First Hawaiian, Inc. (NASDAQ:FHB), (the “Company”) today reported
financial results for the quarter ended March 31, 2017.
First Quarter Highlights
- Net income for the quarter ended March 31, 2017 was $56.7
million, or $0.41 per diluted share, and core net income1 was
$57.0 million, or $0.41 per diluted share
- Board of Directors declared a dividend of $0.22 per share
- Successful follow-on stock offering completed in February
2017. BNP Paribas sold 28.75 million shares, reducing its
ownership level to 62%
“We are pleased to start 2017 with a solid first quarter.
Loans and leases grew to a record $11.8 billion, we maintained our
expense discipline and our credit quality remained excellent,” said
Bob Harrison, Chairman and Chief Executive Officer. “BNP
Paribas also continued to reduce their ownership interest in First
Hawaiian with a successful follow-on stock offering of 28.75
million shares. This reduced BNP Paribas’ ownership in First
Hawaiian, Inc. to 62%.”
On April 26, 2017, the Company’s Board of Directors declared a
quarterly cash dividend of $0.22 per share. The dividend will
be payable on June 9, 2017 to stockholders of record at the close
of business on May 30, 2017.
Earnings Highlights
Net income for the quarter ended March 31, 2017 was $56.7
million, or $0.41 per diluted share, compared to $56.6 million, or
$0.41 per diluted share, for the quarter ended December 31, 2016,
and $65.5 million, or $0.47 per diluted share, for the quarter
ended March 31, 2016. Results from the quarter ended March
31, 2016 included $25.7 million ($16.0 million net of tax) gains
from securities sales. Core net income for the quarter ended
March 31, 2017 was $57.0 million, or $0.41 per diluted share,
compared to $56.0 million, or $0.40 per diluted share, for the
quarter ended December 31, 2016, and $51.1 million, or $0.37 per
diluted share, for the quarter ended March 31, 2016.
Net interest income for the quarter ended March 31, 2017 was
$129.3 million, a decrease of $2.0 million compared to $131.3
million for the quarter ended December 31, 2016, and an increase of
$12.0 million compared to $117.3 million for the quarter ended
March 31, 2016. The decrease in net interest income compared
to the fourth quarter of 2016 was primarily due to lower yields on
loans and higher average deposit balances and rates, partially
offset by higher yields on investment securities and interest
bearing deposits. Loan yields in the fourth quarter of 2016
were favorably impacted by $2.1 million of loan prepayment
fees. The increase compared to the first quarter of 2016 was
due to higher average balances of loans and investments and higher
yields on investment securities and interest bearing deposits,
partially offset by lower yields on loans and higher average
deposit balances and rates.
Net interest margin was 3.00%, 2.99% and 2.77% for the quarters
ended March 31, 2017, December 31, 2016, and March 31, 2016,
respectively. Excluding the $2.1 million in loan prepayment
fees in the quarter ended December 31, 2016, net interest margin
increased during the first quarter of 2017 by six basis points,
primarily due to higher earning asset yields, partially offset by
higher costs related to time deposits. The 23 basis point
increase compared to the first quarter of 2016 was due to higher
yields on investments and interest bearing deposits, partially
offset by lower loan yields and higher deposit
costs.
Results for the quarter ended March 31, 2017 included a
provision for credit losses of $4.5 million compared to $3.9
million in the quarter ended December 31, 2016 and $0.7 million in
the quarter ended March 31, 2016. The first quarter of 2016
included a recovery of $3.1 million on a previously charged-off
commercial real estate loan.
Noninterest income was $49.4 million in the quarter ended March
31, 2017, an increase of $0.4 million compared to noninterest
income of $49.0 million in the quarter ended December 31, 2016 and
a decrease of $24.1 million compared to noninterest income of $73.5
million in the quarter ended March 31, 2016. The first
quarter of 2017 included gains of $1.3 million from death benefits
from bank-owned life insurance (BOLI). The fourth quarter of
2016 included $1.5 million of net gains from the sale of
securities. The first quarter of 2016 included a $22.7
million net gain on the sale of Visa Class B restricted shares, and
$3.1 million of net gains on the sales of securities.
Noninterest expense was $84.3 million for the quarter ended
March 31, 2017, an increase of $1.8 million from $82.5 million in
the quarter ended December 31, 2016, and a decrease of $0.7 million
from $85.1 million in the quarter ended March 31, 2016. The
increase in noninterest expense compared to the fourth quarter of
2016 was primarily due to $2.8 million higher salaries and employee
benefits expense and $1.2 million higher other expense, partially
offset by $1.9 million lower contracted services and professional
fees and $0.6 million lower equipment expense. The increase
in salaries and employee benefits expense was largely due to annual
merit increases, increased overtime expenses and higher payroll
taxes. Contracted services and professional fees in the
fourth quarter of 2016 were elevated as a result expenses related
to system upgrades and product enhancements. The decrease in
noninterest expense compared to the first quarter of 2016 was
primarily due to a $2.4 million decrease in contracted services and
professional fees, and a $1.4 million decrease in salaries and
employee benefits, partially offset by $1.3 million higher
regulatory assessment and fees, and $1.0 million higher cards
reward expenses. Contracted services and professional fees in
the first quarter of 2016 included $2.5 million of fees related to
the initial public offering. The decrease in salaries and
employee benefits compared to the first quarter of 2016 was
primarily due to an increase in deferred loan origination costs in
the first quarter of 2017. The increase in regulatory
assessments was largely due to the increase in the regulatory
assessment rate that became effective July 1, 2016.
The efficiency ratio was 47.2%, 45.8% and 44.6% for the quarters
ended March 31, 2017, December 31, 2016 and March 31, 2016,
respectively.
The effective tax rate for the first quarter of 2017 was 36.9%
compared with 39.8% in the previous quarter and 37.6% percent in
the same quarter last year. The decrease in the effective tax
rate in the first quarter of 2017 compared to the prior quarters
was primarily due to the higher level of BOLI income received in
the first quarter of 2017.
