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): **** April 22, 2022

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 April 22, 2022, First Hawaiian, Inc. (together with its consolidated subsidiary, “First Hawaiian”) reported its earnings for the quarter ended March 31, 2022. 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 April 22, 2022 containing financial information for its quarter ended March 31, 2022.

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: April 22, 2022	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 First Quarter 2022 Financial Results and Declares Dividend

HONOLULU, Hawaii April 22, 2022--(Globe Newswire)--First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended March 31, 2022.

“I’m pleased to report that we started 2022 with a strong quarter,” said Bob Harrison, Chairman, President and CEO. “We had good earnings and continued consumer and commercial deposit growth, and credit quality remained excellent.”

On April 20, 2022 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on June 3, 2022 to stockholders of record at the close of business on May 23, 2022.

First Quarter 2022 Highlights:

●	Net income of $57.7 million, or $0.45 per diluted share
●	Total loans and leases decreased $70.3 million versus prior quarter. PPP loans decreased $110.3 million versus the prior quarter
---	---
●	Total deposits increased $454.3 million versus prior quarter
---	---
●	Recorded a $5.7 million negative provision for credit losses
---	---
●	Board of Directors declared a quarterly dividend of $0.26 per share
---	---

Balance Sheet

Total assets were $25.0 billion as of March 31, 2022, unchanged from December 31, 2021.

Gross loans and leases were $12.9 billion as of March 31, 2022, a decrease of $70.3 million, or 0.5%, from $13.0 billion as of December 31, 2021.

Total deposits were $22.3 billion as of March 31, 2022, an increase of $454.3 million, or 2.1%, from $21.8 billion as of December 31, 2021.

Net Interest Income

Net interest income for the first quarter of 2022 was $133.9 million, a decrease of $3.5 million, or 2.5%, compared to $137.3 million for the prior quarter.

The net interest margin (NIM) was 2.42% in the first quarter of 2022, an increase of 4 basis points compared to 2.38% in the fourth quarter of 2021.

Provision Expense

During the quarter ended March 31, 2022, we recorded a $5.7 million negative provision for credit losses. In the quarter ended December 31, 2021, we did not record a provision for credit losses.

Noninterest Income

Noninterest income was $41.4 million in the first quarter of 2022, a decrease of $0.2 million compared to noninterest income of $41.6 million in the fourth quarter of 2021.

Noninterest Expense

Noninterest expense was $104.0 million in the first quarter of 2022, a decrease of $4.7 million compared to noninterest expense of $108.7 million in the fourth quarter of 2021.

The efficiency ratio was 59.0% and 60.5% for the quarters ended March 31, 2022 and December 31, 2021, respectively.

Taxes

The effective tax rate was 25.0% for the quarter ended March 31, 2022 and 18.7% for the quarter ended December 31, 2021.

Asset Quality

The allowance for credit losses was $150.3 million, or 1.17% of total loans and leases, as of March 31, 2022, compared to $157.3 million, or 1.21% of total loans and leases, as of December 31, 2021. The reserve for unfunded commitments was $29.0 million as of March 31, 2022, compared to $30.3 million as of December 31, 2021. Net charge-offs were $2.6 million, or 0.08% of average loans and leases on an annualized basis for the quarter ended March 31, 2022, compared to net charge-offs of $6.2 million, or 0.19% of average loans and leases on an annualized basis, for the quarter ended December 31, 2021. Total non-performing assets were $8.6 million, or 0.07% of total loans and leases and other real estate owned, at March 31, 2022, compared to total non-performing assets of $7.3 million, or 0.06% of total loans and leases and other real estate owned, at December 31, 2021.

Capital

Total stockholders’ equity was $2.3 billion at March 31, 2022, compared to $2.7 billion at December 31, 2021.

The tier 1 leverage, common equity tier 1 and total capital ratios were 7.50%, 12.27% and 13.48%, respectively, at March 31, 2022, compared with 7.24%, 12.24% and 13.49%, respectively, at December 31, 2021.

The Company did not repurchase any shares in the first 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: 6391237. 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 April 29, 2022. The replay can be accessed dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 6391237.

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, 2021.

Use of Non-GAAP Financial Measures

Return on average tangible stockholders’ equity, 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 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 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. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy.

Table 12 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.


