FHB First Hawaiian Inc

First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended March 31, 2024.

“I’m pleased to report that we started 2024 with a solid first quarter,” said Bob Harrison, Chairman, President, and CEO. “We had strong earnings, continued excellent credit quality and continued to grow our capital levels.” 

On April 24, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on May 31, 2024, to stockholders of record at the close of business on May 20, 2024.

First Quarter 2024 Highlights:

• Net income of $54.2 million, or $0.42 per diluted share
• Total loans and leases decreased $33.3 million versus prior quarter
• Total deposits decreased $663.2 million versus prior quarter
• Net interest margin increased 10 basis points to 2.91%
• Recorded a $6.3 million provision for credit losses
• $4.1 million FDIC special assessment included in expenses
• Board of Directors declared a quarterly dividend of $0.26 per share

Balance SheetTotal assets were $24.3 billion as of March 31, 2024, a decrease of $647.3 million, or 2.6%, from $24.9 billion as of December 31, 2023.

Gross loans and leases were $14.3 billion as of March 31, 2024, a decrease of $33.3 million, or 0.2%, from $14.4 billion as of December 31, 2023.

Total deposits were $20.7 billion as of March 31, 2024, a decrease of $663.2 million, or 3.1%, from $21.3 billion as of December 31, 2023.

Net Interest IncomeNet interest income for the first quarter of 2024 was $154.4 million, an increase of $2.6 million, or 1.7%, compared to $151.8 million for the prior quarter.

The net interest margin was 2.91% in the first quarter of 2024, an increase of 10 basis points compared to 2.81% in the prior quarter.

Provision ExpenseDuring the quarter ended March 31, 2024, we recorded a $6.3 million provision for credit losses. In the quarter ended December 31, 2023, we recorded a $5.3 million provision for credit losses.

Noninterest IncomeNoninterest income was $51.4 million in the first quarter of 2024, a decrease of $7.0 million compared to noninterest income of $58.3 million in the prior quarter.

Noninterest ExpenseNoninterest expense was $128.8 million in the first quarter of 2024, a decrease of $13.5 million compared to noninterest expense of $142.3 million in the prior quarter.

The efficiency ratio was 62.2% and 67.3% for the quarters ended March 31, 2024 and December 31, 2023, respectively.

TaxesThe effective tax rate was 23.3% and 24.0% for the quarters ended March 31, 2024 and December 31, 2023, respectively.

Asset QualityThe allowance for credit losses was $159.8 million, or 1.12% of total loans and leases, as of March 31, 2024, compared to $156.5 million, or 1.09% of total loans and leases, as of December 31, 2023. The reserve for unfunded commitments was $34.8 million as of March 31, 2024 compared to $35.6 million as of December 31, 2023. Net charge-offs were $3.8 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended March 31, 2024, compared to net charge-offs of $5.8 million, or 0.16% of average loans and leases on an annualized basis, for the quarter ended December 31, 2023. Total non-performing assets were $18.0 million, or 0.13% of total loans and leases and other real estate owned, on March 31, 2024, compared to total non-performing assets of $18.6 million, or 0.13% of total loans and leases and other real estate owned, on December 31, 2023.

CapitalTotal stockholders' equity increased $27.7 million in the first quarter, and stood at $2.5 billion on March 31, 2024 and December 31, 2023.

The tier 1 leverage, common equity tier 1 and total capital ratios were 8.80%, 12.55% and 13.75%, respectively, on March 31, 2024, compared with 8.64%, 12.39% and 13.57%, respectively, on December 31, 2023.

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

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

Conference Call Information

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

To access the call by phone, please register via the following link: https://register.vevent.com/register/BIb74728f7f2a14341b3028eb985e2ddf0, 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 StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023.

Use of Non-GAAP Financial MeasuresReturn on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy.

Table 12 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.

