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

HONOLULU, July 26, 2024 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended June 30, 2024.

“I’m pleased to report our strong financial results for the second quarter,” said Bob Harrison, Chairman, President, and CEO. “Our performance was driven by solid revenues, disciplined expense control and continued excellent credit quality. Additionally, we continued our support of the Maui community by partnering with the Federal Home Loan Bank of Des Moines to contribute a total of $1 million in relief funding for homeowners impacted by the Maui Wildfires.”

On July 24, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on August 30, 2024, to stockholders of record at the close of business on August 19, 2024.

Second Quarter 2024 Highlights:

Net income of $61.9 million, or $0.48 per diluted share
Total loans and leases increased $39.7 million versus prior quarter
Total deposits decreased $350.6 million versus prior quarter
Net interest margin increased 1 basis point to 2.92%
Recorded a $1.8 million provision for credit losses
Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet

Total assets were $24.0 billion as of June 30, 2024, a decrease of $287.4 million, or 1.2%, from $24.3 billion as of March 31, 2024.

Gross loans and leases were $14.4 billion as of June 30, 2024, an increase of $39.7 million, or 0.3%, from $14.3 billion as of March 31, 2024.

Total deposits were $20.3 billion as of June 30, 2024, a decrease of $350.6 million, or 1.7%, from $20.7 billion as of March 31, 2024.

Net Interest Income

Net interest income for the second quarter of 2024 was $152.9 million, a decrease of $1.6 million, or 1.0%, compared to $154.4 million for the prior quarter.

The net interest margin was 2.92% in the second quarter of 2024, an increase of 1 basis point compared to 2.91% in the prior quarter.

Provision Expense

During the quarter ended June 30, 2024, we recorded a $1.8 million provision for credit losses. In the quarter ended March 31, 2024, we recorded a $6.3 million provision for credit losses.

Noninterest Income

Noninterest income was $51.8 million in the second quarter of 2024, an increase of $0.4 million compared to noninterest income of $51.4 million in the prior quarter.

Noninterest Expense

Noninterest expense was $122.1 million in the second quarter of 2024, a decrease of $6.7 million compared to noninterest expense of $128.8 million in the prior quarter.

The efficiency ratio was 59.2% and 62.2% for the quarters ended June 30, 2024 and March 31, 2024, respectively.

Taxes

The effective tax rate was 23.3% for the quarters ended June 30, 2024 and March 31, 2024.

Asset Quality

The allowance for credit losses was $160.5 million, or 1.12% of total loans and leases, as of June 30, 2024, compared to $159.8 million, or 1.12% of total loans and leases, as of March 31, 2024. The reserve for unfunded commitments was $33.4 million as of June 30, 2024 compared to $34.8 million as of March 31, 2024. Net charge-offs were $2.5 million, or 0.07% of average loans and leases on an annualized basis, for the quarter ended June 30, 2024, compared to net charge-offs of $3.8 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended March 31, 2024. Total non-performing assets were $18.0 million, or 0.13% of total loans and leases and other real estate owned, as of both June 30, 2024 and March 31, 2024.

Capital

Total stockholders' equity increased $36.6 million in the second quarter, and stood at $2.6 billion on June 30, 2024 compared to $2.5 billion on March 31, 2024.

The tier 1 leverage, common equity tier 1 and total capital ratios were 9.03%, 12.73% and 13.92%, respectively, on June 30, 2024, compared with 8.80%, 12.55% and 13.75%, respectively, on March 31, 2024.

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

First Hawaiian, Inc.

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

Conference Call Information

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

To access the call by phone, please register via the following link:
https://register.vevent.com/register/BIa54af76e9f084d46ad036d683c1f6cd6, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

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

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.

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

Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.

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


Financial Highlights	Table 1
	For the Three Months Ended									For the Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands, except per share data)	2024			2024			2023			2024			2023
Operating Results:
Net interest income	$	152,851		$	154,427		$	159,939		$	307,278		$	327,186
Provision for credit losses		1,800			6,300			5,000			8,100			13,800
Noninterest income		51,768			51,371			47,348			103,139			96,371
Noninterest expense		122,086			128,813			120,881			250,899			239,448
Net income		61,921			54,220			62,442			116,141			129,260
Basic earnings per share		0.48			0.42			0.49			0.91			1.01
Diluted earnings per share		0.48			0.42			0.49			0.91			1.01
Dividends declared per share		0.26			0.26			0.26			0.52			0.52
Dividend payout ratio		54.17	%		61.90	%		53.06	%		57.14	%		51.49	%
Performance Ratios⁽¹⁾:
Net interest margin		2.92	%		2.91	%		2.91	%		2.91	%		3.01	%
Efficiency ratio		59.22	%		62.15	%		57.96	%		60.69	%		56.17	%
Return on average total assets		1.04	%		0.90	%		1.01	%		0.97	%		1.06	%
Return on average tangible assets (non-GAAP)⁽²⁾		1.08	%		0.94	%		1.05	%		1.01	%		1.10	%
Return on average total stockholders' equity		9.91	%		8.73	%		10.68	%		9.32	%		11.23	%
Return on average tangible stockholders' equity (non-GAAP)⁽²⁾		16.42	%		14.53	%		18.57	%		15.48	%		19.65	%
Average Balances:
Average loans and leases	$	14,358,049		$	14,312,563		$	14,283,222		$	14,335,306		$	14,181,842
Average earning assets		21,247,707			21,481,890			22,186,316			21,364,799			22,030,652
Average assets		23,958,913			24,187,207			24,821,486			24,073,060			24,685,560
Average deposits		20,308,028			20,571,930			21,057,259			20,439,979			21,261,805
Average stockholders' equity		2,512,471			2,496,840			2,344,285			2,504,656			2,321,977
Market Value Per Share:
Closing		20.76			21.96			18.01			20.76			18.01
High		22.68			23.12			21.00			23.12			28.28
Low		19.48			20.37			15.08			19.48			15.08

