First Hawaiian, Inc. Reports Fourth Quarter 2024 Financial Results and Declares Dividend
First Hawaiian (NASDAQ:FHB) reported Q4 2024 financial results with net income of $52.5 million, or $0.41 per diluted share. The company restructured its investment portfolio, selling $290.4 million of low-yielding securities and reinvesting in $291.5 million of higher-yielding securities, resulting in a $26.2 million pre-tax loss.
Key highlights include: total loans and leases increased by $166.9 million to $14.4 billion, total deposits grew by $94.5 million to $20.3 billion, and net interest margin expanded 8 basis points to 3.03%. The company declared a quarterly dividend of $0.26 per share and approved a new $100 million stock repurchase program for 2025.
Asset quality remained strong with an allowance for credit losses at 1.11% of total loans. The company maintained solid capital ratios with tier 1 leverage at 9.14%, common equity tier 1 at 12.80%, and total capital ratio at 13.99%.
First Hawaiian (NASDAQ:FHB) ha riportato i risultati finanziari del quarto trimestre 2024 con un utile netto di 52,5 milioni di dollari, pari a 0,41 dollari per azione diluita. L'azienda ha ristrutturato il proprio portafoglio di investimenti, vendendo 290,4 milioni di dollari di titoli a basso rendimento e reinvestendo in 291,5 milioni di dollari di titoli a rendimento più elevato, il che ha comportato una perdita ante imposte di 26,2 milioni di dollari.
I punti salienti includono: i prestiti e i leasing totali sono aumentati di 166,9 milioni di dollari, raggiungendo 14,4 miliardi di dollari; i depositi totali sono cresciuti di 94,5 milioni di dollari, arrivando a 20,3 miliardi di dollari; e il margine d'interesse netto è aumentato di 8 punti base, raggiungendo il 3,03%. L'azienda ha dichiarato un dividendo trimestrale di 0,26 dollari per azione e ha approvato un nuovo programma di riacquisto di azioni da 100 milioni di dollari per il 2025.
La qualità degli attivi è rimasta solida, con un accantonamento per perdite su crediti pari all'1,11% dei prestiti totali. L'azienda ha mantenuto solidi rapporti patrimoniali con un leverage di primo livello al 9,14%, un patrimonio netto di base comune al 12,80% e un rapporto di capitale totale al 13,99%.
First Hawaiian (NASDAQ:FHB) informó los resultados financieros del cuarto trimestre de 2024 con una ganancia neta de 52,5 millones de dólares, o 0,41 dólares por acción diluida. La compañía reestructuró su cartera de inversiones, vendiendo 290,4 millones de dólares en valores de bajo rendimiento y reinvirtiendo en 291,5 millones de dólares en valores de mayor rendimiento, lo que resultó en una pérdida antes de impuestos de 26,2 millones de dólares.
Los aspectos destacados incluyen: los préstamos y arrendamientos totales aumentaron en 166,9 millones de dólares, alcanzando 14,4 mil millones de dólares; los depósitos totales crecieron en 94,5 millones de dólares, llegando a 20,3 mil millones de dólares; y el margen de interés neto se amplió en 8 puntos básicos, alcanzando el 3,03%. La compañía declaró un dividendo trimestral de 0,26 dólares por acción y aprobó un nuevo programa de recompra de acciones por 100 millones de dólares para 2025.
La calidad de los activos se mantuvo sólida con una provisión para pérdidas crediticias del 1,11% de los préstamos totales. La compañía mantuvo sólidos ratios de capital con un apalancamiento de nivel 1 del 9,14%, un patrimonio neto de nivel 1 común del 12,80% y un ratio de capital total del 13,99%.
퍼스트 하와이안 (NASDAQ:FHB)은 2024년 4분기 재무 결과를 보고하며, 순이익이 5,250만 달러, 혹은 희석 주당 0.41달러로 나타났습니다. 회사는 투자 포트폴리오를 재구성하고, 저수익증권 2억 9,040만 달러를 판매한 후, 고수익증권에 2억 9,150만 달러를 재투자하여 세전 손실 2,620만 달러를 초래했습니다.
주요 내용으로는: 총 대출 및 리스가 1억 6,690만 달러 증가해 1,440억 달러에 도달했으며, 총 예금이 9,450만 달러 증가해 2,030억 달러가 되었고, 순이자마진은 8bp 증가하여 3.03%가 되었습니다. 회사는 주당 0.26달러의 분기 배당금을 선언하고, 2025년을 위한 1억 달러 규모의 새로운 자사주 매입 프로그램을 승인했습니다.
자산 품질은 여전히 강력하며, 총 대출의 1.11%에 해당하는 신용 손실 준비금이 유지되고 있습니다. 회사는 1단계 레버리지 비율이 9.14%, 일반 자본 1단계 비율이 12.80%, 그리고 총 자본 비율이 13.99%인 견고한 자본 비율을 유지했습니다.
First Hawaiian (NASDAQ:FHB) a annoncé les résultats financiers du quatrième trimestre 2024 avec un revenu net de 52,5 millions de dollars, soit 0,41 dollar par action diluée. L'entreprise a restructuré son portefeuille d'investissement en vendant des titres à faible rendement pour un montant de 290,4 millions de dollars et en réinvestissant 291,5 millions de dollars dans des titres à rendement plus élevé, ce qui a entraîné une perte avant impôts de 26,2 millions de dollars.
Les faits marquants incluent : le montant total des prêts et des baux a augmenté de 166,9 millions de dollars pour atteindre 14,4 milliards de dollars ; les dépôts totaux ont augmenté de 94,5 millions de dollars pour atteindre 20,3 milliards de dollars ; et la marge d'intérêt nette s'est élargie de 8 points de base pour s'établir à 3,03 %. L'entreprise a déclaré un dividende trimestriel de 0,26 dollar par action et a approuvé un nouveau programme de rachat d'actions de 100 millions de dollars pour 2025.
La qualité des actifs est restée solide avec une provision pour pertes sur créances de 1,11 % des prêts totaux. L'entreprise a maintenu des ratios de capital solides, avec un levier de premier niveau à 9,14 %, un ratio de fonds propres de premier niveau commun à 12,80 %, et un ratio de capital total à 13,99 %.
First Hawaiian (NASDAQ:FHB) meldete die Finanzzahlen für das vierte Quartal 2024 mit einem Nettogewinn von 52,5 Millionen US-Dollar oder 0,41 US-Dollar pro verwässerter Aktie. Das Unternehmen hat sein Investmentportfolio umstrukturiert, indem es Wertpapiere mit niedrigem Ertrag im Wert von 290,4 Millionen US-Dollar verkauft und 291,5 Millionen US-Dollar in höherverzinsliche Wertpapiere reinvestiert hat, was zu einem Vorsteuerverlust von 26,2 Millionen US-Dollar führte.
Die wichtigsten Highlights sind: die gesamten Kredite und Leasingverträge erhöhten sich um 166,9 Millionen US-Dollar auf 14,4 Milliarden US-Dollar; die gesamten Einlagen wuchsen um 94,5 Millionen US-Dollar auf 20,3 Milliarden US-Dollar; und die Nettozinsspanne erweiterte sich um 8 Basispunkte auf 3,03%. Das Unternehmen erklärte eine vierteljährliche Dividende von 0,26 US-Dollar pro Aktie und genehmigte ein neues Aktienrückkaufprogramm über 100 Millionen US-Dollar für 2025.
Die Asset-Qualität blieb stark, mit einer Rückstellung für Kreditverluste von 1,11% der Gesamtkredite. Das Unternehmen hielt solide Kapitalquoten mit einer Tier-1-Leverage von 9,14%, einem Kernkapital von 12,80% und einer Gesamtkapitalquote von 13,99%.