Investor Relations Contact:	Media Contact:
Kevin Haseyama, CFA	Lindsay Chambers
(808) 525-6268	(808) 525-6254
khaseyama@fhb.com	lchambers@fhb.com


Financial Highlights	Table 1
	For the Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands, except per share data)	2022		****	2021		****	2021
Operating Results:
Net interest income	$	133,872		$	137,327		$	129,158
Provision for credit losses		(5,747)			—			—
Noninterest income		41,380			41,573			43,868
Noninterest expense		104,042			108,749			96,306
Net income		57,719			57,022			57,693
Basic earnings per share		0.45			0.45			0.44
Diluted earnings per share		0.45			0.44			0.44
Dividends declared per share		0.26			0.26			0.26
Dividend payout ratio		57.78	%		59.09	%		59.09	%
Performance Ratios^(1)^:
Net interest margin		2.42	%		2.38	%		2.55	%
Efficiency ratio		59.04	%		60.50	%		55.53	%
Return on average total assets		0.93	%		0.88	%		1.02	%
Return on average tangible assets (non-GAAP)		0.97	%		0.92	%		1.07	%
Return on average total stockholders' equity		9.19	%		8.46	%		8.58	%
Return on average tangible stockholders' equity (non-GAAP)		15.08	%		13.47	%		13.51	%
Average Balances:
Average loans and leases	$	12,819,612		$	12,814,316		$	13,242,270
Average earning assets		22,463,209			23,100,445			20,476,149
Average assets		25,080,453			25,650,505			22,944,699
Average deposits		21,960,819			22,246,577			19,503,067
Average stockholders' equity		2,547,865			2,675,513			2,727,701
Market Value Per Share:
Closing		27.89			27.33			27.37
High		31.16			30.14			30.80
Low		26.93			25.17			23.14

	As of			As of			As of
	March 31,			December 31,			March 31,
(dollars in thousands, except per share data)	2022			2021			2021
Balance Sheet Data:
Loans and leases	$	12,891,743		$	12,961,999		$	13,300,289
Total assets		25,042,720			24,992,410			23,497,596
Total deposits		22,270,430			21,816,146			20,133,681
Long-term borrowings		—			—			200,010
Total stockholders' equity		2,285,149			2,656,912			2,683,630

Per Share of Common Stock:
Book value	$	17.90		$	20.84		$	20.68
Tangible book value (non-GAAP)^(2)^		10.10			13.03			13.01

Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases		0.07	%		0.05	%		0.07	%
Allowance for credit losses for loans and leases / total loans and leases		1.17	%		1.21	%		1.51	%

Capital Ratios:
Common Equity Tier 1 Capital Ratio	****	12.27	%		12.24	%		12.82	%
Tier 1 Capital Ratio		12.27	%		12.24	%		12.82	%
Total Capital Ratio		13.48	%		13.49	%		14.07	%
Tier 1 Leverage Ratio		7.50	%		7.24	%		7.90	%
Total stockholders' equity to total assets		9.13	%		10.63	%		11.42	%
Tangible stockholders' equity to tangible assets (non-GAAP)		5.36	%		6.92	%		7.50	%

Non-Financial Data:
Number of branches		51			54			54
Number of ATMs		298			299			297
Number of Full-Time Equivalent Employees		2,022			2,036			2,090

(1)	Except for the efficiency ratio, amounts are annualized for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021.
(2)	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, see Table 12, GAAP to Non-GAAP Reconciliation.
---	---

(1)

Except for the efficiency ratio, amounts are annualized for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021.

(2)

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, see Table 12, GAAP to Non-GAAP Reconciliation.

