FHB First Hawaiian Inc

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

“I’m pleased to report that we finished 2024 with a very strong quarter that was highlighted by good performance across our key earnings drivers. Our loan and deposit balances grew, net interest margin expanded, expenses were well controlled and credit quality remained excellent. We also maintained our commitment to supporting our communities with a $1 million contribution to the First Hawaiian Foundation,” said Bob Harrison, Chairman, President, and CEO. “During the fourth quarter we took action to strengthen our balance sheet and increase our future earnings power by restructuring a portion of our investment portfolio. This action, along with the positive trends we saw in the fourth quarter, positions us very well entering 2025.” 

On January 29, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on February 28, 2025, to stockholders of record at the close of business on February 14, 2025.

Additionally, the Company’s Board of Directors adopted a stock repurchase program for up to $100.0 million of its outstanding common stock during 2025.

Fourth Quarter 2024 Highlights:

• Restructured a portion of the investment portfolio by selling $290.4 million of low-yielding investment securities and reinvested the sale proceeds into $291.5 million of higher-yielding securities. Recognized a $26.2 million pre-tax ($19.2 million after-tax) loss on the sale of securities.
• Net income of $52.5 million, or $0.41 per diluted share
• Total loans and leases increased $166.9 million versus prior quarter
• Total deposits increased $94.5 million versus prior quarter
• Net interest margin increased 8 basis points to 3.03%
• Recorded a $0.8 million negative provision for credit losses
• Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet

Total assets were $23.8 billion at December 31, 2024 and September 30, 2024.

Gross loans and leases were $14.4 billion as of December 31, 2024, an increase of $166.9 million, or 1.2%, from $14.2 billion as of September 30, 2024.

Total deposits were $20.3 billion as of December 31, 2024, an increase of $94.5 million, or 0.5%, from $20.2 billion as of September 30, 2024.

Net Interest Income

Net interest income for the fourth quarter of 2024 was $158.8 million, an increase of $2.0 million, or 1.3%, compared to $156.7 million for the prior quarter.

The net interest margin was 3.03% in the fourth quarter of 2024, an increase of 8 basis points compared to 2.95% in the prior quarter.

Provision Expense

During the quarter ended December 31, 2024, we recorded a $0.8 million negative provision for credit losses. In the quarter ended September 30, 2024, we recorded a $7.4 million provision for credit losses.

Noninterest Income

Noninterest income was $29.4 million in the fourth quarter of 2024, a decrease of $23.9 million compared to noninterest income of $53.3 million in the prior quarter. Noninterest income in the fourth quarter of 2024 included a $26.2 million loss on the sale of investment securities.

Noninterest Expense

Noninterest expense was $124.1 million in the fourth quarter of 2024, a decrease of $2.0 million compared to noninterest expense of $126.1 million in the prior quarter.

The efficiency ratio was 65.5% and 59.8% for the quarters ended December 31, 2024 and September 30, 2024, respectively.

Taxes

The effective tax rate was 18.9% and 19.6% for the quarters ended December 31, 2024 and September 30, 2024, respectively.

Asset Quality

The allowance for credit losses was $160.4 million, or 1.11% of total loans and leases, as of December 31, 2024, compared to $163.7 million, or 1.15% of total loans and leases, as of September 30, 2024. The reserve for unfunded commitments was $32.8 million as of December 31, 2024, compared to $33.7 million as of September 30, 2024. Net charge-offs were $3.4 million, or 0.09% of average loans and leases on an annualized basis, for the quarter ended December 31, 2024, compared to net charge-offs of $3.9 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended September 30, 2024. Total non-performing assets were $20.7 million, or 0.14% of total loans and leases and other real estate owned, on December 31, 2024, compared to total non-performing assets of $17.8 million, or 0.13% of total loans and leases and other real estate owned, on September 30, 2024.

Capital

Total stockholders' equity was $2.6 billion on December 31, 2024 and September 30, 2024.

The tier 1 leverage, common equity tier 1 and total capital ratios were 9.14%, 12.80% and 13.99%, respectively, on December 31, 2024, compared with 9.14%, 13.03% and 14.25%, respectively, on September 30, 2024.

The Company repurchased 1.5 million shares of common stock at a total cost of $40.0 million under the stock repurchase program in the fourth quarter. The average cost was $27.14 per share repurchased. Total repurchases in 2024 were $40.0 million.

As to the stock repurchase program approved for 2025, repurchases of shares of the Company’s common stock may be conducted through open-market purchases, which may include purchases under a trading plan adopted pursuant to Securities and Exchange Commission Rule 10b5-1, or through privately negotiated transactions. The timing and exact amount of share repurchases, if any, will be subject to management’s discretion and various factors, including the Company’s capital position and financial performance, as well as market conditions. The repurchase program may be suspended, terminated or modified at any time for any reason.

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, 8:00 a.m. Hawaii Time.

To access the call by phone, please register via the following link: https://register.vevent.com/register/BI80003c73e95b445aa5fe62db794097bb, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024.

Use of Non-GAAP Financial Measures

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

Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.

