• First Hawaiian, Inc. Reports Third Quarter 2023 Financial Results and Declares Dividend

    ソース: Nasdaq GlobeNewswire / 27 10 2023 08:00:01   America/New_York

    HONOLULU, Oct. 27, 2023 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended September 30, 2023.

    “I’m pleased to report that we delivered strong results in the third quarter.  Our loan balances were stable, we grew consumer and commercial deposits, and credit quality remained excellent,” said Bob Harrison, Chairman, President, and CEO.  “It was during this time that the world saw the devastating impacts of the wildfires on Maui.  Our priority during the quarter was to help our customers, colleagues and the community through this tragedy, and we are committed to helping Maui recover and rebuild stronger than ever.” 

    On October 18, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on December 1, 2023, to stockholders of record at the close of business on November 20, 2023.  

    Third Quarter 2023 Highlights:

    • Net income of $58.2 million, or $0.46 per diluted share
    • Total loans and leases decreased $30.5 million versus prior quarter
    • Total deposits increased $433.3 million versus prior quarter
    • Net interest margin decreased 5 basis points to 2.86%
    • Recorded a $7.5 million provision for credit losses
    • Board of Directors declared a quarterly dividend of $0.26 per share

    Balance Sheet

    Total assets were $24.9 billion as of September 30, 2023, compared to $24.5 billion as of June 30, 2023.

    Gross loans and leases were $14.3 billion as of September 30, 2023, a slight decrease of $30.5 million, or 0.2%, from $14.4 billion as of June 30, 2023.

    Total deposits were $21.5 billion as of September 30, 2023, an increase of $433.3 million, or 2.1%, from $21.1 billion as of June 30, 2023.  

    Net Interest Income

    Net interest income for the third quarter of 2023 was $157.1 million, a decrease of $2.8 million, or 1.7%, compared to $159.9 million for the prior quarter.  

    The net interest margin was 2.86% in the third quarter of 2023, a decrease of 5 basis points compared to 2.91% in the prior quarter.

    Provision Expense

    During the quarter ended September 30, 2023, we recorded a $7.5 million provision for credit losses. In the quarter ended June 30, 2023, we recorded a $5.0 million provision for credit losses.

    Noninterest Income

    Noninterest income was $46.1 million in the third quarter of 2023, a decrease of $1.3 million compared to noninterest income of $47.3 million in the prior quarter.     

    Noninterest Expense

    Noninterest expense was $119.4 million in the third quarter of 2023, a decrease of $1.5 million compared to noninterest expense of $120.9 million in the prior quarter.  

    The efficiency ratio was 58.3% and 58.0% for the quarters ended September 30, 2023 and June 30, 2023, respectively.

    Taxes

    The effective tax rate was 23.8% and 23.3% for the quarters ended September 30, 2023 and June 30, 2023, respectively.

    Asset Quality

    The allowance for credit losses was $154.8 million, or 1.08% of total loans and leases, as of September 30, 2023, compared to $148.6 million, or 1.03% of total loans and leases, as of June 30, 2023. The reserve for unfunded commitments was $37.8 million as of September 30, 2023 compared to $36.2 million as of June 30, 2023. Net recoveries were $0.3 million, or 0.01% of average loans and leases on an annualized basis, for the quarter ended September 30, 2023, compared to net charge-offs of $3.5 million, or 0.10% of average loans and leases on an annualized basis, for the quarter ended June 30, 2023. Total non-performing assets were $14.6 million, or 0.10% of total loans and leases and other real estate owned, on September 30, 2023, compared to total non-performing assets of $13.2 million, or 0.09% of total loans and leases and other real estate owned, on June 30, 2023.

    Capital

    Total stockholders' equity was $2.4 billion on September 30, 2023 and June 30, 2023.    

    The tier 1 leverage, common equity tier 1 and total capital ratios were 8.45%, 12.21% and 13.38%, respectively, on September 30, 2023, compared with 8.30%, 12.05% and 13.17%, respectively, on June 30, 2023.

    The Company did not repurchase any shares in the third 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/BIb8dec5c067a34a9783388cdb9da26a39, 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, 2022 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2023 and June 30, 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 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 Nine Months Ended  
      September 30,  June 30,  September 30,  September 30,  
    (dollars in thousands, except per share data)    2023    2023    2022    2023    2022  
    Operating Results:                
    Net interest income $ 157,148 $159,939 $162,736 $ 484,334 $441,755  
    Provision for credit losses   7,500  5,000  3,183   21,300  (1,564) 
    Noninterest income   46,097  47,348  45,857   142,468  131,374  
    Noninterest expense   119,383  120,881  113,332   358,831  326,549  
    Net income   58,221  62,442  69,018   187,481  186,097  
    Basic earnings per share   0.46  0.49  0.54   1.47  1.46  
    Diluted earnings per share   0.46  0.49  0.54   1.47  1.45  
    Dividends declared per share   0.26  0.26  0.26   0.78  0.78  
    Dividend payout ratio   56.52% 53.06% 48.15%  53.06% 53.79 %
    Performance Ratios(1):                
    Net interest margin   2.86%   2.91%   2.93%    2.96%   2.65 %
    Efficiency ratio   58.31%   57.96%   53.98%    56.86%   56.63 %
    Return on average total assets   0.93%   1.01%   1.10%    1.01%   0.99 %
    Return on average tangible assets (non-GAAP)(2)   0.97%   1.05%   1.14%    1.06%   1.03 %
    Return on average total stockholders' equity   9.76%   10.68%   12.08%    10.72%   10.55 %
    Return on average tangible stockholders' equity (non-GAAP)(2)   16.84%   18.57%   21.53%    18.68%   18.26 %
    Average Balances:                
    Average loans and leases $ 14,349,402 $14,283,222 $13,491,428 $ 14,238,309 $13,125,660  
    Average earning assets   22,060,480  22,186,316  22,258,066   22,040,704  22,413,209  
    Average assets   24,727,893  24,821,486  24,957,042   24,699,826  25,095,438  
    Average deposits   21,212,102  21,057,259  22,148,039   21,245,055  22,170,824  
    Average stockholders' equity   2,367,422  2,344,285  2,267,152   2,337,292  2,358,195  
    Market Value Per Share:                
    Closing   18.05  18.01  24.63   18.05  24.63  
    High   22.59  21.00  28.14   28.28  31.16  
    Low   17.41  15.08  21.21   15.08  21.21  