	As of			As of			As of			As of
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands, except per share data)	2024			2024			2023			2023
Balance Sheet Data:
Loans and leases	$	14,359,899		$	14,320,208		$	14,353,497		$	14,362,832
Total assets		23,991,791			24,279,186			24,926,474			24,511,566
Total deposits		20,318,832			20,669,481			21,332,657			21,078,166
Short-term borrowings		500,000			500,000			500,000			—
Long-term borrowings		—			—			—			500,000
Total stockholders' equity		2,550,312			2,513,761			2,486,066			2,359,738

Per Share of Common Stock:
Book value	$	19.94		$	19.66		$	19.48		$	18.49
Tangible book value (non-GAAP)⁽²⁾		12.16			11.88			11.68			10.69

Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases		0.13	%		0.13	%		0.13	%		0.09	%
Allowance for credit losses for loans and leases / total loans and leases		1.12	%		1.12	%		1.09	%		1.03	%

Capital Ratios:
Common Equity Tier 1 Capital Ratio		12.73	%		12.55	%		12.39	%		12.05	%
Tier 1 Capital Ratio		12.73	%		12.55	%		12.39	%		12.05	%
Total Capital Ratio		13.92	%		13.75	%		13.57	%		13.17	%
Tier 1 Leverage Ratio		9.03	%		8.80	%		8.64	%		8.30	%
Total stockholders' equity to total assets		10.63	%		10.35	%		9.97	%		9.63	%
Tangible stockholders' equity to tangible assets (non-GAAP)⁽²⁾		6.76	%		6.52	%		6.23	%		5.80	%

Non-Financial Data:
Number of branches		48			50			50			51
Number of ATMs		272			275			275			296
Number of Full-Time Equivalent Employees		2,032			2,065			2,089			2,126

______________________

⁽¹⁾	Except for the efficiency ratio, amounts are annualized for the three and six months ended June 30, 2024 and 2023 and three months ended March 31, 2024.
⁽²⁾	Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation.

Consolidated Statements of Income	Table 2
	For the Three Months Ended						For the Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(dollars in thousands, except per share amounts)	2024		2024		2023		2024		2023
Interest income
Loans and lease financing	$	202,068	$	199,844	$	185,340	$	401,912	$	357,679
Available-for-sale investment securities		14,143		14,546		18,094		28,689		36,782
Held-to-maturity investment securities		17,575		17,793		18,282		35,368		37,239
Other		11,148		12,769		7,489		23,917		11,050
Total interest income		244,934		244,952		229,205		489,886		442,750
Interest expense
Deposits		85,609		84,143		58,071		169,752		101,355
Short-term and long-term borrowings		5,953		5,953		10,656		11,906		13,219
Other		521		429		539		950		990
Total interest expense		92,083		90,525		69,266		182,608		115,564
Net interest income		152,851		154,427		159,939		307,278		327,186
Provision for credit losses		1,800		6,300		5,000		8,100		13,800
Net interest income after provision for credit losses		151,051		148,127		154,939		299,178		313,386
Noninterest income
Service charges on deposit accounts		7,793		7,546		7,246		15,339		14,477
Credit and debit card fees		15,861		16,173		15,461		32,034		31,759
Other service charges and fees		11,036		9,904		9,056		20,940		18,218
Trust and investment services income		9,426		10,354		9,448		19,780		19,062
Bank-owned life insurance		3,360		4,286		3,271		7,646		8,391
Other		4,292		3,108		2,866		7,400		4,464
Total noninterest income		51,768		51,371		47,348		103,139		96,371
Noninterest expense
Salaries and employee benefits		57,737		59,262		57,904		116,999		113,936
Contracted services and professional fees		16,067		15,739		17,498		31,806		33,811
Occupancy		7,377		6,941		7,554		14,318		15,336
Equipment		13,196		13,413		11,000		26,609		20,736
Regulatory assessment and fees		3,814		8,120		3,676		11,934		7,512
Advertising and marketing		1,765		2,612		1,891		4,377		3,885
Card rewards program		8,719		8,508		7,681		17,227		15,766
Other		13,411		14,218		13,677		27,629		28,466
Total noninterest expense		122,086		128,813		120,881		250,899		239,448
Income before provision for income taxes		80,733		70,685		81,406		151,418		170,309
Provision for income taxes		18,812		16,465		18,964		35,277		41,049
Net income	$	61,921	$	54,220	$	62,442	$	116,141	$	129,260
Basic earnings per share	$	0.48	$	0.42	$	0.49	$	0.91	$	1.01
Diluted earnings per share	$	0.48	$	0.42	$	0.49	$	0.91	$	1.01
Basic weighted-average outstanding shares		127,867,853		127,707,354		127,591,371		127,787,663		127,522,975
Diluted weighted-average outstanding shares		128,262,594		128,217,689		127,832,351		128,279,917		127,901,225

