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

    Источник: Nasdaq GlobeNewswire / 28 июл 2023 08:00:01   America/New_York

    HONOLULU, July 28, 2023 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended June 30, 2023.

    “I’m pleased to report that we had a solid second quarter in spite of a challenging interest rate environment,” said Bob Harrison, Chairman, President and CEO. “We grew loans and capital, credit quality remains excellent, and our profitability measures continue to be strong.”

    On July 19, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on September 1, 2023, to stockholders of record at the close of business on August 21, 2023.  

    Second Quarter 2023 Highlights:

    • Net income of $62.4 million, or $0.49 per diluted share
    • Total loans and leases increased $141.6 million versus prior quarter
    • Total deposits decreased $203.3 million versus prior quarter
    • Net interest margin decreased 20 basis points to 2.91%
    • Recorded a $5.0 million provision for credit losses
    • Board of Directors declared a quarterly dividend of $0.26 per share

    Balance Sheet 
    Total assets were $24.5 billion as of June 30, 2023, compared to $24.9 billion as of March 31, 2023.

    Gross loans and leases were $14.4 billion as of June 30, 2023, an increase of $141.6 million, or 1.0%, from $14.2 billion as of March 31, 2023.

    Total deposits were $21.1 billion as of June 30, 2023, a decrease of $203.3 million, or 1.0%, from $21.3 billion as of March 31, 2023.  

    Net Interest Income 
    Net interest income for the second quarter of 2023 was $159.9 million, a decrease of $7.3 million, or 4.4%, compared to $167.2 million for the prior quarter.  

    The net interest margin was 2.91% in the second quarter of 2023, a decrease of 20 basis points compared to 3.11% in the prior quarter.

    Provision Expense 
    During the quarter ended June 30, 2023, we recorded a $5.0 million provision for credit losses. In the quarter ended March 31, 2023, we recorded a $8.8 million provision for credit losses.

    Noninterest Income 
    Noninterest income was $47.3 million in the second quarter of 2023, a decrease of $1.7 million compared to noninterest income of $49.0 million in the prior quarter.     

    Noninterest Expense 
    Noninterest expense was $120.9 million in the second quarter of 2023, an increase of $2.3 million compared to noninterest expense of $118.6 million in the prior quarter.  

    The efficiency ratio was 58.0% and 54.5% for the quarters ended June 30, 2023 and March 31, 2023, respectively.

    Taxes 
    The effective tax rate was 23.3% and 24.8% for the quarters ended June 30, 2023 and March 31, 2023, respectively.

    Asset Quality 
    The allowance for credit losses was $148.6 million, or 1.03% of total loans and leases, as of June 30, 2023, compared to $147.1 million, or 1.03% of total loans and leases, as of March 31, 2023. The reserve for unfunded commitments was $36.2 million as of both June 30, 2023 and March 31, 2023.   Net charge-offs were $3.5 million, or 0.10% of average loans and leases on an annualized basis, for the quarter ended June 30, 2023, compared to net charge-offs of $3.2 million, or 0.09% of average loans and leases on an annualized basis, for the quarter ended March 31, 2023. Total non-performing assets were $13.2 million, or 0.09% of total loans and leases and other real estate owned, on June 30, 2023, compared to total non-performing assets of $13.8 million, or 0.10% of total loans and leases and other real estate owned, on March 31, 2023.

    Capital 
    Total stockholders' equity was $2.4 billion and $2.3 billion on June 30, 2023 and March 31, 2023, respectively.    

    The tier 1 leverage, common equity tier 1 and total capital ratios were 8.30%, 12.05% and 13.17%, respectively, on June 30, 2023, compared with 8.26%, 11.97%, and 13.09%, respectively, on March 31, 2023.

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

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

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

    To access the call by phone, please register via the following link: https://register.vevent.com/register/BI348950fc095448439d48b25a0e9c5697, 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 quarter ended March 31, 2023.

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

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

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


                     
    Financial Highlights Table 1
      For the Three Months Ended For the Six Months Ended 
      June 30, March 31, June 30, June 30, 
    (dollars in thousands, except per share data) 2023 2023 2022 2023 2022  
    Operating Results:                
    Net interest income $159,939 $167,247 $145,147 $327,186 $279,019  
    Provision for credit losses  5,000  8,800  1,000  13,800  (4,747) 
    Noninterest income  47,348  49,023  44,137  96,371  85,517  
    Noninterest expense  120,881  118,567  109,175  239,448  213,217  
    Net income  62,442  66,818  59,360  129,260  117,079  
    Basic earnings per share  0.49  0.52  0.46  1.01  0.92  
    Diluted earnings per share  0.49  0.52  0.46  1.01  0.91  
    Dividends declared per share  0.26  0.26  0.26  0.52  0.52  
    Dividend payout ratio  53.06% 50.00% 56.52% 51.49% 57.14 %
    Performance Ratios(1):                
    Net interest margin  2.91% 3.11% 2.60% 3.01% 2.51 %
    Efficiency ratio  57.96% 54.46% 57.33% 56.17% 58.15 %
    Return on average total assets  1.01% 1.10% 0.94% 1.06% 0.94 %
    Return on average tangible assets (non-GAAP)(2)  1.05% 1.15% 0.98% 1.10% 0.98 %
    Return on average total stockholders' equity  10.68% 11.78% 10.52% 11.23% 9.82 %
    Return on average tangible stockholders' equity (non-GAAP)(2)  18.57% 20.78% 18.79% 19.65% 16.76 %
    Average Balances:                
    Average loans and leases $14,283,222 $14,079,337 $13,058,558 $14,181,842 $12,939,745  
    Average earning assets  22,186,316  21,873,259  22,520,605  22,030,652  22,492,066  
    Average assets  24,821,486  24,548,124  25,250,176  24,685,560  25,165,783  
    Average deposits  21,057,259  21,468,624  22,401,558  21,261,805  22,182,406  
    Average stockholders' equity  2,344,285  2,299,422  2,262,654  2,321,977  2,404,471  
    Market Value Per Share:                
    Closing  18.01  20.63  22.80  18.01  22.80  
    High  21.00  28.28  28.44  28.28  31.16  
    Low  15.08  19.68  21.49  15.08  21.49  