- Net interest margin increased 8 basis points to 3.03%
- Loan portfolio grew by $166.9 million (1.2% increase)
- Deposits increased by $94.5 million (0.5% increase)
- Strong asset quality with low non-performing assets ratio of 0.14%
- New $100 million stock repurchase program approved for 2025
- Net income impacted by $26.2 million pre-tax loss from securities sale
- Efficiency ratio increased to 65.5% from 59.8% in previous quarter
- Non-performing assets increased to $20.7 million from $17.8 million quarter-over-quarter
Insights
First Hawaiian's Q4 2024 results demonstrate strategic balance sheet management amid evolving market conditions. The bank executed a noteworthy investment portfolio restructuring, selling
The bank's fundamentals show resilience with key performance metrics:
- Net interest margin expanded by
8% to3.03% , reflecting improved earning asset yields - Loan growth of
1.2% quarter-over-quarter indicates steady demand - Deposit growth of
$94.5M demonstrates stable funding base - Asset quality remains excellent with NPAs at just
0.14%
The efficiency ratio increased to
The
HONOLULU, Jan. 31, 2025 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended December 31, 2024.
“I’m pleased to report that we finished 2024 with a very strong quarter that was highlighted by good performance across our key earnings drivers. Our loan and deposit balances grew, net interest margin expanded, expenses were well controlled and credit quality remained excellent. We also maintained our commitment to supporting our communities with a
On January 29, 2025, 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 2024 Highlights:
- Restructured a portion of the investment portfolio by selling
$290.4 million of low-yielding investment securities and reinvested the sale proceeds into$291.5 million of higher-yielding securities. Recognized a$26.2 million pre-tax ($19.2 million after-tax) loss on the sale of securities. - Net income of
$52.5 million , or$0.41 per diluted share - Total loans and leases increased
$166.9 million versus prior quarter - Total deposits increased
$94.5 million versus prior quarter - Net interest margin increased 8 basis points to
3.03% - Recorded a
$0.8 million negative provision for credit losses - 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 2024 was
The net interest margin was
Provision Expense
During the quarter ended December 31, 2024, 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 repurchased 1.5 million shares of common stock at a total cost of
As to the stock repurchase program approved for 2025, 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/BI80003c73e95b445aa5fe62db794097bb, 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, 2023 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024.
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) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
Operating Results: | ||||||||||||||||||||
Net interest income | $ | 158,753 | $ | 156,707 | $ | 151,793 | $ | 622,738 | $ | 636,127 | ||||||||||
(Benefit) provision for credit losses | (750 | ) | 7,400 | 5,330 | 14,750 | 26,630 | ||||||||||||||
Noninterest income | 29,376 | 53,288 | 58,347 | 185,803 | 200,815 | |||||||||||||||
Noninterest expense | 124,143 | 126,147 | 142,307 | 501,189 | 501,138 | |||||||||||||||
Net income | 52,496 | 61,492 | 47,502 | 230,129 | 234,983 | |||||||||||||||
Basic earnings per share | 0.41 | 0.48 | 0.37 | 1.80 | 1.84 | |||||||||||||||
Diluted earnings per share | 0.41 | 0.48 | 0.37 | 1.79 | 1.84 | |||||||||||||||
Dividends declared per share | 0.26 | 0.26 | 0.26 | 1.04 | 1.04 | |||||||||||||||
Dividend payout ratio | 63.41 | % | 54.17 | % | 70.27 | % | 58.10 | % | 56.52 | % | ||||||||||
Performance Ratios(1): | ||||||||||||||||||||
Net interest margin | 3.03 | % | 2.95 | % | 2.81 | % | 2.95 | % | 2.92 | % | ||||||||||
Efficiency ratio | 65.51 | % | 59.77 | % | 67.28 | % | 61.57 | % | 59.48 | % | ||||||||||
Return on average total assets | 0.88 | % | 1.02 | % | 0.77 | % | 0.96 | % | 0.95 | % | ||||||||||
Return on average tangible assets (non-GAAP)(2) | 0.92 | % | 1.06 | % | 0.81 | % | 1.00 | % | 0.99 | % | ||||||||||
Return on average total stockholders' equity | 7.94 | % | 9.45 | % | 7.94 | % | 9.00 | % | 10.01 | % | ||||||||||
Return on average tangible stockholders' equity (non-GAAP)(2) | 12.78 | % | 15.35 | % | 13.66 | % | 14.74 | % | 17.39 | % | ||||||||||
Average Balances: | ||||||||||||||||||||
Average loans and leases | $ | 14,276,107 | $ | 14,304,806 | $ | 14,349,322 | $ | 14,312,759 | $ | 14,266,291 | ||||||||||
Average earning assets | 21,079,951 | 21,328,882 | 21,688,816 | 21,284,169 | 21,952,009 | |||||||||||||||
Average assets | 23,795,735 | 24,046,696 | 24,404,727 | 23,996,723 | 24,625,445 | |||||||||||||||
Average deposits | 20,249,573 | 20,367,805 | 20,908,221 | 20,373,975 | 21,160,155 | |||||||||||||||
Average stockholders' equity | 2,629,600 | 2,588,806 | 2,374,669 | 2,557,215 | 2,346,713 | |||||||||||||||
Market Value Per Share: | ||||||||||||||||||||
Closing | 25.95 | 23.15 | 22.86 | 25.95 | 22.86 | |||||||||||||||
High | 28.80 | 26.18 | 23.22 | 28.80 | 28.28 | |||||||||||||||
Low | 22.08 | 20.28 | 17.18 | 19.48 | 15.08 |
As of | As of | As of | ||||||||||
December 31, | September 30, | December 31, | ||||||||||
(dollars in thousands, except per share data) | 2024 | 2024 | 2023 | |||||||||
Balance Sheet Data: | ||||||||||||
Loans and leases | $ | 14,408,258 | $ | 14,241,370 | $ | 14,353,497 | ||||||
Total assets | 23,828,186 | 23,780,285 | 24,926,474 | |||||||||
Total deposits | 20,322,216 | 20,227,702 | 21,332,657 | |||||||||
Short-term borrowings | 250,000 | 250,000 | 500,000 | |||||||||
Total stockholders' equity | 2,617,486 | 2,648,034 | 2,486,066 | |||||||||
Per Share of Common Stock: | ||||||||||||
Book value | $ | 20.70 | $ | 20.71 | $ | 19.48 | ||||||
Tangible book value (non-GAAP)(2) | 12.83 | 12.92 | 11.68 | |||||||||
Asset Quality Ratios: | ||||||||||||
Non-accrual loans and leases / total loans and leases | 0.14 | % | 0.13 | % | 0.13 | % | ||||||
Allowance for credit losses for loans and leases / total loans and leases | 1.11 | % | 1.15 | % | 1.09 | % | ||||||
Capital Ratios: | ||||||||||||
Common Equity Tier 1 Capital Ratio | 12.80 | % | 13.03 | % | 12.39 | % | ||||||
Tier 1 Capital Ratio | 12.80 | % | 13.03 | % | 12.39 | % | ||||||
Total Capital Ratio | 13.99 | % | 14.25 | % | 13.57 | % | ||||||
Tier 1 Leverage Ratio | 9.14 | % | 9.14 | % | 8.64 | % | ||||||
Total stockholders' equity to total assets | 10.98 | % | 11.14 | % | 9.97 | % | ||||||
Tangible stockholders' equity to tangible assets (non-GAAP)(2) | 7.10 | % | 7.25 | % | 6.23 | % | ||||||
Non-Financial Data: | ||||||||||||
Number of branches | 48 | 48 | 50 | |||||||||
Number of ATMs | 273 | 273 | 275 | |||||||||
Number of Full-Time Equivalent Employees | 1,997 | 2,022 | 2,089 |
(1) Except for the efficiency ratio, amounts are annualized for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023.
(2) Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation.
