First Hawaiian, Inc. Reports Second Quarter 2025 Financial Results and Declares Dividend

HONOLULU, July 25, 2025 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), ("First Hawaiian" or the "Company") today reported financial results for its quarter ended June 30, 2025.

"I'm happy to report that First Hawaiian Bank had an outstanding second quarter, and posted net income of $73.2 million, a 23.6% increase over the first quarter," said Bob Harrison, Chairman, President, and CEO. "Our results were driven by strong revenues, well controlled expenses and continued excellent credit quality."

On July 23, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on August 29, 2025, to stockholders of record at the close of business on August 18, 2025.

Second Quarter 2025 Highlights:

• Net income of $73.2 million, or $0.58 per diluted share
• Total loans and leases increased $58.8 million versus prior quarter
• Total deposits increased $15.6 million versus prior quarter
• Net interest margin increased 3 basis points to 3.11%
• Recorded a $4.5 million provision for credit losses
• Provision for income taxes included a net benefit of $5.1 million due a recent change in the California tax code
• Board of Directors declared a quarterly dividend of $0.26 per share
  
  

Balance Sheet

Total assets were $23.8 billion at June 30, 2025 versus $23.7 billion at March 31, 2025.

Gross loans and leases were $14.4 billion as of June 30, 2025, an increase of $58.8 million, or 0.4%, from $14.3 billion as of March 31, 2025.

Total deposits were $20.2 billion as of June 30, 2025, an increase of $15.6 million from March 31, 2025.

Net Interest Income

Net interest income for the second quarter of 2025 was $163.6 million, an increase of $3.1 million, or 1.9%, compared to $160.5 million for the prior quarter.

The net interest margin was 3.11% in the second quarter of 2025, an increase of 3 basis points compared to 3.08% in the prior quarter.

Provision Expense

During the quarter ended June 30, 2025, we recorded a $4.5 million provision for credit losses. In the quarter ended March 31, 2025, we recorded a $10.5 million provision for credit losses.

Noninterest Income

Noninterest income was $54.0 million in the second quarter of 2025, an increase of $3.5 million compared to noninterest income of $50.5 million in the prior quarter.

Noninterest Expense

Noninterest expense was $124.9 million in the second quarter of 2025, an increase of $1.4 million compared to noninterest expense of $123.6 million in the prior quarter.

The efficiency ratio was 57.2% and 58.2% for the quarters ended June 30, 2025 and March 31, 2025, respectively.

Taxes

The effective tax rate was 16.9% and 23.0% for the quarters ended June 30, 2025 and March 31, 2025, respectively. The decrease in the effective tax rate was primarily due to the remeasurement of the California deferred tax assets as of the beginning of the year, reflecting the enactment of a recent change in the California tax code.

Asset Quality

The allowance for credit losses was $167.8 million, or 1.17% of total loans and leases, as of June 30, 2025, compared to $166.6 million, or 1.17% of total loans and leases, as of March 31, 2025. The reserve for unfunded commitments was $33.3 million as of June 30, 2025 and March 31, 2025. Net charge-offs were $3.3 million, or 0.09% of average loans and leases on an annualized basis, for the quarter ended June 30, 2025, 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, 2025. Total non-performing assets were $28.6 million, or 0.20% of total loans and leases and other real estate owned, on June 30, 2025, compared to total non-performing assets of $20.2 million, or 0.14% of total loans and leases and other real estate owned, on March 31, 2025.

Capital

Total stockholders' equity was $2.7 billion on June 30, 2025 versus $2.6 billion on March 31, 2025.

The tier 1 leverage, common equity tier 1 and total capital ratios were 9.12%, 13.03% and 14.28%, respectively, on June 30, 2025, compared with 9.01%, 12.93% and 14.17%, respectively, on March 31, 2025.

The Company repurchased 1.04 million shares of common stock at a total cost of $25.0 million under the stock repurchase program in the second quarter. The average cost was $23.99 per share repurchased.

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-conf.media-server.com/register/BI3617237efe0943198ba8998c36c623cc, 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, 2024 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