      As of As of As of As of 
      June 30, March 31, December 31, June 30, 
    (dollars in thousands, except per share data) 2023 2023 2022 2022 
    Balance Sheet Data:             
    Loans and leases $14,362,832 $14,221,272 $14,092,012 $13,262,781 
    Total assets  24,511,566  24,884,207  24,577,223  25,377,533 
    Total deposits  21,078,166  21,281,500  21,689,029  22,601,454 
    Short-term borrowings    250,000  75,000   
    Long-term borrowings  500,000  500,000     
    Total stockholders' equity  2,359,738  2,329,012  2,269,005  2,252,611 
                  
    Per Share of Common Stock:             
    Book value $18.49 $18.26 $17.82 $17.67 
    Tangible book value (non-GAAP)(2)  10.69  10.45  10.00  9.86 
                  
    Asset Quality Ratios:             
    Non-accrual loans and leases / total loans and leases  0.09% 0.10% 0.08% 0.06%
    Allowance for credit losses for loans and leases / total loans and leases  1.03% 1.03% 1.02% 1.12%
                  
    Capital Ratios:             
    Common Equity Tier 1 Capital Ratio  12.05% 11.97% 11.82% 11.98%
    Tier 1 Capital Ratio  12.05% 11.97% 11.82% 11.98%
    Total Capital Ratio  13.17% 13.09% 12.92% 13.14%
    Tier 1 Leverage Ratio  8.30% 8.26% 8.11% 7.54%
    Total stockholders' equity to total assets  9.63% 9.36% 9.23% 8.88%
    Tangible stockholders' equity to tangible assets (non-GAAP)(2)  5.80% 5.58% 5.40% 5.16%
                  
    Non-Financial Data:             
    Number of branches  51  51  51  51 
    Number of ATMs  296  296  294  297 
    Number of Full-Time Equivalent Employees  2,126  2,100  2,063  2,021 

    _____________________

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

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

                    
    Consolidated Statements of Income Table 2
      For the Three Months Ended For the Six Months Ended
      June 30, March 31, June 30, June 30,
    (dollars in thousands, except per share amounts) 2023 2023 2022  2023 2022 
    Interest income               
    Loans and lease financing $185,340 $172,339 $111,916  $357,679 $215,648 
    Available-for-sale investment securities  18,094  18,688  16,643   36,782  48,750 
    Held-to-maturity investment securities  18,282  18,957  18,289   37,239  18,289 
    Other  7,489  3,561  2,896   11,050  3,678 
    Total interest income  229,205  213,545  149,744   442,750  286,365 
    Interest expense               
    Deposits  58,071  43,284  4,597   101,355  7,346 
    Short-term and long-term borrowings  10,656  2,563     13,219   
    Other  539  451     990   
    Total interest expense  69,266  46,298  4,597   115,564  7,346 
    Net interest income  159,939  167,247  145,147   327,186  279,019 
    Provision for credit losses  5,000  8,800  1,000   13,800  (4,747)
    Net interest income after provision for credit losses  154,939  158,447  144,147   313,386  283,766 
    Noninterest income               
    Service charges on deposit accounts  7,246  7,231  6,843   14,477  14,344 
    Credit and debit card fees  15,461  16,298  17,056   31,759  31,906 
    Other service charges and fees  9,056  9,162  9,018   18,218  18,672 
    Trust and investment services income  9,448  9,614  8,759   19,062  17,642 
    Bank-owned life insurance  3,271  5,120  (859)  8,391  (1,276)
    Other  2,866  1,598  3,320   4,464  4,229 
    Total noninterest income  47,348  49,023  44,137   96,371  85,517 
    Noninterest expense               
    Salaries and employee benefits  57,904  56,032  49,902   113,936  98,128 
    Contracted services and professional fees  17,498  16,313  18,617   33,811  35,764 
    Occupancy  7,554  7,782  7,334   15,336  14,744 
    Equipment  11,000  9,736  7,754   20,736  13,731 
    Regulatory assessment and fees  3,676  3,836  2,301   7,512  4,525 
    Advertising and marketing  1,891  1,994  1,994   3,885  4,022 
    Card rewards program  7,681  8,085  7,285   15,766  14,168 
    Other  13,677  14,789  13,988   28,466  28,135 
    Total noninterest expense  120,881  118,567  109,175   239,448  213,217 
    Income before provision for income taxes  81,406  88,903  79,109   170,309  156,066 
    Provision for income taxes  18,964  22,085  19,749   41,049  38,987 
    Net income $62,442 $66,818 $59,360  $129,260 $117,079 
    Basic earnings per share $0.49 $0.52 $0.46  $1.01 $0.92 
    Diluted earnings per share $0.49 $0.52 $0.46  $1.01 $0.91 
    Basic weighted-average outstanding shares  127,591,371  127,453,820  127,672,244   127,522,975  127,614,564 
    Diluted weighted-average outstanding shares  127,832,351  128,033,812  128,014,777   127,901,225  128,108,630 


