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

    المصدر: Nasdaq GlobeNewswire / 26 يناير 2024 08:00:01   America/New_York

    HONOLULU, Hawaii, Jan. 26, 2024 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended December 31, 2023.

    “I’m happy to report that we finished 2023 with a strong fourth quarter. Our loan balances were stable, we grew consumer and commercial deposits, and credit quality remained excellent,” said Bob Harrison, Chairman, President, and CEO. “During the fourth quarter we also took action to strengthen our balance sheet and increase our future earnings power by selling low-yielding securities. We intend to use the proceeds to reduce high-cost deposits which will increase our net interest margin and net interest income in 2024.”

    On January 24, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on March 1, 2024, to stockholders of record at the close of business on February 16, 2024.  

    Additionally, the Company’s Board of Directors adopted a stock repurchase program for up to $40 million of its outstanding common stock during 2024.

    Fourth Quarter 2023 Highlights:

    • Net income of $47.5 million, or $0.37 per diluted share
    • Total loans and leases increased $21.2 million versus prior quarter
    • Total deposits decreased $178.8 million versus prior quarter
    • Net interest margin decreased 5 basis points to 2.81%
    • Recorded a $5.3 million provision for credit losses
    • Sold $525.6 million of low-yielding investment securities and recognized a $40.0 million loss
    • Sold 120,104 shares of Visa Class B stock for a gain of $40.8 million
    • $16.3 million FDIC special assessment included in expenses
    • Board of Directors declared a quarterly dividend of $0.26 per share

    Balance Sheet

    Total assets were $24.9 billion at December 31, 2023 and September 30, 2023.

    Gross loans and leases were $14.4 billion as of December 31, 2023, an increase of $21.2 million, or 0.1%, from $14.3 billion as of September 30, 2023.

    Total deposits were $21.3 billion as of December 31, 2023, a decrease of $178.8 million, or 0.8%, from $21.5 billion as of September 30, 2023.

    Net Interest Income

    Net interest income for the fourth quarter of 2023 was $151.8 million, a decrease of $5.4 million, or 3.4%, compared to $157.1 million for the prior quarter.  

    The net interest margin was 2.81% in the fourth quarter of 2023, a decrease of 5 basis points compared to 2.86% in the prior quarter.

    Provision Expense

    During the quarter ended December 31, 2023, we recorded a $5.3 million provision for credit losses. In the quarter ended September 30, 2023, we recorded a $7.5 million provision for credit losses.

    Noninterest Income

    Noninterest income was $58.3 million in the fourth quarter of 2023, an increase of $12.3 million compared to noninterest income of $46.1 million in the prior quarter.

    Noninterest Expense

    Noninterest expense was $142.3 million in the fourth quarter of 2023, an increase of $22.9 million compared to noninterest expense of $119.4 million in the prior quarter.

    The efficiency ratio was 67.3% and 58.3% for the quarters ended December 31, 2023 and September 30, 2023, respectively.

    Taxes

    The effective tax rate was 24.0% and 23.8% for the quarters ended December 31, 2023 and September 30, 2023, respectively.

    Asset Quality

    The allowance for credit losses was $156.5 million, or 1.09% of total loans and leases, as of December 31, 2023, compared to $154.8 million, or 1.08% of total loans and leases, as of September 30, 2023. The reserve for unfunded commitments was $35.6 million as of December 31, 2023 compared to $37.8 million as of September 30, 2023. Net charge-offs were $5.8 million, or 0.16% of average loans and leases on an annualized basis, for the quarter ended December 31, 2023, compared to net recoveries of $0.3 million, or 0.01% of average loans and leases on an annualized basis, for the quarter ended September 30, 2023. Total non-performing assets were $18.6 million, or 0.13% of total loans and leases and other real estate owned, on December 31, 2023, compared to total non-performing assets of $14.6 million, or 0.10% of total loans and leases and other real estate owned, on September 30, 2023.

    Capital

    Total stockholders' equity was $2.5 billion on December 31, 2023 an increase of $135.1 million from $2.4 billion as of September 30, 2023.

    The tier 1 leverage, common equity tier 1 and total capital ratios were 8.64%, 12.39% and 13.57%, respectively, on December 31, 2023, compared with 8.45%, 12.21% and 13.38%, respectively, on September 30, 2023.

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

    As to the stock repurchase program approved for 2024, repurchases of shares of the Company’s common stock may be conducted through open-market purchases, which may include purchases under a trading plan adopted pursuant to Securities and Exchange Commission Rule 10b5-1, or through privately negotiated transactions. The timing and exact amount of share repurchases, if any, will be subject to management’s discretion and various factors, including the Company’s capital position and financial performance, as well as market conditions. The repurchase program may be suspended, terminated or modified at any time for any reason.

    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, 8:00 a.m. Hawaii Time.

