FHB First Hawaiian Inc

First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended December 31, 2022.

“We are pleased to report that we closed 2022 with a solid fourth quarter,” said Bob Harrison, Chairman, President and CEO. “We saw continued earnings growth, driven by strong loan growth and excellent credit quality.”

On January 25, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on March 3, 2023, to stockholders of record at the close of business on February 17, 2023.

Additionally, the Company’s Board of Directors adopted a stock repurchase program for up to $40 million of its outstanding common stock during 2023.

Fourth Quarter 2022 Highlights:

• Net income of $79.6 million, or $0.62 per diluted share
• Total loans and leases increased $391.6 million versus prior quarter
• Total deposits decreased $402.7 million versus prior quarter
• Net interest margin increased 22 basis points to 3.15%
• Recorded a $3.0 million provision for credit losses
• Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet

Total assets were $24.6 billion as of December 31, 2022, compared to $24.9 billion as of September 30, 2022.

Gross loans and leases were $14.1 billion as of December 31, 2022, an increase of $391.6 million, or 2.9%, from $13.7 billion as of September 30, 2022.

Total deposits were $21.7 billion as of December 31, 2022, a decrease of $402.7 million, or 1.8%, from $22.1 billion as of September 30, 2022.

Net Interest Income

Net interest income for the fourth quarter of 2022 was $171.8 million, an increase of $9.1 million, or 5.6%, compared to $162.7 million for the prior quarter.

The net interest margin was 3.15% in the fourth quarter of 2022, an increase of 22 basis points compared to 2.93% in the prior quarter.

Provision Expense

During the quarter ended December 31, 2022, we recorded a $3.0 million provision for credit losses. In the quarter ended September 30, 2022, we recorded a $3.2 million provision for credit losses.

Noninterest Income

Noninterest income was $48.2 million in the fourth quarter of 2022, an increase of $2.3 million compared to noninterest income of $45.9 million in the prior quarter.

Noninterest Expense

Noninterest expense was $113.9 million in the fourth quarter of 2022, an increase of $0.6 million compared to noninterest expense of $113.3 million in the prior quarter.

The efficiency ratio was 51.5% and 54.0% for the quarters ended December 31, 2022 and September 30, 2022, respectively.

Taxes

The effective tax rate was 22.8% and 25.0% for the quarters ended December 31, 2022 and September 30, 2022, respectively.

Asset Quality

The allowance for credit losses was $143.9 million, or 1.02% of total loans and leases, as of December 31, 2022, compared to $148.2 million, or 1.08% of total loans and leases, as of September 30, 2022. The reserve for unfunded commitments was $33.8 million as of December 31, 2022, compared to $30.1 million as of September 30, 2022. Net charge-offs were $3.5 million, or 0.10% of average loans and leases on an annualized basis, for the quarter ended December 31, 2022, compared to net charge-offs of $2.8 million, or 0.08% of average loans and leases on an annualized basis, for the quarter ended September 30, 2022. Total non-performing assets were $12.0 million, or 0.09% of total loans and leases and other real estate owned, on December 31, 2022, compared to total non-performing assets of $8.4 million, or 0.06% of total loans and leases and other real estate owned, on September 30, 2022.

Capital

Total stockholders' equity was $2.3 billion on December 31, 2022 compared to $2.2 billion on September 30, 2022.

The tier 1 leverage, common equity tier 1 and total capital ratios were 8.11%, 11.82%, and 12.92%, respectively, on December 31, 2022, compared with 7.78%, 11.79%, and 12.92%, respectively, on September 30, 2022.

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

As to the stock repurchase program approved for 2023, 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.

Please note that the process for accessing the conference call has changed. Participants will need to click on the registration link provided below, register for the conference call, and then you will receive the dial-in number and a personalized PIN code.

To access the call by phone, please register via the following link: https://register.vevent.com/register/BI73d7abf351534972a54610116ab71617, 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 StatementsThis 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. Further, statements about the potential effects of the COVID-19 pandemic on our businesses and financial results and conditions may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us. 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 ongoing impacts of COVID-19, 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, 2021 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022, and September 30, 2022.

