8-K - FHB - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): **** October 22, 2021

FIRST HAWAIIAN, INC.

(Exact Name of Registrant as Specified in Its Charter)


Delaware
(State or Other Jurisdiction of Incorporation)


001-14585		99-0156159
(Commission File Number)		(IRS Employer Identification No.)


999 Bishop St. , 29th Floor
Honolulu , Hawaii		96813
(Address of Principal Executive Offices)		(Zip Code)

( 808 ) 525-7000

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	Trading Symbol(s)	Name of each exchange on which registered:
Common Stock, par value $0.01 per share	FHB	NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On October 22, 2021, First Hawaiian, Inc. (together with its consolidated subsidiary, “First Hawaiian”) reported its earnings for the quarter ended September 30, 2021. A copy of First Hawaiian’s press release containing this information is being furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

All information provided in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any filing of First Hawaiian under the Securities Act of 1933, as amended, or the Exchange Act except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits


Exhibit No.		Description

99.1		Press release of First Hawaiian, Inc. dated October 22, 2021 containing financial information for its quarter ended September 30, 2021.

104		Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Pril
	FIRST HAWAIIAN, INC.

Date: October 22, 2021	By:	/s/ Robert S. Harrison
		Robert S. Harrison
		Chairman of the Board, President and Chief Executive Officer
		(Principal Executive Officer)

EXHIBIT 99.1

For Immediate Release

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

HONOLULU, Hawaii October 22, 2021--(Globe Newswire)--First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended September 30, 2021.

“We are pleased with the bank’s solid performance in the third quarter. It was also a milestone quarter, as total assets exceeded $25 billion at quarter-end for the first time in our history,” said Bob Harrison, Chairman, President and CEO. “We had good growth in deposit balances, credit quality remained excellent, and we are seeing an increase in loan activity.”

On October 20, 2021 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on December 3, 2021 to stockholders of record at the close of business on November 22, 2021.

Third Quarter 2021 Highlights:

●	Net income of $64.3 million, or $0.50 per diluted share
●	Total loans and leases decreased $269.4 million, versus prior quarter, reflecting a $308.0 million decline in PPP loans
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●	Total deposits increased $1.3 billion versus prior quarter
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●	Recorded a $4.0 million negative provision for credit losses
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●	Board of Directors declared a quarterly dividend of $0.26 per share
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●	Repurchased $21.6 million of stock under share repurchase program
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Balance Sheet

Total assets were $25.5 billion as of September 30, 2021, compared to $24.2 billion as of June 30, 2021.

Gross loans and leases were $12.8 billion as of September 30, 2021, a decrease of $269.4 million, or 2.1%, from $13.1 billion as of June 30, 2021.

Total deposits were $22.1 billion as of September 30, 2021, an increase of $1.3 billion, or 6.2%, from $20.8 billion as of June 30, 2021.

Net Interest Income

Net interest income for the third quarter of 2021 was $132.6 million, an increase of $1.1 million, or 0.8%, compared to $131.5 million for the prior quarter.

The net interest margin (NIM) was 2.36% in the third quarter of 2021, a decrease of 10 basis points compared to 2.46% in the second quarter of 2021.

Provision Expense

During the quarter ended September 30, 2021, we recorded a $4.0 million negative provision for credit losses. In the quarter ended June 30, 2021, we recorded a $35.0 million negative provision for credit losses.

Noninterest Income

Noninterest income was $50.1 million in the third quarter of 2021, an increase of $0.7 million compared to noninterest income of $49.4 million in the second quarter of 2021.

Noninterest Expense

Noninterest expense was $101.0 million in the third quarter of 2021, an increase of $1.6 million compared to noninterest expense of $99.4 million in the second quarter of 2021.

The efficiency ratio was 55.1% and 54.7% for the quarters ended September 30, 2021 and June 30, 2021, respectively.

Taxes

The effective tax rate was 25.0% for the quarter ended September 30, 2021 and 25.5% for the quarter ended June 30, 2021.

Asset Quality

The allowance for credit losses was $161.2 million, or 1.26% of total loans and leases, as of September 30, 2021, compared to $169.1 million, or 1.29% of total loans and leases, as of June 30, 2021. The reserve for unfunded commitments was $32.5 million as of September 30, 2021 compared to $29.2 million as of June 30, 2021. Net charge-offs were $0.6 million, or 0.02% of average loans and leases on an annualized basis for the quarter ended September 30, 2021, compared to net charge-offs of $1.1 million, or 0.03% of average loans and leases on an annualized basis for the quarter ended June 30, 2021. Total non-performing assets were $8.6 million, or 0.07% of total loans and leases and other real estate owned, at September 30, 2021, compared to total non-performing assets of $8.9 million, or 0.07% of total loans and leases and other real estate owned, at June 30, 2021.

Capital

Total stockholders’ equity was $2.7 billion at both September 30, 2021 and June 30, 2021.

The tier 1 leverage, common equity tier 1 and total capital ratios were 7.39%,12.63% and 13.88%, respectively, at September 30, 2021, compared with 7.68%, 12.76% and 14.01%, respectively, at June 30, 2021.

The Company repurchased 0.8 million shares of common stock at a total cost of $21.6 million under the stock repurchase program in the third quarter. The average cost was $27.76 per share repurchased. Remaining buyback authority under the stock repurchase program was $21.5 million at September 30, 2021.

First Hawaiian, Inc.