    To access the call by phone, please register via the following link: https://register.vevent.com/register/BIb0fdeb3d43a84da4acc2b0efeb9ba356, 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, June 30, 2023 and September 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 Year Ended  
      December 31,  September 30,  December 31,  December 31,  
    (dollars in thousands, except per share data)    2023    2023    2022    2023    2022 
    Operating Results:                
    Net interest income $ 151,793 $157,148 $171,794 $ 636,127 $613,549 
    Provision for credit losses   5,330  7,500  2,956   26,630  1,392 
    Noninterest income   58,347  46,097  48,151   200,815  179,525 
    Noninterest expense   142,307  119,383  113,922   501,138  440,471 
    Net income   47,502  58,221  79,588   234,983  265,685 
    Basic earnings per share   0.37  0.46  0.62   1.84  2.08 
    Diluted earnings per share   0.37  0.46  0.62   1.84  2.08 
    Dividends declared per share   0.26  0.26  0.26   1.04  1.04 
    Dividend payout ratio   70.27% 56.52% 41.94%  56.52% 50.00%
    Performance Ratios(1):                
    Net interest margin   2.81%   2.86%   3.15%    2.92%   2.78%
    Efficiency ratio   67.28%   58.31%   51.47%    59.48%   55.20%
    Return on average total assets   0.77%   0.93%   1.28%    0.95%   1.06%
    Return on average tangible assets (non-GAAP)(2)   0.81%   0.97%   1.34%    0.99%   1.11%
    Return on average total stockholders' equity   7.94%   9.76%   14.27%    10.01%   11.44%
    Return on average tangible stockholders' equity (non-GAAP)(2)   13.66%   16.84%   25.93%    17.39%   20.03%
    Average Balances:                
    Average loans and leases $ 14,349,322 $14,349,402 $13,876,136 $ 14,266,291 $13,314,821 
    Average earning assets   21,688,816  22,060,480  21,856,135   21,952,009  22,272,795 
    Average assets   24,404,727  24,727,893  24,575,648   24,625,445  24,964,422 
    Average deposits   20,908,221  21,212,102  21,725,177   21,160,155  22,058,497 
    Average stockholders' equity   2,374,669  2,367,422  2,213,030   2,346,713  2,321,606 
    Market Value Per Share:                
    Closing   22.86  18.05  26.04   22.86  26.04 
    High   23.22  22.59  27.16   28.28  31.16 
    Low   17.18  17.41  24.06   15.08  21.21 
                     


               
      As of As of As of 
      December 31,  September 30,  December 31,  
    (dollars in thousands, except per share data)    2023  2023 2022 
    Balance Sheet Data:              
    Loans and leases $ 14,353,497 $14,332,335 $14,092,012 
    Total assets   24,926,474  24,912,524  24,577,223 
    Total deposits   21,332,657  21,511,489  21,689,029 
    Short-term borrowings   500,000  500,000  75,000 
    Total stockholders' equity   2,486,066  2,351,009  2,269,005 
               
    Per Share of Common Stock:          
    Book value $ 19.48 $18.42 $17.82 
    Tangible book value (non-GAAP)(2)   11.68  10.62  10.00 
               
    Asset Quality Ratios:          
    Non-accrual loans and leases / total loans and leases   0.13%   0.10% 0.08%  
    Allowance for credit losses for loans and leases / total loans and leases   1.09%   1.08% 1.02%  
               
    Capital Ratios:          
    Common Equity Tier 1 Capital Ratio    12.39%    12.21% 11.82%  
    Tier 1 Capital Ratio   12.39%   12.21% 11.82%  
    Total Capital Ratio   13.57%   13.38% 12.92%  
    Tier 1 Leverage Ratio   8.64%   8.45% 8.11%  
    Total stockholders' equity to total assets   9.97%   9.44% 9.23%  
    Tangible stockholders' equity to tangible assets (non-GAAP)(2)   6.23%   5.67% 5.40%  
               
    Non-Financial Data:          
    Number of branches   50  50  51 
    Number of ATMs   275  294  294 
    Number of Full-Time Equivalent Employees   2,089  2,087  2,063 
               

                                                               

    (1)   Except for the efficiency ratio, amounts are annualized for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022.

    (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 Year Ended
      December 31,  September 30,  December 31,  December 31, 
    (dollars in thousands, except per share amounts)    2023    2023    2022    2023    2022
    Interest income               
    Loans and lease financing $ 196,276 $194,098 $159,526 $ 748,053 $509,820
    Available-for-sale investment securities   19,033  18,426  18,714   74,241  87,108
    Held-to-maturity investment securities   17,987  18,271  19,137   73,497  55,376
    Other   7,734  9,004  3,088   27,788  10,916
    Total interest income   241,030  239,799  200,465   923,579  663,220
    Interest expense               
    Deposits   82,215  74,651  28,202   258,221  49,201
    Short-term and long-term borrowings   6,232  6,838  469   26,289  470
    Other   790  1,162     2,942  
    Total interest expense   89,237  82,651  28,671   287,452  49,671
    Net interest income   151,793  157,148  171,794   636,127  613,549
    Provision for credit losses   5,330  7,500  2,956   26,630  1,392
    Net interest income after provision for credit losses   146,463  149,648  168,838   609,497  612,157
    Noninterest income               
    Service charges on deposit accounts   7,646  7,524  7,376   29,647  28,809
    Credit and debit card fees   16,381  15,748  16,376   63,888  66,028
    Other service charges and fees   9,535  9,546  9,185   37,299  37,036
    Trust and investment services income   9,645  9,742  9,023   38,449  36,465
    Bank-owned life insurance   5,063  1,872  2,865   15,326  1,248
    Investment securities gains, net   792       792  
    Other   9,285  1,665  3,326   15,414  9,939
    Total noninterest income   58,347  46,097  48,151   200,815  179,525
    Noninterest expense               
    Salaries and employee benefits   55,882  55,937  49,629   225,755  199,129
    Contracted services and professional fees   16,219  16,393  17,638   66,423  70,027
    Occupancy   7,561  6,711  8,175   29,608  31,034
    Equipment   12,547  11,826  9,984   45,109  34,506
    Regulatory assessment and fees   20,412  4,149  2,591   32,073  9,603
    Advertising and marketing   1,441  2,289  2,072   7,615  7,996
    Card rewards program   7,503  8,358  8,681   31,627  30,990
    Other   20,742  13,720  15,152   62,928  57,186
    Total noninterest expense   142,307  119,383  113,922   501,138  440,471
    Income before provision for income taxes   62,503  76,362  103,067   309,174  351,211
    Provision for income taxes   15,001  18,141  23,479   74,191  85,526
    Net income $ 47,502 $58,221 $79,588 $ 234,983 $265,685
    Basic earnings per share $ 0.37 $0.46 $0.62 $ 1.84 $2.08
    Diluted earnings per share $ 0.37 $0.46 $0.62 $ 1.84 $2.08
    Basic weighted-average outstanding shares   127,612,734  127,609,860  127,356,795   127,567,547  127,489,889
    Diluted weighted-average outstanding shares   128,028,964  127,936,440  127,894,773   127,915,873  127,981,699
     