Consolidated Balance Sheets	Table 3
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands, except share amount)	2024			2024			2023			2023
Assets
Cash and due from banks	$	290,501		$	202,121		$	185,015		$	318,333
Interest-bearing deposits in other banks		824,258			1,072,145			1,554,882			239,798
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,379,004 as of June 30, 2024, $2,466,109 as of March 31, 2024, $2,558,675 as of December 31, 2023 and $3,296,825 as of June 30, 2023)		2,067,956			2,159,338			2,255,336			2,909,372
Held-to-maturity, at amortized cost (fair value: $3,401,006 as of June 30, 2024, $3,470,710 as of March 31, 2024, $3,574,856 as of December 31, 2023 and $3,697,261 as of June 30, 2023)		3,917,175			3,988,011			4,041,449			4,180,408
Loans held for sale		2,820			—			190			—
Loans and leases		14,359,899			14,320,208			14,353,497			14,362,832
Less: allowance for credit losses		160,517			159,836			156,533			148,581
Net loans and leases		14,199,382			14,160,372			14,196,964			14,214,251

Premises and equipment, net		283,762			281,181			281,461			277,817
Accrued interest receivable		82,512			85,715			84,417			80,710
Bank-owned life insurance		486,261			484,193			479,907			476,177
Goodwill		995,492			995,492			995,492			995,492
Mortgage servicing rights		5,395			5,533			5,699			6,072
Other assets		836,277			845,085			845,662			813,136
Total assets	$	23,991,791		$	24,279,186		$	24,926,474		$	24,511,566
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing	$	13,461,365		$	13,620,928		$	13,749,095		$	12,911,539
Noninterest-bearing		6,857,467			7,048,553			7,583,562			8,166,627
Total deposits		20,318,832			20,669,481			21,332,657			21,078,166
Short-term borrowings		500,000			500,000			500,000			—
Long-term borrowings		—			—			—			500,000
Retirement benefits payable		101,304			102,242			103,285			100,671
Other liabilities		521,343			493,702			504,466			472,991
Total liabilities		21,441,479			21,765,425			22,440,408			22,151,828

Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,728,446 / 127,879,012 shares as of June 30, 2024, issued/outstanding: 141,687,612 / 127,841,908 shares as of March 31, 2024, issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023 and issued/outstanding: 141,327,860 / 127,608,037 shares as of June 30, 2023)		1,417			1,417			1,413			1,413
Additional paid-in capital		2,554,795			2,551,488			2,548,250			2,543,226
Retained earnings		887,176			858,494			837,859			799,045
Accumulated other comprehensive loss, net		(519,132	)		(523,780	)		(530,210	)		(612,736	)
Treasury stock (13,849,434 shares as of June 30, 2024, 13,845,704 shares as of March 31, 2024, 13,721,778 shares as of December 31, 2023 and 13,719,823 shares as of June 30, 2023)		(373,944	)		(373,858	)		(371,246	)		(371,210	)
Total stockholders' equity		2,550,312			2,513,761			2,486,066			2,359,738
Total liabilities and stockholders' equity	$	23,991,791		$	24,279,186		$	24,926,474		$	24,511,566

