First Hawaiian, Inc. Reports Fourth Quarter 2023 Financial Results and Declares Dividend
- Stable loan balances and growth in consumer and commercial deposits
- Quarterly cash dividend declared
- Stock repurchase program adopted for up to $40 million of outstanding common stock
- Excellent credit quality
- Decrease of $178.8 million in total deposits versus the prior quarter
- Recorded a $40.0 million loss from selling low-yielding investment securities
Insights
The reported financial results by First Hawaiian, Inc. indicate a mixed performance in the fourth quarter of 2023. The stability in loan balances and growth in consumer and commercial deposits could be viewed as positive indicators of customer confidence and potential for revenue growth. However, the decrease in total deposits and the net interest margin could raise concerns about the bank's interest income prospects, especially in a potentially fluctuating interest rate environment.
From a capital management perspective, the sale of low-yielding securities and the reduction of high-cost deposits are strategic moves aimed at improving the net interest margin and net interest income. This is a common practice among banks seeking to optimize their balance sheet. The declaration of a quarterly dividend suggests confidence in ongoing profitability, while the stock repurchase program indicates management's belief that the stock may be undervalued. Both actions could signal to investors a commitment to returning value and could potentially support the stock price.
The financial sector and specifically regional banking stocks like First Hawaiian, Inc., are often influenced by broader economic trends such as interest rate changes and regional economic health. The reported decrease in net interest margin, despite the overall stable loan balances, suggests that the bank is feeling the pressure from the competitive interest rate environment. The efficiency ratio's increase is another point of interest, as it suggests that expenses are rising faster than income—a trend that investors typically monitor closely as it can affect profitability.
The bank's decision to sell low-yielding securities and reduce high-cost deposits could be an attempt to reposition its portfolio in anticipation of changing economic conditions. The $40 million loss recognized from the sale indicates a significant portfolio reshaping, which could be seen as proactive management but also as a sign of prior investments that did not yield expected returns. The gain from selling Visa Class B stock may offset some immediate concerns, but it also points to liquidating assets to maintain income, which may not be sustainable long-term.
The provision for credit losses, although lower than the previous quarter, is a critical figure that reflects management's expectations of potential future losses on loans and leases. It is essential to consider this in the context of the overall economic outlook, as an increase could suggest anticipation of a downturn or worsening credit conditions. The slight uptick in non-performing assets as a percentage of total loans and leases also warrants attention, as it may indicate emerging issues in loan quality.
Asset quality metrics, such as the allowance for credit losses and non-performing assets, provide insight into the bank's risk management and the economic health of its clientele. With the effective tax rate remaining relatively stable, the bank's tax planning strategies appear consistent. However, the $16.3 million FDIC special assessment included in expenses is notable, as it represents a non-recurring cost that could impact net income.
HONOLULU, Hawaii, Jan. 26, 2024 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended December 31, 2023.
“I’m happy to report that we finished 2023 with a strong fourth quarter. Our loan balances were stable, we grew consumer and commercial deposits, and credit quality remained excellent,” said Bob Harrison, Chairman, President, and CEO. “During the fourth quarter we also took action to strengthen our balance sheet and increase our future earnings power by selling low-yielding securities. We intend to use the proceeds to reduce high-cost deposits which will increase our net interest margin and net interest income in 2024.”
On January 24, 2024, the Company’s Board of Directors declared a quarterly cash dividend of
Additionally, the Company’s Board of Directors adopted a stock repurchase program for up to
Fourth Quarter 2023 Highlights:
- Net income of
$47.5 million , or$0.37 per diluted share - Total loans and leases increased
$21.2 million versus prior quarter - Total deposits decreased
$178.8 million versus prior quarter - Net interest margin decreased 5 basis points to
2.81% - Recorded a
$5.3 million provision for credit losses - Sold
$525.6 million of low-yielding investment securities and recognized a$40.0 million loss - Sold 120,104 shares of Visa Class B stock for a gain of
$40.8 million $16.3 million FDIC special assessment included in expenses- Board of Directors declared a quarterly dividend of
$0.26 per share
Balance Sheet
Total assets were
Gross loans and leases were
Total deposits were
Net Interest Income
Net interest income for the fourth quarter of 2023 was
The net interest margin was
Provision Expense
During the quarter ended December 31, 2023, we recorded a
Noninterest Income
Noninterest income was
Noninterest Expense
Noninterest expense was
The efficiency ratio was
Taxes
The effective tax rate was
Asset Quality
The allowance for credit losses was
Capital
Total stockholders' equity was
The tier 1 leverage, common equity tier 1 and total capital ratios were
The Company did not repurchase any shares in the fourth quarter.
As to the stock repurchase program approved for 2024, repurchases of shares of the Company’s common stock may be conducted through open-market purchases, which may include purchases under a trading plan adopted pursuant to Securities and Exchange Commission Rule 10b5-1, or through privately negotiated transactions. The timing and exact amount of share repurchases, if any, will be subject to management’s discretion and various factors, including the Company’s capital position and financial performance, as well as market conditions. The repurchase program may be suspended, terminated or modified at any time for any reason.