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

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

Financial Highlights		Table 1
		For the Three Months Ended												For the Year Ended
		December 31,				September 30,				December 31,				December 31,
(dollars in thousands, except per share data)		2024				2024				2023				2024				2023
Operating Results:
Net interest income		$	158,753			$	156,707			$	151,793			$	622,738			$	636,127
(Benefit) provision for credit losses			(750	)			7,400				5,330				14,750				26,630
Noninterest income			29,376				53,288				58,347				185,803				200,815
Noninterest expense			124,143				126,147				142,307				501,189				501,138
Net income			52,496				61,492				47,502				230,129				234,983
Basic earnings per share			0.41				0.48				0.37				1.80				1.84
Diluted earnings per share			0.41				0.48				0.37				1.79				1.84
Dividends declared per share			0.26				0.26				0.26				1.04				1.04
Dividend payout ratio			63.41	%			54.17	%			70.27	%			58.10	%			56.52	%
Performance Ratios(1):
Net interest margin			3.03	%			2.95	%			2.81	%			2.95	%			2.92	%
Efficiency ratio			65.51	%			59.77	%			67.28	%			61.57	%			59.48	%
Return on average total assets			0.88	%			1.02	%			0.77	%			0.96	%			0.95	%
Return on average tangible assets (non-GAAP)(2)			0.92	%			1.06	%			0.81	%			1.00	%			0.99	%
Return on average total stockholders' equity			7.94	%			9.45	%			7.94	%			9.00	%			10.01	%
Return on average tangible stockholders' equity (non-GAAP)(2)			12.78	%			15.35	%			13.66	%			14.74	%			17.39	%
Average Balances:
Average loans and leases		$	14,276,107			$	14,304,806			$	14,349,322			$	14,312,759			$	14,266,291
Average earning assets			21,079,951				21,328,882				21,688,816				21,284,169				21,952,009
Average assets			23,795,735				24,046,696				24,404,727				23,996,723				24,625,445
Average deposits			20,249,573				20,367,805				20,908,221				20,373,975				21,160,155
Average stockholders' equity			2,629,600				2,588,806				2,374,669				2,557,215				2,346,713
Market Value Per Share:
Closing			25.95				23.15				22.86				25.95				22.86
High			28.80				26.18				23.22				28.80				28.28
Low			22.08				20.28				17.18				19.48				15.08

		As of				As of				As of
		December 31,				September 30,				December 31,
(dollars in thousands, except per share data)		2024				2024				2023
Balance Sheet Data:
Loans and leases		$	14,408,258			$	14,241,370			$	14,353,497
Total assets			23,828,186				23,780,285				24,926,474
Total deposits			20,322,216				20,227,702				21,332,657
Short-term borrowings			250,000				250,000				500,000
Total stockholders' equity			2,617,486				2,648,034				2,486,066
Per Share of Common Stock:
Book value		$	20.70			$	20.71			$	19.48
Tangible book value (non-GAAP)(2)			12.83				12.92				11.68
Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases			0.14	%			0.13	%			0.13	%
Allowance for credit losses for loans and leases / total loans and leases			1.11	%			1.15	%			1.09	%
Capital Ratios:
Common Equity Tier 1 Capital Ratio			12.80	%			13.03	%			12.39	%
Tier 1 Capital Ratio			12.80	%			13.03	%			12.39	%
Total Capital Ratio			13.99	%			14.25	%			13.57	%
Tier 1 Leverage Ratio			9.14	%			9.14	%			8.64	%
Total stockholders' equity to total assets			10.98	%			11.14	%			9.97	%
Tangible stockholders' equity to tangible assets (non-GAAP)(2)			7.10	%			7.25	%			6.23	%
Non-Financial Data:
Number of branches			48				48				50
Number of ATMs			273				273				275
Number of Full-Time Equivalent Employees			1,997				2,022				2,089

(1) Except for the efficiency ratio, amounts are annualized for the three months ended December 31, 2024, September 30, 2024 and December 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 14, GAAP to Non-GAAP Reconciliation.