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) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
Interest income | ||||||||||||||||||||
Loans and lease financing | $ | 198,347 | $ | 205,682 | $ | 196,276 | $ | 805,941 | $ | 748,053 | ||||||||||
Available-for-sale investment securities | 12,767 | 12,850 | 19,033 | 54,306 | 74,241 | |||||||||||||||
Held-to-maturity investment securities | 17,071 | 16,937 | 17,987 | 69,376 | 73,497 | |||||||||||||||
Other | 11,977 | 14,527 | 7,734 | 50,421 | 27,788 | |||||||||||||||
Total interest income | 240,162 | 249,996 | 241,030 | 980,044 | 923,579 | |||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 78,465 | 87,500 | 82,215 | 335,717 | 258,221 | |||||||||||||||
Short-term and long-term borrowings | 2,685 | 5,397 | 6,232 | 19,988 | 26,289 | |||||||||||||||
Other | 259 | 392 | 790 | 1,601 | 2,942 | |||||||||||||||
Total interest expense | 81,409 | 93,289 | 89,237 | 357,306 | 287,452 | |||||||||||||||
Net interest income | 158,753 | 156,707 | 151,793 | 622,738 | 636,127 | |||||||||||||||
(Benefit) provision for credit losses | (750 | ) | 7,400 | 5,330 | 14,750 | 26,630 | ||||||||||||||
Net interest income after (benefit) provision for credit losses | 159,503 | 149,307 | 146,463 | 607,988 | 609,497 | |||||||||||||||
Noninterest income | ||||||||||||||||||||
Service charges on deposit accounts | 7,968 | 7,783 | 7,646 | 31,090 | 29,647 | |||||||||||||||
Credit and debit card fees | 14,834 | 17,533 | 16,381 | 64,401 | 63,888 | |||||||||||||||
Other service charges and fees | 13,132 | 11,790 | 9,535 | 45,862 | 37,299 | |||||||||||||||
Trust and investment services income | 9,449 | 9,077 | 9,645 | 38,306 | 38,449 | |||||||||||||||
Bank-owned life insurance | 5,713 | 4,502 | 5,063 | 17,861 | 15,326 | |||||||||||||||
Investment securities (losses) gains, net | (26,171 | ) | — | 792 | (26,171 | ) | 792 | |||||||||||||
Other | 4,451 | 2,603 | 9,285 | 14,454 | 15,414 | |||||||||||||||
Total noninterest income | 29,376 | 53,288 | 58,347 | 185,803 | 200,815 | |||||||||||||||
Noninterest expense | ||||||||||||||||||||
Salaries and employee benefits | 59,003 | 59,563 | 55,882 | 235,565 | 225,755 | |||||||||||||||
Contracted services and professional fees | 14,472 | 14,634 | 16,219 | 60,912 | 66,423 | |||||||||||||||
Occupancy | 7,708 | 6,945 | 7,561 | 28,971 | 29,608 | |||||||||||||||
Equipment | 14,215 | 13,078 | 12,547 | 53,902 | 45,109 | |||||||||||||||
Regulatory assessment and fees | 3,745 | 3,412 | 20,412 | 19,091 | 32,073 | |||||||||||||||
Advertising and marketing | 1,529 | 1,813 | 1,441 | 7,719 | 7,615 | |||||||||||||||
Card rewards program | 7,926 | 8,678 | 7,503 | 33,831 | 31,627 | |||||||||||||||
Other | 15,545 | 18,024 | 20,742 | 61,198 | 62,928 | |||||||||||||||
Total noninterest expense | 124,143 | 126,147 | 142,307 | 501,189 | 501,138 | |||||||||||||||
Income before provision for income taxes | 64,736 | 76,448 | 62,503 | 292,602 | 309,174 | |||||||||||||||
Provision for income taxes | 12,240 | 14,956 | 15,001 | 62,473 | 74,191 | |||||||||||||||
Net income | $ | 52,496 | $ | 61,492 | $ | 47,502 | $ | 230,129 | $ | 234,983 | ||||||||||
Basic earnings per share | $ | 0.41 | $ | 0.48 | $ | 0.37 | $ | 1.80 | $ | 1.84 | ||||||||||
Diluted earnings per share | $ | 0.41 | $ | 0.48 | $ | 0.37 | $ | 1.79 | $ | 1.84 | ||||||||||
Basic weighted-average outstanding shares | 127,350,626 | 127,886,167 | 127,612,734 | 127,702,573 | 127,567,547 | |||||||||||||||
Diluted weighted-average outstanding shares | 128,167,502 | 128,504,035 | 128,028,964 | 128,325,865 | 127,915,873 |
Consolidated Balance Sheets | Table 3 | |||||||||||
December 31, | September 30, | December 31, | ||||||||||
(dollars in thousands, except share amount) | 2024 | 2024 | 2023 | |||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 258,057 | $ | 252,209 | $ | 185,015 | ||||||
Interest-bearing deposits in other banks | 912,133 | 820,603 | 1,554,882 | |||||||||
Investment securities: | ||||||||||||
Available-for-sale, at fair value (amortized cost: | 1,926,516 | 2,055,959 | 2,255,336 | |||||||||
Held-to-maturity, at amortized cost (fair value: | 3,790,650 | 3,853,697 | 4,041,449 | |||||||||
Loans held for sale | — | — | 190 | |||||||||
Loans and leases | 14,408,258 | 14,241,370 | 14,353,497 | |||||||||
Less: allowance for credit losses | 160,393 | 163,700 | 156,533 | |||||||||
Net loans and leases | 14,247,865 | 14,077,670 | 14,196,964 | |||||||||
Premises and equipment, net | 288,530 | 287,036 | 281,461 | |||||||||
Accrued interest receivable | 79,979 | 81,875 | 84,417 | |||||||||
Bank-owned life insurance | 491,890 | 490,135 | 479,907 | |||||||||
Goodwill | 995,492 | 995,492 | 995,492 | |||||||||
Mortgage servicing rights | 5,078 | 5,236 | 5,699 | |||||||||
Other assets | 831,996 | 860,373 | 845,662 | |||||||||
Total assets | $ | 23,828,186 | $ | 23,780,285 | $ | 24,926,474 | ||||||
Liabilities and Stockholders' Equity | ||||||||||||
Deposits: | ||||||||||||
Interest-bearing | $ | 13,347,068 | $ | 13,427,674 | $ | 13,749,095 | ||||||
Noninterest-bearing | 6,975,148 | 6,800,028 | 7,583,562 | |||||||||
Total deposits | 20,322,216 | 20,227,702 | 21,332,657 | |||||||||
