First Hawaiian, Inc. Reports Second Quarter 2024 Financial Results and Declares Dividend

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 [email protected]	Media Contact: Lindsay Chambers (808) 525-6254 [email protected]

Financial Highlights		Table 1
		For the Three Months Ended									For the Six Months Ended
		June 30,			March 31,			June 30,			June 30,
(dollars in thousands, except per share data)		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.