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)		2025				2025				2024				2025				2024
Operating Results:
Net interest income		$	163,583			$	160,526			$	152,851			$	324,109			$	307,278
Provision for credit losses			4,500				10,500				1,800				15,000				8,100
Noninterest income			53,958				50,477				51,768				104,435				103,139
Noninterest expense			124,939				123,560				122,086				248,499				250,899
Net income			73,247				59,248				61,921				132,495				116,141
Basic earnings per share			0.58				0.47				0.48				1.05				0.91
Diluted earnings per share			0.58				0.47				0.48				1.05				0.91
Dividends declared per share			0.26				0.26				0.26				0.52				0.52
Dividend payout ratio			44.83	%			55.32	%			54.17	%			49.52	%			57.14	%
Performance Ratios(1):
Net interest margin			3.11	%			3.08	%			2.92	%			3.10	%			2.91	%
Efficiency ratio			57.23	%			58.22	%			59.22	%			57.71	%			60.69	%
Return on average total assets			1.23	%			1.01	%			1.04	%			1.12	%			0.97	%
Return on average tangible assets (non-GAAP)(2)			1.28	%			1.05	%			1.08	%			1.17	%			1.01	%
Return on average total stockholders' equity			11.03	%			9.09	%			9.91	%			10.07	%			9.32	%
Return on average tangible stockholders' equity (non-GAAP)(2)			17.61	%			14.59	%			16.42	%			16.12	%			15.48	%
Average Balances:
Average loans and leases		$	14,288,918			$	14,309,998			$	14,358,049			$	14,299,400			$	14,335,306
Average earning assets			21,167,588				21,169,194				21,247,707				21,168,386				21,364,799
Average assets			23,859,410				23,890,459				23,958,913				23,874,849				24,073,060
Average deposits			20,280,042				20,354,040				20,308,028				20,316,836				20,439,979
Average stockholders' equity			2,663,850				2,641,978				2,512,471				2,652,975				2,504,656
Market Value Per Share:
Closing			24.96				24.44				20.76				24.96				20.76
High			25.09				28.28				22.68				28.28				23.12
Low			20.32				23.95				19.48				20.32				19.48

			As of				As of				As of				As of
			June 30,				March 31,				December 31,				June 30,
(dollars in thousands, except per share data)			2025				2025				2024				2024
Balance Sheet Data:
Loans and leases			$	14,351,869			$	14,293,036			$	14,408,258			$	14,359,899
Total assets				23,837,147				23,744,958				23,828,186				23,991,791
Total deposits				20,231,419				20,215,816				20,322,216				20,318,832
Short-term borrowings				250,000				250,000				250,000				500,000
Total stockholders' equity				2,694,545				2,648,852				2,617,486				2,550,312
Per Share of Common Stock:
Book value			$	21.61			$	21.07			$	20.70			$	19.94
Tangible book value (non-GAAP)(2)				13.63				13.15				12.83				12.16
Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases				0.20	%			0.14	%			0.14	%			0.13	%
Allowance for credit losses for loans and leases / total loans and leases				1.17	%			1.17	%			1.11	%			1.12	%
Capital Ratios:
Common Equity Tier 1 Capital Ratio				13.03	%			12.93	%			12.80	%			12.73	%
Tier 1 Capital Ratio				13.03	%			12.93	%			12.80	%			12.73	%
Total Capital Ratio				14.28	%			14.17	%			13.99	%			13.92	%
Tier 1 Leverage Ratio				9.12	%			9.01	%			9.14	%			9.03	%
Total stockholders' equity to total assets				11.30	%			11.16	%			10.98	%			10.63	%
Tangible stockholders' equity to tangible assets (non-GAAP)(2)				7.44	%			7.27	%			7.10	%			6.76	%
Non-Financial Data:
Number of branches				48				48				48				48
Number of ATMs				274				273				273				272
Number of Full-Time Equivalent Employees				2,006				1,995				1,997				2,032

(1)	Except for the efficiency ratio, amounts are annualized for the three and six months ended June 30, 2025 and 2024 and three months ended March 31, 2025.
(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)		2025			2025			2024			2025			2024
Interest income
Loans and lease financing		$	193,393		$	192,102		$	202,068		$	385,495		$	401,912
Available-for-sale investment securities			12,469			13,150			14,143			25,619			28,689
Held-to-maturity investment securities			16,299			16,647			17,575			32,946			35,368
Other			14,578			13,251			11,148			27,829			23,917
Total interest income			236,739			235,150			244,934			471,889			489,886
Interest expense
Deposits			70,289			71,709			85,609			141,998			169,752
Short-term borrowings			2,627			2,599			5,953			5,226			11,906
Other			240			316			521			556			950
Total interest expense			73,156			74,624			92,083			147,780			182,608
Net interest income			163,583			160,526			152,851			324,109			307,278
Provision for credit losses			4,500			10,500			1,800			15,000			8,100
Net interest income after provision for credit losses			159,083			150,026			151,051			309,109			299,178
Noninterest income
Service charges on deposit accounts			7,830			7,535			7,793			15,365			15,339
Credit and debit card fees			15,913			14,474			15,861			30,387			32,034
Other service charges and fees			13,350			12,167			11,036			25,517			20,940
Trust and investment services income			9,154			9,370			9,426			18,524			19,780
Bank-owned life insurance			4,724			4,371			3,360			9,095			7,646
Investment securities gains, net			—			37			—			37			—
Other			2,987			2,523			4,292			5,510			7,400
Total noninterest income			53,958			50,477			51,768			104,435			103,139
Noninterest expense
Salaries and employee benefits			59,501			60,104			57,737			119,605			116,999
Contracted services and professional fees			15,997			14,839			16,067			30,836			31,806
Occupancy			7,934			8,100			7,377			16,034			14,318
Equipment			14,037			13,871			13,196			27,908			26,609
Regulatory assessment and fees			3,759			3,823			3,814			7,582			11,934
Advertising and marketing			2,035			2,179			1,765			4,214			4,377
Card rewards program			8,406			7,919			8,719			16,325			17,227
Other			13,270			12,725			13,411			25,995			27,629
Total noninterest expense			124,939			123,560			122,086			248,499			250,899
Income before provision for income taxes			88,102			76,943			80,733			165,045			151,418
Provision for income taxes			14,855			17,695			18,812			32,550			35,277
Net income		$	73,247		$	59,248		$	61,921		$	132,495		$	116,141
Basic earnings per share		$	0.58		$	0.47		$	0.48		$	1.05		$	0.91
Diluted earnings per share		$	0.58		$	0.47		$	0.48		$	1.05		$	0.91
Basic weighted-average outstanding shares			125,321,837			126,281,802			127,867,853			125,799,060			127,787,663
Diluted weighted-average outstanding shares			125,833,064			127,166,932			128,262,594			126,493,569			128,279,917