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

Conference Call Information

First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time. To access the call, participants should dial (844) 452-2942 (US/Canada), or (574) 990-9846 (International) ten minutes prior to the start of the call and enter the conference ID: 2438538. A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location. A telephonic replay of the conference call will be available two hours after the conclusion of the call until 4:30 p.m. (Eastern Time) on October 29, 2021. Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 2438538.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Further, statements about the potential effects of the COVID-19 pandemic on our businesses and financial results and conditions may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the ongoing impacts of COVID-19, the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2020 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021.

Use of Non-GAAP Financial Measures

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

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

Return on average tangible stockholders’ equity, core return on average tangible stockholders’ equity, return on average tangible assets, core return on average tangible assets and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our core return on average tangible stockholders’ equity as the ratio of core net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our core return on average tangible assets as the ratio of core net income to average tangible assets. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP.

Tables 14 and 15 at the end of this document provide a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.


Investor Relations Contact:	Media Contact:
Kevin Haseyama, CFA	Susan Kam
(808) 525-6268	(808) 525-6254
khaseyama@fhb.com	skam@fhb.com


Financial Highlights														Table 1
	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share data)	2021		****	2021		****	2020			2021		****	2020
Operating Results:
Net interest income	$	132,593		$	131,481		$	134,002		$	393,232		$	400,507
Provision for credit losses		(4,000)			(35,000)			5,072			(39,000)			101,718
Noninterest income		50,104			49,371			48,898			143,343			143,782
Noninterest expense		101,036			99,388			91,629			296,730			279,545
Net income		64,279			86,741			65,101			208,713			124,015
Basic earnings per share		0.50			0.67			0.50			1.61			0.95
Diluted earnings per share		0.50			0.67			0.50			1.61			0.95
Dividends declared per share		0.26			0.26			0.26			0.78			0.78
Dividend payout ratio		52.00	%		38.81	%		52.00	%		48.45	%		82.11	%
Supplemental Income Statement Data (non-GAAP):
Core net interest income	$	132,593		$	131,481		$	134,002		$	393,232		$	400,507
Core noninterest income		50,104			49,269			48,874			143,241			143,884
Core noninterest expense		98,936			98,228			91,629			293,470			279,545
Core net income		65,819			87,704			65,083			211,216			124,090
Core basic earnings per share		0.51			0.68			0.50			1.63			0.96
Core diluted earnings per share		0.51			0.68			0.50			1.63			0.95
Performance Ratios^(1)^:
Net interest margin		2.36	%		2.46	%		2.70	%		2.45	%		2.79	%
Core net interest margin (non-GAAP)		2.36	%		2.46	%		2.70	%		2.45	%		2.79	%
Efficiency ratio		55.07	%		54.74	%		50.01	%		55.10	%		51.32	%
Core efficiency ratio (non-GAAP)		53.92	%		54.13	%		50.02	%		54.51	%		51.31	%
Return on average total assets		1.02	%		1.45	%		1.16	%		1.16	%		0.76	%
Core return on average total assets (non-GAAP)		1.04	%		1.46	%		1.16	%		1.18	%		0.76	%
Return on average tangible assets (non-GAAP)		1.06	%		1.51	%		1.21	%		1.21	%		0.80	%
Core return on average tangible assets (non-GAAP)^(2)^		1.09	%		1.53	%		1.21	%		1.23	%		0.80	%
Return on average total stockholders' equity		9.31	%		12.92	%		9.58	%		10.26	%		6.16	%
Core return on average total stockholders' equity (non-GAAP)		9.54	%		13.07	%		9.57	%		10.38	%		6.17	%
Return on average tangible stockholders' equity (non-GAAP)		14.63	%		20.51	%		15.16	%		16.19	%		9.79	%
Core return on average tangible stockholders’ equity (non-GAAP)^(3)^		14.98	%		20.74	%		15.15	%		16.38	%		9.80	%
Average Balances:
Average loans and leases	$	12,881,885		$	13,205,086		$	13,559,367		$	13,108,427		$	13,569,119
Average earning assets		22,533,174			21,539,264			19,846,674			21,523,731			19,174,349
Average assets		25,058,085			24,015,065			22,341,485			24,013,691			21,667,948
Average deposits		21,621,836			20,638,015			18,892,033			20,595,400			17,995,196
Average stockholders' equity		2,738,540			2,691,966			2,704,129			2,719,442			2,687,632
Market Value Per Share:
Closing		29.35			28.34			14.47			29.35			14.47
High		30.06			29.85			18.96			30.80			31.25
Low		25.75			24.75			14.32			23.14			13.56


		As of			As of			As of			As of
		September 30,			June 30,			December 31,			September 30,
(dollars in thousands, except per share data)		2021			2021			2020			2020
Balance Sheet Data:	****
Loans and leases		$	12,834,339		$	13,103,785		$	13,279,097		$	13,499,969
Total assets			25,548,322			24,246,328			22,662,831			22,310,701
Total deposits			22,120,003			20,835,115			19,227,723			18,897,762
Long-term borrowings			200,000			200,000			200,010			200,010
Total stockholders' equity			2,711,734			2,731,341			2,744,104			2,733,934

Per Share of Common Stock:
Book value		$	21.14		$	21.17		$	21.12		$	21.04
Tangible book value (non-GAAP)^(4)^			13.38			13.45			13.46			13.38

Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases			0.07	%		0.07	%		0.07	%		0.13	%
Allowance for credit losses for loans and leases / total loans and leases			1.26	%		1.29	%		1.57	%		1.45	%

