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First Hawaiian Inc.

04/23/2021 | Press release | Distributed by Public on 04/23/2021 06:37

Current Report (SEC Filing - 8-K)

EXHIBIT 99.1

For Immediate Release

First Hawaiian, Inc. Reports First Quarter 2021 Financial Results and Declares Dividend

HONOLULU, Hawaii April 23, 2021--(Globe Newswire)--First Hawaiian, Inc. (NASDAQ:FHB), ('First Hawaiian' or the 'Company') today reported financial results for its quarter ended March 31, 2021.

'We had a good first quarter as our teams continued supporting local businesses by originating $459 million of PPP loans. We also experienced strong deposit growth and maintained excellent credit quality,' said Bob Harrison, Chairman, President and CEO. 'We are optimistic about the local economy, as the state's vaccine rollout is well underway and we are seeing a steady increase in visitor arrivals, all positive signs for Hawaii's economy.'

On April 21, 2021 the Company's Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on June 4, 2021 to stockholders of record at the close of business on May 24, 2021.

First Quarter 2021 Highlights:

●	Net income of $57.7 million, or $0.44 per diluted share

●	Total loans and leases increased $21.2 million versus prior quarter

●	Total deposits increased $906.0 million, or 4.7%, versus prior quarter

●	Did not record a provision for credit losses

●	Board of Directors declared a quarterly dividend of $0.26 per share

●	Repurchased $9.5 million of stock under share repurchase program

Balance Sheet

Total assets were $23.5 billion as of March 31, 2021, compared to $22.7 billion as of December 31, 2020.

Gross loans and leases were $13.3 billion as of March 31, 2021, unchanged from $13.3 billion as of December 31, 2020.

Total deposits were $20.1 billion as of March 31, 2021, an increase of $906.0 million, or 4.7%, from $19.2 billion as of December 31, 2020.

Net Interest Income

Net interest income for the first quarter of 2021 was $129.2 million, a decrease of $6.1 million, or 4.5%, compared to $135.2 million for the prior quarter.

The NIM was 2.55% in the first quarter of 2021, a decrease of 16 basis points compared to 2.71% in the fourth quarter of 2020.

Provision Expense

During the quarter ended March 31, 2021, the Bank did not record a provision for credit losses. In the quarter ended December 31, 2020, the total provision for credit losses was $20.0 million.

Noninterest Income

Noninterest income was $43.9 million in the first quarter of 2021, a decrease of $9.7 million compared to noninterest income of $53.6 million in the fourth quarter of 2020.

Noninterest Expense

Noninterest expense was $96.3 million in the first quarter of 2021, an increase of $8.2 million compared to noninterest expense of $88.1 million in the fourth quarter of 2020.

The efficiency ratio was 55.5% and 46.6% for the quarters ended March 31, 2021 and December 31, 2020, respectively.

Taxes

The effective tax rate was 24.8% for the quarter ended March 31, 2021 and 23.5% for the quarter ended December 31, 2020.

Asset Quality

The allowance for credit losses was $200.4 million, or 1.51% of total loans and leases, as of March 31, 2021, compared to $208.5 million, or 1.57% of total loans and leases, as of December 31, 2020. The reserve for unfunded commitments was $34.1 million as of March 31, 2021 compared to $30.6 million as of December 31, 2020. Net charge-offs were $4.6 million, or 0.14% of average loans and leases on an annualized basis for the quarter ended March 31, 2021, compared to net charge-offs of $1.4 million, or 0.04% of average loans and leases on an annualized basis for the quarter ended December 31, 2020. Total non-performing assets were $9.1 million, or 0.07% of total loans and leases and other real estate owned, at both March 31, 2021 and December 31, 2020.

Capital

Total stockholders' equity was $2.7 billion at both March 31, 2021 and December 31, 2020.

The tier 1 leverage, common equity tier 1 and total capital ratios were 7.90%, 12.82% and 14.07%, respectively, at March 31, 2021, compared with 8.00%, 12.47% and 13.73%, respectively, at December 31, 2020.

The Company repurchased 0.3 million shares of common stock at a total cost of $9.5 million under the stock repurchase program in the first quarter. The average cost was $28.70 per share repurchased. Remaining buyback authority under the stock repurchase program was $65.5 million at March 31, 2021.

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, participants should dial (844) 452-2942 (US/Canada), or (574) 990-9846 (International) ten minutes prior to the start of the call and enter the conference ID: 4277629. 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. A telephonic replay of the conference call will be available two hours after the conclusion of the call until 4:30 p.m. (Eastern Time) on April 30, 2021. Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 4277629.