      As of As of As of As of 
      September 30,  June 30,  December 31,  September 30,  
    (dollars in thousands, except per share data)    2023  2023 2022 2022 
    Balance Sheet Data:                 
    Loans and leases $ 14,332,335 $14,362,832 $14,092,012 $13,700,374 
    Total assets   24,912,524  24,511,566  24,577,223  24,870,272 
    Total deposits   21,511,489  21,078,166  21,689,029  22,091,738 
    Short-term borrowings   500,000    75,000   
    Long-term borrowings    500,000     
    Total stockholders' equity   2,351,009  2,359,738  2,269,005  2,200,651 
                  
    Per Share of Common Stock:             
    Book value $ 18.42 $18.49 $17.82 $17.28 
    Tangible book value (non-GAAP)(2)   10.62  10.69  10.00  9.46 
                  
    Asset Quality Ratios:             
    Non-accrual loans and leases / total loans and leases   0.10%   0.09% 0.08% 0.06%  
    Allowance for credit losses for loans and leases / total loans and leases   1.08%   1.03% 1.02% 1.08%  
                  
    Capital Ratios:             
    Common Equity Tier 1 Capital Ratio    12.21%    12.05%  11.82% 11.79%  
    Tier 1 Capital Ratio   12.21%   12.05% 11.82% 11.79%  
    Total Capital Ratio   13.38%   13.17% 12.92% 12.92%  
    Tier 1 Leverage Ratio   8.45%   8.30% 8.11% 7.78%  
    Total stockholders' equity to total assets   9.44%   9.63% 9.23% 8.85%  
    Tangible stockholders' equity to tangible assets (non-GAAP)(2)   5.67%   5.80% 5.40% 5.05%  
                  
    Non-Financial Data:             
    Number of branches   50  51  51  51 
    Number of ATMs   294  296  294  303 
    Number of Full-Time Equivalent Employees   2,087  2,126  2,063  2,042 




    (1)  Except for the efficiency ratio, amounts are annualized for the three and nine months ended September 30, 2023 and 2022 and three months ended June 30, 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 14, GAAP to Non-GAAP Reconciliation.

     

    Consolidated Statements of Income Table 2
      For the Three Months Ended For the Nine Months Ended
      September 30,  June 30,  September 30,  September 30, 
    (dollars in thousands, except per share amounts)    2023    2023    2022     2023    2022 
    Interest income               
    Loans and lease financing $ 194,098 $185,340 $134,646  $ 551,777 $350,294 
    Available-for-sale investment securities   18,426  18,094  19,644    55,208  68,394 
    Held-to-maturity investment securities   18,271  18,282  17,950    55,510  36,239 
    Other   9,004  7,489  4,150    20,054  7,828 
    Total interest income   239,799  229,205  176,390    682,549  462,755 
    Interest expense               
    Deposits   74,651  58,071  13,653    176,006  20,999 
    Short-term and long-term borrowings   6,838  10,656  1    20,057  1 
    Other   1,162  539      2,152   
    Total interest expense   82,651  69,266  13,654    198,215  21,000 
    Net interest income   157,148  159,939  162,736    484,334  441,755 
    Provision for credit losses   7,500  5,000  3,183    21,300  (1,564)
    Net interest income after provision for credit losses   149,648  154,939  159,553    463,034  443,319 
    Noninterest income               
    Service charges on deposit accounts   7,524  7,246  7,089    22,001  21,433 
    Credit and debit card fees   15,748  15,461  17,746    47,507  49,652 
    Other service charges and fees   9,546  9,056  9,179    27,764  27,851 
    Trust and investment services income   9,742  9,448  9,800    28,804  27,442 
    Bank-owned life insurance   1,872  3,271  (341)   10,263  (1,617)
    Other   1,665  2,866  2,384    6,129  6,613 
    Total noninterest income   46,097  47,348  45,857    142,468  131,374 
    Noninterest expense               
    Salaries and employee benefits   55,937  57,904  51,372    169,873  149,500 
    Contracted services and professional fees   16,393  17,498  16,625    50,204  52,389 
    Occupancy   6,711  7,554  8,115    22,047  22,859 
    Equipment   11,826  11,000  10,791    32,562  24,522 
    Regulatory assessment and fees   4,149  3,676  2,487    11,661  7,012 
    Advertising and marketing   2,289  1,891  1,902    6,174  5,924 
    Card rewards program   8,358  7,681  8,141    24,124  22,309 
    Other   13,720  13,677  13,899    42,186  42,034 
    Total noninterest expense   119,383  120,881  113,332    358,831  326,549 
    Income before provision for income taxes   76,362  81,406  92,078    246,671  248,144 
    Provision for income taxes   18,141  18,964  23,060    59,190  62,047 
    Net income $ 58,221 $62,442 $69,018  $ 187,481 $186,097 
    Basic earnings per share $ 0.46 $0.49 $0.54  $ 1.47 $1.46 
    Diluted earnings per share $ 0.46 $0.49 $0.54  $ 1.47 $1.45 
    Basic weighted-average outstanding shares   127,609,860  127,591,371  127,377,713    127,552,255  127,534,746 
    Diluted weighted-average outstanding shares   127,936,440  127,832,351  127,796,617    127,897,829  127,996,672 