Consolidated Statements of Income		Table 2
		For the Three Months Ended												For the Year Ended
		December 31,				September 30,				December 31,				December 31,
(dollars in thousands, except per share amounts)		2024				2024				2023				2024				2023
Interest income
Loans and lease financing		$	198,347			$	205,682			$	196,276			$	805,941			$	748,053
Available-for-sale investment securities			12,767				12,850				19,033				54,306				74,241
Held-to-maturity investment securities			17,071				16,937				17,987				69,376				73,497
Other			11,977				14,527				7,734				50,421				27,788
Total interest income			240,162				249,996				241,030				980,044				923,579
Interest expense
Deposits			78,465				87,500				82,215				335,717				258,221
Short-term and long-term borrowings			2,685				5,397				6,232				19,988				26,289
Other			259				392				790				1,601				2,942
Total interest expense			81,409				93,289				89,237				357,306				287,452
Net interest income			158,753				156,707				151,793				622,738				636,127
(Benefit) provision for credit losses			(750	)			7,400				5,330				14,750				26,630
Net interest income after (benefit) provision for credit losses			159,503				149,307				146,463				607,988				609,497
Noninterest income
Service charges on deposit accounts			7,968				7,783				7,646				31,090				29,647
Credit and debit card fees			14,834				17,533				16,381				64,401				63,888
Other service charges and fees			13,132				11,790				9,535				45,862				37,299
Trust and investment services income			9,449				9,077				9,645				38,306				38,449
Bank-owned life insurance			5,713				4,502				5,063				17,861				15,326
Investment securities (losses) gains, net			(26,171	)			—				792				(26,171	)			792
Other			4,451				2,603				9,285				14,454				15,414
Total noninterest income			29,376				53,288				58,347				185,803				200,815
Noninterest expense
Salaries and employee benefits			59,003				59,563				55,882				235,565				225,755
Contracted services and professional fees			14,472				14,634				16,219				60,912				66,423
Occupancy			7,708				6,945				7,561				28,971				29,608
Equipment			14,215				13,078				12,547				53,902				45,109
Regulatory assessment and fees			3,745				3,412				20,412				19,091				32,073
Advertising and marketing			1,529				1,813				1,441				7,719				7,615
Card rewards program			7,926				8,678				7,503				33,831				31,627
Other			15,545				18,024				20,742				61,198				62,928
Total noninterest expense			124,143				126,147				142,307				501,189				501,138
Income before provision for income taxes			64,736				76,448				62,503				292,602				309,174
Provision for income taxes			12,240				14,956				15,001				62,473				74,191
Net income		$	52,496			$	61,492			$	47,502			$	230,129			$	234,983
Basic earnings per share		$	0.41			$	0.48			$	0.37			$	1.80			$	1.84
Diluted earnings per share		$	0.41			$	0.48			$	0.37			$	1.79			$	1.84
Basic weighted-average outstanding shares			127,350,626				127,886,167				127,612,734				127,702,573				127,567,547
Diluted weighted-average outstanding shares			128,167,502				128,504,035				128,028,964				128,325,865				127,915,873

Consolidated Balance Sheets		Table 3
		December 31,				September 30,				December 31,
(dollars in thousands, except share amount)		2024				2024				2023
Assets
Cash and due from banks		$	258,057			$	252,209			$	185,015
Interest-bearing deposits in other banks			912,133				820,603				1,554,882
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,190,448 as of December 31, 2024, $2,290,781 as of September 30, 2024 and $2,558,675 as of December 31, 2023)			1,926,516				2,055,959				2,255,336
Held-to-maturity, at amortized cost (fair value: $3,262,509 as of December 31, 2024, $3,475,143 as of September 30, 2024 and $3,574,856 as of December 31, 2023)			3,790,650				3,853,697				4,041,449
Loans held for sale			—				—				190
Loans and leases			14,408,258				14,241,370				14,353,497
Less: allowance for credit losses			160,393				163,700				156,533
Net loans and leases			14,247,865				14,077,670				14,196,964
Premises and equipment, net			288,530				287,036				281,461
Accrued interest receivable			79,979				81,875				84,417
Bank-owned life insurance			491,890				490,135				479,907
Goodwill			995,492				995,492				995,492
Mortgage servicing rights			5,078				5,236				5,699
Other assets			831,996				860,373				845,662
Total assets		$	23,828,186			$	23,780,285			$	24,926,474
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing		$	13,347,068			$	13,427,674			$	13,749,095
Noninterest-bearing			6,975,148				6,800,028				7,583,562
Total deposits			20,322,216				20,227,702				21,332,657
Short-term borrowings			250,000				250,000				500,000
Retirement benefits payable			97,135				100,448				103,285
Other liabilities			541,349				554,101				504,466
Total liabilities			21,210,700				21,132,251				22,440,408
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,748,847 / 126,422,898 shares as of December 31, 2024, issued/outstanding: 141,735,601 / 127,886,167 shares as of September 30, 2024 and issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023)			1,417				1,417				1,413
Additional paid-in capital			2,560,380				2,558,158				2,548,250
Retained earnings			934,048				915,062				837,859
Accumulated other comprehensive loss, net			(463,994	)			(452,658	)			(530,210	)
Treasury stock (15,325,949 shares as of December 31, 2024, 13,849,434 shares as of September 30, 2024 and 13,721,778 shares as of December 31, 2023)			(414,365	)			(373,945	)			(371,246	)
Total stockholders' equity			2,617,486				2,648,034				2,486,066
Total liabilities and stockholders' equity		$	23,828,186			$	23,780,285			$	24,926,474