Short-term borrowings | 250,000 | 250,000 | 500,000 | |||||||||
Retirement benefits payable | 97,135 | 100,448 | 103,285 | |||||||||
Other liabilities | 541,349 | 554,101 | 504,466 | |||||||||
Total liabilities | 21,210,700 | 21,132,251 | 22,440,408 | |||||||||
Stockholders' equity | ||||||||||||
Common stock ( | 1,417 | 1,417 | 1,413 | |||||||||
Additional paid-in capital | 2,560,380 | 2,558,158 | 2,548,250 | |||||||||
Retained earnings | 934,048 | 915,062 | 837,859 | |||||||||
Accumulated other comprehensive loss, net | (463,994 | ) | (452,658 | ) | (530,210 | ) | ||||||
Treasury stock (15,325,949 shares as of December 31, 2024, 13,849,434 shares as of September 30, 2024 and 13,721,778 shares as of December 31, 2023) | (414,365 | ) | (373,945 | ) | (371,246 | ) | ||||||
Total stockholders' equity | 2,617,486 | 2,648,034 | 2,486,066 | |||||||||
Total liabilities and stockholders' equity | $ | 23,828,186 | $ | 23,780,285 | $ | 24,926,474 |
Average Balances and Interest Rates | Table 4 | ||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||||||
December 31, 2024 | September 30, 2024 | December 31, 2023 | |||||||||||||||||||||||
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 | $ | 948.9 | $ | 11.3 | 4.75 | % | $ | 1,020.4 | $ | 13.9 | 5.40 | % | $ | 568.0 | $ | 7.8 | 5.39 | % | |||||||
Available-for-Sale Investment Securities | |||||||||||||||||||||||||
Taxable | 1,987.7 | 12.7 | 2.56 | 2,062.6 | 12.8 | 2.48 | 2,598.4 | 19.0 | 2.92 | ||||||||||||||||
Non-Taxable | 1.4 | — | 5.30 | 1.5 | — | 5.06 | 1.9 | — | 5.12 | ||||||||||||||||
Held-to-Maturity Investment Securities | |||||||||||||||||||||||||
Taxable | 3,224.8 | 13.9 | 1.72 | 3,288.2 | 13.8 | 1.67 | 3,472.1 | 14.8 | 1.70 | ||||||||||||||||
Non-Taxable | 601.7 | 3.9 | 2.56 | 602.3 | 3.7 | 2.46 | 603.9 | 3.9 | 2.58 | ||||||||||||||||
Total Investment Securities | 5,815.6 | 30.5 | 2.10 | 5,954.6 | 30.3 | 2.03 | 6,676.3 | 37.7 | 2.25 | ||||||||||||||||
Loans Held for Sale | 1.3 | — | 5.75 | 2.2 | — | 5.64 | 0.7 | — | 7.41 | ||||||||||||||||
Loans and Leases(1) | |||||||||||||||||||||||||
Commercial and industrial | 2,157.8 | 35.2 | 6.50 | 2,165.3 | 38.0 | 6.98 | 2,148.1 | 36.7 | 6.78 | ||||||||||||||||
Commercial real estate | 4,333.1 | 68.9 | 6.33 | 4,278.3 | 71.6 | 6.67 | 4,356.3 | 71.4 | 6.51 | ||||||||||||||||
Construction | 990.7 | 17.4 | 6.99 | 1,040.7 | 20.3 | 7.74 | 888.7 | 16.7 | 7.45 | ||||||||||||||||
Residential: | |||||||||||||||||||||||||
Residential mortgage | 4,183.5 | 40.8 | 3.90 | 4,204.5 | 40.4 | 3.84 | 4,294.8 | 38.8 | 3.61 | ||||||||||||||||
Home equity line | 1,157.1 | 13.3 | 4.55 | 1,158.5 | 13.2 | 4.52 | 1,174.8 | 11.3 | 3.83 | ||||||||||||||||
Consumer | 1,033.2 | 19.0 | 7.29 | 1,035.3 | 18.7 | 7.19 | 1,132.4 | 18.4 | 6.43 | ||||||||||||||||
Lease financing | 420.7 | 4.4 | 4.18 | 422.2 | 4.0 | 3.72 | 354.2 | 3.6 | 4.03 | ||||||||||||||||
Total Loans and Leases | 14,276.1 | 199.0 | 5.55 | 14,304.8 | 206.2 | 5.74 | 14,349.3 | 196.9 | 5.45 | ||||||||||||||||
Other Earning Assets | 38.1 | 0.7 | 6.73 | 46.9 | 0.7 | 5.83 | 94.5 | — | 0.06 | ||||||||||||||||
Total Earning Assets(2) | 21,080.0 | 241.5 | 4.56 | 21,328.9 | 251.1 | 4.69 | 21,688.8 | 242.4 | 4.44 | ||||||||||||||||
Cash and Due from Banks | 226.2 | 242.3 | 240.8 | ||||||||||||||||||||||
Other Assets | 2,489.5 | 2,475.5 | 2,475.1 | ||||||||||||||||||||||
Total Assets | $ | 23,795.7 | $ | 24,046.7 | $ | 24,404.7 | |||||||||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||||||||
Interest-Bearing Deposits | |||||||||||||||||||||||||
Savings | $ | 5,940.3 | $ | 21.1 | 1.42 | % | $ | 5,963.1 | $ | 23.6 | 1.57 | % | $ | 6,067.2 | $ | 22.4 | 1.46 | % | |||||||
Money Market | 4,053.6 | 26.6 | 2.61 | 4,179.5 | 31.9 | 3.04 | 3,905.0 | 27.5 | 2.79 | ||||||||||||||||
Time | 3,362.0 | 30.8 | 3.64 | 3,327.3 | 32.0 | 3.83 | 3,390.7 | 32.3 | 3.78 | ||||||||||||||||
Total Interest-Bearing Deposits | 13,355.9 | 78.5 | 2.34 | 13,469.9 | 87.5 | 2.58 | 13,362.9 | 82.2 | 2.44 | ||||||||||||||||
Other Short-Term Borrowings | 250.0 | 2.7 | 4.27 | 451.1 | 5.4 | 4.76 | 515.2 | 6.2 | 4.80 | ||||||||||||||||
Other Interest-Bearing Liabilities | 25.3 | 0.2 | 4.07 | 22.4 | 0.4 | 6.97 | 42.1 | 0.8 | 7.44 | ||||||||||||||||
Total Interest-Bearing Liabilities | 13,631.2 | 81.4 | 2.38 | 13,943.4 | 93.3 | 2.66 | 13,920.2 | 89.2 | 2.54 | ||||||||||||||||
Net Interest Income | $ | 160.1 | $ | 157.8 | $ | 153.2 | |||||||||||||||||||
Interest Rate Spread(3) | 2.18 | % | 2.03 | % | 1.90 | % | |||||||||||||||||||
Net Interest Margin(4) | 3.03 | % | 2.95 | % | 2.81 | % | |||||||||||||||||||
Noninterest-Bearing Demand Deposits | 6,893.7 | 6,897.9 | 7,545.3 | ||||||||||||||||||||||
Other Liabilities | 641.2 | 616.6 | 564.5 | ||||||||||||||||||||||
Stockholders' Equity | 2,629.6 | 2,588.8 | 2,374.7 | ||||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 23,795.7 | $ | 24,046.7 | $ | 24,404.7 |
(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
(3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.
(4) Net interest margin is net interest income annualized for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, on a fully taxable-equivalent basis, divided by average total earning assets.
