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First Hawaiian Inc

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

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

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

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

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

First Quarter 2024 Highlights:

  • Net income of $54.2 million, or $0.42 per diluted share
  • Total loans and leases decreased $33.3 million versus prior quarter
  • Total deposits decreased $663.2 million versus prior quarter
  • Net interest margin increased 10 basis points to 2.91%
  • Recorded a $6.3 million provision for credit losses
  • $4.1 million FDIC special assessment included in expenses
  • Board of Directors declared a quarterly dividend of $0.26 per share

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Conference Call Information

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

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

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

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

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

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

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


           
  As of As of As of 
  March 31,  December 31,  March 31,  
(dollars in thousands, except per share data) 2024 2023 2023 
Balance Sheet Data:          
Loans and leases $ 14,320,208 $14,353,497 $14,221,272 
Total assets   24,279,186  24,926,474  24,884,207 
Total deposits   20,669,481  21,332,657  21,281,500 
Short-term borrowings   500,000  500,000  250,000 
Long-term borrowings   —  —  500,000 
Total stockholders' equity   2,513,761  2,486,066  2,329,012 
           
Per Share of Common Stock:          
Book value $ 19.66 $19.48 $18.26 
Tangible book value (non-GAAP)(2)   11.88  11.68  10.45 
           
Asset Quality Ratios:          
Non-accrual loans and leases / total loans and leases   0.13%  0.13% 0.10%
Allowance for credit losses for loans and leases / total loans and leases   1.12%  1.09% 1.03%
           
Capital Ratios:          
Common Equity Tier 1 Capital Ratio   12.55%  12.39% 11.97%
Tier 1 Capital Ratio   12.55%  12.39% 11.97%
Total Capital Ratio   13.75% 13.57% 13.09%
Tier 1 Leverage Ratio   8.80% 8.64% 8.26%
Total stockholders' equity to total assets   10.35% 9.97% 9.36%
Tangible stockholders' equity to tangible assets (non-GAAP)(2)   6.52% 6.23% 5.58%
           
Non-Financial Data:          
Number of branches   50  50  51 
Number of ATMs   275  275  296 
Number of Full-Time Equivalent Employees   2,065  2,089  2,100 

_____________________________

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

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

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


 
Consolidated Balance Sheets Table 3
  March 31,  December 31,  March 31, 
(dollars in thousands, except share amount) 2024
 2023
 2023
Assets         
Cash and due from banks $ 202,121  $185,015  $253,705 
Interest-bearing deposits in other banks   1,072,145   1,554,882   611,887 
Investment securities:         
Available-for-sale, at fair value (amortized cost: $2,466,109 as of March 31, 2024, $2,558,675 as of December 31, 2023 and $3,427,708 as of March 31, 2023)   2,159,338   2,255,336   3,054,280 
Held-to-maturity, at amortized cost (fair value: $3,470,710 as of March 31, 2024, $3,574,856 as of December 31, 2023 and $3,824,478 as of March 31, 2023)   3,988,011   4,041,449   4,261,361 
Loans held for sale   —   190   — 
Loans and leases   14,320,208   14,353,497   14,221,272 
Less: allowance for credit losses   159,836   156,533   147,122 
Net loans and leases   14,160,372   14,196,964   14,074,150 
          
Premises and equipment, net   281,181   281,461   278,121 
Other real estate owned and repossessed personal property   —   —   91 
Accrued interest receivable   85,715   84,417   79,200 
Bank-owned life insurance   484,193   479,907   473,255 
Goodwill   995,492   995,492   995,492 
Mortgage servicing rights   5,533   5,699   6,299 
Other assets   845,085   845,662   796,366 
Total assets $ 24,279,186  $24,926,474  $24,884,207 
Liabilities and Stockholders' Equity         
Deposits:         
Interest-bearing $ 13,620,928  $13,749,095  $12,579,155 
Noninterest-bearing   7,048,553   7,583,562   8,702,345 
Total deposits   20,669,481   21,332,657   21,281,500 
Short-term borrowings   500,000   500,000   250,000 
Long-term borrowings   —   —   500,000 
Retirement benefits payable   102,242   103,285   101,622 
Other liabilities   493,702   504,466   422,073 
Total liabilities   21,765,425   22,440,408   22,555,195 
          