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. Further, statements about the potential effects of the COVID-19 pandemic on our businesses and financial results and conditions may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the ongoing impacts of COVID-19, the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission ('SEC') filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2020.

Use of Non-GAAP Financial Measures

We present net interest income, noninterest income, noninterest expense, net income, earnings per share (basic and diluted) and the related ratios described below, on an adjusted, or 'core,' basis, each a non-GAAP financial measure. These core measures exclude from the corresponding GAAP measure the impact of certain items that we do not believe are representative of our financial results. We believe that the presentation of these non-GAAP financial measures helps identify underlying trends in our business from period to period that could otherwise be distorted by the effect of certain expenses, gains and other items included in our operating results. We believe that these core measures provide useful information about our operating results and enhance the overall understanding of our past performance and future performance. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition.

Core net interest margin, core efficiency ratio, core return on average total assets and core return on average total stockholders' equity are non-GAAP financial measures. We compute our core net interest margin as the ratio of core net interest income to average earning assets. We compute our core efficiency ratio as the ratio of core noninterest expense to the sum of core net interest income and core noninterest income. We compute our core return on average total assets as the ratio of core net income to average total assets. We compute our core return on average total stockholders' equity as the ratio of core net income to average total stockholders' equity.

Return on average tangible stockholders' equity, core return on average tangible stockholders' equity, return on average tangible assets, core return on average tangible assets and tangible stockholders' equity to tangible assets are non-GAAP financial measures. 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 core return on average tangible stockholders' equity as the ratio of core 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 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 core return on average tangible assets as the ratio of core net income to average tangible assets. 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. 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.

Tables 12 and 13 at the end of this document provide a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.


Investor Relations Contact:	Media Contact:
Kevin Haseyama, CFA	Susan Kam
(808) 525-6268	(808) 525-6254
[email protected]	[email protected]


Financial Highlights								Table 1
	For the Three Months Ended
	March 31,		December 31,		March 31,
(dollars in thousands, except per share data)	2021		2020		2020
Operating Results:
Net interest income	$	129,158		$	135,227		$	138,683
Provision for credit losses		-			20,000			41,200
Noninterest income		43,868			53,598			49,228
Noninterest expense		96,306			88,127			96,466
Net income		57,693			61,739			38,865
Basic earnings per share		0.44			0.48			0.30
Diluted earnings per share		0.44			0.47			0.30
Dividends declared per share		0.26			0.26			0.26
Dividend payout ratio		59.09	%		55.32	%		86.67	%
Supplemental Income Statement Data (non-GAAP):
Core net interest income	$	129,158		$	135,227		$	138,683
Core noninterest income		43,868			58,438			49,143
Core noninterest expense		96,306			88,127			96,466
Core net income		57,693			65,288			38,803
Core basic earnings per share		0.44			0.50			0.30
Core diluted earnings per share		0.44			0.50			0.30
Performance Ratio⁽¹⁾:
Net interest margin		2.55	%		2.71	%		3.12	%
Core net interest margin (non-GAAP)		2.55	%		2.71	%		3.12	%
Efficiency ratio		55.53	%		46.59	%		51.33	%
Core efficiency ratio (non-GAAP)		55.53	%		45.43	%		51.35	%
Return on average total assets		1.02	%		1.09	%		0.77	%
Core return on average total assets (non-GAAP)		1.02	%		1.16	%		0.77	%
Return on average tangible assets (non-GAAP)		1.07	%		1.14	%		0.81	%
Core return on average tangible assets (non-GAAP)⁽²⁾		1.07	%		1.21	%		0.81	%
Return on average total stockholders' equity		8.58	%		8.99	%		5.87	%
Core return on average total stockholders' equity (non-GAAP)		8.58	%		9.51	%		5.87	%
Return on average tangible stockholders' equity (non-GAAP)		13.51	%		14.14	%		9.39	%
Core return on average tangible stockholders' equity (non-GAAP)⁽³⁾		13.51	%		14.95	%		9.37	%
Average Balances:
Average loans and leases	$	13,242,270		$	13,366,980		$	13,191,426
Average earning assets		20,476,149			19,977,933			17,814,189
Average assets		22,944,699			22,468,040			20,313,304
Average deposits		19,503,067			19,020,800			16,543,305
Average stockholders' equity		2,727,701			2,732,271			2,660,811
Market Value Per Share:
Closing		27.37			23.58			16.53
High		30.80			23.90			31.25
Low		23.14			14.16			15.42