Investor Relations Contact: Kevin Haseyama, CFA(808) 525-6268khaseyama@fhb.com

Media Contact:Lindsay Chambers(808) 525-6254lchambers@fhb.com

Financial Highlights		Table 1
		For the Three Months Ended
		March 31,			December 31,			March 31,
(dollars in thousands, except per share data)		2024			2023			2023
Operating Results:
Net interest income		$	154,427		$	151,793		$	167,247
Provision for credit losses			6,300			5,330			8,800
Noninterest income			51,371			58,347			49,023
Noninterest expense			128,813			142,307			118,567
Net income			54,220			47,502			66,818
Basic earnings per share			0.42			0.37			0.52
Diluted earnings per share			0.42			0.37			0.52
Dividends declared per share			0.26			0.26			0.26
Dividend payout ratio			61.90	%		70.27	%		50.00	%
Performance Ratios(1):
Net interest margin			2.91	%		2.81	%		3.11	%
Efficiency ratio			62.15	%		67.28	%		54.46	%
Return on average total assets			0.90	%		0.77	%		1.10	%
Return on average tangible assets (non-GAAP)(2)			0.94	%		0.81	%		1.15	%
Return on average total stockholders' equity			8.73	%		7.94	%		11.78	%
Return on average tangible stockholders' equity (non-GAAP)(2)			14.53	%		13.66	%		20.78	%
Average Balances:
Average loans and leases		$	14,312,563		$	14,349,322		$	14,079,337
Average earning assets			21,481,890			21,688,816			21,873,259
Average assets			24,187,207			24,404,727			24,548,124
Average deposits			20,571,930			20,908,221			21,468,624
Average stockholders' equity			2,496,840			2,374,669			2,299,422
Market Value Per Share:
Closing			21.96			22.86			20.63
High			23.12			23.22			28.28
Low			20.37			17.18			19.68

		As of			As of			As of
		March 31,			December 31,			March 31,
(dollars in thousands, except per share data)		2024			2023			2023
Balance Sheet Data:
Loans and leases		$	14,320,208		$	14,353,497		$	14,221,272
Total assets			24,279,186			24,926,474			24,884,207
Total deposits			20,669,481			21,332,657			21,281,500
Short-term borrowings			500,000			500,000			250,000
Long-term borrowings			—			—			500,000
Total stockholders' equity			2,513,761			2,486,066			2,329,012
Per Share of Common Stock:
Book value		$	19.66		$	19.48		$	18.26
Tangible book value (non-GAAP)(2)			11.88			11.68			10.45
Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases			0.13	%		0.13	%		0.10	%
Allowance for credit losses for loans and leases / total loans and leases			1.12	%		1.09	%		1.03	%
Capital Ratios:
Common Equity Tier 1 Capital Ratio			12.55	%		12.39	%		11.97	%
Tier 1 Capital Ratio			12.55	%		12.39	%		11.97	%
Total Capital Ratio			13.75	%		13.57	%		13.09	%
Tier 1 Leverage Ratio			8.80	%		8.64	%		8.26	%
Total stockholders' equity to total assets			10.35	%		9.97	%		9.36	%
Tangible stockholders' equity to tangible assets (non-GAAP)(2)			6.52	%		6.23	%		5.58	%
Non-Financial Data:
Number of branches			50			50			51
Number of ATMs			275			275			296
Number of Full-Time Equivalent Employees			2,065			2,089			2,100

_____________________________

(1) Except for the efficiency ratio, amounts are annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023.