Average Balances and Interest Rates																								Table 4
		Three Months Ended								Three Months Ended								Three Months Ended
		December 31, 2024								September 30, 2024								December 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		$	948.9		$	11.3		4.75	%	$	1,020.4		$	13.9		5.40	%	$	568.0		$	7.8		5.39	%
Available-for-Sale Investment Securities
Taxable			1,987.7			12.7		2.56			2,062.6			12.8		2.48			2,598.4			19.0		2.92
Non-Taxable			1.4			—		5.30			1.5			—		5.06			1.9			—		5.12
Held-to-Maturity Investment Securities
Taxable			3,224.8			13.9		1.72			3,288.2			13.8		1.67			3,472.1			14.8		1.70
Non-Taxable			601.7			3.9		2.56			602.3			3.7		2.46			603.9			3.9		2.58
Total Investment Securities			5,815.6			30.5		2.10			5,954.6			30.3		2.03			6,676.3			37.7		2.25
Loans Held for Sale			1.3			—		5.75			2.2			—		5.64			0.7			—		7.41
Loans and Leases(1)
Commercial and industrial			2,157.8			35.2		6.50			2,165.3			38.0		6.98			2,148.1			36.7		6.78
Commercial real estate			4,333.1			68.9		6.33			4,278.3			71.6		6.67			4,356.3			71.4		6.51
Construction			990.7			17.4		6.99			1,040.7			20.3		7.74			888.7			16.7		7.45
Residential:
Residential mortgage			4,183.5			40.8		3.90			4,204.5			40.4		3.84			4,294.8			38.8		3.61
Home equity line			1,157.1			13.3		4.55			1,158.5			13.2		4.52			1,174.8			11.3		3.83
Consumer			1,033.2			19.0		7.29			1,035.3			18.7		7.19			1,132.4			18.4		6.43
Lease financing			420.7			4.4		4.18			422.2			4.0		3.72			354.2			3.6		4.03
Total Loans and Leases			14,276.1			199.0		5.55			14,304.8			206.2		5.74			14,349.3			196.9		5.45
Other Earning Assets			38.1			0.7		6.73			46.9			0.7		5.83			94.5			—		0.06
Total Earning Assets(2)			21,080.0			241.5		4.56			21,328.9			251.1		4.69			21,688.8			242.4		4.44
Cash and Due from Banks			226.2								242.3								240.8
Other Assets			2,489.5								2,475.5								2,475.1
Total Assets		$	23,795.7							$	24,046.7							$	24,404.7
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings		$	5,940.3		$	21.1		1.42	%	$	5,963.1		$	23.6		1.57	%	$	6,067.2		$	22.4		1.46	%
Money Market			4,053.6			26.6		2.61			4,179.5			31.9		3.04			3,905.0			27.5		2.79
Time			3,362.0			30.8		3.64			3,327.3			32.0		3.83			3,390.7			32.3		3.78
Total Interest-Bearing Deposits			13,355.9			78.5		2.34			13,469.9			87.5		2.58			13,362.9			82.2		2.44
Other Short-Term Borrowings			250.0			2.7		4.27			451.1			5.4		4.76			515.2			6.2		4.80
Other Interest-Bearing Liabilities			25.3			0.2		4.07			22.4			0.4		6.97			42.1			0.8		7.44
Total Interest-Bearing Liabilities			13,631.2			81.4		2.38			13,943.4			93.3		2.66			13,920.2			89.2		2.54
Net Interest Income					$	160.1							$	157.8							$	153.2
Interest Rate Spread(3)								2.18	%							2.03	%							1.90	%
Net Interest Margin(4)								3.03	%							2.95	%							2.81	%
Noninterest-Bearing Demand Deposits			6,893.7								6,897.9								7,545.3
Other Liabilities			641.2								616.6								564.5
Stockholders' Equity			2,629.6								2,588.8								2,374.7
Total Liabilities and Stockholders' Equity		$	23,795.7							$	24,046.7							$	24,404.7

(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 $1.4 million, $1.1 million and $1.4 million for the three months ended December 31, 2024, September 30, 2024 and December 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 December 31, 2024, September 30, 2024 and December 31, 2023, on a fully taxable-equivalent basis, divided by average total earning assets.

