First Hawaiian, Inc. Reports First Quarter 2022 Financial Results and Declares Dividend

| Source: First Hawaiian, Inc. First Hawaiian, Inc.

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

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

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

First Quarter 2022 Highlights:

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

Balance Sheet

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

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

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

Net Interest Income

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

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

Provision Expense

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

Noninterest Income

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

Noninterest Expense

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

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

Taxes

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

Asset Quality

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

Capital

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

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

The Company did not repurchase any shares in the first quarter.

First Hawaiian, Inc.

First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com.

Conference Call Information

First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time. To access the call, participants should dial (844) 452-2942 (US/Canada), or (574) 990-9846 (International) ten minutes prior to the start of the call and enter the conference ID: 6391237. A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location. A telephonic replay of the conference call will be available two hours after the conclusion of the call until 4:30 p.m. (Eastern Time) on April 29, 2022. The replay can be accessed dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 6391237.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Further, statements about the potential effects of the COVID-19 pandemic on our businesses and financial results and conditions may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the ongoing impacts of COVID-19, the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2021.

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

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

Investor Relations Contact:
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 
  March 31,  December 31,  March 31,  
(dollars in thousands, except per share data) 2022    2021    2021 
Operating Results:          
Net interest income $ 133,872 $137,327 $129,158 
Provision for credit losses   (5,747) —  — 
Noninterest income   41,380  41,573  43,868 
Noninterest expense   104,042  108,749  96,306 
Net income   57,719  57,022  57,693 
Basic earnings per share   0.45  0.45  0.44 
Diluted earnings per share   0.45  0.44  0.44 
Dividends declared per share   0.26  0.26  0.26 
Dividend payout ratio   57.78% 59.09% 59.09%
Performance Ratios(1):          
Net interest margin   2.42%   2.38% 2.55%
Efficiency ratio   59.04%   60.50% 55.53%
Return on average total assets   0.93%   0.88% 1.02%
Return on average tangible assets (non-GAAP)   0.97%   0.92% 1.07%
Return on average total stockholders' equity   9.19%   8.46% 8.58%
Return on average tangible stockholders' equity (non-GAAP)   15.08%   13.47% 13.51%
Average Balances:          
Average loans and leases $ 12,819,612 $12,814,316 $13,242,270 
Average earning assets   22,463,209  23,100,445  20,476,149 
Average assets   25,080,453  25,650,505  22,944,699 
Average deposits   21,960,819  22,246,577  19,503,067 
Average stockholders' equity   2,547,865  2,675,513  2,727,701 
Market Value Per Share:          
Closing   27.89  27.33  27.37 
High   31.16  30.14  30.80 
Low   26.93  25.17  23.14 
           
  As of As of As of 
  March 31,  December 31,  March 31,  
(dollars in thousands, except per share data) 2022 2021 2021 
Balance Sheet Data:          
Loans and leases $ 12,891,743 $12,961,999 $13,300,289 
Total assets   25,042,720  24,992,410  23,497,596 
Total deposits   22,270,430  21,816,146  20,133,681 
Long-term borrowings   —  —  200,010 
Total stockholders' equity   2,285,149  2,656,912  2,683,630 
           
Per Share of Common Stock:          
Book value $ 17.90 $20.84 $20.68 
Tangible book value (non-GAAP)(2)   10.10  13.03  13.01 
           
Asset Quality Ratios:          
Non-accrual loans and leases / total loans and leases   0.07%   0.05% 0.07%
Allowance for credit losses for loans and leases / total loans and leases   1.17%   1.21% 1.51%
           
Capital Ratios:          
Common Equity Tier 1 Capital Ratio    12.27%   12.24% 12.82%
Tier 1 Capital Ratio   12.27%   12.24% 12.82%
Total Capital Ratio   13.48%   13.49% 14.07%
Tier 1 Leverage Ratio   7.50%   7.24% 7.90%
Total stockholders' equity to total assets   9.13%   10.63% 11.42%
Tangible stockholders' equity to tangible assets (non-GAAP)   5.36%   6.92% 7.50%
           
Non-Financial Data:          
Number of branches   51  54  54 
Number of ATMs   298  299  297 
Number of Full-Time Equivalent Employees   2,022  2,036  2,090 
  1. Except for the efficiency ratio, amounts are annualized for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021.