Balance Sheet Highlights
Total assets were $19.8 billion at March 31, 2017, compared to
$19.7 billion at December 31, 2016 and $19.1 billion at March 31,
2016.
The investment securities portfolio was $5.3 billion at March
31, 2017, compared to $5.1 billion at December 31, 2016 and $3.9
billion at March 31, 2016. The portfolio remains largely
comprised of securities issued by U.S. government
agencies.
Total loans and leases were $11.8 billion at March 31, 2017, an
increase of $261.1 million, or 2.3%, from $11.5 billion at December
31, 2016 and up $818.9 million, or 7.5%, from $11.0 billion at
March 31, 2016. The growth in loans and leases compared to
December 31, 2016 was largely due to strong growth in the
commercial real estate and residential loan segments of the
portfolio. Compared to March 31, 2016, the growth in loans
and leases was due to increases across all loan categories.
Total deposits were $16.9 billion at March 31, 2017, an increase
of $143.6 million, or 0.9%, compared with $16.8 billion at December
31, 2016, and an increase of $883.7 million, or 5.5%, compared to
$16.1 billion at March 31, 2016.
Asset Quality
The Company's asset quality remained solid during the first
quarter of 2017. Total non-performing assets declined to $7.7
million, or 0.07% of total loans and leases, at March 31, 2017,
down $2.1 million from non-performing assets of $9.8 million, or
0.08% of total loans and leases, at December 31, 2016 and down $6.9
million from nonperforming assets of $14.6 million, or 0.13% of
total loans and leases, at March 31, 2016.
Net charge offs for the quarter ended March 31, 2017 were $4.1
million, or 0.15% of average loans and leases on an annualized
basis, compared to $3.4 million, or 0.12% of average loans and
leases on an annualized basis for the quarter ended December 31,
2016 and a net recovery of $1.0 million, or (0.04)% of average
loans and leases on an annualized basis for the quarter ended March
31, 2016.
The ratio of allowance for loan and lease losses to total loans
and leases was 1.15% at March 31, 2017 compared to 1.18% at
December 31, 2016 and 1.25% at March 31, 2016.
Capital
Total stockholders' equity was $2.5 billion at March 31, 2017,
December 31, 2016 and March 31, 2016.
The tier 1 leverage, common equity tier 1, and total capital
ratios were 8.52%, 12.78% and 13.87%, respectively, at March 31,
2017, compared with 8.36%, 12.75% and 13.85% at December 31, 2016
and 8.18%, 12.55%, 13.71% at March 31, 2016.
___________________1 Core net income is a non-GAAP measure.
For more information on this measure, including a reconciliation to
the most directly comparable GAAP measure, see “Use of Non-GAAP
Financial Measures” and Tables 11 and 12 at the end of this
document.
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 5:00 p.m. Eastern Time, 11:00 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: 5236509. 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 approximately two hours after the conclusion of the call
until 8:00 p.m. (Eastern Time) on May 7, 2017. Access the
replay by dialing (855) 859-2056 or (404) 537-3406 and entering the
conference ID: 5236509.
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, actual results may prove to be
materially different from the results expressed or implied by the
forward-looking statements. For a discussion of the 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,
2016.
Use of Non-GAAP Financial Measures
We present net interest income, noninterest income, noninterest
expense, net income, earnings per share 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 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 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 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 11 and 12 at the end of this document provide a
reconciliation of these non-GAAP financial measures with their most
closely related GAAP measures.
Financial Highlights |
|
|
|
|
|
|
|
|
Table 1 |
|
|
|
|
For the Three Months Ended |
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
(dollars in thousands, except per share data) |
|
|
2017 |
|
2016 |
|
2016 |
|
Operating
Results: |
|
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
|
$ |
129,345 |
|
$ |
131,250 |
|
$ |
117,312 |
|
Provision
for loan and lease losses |
|
