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First Hawaiian, Inc. Reports Second Quarter 2024 Financial Results and Declares Dividend
Источник: Nasdaq GlobeNewswire / 26 июл 2024 07:00:02 America/Chicago
HONOLULU, July 26, 2024 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended June 30, 2024.
“I’m pleased to report our strong financial results for the second quarter,” said Bob Harrison, Chairman, President, and CEO. “Our performance was driven by solid revenues, disciplined expense control and continued excellent credit quality. Additionally, we continued our support of the Maui community by partnering with the Federal Home Loan Bank of Des Moines to contribute a total of $1 million in relief funding for homeowners impacted by the Maui Wildfires.”
On July 24, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on August 30, 2024, to stockholders of record at the close of business on August 19, 2024.
Second Quarter 2024 Highlights:
- Net income of $61.9 million, or $0.48 per diluted share
- Total loans and leases increased $39.7 million versus prior quarter
- Total deposits decreased $350.6 million versus prior quarter
- Net interest margin increased 1 basis point to 2.92%
- Recorded a $1.8 million provision for credit losses
- Board of Directors declared a quarterly dividend of $0.26 per share
Balance Sheet
Total assets were $24.0 billion as of June 30, 2024, a decrease of $287.4 million, or 1.2%, from $24.3 billion as of March 31, 2024.
Gross loans and leases were $14.4 billion as of June 30, 2024, an increase of $39.7 million, or 0.3%, from $14.3 billion as of March 31, 2024.
Total deposits were $20.3 billion as of June 30, 2024, a decrease of $350.6 million, or 1.7%, from $20.7 billion as of March 31, 2024.
Net Interest Income
Net interest income for the second quarter of 2024 was $152.9 million, a decrease of $1.6 million, or 1.0%, compared to $154.4 million for the prior quarter.
The net interest margin was 2.92% in the second quarter of 2024, an increase of 1 basis point compared to 2.91% in the prior quarter.
Provision Expense
During the quarter ended June 30, 2024, we recorded a $1.8 million provision for credit losses. In the quarter ended March 31, 2024, we recorded a $6.3 million provision for credit losses.
Noninterest Income
Noninterest income was $51.8 million in the second quarter of 2024, an increase of $0.4 million compared to noninterest income of $51.4 million in the prior quarter.
Noninterest Expense
Noninterest expense was $122.1 million in the second quarter of 2024, a decrease of $6.7 million compared to noninterest expense of $128.8 million in the prior quarter.
The efficiency ratio was 59.2% and 62.2% for the quarters ended June 30, 2024 and March 31, 2024, respectively.
Taxes
The effective tax rate was 23.3% for the quarters ended June 30, 2024 and March 31, 2024.
Asset Quality
The allowance for credit losses was $160.5 million, or 1.12% of total loans and leases, as of June 30, 2024, compared to $159.8 million, or 1.12% of total loans and leases, as of March 31, 2024. The reserve for unfunded commitments was $33.4 million as of June 30, 2024 compared to $34.8 million as of March 31, 2024. Net charge-offs were $2.5 million, or 0.07% of average loans and leases on an annualized basis, for the quarter ended June 30, 2024, compared to net charge-offs of $3.8 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended March 31, 2024. Total non-performing assets were $18.0 million, or 0.13% of total loans and leases and other real estate owned, as of both June 30, 2024 and March 31, 2024.
Capital
Total stockholders' equity increased $36.6 million in the second quarter, and stood at $2.6 billion on June 30, 2024 compared to $2.5 billion on March 31, 2024.
The tier 1 leverage, common equity tier 1 and total capital ratios were 9.03%, 12.73% and 13.92%, respectively, on June 30, 2024, compared with 8.80%, 12.55% and 13.75%, respectively, on March 31, 2024.
The Company did not repurchase any shares in the second quarter.
First Hawaiian, Inc.
First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com.
Conference Call Information
First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time.
To access the call by phone, please register via the following link:
https://register.vevent.com/register/BIa54af76e9f084d46ad036d683c1f6cd6, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.Use of Non-GAAP Financial Measures
Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy.Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.