Consolidated Balance Sheets		Table 3
		June 30,				March 31,				December 31,				June 30,
(dollars in thousands, except share amount)		2025				2025				2024				2024
Assets
Cash and due from banks		$	304,624			$	240,738			$	258,057			$	290,501
Interest-bearing deposits in other banks			1,094,411				1,073,841				912,133				824,258
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,097,906 as of June 30, 2025, $2,091,034 as of March 31, 2025, $2,190,448 as of December 31, 2024 and $2,379,004 as of June 30, 2024)			1,891,654				1,858,428				1,926,516				2,067,956
Held-to-maturity, at amortized cost (fair value: $3,230,698 as of June 30, 2025, $3,250,275 as of March 31, 2025, $3,262,509 as of December 31, 2024 and $3,401,006 as of June 30, 2024)			3,658,814				3,724,908				3,790,650				3,917,175
Loans held for sale			—				1,547				—				2,820
Loans and leases			14,351,869				14,293,036				14,408,258				14,359,899
Less: allowance for credit losses			167,825				166,612				160,393				160,517
Net loans and leases			14,184,044				14,126,424				14,247,865				14,199,382
Premises and equipment, net			299,149				292,576				288,530				283,762
Accrued interest receivable			77,943				78,973				79,979				82,512
Bank-owned life insurance			502,419				495,567				491,890				486,261
Goodwill			995,492				995,492				995,492				995,492
Mortgage servicing rights			4,828				4,926				5,078				5,395
Other assets			823,769				851,538				831,996				836,277
Total assets		$	23,837,147			$	23,744,958			$	23,828,186			$	23,991,791
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing		$	13,386,987			$	13,330,265			$	13,347,068			$	13,461,365
Noninterest-bearing			6,844,432				6,885,551				6,975,148				6,857,467
Total deposits			20,231,419				20,215,816				20,322,216				20,318,832
Short-term borrowings			250,000				250,000				250,000				500,000
Retirement benefits payable			95,357				96,241				97,135				101,304
Other liabilities			565,826				534,049				541,349				521,343
Total liabilities			21,142,602				21,096,106				21,210,700				21,441,479
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 142,173,027 / 124,683,544 shares as of June 30, 2025, issued/outstanding: 142,139,353 / 125,692,598 shares as of March 31, 2025, issued/outstanding: 141,748,847 / 126,422,898 shares as of December 31, 2024 and issued/outstanding: 141,728,446 / 127,879,012 shares as of June 30, 2024)			1,422				1,421				1,417				1,417
Additional paid-in capital			2,567,936				2,564,408				2,560,380				2,554,795
Retained earnings			1,000,997				960,337				934,048				887,176
Accumulated other comprehensive loss, net			(407,008	)			(433,769	)			(463,994	)			(519,132	)
Treasury stock (17,489,483 shares as of June 30, 2025, 16,446,755 shares as of March 31, 2025, 15,325,949 shares as of December 31, 2024 and 13,849,434 shares as of June 30, 2024)			(468,802	)			(443,545	)			(414,365	)			(373,944	)
Total stockholders' equity			2,694,545				2,648,852				2,617,486				2,550,312
Total liabilities and stockholders' equity		$	23,837,147			$	23,744,958			$	23,828,186			$	23,991,791

