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): **** July 24, 2020

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 July 24, 2020, First Hawaiian, Inc. (together with its consolidated subsidiary, “First Hawaiian”) reported its earnings for the quarter ended June 30, 2020. 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 July 24, 2020 containing financial information for its quarter ended June 30, 2020.

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: July 24, 2020	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 Second Quarter 2020 Financial Results and Declares Dividend

HONOLULU, Hawaii July 24, 2020--(Globe Newswire)--First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended June 30, 2020.

“I am very proud of our teams’ extraordinary efforts to manage through the pandemic’s disruption with agility and resilience while ensuring the health and safety of their co-workers, customers and community,” said Bob Harrison, Chairman, President and CEO. “During this difficult time for our local economy, we focused our efforts on creating stability by offering relief assistance to customers and support to the community. Our teams leveraged technology investments to develop an online application portal that enabled us to secure over $940 million in PPP loans for 6,000 small business customers. We also successfully launched the Aloha for Hawaii Fund, which supported the restaurant industry, and donated $1 million to non-profits for COVID-19 relief. Another $1 million was donated to the Stronger Together Fund to support the 2020 public high school graduates as they transition to the next phase of their lives.”

On July 22, 2020 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on September 4, 2020 to stockholders of record at the close of business on August 24, 2020.

Second Quarter 2020 Highlights:

●	Net income of $20.0 million, or $0.15 per diluted share
●	Total loans and leases increased $383.8 million, or 2.9%, versus prior quarter
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●	Deposits balances increased $2.3 billion, or 13.8% versus the prior quarter
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●	Net interest margin (“NIM”) was 2.58%
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●	Recorded a $55.4 million provision for credit losses
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●	Board of Directors declared a quarterly dividend of $0.26 per share
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Balance Sheet

Total assets were $23.0 billion as of June 30, 2020, compared to $20.8 billion as of March 31, 2020.

Gross loans and leases were $13.8 billion as of June 30, 2020, an increase of $383.8 million, or 2.9%, from $13.4 billion as of March 31, 2020. Loan growth was driven by Paycheck Protection Program (“PPP”) loans, partially offset by declines in other commercial loans, including shared national credits (“SNCs”) and dealer flooring loans.

Total deposits were $19.4 billion as of June 30, 2020, an increase of $2.3 billion, or 13.8%, from $17.0 billion as of March 31, 2020. The increase in deposit balances was due to growth in consumer and commercial deposits, which included a portion of PPP loan proceeds, and an increase in public deposits.

Net Interest Income

Net interest income for the second quarter of 2020 was $127.8 million, a decrease of $10.9 million, or 7.8%, compared to $138.7 million for the prior quarter.

The NIM was 2.58% in the second quarter of 2020, a decrease of 54 basis points compared to 3.12% in the first quarter of 2020. The decline in NIM was due to lower interest rates and excess liquidity.

Provision Expense

During the quarter ended June 30, 2020, the Bank recorded a total provision for credit losses of $55.4 million. In the quarter ended March 31, 2020, the total provision for credit losses was $41.2 million. The provision expense recorded in the first and second quarters was due to expectations for increased credit losses as a result of COVID-19 and its impact on Hawaii’s economy.

Noninterest Income

Noninterest income was $45.7 million in the second quarter of 2020, a decrease of $3.6 million compared to noninterest income of $49.2 million in the first quarter of 2020.

Noninterest Expense

Noninterest expense was $91.5 million in the second quarter of 2020, a decrease of $5.0 million from $96.5 million in the first quarter of 2020.

The efficiency ratio was 52.7% and 51.3% for the quarters ended June 30, 2020 and March 31, 2020, respectively.

Taxes

The effective tax rate was 24.6% for the quarter ended June 30, 2020 and 22.6% for the quarter ended March 31, 2020.

Asset Quality

The allowance for credit losses was $192.1 million, or 1.40% of total loans and leases, as of June 30, 2020, compared to $166.0 million, or 1.24% of total loans and leases, as of March 31, 2020. The reserve for unfunded commitments was $23.2 million as of June 30, 2020 compared to $17.3 million as of March 31, 2020. Net charge-offs were $23.4 million, or 0.67% of average loans and leases on an annualized basis for the quarter ended June 30, 2020, compared to $6.1 million, or 0.19% of average loans and leases on an annualized basis for the quarter ended March 31, 2020. Total non-performing assets were $33.3 million, or 0.24% of total loans and leases and other real estate owned, at June 30, 2020, compared to non-performing assets of $7.2 million, or 0.05% of total loans and leases and other real estate owned, at March 31, 2020.

Capital

Total stockholders' equity was $2.7 billion at both June 30 and March 31, 2020.

The tier 1 leverage, common equity tier 1 and total capital ratios were 7.75%, 11.86% and 13.11%, respectively, at June 30, 2020, compared with 8.63%, 11.65% and 12.90%, respectively, at March 31, 2020.

The Company suspended its stock repurchase program during the first quarter and did not repurchase any shares of common stock in the second quarter.

First Hawaiian, Inc.

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

Conference Call Information

First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time. To access the call, 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: 4496063. 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 July 31, 2020. Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 4496063.

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, 2019 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.