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, 8:00 a.m. Hawaii Time.
To access the call by phone, please register via the following link: https://register.vevent.com/register/BIb0fdeb3d43a84da4acc2b0efeb9ba356, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.
A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2022 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023.
Use of Non-GAAP Financial Measures
Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy.
Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.
| Investor Relations Contact: Kevin Haseyama, CFA (808) 525-6268 khaseyama@fhb.com | Media Contact: Lindsay Chambers (808) 525-6254 lchambers@fhb.com |
| Financial Highlights | Table 1 | |||||||||||||||
| For the Three Months Ended | For the Year Ended | |||||||||||||||
| December 31, | September 30, | December 31, | December 31, | |||||||||||||
| (dollars in thousands, except per share data) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Operating Results: | ||||||||||||||||
| Net interest income | $ | 151,793 | $ | 157,148 | $ | 171,794 | $ | 636,127 | $ | 613,549 | ||||||
| Provision for credit losses | 5,330 | 7,500 | 2,956 | 26,630 | 1,392 | |||||||||||
| Noninterest income | 58,347 | 46,097 | 48,151 | 200,815 | 179,525 | |||||||||||
| Noninterest expense | 142,307 | 119,383 | 113,922 | 501,138 | 440,471 | |||||||||||
| Net income | 47,502 | 58,221 | 79,588 | 234,983 | 265,685 | |||||||||||
| Basic earnings per share | 0.37 | 0.46 | 0.62 | 1.84 | 2.08 | |||||||||||
| Diluted earnings per share | 0.37 | 0.46 | 0.62 | 1.84 | 2.08 | |||||||||||
| Dividends declared per share | 0.26 | 0.26 | 0.26 | 1.04 | 1.04 | |||||||||||
| Dividend payout ratio | 70.27 | % | 56.52 | % | 41.94 | % | 56.52 | % | 50.00 | % | ||||||
| Performance Ratios(1): | ||||||||||||||||
| Net interest margin | 2.81 | % | 2.86 | % | 3.15 | % | 2.92 | % | 2.78 | % | ||||||
| Efficiency ratio | 67.28 | % | 58.31 | % | 51.47 | % | 59.48 | % | 55.20 | % | ||||||
| Return on average total assets | 0.77 | % | 0.93 | % | 1.28 | % | 0.95 | % | 1.06 | % | ||||||
| Return on average tangible assets (non-GAAP)(2) | 0.81 | % | 0.97 | % | 1.34 | % | 0.99 | % | 1.11 | % | ||||||
| Return on average total stockholders' equity | 7.94 | % | 9.76 | % | 14.27 | % | 10.01 | % | 11.44 | % | ||||||
| Return on average tangible stockholders' equity (non-GAAP)(2) | 13.66 | % | 16.84 | % | 25.93 | % | 17.39 | % | 20.03 | % | ||||||
| Average Balances: | ||||||||||||||||
| Average loans and leases | $ | 14,349,322 | $ | 14,349,402 | $ | 13,876,136 | $ | 14,266,291 | $ | 13,314,821 | ||||||
| Average earning assets | 21,688,816 | 22,060,480 | 21,856,135 | 21,952,009 | 22,272,795 | |||||||||||
| Average assets | 24,404,727 | 24,727,893 | 24,575,648 | 24,625,445 | 24,964,422 | |||||||||||
| Average deposits | 20,908,221 | 21,212,102 | 21,725,177 | 21,160,155 | 22,058,497 | |||||||||||
| Average stockholders' equity | 2,374,669 | 2,367,422 | 2,213,030 | 2,346,713 | 2,321,606 | |||||||||||
| Market Value Per Share: | ||||||||||||||||
| Closing | 22.86 | 18.05 | 26.04 | 22.86 | 26.04 | |||||||||||
| High | 23.22 | 22.59 | 27.16 | 28.28 | 31.16 | |||||||||||
| Low | 17.18 | 17.41 | 24.06 | 15.08 | 21.21 | |||||||||||
| As of | As of | As of | ||||||||
| December 31, | September 30, | December 31, | ||||||||
| (dollars in thousands, except per share data) | 2023 | 2023 | 2022 | |||||||
| Balance Sheet Data: | ||||||||||
| Loans and leases | $ | 14,353,497 | $ | 14,332,335 | $ | 14,092,012 | ||||
| Total assets | 24,926,474 | 24,912,524 | 24,577,223 | |||||||
| Total deposits | 21,332,657 | 21,511,489 | 21,689,029 | |||||||
| Short-term borrowings | 500,000 | 500,000 | 75,000 | |||||||
| Total stockholders' equity | 2,486,066 | 2,351,009 | 2,269,005 | |||||||
| Per Share of Common Stock: | ||||||||||
| Book value | $ | 19.48 | $ | 18.42 | $ | 17.82 | ||||
| Tangible book value (non-GAAP)(2) | 11.68 | 10.62 | 10.00 | |||||||
| Asset Quality Ratios: | ||||||||||
| Non-accrual loans and leases / total loans and leases | 0.13 | % | 0.10 | % | 0.08 | % | ||||
| Allowance for credit losses for loans and leases / total loans and leases | 1.09 | % | 1.08 | % | 1.02 | % | ||||
| Capital Ratios: | ||||||||||
| Common Equity Tier 1 Capital Ratio | 12.39 | % | 12.21 | % | 11.82 | % | ||||
| Tier 1 Capital Ratio | 12.39 | % | 12.21 | % | 11.82 | % | ||||
| Total Capital Ratio | 13.57 | % | 13.38 | % | 12.92 | % | ||||
| Tier 1 Leverage Ratio | 8.64 | % | 8.45 | % | 8.11 | % | ||||
| Total stockholders' equity to total assets | 9.97 | % | 9.44 | % | 9.23 | % | ||||
| Tangible stockholders' equity to tangible assets (non-GAAP)(2) | 6.23 | % | 5.67 | % | 5.40 | % | ||||
| Non-Financial Data: | ||||||||||
| Number of branches | 50 | 50 | 51 | |||||||
| Number of ATMs | 275 | 294 | 294 | |||||||
| Number of Full-Time Equivalent Employees | 2,089 | 2,087 | 2,063 | |||||||
(1) Except for the efficiency ratio, amounts are annualized for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022.
(2) Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation.
| Consolidated Statements of Income | Table 2 | ||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| December 31, | September 30, | December 31, | December 31, | ||||||||||||
| (dollars in thousands, except per share amounts) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
| Interest income | |||||||||||||||
| Loans and lease financing | $ | 196,276 | $ | 194,098 | $ | 159,526 | $ | 748,053 | $ | 509,820 | |||||
| Available-for-sale investment securities | 19,033 | 18,426 | 18,714 | 74,241 | 87,108 | ||||||||||
| Held-to-maturity investment securities | 17,987 | 18,271 | 19,137 | 73,497 | 55,376 | ||||||||||
| Other | 7,734 | 9,004 | 3,088 | 27,788 | 10,916 | ||||||||||
| Total interest income | 241,030 | 239,799 | 200,465 | 923,579 | 663,220 | ||||||||||
| Interest expense | |||||||||||||||
| Deposits | 82,215 | 74,651 | 28,202 | 258,221 | 49,201 | ||||||||||
| Short-term and long-term borrowings | 6,232 | 6,838 | 469 | 26,289 | 470 | ||||||||||
| Other | 790 | 1,162 | — | 2,942 | — | ||||||||||
| Total interest expense | 89,237 | 82,651 | 28,671 | 287,452 | 49,671 | ||||||||||