              
    Consolidated Balance Sheets Table 3
      December 31,  September 30,  December 31, 
    (dollars in thousands, except share amount)    2023     2023     2022 
    Assets         
    Cash and due from banks $ 185,015  $246,028  $297,502 
    Interest-bearing deposits in other banks   1,554,882   967,400   229,122 
    Investment securities:         
    Available-for-sale, at fair value (amortized cost: $2,558,675 as of December 31, 2023, $3,172,031 as of September 30, 2023 and $3,549,599 as of December 31, 2022)   2,255,336   2,722,704   3,151,133 
    Held-to-maturity, at amortized cost (fair value: $3,574,856 as of December 31, 2023, $3,433,029 as of September 30, 2023 and $3,814,822 as of December 31, 2022)   4,041,449   4,104,114   4,320,639 
    Loans held for sale   190       
    Loans and leases   14,353,497   14,332,335   14,092,012 
    Less: allowance for credit losses   156,533   154,795   143,900 
    Net loans and leases   14,196,964   14,177,540   13,948,112 
              
    Premises and equipment, net   281,461   277,805   280,355 
    Other real estate owned and repossessed personal property        91 
    Accrued interest receivable   84,417   84,327   78,194 
    Bank-owned life insurance   479,907   477,698   473,067 
    Goodwill   995,492   995,492   995,492 
    Mortgage servicing rights   5,699   5,855   6,562 
    Other assets   845,662   853,561   796,954 
    Total assets $ 24,926,474  $24,912,524  $24,577,223 
    Liabilities and Stockholders' Equity         
    Deposits:         
    Interest-bearing $ 13,749,095  $13,612,493  $12,824,383 
    Noninterest-bearing   7,583,562   7,898,996   8,864,646 
    Total deposits   21,332,657   21,511,489   21,689,029 
    Short-term borrowings   500,000   500,000   75,000 
    Retirement benefits payable   103,285   99,685   102,577 
    Other liabilities   504,466   450,341   441,612 
    Total liabilities   22,440,408   22,561,515   22,308,218 
              
    Stockholders' equity         
    Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023, issued/outstanding: 141,330,663 / 127,609,934 shares as of September 30, 2023 and issued/outstanding: 140,963,918 / 127,363,327 shares as of December 31, 2022)   1,413   1,413   1,410 
    Additional paid-in capital   2,548,250   2,545,659   2,538,336 
    Retained earnings   837,859   823,895   736,544 
    Accumulated other comprehensive loss, net   (530,210)  (648,731)  (639,254)
    Treasury stock (13,721,778 shares as of December 31, 2023, 13,720,729 shares as of September 30, 2023 and 13,600,591 shares as of December 31, 2022)   (371,246)  (371,227)  (368,031)
    Total stockholders' equity   2,486,066   2,351,009   2,269,005 
    Total liabilities and stockholders' equity $ 24,926,474  $24,912,524  $24,577,223 
     


