FHB First Hawaiian Inc

First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended March 31, 2023.

“Our first quarter results reflect the strength of our balance sheet, the value of our customer relationships and our commitment to the communities we serve,” said Bob Harrison, Chairman, President and CEO. “Our financial results were solid, we grew capital and our credit quality metrics remained excellent. We remain well positioned to serve our customers and the community.”

On April 26, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on June 2, 2023, to stockholders of record at the close of business on May 22, 2023.  

First Quarter 2023 Highlights:

• Net income of $66.8 million, or $0.52 per diluted share
• Total loans and leases increased $129.3 million versus prior quarter
• Total deposits decreased $407.5 million versus prior quarter
• Net interest margin decreased 4 basis points to 3.11%
• Recorded a $8.8 million provision for credit losses
• Board of Directors declared a quarterly dividend of $0.26 per share

Balance SheetTotal assets were $24.9 billion as of March 31, 2023, compared to $24.6 billion as of December 31, 2022.

Gross loans and leases were $14.2 billion as of March 31, 2023, an increase of $129.3 million, or 0.9%, from $14.1 billion as of December 31, 2022.

Total deposits were $21.3 billion as of March 31, 2023, a decrease of $407.5 million, or 1.9%, from $21.7 billion as of December 31, 2022.  

Net Interest IncomeNet interest income for the first quarter of 2023 was $167.2 million, a decrease of $4.5 million, or 2.6%, compared to $171.8 million for the prior quarter.  

The net interest margin was 3.11% in the first quarter of 2023, a decrease of 4 basis points compared to 3.15% in the prior quarter.

Provision ExpenseDuring the quarter ended March 31, 2023, we recorded a $8.8 million provision for credit losses. In the quarter ended December 31, 2022, we recorded a $3.0 million provision for credit losses.

Noninterest IncomeNoninterest income was $49.0 million in the first quarter of 2023, an increase of $0.9 million compared to noninterest income of $48.2 million in the prior quarter.     

Noninterest ExpenseNoninterest expense was $118.6 million in the first quarter of 2023, an increase of $4.6 million compared to noninterest expense of $113.9 million in the prior quarter.  

The efficiency ratio was 54.5% and 51.5% for the quarters ended March 31, 2023 and December 31, 2022, respectively.

TaxesThe effective tax rate was 24.8% and 22.8% for the quarters ended March 31, 2023 and December 31, 2022, respectively.

Asset QualityThe allowance for credit losses was $147.1 million, or 1.03% of total loans and leases, as of March 31, 2023, compared to $143.9 million, or 1.02% of total loans and leases, as of December 31, 2022. The reserve for unfunded commitments was $36.2 million as of March 31, 2023, compared to $33.8 million as of December 31, 2022.   Net charge-offs were $3.2 million, or 0.09% of average loans and leases on an annualized basis, for the quarter ended March 31, 2023, compared to net charge-offs of $3.5 million, or 0.10% of average loans and leases on an annualized basis, for the quarter ended December 31, 2022. Total non-performing assets were $13.8 million, or 0.10% of total loans and leases and other real estate owned, on March 31, 2023, compared to total non-performing assets of $12.0 million, or 0.09% of total loans and leases and other real estate owned, on December 31, 2022.

CapitalTotal stockholders' equity was $2.3 billion on March 31, 2023 and December 31, 2022.    

The tier 1 leverage, common equity tier 1 and total capital ratios were 8.26%, 11.97%, and 13.09%, respectively, on March 31, 2023, compared with 8.11%, 11.82%, and 12.92%, respectively, on December 31, 2022.

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 InformationFirst 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.vevent.com/register/BI2a46e3679b7649d98326df98e6359e6f, 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 StatementsThis 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, 2022.

