FHB First Hawaiian Inc

First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended September 30, 2024.

“I’m happy to report that we had a very good third quarter,” said Bob Harrison, Chairman, President, and CEO. “Net interest income and noninterest income increased over the prior quarter, expenses were well controlled and credit quality remained excellent. I’m also pleased to report that during the third quarter, Moody’s reviewed and reaffirmed all of First Hawaiian Bank’s long-term credit and deposit ratings.”

On October 23, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on November 29, 2024, to stockholders of record at the close of business on November 18, 2024.

Third Quarter 2024 Highlights:

• Net income of $61.5 million, or $0.48 per diluted share
• Total loans and leases decreased $118.5 million versus the prior quarter
• Total deposits decreased $91.1 million versus the prior quarter
• Net interest margin increased 3 basis points to 2.95%
• Recorded a $7.4 million provision for credit losses
• Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet

Total assets were $23.8 billion as of September 30, 2024, a decrease of $211.5 million, or 0.9%, from $24.0 billion as of June 30, 2024.

Gross loans and leases were $14.2 billion as of September 30, 2024, a decrease of $118.5 million, or 0.8%, from $14.4 billion as of June 30, 2024.

Total deposits were $20.2 billion as of September 30, 2024, a decrease of $91.1 million, or 0.4%, from $20.3 billion as of June 30, 2024.

Net Interest Income

Net interest income for the third quarter of 2024 was $156.7 million, an increase of $3.9 million, or 2.5%, compared to $152.9 million for the prior quarter.

The net interest margin was 2.95% in the third quarter of 2024, an increase of 3 basis points compared to 2.92% in the prior quarter.

Provision Expense

During the quarter ended September 30, 2024, we recorded a $7.4 million provision for credit losses. In the quarter ended June 30, 2024, we recorded a $1.8 million provision for credit losses.

Noninterest Income

Noninterest income was $53.3 million in the third quarter of 2024, an increase of $1.5 million compared to noninterest income of $51.8 million in the prior quarter.

Noninterest Expense

Noninterest expense was $126.1 million in the third quarter of 2024, an increase of $4.1 million compared to noninterest expense of $122.1 million in the prior quarter.

The efficiency ratio was 59.8% and 59.2% for the quarters ended September 30, 2024 and June 30, 2024, respectively.

Taxes

The effective tax rate was 19.6% and 23.3% for the quarters ended September 30, 2024 and June 30, 2024, respectively.

Asset Quality

The allowance for credit losses was $163.7 million, or 1.15% of total loans and leases, as of September 30, 2024, compared to $160.5 million, or 1.12% of total loans and leases, as of June 30, 2024. The reserve for unfunded commitments was $33.7 million as of September 30, 2024 compared to $33.4 million as of June 30, 2024. Net charge-offs were $3.9 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended September 30, 2024, compared to net charge-offs of $2.5 million, or 0.07% of average loans and leases on an annualized basis, for the quarter ended June 30, 2024. Total non-performing assets were $17.8 million, or 0.13% of total loans and leases and other real estate owned, as of September 30, 2024, compared to $18.0 million, or 0.13% of total loans and leases and other real estate owned, as of June 30, 2024.

Capital

Total stockholders' equity increased $97.7 million in the third quarter, and stood at $2.6 billion on September 30, 2024 and June 30, 2024.

The tier 1 leverage, common equity tier 1 and total capital ratios were 9.14%, 13.03% and 14.25%, respectively, on September 30, 2024, compared with 9.03%, 12.73% and 13.92%, respectively, on June 30, 2024.

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

First Hawaiian, Inc.

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

Conference Call Information

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

To access the call by phone, participants will need to click on the following registration link: https://register.vevent.com/register/BIec8273f35cc340bcb13d27eae17d127b, register for the conference call, and then you will receive the dial-in number and a personalized PIN code. 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. 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 quarters ended March 31, 2024 and June 30, 2024.

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 Nine Months Ended
		September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share data)		2024			2024			2023			2024			2023
Operating Results:
Net interest income		$	156,707		$	152,851		$	157,148		$	463,985		$	484,334
Provision for credit losses			7,400			1,800			7,500			15,500			21,300
Noninterest income			53,288			51,768			46,097			156,427			142,468
Noninterest expense			126,147			122,086			119,383			377,046			358,831
Net income			61,492			61,921			58,221			177,633			187,481
Basic earnings per share			0.48			0.48			0.46			1.39			1.47
Diluted earnings per share			0.48			0.48			0.46			1.38			1.47
Dividends declared per share			0.26			0.26			0.26			0.78			0.78
Dividend payout ratio			54.17	%		54.17	%		56.52	%		56.52	%		53.06	%
Performance Ratios(1):
Net interest margin			2.95	%		2.92	%		2.86	%		2.93	%		2.96	%
Efficiency ratio			59.77	%		59.22	%		58.31	%		60.38	%		56.86	%
Return on average total assets			1.02	%		1.04	%		0.93	%		0.99	%		1.01	%
Return on average tangible assets (non-GAAP)(2)			1.06	%		1.08	%		0.97	%		1.03	%		1.06	%
Return on average total stockholders' equity			9.45	%		9.91	%		9.76	%		9.37	%		10.72	%
Return on average tangible stockholders' equity (non-GAAP)(2)			15.35	%		16.42	%		16.84	%		15.43	%		18.68	%
Average Balances:
Average loans and leases		$	14,304,806		$	14,358,049		$	14,349,402		$	14,325,065		$	14,238,309
Average earning assets			21,328,882			21,247,707			22,060,480			21,352,739			22,040,704
Average assets			24,046,696			23,958,913			24,727,893			24,064,208			24,699,826
Average deposits			20,367,805			20,308,028			21,212,102			20,415,746			21,245,055
Average stockholders' equity			2,588,806			2,512,471			2,367,422			2,532,911			2,337,292
Market Value Per Share:
Closing			23.15			20.76			18.05			23.15			18.05
High			26.18			22.68			22.59			26.18			28.28
Low			20.28			19.48			17.41			19.48			15.08

