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 23, 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 October 23, 2020, First Hawaiian, Inc. (together with its consolidated subsidiary, “First Hawaiian”) reported its earnings for the quarter ended September 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 October 23, 2020 containing financial information for its quarter ended September 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: October 23, 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 Third Quarter 2020 Financial Results and Declares Dividend

HONOLULU, Hawaii October 23, 2020--(Globe Newswire)--First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended September 30, 2020.

“In spite of the current economic environment, we reported solid financial results for the third quarter,” said Bob Harrison, Chairman, President and CEO. “These are still challenging times, but the re-opening of the local economy, and more recently, the pre-testing program for trans-Pacific travel, are important steps toward the state’s economic recovery.”

On October 21, 2020 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on December 4, 2020 to stockholders of record at the close of business on November 23, 2020.

Third Quarter 2020 Highlights:

●	Net income of $65.1 million, or $0.50 per diluted share
●	Net interest income increased $6.2 million, or 4.8% versus prior quarter
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●	Noninterest income increased $3.2 million, or 7.1% versus prior quarter
---	---
●	Consumer and commercial deposits increased $166.0 million and public deposits decreased $629.9 million versus the prior quarter
---	---
●	Net interest margin (“NIM”) was 2.70%, a 12 basis point increase versus the prior quarter
---	---
●	Recorded a $5.1 million provision for credit losses
---	---
●	Board of Directors declared a quarterly dividend of $0.26 per share
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Balance Sheet

Total assets were $22.3 billion as of September 30, 2020, compared to $23.0 billion as of June 30, 2020.

Gross loans and leases were $13.5 billion as of September 30, 2020, a decrease of $264.1 million, or 1.9%, from $13.8 billion as of June 30, 2020.

Total deposits were $18.9 billion as of September 30, 2020, a decrease of $463.9 million, or 2.4%, from $19.4 billion as of June 30, 2020.

Net Interest Income

Net interest income for the third quarter of 2020 was $134.0 million, an increase of $6.2 million, or 4.8%, compared to $127.8 million for the prior quarter.

The NIM was 2.70% in the third quarter of 2020, an increase of 12 basis points compared to 2.58% in the second quarter of 2020.

Provision Expense

During the quarter ended September 30, 2020, the Bank recorded a total provision for credit losses of $5.1 million. In the quarter ended June 30, 2020, the total provision for credit losses was $55.4 million.

Noninterest Income

Noninterest income was $48.9 million in the third quarter of 2020, an increase of $3.2 million compared to noninterest income of $45.7 million in the second quarter of 2020.

Noninterest Expense

Noninterest expense was $91.6 million in the third quarter of 2020, essentially unchanged from $91.5 million in the second quarter of 2020.

The efficiency ratio was 50.0% and 52.7% for the quarters ended September 30, 2020 and June 30, 2020, respectively.

Taxes

The effective tax rate was 24.5% for the quarter ended September 30, 2020 and 24.6% for the quarter ended June 30, 2020.

Asset Quality

The allowance for credit losses was $195.9 million, or 1.45% of total loans and leases, as of September 30, 2020, compared to $192.1 million, or 1.40% of total loans and leases, as of June 30, 2020. The reserve for unfunded commitments was $24.6 million as of September 30, 2020 compared to $23.2 million as of June 30, 2020. Net recoveries were $0.1 million, or 0.0% of average loans and leases on an annualized basis for the quarter ended September 30, 2020, compared to $23.4 million, or 0.67% of average loans and leases on an annualized basis for the quarter ended June 30, 2020. Total non-performing assets were $17.6 million, or 0.13% of total loans and leases and other real estate owned, at September 30, 2020, compared to non-performing assets of $33.3 million, or 0.24% of total loans and leases and other real estate owned, at June 30, 2020.

Capital

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

The tier 1 leverage, common equity tier 1 and total capital ratios were 7.91%, 12.22% and 13.47%, respectively, at September 30, 2020, compared with 7.75%, 11.86% and 13.11%, respectively, at June 30, 2020.

The Company suspended its stock repurchase program during the first quarter and did not repurchase any shares of common stock 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, 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: 5358159. A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location. A telephonic replay of the conference call will be available two hours after the conclusion of the call until 4:30 p.m. (Eastern Time) on October 30, 2020. Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 5358159.

