First Hawaiian, Inc. Reports First Quarter 2025 Financial Results and Declares Dividend

First Hawaiian, Inc.

Wed, Apr 23, 2025, 6:00 AM 23 min read

“I’m pleased to report that First Hawaiian Bank started 2025 with a solid quarter. Retail deposits continued to grow, net interest income rose from the prior quarter, expenses were well managed, and credit quality remained strong,” said Bob Harrison, Chairman, President, and CEO. “Despite the current economic uncertainty, our customers can be confident in the strength of our balance sheet, our solid capital position, and our deep roots in the community, which provide the stability and reliability that define us.”

On April 22, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on May 30, 2025, to stockholders of record at the close of business on May 19, 2025.

First Quarter 2025 Highlights:

Net income of $59.2 million, or $0.47 per diluted share
Total loans and leases declined $115.2 million versus prior quarter
Total deposits declined $106.4 million versus prior quarter
Net interest margin increased 5 basis points to 3.08%
Recorded a $10.5 million provision for credit losses
Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet

Total assets were $23.7 billion at March 31, 2025 versus $23.8 billion at December 31, 2024.

Gross loans and leases were $14.3 billion as of March 31, 2025, a decrease of $115.2 million, or 0.8%, from $14.4 billion as of December 31, 2024.

Total deposits were $20.2 billion as of March 31, 2025, a decrease of $106.4 million, or 0.5%, from $20.3 billion as of December 31, 2024.

Net Interest Income

Net interest income for the first quarter of 2025 was $160.5 million, an increase of $1.8 million, or 1.1%, compared to $158.8 million for the prior quarter.

The net interest margin was 3.08% in the first quarter of 2025, an increase of 5 basis points compared to 3.03% in the prior quarter.

Provision Expense

During the quarter ended March 31, 2025, we recorded a $10.5 million provision for credit losses. In the quarter ended December 31, 2024, we recorded a $0.8 million negative provision for credit losses.

Noninterest Income

Noninterest income was $50.5 million in the first quarter of 2025, an increase of $21.1 million compared to noninterest income of $29.4 million in the prior quarter. Noninterest income in the fourth quarter of 2024 included a $26.2 million loss on the sale of investment securities.

Noninterest Expense

Noninterest expense was $123.6 million in the first quarter of 2025, a decrease of $0.6 million compared to noninterest expense of $124.1 million in the prior quarter.

The efficiency ratio was 58.2% and 65.5% for the quarters ended March 31, 2025 and December 31, 2024, respectively.

Taxes

The effective tax rate was 23.0% and 18.9% for the quarters ended March 31, 2025 and December 31, 2024, respectively.

Asset Quality

The allowance for credit losses was $166.6 million, or 1.17% of total loans and leases, as of March 31, 2025, compared to $160.4 million, or 1.11% of total loans and leases, as of December 31, 2024. The reserve for unfunded commitments was $33.3 million as of March 31, 2025, compared to $32.8 million as of December 31, 2024. Net charge-offs were $3.8 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended March 31, 2025, compared to net charge-offs of $3.4 million, or 0.09% of average loans and leases on an annualized basis, for the quarter ended December 31, 2024. Total non-performing assets were $20.2 million, or 0.14% of total loans and leases and other real estate owned, on March 31, 2025, compared to total non-performing assets of $20.7 million, or 0.14% of total loans and leases and other real estate owned, on December 31, 2024.

Capital

Total stockholders' equity was $2.6 billion on March 31, 2025 and December 31, 2024.

The tier 1 leverage, common equity tier 1 and total capital ratios were 9.01%, 12.93% and 14.17%, respectively, on March 31, 2025, compared with 9.14%, 12.80% and 13.99%, respectively, on December 31, 2024.

The Company repurchased 974 thousand shares of common stock at a total cost of $25.0 million under the stock repurchase program in the first quarter. The average cost was $25.66 per share repurchased.