Capital Ratios:
Common Equity Tier 1 Capital Ratio		****	12.63	%		12.76	%		12.47	%		12.22	%
Tier 1 Capital Ratio			12.63	%		12.76	%		12.47	%		12.22	%
Total Capital Ratio			13.88	%		14.01	%		13.73	%		13.47	%
Tier 1 Leverage Ratio			7.39	%		7.68	%		8.00	%		7.91	%
Total stockholders' equity to total assets			10.61	%		11.26	%		12.11	%		12.25	%
Tangible stockholders' equity to tangible assets (non-GAAP)			6.99	%		7.47	%		8.07	%		8.16	%

Non-Financial Data:
Number of branches			54			54			54			58
Number of ATMs			298			294			297			302
Number of Full-Time Equivalent Employees			2,025			2,087			2,103			2,099

(1)	Except for the efficiency ratio and the core efficiency ratio, amounts are annualized for the three and nine months ended September 30, 2021 and 2020 and the three months ended June 30, 2021.
(2)	Core return on average tangible assets is a non-GAAP financial measure. We compute our core return on average tangible assets as the ratio of core net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.
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(3)	Core return on average tangible stockholders’ equity is a non-GAAP financial measure. We compute our core return on average tangible stockholders’ equity as the ratio of core net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.
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(4)	Tangible book value is a non-GAAP financial measure. We compute our tangible book value as the ratio of tangible stockholders’ equity to shares outstanding. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.
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Consolidated Statements of Income	Table 2
	For the Three Months Ended						For the Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
(dollars in thousands, except per share amounts)	2021		2021		2020		2021		2020
Interest income
Loans and lease financing	$	110,765	$	110,919	$	120,940	$	332,623	$	378,209
Available-for-sale securities		25,234		24,637		20,317		73,017		59,056
Other		1,205		666		670		2,362		3,813
Total interest income		137,204		136,222		141,927		408,002		441,078
Interest expense
Deposits		3,218		3,363		6,227		10,637		30,410
Short-term and long-term borrowings		1,393		1,378		1,698		4,133		10,161
Total interest expense		4,611		4,741		7,925		14,770		40,571
Net interest income		132,593		131,481		134,002		393,232		400,507
Provision for credit losses		(4,000)		(35,000)		5,072		(39,000)		101,718
Net interest income after provision for credit losses		136,593		166,481		128,930		432,232		298,789
Noninterest income
Service charges on deposit accounts		6,989		6,632		6,523		20,339		21,400
Credit and debit card fees		16,017		16,746		14,049		47,314		39,868
Other service charges and fees		10,233		10,303		9,021		29,382		25,472
Trust and investment services income		8,625		8,707		8,664		25,824		26,919
Bank-owned life insurance		4,841		3,104		4,903		10,334		11,595
Investment securities gains (losses), net		—		102		24		102		(102)
Other		3,399		3,777		5,714		10,048		18,630
Total noninterest income		50,104		49,371		48,898		143,343		143,782
Noninterest expense
Salaries and employee benefits		46,484		45,982		44,291		136,402		131,534
Contracted services and professional fees		15,042		16,516		15,073		48,746		46,606
Occupancy		6,790		7,314		6,921		21,274		21,466
Equipment		6,549		6,362		5,137		18,402		15,052
Regulatory assessment and fees		1,828		1,826		2,445		5,688		6,491
Advertising and marketing		1,469		1,469		1,374		4,529		4,599
Card rewards program		6,676		6,262		5,046		17,773		17,224
Other		16,198		13,657		11,342		43,916		36,573
Total noninterest expense		101,036		99,388		91,629		296,730		279,545
Income before provision for income taxes		85,661		116,464		86,199		278,845		163,026
Provision for income taxes		21,382		29,723		21,098		70,132		39,011
Net income	$	64,279	$	86,741	$	65,101	$	208,713	$	124,015
Basic earnings per share	$	0.50	$	0.67	$	0.50	$	1.61	$	0.95
Diluted earnings per share	$	0.50	$	0.67	$	0.50	$	1.61	$	0.95
Basic weighted-average outstanding shares		128,660,038		129,392,339		129,896,054		129,323,973		129,882,878
Diluted weighted-average outstanding shares		129,210,448		129,828,847		130,085,534		129,895,311		130,129,690


Consolidated Balance Sheets	Table 3
	September 30,		June 30,		December 31,		September 30,
(dollars in thousands)	2021		2021		2020		2020
Assets
Cash and due from banks	$	268,467	$	347,861	$	303,373	$	333,744
Interest-bearing deposits in other banks		2,130,615		1,558,437		737,571		482,585
Investment securities, at fair value (amortized cost: $7,994,266 as of September 30, 2021, $6,951,153 as of June 30, 2021, $5,985,031 as of December 31, 2020 and $5,584,556 as of September 30, 2020)		7,953,727		6,953,930		6,071,415		5,692,883
Loans held for sale		2,052		1,241		11,579		34,669
Loans and leases		12,834,339		13,103,785		13,279,097		13,499,969
Less: allowance for credit losses		161,246		169,148		208,454		195,876
Net loans and leases		12,673,093		12,934,637		13,070,643		13,304,093

Premises and equipment, net		317,272		319,452		322,401		321,229
Accrued interest receivable		64,855		66,734		69,626		66,005
Bank-owned life insurance		468,968		466,402		466,537		462,422
Goodwill		995,492		995,492		995,492		995,492
Mortgage servicing rights		9,107		10,007		10,731		10,922
Other assets		664,674		592,135		603,463		606,657
Total assets	$	25,548,322	$	24,246,328	$	22,662,831	$	22,310,701
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing	$	13,246,579	$	12,245,193	$	11,705,609	$	11,989,492
Noninterest-bearing		8,873,424		8,589,922		7,522,114		6,908,270
Total deposits		22,120,003		20,835,115		19,227,723		18,897,762
Long-term borrowings		200,000		200,000		200,010		200,010
Retirement benefits payable		144,400		144,101		143,373		138,806
Other liabilities		372,185		335,771		347,621		340,189
Total liabilities		22,836,588		21,514,987		19,918,727		19,576,767

Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,563,799 / 128,255,570 shares as of September 30, 2021, issued/outstanding: 140,542,398 / 129,019,871 shares as of June 30, 2021, issued/outstanding: 140,191,133 / 129,912,272 shares as of December 31, 2020 and issued/outstanding: 140,190,428 / 129,911,789 shares as of September 30, 2020)		1,406		1,405		1,402		1,402
Additional paid-in capital		2,524,168		2,520,790		2,514,014		2,511,849
Retained earnings		581,094		550,511		473,974		446,315
Accumulated other comprehensive (loss) income, net		(61,463)		(29,702)		31,604		51,254
Treasury stock (12,308,229 shares as of September 30, 2021, 11,522,527 shares as of June 30, 2021, 10,278,861 shares as of December 31, 2020 and 10,278,639 shares as of September 30, 2020)		(333,471)		(311,663)		(276,890)		(276,886)
Total stockholders' equity		2,711,734		2,731,341		2,744,104		2,733,934
Total liabilities and stockholders' equity	$	25,548,322	$	24,246,328	$	22,662,831	$	22,310,701


Average Balances and Interest Rates																	Table 4
	Three Months Ended						Three Months Ended						Three Months Ended
	September 30, 2021						June 30, 2021						September 30, 2020
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	2,356.4	$	0.9	0.16	%	$	1,503.0	$	0.4	0.10	%	$	889.6	$	0.2	0.10	%
Available-for-Sale Investment Securities
Taxable		6,654.6		22.9	1.37			6,298.3		22.5	1.43			5,308.5		20.2	1.52
Non-Taxable		561.1		2.9	2.11			468.4		2.7	2.30			25.7		0.1	2.11
Total Available-for-Sale Investment Securities		7,215.7		25.8	1.43			6,766.7		25.2	1.49			5,334.2		20.3	1.53
Loans Held for Sale		2.2		—	2.39			2.0		—	1.44			10.2		0.1	2.67
Loans and Leases^(1)^
Commercial and industrial		2,367.2		19.7	3.29			2,882.1		21.1	2.94			3,230.4		21.6	2.67
Commercial real estate		3,447.0		25.4	2.92			3,419.7		25.3	2.97			3,418.0		27.8	3.23
Construction		862.4		7.0	3.24			800.9		6.3	3.15			637.6		5.2	3.22
Residential:
Residential mortgage		3,866.1		34.6	3.58			3,765.4		34.0	3.62			3,680.5		37.9	4.12
Home equity line		837.7		5.5	2.62			812.6		5.5	2.72			871.1		6.6	3.02
Consumer		1,260.2		16.8	5.28			1,277.9		16.9	5.32			1,474.4		20.2	5.46
Lease financing		241.3		2.0	3.23			246.5		1.9	3.06			247.4		1.8	2.90
Total Loans and Leases		12,881.9		111.0	3.43			13,205.1		111.0	3.37			13,559.4		121.1	3.56
Other Earning Assets		77.0		0.3	1.34			62.5		0.3	1.91			53.3		0.5	3.32
Total Earning Assets^(2)^		22,533.2		138.0	2.44			21,539.3		136.9	2.55			19,846.7		142.2	2.86
Cash and Due from Banks		290.5						290.7						307.9
Other Assets		2,234.4						2,185.1						2,186.9
Total Assets	$	25,058.1					$	24,015.1					$	22,341.5

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	6,886.0	$	0.6	0.03	%	$	6,361.8	$	0.5	0.03	%		5,768.3	$	0.6	0.04	%
Money Market		3,957.1		0.5	0.05			3,783.1		0.5	0.06			3,288.2		0.4	0.05
Time		1,884.4		2.1	0.45			2,034.5		2.3	0.45			3,029.8		5.2	0.69
Total Interest-Bearing Deposits		12,727.5		3.2	0.10			12,179.4		3.3	0.11			12,086.3		6.2	0.20
Short-Term Borrowings		—		—	—			—		—	—			45.1		0.3	2.69
Long-Term Borrowings		200.0		1.4	2.76			200.0		1.4	2.76			200.0		1.4	2.77
Total Interest-Bearing Liabilities		12,927.5		4.6	0.14			12,379.4		4.7	0.15			12,331.4		7.9	0.26
Net Interest Income			$	133.4					$	132.2					$	134.3
Interest Rate Spread					2.30	%					2.40	%					2.60	%
Net Interest Margin					2.36	%					2.46	%					2.70	%
Noninterest-Bearing Demand Deposits		8,894.3						8,458.6						6,805.7
Other Liabilities		497.7						485.1						500.3
Stockholders' Equity		2,738.6						2,692.0						2,704.1
Total Liabilities and Stockholders' Equity	$	25,058.1					$	24,015.1					$	22,341.5

(1)	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
(2)	Interest income includes taxable-equivalent basis adjustments of $0.8 million, $0.7 million and $0.3 million for the three months ended September 30, 2021, June 30, 2021 and September 30, 2020, respectively.
---	---