Average Balances and Interest Rates | Table 5 | ||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||
December 31, 2024 | December 31, 2023 | ||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||
(dollars in millions) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||
Earning Assets | |||||||||||||||||||||
Interest-Bearing Deposits in Other Banks | $ | 900.8 | $ | 47.3 | 5.25 | % | $ | 512.3 | $ | 26.5 | 5.18 | % | |||||||||
Available-for-Sale Investment Securities | |||||||||||||||||||||
Taxable | 2,090.0 | 54.2 | 2.60 | 2,871.8 | 73.8 | 2.57 | |||||||||||||||
Non-Taxable | 1.5 | 0.1 | 5.45 | 10.2 | 0.6 | 5.55 | |||||||||||||||
Held-to-Maturity Investment Securities | |||||||||||||||||||||
Taxable | 3,321.6 | 56.6 | 1.70 | 3,579.0 | 60.7 | 1.70 | |||||||||||||||
Non-Taxable | 602.6 | 15.6 | 2.58 | 607.7 | 15.9 | 2.61 | |||||||||||||||
Total Investment Securities | 6,015.7 | 126.5 | 2.10 | 7,068.7 | 151.0 | 2.14 | |||||||||||||||
Loans Held for Sale | 1.3 | 0.1 | 6.02 | 0.4 | — | 6.63 | |||||||||||||||
Loans and Leases(1) | |||||||||||||||||||||
Commercial and industrial | 2,172.4 | 148.6 | 6.84 | 2,182.3 | 141.0 | 6.46 | |||||||||||||||
Commercial real estate | 4,310.1 | 282.3 | 6.55 | 4,257.9 | 266.0 | 6.25 | |||||||||||||||
Construction | 985.4 | 73.5 | 7.46 | 877.7 | 62.1 | 7.08 | |||||||||||||||
Residential: | |||||||||||||||||||||
Residential mortgage | 4,220.2 | 163.4 | 3.87 | 4,308.0 | 156.4 | 3.63 | |||||||||||||||
Home equity line | 1,162.9 | 51.0 | 4.39 | 1,131.1 | 39.3 | 3.47 | |||||||||||||||
Consumer | 1,051.5 | 73.4 | 6.98 | 1,178.6 | 71.5 | 6.07 | |||||||||||||||
Lease financing | 410.3 | 16.3 | 3.98 | 330.7 | 14.1 | 4.26 | |||||||||||||||
Total Loans and Leases | 14,312.8 | 808.5 | 5.65 | 14,266.3 | 750.4 | 5.26 | |||||||||||||||
Other Earning Assets | 53.6 | 3.1 | 5.88 | 104.3 | 1.3 | 1.20 | |||||||||||||||
Total Earning Assets(2) | 21,284.2 | 985.5 | 4.63 | 21,952.0 | 929.2 | 4.23 | |||||||||||||||
Cash and Due from Banks | 238.3 | 265.1 | |||||||||||||||||||
Other Assets | 2,474.2 | 2,408.3 | |||||||||||||||||||
Total Assets | $ | 23,996.7 | $ | 24,625.4 | |||||||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||||
Interest-Bearing Deposits | |||||||||||||||||||||
Savings | $ | 5,990.7 | $ | 91.6 | 1.53 | % | $ | 6,124.7 | $ | 71.5 | 1.17 | % | |||||||||
Money Market | 4,064.0 | 117.8 | 2.90 | 3,869.1 | 86.1 | 2.22 | |||||||||||||||
Time | 3,324.8 | 126.3 | 3.80 | 3,040.0 | 100.6 | 3.31 | |||||||||||||||
Total Interest-Bearing Deposits | 13,379.5 | 335.7 | 2.51 | 13,033.8 | 258.2 | 1.98 | |||||||||||||||
Federal Funds Purchased | — | — | — | 17.2 | 0.8 | 4.45 | |||||||||||||||
Other Short-Term Borrowings | 424.9 | 20.0 | 4.70 | 261.9 | 13.0 | 4.98 | |||||||||||||||
Long-Term Borrowings | — | — | — | 261.6 | 12.5 | 4.78 | |||||||||||||||
Other Interest-Bearing Liabilities | 29.6 | 1.6 | 5.39 | 57.1 | 3.0 | 5.15 | |||||||||||||||
Total Interest-Bearing Liabilities | 13,834.0 | 357.3 | 2.58 | 13,631.6 | 287.5 | 2.11 | |||||||||||||||
Net Interest Income | $ | 628.2 | $ | 641.7 | |||||||||||||||||
Interest Rate Spread(3) | 2.05 | % | 2.12 | % | |||||||||||||||||
Net Interest Margin(4) | 2.95 | % | 2.92 | % | |||||||||||||||||
Noninterest-Bearing Demand Deposits | 6,994.5 | 8,126.4 | |||||||||||||||||||
Other Liabilities | 611.0 | 520.7 | |||||||||||||||||||
Stockholders' Equity | 2,557.2 | 2,346.7 | |||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 23,996.7 | $ | 24,625.4 |
(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
(3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.
(4) Net interest margin is net interest income annualized for the years ended December 31, 2024 and 2023, on a fully taxable-equivalent basis, divided by average total earning assets.
Analysis of Change in Net Interest Income | Table 6 | |||||||||||
Three Months Ended December 31, 2024 | ||||||||||||
Compared to September 30, 2024 | ||||||||||||
(dollars in millions) | Volume | Rate | Total (1) | |||||||||
Change in Interest Income: | ||||||||||||
Interest-Bearing Deposits in Other Banks | $ | (1.0 | ) | $ | (1.6 | ) | $ | (2.6 | ) | |||
Available-for-Sale Investment Securities | ||||||||||||
Taxable | (0.5 | ) | 0.4 | (0.1 | ) | |||||||
Held-to-Maturity Investment Securities | ||||||||||||
Taxable | (0.3 | ) | 0.4 | 0.1 | ||||||||
Non-Taxable | — | 0.2 | 0.2 | |||||||||
Total Investment Securities | (0.8 | ) | 1.0 | 0.2 | ||||||||
Loans and Leases | ||||||||||||
Commercial and industrial | (0.1 | ) | (2.7 | ) | (2.8 | ) | ||||||
Commercial real estate | 0.9 | (3.6 | ) | (2.7 | ) | |||||||
Construction | (1.0 | ) | (1.9 | ) | (2.9 | ) | ||||||
Residential: | ||||||||||||
Residential mortgage | (0.2 | ) | 0.6 | 0.4 | ||||||||
Home equity line | — | 0.1 | 0.1 | |||||||||
Consumer | — | 0.3 | 0.3 | |||||||||
Lease financing | — | 0.4 | 0.4 | |||||||||
Total Loans and Leases | (0.4 | ) | (6.8 | ) | (7.2 | ) | ||||||
Other Earning Assets | (0.1 | ) | 0.1 | — | ||||||||
Total Change in Interest Income | (2.3 | ) | (7.3 | ) | (9.6 | ) | ||||||
Change in Interest Expense: | ||||||||||||
Interest-Bearing Deposits | ||||||||||||
Savings | (0.1 | ) | (2.4 | ) | (2.5 | ) | ||||||
Money Market | (0.9 | ) | (4.4 | ) | (5.3 | ) | ||||||
Time | 0.3 | (1.5 | ) | (1.2 | ) | |||||||
Total Interest-Bearing Deposits | (0.7 | ) | (8.3 | ) | (9.0 | ) | ||||||
Other Short-Term Borrowings | (2.2 | ) | (0.5 | ) | (2.7 | ) | ||||||
Other Interest-Bearing Liabilities | — | (0.2 | ) | (0.2 | ) | |||||||
Total Change in Interest Expense | (2.9 | ) | (9.0 | ) | (11.9 | ) | ||||||
Change in Net Interest Income | $ | 0.6 | $ | 1.7 | $ | 2.3 |
(1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
Analysis of Change in Net Interest Income | Table 7 | |||||||||||
Three Months Ended December 31, 2024 | ||||||||||||
Compared to December 31, 2023 | ||||||||||||
(dollars in millions) | Volume | Rate | Total (1) | |||||||||
Change in Interest Income: | ||||||||||||
Interest-Bearing Deposits in Other Banks | $ | 4.6 | $ | (1.1 | ) | $ | 3.5 | |||||
Available-for-Sale Investment Securities | ||||||||||||
Taxable | (4.1 | ) | (2.2 | ) | (6.3 | ) | ||||||
Held-to-Maturity Investment Securities | ||||||||||||
Taxable | (1.1 | ) | 0.2 | (0.9 | ) | |||||||
Total Investment Securities | (5.2 | ) | (2.0 | ) | (7.2 | ) | ||||||
Loans and Leases | ||||||||||||