Average Balances and Interest Rates																											Table 4
			Three Months Ended									Three Months Ended									Three Months Ended
			June 30, 2025									March 31, 2025									June 30, 2024
			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			$	1,276.8		$	14.1		4.45	%		$	1,171.1		$	12.8		4.44	%		$	773.4		$	10.5		5.45	%
Available-for-Sale Investment Securities
Taxable				1,869.3			12.5		2.67				1,891.4			13.2		2.79				2,100.7			14.1		2.69
Non-Taxable				1.3			—		5.27				1.4			—		5.52				1.5			—		5.76
Held-to-Maturity Investment Securities
Taxable				3,099.9			13.2		1.70				3,164.0			13.6		1.72				3,358.2			14.4		1.71
Non-Taxable				596.5			3.3		2.21				599.0			3.7		2.51				602.9			4.0		2.64
Total Investment Securities				5,567.0			29.0		2.08				5,655.8			30.5		2.16				6,063.3			32.5		2.15
Loans Held for Sale				0.3			—		6.86				0.3			—		6.28				1.0			—		6.58
Loans and Leases(1)
Commercial and industrial				2,291.5			35.2		6.16				2,196.8			33.6		6.20				2,201.6			38.1		6.96
Commercial real estate				4,392.5			66.9		6.11				4,420.1			66.5		6.10				4,305.6			71.5		6.68
Construction				900.4			14.9		6.66				937.0			15.4		6.67				984.8			18.5		7.57
Residential:
Residential mortgage				4,104.1			40.2		3.92				4,150.3			40.9		3.94				4,229.4			40.1		3.80
Home equity line				1,154.4			13.4		4.64				1,149.8			13.1		4.61				1,164.2			12.6		4.35
Consumer				1,013.9			19.2		7.58				1,019.5			18.9		7.53				1,054.1			17.7		6.74
Lease financing				432.1			4.2		3.90				436.5			4.3		3.99				418.3			4.3		4.09
Total Loans and Leases				14,288.9			194.0		5.44				14,310.0			192.7		5.44				14,358.0			202.8		5.67
Other Earning Assets				34.6			0.4		4.94				32.0			0.4		5.48				52.0			0.7		5.25
Total Earning Assets(2)				21,167.6			237.5		4.50				21,169.2			236.4		4.51				21,247.7			246.5		4.66
Cash and Due from Banks				222.3									235.9									240.4
Other Assets				2,469.5									2,485.4									2,470.8
Total Assets			$	23,859.4								$	23,890.5								$	23,958.9
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings			$	6,247.5		$	21.0		1.35	%		$	6,232.5		$	21.3		1.38	%		$	6,000.4		$	23.4		1.57	%
Money Market				3,822.1			22.8		2.39				3,922.2			23.0		2.38				4,076.7			30.6		3.02
Time				3,389.4			26.5		3.14				3,317.1			27.4		3.36				3,284.3			31.6		3.87
Total Interest-Bearing Deposits				13,459.0			70.3		2.09				13,471.8			71.7		2.16				13,361.4			85.6		2.58
Other Short-Term Borrowings				250.0			2.6		4.22				250.0			2.6		4.22				500.0			6.0		4.79
Other Interest-Bearing Liabilities				20.8			0.2		4.62				27.5			0.3		4.67				38.2			0.5		5.48
Total Interest-Bearing Liabilities				13,729.8			73.1		2.14				13,749.3			74.6		2.20				13,899.6			92.1		2.66
Net Interest Income						$	164.4								$	161.8								$	154.4
Interest Rate Spread(3)									2.36	%								2.31	%								2.00	%
Net Interest Margin(4)									3.11	%								3.08	%								2.92	%
Noninterest-Bearing Demand Deposits				6,821.0									6,882.2									6,946.6
Other Liabilities				644.7									617.0									600.2
Stockholders' Equity				2,663.9									2,642.0									2,512.5
Total Liabilities and Stockholders' Equity			$	23,859.4								$	23,890.5								$	23,958.9

(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 $0.8 million, $1.2 million and $1.5 million for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, 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, 2025, March 31, 2025 and June 30, 2024, 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, 2025								June 30, 2024
			Average			Income/			Yield/		Average			Income/			Yield/
(dollars in millions)			Balance			Expense			Rate		Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks			$	1,224.3		$	27.0		4.44	%	$	815.9		$	22.1		5.45	%
Available-for-Sale Investment Securities
Taxable				1,880.3			25.6		2.73			2,155.7			28.7		2.66
Non-Taxable				1.3			—		5.38			1.6			—		5.68
Held-to-Maturity Investment Securities
Taxable				3,131.8			26.8		1.71			3,387.3			29.0		1.71
Non-Taxable				597.7			7.0		2.36			603.2			7.9		2.65
Total Investment Securities				5,611.1			59.4		2.12			6,147.8			65.6		2.14
Loans Held for Sale				0.3			—		6.54			0.9			—		6.72
Loans and Leases(1)
Commercial and industrial				2,244.4			68.8		6.18			2,183.3			75.3		6.94
Commercial real estate				4,406.3			133.3		6.10			4,314.6			141.7		6.60
Construction				918.6			30.4		6.67			954.8			35.9		7.56
Residential:
Residential mortgage				4,127.1			81.2		3.93			4,246.7			82.1		3.87
Home equity line				1,152.1			26.4		4.62			1,168.1			24.7		4.24
Consumer				1,016.6			38.1		7.56			1,068.8			35.7		6.72
Lease financing				434.3			8.5		3.95			399.0			8.0		4.00
Total Loans and Leases				14,299.4			386.7		5.44			14,335.3			403.4		5.65
Other Earning Assets				33.3			0.8		5.20			64.9			1.8		5.64
Total Earning Assets(2)				21,168.4			473.9		4.50			21,364.8			492.9		4.63
Cash and Due from Banks				229.0								242.4
Other Assets				2,477.4								2,465.9
Total Assets			$	23,874.8							$	24,073.1
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings			$	6,240.1		$	42.2		1.36	%	$	6,030.1		$	46.9		1.56	%
Money Market				3,871.8			45.8		2.38			4,010.8			59.4		2.98
Time				3,353.5			54.0		3.25			3,304.8			63.5		3.86
Total Interest-Bearing Deposits				13,465.4			142.0		2.13			13,345.7			169.8		2.56
Other Short-Term Borrowings				250.0			5.2		4.22			500.0			11.9		4.79
Other Interest-Bearing Liabilities				24.1			0.6		4.65			35.6			0.9		5.36
Total Interest-Bearing Liabilities				13,739.5			147.8		2.17			13,881.3			182.6		2.65
Net Interest Income						$	326.1							$	310.3
Interest Rate Spread(3)									2.33	%							1.98	%
Net Interest Margin(4)									3.10	%							2.91	%
Noninterest-Bearing Demand Deposits				6,851.4								7,094.3
Other Liabilities				630.9								592.8
Stockholders' Equity				2,653.0								2,504.7
Total Liabilities and Stockholders' Equity			$	23,874.8							$	24,073.1