Investor Relations Contact:
Kevin Haseyama, CFA
(808) 525-6268
khaseyama@fhb.comMedia Contact:
Lindsay Chambers
(808) 525-6254
lchambers@fhb.comFinancial Highlights Table 1 For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, (dollars in thousands, except per share data) 2024 2024 2023 2024 2023 Operating Results: Net interest income $ 152,851 $ 154,427 $ 159,939 $ 307,278 $ 327,186 Provision for credit losses 1,800 6,300 5,000 8,100 13,800 Noninterest income 51,768 51,371 47,348 103,139 96,371 Noninterest expense 122,086 128,813 120,881 250,899 239,448 Net income 61,921 54,220 62,442 116,141 129,260 Basic earnings per share 0.48 0.42 0.49 0.91 1.01 Diluted earnings per share 0.48 0.42 0.49 0.91 1.01 Dividends declared per share 0.26 0.26 0.26 0.52 0.52 Dividend payout ratio 54.17 % 61.90 % 53.06 % 57.14 % 51.49 % Performance Ratios(1): Net interest margin 2.92 % 2.91 % 2.91 % 2.91 % 3.01 % Efficiency ratio 59.22 % 62.15 % 57.96 % 60.69 % 56.17 % Return on average total assets 1.04 % 0.90 % 1.01 % 0.97 % 1.06 % Return on average tangible assets (non-GAAP)(2) 1.08 % 0.94 % 1.05 % 1.01 % 1.10 % Return on average total stockholders' equity 9.91 % 8.73 % 10.68 % 9.32 % 11.23 % Return on average tangible stockholders' equity (non-GAAP)(2) 16.42 % 14.53 % 18.57 % 15.48 % 19.65 % Average Balances: Average loans and leases $ 14,358,049 $ 14,312,563 $ 14,283,222 $ 14,335,306 $ 14,181,842 Average earning assets 21,247,707 21,481,890 22,186,316 21,364,799 22,030,652 Average assets 23,958,913 24,187,207 24,821,486 24,073,060 24,685,560 Average deposits 20,308,028 20,571,930 21,057,259 20,439,979 21,261,805 Average stockholders' equity 2,512,471 2,496,840 2,344,285 2,504,656 2,321,977 Market Value Per Share: Closing 20.76 21.96 18.01 20.76 18.01 High 22.68 23.12 21.00 23.12 28.28 Low 19.48 20.37 15.08 19.48 15.08 As of As of As of As of June 30, March 31, December 31, June 30, (dollars in thousands, except per share data) 2024 2024 2023 2023 Balance Sheet Data: Loans and leases $ 14,359,899 $ 14,320,208 $ 14,353,497 $ 14,362,832 Total assets 23,991,791 24,279,186 24,926,474 24,511,566 Total deposits 20,318,832 20,669,481 21,332,657 21,078,166 Short-term borrowings 500,000 500,000 500,000 — Long-term borrowings — — — 500,000 Total stockholders' equity 2,550,312 2,513,761 2,486,066 2,359,738 Per Share of Common Stock: Book value $ 19.94 $ 19.66 $ 19.48 $ 18.49 Tangible book value (non-GAAP)(2) 12.16 11.88 11.68 10.69 Asset Quality Ratios: Non-accrual loans and leases / total loans and leases 0.13 % 0.13 % 0.13 % 0.09 % Allowance for credit losses for loans and leases / total loans and leases 1.12 % 1.12 % 1.09 % 1.03 % Capital Ratios: Common Equity Tier 1 Capital Ratio 12.73 % 12.55 % 12.39 % 12.05 % Tier 1 Capital Ratio 12.73 % 12.55 % 12.39 % 12.05 % Total Capital Ratio 13.92 % 13.75 % 13.57 % 13.17 % Tier 1 Leverage Ratio 9.03 % 8.80 % 8.64 % 8.30 % Total stockholders' equity to total assets 10.63 % 10.35 % 9.97 % 9.63 % Tangible stockholders' equity to tangible assets (non-GAAP)(2) 6.76 % 6.52 % 6.23 % 5.80 % Non-Financial Data: Number of branches 48 50 50 51 Number of ATMs 272 275 275 296 Number of Full-Time Equivalent Employees 2,032 2,065 2,089 2,126 ______________________
(1) Except for the efficiency ratio, amounts are annualized for the three and six months ended June 30, 2024 and 2023 and three months ended March 31, 2024. (2) Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation. Consolidated Statements of Income Table 2 For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, (dollars in thousands, except per share amounts) 2024 2024 2023 2024 2023 Interest income Loans and lease financing $ 202,068 $ 199,844 $ 185,340 $ 401,912 $ 357,679 Available-for-sale investment securities 14,143 14,546 18,094 28,689 36,782 Held-to-maturity investment securities 17,575 17,793 18,282 35,368 37,239 Other 11,148 12,769 7,489 23,917 11,050 Total interest income 244,934 244,952 229,205 489,886 442,750 Interest expense Deposits 85,609 84,143 58,071 169,752 101,355 Short-term and long-term borrowings 5,953 5,953 10,656 11,906 13,219 Other 521 429 539 950 990 