Average Balances and Interest Rates											Table 5
	Nine Months Ended						Nine Months Ended
	September 30, 2021						September 30, 2020
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	1,604.6	$	1.5	0.13	%	$	947.3	$	2.2	0.31	%
Available-for-Sale Investment Securities
Taxable		6,303.5		67.5	1.43			4,579.8		59.0	1.72
Non-Taxable		436.9		6.9	2.11			8.9		0.1	2.11
Total Available-for-Sale Investment Securities		6,740.4		74.4	1.47			4,588.7		59.1	1.72
Loans Held for Sale		4.4		0.1	2.31			11.9		0.2	2.31
Loans and Leases^(1)^
Commercial and industrial		2,756.2		61.2	2.97			3,202.4		70.5	2.94
Commercial real estate		3,417.5		75.6	2.96			3,423.9		90.7	3.54
Construction		803.8		19.2	3.19			586.9		15.8	3.59
Residential:
Residential mortgage		3,776.5		103.3	3.65			3,700.8		111.3	4.01
Home equity line		824.1		16.7	2.71			881.2		21.1	3.20
Consumer		1,287.1		51.4	5.34			1,537.5		63.9	5.55
Lease financing		243.2		5.7	3.10			236.4		5.1	2.90
Total Loans and Leases		13,108.4		333.1	3.39			13,569.1		378.4	3.72
Other Earning Assets		65.9		0.8	1.65			57.3		1.6	3.78
Total Earning Assets^(2)^		21,523.7		409.9	2.54			19,174.3		441.5	3.07
Cash and Due from Banks		291.7						310.1
Other Assets		2,198.3						2,183.5
Total Assets	$	24,013.7					$	21,667.9

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	6,410.9	$	1.7	0.04	%	$	5,454.7	$	4.7	0.12	%
Money Market		3,758.3		1.5	0.05			3,208.1		6.1	0.25
Time		2,067.7		7.4	0.48			2,966.9		19.6	0.88
Total Interest-Bearing Deposits		12,236.9		10.6	0.12			11,629.7		30.4	0.35
Short-Term Borrowings		—		—	—			279.9		6.0	2.87
Long-Term Borrowings		200.0		4.2	2.76			200.0		4.2	2.77
Total Interest-Bearing Liabilities		12,436.9		14.8	0.16			12,109.6		40.6	0.45
Net Interest Income			$	395.1					$	400.9
Interest Rate Spread					2.38	%					2.62	%
Net Interest Margin					2.45	%					2.79	%
Noninterest-Bearing Demand Deposits		8,358.5						6,365.5
Other Liabilities		498.9						505.2
Stockholders' Equity		2,719.4						2,687.6
Total Liabilities and Stockholders' Equity	$	24,013.7					$	21,667.9

(1)	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
(2)	Interest income includes taxable-equivalent basis adjustments of $1.9 million and $0.4 million for the nine months ended September 30, 2021 and 2020, respectively.
---	---


Analysis of Change in Net Interest Income						Table 6
	Three Months Ended September 30, 2021
	Compared to June 30, 2021
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	0.2	$	0.3	$	0.5
Available-for-Sale Investment Securities
Taxable		1.3		(0.9)		0.4
Non-Taxable		0.5		(0.3)		0.2
Total Available-for-Sale Investment Securities		1.8		(1.2)		0.6
Loans and Leases
Commercial and industrial		(3.9)		2.5		(1.4)
Commercial real estate		0.3		(0.2)		0.1
Construction		0.5		0.2		0.7
Residential:
Residential mortgage		1.0		(0.4)		0.6
Home equity line		0.2		(0.2)		—
Consumer		(0.1)		—		(0.1)
Lease financing		—		0.1		0.1
Total Loans and Leases		(2.0)		2.0		—
Other Earning Assets		0.1		(0.1)		—
Total Change in Interest Income		0.1		1.0		1.1

Change in Interest Expense:
Interest-Bearing Deposits
Savings		0.1		—		0.1
Time		(0.2)		—		(0.2)
Total Interest-Bearing Deposits		(0.1)		—		(0.1)
Total Change in Interest Expense		(0.1)		—		(0.1)
Change in Net Interest Income	$	0.2	$	1.0	$	1.2


Analysis of Change in Net Interest Income						Table 7
	Three Months Ended September 30, 2021
	Compared to September 30, 2020
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	0.5	$	0.2	$	0.7
Available-for-Sale Investment Securities
Taxable		4.8		(2.1)		2.7
Non-Taxable		2.8		—		2.8
Total Available-for-Sale Investment Securities		7.6		(2.1)		5.5
Loans Held for Sale		(0.1)		—		(0.1)
Loans and Leases
Commercial and industrial		(6.3)		4.4		(1.9)
Commercial real estate		0.2		(2.6)		(2.4)
Construction		1.8		—		1.8
Residential:
Residential mortgage		1.8		(5.1)		(3.3)
Home equity line		(0.2)		(0.9)		(1.1)
Consumer		(2.8)		(0.6)		(3.4)
Lease financing		—		0.2		0.2
Total Loans and Leases		(5.5)		(4.6)		(10.1)
Other Earning Assets		0.1		(0.3)		(0.2)
Total Change in Interest Income		2.6		(6.8)		(4.2)

Change in Interest Expense:
Interest-Bearing Deposits
Savings		0.1		(0.1)		—
Money Market		0.1		—		0.1
Time		(1.6)		(1.5)		(3.1)
Total Interest-Bearing Deposits		(1.4)		(1.6)		(3.0)
Short-Term Borrowings		(0.2)		(0.1)		(0.3)
Total Change in Interest Expense		(1.6)		(1.7)		(3.3)
Change in Net Interest Income	$	4.2	$	(5.1)	$	(0.9)