	As of		As of		As of
	March 31,		December 31,		March 31,
(dollars in thousands, except per share data)	2021		2020		2020
Balance Sheet Data:
Loans and leases	$	13,300,289		$	13,279,097		$	13,380,270
Total assets		23,497,596			22,662,831			20,755,891
Total deposits		20,133,681			19,227,723			17,020,002
Short-term borrowings		-			-			400,000
Long-term borrowings		200,010			200,010			200,019
Total stockholders' equity		2,683,630			2,744,104			2,664,685

Per Share of Common Stock:
Book value	$	20.68		$	21.12		$	20.52
Tangible book value (non-GAAP)⁽⁴⁾		13.01			13.46			12.86

Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases		0.07	%		0.07	%		0.05	%
Allowance for credit losses for loans and leases / total loans and leases		1.51	%		1.57	%		1.24	%

Capital Ratios:
Common Equity Tier 1 Capital Ratio		12.82	%		12.47	%		11.65	%
Tier 1 Capital Ratio		12.82	%		12.47	%		11.65	%
Total Capital Ratio		14.07	%		13.73	%		12.90	%
Tier 1 Leverage Ratio		7.90	%		8.00	%		8.63	%
Total stockholders' equity to total assets		11.42	%		12.11	%		12.84	%
Tangible stockholders' equity to tangible assets (non-GAAP)		7.50	%		8.07	%		8.45	%

Non-Financial Data:
Number of branches		54			54			58
Number of ATMs		297			297			304
Number of Full-Time Equivalent Employees		2,090			2,103			2,103

(1)	Except for the efficiency ratio and the core efficiency ratio, amounts are annualized for the three months ended March 31, 2021, December 31, 2020 and March 31, 2020.

(2)

Core return on average tangible assets is a non-GAAP financial measure. We compute our core return on average tangible assets as the ratio of core 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. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 12, GAAP to Non-GAAP Reconciliation.

(3)

Core return on average tangible stockholders' equity is a non-GAAP financial measure. We compute our core return on average tangible stockholders' equity as the ratio of core 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. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 12, GAAP to Non-GAAP Reconciliation.

(4)

Tangible book value is a non-GAAP financial measure. We compute our tangible book value as the ratio of tangible stockholders' equity to shares outstanding. Tangible stockholders' equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders' equity. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 12, GAAP to Non-GAAP Reconciliation.


Consolidated Statements of Income	Table 2
	For the Three Months Ended
	March 31,		December 31,		March 31,
(dollars in thousands, except per share amounts)	2021		2020		2020
Interest income
Loans and lease financing	$	110,939		$	118,314	$	134,971
Available-for-sale securities		23,146			22,752		21,210
Other		491			615		2,351
Total interest income		134,576			141,681		158,532
Interest expense
Deposits		4,056			5,061		15,600
Short-term and long-term borrowings		1,362			1,393		4,249
Total interest expense		5,418			6,454		19,849
Net interest income		129,158			135,227		138,683
Provision for credit losses		-			20,000		41,200
Net interest income after provision for credit losses		129,158			115,227		97,483
Noninterest income
Service charges on deposit accounts		6,718			6,769		8,950
Credit and debit card fees		14,551			15,583		14,949
Other service charges and fees		8,846			8,404		8,539
Trust and investment services income		8,492			8,733		9,591
Bank-owned life insurance		2,389			4,159		2,260
Investment securities (losses) gains, net		-			(12)		85
Other		2,872			9,962		4,854
Total noninterest income		43,868			53,598		49,228
Noninterest expense
Salaries and employee benefits		43,936			42,687		44,829
Contracted services and professional fees		17,188			13,940		16,055
Occupancy		7,170			7,355		7,243
Equipment		5,491			5,225		4,708
Regulatory assessment and fees		2,034			2,168		1,946
Advertising and marketing		1,591			1,096		1,823
Card rewards program		4,835			4,890		7,015
Other		14,061			10,766		12,847
Total noninterest expense		96,306			88,127		96,466
Income before provision for income taxes		76,720			80,698		50,245
Provision for income taxes		19,027			18,959		11,380
Net income	$	57,693		$	61,739	$	38,865
Basic earnings per share	$	0.44		$	0.48	$	0.30
Diluted earnings per share	$	0.44		$	0.47	$	0.30
Basic weighted-average outstanding shares		129,933,104			129,912,104		129,895,706
Diluted weighted-average outstanding shares		130,589,878			130,314,381		130,351,585