Total interest expense 92,083 90,525 69,266 182,608 115,564 Net interest income 152,851 154,427 159,939 307,278 327,186 Provision for credit losses 1,800 6,300 5,000 8,100 13,800 Net interest income after provision for credit losses 151,051 148,127 154,939 299,178 313,386 Noninterest income Service charges on deposit accounts 7,793 7,546 7,246 15,339 14,477 Credit and debit card fees 15,861 16,173 15,461 32,034 31,759 Other service charges and fees 11,036 9,904 9,056 20,940 18,218 Trust and investment services income 9,426 10,354 9,448 19,780 19,062 Bank-owned life insurance 3,360 4,286 3,271 7,646 8,391 Other 4,292 3,108 2,866 7,400 4,464 Total noninterest income 51,768 51,371 47,348 103,139 96,371 Noninterest expense Salaries and employee benefits 57,737 59,262 57,904 116,999 113,936 Contracted services and professional fees 16,067 15,739 17,498 31,806 33,811 Occupancy 7,377 6,941 7,554 14,318 15,336 Equipment 13,196 13,413 11,000 26,609 20,736 Regulatory assessment and fees 3,814 8,120 3,676 11,934 7,512 Advertising and marketing 1,765 2,612 1,891 4,377 3,885 Card rewards program 8,719 8,508 7,681 17,227 15,766 Other 13,411 14,218 13,677 27,629 28,466 Total noninterest expense 122,086 128,813 120,881 250,899 239,448 Income before provision for income taxes 80,733 70,685 81,406 151,418 170,309 Provision for income taxes 18,812 16,465 18,964 35,277 41,049 Net income $ 61,921 $ 54,220 $ 62,442 $ 116,141 $ 129,260 Basic earnings per share $ 0.48 $ 0.42 $ 0.49 $ 0.91 $ 1.01 Diluted earnings per share $ 0.48 $ 0.42 $ 0.49 $ 0.91 $ 1.01 Basic weighted-average outstanding shares 127,867,853 127,707,354 127,591,371 127,787,663 127,522,975 Diluted weighted-average outstanding shares 128,262,594 128,217,689 127,832,351 128,279,917 127,901,225 Consolidated Balance Sheets Table 3 June 30, March 31, December 31, June 30, (dollars in thousands, except share amount) 2024 2024 2023 2023 Assets Cash and due from banks $ 290,501 $ 202,121 $ 185,015 $ 318,333 Interest-bearing deposits in other banks 824,258 1,072,145 1,554,882 239,798 Investment securities: Available-for-sale, at fair value (amortized cost: $2,379,004 as of June 30, 2024, $2,466,109 as of March 31, 2024, $2,558,675 as of December 31, 2023 and $3,296,825 as of June 30, 2023) 2,067,956 2,159,338 2,255,336 2,909,372 Held-to-maturity, at amortized cost (fair value: $3,401,006 as of June 30, 2024, $3,470,710 as of March 31, 2024, $3,574,856 as of December 31, 2023 and $3,697,261 as of June 30, 2023) 3,917,175 3,988,011 4,041,449 4,180,408 Loans held for sale 2,820 — 190 — Loans and leases 14,359,899 14,320,208 14,353,497 14,362,832 Less: allowance for credit losses 160,517 159,836 156,533 148,581 Net loans and leases 14,199,382 14,160,372 14,196,964 14,214,251 Premises and equipment, net 283,762 281,181 281,461 277,817 Accrued interest receivable 82,512 85,715 84,417 80,710 Bank-owned life insurance 486,261 484,193 479,907 476,177 Goodwill 995,492 995,492 995,492 995,492 Mortgage servicing rights 5,395 5,533 5,699 6,072 Other assets 836,277 845,085 845,662 813,136 Total assets $ 23,991,791 $ 24,279,186 $ 24,926,474 $ 24,511,566 Liabilities and Stockholders' Equity Deposits: Interest-bearing $ 13,461,365 $ 13,620,928 $ 13,749,095 $ 12,911,539 Noninterest-bearing 6,857,467 7,048,553 7,583,562 8,166,627 Total deposits 20,318,832 20,669,481 21,332,657 21,078,166 Short-term borrowings 500,000 500,000 500,000 — Long-term borrowings — — — 500,000 Retirement benefits payable 101,304 102,242 103,285 100,671 Other liabilities 521,343 493,702 504,466 472,991 Total liabilities 21,441,479 21,765,425 22,440,408 22,151,828 Stockholders' equity Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,728,446 / 127,879,012 shares as of June 30, 2024, issued/outstanding: 141,687,612 / 127,841,908 shares as of March 31, 2024, issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023 and issued/outstanding: 141,327,860 / 127,608,037 shares as of June 30, 2023) 1,417 1,417 1,413 1,413 Additional paid-in capital 2,554,795 2,551,488 2,548,250 2,543,226 Retained earnings 887,176 858,494 837,859 799,045 Accumulated other