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 Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 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 Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share data)	2020		****	2020		****	2019			2020		****	2019
Operating Results:
Net interest income	$	134,002		$	127,822		$	143,081		$	400,507		$	433,783
Provision for credit losses		5,072			55,446			—			101,718			9,550
Noninterest income		48,898			45,656			49,980			143,782			145,825
Noninterest expense		91,629			91,450			93,466			279,545			279,379
Net income		65,101			20,049			74,199			124,015			216,556
Basic earnings per share		0.50			0.15			0.56			0.95			1.62
Diluted earnings per share		0.50			0.15			0.56			0.95			1.61
Dividends declared per share		0.26			0.26			0.26			0.78			0.78
Dividend payout ratio		52.00	%		173.33	%		46.43	%		82.11	%		48.45	%
Supplemental Income Statement Data (non-GAAP):
Core net interest income	$	134,002		$	127,822		$	143,081		$	400,507		$	433,783
Core noninterest income		48,874			45,867			49,980			143,884			148,417
Core noninterest expense		91,629			91,450			91,222			279,545			276,613
Core net income		65,083			20,204			75,871			124,090			220,535
Core basic earnings per share		0.50			0.16			0.57			0.96			1.65
Core diluted earnings per share		0.50			0.16			0.57			0.95			1.64
Performance Ratio^(1)^:
Net interest margin		2.70	%		2.58	%		3.19	%		2.79	%		3.22	%
Core net interest margin (non-GAAP)		2.70	%		2.58	%		3.19	%		2.79	%		3.22	%
Efficiency ratio		50.01	%		52.70	%		48.41	%		51.32	%		48.20	%
Core efficiency ratio (non-GAAP)		50.02	%		52.64	%		47.25	%		51.31	%		47.51	%
Return on average total assets		1.16	%		0.36	%		1.45	%		0.76	%		1.42	%
Core return on average total assets (non-GAAP)		1.16	%		0.36	%		1.48	%		0.76	%		1.44	%
Return on average tangible assets (non-GAAP)		1.21	%		0.38	%		1.52	%		0.80	%		1.49	%
Core return on average tangible assets (non-GAAP)^(2)^		1.21	%		0.38	%		1.56	%		0.80	%		1.52	%
Return on average total stockholders' equity		9.58	%		2.99	%		11.12	%		6.16	%		11.13	%
Core return on average total stockholders' equity (non-GAAP)		9.57	%		3.01	%		11.37	%		6.17	%		11.34	%
Return on average tangible stockholders' equity (non-GAAP)		15.16	%		4.74	%		17.81	%		9.79	%		18.04	%
Core return on average tangible stockholders’ equity (non-GAAP)^(3)^		15.15	%		4.77	%		18.21	%		9.80	%		18.37	%
Average Balances:
Average loans and leases	$	13,559,367		$	13,956,669		$	13,032,349		$	13,569,119		$	13,105,086
Average earning assets		19,846,674			19,854,795			17,862,564			19,174,349			17,974,363
Average assets		22,341,485			22,341,654			20,332,457			21,667,948			20,405,261
Average deposits		18,892,033			18,540,394			16,573,796			17,995,196			16,700,366
Average stockholders' equity		2,704,129			2,697,775			2,648,428			2,687,632			2,600,259
Market Value Per Share:
Closing		14.47			17.24			26.70			14.47			26.70
High		18.96			21.50			27.84			31.25			28.20
Low		14.32			13.56			24.25			13.56			22.13


	As of			As of			As of			As of
	September 30,			June 30,			December 31,			September 30,
	2020			2020			2019			2019
Balance Sheet Data:
Loans and leases	$	13,499,969		$	13,764,030		$	13,211,650		$	12,843,396
Total assets		22,310,701			22,993,715			20,166,734			20,598,220
Total deposits		18,897,762			19,361,634			16,444,994			16,857,246
Short-term borrowings		—			200,000			400,000			400,000
Long-term borrowings		200,010			200,019			200,019			200,018
Total stockholders' equity		2,733,934			2,701,897			2,640,258			2,654,558

Per Share of Common Stock:
Book value	$	21.04		$	20.81		$	20.32		$	20.22
Tangible book value (non-GAAP)^(4)^		13.38			13.14			12.66			12.64

Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases		0.13	%		0.24	%		0.04	%		0.03	%
Allowance for credit losses for loans and leases / total loans and leases		1.45	%		1.40	%		0.99	%		1.04	%

Capital Ratios:
Common Equity Tier 1 Capital Ratio	****	12.22	%		11.86	%		11.88	%		12.15	%
Tier 1 Capital Ratio		12.22	%		11.86	%		11.88	%		12.15	%
Total Capital Ratio		13.47	%		13.11	%		12.81	%		13.11	%
Tier 1 Leverage Ratio		7.91	%		7.75	%		8.79	%		8.68	%
Total stockholders' equity to total assets		12.25	%		11.75	%		13.09	%		12.89	%
Tangible stockholders' equity to tangible assets (non-GAAP)		8.16	%		7.76	%		8.58	%		8.46	%

Non-Financial Data:
Number of branches		58			58			58			58
Number of ATMs		302			295			301			293
Number of Full-Time Equivalent Employees		2,099			2,100			2,092			2,099

