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 27, 2023

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 27, 2023, First Hawaiian, Inc. (together with its consolidated subsidiary, “First Hawaiian”) reported its earnings for the quarter ended September 30, 2023. 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 27, 2023 containing financial information for its quarter ended September 30, 2023.

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 27, 2023	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 2023 Financial Results and Declares Dividend

HONOLULU, Hawaii October 27, 2023--(Globe Newswire)--First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended September 30, 2023.

“I’m pleased to report that we delivered strong results in the third quarter. Our loan balances were stable, we grew consumer and commercial deposits, and credit quality remained excellent,” said Bob Harrison, Chairman, President, and CEO. “It was during this time that the world saw the devastating impacts of the wildfires on Maui. Our priority during the quarter was to help our customers, colleagues and the community through this tragedy, and we are committed to helping Maui recover and rebuild stronger than ever.”

On October 18, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on December 1, 2023, to stockholders of record at the close of business on November 20, 2023.

Third Quarter 2023 Highlights:

●	Net income of $58.2 million, or $0.46 per diluted share
●	Total loans and leases decreased $30.5 million versus prior quarter
---	---
●	Total deposits increased $433.3 million versus prior quarter
---	---
●	Net interest margin decreased 5 basis points to 2.86%
---	---
●	Recorded a $7.5 million provision for credit losses
---	---
●	Board of Directors declared a quarterly dividend of $0.26 per share
---	---

Balance Sheet

Total assets were $24.9 billion as of September 30, 2023, compared to $24.5 billion as of June 30, 2023.

Gross loans and leases were $14.3 billion as of September 30, 2023, a slight decrease of $30.5 million, or 0.2%, from $14.4 billion as of June 30, 2023.

Total deposits were $21.5 billion as of September 30, 2023, an increase of $433.3 million, or 2.1%, from $21.1 billion as of June 30, 2023.

Net Interest Income

Net interest income for the third quarter of 2023 was $157.1 million, a decrease of $2.8 million, or 1.7%, compared to $159.9 million for the prior quarter.

The net interest margin was 2.86% in the third quarter of 2023, a decrease of 5 basis points compared to 2.91% in the prior quarter.

Provision Expense

During the quarter ended September 30, 2023, we recorded a $7.5 million provision for credit losses. In the quarter ended June 30, 2023, we recorded a $5.0 million provision for credit losses.

Noninterest Income

Noninterest income was $46.1 million in the third quarter of 2023, a decrease of $1.3 million compared to noninterest income of $47.3 million in the prior quarter.

Noninterest Expense

Noninterest expense was $119.4 million in the third quarter of 2023, a decrease of $1.5 million compared to noninterest expense of $120.9 million in the prior quarter.

The efficiency ratio was 58.3% and 58.0% for the quarters ended September 30, 2023 and June 30, 2023, respectively.

Taxes

The effective tax rate was 23.8% and 23.3% for the quarters ended September 30, 2023 and June 30, 2023, respectively.

Asset Quality

The allowance for credit losses was $154.8 million, or 1.08% of total loans and leases, as of September 30, 2023, compared to $148.6 million, or 1.03% of total loans and leases, as of June 30, 2023. The reserve for unfunded commitments was $37.8 million as of September 30, 2023 compared to $36.2 million as of June 30, 2023. Net recoveries were $0.3 million, or 0.01% of average loans and leases on an annualized basis, for the quarter ended September 30, 2023, compared to net charge-offs of $3.5 million, or 0.10% of average loans and leases on an annualized basis, for the quarter ended June 30, 2023. Total non-performing assets were $14.6 million, or 0.10% of total loans and leases and other real estate owned, on September 30, 2023, compared to total non-performing assets of $13.2 million, or 0.09% of total loans and leases and other real estate owned, on June 30, 2023.

Capital

Total stockholders’ equity was $2.4 billion on September 30, 2023 and June 30, 2023.

The tier 1 leverage, common equity tier 1 and total capital ratios were 8.45%, 12.21% and 13.38%, respectively, on September 30, 2023, compared with 8.30%, 12.05% and 13.17%, respectively, on June 30, 2023.

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

First Hawaiian, Inc.

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

Conference Call Information

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

To access the call by phone, please register via the following link:

https://register.vevent.com/register/BIb8dec5c067a34a9783388cdb9da26a39, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

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

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2022 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2023 and June 30, 2023.