(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 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)		2024			2023			2023
Interest income
Loans and lease financing		$	199,844		$	196,276		$	172,339
Available-for-sale investment securities			14,546			19,033			18,688
Held-to-maturity investment securities			17,793			17,987			18,957
Other			12,769			7,734			3,561
Total interest income			244,952			241,030			213,545
Interest expense
Deposits			84,143			82,215			43,284
Short-term and long-term borrowings			5,953			6,232			2,563
Other			429			790			451
Total interest expense			90,525			89,237			46,298
Net interest income			154,427			151,793			167,247
Provision for credit losses			6,300			5,330			8,800
Net interest income after provision for credit losses			148,127			146,463			158,447
Noninterest income
Service charges on deposit accounts			7,546			7,646			7,231
Credit and debit card fees			16,173			16,381			16,298
Other service charges and fees			9,904			9,535			9,162
Trust and investment services income			10,354			9,645			9,614
Bank-owned life insurance			4,286			5,063			5,120
Investment securities gains, net			—			792			—
Other			3,108			9,285			1,598
Total noninterest income			51,371			58,347			49,023
Noninterest expense
Salaries and employee benefits			59,262			55,882			56,032
Contracted services and professional fees			15,739			16,219			16,313
Occupancy			6,941			7,561			7,782
Equipment			13,413			12,547			9,736
Regulatory assessment and fees			8,120			20,412			3,836
Advertising and marketing			2,612			1,441			1,994
Card rewards program			8,508			7,503			8,085
Other			14,218			20,742			14,789
Total noninterest expense			128,813			142,307			118,567
Income before provision for income taxes			70,685			62,503			88,903
Provision for income taxes			16,465			15,001			22,085
Net income		$	54,220		$	47,502		$	66,818
Basic earnings per share		$	0.42		$	0.37		$	0.52
Diluted earnings per share		$	0.42		$	0.37		$	0.52
Basic weighted-average outstanding shares			127,707,354			127,612,734			127,453,820
Diluted weighted-average outstanding shares			128,217,689			128,028,964			128,033,812

Consolidated Balance Sheets		Table 3
		March 31,				December 31,				March 31,
(dollars in thousands, except share amount)		2024				2023				2023
Assets
Cash and due from banks		$	202,121			$	185,015			$	253,705
Interest-bearing deposits in other banks			1,072,145				1,554,882				611,887
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,466,109 as of March 31, 2024, $2,558,675 as of December 31, 2023 and $3,427,708 as of March 31, 2023)			2,159,338				2,255,336				3,054,280
Held-to-maturity, at amortized cost (fair value: $3,470,710 as of March 31, 2024, $3,574,856 as of December 31, 2023 and $3,824,478 as of March 31, 2023)			3,988,011				4,041,449				4,261,361
Loans held for sale			—				190				—
Loans and leases			14,320,208				14,353,497				14,221,272
Less: allowance for credit losses			159,836				156,533				147,122
Net loans and leases			14,160,372				14,196,964				14,074,150
Premises and equipment, net			281,181				281,461				278,121
Other real estate owned and repossessed personal property			—				—				91
Accrued interest receivable			85,715				84,417				79,200
Bank-owned life insurance			484,193				479,907				473,255
Goodwill			995,492				995,492				995,492
Mortgage servicing rights			5,533				5,699				6,299
Other assets			845,085				845,662				796,366
Total assets		$	24,279,186			$	24,926,474			$	24,884,207
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing		$	13,620,928			$	13,749,095			$	12,579,155
Noninterest-bearing			7,048,553				7,583,562				8,702,345
Total deposits			20,669,481				21,332,657				21,281,500
Short-term borrowings			500,000				500,000				250,000
Long-term borrowings			—				—				500,000
Retirement benefits payable			102,242				103,285				101,622
Other liabilities			493,702				504,466				422,073
Total liabilities			21,765,425				22,440,408				22,555,195
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,687,612 / 127,841,908 shares as of March 31, 2024, issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023 and issued/outstanding: 141,291,086 / 127,573,680 shares as of March 31, 2023)			1,417				1,413				1,413
Additional paid-in capital			2,551,488				2,548,250				2,540,653
Retained earnings			858,494				837,859				769,791
Accumulated other comprehensive loss, net			(523,780	)			(530,210	)			(611,679	)
Treasury stock (13,845,704 shares as of March 31, 2024, 13,721,778 shares as of December 31, 2023 and 13,717,406 shares as of March 31, 2023)			(373,858	)			(371,246	)			(371,166	)
Total stockholders' equity			2,513,761				2,486,066				2,329,012
Total liabilities and stockholders' equity		$	24,279,186			$	24,926,474			$	24,884,207