                 
    Consolidated Balance Sheets Table 3
      September 30,  June 30,  December 31,  September 30, 
    (dollars in thousands, except share amount)    2023     2023     2022     2022 
    Assets            
    Cash and due from banks $ 246,028  $318,333  $297,502  $291,360 
    Interest-bearing deposits in other banks   967,400   239,798   229,122   657,574 
    Investment securities:            
    Available-for-sale, at fair value (amortized cost: $3,172,031 as of September 30, 2023, $3,296,825 as of June 30, 2023, $3,549,599 as of December 31, 2022 and $3,673,396 as of September 30, 2022)   2,722,704   2,909,372   3,151,133   3,289,160 
    Held-to-maturity, at amortized cost (fair value: $3,433,029 as of September 30, 2023, $3,697,261 as of June 30, 2023, $3,814,822 as of December 31, 2022 and $3,960,713 as of September 30, 2022)   4,104,114   4,180,408   4,320,639   4,406,143 
    Loans held for sale           361 
    Loans and leases   14,332,335   14,362,832   14,092,012   13,700,374 
    Less: allowance for credit losses   154,795   148,581   143,900   148,163 
    Net loans and leases   14,177,540   14,214,251   13,948,112   13,552,211 
                 
    Premises and equipment, net   277,805   277,817   280,355   299,179 
    Other real estate owned and repossessed personal property        91   139 
    Accrued interest receivable   84,327   80,710   78,194   68,545 
    Bank-owned life insurance   477,698   476,177   473,067   470,202 
    Goodwill   995,492   995,492   995,492   995,492 
    Mortgage servicing rights   5,855   6,072   6,562   6,866 
    Other assets   853,561   813,136   796,954   833,040 
    Total assets $ 24,912,524  $24,511,566  $24,577,223  $24,870,272 
    Liabilities and Stockholders' Equity            
    Deposits:            
    Interest-bearing $ 13,612,493  $12,911,539  $12,824,383  $12,774,645 
    Noninterest-bearing   7,898,996   8,166,627   8,864,646   9,317,093 
    Total deposits   21,511,489   21,078,166   21,689,029   22,091,738 
    Short-term borrowings   500,000      75,000    
    Long-term borrowings     500,000       
    Retirement benefits payable   99,685   100,671   102,577   133,981 
    Other liabilities   450,341   472,991   441,612   443,902 
    Total liabilities   22,561,515   22,151,828   22,308,218   22,669,621 
                 
    Stockholders' equity            
    Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,330,663 / 127,609,934 shares as of September 30, 2023, issued/outstanding: 141,327,860 / 127,608,037 shares as of June 30, 2023, issued/outstanding: 140,963,918 / 127,363,327 shares as of December 31, 2022 and issued/outstanding: 140,958,520 / 127,357,680 shares as of September 30, 2022)   1,413   1,413   1,410   1,410 
    Additional paid-in capital   2,545,659   2,543,226   2,538,336   2,535,601 
    Retained earnings   823,895   799,045   736,544   690,433 
    Accumulated other comprehensive loss, net   (648,731)  (612,736)  (639,254)  (658,756)
    Treasury stock (13,720,729 shares as of September 30, 2023, 13,719,823 shares as of June 30, 2023, 13,600,591 shares as of December 31, 2022 and 13,600,840 shares as of September 30, 2022)   (371,227)  (371,210)  (368,031)  (368,037)
    Total stockholders' equity   2,351,009   2,359,738   2,269,005   2,200,651 
    Total liabilities and stockholders' equity $ 24,912,524  $24,511,566  $24,577,223  $24,870,272 