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 by phone, please register via the following link:
https://register-conf.media-server.com/register/BI13d3259b1b3b46188926f83e1bbe1316, 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, 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 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)	2025			2024				2024
Operating Results:
Net interest income	$	160,526		$	158,753			$	154,427
Provision (benefit) for credit losses		10,500			(750	)			6,300
Noninterest income		50,477			29,376				51,371
Noninterest expense		123,560			124,143				128,813
Net income		59,248			52,496				54,220
Basic earnings per share		0.47			0.41				0.42
Diluted earnings per share		0.47			0.41				0.42
Dividends declared per share		0.26			0.26				0.26
Dividend payout ratio		55.32	%		63.41		%		61.90	%
Performance Ratios⁽¹⁾:
Net interest margin		3.08	%		3.03		%		2.91	%
Efficiency ratio		58.22	%		65.51		%		62.15	%
Return on average total assets		1.01	%		0.88		%		0.90	%
Return on average tangible assets (non-GAAP)⁽²⁾		1.05	%		0.92		%		0.94	%
Return on average total stockholders' equity		9.09	%		7.94		%		8.73	%
Return on average tangible stockholders' equity (non-GAAP)⁽²⁾		14.59	%		12.78		%		14.53	%
Average Balances:
Average loans and leases	$	14,309,998		$	14,276,107			$	14,312,563
Average earning assets		21,169,194			21,079,951				21,481,890
Average assets		23,890,459			23,795,735				24,187,207
Average deposits		20,354,040			20,249,573				20,571,930
Average stockholders' equity		2,641,978			2,629,600				2,496,840
Market Value Per Share:
Closing		24.44			25.95				21.96
High		28.28			28.80				23.12
Low		23.95			22.08				20.37


	As of			As of			As of
	March 31,			December 31,			March 31,
(dollars in thousands, except per share data)	2025			2024			2024
Balance Sheet Data:
Loans and leases	$	14,293,036		$	14,408,258		$	14,320,208
Total assets		23,744,958			23,828,186			24,279,186
Total deposits		20,215,816			20,322,216			20,669,481
Short-term borrowings		250,000			250,000			500,000
Total stockholders' equity		2,648,852			2,617,486			2,513,761

Per Share of Common Stock:
Book value	$	21.07		$	20.70		$	19.66
Tangible book value (non-GAAP)⁽²⁾		13.15			12.83			11.88

Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases		0.14	%		0.14	%		0.13	%
Allowance for credit losses for loans and leases / total loans and leases		1.17	%		1.11	%		1.12	%

Capital Ratios:
Common Equity Tier 1 Capital Ratio		12.93	%		12.80	%		12.55	%
Tier 1 Capital Ratio		12.93	%		12.80	%		12.55	%
Total Capital Ratio		14.17	%		13.99	%		13.75	%
Tier 1 Leverage Ratio		9.01	%		9.14	%		8.80	%
Total stockholders' equity to total assets		11.16	%		10.98	%		10.35	%
Tangible stockholders' equity to tangible assets (non-GAAP)⁽²⁾		7.27	%		7.10	%		6.52	%

Non-Financial Data:
Number of branches		48			48			50
Number of ATMs		273			273			275
Number of Full-Time Equivalent Employees		1,995			1,997			2,065

⁽¹⁾Except for the efficiency ratio, amounts are annualized for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024.