Use of Non-GAAP Financial MeasuresReturn 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) 525-6268khaseyama@fhb.com

Media Contact:Lindsay Chambers(808) 525-6254lchambers@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)		2022			2022			2021			2022			2021
Operating Results:
Net interest income		$	171,794		$	162,736		$	137,327		$	613,549		$	530,559
Provision for credit losses			2,956			3,183			—			1,392			(39,000	)
Noninterest income			48,151			45,857			41,573			179,525			184,916
Noninterest expense			113,922			113,332			108,749			440,471			405,479
Net income			79,588			69,018			57,022			265,685			265,735
Basic earnings per share			0.62			0.54			0.45			2.08			2.06
Diluted earnings per share			0.62			0.54			0.44			2.08			2.05
Dividends declared per share			0.26			0.26			0.26			1.04			1.04
Dividend payout ratio			41.94	%		48.15	%		59.09	%		50.00	%		50.73		%
Performance Ratios(1):
Net interest margin			3.15	%		2.93	%		2.38	%		2.78	%		2.43		%
Efficiency ratio			51.47	%		53.98	%		60.50	%		55.20	%		56.45		%
Return on average total assets			1.28	%		1.10	%		0.88	%		1.06	%		1.09		%
Return on average tangible assets (non-GAAP)(2)			1.34	%		1.14	%		0.92	%		1.11	%		1.13		%
Return on average total stockholders' equity			14.27	%		12.08	%		8.46	%		11.44	%		9.81		%
Return on average tangible stockholders' equity (non-GAAP)(2)			25.93	%		21.53	%		13.47	%		20.03	%		15.51		%
Average Balances:
Average loans and leases		$	13,876,136		$	13,491,428		$	12,814,316		$	13,314,821		$	13,034,295
Average earning assets			21,856,135			22,258,066			23,100,445			22,272,795			21,921,149
Average assets			24,575,648			24,957,042			25,650,505			24,964,422			24,426,258
Average deposits			21,725,177			22,148,039			22,246,577			22,058,497			21,011,587
Average stockholders' equity			2,213,030			2,267,152			2,675,513			2,321,606			2,708,370
Market Value Per Share:
Closing			26.04			24.63			27.33			26.04			27.33
High			27.16			28.14			30.14			31.16			30.80
Low			24.06			21.21			25.17			21.21			23.14

		As of			As of			As of
		December 31,			September 30,			December 31,
(dollars in thousands, except per share data)		2022			2022			2021
Balance Sheet Data:
Loans and leases		$	14,092,012		$	13,700,374		$	12,961,999
Total assets			24,577,223			24,870,272			24,992,410
Total deposits			21,689,029			22,091,738			21,816,146
Short-term borrowings			75,000			—			—
Total stockholders' equity			2,269,005			2,200,651			2,656,912
Per Share of Common Stock:
Book value		$	17.82		$	17.28		$	20.84
Tangible book value (non-GAAP)(2)			10.00			9.46			13.03
Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases			0.08	%		0.06	%		0.05	%
Allowance for credit losses for loans and leases / total loans and leases			1.02	%		1.08	%		1.21	%
Capital Ratios:
Common Equity Tier 1 Capital Ratio			11.82	%		11.79	%		12.24	%
Tier 1 Capital Ratio			11.82	%		11.79	%		12.24	%
Total Capital Ratio			12.92	%		12.92	%		13.49	%
Tier 1 Leverage Ratio			8.11	%		7.78	%		7.24	%
Total stockholders' equity to total assets			9.23	%		8.85	%		10.63	%
Tangible stockholders' equity to tangible assets (non-GAAP)(2)			5.40	%		5.05	%		6.92	%
Non-Financial Data:
Number of branches			51			51			54
Number of ATMs			294			303			299
Number of Full-Time Equivalent Employees			2,063			2,042			2,036

(1)   Except for the efficiency ratio, amounts are annualized for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021.

(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)		2022			2022				2021				2022			2021
Interest income
Loans and lease financing		$	159,526		$	134,646			$	111,865			$	509,820		$	444,488
Available-for-sale investment securities			18,714			19,644				28,393				87,108			101,410
Held-to-maturity investment securities			19,137			17,950				—				55,376			—
Other			3,088			4,150				1,051				10,916			3,413
Total interest income			200,465			176,390				141,309				663,220			549,311
Interest expense
Deposits			28,202			13,653				3,216				49,201			13,853
Short-term and long-term borrowings			469			1				766				470			4,899
Total interest expense			28,671			13,654				3,982				49,671			18,752
Net interest income			171,794			162,736				137,327				613,549			530,559
Provision for credit losses			2,956			3,183				—				1,392			(39,000	)
Net interest income after provision for credit losses			168,838			159,553				137,327				612,157			569,559
Noninterest income
Service charges on deposit accounts			7,376			7,089				7,171				28,809			27,510
Credit and debit card fees			16,376			17,746				16,266				66,028			63,580
Other service charges and fees			9,185			9,179				9,196				37,036			38,578
Trust and investment services income			9,023			9,800				8,895				36,465			34,719
Bank-owned life insurance			2,865			(341	)			2,851				1,248			13,185
Investment securities gains, net			—			—				—				—			102
Other			3,326			2,384				(2,806	)			9,939			7,242
Total noninterest income			48,151			45,857				41,573				179,525			184,916
Noninterest expense
Salaries and employee benefits			49,629			51,372				45,982				199,129			182,384
Contracted services and professional fees			17,638			16,625				14,603				70,027			63,349
Occupancy			8,175			8,115				8,074				31,034			29,348
Equipment			9,984			10,791				6,317				34,506			24,719
Regulatory assessment and fees			2,591			2,487				2,557				9,603			8,245
Advertising and marketing			2,072			1,902				1,579				7,996			6,108
Card rewards program			8,681			8,141				7,471				30,990			25,244
Other			15,152			13,899				22,166				57,186			66,082
Total noninterest expense			113,922			113,332				108,749				440,471			405,479
Income before provision for income taxes			103,067			92,078				70,151				351,211			348,996
Provision for income taxes			23,479			23,060				13,129				85,526			83,261
Net income		$	79,588		$	69,018			$	57,022			$	265,685		$	265,735
Basic earnings per share		$	0.62		$	0.54			$	0.45			$	2.08		$	2.06
Diluted earnings per share		$	0.62		$	0.54			$	0.44			$	2.08		$	2.05
Basic weighted-average outstanding shares			127,356,795			127,377,713				127,893,011				127,489,889			128,963,131
Diluted weighted-average outstanding shares			127,894,773			127,796,617				128,512,257				127,981,699			129,537,922