Use of Non-GAAP Financial Measures

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

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


Investor Relations Contact:	Media Contact:
Kevin Haseyama, CFA	Lindsay Chambers
(808) 525-6268	(808) 525-6254
khaseyama@fhb.com	lchambers@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)	2023		****	2023		****	2022			2023		****	2022
Operating Results:
Net interest income	$	157,148		$	159,939		$	162,736		$	484,334		$	441,755
Provision for credit losses		7,500			5,000			3,183			21,300			(1,564)
Noninterest income		46,097			47,348			45,857			142,468			131,374
Noninterest expense		119,383			120,881			113,332			358,831			326,549
Net income		58,221			62,442			69,018			187,481			186,097
Basic earnings per share		0.46			0.49			0.54			1.47			1.46
Diluted earnings per share		0.46			0.49			0.54			1.47			1.45
Dividends declared per share		0.26			0.26			0.26			0.78			0.78
Dividend payout ratio		56.52	%		53.06	%		48.15	%		53.06	%		53.79	%
Performance Ratios^(1)^:
Net interest margin		2.86	%		2.91	%		2.93	%		2.96	%		2.65	%
Efficiency ratio		58.31	%		57.96	%		53.98	%		56.86	%		56.63	%
Return on average total assets		0.93	%		1.01	%		1.10	%		1.01	%		0.99	%
Return on average tangible assets (non-GAAP)^(2)^		0.97	%		1.05	%		1.14	%		1.06	%		1.03	%
Return on average total stockholders' equity		9.76	%		10.68	%		12.08	%		10.72	%		10.55	%
Return on average tangible stockholders' equity (non-GAAP)^(2)^		16.84	%		18.57	%		21.53	%		18.68	%		18.26	%
Average Balances:
Average loans and leases	$	14,349,402		$	14,283,222		$	13,491,428		$	14,238,309		$	13,125,660
Average earning assets		22,060,480			22,186,316			22,258,066			22,040,704			22,413,209
Average assets		24,727,893			24,821,486			24,957,042			24,699,826			25,095,438
Average deposits		21,212,102			21,057,259			22,148,039			21,245,055			22,170,824
Average stockholders' equity		2,367,422			2,344,285			2,267,152			2,337,292			2,358,195
Market Value Per Share:
Closing		18.05			18.01			24.63			18.05			24.63
High		22.59			21.00			28.14			28.28			31.16
Low		17.41			15.08			21.21			15.08			21.21


	As of			As of			As of			As of
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands, except per share data)	2023			2023			2022			2022
Balance Sheet Data:
Loans and leases	$	14,332,335		$	14,362,832		$	14,092,012		$	13,700,374
Total assets		24,912,524			24,511,566			24,577,223			24,870,272
Total deposits		21,511,489			21,078,166			21,689,029			22,091,738
Short-term borrowings		500,000			—			75,000			—
Long-term borrowings		—			500,000			—			—
Total stockholders' equity		2,351,009			2,359,738			2,269,005			2,200,651

Per Share of Common Stock:
Book value	$	18.42		$	18.49		$	17.82		$	17.28
Tangible book value (non-GAAP)^(2)^		10.62			10.69			10.00			9.46

Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases		0.10	%		0.09	%		0.08	%		0.06	%
Allowance for credit losses for loans and leases / total loans and leases		1.08	%		1.03	%		1.02	%		1.08	%

Capital Ratios:
Common Equity Tier 1 Capital Ratio	****	12.21	%		12.05	%		11.82	%		11.79	%
Tier 1 Capital Ratio		12.21	%		12.05	%		11.82	%		11.79	%
Total Capital Ratio		13.38	%		13.17	%		12.92	%		12.92	%
Tier 1 Leverage Ratio		8.45	%		8.30	%		8.11	%		7.78	%
Total stockholders' equity to total assets		9.44	%		9.63	%		9.23	%		8.85	%
Tangible stockholders' equity to tangible assets (non-GAAP)^(2)^		5.67	%		5.80	%		5.40	%		5.05	%

Non-Financial Data:
Number of branches		50			51			51			51
Number of ATMs		294			296			294			303
Number of Full-Time Equivalent Employees		2,087			2,126			2,063			2,042

(1)	Except for the efficiency ratio, amounts are annualized for the three and nine months ended September 30, 2023 and 2022 and three months ended June 30, 2023.
(2)	Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation.
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(1)

Except for the efficiency ratio, amounts are annualized for the three and nine months ended September 30, 2023 and 2022 and three months ended June 30, 2023.

(2)

Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation.

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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)	2023		2023		2022		2023		2022
Interest income
Loans and lease financing	$	194,098	$	185,340	$	134,646	$	551,777	$	350,294
Available-for-sale investment securities		18,426		18,094		19,644		55,208		68,394
Held-to-maturity investment securities		18,271		18,282		17,950		55,510		36,239
Other		9,004		7,489		4,150		20,054		7,828
Total interest income		239,799		229,205		176,390		682,549		462,755
Interest expense
Deposits		74,651		58,071		13,653		176,006		20,999
Short-term and long-term borrowings		6,838		10,656		1		20,057		1
Other		1,162		539		—		2,152		—
Total interest expense		82,651		69,266		13,654		198,215		21,000
Net interest income		157,148		159,939		162,736		484,334		441,755
Provision for credit losses		7,500		5,000		3,183		21,300		(1,564)
Net interest income after provision for credit losses		149,648		154,939		159,553		463,034		443,319
Noninterest income
Service charges on deposit accounts		7,524		7,246		7,089		22,001		21,433
Credit and debit card fees		15,748		15,461		17,746		47,507		49,652
Other service charges and fees		9,546		9,056		9,179		27,764		27,851
Trust and investment services income		9,742		9,448		9,800		28,804		27,442
Bank-owned life insurance		1,872		3,271		(341)		10,263		(1,617)
Other		1,665		2,866		2,384		6,129		6,613
Total noninterest income		46,097		47,348		45,857		142,468		131,374
Noninterest expense
Salaries and employee benefits		55,937		57,904		51,372		169,873		149,500
Contracted services and professional fees		16,393		17,498		16,625		50,204		52,389
Occupancy		6,711		7,554		8,115		22,047		22,859
Equipment		11,826		11,000		10,791		32,562		24,522
Regulatory assessment and fees		4,149		3,676		2,487		11,661		7,012
Advertising and marketing		2,289		1,891		1,902		6,174		5,924
Card rewards program		8,358		7,681		8,141		24,124		22,309
Other		13,720		13,677		13,899		42,186		42,034
Total noninterest expense		119,383		120,881		113,332		358,831		326,549
Income before provision for income taxes		76,362		81,406		92,078		246,671		248,144
Provision for income taxes		18,141		18,964		23,060		59,190		62,047
Net income	$	58,221	$	62,442	$	69,018	$	187,481	$	186,097
Basic earnings per share	$	0.46	$	0.49	$	0.54	$	1.47	$	1.46
Diluted earnings per share	$	0.46	$	0.49	$	0.54	$	1.47	$	1.45
Basic weighted-average outstanding shares		127,609,860		127,591,371		127,377,713		127,552,255		127,534,746
Diluted weighted-average outstanding shares		127,936,440		127,832,351		127,796,617		127,897,829		127,996,672