Average Balances and Interest Rates													Table 4
	Three Months Ended						Three Months Ended						Three Months Ended
	June 30, 2024						March 31, 2024						June 30, 2023
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	773.4	$	10.5	5.45	%	$	858.6	$	11.6	5.45	%	$	569.3	$	7.2	5.07	%
Available-for-Sale Investment Securities
Taxable		2,100.7		14.1	2.69			2,210.6		14.5	2.63			2,978.6		18.0	2.42
Non-Taxable		1.5		—	5.76			1.8		—	5.61			5.8		0.1	5.74
Held-to-Maturity Investment Securities
Taxable		3,358.2		14.4	1.71			3,416.4		14.6	1.71			3,618.7		15.3	1.69
Non-Taxable		602.9		4.0	2.64			603.4		4.0	2.65			610.4		3.7	2.46
Total Investment Securities		6,063.3		32.5	2.15			6,232.2		33.1	2.13			7,213.5		37.1	2.06
Loans Held for Sale		1.0		—	6.58			0.7		—	6.92			0.5		—	5.87
Loans and Leases⁽¹⁾
Commercial and industrial		2,201.6		38.1	6.96			2,164.9		37.2	6.92			2,265.7		36.2	6.41
Commercial real estate		4,305.6		71.5	6.68			4,323.5		70.1	6.53			4,183.6		64.9	6.22
Construction		984.8		18.5	7.57			924.7		17.4	7.55			874.3		15.2	6.96
Residential:
Residential mortgage		4,229.4		40.1	3.80			4,264.1		42.0	3.94			4,314.0		39.1	3.62
Home equity line		1,164.2		12.6	4.35			1,172.1		12.0	4.13			1,119.3		9.2	3.31
Consumer		1,054.1		17.7	6.74			1,083.5		18.1	6.71			1,196.6		17.7	5.92
Lease financing		418.3		4.3	4.09			379.8		3.7	3.91			329.7		3.6	4.43
Total Loans and Leases		14,358.0		202.8	5.67			14,312.6		200.5	5.63			14,283.2		185.9	5.22
Other Earning Assets		52.0		0.7	5.25			77.8		1.2	5.90			119.8		0.3	0.99
Total Earning Assets⁽²⁾		21,247.7		246.5	4.66			21,481.9		246.4	4.61			22,186.3		230.5	4.16
Cash and Due from Banks		240.4						244.3						257.9
Other Assets		2,470.8						2,461.0						2,377.3
Total Assets	$	23,958.9					$	24,187.2					$	24,821.5

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	6,000.4	$	23.4	1.57	%	$	6,059.7	$	23.4	1.56	%		6,099.4	$	16.1	1.05	%
Money Market		4,076.7		30.6	3.02			3,944.9		28.8	2.94			3,809.8		19.6	2.07
Time		3,284.3		31.6	3.87			3,325.3		31.9	3.86			2,877.8		22.4	3.12
Total Interest-Bearing Deposits		13,361.4		85.6	2.58			13,329.9		84.1	2.54			12,787.0		58.1	1.82
Federal Funds Purchased		—		—	—			—		—	—			2.9		—	5.00
Other Short-Term Borrowings		500.0		6.0	4.79			500.0		6.0	4.79			362.9		4.7	5.16
Long-Term Borrowings		—		—	—			—		—	—			500.0		6.0	4.78
Other Interest-Bearing Liabilities		38.2		0.5	5.48			33.0		0.4	5.22			54.0		0.5	4.00
Total Interest-Bearing Liabilities		13,899.6		92.1	2.66			13,862.9		90.5	2.63			13,706.8		69.3	2.03
Net Interest Income			$	154.4					$	155.9					$	161.2
Interest Rate Spread⁽³⁾					2.00	%					1.98	%					2.13	%
Net Interest Margin⁽⁴⁾					2.92	%					2.91	%					2.91	%
Noninterest-Bearing Demand Deposits		6,946.6						7,242.0						8,270.3
Other Liabilities		600.2						585.5						500.1
Stockholders' Equity		2,512.5						2,496.8						2,344.3
Total Liabilities and Stockholders' Equity	$	23,958.9					$	24,187.2					$	24,821.5

______________________

⁽¹⁾	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
⁽²⁾	Interest income includes taxable-equivalent basis adjustments of $1.5 million, $1.5 million and $1.3 million for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively.
⁽³⁾	Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.
⁽⁴⁾	Net interest margin is net interest income annualized for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, on a fully taxable-equivalent basis, divided by average total earning assets.

Average Balances and Interest Rates							Table 5
	Six Months Ended						Six Months Ended
	June 30, 2024						June 30, 2023
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	815.9	$	22.1	5.45	%	$	435.2	$	10.6	4.91	%
Available-for-Sale Investment Securities
Taxable		2,155.7		28.7	2.66			3,029.7		36.4	2.41
Non-Taxable		1.6		—	5.68			18.4		0.5	5.58
Held-to-Maturity Investment Securities
Taxable		3,387.3		29.0	1.71			3,651.1		30.9	1.70
Non-Taxable		603.2		7.9	2.65			611.3		7.9	2.60
Total Investment Securities		6,147.8		65.6	2.14			7,310.5		75.7	2.08
Loans Held for Sale		0.9		—	6.72			0.3		—	5.79
Loans and Leases⁽¹⁾
Commercial and industrial		2,183.3		75.3	6.94			2,229.5		68.6	6.20
Commercial real estate		4,314.6		141.7	6.60			4,144.9		123.2	5.99
Construction		954.8		35.9	7.56			874.1		29.9	6.89
Residential:
Residential mortgage		4,246.7		82.1	3.87			4,310.5		77.5	3.59
Home equity line		1,168.1		24.7	4.24			1,097.2		17.9	3.29
Consumer		1,068.8		35.7	6.72			1,205.0		34.8	5.84
Lease financing		399.0		8.0	4.00			320.6		6.8	4.27
Total Loans and Leases		14,335.3		403.4	5.65			14,181.8		358.7	5.09
Other Earning Assets		64.9		1.8	5.64			102.9		0.5	0.90
Total Earning Assets⁽²⁾		21,364.8		492.9	4.63			22,030.7		445.5	4.07
Cash and Due from Banks		242.4						271.9
Other Assets		2,465.9						2,383.0
Total Assets	$	24,073.1					$	24,685.6