(1)	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
(2)	Interest income includes taxable-equivalent basis adjustments of $2.0 million and $3.0 million for the six months ended June 30, 2025 and 2024, 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, 2025 and 2024, 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, 2025
			Compared to March 31, 2025
(dollars in millions)			Volume				Rate				Total (1)
Change in Interest Income:
Interest-Bearing Deposits in Other Banks			$	1.3			$	—			$	1.3
Available-for-Sale Investment Securities
Taxable				(0.1	)			(0.6	)			(0.7	)
Held-to-Maturity Investment Securities
Taxable				(0.2	)			(0.2	)			(0.4	)
Non-Taxable				—				(0.4	)			(0.4	)
Total Investment Securities				(0.3	)			(1.2	)			(1.5	)
Loans and Leases
Commercial and industrial				1.8				(0.2	)			1.6
Commercial real estate				0.1				0.3				0.4
Construction				(0.5	)			—				(0.5	)
Residential:
Residential mortgage				(0.5	)			(0.2	)			(0.7	)
Home equity line				0.1				0.2				0.3
Consumer				—				0.3				0.3
Lease financing				—				(0.1	)			(0.1	)
Total Loans and Leases				1.0				0.3				1.3
Total Change in Interest Income				2.0				(0.9	)			1.1
Change in Interest Expense:
Interest-Bearing Deposits
Savings				0.1				(0.4	)			(0.3	)
Money Market				(0.4	)			0.2				(0.2	)
Time				0.7				(1.6	)			(0.9	)
Total Interest-Bearing Deposits				0.4				(1.8	)			(1.4	)
Other Interest-Bearing Liabilities				(0.1	)			—				(0.1	)
Total Change in Interest Expense				0.3				(1.8	)			(1.5	)
Change in Net Interest Income			$	1.7			$	0.9			$	2.6

(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 June 30, 2025
		Compared to June 30, 2024
(dollars in millions)		Volume				Rate				Total (1)
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	5.8			$	(2.2	)		$	3.6
Available-for-Sale Investment Securities
Taxable			(1.5	)			(0.1	)			(1.6	)
Held-to-Maturity Investment Securities
Taxable			(1.1	)			(0.1	)			(1.2	)
Non-Taxable			(0.1	)			(0.6	)			(0.7	)
Total Investment Securities			(2.7	)			(0.8	)			(3.5	)
Loans and Leases
Commercial and industrial			1.6				(4.5	)			(2.9	)
Commercial real estate			1.5				(6.1	)			(4.6	)
Construction			(1.5	)			(2.1	)			(3.6	)
Residential:
Residential mortgage			(1.2	)			1.3				0.1
Home equity line			(0.1	)			0.9				0.8
Consumer			(0.7	)			2.2				1.5
Lease financing			0.1				(0.2	)			(0.1	)
Total Loans and Leases			(0.3	)			(8.5	)			(8.8	)
Other Earning Assets			(0.2	)			(0.1	)			(0.3	)
Total Change in Interest Income			2.6				(11.6	)			(9.0	)
Change in Interest Expense:
Interest-Bearing Deposits
Savings			1.0				(3.4	)			(2.4	)
Money Market			(1.8	)			(6.0	)			(7.8	)
Time			1.0				(6.1	)			(5.1	)
Total Interest-Bearing Deposits			0.2				(15.5	)			(15.3	)
Other Short-Term Borrowings			(2.8	)			(0.6	)			(3.4	)
Other Interest-Bearing Liabilities			(0.2	)			(0.1	)			(0.3	)
Total Change in Interest Expense			(2.8	)			(16.2	)			(19.0	)
Change in Net Interest Income		$	5.4			$	4.6			$	10.0

