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CST: 22/11/2019 20:02:26   

First Hawaiian, Inc. Reports First Quarter 2019 Financial Results and Declares Dividend

211 Days ago

  • Net income of $69.9 million, or $0.52 per diluted share, core net income1 of $72.1 million or $0.53 per diluted share 1
  • BNPP fully exited position in First Hawaiian, Inc
  • Announced $100 million stock repurchase program
  • Board of Directors declared a quarterly dividend of $0.26 per share

HONOLULU, April 25, 2019 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its first quarter ended March 31, 2019.

“The first quarter of 2019 was a solid quarter for First Hawaiian, as we started the year with a strong financial performance and BNP Paribas fully exited its remaining position in First Hawaiian,” said Bob Harrison, Chairman and Chief Executive Officer.  “We had strong core earnings, driven by good loan growth and continued expense control, while our asset quality and profitability measures remained excellent.”

On April 24, 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share.  The dividend will be payable on June 7, 2019 to stockholders of record at the close of business on May 28, 2019.

First Quarter 2019 Highlights (Comparisons To Fourth Quarter 2018):

  • Profitability measures were excellent with ROA of 1.38%, core ROATA1,2 of 1.50%, ROE of 11.16%, and core ROATCE1,2 of 18.91%;

  • Loans grew $121.3 million, or 1%, primarily in commercial and residential real estate;

  • Reported net interest margin (“NIM”) was 3.23%.  After removing the impact of premium adjustments NIM was up 7 basis points;

  • Reported efficiency ratio was 48.2% and core efficiency ratio1 was 47.4%;

  • Continued excellent credit quality.  The ratio of non-performing assets to total loans and leases and other real estate owned was 0.03% at the end of the first quarter;

  • On February 1, BNPP sold their remaining 18.4% interest in First Hawaiian, and we are once again a fully independent, local bank;

  • On March 1, we announced a stock repurchase program for up to $100 million of First Hawaiian’s common stock in 2019;

  • On April 24, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share, equal to an annual dividend yield of 3.85% based on the share price as of the close of business on that date.

Balance Sheet

Total assets were $20.4 billion as of March 31, 2019, compared to $20.7 billion as of December 31, 2018.

Gross loans and leases were $13.2 billion as of March 31, 2019, an increase of $121.3 million, or 1%, from $13.1 billion as of December 31, 2018.  The increase was due to growth in commercial real estate and residential mortgage loans, partially offset by declines in construction, consumer, commercial and industrial (“C&I”) and home equity lines.

Total deposits were $16.8 billion as of March 31, 2019, a decrease of $354.8 million, or 2% from $17.2 billion as of December 31, 2018.  The decrease was primarily due to the outflow of approximately $305 million of temporary deposits from the prior quarter and an additional reduction of $174.7 million of public time deposits. 

Net Interest Income

Net interest income for the first quarter of 2019 was $145.1 million, an increase of $1.1 million, or 0.8%, compared to $144.0 million for the prior quarter.  Net interest income in the first quarter included a negative $1.8 million premium adjustment, while net interest income in the prior quarter benefited from a positive $1.1 million premium adjustment. The increase in net interest income compared to the fourth quarter of 2018 was primarily due to higher balances and rates on loans and leases, partially offset by higher rates on deposit accounts and higher average balances of long-term borrowings.

NIM was 3.23% in the first quarter of 2019, unchanged compared to 3.23% in the fourth quarter of 2018.  The negative $1.8 million premium adjustment had a negative four basis point impact on the first quarter NIM, while the positive $1.1 million premium adjustment in the prior quarter increased the fourth quarter NIM by three basis points.   

Provision Expense

Results for the quarter ended March 31, 2019 included a provision for credit losses of $5.7 million compared to $5.8 million in the quarter ended December 31, 2018.    

Noninterest Income

Noninterest income was $47.1 million in the first quarter of 2019, an increase of $14.0 million compared to noninterest income of $33.1 million in the fourth quarter of 2018. The increase compared to the fourth quarter was primarily due to $21.5 million lower other-than-temporary impairment (“OTTI”) and investment losses associated with the investment portfolio restructuring, partially offset by $9.8 million lower other income.  Other income in the fourth quarter of 2018 included a positive $7.6 million mark-to-market adjustment associated with maturing cash flow hedges and a positive $1.5 million intercompany tax adjustment. 