Average Balances and Interest Rates																								Table 4
		Three Months Ended								Three Months Ended								Three Months Ended
		March 31, 2024								December 31, 2023								March 31, 2023
		Average			Income/			Yield/		Average			Income/			Yield/		Average			Income/			Yield/
(dollars in millions)		Balance			Expense			Rate		Balance			Expense			Rate		Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	858.6		$	11.6		5.45	%	$	568.0		$	7.8		5.39	%	$	299.6		$	3.4		4.60	%
Available-for-Sale Investment Securities
Taxable			2,210.6			14.5		2.63			2,598.4			19.0		2.92			3,081.4			18.4		2.39
Non-Taxable			1.8			—		5.61			1.9			—		5.12			31.1			0.4		5.55
Held-to-Maturity Investment Securities
Taxable			3,416.4			14.6		1.71			3,472.1			14.8		1.70			3,683.8			15.7		1.70
Non-Taxable			603.4			4.0		2.65			603.9			3.9		2.58			612.2			4.1		2.74
Total Investment Securities			6,232.2			33.1		2.13			6,676.3			37.7		2.25			7,408.5			38.6		2.09
Loans Held for Sale			0.7			—		6.92			0.7			—		7.41			0.1			—		5.53
Loans and Leases(1)
Commercial and industrial			2,164.9			37.2		6.92			2,148.1			36.7		6.78			2,192.9			32.4		5.98
Commercial real estate			4,323.5			70.1		6.53			4,356.3			71.4		6.51			4,105.7			58.3		5.76
Construction			924.7			17.4		7.55			888.7			16.7		7.45			873.9			14.7		6.83
Residential:
Residential mortgage			4,264.1			42.0		3.94			4,294.8			38.8		3.61			4,307.0			38.4		3.57
Home equity line			1,172.1			12.0		4.13			1,174.8			11.3		3.83			1,074.9			8.7		3.27
Consumer			1,083.5			18.1		6.71			1,132.4			18.4		6.43			1,213.5			17.2		5.75
Lease financing			379.8			3.7		3.91			354.2			3.6		4.03			311.4			3.1		4.10
Total Loans and Leases			14,312.6			200.5		5.63			14,349.3			196.9		5.45			14,079.3			172.8		4.96
Other Earning Assets			77.8			1.2		5.90			94.5			—		0.06			85.8			0.2		0.76
Total Earning Assets(2)			21,481.9			246.4		4.61			21,688.8			242.4		4.44			21,873.3			215.0		3.97
Cash and Due from Banks			244.3								240.8								286.1
Other Assets			2,461.0								2,475.1								2,388.7
Total Assets		$	24,187.2							$	24,404.7							$	24,548.1
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings		$	6,059.7		$	23.4		1.56	%	$	6,067.2		$	22.4		1.46	%		6,354.3		$	13.9		0.89	%
Money Market			3,944.9			28.8		2.94			3,905.0			27.5		2.79			3,853.5			14.3		1.50
Time			3,325.3			31.9		3.86			3,390.7			32.3		3.78			2,515.6			15.1		2.44
Total Interest-Bearing Deposits			13,329.9			84.1		2.54			13,362.9			82.2		2.44			12,723.4			43.3		1.38
Federal Funds Purchased			—			—		—			—			—		—			67.1			0.7		4.43
Other Short-Term Borrowings			500.0			6.0		4.79			515.2			6.2		4.80			52.8			0.7		5.02
Long-Term Borrowings			—			—		—			—			—		—			105.5			1.2		4.52
Other Interest-Bearing Liabilities			33.0			0.4		5.22			42.1			0.8		7.44			42.8			0.4		4.27
Total Interest-Bearing Liabilities			13,862.9			90.5		2.63			13,920.2			89.2		2.54			12,991.6			46.3		1.45
Net Interest Income					$	155.9							$	153.2							$	168.7
Interest Rate Spread(3)								1.98	%							1.90	%							2.52	%
Net Interest Margin(4)								2.91	%							2.81	%							3.11	%
Noninterest-Bearing Demand Deposits			7,242.0								7,545.3								8,745.2
Other Liabilities			585.5								564.5								511.9
Stockholders' Equity			2,496.8								2,374.7								2,299.4
Total Liabilities and Stockholders' Equity		$	24,187.2							$	24,404.7							$	24,548.1