Consolidated Balance Sheets		Table 3
		December 31,				September 30,				December 31,
(dollars in thousands)		2022				2022				2021
Assets
Cash and due from banks		$	297,502			$	291,360			$	246,716
Interest-bearing deposits in other banks			229,122				657,574				1,011,753
Investment securities:
Available-for-sale, at fair value (amortized cost: $3,549,599 as of December 31, 2022, $3,673,396 as of September 30, 2022 and $8,560,733 as of December 31, 2021)			3,151,133				3,289,160				8,428,032
Held-to-maturity, at amortized cost (fair value: $3,814,822 as of December 31, 2022, $3,960,713 as of September 30, 2022 and nil as of December 31, 2021)			4,320,639				4,406,143				—
Loans held for sale			—				361				538
Loans and leases			14,092,012				13,700,374				12,961,999
Less: allowance for credit losses			143,900				148,163				157,262
Net loans and leases			13,948,112				13,552,211				12,804,737
Premises and equipment, net			280,355				299,179				318,448
Other real estate owned and repossessed personal property			91				139				175
Accrued interest receivable			78,194				68,545				63,158
Bank-owned life insurance			473,067				470,202				471,819
Goodwill			995,492				995,492				995,492
Mortgage servicing rights			6,562				6,866				8,302
Other assets			796,954				833,040				643,240
Total assets		$	24,577,223			$	24,870,272			$	24,992,410
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing		$	12,824,383			$	12,774,645			$	12,422,283
Noninterest-bearing			8,864,646				9,317,093				9,393,863
Total deposits			21,689,029				22,091,738				21,816,146
Short-term borrowings			75,000				—				—
Retirement benefits payable			102,577				133,981				134,491
Other liabilities			441,612				443,902				384,861
Total liabilities			22,308,218				22,669,621				22,335,498
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,963,918 / 127,363,327 shares as of December 31, 2022, issued/outstanding: 140,958,520 / 127,357,680 shares as of September 30, 2022 and issued/outstanding: 140,581,715 / 127,502,472 shares as of December 31, 2021)			1,410				1,410				1,406
Additional paid-in capital			2,538,336				2,535,601				2,527,663
Retained earnings			736,544				690,433				604,534
Accumulated other comprehensive loss, net			(639,254	)			(658,756	)			(121,693	)
Treasury stock (13,600,591 shares as of December 31, 2022, 13,600,840 shares as of September 30, 2022 and 13,079,243 shares as of December 31, 2021)			(368,031	)			(368,037	)			(354,998	)
Total stockholders' equity			2,269,005				2,200,651				2,656,912
Total liabilities and stockholders' equity		$	24,577,223			$	24,870,272			$	24,992,410

