0000036377false00000363772020-07-242020-07-24

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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)

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Delaware

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(State or Other Jurisdiction of Incorporation)

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001-14585

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99-0156159

(Commission File Number)

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(IRS Employer Identification No.)

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999 Bishop St., 29th Floor

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Honolulu, Hawaii

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96813

(Address of Principal Executive Offices)

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(Zip Code)

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(808) 525-7000

(Registrant’s Telephone Number, Including Area Code)

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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:

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

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

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

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

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

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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

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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).

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Emerging growth company ☐

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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. ☐

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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

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Exhibit No.

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Description

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99.1

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Press release of First Hawaiian, Inc. dated October 23, 2020 containing financial information for its quarter ended September 30, 2020.

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104

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

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2

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

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FIRST HAWAIIAN, INC.

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Date: October 23, 2020

By:

/s/ Robert S. Harrison

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Robert S. Harrison

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Chairman of the Board, President and Chief Executive Officer

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(Principal Executive Officer)

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3

EXHIBIT 99.1

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Graphic

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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.

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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
●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.

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Investor Relations Contact:

Media Contact:

Kevin Haseyama, CFA

Susan Kam

(808) 525-6268

(808) 525-6254

[email protected]

[email protected]

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Financial Highlights

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Table 1

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For the Three Months Ended

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For the Nine Months Ended

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September 30, 

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June 30, 

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September 30, 

​

September 30, 

​

(dollars in thousands, except per share data)

    

2020

    

2020

    

2019

    

2020

    

2019

 

Operating Results:

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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

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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):

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Core net interest income

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$

134,002

​

$

127,822

​

$

143,081

​

$

400,507

​

$

433,783

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Core noninterest income

​

​

48,874

​

​

45,867

​

​

49,980

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​

143,884

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​

148,417

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Core noninterest expense

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​

91,629

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​

91,450

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​

91,222

​

​

279,545

​

​

276,613

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Core net income

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​

65,083

​

​

20,204

​

​

75,871

​

​

124,090

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​

220,535

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Core basic earnings per share

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​

0.50

​

​

0.16

​

​

0.57

​

​

0.96

​

​

1.65

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Core diluted earnings per share

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​

0.50

​

​

0.16

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​

0.57

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​

0.95

​

​

1.64

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Performance Ratio(1):

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​

​

​

​

​

​

​

​

​

​

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Net interest margin

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​

2.70

%  

​

2.58

%  

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3.19

%  

​

2.79

%  

​

3.22

%

Core net interest margin (non-GAAP)

​

​

2.70

%  

​

2.58

%  

​

3.19

%  

​

2.79

%  

​

3.22

%

Efficiency ratio

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​

50.01

%  

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52.70

%  

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48.41

%  

​

51.32

%  

​

48.20

%

Core efficiency ratio (non-GAAP)

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​

50.02

%  

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52.64

%  

​

47.25

%  

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51.31

%  

​

47.51

%

Return on average total assets

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​

1.16

%  

​

0.36

%  

​

1.45

%  

​

0.76

%  

​

1.42

%

Core return on average total assets (non-GAAP)

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​

1.16

%  

​

0.36

%  

​

1.48

%  

​

0.76

%  

​

1.44

%

Return on average tangible assets (non-GAAP)

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​

1.21

%  

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0.38

%  

​

1.52

%  

​

0.80

%  

​

1.49

%

Core return on average tangible assets (non-GAAP)(2)

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​

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

%  

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6.17

%  

​

11.34

%

Return on average tangible stockholders' equity (non-GAAP)

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15.16

%  

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4.74

%  

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17.81

%  

​

9.79

%  

​

18.04

%

Core return on average tangible stockholders’ equity (non-GAAP)(3)

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15.15

%  

​

4.77

%  

​

18.21

%  

​

9.80

%  

​

18.37

%

Average Balances:

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Average loans and leases

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$

13,559,367

​

$

13,956,669

​

$

13,032,349

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$

13,569,119

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$

13,105,086

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Average earning assets

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19,846,674

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​

19,854,795

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​

17,862,564

​

​

19,174,349

​

​

17,974,363

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Average assets

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22,341,485

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​

22,341,654

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​

20,332,457

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​

21,667,948

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​

20,405,261

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Average deposits

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18,892,033

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​

18,540,394

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​

16,573,796

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​

17,995,196

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​

16,700,366

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Average stockholders' equity

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​

2,704,129

​

​

2,697,775

​

​

2,648,428

​

​

2,687,632

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​

2,600,259

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Market Value Per Share:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Closing

​

​

14.47

​

​

17.24

​

​

26.70

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​

14.47

​

​

26.70

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High

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​

18.96

​

​

21.50

​

​

27.84

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​

31.25

​

​

28.20

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Low

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​

14.32

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​

13.56

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​

24.25

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​

13.56

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​

22.13

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As of

​

As of

​

As of

​

As of

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​

​

September 30, 

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June 30, 

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December 31, 

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September 30, 

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​

​

2020

​

2020

 

2019

 

2019

​

Balance Sheet Data:

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans and leases

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$

13,499,969

​

$

13,764,030

​

$

13,211,650

​

$

12,843,396

​

Total assets

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​

22,310,701

​

​

22,993,715

​

​

20,166,734

​

​

20,598,220

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Total deposits

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​

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.
(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.
(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.

​


​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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.
(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, 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.