⁽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 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)	2025		2024			2024
Interest income
Loans and lease financing	$	192,102	$	198,347		$	199,844
Available-for-sale investment securities		13,150		12,767			14,546
Held-to-maturity investment securities		16,647		17,071			17,793
Other		13,251		11,977			12,769
Total interest income		235,150		240,162			244,952
Interest expense
Deposits		71,709		78,465			84,143
Short-term borrowings		2,599		2,685			5,953
Other		316		259			429
Total interest expense		74,624		81,409			90,525
Net interest income		160,526		158,753			154,427
Provision (benefit) for credit losses		10,500		(750	)		6,300
Net interest income after provision (benefit) for credit losses		150,026		159,503			148,127
Noninterest income
Service charges on deposit accounts		7,535		7,968			7,546
Credit and debit card fees		14,474		14,834			16,173
Other service charges and fees		12,167		13,132			9,904
Trust and investment services income		9,370		9,449			10,354
Bank-owned life insurance		4,371		5,713			4,286
Investment securities gains (losses), net		37		(26,171	)		—
Other		2,523		4,451			3,108
Total noninterest income		50,477		29,376			51,371
Noninterest expense
Salaries and employee benefits		60,104		59,003			59,262
Contracted services and professional fees		14,839		14,472			15,739
Occupancy		8,100		7,708			6,941
Equipment		13,871		14,215			13,413
Regulatory assessment and fees		3,823		3,745			8,120
Advertising and marketing		2,179		1,529			2,612
Card rewards program		7,919		7,926			8,508
Other		12,725		15,545			14,218
Total noninterest expense		123,560		124,143			128,813
Income before provision for income taxes		76,943		64,736			70,685
Provision for income taxes		17,695		12,240			16,465
Net income	$	59,248	$	52,496		$	54,220
Basic earnings per share	$	0.47	$	0.41		$	0.42
Diluted earnings per share	$	0.47	$	0.41		$	0.42
Basic weighted-average outstanding shares		126,281,802		127,350,626			127,707,354
Diluted weighted-average outstanding shares		127,166,932		128,167,502			128,217,689


Consolidated Balance Sheets	Table 3
(dollars in thousands, except share amount)	March 31, 2025			December 31, 2024			March 31, 2024
Assets
Cash and due from banks	$	240,738		$	258,057		$	202,121
Interest-bearing deposits in other banks		1,073,841			912,133			1,072,145
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,091,034 as of March 31, 2025, $2,190,448 as of December 31, 2024 and $2,466,109 as of March 31, 2024)		1,858,428			1,926,516			2,159,338
Held-to-maturity, at amortized cost (fair value: $3,250,275 as of March 31, 2025, $3,262,509 as of December 31, 2024 and $3,470,710 as of March 31, 2024)		3,724,908			3,790,650			3,988,011
Loans held for sale		1,547			—			—
Loans and leases		14,293,036			14,408,258			14,320,208
Less: allowance for credit losses		166,612			160,393			159,836
Net loans and leases		14,126,424			14,247,865			14,160,372

Premises and equipment, net		292,576			288,530			281,181
Accrued interest receivable		78,973			79,979			85,715
Bank-owned life insurance		495,567			491,890			484,193
Goodwill		995,492			995,492			995,492
Mortgage servicing rights		4,926			5,078			5,533
Other assets		851,538			831,996			845,085
Total assets	$	23,744,958		$	23,828,186		$	24,279,186
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing	$	13,330,265		$	13,347,068		$	13,620,928
Noninterest-bearing		6,885,551			6,975,148			7,048,553
Total deposits		20,215,816			20,322,216			20,669,481
Short-term borrowings		250,000			250,000			500,000
Retirement benefits payable		96,241			97,135			102,242
Other liabilities		534,049			541,349			493,702
Total liabilities		21,096,106			21,210,700			21,765,425

Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 142,139,353 / 125,692,598 shares as of March 31, 2025, issued/outstanding: 141,748,847 / 126,422,898 shares as of December 31, 2024 and issued/outstanding: 141,687,612 / 127,841,908 shares as of March 31, 2024)		1,421			1,417			1,417
Additional paid-in capital		2,564,408			2,560,380			2,551,488
Retained earnings		960,337			934,048			858,494
Accumulated other comprehensive loss, net		(433,769	)		(463,994	)		(523,780	)
Treasury stock (16,446,755 shares as of March 31, 2025, 15,325,949 shares as of December 31, 2024 and 13,845,704 shares as of March 31, 2024)		(443,545	)		(414,365	)		(373,858	)
Total stockholders' equity		2,648,852			2,617,486			2,513,761
Total liabilities and stockholders' equity	$	23,744,958		$	23,828,186		$	24,279,186