Stockholders' equity         
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,687,612 / 127,841,908 shares as of March 31, 2024, issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023 and issued/outstanding: 141,291,086 / 127,573,680 shares as of March 31, 2023)   1,417   1,413   1,413 
Additional paid-in capital   2,551,488   2,548,250   2,540,653 
Retained earnings   858,494   837,859   769,791 
Accumulated other comprehensive loss, net   (523,780)  (530,210)  (611,679)
Treasury stock (13,845,704 shares as of March 31, 2024, 13,721,778 shares as of December 31, 2023 and 13,717,406 shares as of March 31, 2023)   (373,858)  (371,246)  (371,166)
Total stockholders' equity   2,513,761   2,486,066   2,329,012 
Total liabilities and stockholders' equity $ 24,279,186  $24,926,474  $24,884,207 
 


 
Average Balances and Interest Rates                       Table 4
  Three Months Ended  Three Months Ended  Three Months Ended  
  March 31, 2024 December 31, 2023 March 31, 2023 
  Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ 
(dollars in millions) Balance Expense Rate Balance Expense Rate Balance Expense Rate 
Earning Assets                         
Interest-Bearing Deposits in Other Banks $ 858.6 $ 11.6  5.45%$568.0 $7.8 5.39%$299.6 $3.4 4.60%
Available-for-Sale Investment Securities                         
Taxable   2,210.6   14.5  2.63  2,598.4  19.0 2.92  3,081.4  18.4 2.39 
Non-Taxable   1.8   —  5.61  1.9  — 5.12  31.1  0.4 5.55 
Held-to-Maturity Investment Securities                         
Taxable   3,416.4   14.6  1.71  3,472.1  14.8 1.70  3,683.8  15.7 1.70 
Non-Taxable   603.4   4.0  2.65  603.9  3.9 2.58  612.2  4.1 2.74 
Total Investment Securities   6,232.2   33.1  2.13  6,676.3  37.7 2.25  7,408.5  38.6 2.09 
Loans Held for Sale   0.7   —  6.92  0.7  — 7.41  0.1  — 5.53 
Loans and Leases(1)                         
Commercial and industrial   2,164.9   37.2  6.92  2,148.1  36.7 6.78  2,192.9  32.4 5.98 
Commercial real estate   4,323.5   70.1  6.53  4,356.3  71.4 6.51  4,105.7  58.3 5.76 
Construction   924.7   17.4  7.55  888.7  16.7 7.45  873.9  14.7 6.83 
Residential:                         
Residential mortgage   4,264.1   42.0  3.94  4,294.8  38.8 3.61  4,307.0  38.4 3.57 
Home equity line   1,172.1   12.0  4.13  1,174.8  11.3 3.83  1,074.9  8.7 3.27 
Consumer   1,083.5   18.1  6.71  1,132.4  18.4 6.43  1,213.5  17.2 5.75 
Lease financing   379.8   3.7  3.91  354.2  3.6 4.03  311.4  3.1 4.10 
Total Loans and Leases   14,312.6   200.5  5.63  14,349.3  196.9 5.45  14,079.3  172.8 4.96 
Other Earning Assets   77.8   1.2  5.90  94.5  — 0.06  85.8  0.2 0.76 
Total Earning Assets(2)   21,481.9   246.4  4.61  21,688.8  242.4 4.44  21,873.3  215.0 3.97 
Cash and Due from Banks   244.3       240.8       286.1      
Other Assets   2,461.0       2,475.1       2,388.7      
Total Assets $ 24,187.2      $24,404.7      $24,548.1      
                          