(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
		Six Months Ended June 30, 2025
		Compared to June 30, 2024
(dollars in millions)		Volume				Rate				Total (1)
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	9.5			$	(4.6	)		$	4.9
Available-for-Sale Investment Securities
Taxable			(3.8	)			0.7				(3.1	)
Held-to-Maturity Investment Securities
Taxable			(2.2	)			—				(2.2	)
Non-Taxable			(0.1	)			(0.8	)			(0.9	)
Total Investment Securities			(6.1	)			(0.1	)			(6.2	)
Loans and Leases
Commercial and industrial			2.0				(8.5	)			(6.5	)
Commercial real estate			2.8				(11.2	)			(8.4	)
Construction			(1.3	)			(4.2	)			(5.5	)
Residential:
Residential mortgage			(2.2	)			1.3				(0.9	)
Home equity line			(0.3	)			2.0				1.7
Consumer			(1.8	)			4.2				2.4
Lease financing			0.6				(0.1	)			0.5
Total Loans and Leases			(0.2	)			(16.5	)			(16.7	)
Other Earning Assets			(0.8	)			(0.2	)			(1.0	)
Total Change in Interest Income			2.4				(21.4	)			(19.0	)
Change in Interest Expense:
Interest-Bearing Deposits
Savings			1.5				(6.2	)			(4.7	)
Money Market			(2.0	)			(11.6	)			(13.6	)
Time			0.9				(10.4	)			(9.5	)
Total Interest-Bearing Deposits			0.4				(28.2	)			(27.8	)
Other Short-Term Borrowings			(5.4	)			(1.3	)			(6.7	)
Other Interest-Bearing Liabilities			(0.2	)			(0.1	)			(0.3	)
Total Change in Interest Expense			(5.2	)			(29.6	)			(34.8	)
Change in Net Interest Income		$	7.6			$	8.2			$	15.8

_______________________
(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.

   

Loans and Leases												Table 9
		June 30,			March 31,			December 31,			June 30,
(dollars in thousands)		2025			2025			2024			2024
Commercial and industrial		$	2,370,210		$	2,261,394		$	2,247,428		$	2,208,690
Commercial real estate			4,411,585			4,367,433			4,463,992			4,305,017
Construction			884,306			954,072			918,326			1,017,649
Residential:
Residential mortgage			4,085,827			4,129,518			4,168,154			4,216,416
Home equity line			1,161,876			1,144,895			1,151,739			1,159,833
Total residential			5,247,703			5,274,413			5,319,893			5,376,249
Consumer			1,011,125			998,325			1,023,969			1,027,104
Lease financing			426,940			437,399			434,650			425,190
Total loans and leases		$	14,351,869		$	14,293,036		$	14,408,258		$	14,359,899

Deposits												Table 10
		June 30,			March 31,			December 31,			June 30,
(dollars in thousands)		2025			2025			2024			2024
Demand		$	6,844,432		$	6,885,551		$	6,975,148		$	6,857,467
Savings			6,219,801			6,110,796			6,021,364			6,055,051
Money Market			3,777,681			3,865,203			4,027,334			4,111,609
Time			3,389,505			3,354,266			3,298,370			3,294,705
Total Deposits		$	20,231,419		$	20,215,816		$	20,322,216		$	20,318,832

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)		2025			2025			2024			2024
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial		$	1,184		$	—		$	329		$	1,084
Commercial real estate			3,185			216			411			3,085
Construction			904			375			—			447
Total Commercial Loans			5,273			591			740			4,616
Residential Loans:
Residential mortgage			15,032			12,809			12,768			7,273
Home equity line			8,286			6,788			7,171			6,124
Total Residential Loans			23,318			19,597			19,939			13,397
Total Non-Accrual Loans and Leases			28,591			20,188			20,679			18,013
Total Non-Performing Assets		$	28,591		$	20,188		$	20,679		$	18,013
Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial		$	942		$	740		$	1,432		$	110
Construction			—			—			536			—
Total Commercial Loans			942			740			1,968			110
Residential mortgage			309			1,008			1,317			1,820
Consumer			3,187			2,554			2,734			1,835
Total Accruing Loans and Leases Past Due 90 Days or More		$	4,438		$	4,302		$	6,019		$	3,765
Total Loans and Leases		$	14,351,869		$	14,293,036		$	14,408,258		$	14,359,899