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	6,030.1	$	46.9	1.56	%	$	6,226.2	$	30.0	0.97	%
Money Market		4,010.8		59.4	2.98			3,831.5		33.9	1.78
Time		3,304.8		63.5	3.86			2,697.7		37.5	2.80
Total Interest-Bearing Deposits		13,345.7		169.8	2.56			12,755.4		101.4	1.60
Federal Funds Purchased		—		—	—			34.8		0.8	4.45
Other Short-Term Borrowings		500.0		11.9	4.79			208.7		5.3	5.14
Long-Term Borrowings		—		—	—			303.8		7.1	4.73
Other Interest-Bearing Liabilities		35.6		0.9	5.36			48.5		1.0	4.12
Total Interest-Bearing Liabilities		13,881.3		182.6	2.65			13,351.2		115.6	1.75
Net Interest Income			$	310.3					$	329.9
Interest Rate Spread⁽³⁾					1.98	%					2.32	%
Net Interest Margin⁽⁴⁾					2.91	%					3.01	%
Noninterest-Bearing Demand Deposits		7,094.3						8,506.4
Other Liabilities		592.8						506.0
Stockholders' Equity		2,504.7						2,322.0
Total Liabilities and Stockholders' Equity	$	24,073.1					$	24,685.6

______________________

⁽¹⁾	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
⁽²⁾	Interest income includes taxable-equivalent basis adjustments of $3.0 million and $2.7 million for the six months ended June 30, 2024 and 2023, respectively.
⁽³⁾	Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.
⁽⁴⁾	Net interest margin is net interest income annualized for the six months ended June 30, 2024 and 2023, on a fully taxable-equivalent basis, divided by average total earning assets.

Analysis of Change in Net Interest Income

Table 6

Three Months Ended June 30, 2024

Compared to March 31, 2024

(dollars in millions)

Volume

Rate

Total

Change in Interest Income:

Interest-Bearing Deposits in Other Banks

(1.1

)

—

(1.1

)

Available-for-Sale Investment Securities

Taxable

(0.7

)

0.3

(0.4

)

Held-to-Maturity Investment Securities

Taxable

(0.2

)

—

(0.2

)

Total Investment Securities

(0.9

)

0.3

(0.6

)

Loans and Leases

Commercial and industrial

0.7

0.2

0.9

Commercial real estate

(0.3

)

1.7

1.4

Construction

1.1

—

1.1

Residential:

Residential mortgage

(0.4

)

(1.5

)

(1.9

)

Home equity line

(0.1

)

0.7

0.6

Consumer

(0.5

)

0.1

(0.4

)

Lease financing

0.4

0.2

0.6

Total Loans and Leases

0.9

1.4

2.3

Other Earning Assets

(0.4

)

(0.1

)

(0.5

)

Total Change in Interest Income

(1.5

)

1.6

0.1

Change in Interest Expense:

Interest-Bearing Deposits

Savings

(0.2

)

0.2

—

Money Market

1.0

0.8

1.8

Time

(0.4

)

0.1

(0.3

)

Total Interest-Bearing Deposits

0.4

1.1

1.5

Other Interest-Bearing Liabilities

0.1

—

0.1

Total Change in Interest Expense

0.5

1.1

1.6

Change in Net Interest Income

(2.0

)

0.5

(1.5

)

Analysis of Change in Net Interest Income

Table 7

Three Months Ended June 30, 2024

Compared to June 30, 2023

(dollars in millions)

Volume

Rate

Total

Change in Interest Income:

Interest-Bearing Deposits in Other Banks

2.7

0.6

3.3

Available-for-Sale Investment Securities

Taxable

(5.7

)

1.8

(3.9

)

Non-Taxable

(0.1

)

—

(0.1

)

Held-to-Maturity Investment Securities

Taxable

(1.1

)

0.2

(0.9

)

Non-Taxable

—

0.3

Total Investment Securities

(6.9

)

2.3

(4.6

)

Loans and Leases

Commercial and industrial

(1.1

)

3.0

1.9

Commercial real estate

1.9

4.7

6.6

Construction

2.0

1.3

3.3

Residential:

Residential mortgage

(0.8

)

1.8

1.0

Home equity line

0.4

3.0

3.4

Consumer

(2.3

)

2.3

—

Lease financing

0.9

(0.2

)

0.7

Total Loans and Leases

1.0

15.9

16.9

Other Earning Assets

(0.2

)

0.6

0.4

Total Change in Interest Income

(3.4

)

19.4

16.0

Change in Interest Expense:

Interest-Bearing Deposits

Savings

(0.3

)

7.6

7.3

Money Market

1.5

9.5

11.0

Time

3.4

5.8

9.2

Total Interest-Bearing Deposits

4.6

22.9

27.5

Other Short-Term Borrowings

1.7

(0.4

)