Consolidated Balance Sheets	Table 3
	March 31,		December 31,		March 31,
(dollars in thousands)	2021		2020		2020
Assets
Cash and due from banks	$	278,994		$	303,373	$	353,908
Interest-bearing deposits in other banks		983,816			737,571		698,924
Investment securities, at fair value (amortized cost: $6,708,431 as of March 31, 2021, $5,985,031 as of December 31, 2020 and $4,014,397 as of March 31, 2020)		6,692,479			6,071,415		4,058,457
Loans held for sale		9,390			11,579		8,180
Loans and leases		13,300,289			13,279,097		13,380,270
Less: allowance for credit losses		200,366			208,454		166,013
Net loans and leases		13,099,923			13,070,643		13,214,257

Premises and equipment, net		319,949			322,401		321,254
Other real estate owned and repossessed personal property		-			-		238
Accrued interest receivable		69,879			69,626		43,552
Bank-owned life insurance		468,927			466,537		455,226
Goodwill		995,492			995,492		995,492
Mortgage servicing rights		10,869			10,731		11,979
Other assets		567,878			603,463		594,424
Total assets	$	23,497,596		$	22,662,831	$	20,755,891
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing	$	11,958,606		$	11,705,609	$	11,274,463
Noninterest-bearing		8,175,075			7,522,114		5,745,539
Total deposits		20,133,681			19,227,723		17,020,002
Short-term borrowings		-			-		400,000
Long-term borrowings		200,010			200,010		200,019
Retirement benefits payable		143,736			143,373		138,396
Other liabilities		336,539			347,621		332,789
Total liabilities		20,813,966			19,918,727		18,091,206

Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,455,180 / 129,749,890 shares as of March 31, 2021, issued/outstanding: 140,191,133 / 129,912,272 shares as of December 31, 2020 and issued/outstanding: 140,092,172 / 129,827,968 shares as of March 31, 2020)		1,405			1,402		1,401
Additional paid-in capital		2,517,048			2,514,014		2,506,477
Retained earnings		497,418			473,974		429,323
Accumulated other comprehensive (loss) income, net		(43,435)			31,604		4,129
Treasury stock (10,705,290 shares as of March 31, 2021, 10,278,861 shares as of December 31, 2020 and 10,264,204 shares as of March 31, 2020)		(288,806)			(276,890)		(276,645)
Total stockholders' equity		2,683,630			2,744,104		2,664,685
Total liabilities and stockholders' equity	$	23,497,596		$	22,662,831	$	20,755,891


Average Balances and Interest Rates																			Table 4
	Three Months Ended		Three Months Ended		Three Months Ended
	March 31, 2021		December 31, 2020		March 31, 2020
	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	$	938.7		$	0.2	0.10	%	$	688.1		$	0.2	0.10	%	$	516.8	$	1.6	1.25	%
Available-for-Sale Investment Securities
Taxable		5,949.9			22.1	1.49			5,632.9			22.0	1.56			4,033.2		21.2	2.10
Non-Taxable		278.0			1.3	1.80			220.0			0.9	1.74			-		-	-
Total Available-for-Sale Investment Securities		6,227.9			23.4	1.50			5,852.9			22.9	1.57			4,033.2		21.2	2.10
Loans Held for Sale		9.2			0.1	2.46			16.2			0.1	2.00			15.8		0.1	1.70
Loans and Leases⁽¹⁾
Commercial and industrial		3,026.7			20.4	2.74			3,077.6			22.6	2.93			2,776.2		24.6	3.56
Commercial real estate		3,385.2			24.9	2.98			3,407.2			26.2	3.06			3,433.2		34.6	4.05
Construction		746.8			5.8	3.16			703.1			5.6	3.14			538.5		5.7	4.27
Residential:
Residential mortgage		3,696.1			34.7	3.76			3,679.6			37.1	4.03			3,721.2		37.7	4.05
Home equity line		822.0			5.7	2.80			856.8			6.1	2.81			887.4		7.7	3.50
Consumer		1,323.7			17.7	5.43			1,394.5			19.0	5.43			1,611.7		23.0	5.75
Lease financing		241.8			1.8	3.02			248.2			1.8	2.89			223.2		1.6	2.85
Total Loans and Leases		13,242.3			111.0	3.39			13,367.0			118.4	3.53			13,191.4		134.9	4.11
Other Earning Assets		58.0			0.3	1.79			53.7			0.4	3.26			57.0		0.7	5.30
Total Earning Assets⁽²⁾		20,476.1			135.0	2.66			19,977.9			142.0	2.83			17,814.2		158.5	3.57
Cash and Due from Banks		294.0							289.2							327.4
Other Assets		2,174.6							2,200.9							2,171.7
Total Assets	$	22,944.7						$	22,468.0						$	20,313.3