Use of Non-GAAP Financial Measures

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

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

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

Tables 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 Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands, except per share data)	2020		****	2020		****	2019			2020		****	2019
Operating Results:
Net interest income	$	127,822		$	138,683		$	145,613		$	266,505		$	290,702
Provision for credit losses		55,446			41,200			3,870			96,646			9,550
Noninterest income		45,656			49,228			48,773			94,884			95,845
Noninterest expense		91,450			96,466			93,290			187,916			185,913
Net income		20,049			38,865			72,433			58,914			142,357
Basic earnings per share		0.15			0.30			0.54			0.45			1.06
Diluted earnings per share		0.15			0.30			0.54			0.45			1.06
Dividends declared per share		0.26			0.26			0.26			0.52			0.52
Dividend payout ratio		173.33	%		86.67	%		48.15	%		115.56	%		49.06	%
Supplemental Income Statement Data (non-GAAP):
Core net interest income	$	127,822		$	138,683		$	145,613		$	266,505		$	290,702
Core noninterest income		45,867			49,143			48,752			95,010			98,437
Core noninterest expense		91,450			96,466			93,029			187,916			185,391
Core net income		20,204			38,803			72,612			59,007			144,664
Core basic earnings per share		0.16			0.30			0.54			0.45			1.07
Core diluted earnings per share		0.16			0.30			0.54			0.45			1.07
Performance Ratio^(1)^:
Net interest margin		2.58	%		3.12	%		3.25	%		2.84	%		3.24	%
Core net interest margin (non-GAAP)		2.58	%		3.12	%		3.25	%		2.84	%		3.24	%
Efficiency ratio		52.70	%		51.33	%		47.99	%		51.99	%		48.09	%
Core efficiency ratio (non-GAAP)		52.64	%		51.35	%		47.86	%		51.97	%		47.64	%
Return on average total assets		0.36	%		0.77	%		1.42	%		0.56	%		1.40	%
Core return on average total assets (non-GAAP)		0.36	%		0.77	%		1.43	%		0.56	%		1.43	%
Return on average tangible assets (non-GAAP)		0.38	%		0.81	%		1.50	%		0.58	%		1.48	%
Core return on average tangible assets (non-GAAP)^(2)^		0.38	%		0.81	%		1.50	%		0.58	%		1.50	%
Return on average total stockholders' equity		2.99	%		5.87	%		11.13	%		4.42	%		11.15	%
Core return on average total stockholders' equity (non-GAAP)		3.01	%		5.87	%		11.16	%		4.43	%		11.33	%
Return on average tangible stockholders' equity (non-GAAP)		4.74	%		9.39	%		17.99	%		7.04	%		18.17	%
Core return on average tangible stockholders’ equity (non-GAAP)^(3)^		4.77	%		9.37	%		18.03	%		7.05	%		18.46	%
Average Balances:
Average loans and leases	$	13,956,669		$	13,191,426		$	13,209,655		$	13,574,048		$	13,142,057
Average earning assets		19,854,795			17,814,189			17,971,615			18,834,492			18,031,189
Average assets		22,341,654			20,313,304			20,390,273			21,327,479			20,442,266
Average deposits		18,540,394			16,543,305			16,664,837			17,541,849			16,764,700
Average stockholders' equity		2,697,775			2,660,811			2,610,565			2,679,293			2,575,775
Market Value Per Share:
Closing		17.24			16.53			25.87			17.24			25.87
High		21.50			31.25			28.20			31.25			28.20
Low		13.56			15.42			24.83			13.56			22.13


	As of			As of			As of			As of
	June 30,			March 31,			December 31,			June 30,
	2020			2020			2019			2019
Balance Sheet Data:
Loans and leases	$	13,764,030		$	13,380,270		$	13,211,650		$	13,264,609
Total assets		22,993,715			20,755,891			20,166,734			20,526,367
Total deposits		19,361,634			17,020,002			16,444,994			16,792,078
Short-term borrowings		200,000			400,000			400,000			200,000
Long-term borrowings		200,019			200,019			200,019			400,028
Total stockholders' equity		2,701,897			2,664,685			2,640,258			2,659,441

Per Share of Common Stock:
Book value	$	20.81		$	20.52		$	20.32		$	19.92
Tangible book value (non-GAAP)^(4)^		13.14			12.86			12.66			12.46

Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases		0.24	%		0.05	%		0.04	%		0.03	%
Allowance for credit losses for loans and leases / total loans and leases		1.40	%		1.24	%		0.99	%		1.04	%

Capital Ratios:
Common Equity Tier 1 Capital Ratio	****	11.86	%		11.65	%		11.88	%		11.84	%
Tier 1 Capital Ratio		11.86	%		11.65	%		11.88	%		11.84	%
Total Capital Ratio		13.11	%		12.90	%		12.81	%		12.81	%
Tier 1 Leverage Ratio		7.75	%		8.63	%		8.79	%		8.75	%
Total stockholders' equity to total assets		11.75	%		12.84	%		13.09	%		12.96	%
Tangible stockholders' equity to tangible assets (non-GAAP)		7.76	%		8.45	%		8.58	%		8.52	%

Non-Financial Data:
Number of branches		58			58			58			59
Number of ATMs		295			304			301			292
Number of Full-Time Equivalent Employees		2,100			2,103			2,092			2,123