Consolidated Balance Sheets	Table 3
	September 30,		June 30,		December 31,		September 30,
(dollars in thousands, except share amount)	2023		2023		2022		2022
Assets
Cash and due from banks	$	246,028	$	318,333	$	297,502	$	291,360
Interest-bearing deposits in other banks		967,400		239,798		229,122		657,574
Investment securities:
Available-for-sale, at fair value (amortized cost: $3,172,031 as of September 30, 2023, $3,296,825 as of June 30, 2023, $3,549,599 as of December 31, 2022 and $3,673,396 as of September 30, 2022)		2,722,704		2,909,372		3,151,133		3,289,160
Held-to-maturity, at amortized cost (fair value: $3,433,029 as of September 30, 2023, $3,697,261 as of June 30, 2023, $3,814,822 as of December 31, 2022 and $3,960,713 as of September 30, 2022)		4,104,114		4,180,408		4,320,639		4,406,143
Loans held for sale		—		—		—		361
Loans and leases		14,332,335		14,362,832		14,092,012		13,700,374
Less: allowance for credit losses		154,795		148,581		143,900		148,163
Net loans and leases		14,177,540		14,214,251		13,948,112		13,552,211

Premises and equipment, net		277,805		277,817		280,355		299,179
Other real estate owned and repossessed personal property		—		—		91		139
Accrued interest receivable		84,327		80,710		78,194		68,545
Bank-owned life insurance		477,698		476,177		473,067		470,202
Goodwill		995,492		995,492		995,492		995,492
Mortgage servicing rights		5,855		6,072		6,562		6,866
Other assets		853,561		813,136		796,954		833,040
Total assets	$	24,912,524	$	24,511,566	$	24,577,223	$	24,870,272
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing	$	13,612,493	$	12,911,539	$	12,824,383	$	12,774,645
Noninterest-bearing		7,898,996		8,166,627		8,864,646		9,317,093
Total deposits		21,511,489		21,078,166		21,689,029		22,091,738
Short-term borrowings		500,000		—		75,000		—
Long-term borrowings		—		500,000		—		—
Retirement benefits payable		99,685		100,671		102,577		133,981
Other liabilities		450,341		472,991		441,612		443,902
Total liabilities		22,561,515		22,151,828		22,308,218		22,669,621

Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,330,663 / 127,609,934 shares as of September 30, 2023, issued/outstanding: 141,327,860 / 127,608,037 shares as of June 30, 2023, issued/outstanding: 140,963,918 / 127,363,327 shares as of December 31, 2022 and issued/outstanding: 140,958,520 / 127,357,680 shares as of September 30, 2022)		1,413		1,413		1,410		1,410
Additional paid-in capital		2,545,659		2,543,226		2,538,336		2,535,601
Retained earnings		823,895		799,045		736,544		690,433
Accumulated other comprehensive loss, net		(648,731)		(612,736)		(639,254)		(658,756)
Treasury stock (13,720,729 shares as of September 30, 2023, 13,719,823 shares as of June 30, 2023, 13,600,591 shares as of December 31, 2022 and 13,600,840 shares as of September 30, 2022)		(371,227)		(371,210)		(368,031)		(368,037)
Total stockholders' equity		2,351,009		2,359,738		2,269,005		2,200,651
Total liabilities and stockholders' equity	$	24,912,524	$	24,511,566	$	24,577,223	$	24,870,272