Noninterest Expense

Noninterest expense was $92.6 million in the first quarter of 2019, an increase of $3.3 million from $89.4 million in the fourth quarter of 2018.  The increase in noninterest expense was primarily driven by higher salaries and benefits due to lower deferred loan costs, reflecting lower levels of loan production, and higher annual incentive compensation payments, including payroll taxes.

The efficiency ratio was 48.2% and 50.5% for the quarters ended March 31, 2019 and December 31, 2018, respectively.  Core efficiency ratio1 was 47.4% and 44.2% for the quarters ended March 31, 2019 and December 31, 2018, respectively.

Taxes

The effective tax rate for the first quarter of 2019 was 25.5% compared with 26.8% in the previous quarter.  The provision for taxes in the fourth quarter of 2018 included a $1.5 million expense for intercompany taxes. 

Asset Quality

The allowance for loan and lease losses was $141.5 million, or 1.07% of total loans and leases, as of March 31, 2019, compared to $141.7 million, or 1.08% of total loans and leases, as of December 31, 2018.  Net charge-offs were $5.9 million, or 0.18% of average loans and leases on an annualized basis, compared to $5.3 million, or 0.16% of average loans and leases on an annualized basis for the quarter ended December 31, 2018.  Total non-performing assets were $4.4 million, or 0.03% of total loans and leases and other real estate owned, at March 31, 2019, compared to non-performing assets of $7.3 million, or 0.06% of total loans and leases and other real estate owned, at December 31, 2018. 

Capital

Total stockholders' equity was $2.6 billion at March 31, 2019, compared to $2.5 billion at December 31, 2018.   

The tier 1 leverage, common equity tier 1 and total capital ratios were 8.71%, 12.05% and 13.06%, respectively, at March 31, 2019, compared with 8.72%, 11.97% and 12.99% at December 31, 2018.

During the first quarter, the company’s Board of Directors adopted a stock repurchase program for up to $100 million of its outstanding common stock during 2019.  Remaining buyback authority under the stock repurchase program was $100 million at April 24, 2019.

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 5:00 p.m. Eastern Time, 11:00 a.m. Hawaii Time.  To access the call, participants should dial (844) 452-2942 (US/Canada), or (574) 990-9846 (International) ten minutes prior to the start of the call and enter the conference ID:  2444505.  A live webcast of the conference call, including a slide presentation, will be available at the following link:  www.fhb.com/earnings.  The archive of the webcast will be available at the same location.  A telephonic replay of the conference call will be available two hours after the conclusion of the call until 8:30 p.m. (Eastern Time) on May 5, 2019.  Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID:  2444505.

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, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.  For a discussion of some of the 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, 2018.

Use of Non-GAAP Financial Measures

We present net interest income, noninterest income, noninterest expense, net income, earnings per share (basic and diluted) and the related ratios described below, on an adjusted, or ‘‘core,’’ basis, each a non-GAAP financial measure.  These core measures exclude from the corresponding GAAP measure the impact of certain items that we do not believe are representative of our financial results.  We believe that the presentation of these non-GAAP financial measures helps identify underlying trends in our business from period to period that could otherwise be distorted by the effect of certain expenses, gains and other items included in our operating results. We believe that these core measures provide useful information about our operating results and enhance the overall understanding of our past performance and future performance.  Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. 

Core net interest margin, core efficiency ratio, core return on average total assets and core return on average total stockholders’ equity are non-GAAP financial measures. We compute our core net interest margin as the ratio of core net interest income to average earning assets.  We compute our core efficiency ratio as the ratio of core noninterest expense to the sum of core net interest income and core noninterest income.  We compute our core return on average total assets as the ratio of core net income to average total assets.  We compute our core return on average total stockholders’ equity as the ratio of core net income to average total stockholders’ equity. 

Return on average tangible stockholders’ equity, core return on average tangible stockholders’ equity, return on average tangible assets, core return on average tangible assets and tangible stockholders’ equity to tangible assets are non-GAAP financial measures.  We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity.  We compute our core return on average tangible stockholders’ equity as the ratio of core net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity.  We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets.  We compute our core return on average tangible assets as the ratio of core net income to average tangible assets. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions.  Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP.