(1)	Except for the efficiency ratio and the core efficiency ratio, amounts are annualized for the three and six months ended June 30, 2020 and 2019 and the three months ended March 31, 2020.
(2)	Core return on average tangible assets is a non-GAAP financial measure. We compute our core return on average tangible assets as the ratio of core net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 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 Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(dollars in thousands, except per share amounts)	2020		2020		2019		2020		2019
Interest income
Loans and lease financing	$	122,298	$	134,971	$	146,883	$	257,269	$	291,289
Available-for-sale securities		17,529		21,210		24,784		38,739		49,270
Other		792		2,351		2,151		3,143		5,820
Total interest income		140,619		158,532		173,818		299,151		346,379
Interest expense
Deposits		8,583		15,600		23,693		24,183		46,890
Short-term and long-term borrowings		4,214		4,249		4,512		8,463		8,787
Total interest expense		12,797		19,849		28,205		32,646		55,677
Net interest income		127,822		138,683		145,613		266,505		290,702
Provision for credit losses		55,446		41,200		3,870		96,646		9,550
Net interest income after provision for credit losses		72,376		97,483		141,743		169,859		281,152
Noninterest income
Service charges on deposit accounts		5,927		8,950		8,123		14,877		16,183
Credit and debit card fees		10,870		14,949		16,629		25,819		33,284
Other service charges and fees		7,912		8,539		9,403		16,451		18,532
Trust and investment services income		8,664		9,591		8,931		18,255		17,549
Bank-owned life insurance		4,432		2,260		3,390		6,692		7,203
Investment securities (losses) gains, net		(211)		85		21		(126)		(2,592)
Other		8,062		4,854		2,276		12,916		5,686
Total noninterest income		45,656		49,228		48,773		94,884		95,845
Noninterest expense
Salaries and employee benefits		42,414		44,829		42,185		87,243		87,045
Contracted services and professional fees		15,478		16,055		14,303		31,533		27,948
Occupancy		7,302		7,243		7,286		14,545		14,272
Equipment		5,207		4,708		4,544		9,915		8,828
Regulatory assessment and fees		2,100		1,946		2,149		4,046		3,596
Advertising and marketing		1,402		1,823		1,980		3,225		3,946
Card rewards program		5,163		7,015		7,664		12,178		14,396
Other		12,384		12,847		13,179		25,231		25,882
Total noninterest expense		91,450		96,466		93,290		187,916		185,913
Income before provision for income taxes		26,582		50,245		97,226		76,827		191,084
Provision for income taxes		6,533		11,380		24,793		17,913		48,727
Net income	$	20,049	$	38,865	$	72,433	$	58,914	$	142,357
Basic earnings per share	$	0.15	$	0.30	$	0.54	$	0.45	$	1.06
Diluted earnings per share	$	0.15	$	0.30	$	0.54	$	0.45	$	1.06
Basic weighted-average outstanding shares		129,856,730		129,895,706		134,420,380		129,876,218		134,655,217
Diluted weighted-average outstanding shares		130,005,195		130,351,585		134,652,008		130,163,722		134,924,331


Consolidated Balance Sheets	Table 3
	June 30,		March 31,		December 31,		June 30,
(dollars in thousands)	2020		2020		2019		2019
Assets
Cash and due from banks	$	347,592	$	353,908	$	360,375	$	423,802
Interest-bearing deposits in other banks		1,507,630		698,924		333,642		259,713
Investment securities, at fair value (amortized cost: $5,025,433 as of June 30, 2020, $4,014,397 as of March 31, 2020, $4,080,663 as of December 31, 2019 and $4,399,597 as of June 30, 2019)		5,135,775		4,058,457		4,075,644		4,395,476
Loans held for sale		6,698		8,180		904		215
Loans and leases		13,764,030		13,380,270		13,211,650		13,264,609
Less: allowance for credit losses		192,120		166,013		130,530		138,535
Net loans and leases		13,571,910		13,214,257		13,081,120		13,126,074

Premises and equipment, net		322,919		321,254		316,885		313,200
Other real estate owned and repossessed personal property		446		238		319		—
Accrued interest receivable		58,420		43,552		45,239		49,205
Bank-owned life insurance		458,720		455,226		453,873		450,722
Goodwill		995,492		995,492		995,492		995,492
Mortgage servicing rights		11,595		11,979		12,668		14,573
Other assets		576,518		594,424		490,573		497,895
Total assets	$	22,993,715	$	20,755,891	$	20,166,734	$	20,526,367
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing	$	12,481,543	$	11,274,463	$	10,564,922	$	11,028,921
Noninterest-bearing		6,880,091		5,745,539		5,880,072		5,763,157
Total deposits		19,361,634		17,020,002		16,444,994		16,792,078
Short-term borrowings		200,000		400,000		400,000		200,000
Long-term borrowings		200,019		200,019		200,019		400,028
Retirement benefits payable		138,624		138,396		138,222		128,610
Other liabilities		391,541		332,789		343,241		346,210
Total liabilities		20,291,818		18,091,206		17,526,476		17,866,926

Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,140,542 / 129,866,898 shares as of June 30, 2020, issued/outstanding: 140,092,172 / 129,827,968 shares as of March 31, 2020, issued/outstanding: 139,917,150 / 129,928,479 shares as of December 31, 2019 and issued/outstanding: 139,857,673 / 133,508,212 shares as of June 30, 2019)		1,401		1,401		1,399		1,399
Additional paid-in capital		2,509,271		2,506,477		2,503,677		2,499,946
Retained earnings		415,296		429,323		437,072		363,748
Accumulated other comprehensive income (loss), net		52,731		4,129		(31,749)		(31,984)
Treasury stock (10,273,644 shares as of June 30, 2020, 10,264,204 shares as of March 31, 2020, 9,988,671 shares as of December 31, 2019 and 6,349,461 shares as of June 30, 2019)		(276,802)		(276,645)		(270,141)		(173,668)
Total stockholders' equity		2,701,897		2,664,685		2,640,258		2,659,441
Total liabilities and stockholders' equity	$	22,993,715	$	20,755,891	$	20,166,734	$	20,526,367


Average Balances and Interest Rates																	Table 4
	Three Months Ended						Three Months Ended						Three Months Ended
	June 30, 2020						March 31, 2020						June 30, 2019
	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	$	1,436.2	$	0.4	0.10	%	$	516.8	$	1.6	1.25	%	$	247.2	$	1.4		2.35	%
Available-for-Sale Investment Securities		4,390.4		17.5	1.60			4,033.2		21.2	2.10			4,438.1		24.8		2.23
Loans Held for Sale		9.8		0.1	2.93			15.8		0.1	1.70			0.7		—		2.76
Loans and Leases^(1)^
Commercial and industrial		3,601.0		24.3	2.71			2,776.2		24.6	3.56			3,235.0		34.3		4.26
Commercial real estate		3,438.8		28.3	3.31			3,433.2		34.6	4.05			3,094.4		36.0		4.67
Construction		584.1		4.9	3.35			538.5		5.7	4.27			583.6		6.9		4.73
Residential:
Residential mortgage		3,682.7		35.7	3.88			3,721.2		37.7	4.05			3,581.2		37.2		4.16
Home equity line		885.2		6.8	3.07			887.4		7.7	3.50			908.5		8.6		3.79
Consumer		1,526.5		20.6	5.42			1,611.7		23.0	5.75			1,657.7		22.7		5.48
Lease financing		238.4		1.7	2.88			223.2		1.6	2.85			149.3		1.2		3.31
Total Loans and Leases		13,956.7		122.3	3.52			13,191.4		134.9	4.11			13,209.7		146.9		4.46
Other Earning Assets		61.7		0.4	2.79			57.0		0.7	5.30			76.0		0.7		3.71
Total Earning Assets^(2)^		19,854.8		140.7	2.84			17,814.2		158.5	3.57			17,971.7		173.8		3.88
Cash and Due from Banks		295.1						327.4						342.6
Other Assets		2,191.8						2,171.7						2,076.0
Total Assets	$	22,341.7					$	20,313.3					$	20,390.3

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	5,501.9	$	0.9	0.07	%	$	5,090.4	$	3.3	0.26	%		4,712.2	$	4.0		0.34	%
Money Market		3,270.3		1.1	0.13			3,064.8		4.6	0.61			3,126.7		7.4		0.95
Time		3,335.6		6.6	0.79			2,534.7		7.7	1.23			3,084.6		12.3		1.60
Total Interest-Bearing Deposits		12,107.8		8.6	0.29			10,689.9		15.6	0.59			10,923.5		23.7		0.87
Short-Term Borrowings		395.6		2.8	2.88			401.7		2.8	2.88			50.4		0.3		2.25
Long-Term Borrowings		200.0		1.4	2.77			200.0		1.4	2.77			593.5		4.2		2.86
Total Interest-Bearing Liabilities		12,703.4		12.8	0.41			11,291.6		19.8	0.71			11,567.4		28.2		0.98
Net Interest Income			$	127.9					$	138.7					$	145.6
Interest Rate Spread					2.43	%					2.86	%						2.90	%
Net Interest Margin					2.58	%					3.12	%						3.25	%
Noninterest-Bearing Demand Deposits		6,432.6						5,853.4						5,741.3
Other Liabilities		507.9						507.5						471.0
Stockholders' Equity		2,697.8						2,660.8						2,610.6
Total Liabilities and Stockholders' Equity	$	22,341.7					$	20,313.3					$	20,390.3

(1)	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
(2)	Interest income includes taxable-equivalent basis adjustments of $0.1 million, nil and nil for the three months ended June 30, 2020, March 31, 2020 and June 30, 2019, respectively.
---	---


Average Balances and Interest Rates											Table 5
	Six Months Ended						Six Months Ended
	June 30, 2020						June 30, 2019
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	976.5	$	2.0	0.40	%	$	376.5	$	4.6	2.49	%
Available-for-Sale Investment Securities		4,211.8		38.7	1.84			4,428.0		49.3	2.23
Loans Held for Sale		12.8		0.1	2.17			0.5		—	2.76
Loans and Leases^(1)^
Commercial and industrial		3,188.4		48.9	3.08			3,200.9		67.5	4.25
Commercial real estate		3,426.3		62.9	3.69			3,044.9		70.7	4.68
Construction		561.5		10.6	3.79			610.2		14.4	4.75
Residential:
Residential mortgage		3,711.5		73.4	3.95			3,563.2		73.9	4.14
Home equity line		886.3		14.5	3.28			912.1		17.3	3.82
Consumer		1,569.2		43.6	5.59			1,662.5		45.2	5.48
Lease financing		230.8		3.3	2.90			148.3		2.3	3.15
Total Loans and Leases		13,574.0		257.2	3.80			13,142.1		291.3	4.46
Other Earning Assets		59.4		1.2	3.99			84.1		1.2	2.81
Total Earning Assets^(2)^		18,834.5		299.2	3.19			18,031.2		346.4	3.86
Cash and Due from Banks		311.2						351.4
Other Assets		2,181.8						2,059.7
Total Assets	$	21,327.5					$	20,442.3