Average Balances and Interest Rates																	Table 4
	Three Months Ended						Three Months Ended						Three Months Ended
	March 31, 2025						December 31, 2024						March 31, 2024
	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	$	1,171.1	$	12.8	4.44	%	$	948.9	$	11.3	4.75	%	$	858.6	$	11.6	5.45	%
Available-for-Sale Investment Securities
Taxable		1,891.4		13.2	2.79			1,987.7		12.7	2.56			2,210.6		14.5	2.63
Non-Taxable		1.4		—	5.52			1.4		—	5.30			1.8		—	5.61
Held-to-Maturity Investment Securities
Taxable		3,164.0		13.6	1.72			3,224.8		13.9	1.72			3,416.4		14.6	1.71
Non-Taxable		599.0		3.7	2.51			601.7		3.9	2.56			603.4		4.0	2.65
Total Investment Securities		5,655.8		30.5	2.16			5,815.6		30.5	2.10			6,232.2		33.1	2.13
Loans Held for Sale		0.3		—	6.28			1.3		—	5.75			0.7		—	6.92
Loans and Leases⁽¹⁾
Commercial and industrial		2,196.8		33.6	6.20			2,157.8		35.2	6.50			2,164.9		37.2	6.92
Commercial real estate		4,420.1		66.5	6.10			4,333.1		68.9	6.33			4,323.5		70.1	6.53
Construction		937.0		15.4	6.67			990.7		17.4	6.99			924.7		17.4	7.55
Residential:
Residential mortgage		4,150.3		40.9	3.94			4,183.5		40.8	3.90			4,264.1		42.0	3.94
Home equity line		1,149.8		13.1	4.61			1,157.1		13.3	4.55			1,172.1		12.0	4.13
Consumer		1,019.5		18.9	7.53			1,033.2		19.0	7.29			1,083.5		18.1	6.71
Lease financing		436.5		4.3	3.99			420.7		4.4	4.18			379.8		3.7	3.91
Total Loans and Leases		14,310.0		192.7	5.44			14,276.1		199.0	5.55			14,312.6		200.5	5.63
Other Earning Assets		32.0		0.4	5.48			38.1		0.7	6.73			77.8		1.2	5.90
Total Earning Assets⁽²⁾		21,169.2		236.4	4.51			21,080.0		241.5	4.56			21,481.9		246.4	4.61
Cash and Due from Banks		235.9						226.2						244.3
Other Assets		2,485.4						2,489.5						2,461.0
Total Assets	$	23,890.5					$	23,795.7					$	24,187.2

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	6,232.5	$	21.3	1.38	%	$	5,940.3	$	21.1	1.42	%	$	6,059.7	$	23.4	1.56	%
Money Market		3,922.2		23.0	2.38			4,053.6		26.6	2.61			3,944.9		28.8	2.94
Time		3,317.1		27.4	3.36			3,362.0		30.8	3.64			3,325.3		31.9	3.86
Total Interest-Bearing Deposits		13,471.8		71.7	2.16			13,355.9		78.5	2.34			13,329.9		84.1	2.54
Other Short-Term Borrowings		250.0		2.6	4.22			250.0		2.7	4.27			500.0		6.0	4.79
Other Interest-Bearing Liabilities		27.5		0.3	4.67			25.3		0.2	4.07			33.0		0.4	5.22
Total Interest-Bearing Liabilities		13,749.3		74.6	2.20			13,631.2		81.4	2.38			13,862.9		90.5	2.63
Net Interest Income			$	161.8					$	160.1					$	155.9
Interest Rate Spread⁽³⁾					2.31	%					2.18	%					1.98	%
Net Interest Margin⁽⁴⁾					3.08	%					3.03	%					2.91	%
Noninterest-Bearing Demand Deposits		6,882.2						6,893.7						7,242.0
Other Liabilities		617.0						641.2						585.5
Stockholders' Equity		2,642.0						2,629.6						2,496.8
Total Liabilities and Stockholders' Equity	$	23,890.5					$	23,795.7					$	24,187.2

⁽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 $1.2 million, $1.4 million and $1.5 million for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

⁽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 March 31, 2025, December 31, 2024 and March 31, 2024, on a fully taxable-equivalent basis, divided by average total earning assets.