| Net interest income | 151,793 | 157,148 | 171,794 | 636,127 | 613,549 | ||||||||||
| Provision for credit losses | 5,330 | 7,500 | 2,956 | 26,630 | 1,392 | ||||||||||
| Net interest income after provision for credit losses | 146,463 | 149,648 | 168,838 | 609,497 | 612,157 | ||||||||||
| Noninterest income | |||||||||||||||
| Service charges on deposit accounts | 7,646 | 7,524 | 7,376 | 29,647 | 28,809 | ||||||||||
| Credit and debit card fees | 16,381 | 15,748 | 16,376 | 63,888 | 66,028 | ||||||||||
| Other service charges and fees | 9,535 | 9,546 | 9,185 | 37,299 | 37,036 | ||||||||||
| Trust and investment services income | 9,645 | 9,742 | 9,023 | 38,449 | 36,465 | ||||||||||
| Bank-owned life insurance | 5,063 | 1,872 | 2,865 | 15,326 | 1,248 | ||||||||||
| Investment securities gains, net | 792 | — | — | 792 | — | ||||||||||
| Other | 9,285 | 1,665 | 3,326 | 15,414 | 9,939 | ||||||||||
| Total noninterest income | 58,347 | 46,097 | 48,151 | 200,815 | 179,525 | ||||||||||
| Noninterest expense | |||||||||||||||
| Salaries and employee benefits | 55,882 | 55,937 | 49,629 | 225,755 | 199,129 | ||||||||||
| Contracted services and professional fees | 16,219 | 16,393 | 17,638 | 66,423 | 70,027 | ||||||||||
| Occupancy | 7,561 | 6,711 | 8,175 | 29,608 | 31,034 | ||||||||||
| Equipment | 12,547 | 11,826 | 9,984 | 45,109 | 34,506 | ||||||||||
| Regulatory assessment and fees | 20,412 | 4,149 | 2,591 | 32,073 | 9,603 | ||||||||||
| Advertising and marketing | 1,441 | 2,289 | 2,072 | 7,615 | 7,996 | ||||||||||
| Card rewards program | 7,503 | 8,358 | 8,681 | 31,627 | 30,990 | ||||||||||
| Other | 20,742 | 13,720 | 15,152 | 62,928 | 57,186 | ||||||||||
| Total noninterest expense | 142,307 | 119,383 | 113,922 | 501,138 | 440,471 | ||||||||||
| Income before provision for income taxes | 62,503 | 76,362 | 103,067 | 309,174 | 351,211 | ||||||||||
| Provision for income taxes | 15,001 | 18,141 | 23,479 | 74,191 | 85,526 | ||||||||||
| Net income | $ | 47,502 | $ | 58,221 | $ | 79,588 | $ | 234,983 | $ | 265,685 | |||||
| Basic earnings per share | $ | 0.37 | $ | 0.46 | $ | 0.62 | $ | 1.84 | $ | 2.08 | |||||
| Diluted earnings per share | $ | 0.37 | $ | 0.46 | $ | 0.62 | $ | 1.84 | $ | 2.08 | |||||
| Basic weighted-average outstanding shares | 127,612,734 | 127,609,860 | 127,356,795 | 127,567,547 | 127,489,889 | ||||||||||
| Diluted weighted-average outstanding shares | 128,028,964 | 127,936,440 | 127,894,773 | 127,915,873 | 127,981,699 | ||||||||||
| Consolidated Balance Sheets | Table 3 | |||||||||||
| December 31, | September 30, | December 31, | ||||||||||
| (dollars in thousands, except share amount) | 2023 | 2023 | 2022 | |||||||||
| Assets | ||||||||||||
| Cash and due from banks | $ | 185,015 | $ | 246,028 | $ | 297,502 | ||||||
| Interest-bearing deposits in other banks | 1,554,882 | 967,400 | 229,122 | |||||||||
| Investment securities: | ||||||||||||
| Available-for-sale, at fair value (amortized cost: | 2,255,336 | 2,722,704 | 3,151,133 | |||||||||
| Held-to-maturity, at amortized cost (fair value: | 4,041,449 | 4,104,114 | 4,320,639 | |||||||||
| Loans held for sale | 190 | — | — | |||||||||
| Loans and leases | 14,353,497 | 14,332,335 | 14,092,012 | |||||||||
| Less: allowance for credit losses | 156,533 | 154,795 | 143,900 | |||||||||
| Net loans and leases | 14,196,964 | 14,177,540 | 13,948,112 | |||||||||
| Premises and equipment, net | 281,461 | 277,805 | 280,355 | |||||||||
| Other real estate owned and repossessed personal property | — | — | 91 | |||||||||
| Accrued interest receivable | 84,417 | 84,327 | 78,194 | |||||||||
| Bank-owned life insurance | 479,907 | 477,698 | 473,067 | |||||||||
| Goodwill | 995,492 | 995,492 | 995,492 | |||||||||
| Mortgage servicing rights | 5,699 | 5,855 | 6,562 | |||||||||
| Other assets | 845,662 | 853,561 | 796,954 | |||||||||
| Total assets | $ | 24,926,474 | $ | 24,912,524 | $ | 24,577,223 | ||||||
| Liabilities and Stockholders' Equity | ||||||||||||
| Deposits: | ||||||||||||
| Interest-bearing | $ | 13,749,095 | $ | 13,612,493 | $ | 12,824,383 | ||||||
| Noninterest-bearing | 7,583,562 | 7,898,996 | 8,864,646 | |||||||||
| Total deposits | 21,332,657 | 21,511,489 | 21,689,029 | |||||||||
| Short-term borrowings | 500,000 | 500,000 | 75,000 | |||||||||
| Retirement benefits payable | 103,285 | 99,685 | 102,577 | |||||||||
| Other liabilities | 504,466 | 450,341 | 441,612 | |||||||||
| Total liabilities | 22,440,408 | 22,561,515 | 22,308,218 | |||||||||
| Stockholders' equity | ||||||||||||
| Common stock ( | 1,413 | 1,413 | 1,410 | |||||||||
| Additional paid-in capital | 2,548,250 | 2,545,659 | 2,538,336 | |||||||||
| Retained earnings | 837,859 | 823,895 | 736,544 | |||||||||
| Accumulated other comprehensive loss, net | (530,210 | ) | (648,731 | ) | (639,254 | ) | ||||||
| Treasury stock (13,721,778 shares as of December 31, 2023, 13,720,729 shares as of September 30, 2023 and 13,600,591 shares as of December 31, 2022) | (371,246 | ) | (371,227 | ) | (368,031 | ) | ||||||
| Total stockholders' equity | 2,486,066 | 2,351,009 | 2,269,005 | |||||||||
| Total liabilities and stockholders' equity | $ | 24,926,474 | $ | 24,912,524 | $ | 24,577,223 | ||||||
| Average Balances and Interest Rates | Table 4 | ||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | |||||||||||||||||
| (dollars in millions) | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||
| Earning Assets | |||||||||||||||||||||||||
| Interest-Bearing Deposits in Other Banks | $ | 568.0 | $ | 7.8 | 5.39 | % | $ | 608.6 | $ | 8.2 | 5.36 | % | $ | 321.3 | $ | 2.9 | 3.64 | % | |||||||
| Available-for-Sale Investment Securities | |||||||||||||||||||||||||
| Taxable | 2,598.4 | 19.0 | 2.92 | 2,834.6 | 18.4 | 2.59 | 3,180.8 | 18.3 | 2.30 | ||||||||||||||||
| Non-Taxable | 1.9 | — | 5.12 | 2.3 | — | 5.48 | 37.9 | 0.5 | 5.42 | ||||||||||||||||
| Held-to-Maturity Investment Securities | |||||||||||||||||||||||||
| Taxable | 3,472.1 | 14.8 | 1.70 | 3,544.1 | 15.0 | 1.70 | 3,754.9 | 15.8 | 1.69 | ||||||||||||||||
| Non-Taxable | 603.9 | 3.9 | 2.58 | 604.3 | 4.1 | 2.66 | 613.4 | 4.2 | 2.69 | ||||||||||||||||
| Total Investment Securities | 6,676.3 | 37.7 | 2.25 | 6,985.3 | 37.5 | 2.14 | 7,587.0 | 38.8 | 2.04 | ||||||||||||||||
| Loans Held for Sale | 0.7 | — | 7.41 | 0.4 | — | 6.63 | 0.1 | — | 6.50 | ||||||||||||||||