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	5,296.1	$	4.2	0.16	%	$	4,762.6	$	8.2	0.35	%
Money Market		3,167.6		5.7	0.36			3,155.0		15.0	0.96
Time		2,935.1		14.3	0.98			3,063.3		23.7	1.56
Total Interest-Bearing Deposits		11,398.8		24.2	0.43			10,980.9		46.9	0.86
Short-Term Borrowings		398.6		5.7	2.88			31.7		0.4	2.29
Long-Term Borrowings		200.0		2.7	2.77			596.7		8.4	2.85
Total Interest-Bearing Liabilities		11,997.4		32.6	0.55			11,609.3		55.7	0.97
Net Interest Income			$	266.6					$	290.7
Interest Rate Spread					2.64	%					2.89	%
Net Interest Margin					2.84	%					3.24	%
Noninterest-Bearing Demand Deposits		6,143.0						5,783.8
Other Liabilities		507.8						473.4
Stockholders' Equity		2,679.3						2,575.8
Total Liabilities and Stockholders' Equity	$	21,327.5					$	20,442.3

(1)	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
(2)	Interest income includes taxable-equivalent basis adjustments of $0.1 million and nil for the six months ended June 30, 2020 and 2019, respectively.
---	---


Analysis of Change in Net Interest Income						Table 6
	Three Months Ended June 30, 2020
	Compared to March 31, 2020
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	1.1	$	(2.3)	$	(1.2)
Available-for-Sale Investment Securities		1.7		(5.4)		(3.7)
Loans and Leases
Commercial and industrial		6.4		(6.7)		(0.3)
Commercial real estate		—		(6.3)		(6.3)
Construction		0.5		(1.3)		(0.8)
Residential:
Residential mortgage		(0.4)		(1.6)		(2.0)
Home equity line		—		(0.9)		(0.9)
Consumer		(1.2)		(1.2)		(2.4)
Lease financing		0.1		—		0.1
Total Loans and Leases		5.4		(18.0)		(12.6)
Other Earning Assets		0.1		(0.4)		(0.3)
Total Change in Interest Income		8.3		(26.1)		(17.8)

Change in Interest Expense:
Interest-Bearing Deposits
Savings		0.2		(2.6)		(2.4)
Money Market		0.3		(3.8)		(3.5)
Time		2.1		(3.2)		(1.1)
Total Interest-Bearing Deposits		2.6		(9.6)		(7.0)
Total Change in Interest Expense		2.6		(9.6)		(7.0)
Change in Net Interest Income	$	5.7	$	(16.5)	$	(10.8)


Analysis of Change in Net Interest Income						Table 7
	Three Months Ended June 30, 2020
	Compared to June 30, 2019
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	1.4	$	(2.4)	$	(1.0)
Available-for-Sale Investment Securities		(0.3)		(7.0)		(7.3)
Loans Held for Sale		0.1		—		0.1
Loans and Leases
Commercial and industrial		3.6		(13.6)		(10.0)
Commercial real estate		3.7		(11.4)		(7.7)
Construction		—		(2.0)		(2.0)
Residential:
Residential mortgage		1.0		(2.5)		(1.5)
Home equity line		(0.2)		(1.6)		(1.8)
Consumer		(1.8)		(0.3)		(2.1)
Lease financing		0.7		(0.2)		0.5
Total Loans and Leases		7.0		(31.6)		(24.6)
Other Earning Assets		(0.1)		(0.2)		(0.3)
Total Change in Interest Income		8.1		(41.2)		(33.1)

Change in Interest Expense:
Interest-Bearing Deposits
Savings		0.6		(3.7)		(3.1)
Money Market		0.3		(6.6)		(6.3)
Time		1.0		(6.7)		(5.7)
Total Interest-Bearing Deposits		1.9		(17.0)		(15.1)
Short-Term Borrowings		2.4		0.1		2.5
Long-Term Borrowings		(2.7)		(0.1)		(2.8)
Total Change in Interest Expense		1.6		(17.0)		(15.4)
Change in Net Interest Income	$	6.5	$	(24.2)	$	(17.7)


Analysis of Change in Net Interest Income						Table 8
	Six Months Ended June 30, 2020
	Compared to June 30, 2019
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	3.4	$	(6.0)	$	(2.6)
Available-for-Sale Investment Securities		(2.3)		(8.3)		(10.6)
Loans Held for Sale		0.1		—		0.1
Loans and Leases
Commercial and industrial		(0.2)		(18.4)		(18.6)
Commercial real estate		8.3		(16.1)		(7.8)
Construction		(1.1)		(2.7)		(3.8)
Residential:
Residential mortgage		2.9		(3.4)		(0.5)
Home equity line		(0.5)		(2.3)		(2.8)
Consumer		(2.5)		0.9		(1.6)
Lease financing		1.2		(0.2)		1.0
Total Loans and Leases		8.1		(42.2)		(34.1)
Other Earning Assets		(0.4)		0.4		—
Total Change in Interest Income		8.9		(56.1)		(47.2)