Commercial and industrial | 0.1 | (1.6 | ) | (1.5 | ) | |||||||
Commercial real estate | (0.4 | ) | (2.1 | ) | (2.5 | ) | ||||||
Construction | 1.8 | (1.1 | ) | 0.7 | ||||||||
Residential: | ||||||||||||
Residential mortgage | (1.0 | ) | 3.0 | 2.0 | ||||||||
Home equity line | (0.1 | ) | 2.1 | 2.0 | ||||||||
Consumer | (1.7 | ) | 2.3 | 0.6 | ||||||||
Lease financing | 0.7 | 0.1 | 0.8 | |||||||||
Total Loans and Leases | (0.6 | ) | 2.7 | 2.1 | ||||||||
Other Earning Assets | — | 0.7 | 0.7 | |||||||||
Total Change in Interest Income | (1.2 | ) | 0.3 | (0.9 | ) | |||||||
Change in Interest Expense: | ||||||||||||
Interest-Bearing Deposits | ||||||||||||
Savings | (0.6 | ) | (0.7 | ) | (1.3 | ) | ||||||
Money Market | 1.0 | (1.9 | ) | (0.9 | ) | |||||||
Time | (0.2 | ) | (1.3 | ) | (1.5 | ) | ||||||
Total Interest-Bearing Deposits | 0.2 | (3.9 | ) | (3.7 | ) | |||||||
Other Short-Term Borrowings | (2.9 | ) | (0.6 | ) | (3.5 | ) | ||||||
Other Interest-Bearing Liabilities | (0.3 | ) | (0.3 | ) | (0.6 | ) | ||||||
Total Change in Interest Expense | (3.0 | ) | (4.8 | ) | (7.8 | ) | ||||||
Change in Net Interest Income | $ | 1.8 | $ | 5.1 | $ | 6.9 |
(1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
Analysis of Change in Net Interest Income | Table 8 | |||||||||||
Year Ended December 31, 2024 | ||||||||||||
Compared to December 31, 2023 | ||||||||||||
(dollars in millions) | Volume | Rate | Total (1) | |||||||||
Change in Interest Income: | ||||||||||||
Interest-Bearing Deposits in Other Banks | $ | 20.4 | $ | 0.4 | $ | 20.8 | ||||||
Available-for-Sale Investment Securities | ||||||||||||
Taxable | (20.4 | ) | 0.8 | (19.6 | ) | |||||||
Non-Taxable | (0.5 | ) | — | (0.5 | ) | |||||||
Held-to-Maturity Investment Securities | ||||||||||||
Taxable | (4.1 | ) | — | (4.1 | ) | |||||||
Non-Taxable | (0.1 | ) | (0.2 | ) | (0.3 | ) | ||||||
Total Investment Securities | (25.1 | ) | 0.6 | (24.5 | ) | |||||||
Loans Held for Sale | 0.1 | — | 0.1 | |||||||||
Loans and Leases | ||||||||||||
Commercial and industrial | (0.7 | ) | 8.3 | 7.6 | ||||||||
Commercial real estate | 3.3 | 13.0 | 16.3 | |||||||||
Construction | 7.9 | 3.5 | 11.4 | |||||||||
Residential: | ||||||||||||
Residential mortgage | (3.2 | ) | 10.2 | 7.0 | ||||||||
Home equity line | 1.1 | 10.6 | 11.7 | |||||||||
Consumer | (8.2 | ) | 10.1 | 1.9 | ||||||||
Lease financing | 3.2 | (1.0 | ) | 2.2 | ||||||||
Total Loans and Leases | 3.4 | 54.7 | 58.1 | |||||||||
Other Earning Assets | (0.9 | ) | 2.7 | 1.8 | ||||||||
Total Change in Interest Income | (2.1 | ) | 58.4 | 56.3 | ||||||||
Change in Interest Expense: | ||||||||||||
Interest-Bearing Deposits | ||||||||||||
Savings | (1.6 | ) | 21.7 | 20.1 | ||||||||
Money Market | 4.5 | 27.2 | 31.7 | |||||||||
Time | 10.0 | 15.7 | 25.7 | |||||||||
Total Interest-Bearing Deposits | 12.9 | 64.6 | 77.5 | |||||||||
Federal Funds Purchased | (0.4 | ) | (0.4 | ) | (0.8 | ) | ||||||
Other Short-Term Borrowings | 7.7 | (0.7 | ) | 7.0 | ||||||||
Long-Term Borrowings | (6.3 | ) | (6.2 | ) | (12.5 | ) | ||||||
Other Interest-Bearing Liabilities | (1.5 | ) | 0.1 | (1.4 | ) | |||||||
Total Change in Interest Expense | 12.4 | 57.4 | 69.8 | |||||||||
Change in Net Interest Income | $ | (14.5 | ) | $ | 1.0 | $ | (13.5 | ) |
(1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
Loans and Leases | Table 9 | |||||||||||
December 31, | September 30, | December 31, | ||||||||||
(dollars in thousands) | 2024 | 2024 | 2023 | |||||||||
Commercial and industrial | $ | 2,247,428 | $ | 2,110,077 | $ | 2,165,349 | ||||||
Commercial real estate | 4,463,992 | 4,265,289 | 4,340,243 | |||||||||
Construction | 918,326 | 1,056,249 | 900,292 | |||||||||
Residential: | ||||||||||||
Residential mortgage | 4,168,154 | 4,187,060 | 4,283,315 | |||||||||
Home equity line | 1,151,739 | 1,159,823 | 1,174,588 | |||||||||
Total residential | 5,319,893 | 5,346,883 | 5,457,903 | |||||||||
Consumer | 1,023,969 | 1,030,044 | 1,109,901 | |||||||||
Lease financing | 434,650 | 432,828 | 379,809 | |||||||||
Total loans and leases | $ | 14,408,258 | $ | 14,241,370 | $ | 14,353,497 |
Deposits | Table 10 | |||||||||||
December 31, | September 30, | December 31, | ||||||||||
(dollars in thousands) | 2024 | 2024 | 2023 | |||||||||
Demand | $ | 6,975,148 | $ | 6,800,028 | $ | 7,583,562 | ||||||
Savings | 6,021,364 | 5,896,029 | 6,445,084 | |||||||||
Money Market | 4,027,334 | 4,129,381 | 3,847,853 | |||||||||
Time | 3,298,370 | 3,402,264 | 3,456,158 | |||||||||
Total Deposits | $ | 20,322,216 | $ | 20,227,702 | $ | 21,332,657 |
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) | 2024 | 2024 | 2023 | |||||||||
Non-Performing Assets | ||||||||||||
Non-Accrual Loans and Leases | ||||||||||||
Commercial Loans: | ||||||||||||
Commercial and industrial | $ | 329 | $ | 934 | $ | 970 | ||||||
Commercial real estate | 411 | 152 | 2,953 | |||||||||
Total Commercial Loans | 740 | 1,086 | 3,923 | |||||||||
Residential Loans: | ||||||||||||
Residential mortgage | 12,768 | 9,103 | 7,620 | |||||||||
Home equity line | 7,171 | 7,645 | 7,052 | |||||||||
Total Residential Loans | 19,939 | 16,748 | 14,672 | |||||||||
Total Non-Accrual Loans and Leases | 20,679 | 17,834 | 18,595 | |||||||||
Total Non-Performing Assets | $ | 20,679 | $ | 17,834 | $ | 18,595 | ||||||
Accruing Loans and Leases Past Due 90 Days or More | ||||||||||||
Commercial Loans: | ||||||||||||
Commercial and industrial | $ | 1,432 | $ | 529 | $ | 494 | ||||||
Commercial real estate | — | 568 | 300 | |||||||||
Construction | 536 | — | — | |||||||||
Total Commercial Loans | 1,968 | 1,097 | 794 | |||||||||
Residential mortgage | 1,317 | 931 | — | |||||||||
Consumer | 2,734 | 2,515 | 2,702 | |||||||||
Total Accruing Loans and Leases Past Due 90 Days or More | $ | 6,019 | $ | 4,543 | $ | 3,496 | ||||||
Total Loans and Leases | $ | 14,408,258 | $ | 14,241,370 | $ | 14,353,497 |
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) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
Balance at Beginning of Period | $ | 197,397 | $ | 193,930 | $ | 192,570 | $ | 192,138 | $ | 177,735 | ||||||||||
Loans and Leases Charged-Off | ||||||||||||||||||||
Commercial Loans: | ||||||||||||||||||||
Commercial and industrial | (851 | ) | (1,178 | ) | (910 | ) | (3,615 | ) | (3,482 | ) | ||||||||||
Commercial real estate | — | (400 | ) | (2,500 | ) | (400 | ) | (2,500 | ) | |||||||||||