Tables 11 and 12 at the end of this document provide a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.

Investor Relations Contact:
Kevin Haseyama, CFA
(808) 525-6268
khaseyama@fhb.com
Media Contact:
Susan Kam
(808) 525-6254
skam@fhb.com

1 Core measurements are non-GAAP financial measures.  Core excludes certain gains, expenses and one-time items.  See Tables 11 and 12 at the end of this document for reconciliations of core measurements, including core net income, core noninterest income, core efficiency ratio and core earnings per diluted share to the comparable GAAP measurements.

2 Return on Average Tangible Assets (“ROATA”) and Return on Average Tangible Common Equity (“ROATCE”) are non-GAAP financial measures.  A reconciliation of average tangible assets and average tangible stockholders’ equity to the comparable GAAP measurements is provided in Tables 11 and 12 at the end of this document.

                   
Financial Highlights               Table 1  
    For the Three Months Ended  
    March 31,    December 31,    March 31,   
(dollars in thousands, except per share data)   2019   2018   2018  
Operating Results:                    
Net interest income   $   145,089   $ 143,985   $ 139,672  
Provision for loan and lease losses       5,680     5,750     5,950  
Noninterest income       47,072     33,091     48,700  
Noninterest expense       92,623     89,354     90,587  
Net income       69,924     59,995     67,958  
Basic earnings per share       0.52     0.44     0.49  
Diluted earnings per share       0.52     0.44     0.49  
Dividends declared per share       0.26     0.24     0.24  
Dividend payout ratio       50.00 %   54.55 %   48.98 %
Supplemental Income Statement Data (non-GAAP) :                    
Core net interest income   $   145,089   $ 143,985   $ 139,672  
Core noninterest income       49,685     57,176     48,700  
Core noninterest expense       92,362     88,919     90,180  
Core net income       72,052     77,914     68,259  
Core basic earnings per share       0.53     0.58     0.49  
Core diluted earnings per share       0.53     0.58     0.49  
Performance Ratio :                    
Net interest margin       3.23   3.23 %   3.13 %
Core net interest margin (non-GAAP)       3.23   3.23 %   3.13 %
Efficiency ratio       48.20   50.45 %   48.08 %
Core efficiency ratio (non-GAAP)       47.42   44.19 %   47.86 %
Return on average total assets       1.38   1.19 %   1.35 %
Core return on average total assets (non-GAAP)       1.43   1.54 %   1.36 %
Return on average tangible assets (non-GAAP)       1.45   1.25 %   1.42 %
Core return on average tangible assets (non-GAAP)(1)       1.50   1.62 %   1.43 %
Return on average total stockholders' equity       11.16   9.77 %   11.02 %
Core return on average total stockholders' equity (non-GAAP)       11.50   12.68 %   11.07 %
Return on average tangible stockholders' equity (non-GAAP)       18.35   16.51 %   18.32 %
Core return on average tangible stockholders’ equity (non-GAAP)(2)       18.91   21.44 %   18.40 %
Average Balances:                    
Average loans and leases   $   13,073,708   $ 12,829,635   $ 12,296,678  
Average earning assets       18,091,424     17,701,301     18,088,280  
Average assets       20,494,837     20,069,988     20,407,718  
Average deposits       16,865,673     16,608,611     17,504,054  
Average stockholders' equity       2,540,600     2,437,504     2,500,299  
Market Value Per Share:                    
Closing       26.05     22.51     27.83  
High       27.67     27.49     32.36  
Low       22.13     21.19     26.92  
                     

 

             
    As of       As of       As of    
    March 31,        December 31,        March 31,     
  2019   2018   2018  
Balance Sheet Data:                  
Loans and leases $   13,197,454   $ 13,076,191   $ 12,464,165  
Total assets     20,441,136     20,695,678     20,242,942  
Total deposits     16,795,244     17,150,068     17,362,422  
Long-term borrowings     600,028     600,026     34  
Total stockholders' equity     2,613,202     2,524,839     2,520,862  
                   