_____________________________

(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 $1.5 million, $1.4 million and $1.4 million for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

(3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.

(4) Net interest margin is net interest income annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, on a fully taxable-equivalent basis, divided by average total earning assets.

Analysis of Change in Net Interest Income											Table 5
		Three Months Ended March 31, 2024
		Compared to December 31, 2023
(dollars in millions)		Volume				Rate				Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	3.8			$	—			$	3.8
Available-for-Sale Investment Securities
Taxable			(2.7	)			(1.8	)			(4.5	)
Held-to-Maturity Investment Securities
Taxable			(0.3	)			0.1				(0.2	)
Non-Taxable			—				0.1				0.1
Total Investment Securities			(3.0	)			(1.6	)			(4.6	)
Loans and Leases
Commercial and industrial			0.1				0.4				0.5
Commercial real estate			(1.2	)			(0.1	)			(1.3	)
Construction			0.5				0.2				0.7
Residential:
Residential mortgage			(0.3	)			3.5				3.2
Home equity line			—				0.7				0.7
Consumer			(0.9	)			0.6				(0.3	)
Lease financing			0.2				(0.1	)			0.1
Total Loans and Leases			(1.6	)			5.2				3.6
Other Earning Assets			—				1.2				1.2
Total Change in Interest Income			(0.8	)			4.8				4.0
Change in Interest Expense:
Interest-Bearing Deposits
Savings			(0.1	)			1.1				1.0
Money Market			0.2				1.1				1.3
Time			(0.8	)			0.4				(0.4	)
Total Interest-Bearing Deposits			(0.7	)			2.6				1.9
Other Short-Term Borrowings			(0.2	)			—				(0.2	)
Other Interest-Bearing Liabilities			(0.2	)			(0.2	)			(0.4	)
Total Change in Interest Expense			(1.1	)			2.4				1.3
Change in Net Interest Income		$	0.3			$	2.4			$	2.7

Analysis of Change in Net Interest Income											Table 6
		Three Months Ended March 31, 2024
		Compared to March 31, 2023
(dollars in millions)		Volume				Rate				Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	7.5			$	0.7			$	8.2
Available-for-Sale Investment Securities
Taxable			(5.6	)			1.7				(3.9	)
Non-Taxable			(0.4	)			—				(0.4	)
Held-to-Maturity Investment Securities
Taxable			(1.2	)			0.1				(1.1	)
Non-Taxable			—				(0.1	)			(0.1	)
Total Investment Securities			(7.2	)			1.7				(5.5	)
Loans and Leases
Commercial and industrial			(0.4	)			5.2				4.8
Commercial real estate			3.3				8.5				11.8
Construction			1.0				1.7				2.7
Residential:
Residential mortgage			(0.4	)			4.0				3.6
Home equity line			0.8				2.5				3.3
Consumer			(1.9	)			2.8				0.9
Lease financing			0.7				(0.1	)			0.6
Total Loans and Leases			3.1				24.6				27.7
Other Earning Assets			—				1.0				1.0
Total Change in Interest Income			3.4				28.0				31.4
Change in Interest Expense:
Interest-Bearing Deposits
Savings			(0.7	)			10.2				9.5
Money Market			0.3				14.2				14.5
Time			6.0				10.8				16.8
Total Interest-Bearing Deposits			5.6				35.2				40.8
Federal Funds Purchased			(0.3	)			(0.4	)			(0.7	)
Other Short-Term Borrowings			5.3				—				5.3
Long-Term Borrowings			(0.6	)			(0.6	)			(1.2	)
Other Interest-Bearing Liabilities			(0.1	)			0.1				—
Total Change in Interest Expense			9.9				34.3				44.2
Change in Net Interest Income		$	(6.5	)		$	(6.3	)		$	(12.8	)