Analysis of Change in Net Interest Income

Table 5

Three Months Ended March 31, 2025

Compared to December 31, 2024

(dollars in millions)

Volume

Rate

Total⁽¹⁾

Change in Interest Income:

Interest-Bearing Deposits in Other Banks

2.3

(0.8

)

1.5

Available-for-Sale Investment Securities

Taxable

(0.6

)

1.1

0.5

Held-to-Maturity Investment Securities

Taxable

(0.3

)

—

(0.3

)

Non-Taxable

—

(0.2

)

(0.2

)

Total Investment Securities

(0.9

)

0.9

—

Loans and Leases

Commercial and industrial

0.5

(2.1

)

(1.6

)

Commercial real estate

0.9

(3.3

)

(2.4

)

Construction

(1.1

)

(0.9

)

(2.0

)

Residential:

Residential mortgage

(0.3

)

0.4

0.1

Home equity line

(0.2

)

—

(0.2

)

Consumer

(0.4

)

0.3

(0.1

)

Lease financing

0.1

(0.2

)

(0.1

)

Total Loans and Leases

(0.5

)

(5.8

)

(6.3

)

Other Earning Assets

(0.1

)

(0.2

)

(0.3

)

Total Change in Interest Income

0.8

(5.9

)

(5.1

)

Change in Interest Expense:

Interest-Bearing Deposits

Savings

0.9

(0.7

)

0.2

Money Market

(1.0

)

(2.6

)

(3.6

)

Time

(0.5

)

(2.9

)

(3.4

)

Total Interest-Bearing Deposits

(0.6

)

(6.2

)

(6.8

)

Other Short-Term Borrowings

—

(0.1

)

(0.1

)

Other Interest-Bearing Liabilities

—

0.1

Total Change in Interest Expense

(0.6

)

(6.2

)

(6.8

)

Change in Net Interest Income

1.4

0.3

1.7

⁽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 6

Three Months Ended March 31, 2025

Compared to March 31, 2024

(dollars in millions)

Volume

Rate

Total ⁽¹⁾

Change in Interest Income:

Interest-Bearing Deposits in Other Banks

3.7

(2.5

)

1.2

Available-for-Sale Investment Securities

Taxable

(2.2

)

0.9

(1.3

)

Held-to-Maturity Investment Securities

Taxable

(1.1

)

0.1

(1.0

)

Non-Taxable

—

(0.3

)

(0.3

)

Total Investment Securities

(3.3

)

0.7

(2.6

)

Loans and Leases

Commercial and industrial

0.5

(4.1

)

(3.6

)

Commercial real estate

1.5

(5.1

)

(3.6

)

Construction

0.2

(2.2

)

(2.0

)

Residential:

Residential mortgage

(1.1

)

—

(1.1

)

Home equity line

(0.2

)

1.3

1.1

Consumer

(1.2

)

2.0

0.8

Lease financing

0.5

0.1

0.6

Total Loans and Leases

0.2

(8.0

)

(7.8

)

Other Earning Assets

(0.7

)

(0.1

)

(0.8

)

Total Change in Interest Income

(0.1

)

(9.9

)

(10.0

)

Change in Interest Expense:

Interest-Bearing Deposits

Savings

0.7

(2.8

)

(2.1

)

Money Market

(0.2

)

(5.6

)

(5.8

)

Time

(0.1

)

(4.4

)

(4.5

)

Total Interest-Bearing Deposits

0.4

(12.8

)

(12.4

)

Other Short-Term Borrowings

(2.7

)

(0.7

)

(3.4

)

Other Interest-Bearing Liabilities

(0.1

)

—

(0.1

)

Total Change in Interest Expense

(2.4

)

(13.5

)

(15.9

)

Change in Net Interest Income

2.3

3.6

5.9

⁽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.