		As of			As of			As of			As of
		September 30,			June 30,			December 31,			September 30,
(dollars in thousands, except per share data)		2024			2024			2023			2023
Balance Sheet Data:
Loans and leases		$	14,241,370		$	14,359,899		$	14,353,497		$	14,332,335
Total assets			23,780,285			23,991,791			24,926,474			24,912,524
Total deposits			20,227,702			20,318,832			21,332,657			21,511,489
Short-term borrowings			250,000			500,000			500,000			500,000
Total stockholders' equity			2,648,034			2,550,312			2,486,066			2,351,009
Per Share of Common Stock:
Book value		$	20.71		$	19.94		$	19.48		$	18.42
Tangible book value (non-GAAP)(2)			12.92			12.16			11.68			10.62
Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases			0.13	%		0.13	%		0.13	%		0.10	%
Allowance for credit losses for loans and leases / total loans and leases			1.15	%		1.12	%		1.09	%		1.08	%
Capital Ratios:
Common Equity Tier 1 Capital Ratio			13.03	%		12.73	%		12.39	%		12.21	%
Tier 1 Capital Ratio			13.03	%		12.73	%		12.39	%		12.21	%
Total Capital Ratio			14.25	%		13.92	%		13.57	%		13.38	%
Tier 1 Leverage Ratio			9.14	%		9.03	%		8.64	%		8.45	%
Total stockholders' equity to total assets			11.14	%		10.63	%		9.97	%		9.44	%
Tangible stockholders' equity to tangible assets (non-GAAP)(2)			7.25	%		6.76	%		6.23	%		5.67	%
Non-Financial Data:
Number of branches			48			48			50			50
Number of ATMs			273			272			275			294
Number of Full-Time Equivalent Employees			2,022			2,032			2,089			2,087

(1)   Except for the efficiency ratio, amounts are annualized for the three and nine months ended September 30, 2024 and 2023 and three months ended June 30, 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 Nine Months Ended
		September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share amounts)		2024			2024			2023			2024			2023
Interest income
Loans and lease financing		$	205,682		$	202,068		$	194,098		$	607,594		$	551,777
Available-for-sale investment securities			12,850			14,143			18,426			41,539			55,208
Held-to-maturity investment securities			16,937			17,575			18,271			52,305			55,510
Other			14,527			11,148			9,004			38,444			20,054
Total interest income			249,996			244,934			239,799			739,882			682,549
Interest expense
Deposits			87,500			85,609			74,651			257,252			176,006
Short-term and long-term borrowings			5,397			5,953			6,838			17,303			20,057
Other			392			521			1,162			1,342			2,152
Total interest expense			93,289			92,083			82,651			275,897			198,215
Net interest income			156,707			152,851			157,148			463,985			484,334
Provision for credit losses			7,400			1,800			7,500			15,500			21,300
Net interest income after provision for credit losses			149,307			151,051			149,648			448,485			463,034
Noninterest income
Service charges on deposit accounts			7,783			7,793			7,524			23,122			22,001
Credit and debit card fees			17,533			15,861			15,748			49,567			47,507
Other service charges and fees			11,790			11,036			9,546			32,730			27,764
Trust and investment services income			9,077			9,426			9,742			28,857			28,804
Bank-owned life insurance			4,502			3,360			1,872			12,148			10,263
Other			2,603			4,292			1,665			10,003			6,129
Total noninterest income			53,288			51,768			46,097			156,427			142,468
Noninterest expense
Salaries and employee benefits			59,563			57,737			55,937			176,562			169,873
Contracted services and professional fees			14,634			16,067			16,393			46,440			50,204
Occupancy			6,945			7,377			6,711			21,263			22,047
Equipment			13,078			13,196			11,826			39,687			32,562
Regulatory assessment and fees			3,412			3,814			4,149			15,346			11,661
Advertising and marketing			1,813			1,765			2,289			6,190			6,174
Card rewards program			8,678			8,719			8,358			25,905			24,124
Other			18,024			13,411			13,720			45,653			42,186
Total noninterest expense			126,147			122,086			119,383			377,046			358,831
Income before provision for income taxes			76,448			80,733			76,362			227,866			246,671
Provision for income taxes			14,956			18,812			18,141			50,233			59,190
Net income		$	61,492		$	61,921		$	58,221		$	177,633		$	187,481
Basic earnings per share		$	0.48		$	0.48		$	0.46		$	1.39		$	1.47
Diluted earnings per share		$	0.48		$	0.48		$	0.46		$	1.38		$	1.47
Basic weighted-average outstanding shares			127,886,167			127,867,853			127,609,860			127,820,737			127,552,255
Diluted weighted-average outstanding shares			128,504,035			128,262,594			127,936,440			128,362,433			127,897,829