Average Balances and Interest Rates																								Table 4
		Three Months Ended								Three Months Ended								Three Months Ended
		December 31, 2022								September 30, 2022								December 31, 2021
		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		$	321.3		$	2.9		3.64	%	$	724.0		$	4.0		2.20	%	$	2,074.5		$	0.8		0.15	%
Available-for-Sale Investment Securities
Taxable			3,180.8			18.3		2.30			3,733.8			19.2		2.05			7,515.2			25.8		1.37
Non-Taxable			37.9			0.5		5.42			45.1			0.6		5.16			615.3			3.3		2.14
Held-to-Maturity Investment Securities
Taxable			3,754.9			15.8		1.69			3,573.6			14.6		1.64			—			—		—
Non-Taxable			613.4			4.2		2.69			613.6			4.2		2.72			—			—		—
Total Investment Securities			7,587.0			38.8		2.04			7,966.1			38.6		1.93			8,130.5			29.1		1.43
Loans Held for Sale			0.1			—		6.50			0.7			—		3.62			1.0			—		1.35
Loans and Leases(1)
Commercial and industrial			2,126.3			28.1		5.24			2,025.5			20.7		4.05			2,084.0			21.1		4.01
Commercial real estate			4,116.8			53.9		5.19			4,016.7			42.3		4.18			3,572.9			26.0		2.89
Construction			804.4			11.8		5.83			737.4			8.6		4.63			806.6			6.3		3.09
Residential:
Residential mortgage			4,280.6			38.1		3.56			4,224.0			36.4		3.45			4,014.9			34.9		3.48
Home equity line			1,029.7			8.1		3.10			991.1			7.2		2.87			864.4			5.5		2.52
Consumer			1,220.9			17.1		5.55			1,218.0			17.1		5.57			1,241.3			16.3		5.22
Lease financing			297.4			2.9		3.92			278.7			2.7		3.81			230.2			1.9		3.27
Total Loans and Leases			13,876.1			160.0		4.58			13,491.4			135.0		3.98			12,814.3			112.0		3.48
Other Earning Assets			71.6			0.2		0.80			75.9			0.1		0.69			80.1			0.3		1.27
Total Earning Assets(2)			21,856.1			201.9		3.67			22,258.1			177.7		3.18			23,100.4			142.2		2.45
Cash and Due from Banks			286.4								277.0								282.2
Other Assets			2,433.1								2,421.9								2,267.9
Total Assets		$	24,575.6							$	24,957.0							$	25,650.5
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings		$	6,455.5		$	10.3		0.63	%	$	6,871.5		$	6.7		0.39	%		7,086.0		$	0.8		0.04	%
Money Market			4,012.9			9.8		0.97			4,086.1			4.8		0.47			4,048.3			0.5		0.05
Time			2,163.2			8.1		1.48			1,720.5			2.1		0.48			1,819.0			1.9		0.42
Total Interest-Bearing Deposits			12,631.6			28.2		0.89			12,678.1			13.6		0.43			12,953.3			3.2		0.10
Federal Funds Purchased			45.5			0.5		4.09			0.2			—		1.67			—			—		—
Long-Term Borrowings			—			—		—			—			—		—			110.9			0.8		2.74
Total Interest-Bearing Liabilities			12,677.1			28.7		0.90			12,678.3			13.6		0.43			13,064.2			4.0		0.12
Net Interest Income					$	173.2							$	164.1							$	138.2
Interest Rate Spread								2.77	%							2.75	%							2.33	%
Net Interest Margin								3.15	%							2.93	%							2.38	%
Noninterest-Bearing Demand Deposits			9,093.6								9,469.9								9,293.3
Other Liabilities			591.9								541.6								617.5
Stockholders' Equity			2,213.0								2,267.2								2,675.5
Total Liabilities and Stockholders' Equity		$	24,575.6							$	24,957.0							$	25,650.5

(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 $1.4 million, $1.3 million and $0.9 million for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively.