Average Balances and Interest Rates																				Table 5
		Year Ended										Year Ended
		December 31, 2024										December 31, 2023
		Average				Income/				Yield/		Average				Income/				Yield/
(dollars in millions)		Balance				Expense				Rate		Balance				Expense				Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	900.8			$	47.3			5.25	%	$	512.3			$	26.5			5.18	%
Available-for-Sale Investment Securities
Taxable			2,090.0				54.2			2.60			2,871.8				73.8			2.57
Non-Taxable			1.5				0.1			5.45			10.2				0.6			5.55
Held-to-Maturity Investment Securities
Taxable			3,321.6				56.6			1.70			3,579.0				60.7			1.70
Non-Taxable			602.6				15.6			2.58			607.7				15.9			2.61
Total Investment Securities			6,015.7				126.5			2.10			7,068.7				151.0			2.14
Loans Held for Sale			1.3				0.1			6.02			0.4				—			6.63
Loans and Leases(1)
Commercial and industrial			2,172.4				148.6			6.84			2,182.3				141.0			6.46
Commercial real estate			4,310.1				282.3			6.55			4,257.9				266.0			6.25
Construction			985.4				73.5			7.46			877.7				62.1			7.08
Residential:
Residential mortgage			4,220.2				163.4			3.87			4,308.0				156.4			3.63
Home equity line			1,162.9				51.0			4.39			1,131.1				39.3			3.47
Consumer			1,051.5				73.4			6.98			1,178.6				71.5			6.07
Lease financing			410.3				16.3			3.98			330.7				14.1			4.26
Total Loans and Leases			14,312.8				808.5			5.65			14,266.3				750.4			5.26
Other Earning Assets			53.6				3.1			5.88			104.3				1.3			1.20
Total Earning Assets(2)			21,284.2				985.5			4.63			21,952.0				929.2			4.23
Cash and Due from Banks			238.3										265.1
Other Assets			2,474.2										2,408.3
Total Assets		$	23,996.7									$	24,625.4
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings		$	5,990.7			$	91.6			1.53	%	$	6,124.7			$	71.5			1.17	%
Money Market			4,064.0				117.8			2.90			3,869.1				86.1			2.22
Time			3,324.8				126.3			3.80			3,040.0				100.6			3.31
Total Interest-Bearing Deposits			13,379.5				335.7			2.51			13,033.8				258.2			1.98
Federal Funds Purchased			—				—			—			17.2				0.8			4.45
Other Short-Term Borrowings			424.9				20.0			4.70			261.9				13.0			4.98
Long-Term Borrowings			—				—			—			261.6				12.5			4.78
Other Interest-Bearing Liabilities			29.6				1.6			5.39			57.1				3.0			5.15
Total Interest-Bearing Liabilities			13,834.0				357.3			2.58			13,631.6				287.5			2.11
Net Interest Income						$	628.2									$	641.7
Interest Rate Spread(3)										2.05	%									2.12	%
Net Interest Margin(4)										2.95	%									2.92	%
Noninterest-Bearing Demand Deposits			6,994.5										8,126.4
Other Liabilities			611.0										520.7
Stockholders' Equity			2,557.2										2,346.7
Total Liabilities and Stockholders' Equity		$	23,996.7									$	24,625.4

(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 $5.4 million and $5.6 million for the years ended December 31, 2024 and 2023, respectively.

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

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

Analysis of Change in Net Interest Income											Table 6
		Three Months Ended December 31, 2024
		Compared to September 30, 2024
(dollars in millions)		Volume				Rate				Total (1)
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	(1.0	)		$	(1.6	)		$	(2.6	)
Available-for-Sale Investment Securities
Taxable			(0.5	)			0.4				(0.1	)
Held-to-Maturity Investment Securities
Taxable			(0.3	)			0.4				0.1
Non-Taxable			—				0.2				0.2
Total Investment Securities			(0.8	)			1.0				0.2
Loans and Leases
Commercial and industrial			(0.1	)			(2.7	)			(2.8	)
Commercial real estate			0.9				(3.6	)			(2.7	)
Construction			(1.0	)			(1.9	)			(2.9	)
Residential:
Residential mortgage			(0.2	)			0.6				0.4
Home equity line			—				0.1				0.1
Consumer			—				0.3				0.3
Lease financing			—				0.4				0.4
Total Loans and Leases			(0.4	)			(6.8	)			(7.2	)
Other Earning Assets			(0.1	)			0.1				—
Total Change in Interest Income			(2.3	)			(7.3	)			(9.6	)
Change in Interest Expense:
Interest-Bearing Deposits
Savings			(0.1	)			(2.4	)			(2.5	)
Money Market			(0.9	)			(4.4	)			(5.3	)
Time			0.3				(1.5	)			(1.2	)
Total Interest-Bearing Deposits			(0.7	)			(8.3	)			(9.0	)
Other Short-Term Borrowings			(2.2	)			(0.5	)			(2.7	)
Other Interest-Bearing Liabilities			—				(0.2	)			(0.2	)
Total Change in Interest Expense			(2.9	)			(9.0	)			(11.9	)
Change in Net Interest Income		$	0.6			$	1.7			$	2.3

(1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

Analysis of Change in Net Interest Income											Table 7
		Three Months Ended December 31, 2024
		Compared to December 31, 2023
(dollars in millions)		Volume				Rate				Total (1)
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	4.6			$	(1.1	)		$	3.5
Available-for-Sale Investment Securities
Taxable			(4.1	)			(2.2	)			(6.3	)
Held-to-Maturity Investment Securities
Taxable			(1.1	)			0.2				(0.9	)
Total Investment Securities			(5.2	)			(2.0	)			(7.2	)
Loans and Leases
Commercial and industrial			0.1				(1.6	)			(1.5	)
Commercial real estate			(0.4	)			(2.1	)			(2.5	)
Construction			1.8				(1.1	)			0.7
Residential:
Residential mortgage			(1.0	)			3.0				2.0
Home equity line			(0.1	)			2.1				2.0
Consumer			(1.7	)			2.3				0.6
Lease financing			0.7				0.1				0.8
Total Loans and Leases			(0.6	)			2.7				2.1
Other Earning Assets			—				0.7				0.7
Total Change in Interest Income			(1.2	)			0.3				(0.9	)
Change in Interest Expense:
Interest-Bearing Deposits
Savings			(0.6	)			(0.7	)			(1.3	)
Money Market			1.0				(1.9	)			(0.9	)
Time			(0.2	)			(1.3	)			(1.5	)
Total Interest-Bearing Deposits			0.2				(3.9	)			(3.7	)
Other Short-Term Borrowings			(2.9	)			(0.6	)			(3.5	)
Other Interest-Bearing Liabilities			(0.3	)			(0.3	)			(0.6	)
Total Change in Interest Expense			(3.0	)			(4.8	)			(7.8	)
Change in Net Interest Income		$	1.8			$	5.1			$	6.9