| Loans and Leases(1) | |||||||||||||||||||||||||
| Commercial and industrial | 2,148.1 | 36.7 | 6.78 | 2,123.5 | 35.7 | 6.66 | 2,126.3 | 28.1 | 5.24 | ||||||||||||||||
| Commercial real estate | 4,356.3 | 71.4 | 6.51 | 4,381.8 | 71.4 | 6.47 | 4,116.8 | 53.9 | 5.19 | ||||||||||||||||
| Construction | 888.7 | 16.7 | 7.45 | 873.7 | 15.5 | 7.05 | 804.4 | 11.8 | 5.83 | ||||||||||||||||
| Residential: | |||||||||||||||||||||||||
| Residential mortgage | 4,294.8 | 38.8 | 3.61 | 4,316.3 | 40.1 | 3.72 | 4,280.6 | 38.1 | 3.56 | ||||||||||||||||
| Home equity line | 1,174.8 | 11.3 | 3.83 | 1,154.0 | 10.1 | 3.45 | 1,029.7 | 8.1 | 3.10 | ||||||||||||||||
| Consumer | 1,132.4 | 18.4 | 6.43 | 1,172.8 | 18.3 | 6.19 | 1,220.9 | 17.1 | 5.55 | ||||||||||||||||
| Lease financing | 354.2 | 3.6 | 4.03 | 327.3 | 3.7 | 4.48 | 297.4 | 2.9 | 3.92 | ||||||||||||||||
| Total Loans and Leases | 14,349.3 | 196.9 | 5.45 | 14,349.4 | 194.8 | 5.39 | 13,876.1 | 160.0 | 4.58 | ||||||||||||||||
| Other Earning Assets | 94.5 | — | 0.06 | 116.8 | 0.8 | 2.64 | 71.6 | 0.2 | 0.80 | ||||||||||||||||
| Total Earning Assets(2) | 21,688.8 | 242.4 | 4.44 | 22,060.5 | 241.3 | 4.35 | 21,856.1 | 201.9 | 3.67 | ||||||||||||||||
| Cash and Due from Banks | 240.8 | 276.0 | 286.4 | ||||||||||||||||||||||
| Other Assets | 2,475.1 | 2,391.4 | 2,433.1 | ||||||||||||||||||||||
| Total Assets | $ | 24,404.7 | $ | 24,727.9 | $ | 24,575.6 | |||||||||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||||||||
| Interest-Bearing Deposits | |||||||||||||||||||||||||
| Savings | $ | 6,067.2 | $ | 22.4 | 1.46 | % | $ | 5,982.5 | $ | 19.2 | 1.27 | % | 6,455.5 | $ | 10.3 | 0.63 | % | ||||||||
| Money Market | 3,905.0 | 27.5 | 2.79 | 3,907.2 | 24.7 | 2.51 | 4,012.9 | 9.8 | 0.97 | ||||||||||||||||
| Time | 3,390.7 | 32.3 | 3.78 | 3,362.7 | 30.8 | 3.63 | 2,163.2 | 8.1 | 1.48 | ||||||||||||||||
| Total Interest-Bearing Deposits | 13,362.9 | 82.2 | 2.44 | 13,252.4 | 74.7 | 2.23 | 12,631.6 | 28.2 | 0.89 | ||||||||||||||||
| Federal Funds Purchased | — | — | — | — | — | — | 45.5 | 0.5 | 4.09 | ||||||||||||||||
| Other Short-Term Borrowings | 515.2 | 6.2 | 4.80 | 113.1 | 1.5 | 5.17 | — | — | — | ||||||||||||||||
| Long-Term Borrowings | — | — | — | 440.2 | 5.3 | 4.83 | — | — | — | ||||||||||||||||
| Other Interest-Bearing Liabilities | 42.1 | 0.8 | 7.44 | 89.1 | 1.2 | 5.17 | — | — | — | ||||||||||||||||
| Total Interest-Bearing Liabilities | 13,920.2 | 89.2 | 2.54 | 13,894.8 | 82.7 | 2.36 | 12,677.1 | 28.7 | 0.90 | ||||||||||||||||
| Net Interest Income | $ | 153.2 | $ | 158.6 | $ | 173.2 | |||||||||||||||||||
| Interest Rate Spread | 1.90 | % | 1.99 | % | 2.77 | % | |||||||||||||||||||
| Net Interest Margin | 2.81 | % | 2.86 | % | 3.15 | % | |||||||||||||||||||
| Noninterest-Bearing Demand Deposits | 7,545.3 | 7,959.7 | 9,093.6 | ||||||||||||||||||||||
| Other Liabilities | 564.5 | 506.0 | 591.9 | ||||||||||||||||||||||
| Stockholders' Equity | 2,374.7 | 2,367.4 | 2,213.0 | ||||||||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 24,404.7 | $ | 24,727.9 | $ | 24,575.6 | |||||||||||||||||||
(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
| Average Balances and Interest Rates | Table 5 | ||||||||||||||||
| Year Ended | Year Ended | ||||||||||||||||
| December 31, 2023 | December 31, 2022 | ||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||
| (dollars in millions) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||
| Earning Assets | |||||||||||||||||
| Interest-Bearing Deposits in Other Banks | $ | 512.3 | $ | 26.5 | 5.18 | % | $ | 867.6 | $ | 10.3 | 1.19 | % | |||||
| Available-for-Sale Investment Securities | |||||||||||||||||
| Taxable | 2,871.8 | 73.8 | 2.57 | 4,650.1 | 83.2 | 1.79 | |||||||||||
| Non-Taxable | 10.2 | 0.6 | 5.55 | 180.0 | 4.9 | 2.74 | |||||||||||
| Held-to-Maturity Investment Securities | |||||||||||||||||
| Taxable | 3,579.0 | 60.7 | 1.70 | 2,728.2 | 45.5 | 1.67 | |||||||||||
| Non-Taxable | 607.7 | 15.9 | 2.61 | 460.6 | 12.5 | 2.71 | |||||||||||
| Total Investment Securities | 7,068.7 | 151.0 | 2.14 | 8,018.9 | 146.1 | 1.82 | |||||||||||
| Loans Held for Sale | 0.4 | — | 6.63 | 0.6 | — | 3.14 | |||||||||||
| Loans and Leases(1) | |||||||||||||||||
| Commercial and industrial | 2,182.3 | 141.0 | 6.46 | 2,019.5 | 78.4 | 3.88 | |||||||||||
| Commercial real estate | 4,257.9 | 266.0 | 6.25 | 3,895.3 | 153.2 | 3.93 | |||||||||||
| Construction | 877.7 | 62.1 | 7.08 | 755.0 | 32.5 | 4.30 | |||||||||||
| Residential: | |||||||||||||||||
| Residential mortgage | 4,308.0 | 156.4 | 3.63 | 4,200.2 | 145.5 | 3.46 | |||||||||||
| Home equity line | 1,131.1 | 39.3 | 3.47 | 965.0 | 26.5 | 2.75 | |||||||||||
| Consumer | 1,178.6 | 71.5 | 6.07 | 1,218.9 | 65.3 | 5.35 | |||||||||||
| Lease financing | 330.7 | 14.1 | 4.26 | 260.9 | 9.7 | 3.69 | |||||||||||
| Total Loans and Leases | 14,266.3 | 750.4 | 5.26 | 13,314.8 | 511.1 | 3.84 | |||||||||||
| Other Earning Assets | 104.3 | 1.3 | 1.20 | 70.9 | 0.6 | 0.89 | |||||||||||
| Total Earning Assets(2) | 21,952.0 | 929.2 | 4.23 | 22,272.8 | 668.1 | 3.00 | |||||||||||
| Cash and Due from Banks | 265.1 | 289.0 | |||||||||||||||
| Other Assets | 2,408.3 | 2,402.6 | |||||||||||||||
| Total Assets | $ | 24,625.4 | $ | 24,964.4 | |||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||
| Interest-Bearing Deposits | |||||||||||||||||
| Savings | $ | 6,124.7 | $ | 71.5 | 1.17 | % | $ | 6,741.5 | $ | 19.2 | 0.29 | % | |||||
| Money Market | 3,869.1 | 86.1 | 2.22 | 4,068.8 | 16.6 | 0.41 | |||||||||||
| Time | 3,040.0 | 100.6 | 3.31 | 1,826.7 | 13.4 | 0.73 | |||||||||||
| Total Interest-Bearing Deposits | 13,033.8 | 258.2 | 1.98 | 12,637.0 | 49.2 | 0.39 | |||||||||||
| Federal Funds Purchased | 17.2 | 0.8 | 4.45 | 11.5 | 0.5 | 4.08 | |||||||||||
| Other Short-Term Borrowings | 261.9 | 13.0 | 4.98 | — | — | — | |||||||||||
| Long-Term Borrowings | 261.6 | 12.5 | 4.78 | — | — | — | |||||||||||
| Other Interest-Bearing Liabilities | 57.1 | 3.0 | 5.15 | — | — | — | |||||||||||
| Total Interest-Bearing Liabilities | 13,631.6 | 287.5 | 2.11 | 12,648.5 | 49.7 | 0.39 | |||||||||||
| Net Interest Income | $ | 641.7 | $ | 618.4 | |||||||||||||
| Interest Rate Spread | 2.12 | % | 2.61 | % | |||||||||||||
| Net Interest Margin | 2.92 | % | 2.78 | % | |||||||||||||