comprehensive loss, net (519,132 ) (523,780 ) (530,210 ) (612,736 ) Treasury stock (13,849,434 shares as of June 30, 2024, 13,845,704 shares as of March 31, 2024, 13,721,778 shares as of December 31, 2023 and 13,719,823 shares as of June 30, 2023) (373,944 ) (373,858 ) (371,246 ) (371,210 ) Total stockholders' equity 2,550,312 2,513,761 2,486,066 2,359,738 Total liabilities and stockholders' equity $ 23,991,791 $ 24,279,186 $ 24,926,474 $ 24,511,566 Average Balances and Interest Rates Table 4 Three Months Ended Three Months Ended Three Months Ended June 30, 2024 March 31, 2024 June 30, 2023 Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ (dollars in millions) Balance Expense Rate Balance Expense Rate Balance Expense Rate Earning Assets Interest-Bearing Deposits in Other Banks $ 773.4 $ 10.5 5.45 % $ 858.6 $ 11.6 5.45 % $ 569.3 $ 7.2 5.07 % Available-for-Sale Investment Securities Taxable 2,100.7 14.1 2.69 2,210.6 14.5 2.63 2,978.6 18.0 2.42 Non-Taxable 1.5 — 5.76 1.8 — 5.61 5.8 0.1 5.74 Held-to-Maturity Investment Securities Taxable 3,358.2 14.4 1.71 3,416.4 14.6 1.71 3,618.7 15.3 1.69 Non-Taxable 602.9 4.0 2.64 603.4 4.0 2.65 610.4 3.7 2.46 Total Investment Securities 6,063.3 32.5 2.15 6,232.2 33.1 2.13 7,213.5 37.1 2.06 Loans Held for Sale 1.0 — 6.58 0.7 — 6.92 0.5 — 5.87 Loans and Leases(1) Commercial and industrial 2,201.6 38.1 6.96 2,164.9 37.2 6.92 2,265.7 36.2 6.41 Commercial real estate 4,305.6 71.5 6.68 4,323.5 70.1 6.53 4,183.6 64.9 6.22 Construction 984.8 18.5 7.57 924.7 17.4 7.55 874.3 15.2 6.96 Residential: Residential mortgage 4,229.4 40.1 3.80 4,264.1 42.0 3.94 4,314.0 39.1 3.62 Home equity line 1,164.2 12.6 4.35 1,172.1 12.0 4.13 1,119.3 9.2 3.31 Consumer 1,054.1 17.7 6.74 1,083.5 18.1 6.71 1,196.6 17.7 5.92 Lease financing 418.3 4.3 4.09 379.8 3.7 3.91 329.7 3.6 4.43 Total Loans and Leases 14,358.0 202.8 5.67 14,312.6 200.5 5.63 14,283.2 185.9 5.22 Other Earning Assets 52.0 0.7 5.25 77.8 1.2 5.90 119.8 0.3 0.99 Total Earning Assets(2) 21,247.7 246.5 4.66 21,481.9 246.4 4.61 22,186.3 230.5 4.16 Cash and Due from Banks 240.4 244.3 257.9 Other Assets 2,470.8 2,461.0 2,377.3 Total Assets $ 23,958.9 $ 24,187.2 $ 24,821.5 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 6,000.4 $ 23.4 1.57 % $ 6,059.7 $ 23.4 1.56 % 6,099.4 $ 16.1 1.05 % Money Market 4,076.7 30.6 3.02 3,944.9 28.8 2.94 3,809.8 19.6 2.07 Time 3,284.3 31.6 3.87 3,325.3 31.9 3.86 2,877.8 22.4 3.12 Total Interest-Bearing Deposits 13,361.4 85.6 2.58 13,329.9 84.1 2.54 12,787.0 58.1 1.82 Federal Funds Purchased — — — — — — 2.9 — 5.00 Other Short-Term Borrowings 500.0 6.0 4.79 500.0 6.0 4.79 362.9 4.7 5.16 Long-Term Borrowings — — — — — — 500.0 6.0 4.78 Other Interest-Bearing Liabilities 38.2 0.5 5.48 33.0 0.4 5.22 54.0 0.5 4.00 Total Interest-Bearing Liabilities 13,899.6 92.1 2.66 13,862.9 90.5 2.63 13,706.8 69.3 2.03 Net Interest Income $ 154.4 $ 155.9 $ 161.2 Interest Rate Spread(3) 2.00 % 1.98 % 2.13 % Net Interest Margin(4) 2.92 % 2.91 % 2.91 % Noninterest-Bearing Demand Deposits 6,946.6 7,242.0 8,270.3 Other Liabilities 600.2 585.5 500.1 Stockholders' Equity 2,512.5 2,496.8 2,344.3 Total Liabilities and Stockholders' Equity $ 23,958.9 $ 24,187.2 $ 24,821.5 ______________________
(1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. (2) Interest income includes taxable-equivalent basis adjustments of $1.5 million, $1.5 million and $1.3 million for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively. (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis. (4) Net interest margin is net interest income annualized for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, on a fully taxable-equivalent basis, divided by average total earning assets. Average Balances and Interest Rates Table 5 Six Months Ended Six Months Ended June 30, 2024 June 30, 2023 Average Income/ Yield/ Average Income/ Yield/ (dollars in millions) Balance Expense Rate Balance Expense Rate Earning Assets Interest-Bearing Deposits in Other Banks $ 815.9 $ 22.1 5.45 % $ 435.2 $ 10.6 4.91 % Available-for-Sale Investment Securities Taxable 2,155.7 28.7 2.66 3,029.7 36.4 2.41 Non-Taxable 1.6 — 