Analysis of Change in Net Interest Income						Table 8
	Nine Months Ended September 30, 2021
	Compared to September 30, 2020
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	1.0	$	(1.7)	$	(0.7)
Available-for-Sale Investment Securities
Taxable		19.6		(11.1)		8.5
Non-Taxable		6.8		—		6.8
Total Available-for-Sale Investment Securities		26.4		(11.1)		15.3
Loans Held for Sale		(0.1)		—		(0.1)
Loans and Leases
Commercial and industrial		(10.0)		0.7		(9.3)
Commercial real estate		(0.2)		(14.9)		(15.1)
Construction		5.3		(1.9)		3.4
Residential:
Residential mortgage		2.2		(10.2)		(8.0)
Home equity line		(1.3)		(3.1)		(4.4)
Consumer		(10.1)		(2.4)		(12.5)
Lease financing		0.2		0.4		0.6
Total Loans and Leases		(13.9)		(31.4)		(45.3)
Other Earning Assets		0.2		(1.0)		(0.8)
Total Change in Interest Income		13.6		(45.2)		(31.6)

Change in Interest Expense:
Interest-Bearing Deposits
Savings		0.7		(3.7)		(3.0)
Money Market		0.9		(5.5)		(4.6)
Time		(4.9)		(7.3)		(12.2)
Total Interest-Bearing Deposits		(3.3)		(16.5)		(19.8)
Short-Term Borrowings		(3.0)		(3.0)		(6.0)
Total Change in Interest Expense		(6.3)		(19.5)		(25.8)
Change in Net Interest Income	$	19.9	$	(25.7)	$	(5.8)


Loans and Leases											Table 9
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)	2021		****	2021		****	2020		****	2020
Commercial and industrial:
Commercial and industrial excluding Paycheck Protection Program loans	$	1,692,315		$	1,753,444	****	$	2,218,266		$	2,250,094
Paycheck Protection Program loans		503,069			811,103			801,241			920,168
Total commercial and industrial		2,195,384			2,564,547			3,019,507			3,170,262
Commercial real estate		3,569,768			3,528,068			3,392,676			3,461,085
Construction		826,078			853,865			735,819			662,871
Residential:
Residential mortgage		3,914,632			3,821,407			3,690,218			3,669,051
Home equity line		852,074			825,368			841,624			864,789
Total residential		4,766,706			4,646,775			4,531,842			4,533,840
Consumer		1,238,714			1,267,559			1,353,842			1,425,934
Lease financing		237,689			242,971			245,411			245,977
Total loans and leases	$	12,834,339		$	13,103,785		$	13,279,097		$	13,499,969


Deposits											Table 10
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)	2021		****	2021		****	2020		****	2020
Demand	$	8,873,424		$	8,589,922		$	7,522,114		$	6,908,270
Savings		7,347,079			6,421,053			6,020,075			5,994,687
Money Market		4,019,250			3,920,477			3,337,236			3,379,985
Time		1,880,250			1,903,663			2,348,298			2,614,820
Total Deposits	$	22,120,003		$	20,835,115		$	19,227,723		$	18,897,762


Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More											Table 11
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)	2021		****	2021		****	2020		****	2020
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial	$	746		$	828		$	518		$	725
Commercial real estate		745			937			80			7,067
Construction		—			—			2,043			2,043
Total Commercial Loans		1,491			1,765			2,641			9,835
Residential Loans:
Residential mortgage		7,137			7,140			6,441			7,798
Total Residential Loans		7,137			7,140			6,441			7,798
Total Non-Accrual Loans and Leases		8,628			8,905			9,082			17,633
Total Non-Performing Assets	$	8,628		$	8,905		$	9,082		$	17,633

Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial	$	439		$	494		$	2,108		$	1,938
Commercial real estate		—			—			882			1,307
Construction		—			60			93			100
Total Commercial Loans		439			554			3,083			3,345
Residential Loans:
Residential mortgage		100			—			—			—
Home equity line		3,871			4,680			4,818			4,503
Total Residential Loans		3,971			4,680			4,818			4,503
Consumer		1,376			1,134			3,266			2,897
Total Accruing Loans and Leases Past Due 90 Days or More	$	5,786		$	6,368		$	11,167		$	10,745

Restructured Loans on Accrual Status and Not Past Due 90 Days or More	$	36,234		$	36,668		$	16,684		$	9,726
Total Loans and Leases	$	12,834,339		$	13,103,785		$	13,279,097		$	13,499,969


Allowance for Credit Losses														Table 12
	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
(dollars in thousands)	2021			2021		****	2020		****	2021			2020		****
Balance at Beginning of Period	$	169,148		$	200,366		$	192,120		$	208,454		$	130,530
Adjustment to Adopt ASC Topic 326		—			—			—			—			770
After Adoption of ASC Topic 326		169,148			200,366			192,120			208,454			131,300
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial		(224)			(330)			(598)			(1,517)			(14,773)
Commercial real estate		—			—			—			(66)			(2,723)
Construction		—			—			—			—			(379)
Total Commercial Loans		(224)			(330)			(598)			(1,583)			(17,875)
Residential Loans:
Residential mortgage		—			—			—			(98)			(14)
Home equity line		(235)			—			—			(235)			(8)
Total Residential Loans		(235)			—			—			(333)			(22)
Consumer		(2,926)			(3,917)			(4,238)			(13,384)			(21,742)
Total Loans and Leases Charged-Off		(3,385)			(4,247)			(4,836)			(15,300)			(39,639)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial		121			287			1,699			623			2,019
Commercial real estate		15			12			—			30			—
Construction		—			—			30			166			170
Total Commercial Loans		136			299			1,729			819			2,189
Residential Loans:
Residential mortgage		215			14			27			246			179
Home equity line		27			38			16			89			146
Total Residential Loans		242			52			43			335			325
Consumer		2,405			2,797			3,148			7,857			7,687
Total Recoveries on Loans and Leases Previously Charged-Off		2,783			3,148			4,920			9,011			10,201
Net Loans and Leases (Charged-Off) Recovered		(602)			(1,099)			84			(6,289)			(29,438)
Provision for Credit Losses - Loans and Leases		(7,300)			(30,119)			3,672			(40,919)			94,014
Balance at End of Period	$	161,246		$	169,148		$	195,876		$	161,246		$	195,876
Average Loans and Leases Outstanding	$	12,881,885		$	13,205,086		$	13,559,367		$	13,108,427		$	13,569,119
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding^(1)^		0.02	%		0.03	%		—	%		0.06	%		0.29	%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding		1.26	%		1.29	%		1.45	%		1.26	%		1.45	%