Average Balances and Interest Rates																Table 5
		Year Ended								Year Ended
		December 31, 2022								December 31, 2021
		Average			Income/			Yield/		Average			Income/			Yield/
(dollars in millions)		Balance			Expense			Rate		Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	867.6		$	10.3		1.19	%	$	1,723.0		$	2.3		0.14	%
Available-for-Sale Investment Securities
Taxable			4,650.1			83.2		1.79			6,608.9			93.3		1.41
Non-Taxable			180.0			4.9		2.74			481.9			10.2		2.12
Held-to-Maturity Investment Securities
Taxable			2,728.2			45.5		1.67			—			—		—
Non-Taxable			460.6			12.5		2.71			—			—		—
Total Investment Securities			8,018.9			146.1		1.82			7,090.8			103.5		1.46
Loans Held for Sale			0.6			—		3.14			3.6			0.1		2.24
Loans and Leases(1)
Commercial and industrial			2,019.5			78.4		3.88			2,586.8			82.2		3.18
Commercial real estate			3,895.3			153.2		3.93			3,456.7			101.6		2.94
Construction			755.0			32.5		4.30			804.5			25.4		3.16
Residential:
Residential mortgage			4,200.2			145.5		3.46			3,836.6			138.3		3.60
Home equity line			965.0			26.5		2.75			834.3			22.2		2.66
Consumer			1,218.9			65.3		5.35			1,275.5			67.8		5.31
Lease financing			260.9			9.7		3.69			239.9			7.6		3.14
Total Loans and Leases			13,314.8			511.1		3.84			13,034.3			445.1		3.42
Other Earning Assets			70.9			0.6		0.89			69.4			1.1		1.54
Total Earning Assets(2)			22,272.8			668.1		3.00			21,921.1			552.1		2.52
Cash and Due from Banks			289.0								289.3
Other Assets			2,402.6								2,215.9
Total Assets		$	24,964.4							$	24,426.3
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings		$	6,741.5		$	19.2		0.29	%	$	6,581.1		$	2.5		0.04	%
Money Market			4,068.8			16.6		0.41			3,831.4			2.1		0.05
Time			1,826.7			13.4		0.73			2,005.0			9.3		0.47
Total Interest-Bearing Deposits			12,637.0			49.2		0.39			12,417.5			13.9		0.11
Federal Funds Purchased			11.5			0.5		4.08			—			—		—
Long-Term Borrowings			—			—		—			177.5			4.9		2.76
Total Interest-Bearing Liabilities			12,648.5			49.7		0.39			12,595.0			18.8		0.15
Net Interest Income					$	618.4							$	533.3
Interest Rate Spread								2.61	%							2.37	%
Net Interest Margin								2.78	%							2.43	%
Noninterest-Bearing Demand Deposits			9,421.5								8,594.1
Other Liabilities			572.8								528.8
Stockholders' Equity			2,321.6								2,708.4
Total Liabilities and Stockholders' Equity		$	24,964.4							$	24,426.3

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

(2)   Interest income includes taxable-equivalent basis adjustments of $4.9 million and $2.8 million for the year ended December 31, 2022 and 2021, respectively.

Analysis of Change in Net Interest Income										Table 6
		Three Months Ended December 31, 2022
		Compared to September 30, 2022
(dollars in millions)		Volume				Rate			Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	(2.9	)		$	1.8		$	(1.1	)
Available-for-Sale Investment Securities
Taxable			(3.0	)			2.1			(0.9	)
Non-Taxable			(0.1	)			—			(0.1	)
Held-to-Maturity Investment Securities
Taxable			0.8				0.4			1.2
Total Investment Securities			(2.3	)			2.5			0.2
Loans and Leases
Commercial and industrial			1.1				6.3			7.4
Commercial real estate			1.1				10.5			11.6
Construction			0.8				2.4			3.2
Residential:
Residential mortgage			0.5				1.2			1.7
Home equity line			0.3				0.6			0.9
Lease financing			0.2				—			0.2
Total Loans and Leases			4.0				21.0			25.0
Other Earning Assets			—				0.1			0.1
Total Change in Interest Income			(1.2	)			25.4			24.2
Change in Interest Expense:
Interest-Bearing Deposits
Savings			(0.4	)			4.0			3.6
Money Market			(0.1	)			5.1			5.0
Time			0.7				5.3			6.0
Total Interest-Bearing Deposits			0.2				14.4			14.6
Federal Funds Purchased			0.5				—			0.5
Total Change in Interest Expense			0.7				14.4			15.1
Change in Net Interest Income		$	(1.9	)		$	11.0		$	9.1

Analysis of Change in Net Interest Income											Table 7
		Three Months Ended December 31, 2022
		Compared to December 31, 2021
(dollars in millions)		Volume				Rate				Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	(1.2	)		$	3.3			$	2.1
Available-for-Sale Investment Securities
Taxable			(19.5	)			12.0				(7.5	)
Non-Taxable			(4.9	)			2.1				(2.8	)
Held-to-Maturity Investment Securities
Taxable			15.8				—				15.8
Non-Taxable			4.2				—				4.2
Total Investment Securities			(4.4	)			14.1				9.7
Loans and Leases
Commercial and industrial			0.4				6.6				7.0
Commercial real estate			4.5				23.4				27.9
Construction			—				5.5				5.5
Residential:
Residential mortgage			2.3				0.9				3.2
Home equity line			1.2				1.4				2.6
Consumer			(0.2	)			1.0				0.8
Lease financing			0.6				0.4				1.0
Total Loans and Leases			8.8				39.2				48.0
Other Earning Assets			—				(0.1	)			(0.1	)
Total Change in Interest Income			3.2				56.5				59.7
Change in Interest Expense:
Interest-Bearing Deposits
Savings			(0.1	)			9.6				9.5
Money Market			—				9.3				9.3
Time			0.5				5.7				6.2
Total Interest-Bearing Deposits			0.4				24.6				25.0
Federal Funds Purchased			0.5				—				0.5
Long-Term Borrowings			(0.4	)			(0.4	)			(0.8	)
Total Change in Interest Expense			0.5				24.2				24.7
Change in Net Interest Income		$	2.7			$	32.3			$	35.0