(1)	Except for the efficiency ratio and the core efficiency ratio, amounts are annualized for the three and nine months ended September 30, 2020 and 2019 and the three months ended June 30, 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 Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
(dollars in thousands, except per share amounts)	2020		2020		2019		2020		2019
Interest income
Loans and lease financing	$	120,940	$	122,298	$	144,691	$	378,209	$	435,980
Available-for-sale securities		20,317		17,529		22,256		59,056		71,526
Other		670		792		3,234		3,813		9,054
Total interest income		141,927		140,619		170,181		441,078		516,560
Interest expense
Deposits		6,227		8,583		22,753		30,410		69,643
Short-term and long-term borrowings		1,698		4,214		4,347		10,161		13,134
Total interest expense		7,925		12,797		27,100		40,571		82,777
Net interest income		134,002		127,822		143,081		400,507		433,783
Provision for credit losses		5,072		55,446		—		101,718		9,550
Net interest income after provision for credit losses		128,930		72,376		143,081		298,789		424,233
Noninterest income
Service charges on deposit accounts		6,523		5,927		8,554		21,400		24,737
Credit and debit card fees		14,049		10,870		16,839		39,868		50,123
Other service charges and fees		9,021		7,912		8,903		25,472		27,435
Trust and investment services income		8,664		8,664		8,698		26,919		26,247
Bank-owned life insurance		4,903		4,432		5,743		11,595		12,946
Investment securities gains (losses), net		24		(211)		—		(102)		(2,592)
Other		5,714		8,062		1,243		18,630		6,929
Total noninterest income		48,898		45,656		49,980		143,782		145,825
Noninterest expense
Salaries and employee benefits		44,291		42,414		44,955		131,534		132,000
Contracted services and professional fees		15,073		15,478		14,649		46,606		42,597
Occupancy		6,921		7,302		7,250		21,466		21,522
Equipment		5,137		5,207		4,024		15,052		12,852
Regulatory assessment and fees		2,445		2,100		1,992		6,491		5,588
Advertising and marketing		1,374		1,402		1,647		4,599		5,593
Card rewards program		5,046		5,163		6,930		17,224		21,326
Other		11,342		12,384		12,019		36,573		37,901
Total noninterest expense		91,629		91,450		93,466		279,545		279,379
Income before provision for income taxes		86,199		26,582		99,595		163,026		290,679
Provision for income taxes		21,098		6,533		25,396		39,011		74,123
Net income	$	65,101	$	20,049	$	74,199	$	124,015	$	216,556
Basic earnings per share	$	0.50	$	0.15	$	0.56	$	0.95	$	1.62
Diluted earnings per share	$	0.50	$	0.15	$	0.56	$	0.95	$	1.61
Basic weighted-average outstanding shares		129,896,054		129,856,730		132,583,902		129,882,878		133,957,192
Diluted weighted-average outstanding shares		130,085,534		130,005,195		132,877,769		130,129,690		134,231,762


Consolidated Balance Sheets	Table 3
	September 30,		June 30,		December 31,		September 30,
(dollars in thousands)	2020		2020		2019		2019
Assets
Cash and due from banks	$	333,744	$	347,592	$	360,375	$	358,863
Interest-bearing deposits in other banks		482,585		1,507,630		333,642		985,154
Investment securities, at fair value (amortized cost: $5,584,556 as of September 30, 2020, $5,025,433 as of June 30, 2020, $4,080,663 as of December 31, 2019 and $4,143,124 as of September 30, 2019)		5,692,883		5,135,775		4,075,644		4,157,082
Loans held for sale		34,669		6,698		904		1,594
Loans and leases		13,499,969		13,764,030		13,211,650		12,843,396
Less: allowance for credit losses		195,876		192,120		130,530		132,964
Net loans and leases		13,304,093		13,571,910		13,081,120		12,710,432

Premises and equipment, net		321,229		322,919		316,885		315,309
Other real estate owned and repossessed personal property		—		446		319		82
Accrued interest receivable		66,005		58,420		45,239		44,671
Bank-owned life insurance		462,422		458,720		453,873		453,410
Goodwill		995,492		995,492		995,492		995,492
Mortgage servicing rights		10,922		11,595		12,668		13,630
Other assets		606,657		576,518		490,573		562,501
Total assets	$	22,310,701	$	22,993,715	$	20,166,734	$	20,598,220
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing	$	11,989,492	$	12,481,543	$	10,564,922	$	11,136,424
Noninterest-bearing		6,908,270		6,880,091		5,880,072		5,720,822
Total deposits		18,897,762		19,361,634		16,444,994		16,857,246
Short-term borrowings		—		200,000		400,000		400,000
Long-term borrowings		200,010		200,019		200,019		200,018
Retirement benefits payable		138,806		138,624		138,222		128,442
Other liabilities		340,189		391,541		343,241		357,956
Total liabilities		19,576,767		20,291,818		17,526,476		17,943,662

Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,190,428 / 129,911,789 shares as of September 30, 2020, issued/outstanding: 140,140,542 / 129,866,898 shares as of June 30, 2020, issued/outstanding: 139,917,150 / 129,928,479 shares as of December 31, 2019 and issued/outstanding: 139,908,699 / 131,260,900 shares as of September 30, 2019)		1,402		1,401		1,399		1,399
Additional paid-in capital		2,511,849		2,509,271		2,503,677		2,501,324
Retained earnings		446,315		415,296		437,072		403,317
Accumulated other comprehensive income (loss), net		51,254		52,731		(31,749)		(18,774)
Treasury stock (10,278,639 shares as of September 30, 2020, 10,273,644 shares as of June 30, 2020, 9,988,671 shares as of December 31, 2019 and 8,647,799 shares as of September 30, 2019)		(276,886)		(276,802)		(270,141)		(232,708)
Total stockholders' equity		2,733,934		2,701,897		2,640,258		2,654,558
Total liabilities and stockholders' equity	$	22,310,701	$	22,993,715	$	20,166,734	$	20,598,220