Consolidated Balance Sheets		Table 3
		September 30,				June 30,				December 31,				September 30,
(dollars in thousands, except share amount)		2024				2024				2023				2023
Assets
Cash and due from banks		$	252,209			$	290,501			$	185,015			$	246,028
Interest-bearing deposits in other banks			820,603				824,258				1,554,882				967,400
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,290,781 as of September 30, 2024, $2,379,004 as of June 30, 2024, $2,558,675 as of December 31, 2023 and $3,172,031 as of September 30, 2023)			2,055,959				2,067,956				2,255,336				2,722,704
Held-to-maturity, at amortized cost (fair value: $3,475,143 as of September 30, 2024, $3,401,006 as of June 30, 2024, $3,574,856 as of December 31, 2023 and $3,433,029 as of September 30, 2023)			3,853,697				3,917,175				4,041,449				4,104,114
Loans held for sale			—				2,820				190				—
Loans and leases			14,241,370				14,359,899				14,353,497				14,332,335
Less: allowance for credit losses			163,700				160,517				156,533				154,795
Net loans and leases			14,077,670				14,199,382				14,196,964				14,177,540
Premises and equipment, net			287,036				283,762				281,461				277,805
Accrued interest receivable			81,875				82,512				84,417				84,327
Bank-owned life insurance			490,135				486,261				479,907				477,698
Goodwill			995,492				995,492				995,492				995,492
Mortgage servicing rights			5,236				5,395				5,699				5,855
Other assets			860,373				836,277				845,662				853,561
Total assets		$	23,780,285			$	23,991,791			$	24,926,474			$	24,912,524
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing		$	13,427,674			$	13,461,365			$	13,749,095			$	13,612,493
Noninterest-bearing			6,800,028				6,857,467				7,583,562				7,898,996
Total deposits			20,227,702				20,318,832				21,332,657				21,511,489
Short-term borrowings			250,000				500,000				500,000				500,000
Retirement benefits payable			100,448				101,304				103,285				99,685
Other liabilities			554,101				521,343				504,466				450,341
Total liabilities			21,132,251				21,441,479				22,440,408				22,561,515
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,735,601 / 127,886,167 shares as of September 30, 2024, issued/outstanding: 141,728,446 / 127,879,012 shares as of June 30, 2024, issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023 and issued/outstanding: 141,330,663 / 127,609,934 shares as of September 30, 2023)			1,417				1,417				1,413				1,413
Additional paid-in capital			2,558,158				2,554,795				2,548,250				2,545,659
Retained earnings			915,062				887,176				837,859				823,895
Accumulated other comprehensive loss, net			(452,658	)			(519,132	)			(530,210	)			(648,731	)
Treasury stock (13,849,434 shares as of September 30, 2024, 13,849,434 shares as of June 30, 2024, 13,721,778 shares as of December 31, 2023 and 13,720,729 shares as of September 30, 2023)			(373,945	)			(373,944	)			(371,246	)			(371,227	)
Total stockholders' equity			2,648,034				2,550,312				2,486,066				2,351,009
Total liabilities and stockholders' equity		$	23,780,285			$	23,991,791			$	24,926,474			$	24,912,524