|
|
4,500 |
|
|
3,900 |
|
|
700 |
|
Noninterest income |
|
|
|
49,407 |
|
|
49,021 |
|
|
73,519 |
|
Noninterest expense |
|
|
|
84,339 |
|
|
82,503 |
|
|
85,064 |
|
Net
income |
|
|
|
56,740 |
|
|
56,552 |
|
|
65,531 |
|
Basic
earnings per share |
|
|
|
0.41 |
|
|
0.41 |
|
|
0.47 |
|
Diluted
earnings per share |
|
|
|
0.41 |
|
|
0.41 |
|
|
0.47 |
|
Dividends
declared per share |
|
|
|
0.22 |
|
|
0.20 |
|
|
N/A |
|
Dividend
payout ratio |
|
|
|
53.66 |
% |
|
49.35 |
% |
|
N/A |
|
Supplemental
Income Statement Data (non-GAAP): |
|
|
|
|
|
|
|
|
|
|
|
Core net
interest income |
|
|
$ |
129,345 |
|
$ |
131,250 |
|
$ |
117,312 |
|
Core
noninterest income |
|
|
|
49,407 |
|
|
47,505 |
|
|
47,791 |
|
Core
noninterest expense |
|
|
|
83,955 |
|
|
81,920 |
|
|
82,517 |
|
Core net
income |
|
|
|
56,982 |
|
|
56,001 |
|
|
51,073 |
|
Core
basic earnings per share |
|
|
$ |
0.41 |
|
$ |
0.40 |
|
$ |
0.37 |
|
Core
diluted earnings per share |
|
|
$ |
0.41 |
|
$ |
0.40 |
|
$ |
0.37 |
|
Performance Ratio: |
|
|
|
|
|
|
|
|
|
|
|
Net
interest margin |
|
|
|
3.00 |
% |
2.99 |
% |
|
2.77 |
% |
Core net
interest margin (non-GAAP) |
|
|
|
3.00 |
% |
2.99 |
% |
|
2.77 |
% |
Efficiency ratio |
|
|
|
47.18 |
% |
45.76 |
% |
|
44.57 |
% |
Core
efficiency ratio (non-GAAP) |
|
|
|
46.96 |
% |
45.82 |
% |
|
49.98 |
% |
Return on
average total assets |
|
|
|
1.16 |
% |
1.14 |
% |
|
1.37 |
% |
Core
return on average total assets (non-GAAP) |
|
|
|
1.17 |
% |
1.13 |
% |
|
1.06 |
% |
Return on
average tangible assets |
|
|
|
1.23 |
% |
1.20 |
% |
|
1.44 |
% |
Core
return on average tangible assets (non-GAAP) |
|
|
|
1.23 |
% |
1.19 |
% |
|
1.12 |
% |
Return on
average total stockholders' equity |
|
|
|
9.25 |
% |
8.97 |
% |
|
9.52 |
% |
Core
return on average total stockholders' equity (non-GAAP) |
|
|
|
9.29 |
% |
8.88 |
% |
|
7.42 |
% |
Return on
average tangible stockholders' equity (non-GAAP) |
|
|
|
15.41 |
% |
14.88 |
% |
|
14.86 |
% |
Core
return on average tangible stockholders’ equity (non-GAAP) |
|
|
|
15.48 |
% |
14.73 |
% |
|
11.58 |
% |
Average
Balances: |
|
|
|
|
|
|
|
|
|
|
|
Average
loans and leases |
|
|
$ |
11,582,645 |
|
$ |
11,531,684 |
|
$ |
10,828,160 |
|
Average
earning assets |
|
|
|
17,470,726 |
|
|
17,482,648 |
|
|
17,060,214 |
|
Average
assets |
|
|
|
19,769,508 |
|
|
19,778,918 |
|
|
19,290,342 |
|
Average
deposits |
|
|
|
16,900,354 |
|
|
16,861,525 |
|
|
15,946,664 |
|
Average
shareholders' equity |
|
|
|
2,488,519 |
|
|
2,507,514 |
|
|
2,769,476 |
|
Market Value Per Share: |
|
|
|
|
|
|
|
|
|
|
|
Closing |
|
|
|
29.92 |
|
|
34.82 |
|
|
N/A |
|
High |
|
|
|
34.85 |
|
|
35.47 |
|
|
N/A |
|
Low |
|
|
|
29.13 |
|
|
25.80 |
|
|
N/A |
|
|
|
|
As of |
|
As of |
|
As of |
|
|
|
|
|
March 31, |
|
December
31, |
|
March 31, |
|
|
|
|
|
2017 |
|
2016 |
|
2016 |
|
|
Balance Sheet
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases |
|
|
$ |
11,781,496 |
|
$ |
11,520,378 |
|
$ |
10,962,638 |
|
|
Total
assets |
|
|
|
19,792,785 |
|
|
19,661,829 |
|
|
19,087,504 |
|
|
Total
deposits |
|
|
|
16,938,178 |
|
|
16,794,532 |
|
|
16,054,451 |
|
|
Total
stockholders' equity |
|
|
|
2,505,994 |
|
|
2,476,485 |
|
|
2,471,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share of
Common Stock: |
|
|
|
|
|
|
|
|
|
|
|
|
Book
value |
|
|
$ |
17.96 |
|
$ |
17.75 |
|
$ |
17.72 |
|
|
Tangible
book value |
|
|
|
10.82 |
|
|
10.61 |
|
|
10.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans and leases / total loans and leases |
|
|
|
0.06 |
% |
0.08 |
% |
|
0.13 |
% |
|
Allowance for loan and lease losses / total loans and leases
|
|
|
1.15 |
% |
1.18 |
% |
|
1.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
Common
Equity Tier 1 Capital Ratio |
|
|
|
12.78 |
% |
|
12.75 |
% |
|
12.55 |
% |
|
Tier 1
Capital Ratio |
|
|
|
12.78 |
% |
12.75 |
% |
|
12.55 |
% |
|
Total
Capital Ratio |
|
|
|
13.87 |
% |
13.85 |
% |
|
13.71 |
% |
|
Tier 1
Leverage Ratio |
|
|
|
8.52 |
% |
8.36 |
% |
|
8.18 |
% |
|
Total
stockholders' equity to total assets |
|
|
|
12.66 |
% |
12.60 |
% |
|
12.95 |
% |
|
Tangible
stockholders' equity to tangible assets (non-GAAP) |
|
|
|
8.04 |
% |
7.93 |
% |
|
8.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Financial
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
Number of
branches |
|
|
|
62 |
|
|
62 |
|
|
62 |