Change in Interest Expense:
Interest-Bearing Deposits
Savings		0.9		(4.9)		(4.0)
Money Market		0.1		(9.4)		(9.3)
Time		(1.0)		(8.4)		(9.4)
Total Interest-Bearing Deposits		—		(22.7)		(22.7)
Short-Term Borrowings		5.2		0.1		5.3
Long-Term Borrowings		(5.5)		(0.2)		(5.7)
Total Change in Interest Expense		(0.3)		(22.8)		(23.1)
Change in Net Interest Income	$	9.2	$	(33.3)	$	(24.1)


Loans and Leases											Table 9
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands)	2020		****	2020		****	2019		****	2019
Commercial and industrial	$	3,423,708	****	$	3,025,345	****	$	2,743,242	****	$	3,177,844
Commercial real estate		3,423,499			3,413,014			3,463,953			3,194,219
Construction		617,935			572,062			519,241			549,578
Residential:
Residential mortgage		3,691,950			3,673,455			3,768,936			3,618,433
Home equity line		876,491			891,698			893,239			908,452
Total residential		4,568,441			4,565,153			4,662,175			4,526,885
Consumer		1,492,160			1,568,073			1,620,556			1,650,713
Lease financing		238,287			236,623			202,483			165,370
Total loans and leases	$	13,764,030		$	13,380,270		$	13,211,650		$	13,264,609


Deposits											Table 10
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands)	2020		****	2020		****	2019		****	2019
Demand	$	6,880,091		$	5,745,539		$	5,880,072		$	5,763,157
Savings		5,727,367			5,213,471			4,998,933			4,908,000
Money Market		3,247,511			3,148,694			3,055,832			3,050,843
Time		3,506,665			2,912,298			2,510,157			3,070,078
Total Deposits	$	19,361,634		$	17,020,002		$	16,444,994		$	16,792,078


Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More											Table 11
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands)	2020		****	2020		****	2019		****	2019
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial	$	11,559		$	32		$	32		$	119
Commercial real estate		13,168			—			30			—
Construction		2,043			2,422			—			—
Total Commercial Loans		26,770			2,454			62			119
Residential Loans:
Residential mortgage		6,059			4,472			5,406			3,771
Total Residential Loans		6,059			4,472			5,406			3,771
Total Non-Accrual Loans and Leases		32,829			6,926			5,468			3,890
Other Real Estate Owned		446			238			319			—
Total Non-Performing Assets	$	33,275		$	7,164		$	5,787		$	3,890

Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial	$	2,309		$	4,007		$	1,429		$	807
Commercial real estate		900			757			1,013			—
Construction		248			148			2,367			—
Total Commercial Loans		3,457			4,912			4,809			807
Residential Loans:
Residential mortgage		—			82			74			—
Home equity line		4,496			2,566			2,995			1,635
Total Residential Loans		4,496			2,648			3,069			1,635
Consumer		2,167			3,353			4,272			3,295
Total Accruing Loans and Leases Past Due 90 Days or More	$	10,120		$	10,913		$	12,150		$	5,737

Restructured Loans on Accrual Status and Not Past Due 90 Days or More		11,182			17,823			14,493			23,466
Total Loans and Leases	$	13,764,030		$	13,380,270		$	13,211,650		$	13,264,609


Allowance for Credit Losses														Table 12
	For the Three Months Ended									For the Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
(dollars in thousands)	2020			2020		****	2019		****	2020			2019		****
Balance at Beginning of Period	$	166,013		$	130,530		$	141,546		$	130,530		$	141,718
Adjustment to Adopt ASC Topic 326		—			770			—			770			—
After Adoption of ASC Topic 326		166,013			131,300			141,546			131,300			141,718
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial		(13,974)			(201)			(2,000)			(14,175)			(2,000)
Commercial real estate		(2,723)			—			—			(2,723)			—
Construction		(379)			—			—			(379)			—
Lease financing		—			—			—			—			(24)
Total Commercial Loans		(17,076)			(201)			(2,000)			(17,277)			(2,024)
Residential Loans:
Residential mortgage		(14)			—			—			(14)			—
Home equity line		—			(8)			—			(8)			—
Total Residential Loans		(14)			(8)			—			(22)			—
Consumer		(8,907)			(8,597)			(7,505)			(17,504)			(16,103)
Total Loans and Leases Charged-Off		(25,997)			(8,806)			(9,505)			(34,803)			(18,127)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial		100			220			25			320			62
Commercial real estate		—			—			32			—			63
Construction		30			110			—			140			—
Total Commercial Loans		130			330			57			460			125
Residential Loans:
Residential mortgage		17			135			118			152			336
Home equity line		8			122			67			130			99
Total Residential Loans		25			257			185			282			435
Consumer		2,456			2,083			2,382			4,539			4,834
Total Recoveries on Loans and Leases Previously Charged-Off		2,611			2,670			2,624			5,281			5,394
Net Loans and Leases Charged-Off		(23,386)			(6,136)			(6,881)			(29,522)			(12,733)
Provision for Credit Losses - Loans and Leases		49,493			40,849			3,870			90,342			9,550
Balance at End of Period	$	192,120		$	166,013		$	138,535		$	192,120		$	138,535
Average Loans and Leases Outstanding	$	13,956,669		$	13,191,426		$	13,209,655		$	13,574,048		$	13,142,057
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding^(1)^		0.67	%		0.19	%		0.21	%		0.44	%		0.20	%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding		1.40	%		1.24	%		1.04	%		1.40	%		1.04	%

(1)	Annualized for the three and six months ended June 30, 2020 and 2019 and three months ended March 31, 2020.