Loans and Leases									Table 7
		March 31,			December 31,			March 31,
(dollars in thousands)		2024			2023			2023
Commercial and industrial		$	2,189,875		$	2,165,349		$	2,268,332
Commercial real estate			4,301,300			4,340,243			4,106,200
Construction			972,517			900,292			913,959
Residential:
Residential mortgage			4,242,502			4,283,315			4,318,742
Home equity line			1,165,778			1,174,588			1,095,365
Total residential			5,408,280			5,457,903			5,414,107
Consumer			1,054,227			1,109,901			1,191,552
Lease financing			394,009			379,809			327,122
Total loans and leases		$	14,320,208		$	14,353,497		$	14,221,272

Deposits									Table 8
		March 31,			December 31,			March 31,
(dollars in thousands)		2024			2023			2023
Demand		$	7,048,553		$	7,583,562		$	8,702,345
Savings			6,277,679			6,445,084			6,173,398
Money Market			4,059,204			3,847,853			3,818,355
Time			3,284,045			3,456,158			2,587,402
Total Deposits		$	20,669,481		$	21,332,657		$	21,281,500

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)		2024			2023			2023
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial		$	942		$	970		$	1,158
Commercial real estate			2,953			2,953			727
Total Commercial Loans			3,895			3,923			1,885
Residential Loans:
Residential mortgage			7,777			7,620			6,896
Home equity line			6,345			7,052			4,903
Total Residential Loans			14,122			14,672			11,799
Total Non-Accrual Loans and Leases			18,017			18,595			13,684
Other Real Estate Owned			—			—			91
Total Non-Performing Assets		$	18,017		$	18,595		$	13,775
Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial		$	529		$	494		$	461
Commercial real estate			—			300			1,346
Construction			606			—			102
Total Commercial Loans			1,135			794			1,909
Residential mortgage			359			—			58
Consumer			2,126			2,702			2,502
Total Accruing Loans and Leases Past Due 90 Days or More		$	3,620		$	3,496		$	4,469
Total Loans and Leases		$	14,320,208		$	14,353,497		$	14,221,272

Allowance for Credit Losses and Reserve for Unfunded Commitments		Table 10
		For the Three Months Ended
		March 31,				December 31,				March 31,
(dollars in thousands)		2024				2023				2023
Balance at Beginning of Period		$	192,138			$	192,570			$	177,735
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial			(909	)			(910	)			(791	)
Commercial real estate			—				(2,500	)			—
Total Commercial Loans			(909	)			(3,410	)			(791	)
Residential Loans:
Residential mortgage			—				—				(122	)
Home equity line			—				(20	)			(135	)
Total Residential Loans			—				(20	)			(257	)
Consumer			(4,854	)			(4,147	)			(4,782	)
Total Loans and Leases Charged-Off			(5,763	)			(7,577	)			(5,830	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial and industrial			211				171				246
Residential Loans:
Residential mortgage			30				31				27
Home equity line			44				163				177
Total Residential Loans			74				194				204
Consumer			1,689				1,450				2,166
Total Recoveries on Loans and Leases Previously Charged-Off			1,974				1,815				2,616
Net Loans and Leases Charged-Off			(3,789	)			(5,762	)			(3,214	)
Provision for Credit Losses			6,300				5,330				8,800
Balance at End of Period		$	194,649			$	192,138			$	183,321
Components:
Allowance for Credit Losses		$	159,836			$	156,533			$	147,122
Reserve for Unfunded Commitments			34,813				35,605				36,199
Total Allowance for Credit Losses and Reserve for Unfunded Commitments		$	194,649			$	192,138			$	183,321
Average Loans and Leases Outstanding		$	14,312,563			$	14,349,322			$	14,079,337
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)			0.11		%		0.16		%		0.09		%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding			1.12		%		1.09		%		1.03		%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases			8.87x				8.42x				10.75x

_____________________________

(1) Annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023.