Average Balances and Interest Rates																								Table 4
		Three Months Ended								Three Months Ended								Three Months Ended
		September 30, 2024								June 30, 2024								September 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		$	1,020.4		$	13.9		5.40	%	$	773.4		$	10.5		5.45	%	$	608.6		$	8.2		5.36	%
Available-for-Sale Investment Securities
Taxable			2,062.6			12.8		2.48			2,100.7			14.1		2.69			2,834.6			18.4		2.59
Non-Taxable			1.5			—		5.06			1.5			—		5.76			2.3			—		5.48
Held-to-Maturity Investment Securities
Taxable			3,288.2			13.8		1.67			3,358.2			14.4		1.71			3,544.1			15.0		1.70
Non-Taxable			602.3			3.7		2.46			602.9			4.0		2.64			604.3			4.1		2.66
Total Investment Securities			5,954.6			30.3		2.03			6,063.3			32.5		2.15			6,985.3			37.5		2.14
Loans Held for Sale			2.2			—		5.64			1.0			—		6.58			0.4			—		6.63
Loans and Leases(1)
Commercial and industrial			2,165.3			38.0		6.98			2,201.6			38.1		6.96			2,123.5			35.7		6.66
Commercial real estate			4,278.3			71.6		6.67			4,305.6			71.5		6.68			4,381.8			71.4		6.47
Construction			1,040.7			20.3		7.74			984.8			18.5		7.57			873.7			15.5		7.05
Residential:
Residential mortgage			4,204.5			40.4		3.84			4,229.4			40.1		3.80			4,316.3			40.1		3.72
Home equity line			1,158.5			13.2		4.52			1,164.2			12.6		4.35			1,154.0			10.1		3.45
Consumer			1,035.3			18.7		7.19			1,054.1			17.7		6.74			1,172.8			18.3		6.19
Lease financing			422.2			4.0		3.72			418.3			4.3		4.09			327.3			3.7		4.48
Total Loans and Leases			14,304.8			206.2		5.74			14,358.0			202.8		5.67			14,349.4			194.8		5.39
Other Earning Assets			46.9			0.7		5.83			52.0			0.7		5.25			116.8			0.8		2.64
Total Earning Assets(2)			21,328.9			251.1		4.69			21,247.7			246.5		4.66			22,060.5			241.3		4.35
Cash and Due from Banks			242.3								240.4								276.0
Other Assets			2,475.5								2,470.8								2,391.4
Total Assets		$	24,046.7							$	23,958.9							$	24,727.9
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings		$	5,963.1		$	23.6		1.57	%	$	6,000.4		$	23.4		1.57	%	$	5,982.5		$	19.2		1.27	%
Money Market			4,179.5			31.9		3.04			4,076.7			30.6		3.02			3,907.2			24.7		2.51
Time			3,327.3			32.0		3.83			3,284.3			31.6		3.87			3,362.7			30.8		3.63
Total Interest-Bearing Deposits			13,469.9			87.5		2.58			13,361.4			85.6		2.58			13,252.4			74.7		2.23
Other Short-Term Borrowings			451.1			5.4		4.76			500.0			6.0		4.79			113.1			1.5		5.17
Long-Term Borrowings			—			—		—			—			—		—			440.2			5.3		4.83
Other Interest-Bearing Liabilities			22.4			0.4		6.97			38.2			0.5		5.48			89.1			1.2		5.17
Total Interest-Bearing Liabilities			13,943.4			93.3		2.66			13,899.6			92.1		2.66			13,894.8			82.7		2.36
Net Interest Income					$	157.8							$	154.4							$	158.6
Interest Rate Spread(3)								2.03	%							2.00	%							1.99	%
Net Interest Margin(4)								2.95	%							2.92	%							2.86	%
Noninterest-Bearing Demand Deposits			6,897.9								6,946.6								7,959.7
Other Liabilities			616.6								600.2								506.0
Stockholders' Equity			2,588.8								2,512.5								2,367.4
Total Liabilities and Stockholders' Equity		$	24,046.7							$	23,958.9							$	24,727.9

(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 $1.1 million, $1.5 million and $1.5 million for the three months ended September 30, 2024, June 30, 2024 and September 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 September 30, 2024, June 30, 2024 and September 30, 2023, on a fully taxable-equivalent basis, divided by average total earning assets.

Average Balances and Interest Rates																Table 5
		Nine Months Ended								Nine Months Ended
		September 30, 2024								September 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		$	884.6		$	35.9		5.43	%	$	493.6		$	18.8		5.10	%
Available-for-Sale Investment Securities
Taxable			2,124.4			41.5		2.61			2,964.0			54.8		2.47
Non-Taxable			1.6			0.1		5.49			13.0			0.5		5.57
Held-to-Maturity Investment Securities
Taxable			3,354.0			42.7		1.70			3,615.0			46.0		1.70
Non-Taxable			602.9			11.7		2.58			608.9			11.9		2.62
Total Investment Securities			6,082.9			96.0		2.10			7,200.9			113.2		2.10
Loans Held for Sale			1.3			0.1		6.11			0.3			—		6.11
Loans and Leases(1)
Commercial and industrial			2,177.2			113.3		6.95			2,193.8			104.3		6.35
Commercial real estate			4,302.4			213.4		6.62			4,224.7			194.6		6.16
Construction			983.6			56.2		7.63			874.0			45.4		6.95
Residential:
Residential mortgage			4,232.6			122.5		3.86			4,312.4			117.6		3.64
Home equity line			1,164.9			37.8		4.34			1,116.4			27.9		3.35
Consumer			1,057.6			54.4		6.87			1,194.1			53.2		5.95
Lease financing			406.8			11.9		3.90			322.9			10.5		4.34
Total Loans and Leases			14,325.1			609.5		5.68			14,238.3			553.5		5.19
Other Earning Assets			58.8			2.5		5.69			107.6			1.3		1.53
Total Earning Assets(2)			21,352.7			744.0		4.65			22,040.7			686.8		4.16
Cash and Due from Banks			242.4								273.3
Other Assets			2,469.1								2,385.8
Total Assets		$	24,064.2							$	24,699.8
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings		$	6,007.6		$	70.5		1.57	%	$	6,144.1		$	49.1		1.07	%
Money Market			4,067.5			91.3		3.00			3,857.0			58.6		2.03
Time			3,312.3			95.5		3.85			2,921.8			68.3		3.12
Total Interest-Bearing Deposits			13,387.4			257.3		2.57			12,922.9			176.0		1.82
Federal Funds Purchased			—			—		—			23.0			0.8		4.45
Other Short-Term Borrowings			483.6			17.3		4.78			176.5			6.8		5.15
Long-Term Borrowings			—			—		—			349.8			12.5		4.78
Other Interest-Bearing Liabilities			31.1			1.3		5.75			62.1			2.1		4.63
Total Interest-Bearing Liabilities			13,902.1			275.9		2.65			13,534.3			198.2		1.96
Net Interest Income					$	468.1							$	488.6
Interest Rate Spread(3)								2.00	%							2.20	%
Net Interest Margin(4)								2.93	%							2.96	%
Noninterest-Bearing Demand Deposits			7,028.4								8,322.2
Other Liabilities			600.8								506.0
Stockholders' Equity			2,532.9								2,337.3
Total Liabilities and Stockholders' Equity		$	24,064.2							$	24,699.8