                 
    Consolidated Balance Sheets Table 3
      June 30, March 31, December 31, June 30,
    (dollars in thousands, except share amount) 2023
     2023
     2022
     2022
    Assets            
    Cash and due from banks $318,333  $253,705  $297,502  $279,629 
    Interest-bearing deposits in other banks  239,798   611,887   229,122   1,254,047 
    Investment securities:            
    Available-for-sale, at fair value (amortized cost: $3,296,825 as of June 30, 2023, $3,427,708 as of March 31, 2023, $3,549,599 as of December 31, 2022 and $4,267,809 as of June 30, 2022)  2,909,372   3,054,280   3,151,133   3,967,746 
    Held-to-maturity, at amortized cost (fair value: $3,697,261 as of June 30, 2023, $3,824,478 as of March 31, 2023, $3,814,822 as of December 31, 2022 and $3,910,780 as of June 30, 2022)  4,180,408   4,261,361   4,320,639   4,093,215 
    Loans held for sale           180 
    Loans and leases  14,362,832   14,221,272   14,092,012   13,262,781 
    Less: allowance for credit losses  148,581   147,122   143,900   148,942 
    Net loans and leases  14,214,251   14,074,150   13,948,112   13,113,839 
                 
    Premises and equipment, net  277,817   278,121   280,355   310,047 
    Other real estate owned and repossessed personal property     91   91    
    Accrued interest receivable  80,710   79,200   78,194   63,240 
    Bank-owned life insurance  476,177   473,255   473,067   470,542 
    Goodwill  995,492   995,492   995,492   995,492 
    Mortgage servicing rights  6,072   6,299   6,562   7,152 
    Other assets  813,136   796,366   796,954   822,404 
    Total assets $24,511,566  $24,884,207  $24,577,223  $25,377,533 
    Liabilities and Stockholders' Equity            
    Deposits:            
    Interest-bearing $12,911,539  $12,579,155  $12,824,383  $12,990,571 
    Noninterest-bearing  8,166,627   8,702,345   8,864,646   9,610,883 
    Total deposits  21,078,166   21,281,500   21,689,029   22,601,454 
    Short-term borrowings     250,000   75,000    
    Long-term borrowings  500,000   500,000       
    Retirement benefits payable  100,671   101,622   102,577   134,151 
    Other liabilities  472,991   422,073   441,612   389,317 
    Total liabilities  22,151,828   22,555,195   22,308,218   23,124,922 
                 
    Stockholders' equity            
    Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,327,860 / 127,608,037 shares as of June 30, 2023, issued/outstanding: 141,291,086 / 127,573,680 shares as of March 31, 2023, issued/outstanding: 140,963,918 / 127,363,327 shares as of December 31, 2022 and issued/outstanding: 140,943,908 / 127,451,087 shares as of June 30, 2022)  1,413   1,413   1,410   1,409 
    Additional paid-in capital  2,543,226   2,540,653   2,538,336   2,533,407 
    Retained earnings  799,045   769,791   736,544   654,777 
    Accumulated other comprehensive loss, net  (612,736)  (611,679)  (639,254)  (571,457)
    Treasury stock (13,719,823 shares as of June 30, 2023, 13,717,406 shares as of March 31, 2023, 13,600,591 shares as of December 31, 2022 and 13,492,821 shares as of June 30, 2022)  (371,210)  (371,166)  (368,031)  (365,525)
    Total stockholders' equity  2,359,738   2,329,012   2,269,005   2,252,611 
    Total liabilities and stockholders' equity $24,511,566  $24,884,207  $24,577,223  $25,377,533 