Analysis of Change in Net Interest Income											Table 8
		Year Ended December 31, 2022
		Compared to December 31, 2021
(dollars in millions)		Volume				Rate				Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	(1.7	)		$	9.7			$	8.0
Available-for-Sale Investment Securities
Taxable			(31.6	)			21.5				(10.1	)
Non-Taxable			(7.7	)			2.4				(5.3	)
Held-to-Maturity Investment Securities
Taxable			45.5				—				45.5
Non-Taxable			12.5				—				12.5
Total Investment Securities			18.7				23.9				42.6
Loans Held for Sale			(0.1	)			—				(0.1	)
Loans and Leases
Commercial and industrial			(20.0	)			16.2				(3.8	)
Commercial real estate			14.1				37.5				51.6
Construction			(1.6	)			8.7				7.1
Residential:
Residential mortgage			12.7				(5.5	)			7.2
Home equity line			3.5				0.8				4.3
Consumer			(3.0	)			0.5				(2.5	)
Lease financing			0.7				1.4				2.1
Total Loans and Leases			6.4				59.6				66.0
Other Earning Assets			—				(0.5	)			(0.5	)
Total Change in Interest Income			23.3				92.7				116.0
Change in Interest Expense:
Interest-Bearing Deposits
Savings			—				16.7				16.7
Money Market			0.1				14.4				14.5
Time			(0.8	)			4.9				4.1
Total Interest-Bearing Deposits			(0.7	)			36.0				35.3
Federal Funds Purchased			0.5				—				0.5
Long-Term Borrowings			(2.5	)			(2.4	)			(4.9	)
Total Change in Interest Expense			(2.7	)			33.6				30.9
Change in Net Interest Income		$	26.0			$	59.1			$	85.1

Loans and Leases									Table 9
		December 31,			September 30,			December 31,
(dollars in thousands)		2022			2022			2021
Commercial and industrial:
Commercial and industrial excluding Paycheck Protection Program loans		$	2,217,604		$	2,017,095		$	1,870,657
Paycheck Protection Program loans			18,293			26,712			216,442
Total commercial and industrial			2,235,897			2,043,807			2,087,099
Commercial real estate			4,132,309			4,103,310			3,639,623
Construction			844,643			765,862			813,969
Residential:
Residential mortgage			4,302,788			4,252,041			4,083,367
Home equity line			1,055,351			1,010,631			876,608
Total residential			5,358,139			5,262,672			4,959,975
Consumer			1,222,934			1,218,885			1,229,939
Lease financing			298,090			305,838			231,394
Total loans and leases		$	14,092,012		$	13,700,374		$	12,961,999

Deposits									Table 10
		December 31,			September 30,			December 31,
(dollars in thousands)		2022			2022			2021
Demand		$	8,864,646		$	9,317,093		$	9,393,863
Savings			6,382,910			6,724,783			6,612,775
Money Market			3,965,423			4,150,940			4,033,070
Time			2,476,050			1,898,922			1,776,438
Total Deposits		$	21,689,029		$	22,091,738		$	21,816,146

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)		2022			2022			2021
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial		$	1,215		$	1,528		$	718
Commercial real estate			727			727			727
Total Commercial Loans			1,942			2,255			1,445
Residential Loans:
Residential mortgage			6,166			6,028			5,637
Home equity line			3,797			—			—
Total Residential Loans			9,963			6,028			5,637
Total Non-Accrual Loans and Leases			11,905			8,283			7,082
Other Real Estate Owned			91			139			175
Total Non-Performing Assets		$	11,996		$	8,422		$	7,257
Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial		$	291		$	1,445		$	740
Construction			—			390			—
Total Commercial Loans			291			1,835			740
Residential Loans:
Residential mortgage			58			—			987
Home equity line			—			1,832			3,681
Total Residential Loans			58			1,832			4,668
Consumer			2,885			1,976			1,800
Total Accruing Loans and Leases Past Due 90 Days or More		$	3,234		$	5,643		$	7,208
Restructured Loans on Accrual Status and Not Past Due 90 Days or More		$	25,399		$	27,342		$	34,893
Total Loans and Leases		$	14,092,012		$	13,700,374		$	12,961,999