(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 $4.1 million and $4.2 million for the nine months ended September 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 nine months ended September 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 September 30, 2024
		Compared to June 30, 2024
(dollars in millions)		Volume				Rate				Total (1)
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	3.5			$	(0.1	)		$	3.4
Available-for-Sale Investment Securities
Taxable			(0.2	)			(1.1	)			(1.3	)
Held-to-Maturity Investment Securities
Taxable			(0.3	)			(0.3	)			(0.6	)
Non-Taxable			—				(0.3	)			(0.3	)
Total Investment Securities			(0.5	)			(1.7	)			(2.2	)
Loans and Leases
Commercial and industrial			(0.3	)			0.2				(0.1	)
Commercial real estate			—				0.1				0.1
Construction			1.3				0.5				1.8
Residential:
Residential mortgage			(0.2	)			0.5				0.3
Home equity line			—				0.6				0.6
Consumer			(0.3	)			1.3				1.0
Lease financing			—				(0.3	)			(0.3	)
Total Loans and Leases			0.5				2.9				3.4
Other Earning Assets			(0.1	)			0.1				—
Total Change in Interest Income			3.4				1.2				4.6
Change in Interest Expense:
Interest-Bearing Deposits
Savings			—				0.2				0.2
Money Market			1.0				0.3				1.3
Time			0.6				(0.2	)			0.4
Total Interest-Bearing Deposits			1.6				0.3				1.9
Other Short-Term Borrowings			(0.5	)			(0.1	)			(0.6	)
Other Interest-Bearing Liabilities			(0.2	)			0.1				(0.1	)
Total Change in Interest Expense			0.9				0.3				1.2
Change in Net Interest Income		$	2.5			$	0.9			$	3.4

(1)   The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

Analysis of Change in Net Interest Income											Table 7
		Three Months Ended September 30, 2024
		Compared to September 30, 2023
(dollars in millions)		Volume				Rate				Total (1)
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	5.6			$	0.1			$	5.7
Available-for-Sale Investment Securities
Taxable			(4.8	)			(0.8	)			(5.6	)
Held-to-Maturity Investment Securities
Taxable			(1.0	)			(0.2	)			(1.2	)
Non-Taxable			—				(0.4	)			(0.4	)
Total Investment Securities			(5.8	)			(1.4	)			(7.2	)
Loans and Leases
Commercial and industrial			0.7				1.6				2.3
Commercial real estate			(1.8	)			2.0				0.2
Construction			3.2				1.6				4.8
Residential:
Residential mortgage			(1.0	)			1.3				0.3
Home equity line			—				3.1				3.1
Consumer			(2.3	)			2.7				0.4
Lease financing			0.9				(0.6	)			0.3
Total Loans and Leases			(0.3	)			11.7				11.4
Other Earning Assets			(0.7	)			0.6				(0.1	)
Total Change in Interest Income			(1.2	)			11.0				9.8
Change in Interest Expense:
Interest-Bearing Deposits
Savings			(0.1	)			4.5				4.4
Money Market			1.8				5.4				7.2
Time			(0.3	)			1.5				1.2
Total Interest-Bearing Deposits			1.4				11.4				12.8
Other Short-Term Borrowings			4.0				(0.1	)			3.9
Long-Term Borrowings			(2.6	)			(2.7	)			(5.3	)
Other Interest-Bearing Liabilities			(1.1	)			0.3				(0.8	)
Total Change in Interest Expense			1.7				8.9				10.6
Change in Net Interest Income		$	(2.9	)		$	2.1			$	(0.8	)