(1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

Analysis of Change in Net Interest Income											Table 8
		Year Ended December 31, 2024
		Compared to December 31, 2023
(dollars in millions)		Volume				Rate				Total (1)
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	20.4			$	0.4			$	20.8
Available-for-Sale Investment Securities
Taxable			(20.4	)			0.8				(19.6	)
Non-Taxable			(0.5	)			—				(0.5	)
Held-to-Maturity Investment Securities
Taxable			(4.1	)			—				(4.1	)
Non-Taxable			(0.1	)			(0.2	)			(0.3	)
Total Investment Securities			(25.1	)			0.6				(24.5	)
Loans Held for Sale			0.1				—				0.1
Loans and Leases
Commercial and industrial			(0.7	)			8.3				7.6
Commercial real estate			3.3				13.0				16.3
Construction			7.9				3.5				11.4
Residential:
Residential mortgage			(3.2	)			10.2				7.0
Home equity line			1.1				10.6				11.7
Consumer			(8.2	)			10.1				1.9
Lease financing			3.2				(1.0	)			2.2
Total Loans and Leases			3.4				54.7				58.1
Other Earning Assets			(0.9	)			2.7				1.8
Total Change in Interest Income			(2.1	)			58.4				56.3
Change in Interest Expense:
Interest-Bearing Deposits
Savings			(1.6	)			21.7				20.1
Money Market			4.5				27.2				31.7
Time			10.0				15.7				25.7
Total Interest-Bearing Deposits			12.9				64.6				77.5
Federal Funds Purchased			(0.4	)			(0.4	)			(0.8	)
Other Short-Term Borrowings			7.7				(0.7	)			7.0
Long-Term Borrowings			(6.3	)			(6.2	)			(12.5	)
Other Interest-Bearing Liabilities			(1.5	)			0.1				(1.4	)
Total Change in Interest Expense			12.4				57.4				69.8
Change in Net Interest Income		$	(14.5	)		$	1.0			$	(13.5	)

(1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

Loans and Leases											Table 9
		December 31,				September 30,				December 31,
(dollars in thousands)		2024				2024				2023
Commercial and industrial		$	2,247,428			$	2,110,077			$	2,165,349
Commercial real estate			4,463,992				4,265,289				4,340,243
Construction			918,326				1,056,249				900,292
Residential:
Residential mortgage			4,168,154				4,187,060				4,283,315
Home equity line			1,151,739				1,159,823				1,174,588
Total residential			5,319,893				5,346,883				5,457,903
Consumer			1,023,969				1,030,044				1,109,901
Lease financing			434,650				432,828				379,809
Total loans and leases		$	14,408,258			$	14,241,370			$	14,353,497

Deposits											Table 10
		December 31,				September 30,				December 31,
(dollars in thousands)		2024				2024				2023
Demand		$	6,975,148			$	6,800,028			$	7,583,562
Savings			6,021,364				5,896,029				6,445,084
Money Market			4,027,334				4,129,381				3,847,853
Time			3,298,370				3,402,264				3,456,158
Total Deposits		$	20,322,216			$	20,227,702			$	21,332,657

Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More											Table 11
		December 31,				September 30,				December 31,
(dollars in thousands)		2024				2024				2023
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial		$	329			$	934			$	970
Commercial real estate			411				152				2,953
Total Commercial Loans			740				1,086				3,923
Residential Loans:
Residential mortgage			12,768				9,103				7,620
Home equity line			7,171				7,645				7,052
Total Residential Loans			19,939				16,748				14,672
Total Non-Accrual Loans and Leases			20,679				17,834				18,595
Total Non-Performing Assets		$	20,679			$	17,834			$	18,595
Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial		$	1,432			$	529			$	494
Commercial real estate			—				568				300
Construction			536				—				—
Total Commercial Loans			1,968				1,097				794
Residential mortgage			1,317				931				—
Consumer			2,734				2,515				2,702
Total Accruing Loans and Leases Past Due 90 Days or More		$	6,019			$	4,543			$	3,496
Total Loans and Leases		$	14,408,258			$	14,241,370			$	14,353,497