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	5,975.1		$	0.6	0.04	%	$	5,786.4		$	0.5	0.03	%		5,090.4	$	3.3	0.26	%
Money Market		3,530.0			0.4	0.05			3,440.9			0.4	0.05			3,064.8		4.6	0.61
Time		2,288.5			3.0	0.53			2,461.3			4.2	0.67			2,534.7		7.7	1.23
Total Interest-Bearing Deposits		11,793.6			4.0	0.14			11,688.6			5.1	0.17			10,689.9		15.6	0.59
Short-Term Borrowings		-			-	-			-			-	-			401.7		2.8	2.88
Long-Term Borrowings		200.0			1.4	2.76			200.0			1.4	2.77			200.0		1.4	2.77
Total Interest-Bearing Liabilities		11,993.6			5.4	0.18			11,888.6			6.5	0.22			11,291.6		19.8	0.71
Net Interest Income				$	129.6						$	135.5					$	138.7
Interest Rate Spread						2.48	%						2.61	%					2.86	%
Net Interest Margin						2.55	%						2.71	%					3.12	%
Noninterest-Bearing Demand Deposits		7,709.5							7,332.2							5,853.4
Other Liabilities		513.9							514.9							507.5
Stockholders' Equity		2,727.7							2,732.3							2,660.8
Total Liabilities and Stockholders' Equity	$	22,944.7						$	22,468.0						$	20,313.3

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

(2)	Interest income includes taxable-equivalent basis adjustments of $0.4 million, $0.3 million and nil for the three months ended March 31, 2021, December 31, 2020 and March 31, 2020, respectively.


Analysis of Change in Net Interest Income							Table 5
	Three Months Ended March 31, 2021
	Compared to December 31, 2020
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Available-for-Sale Investment Securities
Taxable	$	1.2		$	(1.1)	$	0.1
Non-Taxable		0.3			0.1		0.4
Total Available-for-Sale Investment Securities		1.5			(1.0)		0.5
Loans and Leases
Commercial and industrial		(0.5)			(1.7)		(2.2)
Commercial real estate		(0.2)			(1.1)		(1.3)
Construction		0.2			-		0.2
Residential:
Residential mortgage		0.2			(2.6)		(2.4)
Home equity line		(0.4)			-		(0.4)
Consumer		(1.3)			-		(1.3)
Lease financing		(0.1)			0.1		-
Total Loans and Leases		(2.1)			(5.3)		(7.4)
Other Earning Assets		0.1			(0.2)		(0.1)
Total Change in Interest Income		(0.5)			(6.5)		(7.0)

Change in Interest Expense:
Interest-Bearing Deposits
Savings		-			0.1		0.1
Time		(0.3)			(0.9)		(1.2)
Total Interest-Bearing Deposits		(0.3)			(0.8)		(1.1)
Total Change in Interest Expense		(0.3)			(0.8)		(1.1)
Change in Net Interest Income	$	(0.2)		$	(5.7)	$	(5.9)


Analysis of Change in Net Interest Income							Table 6
	Three Months Ended March 31, 2021
	Compared to March 31, 2020
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	0.7		$	(2.1)	$	(1.4)
Available-for-Sale Investment Securities
Taxable		8.2			(7.3)		0.9
Non-Taxable		1.3			-		1.3
Total Available-for-Sale Investment Securities		9.5			(7.3)		2.2
Loans and Leases
Commercial and industrial		2.0			(6.2)		(4.2)
Commercial real estate		(0.5)			(9.2)		(9.7)
Construction		1.8			(1.7)		0.1
Residential:
Residential mortgage		(0.3)			(2.7)		(3.0)
Home equity line		(0.5)			(1.5)		(2.0)
Consumer		(4.0)			(1.3)		(5.3)
Lease financing		0.1			0.1		0.2
Total Loans and Leases		(1.4)			(22.5)		(23.9)
Other Earning Assets		0.1			(0.5)		(0.4)
Total Change in Interest Income		8.9			(32.4)		(23.5)

Change in Interest Expense:
Interest-Bearing Deposits
Savings		0.5			(3.2)		(2.7)
Money Market		0.6			(4.8)		(4.2)
Time		(0.7)			(4.0)		(4.7)
Total Interest-Bearing Deposits		0.4			(12.0)		(11.6)
Short-Term Borrowings		(1.4)			(1.4)		(2.8)
Total Change in Interest Expense		(1.0)			(13.4)		(14.4)
Change in Net Interest Income	$	9.9		$	(19.0)	$	(9.1)