Average Balances and Interest Rates																	Table 4
	Three Months Ended						Three Months Ended						Three Months Ended
	September 30, 2023						June 30, 2023						September 30, 2022
	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	$	608.6	$	8.2	5.36	%	$	569.3	$	7.2	5.07	%	$	724.0	$	4.0	2.20	%
Available-for-Sale Investment Securities
Taxable		2,834.6		18.4	2.59			2,978.6		18.0	2.42			3,733.8		19.2	2.05
Non-Taxable		2.3		—	5.48			5.8		0.1	5.74			45.1		0.6	5.16
Held-to-Maturity Investment Securities
Taxable		3,544.1		15.0	1.70			3,618.7		15.3	1.69			3,573.6		14.6	1.64
Non-Taxable		604.3		4.1	2.66			610.4		3.7	2.46			613.6		4.2	2.72
Total Investment Securities		6,985.3		37.5	2.14			7,213.5		37.1	2.06			7,966.1		38.6	1.93
Loans Held for Sale		0.4		—	6.63			0.5		—	5.87			0.7		—	3.62
Loans and Leases^(1)^
Commercial and industrial		2,123.5		35.7	6.66			2,265.7		36.2	6.41			2,025.5		20.7	4.05
Commercial real estate		4,381.8		71.4	6.47			4,183.6		64.9	6.22			4,016.7		42.3	4.18
Construction		873.7		15.5	7.05			874.3		15.2	6.96			737.4		8.6	4.63
Residential:
Residential mortgage		4,316.3		40.1	3.72			4,314.0		39.1	3.62			4,224.0		36.4	3.45
Home equity line		1,154.0		10.1	3.45			1,119.3		9.2	3.31			991.1		7.2	2.87
Consumer		1,172.8		18.3	6.19			1,196.6		17.7	5.92			1,218.0		17.1	5.57
Lease financing		327.3		3.7	4.48			329.7		3.6	4.43			278.7		2.7	3.81
Total Loans and Leases		14,349.4		194.8	5.39			14,283.2		185.9	5.22			13,491.4		135.0	3.98
Other Earning Assets		116.8		0.8	2.64			119.8		0.3	0.99			75.9		0.1	0.69
Total Earning Assets^(2)^		22,060.5		241.3	4.35			22,186.3		230.5	4.16			22,258.1		177.7	3.18
Cash and Due from Banks		276.0						257.9						277.0
Other Assets		2,391.4						2,377.3						2,421.9
Total Assets	$	24,727.9					$	24,821.5					$	24,957.0

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	5,982.5	$	19.2	1.27	%	$	6,099.4	$	16.1	1.05	%		6,871.5	$	6.7	0.39	%
Money Market		3,907.2		24.7	2.51			3,809.8		19.6	2.07			4,086.1		4.8	0.47
Time		3,362.7		30.8	3.63			2,877.8		22.4	3.12			1,720.5		2.1	0.48
Total Interest-Bearing Deposits		13,252.4		74.7	2.23			12,787.0		58.1	1.82			12,678.1		13.6	0.43
Federal Funds Purchased		—		—	—			2.9		—	5.00			0.2		—	1.67
Other Short-Term Borrowings		113.1		1.5	5.17			362.9		4.7	5.16			—		—	—
Long-Term Borrowings		440.2		5.3	4.83			500.0		6.0	4.78			—		—	—
Other Interest-Bearing Liabilities		89.1		1.2	5.17			54.0		0.5	4.00			—		—	—
Total Interest-Bearing Liabilities		13,894.8		82.7	2.36			13,706.8		69.3	2.03			12,678.3		13.6	0.43
Net Interest Income			$	158.6					$	161.2					$	164.1
Interest Rate Spread					1.99	%					2.13	%					2.75	%
Net Interest Margin					2.86	%					2.91	%					2.93	%
Noninterest-Bearing Demand Deposits		7,959.7						8,270.3						9,469.9
Other Liabilities		506.0						500.1						541.6
Stockholders' Equity		2,367.4						2,344.3						2,267.2
Total Liabilities and Stockholders' Equity	$	24,727.9					$	24,821.5					$	24,957.0

(1)	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
(2)	Interest income includes taxable-equivalent basis adjustments of $1.5 million, $1.3 million and $1.3 million for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively.
---	---


Average Balances and Interest Rates											Table 5
	Nine Months Ended						Nine Months Ended
	September 30, 2023						September 30, 2022
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	493.6	$	18.8	5.10	%	$	1,051.7	$	7.3	0.93	%
Available-for-Sale Investment Securities
Taxable		2,964.0		54.8	2.47			5,145.3		64.9	1.68
Non-Taxable		13.0		0.5	5.57			227.9		4.4	2.59
Held-to-Maturity Investment Securities
Taxable		3,615.0		46.0	1.70			2,382.2		29.7	1.66
Non-Taxable		608.9		11.9	2.62			409.1		8.3	2.71
Total Investment Securities		7,200.9		113.2	2.10			8,164.5		107.3	1.75
Loans Held for Sale		0.3		—	6.11			0.7		—	2.92
Loans and Leases^(1)^
Commercial and industrial		2,193.8		104.3	6.35			1,983.5		50.3	3.39
Commercial real estate		4,224.7		194.6	6.16			3,820.6		98.8	3.46
Construction		874.0		45.4	6.95			738.4		20.7	3.74
Residential:
Residential mortgage		4,312.4		117.6	3.64			4,173.1		108.0	3.45
Home equity line		1,116.4		27.9	3.35			943.2		18.5	2.62
Consumer		1,194.1		53.2	5.95			1,218.2		48.1	5.29
Lease financing		322.9		10.5	4.34			248.7		6.7	3.60
Total Loans and Leases		14,238.3		553.5	5.19			13,125.7		351.1	3.57
Other Earning Assets		107.6		1.3	1.53			70.6		0.5	0.92
Total Earning Assets^(2)^		22,040.7		686.8	4.16			22,413.2		466.2	2.78
Cash and Due from Banks		273.3						289.9
Other Assets		2,385.8						2,392.3
Total Assets	$	24,699.8					$	25,095.4