---


Consolidated Statements of Income	Table 2
	For the Three Months Ended
	March 31,		December 31,		March 31,
(dollars in thousands, except per share amounts)	2022		2021		2021
Interest income
Loans and lease financing	$	103,732	$	111,865	$	110,939
Available-for-sale securities		32,107		28,393		23,146
Other		782		1,051		491
Total interest income		136,621		141,309		134,576
Interest expense
Deposits		2,749		3,216		4,056
Short-term and long-term borrowings		—		766		1,362
Total interest expense		2,749		3,982		5,418
Net interest income		133,872		137,327		129,158
Provision for credit losses		(5,747)		—		—
Net interest income after provision for credit losses		139,619		137,327		129,158
Noninterest income
Service charges on deposit accounts		7,501		7,171		6,718
Credit and debit card fees		14,850		16,266		14,551
Other service charges and fees		9,654		9,196		8,846
Trust and investment services income		8,883		8,895		8,492
Bank-owned life insurance		(417)		2,851		2,389
Other		909		(2,806)		2,872
Total noninterest income		41,380		41,573		43,868
Noninterest expense
Salaries and employee benefits		48,226		45,982		43,936
Contracted services and professional fees		17,147		14,603		17,188
Occupancy		7,410		8,074		7,170
Equipment		5,977		6,317		5,491
Regulatory assessment and fees		2,224		2,557		2,034
Advertising and marketing		2,028		1,579		1,591
Card rewards program		6,883		7,471		4,835
Other		14,147		22,166		14,061
Total noninterest expense		104,042		108,749		96,306
Income before provision for income taxes		76,957		70,151		76,720
Provision for income taxes		19,238		13,129		19,027
Net income	$	57,719	$	57,022	$	57,693
Basic earnings per share	$	0.45	$	0.45	$	0.44
Diluted earnings per share	$	0.45	$	0.44	$	0.44
Basic weighted-average outstanding shares		127,556,242		127,893,011		129,933,104
Diluted weighted-average outstanding shares		128,121,126		128,512,257		130,589,878


Consolidated Balance Sheets	Table 3
	March 31,		December 31,		March 31,
(dollars in thousands)	2022		2021		2021
Assets
Cash and due from banks	$	274,022	$	246,716	$	278,994
Interest-bearing deposits in other banks		1,352,138		1,011,753		983,816
Investment securities, at fair value (amortized cost: $8,733,170 as of March 31, 2022, $8,560,733 as of December 31, 2021 and $6,708,431 as of March 31, 2021)		8,062,384		8,428,032		6,692,479
Loans held for sale		—		538		9,390
Loans and leases		12,891,743		12,961,999		13,300,289
Less: allowance for credit losses		150,280		157,262		200,366
Net loans and leases		12,741,463		12,804,737		13,099,923

Premises and equipment, net		315,766		318,448		319,949
Other real estate owned and repossessed personal property		—		175		—
Accrued interest receivable		61,561		63,158		69,879
Bank-owned life insurance		471,401		471,819		468,927
Goodwill		995,492		995,492		995,492
Mortgage servicing rights		7,650		8,302		10,869
Other assets		760,843		643,240		567,878
Total assets	$	25,042,720	$	24,992,410	$	23,497,596
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing	$	12,504,821	$	12,422,283	$	11,958,606
Noninterest-bearing		9,765,609		9,393,863		8,175,075
Total deposits		22,270,430		21,816,146		20,133,681
Long-term borrowings		—		—		200,010
Retirement benefits payable		134,323		134,491		143,736
Other liabilities		352,818		384,861		336,539
Total liabilities		22,757,571		22,335,498		20,813,966

Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,875,595 / 127,686,307 shares as of March 31, 2022, issued/outstanding: 140,581,715 / 127,502,472 shares as of December 31, 2021 and issued/outstanding: 140,455,180 / 129,749,890 shares as of March 31, 2021)		1,409		1,406		1,405
Additional paid-in capital		2,530,795		2,527,663		2,517,048
Retained earnings		628,642		604,534		497,418
Accumulated other comprehensive loss, net		(517,502)		(121,693)		(43,435)
Treasury stock (13,189,288 shares as of March 31, 2022, 13,079,243 shares as of December 31, 2021 and 10,705,290 shares as of March 31, 2021)		(358,195)		(354,998)		(288,806)
Total stockholders' equity		2,285,149		2,656,912		2,683,630
Total liabilities and stockholders' equity	$	25,042,720	$	24,992,410	$	23,497,596