                              
    Average Balances and Interest Rates                       Table 4
      Three Months Ended  Three Months Ended  Three Months Ended  
      September 30, 2023 June 30, 2023 September 30, 2022 
      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 $ 608.6 $ 8.2  5.36%  $569.3 $7.2 5.07%  $724.0 $4.0 2.20%
    Available-for-Sale Investment Securities                         
    Taxable   2,834.6   18.4  2.59  2,978.6  18.0 2.42  3,733.8  19.2 2.05 
    Non-Taxable   2.3    5.48  5.8  0.1 5.74  45.1  0.6 5.16 
    Held-to-Maturity Investment Securities                         
    Taxable   3,544.1   15.0  1.70  3,618.7  15.3 1.69  3,573.6  14.6 1.64 
    Non-Taxable   604.3   4.1  2.66  610.4  3.7 2.46  613.6  4.2 2.72 
    Total Investment Securities   6,985.3   37.5  2.14  7,213.5  37.1 2.06  7,966.1  38.6 1.93 
    Loans Held for Sale   0.4    6.63  0.5   5.87  0.7   3.62 
    Loans and Leases(1)                         
    Commercial and industrial   2,123.5   35.7  6.66  2,265.7  36.2 6.41  2,025.5  20.7 4.05 
    Commercial real estate   4,381.8   71.4  6.47  4,183.6  64.9 6.22  4,016.7  42.3 4.18 
    Construction   873.7   15.5  7.05  874.3  15.2 6.96  737.4  8.6 4.63 
    Residential:                         
    Residential mortgage   4,316.3   40.1  3.72  4,314.0  39.1 3.62  4,224.0  36.4 3.45 
    Home equity line   1,154.0   10.1  3.45  1,119.3  9.2 3.31  991.1  7.2 2.87 
    Consumer   1,172.8   18.3  6.19  1,196.6  17.7 5.92  1,218.0  17.1 5.57 
    Lease financing   327.3   3.7  4.48  329.7  3.6 4.43  278.7  2.7 3.81 
    Total Loans and Leases   14,349.4   194.8  5.39  14,283.2  185.9 5.22  13,491.4  135.0 3.98 
    Other Earning Assets   116.8   0.8  2.64  119.8  0.3 0.99  75.9  0.1 0.69 
    Total Earning Assets(2)   22,060.5   241.3  4.35  22,186.3  230.5 4.16  22,258.1  177.7 3.18 
    Cash and Due from Banks   276.0       257.9       277.0      
    Other Assets   2,391.4       2,377.3       2,421.9      
    Total Assets $ 24,727.9      $24,821.5      $24,957.0      
                              
    Interest-Bearing Liabilities                         
    Interest-Bearing Deposits                         
    Savings $ 5,982.5 $ 19.2  1.27%  $6,099.4 $16.1 1.05%   6,871.5 $6.7 0.39%
    Money Market   3,907.2   24.7  2.51  3,809.8  19.6 2.07  4,086.1  4.8 0.47 
    Time   3,362.7   30.8  3.63  2,877.8  22.4 3.12  1,720.5  2.1 0.48 
    Total Interest-Bearing Deposits   13,252.4   74.7  2.23  12,787.0  58.1 1.82  12,678.1  13.6 0.43 
    Federal Funds Purchased       2.9   5.00  0.2   1.67 
    Other Short-Term Borrowings   113.1   1.5  5.17  362.9  4.7 5.16      
    Long-Term Borrowings   440.2   5.3  4.83  500.0  6.0 4.78      
    Other Interest-Bearing Liabilities   89.1   1.2  5.17  54.0  0.5 4.00      
    Total Interest-Bearing Liabilities   13,894.8   82.7  2.36  13,706.8  69.3 2.03  12,678.3  13.6 0.43 
    Net Interest Income    $ 158.6      $161.2      $164.1   
    Interest Rate Spread        1.99%        2.13%        2.75%
    Net Interest Margin        2.86%        2.91%        2.93%
    Noninterest-Bearing Demand Deposits   7,959.7       8,270.3       9,469.9      
    Other Liabilities   506.0       500.1       541.6      
    Stockholders' Equity   2,367.4       2,344.3       2,267.2      
    Total Liabilities and Stockholders' Equity $ 24,727.9      $24,821.5      $24,957.0      




    (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, $1.3 million and $1.3 million for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively.


                      
    Average Balances and Interest Rates               Table 5
      Nine Months Ended  Nine Months Ended  
      September 30, 2023 September 30, 2022 
      Average Income/ Yield/ Average Income/ Yield/ 
    (dollars in millions)    Balance Expense Rate Balance Expense Rate 
    Earning Assets                                    
    Interest-Bearing Deposits in Other Banks $ 493.6 $ 18.8  5.10%  $1,051.7 $7.3 0.93%
    Available-for-Sale Investment Securities                 
    Taxable   2,964.0   54.8  2.47  5,145.3  64.9 1.68 
    Non-Taxable   13.0   0.5  5.57  227.9  4.4 2.59 
    Held-to-Maturity Investment Securities                 
    Taxable   3,615.0   46.0  1.70  2,382.2  29.7 1.66 
    Non-Taxable   608.9   11.9  2.62  409.1  8.3 2.71 
    Total Investment Securities   7,200.9   113.2  2.10  8,164.5  107.3 1.75 
    Loans Held for Sale   0.3    6.11  0.7   2.92 
    Loans and Leases(1)                 
    Commercial and industrial   2,193.8   104.3  6.35  1,983.5  50.3 3.39 
    Commercial real estate   4,224.7   194.6  6.16  3,820.6  98.8 3.46 
    Construction   874.0   45.4  6.95  738.4  20.7 3.74 
    Residential:                 
    Residential mortgage   4,312.4   117.6  3.64  4,173.1  108.0 3.45 
    Home equity line   1,116.4   27.9  3.35  943.2  18.5 2.62 
    Consumer   1,194.1   53.2  5.95  1,218.2  48.1 5.29 
    Lease financing   322.9   10.5  4.34  248.7  6.7 3.60 
    Total Loans and Leases   14,238.3   553.5  5.19  13,125.7  351.1 3.57 
    Other Earning Assets   107.6   1.3  1.53  70.6  0.5 0.92 
    Total Earning Assets(2)   22,040.7   686.8  4.16  22,413.2  466.2 2.78 
    Cash and Due from Banks   273.3       289.9      
    Other Assets   2,385.8       2,392.3      
    Total Assets $ 24,699.8      $25,095.4      
                      