Interest-Bearing Liabilities                         
Interest-Bearing Deposits                         
Savings $ 6,059.7 $ 23.4  1.56%$6,067.2 $22.4 1.46% 6,354.3 $13.9 0.89%
Money Market   3,944.9   28.8  2.94  3,905.0  27.5 2.79  3,853.5  14.3 1.50 
Time   3,325.3   31.9  3.86  3,390.7  32.3 3.78  2,515.6  15.1 2.44 
Total Interest-Bearing Deposits   13,329.9   84.1  2.54  13,362.9  82.2 2.44  12,723.4  43.3 1.38 
Federal Funds Purchased   —   —  —  —  — —  67.1  0.7 4.43 
Other Short-Term Borrowings   500.0   6.0  4.79  515.2  6.2 4.80  52.8  0.7 5.02 
Long-Term Borrowings   —   —  —  —  — —  105.5  1.2 4.52 
Other Interest-Bearing Liabilities   33.0   0.4  5.22  42.1  0.8 7.44  42.8  0.4 4.27 
Total Interest-Bearing Liabilities   13,862.9   90.5  2.63  13,920.2  89.2 2.54  12,991.6  46.3 1.45 
Net Interest Income    $ 155.9      $153.2      $168.7   
Interest Rate Spread(3)        1.98%      1.90%      2.52%
Net Interest Margin(4)        2.91%      2.81%      3.11%
Noninterest-Bearing Demand Deposits   7,242.0       7,545.3       8,745.2      
Other Liabilities   585.5       564.5       511.9      
Stockholders' Equity   2,496.8       2,374.7       2,299.4      
Total Liabilities and Stockholders' Equity $ 24,187.2      $24,404.7      $24,548.1      

_____________________________

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

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

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

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

 
Analysis of Change in Net Interest Income        Table 5
  Three Months Ended March 31, 2024
  Compared to December 31, 2023
(dollars in millions) Volume Rate Total
Change in Interest Income:         
Interest-Bearing Deposits in Other Banks $ 3.8  $ —  $ 3.8 
Available-for-Sale Investment Securities         
Taxable   (2.7)   (1.8)   (4.5)
Held-to-Maturity Investment Securities         
Taxable   (0.3)   0.1    (0.2)
Non-Taxable   —    0.1    0.1 
Total Investment Securities   (3.0)   (1.6)   (4.6)
Loans and Leases         
Commercial and industrial   0.1    0.4    0.5 
Commercial real estate   (1.2)   (0.1)   (1.3)
Construction   0.5    0.2    0.7 
Residential:         
Residential mortgage   (0.3)   3.5    3.2 
Home equity line   —    0.7    0.7 
Consumer   (0.9)   0.6    (0.3)
Lease financing   0.2    (0.1)   0.1 
Total Loans and Leases   (1.6)   5.2    3.6 
Other Earning Assets   —    1.2    1.2 
Total Change in Interest Income   (0.8)   4.8    4.0 
          
Change in Interest Expense:         
Interest-Bearing Deposits         
Savings   (0.1)   1.1    1.0 
Money Market   0.2    1.1    1.3 
Time   (0.8)   0.4    (0.4)
Total Interest-Bearing Deposits   (0.7)   2.6    1.9 
Other Short-Term Borrowings   (0.2)   —    (0.2)
Other Interest-Bearing Liabilities   (0.2)   (0.2)   (0.4)
Total Change in Interest Expense   (1.1)   2.4    1.3 
Change in Net Interest Income $ 0.3  $ 2.4  $ 2.7 
 


 
Analysis of Change in Net Interest Income        Table 6
  Three Months Ended March 31, 2024
  Compared to March 31, 2023
(dollars in millions) Volume Rate Total
Change in Interest Income:         
Interest-Bearing Deposits in Other Banks $ 7.5  $ 0.7  $ 8.2 
Available-for-Sale Investment Securities         
Taxable   (5.6)   1.7    (3.9)
Non-Taxable   (0.4)   —    (0.4)
Held-to-Maturity Investment Securities         
Taxable   (1.2)   0.1    (1.1)
Non-Taxable   —    (0.1)   (0.1)
Total Investment Securities   (7.2)   1.7    (5.5)
Loans and Leases         
Commercial and industrial   (0.4)   5.2    4.8 
Commercial real estate   3.3    8.5    11.8 
Construction   1.0    1.7    2.7 
Residential:         
Residential mortgage   (0.4)   4.0    3.6 
Home equity line   0.8    2.5    3.3 
Consumer   (1.9)   2.8    0.9 
Lease financing   0.7    (0.1)   0.6 
Total Loans and Leases   3.1    24.6    27.7 
Other Earning Assets   —    1.0    1.0 
Total Change in Interest Income   3.4    28.0    31.4 
          