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	6,144.1	$	49.1	1.07	%	$	6,837.8	$	8.9	0.17	%
Money Market		3,857.0		58.6	2.03			4,087.6		6.8	0.22
Time		2,921.8		68.3	3.12			1,713.4		5.3	0.41
Total Interest-Bearing Deposits		12,922.9		176.0	1.82			12,638.8		21.0	0.22
Federal Funds Purchased		23.0		0.8	4.45			0.1		—	1.67
Other Short-Term Borrowings		176.5		6.8	5.15			—		—	—
Long-Term Borrowings		349.8		12.5	4.78			—		—	—
Other Interest-Bearing Liabilities		62.1		2.1	4.63			—		—	—
Total Interest-Bearing Liabilities		13,534.3		198.2	1.96			12,638.9		21.0	0.22
Net Interest Income			$	488.6					$	445.2
Interest Rate Spread					2.20	%					2.56	%
Net Interest Margin					2.96	%					2.65	%
Noninterest-Bearing Demand Deposits		8,322.2						9,532.0
Other Liabilities		506.0						566.3
Stockholders' Equity		2,337.3						2,358.2
Total Liabilities and Stockholders' Equity	$	24,699.8					$	25,095.4

(1)	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
(2)	Interest income includes taxable-equivalent basis adjustments of $4.2 million and $3.5 million for the nine months ended September 30, 2023 and 2022, respectively.
---	---


Analysis of Change in Net Interest Income						Table 6
	Three Months Ended September 30, 2023
	Compared to June 30, 2023
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	0.6	$	0.4	$	1.0
Available-for-Sale Investment Securities
Taxable		(0.9)		1.3		0.4
Non-Taxable		(0.1)		—		(0.1)
Held-to-Maturity Investment Securities
Taxable		(0.3)		—		(0.3)
Non-Taxable		—		0.4		0.4
Total Investment Securities		(1.3)		1.7		0.4
Loans and Leases
Commercial and industrial		(2.1)		1.6		(0.5)
Commercial real estate		3.5		3.0		6.5
Construction		—		0.3		0.3
Residential:
Residential mortgage		—		1.0		1.0
Home equity line		0.4		0.5		0.9
Consumer		(0.3)		0.9		0.6
Lease financing		—		0.1		0.1
Total Loans and Leases		1.5		7.4		8.9
Other Earning Assets		—		0.5		0.5
Total Change in Interest Income		0.8		10.0		10.8

Change in Interest Expense:
Interest-Bearing Deposits
Savings		(0.3)		3.4		3.1
Money Market		0.5		4.6		5.1
Time		4.3		4.1		8.4
Total Interest-Bearing Deposits		4.5		12.1		16.6
Other Short-Term Borrowings		(3.2)		—		(3.2)
Long-Term Borrowings		(0.7)		—		(0.7)
Other Interest-Bearing Liabilities		0.5		0.2		0.7
Total Change in Interest Expense		1.1		12.3		13.4
Change in Net Interest Income	$	(0.3)	$	(2.3)	$	(2.6)


Analysis of Change in Net Interest Income						Table 7
	Three Months Ended September 30, 2023
	Compared to September 30, 2022
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	(0.7)	$	4.9	$	4.2
Available-for-Sale Investment Securities
Taxable		(5.2)		4.4		(0.8)
Non-Taxable		(0.6)		—		(0.6)
Held-to-Maturity Investment Securities
Taxable		(0.1)		0.5		0.4
Non-Taxable		—		(0.1)		(0.1)
Total Investment Securities		(5.9)		4.8		(1.1)
Loans and Leases
Commercial and industrial		1.0		14.0		15.0
Commercial real estate		4.1		25.0		29.1
Construction		1.8		5.1		6.9
Residential:
Residential mortgage		0.8		2.9		3.7
Home equity line		1.3		1.6		2.9
Consumer		(0.6)		1.8		1.2
Lease financing		0.5		0.5		1.0
Total Loans and Leases		8.9		50.9		59.8
Other Earning Assets		0.1		0.6		0.7
Total Change in Interest Income		2.4		61.2		63.6

Change in Interest Expense:
Interest-Bearing Deposits
Savings		(1.0)		13.5		12.5
Money Market		(0.2)		20.1		19.9
Time		3.7		25.0		28.7
Total Interest-Bearing Deposits		2.5		58.6		61.1
Other Short-Term Borrowings		1.5		—		1.5
Long-Term Borrowings		5.3		—		5.3
Other Interest-Bearing Liabilities		1.2		—		1.2
Total Change in Interest Expense		10.5		58.6		69.1
Change in Net Interest Income	$	(8.1)	$	2.6	$	(5.5)