                              
    Average Balances and Interest Rates                       Table 4
      Three Months Ended  Three Months Ended  Three Months Ended  
      December 31, 2023 September 30, 2023 December 31, 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 $ 568.0 $ 7.8  5.39%  $608.6 $8.2 5.36%  $321.3 $2.9 3.64%
    Available-for-Sale Investment Securities                         
    Taxable   2,598.4   19.0  2.92  2,834.6  18.4 2.59  3,180.8  18.3 2.30 
    Non-Taxable   1.9    5.12  2.3   5.48  37.9  0.5 5.42 
    Held-to-Maturity Investment Securities                         
    Taxable   3,472.1   14.8  1.70  3,544.1  15.0 1.70  3,754.9  15.8 1.69 
    Non-Taxable   603.9   3.9  2.58  604.3  4.1 2.66  613.4  4.2 2.69 
    Total Investment Securities   6,676.3   37.7  2.25  6,985.3  37.5 2.14  7,587.0  38.8 2.04 
    Loans Held for Sale   0.7    7.41  0.4   6.63  0.1   6.50 
    Loans and Leases(1)                         
    Commercial and industrial   2,148.1   36.7  6.78  2,123.5  35.7 6.66  2,126.3  28.1 5.24 
    Commercial real estate   4,356.3   71.4  6.51  4,381.8  71.4 6.47  4,116.8  53.9 5.19 
    Construction   888.7   16.7  7.45  873.7  15.5 7.05  804.4  11.8 5.83 
    Residential:                         
    Residential mortgage   4,294.8   38.8  3.61  4,316.3  40.1 3.72  4,280.6  38.1 3.56 
    Home equity line   1,174.8   11.3  3.83  1,154.0  10.1 3.45  1,029.7  8.1 3.10 
    Consumer   1,132.4   18.4  6.43  1,172.8  18.3 6.19  1,220.9  17.1 5.55 
    Lease financing   354.2   3.6  4.03  327.3  3.7 4.48  297.4  2.9 3.92 
    Total Loans and Leases   14,349.3   196.9  5.45  14,349.4  194.8 5.39  13,876.1  160.0 4.58 
    Other Earning Assets   94.5    0.06  116.8  0.8 2.64  71.6  0.2 0.80 
    Total Earning Assets(2)   21,688.8   242.4  4.44  22,060.5  241.3 4.35  21,856.1  201.9 3.67 
    Cash and Due from Banks   240.8       276.0       286.4      
    Other Assets   2,475.1       2,391.4       2,433.1      
    Total Assets $ 24,404.7      $24,727.9      $24,575.6      
                              
    Interest-Bearing Liabilities                         
    Interest-Bearing Deposits                         
    Savings $ 6,067.2 $ 22.4  1.46%  $5,982.5 $19.2 1.27%   6,455.5 $10.3 0.63%
    Money Market   3,905.0   27.5  2.79  3,907.2  24.7 2.51  4,012.9  9.8 0.97 
    Time   3,390.7   32.3  3.78  3,362.7  30.8 3.63  2,163.2  8.1 1.48 
    Total Interest-Bearing Deposits   13,362.9   82.2  2.44  13,252.4  74.7 2.23  12,631.6  28.2 0.89 
    Federal Funds Purchased            45.5  0.5 4.09 
    Other Short-Term Borrowings   515.2   6.2  4.80  113.1  1.5 5.17      
    Long-Term Borrowings       440.2  5.3 4.83      
    Other Interest-Bearing Liabilities   42.1   0.8  7.44  89.1  1.2 5.17      
    Total Interest-Bearing Liabilities   13,920.2   89.2  2.54  13,894.8  82.7 2.36  12,677.1  28.7 0.90 
    Net Interest Income    $ 153.2      $158.6      $173.2   
    Interest Rate Spread        1.90%        1.99%        2.77%
    Net Interest Margin        2.81%        2.86%        3.15%
    Noninterest-Bearing Demand Deposits   7,545.3       7,959.7       9,093.6      
    Other Liabilities   564.5       506.0       591.9      
    Stockholders' Equity   2,374.7       2,367.4       2,213.0      
    Total Liabilities and Stockholders' Equity $ 24,404.7      $24,727.9      $24,575.6      

                                                                         

    (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 $1.4 million, $1.5 million and $1.4 million for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022, respectively.

                      
                      
    Average Balances and Interest Rates               Table 5
      Year Ended  Year Ended  
      December 31, 2023 December 31, 2022 
      Average Income/ Yield/ Average Income/ Yield/ 
    (dollars in millions)    Balance Expense Rate Balance Expense Rate 
    Earning Assets                                    
    Interest-Bearing Deposits in Other Banks $ 512.3 $ 26.5  5.18%  $867.6 $10.3 1.19%
    Available-for-Sale Investment Securities                 
    Taxable   2,871.8   73.8  2.57  4,650.1  83.2 1.79 
    Non-Taxable   10.2   0.6  5.55  180.0  4.9 2.74 
    Held-to-Maturity Investment Securities                 
    Taxable   3,579.0   60.7  1.70  2,728.2  45.5 1.67 
    Non-Taxable   607.7   15.9  2.61  460.6  12.5 2.71 
    Total Investment Securities   7,068.7   151.0  2.14  8,018.9  146.1 1.82 
    Loans Held for Sale   0.4    6.63  0.6   3.14 
    Loans and Leases(1)                 
    Commercial and industrial   2,182.3   141.0  6.46  2,019.5  78.4 3.88 
    Commercial real estate   4,257.9   266.0  6.25  3,895.3  153.2 3.93 
    Construction   877.7   62.1  7.08  755.0  32.5 4.30 
    Residential:                 
    Residential mortgage   4,308.0   156.4  3.63  4,200.2  145.5 3.46 
    Home equity line   1,131.1   39.3  3.47  965.0  26.5 2.75 
    Consumer   1,178.6   71.5  6.07  1,218.9  65.3 5.35 
    Lease financing   330.7   14.1  4.26  260.9  9.7 3.69 
    Total Loans and Leases   14,266.3   750.4  5.26  13,314.8  511.1 3.84 
    Other Earning Assets   104.3   1.3  1.20  70.9  0.6 0.89 
    Total Earning Assets(2)   21,952.0   929.2  4.23  22,272.8  668.1 3.00 
    Cash and Due from Banks   265.1       289.0      
    Other Assets   2,408.3       2,402.6      
    Total Assets $ 24,625.4      $24,964.4      
                      