| Noninterest-Bearing Demand Deposits | 8,126.4 | 9,421.5 | |||||||||||||||
| Other Liabilities | 520.7 | 572.8 | |||||||||||||||
| Stockholders' Equity | 2,346.7 | 2,321.6 | |||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 24,625.4 | $ | 24,964.4 | |||||||||||||
(1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
(2) Interest income includes taxable-equivalent basis adjustments of
| Analysis of Change in Net Interest Income | Table 6 | |||||||||||
| Three Months Ended December 31, 2023 | ||||||||||||
| Compared to September 30, 2023 | ||||||||||||
| (dollars in millions) | Volume | Rate | Total | |||||||||
| Change in Interest Income: | ||||||||||||
| Interest-Bearing Deposits in Other Banks | $ | (0.5 | ) | $ | 0.1 | $ | (0.4 | ) | ||||
| Available-for-Sale Investment Securities | ||||||||||||
| Taxable | (1.6 | ) | 2.2 | 0.6 | ||||||||
| Held-to-Maturity Investment Securities | ||||||||||||
| Taxable | (0.2 | ) | — | (0.2 | ) | |||||||
| Non-Taxable | — | (0.2 | ) | (0.2 | ) | |||||||
| Total Investment Securities | (1.8 | ) | 2.0 | 0.2 | ||||||||
| Loans and Leases | ||||||||||||
| Commercial and industrial | 0.4 | 0.6 | 1.0 | |||||||||
| Commercial real estate | (0.4 | ) | 0.4 | — | ||||||||
| Construction | 0.3 | 0.9 | 1.2 | |||||||||
| Residential: | ||||||||||||
| Residential mortgage | (0.2 | ) | (1.1 | ) | (1.3 | ) | ||||||
| Home equity line | 0.1 | 1.1 | 1.2 | |||||||||
| Consumer | (0.6 | ) | 0.7 | 0.1 | ||||||||
| Lease financing | 0.3 | (0.4 | ) | (0.1 | ) | |||||||
| Total Loans and Leases | (0.1 | ) | 2.2 | 2.1 | ||||||||
| Other Earning Assets | (0.2 | ) | (0.6 | ) | (0.8 | ) | ||||||
| Total Change in Interest Income | (2.6 | ) | 3.7 | 1.1 | ||||||||
| Change in Interest Expense: | ||||||||||||
| Interest-Bearing Deposits | ||||||||||||
| Savings | 0.3 | 2.9 | 3.2 | |||||||||
| Money Market | — | 2.8 | 2.8 | |||||||||
| Time | 0.2 | 1.3 | 1.5 | |||||||||
| Total Interest-Bearing Deposits | 0.5 | 7.0 | 7.5 | |||||||||
| Other Short-Term Borrowings | 4.9 | (0.2 | ) | 4.7 | ||||||||
| Long-Term Borrowings | (2.6 | ) | (2.7 | ) | (5.3 | ) | ||||||
| Other Interest-Bearing Liabilities | (0.8 | ) | 0.4 | (0.4 | ) | |||||||
| Total Change in Interest Expense | 2.0 | 4.5 | 6.5 | |||||||||
| Change in Net Interest Income | $ | (4.6 | ) | $ | (0.8 | ) | $ | (5.4 | ) | |||
| Analysis of Change in Net Interest Income | Table 7 | |||||||||||
| Three Months Ended December 31, 2023 | ||||||||||||
| Compared to December 31, 2022 | ||||||||||||
| (dollars in millions) | Volume | Rate | Total | |||||||||
| Change in Interest Income: | ||||||||||||
| Interest-Bearing Deposits in Other Banks | $ | 3.0 | $ | 1.9 | $ | 4.9 | ||||||
| Available-for-Sale Investment Securities | ||||||||||||
| Taxable | (3.7 | ) | 4.4 | 0.7 | ||||||||
| Non-Taxable | (0.5 | ) | — | (0.5 | ) | |||||||
| Held-to-Maturity Investment Securities | ||||||||||||
| Taxable | (1.1 | ) | 0.1 | (1.0 | ) | |||||||
| Non-Taxable | (0.1 | ) | (0.2 | ) | (0.3 | ) | ||||||
| Total Investment Securities | (5.4 | ) | 4.3 | (1.1 | ) | |||||||
| Loans and Leases | ||||||||||||
| Commercial and industrial | 0.3 | 8.3 | 8.6 | |||||||||
| Commercial real estate | 3.3 | 14.2 | 17.5 | |||||||||
| Construction | 1.3 | 3.6 | 4.9 | |||||||||
| Residential: | ||||||||||||
| Residential mortgage | 0.1 | 0.6 | 0.7 | |||||||||
| Home equity line | 1.2 | 2.0 | 3.2 | |||||||||
| Consumer | (1.3 | ) | 2.6 | 1.3 | ||||||||
| Lease financing | 0.6 | 0.1 | 0.7 | |||||||||
| Total Loans and Leases | 5.5 | 31.4 | 36.9 | |||||||||
| Other Earning Assets | — | (0.2 | ) | (0.2 | ) | |||||||
| Total Change in Interest Income | 3.1 | 37.4 | 40.5 | |||||||||
| Change in Interest Expense: | ||||||||||||
| Interest-Bearing Deposits | ||||||||||||
| Savings | (0.6 | ) | 12.7 | 12.1 | ||||||||
| Money Market | (0.2 | ) | 17.9 | 17.7 | ||||||||
| Time | 6.4 | 17.8 | 24.2 | |||||||||
| Total Interest-Bearing Deposits | 5.6 | 48.4 | 54.0 | |||||||||
| Federal Funds Purchased | (0.3 | ) | (0.2 | ) | (0.5 | ) | ||||||
| Other Short-Term Borrowings | 6.2 | — | 6.2 | |||||||||
| Other Interest-Bearing Liabilities | 0.8 | — | 0.8 | |||||||||
| Total Change in Interest Expense | 12.3 | 48.2 | 60.5 | |||||||||
| Change in Net Interest Income | $ | (9.2 | ) | $ | (10.8 | ) | $ | (20.0 | ) | |||
| Analysis of Change in Net Interest Income | Table 8 | |||||||||||
| Year Ended December 31, 2023 | ||||||||||||
| Compared to December 31, 2022 | ||||||||||||
| (dollars in millions) | Volume | Rate | Total | |||||||||
| Change in Interest Income: | ||||||||||||
| Interest-Bearing Deposits in Other Banks | $ | (5.8 | ) | $ | 22.0 | $ | 16.2 | |||||
| Available-for-Sale Investment Securities | ||||||||||||
| Taxable | (38.3 | ) | 28.9 | (9.4 | ) | |||||||
| Non-Taxable | (6.9 | ) | 2.6 | (4.3 | ) | |||||||
| Held-to-Maturity Investment Securities | ||||||||||||
| Taxable | 14.4 | 0.8 | 15.2 | |||||||||
| Non-Taxable | 3.9 | (0.5 | ) | 3.4 | ||||||||
| Total Investment Securities | (26.9 | ) | 31.8 | 4.9 | ||||||||
| Loans and Leases | ||||||||||||
| Commercial and industrial | 6.8 | 55.8 | 62.6 | |||||||||
| Commercial real estate | 15.4 | 97.4 | 112.8 | |||||||||
| Construction | 5.9 | 23.7 | 29.6 | |||||||||
| Residential: | ||||||||||||
| Residential mortgage | 3.7 | 7.2 | 10.9 | |||||||||
| Home equity line | 5.1 | 7.7 | 12.8 | |||||||||
| Consumer | (2.3 | ) | 8.5 | 6.2 | ||||||||
| Lease financing | 2.8 | 1.6 | 4.4 | |||||||||
| Total Loans and Leases | 37.4 | 201.9 | 239.3 | |||||||||
| Other Earning Assets | 0.4 | 0.3 | 0.7 | |||||||||
| Total Change in Interest Income | 5.1 | 256.0 | 261.1 | |||||||||
| Change in Interest Expense: | ||||||||||||
| Interest-Bearing Deposits | ||||||||||||
| Savings | (1.9 | ) | 54.2 | 52.3 | ||||||||
| Money Market | (0.9 | ) | 70.4 | 69.5 | ||||||||
| Time | 13.8 | 73.4 | 87.2 | |||||||||
| Total Interest-Bearing Deposits | 11.0 | 198.0 | 209.0 | |||||||||
| Federal Funds Purchased | 0.2 | 0.1 | 0.3 | |||||||||
| Other Short-Term Borrowings | 13.0 | — | 13.0 | |||||||||
| Long-Term Borrowings | 12.5 | — | 12.5 | |||||||||
| Other Interest-Bearing Liabilities | 3.0 | — | 3.0 | |||||||||
| Total Change in Interest Expense | 39.7 | 198.1 | 237.8 | |||||||||
| Change in Net Interest Income | $ | (34.6 | ) | $ | 57.9 | $ | 23.3 | |||||