Total Commercial Loans | (851 | ) | (1,578 | ) | (3,410 | ) | (4,015 | ) | (5,982 | ) | ||||||||||
Residential Loans: | ||||||||||||||||||||
Residential mortgage | — | — | — | — | (122 | ) | ||||||||||||||
Home equity line | — | — | (20 | ) | — | (292 | ) | |||||||||||||
Total Residential Loans | — | — | (20 | ) | — | (414 | ) | |||||||||||||
Consumer | (4,774 | ) | (4,192 | ) | (4,147 | ) | (18,002 | ) | (17,110 | ) | ||||||||||
Total Loans and Leases Charged-Off | (5,625 | ) | (5,770 | ) | (7,577 | ) | (22,017 | ) | (23,506 | ) | ||||||||||
Recoveries on Loans and Leases Previously Charged-Off | ||||||||||||||||||||
Commercial and industrial | 298 | 160 | 171 | 919 | 3,346 | |||||||||||||||
Residential Loans: | ||||||||||||||||||||
Residential mortgage | 30 | 31 | 31 | 119 | 141 | |||||||||||||||
Home equity line | 32 | 86 | 163 | 274 | 702 | |||||||||||||||
Total Residential Loans | 62 | 117 | 194 | 393 | 843 | |||||||||||||||
Consumer | 1,858 | 1,560 | 1,450 | 7,057 | 7,090 | |||||||||||||||
Total Recoveries on Loans and Leases Previously Charged-Off | 2,218 | 1,837 | 1,815 | 8,369 | 11,279 | |||||||||||||||
Net Loans and Leases Charged-Off | (3,407 | ) | (3,933 | ) | (5,762 | ) | (13,648 | ) | (12,227 | ) | ||||||||||
(Benefit) Provision for Credit Losses | (750 | ) | 7,400 | 5,330 | 14,750 | 26,630 | ||||||||||||||
Balance at End of Period | $ | 193,240 | $ | 197,397 | $ | 192,138 | $ | 193,240 | $ | 192,138 | ||||||||||
Components: | ||||||||||||||||||||
Allowance for Credit Losses | $ | 160,393 | $ | 163,700 | $ | 156,533 | $ | 160,393 | $ | 156,533 | ||||||||||
Reserve for Unfunded Commitments | 32,847 | 33,697 | 35,605 | 32,847 | 35,605 | |||||||||||||||
Total Allowance for Credit Losses and Reserve for Unfunded Commitments | $ | 193,240 | $ | 197,397 | $ | 192,138 | $ | 193,240 | $ | 192,138 | ||||||||||
Average Loans and Leases Outstanding | $ | 14,276,107 | $ | 14,304,806 | $ | 14,349,322 | $ | 14,312,759 | $ | 14,266,291 | ||||||||||
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1) | 0.09 | % | 0.11 | % | 0.16 | % | 0.10 | % | 0.09 | % | ||||||||||
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding | 1.11 | % | 1.15 | % | 1.09 | % | 1.11 | % | 1.09 | % | ||||||||||
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases | 7.76x | 9.18x | 8.42x | 7.76x | 8.42x |
(1) Annualized for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023.
Loans and Leases by Year of Origination and Credit Quality Indicator | Table 13 | ||||||||||||||||||||||||||
Revolving | |||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||
Converted | |||||||||||||||||||||||||||
Term Loans | Revolving | to Term | |||||||||||||||||||||||||
Amortized Cost Basis by Origination Year | Loans | Loans | |||||||||||||||||||||||||
Amortized | Amortized | ||||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Cost Basis | Cost Basis | Total | ||||||||||||||||||
Commercial Lending | |||||||||||||||||||||||||||
Commercial and Industrial | |||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||
Pass | $ | 163,980 | $ | 73,554 | $ | 185,433 | $ | 249,532 | $ | 17,775 | $ | 256,119 | $ | 1,118,075 | $ | 14,336 | $ | 2,078,804 | |||||||||
Special Mention | 808 | 2,385 | 1,209 | 68 | 300 | 1,322 | 41,520 | — | 47,612 | ||||||||||||||||||
Substandard | — | — | 8,096 | 196 | 309 | 1,114 | 26,089 | — | 35,804 | ||||||||||||||||||
Other (1) | 17,132 | 8,928 | 6,937 | 2,797 | 765 | 1,279 | 47,370 | — | 85,208 | ||||||||||||||||||
Total Commercial and Industrial | 181,920 | 84,867 | 201,675 | 252,593 | 19,149 | 259,834 | 1,233,054 | 14,336 | 2,247,428 | ||||||||||||||||||
Current period gross charge-offs | — | 578 | 335 | 105 | 221 | 2,376 | — | — | 3,615 | ||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||
Pass | 322,405 | 369,948 | 832,005 | 634,722 | 308,156 | 1,720,243 | 116,682 | 7,703 | 4,311,864 | ||||||||||||||||||
Special Mention | 9,014 | 2,252 | 7,510 | 41,399 | 3,265 | 10,860 | 11,861 | — | 86,161 | ||||||||||||||||||
Substandard | — | — | 54,952 | 1,002 | — | 9,732 | 148 | — | 65,834 | ||||||||||||||||||
Other (1) | — | — | — | — | — | 133 | — | — | 133 | ||||||||||||||||||
Total Commercial Real Estate | 331,419 | 372,200 | 894,467 | 677,123 | 311,421 | 1,740,968 | 128,691 | 7,703 | 4,463,992 | ||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | 400 | — | — | 400 | ||||||||||||||||||
Construction | |||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||
Pass | 91,583 | 198,382 | 332,000 | 186,682 | 41,596 | 13,824 | 14,972 | — | 879,039 | ||||||||||||||||||
Special Mention | — | — | — | — | — | 155 | — | — | 155 | ||||||||||||||||||
Other (1) | 12,482 | 9,688 | 10,861 | 1,561 | 1,199 | 2,644 | 697 | — | 39,132 | ||||||||||||||||||
Total Construction | 104,065 | 208,070 | 342,861 | 188,243 | 42,795 | 16,623 | 15,669 | — | 918,326 | ||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Lease Financing | |||||||||||||||||||||||||||
Risk rating: | |||||||||||||||||||||||||||
Pass | 149,615 | 101,684 | 60,898 | 14,328 | 17,703 | 84,663 | — | — | 428,891 | ||||||||||||||||||
Special Mention | — | — | — | 220 | — | — | — | — | 220 | ||||||||||||||||||
Substandard | 4,657 | 565 | 317 | — | — | — | — | — | 5,539 | ||||||||||||||||||
Total Lease Financing | 154,272 | 102,249 | 61,215 | 14,548 | 17,703 | 84,663 | — | — | 434,650 | ||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total Commercial Lending | $ | 771,676 | $ | 767,386 | $ | 1,500,218 | $ | 1,132,507 | $ | 391,068 | $ | 2,102,088 | $ | 1,377,414 | $ | 22,039 | $ | 8,064,396 | |||||||||
Current period gross charge-offs | $ | — | $ | 578 | $ | 335 | $ | 105 | $ | 221 | $ | 2,776 | $ | — | $ | — | $ | 4,015 |
Revolving | |||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||
Converted | |||||||||||||||||||||||||||
Term Loans | Revolving | to Term | |||||||||||||||||||||||||
Amortized Cost Basis by Origination Year | Loans | Loans | |||||||||||||||||||||||||
(continued) | Amortized | Amortized | |||||||||||||||||||||||||
(dollars in thousands) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Cost Basis | Cost Basis | Total | ||||||||||||||||||
Residential Lending | |||||||||||||||||||||||||||
Residential Mortgage | |||||||||||||||||||||||||||
FICO: | |||||||||||||||||||||||||||