    Interest-Bearing Liabilities                 
    Interest-Bearing Deposits                 
    Savings $ 6,124.7 $ 71.5  1.17%  $6,741.5 $19.2 0.29%
    Money Market   3,869.1   86.1  2.22  4,068.8  16.6 0.41 
    Time   3,040.0   100.6  3.31  1,826.7  13.4 0.73 
    Total Interest-Bearing Deposits   13,033.8   258.2  1.98  12,637.0  49.2 0.39 
    Federal Funds Purchased   17.2   0.8  4.45  11.5  0.5 4.08 
    Other Short-Term Borrowings   261.9   13.0  4.98      
    Long-Term Borrowings   261.6   12.5  4.78      
    Other Interest-Bearing Liabilities   57.1   3.0  5.15      
    Total Interest-Bearing Liabilities   13,631.6   287.5  2.11  12,648.5  49.7 0.39 
    Net Interest Income    $ 641.7      $618.4   
    Interest Rate Spread        2.12%        2.61%
    Net Interest Margin        2.92%        2.78%
    Noninterest-Bearing Demand Deposits   8,126.4       9,421.5      
    Other Liabilities   520.7       572.8      
    Stockholders' Equity   2,346.7       2,321.6      
    Total Liabilities and Stockholders' Equity $ 24,625.4      $24,964.4      

                                                                                

    (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 $5.6 million and $4.9 million for the years ended December 31, 2023 and 2022, respectively.

              
    Analysis of Change in Net Interest Income        Table 6
      Three Months Ended December 31, 2023
      Compared to September 30, 2023
    (dollars in millions) Volume Rate Total
    Change in Interest Income:                  
    Interest-Bearing Deposits in Other Banks $ (0.5) $ 0.1  $ (0.4)
    Available-for-Sale Investment Securities         
    Taxable   (1.6)   2.2    0.6 
    Held-to-Maturity Investment Securities         
    Taxable   (0.2)      (0.2)
    Non-Taxable      (0.2)   (0.2)
    Total Investment Securities   (1.8)   2.0    0.2 
    Loans and Leases         
    Commercial and industrial   0.4    0.6    1.0 
    Commercial real estate   (0.4)   0.4    
    Construction   0.3    0.9    1.2 
    Residential:         
    Residential mortgage   (0.2)   (1.1)   (1.3)
    Home equity line   0.1    1.1    1.2 
    Consumer   (0.6)   0.7    0.1 
    Lease financing   0.3    (0.4)   (0.1)
    Total Loans and Leases   (0.1)   2.2    2.1 
    Other Earning Assets   (0.2)   (0.6)   (0.8)
    Total Change in Interest Income   (2.6)   3.7    1.1 
              
    Change in Interest Expense:         
    Interest-Bearing Deposits         
    Savings   0.3    2.9    3.2 
    Money Market      2.8    2.8 
    Time   0.2    1.3    1.5 
    Total Interest-Bearing Deposits   0.5    7.0    7.5 
    Other Short-Term Borrowings   4.9    (0.2)   4.7 
    Long-Term Borrowings   (2.6)   (2.7)   (5.3)
    Other Interest-Bearing Liabilities   (0.8)   0.4    (0.4)
    Total Change in Interest Expense   2.0    4.5    6.5 
    Change in Net Interest Income $ (4.6) $ (0.8) $ (5.4)
     


              
    Analysis of Change in Net Interest Income        Table 7
      Three Months Ended December 31, 2023
      Compared to December 31, 2022
    (dollars in millions) Volume Rate Total
    Change in Interest Income:                  
    Interest-Bearing Deposits in Other Banks $ 3.0  $ 1.9  $ 4.9 
    Available-for-Sale Investment Securities         
    Taxable   (3.7)   4.4    0.7 
    Non-Taxable   (0.5)      (0.5)
    Held-to-Maturity Investment Securities         
    Taxable   (1.1)   0.1    (1.0)
    Non-Taxable   (0.1)   (0.2)   (0.3)
    Total Investment Securities   (5.4)   4.3    (1.1)
    Loans and Leases         
    Commercial and industrial   0.3    8.3    8.6 
    Commercial real estate   3.3    14.2    17.5 
    Construction   1.3    3.6    4.9 
    Residential:         
    Residential mortgage   0.1    0.6    0.7 
    Home equity line   1.2    2.0    3.2 
    Consumer   (1.3)   2.6    1.3 
    Lease financing   0.6    0.1    0.7 
    Total Loans and Leases   5.5    31.4    36.9 
    Other Earning Assets      (0.2)   (0.2)
    Total Change in Interest Income   3.1    37.4    40.5 
              
    Change in Interest Expense:         
    Interest-Bearing Deposits         
    Savings   (0.6)   12.7    12.1 
    Money Market   (0.2)   17.9    17.7 
    Time   6.4    17.8    24.2 
    Total Interest-Bearing Deposits   5.6    48.4    54.0 
    Federal Funds Purchased   (0.3)   (0.2)   (0.5)
    Other Short-Term Borrowings   6.2       6.2 
    Other Interest-Bearing Liabilities   0.8       0.8 
    Total Change in Interest Expense   12.3    48.2    60.5 
    Change in Net Interest Income $ (9.2) $ (10.8) $ (20.0)
     