Average Balances and Interest Rates																	Table 4
	Three Months Ended						Three Months Ended						Three Months Ended
	September 30, 2020						June 30, 2020						September 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	$	889.6	$	0.2	0.10	%	$	1,436.2	$	0.4	0.10	%	$	447.8	$	2.3		2.02	%
Available-for-Sale Investment Securities		5,334.2		20.3	1.53			4,390.4		17.5	1.60			4,296.3		22.3		2.07
Loans Held for Sale		10.2		0.1	2.67			9.8		0.1	2.93			1.4		—		2.36
Loans and Leases^(1)^
Commercial and industrial		3,230.4		21.6	2.67			3,601.0		24.3	2.71			2,885.9		30.0		4.12
Commercial real estate		3,418.0		27.8	3.23			3,438.8		28.3	3.31			3,294.7		37.3		4.49
Construction		637.6		5.2	3.22			584.1		4.9	3.35			477.2		5.6		4.67
Residential:
Residential mortgage		3,680.5		37.9	4.12			3,682.7		35.7	3.88			3,644.9		38.6		4.23
Home equity line		871.1		6.6	3.02			885.2		6.8	3.07			912.8		8.6		3.74
Consumer		1,474.4		20.2	5.46			1,526.5		20.6	5.42			1,651.4		23.3		5.61
Lease financing		247.4		1.8	2.90			238.4		1.7	2.88			165.4		1.3		3.14
Total Loans and Leases		13,559.4		121.1	3.56			13,956.7		122.3	3.52			13,032.3		144.7		4.41
Other Earning Assets		53.3		0.5	3.32			61.7		0.4	2.79			84.8		0.9		4.47
Total Earning Assets^(2)^		19,846.7		142.2	2.86			19,854.8		140.7	2.84			17,862.6		170.2		3.79
Cash and Due from Banks		307.9						295.1						341.7
Other Assets		2,186.9						2,191.8						2,128.2
Total Assets	$	22,341.5					$	22,341.7					$	20,332.5

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	5,768.3	$	0.6	0.04	%	$	5,501.9	$	0.9	0.07	%		4,891.5	$	4.6		0.37	%
Money Market		3,288.2		0.4	0.05			3,270.3		1.1	0.13			3,067.4		7.1		0.92
Time		3,029.8		5.2	0.69			3,335.6		6.6	0.79			2,872.6		11.1		1.54
Total Interest-Bearing Deposits		12,086.3		6.2	0.20			12,107.8		8.6	0.29			10,831.5		22.8		0.83
Short-Term Borrowings		45.1		0.3	2.69			395.6		2.8	2.88			370.0		2.6		2.84
Long-Term Borrowings		200.0		1.4	2.77			200.0		1.4	2.77			239.1		1.7		2.82
Total Interest-Bearing Liabilities		12,331.4		7.9	0.26			12,703.4		12.8	0.41			11,440.6		27.1		0.94
Net Interest Income			$	134.3					$	127.9					$	143.1
Interest Rate Spread					2.60	%					2.43	%						2.85	%
Net Interest Margin					2.70	%					2.58	%						3.19	%
Noninterest-Bearing Demand Deposits		6,805.7						6,432.6						5,742.3
Other Liabilities		500.3						507.9						501.2
Stockholders' Equity		2,704.1						2,697.8						2,648.4
Total Liabilities and Stockholders' Equity	$	22,341.5					$	22,341.7					$	20,332.5

(1)	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
(2)	Interest income includes taxable-equivalent basis adjustments of $0.3 million, $0.1 million and nil for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively.
---	---


Average Balances and Interest Rates											Table 5
	Nine Months Ended						Nine Months Ended
	September 30, 2020						September 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	$	947.3	$	2.2	0.31	%	$	400.6	$	6.9	2.31	%
Available-for-Sale Investment Securities		4,588.7		59.1	1.72			4,383.6		71.5	2.18
Loans Held for Sale		11.9		0.2	2.31			0.8		—	2.52
Loans and Leases^(1)^
Commercial and industrial		3,202.4		70.5	2.94			3,094.8		97.5	4.21
Commercial real estate		3,423.9		90.7	3.54			3,129.8		108.1	4.62
Construction		586.9		15.8	3.59			565.2		20.0	4.73
Residential:
Residential mortgage		3,700.8		111.3	4.01			3,590.2		112.4	4.17
Home equity line		881.2		21.1	3.20			912.4		25.9	3.79
Consumer		1,537.5		63.9	5.55			1,658.7		68.5	5.52
Lease financing		236.4		5.1	2.90			154.0		3.6	3.15
Total Loans and Leases		13,569.1		378.4	3.72			13,105.1		436.0	4.44
Other Earning Assets		57.3		1.6	3.78			84.3		2.2	3.37
Total Earning Assets^(2)^		19,174.3		441.5	3.07			17,974.4		516.6	3.84
Cash and Due from Banks		310.1						348.1
Other Assets		2,183.5						2,082.8
Total Assets	$	21,667.9					$	20,405.3