Change in Interest Expense:         
Interest-Bearing Deposits         
Savings   (0.7)   10.2    9.5 
Money Market   0.3    14.2    14.5 
Time   6.0    10.8    16.8 
Total Interest-Bearing Deposits   5.6    35.2    40.8 
Federal Funds Purchased   (0.3)   (0.4)   (0.7)
Other Short-Term Borrowings   5.3    —    5.3 
Long-Term Borrowings   (0.6)   (0.6)   (1.2)
Other Interest-Bearing Liabilities   (0.1)   0.1    — 
Total Change in Interest Expense   9.9    34.3    44.2 
Change in Net Interest Income $ (6.5) $ (6.3) $ (12.8)
 


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


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


 
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More        Table 9
  March 31,  December 31,  March 31, 
(dollars in thousands) 2024 2023 2023
Non-Performing Assets         
Non-Accrual Loans and Leases         
Commercial Loans:         
Commercial and industrial $ 942 $970 $1,158
Commercial real estate   2,953  2,953  727
Total Commercial Loans   3,895  3,923  1,885
Residential Loans:         
Residential mortgage   7,777  7,620  6,896
Home equity line   6,345  7,052  4,903
Total Residential Loans   14,122  14,672  11,799
Total Non-Accrual Loans and Leases   18,017  18,595  13,684
Other Real Estate Owned   —  —  91
Total Non-Performing Assets $ 18,017 $18,595 $13,775
          
Accruing Loans and Leases Past Due 90 Days or More         
Commercial Loans:         
Commercial and industrial $ 529 $494 $461
Commercial real estate   —  300  1,346
Construction   606  —  102
Total Commercial Loans   1,135  794  1,909
Residential mortgage   359  —  58
Consumer   2,126  2,702  2,502
Total Accruing Loans and Leases Past Due 90 Days or More $ 3,620 $3,496 $4,469
          
Total Loans and Leases $ 14,320,208 $14,353,497 $14,221,272
 


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

_____________________________

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

 
Loans and Leases by Year of Origination and Credit Quality Indicator  Table 11
                       Revolving   
                       Loans   
                       Converted   
  Term Loans Revolving to Term   
  Amortized Cost Basis by Origination Year Loans Loans   
                    Amortized Amortized   
(dollars in thousands) 2024 2023 2022 2021 2020 Prior Cost Basis 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   1   23,276   73   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   —   71   114   61   52   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   —   51   125   377   20   —   —   —   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 $ — $ 71 $ 114 $ 61 $ 52 $ 611 $ — $ — $ 909
 


 
                       Revolving   
                       Loans   
                       Converted   
  Term Loans Revolving to Term   
  Amortized Cost Basis by Origination Year Loans Loans   
(continued)                   Amortized Amortized   
(dollars in thousands) 2024 2023 2022 2021 2020 Prior Cost Basis Cost Basis Total
Residential Lending                           
Residential Mortgage                           
FICO:                           
740 and greater $ 28,332 $ 207,263 $ 524,402 $ 987,343 $ 521,598 $ 1,186,496 $ — $ — $ 3,455,434
680 - 739   1,525   36,569   67,192   115,481   67,662   158,890   —   —   447,319
620 - 679   910   2,910   16,268   19,056   12,733   41,573   —   —   93,450
550 - 619   —   1,303   6,506   1,903   2,477   11,685   —   —   23,874
Less than 550   —   —   —   2,894   2,006   6,686   —   —   11,586
No Score (3)   —   9,081   20,505   11,400   6,006   58,777   —   —   105,769
Other (2)   1,419   13,320   16,937   15,740   12,088   32,590   12,976   —   105,070
Total Residential Mortgage   32,186   270,446   651,810   1,153,817   624,570   1,496,697   12,976   —   4,242,502
Current period gross charge-offs   —   —   —   —   —   —   —   —   —
                            