5.68 18.4 0.5 5.58 Held-to-Maturity Investment Securities Taxable 3,387.3 29.0 1.71 3,651.1 30.9 1.70 Non-Taxable 603.2 7.9 2.65 611.3 7.9 2.60 Total Investment Securities 6,147.8 65.6 2.14 7,310.5 75.7 2.08 Loans Held for Sale 0.9 — 6.72 0.3 — 5.79 Loans and Leases(1) Commercial and industrial 2,183.3 75.3 6.94 2,229.5 68.6 6.20 Commercial real estate 4,314.6 141.7 6.60 4,144.9 123.2 5.99 Construction 954.8 35.9 7.56 874.1 29.9 6.89 Residential: Residential mortgage 4,246.7 82.1 3.87 4,310.5 77.5 3.59 Home equity line 1,168.1 24.7 4.24 1,097.2 17.9 3.29 Consumer 1,068.8 35.7 6.72 1,205.0 34.8 5.84 Lease financing 399.0 8.0 4.00 320.6 6.8 4.27 Total Loans and Leases 14,335.3 403.4 5.65 14,181.8 358.7 5.09 Other Earning Assets 64.9 1.8 5.64 102.9 0.5 0.90 Total Earning Assets(2) 21,364.8 492.9 4.63 22,030.7 445.5 4.07 Cash and Due from Banks 242.4 271.9 Other Assets 2,465.9 2,383.0 Total Assets $ 24,073.1 $ 24,685.6 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 6,030.1 $ 46.9 1.56 % $ 6,226.2 $ 30.0 0.97 % Money Market 4,010.8 59.4 2.98 3,831.5 33.9 1.78 Time 3,304.8 63.5 3.86 2,697.7 37.5 2.80 Total Interest-Bearing Deposits 13,345.7 169.8 2.56 12,755.4 101.4 1.60 Federal Funds Purchased — — — 34.8 0.8 4.45 Other Short-Term Borrowings 500.0 11.9 4.79 208.7 5.3 5.14 Long-Term Borrowings — — — 303.8 7.1 4.73 Other Interest-Bearing Liabilities 35.6 0.9 5.36 48.5 1.0 4.12 Total Interest-Bearing Liabilities 13,881.3 182.6 2.65 13,351.2 115.6 1.75 Net Interest Income $ 310.3 $ 329.9 Interest Rate Spread(3) 1.98 % 2.32 % Net Interest Margin(4) 2.91 % 3.01 % Noninterest-Bearing Demand Deposits 7,094.3 8,506.4 Other Liabilities 592.8 506.0 Stockholders' Equity 2,504.7 2,322.0 Total Liabilities and Stockholders' Equity $ 24,073.1 $ 24,685.6 ______________________
(1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. (2) Interest income includes taxable-equivalent basis adjustments of $3.0 million and $2.7 million for the six months ended June 30, 2024 and 2023, respectively. (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis. (4) Net interest margin is net interest income annualized for the six months ended June 30, 2024 and 2023, on a fully taxable-equivalent basis, divided by average total earning assets. Analysis of Change in Net Interest Income Table 6 Three Months Ended June 30, 2024 Compared to March 31, 2024 (dollars in millions) Volume Rate Total Change in Interest Income: Interest-Bearing Deposits in Other Banks $ (1.1 ) $ — $ (1.1 ) Available-for-Sale Investment Securities Taxable (0.7 ) 0.3 (0.4 ) Held-to-Maturity Investment Securities Taxable (0.2 ) — (0.2 ) Total Investment Securities (0.9 ) 0.3 (0.6 ) Loans and Leases Commercial and industrial 0.7 0.2 0.9 Commercial real estate (0.3 ) 1.7 1.4 Construction 1.1 — 1.1 Residential: Residential mortgage (0.4 ) (1.5 ) (1.9 ) Home equity line (0.1 ) 0.7 0.6 Consumer (0.5 ) 0.1 (0.4 ) Lease financing 0.4 0.2 0.6 Total Loans and Leases 0.9 1.4 2.3 Other Earning Assets (0.4 ) (0.1 ) (0.5 ) Total Change in Interest Income (1.5 ) 1.6 0.1 Change in Interest Expense: Interest-Bearing Deposits Savings (0.2 ) 0.2 — Money Market 1.0 0.8 1.8 Time (0.4 ) 0.1 (0.3 ) Total Interest-Bearing Deposits 0.4 1.1 1.5 Other Interest-Bearing Liabilities 0.1 — 0.1 Total Change in Interest Expense 0.5 1.1 1.6 Change in Net Interest Income $ (2.0 ) $ 0.5 $ (1.5 ) Analysis of Change in Net Interest Income Table 7 Three Months Ended June 30, 2024 Compared to June 30, 2023 (dollars in millions) Volume Rate Total Change in Interest Income: Interest-Bearing Deposits in Other Banks $ 2.7 $ 0.6 $ 3.3 Available-for-Sale Investment Securities Taxable (5.7 ) 1.8 (3.9 ) Non-Taxable (0.1 ) — (0.1 ) Held-to-Maturity Investment Securities Taxable (1.1 ) 0.2 (0.9 ) Non-Taxable — 0.3 0.3 Total Investment Securities (6.9 ) 2.3 (4.6 ) Loans and Leases Commercial and industrial (1.1 ) 3.0 1.9 Commercial real estate 1.9 4.7 6.6 Construction 2.0 1.3 3.3 Residential: Residential mortgage (0.8 ) 1.8 1.0 Home equity line 0.4 3.0 3.4 Consumer (2.3 ) 2.3 — Lease financing 0.9 (0.2 ) 0.7 Total Loans and Leases 1.0 15.9 16.9 Other Earning