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	5,454.7	$	4.7	0.12	%	$	4,806.0	$	12.8	0.35	%
Money Market		3,208.1		6.1	0.25			3,125.5		22.1	0.95
Time		2,966.9		19.6	0.88			2,999.0		34.8	1.55
Total Interest-Bearing Deposits		11,629.7		30.4	0.35			10,930.5		69.7	0.85
Short-Term Borrowings		279.9		6.0	2.87			145.7		3.0	2.76
Long-Term Borrowings		200.0		4.2	2.77			476.2		10.1	2.84
Total Interest-Bearing Liabilities		12,109.6		40.6	0.45			11,552.4		82.8	0.96
Net Interest Income			$	400.9					$	433.8
Interest Rate Spread					2.62	%					2.88	%
Net Interest Margin					2.79	%					3.22	%
Noninterest-Bearing Demand Deposits		6,365.5						5,769.9
Other Liabilities		505.2						482.7
Stockholders' Equity		2,687.6						2,600.3
Total Liabilities and Stockholders' Equity	$	21,667.9					$	20,405.3

(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 $0.4 million and nil for the nine months ended September 30, 2020 and 2019, respectively.
---	---


Analysis of Change in Net Interest Income						Table 6
	Three Months Ended September 30, 2020
	Compared to June 30, 2020
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	(0.2)	$	—	$	(0.2)
Available-for-Sale Investment Securities		3.6		(0.8)		2.8
Loans and Leases
Commercial and industrial		(2.3)		(0.4)		(2.7)
Commercial real estate		(0.1)		(0.4)		(0.5)
Construction		0.5		(0.2)		0.3
Residential:
Residential mortgage		—		2.2		2.2
Home equity line		(0.1)		(0.1)		(0.2)
Consumer		(0.6)		0.2		(0.4)
Lease financing		0.1		—		0.1
Total Loans and Leases		(2.5)		1.3		(1.2)
Other Earning Assets		—		0.1		0.1
Total Change in Interest Income		0.9		0.6		1.5

Change in Interest Expense:
Interest-Bearing Deposits
Savings		0.1		(0.4)		(0.3)
Money Market		—		(0.7)		(0.7)
Time		(0.6)		(0.8)		(1.4)
Total Interest-Bearing Deposits		(0.5)		(1.9)		(2.4)
Short-Term Borrowings		(2.3)		(0.2)		(2.5)
Total Change in Interest Expense		(2.8)		(2.1)		(4.9)
Change in Net Interest Income	$	3.7	$	2.7	$	6.4


Analysis of Change in Net Interest Income						Table 7
	Three Months Ended September 30, 2020
	Compared to September 30, 2019
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	1.1	$	(3.2)	$	(2.1)
Available-for-Sale Investment Securities		4.6		(6.6)		(2.0)
Loans Held for Sale		0.1		—		0.1
Loans and Leases
Commercial and industrial		3.2		(11.6)		(8.4)
Commercial real estate		1.3		(10.8)		(9.5)
Construction		1.6		(2.0)		(0.4)
Residential:
Residential mortgage		0.4		(1.1)		(0.7)
Home equity line		(0.4)		(1.6)		(2.0)
Consumer		(2.5)		(0.6)		(3.1)
Lease financing		0.6		(0.1)		0.5
Total Loans and Leases		4.2		(27.8)		(23.6)
Other Earning Assets		(0.3)		(0.1)		(0.4)
Total Change in Interest Income		9.7		(37.7)		(28.0)

Change in Interest Expense:
Interest-Bearing Deposits
Savings		0.7		(4.7)		(4.0)
Money Market		0.4		(7.1)		(6.7)
Time		0.6		(6.5)		(5.9)
Total Interest-Bearing Deposits		1.7		(18.3)		(16.6)
Short-Term Borrowings		(2.2)		(0.1)		(2.3)
Long-Term Borrowings		(0.3)		—		(0.3)
Total Change in Interest Expense		(0.8)		(18.4)		(19.2)
Change in Net Interest Income	$	10.5	$	(19.3)	$	(8.8)


Analysis of Change in Net Interest Income						Table 8
	Nine Months Ended September 30, 2020
	Compared to September 30, 2019
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	4.5	$	(9.2)	$	(4.7)
Available-for-Sale Investment Securities		3.2		(15.6)		(12.4)
Loans Held for Sale		0.2		—		0.2
Loans and Leases
Commercial and industrial		3.3		(30.3)		(27.0)
Commercial real estate		9.5		(26.9)		(17.4)
Construction		0.8		(5.0)		(4.2)
Residential:
Residential mortgage		3.3		(4.4)		(1.1)
Home equity line		(0.9)		(3.9)		(4.8)
Consumer		(5.0)		0.4		(4.6)
Lease financing		1.8		(0.3)		1.5
Total Loans and Leases		12.8		(70.4)		(57.6)
Other Earning Assets		(0.8)		0.2		(0.6)
Total Change in Interest Income		19.9		(95.0)		(75.1)

Change in Interest Expense:
Interest-Bearing Deposits
Savings		1.4		(9.5)		(8.1)
Money Market		0.6		(16.6)		(16.0)
Time		(0.4)		(14.8)		(15.2)
Total Interest-Bearing Deposits		1.6		(40.9)		(39.3)
Short-Term Borrowings		2.9		0.1		3.0
Long-Term Borrowings		(5.7)		(0.2)		(5.9)
Total Change in Interest Expense		(1.2)		(41.0)		(42.2)
Change in Net Interest Income	$	21.1	$	(54.0)	$	(32.9)