Analysis of Change in Net Interest Income						Table 8
	Nine Months Ended September 30, 2023
	Compared to September 30, 2022
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	(5.7)	$	17.2	$	11.5
Available-for-Sale Investment Securities
Taxable		(33.6)		23.5		(10.1)
Non-Taxable		(6.3)		2.4		(3.9)
Held-to-Maturity Investment Securities
Taxable		15.6		0.7		16.3
Non-Taxable		3.9		(0.3)		3.6
Total Investment Securities		(20.4)		26.3		5.9
Loans and Leases
Commercial and industrial		5.9		48.1		54.0
Commercial real estate		11.4		84.4		95.8
Construction		4.3		20.4		24.7
Residential:
Residential mortgage		3.6		6.0		9.6
Home equity line		3.7		5.7		9.4
Consumer		(0.9)		6.0		5.1
Lease financing		2.3		1.5		3.8
Total Loans and Leases		30.3		172.1		202.4
Other Earning Assets		0.3		0.5		0.8
Total Change in Interest Income		4.5		216.1		220.6

Change in Interest Expense:
Interest-Bearing Deposits
Savings		(1.0)		41.2		40.2
Money Market		(0.4)		52.2		51.8
Time		6.1		56.9		63.0
Total Interest-Bearing Deposits		4.7		150.3		155.0
Federal Funds Purchased		0.8		—		0.8
Other Short-Term Borrowings		6.8		—		6.8
Long-Term Borrowings		12.5		—		12.5
Other Interest-Bearing Liabilities		2.1		—		2.1
Total Change in Interest Expense		26.9		150.3		177.2
Change in Net Interest Income	$	(22.4)	$	65.8	$	43.4


Loans and Leases											Table 9
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)	2023		****	2023		****	2022		****	2022
Commercial and industrial:
Commercial and industrial excluding Paycheck Protection Program loans	$	2,091,379		$	2,175,841		$	2,217,604		$	2,017,095
Paycheck Protection Program loans		10,063			11,990			18,293			26,712
Total commercial and industrial		2,101,442			2,187,831			2,235,897			2,043,807
Commercial real estate		4,387,751			4,290,948			4,132,309			4,103,310
Construction		885,112			913,837			844,643			765,862
Residential:
Residential mortgage		4,303,924			4,317,537			4,302,788			4,252,041
Home equity line		1,167,388			1,138,163			1,055,351			1,010,631
Total residential		5,471,312			5,455,700			5,358,139			5,262,672
Consumer		1,154,203			1,182,116			1,222,934			1,218,885
Lease financing		332,515			332,400			298,090			305,838
Total loans and leases	$	14,332,335		$	14,362,832		$	14,092,012		$	13,700,374


Deposits											Table 10
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)	2023		****	2023		****	2022		****	2022
Demand	$	7,898,996		$	8,166,627		$	8,864,646		$	9,317,093
Savings		6,028,308			5,835,975			6,382,910			6,724,783
Money Market		3,923,054			3,767,792			3,965,423			4,150,940
Time		3,661,131			3,307,772			2,476,050			1,898,922
Total Deposits	$	21,511,489		$	21,078,166		$	21,689,029		$	22,091,738


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)	2023		****	2023		****	2022		****	2022
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial	$	988		$	1,024		$	1,215		$	1,528
Commercial real estate		—			—			727			727
Total Commercial Loans		988			1,024			1,942			2,255
Residential Loans:
Residential mortgage		7,435			6,097			6,166			6,028
Home equity line		6,200			6,107			3,797			—
Total Residential Loans		13,635			12,204			9,963			6,028
Total Non-Accrual Loans and Leases		14,623			13,228			11,905			8,283
Other Real Estate Owned		—			—			91			139
Total Non-Performing Assets	$	14,623		$	13,228		$	11,996		$	8,422

Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial	$	289		$	599		$	291		$	1,445
Commercial real estate		170			619			—			—
Construction		—			—			—			390
Total Commercial Loans		459			1,218			291			1,835
Residential Loans:
Residential mortgage		1,430			58			58			—
Home equity line		—			—			—			1,832
Total Residential Loans		1,430			58			58			1,832
Consumer		1,681			1,975			2,885			1,976
Total Accruing Loans and Leases Past Due 90 Days or More	$	3,570		$	3,251		$	3,234		$	5,643