              
    Analysis of Change in Net Interest Income        Table 8
      Year Ended December 31, 2023
      Compared to December 31, 2022
    (dollars in millions)    Volume    Rate    Total
    Change in Interest Income:         
    Interest-Bearing Deposits in Other Banks $ (5.8) $ 22.0  $ 16.2 
    Available-for-Sale Investment Securities         
    Taxable   (38.3)   28.9    (9.4)
    Non-Taxable   (6.9)   2.6    (4.3)
    Held-to-Maturity Investment Securities         
    Taxable   14.4    0.8    15.2 
    Non-Taxable   3.9    (0.5)   3.4 
    Total Investment Securities   (26.9)   31.8    4.9 
    Loans and Leases         
    Commercial and industrial   6.8    55.8    62.6 
    Commercial real estate   15.4    97.4    112.8 
    Construction   5.9    23.7    29.6 
    Residential:         
    Residential mortgage   3.7    7.2    10.9 
    Home equity line   5.1    7.7    12.8 
    Consumer   (2.3)   8.5    6.2 
    Lease financing   2.8    1.6    4.4 
    Total Loans and Leases   37.4    201.9    239.3 
    Other Earning Assets   0.4    0.3    0.7 
    Total Change in Interest Income   5.1    256.0    261.1 
              
    Change in Interest Expense:         
    Interest-Bearing Deposits         
    Savings   (1.9)   54.2    52.3 
    Money Market   (0.9)   70.4    69.5 
    Time   13.8    73.4    87.2 
    Total Interest-Bearing Deposits   11.0    198.0    209.0 
    Federal Funds Purchased   0.2    0.1    0.3 
    Other Short-Term Borrowings   13.0       13.0 
    Long-Term Borrowings   12.5       12.5 
    Other Interest-Bearing Liabilities   3.0       3.0 
    Total Change in Interest Expense   39.7    198.1    237.8 
    Change in Net Interest Income $ (34.6) $ 57.9  $ 23.3 
     


              
    Loans and Leases        Table 9
      December 31,  September 30,  December 31, 
    (dollars in thousands)    2023    2023    2022
    Commercial and industrial:         
    Commercial and industrial excluding Paycheck Protection Program loans $ 2,156,872 $2,091,379 $2,217,604
    Paycheck Protection Program loans   8,477  10,063  18,293
    Total commercial and industrial   2,165,349  2,101,442  2,235,897
    Commercial real estate   4,340,243  4,387,751  4,132,309
    Construction   900,292  885,112  844,643
    Residential:         
    Residential mortgage   4,283,315  4,303,924  4,302,788
    Home equity line   1,174,588  1,167,388  1,055,351
    Total residential   5,457,903  5,471,312  5,358,139
    Consumer   1,109,901  1,154,203  1,222,934
    Lease financing   379,809  332,515  298,090
    Total loans and leases $ 14,353,497 $14,332,335 $14,092,012
     


              
    Deposits        Table 10
      December 31,  September 30,  December 31, 
    (dollars in thousands)    2023    2023    2022
    Demand $ 7,583,562 $7,898,996 $8,864,646
    Savings   6,445,084  6,028,308  6,382,910
    Money Market   3,847,853  3,923,054  3,965,423
    Time   3,456,158  3,661,131  2,476,050
    Total Deposits $ 21,332,657 $21,511,489 $21,689,029
     


              
    Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More        Table 11
      December 31,  September 30,  December 31, 
    (dollars in thousands)    2023    2023    2022
    Non-Performing Assets         
    Non-Accrual Loans and Leases         
    Commercial Loans:         
    Commercial and industrial $ 970 $988 $1,215
    Commercial real estate   2,953    727
    Total Commercial Loans   3,923  988  1,942
    Residential Loans:         
    Residential mortgage   7,620  7,435  6,166
    Home equity line   7,052  6,200  3,797
    Total Residential Loans   14,672  13,635  9,963
    Total Non-Accrual Loans and Leases   18,595  14,623  11,905
    Other Real Estate Owned      91
    Total Non-Performing Assets $ 18,595 $14,623 $11,996
              
    Accruing Loans and Leases Past Due 90 Days or More         
    Commercial Loans:         
    Commercial and industrial $ 494 $289 $291
    Commercial real estate   300  170  
    Total Commercial Loans   794  459  291
    Residential mortgage    1,430  58
    Consumer   2,702  1,681  2,885
    Total Accruing Loans and Leases Past Due 90 Days or More $ 3,496 $3,570 $3,234
              