    Interest-Bearing Liabilities                 
    Interest-Bearing Deposits                 
    Savings $ 6,144.1 $ 49.1  1.07%  $6,837.8 $8.9 0.17%
    Money Market   3,857.0   58.6  2.03  4,087.6  6.8 0.22 
    Time   2,921.8   68.3  3.12  1,713.4  5.3 0.41 
    Total Interest-Bearing Deposits   12,922.9   176.0  1.82  12,638.8  21.0 0.22 
    Federal Funds Purchased   23.0   0.8  4.45  0.1   1.67 
    Other Short-Term Borrowings   176.5   6.8  5.15      
    Long-Term Borrowings   349.8   12.5  4.78      
    Other Interest-Bearing Liabilities   62.1   2.1  4.63      
    Total Interest-Bearing Liabilities   13,534.3   198.2  1.96  12,638.9  21.0 0.22 
    Net Interest Income    $ 488.6      $445.2   
    Interest Rate Spread        2.20%        2.56%
    Net Interest Margin        2.96%        2.65%
    Noninterest-Bearing Demand Deposits   8,322.2       9,532.0      
    Other Liabilities   506.0       566.3      
    Stockholders' Equity   2,337.3       2,358.2      
    Total Liabilities and Stockholders' Equity $ 24,699.8      $25,095.4      




    (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 $4.2 million and $3.5 million for the nine months ended September 30, 2023 and 2022, respectively.


              
    Analysis of Change in Net Interest Income        Table 6
      Three Months Ended September 30, 2023
      Compared to June 30, 2023
    (dollars in millions) Volume Rate Total
    Change in Interest Income:                  
    Interest-Bearing Deposits in Other Banks $ 0.6  $ 0.4  $ 1.0 
    Available-for-Sale Investment Securities         
    Taxable   (0.9)   1.3    0.4 
    Non-Taxable   (0.1)      (0.1)
    Held-to-Maturity Investment Securities         
    Taxable   (0.3)      (0.3)
    Non-Taxable      0.4    0.4 
    Total Investment Securities   (1.3)   1.7    0.4 
    Loans and Leases         
    Commercial and industrial   (2.1)   1.6    (0.5)
    Commercial real estate   3.5    3.0    6.5 
    Construction      0.3    0.3 
    Residential:         
    Residential mortgage      1.0    1.0 
    Home equity line   0.4    0.5    0.9 
    Consumer   (0.3)   0.9    0.6 
    Lease financing      0.1    0.1 
    Total Loans and Leases   1.5    7.4    8.9 
    Other Earning Assets      0.5    0.5 
    Total Change in Interest Income   0.8    10.0    10.8 
              
    Change in Interest Expense:         
    Interest-Bearing Deposits         
    Savings   (0.3)   3.4    3.1 
    Money Market   0.5    4.6    5.1 
    Time   4.3    4.1    8.4 
    Total Interest-Bearing Deposits   4.5    12.1    16.6 
    Other Short-Term Borrowings   (3.2)      (3.2)
    Long-Term Borrowings   (0.7)      (0.7)
    Other Interest-Bearing Liabilities   0.5    0.2    0.7 
    Total Change in Interest Expense   1.1    12.3    13.4 
    Change in Net Interest Income $ (0.3) $ (2.3) $ (2.6)


              
    Analysis of Change in Net Interest Income        Table 7
      Three Months Ended September 30, 2023
      Compared to September 30, 2022
    (dollars in millions) Volume Rate Total
    Change in Interest Income:                  
    Interest-Bearing Deposits in Other Banks $ (0.7) $ 4.9  $ 4.2 
    Available-for-Sale Investment Securities         
    Taxable   (5.2)   4.4    (0.8)
    Non-Taxable   (0.6)      (0.6)
    Held-to-Maturity Investment Securities         
    Taxable   (0.1)   0.5    0.4 
    Non-Taxable      (0.1)   (0.1)
    Total Investment Securities   (5.9)   4.8    (1.1)
    Loans and Leases         
    Commercial and industrial   1.0    14.0    15.0 
    Commercial real estate   4.1    25.0    29.1 
    Construction   1.8    5.1    6.9 
    Residential:         
    Residential mortgage   0.8    2.9    3.7 
    Home equity line   1.3    1.6    2.9 
    Consumer   (0.6)   1.8    1.2 
    Lease financing   0.5    0.5    1.0 
    Total Loans and Leases   8.9    50.9    59.8 
    Other Earning Assets   0.1    0.6    0.7 
    Total Change in Interest Income   2.4    61.2    63.6 
              
    Change in Interest Expense:         
    Interest-Bearing Deposits         
    Savings   (1.0)   13.5    12.5 
    Money Market   (0.2)   20.1    19.9 
    Time   3.7    25.0    28.7 
    Total Interest-Bearing Deposits   2.5    58.6    61.1 
    Other Short-Term Borrowings   1.5       1.5 
    Long-Term Borrowings   5.3       5.3 
    Other Interest-Bearing Liabilities   1.2       1.2 
    Total Change in Interest Expense   10.5    58.6    69.1 
    Change in Net Interest Income $ (8.1) $ 2.6  $ (5.5)