                              
    Average Balances and Interest Rates                       Table 4
      Three Months Ended Three Months Ended Three Months Ended 
      June 30, 2023 March 31, 2023 June 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 $569.3 $7.2 5.07%$299.6 $3.4 4.60%$1,297.3 $2.8 0.85%
    Available-for-Sale Investment Securities                         
    Taxable  2,978.6  18.0 2.42  3,081.4  18.4 2.39  3,946.4  16.6 1.68 
    Non-Taxable  5.8  0.1 5.74  31.1  0.4 5.55  8.4  0.1 5.26 
    Held-to-Maturity Investment Securities                         
    Taxable  3,618.7  15.3 1.69  3,683.8  15.7 1.70  3,533.6  15.0 1.70 
    Non-Taxable  610.4  3.7 2.46  612.2  4.1 2.74  607.0  4.1 2.71 
    Total Investment Securities  7,213.5  37.1 2.06  7,408.5  38.6 2.09  8,095.4  35.8 1.77 
    Loans Held for Sale  0.5   5.87  0.1   5.53  0.3   5.06 
    Loans and Leases(1)                         
    Commercial and industrial  2,265.7  36.2 6.41  2,192.9  32.4 5.98  1,951.3  15.0 3.09 
    Commercial real estate  4,183.6  64.9 6.22  4,105.7  58.3 5.76  3,808.9  30.7 3.23 
    Construction  874.3  15.2 6.96  873.9  14.7 6.83  711.3  6.3 3.57 
    Residential:                         
    Residential mortgage  4,314.0  39.1 3.62  4,307.0  38.4 3.57  4,183.0  36.7 3.51 
    Home equity line  1,119.3  9.2 3.31  1,074.9  8.7 3.27  945.7  5.9 2.49 
    Consumer  1,196.6  17.7 5.92  1,213.5  17.2 5.75  1,218.0  15.5 5.09 
    Lease financing  329.7  3.6 4.43  311.4  3.1 4.10  240.4  2.1 3.53 
    Total Loans and Leases  14,283.2  185.9 5.22  14,079.3  172.8 4.96  13,058.6  112.2 3.44 
    Other Earning Assets  119.8  0.3 0.99  85.8  0.2 0.76  69.0  0.1 0.79 
    Total Earning Assets(2)  22,186.3  230.5 4.16  21,873.3  215.0 3.97  22,520.6  150.9 2.68 
    Cash and Due from Banks  257.9       286.1       300.8      
    Other Assets  2,377.3       2,388.7       2,428.8      
    Total Assets $24,821.5      $24,548.1      $25,250.2      
                              
    Interest-Bearing Liabilities                         
    Interest-Bearing Deposits                         
    Savings $6,099.4 $16.1 1.05%$6,354.3 $13.9 0.89% 6,971.3 $1.7 0.10%
    Money Market  3,809.8  19.6 2.07  3,853.5  14.3 1.50  4,127.4  1.4 0.14 
    Time  2,877.8  22.4 3.12  2,515.6  15.1 2.44  1,671.4  1.5 0.36 
    Total Interest-Bearing Deposits  12,787.0  58.1 1.82  12,723.4  43.3 1.38  12,770.1  4.6 0.14 
    Federal Funds Purchased  2.9   5.00  67.1  0.7 4.43      
    Other Short-Term Borrowings  362.9  4.7 5.16  52.8  0.7 5.02      
    Long-Term Borrowings  500.0  6.0 4.78  105.5  1.2 4.52      
    Other Interest-Bearing Liabilities  54.0  0.5 4.00  42.8  0.4 4.27      
    Total Interest-Bearing Liabilities  13,706.8  69.3 2.03  12,991.6  46.3 1.45  12,770.1  4.6 0.14 
    Net Interest Income    $161.2      $168.7      $146.3   
    Interest Rate Spread       2.13%      2.52%      2.54%
    Net Interest Margin       2.91%      3.11%      2.60%
    Noninterest-Bearing Demand Deposits  8,270.3       8,745.2       9,631.4      
    Other Liabilities  500.1       511.9       586.0      
    Stockholders' Equity  2,344.3       2,299.4       2,262.7      
    Total Liabilities and Stockholders' Equity $24,821.5      $24,548.1      $25,250.2      

    ______________________________

    (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 $1.3 million, $1.4 million and $1.2 million for the three months ended June 30, 2023, March 31, 2023 and June 30, 2022, respectively.

                      
    Average Balances and Interest Rates               Table 5
      Six Months Ended Six Months Ended 
      June 30, 2023 June 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 $435.2 $10.6 4.91%$1,218.3 $3.3 0.55%
    Available-for-Sale Investment Securities                 
    Taxable  3,029.7  36.4 2.41  5,862.7  45.7 1.56 
    Non-Taxable  18.4  0.5 5.58  320.8  3.9 2.41 
    Held-to-Maturity Investment Securities                 
    Taxable  3,651.1  30.9 1.70  1,776.6  15.0 1.69 
    Non-Taxable  611.3  7.9 2.60  305.2  4.1 2.71 
    Total Investment Securities  7,310.5  75.7 2.08  8,265.3  68.7 1.66 
    Loans Held for Sale  0.3   5.79  0.8   2.60 
    Loans and Leases(1)                 
    Commercial and industrial  2,229.5  68.6 6.20  1,962.1  29.7 3.05 
    Commercial real estate  4,144.9  123.2 5.99  3,721.0  56.4 3.06 
    Construction  874.1  29.9 6.89  738.9  12.1 3.30 
    Residential:                 
    Residential mortgage  4,310.5  77.5 3.59  4,147.2  71.5 3.45 
    Home equity line  1,097.2  17.9 3.29  918.8  11.3 2.48 
    Consumer  1,205.0  34.8 5.84  1,218.3  31.1 5.14 
    Lease financing  320.6  6.8 4.27  233.4  4.0 3.48 
    Total Loans and Leases  14,181.8  358.7 5.09  12,939.7  216.1 3.36 
    Other Earning Assets  102.9  0.5 0.90  68.0  0.4 1.05 
    Total Earning Assets(2)  22,030.7  445.5 4.07  22,492.1  288.5 2.58 
    Cash and Due from Banks  271.9       296.5      
    Other Assets  2,383.0       2,377.2      
    Total Assets $24,685.6      $25,165.8      
                      