| Loans and Leases | Table 9 | ||||||||
| December 31, | September 30, | December 31, | |||||||
| (dollars in thousands) | 2023 | 2023 | 2022 | ||||||
| Commercial and industrial: | |||||||||
| Commercial and industrial excluding Paycheck Protection Program loans | $ | 2,156,872 | $ | 2,091,379 | $ | 2,217,604 | |||
| Paycheck Protection Program loans | 8,477 | 10,063 | 18,293 | ||||||
| Total commercial and industrial | 2,165,349 | 2,101,442 | 2,235,897 | ||||||
| Commercial real estate | 4,340,243 | 4,387,751 | 4,132,309 | ||||||
| Construction | 900,292 | 885,112 | 844,643 | ||||||
| Residential: | |||||||||
| Residential mortgage | 4,283,315 | 4,303,924 | 4,302,788 | ||||||
| Home equity line | 1,174,588 | 1,167,388 | 1,055,351 | ||||||
| Total residential | 5,457,903 | 5,471,312 | 5,358,139 | ||||||
| Consumer | 1,109,901 | 1,154,203 | 1,222,934 | ||||||
| Lease financing | 379,809 | 332,515 | 298,090 | ||||||
| Total loans and leases | $ | 14,353,497 | $ | 14,332,335 | $ | 14,092,012 | |||
| Deposits | Table 10 | ||||||||
| December 31, | September 30, | December 31, | |||||||
| (dollars in thousands) | 2023 | 2023 | 2022 | ||||||
| Demand | $ | 7,583,562 | $ | 7,898,996 | $ | 8,864,646 | |||
| Savings | 6,445,084 | 6,028,308 | 6,382,910 | ||||||
| Money Market | 3,847,853 | 3,923,054 | 3,965,423 | ||||||
| Time | 3,456,158 | 3,661,131 | 2,476,050 | ||||||
| Total Deposits | $ | 21,332,657 | $ | 21,511,489 | $ | 21,689,029 | |||
| Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More | Table 11 | ||||||||
| December 31, | September 30, | December 31, | |||||||
| (dollars in thousands) | 2023 | 2023 | 2022 | ||||||
| Non-Performing Assets | |||||||||
| Non-Accrual Loans and Leases | |||||||||
| Commercial Loans: | |||||||||
| Commercial and industrial | $ | 970 | $ | 988 | $ | 1,215 | |||
| Commercial real estate | 2,953 | — | 727 | ||||||
| Total Commercial Loans | 3,923 | 988 | 1,942 | ||||||
| Residential Loans: | |||||||||
| Residential mortgage | 7,620 | 7,435 | 6,166 | ||||||
| Home equity line | 7,052 | 6,200 | 3,797 | ||||||
| Total Residential Loans | 14,672 | 13,635 | 9,963 | ||||||
| Total Non-Accrual Loans and Leases | 18,595 | 14,623 | 11,905 | ||||||
| Other Real Estate Owned | — | — | 91 | ||||||
| Total Non-Performing Assets | $ | 18,595 | $ | 14,623 | $ | 11,996 | |||
| Accruing Loans and Leases Past Due 90 Days or More | |||||||||
| Commercial Loans: | |||||||||
| Commercial and industrial | $ | 494 | $ | 289 | $ | 291 | |||
| Commercial real estate | 300 | 170 | — | ||||||
| Total Commercial Loans | 794 | 459 | 291 | ||||||
| Residential mortgage | — | 1,430 | 58 | ||||||
| Consumer | 2,702 | 1,681 | 2,885 | ||||||
| Total Accruing Loans and Leases Past Due 90 Days or More | $ | 3,496 | $ | 3,570 | $ | 3,234 | |||
| Total Loans and Leases | $ | 14,353,497 | $ | 14,332,335 | $ | 14,092,012 | |||
| Allowance for Credit Losses and Reserve for Unfunded Commitments | Table 12 | ||||||||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||||
| (dollars in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
| Balance at Beginning of Period | $ | 192,570 | $ | 184,780 | $ | 178,304 | 177,735 | 187,584 | |||||||||||||
| Loans and Leases Charged-Off | |||||||||||||||||||||
| Commercial Loans: | |||||||||||||||||||||
| Commercial and industrial | (910 | ) | (784 | ) | (735 | ) | (3,482 | ) | (2,012 | ) | |||||||||||
| Commercial real estate | (2,500 | ) | — | — | (2,500 | ) | (750 | ) | |||||||||||||
| Total Commercial Loans | (3,410 | ) | (784 | ) | (735 | ) | (5,982 | ) | (2,762 | ) | |||||||||||
| Residential Loans: | |||||||||||||||||||||
| Residential mortgage | — | — | (102 | ) | (122 | ) | (103 | ) | |||||||||||||
| Home equity line | (20 | ) | — | (12 | ) | (292 | ) | (1,175 | ) | ||||||||||||
| Total Residential Loans | (20 | ) | — | (114 | ) | (414 | ) | (1,278 | ) | ||||||||||||
| Consumer | (4,147 | ) | (3,665 | ) | (5,094 | ) | (17,110 | ) | (16,848 | ) | |||||||||||
| Total Loans and Leases Charged-Off | (7,577 | ) | (4,449 | ) | (5,943 | ) | (23,506 | ) | (20,888 | ) | |||||||||||
| Recoveries on Loans and Leases Previously Charged-Off | |||||||||||||||||||||
| Commercial Loans: | |||||||||||||||||||||
| Commercial and industrial | 171 | 2,637 | 303 | 3,346 | 897 | ||||||||||||||||
| Commercial real estate | — | — | — | — | 14 | ||||||||||||||||
| Lease financing | — | — | — | — | 60 | ||||||||||||||||
| Total Commercial Loans | 171 | 2,637 | 303 | 3,346 | 971 | ||||||||||||||||
| Residential Loans: | |||||||||||||||||||||
| Residential mortgage | 31 | 53 | 173 | 141 | 418 | ||||||||||||||||
| Home equity line | 163 | 303 | 138 | 702 | 713 | ||||||||||||||||
| Total Residential Loans | 194 | 356 | 311 | 843 | 1,131 | ||||||||||||||||
| Consumer | 1,450 | 1,746 | 1,804 | 7,090 | 7,545 | ||||||||||||||||
| Total Recoveries on Loans and Leases Previously Charged-Off | 1,815 | 4,739 | 2,418 | 11,279 | 9,647 | ||||||||||||||||
| Net Loans and Leases (Charged-Off) Recovered | (5,762 | ) | 290 | (3,525 | ) | (12,227 | ) | (11,241 | ) | ||||||||||||
| Provision for Credit Losses | 5,330 | 7,500 | 2,956 | 26,630 | 1,392 | ||||||||||||||||
| Balance at End of Period | $ | 192,138 | $ | 192,570 | $ | 177,735 | $ | 192,138 | $ | 177,735 | |||||||||||
| Components: | |||||||||||||||||||||
| Allowance for Credit Losses | $ | 156,533 | $ | 154,795 | $ | 143,900 | $ | 156,533 | $ | 143,900 | |||||||||||
| Reserve for Unfunded Commitments | 35,605 | 37,775 | 33,835 | 35,605 | 33,835 | ||||||||||||||||
| Total Allowance for Credit Losses and Reserve for Unfunded Commitments | $ | 192,138 | $ | 192,570 | $ | 177,735 | $ | 192,138 | $ | 177,735 | |||||||||||
| Average Loans and Leases Outstanding | $ | 14,349,322 | $ | 14,349,402 | $ | 13,876,136 | $ | 14,266,291 | $ | 13,314,821 | |||||||||||
| Ratio of Net Loans and Leases Charged-Off (Recovered) to Average Loans and Leases Outstanding(1) | 0.16 | % | (0.01 | ) | % | 0.10 | % | 0.09 | % | 0.08 | % | ||||||||||
| Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding | 1.09 | % | 1.08 | % | 1.02 | % | 1.09 | % | 1.02 | % | |||||||||||
| Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases | 8.42x | 10.59x | 12.09x | 8.42x | 12.09x | ||||||||||||||||
(1) Annualized for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022.