|
|
Number of
ATMs |
|
|
|
311 |
|
|
311 |
|
|
311 |
|
|
Number of
Full-Time Equivalent Employees |
|
|
|
2,195 |
|
|
2,179 |
|
|
2,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income |
|
Table 2 |
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
(dollars in thousands, except per share amounts) |
|
2017 |
|
2016 |
|
2016 |
|
Interest
income |
|
|
|
|
|
|
|
|
|
|
Loans and lease
financing |
|
$ |
109,266 |
|
$ |
111,461 |
|
$ |
104,357 |
|
Available-for-sale
securities |
|
|
26,429 |
|
|
25,884 |
|
|
16,559 |
|
Other |
|
|
1,226 |
|
|
968 |
|
|
2,896 |
|
Total
interest income |
|
|
136,921 |
|
|
138,313 |
|
|
123,812 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
7,570 |
|
|
7,048 |
|
|
6,429 |
|
Short-term borrowings
and long-term debt |
|
|
6 |
|
|
15 |
|
|
71 |
|
Total
interest expense |
|
|
7,576 |
|
|
7,063 |
|
|
6,500 |
|
Net
interest income |
|
|
129,345 |
|
|
131,250 |
|
|
117,312 |
|
Provision for loan and
lease losses |
|
|
4,500 |
|
|
3,900 |
|
|
700 |
|
Net
interest income after provision for loan and lease losses |
|
|
124,845 |
|
|
127,350 |
|
|
116,612 |
|
Noninterest
income |
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts |
|
|
9,555 |
|
|
9,388 |
|
|
9,789 |
|
Credit and debit card
fees |
|
|
14,479 |
|
|
14,339 |
|
|
13,819 |
|
Other service charges
and fees |
|
|
9,097 |
|
|
8,446 |
|
|
9,227 |
|
Trust and investment
services income |
|
|
7,338 |
|
|
7,204 |
|
|
7,405 |
|
Bank-owned life
insurance |
|
|
4,578 |
|
|
1,758 |
|
|
2,356 |
|
Investment securities
gains, net |
|
|
— |
|
|
1,516 |
|
|
25,728 |
|
Other |
|
|
4,360 |
|
|
6,370 |
|
|
5,195 |
|
Total
noninterest income |
|
|
49,407 |
|
|
49,021 |
|
|
73,519 |
|
Noninterest
expense |
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
|
43,300 |
|
|
40,471 |
|
|
44,701 |
|
Contracted services and
professional fees |
|
|
10,308 |
|
|
12,221 |
|
|
12,755 |
|
Occupancy |
|
|
5,321 |
|
|
5,125 |
|
|
5,312 |
|
Equipment |
|
|
4,197 |
|
|
4,777 |
|
|
3,827 |
|
Regulatory assessment
and fees |
|
|
3,774 |
|
|
4,103 |
|
|
2,477 |
|
Advertising and
marketing |
|
|
2,028 |
|
|
1,309 |
|
|
1,624 |
|
Card rewards
program |
|
|
4,511 |
|
|
4,770 |
|
|
3,502 |
|
Other |
|
|
10,900 |
|
|
9,727 |
|
|
10,866 |
|
Total
noninterest expense |
|
|
84,339 |
|
|
82,503 |
|
|
85,064 |
|
Income
before provision for income taxes |
|
|
89,913 |
|
|
93,868 |
|
|
105,067 |
|
Provision for income
taxes |
|
|
33,173 |
|
|
37,316 |
|
|
39,536 |
|
Net income |
|
$ |
56,740 |
|
$ |
56,552 |
|
$ |
65,531 |
|
Basic earnings per
share |
|
$ |
0.41 |
|
$ |
0.41 |
|
$ |
0.47 |
|
Diluted earnings per
share |
|
$ |
0.41 |
|
$ |
0.41 |
|
$ |
0.47 |
|
Dividends declared per
share |
|
$ |
0.22 |
|
$ |
0.20 |
|
$ |
— |
|
Basic weighted-average
outstanding shares |
|
|
139,545,728 |
|
|
139,530,654 |
|
|
139,459,620 |
|
Diluted
weighted-average outstanding shares |
|
|
139,637,410 |
|
|
139,546,875 |
|
|
139,459,620 |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Balance Sheets |
|
Table 3 |
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
(dollars in thousands) |
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
249,953 |
|
|
$ |
253,827 |
|
|
$ |
300,183 |
|
|
Interest-bearing
deposits in other banks |
|
|
527,659 |
|
|
|
798,231 |
|
|
|
2,048,875 |
|
|
Investment
securities |
|
|
5,260,262 |
|
|
|
5,077,514 |
|
|
|
3,864,940 |
|
|
Loans and leases |
|
|
11,781,496 |
|
|
|
11,520,378 |
|
|
|
10,962,638 |
|
|
Less: allowance for
loan and lease losses |
|
|
135,847 |
|
|
|
135,494 |
|
|
|
137,154 |
|
|
Net loans
and leases |
|
|
11,645,649 |
|
|
|
11,384,884 |
|
|
|
10,825,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Premises and equipment,
net |
|
|
295,608 |
|
|
|
300,788 |
|
|
|
304,704 |
|
|
Other real estate owned
and repossessed personal property |
|
|
329 |
|
|
|
329 |
|
|
|
205 |
|
|
Accrued interest
receivable |
|
|
39,386 |
|
|
|
41,971 |
|
|
|
33,473 |
|
|
Bank-owned life
insurance |
|
|
429,800 |
|
|
|
429,209 |
|
|
|
426,446 |
|
|
Goodwill |
|
|
995,492 |
|
|
|
995,492 |
|
|
|
995,492 |
|
|
Other intangible
assets |
|
|
15,800 |
|
|
|
16,809 |
|
|
|
20,214 |
|
|
Other assets |
|
|
332,847 |
|
|
|
362,775 |
|
|
|
267,488 |
|
|
Total assets |
|
$ |
19,792,785 |
|
|
$ |
19,661,829 |
|
|
$ |
19,087,504 |
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing |
|
$ |
10,917,631 |
|
|
$ |
10,801,915 |
|
|
$ |
10,639,094 |
|
|
Noninterest-bearing |
|
|
6,020,547 |
|
|
|
5,992,617 |
|
|
|
5,415,357 |
|
|
Total
deposits |
|
|
16,938,178 |
|
|
|
16,794,532 |
|
|
|
16,054,451 |
|
|
Short-term
borrowings |
|
|
— |
|
|
|
9,151 |
|
|
|
215,451 |
|
|
Long-term debt |
|
|
41 |
|
|
|
41 |
|
|
|
48 |
|
|
Retirement benefits
payable |
|
|
133,819 |
|
|
|
132,904 |
|
|
|
135,584 |
|
|
Other liabilities |
|
|
214,753 |
|
|
|
248,716 |
|
|
|
210,236 |
|
|
Total
liabilities |
|
|
17,286,791 |
|
|
|
17,185,344 |
|
|
|
16,615,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity |
|
|
|
|
|
|
|
|
|
|
Net
investment |
|
|
— |
|
|
|
— |
|
|
|
2,490,107 |
|
|
Common
stock ($0.01 par value; authorized 300,000,000 shares; issued and
outstanding 139,546,615 shares as of March 31, 2017, 139,530,654
shares as of December 31, 2016 and 139,459,620 shares as of March
31, 2016) |
|
|
1,395 |
|
|
|
1,395 |
|
|
|
— |
|
|
Additional paid-in capital |
|
|
2,486,596 |
|
|
|
2,484,251 |
|
|
|
— |
|
|
Retained
earnings |
|
|
104,695 |
|
|
|
78,850 |
|
|
|
— |
|
|
Accumulated other comprehensive loss, net |
|
|
(86,692 |
) |
|
|
(88,011 |
) |
|
|
(18,373 |
) |
|
Total
stockholders' equity |
|
|
2,505,994 |
|
|
|
2,476,485 |
|
|
|
2,471,734 |
|
|
Total liabilities and stockholders' equity |
|
$ |
19,792,785 |
|
|
$ |
19,661,829 |
|
|
$ |
19,087,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances and Interest Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 4 |
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Three Months
Ended |
|
|
|
|
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
|
|
|
|
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 |
|
$ |
640.2 |
|
$ |
1.2 |
|
0.78 |
% |
$ |
673.7 |
|
$ |
0.9 |
|
0.57 |
% |
$ |
2,273.2 |
|
$ |
2.9 |
|
0.51 |
% |
|
Available-for-Sale Investment Securities |
|
|
5,236.6 |
|
|
26.4 |
|
2.05 |
|
|
5,277.2 |
|
|
25.9 |
|
1.95 |
|
|
3,958.9 |
|
|
16.6 |
|
1.68 |
|
|
Loans
and Leases (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
3,233.6 |
|
|
24.3 |
|
3.04 |
|
|
3,314.3 |
|
|
25.7 |
|
3.09 |
|
|
3,095.6 |
|
|
22.9 |
|
2.98 |
|
|
Real
estate - commercial |
|
|
2,481.2 |
|
|
22.2 |
|
3.63 |
|
|
2,431.4 |
|
|
23.1 |
|
3.78 |
|
|
2,158.7 |
|
|
20.9 |
|
3.89 |
|
|
Real
estate - construction |
|
|
460.3 |
|
|
3.7 |
|
3.25 |
|
|
470.7 |
|
|
3.8 |
|
3.21 |
|
|
405.9 |
|
|
3.3 |
|
3.24 |
|
|
Real
estate - residential |
|
|
3,723.7 |
|
|
37.6 |
|
4.10 |
|
|
3,636.9 |
|
|
37.0 |
|
4.04 |
|
|
3,560.6 |
|
|
36.0 |
|
4.07 |
|
|
Consumer |
|
|
1,513.4 |
|
|
20.3 |
|
5.43 |
|
|
1,493.9 |
|
|
20.6 |
|
5.49 |
|
|
1,415.3 |
|
|
19.8 |
|
5.65 |
|
|
Lease
financing |
|
|
170.5 |
|
|
1.2 |
|
2.77 |
|
|
184.5 |
|
|
1.3 |
|
2.75 |
|
|
192.0 |
|
|
1.4 |
|
2.94 |
|
|
Total
Loans and Leases |
|
|
11,582.7 |
|
|
109.3 |
|
3.83 |
|
|
11,531.7 |
|
|
111.5 |
|
3.85 |
|
|
10,828.1 |
|
|
104.3 |
|
3.88 |
|
|
Other
Earning Assets |
|
|
11.2 |
|
|
— |
|
0.77 |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
Total
Earning Assets (2) |
|
|
17,470.7 |
|
|
136.9 |
|
3.18 |
|
|
17,482.6 |
|
|
138.3 |
|
3.15 |
|
|
17,060.2 |
|
|
123.8 |
|
2.92 |
|
|
Cash and
Due from Banks |
|
|
324.7 |
|
|
|
|
|
|
|
312.5 |
|
|
|
|
|
|
|
299.0 |
|
|
|
|
|
|
|
Other
Assets |
|
|
1,974.1 |
|
|
|
|
|
|
|
1,983.8 |
|
|
|
|
|
|
|
1,931.1 |
|
|
|
|
|
|
|
Total Assets |
|
$ |
19,769.5 |
|
|
|
|
|
|
$ |
19,778.9 |
|
|
|
|
|
|
$ |
19,290.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings |
|
$ |
4,506.4 |
|
$ |
0.7 |
|
0.06 |
% |
$ |
4,446.1 |
|
$ |
0.6 |
|
0.06 |
% |
$ |
4,350.0 |
|
$ |
0.7 |
|
0.06 |
% |
|
Money
Market |
|
|
2,494.3 |
|
|
0.6 |
|
0.09 |
|
|
2,680.4 |
|
|
0.7 |
|
0.10 |
|
|
2,399.1 |
|
|
0.5 |
|
0.09 |
|
|
Time |
|
|
3,985.8 |
|
|
6.3 |
|
0.65 |
|
|
3,923.1 |
|
|
5.7 |
|
0.58 |
|
|
3,824.8 |
|
|
5.2 |
|
0.55 |
|
|
Total
Interest-Bearing Deposits |
|
|
10,986.5 |
|
|
7.6 |
|
0.28 |
|
|
11,049.6 |
|
|
7.0 |
|
0.25 |
|
|
10,573.9 |
|
|
6.4 |
|
0.24 |
|
|
Short-Term Borrowings |
|
|
3.9 |
|
|
— |
|
0.54 |
|
|
11.1 |
|
|
— |
|
0.49 |
|
|
223.9 |
|
|
0.1 |
|
0.13 |
|
|
Total Interest-Bearing Liabilities |
|
|
10,990.4 |
|
|
7.6 |
|
0.28 |
|
|
11,060.7 |
|
|
7.0 |
|
0.25 |
|
|
10,797.8 |
|
|
6.5 |
|
0.24 |
|
|
Net Interest Income |
|
|
|
|
$ |
129.3 |
|
|
|
|
|
|