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)	2020		2019		2018		2017		2016		Prior		Cost Basis		Cost Basis		Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass	$	989,501	$	349,261	$	271,941	$	76,742	$	62,113	$	68,468	$	1,182,299	$	39,617	$	3,039,942
Special Mention		28,136		9,235		8,460		841		335		27,174		113,642		509		188,332
Substandard		16,621		1,724		1,836		2,000		4,321		9,788		52,225		938		89,453
Other ^(1)^		9,091		16,661		12,574		7,884		3,199		811		55,761		—		105,981
Total Commercial and Industrial		1,043,349		376,881		294,811		87,467		69,968		106,241		1,403,927		41,064		3,423,708

Commercial Real Estate
Risk rating:
Pass		171,445		618,501		523,149		440,549		296,474		927,232		33,878		—		3,011,228
Special Mention		—		113,286		53,391		62,165		47,790		66,008		2,999		—		345,639
Substandard		—		16,304		14,617		1,655		6,630		17,947		8,970		—		66,123
Other ^(1)^		—		—		—		—		—		509		—		—		509
Total Commercial Real Estate		171,445		748,091		591,157		504,369		350,894		1,011,696		45,847		—		3,423,499

Construction
Risk rating:
Pass		16,615		135,963		192,016		96,137		24,106		41,457		29,297		—		535,591
Special Mention		—		—		2,152		4,782		—		10,850		196		—		17,980
Substandard		—		—		541		1,840		528		1,000		—		—		3,909
Other ^(1)^		8,415		31,038		8,546		5,562		1,795		4,514		585		—		60,455
Total Construction		25,030		167,001		203,255		108,321		26,429		57,821		30,078		—		617,935

Lease Financing
Risk rating:
Pass		45,489		67,806		11,965		18,915		3,764		59,364		—		—		207,303
Special Mention		9,142		1,931		4,626		1,545		1,440		5,854		—		—		24,538
Substandard		2,697		1,651		368		1,207		—		523		—		—		6,446
Total Lease Financing		57,328		71,388		16,959		21,667		5,204		65,741		—		—		238,287

Total Commercial Lending	$	1,297,152	$	1,363,361	$	1,106,182	$	721,824	$	452,495	$	1,241,499	$	1,479,852	$	41,064	$	7,703,429


															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
(continued)													Amortized		Amortized
(dollars in thousands)	2020		2019		2018		2017		2016		Prior		Cost Basis		Cost Basis		Total
Residential Lending
Residential Mortgage
FICO:
740 and greater	$	300,079	$	411,883	$	353,197	$	411,670	$	362,197	$	988,771	$	—	$	—	$	2,827,797
680 - 739		50,937		72,139		64,920		65,992		43,666		161,897		—		—		459,551
620 - 679		6,098		12,708		12,060		12,648		10,789		55,000		—		—		109,303
550 - 619		2,006		1,824		3,533		3,389		3,032		13,329		—		—		27,113
Less than 550		—		—		1,204		1,907		528		6,324		—		—		9,963
No Score ^(3)^		15,676		21,603		24,182		23,736		16,298		51,943		—		—		153,438
Other ^(2)^		8,244		20,308		22,241		23,435		12,412		17,063		579		503		104,785
Total Residential Mortgage		383,040		540,465		481,337		542,777		448,922		1,294,327		579		503		3,691,950

Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		626,897		858		627,755
680 - 739		—		—		—		—		—		—		169,547		1,283		170,830
620 - 679		—		—		—		—		—		—		48,655		1,013		49,668
550 - 619		—		—		—		—		—		—		14,276		562		14,838
Less than 550		—		—		—		—		—		—		6,661		212		6,873
No Score ^(3)^		—		—		—		—		—		—		6,527		—		6,527
Total Home Equity Line		—		—		—		—		—		—		872,563		3,928		876,491
Total Residential Lending		383,040		540,465		481,337		542,777		448,922		1,294,327		873,142		4,431		4,568,441

Consumer Lending
FICO:
740 and greater		65,206		141,704		120,178		71,525		35,932		12,451		109,702		—		556,698
680 - 739		47,584		109,728		87,056		48,728		24,478		10,094		83,021		—		410,689
620 - 679		24,185		65,310		43,282		31,318		16,144		7,013		42,511		—		229,763
550 - 619		5,881		26,220		22,891		20,874		10,869		5,467		18,429		—		110,631
Less than 550		1,562		12,306		13,110		10,628		5,397		2,567		7,777		—		53,347
No Score ^(3)^		3,799		124		125		126		27		1		34,281		—		38,483
Other ^(2)^		594		9,160		96		2,225		72		6,804		73,598		—		92,549
Total Consumer Lending		148,811		364,552		286,738		185,424		92,919		44,397		369,319		—		1,492,160

Total Loans and Leases	$	1,829,003	$	2,268,378	$	1,874,257	$	1,450,025	$	994,336	$	2,580,223	$	2,722,313	$	45,495	$	13,764,030