    Interest-Bearing Liabilities                 
    Interest-Bearing Deposits                 
    Savings $6,226.2 $30.0 0.97%$6,820.7 $2.2 0.07%
    Money Market  3,831.5  33.9 1.78  4,088.3  2.0 0.09 
    Time  2,697.7  37.5 2.80  1,709.8  3.2 0.38 
    Total Interest-Bearing Deposits  12,755.4  101.4 1.60  12,618.8  7.4 0.12 
    Federal Funds Purchased  34.8  0.8 4.45      
    Other Short-Term Borrowings  208.7  5.3 5.14      
    Long-Term Borrowings  303.8  7.1 4.73      
    Other Interest-Bearing Liabilities  48.5  1.0 4.12      
    Total Interest-Bearing Liabilities  13,351.2  115.6 1.75  12,618.8  7.4 0.12 
    Net Interest Income    $329.9      $281.1   
    Interest Rate Spread       2.32%      2.46%
    Net Interest Margin       3.01%      2.51%
    Noninterest-Bearing Demand Deposits  8,506.4       9,563.6      
    Other Liabilities  506.0       578.9      
    Stockholders' Equity  2,322.0       2,404.5      
    Total Liabilities and Stockholders' Equity $24,685.6      $25,165.8      

    ______________________________

    (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 $2.7 million and $2.1 million for the six months ended June 30, 2023 and 2022, respectively.

              
    Analysis of Change in Net Interest Income        Table 6
      Three Months Ended June 30, 2023
      Compared to March 31, 2023
    (dollars in millions) Volume Rate Total
    Change in Interest Income:         
    Interest-Bearing Deposits in Other Banks $3.4  $0.4  $3.8 
    Available-for-Sale Investment Securities         
    Taxable  (0.6)  0.2   (0.4)
    Non-Taxable  (0.3)     (0.3)
    Held-to-Maturity Investment Securities         
    Taxable  (0.3)  (0.1)  (0.4)
    Non-Taxable     (0.4)  (0.4)
    Total Investment Securities  (1.2)  (0.3)  (1.5)
    Loans and Leases         
    Commercial and industrial  1.2   2.6   3.8 
    Commercial real estate  1.3   5.3   6.6 
    Construction     0.5   0.5 
    Residential:         
    Residential mortgage  0.1   0.6   0.7 
    Home equity line  0.4   0.1   0.5 
    Consumer  (0.2)  0.7   0.5 
    Lease financing  0.2   0.3   0.5 
    Total Loans and Leases  3.0   10.1   13.1 
    Other Earning Assets  0.1      0.1 
    Total Change in Interest Income  5.3   10.2   15.5 
              
    Change in Interest Expense:         
    Interest-Bearing Deposits         
    Savings  (0.5)  2.7   2.2 
    Money Market  (0.2)  5.5   5.3 
    Time  2.5   4.8   7.3 
    Total Interest-Bearing Deposits  1.8   13.0   14.8 
    Federal Funds Purchased  (0.8)  0.1   (0.7)
    Other Short-Term Borrowings  4.0      4.0 
    Long-Term Borrowings  4.7   0.1   4.8 
    Other Interest-Bearing Liabilities  0.1      0.1 
    Total Change in Interest Expense  9.8   13.2   23.0 
    Change in Net Interest Income $(4.5) $(3.0) $(7.5)


              
    Analysis of Change in Net Interest Income        Table 7
      Three Months Ended June 30, 2023
      Compared to June 30, 2022
    (dollars in millions) Volume Rate Total
    Change in Interest Income:         
    Interest-Bearing Deposits in Other Banks $(2.3) $6.7  $4.4 
    Available-for-Sale Investment Securities         
    Taxable  (4.7)  6.1   1.4 
    Held-to-Maturity Investment Securities         
    Taxable  0.3      0.3 
    Non-Taxable     (0.4)  (0.4)
    Total Investment Securities  (4.4)  5.7   1.3 
    Loans and Leases         
    Commercial and industrial  2.8   18.4   21.2 
    Commercial real estate  3.3   30.9   34.2 
    Construction  1.7   7.2   8.9 
    Residential:         
    Residential mortgage  1.2   1.2   2.4 
    Home equity line  1.2   2.1   3.3 
    Consumer  (0.3)  2.5   2.2 
    Lease financing  0.9   0.6   1.5 
    Total Loans and Leases  10.8   62.9   73.7 
    Other Earning Assets  0.1   0.1   0.2 
    Total Change in Interest Income  4.2   75.4   79.6 
              
    Change in Interest Expense:         
    Interest-Bearing Deposits         
    Savings  (0.2)  14.6   14.4 
    Money Market  (0.1)  18.3   18.2 
    Time  1.8   19.1   20.9 
    Total Interest-Bearing Deposits  1.5   52.0   53.5 
    Other Short-Term Borrowings  4.7      4.7 
    Long-Term Borrowings  6.0      6.0 
    Other Interest-Bearing Liabilities  0.5      0.5 
    Total Change in Interest Expense  12.7   52.0   64.7 
    Change in Net Interest Income $(8.5) $23.4  $14.9 