Average Balances and Interest Rates																	Table 4
	Three Months Ended						Three Months Ended						Three Months Ended
	March 31, 2022						December 31, 2021						March 31, 2021
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	1,138.3	$	0.6	0.20	%	$	2,074.5	$	0.8	0.15	%	$	938.7	$	0.2	0.10	%
Available-for-Sale Investment Securities
Taxable		7,800.3		29.2	1.50			7,515.2		25.8	1.37			5,949.9		22.1	1.49
Non-Taxable		636.7		3.6	2.32			615.3		3.3	2.14			278.0		1.3	1.80
Total Available-for-Sale Investment Securities		8,437.0		32.8	1.56			8,130.5		29.1	1.43			6,227.9		23.4	1.50
Loans Held for Sale		1.2		—	2.02			1.0		—	1.35			9.2		0.1	2.46
Loans and Leases^(1)^
Commercial and industrial		1,973.1		14.6	3.01			2,084.0		21.1	4.01			3,026.7		20.4	2.74
Commercial real estate		3,632.2		25.8	2.88			3,572.9		26.0	2.89			3,385.2		24.9	2.98
Construction		766.9		5.7	3.03			806.6		6.3	3.09			746.8		5.8	3.16
Residential:
Residential mortgage		4,111.0		34.8	3.38			4,014.9		34.9	3.48			3,696.1		34.7	3.76
Home equity line		891.6		5.5	2.48			864.4		5.5	2.52			822.0		5.7	2.80
Consumer		1,218.6		15.6	5.19			1,241.3		16.3	5.22			1,323.7		17.7	5.43
Lease financing		226.2		1.9	3.42			230.2		1.9	3.27			241.8		1.8	3.02
Total Loans and Leases		12,819.6		103.9	3.27			12,814.3		112.0	3.48			13,242.3		111.0	3.39
Other Earning Assets		67.1		0.2	1.31			80.1		0.3	1.27			58.0		0.3	1.79
Total Earning Assets^(2)^		22,463.2		137.5	2.47			23,100.4		142.2	2.45			20,476.1		135.0	2.66
Cash and Due from Banks		292.1						282.2						294.0
Other Assets		2,325.2						2,267.9						2,174.6
Total Assets	$	25,080.5					$	25,650.5					$	22,944.7

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	6,668.4	$	0.5	0.03	%	$	7,086.0	$	0.8	0.04	%		5,975.1	$	0.6	0.04	%
Money Market		4,048.9		0.5	0.05			4,048.3		0.5	0.05			3,530.0		0.4	0.05
Time		1,748.5		1.7	0.39			1,819.0		1.9	0.42			2,288.5		3.0	0.53
Total Interest-Bearing Deposits		12,465.8		2.7	0.09			12,953.3		3.2	0.10			11,793.6		4.0	0.14
Long-Term Borrowings		—		—	—			110.9		0.8	2.74			200.0		1.4	2.76
Total Interest-Bearing Liabilities		12,465.8		2.7	0.09			13,064.2		4.0	0.12			11,993.6		5.4	0.18
Net Interest Income			$	134.8					$	138.2					$	129.6
Interest Rate Spread					2.38	%					2.33	%					2.48	%
Net Interest Margin					2.42	%					2.38	%					2.55	%
Noninterest-Bearing Demand Deposits		9,495.0						9,293.3						7,709.5
Other Liabilities		571.8						617.5						513.9
Stockholders' Equity		2,547.9						2,675.5						2,727.7
Total Liabilities and Stockholders' Equity	$	25,080.5					$	25,650.5					$	22,944.7

(1)	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
(2)	Interest income includes taxable-equivalent basis adjustments of $1.0 million, $0.9 million and $0.4 million for the three months ended March 31, 2022, December 31, 2021, and March 31, 2021, respectively.
---	---


Analysis of Change in Net Interest Income						Table 5
	Three Months Ended March 31, 2022
	Compared to December 31, 2021
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	(0.4)	$	0.2	$	(0.2)
Available-for-Sale Investment Securities
Taxable		1.0		2.4		3.4
Non-Taxable		—		0.3		0.3
Total Available-for-Sale Investment Securities		1.0		2.7		3.7
Loans and Leases
Commercial and industrial		(1.2)		(5.3)		(6.5)
Commercial real estate		—		(0.2)		(0.2)
Construction		(0.4)		(0.2)		(0.6)
Residential:
Residential mortgage		0.9		(1.0)		(0.1)
Home equity line		0.1		(0.1)		—
Consumer		(0.5)		(0.2)		(0.7)
Lease financing		(0.1)		0.1		—
Total Loans and Leases		(1.2)		(6.9)		(8.1)
Other Earning Assets		(0.1)		—		(0.1)
Total Change in Interest Income		(0.7)		(4.0)		(4.7)