| Loans and Leases by Year of Origination and Credit Quality Indicator | Table 13 | ||||||||||||||||||||||||||
| Revolving | |||||||||||||||||||||||||||
| Loans | |||||||||||||||||||||||||||
| Converted | |||||||||||||||||||||||||||
| Term Loans | Revolving | to Term | |||||||||||||||||||||||||
| Amortized Cost Basis by Origination Year | Loans | Loans | |||||||||||||||||||||||||
| Amortized | Amortized | ||||||||||||||||||||||||||
| (dollars in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Cost Basis | Cost Basis | Total | ||||||||||||||||||
| Commercial Lending | |||||||||||||||||||||||||||
| Commercial and Industrial | |||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||
| Pass | $ | 85,839 | $ | 273,663 | $ | 346,024 | $ | 32,753 | $ | 146,893 | $ | 141,681 | $ | 971,065 | $ | 1,823 | $ | 1,999,741 | |||||||||
| Special Mention | 1 | 44,069 | 80 | 653 | 1,032 | 1,290 | 22,807 | 14 | 69,946 | ||||||||||||||||||
| Substandard | — | 342 | 230 | 677 | 1,686 | 829 | 8,330 | — | 12,094 | ||||||||||||||||||
| Other (1) | 15,978 | 11,598 | 4,814 | 2,370 | 1,702 | 1,125 | 45,981 | — | 83,568 | ||||||||||||||||||
| Total Commercial and Industrial | 101,818 | 329,672 | 351,148 | 36,453 | 151,313 | 144,925 | 1,048,183 | 1,837 | 2,165,349 | ||||||||||||||||||
| Current period gross charge-offs | 130 | 70 | 75 | 87 | 168 | 2,952 | — | — | 3,482 | ||||||||||||||||||
| Commercial Real Estate | |||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||
| Pass | 346,369 | 872,783 | 676,362 | 337,529 | 523,446 | 1,414,613 | 74,238 | 1,350 | 4,246,690 | ||||||||||||||||||
| Special Mention | 2,307 | 7,618 | 41,320 | 1,359 | 13,550 | 11,998 | 819 | — | 78,971 | ||||||||||||||||||
| Substandard | 205 | 5,079 | 2,003 | — | 2,953 | 2,545 | 1,655 | — | 14,440 | ||||||||||||||||||
| Other (1) | — | — | — | — | — | 142 | — | — | 142 | ||||||||||||||||||
| Total Commercial Real Estate | 348,881 | 885,480 | 719,685 | 338,888 | 539,949 | 1,429,298 | 76,712 | 1,350 | 4,340,243 | ||||||||||||||||||
| Current period gross charge-offs | — | — | — | — | 2,500 | — | — | — | 2,500 | ||||||||||||||||||
| Construction | |||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||
| Pass | 156,432 | 269,623 | 265,674 | 60,057 | 63,018 | 27,847 | 6,070 | — | 848,721 | ||||||||||||||||||
| Special Mention | — | — | — | — | 189 | 665 | — | — | 854 | ||||||||||||||||||
| Other (1) | 12,728 | 21,036 | 8,250 | 2,143 | 2,031 | 3,820 | 709 | — | 50,717 | ||||||||||||||||||
| Total Construction | 169,160 | 290,659 | 273,924 | 62,200 | 65,238 | 32,332 | 6,779 | — | 900,292 | ||||||||||||||||||
| Current period gross charge-offs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
| Lease Financing | |||||||||||||||||||||||||||
| Risk rating: | |||||||||||||||||||||||||||
| Pass | 145,914 | 82,833 | 18,680 | 31,791 | 30,299 | 68,520 | — | — | 378,037 | ||||||||||||||||||
| Special Mention | 56 | 137 | 414 | 35 | — | — | — | — | 642 | ||||||||||||||||||
| Substandard | 712 | 416 | — | — | 2 | — | — | — | 1,130 | ||||||||||||||||||
| Total Lease Financing | 146,682 | 83,386 | 19,094 | 31,826 | 30,301 | 68,520 | — | — | 379,809 | ||||||||||||||||||
| Current period gross charge-offs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
| Total Commercial Lending | $ | 766,541 | $ | 1,589,197 | $ | 1,363,851 | $ | 469,367 | $ | 786,801 | $ | 1,675,075 | $ | 1,131,674 | $ | 3,187 | $ | 7,785,693 | |||||||||
| Current period gross charge-offs | $ | 130 | $ | 70 | $ | 75 | $ | 87 | $ | 2,668 | $ | 2,952 | $ | — | $ | — | $ | 5,982 | |||||||||
| Revolving | |||||||||||||||||||||||||||
| Loans | |||||||||||||||||||||||||||
| Converted | |||||||||||||||||||||||||||
| Term Loans | Revolving | to Term | |||||||||||||||||||||||||
| Amortized Cost Basis by Origination Year | Loans | Loans | |||||||||||||||||||||||||
| (continued) | Amortized | Amortized | |||||||||||||||||||||||||
| (dollars in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Cost Basis | Cost Basis | Total | ||||||||||||||||||
| Residential Lending | |||||||||||||||||||||||||||
| Residential Mortgage | |||||||||||||||||||||||||||
| FICO: | |||||||||||||||||||||||||||
| 740 and greater | $ | 211,598 | $ | 529,296 | $ | 999,522 | $ | 529,881 | $ | 227,058 | $ | 987,251 | $ | — | $ | — | $ | 3,484,606 | |||||||||
| 680 - 739 | 36,975 | 67,205 | 117,337 | 68,122 | 33,148 | 130,387 | — | — | 453,174 | ||||||||||||||||||
| 620 - 679 | 3,544 | 16,395 | 19,184 | 12,811 | 4,096 | 38,987 | — | — | 95,017 | ||||||||||||||||||
| 550 - 619 | 1,305 | 6,521 | 1,917 | 2,492 | 398 | 11,679 | — | — | 24,312 | ||||||||||||||||||
| Less than 550 | — | — | 2,909 | 2,017 | 582 | 6,439 | — | — | 11,947 | ||||||||||||||||||
| No Score (3) | 9,137 | 19,311 | 11,492 | 6,043 | 9,679 | 51,109 | — | — | 106,771 | ||||||||||||||||||
| Other (2) | 15,802 | 17,528 | 17,432 | 12,534 | 8,599 | 25,513 | 10,080 | — | 107,488 | ||||||||||||||||||
| Total Residential Mortgage | 278,361 | 656,256 | 1,169,793 | 633,900 | 283,560 | 1,251,365 | 10,080 | — | 4,283,315 | ||||||||||||||||||
| Current period gross charge-offs | — | — | — | — | — | 122 | — | — | 122 | ||||||||||||||||||
| Home Equity Line | |||||||||||||||||||||||||||
| FICO: | |||||||||||||||||||||||||||
| 740 and greater | — | — | — | — | — | — | 964,932 | 1,511 | 966,443 | ||||||||||||||||||