  2. Tangible book value is a non-GAAP financial measure. We compute our tangible book value as the ratio of tangible stockholders’ equity to shares outstanding. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. For a reconciliation to the most directly comparable GAAP financial measure, see Table 12, GAAP to Non-GAAP Reconciliation.
          
Consolidated Statements of Income Table 2
  For the Three Months Ended
  March 31,  December 31,  March 31, 
(dollars in thousands, except per share amounts) 2022 2021 2021
Interest income         
Loans and lease financing $ 103,732  $111,865  $110,939
Available-for-sale securities   32,107   28,393   23,146
Other   782   1,051   491
Total interest income   136,621   141,309   134,576
Interest expense         
Deposits   2,749   3,216   4,056
Short-term and long-term borrowings   —   766   1,362
Total interest expense   2,749   3,982   5,418
Net interest income   133,872   137,327   129,158
Provision for credit losses   (5,747)  —   —
Net interest income after provision for credit losses   139,619   137,327   129,158
Noninterest income         
Service charges on deposit accounts   7,501   7,171   6,718
Credit and debit card fees   14,850   16,266   14,551
Other service charges and fees   9,654   9,196   8,846
Trust and investment services income   8,883   8,895   8,492
Bank-owned life insurance   (417)  2,851   2,389
Other   909   (2,806)  2,872
Total noninterest income   41,380   41,573   43,868
Noninterest expense         
Salaries and employee benefits   48,226   45,982   43,936
Contracted services and professional fees   17,147   14,603   17,188
Occupancy   7,410   8,074   7,170
Equipment   5,977   6,317   5,491
Regulatory assessment and fees   2,224   2,557   2,034
Advertising and marketing   2,028   1,579   1,591
Card rewards program   6,883   7,471   4,835
Other   14,147   22,166   14,061
Total noninterest expense   104,042   108,749   96,306
Income before provision for income taxes   76,957   70,151   76,720
Provision for income taxes   19,238   13,129   19,027
Net income $ 57,719  $57,022  $57,693
Basic earnings per share $ 0.45  $0.45  $0.44
Diluted earnings per share $ 0.45  $0.44  $0.44
Basic weighted-average outstanding shares   127,556,242   127,893,011   129,933,104
Diluted weighted-average outstanding shares   128,121,126   128,512,257   130,589,878


          
Consolidated Balance Sheets Table 3
  March 31,  December 31,  March 31, 
(dollars in thousands) 2022
 2021
 2021
Assets         
Cash and due from banks $ 274,022  $246,716  $278,994 
Interest-bearing deposits in other banks   1,352,138   1,011,753   983,816 
Investment securities, at fair value (amortized cost: $8,733,170 as of March 31, 2022, $8,560,733 as of December 31, 2021 and $6,708,431 as of March 31, 2021)   8,062,384   8,428,032   6,692,479 
Loans held for sale   —   538   9,390 
Loans and leases   12,891,743   12,961,999   13,300,289 
Less: allowance for credit losses   150,280   157,262   200,366 
Net loans and leases   12,741,463   12,804,737   13,099,923 
          
Premises and equipment, net   315,766   318,448   319,949 
Other real estate owned and repossessed personal property   —   175   — 
Accrued interest receivable   61,561   63,158   69,879 
Bank-owned life insurance   471,401   471,819   468,927 
Goodwill   995,492   995,492   995,492 
Mortgage servicing rights   7,650   8,302   10,869 
Other assets   760,843   643,240   567,878 
Total assets $ 25,042,720  $24,992,410  $23,497,596 
Liabilities and Stockholders' Equity         
Deposits:         
Interest-bearing $ 12,504,821  $12,422,283  $11,958,606 
Noninterest-bearing   9,765,609   9,393,863   8,175,075 
Total deposits   22,270,430   21,816,146   20,133,681 
Long-term borrowings   —   —   200,010 
Retirement benefits payable   134,323   134,491   143,736 
Other liabilities   352,818   384,861   336,539 
Total liabilities   22,757,571   22,335,498   20,813,966 
          