    Total Loans and Leases $ 14,353,497 $14,332,335 $14,092,012
     


                     
    Allowance for Credit Losses and Reserve for Unfunded Commitments Table 12
      For the Three Months Ended  For the Year Ended  
      December 31,  September 30,  December 31,  December 31,  December 31,  
    (dollars in thousands)    2023     2023     2022     2023  2022   
    Balance at Beginning of Period $ 192,570  $184,780  $178,304    177,735   187,584  
    Loans and Leases Charged-Off                
    Commercial Loans:                
    Commercial and industrial   (910)  (784)  (735)   (3,482)  (2,012) 
    Commercial real estate   (2,500)         (2,500)  (750) 
    Total Commercial Loans   (3,410)  (784)  (735)   (5,982)  (2,762) 
    Residential Loans:                
    Residential mortgage        (102)   (122)  (103) 
    Home equity line   (20)     (12)   (292)  (1,175) 
    Total Residential Loans   (20)     (114)   (414)  (1,278) 
    Consumer   (4,147)  (3,665)  (5,094)   (17,110)  (16,848) 
    Total Loans and Leases Charged-Off   (7,577)  (4,449)  (5,943)   (23,506)  (20,888) 
    Recoveries on Loans and Leases Previously Charged-Off                
    Commercial Loans:                
    Commercial and industrial   171   2,637   303    3,346   897  
    Commercial real estate              14  
    Lease financing              60  
    Total Commercial Loans   171   2,637   303    3,346   971  
    Residential Loans:                
    Residential mortgage   31   53   173    141   418  
    Home equity line   163   303   138    702   713  
    Total Residential Loans   194   356   311    843   1,131  
    Consumer   1,450   1,746   1,804    7,090   7,545  
    Total Recoveries on Loans and Leases Previously Charged-Off   1,815   4,739   2,418    11,279   9,647  
    Net Loans and Leases (Charged-Off) Recovered   (5,762)  290   (3,525)   (12,227)  (11,241) 
    Provision for Credit Losses   5,330   7,500   2,956    26,630   1,392  
    Balance at End of Period $ 192,138  $192,570  $177,735  $ 192,138  $177,735  
    Components:                
    Allowance for Credit Losses $ 156,533  $154,795  $143,900  $ 156,533  $143,900  
    Reserve for Unfunded Commitments   35,605   37,775   33,835    35,605   33,835  
    Total Allowance for Credit Losses and Reserve for Unfunded Commitments $ 192,138  $192,570  $177,735  $ 192,138  $177,735  
    Average Loans and Leases Outstanding $ 14,349,322  $14,349,402  $13,876,136  $ 14,266,291  $13,314,821  
    Ratio of Net Loans and Leases Charged-Off (Recovered) to Average Loans and Leases Outstanding(1)   0.16 %   (0.01)%   0.10 %    0.09 %   0.08 %
    Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding   1.09 %   1.08 %   1.02 %    1.09 %   1.02 %
    Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases  8.42x  10.59x  12.09x  8.42x  12.09x 
                     

                                                                       

    (1)   Annualized for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022.

                                
    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 $ 85,839 $ 273,663 $ 346,024 $ 32,753 $ 146,893 $ 141,681 $ 971,065 $ 1,823 $ 1,999,741
    Special Mention   1   44,069   80   653   1,032   1,290   22,807   14   69,946
    Substandard     342   230   677   1,686   829   8,330     12,094
    Other (1)   15,978   11,598   4,814   2,370   1,702   1,125   45,981     83,568
    Total Commercial and Industrial   101,818   329,672   351,148   36,453   151,313   144,925   1,048,183   1,837   2,165,349
    Current period gross charge-offs   130   70   75   87   168   2,952       3,482
                                
    Commercial Real Estate                           
    Risk rating:                           
    Pass   346,369   872,783   676,362   337,529   523,446   1,414,613   74,238   1,350   4,246,690
    Special Mention   2,307   7,618   41,320   1,359   13,550   11,998   819     78,971
    Substandard   205   5,079   2,003     2,953   2,545   1,655     14,440
    Other (1)             142       142
    Total Commercial Real Estate   348,881   885,480   719,685   338,888   539,949   1,429,298   76,712   1,350   4,340,243
    Current period gross charge-offs           2,500         2,500
                                
    Construction                           
    Risk rating:                           
    Pass   156,432   269,623   265,674   60,057   63,018   27,847   6,070     848,721
    Special Mention           189   665       854
    Other (1)   12,728   21,036   8,250   2,143   2,031   3,820   709     50,717
    Total Construction   169,160   290,659   273,924   62,200   65,238   32,332   6,779     900,292
    Current period gross charge-offs                  
                                
    Lease Financing                           
    Risk rating:                           
    Pass   145,914   82,833   18,680   31,791   30,299   68,520       378,037
    Special Mention   56   137   414   35           642
    Substandard   712   416       2         1,130
    Total Lease Financing   146,682   83,386   19,094   31,826   30,301   68,520       379,809
    Current period gross charge-offs                  
                                
    Total Commercial Lending $ 766,541 $ 1,589,197 $ 1,363,851 $ 469,367 $ 786,801 $ 1,675,075 $ 1,131,674 $ 3,187 $ 7,785,693
    Current period gross charge-offs $ 130 $ 70 $ 75 $ 87 $ 2,668 $ 2,952 $ $ $ 5,982
                                


                                
                           Revolving   
                           Loans   
                           Converted   
      Term Loans Revolving to Term   
      Amortized Cost Basis by Origination Year Loans Loans   
    (continued)                   Amortized Amortized   
    (dollars in thousands) 2023 2022 2021 2020 2019 Prior Cost Basis Cost Basis Total
    Residential Lending                           
    Residential Mortgage                           
    FICO:                           
    740 and greater $ 211,598 $ 529,296 $ 999,522 $ 529,881 $ 227,058 $ 987,251 $ $ $ 3,484,606
    680 - 739   36,975   67,205   117,337   68,122   33,148   130,387       453,174
    620 - 679   3,544   16,395   19,184   12,811   4,096   38,987       95,017
    550 - 619   1,305   6,521   1,917   2,492   398   11,679       24,312
    Less than 550       2,909   2,017   582   6,439       11,947
    No Score (3)   9,137   19,311   11,492   6,043   9,679   51,109       106,771
    Other (2)   15,802   17,528   17,432   12,534   8,599   25,513   10,080     107,488
    Total Residential Mortgage   278,361   656,256   1,169,793   633,900   283,560   1,251,365   10,080     4,283,315
    Current period gross charge-offs             122       122
                                