Loans and Leases							Table 7
	March 31,		December 31,		March 31,
(dollars in thousands)	2021		2020		2020
Commercial and industrial:
Commercial and industrial excluding Paycheck Protection Program loans	$	1,962,672		$	2,218,266	$	3,025,345
Paycheck Protection Program loans		1,158,764			801,241		-
Total commercial and industrial		3,121,436			3,019,507		3,025,345
Commercial real estate		3,396,233			3,392,676		3,413,014
Construction		739,271			735,819		572,062
Residential:
Residential mortgage		3,715,676			3,690,218		3,673,455
Home equity line		805,746			841,624		891,698
Total residential		4,521,422			4,531,842		4,565,153
Consumer		1,283,779			1,353,842		1,568,073
Lease financing		238,148			245,411		236,623
Total loans and leases	$	13,300,289		$	13,279,097	$	13,380,270


Deposits							Table 8
	March 31,		December 31,		March 31,
(dollars in thousands)	2021		2020		2020
Demand	$	8,175,075		$	7,522,114	$	5,745,539
Savings		6,141,161			6,020,075		5,213,471
Money Market		3,642,604			3,337,236		3,148,694
Time		2,174,841			2,348,298		2,912,298
Total Deposits	$	20,133,681		$	19,227,723	$	17,020,002


Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More							Table 9
	March 31,		December 31,		March 31,
(dollars in thousands)	2021		2020		2020
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial	$	593		$	518	$	32
Commercial real estate		937			80		-
Construction		579			2,043		2,422
Total Commercial Loans		2,109			2,641		2,454
Residential Loans:
Residential mortgage		6,999			6,441		4,472
Total Residential Loans		6,999			6,441		4,472
Total Non-Accrual Loans and Leases		9,108			9,082		6,926
Other Real Estate Owned		-			-		238
Total Non-Performing Assets	$	9,108		$	9,082	$	7,164

Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial	$	1,365		$	2,108	$	4,007
Commercial real estate		1,054			882		757
Construction		89			93		148
Total Commercial Loans		2,508			3,083		4,912
Residential Loans:
Residential mortgage		-			-		82
Home equity line		4,975			4,818		2,566
Total Residential Loans		4,975			4,818		2,648
Consumer		2,024			3,266		3,353
Total Accruing Loans and Leases Past Due 90 Days or More	$	9,507		$	11,167	$	10,913

Restructured Loans on Accrual Status and Not Past Due 90 Days or More	$	39,831		$	16,684	$	17,823
Total Loans and Leases	$	13,300,289		$	13,279,097	$	13,380,270


Allowance for Credit Losses								Table 10
	For the Three Months Ended
	March 31,		December 31,		March 31,
(dollars in thousands)	2021		2020		2020
Balance at Beginning of Period	$	208,454		$	195,876		$	130,530
Adjustment to Adopt ASC Topic 326		-			-			770
After Adoption of ASC Topic 326		208,454			195,876			131,300
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial		(963)			(799)			(201)
Commercial real estate		(66)			(30)			-
Total Commercial Loans		(1,029)			(829)			(201)
Residential Loans:
Residential mortgage		(98)			-			-
Home equity line		-			(46)			(8)
Total Residential Loans		(98)			(46)			(8)
Consumer		(6,541)			(7,049)			(8,597)
Total Loans and Leases Charged-Off		(7,668)			(7,924)			(8,806)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial		215			2,986			220
Commercial real estate		3			615			-
Construction		166			30			110
Total Commercial Loans		384			3,631			330
Residential Loans:
Residential mortgage		17			37			135
Home equity line		24			21			122
Total Residential Loans		41			58			257
Consumer		2,655			2,812			2,083
Total Recoveries on Loans and Leases Previously Charged-Off		3,080			6,501			2,670
Net Loans and Leases Charged-Off		(4,588)			(1,423)			(6,136)
Provision for Credit Losses - Loans and Leases		(3,500)			14,001			40,849
Balance at End of Period	$	200,366		$	208,454		$	166,013
Average Loans and Leases Outstanding	$	13,242,270		$	13,366,980		$	13,191,426
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding⁽¹⁾		0.14	%		0.04	%		0.19	%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding		1.51	%		1.57	%		1.24	%

(1)	Annualized for the three months ended March 31, 2021, December 31, 2020 and March 31, 2020.