Loans and Leases											Table 9
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)	2020		****	2020		****	2019		****	2019
Commercial and industrial	$	3,170,262	****	$	3,423,708	****	$	2,743,242	****	$	2,654,077
Commercial real estate		3,461,085			3,423,499			3,463,953			3,309,389
Construction		662,871			617,935			519,241			486,977
Residential:
Residential mortgage		3,669,051			3,691,950			3,768,936			3,671,424
Home equity line		864,789			876,491			893,239			916,106
Total residential		4,533,840			4,568,441			4,662,175			4,587,530
Consumer		1,425,934			1,492,160			1,620,556			1,637,549
Lease financing		245,977			238,287			202,483			167,874
Total loans and leases	$	13,499,969		$	13,764,030		$	13,211,650		$	12,843,396


Deposits											Table 10
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands)	2020		****	2020		****	2019		****	2019
Demand	$	6,908,270		$	6,880,091		$	5,880,072		$	5,720,822
Savings		5,994,687			5,727,367			4,998,933			4,899,468
Money Market		3,379,985			3,247,511			3,055,832			3,529,363
Time		2,614,820			3,506,665			2,510,157			2,707,593
Total Deposits	$	18,897,762		$	19,361,634		$	16,444,994		$	16,857,246


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)	2020		****	2020		****	2019		****	2019
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial	$	725		$	11,559		$	32		$	12
Commercial real estate		7,067			13,168			30			33
Construction		2,043			2,043			—			—
Total Commercial Loans		9,835			26,770			62			45
Residential Loans:
Residential mortgage		7,798			6,059			5,406			3,959
Total Residential Loans		7,798			6,059			5,406			3,959
Consumer		—			—			—			200
Total Non-Accrual Loans and Leases		17,633			32,829			5,468			4,204
Other Real Estate Owned		—			446			319			82
Total Non-Performing Assets	$	17,633		$	33,275		$	5,787		$	4,286

Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial	$	1,938		$	2,309		$	1,429		$	750
Commercial real estate		1,307			900			1,013			—
Construction		100			248			2,367			—
Total Commercial Loans		3,345			3,457			4,809			750
Residential Loans:
Residential mortgage		—			—			74			139
Home equity line		4,503			4,496			2,995			3,192
Total Residential Loans		4,503			4,496			3,069			3,331
Consumer		2,897			2,167			4,272			3,076
Total Accruing Loans and Leases Past Due 90 Days or More	$	10,745		$	10,120		$	12,150		$	7,157

Restructured Loans on Accrual Status and Not Past Due 90 Days or More	$	9,726		$	11,182		$	14,493		$	22,350
Total Loans and Leases	$	13,499,969		$	13,764,030		$	13,211,650		$	12,843,396


Allowance for Credit Losses														Table 12
	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
(dollars in thousands)	2020			2020		****	2019		****	2020			2019		****
Balance at Beginning of Period	$	192,120		$	166,013		$	138,535		$	130,530		$	141,718
Adjustment to Adopt ASC Topic 326		—			—			—			770			—
After Adoption of ASC Topic 326		192,120			166,013			138,535			131,300			141,718
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial		(598)			(13,974)			(514)			(14,773)			(2,514)
Commercial real estate		—			(2,723)			—			(2,723)			—
Construction		—			(379)			—			(379)			—
Lease financing		—			—			—			—			(24)
Total Commercial Loans		(598)			(17,076)			(514)			(17,875)			(2,538)
Residential Loans:
Residential mortgage		—			(14)			(7)			(14)			(7)
Home equity line		—			—			—			(8)			—
Total Residential Loans		—			(14)			(7)			(22)			(7)
Consumer		(4,238)			(8,907)			(8,015)			(21,742)			(24,118)
Total Loans and Leases Charged-Off		(4,836)			(25,997)			(8,536)			(39,639)			(26,663)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial		1,699			100			241			2,019			303
Commercial real estate		—			—			30			—			93
Construction		30			30			—			170			—
Total Commercial Loans		1,729			130			271			2,189			396
Residential Loans:
Residential mortgage		27			17			368			179			704
Home equity line		16			8			57			146			156
Total Residential Loans		43			25			425			325			860
Consumer		3,148			2,456			2,269			7,687			7,103
Total Recoveries on Loans and Leases Previously Charged-Off		4,920			2,611			2,965			10,201			8,359
Net Loans and Leases Recovered (Charged-Off)		84			(23,386)			(5,571)			(29,438)			(18,304)
Provision for Credit Losses - Loans and Leases		3,672			49,493			—			94,014			9,550
Balance at End of Period	$	195,876		$	192,120		$	132,964		$	195,876		$	132,964
Average Loans and Leases Outstanding	$	13,559,367		$	13,956,669		$	13,032,349		$	13,569,119		$	13,105,086
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding^(1)^		-	%		0.67	%		0.17	%		0.29	%		0.19	%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding		1.45	%		1.40	%		1.04	%		1.45	%		1.04	%