              
    Analysis of Change in Net Interest Income        Table 8
      Six Months Ended June 30, 2023
      Compared to June 30, 2022
    (dollars in millions) Volume Rate Total
    Change in Interest Income:         
    Interest-Bearing Deposits in Other Banks $(3.4) $10.7  $7.3 
    Available-for-Sale Investment Securities         
    Taxable  (27.6)  18.3   (9.3)
    Non-Taxable  (5.6)  2.2   (3.4)
    Held-to-Maturity Investment Securities         
    Taxable  15.8   0.1   15.9 
    Non-Taxable  4.0   (0.2)  3.8 
    Total Investment Securities  (13.4)  20.4   7.0 
    Loans and Leases         
    Commercial and industrial  4.5   34.4   38.9 
    Commercial real estate  7.1   59.7   66.8 
    Construction  2.5   15.3   17.8 
    Residential:         
    Residential mortgage  3.0   3.0   6.0 
    Home equity line  2.5   4.1   6.6 
    Consumer  (0.4)  4.1   3.7 
    Lease financing  1.7   1.1   2.8 
    Total Loans and Leases  20.9   121.7   142.6 
    Other Earning Assets  0.2   (0.1)  0.1 
    Total Change in Interest Income  4.3   152.7   157.0 
              
    Change in Interest Expense:         
    Interest-Bearing Deposits         
    Savings  (0.2)  28.0   27.8 
    Money Market  (0.1)  32.0   31.9 
    Time  2.8   31.5   34.3 
    Total Interest-Bearing Deposits  2.5   91.5   94.0 
    Federal Funds Purchased  0.8      0.8 
    Other Short-Term Borrowings  5.3      5.3 
    Long-Term Borrowings  7.1      7.1 
    Other Interest-Bearing Liabilities  1.0      1.0 
    Total Change in Interest Expense  16.7   91.5   108.2 
    Change in Net Interest Income $(12.4) $61.2  $48.8 


                 
    Loans and Leases           Table 9
      June 30, March 31, December 31, June 30,
    (dollars in thousands) 2023 2023 2022 2022
    Commercial and industrial:            
    Commercial and industrial excluding Paycheck Protection Program loans $2,175,841 $2,254,506 $2,217,604 $1,898,899
    Paycheck Protection Program loans  11,990  13,826  18,293  43,233
    Total commercial and industrial  2,187,831  2,268,332  2,235,897  1,942,132
    Commercial real estate  4,290,948  4,106,200  4,132,309  3,956,828
    Construction  913,837  913,959  844,643  727,771
    Residential:            
    Residential mortgage  4,317,537  4,318,742  4,302,788  4,212,768
    Home equity line  1,138,163  1,095,365  1,055,351  971,569
    Total residential  5,455,700  5,414,107  5,358,139  5,184,337
    Consumer  1,182,116  1,191,552  1,222,934  1,207,051
    Lease financing  332,400  327,122  298,090  244,662
    Total loans and leases $14,362,832 $14,221,272 $14,092,012 $13,262,781


                 
    Deposits           Table 10
      June 30, March 31, December 31, June 30,
    (dollars in thousands) 2023 2023 2022 2022
    Demand $8,166,627 $8,702,345 $8,864,646 $9,610,883
    Savings  5,835,975  6,173,398  6,382,910  7,243,185
    Money Market  3,767,792  3,818,355  3,965,423  4,079,706
    Time  3,307,772  2,587,402  2,476,050  1,667,680
    Total Deposits $21,078,166 $21,281,500 $21,689,029 $22,601,454


                 
    Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More           Table 11
      June 30,  March 31,  December 31,  June 30, 
    (dollars in thousands)    2023    2023    2022    2022
    Non-Performing Assets            
    Non-Accrual Loans and Leases            
    Commercial Loans:            
    Commercial and industrial $ 1,024 $1,158 $1,215 $682
    Commercial real estate    727  727  727
    Total Commercial Loans   1,024  1,885  1,942  1,409
    Residential Loans:            
    Residential mortgage   6,097  6,896  6,166  6,450
    Home equity line   6,107  4,903  3,797  
    Total Residential Loans   12,204  11,799  9,963  6,450
    Total Non-Accrual Loans and Leases   13,228  13,684  11,905  7,859
    Other Real Estate Owned    91  91  
    Total Non-Performing Assets $ 13,228 $13,775 $11,996 $7,859
                 
    Accruing Loans and Leases Past Due 90 Days or More            
    Commercial Loans:            
    Commercial and industrial $ 599 $461 $291 $2,230
    Commercial real estate   619  1,346    176
    Construction    102    352
    Total Commercial Loans   1,218  1,909  291  2,758
    Residential Loans:            
    Residential mortgage   58  58  58  750
    Home equity line        1,039
    Total Residential Loans   58  58  58  1,789
    Consumer   1,975  2,502  2,885  1,218
    Total Accruing Loans and Leases Past Due 90 Days or More $ 3,251 $4,469 $3,234 $5,765
                 