Per Share of Common Stock:                  
Book value $   19.36   $ 18.72   $ 18.06  
Tangible book value (non-GAAP)(3)     11.98     11.34     10.93  
                   
Asset Quality Ratios:                  
Non-accrual loans and leases / total loans and leases     0.03   0.05 %   0.10 %
Allowance for loan and lease losses / total loans and leases     1.07   1.08 %   1.11 %
                   
Capital Ratios:                  
Common Equity Tier 1 Capital Ratio         12.05   11.97 %   12.73 %
Tier 1 Capital Ratio     12.05   11.97 %   12.73 %
Total Capital Ratio     13.06   12.99 %   13.77 %
Tier 1 Leverage Ratio     8.71   8.72 %   8.71 %
Total stockholders' equity to total assets     12.78   12.20 %   12.45 %
Tangible stockholders' equity to tangible assets (non-GAAP)     8.32   7.76 %   7.93 %
                   
Non-Financial Data:                  
Number of branches     60     60     61  
Number of ATMs     296     295     310  
Number of Full-Time Equivalent Employees     2,130     2,155     2,213  
                   

 

     
Consolidated Statements of Income   Table 2
    Three Months Ended
    March 31,    December 31,    March 31, 
(dollars in thousands, except per share amounts)   2019
  2018    2018
Interest income                  
Loans and lease financing   $   144,406     $ 140,649     $ 123,551
Available-for-sale securities       24,486       25,537       28,993
Other       3,669       1,858       2,392
Total interest income       172,561       168,044       154,936
Interest expense                  
Deposits       23,197       20,152       15,264
Short-term and long-term borrowings       4,275       3,907      
Total interest expense       27,472       24,059       15,264
Net interest income       145,089       143,985       139,672
Provision for loan and lease losses       5,680       5,750       5,950
Net interest income after provision for loan and lease losses       139,409       138,235       133,722
Noninterest income                  
Service charges on deposit accounts       8,060       8,427       7,955
Credit and debit card fees       16,655       16,755       15,497
Other service charges and fees       9,129       9,763       9,342
Trust and investment services income       8,618       7,895       8,231
Bank-owned life insurance       3,813       1,086       2,044
Investment securities losses, net       (2,613 )          
Other-than-temporary impairment (OTTI) losses on available-for-sale debt securities             (24,085 )    
Other       3,410       13,250       5,631
Total noninterest income       47,072       33,091       48,700
Noninterest expense                  
Salaries and employee benefits       44,860       41,407       42,160
Contracted services and professional fees       13,645       13,005       12,287
Occupancy       6,986       7,181       6,484
Equipment       4,284       4,610       4,588
Regulatory assessment and fees       1,447       2,053       3,973
Advertising and marketing       1,966       1,687       951
Card rewards program       6,732       6,978       5,718
Other       12,703       12,433       14,426
Total noninterest expense       92,623       89,354       90,587
Income before provision for income taxes       93,858       81,972       91,835
Provision for income taxes       23,934       21,977       23,877
Net income   $   69,924     $ 59,995     $ 67,958
Basic earnings per share   $   0.52     $ 0.44     $ 0.49
Diluted earnings per share   $   0.52     $ 0.44     $ 0.49
Basic weighted-average outstanding shares       134,879,336       134,874,277       139,600,712
Diluted weighted-average outstanding shares       135,198,345       135,100,162       139,732,100
                   

 

     
Consolidated Balance Sheets   Table 3
    March 31,    December 31,    March 31, 
(dollars in thousands)   2019
  2018
  2018 
Assets                  
Cash and due from banks   $   336,555     $ 396,836     $ 283,135  
Interest-bearing deposits in other banks       281,312       606,801       409,357  
Investment securities       4,485,660       4,498,342       5,076,766  
Loans held for sale             432       397  
Loans and leases       13,197,454       13,076,191       12,464,165  
Less: allowance for loan and lease losses       141,546       141,718       138,574  
Net loans and leases       13,055,908       12,934,473       12,325,591  
                   