Stockholders' equity         
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,875,595 / 127,686,307 shares as of March 31, 2022, issued/outstanding: 140,581,715 / 127,502,472 shares as of December 31, 2021 and issued/outstanding: 140,455,180 / 129,749,890 shares as of March 31, 2021)   1,409   1,406   1,405 
Additional paid-in capital   2,530,795   2,527,663   2,517,048 
Retained earnings   628,642   604,534   497,418 
Accumulated other comprehensive loss, net   (517,502)  (121,693)  (43,435)
Treasury stock (13,189,288 shares as of March 31, 2022, 13,079,243 shares as of December 31, 2021 and 10,705,290 shares as of March 31, 2021)   (358,195)  (354,998)  (288,806)
Total stockholders' equity   2,285,149   2,656,912   2,683,630 
Total liabilities and stockholders' equity $ 25,042,720  $24,992,410  $23,497,596 


                          
Average Balances and Interest Rates                       Table 4
  Three Months Ended  Three Months Ended  Three Months Ended  
  March 31, 2022 December 31, 2021 March 31, 2021 
  Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ 
(dollars in millions) Balance Expense Rate Balance Expense Rate Balance Expense Rate 
Earning Assets                         
Interest-Bearing Deposits in Other Banks $ 1,138.3 $ 0.6  0.20%  $2,074.5 $0.8 0.15%$938.7 $0.2 0.10%
Available-for-Sale Investment Securities                         
Taxable   7,800.3   29.2  1.50  7,515.2  25.8 1.37  5,949.9  22.1 1.49 
Non-Taxable   636.7   3.6  2.32  615.3  3.3 2.14  278.0  1.3 1.80 
Total Available-for-Sale Investment Securities   8,437.0   32.8  1.56  8,130.5  29.1 1.43  6,227.9  23.4 1.50 
Loans Held for Sale   1.2   —  2.02  1.0  — 1.35  9.2  0.1 2.46 
Loans and Leases(1)                         
Commercial and industrial   1,973.1   14.6  3.01  2,084.0  21.1 4.01  3,026.7  20.4 2.74 
Commercial real estate   3,632.2   25.8  2.88  3,572.9  26.0 2.89  3,385.2  24.9 2.98 
Construction   766.9   5.7  3.03  806.6  6.3 3.09  746.8  5.8 3.16 
Residential:                         
Residential mortgage   4,111.0   34.8  3.38  4,014.9  34.9 3.48  3,696.1  34.7 3.76 
Home equity line   891.6   5.5  2.48  864.4  5.5 2.52  822.0  5.7 2.80 
Consumer   1,218.6   15.6  5.19  1,241.3  16.3 5.22  1,323.7  17.7 5.43 
Lease financing   226.2   1.9  3.42  230.2  1.9 3.27  241.8  1.8 3.02 
Total Loans and Leases   12,819.6   103.9  3.27  12,814.3  112.0 3.48  13,242.3  111.0 3.39 
Other Earning Assets   67.1   0.2  1.31  80.1  0.3 1.27  58.0  0.3 1.79 
Total Earning Assets(2)   22,463.2   137.5  2.47  23,100.4  142.2 2.45  20,476.1  135.0 2.66 
Cash and Due from Banks   292.1       282.2       294.0      
Other Assets   2,325.2       2,267.9       2,174.6      
Total Assets $ 25,080.5      $25,650.5      $22,944.7      
                          
Interest-Bearing Liabilities                         
Interest-Bearing Deposits                         
Savings $ 6,668.4 $ 0.5  0.03%  $7,086.0 $0.8 0.04% 5,975.1 $0.6 0.04%
Money Market   4,048.9   0.5  0.05  4,048.3  0.5 0.05  3,530.0  0.4 0.05 
Time   1,748.5   1.7  0.39  1,819.0  1.9 0.42  2,288.5  3.0 0.53 
Total Interest-Bearing Deposits   12,465.8   2.7  0.09  12,953.3  3.2 0.10  11,793.6  4.0 0.14 
Long-Term Borrowings   —   —  —  110.9  0.8 2.74  200.0  1.4 2.76 
Total Interest-Bearing Liabilities   12,465.8   2.7  0.09  13,064.2  4.0 0.12  11,993.6  5.4 0.18 
Net Interest Income    $ 134.8      $138.2      $129.6   
Interest Rate Spread        2.38%        2.33%      2.48%
Net Interest Margin        2.42%        2.38%      2.55%
Noninterest-Bearing Demand Deposits   9,495.0       9,293.3       7,709.5      
Other Liabilities   571.8       617.5       513.9      
Stockholders' Equity   2,547.9       2,675.5       2,727.7      
Total Liabilities and Stockholders' Equity $ 25,080.5      $25,650.5      $22,944.7      
  1. Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

  2. Interest income includes taxable-equivalent basis adjustments of $1.0 million, $0.9 million and $0.4 million for the three months ended March 31, 2022, December 31, 2021, and March 31, 2021, respectively.