(1)	Annualized for the three and nine months ended September 30, 2021 and 2020 and three months ended June 30, 2021.


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)	2021		2020		2019		2018		2017		Prior		Cost Basis		Cost Basis		Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass	$	633,079	$	172,147	$	162,921	$	128,968	$	31,439	$	194,494	$	578,257	$	21,767	$	1,923,072
Special Mention		5,421		4,709		104,973		4,083		1,069		4,292		23,127		289		147,963
Substandard		371		1,663		2,102		13,874		97		8,285		19,162		1,307		46,861
Other ^(1)^		10,257		7,897		8,955		5,364		2,740		573		41,702		—		77,488
Total Commercial and Industrial		649,128		186,416		278,951		152,289		35,345		207,644		662,248		23,363		2,195,384

Commercial Real Estate
Risk rating:
Pass		493,286		342,433		578,079		522,123		429,840		967,286		59,685		—		3,392,732
Special Mention		—		1,472		48,916		16,054		28,264		56,319		7,604		—		158,629
Substandard		—		—		—		1,907		258		15,578		502		—		18,245
Other ^(1)^		—		—		—		—		—		162		—		—		162
Total Commercial Real Estate		493,286		343,905		626,995		540,084		458,362		1,039,345		67,791		—		3,569,768

Construction
Risk rating:
Pass		57,368		94,127		285,960		151,714		63,031		67,670		58,013		—		777,883
Special Mention		—		—		473		708		—		359		—		—		1,540
Substandard		—		—		—		369		—		850		—		—		1,219
Other ^(1)^		19,268		10,753		4,367		4,955		2,710		2,581		802		—		45,436
Total Construction		76,636		104,880		290,800		157,746		65,741		71,460		58,815		—		826,078

Lease Financing
Risk rating:
Pass		26,419		64,989		53,457		10,371		15,819		58,940		—		—		229,995
Special Mention		523		282		501		182		27		201		—		—		1,716
Substandard		—		2,720		1,506		225		1,037		490		—		—		5,978
Total Lease Financing		26,942		67,991		55,464		10,778		16,883		59,631		—		—		237,689

Total Commercial Lending	$	1,245,992	$	703,192	$	1,252,210	$	860,897	$	576,331	$	1,378,080	$	788,854	$	23,363	$	6,828,919


															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
(continued)													Amortized		Amortized
(dollars in thousands)	2021		2020		2019		2018		2017		Prior		Cost Basis		Cost Basis		Total
Residential Lending
Residential Mortgage
FICO:
740 and greater	$	804,889	$	661,402	$	306,706	$	209,819	$	270,664	$	879,063	$	—	$	—	$	3,132,543
680 - 739		104,415		79,553		52,470		36,440		40,109		141,178		—		—		454,165
620 - 679		14,479		11,825		6,941		5,683		10,341		41,481		—		—		90,750
550 - 619		231		818		193		2,059		1,428		7,378		—		—		12,107
Less than 550		—		—		—		490		2,533		3,127		—		—		6,150
No Score ^(3)^		13,307		8,559		15,727		20,112		18,265		46,312		—		—		122,282
Other ^(2)^		18,701		17,823		10,835		11,779		18,988		17,737		625		147		96,635
Total Residential Mortgage		956,022		779,980		392,872		286,382		362,328		1,136,276		625		147		3,914,632

Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		637,131		2,220		639,351
680 - 739		—		—		—		—		—		—		150,452		3,485		153,937
620 - 679		—		—		—		—		—		—		38,987		1,709		40,696
550 - 619		—		—		—		—		—		—		10,433		1,473		11,906
Less than 550		—		—		—		—		—		—		2,260		70		2,330
No Score ^(3)^		—		—		—		—		—		—		3,854		—		3,854
Total Home Equity Line		—		—		—		—		—		—		843,117		8,957		852,074
Total Residential Lending		956,022		779,980		392,872		286,382		362,328		1,136,276		843,742		9,104		4,766,706

Consumer Lending
FICO:
740 and greater		130,773		88,770		88,797		65,818		30,908		11,516		107,938		245		524,765
680 - 739		72,447		63,996		65,105		41,209		21,461		8,912		68,887		717		342,734
620 - 679		27,131		28,491		33,219		22,225		15,042		6,825		30,956		1,398		165,287
550 - 619		3,181		8,735		15,408		12,262		9,546		4,829		10,150		1,177		65,288
Less than 550		341		3,200		6,116		4,665		3,196		1,757		2,983		578		22,836
No Score ^(3)^		1,155		60		81		46		77		3		34,234		420		36,076
Other ^(2)^		709		368		1,735		30		2,183		38		76,665		—		81,728
Total Consumer Lending		235,737		193,620		210,461		146,255		82,413		33,880		331,813		4,535		1,238,714