Allowance for Credit Losses and Reserve for Unfunded Commitments		Table 12
		For the Three Months Ended												For the Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
(dollars in thousands)		2024				2024				2023				2024				2023
Balance at Beginning of Period		$	197,397			$	193,930			$	192,570			$	192,138			$	177,735
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial			(851	)			(1,178	)			(910	)			(3,615	)			(3,482	)
Commercial real estate			—				(400	)			(2,500	)			(400	)			(2,500	)
Total Commercial Loans			(851	)			(1,578	)			(3,410	)			(4,015	)			(5,982	)
Residential Loans:
Residential mortgage			—				—				—				—				(122	)
Home equity line			—				—				(20	)			—				(292	)
Total Residential Loans			—				—				(20	)			—				(414	)
Consumer			(4,774	)			(4,192	)			(4,147	)			(18,002	)			(17,110	)
Total Loans and Leases Charged-Off			(5,625	)			(5,770	)			(7,577	)			(22,017	)			(23,506	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial and industrial			298				160				171				919				3,346
Residential Loans:
Residential mortgage			30				31				31				119				141
Home equity line			32				86				163				274				702
Total Residential Loans			62				117				194				393				843
Consumer			1,858				1,560				1,450				7,057				7,090
Total Recoveries on Loans and Leases Previously Charged-Off			2,218				1,837				1,815				8,369				11,279
Net Loans and Leases Charged-Off			(3,407	)			(3,933	)			(5,762	)			(13,648	)			(12,227	)
(Benefit) Provision for Credit Losses			(750	)			7,400				5,330				14,750				26,630
Balance at End of Period		$	193,240			$	197,397			$	192,138			$	193,240			$	192,138
Components:
Allowance for Credit Losses		$	160,393			$	163,700			$	156,533			$	160,393			$	156,533
Reserve for Unfunded Commitments			32,847				33,697				35,605				32,847				35,605
Total Allowance for Credit Losses and Reserve for Unfunded Commitments		$	193,240			$	197,397			$	192,138			$	193,240			$	192,138
Average Loans and Leases Outstanding		$	14,276,107			$	14,304,806			$	14,349,322			$	14,312,759			$	14,266,291
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)			0.09	%			0.11	%			0.16	%			0.10	%			0.09	%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding			1.11	%			1.15	%			1.09	%			1.11	%			1.09	%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases			7.76x				9.18x				8.42x				7.76x				8.42x

(1) Annualized for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023.

Loans and Leases by Year of Origination and Credit Quality Indicator																											Table 13
																							Revolving
																							Loans
																							Converted
		Term Loans																		Revolving			to Term
		Amortized Cost Basis by Origination Year																		Loans			Loans
																				Amortized			Amortized
(dollars in thousands)		2024			2023			2022			2021			2020			Prior			Cost Basis			Cost Basis			Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass		$	163,980		$	73,554		$	185,433		$	249,532		$	17,775		$	256,119		$	1,118,075		$	14,336		$	2,078,804
Special Mention			808			2,385			1,209			68			300			1,322			41,520			—			47,612
Substandard			—			—			8,096			196			309			1,114			26,089			—			35,804
Other (1)			17,132			8,928			6,937			2,797			765			1,279			47,370			—			85,208
Total Commercial and Industrial			181,920			84,867			201,675			252,593			19,149			259,834			1,233,054			14,336			2,247,428
Current period gross charge-offs			—			578			335			105			221			2,376			—			—			3,615
Commercial Real Estate
Risk rating:
Pass			322,405			369,948			832,005			634,722			308,156			1,720,243			116,682			7,703			4,311,864
Special Mention			9,014			2,252			7,510			41,399			3,265			10,860			11,861			—			86,161
Substandard			—			—			54,952			1,002			—			9,732			148			—			65,834
Other (1)			—			—			—			—			—			133			—			—			133
Total Commercial Real Estate			331,419			372,200			894,467			677,123			311,421			1,740,968			128,691			7,703			4,463,992
Current period gross charge-offs			—			—			—			—			—			400			—			—			400
Construction
Risk rating:
Pass			91,583			198,382			332,000			186,682			41,596			13,824			14,972			—			879,039
Special Mention			—			—			—			—			—			155			—			—			155
Other (1)			12,482			9,688			10,861			1,561			1,199			2,644			697			—			39,132
Total Construction			104,065			208,070			342,861			188,243			42,795			16,623			15,669			—			918,326
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Lease Financing
Risk rating:
Pass			149,615			101,684			60,898			14,328			17,703			84,663			—			—			428,891
Special Mention			—			—			—			220			—			—			—			—			220
Substandard			4,657			565			317			—			—			—			—			—			5,539
Total Lease Financing			154,272			102,249			61,215			14,548			17,703			84,663			—			—			434,650
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Total Commercial Lending		$	771,676		$	767,386		$	1,500,218		$	1,132,507		$	391,068		$	2,102,088		$	1,377,414		$	22,039		$	8,064,396
Current period gross charge-offs		$	—		$	578		$	335		$	105		$	221		$	2,776		$	—		$	—		$	4,015