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)		2025				2025				2024				2025				2024
Balance at Beginning of Period		$	199,959			$	193,240			$	194,649			$	193,240			$	192,138
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial			(688	)			(1,459	)			(677	)			(2,147	)			(1,586	)
Lease financing			(82	)			—				—				(82	)			—
Total Commercial Loans			(770	)			(1,459	)			(677	)			(2,229	)			(1,586	)
Home equity line			(16	)			(14	)			—				(30	)			—
Consumer			(4,543	)			(5,025	)			(4,182	)			(9,568	)			(9,036	)
Total Loans and Leases Charged-Off			(5,329	)			(6,498	)			(4,859	)			(11,827	)			(10,622	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial			196				403				250				599				461
Commercial real estate			—				251				—				251				—
Total Commercial Loans			196				654				250				850				461
Residential Loans:
Residential mortgage			109				20				28				129				58
Home equity line			32				64				112				96				156
Total Residential Loans			141				84				140				225				214
Consumer			1,705				1,979				1,950				3,684				3,639
Total Recoveries on Loans and Leases Previously Charged-Off			2,042				2,717				2,340				4,759				4,314
Net Loans and Leases Charged-Off			(3,287	)			(3,781	)			(2,519	)			(7,068	)			(6,308	)
Provision for Credit Losses			4,500				10,500				1,800				15,000				8,100
Balance at End of Period		$	201,172			$	199,959			$	193,930			$	201,172			$	193,930
Components:
Allowance for Credit Losses		$	167,825			$	166,612			$	160,517			$	167,825			$	160,517
Reserve for Unfunded Commitments			33,347				33,347				33,413				33,347				33,413
Total Allowance for Credit Losses and Reserve for Unfunded Commitments		$	201,172			$	199,959			$	193,930			$	201,172			$	193,930
Average Loans and Leases Outstanding		$	14,288,918			$	14,309,998			$	14,358,049			$	14,299,400			$	14,335,306
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)			0.09		%		0.11		%		0.07		%		0.10		%		0.09		%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding			1.17		%		1.17		%		1.12		%		1.17		%		1.12		%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases			5.87x				8.25x				8.91x				5.87x				8.91x

(1)

Annualized for the three and six months ended June 30, 2025 and 2024 and three months ended March 31, 2025.

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)		2025			2024			2023			2022			2021			Prior			Cost Basis			Cost Basis			Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass		$	75,108		$	143,460		$	64,613		$	158,143		$	194,932		$	239,648		$	1,282,369		$	21,144		$	2,179,417
Special Mention			407			874			2,114			1,589			123			21,393			24,455			—			50,955
Substandard			537			—			—			10,554			39			1,193			42,079			—			54,402
Other (1)			11,171			11,347			6,926			5,216			1,851			1,583			47,342			—			85,436
Total Commercial and Industrial			87,223			155,681			73,653			175,502			196,945			263,817			1,396,245			21,144			2,370,210
Current period gross charge-offs			1			43			95			202			356			1,420			30			—			2,147
Commercial Real Estate
Risk rating:
Pass			169,890			290,636			374,749			795,676			655,689			1,822,004			101,260			7,588			4,217,492
Special Mention			—			3,336			1,682			7,455			41,396			54,805			11,003			—			119,677
Substandard			—			5,613			540			57,437			1,005			9,193			500			—			74,288
Other (1)			—			—			—			—			—			128			—			—			128
Total Commercial Real Estate			169,890			299,585			376,971			860,568			698,090			1,886,130			112,763			7,588			4,411,585
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Construction
Risk rating:
Pass			10,471			141,948			207,877			285,083			134,469			49,647			21,163			—			850,658
Special Mention			—			—			—			—			—			138			—			—			138
Substandard			—			—			—			—			—			904			—			—			904
Other (1)			2,557			14,216			6,299			5,200			1,486			2,153			695			—			32,606
Total Construction			13,028			156,164			214,176			290,283			135,955			52,842			21,858			—			884,306
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Lease Financing
Risk rating:
Pass			75,371			87,087			96,362			52,286			12,405			96,879			—			—			420,390
Special Mention			—			—			209			—			169			—			—			—			378
Substandard			—			5,418			488			266			—			—			—			—			6,172
Total Lease Financing			75,371			92,505			97,059			52,552			12,574			96,879			—			—			426,940
Current period gross charge-offs			—			—			—			—			—			82			—			—			82
Total Commercial Lending		$	345,512		$	703,935		$	761,859		$	1,378,905		$	1,043,564		$	2,299,668		$	1,530,866		$	28,732		$	8,093,041
Current period gross charge-offs		$	1		$	43		$	95		$	202		$	356		$	1,502		$	30		$	—		$	2,229

(continued)