    Home Equity Line                           
    FICO:                           
    740 and greater               964,932   1,511   966,443
    680 - 739               151,716   1,920   153,636
    620 - 679               36,541   1,189   37,730
    550 - 619               9,896   1,012   10,908
    Less than 550               4,488   100   4,588
    No Score (3)               1,283     1,283
    Total Home Equity Line               1,168,856   5,732   1,174,588
    Current period gross charge-offs               273   19   292
                                
    Total Residential Lending $ 278,361 $ 656,256 $ 1,169,793 $ 633,900 $ 283,560 $ 1,251,365 $ 1,178,936 $ 5,732 $ 5,457,903
    Current period gross charge-offs $ $ $ $ $ $ 122 $ 273 $ 19 $ 414
                                
    Consumer Lending                           
    FICO:                           
    740 and greater   92,117   128,358   76,148   33,507   21,819   8,970   123,592   155   484,666
    680 - 739   68,865   71,031   37,925   17,116   13,270   5,690   76,645   401   290,943
    620 - 679   28,533   29,229   16,919   7,843   7,972   4,624   35,210   781   131,111
    550 - 619   4,996   10,859   7,760   4,917   4,651   2,986   13,223   925   50,317
    Less than 550   1,790   6,370   4,842   2,796   2,905   2,040   5,222   455   26,420
    No Score (3)   1,545   229       1   10   42,933   136   44,854
    Other (2)   361   368   982   335   1,059   1   78,484     81,590
    Total Consumer Lending $ 198,207 $ 246,444 $ 144,576 $ 66,514 $ 51,677 $ 24,321 $ 375,309 $ 2,853 $ 1,109,901
    Current period gross charge-offs $ 639 $ 2,400 $ 2,135 $ 1,142 $ 1,816 $ 2,622 $ 5,790 $ 566 $ 17,110
                                
    Total Loans and Leases $ 1,243,109 $ 2,491,897 $ 2,678,220 $ 1,169,781 $ 1,122,038 $ 2,950,761 $ 2,685,919 $ 11,772 $ 14,353,497
    Current period gross charge-offs $ 769 $ 2,470 $ 2,210 $ 1,229 $ 4,484 $ 5,696 $ 6,063 $ 585 $ 23,506

                                                                       

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

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

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

                     
    GAAP to Non-GAAP Reconciliation Table 14
      For the Three Months Ended  For the Year Ended  
      December 31,  September 30,  December 31,  December 31,  
    (dollars in thousands)    2023     2023    2022    2023     2022 
    Income Statement Data:                
    Net income $ 47,502 $58,221 $79,588 $ 234,983 $265,685 
                     
    Average total stockholders' equity $ 2,374,669 $2,367,422 $2,213,030 $ 2,346,713 $2,321,606 
    Less: average goodwill   995,492  995,492  995,492   995,492  995,492 
    Average tangible stockholders' equity $ 1,379,177 $1,371,930 $1,217,538 $ 1,351,221 $1,326,114 
                     
    Average total assets $ 24,404,727 $24,727,893 $24,575,648 $ 24,625,445 $24,964,422 
    Less: average goodwill   995,492  995,492  995,492   995,492  995,492 
    Average tangible assets $ 23,409,235 $23,732,401 $23,580,156 $ 23,629,953 $23,968,930 
                     
    Return on average total stockholders' equity(1)   7.94%   9.76%   14.27%    10.01%   11.44%  
    Return on average tangible stockholders' equity (non-GAAP)(1)   13.66%   16.84%   25.93%    17.39%   20.03%  
                     
    Return on average total assets(1)   0.77%   0.93%   1.28%    0.95%   1.06%  
    Return on average tangible assets (non-GAAP)(1)   0.81%   0.97%   1.34%    0.99%   1.11%  
                     


             
      As of As of As of 
      December 31,  September 30,  December 31,  
    (dollars in thousands, except per share amounts)    2023    2023    2022    
    Balance Sheet Data:          
    Total stockholders' equity $ 2,486,066 $2,351,009 $2,269,005 
    Less: goodwill   995,492  995,492  995,492 
    Tangible stockholders' equity $ 1,490,574 $1,355,517 $1,273,513 
               
    Total assets $ 24,926,474 $24,912,524 $24,577,223 
    Less: goodwill   995,492  995,492  995,492 
    Tangible assets $ 23,930,982 $23,917,032 $23,581,731 
               
    Shares outstanding   127,618,761  127,609,934  127,363,327 
               
    Total stockholders' equity to total assets   9.97%   9.44%   9.23%  
    Tangible stockholders' equity to tangible assets (non-GAAP)   6.23%   5.67%   5.40%  
               
    Book value per share $ 19.48 $18.42 $17.82 
    Tangible book value per share (non-GAAP) $ 11.68 $10.62 $10.00 

                                                                         

    (1)   Annualized for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022. 


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