          
Analysis of Change in Net Interest Income        Table 5
  Three Months Ended March 31, 2022
  Compared to December 31, 2021
(dollars in millions) Volume Rate Total
Change in Interest Income:         
Interest-Bearing Deposits in Other Banks $ (0.4) $ 0.2  $ (0.2)
Available-for-Sale Investment Securities         
Taxable   1.0    2.4    3.4 
Non-Taxable   —    0.3    0.3 
Total Available-for-Sale Investment Securities   1.0    2.7    3.7 
Loans and Leases         
Commercial and industrial   (1.2)   (5.3)   (6.5)
Commercial real estate   —    (0.2)   (0.2)
Construction   (0.4)   (0.2)   (0.6)
Residential:         
Residential mortgage   0.9    (1.0)   (0.1)
Home equity line   0.1    (0.1)   — 
Consumer   (0.5)   (0.2)   (0.7)
Lease financing   (0.1)   0.1    — 
Total Loans and Leases   (1.2)   (6.9)   (8.1)
Other Earning Assets   (0.1)   —    (0.1)
Total Change in Interest Income   (0.7)   (4.0)   (4.7)
          
Change in Interest Expense:         
Interest-Bearing Deposits         
Savings   (0.1)   (0.2)   (0.3)
Time   (0.1)   (0.1)   (0.2)
Total Interest-Bearing Deposits   (0.2)   (0.3)   (0.5)
Long-Term Borrowings   (0.4)   (0.4)   (0.8)
Total Change in Interest Expense   (0.6)   (0.7)   (1.3)
Change in Net Interest Income $ (0.1) $ (3.3) $ (3.4)


          
Analysis of Change in Net Interest Income        Table 6
  Three Months Ended March 31, 2022
  Compared to March 31, 2021
(dollars in millions) Volume Rate Total
Change in Interest Income:         
Interest-Bearing Deposits in Other Banks $ 0.1  $ 0.3  $ 0.4 
Available-for-Sale Investment Securities         
Taxable   6.9    0.2    7.1 
Non-Taxable   1.9    0.4    2.3 
Total Available-for-Sale Investment Securities   8.8    0.6    9.4 
Loans Held for Sale   (0.1)   —    (0.1)
Loans and Leases         
Commercial and industrial   (7.7)   1.9    (5.8)
Commercial real estate   1.8    (0.9)   0.9 
Construction   0.1    (0.2)   (0.1)
Residential:         
Residential mortgage   3.8    (3.7)   0.1 
Home equity line   0.5    (0.7)   (0.2)
Consumer   (1.4)   (0.7)   (2.1)
Lease financing   (0.1)   0.2    0.1 
Total Loans and Leases   (3.0)   (4.1)   (7.1)
Other Earning Assets   —    (0.1)   (0.1)
Total Change in Interest Income   5.8    (3.3)   2.5 
          
Change in Interest Expense:         
Interest-Bearing Deposits         
Savings   —    (0.1)   (0.1)
Money Market   0.1    —    0.1 
Time   (0.6)   (0.7)   (1.3)
Total Interest-Bearing Deposits   (0.5)   (0.8)   (1.3)
Long-Term Borrowings   (0.7)   (0.7)   (1.4)
Total Change in Interest Expense   (1.2)   (1.5)   (2.7)
Change in Net Interest Income $ 7.0  $ (1.8) $ 5.2 


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


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


          
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More        Table 9
  March 31,  December 31,  March 31, 
(dollars in thousands) 2022    2021    2021
Non-Performing Assets         
Non-Accrual Loans and Leases         
Commercial Loans:         
Commercial and industrial $ 707 $718 $593
Commercial real estate   727  727  937
Construction   —  —  579
Lease financing   75  —  —
Total Commercial Loans   1,509  1,445  2,109
Residential Loans:         
Residential mortgage   7,092  5,637  6,999
Total Residential Loans   7,092  5,637  6,999
Total Non-Accrual Loans and Leases   8,601  7,082  9,108
Other Real Estate Owned   —  175  —
Total Non-Performing Assets $ 8,601 $7,257 $9,108
          