| 680 - 739 | — | — | — | — | — | — | 151,716 | 1,920 | 153,636 | ||||||||||||||||||
| 620 - 679 | — | — | — | — | — | — | 36,541 | 1,189 | 37,730 | ||||||||||||||||||
| 550 - 619 | — | — | — | — | — | — | 9,896 | 1,012 | 10,908 | ||||||||||||||||||
| Less than 550 | — | — | — | — | — | — | 4,488 | 100 | 4,588 | ||||||||||||||||||
| No Score (3) | — | — | — | — | — | — | 1,283 | — | 1,283 | ||||||||||||||||||
| Total Home Equity Line | — | — | — | — | — | — | 1,168,856 | 5,732 | 1,174,588 | ||||||||||||||||||
| Current period gross charge-offs | — | — | — | — | — | — | 273 | 19 | 292 | ||||||||||||||||||
| Total Residential Lending | $ | 278,361 | $ | 656,256 | $ | 1,169,793 | $ | 633,900 | $ | 283,560 | $ | 1,251,365 | $ | 1,178,936 | $ | 5,732 | $ | 5,457,903 | |||||||||
| Current period gross charge-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 122 | $ | 273 | $ | 19 | $ | 414 | |||||||||
| Consumer Lending | |||||||||||||||||||||||||||
| FICO: | |||||||||||||||||||||||||||
| 740 and greater | 92,117 | 128,358 | 76,148 | 33,507 | 21,819 | 8,970 | 123,592 | 155 | 484,666 | ||||||||||||||||||
| 680 - 739 | 68,865 | 71,031 | 37,925 | 17,116 | 13,270 | 5,690 | 76,645 | 401 | 290,943 | ||||||||||||||||||
| 620 - 679 | 28,533 | 29,229 | 16,919 | 7,843 | 7,972 | 4,624 | 35,210 | 781 | 131,111 | ||||||||||||||||||
| 550 - 619 | 4,996 | 10,859 | 7,760 | 4,917 | 4,651 | 2,986 | 13,223 | 925 | 50,317 | ||||||||||||||||||
| Less than 550 | 1,790 | 6,370 | 4,842 | 2,796 | 2,905 | 2,040 | 5,222 | 455 | 26,420 | ||||||||||||||||||
| No Score (3) | 1,545 | 229 | — | — | 1 | 10 | 42,933 | 136 | 44,854 | ||||||||||||||||||
| Other (2) | 361 | 368 | 982 | 335 | 1,059 | 1 | 78,484 | — | 81,590 | ||||||||||||||||||
| Total Consumer Lending | $ | 198,207 | $ | 246,444 | $ | 144,576 | $ | 66,514 | $ | 51,677 | $ | 24,321 | $ | 375,309 | $ | 2,853 | $ | 1,109,901 | |||||||||
| Current period gross charge-offs | $ | 639 | $ | 2,400 | $ | 2,135 | $ | 1,142 | $ | 1,816 | $ | 2,622 | $ | 5,790 | $ | 566 | $ | 17,110 | |||||||||
| Total Loans and Leases | $ | 1,243,109 | $ | 2,491,897 | $ | 2,678,220 | $ | 1,169,781 | $ | 1,122,038 | $ | 2,950,761 | $ | 2,685,919 | $ | 11,772 | $ | 14,353,497 | |||||||||
| Current period gross charge-offs | $ | 769 | $ | 2,470 | $ | 2,210 | $ | 1,229 | $ | 4,484 | $ | 5,696 | $ | 6,063 | $ | 585 | $ | 23,506 | |||||||||
(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 Year Ended | |||||||||||||||
| December 31, | September 30, | December 31, | December 31, | |||||||||||||
| (dollars in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Income Statement Data: | ||||||||||||||||
| Net income | $ | 47,502 | $ | 58,221 | $ | 79,588 | $ | 234,983 | $ | 265,685 | ||||||
| Average total stockholders' equity | $ | 2,374,669 | $ | 2,367,422 | $ | 2,213,030 | $ | 2,346,713 | $ | 2,321,606 | ||||||
| Less: average goodwill | 995,492 | 995,492 | 995,492 | 995,492 | 995,492 | |||||||||||
| Average tangible stockholders' equity | $ | 1,379,177 | $ | 1,371,930 | $ | 1,217,538 | $ | 1,351,221 | $ | 1,326,114 | ||||||
| Average total assets | $ | 24,404,727 | $ | 24,727,893 | $ | 24,575,648 | $ | 24,625,445 | $ | 24,964,422 | ||||||
| Less: average goodwill | 995,492 | 995,492 | 995,492 | 995,492 | 995,492 | |||||||||||
| Average tangible assets | $ | 23,409,235 | $ | 23,732,401 | $ | 23,580,156 | $ | 23,629,953 | $ | 23,968,930 | ||||||
| Return on average total stockholders' equity(1) | 7.94 | % | 9.76 | % | 14.27 | % | 10.01 | % | 11.44 | % | ||||||
| Return on average tangible stockholders' equity (non-GAAP)(1) | 13.66 | % | 16.84 | % | 25.93 | % | 17.39 | % | 20.03 | % | ||||||
| Return on average total assets(1) | 0.77 | % | 0.93 | % | 1.28 | % | 0.95 | % | 1.06 | % | ||||||
| Return on average tangible assets (non-GAAP)(1) | 0.81 | % | 0.97 | % | 1.34 | % | 0.99 | % | 1.11 | % | ||||||
| As of | As of | As of | ||||||||
| December 31, | September 30, | December 31, | ||||||||
| (dollars in thousands, except per share amounts) | 2023 | 2023 | 2022 | |||||||
| Balance Sheet Data: | ||||||||||
| Total stockholders' equity | $ | 2,486,066 | $ | 2,351,009 | $ | 2,269,005 | ||||
| Less: goodwill | 995,492 | 995,492 | 995,492 | |||||||
| Tangible stockholders' equity | $ | 1,490,574 | $ | 1,355,517 | $ | 1,273,513 | ||||
| Total assets | $ | 24,926,474 | $ | 24,912,524 | $ | 24,577,223 | ||||
| Less: goodwill | 995,492 | 995,492 | 995,492 | |||||||
| Tangible assets | $ | 23,930,982 | $ | 23,917,032 | $ | 23,581,731 | ||||
| Shares outstanding | 127,618,761 | 127,609,934 | 127,363,327 | |||||||
| Total stockholders' equity to total assets | 9.97 | % | 9.44 | % | 9.23 | % | ||||
| Tangible stockholders' equity to tangible assets (non-GAAP) | 6.23 | % | 5.67 | % | 5.40 | % | ||||
| Book value per share | $ | 19.48 | $ | 18.42 | $ | 17.82 | ||||
| Tangible book value per share (non-GAAP) | $ | 11.68 | $ | 10.62 | $ | 10.00 | ||||
(1) Annualized for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022.
FAQ
What was First Hawaiian, Inc.'s quarterly cash dividend?
What was First Hawaiian, Inc.'s stock repurchase program for 2024?
What was the net income of First Hawaiian, Inc. for the fourth quarter of 2023?
What was the total deposits of First Hawaiian, Inc. as of December 31, 2023?
What was the net interest margin for First Hawaiian, Inc. in the fourth quarter of 2023?