Change in Interest Expense:
Interest-Bearing Deposits
Savings		(0.1)		(0.2)		(0.3)
Time		(0.1)		(0.1)		(0.2)
Total Interest-Bearing Deposits		(0.2)		(0.3)		(0.5)
Long-Term Borrowings		(0.4)		(0.4)		(0.8)
Total Change in Interest Expense		(0.6)		(0.7)		(1.3)
Change in Net Interest Income	$	(0.1)	$	(3.3)	$	(3.4)


Analysis of Change in Net Interest Income						Table 6
	Three Months Ended March 31, 2022
	Compared to March 31, 2021
(dollars in millions)	Volume		Rate		Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	0.1	$	0.3	$	0.4
Available-for-Sale Investment Securities
Taxable		6.9		0.2		7.1
Non-Taxable		1.9		0.4		2.3
Total Available-for-Sale Investment Securities		8.8		0.6		9.4
Loans Held for Sale		(0.1)		—		(0.1)
Loans and Leases
Commercial and industrial		(7.7)		1.9		(5.8)
Commercial real estate		1.8		(0.9)		0.9
Construction		0.1		(0.2)		(0.1)
Residential:
Residential mortgage		3.8		(3.7)		0.1
Home equity line		0.5		(0.7)		(0.2)
Consumer		(1.4)		(0.7)		(2.1)
Lease financing		(0.1)		0.2		0.1
Total Loans and Leases		(3.0)		(4.1)		(7.1)
Other Earning Assets		—		(0.1)		(0.1)
Total Change in Interest Income		5.8		(3.3)		2.5

Change in Interest Expense:
Interest-Bearing Deposits
Savings		—		(0.1)		(0.1)
Money Market		0.1		—		0.1
Time		(0.6)		(0.7)		(1.3)
Total Interest-Bearing Deposits		(0.5)		(0.8)		(1.3)
Long-Term Borrowings		(0.7)		(0.7)		(1.4)
Total Change in Interest Expense		(1.2)		(1.5)		(2.7)
Change in Net Interest Income	$	7.0	$	(1.8)	$	5.2


Loans and Leases								Table 7
	March 31,			December 31,			March 31,
(dollars in thousands)	2022		****	2021		****	2021
Commercial and industrial:
Commercial and industrial excluding Paycheck Protection Program loans	$	1,817,346	****	$	1,870,657		$	1,962,672
Paycheck Protection Program loans		106,188			216,442			1,158,764
Total commercial and industrial		1,923,534			2,087,099			3,121,436
Commercial real estate		3,759,980			3,639,623			3,396,233
Construction		708,300			813,969			739,271
Residential:
Residential mortgage		4,153,824			4,083,367			3,715,676
Home equity line		918,101			876,608			805,746
Total residential		5,071,925			4,959,975			4,521,422
Consumer		1,204,834			1,229,939			1,283,779
Lease financing		223,170			231,394			238,148
Total loans and leases	$	12,891,743		$	12,961,999		$	13,300,289


Deposits								Table 8
	March 31,			December 31,			March 31,
(dollars in thousands)	2022		****	2021		****	2021
Demand	$	9,765,609		$	9,393,863		$	8,175,075
Savings		6,812,758			6,612,775			6,141,161
Money Market		3,990,225			4,033,070			3,642,604
Time		1,701,838			1,776,438			2,174,841
Total Deposits	$	22,270,430		$	21,816,146		$	20,133,681


Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More								Table 9
	March 31,			December 31,			March 31,
(dollars in thousands)	2022		****	2021		****	2021
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial	$	707		$	718		$	593
Commercial real estate		727			727			937
Construction		—			—			579
Lease financing		75			—			—
Total Commercial Loans		1,509			1,445			2,109
Residential Loans:
Residential mortgage		7,092			5,637			6,999
Total Residential Loans		7,092			5,637			6,999
Total Non-Accrual Loans and Leases		8,601			7,082			9,108
Other Real Estate Owned		—			175			—
Total Non-Performing Assets	$	8,601		$	7,257		$	9,108

Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial	$	591		$	740		$	1,365
Commercial real estate		—			—			1,054
Construction		—			—			89
Total Commercial Loans		591			740			2,508
Residential Loans:
Residential mortgage		13			987			—
Home equity line		2,252			3,681			4,975
Total Residential Loans		2,265			4,668			4,975
Consumer		1,588			1,800			2,024
Total Accruing Loans and Leases Past Due 90 Days or More	$	4,444		$	7,208		$	9,507