Accruing Loans and Leases Past Due 90 Days or More         
Commercial Loans:         
Commercial and industrial $ 591 $740 $1,365
Commercial real estate   —  —  1,054
Construction   —  —  89
Total Commercial Loans   591  740  2,508
Residential Loans:         
Residential mortgage   13  987  —
Home equity line   2,252  3,681  4,975
Total Residential Loans   2,265  4,668  4,975
Consumer   1,588  1,800  2,024
Total Accruing Loans and Leases Past Due 90 Days or More $ 4,444 $7,208 $9,507
          
Restructured Loans on Accrual Status and Not Past Due 90 Days or More $ 32,590 $34,893 $39,831
Total Loans and Leases $ 12,891,743 $12,961,999 $13,300,289


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


                            
Loans and Leases by Year of Origination and Credit Quality Indicator  Table 11
                       Revolving   
                       Loans   
                       Converted   
  Term Loans Revolving to Term   
  Amortized Cost Basis by Origination Year Loans Loans   
                    Amortized Amortized   
(dollars in thousands) 2022 2021 2020 2019 2018 Prior Cost Basis Cost Basis Total
Commercial Lending                           
Commercial and Industrial                           
Risk rating:                           
Pass $ 158,853 $ 483,473 $ 98,061 $ 184,897 $ 79,810 $ 166,075 $ 594,007 $ 31,048 $ 1,796,224
Special Mention   2,876   356   3,898   3,983   52   5,594   1,601   867   19,227
Substandard   —   337   1,296   1,776   13,251   757   15,877   138   33,432
Other (1)   4,028   10,510   6,171   6,450   3,516   1,664   42,312   —   74,651
Total Commercial and Industrial   165,757   494,676   109,426   197,106   96,629   174,090   653,797   32,053   1,923,534
                            
Commercial Real Estate                           
Risk rating:                           
Pass   240,807   682,346   351,893   523,735   471,899   1,291,495   77,724   14,752   3,654,651
Special Mention   —   —   —   47,897   473   39,064   696   —   88,130
Substandard   —   —   —   —   1,757   15,280   4   —   17,041
Other (1)   —   —   —   —   —   158   —   —   158
Total Commercial Real Estate   240,807   682,346   351,893   571,632   474,129   1,345,997   78,424   14,752   3,759,980
                            
Construction                           
Risk rating:                           
Pass   6,160   167,645   118,526   136,209   112,919   89,172   19,470   —   650,101
Special Mention   —   —   —   244   705   353   —   —   1,302
Substandard   —   —   —   —   357   827   —   —   1,184
Other (1)   7,871   29,932   5,774   2,957   3,922   4,435   822   —   55,713
Total Construction   14,031   197,577   124,300   139,410   117,903   94,787   20,292   —   708,300
                            
Lease Financing                           
Risk rating:                           
Pass   3,913   31,974   57,192   45,698   8,813   69,286   —   —   216,876
Special Mention   —   479   2,672   1,360   12   20   —   —   4,543
Substandard   —   —   270   123   15   1,343   —   —   1,751
Total Lease Financing   3,913   32,453   60,134   47,181   8,840   70,649   —   —   223,170
                            
Total Commercial Lending $ 424,508 $ 1,407,052 $ 645,753 $ 955,329 $ 697,501 $ 1,685,523 $ 752,513 $ 46,805 $ 6,614,984


                            
                       Revolving   
                       Loans   
                       Converted   
  Term Loans Revolving to Term   
  Amortized Cost Basis by Origination Year Loans Loans   
(continued)                   Amortized Amortized   
(dollars in thousands) 2022 2021 2020 2019 2018 Prior Cost Basis Cost Basis Total
Residential Lending                           
Residential Mortgage                           
FICO:                           
740 and greater $ 185,434 $ 1,096,789 $ 615,500 $ 264,419 $ 183,368 $ 1,012,447 $ — $ — $ 3,357,957
680 - 739   26,812   128,172   72,766   44,872   25,913   159,950   —   —   458,485
620 - 679   3,088   13,196   12,304   5,995   5,021   39,145   —   —   78,749
550 - 619   —   2,267   1,570   720   731   8,847   —   —   14,135
Less than 550   2,116   228   60   —   82   4,098   —   —   6,584
No Score (3)   6,550   15,806   7,676   13,968   17,545   56,444   —   —   117,989
Other (2)   18,485   30,872   16,042   9,704   10,810   32,600   43   1,369   119,925
Total Residential Mortgage   242,485   1,287,330   725,918   339,678   243,470   1,313,531   43   1,369   4,153,824
                            