(1)   The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

Analysis of Change in Net Interest Income											Table 8
		Nine Months Ended September 30, 2024
		Compared to September 30, 2023
(dollars in millions)		Volume				Rate				Total (1)
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	15.8			$	1.3			$	17.1
Available-for-Sale Investment Securities
Taxable			(16.3	)			3.0				(13.3	)
Non-Taxable			(0.4	)			—				(0.4	)
Held-to-Maturity Investment Securities
Taxable			(3.3	)			—				(3.3	)
Non-Taxable			(0.1	)			(0.1	)			(0.2	)
Total Investment Securities			(20.1	)			2.9				(17.2	)
Loans Held for Sale			0.1				—				0.1
Loans and Leases
Commercial and industrial			(0.8	)			9.8				9.0
Commercial real estate			3.7				15.1				18.8
Construction			6.1				4.7				10.8
Residential:
Residential mortgage			(2.2	)			7.1				4.9
Home equity line			1.3				8.6				9.9
Consumer			(6.5	)			7.7				1.2
Lease financing			2.5				(1.1	)			1.4
Total Loans and Leases			4.1				51.9				56.0
Other Earning Assets			(0.8	)			2.0				1.2
Total Change in Interest Income			(0.9	)			58.1				57.2
Change in Interest Expense:
Interest-Bearing Deposits
Savings			(1.1	)			22.5				21.4
Money Market			3.4				29.3				32.7
Time			9.9				17.3				27.2
Total Interest-Bearing Deposits			12.2				69.1				81.3
Federal Funds Purchased			(0.4	)			(0.4	)			(0.8	)
Other Short-Term Borrowings			11.0				(0.5	)			10.5
Long-Term Borrowings			(6.3	)			(6.2	)			(12.5	)
Other Interest-Bearing Liabilities			(1.2	)			0.4				(0.8	)
Total Change in Interest Expense			15.3				62.4				77.7
Change in Net Interest Income		$	(16.2	)		$	(4.3	)		$	(20.5	)

(1)   The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

Loans and Leases												Table 9
		September 30,			June 30,			December 31,			September 30,
(dollars in thousands)		2024			2024			2023			2023
Commercial and industrial		$	2,110,077		$	2,208,690		$	2,165,349		$	2,101,442
Commercial real estate			4,265,289			4,305,017			4,340,243			4,387,751
Construction			1,056,249			1,017,649			900,292			885,112
Residential:
Residential mortgage			4,187,060			4,216,416			4,283,315			4,303,924
Home equity line			1,159,823			1,159,833			1,174,588			1,167,388
Total residential			5,346,883			5,376,249			5,457,903			5,471,312
Consumer			1,030,044			1,027,104			1,109,901			1,154,203
Lease financing			432,828			425,190			379,809			332,515
Total loans and leases		$	14,241,370		$	14,359,899		$	14,353,497		$	14,332,335

Deposits												Table 10
		September 30,			June 30,			December 31,			September 30,
(dollars in thousands)		2024			2024			2023			2023
Demand		$	6,800,028		$	6,857,467		$	7,583,562		$	7,898,996
Savings			5,896,029			6,055,051			6,445,084			6,028,308
Money Market			4,129,381			4,111,609			3,847,853			3,923,054
Time			3,402,264			3,294,705			3,456,158			3,661,131
Total Deposits		$	20,227,702		$	20,318,832		$	21,332,657		$	21,511,489

Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More												Table 11
		September 30,			June 30,			December 31,			September 30,
(dollars in thousands)		2024			2024			2023			2023
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial		$	934		$	1,084		$	970		$	988
Commercial real estate			152			3,085			2,953			—
Construction			—			447			—			—
Total Commercial Loans			1,086			4,616			3,923			988
Residential Loans:
Residential mortgage			9,103			7,273			7,620			7,435
Home equity line			7,645			6,124			7,052			6,200
Total Residential Loans			16,748			13,397			14,672			13,635
Total Non-Accrual Loans and Leases			17,834			18,013			18,595			14,623
Total Non-Performing Assets		$	17,834		$	18,013		$	18,595		$	14,623
Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial		$	529		$	110		$	494		$	289
Commercial real estate			568			—			300			170
Total Commercial Loans			1,097			110			794			459
Residential mortgage			931			1,820			—			1,430
Consumer			2,515			1,835			2,702			1,681
Total Accruing Loans and Leases Past Due 90 Days or More		$	4,543		$	3,765		$	3,496		$	3,570
Total Loans and Leases		$	14,241,370		$	14,359,899		$	14,353,497		$	14,332,335