Loans and Leases						Table 7
	March 31,		December 31,		March 31,
(dollars in thousands)	2025		2024		2024
Commercial and industrial	$	2,261,394	$	2,247,428	$	2,189,875
Commercial real estate		4,367,433		4,463,992		4,301,300
Construction		954,072		918,326		972,517
Residential:
Residential mortgage		4,129,518		4,168,154		4,242,502
Home equity line		1,144,895		1,151,739		1,165,778
Total residential		5,274,413		5,319,893		5,408,280
Consumer		998,325		1,023,969		1,054,227
Lease financing		437,399		434,650		394,009
Total loans and leases	$	14,293,036	$	14,408,258	$	14,320,208


Deposits						Table 8
	March 31,		December 31,		March 31,
(dollars in thousands)	2025		2024		2024
Demand	$	6,885,551	$	6,975,148	$	7,048,553
Savings		6,110,796		6,021,364		6,277,679
Money Market		3,865,203		4,027,334		4,059,204
Time		3,354,266		3,298,370		3,284,045
Total Deposits	$	20,215,816	$	20,322,216	$	20,669,481


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)	2025		2024		2024
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial	$	—	$	329	$	942
Commercial real estate		216		411		2,953
Construction		375		—		—
Total Commercial Loans		591		740		3,895
Residential Loans:
Residential mortgage		12,809		12,768		7,777
Home equity line		6,788		7,171		6,345
Total Residential Loans		19,597		19,939		14,122
Total Non-Accrual Loans and Leases		20,188		20,679		18,017
Total Non-Performing Assets	$	20,188	$	20,679	$	18,017

Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial	$	740	$	1,432	$	529
Construction		—		536		606
Total Commercial Loans		740		1,968		1,135
Residential mortgage		1,008		1,317		359
Consumer		2,554		2,734		2,126
Total Accruing Loans and Leases Past Due 90 Days or More	$	4,302	$	6,019	$	3,620

Total Loans and Leases	$	14,293,036	$	14,408,258	$	14,320,208


Allowance for Credit Losses and Reserve for Unfunded Commitments	Table 10
	For the Three Months Ended
	March 31,				December 31,				March 31,
(dollars in thousands)	2025				2024				2024
Balance at Beginning of Period	$	193,240			$	197,397			$	192,138
Loans and Leases Charged-Off
Commercial and industrial		(1,459	)			(851	)			(909	)
Home equity line		(14	)			—				—
Consumer		(5,025	)			(4,774	)			(4,854	)
Total Loans and Leases Charged-Off		(6,498	)			(5,625	)			(5,763	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial		403				298				211
Commercial real estate		251				—				—
Total Commercial Loans		654				298				211
Residential Loans:
Residential mortgage		20				30				30
Home equity line		64				32				44
Total Residential Loans		84				62				74
Consumer		1,979				1,858				1,689
Total Recoveries on Loans and Leases Previously Charged-Off		2,717				2,218				1,974
Net Loans and Leases Charged-Off		(3,781	)			(3,407	)			(3,789	)
Provision (Benefit) for Credit Losses		10,500				(750	)			6,300
Balance at End of Period	$	199,959			$	193,240			$	194,649
Components:
Allowance for Credit Losses	$	166,612			$	160,393			$	159,836
Reserve for Unfunded Commitments		33,347				32,847				34,813
Total Allowance for Credit Losses and Reserve for Unfunded Commitments	$	199,959			$	193,240			$	194,649
Average Loans and Leases Outstanding	$	14,309,998			$	14,276,107			$	14,312,563
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding⁽¹⁾		0.11		%		0.09		%		0.11		%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding		1.17		%		1.11		%		1.12		%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases		8.25x				7.76x				8.87x

⁽¹⁾Annualized for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024.