Home Equity Line                           
FICO:                           
740 and greater   —   —   —   —   —   —   705,570   1,892   707,462
680 - 739   —   —   —   —   —   —   147,290   3,202   150,492
620 - 679   —   —   —   —   —   —   39,370   2,129   41,499
550 - 619   —   —   —   —   —   —   10,310   1,426   11,736
Less than 550   —   —   —   —   —   —   1,482   494   1,976
No Score (3)   —   —   —   —   —   —   4,936   —   4,936
Total Home Equity Line   —   —   —   —   —   —   908,958   9,143   918,101
Total Residential Lending   242,485   1,287,330   725,918   339,678   243,470   1,313,531   909,001   10,512   5,071,925
                            
Consumer Lending                           
FICO:                           
740 and greater   60,821   145,550   74,436   68,970   46,731   24,261   112,298   217   533,284
680 - 739   26,319   87,933   50,976   48,120   28,498   18,340   68,407   647   329,240
620 - 679   6,222   39,016   19,677   25,307   16,453   14,473   30,462   1,038   152,648
550 - 619   292   7,159   7,314   11,776   8,904   8,485   10,352   1,129   55,411
Less than 550   53   2,003   3,445   5,732   2,939   3,089   3,166   471   20,898
No Score (3)   280   458   9   53   35   52   35,063   337   36,287
Other (2)   502   4,247   363   1,691   4   2,181   68,078   —   77,066
Total Consumer Lending   94,489   286,366   156,220   161,649   103,564   70,881   327,826   3,839   1,204,834
                            
Total Loans and Leases $ 761,482 $ 2,980,748 $ 1,527,891 $ 1,456,656 $ 1,044,535 $ 3,069,935 $ 1,989,340 $ 61,156 $ 12,891,743
  1. Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score.

  2. Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating.

  3. No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.


           
GAAP to Non-GAAP Reconciliation Table 12
  For the Three Months Ended  
  March 31,  December 31,  March 31,  
(dollars in thousands, except per share amounts) 2022     2021    2021    
Income Statement Data:          
Net income $ 57,719 $57,022 $57,693 
           
Average total stockholders' equity $ 2,547,865 $2,675,513 $2,727,701 
Less: average goodwill   995,492  995,492  995,492 
Average tangible stockholders' equity $ 1,552,373 $1,680,021 $1,732,209 
           
Average total assets $ 25,080,453 $25,650,505 $22,944,699 
Less: average goodwill   995,492  995,492  995,492 
Average tangible assets $ 24,084,961 $24,655,013 $21,949,207 
           
Return on average total stockholders' equity(1)   9.19%   8.46% 8.58%
Return on average tangible stockholders' equity (non-GAAP)(1)   15.08%   13.47% 13.51%
           
Return on average total assets(1)   0.93%   0.88% 1.02%
Return on average tangible assets (non-GAAP)(1)   0.97%   0.92% 1.07%
           


          
  As of As of As of 
  March 31,  December 31,  March 31,  
(dollars in thousands, except per share amounts) 2022    2021    2021 
Balance Sheet Data:          
Total stockholders' equity $ 2,285,149 $2,656,912 $2,683,630 
Less: goodwill   995,492  995,492  995,492 
Tangible stockholders' equity $ 1,289,657 $1,661,420 $1,688,138 
           
Total assets $ 25,042,720 $24,992,410 $23,497,596 
Less: goodwill   995,492  995,492  995,492 
Tangible assets $ 24,047,228 $23,996,918 $22,502,104 
           
Shares outstanding   127,686,307  127,502,472  129,749,890 
           
Total stockholders' equity to total assets   9.13%   10.63% 11.42%
Tangible stockholders' equity to tangible assets (non-GAAP)   5.36%   6.92% 7.50%
           
Book value per share $ 17.90 $20.84 $20.68 
Tangible book value per share (non-GAAP) $ 10.10 $13.03 $13.01 
  1. Annualized for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021.