Premises and equipment, net       310,902       304,996       288,565  
Other real estate owned and repossessed personal property       124       751        
Accrued interest receivable       49,489       48,920       47,499  
Bank-owned life insurance       447,936       446,076       440,054  
Goodwill       995,492       995,492       995,492  
Mortgage servicing rights       15,399       16,155       18,659  
Other assets       462,359       446,404       357,427  
Total assets   $   20,441,136     $ 20,695,678     $ 20,242,942  
Liabilities and Stockholders' Equity                  
Deposits:                  
Interest-bearing   $   10,951,764     $ 11,142,127     $ 11,312,288  
Noninterest-bearing       5,843,480       6,007,941       6,050,134  
Total deposits       16,795,244       17,150,068       17,362,422  
Long-term borrowings       600,028       600,026       34  
Retirement benefits payable       127,845       127,909       134,684  
Other liabilities       304,817       292,836       224,940  
Total liabilities       17,827,934       18,170,839       17,722,080  
                   
Stockholders' equity                  
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 139,851,508 / 135,012,015 shares as of March 31, 2019, issued/outstanding: 139,656,674 / 134,874,302 shares as of December 31, 2018 and issued/outstanding: 139,611,795 / 139,601,123 shares as of March 31, 2018)       1,399       1,397       1,396  
Additional paid-in capital       2,497,770       2,495,853       2,490,910  
Retained earnings       326,451       291,919       193,522  
Accumulated other comprehensive loss, net       (78,754 )     (132,195 )     (164,684 )
Treasury stock (4,839,493 shares as of March 31, 2019, 4,782,372 as of December 31, 2018 and 10,672 as of March 31, 2018)       (133,664 )     (132,135 )     (282 )
Total stockholders' equity       2,613,202       2,524,839       2,520,862  
Total liabilities and stockholders' equity   $   20,441,136     $ 20,695,678     $ 20,242,942  
                   

 

                                                 
Average Balances and Interest Rates                                               Table 4    
    Three Months Ended     Three Months Ended     Three Months Ended    
    March 31, 2019   December 31, 2018   March 31, 2018  
      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   $   507.3   $   3.2     2.56 $ 290.0   $ 1.5   2.04 % $ 616.8   $ 2.3   1.53 %
Available-for-Sale Investment Securities       4,417.8       24.5     2.22     4,521.3     25.5   2.24     5,160.3     29.0   2.28  
Loans Held for Sale       0.3           2.79     0.3       3.51     0.1       2.99  
Loans and Leases(1)                                                  
Commercial and industrial       3,166.4       33.2     4.25     3,120.9     32.7   4.16     3,104.4     27.7   3.62  
Commercial real estate       3,005.2       35.4     4.77     3,013.0     32.4   4.27     2,799.9     26.5   3.83  
Construction       636.7       7.5     4.77     623.9     7.1   4.51     621.2     5.7   3.74  
Residential:                                                  
Residential mortgages       3,535.2       36.0     4.07     3,351.8     36.0   4.26     3,147.1     33.4   4.30  
Home equity lines       915.7       8.7     3.85     904.5     8.7   3.78     862.7     7.7   3.61  
Consumer       1,667.3       22.5     5.48     1,657.9     22.7   5.44     1,599.6     21.3   5.41  
Lease financing       147.2       1.1     2.99     157.6     1.1   2.70     161.8     1.2   3.10  
Total Loans and Leases       13,073.7       144.4     4.46     12,829.6     140.7   4.35     12,296.7     123.5   4.07  
Other Earning Assets       92.3       0.5     2.06     60.1     0.4   2.42     14.4     0.1   1.68  
Total Earning Assets(2)       18,091.4       172.6     3.85     17,701.3     168.1   3.77     18,088.3     154.9   3.47  
Cash and Due from Banks       360.3               339.7               318.9            
Other Assets       2,043.1               2,029.0               2,000.5            
Total Assets   $   20,494.8             $ 20,070.0             $ 20,407.7            
                                                   
