other Benefits
Net of tax
Balance	(5,373)	(5,431)
Balance	(5,373)	(5,431)
Investment securities
Net of tax
Other comprehensive income (loss)	5,667	26,944
Available-for-sale Investment securities
Net of tax
Balance	(222,423)	(292,175)
Other comprehensive income (loss)	(2,517)	18,359
Balance	(224,940)	(273,816)
Held-to-Maturity Investment Securities
Net of tax
Balance	(301,611)	(336,946)
Other comprehensive income (loss)	8,184	8,585
Balance	(293,427)	(328,361)
Cash Flow Derivative Hedges.
Net of tax
Balance	(803)	(4,702)
Other comprehensive income (loss)	763	631
Balance	$ (40)	$ (4,071)

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

+ Details