(1)	Annualized for the three and nine months ended September 30, 2020 and 2019 and three months ended June 30, 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	$	999,763	$	330,209	$	202,595	$	76,154	$	52,391	$	92,446	$	1,033,278	$	26,148	$	2,812,984
Special Mention		25,677		7,786		33,794		2,354		306		791		105,339		452		176,499
Substandard		23,836		2,172		2,611		1,395		4,265		9,375		37,883		283		81,820
Doubtful		—		—		—		—		—		195		—		—		195
Other ^(1)^		12,084		15,053		10,998		6,439		2,454		492		51,244		—		98,764
Total Commercial and Industrial		1,061,360		355,220		249,998		86,342		59,416		103,299		1,227,744		26,883		3,170,262

Commercial Real Estate
Risk rating:
Pass		289,941		625,894		544,367		447,473		305,557		880,689		36,258		2		3,130,181
Special Mention		1,487		94,217		30,760		39,438		31,211		58,911		2,999		—		259,023
Substandard		—		10,882		14,594		6,972		10,685		19,240		9,006		—		71,379
Other ^(1)^		—		—		—		—		—		502		—		—		502
Total Commercial Real Estate		291,428		730,993		589,721		493,883		347,453		959,342		48,263		2		3,461,085

Construction
Risk rating:
Pass		32,810		182,503		187,257		91,415		24,053		42,269		26,133		—		586,440
Special Mention		—		515		1,647		4,749		—		9,172		—		—		16,083
Substandard		—		—		538		1,840		525		1,043		—		—		3,946
Other ^(1)^		13,349		23,382		8,804		4,264		1,796		4,222		585		—		56,402
Total Construction		46,159		206,400		198,246		102,268		26,374		56,706		26,718		—		662,871

Lease Financing
Risk rating:
Pass		68,770		66,472		15,044		18,063		4,110		63,537		—		—		235,996
Special Mention		—		940		158		1,376		424		643		—		—		3,541
Substandard		2,703		1,680		359		1,174		—		524		—		—		6,440
Total Lease Financing		71,473		69,092		15,561		20,613		4,534		64,704		—		—		245,977

Total Commercial Lending	$	1,470,420	$	1,361,705	$	1,053,526	$	703,106	$	437,777	$	1,184,051	$	1,302,725	$	26,885	$	7,540,195


															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	$	457,209	$	410,369	$	319,988	$	390,552	$	341,709	$	919,509	$	—	$	—	$	2,839,336
680 - 739		71,240		54,497		55,179		59,237		44,911		162,726		—		—		447,790
620 - 679		12,653		11,595		9,753		8,559		8,942		48,554		—		—		100,056
550 - 619		1,946		2,316		3,923		5,423		4,506		13,256		—		—		31,370
Less than 550		—		—		534		2,153		953		3,480		—		—		7,120
No Score ^(3)^		14,827		19,364		22,222		22,616		14,954		49,251		—		—		143,234
Other ^(2)^		16,598		17,402		17,874		22,807		11,060		13,653		579		172		100,145
Total Residential Mortgage		574,473		515,543		429,473		511,347		427,035		1,210,429		579		172		3,669,051

Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		617,973		5,600		623,573
680 - 739		—		—		—		—		—		—		163,305		3,799		167,104
620 - 679		—		—		—		—		—		—		47,448		1,295		48,743
550 - 619		—		—		—		—		—		—		13,210		1,464		14,674
Less than 550		—		—		—		—		—		—		4,750		613		5,363
No Score ^(3)^		—		—		—		—		—		—		5,332		—		5,332
Total Home Equity Line		—		—		—		—		—		—		852,018		12,771		864,789
Total Residential Lending		574,473		515,543		429,473		511,347		427,035		1,210,429		852,597		12,943		4,533,840

Consumer Lending
FICO:
740 and greater		102,091		127,590		106,359		61,204		28,613		8,443		105,905		—		540,205
680 - 739		67,228		100,723		77,874		42,470		20,280		7,302		77,445		—		393,322
620 - 679		29,733		60,484		39,213		27,825		13,701		5,148		39,748		—		215,852
550 - 619		5,927		24,376		21,050		18,784		9,388		4,134		16,484		—		100,143
Less than 550		1,558		11,200		11,967		9,579		4,671		1,969		6,590		—		47,534
No Score ^(3)^		3,998		120		105		115		23		—		33,654		—		38,015
Other ^(2)^		886		9,144		89		2,219		47		6,787		71,691		—		90,863
Total Consumer Lending		211,421		333,637		256,657		162,196		76,723		33,783		351,517		—		1,425,934

Total Loans and Leases	$	2,256,314	$	2,210,885	$	1,739,656	$	1,376,649	$	941,535	$	2,428,263	$	2,506,839	$	39,828	$	13,499,969

(1)	Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score.
(2)	Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating.
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(3)	No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.
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GAAP to Non-GAAP Reconciliation														Table 14
	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share amounts)	2020		****	2020		****	2019		****	2020		****	2019
Income Statement Data:
Net income	$	65,101		$	20,049		$	74,199		$	124,015		$	216,556
Core net income	$	65,083		$	20,204		$	75,871		$	124,090		$	220,535