Total Loans and Leases	$	14,332,335		$	14,362,832		$	14,092,012		$	13,700,374


Allowance for Credit Losses and Reserve for Unfunded Commitments	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)	2023			2023		****	2022		****	2023			2022		****
Balance at Beginning of Period	$	184,780		$	183,321		$	177,900			177,735			187,584
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial		(784)			(997)			(328)			(2,572)			(1,277)
Commercial real estate		—			—			(750)			—			(750)
Total Commercial Loans		(784)			(997)			(1,078)			(2,572)			(2,027)
Residential Loans:
Residential mortgage		—			—			(1)			(122)			(1)
Home equity line		—			(137)			—			(272)			(1,163)
Total Residential Loans		—			(137)			(1)			(394)			(1,164)
Consumer		(3,665)			(4,516)			(3,986)			(12,963)			(11,754)
Total Loans and Leases Charged-Off		(4,449)			(5,650)			(5,065)			(15,929)			(14,945)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial		2,637			292			240			3,175			594
Commercial real estate		—			—			—			—			14
Lease financing		—			—			—			—			60
Total Commercial Loans		2,637			292			240			3,175			668
Residential Loans:
Residential mortgage		53			30			37			110			245
Home equity line		303			59			356			539			575
Total Residential Loans		356			89			393			649			820
Consumer		1,746			1,728			1,653			5,640			5,741
Total Recoveries on Loans and Leases Previously Charged-Off		4,739			2,109			2,286			9,464			7,229
Net Loans and Leases Recovered (Charged-Off)		290			(3,541)			(2,779)			(6,465)			(7,716)
Provision for Credit Losses		7,500			5,000			3,183			21,300			(1,564)
Balance at End of Period	$	192,570		$	184,780		$	178,304		$	192,570		$	178,304
Components:
Allowance for Credit Losses	$	154,795		$	148,581		$	148,163		$	154,795		$	148,163
Reserve for Unfunded Commitments		37,775			36,199			30,141			37,775			30,141
Total Allowance for Credit Losses and Reserve for Unfunded Commitments	$	192,570		$	184,780		$	178,304		$	192,570		$	178,304
Average Loans and Leases Outstanding	$	14,349,402		$	14,283,222		$	13,491,428		$	14,238,309		$	13,125,660
Ratio of Net Loans and Leases (Recovered) Charged-Off to Average Loans and Leases Outstanding^(1)^		(0.01)	%		0.10	%		0.08	%		0.06	%		0.08	%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding		1.08	%		1.03	%		1.08	%		1.08	%		1.08	%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases		10.59x			11.23x			17.89x			10.59x			17.89x

(1)	Annualized for the three and nine months ended September 30, 2023 and 2022 and three months ended June 30, 2023.


Loans and Leases by Year of Origination and Credit Quality Indicator																		Table 13
															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
													Amortized		Amortized
(dollars in thousands)	2023		2022		2021		2020		2019		Prior		Cost Basis		Cost Basis		Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass	$	55,062	$	294,558	$	368,460	$	35,603	$	150,195	$	147,197	$	906,094	$	3,427	$	1,960,596
Special Mention		1		31,427		95		730		1,125		1,569		2,677		87		37,711
Substandard		217		532		245		847		1,839		1,034		13,947		—		18,661
Other ^(1)^		13,438		12,424		5,575		2,856		2,226		1,513		46,442		—		84,474
Total Commercial and Industrial		68,718		338,941		374,375		40,036		155,385		151,313		969,160		3,514		2,101,442
Current period gross charge-offs		130		69		74		28		108		2,163		—		—		2,572

Commercial Real Estate
Risk rating:
Pass		288,996		881,117		665,048		329,663		559,287		1,508,430		60,613		—		4,293,154
Special Mention		2,322		7,643		41,304		543		6,935		13,039		12,483		—		84,269
Substandard		—		5,110		2,004		170		—		2,599		300		—		10,183
Other ^(1)^		—		—		—		—		—		145		—		—		145
Total Commercial Real Estate		291,318		893,870		708,356		330,376		566,222		1,524,213		73,396		—		4,387,751
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Construction
Risk rating:
Pass		129,160		209,227		335,433		59,164		64,168		28,916		3,826		—		829,894
Special Mention		—		—		—		—		197		669		—		—		866
Other ^(1)^		10,194		24,825		10,313		2,260		2,115		3,932		713		—		54,352
Total Construction		139,354		234,052		345,746		61,424		66,480		33,517		4,539		—		885,112
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Lease Financing
Risk rating:
Pass		83,255		88,367		19,869		35,583		34,828		69,043		—		—		330,945
Special Mention		—		—		341		38		—		—		—		—		379
Substandard		747		440		—		—		4		—		—		—		1,191
Total Lease Financing		84,002		88,807		20,210		35,621		34,832		69,043		—		—		332,515
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Total Commercial Lending	$	583,392	$	1,555,670	$	1,448,687	$	467,457	$	822,919	$	1,778,086	$	1,047,095	$	3,514	$	7,706,820
Current period gross charge-offs	$	130	$	69	$	74	$	28	$	108	$	2,163	$	—	$	—	$	2,572


															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
(continued)													Amortized		Amortized
(dollars in thousands)	2023		2022		2021		2020		2019		Prior		Cost Basis		Cost Basis		Total
Residential Lending
Residential Mortgage
FICO:
740 and greater	$	195,053	$	527,072	$	1,018,441	$	536,878	$	231,038	$	1,012,924	$	—	$	—	$	3,521,406
680 - 739		29,006		78,642		116,247		73,209		32,906		131,547		—		—		461,557
620 - 679		2,847		11,153		15,830		10,678		5,705		36,289		—		—		82,502
550 - 619		269		3,343		4,037		2,458		249		11,724		—		—		22,080
Less than 550		—		196		2,362		1,573		50		5,373		—		—		9,554
No Score ^(3)^		5,589		19,402		11,729		6,343		9,757		53,515		—		—		106,335
Other ^(2)^		10,518		17,079		17,682		12,840		8,733		26,171		7,467		—		100,490
Total Residential Mortgage		243,282		656,887		1,186,328		643,979		288,438		1,277,543		7,467		—		4,303,924
Current period gross charge-offs		—		—		—		—		—		122		—		—		122

Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		961,974		1,503		963,477
680 - 739		—		—		—		—		—		—		148,629		2,382		151,011
620 - 679		—		—		—		—		—		—		34,333		1,326		35,659
550 - 619		—		—		—		—		—		—		9,099		948		10,047
Less than 550		—		—		—		—		—		—		5,257		264		5,521
No Score ^(3)^		—		—		—		—		—		—		1,673		—		1,673
Total Home Equity Line		—		—		—		—		—		—		1,160,965		6,423		1,167,388
Current period gross charge-offs		—		—		—		—		—		—		254		18		272

Total Residential Lending	$	243,282	$	656,887	$	1,186,328	$	643,979	$	288,438	$	1,277,543	$	1,168,432	$	6,423	$	5,471,312
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	122	$	254	$	18	$	394

Consumer Lending
FICO:
740 and greater		85,839		139,753		84,741		39,390		27,790		13,589		116,342		153		507,597
680 - 739		60,184		79,628		43,948		20,531		16,192		8,577		74,428		416		303,904
620 - 679		21,797		32,632		18,094		8,650		9,214		6,191		33,543		892		131,013
550 - 619		3,745		10,422		7,898		4,953		5,597		4,069		12,456		684		49,824
Less than 550		774		5,629		4,519		3,175		3,048		2,459		4,567		560		24,731
No Score ^(3)^		1,455		297		—		—		5		13		41,852		150		43,772
Other ^(2)^		—		1,188		1,007		340		1,086		1		89,740		—		93,362
Total Consumer Lending	$	173,794	$	269,549	$	160,207	$	77,039	$	62,932	$	34,899	$	372,928	$	2,855	$	1,154,203
Current period gross charge-offs	$	152	$	1,710	$	1,723	$	880	$	1,500	$	1,995	$	4,541	$	462	$	12,963

Total Loans and Leases	$	1,000,468	$	2,482,106	$	2,795,222	$	1,188,475	$	1,174,289	$	3,090,528	$	2,588,455	$	12,792	$	14,332,335
Current period gross charge-offs	$	282	$	1,779	$	1,797	$	908	$	1,608	$	4,280	$	4,795	$	480	$	15,929

(1)	Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score.
(2)	Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating.
---	---
(3)	No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.
---	---


GAAP to Non-GAAP Reconciliation	Table 14
	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands)	2023		****	2023		****	2022		****	2023		****	2022
Income Statement Data:
Net income	$	58,221		$	62,442		$	69,018		$	187,481		$	186,097

Average total stockholders' equity	$	2,367,422		$	2,344,285		$	2,267,152		$	2,337,292		$	2,358,195
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible stockholders' equity	$	1,371,930		$	1,348,793		$	1,271,660		$	1,341,800		$	1,362,703

Average total assets	$	24,727,893		$	24,821,486		$	24,957,042		$	24,699,826		$	25,095,438
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible assets	$	23,732,401		$	23,825,994		$	23,961,550		$	23,704,334		$	24,099,946

Return on average total stockholders' equity^(1)^		9.76	%		10.68	%		12.08	%		10.72	%		10.55	%
Return on average tangible stockholders' equity (non-GAAP)^(1)^		16.84	%		18.57	%		21.53	%		18.68	%		18.26	%

Return on average total assets^(1)^		0.93	%		1.01	%		1.10	%		1.01	%		0.99	%
Return on average tangible assets (non-GAAP)^(1)^		0.97	%		1.05	%		1.14	%		1.06	%		1.03	%



	As of			As of			As of			As of
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands, except per share amounts)	2023		****	2023		****	2022		****	2022
Balance Sheet Data:
Total stockholders' equity	$	2,351,009		$	2,359,738		$	2,269,005		$	2,200,651
Less: goodwill		995,492			995,492			995,492			995,492
Tangible stockholders' equity	$	1,355,517		$	1,364,246		$	1,273,513		$	1,205,159

Total assets	$	24,912,524		$	24,511,566		$	24,577,223		$	24,870,272
Less: goodwill		995,492			995,492			995,492			995,492
Tangible assets	$	23,917,032		$	23,516,074		$	23,581,731		$	23,874,780

Shares outstanding		127,609,934			127,608,037			127,363,327			127,357,680

Total stockholders' equity to total assets		9.44	%		9.63	%		9.23	%		8.85	%
Tangible stockholders' equity to tangible assets (non-GAAP)		5.67	%		5.80	%		5.40	%		5.05	%

Book value per share	$	18.42		$	18.49		$	17.82		$	17.28
Tangible book value per share (non-GAAP)	$	10.62		$	10.69		$	10.00		$	9.46

(1)	Annualized for the three and nine months ended September 30, 2023 and 2022 and three months ended June 30, 2023.