    Total Loans and Leases $ 14,362,832 $14,221,272 $14,092,012 $13,262,781


                     
    Allowance for Credit Losses and Reserve for Unfunded Commitments Table 12
      For the Three Months Ended For the Six Months Ended 
      June 30, March 31, June 30, June 30, June 30, 
    (dollars in thousands) 2023
     2023
     2022
     2023
     2022
     
    Balance at Beginning of Period $183,321  $177,735  $179,238   177,735   187,584  
    Loans and Leases Charged-Off                
    Commercial and industrial  (997)  (791)  (243)  (1,788)  (949) 
    Residential Loans:                
    Residential mortgage     (122)     (122)    
    Home equity line  (137)  (135)  (1,120)  (272)  (1,163) 
    Total Residential Loans  (137)  (257)  (1,120)  (394)  (1,163) 
    Consumer  (4,516)  (4,782)  (3,659)  (9,298)  (7,768) 
    Total Loans and Leases Charged-Off  (5,650)  (5,830)  (5,022)  (11,480)  (9,880) 
    Recoveries on Loans and Leases Previously Charged-Off                
    Commercial Loans:                
    Commercial and industrial  292   246   301   538   354  
    Commercial real estate              14  
    Lease financing        60      60  
    Total Commercial Loans  292   246   361   538   428  
    Residential Loans:                
    Residential mortgage  30   27   192   57   208  
    Home equity line  59   177   191   236   219  
    Total Residential Loans  89   204   383   293   427  
    Consumer  1,728   2,166   1,940   3,894   4,088  
    Total Recoveries on Loans and Leases Previously Charged-Off  2,109   2,616   2,684   4,725   4,943  
    Net Loans and Leases Charged-Off  (3,541)  (3,214)  (2,338)  (6,755)  (4,937) 
    Provision for Credit Losses  5,000   8,800   1,000   13,800   (4,747) 
    Balance at End of Period $184,780  $183,321  $177,900  $184,780  $177,900  
    Components:                
    Allowance for Credit Losses $148,581  $147,122  $148,942  $148,581  $148,942  
    Reserve for Unfunded Commitments  36,199   36,199   28,958   36,199   28,958  
    Total Allowance for Credit Losses and Reserve for Unfunded Commitments $184,780  $183,321  $177,900  $184,780  $177,900  
    Average Loans and Leases Outstanding $14,283,222  $14,079,337  $13,058,558  $14,181,842  $12,939,745  
    Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)  0.10 % 0.09 % 0.07 % 0.10 % 0.08 %
    Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding  1.03 % 1.03 % 1.12 % 1.03 % 1.12 %
    Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases  11.23x  10.75x  18.95x  11.23x  18.95x 

    _____________________________

    (1)   Annualized for the three and six months ended June 30, 2023 and 2022 and three months ended March 31, 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 $33,877 $299,913 $385,159 $38,769 $157,794 $165,747 $952,182 $15,003 $2,048,444
    Special Mention  103  31,193  154  849  2,397  1,481  2,967  186  39,330
    Substandard  352  563  260  936  819  1,100  12,539  17  16,586
    Other(1)  11,743  13,284  6,301  3,275  2,644  1,668  44,556    83,471
    Total Commercial and Industrial  46,075  344,953  391,874  43,829  163,654  169,996  1,012,244  15,206  2,187,831
    Current period gross charge-offs  72  60  9  28  92  1,527      1,788
                                
    Commercial Real Estate                           
    Risk rating:                           
    Pass  212,159  876,558  655,847  333,142  564,881  1,499,805  72,447    4,214,839
    Special Mention  1,737  156    547  6,983  12,389  12,952    34,764
    Substandard    5,141    171    35,883  2    41,197
    Other(1)            148      148
    Total Commercial Real Estate  213,896  881,855  655,847  333,860  571,864  1,548,225  85,401    4,290,948
    Current period gross charge-offs                  
                                
    Construction                           
    Risk rating:                           
    Pass  77,826  182,679  365,959  76,728  61,906  82,554  6,562    854,214
    Special Mention          205        205
    Other(1)  6,601  26,882  15,766  3,261  2,136  4,067  705    59,418
    Total Construction  84,427  209,561  381,725  79,989  64,247  86,621  7,267    913,837
    Current period gross charge-offs                  
                                
    Lease Financing                           
    Risk rating:                           
    Pass  69,487  94,276  21,167  39,215  35,964  70,312      330,421
    Special Mention      365  60          425
    Substandard        171  7  1,376      1,554
    Total Lease Financing  69,487  94,276  21,532  39,446  35,971  71,688      332,400
    Current period gross charge-offs                  
                                
    Total Commercial Lending $413,885 $1,530,645 $1,450,978 $497,124 $835,736 $1,876,530 $1,104,912 $15,206 $7,725,016
    Current period gross charge-offs $72 $60 $9 $28 $92 $1,527 $ $ $1,788