740 and greater | $ | 168,067 | $ | 187,710 | $ | 492,845 | $ | 946,390 | $ | 498,443 | $ | 1,115,557 | $ | — | $ | — | $ | 3,409,012 | |||||||||
680 - 739 | 18,368 | 34,901 | 65,735 | 103,622 | 57,369 | 138,469 | — | — | 418,464 | ||||||||||||||||||
620 - 679 | 1,726 | 4,380 | 23,556 | 19,355 | 14,058 | 40,471 | — | — | 103,546 | ||||||||||||||||||
550 - 619 | — | 820 | 6,526 | 7,745 | 4,042 | 13,783 | — | — | 32,916 | ||||||||||||||||||
Less than 550 | — | 734 | 775 | 2,264 | 1,559 | 6,342 | — | — | 11,674 | ||||||||||||||||||
No Score (3) | 13,211 | 6,719 | 16,839 | 9,916 | 5,518 | 45,604 | — | — | 97,807 | ||||||||||||||||||
Other (2) | 9,456 | 12,404 | 16,564 | 14,311 | 10,769 | 28,812 | 2,419 | — | 94,735 | ||||||||||||||||||
Total Residential Mortgage | 210,828 | 247,668 | 622,840 | 1,103,603 | 591,758 | 1,389,038 | 2,419 | — | 4,168,154 | ||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Home Equity Line | |||||||||||||||||||||||||||
FICO: | |||||||||||||||||||||||||||
740 and greater | — | — | — | — | — | — | 925,749 | 1,652 | 927,401 | ||||||||||||||||||
680 - 739 | — | — | — | — | — | — | 161,523 | 1,030 | 162,553 | ||||||||||||||||||
620 - 679 | — | — | — | — | — | — | 39,235 | 1,220 | 40,455 | ||||||||||||||||||
550 - 619 | — | — | — | — | — | — | 13,006 | 416 | 13,422 | ||||||||||||||||||
Less than 550 | — | — | — | — | — | — | 5,993 | 563 | 6,556 | ||||||||||||||||||
No Score (3) | — | — | — | — | — | — | 1,352 | — | 1,352 | ||||||||||||||||||
Total Home Equity Line | — | — | — | — | — | — | 1,146,858 | 4,881 | 1,151,739 | ||||||||||||||||||
Current period gross charge-offs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total Residential Lending | $ | 210,828 | $ | 247,668 | $ | 622,840 | $ | 1,103,603 | $ | 591,758 | $ | 1,389,038 | $ | 1,149,277 | $ | 4,881 | $ | 5,319,893 | |||||||||
Current period gross charge-offs | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Consumer Lending | |||||||||||||||||||||||||||
FICO: | |||||||||||||||||||||||||||
740 and greater | 92,329 | 65,738 | 84,007 | 44,192 | 14,607 | 6,897 | 101,938 | 106 | 409,814 | ||||||||||||||||||
680 - 739 | 68,371 | 46,533 | 44,504 | 21,829 | 7,652 | 5,278 | 86,935 | 509 | 281,611 | ||||||||||||||||||
620 - 679 | 30,618 | 17,728 | 19,942 | 10,252 | 4,195 | 4,152 | 50,544 | 775 | 138,206 | ||||||||||||||||||
550 - 619 | 6,108 | 6,768 | 9,312 | 5,702 | 2,574 | 3,106 | 15,641 | 778 | 49,989 | ||||||||||||||||||
Less than 550 | 2,012 | 3,950 | 5,572 | 3,594 | 1,591 | 1,830 | 5,311 | 593 | 24,453 | ||||||||||||||||||
No Score (3) | 1,881 | 106 | 38 | — | 7 | 9 | 38,932 | 176 | 41,149 | ||||||||||||||||||
Other (2) | — | — | 277 | 887 | 99 | 956 | 76,528 | — | 78,747 | ||||||||||||||||||
Total Consumer Lending | $ | 201,319 | $ | 140,823 | $ | 163,652 | $ | 86,456 | $ | 30,725 | $ | 22,228 | $ | 375,829 | $ | 2,937 | $ | 1,023,969 | |||||||||
Current period gross charge-offs | $ | 732 | $ | 2,055 | $ | 2,606 | $ | 1,388 | $ | 676 | $ | 2,685 | $ | 7,168 | $ | 692 | $ | 18,002 | |||||||||
Total Loans and Leases | $ | 1,183,823 | $ | 1,155,877 | $ | 2,286,710 | $ | 2,322,566 | $ | 1,013,551 | $ | 3,513,354 | $ | 2,902,520 | $ | 29,857 | $ | 14,408,258 | |||||||||
Current period gross charge-offs | $ | 732 | $ | 2,633 | $ | 2,941 | $ | 1,493 | $ | 897 | $ | 5,461 | $ | 7,168 | $ | 692 | $ | 22,017 |
(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 (680 and above). As of December 31, 2024, the majority of the loans in this population were current.
(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. As of December 31, 2024, the majority of the loans in this population were current.
(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) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
Income Statement Data: | ||||||||||||||||||||
Net income | $ | 52,496 | $ | 61,492 | $ | 47,502 | $ | 230,129 | $ | 234,983 | ||||||||||
Average total stockholders' equity | $ | 2,629,600 | $ | 2,588,806 | $ | 2,374,669 | $ | 2,557,215 | $ | 2,346,713 | ||||||||||
Less: average goodwill | 995,492 | 995,492 | 995,492 | 995,492 | 995,492 | |||||||||||||||
Average tangible stockholders' equity | $ | 1,634,108 | $ | 1,593,314 | $ | 1,379,177 | $ | 1,561,723 | $ | 1,351,221 | ||||||||||
Average total assets | $ | 23,795,735 | $ | 24,046,696 | $ | 24,404,727 | $ | 23,996,723 | $ | 24,625,445 | ||||||||||
Less: average goodwill | 995,492 | 995,492 | 995,492 | 995,492 | 995,492 | |||||||||||||||
Average tangible assets | $ | 22,800,243 | $ | 23,051,204 | $ | 23,409,235 | $ | 23,001,231 | $ | 23,629,953 | ||||||||||
Return on average total stockholders' equity(1) | 7.94 | % | 9.45 | % | 7.94 | % | 9.00 | % | 10.01 | % | ||||||||||
Return on average tangible stockholders' equity (non-GAAP)(1) | 12.78 | % | 15.35 | % | 13.66 | % | 14.74 | % | 17.39 | % | ||||||||||
Return on average total assets(1) | 0.88 | % | 1.02 | % | 0.77 | % | 0.96 | % | 0.95 | % | ||||||||||
Return on average tangible assets (non-GAAP)(1) | 0.92 | % | 1.06 | % | 0.81 | % | 1.00 | % | 0.99 | % |
As of | As of | As of | ||||||||||
December 31, | September 30, | December 31, | ||||||||||
(dollars in thousands, except per share amounts) | 2024 | 2024 | 2023 | |||||||||
Balance Sheet Data: | ||||||||||||
Total stockholders' equity | $ | 2,617,486 | $ | 2,648,034 | $ | 2,486,066 | ||||||
Less: goodwill | 995,492 | 995,492 | 995,492 | |||||||||
Tangible stockholders' equity | $ | 1,621,994 | $ | 1,652,542 | $ | 1,490,574 | ||||||
Total assets | $ | 23,828,186 | $ | 23,780,285 | $ | 24,926,474 | ||||||
Less: goodwill | 995,492 | 995,492 | 995,492 | |||||||||
Tangible assets | $ | 22,832,694 | $ | 22,784,793 | $ | 23,930,982 | ||||||
Shares outstanding | 126,422,898 | 127,886,167 | 127,618,761 | |||||||||
Total stockholders' equity to total assets | 10.98 | % | 11.14 | % | 9.97 | % | ||||||
Tangible stockholders' equity to tangible assets (non-GAAP) | 7.10 | % | 7.25 | % | 6.23 | % | ||||||
Book value per share | $ | 20.70 | $ | 20.71 | $ | 19.48 | ||||||
Tangible book value per share (non-GAAP) | $ | 12.83 | $ | 12.92 | $ | 11.68 |
(1) Annualized for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023.
FAQ
What was First Hawaiian's (FHB) net income for Q4 2024?
How much is First Hawaiian's (FHB) quarterly dividend for Q4 2024?
What is the size of FHB's new stock repurchase program for 2025?
What was First Hawaiian's (FHB) net interest margin in Q4 2024?