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)		2022				2022				2021				2022				2021
Balance at Beginning of Period		$	178,304			$	177,900			$	193,768				187,584				239,057
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial			(735	)			(328	)			(4,432	)			(2,012	)			(5,949	)
Commercial real estate			—				(750	)			—				(750	)			(66	)
Total Commercial Loans			(735	)			(1,078	)			(4,432	)			(2,762	)			(6,015	)
Residential Loans:
Residential mortgage			(102	)			(1	)			(534	)			(103	)			(632	)
Home equity line			(12	)			—				(107	)			(1,175	)			(342	)
Total Residential Loans			(114	)			(1	)			(641	)			(1,278	)			(974	)
Consumer			(5,094	)			(3,986	)			(3,250	)			(16,848	)			(16,634	)
Total Loans and Leases Charged-Off			(5,943	)			(5,065	)			(8,323	)			(20,888	)			(23,623	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial			303				240				244				897				867
Commercial real estate			—				—				9				14				39
Construction			—				—				100				—				266
Lease financing			—				—				—				60				—
Total Commercial Loans			303				240				353				971				1,172
Residential Loans:
Residential mortgage			173				37				15				418				261
Home equity line			138				356				28				713				117
Total Residential Loans			311				393				43				1,131				378
Consumer			1,804				1,653				1,743				7,545				9,600
Total Recoveries on Loans and Leases Previously Charged-Off			2,418				2,286				2,139				9,647				11,150
Net Loans and Leases Charged-Off			(3,525	)			(2,779	)			(6,184	)			(11,241	)			(12,473	)
Provision for Credit Losses			2,956				3,183				—				1,392				(39,000	)
Balance at End of Period		$	177,735			$	178,304			$	187,584			$	177,735			$	187,584
Components:
Allowance for Credit Losses		$	143,900			$	148,163			$	157,262			$	143,900			$	157,262
Reserve for Unfunded Commitments			33,835				30,141				30,322				33,835				30,322
Total Allowance for Credit Losses and Reserve for Unfunded Commitments		$	177,735			$	178,304			$	187,584			$	177,735			$	187,584
Average Loans and Leases Outstanding		$	13,876,136			$	13,491,428			$	12,814,316			$	13,314,821			$	13,034,295
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)			0.10		%		0.08		%		0.19		%		0.08		%		0.10		%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding			1.02		%		1.08		%		1.21		%		1.02		%		1.21		%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases			12.09x				17.89x				22.21x				12.09x				22.21x

(1)   Annualized for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021.

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)		2022			2021			2020			2019			2018			Prior			Cost Basis			Cost Basis			Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass		$	359,881		$	422,567		$	54,656		$	170,222		$	51,476		$	137,257		$	894,384		$	15,715		$	2,106,158
Special Mention			2,059			240			1,371			2,643			184			1,431			22,897			378			31,203
Substandard			625			289			1,117			1,092			668			885			14,733			65			19,474
Other (1)			17,679			7,721			4,329			3,965			1,881			1,167			42,320			—			79,062
Total Commercial and Industrial			380,244			430,817			61,473			177,922			54,209			140,740			974,334			16,158			2,235,897
Commercial Real Estate
Risk rating:
Pass			889,583			695,882			319,838			565,587			395,474			1,173,163			48,081			—			4,087,608
Special Mention			170			—			555			14,878			512			11,398			675			—			28,188
Substandard			—			—			173			—			1,704			14,485			—			—			16,362
Other (1)			—			—			—			—			—			151			—			—			151
Total Commercial Real Estate			889,753			695,882			320,566			580,465			397,690			1,199,197			48,756			—			4,132,309
Construction
Risk rating:
Pass			124,464			261,536			96,423			97,000			88,973			84,704			25,957			—			779,057
Special Mention			—			—			—			221			—			—			—			—			221
Substandard			—			—			—			—			21			490			—			—			511
Other (1)			29,694			21,339			4,686			2,201			3,784			2,196			954			—			64,854
Total Construction			154,158			282,875			101,109			99,422			92,778			87,390			26,911			—			844,643
Lease Financing
Risk rating:
Pass			113,563			24,052			43,497			37,502			6,004			67,687			—			—			292,305
Special Mention			—			411			2,498			1,299			—			—			—			—			4,208
Substandard			—			—			197			12			11			1,357			—			—			1,577
Total Lease Financing			113,563			24,463			46,192			38,813			6,015			69,044			—			—			298,090
Total Commercial Lending		$	1,537,718		$	1,434,037		$	529,340		$	896,622		$	550,692		$	1,496,371		$	1,050,001		$	16,158		$	7,510,939