Allowance for Credit Losses and Reserve for Unfunded Commitments																			Table 12
		For the Three Months Ended												For the Nine Months Ended
		September 30,				June 30,				September 30,				September 30,				September 30,
(dollars in thousands)		2024				2024				2023				2024				2023
Balance at Beginning of Period		$	193,930			$	194,649			$	184,780			$	192,138			$	177,735
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial			(1,178	)			(677	)			(784	)			(2,764	)			(2,572	)
Commercial real estate			(400	)			—				—				(400	)			—
Total Commercial Loans			(1,578	)			(677	)			(784	)			(3,164	)			(2,572	)
Residential Loans:
Residential mortgage			—				—				—				—				(122	)
Home equity line			—				—				—				—				(272	)
Total Residential Loans			—				—				—				—				(394	)
Consumer			(4,192	)			(4,182	)			(3,665	)			(13,228	)			(12,963	)
Total Loans and Leases Charged-Off			(5,770	)			(4,859	)			(4,449	)			(16,392	)			(15,929	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial and industrial			160				250				2,637				621				3,175
Residential Loans:
Residential mortgage			31				28				53				89				110
Home equity line			86				112				303				242				539
Total Residential Loans			117				140				356				331				649
Consumer			1,560				1,950				1,746				5,199				5,640
Total Recoveries on Loans and Leases Previously Charged-Off			1,837				2,340				4,739				6,151				9,464
Net Loans and Leases (Charged-Off) Recovered			(3,933	)			(2,519	)			290				(10,241	)			(6,465	)
Provision for Credit Losses			7,400				1,800				7,500				15,500				21,300
Balance at End of Period		$	197,397			$	193,930			$	192,570			$	197,397			$	192,570
Components:
Allowance for Credit Losses		$	163,700			$	160,517			$	154,795			$	163,700			$	154,795
Reserve for Unfunded Commitments			33,697				33,413				37,775				33,697				37,775
Total Allowance for Credit Losses and Reserve for Unfunded Commitments		$	197,397			$	193,930			$	192,570			$	197,397			$	192,570
Average Loans and Leases Outstanding		$	14,304,806			$	14,358,049			$	14,349,402			$	14,325,065			$	14,238,309
Ratio of Net Loans and Leases Charged-Off (Recovered) to Average Loans and Leases Outstanding(1)			0.11		%		0.07		%		(0.01	)	%		0.10		%		0.06		%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding			1.15		%		1.12		%		1.08		%		1.15		%		1.08		%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases			9.18x				8.91x				10.59x				9.18x				10.59x

(1)   Annualized for the three and nine months ended September 30, 2024 and 2023 and three months ended June 30, 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		$	100,174		$	82,175		$	191,861		$	256,997		$	20,866		$	266,720		$	1,026,457		$	13,396		$	1,958,646
Special Mention			303			1			7,327			48			398			1,371			18,239			—			27,687
Substandard			—			—			8,251			219			358			2,033			32,296			—			43,157
Other (1)			10,797			10,542			7,779			3,074			1,052			1,723			45,620			—			80,587
Total Commercial and Industrial			111,274			92,718			215,218			260,338			22,674			271,847			1,122,612			13,396			2,110,077
Current period gross charge-offs			—			578			333			89			221			1,543			—			—			2,764
Commercial Real Estate
Risk rating:
Pass			118,884			347,480			810,746			649,133			325,887			1,774,529			87,188			7,760			4,121,607
Special Mention			3,587			2,261			7,537			41,384			3,306			11,973			7,815			—			77,863
Substandard			—			—			54,984			1,003			—			9,548			149			—			65,684
Other (1)			—			—			—			—			—			135			—			—			135
Total Commercial Real Estate			122,471			349,741			873,267			691,520			329,193			1,796,185			95,152			7,760			4,265,289
Current period gross charge-offs			—			—			—			—			—			400			—			—			400
Construction
Risk rating:
Pass			61,677			246,176			361,974			241,212			58,820			46,344			4,484			—			1,020,687
Special Mention			—			—			—			—			—			164			—			—			164
Other (1)			4,970			9,468			12,022			3,575			1,199			3,463			701			—			35,398
Total Construction			66,647			255,644			373,996			244,787			60,019			49,971			5,185			—			1,056,249
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Lease Financing
Risk rating:
Pass			126,380			105,523			66,764			15,483			23,133			89,254			—			—			426,537
Special Mention			—			42			100			300			5			—			—			—			447
Substandard			4,899			602			343			—			—			—			—			—			5,844
Total Lease Financing			131,279			106,167			67,207			15,783			23,138			89,254			—			—			432,828
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Total Commercial Lending		$	431,671		$	804,270		$	1,529,688		$	1,212,428		$	435,024		$	2,207,257		$	1,222,949		$	21,156		$	7,864,443
Current period gross charge-offs		$	—		$	578		$	333		$	89		$	221		$	1,943		$	—		$	—		$	3,164