Interest-Bearing Liabilities                                                  
Interest-Bearing Deposits                                                  
Savings   $   4,815.8   $   4.2     0.36 $ 4,708.4   $ 3.6   0.30 %   4,543.1   $ 1.7   0.15 %
Money Market       3,181.3       7.7     0.98     3,021.9     6.1   0.80     2,710.9     1.7   0.26  
Time       3,041.8       11.3     1.51     3,026.2     10.5   1.37     4,252.3     11.8   1.13  
Total Interest-Bearing Deposits       11,038.9       23.2     0.85     10,756.5     20.2   0.74     11,506.3     15.2   0.54  
Short-Term Borrowings       12.8       0.1     2.45     112.9     0.6   2.26            
Long-Term Borrowings       600.0       4.2     2.84     452.2     3.3   2.86            
Total Interest-Bearing Liabilities       11,651.7       27.5     0.96     11,321.6     24.1   0.84     11,506.3     15.2   0.54  
Net Interest Income         $   145.1             $ 144.0             $ 139.7      
Interest Rate Spread                 2.89             2.93 %             2.93 %
Net Interest Margin                 3.23             3.23 %             3.13 %
Noninterest-Bearing Demand Deposits       5,826.8               5,852.1               5,997.8            
Other Liabilities       475.7               458.8               403.3            
Stockholders' Equity       2,540.6               2,437.5               2,500.3            
Total Liabilities and Stockholders' Equity   $   20,494.8             $ 20,070.0             $ 20,407.7            
                                                   

 

                   
Analysis of Change in Net Interest Income                   Table 5  
    Three Months Ended March 31, 2019
    Compared to December 31, 2018
(dollars in millions)     Volume       Rate     Total
Change in Interest Income:                  
Interest-Bearing Deposits in Other Banks   $   1.3     $   0.4     $   1.7  
Available-for-Sale Investment Securities       (0.8 )       (0.3 )       (1.1 )
Loans and Leases                  
Commercial and industrial       0.2         0.3         0.5  
Commercial real estate       (0.1 )       3.0         2.9  
Construction       0.1         0.3         0.4  
Residential:                  
Residential mortgage       1.8         (1.7 )       0.1  
Home equity line               0.1         0.1  
Consumer       (0.1 )       (0.1 )       (0.2 )
Lease financing       (0.1 )       0.1          
Total Loans and Leases       1.8         2.0         3.8  
Other Earning Assets       0.2         (0.1 )       0.1  
Total Change in Interest Income       2.5         2.0         4.5  
                   
Change in Interest Expense:                  
Interest-Bearing Deposits                  
Savings               0.6         0.6  
Money Market       0.3         1.3         1.6  
Time               0.8         0.8  
Total Interest-Bearing Deposits       0.3         2.7         3.0  
Short-Term Borrowings       (0.6 )               (0.6 )
Long-Term Borrowings       1.0                 1.0  
Total Change in Interest Expense       0.7         2.7         3.4  
Change in Net Interest Income   $   1.8     $   (0.7 )   $   1.1  
                   

 

                   
Analysis of Change in Net Interest Income                   Table 6  
    Three Months Ended March 31, 2019
    Compared to March 31, 2018
(dollars in millions)     Volume       Rate     Total
Change in Interest Income:                  
Interest-Bearing Deposits in Other Banks   $   (0.5 )   $   1.4     $   0.9  
Available-for-Sale Investment Securities       (3.8 )       (0.7 )       (4.5 )
Loans and Leases                  
Commercial and industrial       0.6         4.9         5.5  
Commercial real estate       2.0         6.9         8.9  
Construction       0.1         1.6         1.7  
Residential:                  
Residential mortgage       4.4         (1.8 )       2.6  
Home equity line       0.5         0.5         1.0  
Consumer       0.9         0.3         1.2  
Lease financing       (0.1 )               (0.1 )
Total Loans and Leases       8.4         12.4         20.8  
Other Earning Assets       0.4                 0.4  
Total Change in Interest Income       4.5         13.1         17.6  
                   
Change in Interest Expense:                  
Interest-Bearing Deposits                  
Savings       0.1         2.4         2.5  
Money Market       0.3         5.6         5.9  
Time       (3.9 )       3.4         (0.5 )
Total Interest-Bearing Deposits       (3.5 )       11.4         7.9  
Short-Term Borrowings       0.1                 0.1  
Long-Term Borrowings       4.2                 4.2  
Total Change in Interest Expense       0.8         11.4         12.2  
Change in Net Interest Income   $   3.7     $   1.7     $   5.4  
                   

 