              
    Analysis of Change in Net Interest Income        Table 8
      Nine Months Ended September 30, 2023
      Compared to September 30, 2022
    (dollars in millions)    Volume    Rate    Total
    Change in Interest Income:         
    Interest-Bearing Deposits in Other Banks $ (5.7) $ 17.2  $ 11.5 
    Available-for-Sale Investment Securities         
    Taxable   (33.6)   23.5    (10.1)
    Non-Taxable   (6.3)   2.4    (3.9)
    Held-to-Maturity Investment Securities         
    Taxable   15.6    0.7    16.3 
    Non-Taxable   3.9    (0.3)   3.6 
    Total Investment Securities   (20.4)   26.3    5.9 
    Loans and Leases         
    Commercial and industrial   5.9    48.1    54.0 
    Commercial real estate   11.4    84.4    95.8 
    Construction   4.3    20.4    24.7 
    Residential:         
    Residential mortgage   3.6    6.0    9.6 
    Home equity line   3.7    5.7    9.4 
    Consumer   (0.9)   6.0    5.1 
    Lease financing   2.3    1.5    3.8 
    Total Loans and Leases   30.3    172.1    202.4 
    Other Earning Assets   0.3    0.5    0.8 
    Total Change in Interest Income   4.5    216.1    220.6 
              
    Change in Interest Expense:         
    Interest-Bearing Deposits         
    Savings   (1.0)   41.2    40.2 
    Money Market   (0.4)   52.2    51.8 
    Time   6.1    56.9    63.0 
    Total Interest-Bearing Deposits   4.7    150.3    155.0 
    Federal Funds Purchased   0.8       0.8 
    Other Short-Term Borrowings   6.8       6.8 
    Long-Term Borrowings   12.5       12.5 
    Other Interest-Bearing Liabilities   2.1       2.1 
    Total Change in Interest Expense   26.9    150.3    177.2 
    Change in Net Interest Income $ (22.4) $ 65.8  $ 43.4 


                 
    Loans and Leases           Table 9
      September 30,  June 30,  December 31,  September 30, 
    (dollars in thousands)    2023    2023    2022    2022
    Commercial and industrial:            
    Commercial and industrial excluding Paycheck Protection Program loans $ 2,091,379 $2,175,841    $2,217,604 $2,017,095
    Paycheck Protection Program loans   10,063  11,990  18,293  26,712
    Total commercial and industrial   2,101,442  2,187,831  2,235,897  2,043,807
    Commercial real estate   4,387,751  4,290,948  4,132,309  4,103,310
    Construction   885,112  913,837  844,643  765,862
    Residential:            
    Residential mortgage   4,303,924  4,317,537  4,302,788  4,252,041
    Home equity line   1,167,388  1,138,163  1,055,351  1,010,631
    Total residential   5,471,312  5,455,700  5,358,139  5,262,672
    Consumer   1,154,203  1,182,116  1,222,934  1,218,885
    Lease financing   332,515  332,400  298,090  305,838
    Total loans and leases $ 14,332,335 $14,362,832 $14,092,012 $13,700,374


                 
    Deposits           Table 10
      September 30,  June 30,  December 31,  September 30, 
    (dollars in thousands)    2023    2023    2022    2022
    Demand $ 7,898,996 $8,166,627 $8,864,646 $9,317,093
    Savings   6,028,308  5,835,975  6,382,910  6,724,783
    Money Market   3,923,054  3,767,792  3,965,423  4,150,940
    Time   3,661,131  3,307,772  2,476,050  1,898,922
    Total Deposits $ 21,511,489 $21,078,166 $21,689,029 $22,091,738


                 
    Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More           Table 11
      September 30,  June 30,  December 31,  September 30, 
    (dollars in thousands)    2023    2023    2022    2022
    Non-Performing Assets            
    Non-Accrual Loans and Leases            
    Commercial Loans:            
    Commercial and industrial $ 988 $1,024 $1,215 $1,528
    Commercial real estate      727  727
    Total Commercial Loans   988  1,024  1,942  2,255
    Residential Loans:            
    Residential mortgage   7,435  6,097  6,166  6,028
    Home equity line   6,200  6,107  3,797  
    Total Residential Loans   13,635  12,204  9,963  6,028
    Total Non-Accrual Loans and Leases   14,623  13,228  11,905  8,283
    Other Real Estate Owned      91  139
    Total Non-Performing Assets $ 14,623 $13,228 $11,996 $8,422
                 
    Accruing Loans and Leases Past Due 90 Days or More            
    Commercial Loans:            
    Commercial and industrial $ 289 $599 $291 $1,445
    Commercial real estate   170  619    
    Construction        390
    Total Commercial Loans   459  1,218  291  1,835
    Residential Loans:            
    Residential mortgage   1,430  58  58  
    Home equity line        1,832
    Total Residential Loans   1,430  58  58  1,832
    Consumer   1,681  1,975  2,885  1,976
    Total Accruing Loans and Leases Past Due 90 Days or More $ 3,570 $3,251 $3,234 $5,643
                 