Total Loans and Leases	$	2,437,751	$	1,676,792	$	1,855,543	$	1,293,534	$	1,021,072	$	2,548,236	$	1,964,409	$	37,002	$	12,834,339

(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.
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(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.
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GAAP to Non-GAAP Reconciliation														Table 14
	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share amounts)	2021		****	2021		****	2020		****	2021		****	2020
Income Statement Data:
Net income	$	64,279		$	86,741		$	65,101		$	208,713		$	124,015
Core net income	$	65,819		$	87,704		$	65,083		$	211,216		$	124,090

Average total stockholders' equity	$	2,738,540		$	2,691,966		$	2,704,129		$	2,719,442		$	2,687,632
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible stockholders' equity	$	1,743,048		$	1,696,474		$	1,708,637		$	1,723,950		$	1,692,140

Average total assets	$	25,058,085		$	24,015,065		$	22,341,485		$	24,013,691		$	21,667,948
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible assets	$	24,062,593		$	23,019,573		$	21,345,993		$	23,018,199		$	20,672,456

Return on average total stockholders' equity^(1)^		9.31	%		12.92	%		9.58	%		10.26	%		6.16	%
Core return on average total stockholders' equity (non-GAAP)^(1)^		9.54	%		13.07	%		9.57	%		10.38	%		6.17	%
Return on average tangible stockholders' equity (non-GAAP)^(1)^		14.63	%		20.51	%		15.16	%		16.19	%		9.79	%
Core return on average tangible stockholders' equity (non-GAAP)^(1)^		14.98	%		20.74	%		15.15	%		16.38	%		9.80	%

Return on average total assets^(1)^		1.02	%		1.45	%		1.16	%		1.16	%		0.76	%
Core return on average total assets (non-GAAP)^(1)^		1.04	%		1.46	%		1.16	%		1.18	%		0.76	%
Return on average tangible assets (non-GAAP)^(1)^		1.06	%		1.51	%		1.21	%		1.21	%		0.80	%
Core return on average tangible assets (non-GAAP)^(1)^		1.09	%		1.53	%		1.21	%		1.23	%		0.80	%



	As of			As of			As of			As of
	September 30,			June 30,			December 31,			September 30,
	2021		****	2021		****	2020		****	2020
Balance Sheet Data:
Total stockholders' equity	$	2,711,734		$	2,731,341		$	2,744,104		$	2,733,934
Less: goodwill		995,492			995,492			995,492			995,492
Tangible stockholders' equity	$	1,716,242		$	1,735,849		$	1,748,612		$	1,738,442

Total assets	$	25,548,322		$	24,246,328		$	22,662,831		$	22,310,701
Less: goodwill		995,492			995,492			995,492			995,492
Tangible assets	$	24,552,830		$	23,250,836		$	21,667,339		$	21,315,209

Shares outstanding		128,255,570			129,019,871			129,912,272			129,911,789

Total stockholders' equity to total assets		10.61	%		11.26	%		12.11	%		12.25	%
Tangible stockholders' equity to tangible assets (non-GAAP)		6.99	%		7.47	%		8.07	%		8.16	%

Book value per share	$	21.14		$	21.17		$	21.12		$	21.04
Tangible book value per share (non-GAAP)	$	13.38		$	13.45		$	13.46		$	13.38

(1)	Annualized for the three and nine months ended September 30, 2021 and 2020 and three months ended June 30, 2021.


GAAP to Non-GAAP Reconciliation														Table 15
	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share amounts)	2021			2021		****	2020		****	2021		****	2020
Net interest income	$	132,593		$	131,481		$	134,002		$	393,232		$	400,507
Core net interest income (non-GAAP)	$	132,593		$	131,481		$	134,002		$	393,232		$	400,507

Noninterest income	$	50,104		$	49,371		$	48,898		$	143,343		$	143,782
(Gains) losses on sale of securities		—			(102)			(24)			(102)			102
Core noninterest income (non-GAAP)	$	50,104		$	49,269		$	48,874		$	143,241		$	143,884

Noninterest expense	$	101,036		$	99,388		$	91,629		$	296,730		$	279,545
Loss on litigation		(2,100)			—			—			(2,100)			—
One-time items^(1)^		—			(1,160)			—			(1,160)			—
Core noninterest expense (non-GAAP)	$	98,936		$	98,228		$	91,629		$	293,470		$	279,545

Net income	$	64,279		$	86,741		$	65,101		$	208,713		$	124,015
(Gains) losses on sale of securities		—			(102)			(24)			(102)			102
Loss on litigation		2,100			—			—			2,100			—
One-time noninterest expense items^(1)^		—			1,160			—			1,160			—
Tax adjustments^(2)^		(560)			(95)			6			(655)			(27)
Total core adjustments		1,540			963			(18)			2,503			75
Core net income (non-GAAP)	$	65,819		$	87,704		$	65,083		$	211,216		$	124,090

Basic earnings per share	$	0.50		$	0.67		$	0.50		$	1.61		$	0.95
Diluted earnings per share	$	0.50		$	0.67		$	0.50		$	1.61		$	0.95
Efficiency ratio		55.07	%		54.74	%		50.01	%		55.10	%		51.32	%

Core basic earnings per share (non-GAAP)	$	0.51		$	0.68		$	0.50		$	1.63		$	0.96
Core diluted earnings per share (non-GAAP)	$	0.51		$	0.68		$	0.50		$	1.63		$	0.95
Core efficiency ratio (non-GAAP)		53.92	%		54.13	%		50.02	%		54.51	%		51.31	%

(1)	One-time items consisted of severance costs.
(2)	Represents the adjustments to net income, tax effected at the Company’s effective tax rate for the respective period.
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