Home Equity Line                           
FICO:                           
740 and greater   —   —   —   —   —   —   943,792   1,428   945,220
680 - 739   —   —   —   —   —   —   162,578   1,886   164,464
620 - 679   —   —   —   —   —   —   33,728   927   34,655
550 - 619   —   —   —   —   —   —   13,382   971   14,353
Less than 550   —   —   —   —   —   —   5,392   296   5,688
No Score (3)   —   —   —   —   —   —   1,398   —   1,398
Total Home Equity Line   —   —   —   —   —   —   1,160,270   5,508   1,165,778
Current period gross charge-offs   —   —   —   —   —   —   —   —   —
                            
Total Residential Lending $ 32,186 $ 270,446 $ 651,810 $ 1,153,817 $ 624,570 $ 1,496,697 $ 1,173,246 $ 5,508 $ 5,408,280
Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ —
                            
Consumer Lending                           
FICO:                           
740 and greater   18,671   82,551   113,914   66,175   28,100   22,442   116,198   138   448,189
680 - 739   13,464   64,229   64,623   33,167   14,755   13,951   75,151   439   279,779
620 - 679   4,293   28,729   27,210   15,641   6,793   10,003   35,179   791   128,639
550 - 619   620   6,973   11,551   7,621   4,025   6,289   13,452   795   51,326
Less than 550   110   2,634   6,734   5,075   2,837   4,179   5,782   646   27,997
No Score (3)   733   839   209   —   9   16   39,466   256   41,528
Other (2)   —   304   349   960   330   1,032   73,794   —   76,769
Total Consumer Lending $ 37,891 $ 186,259 $ 224,590 $ 128,639 $ 56,849 $ 57,912 $ 359,022 $ 3,065 $ 1,054,227
Current period gross charge-offs $ — $ 437 $ 904 $ 496 $ 272 $ 769 $ 1,789 $ 187 $ 4,854
                            
Total Loans and Leases $ 191,272 $ 1,230,117 $ 2,477,391 $ 2,601,761 $ 1,140,137 $ 3,927,591 $ 2,712,398 $ 39,541 $ 14,320,208
Current period gross charge-offs $ — $ 508 $ 1,018 $ 557 $ 324 $ 1,380 $ 1,789 $ 187 $ 5,763

_____________________________

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

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

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

 
GAAP to Non-GAAP Reconciliation Table 12
  For the Three Months Ended  
  March 31,  December 31,  March 31,  
(dollars in thousands) 2024 2023 2023 
Income Statement Data:          
Net income $ 54,220 $47,502 $66,818 
           
Average total stockholders' equity $ 2,496,840 $2,374,669 $2,299,422 
Less: average goodwill   995,492  995,492  995,492 
Average tangible stockholders' equity $ 1,501,348 $1,379,177 $1,303,930 
           
Average total assets $ 24,187,207 $24,404,727 $24,548,124 
Less: average goodwill   995,492  995,492  995,492 
Average tangible assets $ 23,191,715 $23,409,235 $23,552,632 
           
Return on average total stockholders' equity(1)   8.73%  7.94% 11.78%
Return on average tangible stockholders' equity (non-GAAP)(1)   14.53%  13.66% 20.78%
           
Return on average total assets(1)   0.90%  0.77% 1.10%
Return on average tangible assets (non-GAAP)(1)   0.94% 0.81% 1.15%


 
  As of As of As of 
  March 31,  December 31,  March 31,  
(dollars in thousands, except per share amounts) 2024 2023 2023 
Balance Sheet Data:          
Total stockholders' equity $ 2,513,761 $2,486,066 $2,329,012 
Less: goodwill   995,492  995,492  995,492 
Tangible stockholders' equity $ 1,518,269 $1,490,574 $1,333,520 
           
Total assets $ 24,279,186 $24,926,474 $24,884,207 
Less: goodwill   995,492  995,492  995,492 
Tangible assets $ 23,283,694 $23,930,982 $23,888,715 
           
Shares outstanding   127,841,908  127,618,761  127,573,680 
           
Total stockholders' equity to total assets   10.35% 9.97% 9.36%
Tangible stockholders' equity to tangible assets (non-GAAP)   6.52% 6.23% 5.58%
           
Book value per share $ 19.66 $19.48 $18.26 
Tangible book value per share (non-GAAP) $ 11.88 $11.68 $10.45 

_____________________________

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