																							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		$	113,307		$	206,224		$	504,141		$	956,983		$	503,160		$	1,129,857		$	—		$	—		$	3,413,672
680 - 739			11,614			28,638			65,128			109,018			66,719			157,263			—			—			438,380
620 - 679			1,519			1,792			22,921			19,854			11,651			37,979			—			—			95,716
550 - 619			—			896			3,703			6,707			2,269			15,751			—			—			29,326
Less than 550			—			286			2,380			3,818			2,959			5,569			—			—			15,012
No Score (3)			543			7,117			16,923			10,512			5,553			52,526			—			—			93,174
Other (2)			8,148			12,786			16,721			14,776			11,222			30,022			8,105			—			101,780
Total Residential Mortgage			135,131			257,739			631,917			1,121,668			603,533			1,428,967			8,105			—			4,187,060
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Home Equity Line
FICO:
740 and greater			—			—			—			—			—			—			930,909			1,730			932,639
680 - 739			—			—			—			—			—			—			167,097			1,137			168,234
620 - 679			—			—			—			—			—			—			36,540			985			37,525
550 - 619			—			—			—			—			—			—			14,514			581			15,095
Less than 550			—			—			—			—			—			—			4,477			571			5,048
No Score (3)			—			—			—			—			—			—			1,282			—			1,282
Total Home Equity Line			—			—			—			—			—			—			1,154,819			5,004			1,159,823
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Total Residential Lending		$	135,131		$	257,739		$	631,917		$	1,121,668		$	603,533		$	1,428,967		$	1,162,924		$	5,004		$	5,346,883
Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Consumer Lending
FICO:
740 and greater			71,777			71,423			94,710			51,952			18,512			10,435			121,278			128			440,215
680 - 739			51,651			51,667			49,864			23,959			9,995			7,497			77,278			525			272,436
620 - 679			21,223			20,604			21,700			12,515			5,155			5,577			35,665			851			123,290
550 - 619			4,116			7,348			9,802			5,983			2,862			3,862			12,674			825			47,472
Less than 550			1,071			3,266			6,247			3,999			1,783			2,492			4,836			525			24,219
No Score (3)			2,291			117			47			—			7			8			42,658			205			45,333
Other (2)			—			—			296			911			101			981			74,790			—			77,079
Total Consumer Lending		$	152,129		$	154,425		$	182,666		$	99,319		$	38,415		$	30,852		$	369,179		$	3,059		$	1,030,044
Current period gross charge-offs		$	385		$	1,403		$	2,107		$	1,085		$	518		$	2,234		$	4,952		$	544		$	13,228
Total Loans and Leases		$	718,931		$	1,216,434		$	2,344,271		$	2,433,415		$	1,076,972		$	3,667,076		$	2,755,052		$	29,219		$	14,241,370
Current period gross charge-offs		$	385		$	1,981		$	2,440		$	1,174		$	739		$	4,177		$	4,952		$	544		$	16,392

(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. As of September 30, 2024, the majority of the loans in this population were current.

(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. As of September 30, 2024, the majority of the loans in this population were current.

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

GAAP to Non-GAAP Reconciliation		Table 14
		For the Three Months Ended									For the Nine Months Ended
		September 30,			June 30,			September 30,			September 30,
(dollars in thousands)		2024			2024			2023			2024			2023
Income Statement Data:
Net income		$	61,492		$	61,921		$	58,221		$	177,633		$	187,481
Average total stockholders' equity		$	2,588,806		$	2,512,471		$	2,367,422		$	2,532,911		$	2,337,292
Less: average goodwill			995,492			995,492			995,492			995,492			995,492
Average tangible stockholders' equity		$	1,593,314		$	1,516,979		$	1,371,930		$	1,537,419		$	1,341,800
Average total assets		$	24,046,696		$	23,958,913		$	24,727,893		$	24,064,208		$	24,699,826
Less: average goodwill			995,492			995,492			995,492			995,492			995,492
Average tangible assets		$	23,051,204		$	22,963,421		$	23,732,401		$	23,068,716		$	23,704,334
Return on average total stockholders' equity(1)			9.45	%		9.91	%		9.76	%		9.37	%		10.72	%
Return on average tangible stockholders' equity (non-GAAP)(1)			15.35	%		16.42	%		16.84	%		15.43	%		18.68	%
Return on average total assets(1)			1.02	%		1.04	%		0.93	%		0.99	%		1.01	%
Return on average tangible assets (non-GAAP)(1)			1.06	%		1.08	%		0.97	%		1.03	%		1.06	%

		As of			As of			As of			As of
		September 30,			June 30,			December 31,			September 30,
(dollars in thousands, except per share amounts)		2024			2024			2023			2023
Balance Sheet Data:
Total stockholders' equity		$	2,648,034		$	2,550,312		$	2,486,066		$	2,351,009
Less: goodwill			995,492			995,492			995,492			995,492
Tangible stockholders' equity		$	1,652,542		$	1,554,820		$	1,490,574		$	1,355,517
Total assets		$	23,780,285		$	23,991,791		$	24,926,474		$	24,912,524
Less: goodwill			995,492			995,492			995,492			995,492
Tangible assets		$	22,784,793		$	22,996,299		$	23,930,982		$	23,917,032
Shares outstanding			127,886,167			127,879,012			127,618,761			127,609,934
Total stockholders' equity to total assets			11.14	%		10.63	%		9.97	%		9.44	%
Tangible stockholders' equity to tangible assets (non-GAAP)			7.25	%		6.76	%		6.23	%		5.67	%
Book value per share		$	20.71		$	19.94		$	19.48		$	18.42
Tangible book value per share (non-GAAP)		$	12.92		$	12.16		$	11.68		$	10.62

(1)   Annualized for the three and nine months ended September 30, 2024 and 2023 and three months ended June 30, 2024.