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

Amortized

(dollars in thousands)

2025

2024

2023

2022

2021

Prior

Cost Basis

Total

Commercial Lending

Commercial and Industrial

Risk rating:

Pass

19,578

173,435

68,842

172,494

220,547

268,053

1,148,880

20,009

2,091,838

Special Mention

364

916

2,250

3,353

1,229

41,972

—

50,142

Substandard

—

7,948

1,238

24,836

—

34,048

Other ⁽¹⁾

8,099

12,828

7,983

6,045

2,255

2,105

46,051

—

85,366

Total Commercial and Industrial

28,041

187,179

79,075

189,840

222,886

272,625

1,261,739

20,009

2,261,394

Current period gross charge-offs

—

179

356

779

—

1,459

Commercial Real Estate

Risk rating:

Pass

105,358

291,863

384,491

796,202

632,631

1,889,571

100,071

7,645

4,207,832

Special Mention

—

8,979

2,235

7,483

41,397

22,702

11,747

—

94,543

Substandard

—

54,918

1,007

9,003

—

64,928

Other ⁽¹⁾

—

130

—

130

Total Commercial Real Estate

105,358

300,842

386,726

858,603

675,035

1,921,406

111,818

7,645

4,367,433

Current period gross charge-offs

—

Construction

Risk rating:

Pass

4,610

122,410

198,780

353,108

162,361

52,233

22,934

—

916,436

Special Mention

—

147

—

147

Other ⁽¹⁾

522

14,134

8,910

8,500

1,553

3,177

693

—

37,489

Total Construction

5,132

136,544

207,690

361,608

163,914

55,557

23,627

—

954,072

Current period gross charge-offs

—

Lease Financing

Risk rating:

Pass

69,731

94,965

99,259

56,228

13,304

98,262

—

431,749

Special Mention

—

226

—

195

—

421

Substandard

—

4,411

526

292

—

5,229

Total Lease Financing

69,731

99,376

100,011

56,520

13,499

98,262

—

437,399

Current period gross charge-offs

—

Total Commercial Lending

208,262

723,941

773,502

1,466,571

1,075,334

2,347,850

1,397,184

27,654

8,020,298

Current period gross charge-offs

—

179

356

779

—

1,459

(continued)


															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
(continued)													Amortized		Amortized
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Cost Basis		Cost Basis		Total
Residential Lending
Residential Mortgage
FICO:
740 and greater	$	41,949	$	161,436	$	183,292	$	482,310	$	933,384	$	1,578,605	$	—	$	—	$	3,380,976
680 - 739		4,088		18,218		34,761		65,347		101,230		192,602		—		—		416,246
620 - 679		734		1,714		3,922		23,196		18,793		51,826		—		—		100,185
550 - 619		—		—		817		6,495		7,696		17,224		—		—		32,232
Less than 550		—		—		731		771		2,253		7,503		—		—		11,258
No Score ⁽³⁾		—		13,199		6,330		16,757		9,837		50,065		—		—		96,188
Other ⁽²⁾		759		8,020		11,914		16,416		14,182		37,781		3,361		—		92,433
Total Residential Mortgage		47,530		202,587		241,767		611,292		1,087,375		1,935,606		3,361		—		4,129,518
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		911,857		1,404		913,261
680 - 739		—		—		—		—		—		—		169,131		1,684		170,815
620 - 679		—		—		—		—		—		—		39,262		592		39,854
550 - 619		—		—		—		—		—		—		12,077		485		12,562
Less than 550		—		—		—		—		—		—		6,645		486		7,131
No Score ⁽³⁾		—		—		—		—		—		—		1,272		—		1,272
Total Home Equity Line		—		—		—		—		—		—		1,140,244		4,651		1,144,895
Current period gross charge-offs		—		—		—		—		—		—		14		—		14