Assets (0.2 ) 0.6 0.4 Total Change in Interest Income (3.4 ) 19.4 16.0 Change in Interest Expense: Interest-Bearing Deposits Savings (0.3 ) 7.6 7.3 Money Market 1.5 9.5 11.0 Time 3.4 5.8 9.2 Total Interest-Bearing Deposits 4.6 22.9 27.5 Other Short-Term Borrowings 1.7 (0.4 ) 1.3 Long-Term Borrowings (3.0 ) (3.0 ) (6.0 ) Other Interest-Bearing Liabilities (0.2 ) 0.2 — Total Change in Interest Expense 3.1 19.7 22.8 Change in Net Interest Income $ (6.5 ) $ (0.3 ) $ (6.8 ) Analysis of Change in Net Interest Income Table 8 Six Months Ended June 30, 2024 Compared to June 30, 2023 (dollars in millions) Volume Rate Total Change in Interest Income: Interest-Bearing Deposits in Other Banks $ 10.2 $ 1.3 $ 11.5 Available-for-Sale Investment Securities Taxable (11.2 ) 3.5 (7.7 ) Non-Taxable (0.5 ) — (0.5 ) Held-to-Maturity Investment Securities Taxable (2.1 ) 0.2 (1.9 ) Non-Taxable (0.1 ) 0.1 — Total Investment Securities (13.9 ) 3.8 (10.1 ) Loans and Leases Commercial and industrial (1.4 ) 8.1 6.7 Commercial real estate 5.3 13.2 18.5 Construction 2.9 3.1 6.0 Residential: Residential mortgage (1.2 ) 5.8 4.6 Home equity line 1.3 5.5 6.8 Consumer (4.1 ) 5.0 0.9 Lease financing 1.6 (0.4 ) 1.2 Total Loans and Leases 4.4 40.3 44.7 Other Earning Assets (0.3 ) 1.6 1.3 Total Change in Interest Income 0.4 47.0 47.4 Change in Interest Expense: Interest-Bearing Deposits Savings (1.0 ) 17.9 16.9 Money Market 1.7 23.8 25.5 Time 9.7 16.3 26.0 Total Interest-Bearing Deposits 10.4 58.0 68.4 Federal Funds Purchased (0.4 ) (0.4 ) (0.8 ) Other Short-Term Borrowings 7.0 (0.4 ) 6.6 Long-Term Borrowings (3.6 ) (3.5 ) (7.1 ) Other Interest-Bearing Liabilities (0.3 ) 0.2 (0.1 ) Total Change in Interest Expense 13.1 53.9 67.0 Change in Net Interest Income $ (12.7 ) $ (6.9 ) $ (19.6 ) Loans and Leases Table 9 June 30, March 31, December 31, June 30, (dollars in thousands) 2024 2024 2023 2023 Commercial and industrial $ 2,208,690 $ 2,189,875 2,165,349 $ 2,187,831 Commercial real estate 4,305,017 4,301,300 4,340,243 4,290,948 Construction 1,017,649 972,517 900,292 913,837 Residential: Residential mortgage 4,216,416 4,242,502 4,283,315 4,317,537 Home equity line 1,159,833 1,165,778 1,174,588 1,138,163 Total residential 5,376,249 5,408,280 5,457,903 5,455,700 Consumer 1,027,104 1,054,227 1,109,901 1,182,116 Lease financing 425,190 394,009 379,809 332,400 Total loans and leases $ 14,359,899 $ 14,320,208 $ 14,353,497 $ 14,362,832 Deposits Table 10 June 30, March 31, December 31, June 30, (dollars in thousands) 2024 2024 2023 2023 Demand $ 6,857,467 $ 7,048,553 $ 7,583,562 $ 8,166,627 Savings 6,055,051 6,277,679 6,445,084 5,835,975 Money Market 4,111,609 4,059,204 3,847,853 3,767,792 Time 3,294,705 3,284,045 3,456,158 3,307,772 Total Deposits $ 20,318,832 $ 20,669,481 $ 21,332,657 $ 21,078,166 Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 11 June 30, March 31, December 31, June 30, (dollars in thousands) 2024 2024 2023 2023 Non-Performing Assets Non-Accrual Loans and Leases Commercial Loans: Commercial and industrial $ 1,084 $ 942 $ 970 $ 1,024 Commercial real estate 3,085 2,953 2,953 — Construction 447 — — — Total Commercial Loans 4,616 3,895 3,923 1,024 Residential Loans: Residential mortgage 7,273 7,777 7,620 6,097 Home equity line 6,124 6,345 7,052 6,107 Total Residential Loans 13,397 14,122 14,672 12,204 Total Non-Accrual Loans and Leases 18,013 18,017 18,595 13,228 Total Non-Performing Assets $ 18,013 $ 18,017 $ 18,595 $ 13,228 Accruing Loans and Leases Past Due 90 Days or More Commercial Loans: Commercial and industrial $ 110 $ 529 $ 494 $ 599 Commercial real estate — — 300 619 Construction — 606 — — Total Commercial Loans 110 1,135 794 1,218 Residential mortgage 1,820 359 — 58 Consumer 1,835 2,126 2,702 1,975 Total Accruing Loans and Leases Past Due 90 Days or More $ 3,765 $ 3,620 $ 3,496 $ 3,251 Total Loans and Leases $ 14,359,899 $ 14,320,208 $ 14,353,497 $ 14,362,832 Allowance for Credit Losses and Reserve for Unfunded Commitments Table 12 For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, June 30, (dollars in thousands) 2024 2024 2023 2024 2023 Balance at Beginning