1.3

Long-Term Borrowings

(3.0

)

(3.0

)

(6.0

)

Other Interest-Bearing Liabilities

(0.2

)

0.2

—

Total Change in Interest Expense

3.1

19.7

22.8

Change in Net Interest Income

(6.5

)

(0.3

)

(6.8

)

Analysis of Change in Net Interest Income

Table 8

Six Months Ended June 30, 2024

Compared to June 30, 2023

(dollars in millions)

Volume

Rate

Total

Change in Interest Income:

Interest-Bearing Deposits in Other Banks

10.2

1.3

11.5

Available-for-Sale Investment Securities

Taxable

(11.2

)

3.5

(7.7

)

Non-Taxable

(0.5

)

—

(0.5

)

Held-to-Maturity Investment Securities

Taxable

(2.1

)

0.2

(1.9

)

Non-Taxable

(0.1

)

0.1

—

Total Investment Securities

(13.9

)

3.8

(10.1

)

Loans and Leases

Commercial and industrial

(1.4

)

8.1

6.7

Commercial real estate

5.3

13.2

18.5

Construction

2.9

3.1

6.0

Residential:

Residential mortgage

(1.2

)

5.8

4.6

Home equity line

1.3

5.5

6.8

Consumer

(4.1

)

5.0

0.9

Lease financing

1.6

(0.4

)

1.2

Total Loans and Leases

4.4

40.3

44.7

Other Earning Assets

(0.3

)

1.6

1.3

Total Change in Interest Income

0.4

47.0

47.4

Change in Interest Expense:

Interest-Bearing Deposits

Savings

(1.0

)

17.9

16.9

Money Market

1.7

23.8

25.5

Time

9.7

16.3

26.0

Total Interest-Bearing Deposits

10.4

58.0

68.4

Federal Funds Purchased

(0.4

)

(0.4

)

(0.8

)

Other Short-Term Borrowings

7.0

(0.4

)

6.6

Long-Term Borrowings

(3.6

)

(3.5

)

(7.1

)

Other Interest-Bearing Liabilities

(0.3

)

0.2

(0.1

)

Total Change in Interest Expense

13.1

53.9

67.0

Change in Net Interest Income

(12.7

)

(6.9

)

(19.6

)

Loans and Leases	Table 9
	June 30,		March 31,		December 31,		June 30,
(dollars in thousands)	2024		2024		2023		2023
Commercial and industrial	$	2,208,690	$	2,189,875		2,165,349	$	2,187,831
Commercial real estate		4,305,017		4,301,300		4,340,243		4,290,948
Construction		1,017,649		972,517		900,292		913,837
Residential:
Residential mortgage		4,216,416		4,242,502		4,283,315		4,317,537
Home equity line		1,159,833		1,165,778		1,174,588		1,138,163
Total residential		5,376,249		5,408,280		5,457,903		5,455,700
Consumer		1,027,104		1,054,227		1,109,901		1,182,116
Lease financing		425,190		394,009		379,809		332,400
Total loans and leases	$	14,359,899	$	14,320,208	$	14,353,497	$	14,362,832

Deposits	Table 10
	June 30,		March 31,		December 31,		June 30,
(dollars in thousands)	2024		2024		2023		2023
Demand	$	6,857,467	$	7,048,553	$	7,583,562	$	8,166,627
Savings		6,055,051		6,277,679		6,445,084		5,835,975
Money Market		4,111,609		4,059,204		3,847,853		3,767,792
Time		3,294,705		3,284,045		3,456,158		3,307,772
Total Deposits	$	20,318,832	$	20,669,481	$	21,332,657	$	21,078,166

Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More	Table 11
	June 30,		March 31,		December 31,		June 30,
(dollars in thousands)	2024		2024		2023		2023
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial	$	1,084	$	942	$	970	$	1,024
Commercial real estate		3,085		2,953		2,953		—
Construction		447		—		—		—
Total Commercial Loans		4,616		3,895		3,923		1,024
Residential Loans:
Residential mortgage		7,273		7,777		7,620		6,097
Home equity line		6,124		6,345		7,052		6,107
Total Residential Loans		13,397		14,122		14,672		12,204
Total Non-Accrual Loans and Leases		18,013		18,017		18,595		13,228
Total Non-Performing Assets	$	18,013	$	18,017	$	18,595	$	13,228

Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial	$	110	$	529	$	494	$	599
Commercial real estate		—		—		300		619
Construction		—		606		—		—
Total Commercial Loans		110		1,135		794		1,218
Residential mortgage		1,820		359		—		58
Consumer		1,835		2,126		2,702		1,975
Total Accruing Loans and Leases Past Due 90 Days or More	$	3,765	$	3,620	$	3,496	$	3,251