    Total Loans and Leases $ 14,332,335 $14,362,832 $14,092,012 $13,700,374


                     
    Allowance for Credit Losses and Reserve for Unfunded Commitments Table 12
      For the Three Months Ended  For the Nine Months Ended  
      September 30,  June 30,  September 30,  September 30,  September 30,  
    (dollars in thousands)    2023     2023     2022     2023  2022   
    Balance at Beginning of Period $ 184,780  $183,321  $177,900    177,735   187,584  
    Loans and Leases Charged-Off                
    Commercial Loans:                
    Commercial and industrial   (784)  (997)  (328)   (2,572)  (1,277) 
    Commercial real estate        (750)     (750) 
    Total Commercial Loans   (784)  (997)  (1,078)   (2,572)  (2,027) 
    Residential Loans:                
    Residential mortgage        (1)   (122)  (1) 
    Home equity line     (137)      (272)  (1,163) 
    Total Residential Loans     (137)  (1)   (394)  (1,164) 
    Consumer   (3,665)  (4,516)  (3,986)   (12,963)  (11,754) 
    Total Loans and Leases Charged-Off   (4,449)  (5,650)  (5,065)   (15,929)  (14,945) 
    Recoveries on Loans and Leases Previously Charged-Off                
    Commercial Loans:                
    Commercial and industrial   2,637   292   240    3,175   594  
    Commercial real estate              14  
    Lease financing              60  
    Total Commercial Loans   2,637   292   240    3,175   668  
    Residential Loans:                
    Residential mortgage   53   30   37    110   245  
    Home equity line   303   59   356    539   575  
    Total Residential Loans   356   89   393    649   820  
    Consumer   1,746   1,728   1,653    5,640   5,741  
    Total Recoveries on Loans and Leases Previously Charged-Off   4,739   2,109   2,286    9,464   7,229  
    Net Loans and Leases Recovered (Charged-Off)   290   (3,541)  (2,779)   (6,465)  (7,716) 
    Provision for Credit Losses   7,500   5,000   3,183    21,300   (1,564) 
    Balance at End of Period $ 192,570  $184,780  $178,304  $ 192,570  $178,304  
    Components:                
    Allowance for Credit Losses $ 154,795  $148,581  $148,163  $ 154,795  $148,163  
    Reserve for Unfunded Commitments   37,775   36,199   30,141    37,775   30,141  
    Total Allowance for Credit Losses and Reserve for Unfunded Commitments $ 192,570  $184,780  $178,304  $ 192,570  $178,304  
    Average Loans and Leases Outstanding $ 14,349,402  $14,283,222  $13,491,428  $ 14,238,309  $13,125,660  
    Ratio of Net Loans and Leases (Recovered) Charged-Off to Average Loans and Leases Outstanding(1)   (0.01)%   0.10 %   0.08 %    0.06 %   0.08 %
    Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding   1.08 %   1.03 %   1.08 %    1.08 %   1.08 %
    Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases  10.59x  11.23x  17.89x  10.59x  17.89x 




    (1)   Annualized for the three and nine months ended September 30, 2023 and 2022 and three months ended June 30, 2023.


    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 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 $ 55,062 $ 294,558 $ 368,460 $ 35,603 $ 150,195 $ 147,197 $ 906,094 $ 3,427 $ 1,960,596
    Special Mention   1   31,427   95   730   1,125   1,569   2,677   87   37,711
    Substandard   217   532   245   847   1,839   1,034   13,947     18,661
    Other (1)   13,438   12,424   5,575   2,856   2,226   1,513   46,442     84,474
    Total Commercial and Industrial   68,718   338,941   374,375   40,036   155,385   151,313   969,160   3,514   2,101,442
    Current period gross charge-offs   130   69   74   28   108   2,163       2,572
                                
    Commercial Real Estate                           
    Risk rating:                           
    Pass   288,996   881,117   665,048   329,663   559,287   1,508,430   60,613     4,293,154
    Special Mention   2,322   7,643   41,304   543   6,935   13,039   12,483     84,269
    Substandard     5,110   2,004   170     2,599   300     10,183
    Other (1)             145       145
    Total Commercial Real Estate   291,318   893,870   708,356   330,376   566,222   1,524,213   73,396     4,387,751
    Current period gross charge-offs                  
                                
    Construction                           
    Risk rating:                           
    Pass   129,160   209,227   335,433   59,164   64,168   28,916   3,826     829,894
    Special Mention           197   669       866
    Other (1)   10,194   24,825   10,313   2,260   2,115   3,932   713     54,352
    Total Construction   139,354   234,052   345,746   61,424   66,480   33,517   4,539     885,112
    Current period gross charge-offs                  
                                
    Lease Financing                           
    Risk rating:                           
    Pass   83,255   88,367   19,869   35,583   34,828   69,043       330,945
    Special Mention       341   38           379
    Substandard   747   440       4         1,191
    Total Lease Financing   84,002   88,807   20,210   35,621   34,832   69,043       332,515
    Current period gross charge-offs                  
                                
    Total Commercial Lending $ 583,392 $ 1,555,670 $ 1,448,687 $ 467,457 $ 822,919 $ 1,778,086 $ 1,047,095 $ 3,514 $ 7,706,820
    Current period gross charge-offs $ 130 $ 69 $ 74 $ 28 $ 108 $ 2,163 $ $ $ 2,572