                   
Loans and Leases                 Table 7
    March 31,    December 31,    March 31, 
(dollars in thousands)   2019   2018   2018
Commercial and industrial   $   3,203,770   $ 3,208,760   $ 3,219,210
Commercial real estate       3,147,304     2,990,783     2,738,557
Construction       595,491     626,757     594,266
Residential:                  
Residential mortgage       3,543,964     3,527,101     3,298,652
Home equity line       907,829     912,517     857,351
Total residential       4,451,793     4,439,618     4,156,003
Consumer       1,653,109     1,662,504     1,595,989
Lease financing       145,987     147,769     160,140
Total loans and leases   $   13,197,454   $ 13,076,191   $ 12,464,165
                   

 

                   
Deposits                 Table 8
    March 31,    December 31,    March 31, 
(dollars in thousands)   2019   2018   2018
Demand   $   5,843,480   $ 6,007,941   $ 6,050,134
Savings       4,884,418     4,853,285     4,614,668
Money Market       3,156,056     3,196,678     2,631,894
Time       2,911,290     3,092,164     4,065,726
  Total Deposits   $   16,795,244   $ 17,150,068   $ 17,362,422
                   

 

                   
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More                 Table 9
    March 31,    December 31,    March 31, 
(dollars in thousands)   2019   2018   2018
Non-Performing Assets                  
Non-Accrual Loans and Leases                  
Commercial Loans:                  
Commercial and industrial   $   190   $ 274   $ 1,888
Commercial real estate           1,658     2,885
Construction               2,001
Total Commercial Loans       190     1,932     6,774
Residential Loans:                  
Residential mortgage       4,090     4,611     5,349
Total Residential Loans       4,090     4,611     5,349
Total Non-Accrual Loans and Leases       4,280     6,543     12,123
Other Real Estate Owned       124     751    
Total Non-Performing Assets   $   4,404   $ 7,294   $ 12,123
                   
Accruing Loans and Leases Past Due 90 Days or More                  
Commercial Loans:                  
Commercial and industrial   $   350   $ 141   $ 83
Construction       89         343
Total Commercial Loans       439     141     426
Residential Loans:                  
Residential mortgage           32     77
Home equity line       2,448     2,842     1,392
Total Residential Loans       2,448     2,874     1,469
Consumer       3,538     3,373     1,744
Total Accruing Loans and Leases Past Due 90 Days or More   $   6,425   $ 6,388   $ 3,639
                   
Restructured Loans on Accrual Status and Not Past Due 90 Days or More       25,229     24,033     33,429
  Total Loans and Leases     $   13,197,454   $ 13,076,191   $ 12,464,165
                   

 

                     
Allowance for Loan and Lease Losses                 Table 10  
    For the Three Months Ended    
    March 31,    December 31,    March 31,   
(dollars in thousands)   2019     2018     2018    
Balance at Beginning of Period   $   141,718     $ 141,250     $ 137,253    
Loans and Leases Charged-Off                    
Commercial Loans:                    
Commercial and industrial                   (475 )  
Lease financing       (24 )              
Total Commercial Loans       (24 )           (475 )  
Residential             (6 )        
Consumer       (8,598 )     (8,015 )     (6,625 )  
Total Loans and Leases Charged-Off       (8,622 )     (8,021 )     (7,100 )  
Recoveries on Loans and Leases Previously Charged-Off                    
Commercial Loans:                    
Commercial and industrial       37       78       64    
Commercial real estate       31       41       122    
Total Commercial Loans       68       119       186    
Residential       250       256       182    
Consumer       2,452       2,364       2,103    
Total Recoveries on Loans and Leases Previously Charged-Off       2,770       2,739       2,471    
Net Loans and Leases Charged-Off       (5,852 )     (5,282 )     (4,629 )  
Provision for Loan and Lease Losses       5,680       5,750       5,950    
Balance at End of Period   $   141,546     $ 141,718     $ 138,574    
Average Loans and Leases Outstanding   $   13,073,708     $ 12,829,635     $ 12,296,678    
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding       0.18   0.16   % 0.15   %
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding       1.07   1.08   % 1.11   %
                       

 