Average total stockholders' equity	$	2,704,129		$	2,697,775		$	2,648,428		$	2,687,632		$	2,600,259
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible stockholders' equity	$	1,708,637		$	1,702,283		$	1,652,936		$	1,692,140		$	1,604,767

Average total assets	$	22,341,485		$	22,341,654		$	20,332,457		$	21,667,948		$	20,405,261
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible assets	$	21,345,993		$	21,346,162		$	19,336,965		$	20,672,456		$	19,409,769

Return on average total stockholders' equity^(1)^		9.58	%		2.99	%		11.12	%		6.16	%		11.13	%
Core return on average total stockholders' equity (non-GAAP)^(1)^		9.57	%		3.01	%		11.37	%		6.17	%		11.34	%
Return on average tangible stockholders' equity (non-GAAP)^(1)^		15.16	%		4.74	%		17.81	%		9.79	%		18.04	%
Core return on average tangible stockholders' equity (non-GAAP)^(1)^		15.15	%		4.77	%		18.21	%		9.80	%		18.37	%

Return on average total assets^(1)^		1.16	%		0.36	%		1.45	%		0.76	%		1.42	%
Core return on average total assets (non-GAAP)^(1)^		1.16	%		0.36	%		1.48	%		0.76	%		1.44	%
Return on average tangible assets (non-GAAP)^(1)^		1.21	%		0.38	%		1.52	%		0.80	%		1.49	%
Core return on average tangible assets (non-GAAP)^(1)^		1.21	%		0.38	%		1.56	%		0.80	%		1.52	%



	As of			As of			As of			As of
	September 30,			June 30,			December 31,			September 30,
	2020		****	2020		****	2019		****	2019
Balance Sheet Data:
Total stockholders' equity	$	2,733,934		$	2,701,897		$	2,640,258		$	2,654,558
Less: goodwill		995,492			995,492			995,492			995,492
Tangible stockholders' equity	$	1,738,442		$	1,706,405		$	1,644,766		$	1,659,066

Total assets	$	22,310,701		$	22,993,715		$	20,166,734		$	20,598,220
Less: goodwill		995,492			995,492			995,492			995,492
Tangible assets	$	21,315,209		$	21,998,223		$	19,171,242		$	19,602,728

Shares outstanding		129,911,789			129,866,898			129,928,479			131,260,900

Total stockholders' equity to total assets		12.25	%		11.75	%		13.09	%		12.89	%
Tangible stockholders' equity to tangible assets (non-GAAP)		8.16	%		7.76	%		8.58	%		8.46	%

Book value per share	$	21.04		$	20.81		$	20.32		$	20.22
Tangible book value per share (non-GAAP)	$	13.38		$	13.14		$	12.66		$	12.64

(1)	Annualized for the three and nine months ended September 30, 2020 and 2019 and three months ended June 30, 2020.


GAAP to Non-GAAP Reconciliation														Table 15
	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share amounts)	2020			2020		****	2019		****	2020		****	2019
Net interest income	$	134,002		$	127,822		$	143,081		$	400,507		$	433,783
Core net interest income (non-GAAP)	$	134,002		$	127,822		$	143,081		$	400,507		$	433,783

Noninterest income	$	48,898		$	45,656		$	49,980		$	143,782		$	145,825
(Gains) losses on sale of securities		(24)			211			—			102			2,592
Core noninterest income (non-GAAP)	$	48,874		$	45,867		$	49,980		$	143,884		$	148,417

Noninterest expense	$	91,629		$	91,450		$	93,466		$	279,545		$	279,379
One-time items^(1)^		—			—			(2,244)			—			(2,766)
Core noninterest expense (non-GAAP)	$	91,629		$	91,450		$	91,222		$	279,545		$	276,613

Net income	$	65,101		$	20,049		$	74,199		$	124,015		$	216,556
(Gains) losses on sale of securities		(24)			211			—			102			2,592
One-time noninterest expense items^(1)^		—			—			2,244			—			2,766
Tax adjustments^(2)^		6			(56)			(572)			(27)			(1,379)
Total core adjustments		(18)			155			1,672			75			3,979
Core net income (non-GAAP)	$	65,083		$	20,204		$	75,871		$	124,090		$	220,535

Basic earnings per share	$	0.50		$	0.15		$	0.56		$	0.95		$	1.62
Diluted earnings per share	$	0.50		$	0.15		$	0.56		$	0.95		$	1.61
Efficiency ratio		50.01	%		52.70	%		48.41	%		51.32	%		48.20	%

Core basic earnings per share (non-GAAP)	$	0.50		$	0.16		$	0.57		$	0.96		$	1.65
Core diluted earnings per share (non-GAAP)	$	0.50		$	0.16		$	0.57		$	0.95		$	1.64
Core efficiency ratio (non-GAAP)		50.02	%		52.64	%		47.25	%		51.31	%		47.51	%

(1)	One-time items for the three and nine months ended September 30, 2019 included costs related to a nonrecurring payment for a former executive of the Company pursuant to the Bank’s Executive Change-in-Control Retention Plan, nonrecurring offering costs and the loss on our funding swap as a result of a 2019 decrease in the conversion rate of our Visa Class B restricted shares sold in 2016.
(2)	Represents the adjustments to net income, tax effected at the Company’s effective tax rate for the respective period.
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