                                
                           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 $ 195,053 $ 527,072 $ 1,018,441 $ 536,878 $ 231,038 $ 1,012,924 $ $ $ 3,521,406
    680 - 739   29,006   78,642   116,247   73,209   32,906   131,547       461,557
    620 - 679   2,847   11,153   15,830   10,678   5,705   36,289       82,502
    550 - 619   269   3,343   4,037   2,458   249   11,724       22,080
    Less than 550     196   2,362   1,573   50   5,373       9,554
    No Score (3)   5,589   19,402   11,729   6,343   9,757   53,515       106,335
    Other (2)   10,518   17,079   17,682   12,840   8,733   26,171   7,467     100,490
    Total Residential Mortgage   243,282   656,887   1,186,328   643,979   288,438   1,277,543   7,467     4,303,924
    Current period gross charge-offs             122       122
                                
    Home Equity Line                           
    FICO:                           
    740 and greater               961,974   1,503   963,477
    680 - 739               148,629   2,382   151,011
    620 - 679               34,333   1,326   35,659
    550 - 619               9,099   948   10,047
    Less than 550               5,257   264   5,521
    No Score (3)               1,673     1,673
    Total Home Equity Line               1,160,965   6,423   1,167,388
    Current period gross charge-offs               254   18   272
                                
    Total Residential Lending $ 243,282 $ 656,887 $ 1,186,328 $ 643,979 $ 288,438 $ 1,277,543 $ 1,168,432 $ 6,423 $ 5,471,312
    Current period gross charge-offs $ $ $ $ $ $ 122 $ 254 $ 18 $ 394
                                
    Consumer Lending                           
    FICO:                           
    740 and greater   85,839   139,753   84,741   39,390   27,790   13,589   116,342   153   507,597
    680 - 739   60,184   79,628   43,948   20,531   16,192   8,577   74,428   416   303,904
    620 - 679   21,797   32,632   18,094   8,650   9,214   6,191   33,543   892   131,013
    550 - 619   3,745   10,422   7,898   4,953   5,597   4,069   12,456   684   49,824
    Less than 550   774   5,629   4,519   3,175   3,048   2,459   4,567   560   24,731
    No Score (3)   1,455   297       5   13   41,852   150   43,772
    Other (2)     1,188   1,007   340   1,086   1   89,740     93,362
    Total Consumer Lending $ 173,794 $ 269,549 $ 160,207 $ 77,039 $ 62,932 $ 34,899 $ 372,928 $ 2,855 $ 1,154,203
    Current period gross charge-offs $ 152 $ 1,710 $ 1,723 $ 880 $ 1,500 $ 1,995 $ 4,541 $ 462 $ 12,963
                                
    Total Loans and Leases $ 1,000,468 $ 2,482,106 $ 2,795,222 $ 1,188,475 $ 1,174,289 $ 3,090,528 $ 2,588,455 $ 12,792 $ 14,332,335
    Current period gross charge-offs $ 282 $ 1,779 $ 1,797 $ 908 $ 1,608 $ 4,280 $ 4,795 $ 480 $ 15,929




    (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 Nine Months Ended  
      September 30,  June 30,  September 30,  September 30,  
    (dollars in thousands)    2023     2023    2022    2023     2022 
    Income Statement Data:                
    Net income $ 58,221 $62,442 $69,018 $ 187,481 $186,097 
                     
    Average total stockholders' equity $ 2,367,422 $2,344,285 $2,267,152 $ 2,337,292 $2,358,195 
    Less: average goodwill   995,492  995,492  995,492   995,492  995,492 
    Average tangible stockholders' equity $ 1,371,930 $1,348,793 $1,271,660 $ 1,341,800 $1,362,703 
                     
    Average total assets $ 24,727,893 $24,821,486 $24,957,042 $ 24,699,826 $25,095,438 
    Less: average goodwill   995,492  995,492  995,492   995,492  995,492 
    Average tangible assets $ 23,732,401 $23,825,994 $23,961,550 $ 23,704,334 $24,099,946 
                     
    Return on average total stockholders' equity(1)   9.76%   10.68%   12.08%    10.72%   10.55%  
    Return on average tangible stockholders' equity (non-GAAP)(1)   16.84%   18.57%   21.53%    18.68%   18.26%  
                     
    Return on average total assets(1)   0.93%   1.01%   1.10%    1.01%   0.99%  
    Return on average tangible assets (non-GAAP)(1)   0.97%   1.05%   1.14%    1.06%   1.03%  


      As of As of As of As of 
      September 30,  June 30,  December 31,  September 30,  
    (dollars in thousands, except per share amounts)    2023    2023    2022    2022 
    Balance Sheet Data:             
    Total stockholders' equity $ 2,351,009 $2,359,738 $2,269,005 $2,200,651 
    Less: goodwill   995,492  995,492  995,492  995,492 
    Tangible stockholders' equity $ 1,355,517 $1,364,246 $1,273,513 $1,205,159 
                  
    Total assets $ 24,912,524 $24,511,566 $24,577,223 $24,870,272 
    Less: goodwill   995,492  995,492  995,492  995,492 
    Tangible assets $ 23,917,032 $23,516,074 $23,581,731 $23,874,780 
                  
    Shares outstanding   127,609,934  127,608,037  127,363,327  127,357,680 
                  
    Total stockholders' equity to total assets   9.44%   9.63%   9.23%   8.85%
    Tangible stockholders' equity to tangible assets (non-GAAP)   5.67%   5.80%   5.40%   5.05%
                  
    Book value per share $ 18.42 $18.49 $17.82 $17.28 
    Tangible book value per share (non-GAAP) $ 10.62 $10.69 $10.00 $9.46 




    (1)  Annualized for the three and nine months ended September 30, 2023 and 2022 and three months ended June 30, 2023.

     


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