																							Revolving
																							Loans
																							Converted
		Term Loans																		Revolving			to Term
		Amortized Cost Basis by Origination Year																		Loans			Loans
(continued)																				Amortized			Amortized
(dollars in thousands)		2022			2021			2020			2019			2018			Prior			Cost Basis			Cost Basis			Total
Residential Lending
Residential Mortgage
FICO:
740 and greater		$	557,636		$	1,064,444		$	560,463		$	245,241		$	165,258		$	920,100		$	—		$	—		$	3,513,142
680 - 739			73,929			112,672			82,416			40,355			22,126			130,508			—			—			462,006
620 - 679			12,320			13,804			9,881			3,649			3,054			35,441			—			—			78,149
550 - 619			2,455			2,246			1,791			263			601			6,955			—			—			14,311
Less than 550			—			1,321			367			—			966			5,304			—			—			7,958
No Score (3)			22,289			14,671			6,820			10,599			15,921			47,245			—			—			117,545
Other (2)			18,970			18,211			15,287			9,201			9,124			29,128			9,202			554			109,677
Total Residential Mortgage			687,599			1,227,369			677,025			309,308			217,050			1,174,681			9,202			554			4,302,788
Home Equity Line
FICO:
740 and greater			—			—			—			—			—			—			817,123			2,059			819,182
680 - 739			—			—			—			—			—			—			171,117			2,714			173,831
620 - 679			—			—			—			—			—			—			45,368			2,100			47,468
550 - 619			—			—			—			—			—			—			7,485			1,029			8,514
Less than 550			—			—			—			—			—			—			1,151			481			1,632
No Score (3)			—			—			—			—			—			—			4,724			—			4,724
Total Home Equity Line			—			—			—			—			—			—			1,046,968			8,383			1,055,351
Total Residential Lending			687,599			1,227,369			677,025			309,308			217,050			1,174,681			1,056,170			8,937			5,358,139
Consumer Lending
FICO:
740 and greater			200,887			111,047			53,534			43,912			24,951			8,432			125,126			185			568,074
680 - 739			99,787			67,140			37,260			31,751			15,874			7,665			72,101			514			332,092
620 - 679			25,949			29,587			14,226			16,872			9,672			6,488			31,854			937			135,585
550 - 619			3,017			5,475			5,226			8,056			5,396			3,924			11,269			854			43,217
Less than 550			656			1,351			2,286			3,779			1,869			1,593			3,541			443			15,518
No Score (3)			3,205			258			—			51			24			29			38,805			227			42,599
Other (2)			1,615			4,082			353			1,368			—			—			78,430			1			85,849
Total Consumer Lending			335,116			218,940			112,885			105,789			57,786			28,131			361,126			3,161			1,222,934
Total Loans and Leases		$	2,560,433		$	2,880,346		$	1,319,250		$	1,311,719		$	825,528		$	2,699,183		$	2,467,297		$	28,256		$	14,092,012

(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, except per share amounts)		2022			2022			2021			2022			2021
Income Statement Data:
Net income		$	79,588		$	69,018		$	57,022		$	265,685		$	265,735
Average total stockholders' equity		$	2,213,030		$	2,267,152		$	2,675,513		$	2,321,606		$	2,708,370
Less: average goodwill			995,492			995,492			995,492			995,492			995,492
Average tangible stockholders' equity		$	1,217,538		$	1,271,660		$	1,680,021		$	1,326,114		$	1,712,878
Average total assets		$	24,575,648		$	24,957,042		$	25,650,505		$	24,964,422		$	24,426,258
Less: average goodwill			995,492			995,492			995,492			995,492			995,492
Average tangible assets		$	23,580,156		$	23,961,550		$	24,655,013		$	23,968,930		$	23,430,766
Return on average total stockholders' equity(1)			14.27	%		12.08	%		8.46	%		11.44	%		9.81	%
Return on average tangible stockholders' equity (non-GAAP)(1)			25.93	%		21.53	%		13.47	%		20.03	%		15.51	%
Return on average total assets(1)			1.28	%		1.10	%		0.88	%		1.06	%		1.09	%
Return on average tangible assets (non-GAAP)(1)			1.34	%		1.14	%		0.92	%		1.11	%		1.13	%

		As of			As of			As of
		December 31,			September 30,			December 31,
(dollars in thousands, except per share amounts)		2022			2022			2021
Balance Sheet Data:
Total stockholders' equity		$	2,269,005		$	2,200,651		$	2,656,912
Less: goodwill			995,492			995,492			995,492
Tangible stockholders' equity		$	1,273,513		$	1,205,159		$	1,661,420
Total assets		$	24,577,223		$	24,870,272		$	24,992,410
Less: goodwill			995,492			995,492			995,492
Tangible assets		$	23,581,731		$	23,874,780		$	23,996,918
Shares outstanding			127,363,327			127,357,680			127,502,472
Total stockholders' equity to total assets			9.23	%		8.85	%		10.63	%
Tangible stockholders' equity to tangible assets (non-GAAP)			5.40	%		5.05	%		6.92	%
Book value per share		$	17.82		$	17.28		$	20.84
Tangible book value per share (non-GAAP)		$	10.00		$	9.46		$	13.03

(1)   Annualized for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021.