of Period $ 194,649 $ 192,138 $ 183,321 $ 192,138 $ 177,735 Loans and Leases Charged-Off Commercial and industrial (677 ) (909 ) (997 ) (1,586 ) (1,788 ) Residential Loans: Residential mortgage — — — — (122 ) Home equity line — — (137 ) — (272 ) Total Residential Loans — — (137 ) — (394 ) Consumer (4,182 ) (4,854 ) (4,516 ) (9,036 ) (9,298 ) Total Loans and Leases Charged-Off (4,859 ) (5,763 ) (5,650 ) (10,622 ) (11,480 ) Recoveries on Loans and Leases Previously Charged-Off Commercial and industrial 250 211 292 461 538 Residential Loans: Residential mortgage 28 30 30 58 57 Home equity line 112 44 59 156 236 Total Residential Loans 140 74 89 214 293 Consumer 1,950 1,689 1,728 3,639 3,894 Total Recoveries on Loans and Leases Previously Charged-Off 2,340 1,974 2,109 4,314 4,725 Net Loans and Leases Charged-Off (2,519 ) (3,789 ) (3,541 ) (6,308 ) (6,755 ) Provision for Credit Losses 1,800 6,300 5,000 8,100 13,800 Balance at End of Period $ 193,930 $ 194,649 $ 184,780 $ 193,930 $ 184,780 Components: Allowance for Credit Losses $ 160,517 $ 159,836 $ 148,581 $ 160,517 $ 148,581 Reserve for Unfunded Commitments 33,413 34,813 36,199 33,413 36,199 Total Allowance for Credit Losses and Reserve for Unfunded Commitments $ 193,930 $ 194,649 $ 184,780 $ 193,930 $ 184,780 Average Loans and Leases Outstanding $ 14,358,049 $ 14,312,563 $ 14,283,222 $ 14,335,306 $ 14,181,842 Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1) 0.07 % 0.11 % 0.10 % 0.09 % 0.10 % Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding 1.12 % 1.12 % 1.03 % 1.12 % 1.03 % Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases 8.91x 8.87x 11.23x 8.91x 11.23x ______________________
(1) Annualized for the three and six months ended June 30, 2024 and 2023 and three months ended March 31, 2024. Loans and Leases by Year of Origination and Credit Quality Indicator Table 13 Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans Amortized Amortized (dollars in thousands) 2024 2023 2022 2021 2020 Prior Cost Basis Cost Basis Total Commercial Lending Commercial and Industrial Risk rating: Pass $ 66,318 $ 88,879 $ 228,354 $ 276,824 $ 23,556 $ 274,582 $ 1,101,721 $ 3,199 $ 2,063,433 Special Mention 315 1 10,547 54 564 1,313 18,727 — 31,521 Substandard — — 6,230 242 417 2,038 23,145 — 32,072 Other (1) 9,351 11,580 8,737 3,632 1,696 1,792 44,876 — 81,664 Total Commercial and Industrial 75,984 100,460 253,868 280,752 26,233 279,725 1,188,469 3,199 2,208,690 Current period gross charge-offs — 216 319 61 52 938 — — 1,586 Commercial Real Estate Risk rating: Pass 98,062 347,143 863,033 676,256 331,737 1,798,626 89,069 6,910 4,210,836 Special Mention 3,338 2,275 7,565 41,369 1,353 19,329 6,965 — 82,194 Substandard — — 5,016 1,003 — 5,331 499 — 11,849 Other (1) — — — — — 138 — — 138 Total Commercial Real Estate 101,400 349,418 875,614 718,628 333,090 1,823,424 96,533 6,910 4,305,017 Current period gross charge-offs — — — — — — — — — Construction Risk rating: Pass 35,785 206,622 348,241 256,821 59,453 61,308 10,800 — 979,030 Special Mention — — — — — 825 — — 825 Other (1) 2,177 9,963 13,622 4,951 1,199 5,176 706 — 37,794 Total Construction 37,962 216,585 361,863 261,772 60,652 67,309 11,506 — 1,017,649 Current period gross charge-offs — — — — — — — — — Lease Financing Risk rating: Pass 105,719 107,492 72,986 16,419 25,908 90,013 — — 418,537 Special Mention — 47 113 338 12 — — — 510 Substandard 5,136 639 368 — — — — — 6,143 Total Lease Financing 110,855 108,178 73,467 16,757 25,920 90,013 — — 425,190 Current period gross charge-offs — — — — — — — — — Total Commercial Lending $ 326,201 $ 774,641 $ 1,564,812 $ 1,277,909 $ 445,895 $ 2,260,471 $ 1,296,508 $ 10,109 $ 7,956,546 Current period gross charge-offs $ — $ 216 $ 319 $ 61 $ 52 $ 938 $ — $ — $ 1,586
Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in thousands) 2024 2023 2022 2021 2020 Prior Cost Basis Cost Basis Total Residential Lending Residential Mortgage FICO: 740 and greater $ 70,514 $ 210,915 $ 514,686 $ 975,554 $ 505,850 $ 1,165,042 $ — $ — $ 3,442,561 680 - 739 9,653 27,661 64,910 109,306 68,491 150,793 — — 430,814 620 - 679 813 1,619 18,125 20,117 16,097 35,943 — — 92,714 550 - 619 — 2,045 6,336 3,822 2,853 12,349 — — 27,405 Less than 550 — — 2,689 3,939 2,833 8,662 — — 18,123 No Score (3) 544 8,300 18,472 10,601 5,804 54,420 — — 98,141 Other (2) 7,384 13,003 16,802 15,582 11,331 30,245 12,311 — 106,658 Total Residential Mortgage 88,908 263,543 642,020 1,138,921 613,259 1,457,454 12,311 — 4,216,416 Current period gross charge-offs — — — — — — — — — Home Equity Line FICO: 740 and greater — — — — — — 937,349 1,244 938,593 680 - 739 — — — — — — 158,877 1,713 160,590 620 - 679 — — — — — — 38,362 1,362 39,724 550 - 619 — — — — — — 13,065 457 13,522 Less than 550 — — — — — — 5,455 620 6,075 No Score (3) — — — — — — 1,329 — 1,329 Total Home Equity Line — — — — — — 1,154,437 5,396 1,159,833 Current period gross charge-offs — — — — — — — — — Total Residential Lending $ 88,908 $ 263,543 $ 642,020 $ 1,138,921 $ 613,259 $ 1,457,454 $ 1,166,748 $ 5,396 $ 5,376,249 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Lending FICO: 740 and greater 40,216 77,383 104,378 59,698 23,380 16,094 117,299 154 438,602 680 - 739 29,906 57,534 58,142 28,100 12,379 10,584 75,643 466 272,754 620 - 679 12,113 22,995 23,172 13,871 5,939 7,729 34,769 777 121,365 550 - 619 1,882 7,706 11,366 6,837 3,455 4,719 13,096 843 49,904 Less than 550 682 3,242 6,673 4,278 2,189 3,189 5,249 591 26,093 No Score (3) 1,730 457 135 — 9 22 40,193 216 42,762 Other (2) — — 330 936 324 1,008 73,026 — 75,624 Total Consumer Lending $ 86,529 $ 169,317 $ 204,196 $ 113,720 $ 47,675 $ 43,345 $ 359,275 $ 3,047 $ 1,027,104 Current period gross charge-offs $ — $ 941 $ 1,437 $ 800 $ 345 $ 1,471 $ 3,652 $ 390 $ 9,036 Total Loans and Leases $ 501,638 $ 1,207,501 $ 2,411,028 $ 2,530,550 $ 1,106,829 $ 3,761,270 $ 2,822,531 $ 18,552 $ 14,359,899 Current period gross charge-offs $ — $ 1,157 $ 1,756 $ 861 $ 397 $ 2,409 $ 3,652 $ 390 $ 10,622 ______________________
(1) Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score. (2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. (3) No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance. GAAP to Non-GAAP Reconciliation Table 14 For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, (dollars in thousands) 2024 2024 2023 2024 2023 Income Statement Data: Net income $ 61,921 $ 54,220 $ 62,442 $ 116,141 $ 129,260 Average total stockholders' equity $ 2,512,471 $ 2,496,840 $ 2,344,285 $ 2,504,656 $ 2,321,977 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible stockholders' equity $ 1,516,979 $ 1,501,348 $ 1,348,793 $ 1,509,164 $ 1,326,485 Average total assets $ 23,958,913 $ 24,187,207 $ 24,821,486 $ 24,073,060 $ 24,685,560 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible assets $ 22,963,421 $ 23,191,715 $ 23,825,994 $ 23,077,568 $ 23,690,068 Return on average total stockholders' equity(1) 9.91 % 8.73 % 10.68 % 9.32 % 11.23 % Return on average tangible stockholders' equity (non-GAAP)(1) 16.42 % 14.53 % 18.57 % 15.48 % 19.65 % Return on average total assets(1) 1.04 % 0.90 % 1.01 % 0.97 % 1.06 % Return on average tangible assets (non-GAAP)(1) 1.08 % 0.94 % 1.05 % 1.01 % 1.10 % As of As of As of As of June 30, March 31, December 31, June 30, (dollars in thousands, except per share amounts) 2024 2024 2023 2023 Balance Sheet Data: Total stockholders' equity $ 2,550,312 $ 2,513,761 $ 2,486,066 $ 2,359,738 Less: goodwill 995,492 995,492 995,492 995,492 Tangible stockholders' equity $ 1,554,820 $ 1,518,269 $ 1,490,574 $ 1,364,246 Total assets $ 23,991,791 $ 24,279,186 $ 24,926,474 $ 24,511,566 Less: goodwill 995,492 995,492 995,492 995,492 Tangible assets $ 22,996,299 $ 23,283,694 $ 23,930,982 $ 23,516,074 Shares outstanding 127,879,012 127,841,908 127,618,761 127,608,037 Total stockholders' equity to total assets 10.63 % 10.35 % 9.97 % 9.63 % Tangible stockholders' equity to tangible assets (non-GAAP) 6.76 % 6.52 % 6.23 % 5.80 % Book value per share $ 19.94 $ 19.66 $ 19.48 $ 18.49 Tangible book value per share (non-GAAP) $ 12.16 $ 11.88 $ 11.68 $ 10.69 ______________________
(1) Annualized for the three and six months ended June 30, 2024 and 2023 and three months ended March 31, 2024. 