																							Revolving
																							Loans
																							Converted
		Term Loans																		Revolving			to Term
		Amortized Cost Basis by Origination Year																		Loans			Loans
(continued)																				Amortized			Amortized
(dollars in thousands)		2025			2024			2023			2022			2021			Prior			Cost Basis			Cost Basis			Total
Residential Lending
Residential Mortgage
FICO:
740 and greater		$	75,024		$	152,336		$	184,091		$	466,879		$	889,999		$	1,539,891		$	—		$	—		$	3,308,220
680 - 739			7,541			20,371			27,773			80,105			119,482			192,183			—			—			447,455
620 - 679			4,787			1,274			5,446			8,256			25,983			37,856			—			—			83,602
550 - 619			—			1,508			444			7,226			6,840			26,115			—			—			42,133
Less than 550			—			156			1,439			1,547			3,123			7,033			—			—			13,298
No Score (3)			1,471			9,893			6,036			16,659			9,758			47,459			—			—			91,276
Other (2)			11,078			7,868			11,820			16,274			13,972			35,769			3,062			—			99,843
Total Residential Mortgage			99,901			193,406			237,049			596,946			1,069,157			1,886,306			3,062			—			4,085,827
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Home Equity Line
FICO:
740 and greater			—			—			—			—			—			—			926,318			1,275			927,593
680 - 739			—			—			—			—			—			—			173,339			1,656			174,995
620 - 679			—			—			—			—			—			—			34,428			579			35,007
550 - 619			—			—			—			—			—			—			14,006			552			14,558
Less than 550			—			—			—			—			—			—			8,129			395			8,524
No Score (3)			—			—			—			—			—			—			1,199			—			1,199
Total Home Equity Line			—			—			—			—			—			—			1,157,419			4,457			1,161,876
Current period gross charge-offs			—			—			—			—			—			—			30			—			30
Total Residential Lending		$	99,901		$	193,406		$	237,049		$	596,946		$	1,069,157		$	1,886,306		$	1,160,481		$	4,457		$	5,247,703
Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	30		$	—		$	30
Consumer Lending
FICO:
740 and greater			61,761			75,352			53,350			65,835			31,177			10,411			95,804			96			393,786
680 - 739			41,443			60,382			35,296			33,253			15,631			6,463			84,324			568			277,360
620 - 679			20,622			26,812			14,646			15,734			7,570			4,810			50,024			817			141,035
550 - 619			2,805			9,190			7,165			8,375			4,849			3,479			16,574			888			53,325
Less than 550			664			3,896			4,177			4,758			2,669			2,281			5,594			545			24,584
No Score (3)			545			232			58			21			—			13			38,412			186			39,467
Other (2)			229			—			601			240			583			1,032			78,883			—			81,568
Total Consumer Lending		$	128,069		$	175,864		$	115,293		$	128,216		$	62,479		$	28,489		$	369,615		$	3,100		$	1,011,125
Current period gross charge-offs		$	35		$	1,282		$	998		$	986		$	506		$	1,299		$	3,966		$	496		$	9,568
Total Loans and Leases		$	573,482		$	1,073,205		$	1,114,201		$	2,104,067		$	2,175,200		$	4,214,463		$	3,060,962		$	36,289		$	14,351,869
Current period gross charge-offs		$	36		$	1,325		$	1,093		$	1,188		$	862		$	2,801		$	4,026		$	496		$	11,827

 

(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 (680 and above). As of June 30, 2025, 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 June 30, 2025, 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 Six Months Ended
		June 30,			March 31,			June 30,			June 30,
(dollars in thousands)		2025			2025			2024			2025			2024
Income Statement Data:
Net income		$	73,247		$	59,248		$	61,921		$	132,495		$	116,141
Average total stockholders' equity		$	2,663,850		$	2,641,978		$	2,512,471		$	2,652,975		$	2,504,656
Less: average goodwill			995,492			995,492			995,492			995,492			995,492
Average tangible stockholders' equity		$	1,668,358		$	1,646,486		$	1,516,979		$	1,657,483		$	1,509,164
Average total assets		$	23,859,410		$	23,890,459		$	23,958,913		$	23,874,849		$	24,073,060
Less: average goodwill			995,492			995,492			995,492			995,492			995,492
Average tangible assets		$	22,863,918		$	22,894,967		$	22,963,421		$	22,879,357		$	23,077,568
Return on average total stockholders' equity(1)			11.03	%		9.09	%		9.91	%		10.07	%		9.32	%
Return on average tangible stockholders' equity (non-GAAP)(1)			17.61	%		14.59	%		16.42	%		16.12	%		15.48	%
Return on average total assets(1)			1.23	%		1.01	%		1.04	%		1.12	%		0.97	%
Return on average tangible assets (non-GAAP)(1)			1.28	%		1.05	%		1.08	%		1.17	%		1.01	%

		As of			As of			As of			As of
		June 30,			March 31,			December 31,			June 30,
(dollars in thousands, except per share amounts)		2025			2025			2024			2024
Balance Sheet Data:
Total stockholders' equity		$	2,694,545		$	2,648,852		$	2,617,486		$	2,550,312
Less: goodwill			995,492			995,492			995,492			995,492
Tangible stockholders' equity		$	1,699,053		$	1,653,360		$	1,621,994		$	1,554,820
Total assets		$	23,837,147		$	23,744,958		$	23,828,186		$	23,991,791
Less: goodwill			995,492			995,492			995,492			995,492
Tangible assets		$	22,841,655		$	22,749,466		$	22,832,694		$	22,996,299
Shares outstanding			124,683,544			125,692,598			126,422,898			127,879,012
Total stockholders' equity to total assets			11.30	%		11.16	%		10.98	%		10.63	%
Tangible stockholders' equity to tangible assets (non-GAAP)			7.44	%		7.27	%		7.10	%		6.76	%
Book value per share		$	21.61		$	21.07		$	20.70		$	19.94
Tangible book value per share (non-GAAP)		$	13.63		$	13.15		$	12.83		$	12.16

(1)

Annualized for the three and six months ended June 30, 2025 and 2024 and three months ended March 31, 2025.