$ |
131.3 |
|
|
|
|
|
|
$ |
117.3 |
|
|
|
|
Interest
Rate Spread |
|
|
|
|
|
|
|
2.90 |
% |
|
|
|
|
|
|
2.90 |
% |
|
|
|
|
|
|
2.68 |
% |
|
Net
Interest Margin |
|
|
|
|
|
|
|
3.00 |
% |
|
|
|
|
|
|
2.99 |
% |
|
|
|
|
|
|
2.77 |
% |
|
Noninterest-Bearing Demand Deposits |
|
|
5,913.9 |
|
|
|
|
|
|
|
5,811.9 |
|
|
|
|
|
|
|
5,372.8 |
|
|
|
|
|
|
|
Other
Liabilities |
|
|
376.7 |
|
|
|
|
|
|
|
398.8 |
|
|
|
|
|
|
|
350.2 |
|
|
|
|
|
|
|
Stockholders' Equity |
|
|
2,488.5 |
|
|
|
|
|
|
|
2,507.5 |
|
|
|
|
|
|
|
2,769.5 |
|
|
|
|
|
|
|
Total Liabilities and Stockholders'
Equity |
$ |
19,769.5 |
|
|
|
|
|
|
$ |
19,778.9 |
|
|
|
|
|
|
$ |
19,290.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of Change in Net Interest Income |
|
|
|
|
|
|
|
|
Table
5 |
|
|
|
Three Months Ended
March 31, 2017 |
|
|
|
Compared to December 31, 2016 |
|
(dollars
in millions) |
|
Volume |
|
Rate |
|
Total |
|
Change in Interest Income: |
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits in Other Banks |
|
$ |
— |
|
|
$ |
0.3 |
|
|
$ |
0.3 |
|
|
Available-for-Sale Investment Securities |
|
|
(0.2 |
) |
|
|
0.7 |
|
|
|
0.5 |
|
|
Loans
and Leases |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
(0.6 |
) |
|
|
(0.8 |
) |
|
|
(1.4 |
) |
|
Real
estate - commercial |
|
|
0.5 |
|
|
|
(1.4 |
) |
|
|
(0.9 |
) |
|
Real
estate - construction |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
|
Real
estate - residential |
|
|
0.8 |
|
|
|
(0.2 |
) |
|
|
0.6 |
|
|
Consumer |
|
|
0.3 |
|
|
|
(0.6 |
) |
|
|
(0.3 |
) |
|
Lease
financing |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
|
Total
Loans and Leases |
|
|
0.8 |
|
|
|
(3.0 |
) |
|
|
(2.2 |
) |
|
Total Change in Interest Income |
|
|
0.6 |
|
|
|
(2.0 |
) |
|
|
(1.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Change in Interest Expense: |
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
Money
Market |
|
|
— |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
Time |
|
|
0.1 |
|
|
|
0.5 |
|
|
|
0.6 |
|
|
Total
Interest-Bearing Deposits |
|
|
0.1 |
|
|
|
0.4 |
|
|
|
0.5 |
|
|
Total Change in Interest Expense |
|
|
0.1 |
|
|
|
0.4 |
|
|
|
0.5 |
|
|
Change in Net Interest Income |
|
$ |
0.5 |
|
|
$ |
(2.4 |
) |
|
$ |
(1.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of Change in Net Interest Income |
|
|
|
|
|
|
|
|
Table
6 |
|
|
|
Three Months Ended
March 31, 2017 |
|
|
|
Compared to
March 31, 2016 |
|
(dollars
in millions) |
|
Volume |
|
Rate |
|
Total |
|
Change in Interest Income: |
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits in Other Banks |
|
$ |
(2.7 |
) |
|
$ |
1.0 |
|
|
$ |
(1.7 |
) |
|
Available-for-Sale Investment Securities |
|
|
6.0 |
|
|
|
3.8 |
|
|
|
9.8 |
|
|
Loans
and Leases |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
1.0 |
|
|
|
0.4 |
|
|
|
1.4 |
|
|
Real
estate - commercial |
|
|
3.0 |
|
|
|
(1.7 |
) |
|
|
1.3 |
|
|
Real
estate - construction |
|
|
0.4 |
|
|
|
— |
|
|
|
0.4 |
|
|
Real
estate - residential |
|
|
1.6 |
|
|
|
— |
|
|
|
1.6 |
|
|
Consumer |
|
|
1.4 |
|
|
|
(0.9 |
) |
|
|
0.5 |
|
|
Lease
financing |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
Total
Loans and Leases |
|
|
7.3 |
|
|
|
(2.3 |
) |
|
|
5.0 |
|
|
Total Change in Interest Income |
|
|
10.6 |
|
|
|
2.5 |
|
|
|
13.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Interest Expense: |
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Deposits |
|
|
|
|
|
|
|
|
|
|
Money
Market |
|
|
0.1 |
|
|
|
— |
|
|
|
0.1 |
|
|
Time |
|
|
0.2 |
|
|
|
0.9 |
|
|
|
1.1 |
|
|
Total
Interest-Bearing Deposits |
|
|
0.3 |
|
|
|
0.9 |
|
|
|
1.2 |
|
|
Short-term Borrowings |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
|
Total Change in Interest Expense |
|
|
0.2 |
|
|
|
0.9 |
|
|
|
1.1 |
|
|
Change in Net Interest Income |
|
$ |
10.4 |
|
|
$ |
1.6 |
|
|
$ |
12.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and Leases |
|
|
|
|
|
|
|
|
|
Table 7 |
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
(dollars
in thousands) |
|
|
2017 |
|
2016 |
|
2016 |
|
Commercial and
industrial |
|
|
$ |
3,243,508 |
|
$ |
3,239,600 |
|
$ |
3,197,173 |
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
2,532,253 |
|
|
2,343,495 |
|
|
2,147,132 |
|
Construction |
|
|
|
469,741 |
|
|
450,012 |
|
|
421,107 |
|
Residential |
|
|
|
3,864,509 |
|
|
3,796,459 |
|
|
3,586,862 |