Total Loans and Leases	$	14,359,899	$	14,320,208	$	14,353,497	$	14,362,832

Allowance for Credit Losses and Reserve for Unfunded Commitments	Table 12
	For the Three Months Ended												For the Six Months Ended
	June 30,				March 31,				June 30,				June 30,				June 30,
(dollars in thousands)	2024				2024				2023				2024				2023
Balance at Beginning of Period	$	194,649			$	192,138			$	183,321			$	192,138			$	177,735
Loans and Leases Charged-Off
Commercial and industrial		(677	)			(909	)			(997	)			(1,586	)			(1,788	)
Residential Loans:
Residential mortgage		—				—				—				—				(122	)
Home equity line		—				—				(137	)			—				(272	)
Total Residential Loans		—				—				(137	)			—				(394	)
Consumer		(4,182	)			(4,854	)			(4,516	)			(9,036	)			(9,298	)
Total Loans and Leases Charged-Off		(4,859	)			(5,763	)			(5,650	)			(10,622	)			(11,480	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial and industrial		250				211				292				461				538
Residential Loans:
Residential mortgage		28				30				30				58				57
Home equity line		112				44				59				156				236
Total Residential Loans		140				74				89				214				293
Consumer		1,950				1,689				1,728				3,639				3,894
Total Recoveries on Loans and Leases Previously Charged-Off		2,340				1,974				2,109				4,314				4,725
Net Loans and Leases Charged-Off		(2,519	)			(3,789	)			(3,541	)			(6,308	)			(6,755	)
Provision for Credit Losses		1,800				6,300				5,000				8,100				13,800
Balance at End of Period	$	193,930			$	194,649			$	184,780			$	193,930			$	184,780
Components:
Allowance for Credit Losses	$	160,517			$	159,836			$	148,581			$	160,517			$	148,581
Reserve for Unfunded Commitments		33,413				34,813				36,199				33,413				36,199
Total Allowance for Credit Losses and Reserve for Unfunded Commitments	$	193,930			$	194,649			$	184,780			$	193,930			$	184,780
Average Loans and Leases Outstanding	$	14,358,049			$	14,312,563			$	14,283,222			$	14,335,306			$	14,181,842
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding⁽¹⁾		0.07		%		0.11		%		0.10		%		0.09		%		0.10		%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding		1.12		%		1.12		%		1.03		%		1.12		%		1.03		%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases		8.91x				8.87x				11.23x				8.91x				11.23x

______________________

⁽¹⁾	Annualized for the three and six months ended June 30, 2024 and 2023 and three months ended March 31, 2024.

Loans and Leases by Year of Origination and Credit Quality Indicator

Table 13

Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

Amortized

(dollars in thousands)

2024

2023

2022

2021

2020

Prior

Cost Basis

Total

Commercial Lending

Commercial and Industrial

Risk rating:

Pass

66,318

88,879

228,354

276,824

23,556

274,582

1,101,721

3,199

2,063,433

Special Mention

315

10,547

564

1,313

18,727

—

31,521

Substandard

—

6,230

242

417

2,038

23,145

—

32,072

Other ⁽¹⁾

9,351

11,580

8,737

3,632

1,696

1,792

44,876

—

81,664

Total Commercial and Industrial

75,984

100,460

253,868

280,752

26,233

279,725

1,188,469

3,199

2,208,690

Current period gross charge-offs

—

216

319

938

—

1,586

Commercial Real Estate

Risk rating:

Pass

98,062

347,143

863,033

676,256

331,737

1,798,626

89,069

6,910

4,210,836

Special Mention

3,338

2,275

7,565

41,369

1,353

19,329

6,965

—

82,194

Substandard

—

5,016

1,003

—

5,331

499

—

11,849

Other ⁽¹⁾

—

138

—

138

Total Commercial Real Estate

101,400

349,418

875,614

718,628

333,090

1,823,424

96,533

6,910

4,305,017

Current period gross charge-offs

—

Construction

Risk rating:

Pass

35,785

206,622

348,241

256,821

59,453

61,308

10,800

—

979,030

Special Mention

—

825

—

825

Other ⁽¹⁾

2,177

9,963

13,622

4,951

1,199

5,176

706

—

37,794

Total Construction

37,962

216,585

361,863

261,772

60,652

67,309

11,506

—

1,017,649

Current period gross charge-offs

—

Lease Financing

Risk rating:

Pass

105,719

107,492

72,986

16,419

25,908

90,013

—

418,537

Special Mention

—

113

338

—

510

Substandard

5,136

639

368

—

6,143

Total Lease Financing

110,855

108,178

73,467

16,757

25,920

90,013

—

425,190

Current period gross charge-offs

—

Total Commercial Lending

326,201

774,641

1,564,812

1,277,909

445,895

2,260,471

1,296,508

10,109

7,956,546

Current period gross charge-offs

—

216

319

938

—

1,586

															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	$	70,514	$	210,915	$	514,686	$	975,554	$	505,850	$	1,165,042	$	—	$	—	$	3,442,561
680 - 739		9,653		27,661		64,910		109,306		68,491		150,793		—		—		430,814
620 - 679		813		1,619		18,125		20,117		16,097		35,943		—		—		92,714
550 - 619		—		2,045		6,336		3,822		2,853		12,349		—		—		27,405
Less than 550		—		—		2,689		3,939		2,833		8,662		—		—		18,123
No Score ⁽³⁾		544		8,300		18,472		10,601		5,804		54,420		—		—		98,141
Other ⁽²⁾		7,384		13,003		16,802		15,582		11,331		30,245		12,311		—		106,658
Total Residential Mortgage		88,908		263,543		642,020		1,138,921		613,259		1,457,454		12,311		—		4,216,416
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		937,349		1,244		938,593
680 - 739		—		—		—		—		—		—		158,877		1,713		160,590
620 - 679		—		—		—		—		—		—		38,362		1,362		39,724
550 - 619		—		—		—		—		—		—		13,065		457		13,522
Less than 550		—		—		—		—		—		—		5,455		620		6,075
No Score ⁽³⁾		—		—		—		—		—		—		1,329		—		1,329
Total Home Equity Line		—		—		—		—		—		—		1,154,437		5,396		1,159,833
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Total Residential Lending	$	88,908	$	263,543	$	642,020	$	1,138,921	$	613,259	$	1,457,454	$	1,166,748	$	5,396	$	5,376,249
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer Lending
FICO:
740 and greater		40,216		77,383		104,378		59,698		23,380		16,094		117,299		154		438,602
680 - 739		29,906		57,534		58,142		28,100		12,379		10,584		75,643		466		272,754
620 - 679		12,113		22,995		23,172		13,871		5,939		7,729		34,769		777		121,365
550 - 619		1,882		7,706		11,366		6,837		3,455		4,719		13,096		843		49,904
Less than 550		682		3,242		6,673		4,278		2,189		3,189		5,249		591		26,093
No Score ⁽³⁾		1,730		457		135		—		9		22		40,193		216		42,762
Other ⁽²⁾		—		—		330		936		324		1,008		73,026		—		75,624
Total Consumer Lending	$	86,529	$	169,317	$	204,196	$	113,720	$	47,675	$	43,345	$	359,275	$	3,047	$	1,027,104
Current period gross charge-offs	$	—	$	941	$	1,437	$	800	$	345	$	1,471	$	3,652	$	390	$	9,036

Total Loans and Leases	$	501,638	$	1,207,501	$	2,411,028	$	2,530,550	$	1,106,829	$	3,761,270	$	2,822,531	$	18,552	$	14,359,899
Current period gross charge-offs	$	—	$	1,157	$	1,756	$	861	$	397	$	2,409	$	3,652	$	390	$	10,622

______________________

⁽¹⁾	Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score.
⁽²⁾	Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating.
⁽³⁾	No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.

GAAP to Non-GAAP Reconciliation	Table 14
	For the Three Months Ended									For the Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands)	2024			2024			2023			2024			2023
Income Statement Data:
Net income	$	61,921		$	54,220		$	62,442		$	116,141		$	129,260

Average total stockholders' equity	$	2,512,471		$	2,496,840		$	2,344,285		$	2,504,656		$	2,321,977
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible stockholders' equity	$	1,516,979		$	1,501,348		$	1,348,793		$	1,509,164		$	1,326,485

Average total assets	$	23,958,913		$	24,187,207		$	24,821,486		$	24,073,060		$	24,685,560
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible assets	$	22,963,421		$	23,191,715		$	23,825,994		$	23,077,568		$	23,690,068

Return on average total stockholders' equity⁽¹⁾		9.91	%		8.73	%		10.68	%		9.32	%		11.23	%
Return on average tangible stockholders' equity (non-GAAP)⁽¹⁾		16.42	%		14.53	%		18.57	%		15.48	%		19.65	%

Return on average total assets⁽¹⁾		1.04	%		0.90	%		1.01	%		0.97	%		1.06	%
Return on average tangible assets (non-GAAP)⁽¹⁾		1.08	%		0.94	%		1.05	%		1.01	%		1.10	%

	As of			As of			As of			As of
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands, except per share amounts)	2024			2024			2023			2023
Balance Sheet Data:
Total stockholders' equity	$	2,550,312		$	2,513,761		$	2,486,066		$	2,359,738
Less: goodwill		995,492			995,492			995,492			995,492
Tangible stockholders' equity	$	1,554,820		$	1,518,269		$	1,490,574		$	1,364,246

Total assets	$	23,991,791		$	24,279,186		$	24,926,474		$	24,511,566
Less: goodwill		995,492			995,492			995,492			995,492
Tangible assets	$	22,996,299		$	23,283,694		$	23,930,982		$	23,516,074

Shares outstanding		127,879,012			127,841,908			127,618,761			127,608,037

Total stockholders' equity to total assets		10.63	%		10.35	%		9.97	%		9.63	%
Tangible stockholders' equity to tangible assets (non-GAAP)		6.76	%		6.52	%		6.23	%		5.80	%

Book value per share	$	19.94		$	19.66		$	19.48		$	18.49
Tangible book value per share (non-GAAP)	$	12.16		$	11.88		$	11.68		$	10.69