                 
GAAP to Non-GAAP Reconciliation             Table 11  
    For the Three Months Ended    
    March 31,    December 31,    March 31,   
(dollars in thousands, except per share amounts)   2019     2018   2018  
Income Statement Data:                    
Net income   $   69,924   $ 59,995   $ 67,958  
                     
Average total stockholders' equity   $   2,540,600   $ 2,437,504   $ 2,500,299  
Less: average goodwill       995,492     995,492     995,492  
Average tangible stockholders' equity   $   1,545,108   $ 1,442,012   $ 1,504,807  
                     
Average total assets   $   20,494,837   $ 20,069,988   $ 20,407,718  
Less: average goodwill       995,492     995,492     995,492  
Average tangible assets   $   19,499,345   $ 19,074,496   $ 19,412,226  
                     
Return on average total stockholders' equity(1)       11.16   9.77 %   11.02 %
Return on average tangible stockholders' equity (non-GAAP)(1)       18.35   16.51 %   18.32 %
                     
Return on average total assets(1)       1.38   1.19 %   1.35 %
Return on average tangible assets (non-GAAP)(1)       1.45   1.25 %   1.42 %
                     
Average stockholders' equity to average assets       12.40   12.15 %   12.25 %
Average tangible stockholders' equity to average tangible assets (non-GAAP)       7.92   7.56 %   7.75 %
                     

 

               
      As of       As of       As of    
    March 31,    December 31,    March 31,   
    2019   2018   2018  
Balance Sheet Data:                    
Total stockholders' equity   $   2,613,202   $ 2,524,839   $ 2,520,862  
Less: goodwill       995,492     995,492     995,492  
Tangible stockholders' equity   $   1,617,710   $ 1,529,347   $ 1,525,370  
                     
Total assets   $   20,441,136   $ 20,695,678   $ 20,242,942  
Less: goodwill       995,492     995,492     995,492  
Tangible assets   $   19,445,644   $ 19,700,186   $ 19,247,450  
                     
Shares outstanding       135,012,015     134,874,302     139,601,123  
                     
Total stockholders' equity to total assets       12.78   12.20 %   12.45 %
Tangible stockholders' equity to tangible assets (non-GAAP)       8.32   7.76 %   7.93 %
                     
Book value per share   $   19.36   $ 18.72   $ 18.06  
Tangible book value per share (non-GAAP)   $   11.98   $ 11.34   $ 10.93  
                     

 

                     
GAAP to Non-GAAP Reconciliation                 Table 12  
    For the Three Months Ended  
    March 31,    December 31,    March 31,   
(dollars in thousands, except per share amounts)   2019     2018     2018    
Net interest income   $   145,089     $ 143,985     $ 139,672    
Core net interest income (non-GAAP)   $   145,089     $ 143,985     $ 139,672    
                     
Noninterest income   $   47,072     $ 33,091     $ 48,700    
OTTI losses on available-for-sale debt securities             24,085          
Loss on sale of securities       2,613                
Core noninterest income (non-GAAP)   $   49,685     $ 57,176     $ 48,700    
                     
Noninterest expense   $   92,623     $ 89,354     $ 90,587    
One-time items(1)       (261 )     (435 )     (407 )  
Core noninterest expense (non-GAAP)   $   92,362     $ 88,919     $ 90,180    
                     
Net income   $   69,924     $ 59,995     $ 67,958    
OTTI losses on available-for-sale debt securities             24,085            
Loss on sale of securities       2,613                
One-time noninterest expense items(1)       261       435       407    
Tax adjustments(2)       (746 )     (6,601 )     (106 )  
Total core adjustments       2,128       17,919       301    
Core net income (non-GAAP)   $   72,052     $ 77,914     $ 68,259    
Core basic earnings per share (non-GAAP)   $   0.53     $ 0.58     $ 0.49    
Core diluted earnings per share (non-GAAP)   $   0.53     $ 0.58     $ 0.49    
Core efficiency ratio (non-GAAP)       47.42   %   44.19   %   47.86   %
                     
Basic earnings per share   $   0.52     $ 0.44     $ 0.49    
Diluted earnings per share   $   0.52     $ 0.44     $ 0.49    
Efficiency ratio       48.20   %   50.45   %   48.08   %
                     

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