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			Loans
																				Amortized			Amortized
(dollars in thousands)		2024			2023			2022			2021			2020			Prior			Cost Basis			Cost Basis			Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass		$	13,488		$	104,265		$	263,282		$	318,417		$	29,787		$	282,287		$	987,132		$	26,745		$	2,025,403
Special Mention			202			1			23,276			73			539			1,385			8,132			—			33,608
Substandard			—			—			20,364			214			572			2,191			25,638			—			48,979
Other (1)			4,887			12,883			10,053			4,044			1,970			2,396			45,652			—			81,885
Total Commercial and Industrial			18,577			117,149			316,975			322,748			32,868			288,259			1,066,554			26,745			2,189,875
Current period gross charge-offs			—			71			114			61			52			611			—			—			909
Commercial Real Estate
Risk rating:
Pass			28,321			344,674			864,166			671,379			334,606			1,866,875			93,485			4,223			4,207,729
Special Mention			3,339			2,290			7,591			41,337			1,358			18,507			6,863			—			81,285
Substandard			—			—			5,047			1,203			—			5,244			652			—			12,146
Other (1)			—			—			—			—			—			140			—			—			140
Total Commercial Real Estate			31,660			346,964			876,804			713,919			335,964			1,890,766			101,000			4,223			4,301,300
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Construction
Risk rating:
Pass			14,198			181,628			311,175			258,400			59,563			65,776			11,872			—			902,612
Special Mention			—			—			—			—			—			837			—			—			837
Substandard			—			—			—			—			—			24,437			—			—			24,437
Other (1)			859			12,258			17,492			6,373			1,357			5,588			704			—			44,631
Total Construction			15,057			193,886			328,667			264,773			60,920			96,638			12,576			—			972,517
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Lease Financing
Risk rating:
Pass			50,531			114,686			78,028			17,488			28,946			97,319			—			—			386,998
Special Mention			—			51			125			377			20			—			—			—			573
Substandard			5,370			676			392			—			—			—			—			—			6,438
Total Lease Financing			55,901			115,413			78,545			17,865			28,966			97,319			—			—			394,009
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Total Commercial Lending		$	121,195		$	773,412		$	1,600,991		$	1,319,305		$	458,718		$	2,372,982		$	1,180,130		$	30,968		$	7,857,701
Current period gross charge-offs		$	—		$	71		$	114		$	61		$	52		$	611		$	—		$	—		$	909