Loans and Leases by Year of Origination and Credit Quality Indicator

Table 11

Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

Amortized

(dollars in thousands)

2021

2020

2019

2018

2017

Prior

Cost Basis

Total

Commercial Lending

Commercial and Industrial

Risk rating:

Pass

495,898

781,914

315,190

152,290

51,136

218,781

785,046

27,922

2,828,177

Special Mention

17,608

10,957

19,751

1,930

5,373

66,867

607

123,093

Substandard

23,098

2,808

16,913

584

12,048

28,361

1,367

85,179

Other ⁽¹⁾

3,252

9,848

11,793

7,889

4,362

1,496

46,347

84,987

Total Commercial and Industrial

499,150

832,468

340,748

196,843

58,012

237,698

926,621

29,896

3,121,436

Commercial Real Estate

Risk rating:

Pass

41,958

346,445

613,930

556,954

454,433

1,104,669

51,280

3,169,677

Special Mention

1,491

58,763

14,518

33,401

64,971

173,144

Substandard

346

14,751

3,740

26,082

8,004

52,923

Other ⁽¹⁾

489

Total Commercial Real Estate

41,958

348,282

672,693

586,223

491,574

1,196,211

59,284

3,396,233

Construction

Risk rating:

Pass

32,201

73,512

260,522

162,052

58,537

63,624

24,043

674,491

Special Mention

507

706

4,429

9,172

14,814

Substandard

536

1,478

2,014

Other ⁽¹⁾

5,410

16,755

9,924

7,588

3,655

4,040

580

47,952

Total Construction

37,611

90,267

270,953

170,882

66,621

78,314

24,623

739,271

Lease Financing

Risk rating:

Pass

6,487

73,461

58,375

12,521

16,410

60,734

227,988

Special Mention

566

334

843

286

1,223

599

3,851

Substandard

2,714

1,673

293

1,107

522

6,309

Total Lease Financing

7,053

76,509

60,891

13,100

18,740

61,855

238,148

Total Commercial Lending

585,772

1,347,526

1,345,285

967,048

634,947

1,574,078

1,010,528

29,904

7,495,088

Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

(continued)

Amortized

(dollars in thousands)

2021

2020

2019

2018

2017

Prior

Cost Basis

Total

Residential Lending

Residential Mortgage

FICO:

740 and greater

269,847

698,143

355,459

261,304

320,423

1,031,922

2,937,098

680 - 739

32,425

83,210

51,384

41,764

48,039

168,279

425,101

620 - 679

4,220

15,727

7,626

11,214

9,310

49,018

97,115

550 - 619

1,945

2,810

2,906

14,044

21,705

Less than 550

854

602

2,914

2,673

7,043

No Score ⁽³⁾

4,599

12,498

17,761

21,197

19,972

55,404

131,431

Other ⁽²⁾

5,767

20,213

13,584

13,754

20,607

21,516

580

162

96,183

Total Residential Mortgage

316,858

829,791

448,613

352,645

424,171

1,342,856

580

162

3,715,676

Home Equity Line

FICO:

740 and greater

589,662

2,108

591,770

680 - 739

149,384

3,537

152,921

620 - 679

37,325

1,432

38,757

550 - 619

12,870

1,419

14,289

Less than 550

3,641

359

4,000

No Score ⁽³⁾

4,009

Total Home Equity Line

796,891

8,855

805,746

Total Residential Lending

316,858

829,791

448,613

352,645

424,171

1,342,856

797,471

9,017

4,521,422

Consumer Lending

FICO:

740 and greater

37,038

105,809

109,925

86,146

44,909

22,098

107,725

266

513,916

680 - 739

19,163

79,376

82,058

58,077

31,081

16,370

72,053

774

358,952

620 - 679

6,167

38,079

44,459

30,055

21,453

11,715

33,935

1,213

187,076

550 - 619

337

8,215

18,414

15,800

13,267

8,437

11,582

1,364

77,416

Less than 550

2,644

8,907

7,785

5,711

3,445

4,181

719

33,480

No Score ⁽³⁾

955

354

32,161

411

34,143

Other ⁽²⁾

376

1,774

2,183

6,748

67,649

78,796

Total Consumer Lending

63,748

234,853

265,636

197,986

118,703

68,820

329,286

4,747

1,283,779

Total Loans and Leases

966,378

2,412,170

2,059,534

1,517,679

1,177,821

2,985,754

2,137,285

43,668

13,300,289

(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 12
	For the Three Months Ended
	March 31,		December 31,		March 31,
(dollars in thousands, except per share amounts)	2021		2020		2020
Income Statement Data:
Net income	$	57,693		$	61,739		$	38,865
Core net income	$	57,693		$	65,288		$	38,803