                                
                           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 $138,593 $530,776 $1,030,287 $544,330 $236,821 $1,036,361 $ $ $3,517,168
    680 - 739  25,500  81,562  117,701  74,446  34,186  135,766      469,161
    620 - 679  2,468  11,212  16,463  10,747  5,743  38,132      84,765
    550 - 619    3,383  4,058  2,471  254  12,362      22,528
    Less than 550    197  2,372  1,581  51  5,403      9,604
    No Score(3)  6,075  19,497  12,552  6,378  9,837  56,201      110,540
    Other(2)  9,916  18,075  17,857  12,952  8,915  28,438  7,618    103,771
    Total Residential Mortgage  182,552  664,702  1,201,290  652,905  295,807  1,312,663  7,618    4,317,537
    Current period gross charge-offs            122      122
                                
    Home Equity Line                           
    FICO:                           
    740 and greater              930,741  1,668  932,409
    680 - 739              151,418  2,449  153,867
    620 - 679              32,897  1,376  34,273
    550 - 619              9,428  1,448  10,876
    Less than 550              5,127  312  5,439
    No Score(3)              1,299    1,299
    Total Home Equity Line              1,130,910  7,253  1,138,163
    Current period gross charge-offs              254  18  272
                                
    Total Residential Lending $182,552 $664,702 $1,201,290 $652,905 $295,807 $1,312,663 $1,138,528 $7,253 $5,455,700
    Current period gross charge-offs $ $ $ $ $ $122 $254 $18 $394
                                
    Consumer Lending                           
    FICO:                           
    740 and greater  70,561  153,960  93,788  45,022  34,093  19,410  117,437  140  534,411
    680 - 739  44,064  84,900  49,136  23,895  19,424  11,352  72,327  431  305,529
    620 - 679  14,643  37,576  19,488  9,771  11,007  8,482  33,692  941  135,600
    550 - 619  2,255  10,974  8,135  5,608  6,314  5,207  11,730  748  50,971
    Less than 550  418  4,358  4,478  2,695  2,975  2,765  4,247  560  22,496
    No Score(3)  1,425  586  2    6  17  39,035  167  41,238
    Other(2)  36  1,208  3,536  343  1,113  1  85,634    91,871
    Total Consumer Lending $133,402 $293,562 $178,563 $87,334 $74,932 $47,234 $364,102 $2,987 $1,182,116
    Current period gross charge-offs $58 $1,244 $1,260 $630 $1,239 $1,388 $3,131 $348 $9,298
                                
    Total Loans and Leases $729,839 $2,488,909 $2,830,831 $1,237,363 $1,206,475 $3,236,427 $2,607,542 $25,446 $14,362,832
    Current period gross charge-offs $130 $1,304 $1,269 $658 $1,331 $3,037 $3,385 $366 $11,480

    _______________________________

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

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

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

                     
    GAAP to Non-GAAP Reconciliation Table 14
      For the Three Months Ended For the Six Months Ended 
      June 30, March 31, June 30, June 30, 
    (dollars in thousands) 2023 2023 2022 2023 2022 
    Income Statement Data:                
    Net income $62,442 $66,818 $59,360 $129,260 $117,079 
                     
    Average total stockholders' equity $2,344,285 $2,299,422 $2,262,654 $2,321,977 $2,404,471 
    Less: average goodwill  995,492  995,492  995,492  995,492  995,492 
    Average tangible stockholders' equity $1,348,793 $1,303,930 $1,267,162 $1,326,485 $1,408,979 
                     
    Average total assets $24,821,486 $24,548,124 $25,250,176 $24,685,560 $25,165,783 
    Less: average goodwill  995,492  995,492  995,492  995,492  995,492 
    Average tangible assets $23,825,994 $23,552,632 $24,254,684 $23,690,068 $24,170,291 
                     
    Return on average total stockholders' equity(1)  10.68% 11.78% 10.52% 11.23% 9.82%
    Return on average tangible stockholders' equity (non-GAAP)(1)  18.57% 20.78% 18.79% 19.65% 16.76%
                     
    Return on average total assets(1)  1.01% 1.10% 0.94% 1.06% 0.94%
    Return on average tangible assets (non-GAAP)(1)  1.05% 1.15% 0.98% 1.10% 0.98%


      As of As of As of As of 
      June 30, March 31, December 31, June 30, 
    (dollars in thousands, except shares outstanding and per share amounts) 2023 2023 2022 2022 
    Balance Sheet Data:             
    Total stockholders' equity $2,359,738 $2,329,012 $2,269,005 $2,252,611 
    Less: goodwill  995,492  995,492  995,492  995,492 
    Tangible stockholders' equity $1,364,246 $1,333,520 $1,273,513 $1,257,119 
                  
    Total assets $24,511,566 $24,884,207 $24,577,223 $25,377,533 
    Less: goodwill  995,492  995,492  995,492  995,492 
    Tangible assets $23,516,074 $23,888,715 $23,581,731 $24,382,041 
                  
    Shares outstanding  127,608,037  127,573,680  127,363,327  127,451,087 
                  
    Total stockholders' equity to total assets  9.63% 9.36% 9.23% 8.88%
    Tangible stockholders' equity to tangible assets (non-GAAP)  5.80% 5.58% 5.40% 5.16%
                  
    Book value per share $18.49 $18.26 $17.82 $17.67 
    Tangible book value per share (non-GAAP) $10.69 $10.45 $10.00 $9.86 

    _____________________________

    (1)   Annualized for the three and six months ended June 30, 2023 and 2022 and three months ended March 31, 2023. 


    Primary Logo

Опубликовать