																							Revolving
																							Loans
																							Converted
		Term Loans																		Revolving			to Term
		Amortized Cost Basis by Origination Year																		Loans			Loans
(continued)																				Amortized			Amortized
(dollars in thousands)		2024			2023			2022			2021			2020			Prior			Cost Basis			Cost Basis			Total
Residential Lending
Residential Mortgage
FICO:
740 and greater		$	28,332		$	207,263		$	524,402		$	987,343		$	521,598		$	1,186,496		$	—		$	—		$	3,455,434
680 - 739			1,525			36,569			67,192			115,481			67,662			158,890			—			—			447,319
620 - 679			910			2,910			16,268			19,056			12,733			41,573			—			—			93,450
550 - 619			—			1,303			6,506			1,903			2,477			11,685			—			—			23,874
Less than 550			—			—			—			2,894			2,006			6,686			—			—			11,586
No Score (3)			—			9,081			20,505			11,400			6,006			58,777			—			—			105,769
Other (2)			1,419			13,320			16,937			15,740			12,088			32,590			12,976			—			105,070
Total Residential Mortgage			32,186			270,446			651,810			1,153,817			624,570			1,496,697			12,976			—			4,242,502
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Home Equity Line
FICO:
740 and greater			—			—			—			—			—			—			943,792			1,428			945,220
680 - 739			—			—			—			—			—			—			162,578			1,886			164,464
620 - 679			—			—			—			—			—			—			33,728			927			34,655
550 - 619			—			—			—			—			—			—			13,382			971			14,353
Less than 550			—			—			—			—			—			—			5,392			296			5,688
No Score (3)			—			—			—			—			—			—			1,398			—			1,398
Total Home Equity Line			—			—			—			—			—			—			1,160,270			5,508			1,165,778
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Total Residential Lending		$	32,186		$	270,446		$	651,810		$	1,153,817		$	624,570		$	1,496,697		$	1,173,246		$	5,508		$	5,408,280
Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Consumer Lending
FICO:
740 and greater			18,671			82,551			113,914			66,175			28,100			22,442			116,198			138			448,189
680 - 739			13,464			64,229			64,623			33,167			14,755			13,951			75,151			439			279,779
620 - 679			4,293			28,729			27,210			15,641			6,793			10,003			35,179			791			128,639
550 - 619			620			6,973			11,551			7,621			4,025			6,289			13,452			795			51,326
Less than 550			110			2,634			6,734			5,075			2,837			4,179			5,782			646			27,997
No Score (3)			733			839			209			—			9			16			39,466			256			41,528
Other (2)			—			304			349			960			330			1,032			73,794			—			76,769
Total Consumer Lending		$	37,891		$	186,259		$	224,590		$	128,639		$	56,849		$	57,912		$	359,022		$	3,065		$	1,054,227
Current period gross charge-offs		$	—		$	437		$	904		$	496		$	272		$	769		$	1,789		$	187		$	4,854
Total Loans and Leases		$	191,272		$	1,230,117		$	2,477,391		$	2,601,761		$	1,140,137		$	3,927,591		$	2,712,398		$	39,541		$	14,320,208
Current period gross charge-offs		$	—		$	508		$	1,018		$	557		$	324		$	1,380		$	1,789		$	187		$	5,763

_____________________________

(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)		2024			2023			2023
Income Statement Data:
Net income		$	54,220		$	47,502		$	66,818
Average total stockholders' equity		$	2,496,840		$	2,374,669		$	2,299,422
Less: average goodwill			995,492			995,492			995,492
Average tangible stockholders' equity		$	1,501,348		$	1,379,177		$	1,303,930
Average total assets		$	24,187,207		$	24,404,727		$	24,548,124
Less: average goodwill			995,492			995,492			995,492
Average tangible assets		$	23,191,715		$	23,409,235		$	23,552,632
Return on average total stockholders' equity(1)			8.73	%		7.94	%		11.78	%
Return on average tangible stockholders' equity (non-GAAP)(1)			14.53	%		13.66	%		20.78	%
Return on average total assets(1)			0.90	%		0.77	%		1.10	%
Return on average tangible assets (non-GAAP)(1)			0.94	%		0.81	%		1.15	%

		As of			As of			As of
		March 31,			December 31,			March 31,
(dollars in thousands, except per share amounts)		2024			2023			2023
Balance Sheet Data:
Total stockholders' equity		$	2,513,761		$	2,486,066		$	2,329,012
Less: goodwill			995,492			995,492			995,492
Tangible stockholders' equity		$	1,518,269		$	1,490,574		$	1,333,520
Total assets		$	24,279,186		$	24,926,474		$	24,884,207
Less: goodwill			995,492			995,492			995,492
Tangible assets		$	23,283,694		$	23,930,982		$	23,888,715
Shares outstanding			127,841,908			127,618,761			127,573,680
Total stockholders' equity to total assets			10.35	%		9.97	%		9.36	%
Tangible stockholders' equity to tangible assets (non-GAAP)			6.52	%		6.23	%		5.58	%
Book value per share		$	19.66		$	19.48		$	18.26
Tangible book value per share (non-GAAP)		$	11.88		$	11.68		$	10.45

_____________________________

(1) Annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023.