Average total stockholders' equity	$	2,727,701		$	2,732,271		$	2,660,811
Less: average goodwill		995,492			995,492			995,492
Average tangible stockholders' equity	$	1,732,209		$	1,736,779		$	1,665,319

Average total assets	$	22,944,699		$	22,468,040		$	20,313,304
Less: average goodwill		995,492			995,492			995,492
Average tangible assets	$	21,949,207		$	21,472,548		$	19,317,812

Return on average total stockholders' equity⁽¹⁾		8.58	%		8.99	%		5.87	%
Core return on average total stockholders' equity (non-GAAP)⁽¹⁾		8.58	%		9.51	%		5.87	%
Return on average tangible stockholders' equity (non-GAAP)⁽¹⁾		13.51	%		14.14	%		9.39	%
Core return on average tangible stockholders' equity (non-GAAP)⁽¹⁾		13.51	%		14.95	%		9.37	%

Return on average total assets⁽¹⁾		1.02	%		1.09	%		0.77	%
Core return on average total assets (non-GAAP)⁽¹⁾		1.02	%		1.16	%		0.77	%
Return on average tangible assets (non-GAAP)⁽¹⁾		1.07	%		1.14	%		0.81	%
Core return on average tangible assets (non-GAAP)⁽¹⁾		1.07	%		1.21	%		0.81	%



	As of		As of		As of
	March 31,		December 31,		March 31,
	2021		2020		2020
Balance Sheet Data:
Total stockholders' equity	$	2,683,630		$	2,744,104		$	2,664,685
Less: goodwill		995,492			995,492			995,492
Tangible stockholders' equity	$	1,688,138		$	1,748,612		$	1,669,193

Total assets	$	23,497,596		$	22,662,831		$	20,755,891
Less: goodwill		995,492			995,492			995,492
Tangible assets	$	22,502,104		$	21,667,339		$	19,760,399

Shares outstanding		129,749,890			129,912,272			129,827,968

Total stockholders' equity to total assets		11.42	%		12.11	%		12.84	%
Tangible stockholders' equity to tangible assets (non-GAAP)	7.50	%		8.07	%		8.45	%

Book value per share	$	20.68		$	21.12		$	20.52
Tangible book value per share (non-GAAP)	$	13.01		$	13.46		$	12.86

(1)	Annualized for the three months ended March 31, 2021, December 31, 2020 and March 31, 2020.


GAAP to Non-GAAP Reconciliation								Table 13
	For the Three Months Ended
	March 31,		December 31,		March 31,
(dollars in thousands, except per share amounts)	2021		2020		2020
Net interest income	$	129,158		$	135,227		$	138,683
Core net interest income (non-GAAP)	$	129,158		$	135,227		$	138,683

Noninterest income	$	43,868		$	53,598		$	49,228
Losses (gains) on sale of securities		-			12			(85)
Costs associated with the sale of stock⁽¹⁾		-			4,828			-
Core noninterest income (non-GAAP)	$	43,868		$	58,438		$	49,143

Noninterest expense	$	96,306		$	88,127		$	96,466
Core noninterest expense (non-GAAP)	$	96,306		$	88,127		$	96,466

Net income	$	57,693		$	61,739		$	38,865
Losses (gains) on sale of securities		-			12			(85)
Costs associated with the sale of stock⁽¹⁾		-			4,828			-
Tax adjustments⁽²⁾		-			(1,291)			23
Total core adjustments		-			3,549			(62)
Core net income (non-GAAP)	$	57,693		$	65,288		$	38,803

Basic earnings per share	$	0.44		$	0.48		$	0.30
Diluted earnings per share	$	0.44		$	0.47		$	0.30
Efficiency ratio		55.53	%		46.59	%		51.33	%

Core basic earnings per share (non-GAAP)	$	0.44		$	0.50		$	0.30
Core diluted earnings per share (non-GAAP)	$	0.44		$	0.50		$	0.30
Core efficiency ratio (non-GAAP)		55.53	%		45.43	%		51.35	%

(1)	Costs associated with the sale of stock for the three months ended December 31, 2020 related to changes in the valuation of the funding swap entered into with the buyer of our Visa Class B restricted shares sold in 2016.

(2)	Represents the adjustments to net income, tax effected at the Company's effective tax rate for the respective period.

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