Total Residential Lending	$	47,530	$	202,587	$	241,767	$	611,292	$	1,087,375	$	1,935,606	$	1,143,605	$	4,651	$	5,274,413
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	14	$	—	$	14

Consumer Lending
FICO:
740 and greater		32,634		80,861		58,623		73,919		37,183		15,253		93,415		112		392,000
680 - 739		19,668		66,839		41,621		38,860		18,814		9,295		84,783		515		280,395
620 - 679		6,692		31,051		16,155		17,379		8,533		6,406		50,655		793		137,664
550 - 619		596		9,333		6,584		9,663		5,434		4,471		16,458		849		53,388
Less than 550		280		3,004		4,421		5,131		3,263		2,741		5,399		508		24,747
No Score ⁽³⁾		750		821		95		30		—		18		35,238		194		37,146
Other ⁽²⁾		201		—		—		257		600		1,044		70,883		—		72,985
Total Consumer Lending	$	60,821	$	191,909	$	127,499	$	145,239	$	73,827	$	39,228	$	356,831	$	2,971	$	998,325
Current period gross charge-offs	$	—	$	660	$	481	$	585	$	270	$	809	$	1,883	$	337	$	5,025

Total Loans and Leases	$	316,613	$	1,118,437	$	1,142,768	$	2,223,102	$	2,236,536	$	4,322,684	$	2,897,620	$	35,276	$	14,293,036
Current period gross charge-offs	$	—	$	703	$	576	$	764	$	626	$	1,588	$	1,904	$	337	$	6,498

⁽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 March 31, 2025, 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 March 31, 2025, 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 12
	For the Three Months Ended
	March 31,			December 31,			March 31,
(dollars in thousands)	2025			2024			2024
Income Statement Data:
Net income	$	59,248		$	52,496		$	54,220

Average total stockholders' equity	$	2,641,978		$	2,629,600		$	2,496,840
Less: average goodwill		995,492			995,492			995,492
Average tangible stockholders' equity	$	1,646,486		$	1,634,108		$	1,501,348

Average total assets	$	23,890,459		$	23,795,735		$	24,187,207
Less: average goodwill		995,492			995,492			995,492
Average tangible assets	$	22,894,967		$	22,800,243		$	23,191,715

Return on average total stockholders' equity⁽¹⁾		9.09	%		7.94	%		8.73	%
Return on average tangible stockholders' equity (non-GAAP)⁽¹⁾		14.59	%		12.78	%		14.53	%

Return on average total assets⁽¹⁾		1.01	%		0.88	%		0.90	%
Return on average tangible assets (non-GAAP)⁽¹⁾		1.05	%		0.92	%		0.94	%



	As of			As of			As of
	March 31,			December 31,			March 31,
(dollars in thousands, except per share amounts)	2025			2024			2024
Balance Sheet Data:
Total stockholders' equity	$	2,648,852		$	2,617,486		$	2,513,761
Less: goodwill		995,492			995,492			995,492
Tangible stockholders' equity	$	1,653,360		$	1,621,994		$	1,518,269

Total assets	$	23,744,958		$	23,828,186		$	24,279,186
Less: goodwill		995,492			995,492			995,492
Tangible assets	$	22,749,466		$	22,832,694		$	23,283,694

Shares outstanding		125,692,598			126,422,898			127,841,908

Total stockholders' equity to total assets		11.16	%		10.98	%		10.35	%
Tangible stockholders' equity to tangible assets (non-GAAP)		7.27	%		7.10	%		6.52	%

Book value per share	$	21.07		$	20.70		$	19.66
Tangible book value per share (non-GAAP)	$	13.15		$	12.83		$	11.88

⁽¹⁾Annualized for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024.

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