Restructured Loans on Accrual Status and Not Past Due 90 Days or More	$	32,590		$	34,893		$	39,831
Total Loans and Leases	$	12,891,743		$	12,961,999		$	13,300,289


Allowance for Credit Losses	Table 10
	For the Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands)	2022			2021		****	2021		****
Balance at Beginning of Period	$	157,262		$	161,246		$	208,454
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial		(706)			(4,432)			(963)
Commercial real estate		—			—			(66)
Total Commercial Loans		(706)			(4,432)			(1,029)
Residential Loans:
Residential mortgage		—			(534)			(98)
Home equity line		(43)			(107)			—
Total Residential Loans		(43)			(641)			(98)
Consumer		(4,109)			(3,250)			(6,541)
Total Loans and Leases Charged-Off		(4,858)			(8,323)			(7,668)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial		53			244			215
Commercial real estate		14			9			3
Construction		—			100			166
Total Commercial Loans		67			353			384
Residential Loans:
Residential mortgage		16			15			17
Home equity line		28			28			24
Total Residential Loans		44			43			41
Consumer		2,148			1,743			2,655
Total Recoveries on Loans and Leases Previously Charged-Off		2,259			2,139			3,080
Net Loans and Leases Charged-Off		(2,599)			(6,184)			(4,588)
Provision for Credit Losses - Loans and Leases		(4,383)			2,200			(3,500)
Balance at End of Period	$	150,280		$	157,262		$	200,366
Average Loans and Leases Outstanding	$	12,819,612		$	12,814,316		$	13,242,270
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding^(1)^		0.08	%		0.19	%		0.14	%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding		1.17	%		1.21	%		1.51	%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases		17.47x			22.21x			22.00x

(1)	Annualized for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021.


Loans and Leases by Year of Origination and Credit Quality Indicator																		Table 11
															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
													Amortized		Amortized
(dollars in thousands)	2022		2021		2020		2019		2018		Prior		Cost Basis		Cost Basis		Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass	$	158,853	$	483,473	$	98,061	$	184,897	$	79,810	$	166,075	$	594,007	$	31,048	$	1,796,224
Special Mention		2,876		356		3,898		3,983		52		5,594		1,601		867		19,227
Substandard		—		337		1,296		1,776		13,251		757		15,877		138		33,432
Other ^(1)^		4,028		10,510		6,171		6,450		3,516		1,664		42,312		—		74,651
Total Commercial and Industrial		165,757		494,676		109,426		197,106		96,629		174,090		653,797		32,053		1,923,534

Commercial Real Estate
Risk rating:
Pass		240,807		682,346		351,893		523,735		471,899		1,291,495		77,724		14,752		3,654,651
Special Mention		—		—		—		47,897		473		39,064		696		—		88,130
Substandard		—		—		—		—		1,757		15,280		4		—		17,041
Other ^(1)^		—		—		—		—		—		158		—		—		158
Total Commercial Real Estate		240,807		682,346		351,893		571,632		474,129		1,345,997		78,424		14,752		3,759,980

Construction
Risk rating:
Pass		6,160		167,645		118,526		136,209		112,919		89,172		19,470		—		650,101
Special Mention		—		—		—		244		705		353		—		—		1,302
Substandard		—		—		—		—		357		827		—		—		1,184
Other ^(1)^		7,871		29,932		5,774		2,957		3,922		4,435		822		—		55,713
Total Construction		14,031		197,577		124,300		139,410		117,903		94,787		20,292		—		708,300

Lease Financing
Risk rating:
Pass		3,913		31,974		57,192		45,698		8,813		69,286		—		—		216,876
Special Mention		—		479		2,672		1,360		12		20		—		—		4,543
Substandard		—		—		270		123		15		1,343		—		—		1,751
Total Lease Financing		3,913		32,453		60,134		47,181		8,840		70,649		—		—		223,170

Total Commercial Lending	$	424,508	$	1,407,052	$	645,753	$	955,329	$	697,501	$	1,685,523	$	752,513	$	46,805	$	6,614,984