																							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		$	168,067		$	187,710		$	492,845		$	946,390		$	498,443		$	1,115,557		$	—		$	—		$	3,409,012
680 - 739			18,368			34,901			65,735			103,622			57,369			138,469			—			—			418,464
620 - 679			1,726			4,380			23,556			19,355			14,058			40,471			—			—			103,546
550 - 619			—			820			6,526			7,745			4,042			13,783			—			—			32,916
Less than 550			—			734			775			2,264			1,559			6,342			—			—			11,674
No Score (3)			13,211			6,719			16,839			9,916			5,518			45,604			—			—			97,807
Other (2)			9,456			12,404			16,564			14,311			10,769			28,812			2,419			—			94,735
Total Residential Mortgage			210,828			247,668			622,840			1,103,603			591,758			1,389,038			2,419			—			4,168,154
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Home Equity Line
FICO:
740 and greater			—			—			—			—			—			—			925,749			1,652			927,401
680 - 739			—			—			—			—			—			—			161,523			1,030			162,553
620 - 679			—			—			—			—			—			—			39,235			1,220			40,455
550 - 619			—			—			—			—			—			—			13,006			416			13,422
Less than 550			—			—			—			—			—			—			5,993			563			6,556
No Score (3)			—			—			—			—			—			—			1,352			—			1,352
Total Home Equity Line			—			—			—			—			—			—			1,146,858			4,881			1,151,739
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Total Residential Lending		$	210,828		$	247,668		$	622,840		$	1,103,603		$	591,758		$	1,389,038		$	1,149,277		$	4,881		$	5,319,893
Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Consumer Lending
FICO:
740 and greater			92,329			65,738			84,007			44,192			14,607			6,897			101,938			106			409,814
680 - 739			68,371			46,533			44,504			21,829			7,652			5,278			86,935			509			281,611
620 - 679			30,618			17,728			19,942			10,252			4,195			4,152			50,544			775			138,206
550 - 619			6,108			6,768			9,312			5,702			2,574			3,106			15,641			778			49,989
Less than 550			2,012			3,950			5,572			3,594			1,591			1,830			5,311			593			24,453
No Score (3)			1,881			106			38			—			7			9			38,932			176			41,149
Other (2)			—			—			277			887			99			956			76,528			—			78,747
Total Consumer Lending		$	201,319		$	140,823		$	163,652		$	86,456		$	30,725		$	22,228		$	375,829		$	2,937		$	1,023,969
Current period gross charge-offs		$	732		$	2,055		$	2,606		$	1,388		$	676		$	2,685		$	7,168		$	692		$	18,002
Total Loans and Leases		$	1,183,823		$	1,155,877		$	2,286,710		$	2,322,566		$	1,013,551		$	3,513,354		$	2,902,520		$	29,857		$	14,408,258
Current period gross charge-offs		$	732		$	2,633		$	2,941		$	1,493		$	897		$	5,461		$	7,168		$	692		$	22,017

(1) Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score (680 and above). As of December 31, 2024, the majority of the loans in this population were current.

(2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. As of December 31, 2024, the majority of the loans in this population were current.

(3) No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.

GAAP to Non-GAAP Reconciliation		Table 14
		For the Three Months Ended												For the Year Ended
		December 31,				September 30,				December 31,				December 31,
(dollars in thousands)		2024				2024				2023				2024				2023
Income Statement Data:
Net income		$	52,496			$	61,492			$	47,502			$	230,129			$	234,983
Average total stockholders' equity		$	2,629,600			$	2,588,806			$	2,374,669			$	2,557,215			$	2,346,713
Less: average goodwill			995,492				995,492				995,492				995,492				995,492
Average tangible stockholders' equity		$	1,634,108			$	1,593,314			$	1,379,177			$	1,561,723			$	1,351,221
Average total assets		$	23,795,735			$	24,046,696			$	24,404,727			$	23,996,723			$	24,625,445
Less: average goodwill			995,492				995,492				995,492				995,492				995,492
Average tangible assets		$	22,800,243			$	23,051,204			$	23,409,235			$	23,001,231			$	23,629,953
Return on average total stockholders' equity(1)			7.94	%			9.45	%			7.94	%			9.00	%			10.01	%
Return on average tangible stockholders' equity (non-GAAP)(1)			12.78	%			15.35	%			13.66	%			14.74	%			17.39	%
Return on average total assets(1)			0.88	%			1.02	%			0.77	%			0.96	%			0.95	%
Return on average tangible assets (non-GAAP)(1)			0.92	%			1.06	%			0.81	%			1.00	%			0.99	%

		As of				As of				As of
		December 31,				September 30,				December 31,
(dollars in thousands, except per share amounts)		2024				2024				2023
Balance Sheet Data:
Total stockholders' equity		$	2,617,486			$	2,648,034			$	2,486,066
Less: goodwill			995,492				995,492				995,492
Tangible stockholders' equity		$	1,621,994			$	1,652,542			$	1,490,574
Total assets		$	23,828,186			$	23,780,285			$	24,926,474
Less: goodwill			995,492				995,492				995,492
Tangible assets		$	22,832,694			$	22,784,793			$	23,930,982
Shares outstanding			126,422,898				127,886,167				127,618,761
Total stockholders' equity to total assets			10.98	%			11.14	%			9.97	%
Tangible stockholders' equity to tangible assets (non-GAAP)			7.10	%			7.25	%			6.23	%
Book value per share		$	20.70			$	20.71			$	19.48
Tangible book value per share (non-GAAP)		$	12.83			$	12.92			$	11.68

(1) Annualized for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023.