|
Total
real estate |
|
|
|
6,866,503 |
|
|
6,589,966 |
|
|
6,155,101 |
|
Consumer |
|
|
|
1,503,129 |
|
|
1,510,772 |
|
|
1,419,326 |
|
Lease financing |
|
|
|
168,356 |
|
|
180,040 |
|
|
191,038 |
|
Total loans and leases |
|
|
$ |
11,781,496 |
|
$ |
11,520,378 |
|
$ |
10,962,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
Table 8 |
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
(dollars
in thousands) |
|
|
2017 |
|
2016 |
|
2016 |
|
Demand |
|
|
$ |
6,020,547 |
|
$ |
5,992,617 |
|
$ |
5,415,357 |
|
Savings |
|
|
|
4,503,663 |
|
|
4,609,306 |
|
|
4,382,643 |
|
Money Market |
|
|
|
2,496,642 |
|
|
2,454,013 |
|
|
2,280,653 |
|
Time |
|
|
|
3,917,326 |
|
|
3,738,596 |
|
|
3,975,798 |
|
Total Deposits |
|
|
$ |
16,938,178 |
|
$ |
16,794,532 |
|
$ |
16,054,451 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
2017 |
|
2016 |
|
2016 |
Non-Performing
Assets |
|
|
|
|
|
|
|
|
|
|
Non-Accrual Loans and
Leases |
|
|
|
|
|
|
|
|
|
|
Commercial Loans: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
$ |
2,154 |
|
$ |
2,730 |
|
$ |
3,774 |
Lease
financing |
|
|
|
153 |
|
|
153 |
|
|
178 |
Total
Commercial Loans |
|
|
|
2,307 |
|
|
2,883 |
|
|
3,952 |
Residential |
|
|
|
5,023 |
|
|
6,547 |
|
|
10,481 |
Total Non-Accrual Loans
and Leases |
|
|
|
7,330 |
|
|
9,430 |
|
|
14,433 |
Other Real Estate
Owned |
|
|
|
329 |
|
|
329 |
|
|
205 |
Total
Non-Performing Assets |
|
|
$ |
7,659 |
|
$ |
9,759 |
|
$ |
14,638 |
|
|
|
|
|
|
|
|
|
|
|
Accruing Loans
and Leases Past Due 90 Days or More |
|
|
|
|
|
|
|
|
|
|
Commercial Loans: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
$ |
309 |
|
$ |
449 |
|
$ |
198 |
Lease
financing |
|
|
|
84 |
|
|
83 |
|
|
— |
Total Commercial
Loans |
|
|
|
393 |
|
|
532 |
|
|
198 |
Residential |
|
|
|
1,437 |
|
|
866 |
|
|
2,103 |
Consumer |
|
|
|
1,718 |
|
|
1,870 |
|
|
1,813 |
Total Accruing
Loans and Leases Past Due 90 Days or More |
|
|
$ |
3,548 |
|
$ |
3,268 |
|
$ |
4,114 |
|
|
|
|
|
|
|
|
|
|
|
Restructured
Loans on Accrual Status and Not Past Due 90 Days or
More |
|
|
|
50,758 |
|
|
44,496 |
|
|
44,829 |
Total Loans and
Leases |
|
|
$ |
11,781,496 |
|
$ |
11,520,378 |
|
$ |
10,962,638 |
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan and Lease Losses |
|
|
|
|
|
|
|
|
Table 10 |
|
|
|
|
|
For the Three Months Ended |
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
|
(dollars
in thousands) |
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
|
|
Balance at
Beginning of Period |
|
$ |
135,494 |
|
|
$ |
135,025 |
|
|
$ |
135,484 |
|
|
|
|
Loans and Leases
Charged-Off |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
(855 |
) |
|
|
— |
|
|
|
(86 |
) |
|
|
|
Total
Commercial Loans |
|
|
(855 |
) |
|
|
— |
|
|
|
(86 |
) |
|
|
|
Residential |
|
|
(22 |
) |
|
|
(3 |
) |
|
|
(72 |
) |
|
|
|
Consumer |
|
|
(5,572 |
) |
|
|
(5,412 |
) |
|
|
(4,206 |
) |
|
|
|
Total Loans and
Leases Charged-Off |
|
|
(6,449 |
) |
|
|
(5,415 |
) |
|
|
(4,364 |
) |
|
|
|
Recoveries on Loans and
Leases Previously Charged-Off |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
114 |
|
|
|
23 |
|
|
|
203 |
|
|
|
|
Real
estate - commercial |
|
|
77 |
|
|
|
41 |
|
|
|
3,199 |
|
|
|
|
Lease
financing |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
|
Total
Commercial Loans |
|
|
191 |
|
|
|
65 |
|
|
|
3,402 |
|
|
|
|
Residential |
|
|
321 |
|
|
|
242 |
|
|
|
306 |
|
|
|
|
Consumer |
|
|
1,790 |
|
|
|
1,677 |
|
|
|
1,626 |
|
|
|
|
Total Recoveries on Loans and Leases Previously
Charged-Off |
|
|
2,302 |
|
|
|
1,984 |
|
|
|
5,334 |
|
|
|
|
Net Loans and Leases
(Charged-Off) Recovered |
|
|
(4,147 |
) |
|
|
(3,431 |
) |
|
|
970 |
|
|
|
|
Provision for Credit
Losses |
|
|
4,500 |
|
|
|
3,900 |
|
|
|
700 |
|
|
|
|
Balance at End
of Period |
|
$ |
135,847 |
|
|
$ |
135,494 |
|
|
$ |
137,154 |
|
|
|
|
Average Loans and
Leases Outstanding |
|
$ |
11,582,645 |
|
|
$ |
11,531,684 |
|
|
$ |
10,828,160 |
|
|
|
|
Ratio of Net Loans and
Leases Charged-Off (Recovered) to Average Loans and Leases
Outstanding |
|
|
0.15 |
|
% |
0.12 |
|
% |
(0.04 |
) |
% |
|
Ratio of Allowance for
Loan and Lease Losses to Loans and Leases Outstanding |
|
|
1.15 |
|
% |
1.18 |
|
% |
1.25 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP to Non-GAAP Reconciliation |
|
|
|
|
|
|
Table 11 |
|
|
|
|
As of and for the Three Months