(1)	Other credit quality indicators used for monitoring purposes are primarily FICO scores.
(2)	Other credit quality indicators used for monitoring purposes are primarily internal risk ratings.
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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 Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands, except per share amounts)	2020		****	2020		****	2019		****	2020		****	2019
Income Statement Data:
Net income	$	20,049		$	38,865		$	72,433		$	58,914		$	142,357
Core net income	$	20,204		$	38,803		$	72,612		$	59,007		$	144,664

Average total stockholders' equity	$	2,697,775		$	2,660,811		$	2,610,565		$	2,679,293		$	2,575,775
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible stockholders' equity	$	1,702,283		$	1,665,319		$	1,615,073		$	1,683,801		$	1,580,283

Average total assets	$	22,341,654		$	20,313,304		$	20,390,273		$	21,327,479		$	20,442,266
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible assets	$	21,346,162		$	19,317,812		$	19,394,781		$	20,331,987		$	19,446,774

Return on average total stockholders' equity^(1)^		2.99	%		5.87	%		11.13	%		4.42	%		11.15	%
Core return on average total stockholders' equity (non-GAAP)^(1)^		3.01	%		5.87	%		11.16	%		4.43	%		11.33	%
Return on average tangible stockholders' equity (non-GAAP)^(1)^		4.74	%		9.39	%		17.99	%		7.04	%		18.17	%
Core return on average tangible stockholders' equity (non-GAAP)^(1)^		4.77	%		9.37	%		18.03	%		7.05	%		18.46	%

Return on average total assets^(1)^		0.36	%		0.77	%		1.42	%		0.56	%		1.40	%
Core return on average total assets (non-GAAP)^(1)^		0.36	%		0.77	%		1.43	%		0.56	%		1.43	%
Return on average tangible assets (non-GAAP)^(1)^		0.38	%		0.81	%		1.50	%		0.58	%		1.48	%
Core return on average tangible assets (non-GAAP)^(1)^		0.38	%		0.81	%		1.50	%		0.58	%		1.50	%



	As of			As of			As of			As of
	June 30,			March 31,			December 31,			June 30,
	2020		****	2020		****	2019		****	2019
Balance Sheet Data:
Total stockholders' equity	$	2,701,897		$	2,664,685		$	2,640,258		$	2,659,441
Less: goodwill		995,492			995,492			995,492			995,492
Tangible stockholders' equity	$	1,706,405		$	1,669,193		$	1,644,766		$	1,663,949

Total assets	$	22,993,715		$	20,755,891		$	20,166,734		$	20,526,367
Less: goodwill		995,492			995,492			995,492			995,492
Tangible assets	$	21,998,223		$	19,760,399		$	19,171,242		$	19,530,875

Shares outstanding		129,866,898			129,827,968			129,928,479			133,508,212

Total stockholders' equity to total assets		11.75	%		12.84	%		13.09	%		12.96	%
Tangible stockholders' equity to tangible assets (non-GAAP)		7.76	%		8.45	%		8.58	%		8.52	%

Book value per share	$	20.81		$	20.52		$	20.32		$	19.92
Tangible book value per share (non-GAAP)	$	13.14		$	12.86		$	12.66		$	12.46

(1)	Annualized for the three and six months ended June 30, 2020 and 2019 and three months ended March 31, 2020.


GAAP to Non-GAAP Reconciliation														Table 15
	For the Three Months Ended									For the Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands, except per share amounts)	2020			2020		****	2019		****	2020		****	2019
Net interest income	$	127,822		$	138,683		$	145,613		$	266,505		$	290,702
Core net interest income (non-GAAP)	$	127,822		$	138,683		$	145,613		$	266,505		$	290,702

Noninterest income	$	45,656		$	49,228		$	48,773		$	94,884		$	95,845
Losses (gains) on sale of securities		211			(85)			(21)			126			2,592
Core noninterest income (non-GAAP)	$	45,867		$	49,143		$	48,752		$	95,010		$	98,437

Noninterest expense	$	91,450		$	96,466		$	93,290		$	187,916		$	185,913
One-time items^(1)^		—			—			(261)			—			(522)
Core noninterest expense (non-GAAP)	$	91,450		$	96,466		$	93,029		$	187,916		$	185,391

Net income	$	20,049		$	38,865		$	72,433		$	58,914		$	142,357
Losses (gains) on sale of securities		211			(85)			(21)			126			2,592
One-time noninterest expense items^(1)^		—			—			261			—			522
Tax adjustments^(2)^		(56)			23			(61)			(33)			(807)
Total core adjustments		155			(62)			179			93			2,307
Core net income (non-GAAP)	$	20,204		$	38,803		$	72,612		$	59,007		$	144,664

Basic earnings per share	$	0.15		$	0.30		$	0.54		$	0.45		$	1.06
Diluted earnings per share	$	0.15		$	0.30		$	0.54		$	0.45		$	1.06
Efficiency ratio		52.70	%		51.33	%		47.99	%		51.99	%		48.09	%

Core basic earnings per share (non-GAAP)	$	0.16		$	0.30		$	0.54		$	0.45		$	1.07
Core diluted earnings per share (non-GAAP)	$	0.16		$	0.30		$	0.54		$	0.45		$	1.07
Core efficiency ratio (non-GAAP)		52.64	%		51.35	%		47.86	%		51.97	%		47.64	%

(1)	One-time items included nonrecurring offering 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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