															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
(continued)													Amortized		Amortized
(dollars in thousands)	2022		2021		2020		2019		2018		Prior		Cost Basis		Cost Basis		Total
Residential Lending
Residential Mortgage
FICO:
740 and greater	$	185,434	$	1,096,789	$	615,500	$	264,419	$	183,368	$	1,012,447	$	—	$	—	$	3,357,957
680 - 739		26,812		128,172		72,766		44,872		25,913		159,950		—		—		458,485
620 - 679		3,088		13,196		12,304		5,995		5,021		39,145		—		—		78,749
550 - 619		—		2,267		1,570		720		731		8,847		—		—		14,135
Less than 550		2,116		228		60		—		82		4,098		—		—		6,584
No Score ^(3)^		6,550		15,806		7,676		13,968		17,545		56,444		—		—		117,989
Other ^(2)^		18,485		30,872		16,042		9,704		10,810		32,600		43		1,369		119,925
Total Residential Mortgage		242,485		1,287,330		725,918		339,678		243,470		1,313,531		43		1,369		4,153,824

Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		705,570		1,892		707,462
680 - 739		—		—		—		—		—		—		147,290		3,202		150,492
620 - 679		—		—		—		—		—		—		39,370		2,129		41,499
550 - 619		—		—		—		—		—		—		10,310		1,426		11,736
Less than 550		—		—		—		—		—		—		1,482		494		1,976
No Score ^(3)^		—		—		—		—		—		—		4,936		—		4,936
Total Home Equity Line		—		—		—		—		—		—		908,958		9,143		918,101
Total Residential Lending		242,485		1,287,330		725,918		339,678		243,470		1,313,531		909,001		10,512		5,071,925

Consumer Lending
FICO:
740 and greater		60,821		145,550		74,436		68,970		46,731		24,261		112,298		217		533,284
680 - 739		26,319		87,933		50,976		48,120		28,498		18,340		68,407		647		329,240
620 - 679		6,222		39,016		19,677		25,307		16,453		14,473		30,462		1,038		152,648
550 - 619		292		7,159		7,314		11,776		8,904		8,485		10,352		1,129		55,411
Less than 550		53		2,003		3,445		5,732		2,939		3,089		3,166		471		20,898
No Score ^(3)^		280		458		9		53		35		52		35,063		337		36,287
Other ^(2)^		502		4,247		363		1,691		4		2,181		68,078		—		77,066
Total Consumer Lending		94,489		286,366		156,220		161,649		103,564		70,881		327,826		3,839		1,204,834

Total Loans and Leases	$	761,482	$	2,980,748	$	1,527,891	$	1,456,656	$	1,044,535	$	3,069,935	$	1,989,340	$	61,156	$	12,891,743

(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 12
	For the Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands, except per share amounts)	2022		****	2021		****	2021		****
Income Statement Data:
Net income	$	57,719		$	57,022		$	57,693

Average total stockholders' equity	$	2,547,865		$	2,675,513		$	2,727,701
Less: average goodwill		995,492			995,492			995,492
Average tangible stockholders' equity	$	1,552,373		$	1,680,021		$	1,732,209

Average total assets	$	25,080,453		$	25,650,505		$	22,944,699
Less: average goodwill		995,492			995,492			995,492
Average tangible assets	$	24,084,961		$	24,655,013		$	21,949,207

Return on average total stockholders' equity^(1)^		9.19	%		8.46	%		8.58	%
Return on average tangible stockholders' equity (non-GAAP)^(1)^		15.08	%		13.47	%		13.51	%

Return on average total assets^(1)^		0.93	%		0.88	%		1.02	%
Return on average tangible assets (non-GAAP)^(1)^		0.97	%		0.92	%		1.07	%



	As of			As of			As of
	March 31,			December 31,			March 31,
(dollars in thousands, except per share amounts)	2022		****	2021		****	2021
Balance Sheet Data:
Total stockholders' equity	$	2,285,149		$	2,656,912		$	2,683,630
Less: goodwill		995,492			995,492			995,492
Tangible stockholders' equity	$	1,289,657		$	1,661,420		$	1,688,138

Total assets	$	25,042,720		$	24,992,410		$	23,497,596
Less: goodwill		995,492			995,492			995,492
Tangible assets	$	24,047,228		$	23,996,918		$	22,502,104

Shares outstanding		127,686,307			127,502,472			129,749,890

Total stockholders' equity to total assets		9.13	%		10.63	%		11.42	%
Tangible stockholders' equity to tangible assets (non-GAAP)		5.36	%		6.92	%		7.50	%

Book value per share	$	17.90		$	20.84		$	20.68
Tangible book value per share (non-GAAP)	$	10.10		$	13.03		$	13.01

(1)	Annualized for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021.