Ended |
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
(dollars in thousands, except per share amounts) |
|
2017 |
|
2016 |
|
2016 |
|
|
Net income |
|
$ |
56,740 |
|
$ |
56,552 |
|
$ |
65,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
stockholders' equity |
|
$ |
2,488,519 |
|
$ |
2,507,514 |
|
$ |
2,769,476 |
|
|
Less: average
goodwill |
|
|
995,492 |
|
|
995,492 |
|
|
995,492 |
|
|
Average tangible
stockholders' equity |
|
$ |
1,493,027 |
|
$ |
1,512,022 |
|
$ |
1,773,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity |
|
$ |
2,505,994 |
|
$ |
2,476,485 |
|
$ |
2,471,734 |
|
|
Less: goodwill |
|
|
995,492 |
|
|
995,492 |
|
|
995,492 |
|
|
Tangible stockholders'
equity |
|
$ |
1,510,502 |
|
$ |
1,480,993 |
|
$ |
1,476,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
assets |
|
$ |
19,769,508 |
|
$ |
19,778,918 |
|
$ |
19,290,342 |
|
|
Less: average
goodwill |
|
|
995,492 |
|
|
995,492 |
|
|
995,492 |
|
|
Average tangible
assets |
|
$ |
18,774,016 |
|
$ |
18,783,426 |
|
$ |
18,294,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
19,792,785 |
|
$ |
19,661,829 |
|
$ |
19,087,504 |
|
|
Less: goodwill |
|
|
995,492 |
|
|
995,492 |
|
|
995,492 |
|
|
Tangible assets |
|
$ |
18,797,293 |
|
$ |
18,666,337 |
|
$ |
18,092,012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding |
|
|
139,546,615 |
|
|
139,530,654 |
|
|
139,459,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average total
stockholders' equity(a) |
|
|
9.25 |
% |
|
8.97 |
% |
|
9.52 |
% |
|
Return on average
tangible stockholders' equity (non-GAAP)(a) |
|
|
15.41 |
% |
|
14.88 |
% |
|
14.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average total
assets(a) |
|
|
1.16 |
% |
|
1.14 |
% |
|
1.37 |
% |
|
Return on average
tangible assets (non-GAAP)(a) |
|
|
1.23 |
% |
|
1.20 |
% |
|
1.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity to total assets |
|
|
12.66 |
% |
|
12.60 |
% |
|
12.95 |
% |
|
Tangible stockholders'
equity to tangible assets (non-GAAP) |
|
|
8.04 |
% |
|
7.93 |
% |
|
8.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average stockholders'
equity to average assets |
|
|
12.59 |
% |
|
12.68 |
% |
|
14.36 |
% |
|
Tangible
average stockholders' equity to tangible average assets
(non-GAAP) |
|
|
7.95 |
% |
|
8.05 |
% |
|
9.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share |
|
$ |
17.96 |
|
$ |
17.75 |
|
$ |
17.72 |
|
|
Tangible book value per
share (non-GAAP) |
|
$ |
10.82 |
|
$ |
10.61 |
|
$ |
10.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
2017 |
|
|
2016 |
|
|
2016 |
|
|
Net interest
income |
|
$ |
129,345 |
|
|
$ |
131,250 |
|
|
$ |
117,312 |
|
|
Core net interest
income (non-GAAP) |
|
$ |
129,345 |
|
|
$ |
131,250 |
|
|
$ |
117,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income |
|
$ |
49,407 |
|
|
$ |
49,021 |
|
|
$ |
73,519 |
|
|
Loss (gain) on sale of
securities |
|
|
— |
|
|
|
(1,516 |
) |
|
|
(3,050 |
) |
|
Gain on sale of stock
(Visa/MasterCard) |
|
|
— |
|
|
|
— |
|
|
|
(22,678 |
) |
|
Core noninterest income
(non-GAAP) |
|
$ |
49,407 |
|
|
$ |
47,505 |
|
|
$ |
47,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense |
|
$ |
84,339 |
|
|
$ |
82,503 |
|
|
$ |
85,064 |
|
|
One-time items(a) |
|
|
(384 |
) |
|
|
(583 |
) |
|
|
(2,547 |
) |
|
Core noninterest
expense (non-GAAP) |
|
$ |
83,955 |
|
|
$ |
81,920 |
|
|
$ |
82,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
56,740 |
|
|
$ |
56,552 |
|
|
$ |
65,531 |
|
|
Loss (gain) on sale of
securities |
|
|
— |
|
|
|
(1,516 |
) |
|
|
(3,050 |
) |
|
Gain on sale of stock
(Visa/MasterCard) |
|
|
— |
|
|
|
— |
|
|
|
(22,678 |
) |
|
One-time items(a) |
|
|
384 |
|
|
|
583 |
|
|
|
2,547 |
|
|
Tax adjustments(b) |
|
|
(142 |
) |
|
|
382 |
|
|
|
8,723 |
|
|
Total core
adjustments |
|
|
242 |
|
|
|
(551 |
) |
|
|
(14,458 |
) |
|
Core net income
(non-GAAP) |
|
$ |
56,982 |
|
|
$ |
56,001 |
|
|
$ |
51,073 |
|
|
Core basic earnings per
share (non-GAAP) |
|
$ |
0.41 |
|
|
$ |
0.40 |
|
|
$ |
0.37 |
|
|
Core diluted earnings
per share (non-GAAP) |
|
$ |
0.41 |
|
|
$ |
0.40 |
|
|
$ |
0.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Relations Contact:
Kevin Haseyama, CFA
(808) 525-6268
khaseyama@fhb.com
Media Contact:
Susan Kam
(808) 525-6254
skam@fhb.com
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