Use of Non-GAAP Financial MeasuresReturn 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) 525-6268khaseyama@fhb.com

Media Contact:Lindsay Chambers(808) 525-6254lchambers@fhb.com

Financial Highlights		Table 1
		For the Three Months Ended
		March 31,				December 31,				March 31,
(dollars in thousands, except per share data)		2023				2022				2022
Operating Results:
Net interest income		$	167,247			$	171,794			$	133,872
Provision for credit losses			8,800				2,956				(5,747	)
Noninterest income			49,023				48,151				41,380
Noninterest expense			118,567				113,922				104,042
Net income			66,818				79,588				57,719
Basic earnings per share			0.52				0.62				0.45
Diluted earnings per share			0.52				0.62				0.45
Dividends declared per share			0.26				0.26				0.26
Dividend payout ratio			50.00		%		41.94		%		57.78		%
Performance Ratios(1):
Net interest margin			3.11		%		3.15		%		2.42		%
Efficiency ratio			54.46		%		51.47		%		59.04		%
Return on average total assets			1.10		%		1.28		%		0.93		%
Return on average tangible assets (non-GAAP)(2)			1.15		%		1.34		%		0.97		%
Return on average total stockholders' equity			11.78		%		14.27		%		9.19		%
Return on average tangible stockholders' equity (non-GAAP)(2)			20.78		%		25.93		%		15.08		%
Average Balances:
Average loans and leases		$	14,079,337			$	13,876,136			$	12,819,612
Average earning assets			21,873,259				21,856,135				22,463,209
Average assets			24,548,124				24,575,648				25,080,453
Average deposits			21,468,624				21,725,177				21,960,819
Average stockholders' equity			2,299,422				2,213,030				2,547,865
Market Value Per Share:
Closing			20.63				26.04				27.89
High			28.28				27.16				31.16
Low			19.68				24.06				26.93

		As of				As of				As of
		March 31,				December 31,				March 31,
(dollars in thousands, except per share data)		2023				2022				2022
Balance Sheet Data:
Loans and leases		$	14,221,272			$	14,092,012			$	12,891,743
Total assets			24,884,207				24,577,223				25,042,720
Total deposits			21,281,500				21,689,029				22,270,430
Short-term borrowings			250,000				75,000				—
Long-term borrowings			500,000				—				—
Total stockholders' equity			2,329,012				2,269,005				2,285,149
Per Share of Common Stock:
Book value		$	18.26			$	17.82			$	17.90
Tangible book value (non-GAAP)(2)			10.45				10.00				10.10
Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases			0.10		%		0.08		%		0.07		%
Allowance for credit losses for loans and leases / total loans and leases			1.03		%		1.02		%		1.17		%
Capital Ratios:
Common Equity Tier 1 Capital Ratio			11.97		%		11.82		%		12.27		%
Tier 1 Capital Ratio			11.97		%		11.82		%		12.27		%
Total Capital Ratio			13.09		%		12.92		%		13.48		%
Tier 1 Leverage Ratio			8.26		%		8.11		%		7.50		%
Total stockholders' equity to total assets			9.36		%		9.23		%		9.13		%
Tangible stockholders' equity to tangible assets (non-GAAP)(2)			5.58		%		5.40		%		5.36		%
Non-Financial Data:
Number of branches			51				51				51
Number of ATMs			296				294				298
Number of Full-Time Equivalent Employees			2,100				2,063				2,022

________________________(1)   Except for the efficiency ratio, amounts are annualized for the three months ended March 31, 2023, December 31, 2022 and March 31, 2022.

(2)   Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 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)		2023				2022				2022
Interest income
Loans and lease financing		$	172,339			$	159,526			$	103,732
Available-for-sale investment securities			18,688				18,714				32,107
Held-to-maturity investment securities			18,957				19,137				—
Other			3,561				3,088				782
Total interest income			213,545				200,465				136,621
Interest expense
Deposits			43,284				28,202				2,749
Short-term and long-term borrowings			2,563				469				—
Other			451				—				—
Total interest expense			46,298				28,671				2,749
Net interest income			167,247				171,794				133,872
Provision for credit losses			8,800				2,956				(5,747	)
Net interest income after provision for credit losses			158,447				168,838				139,619
Noninterest income
Service charges on deposit accounts			7,231				7,376				7,501
Credit and debit card fees			16,298				16,376				14,850
Other service charges and fees			9,162				9,185				9,654
Trust and investment services income			9,614				9,023				8,883
Bank-owned life insurance			5,120				2,865				(417	)
Other			1,598				3,326				909
Total noninterest income			49,023				48,151				41,380
Noninterest expense
Salaries and employee benefits			56,032				49,629				48,226
Contracted services and professional fees			16,313				17,638				17,147
Occupancy			7,782				8,175				7,410
Equipment			9,736				9,984				5,977
Regulatory assessment and fees			3,836				2,591				2,224
Advertising and marketing			1,994				2,072				2,028
Card rewards program			8,085				8,681				6,883
Other			14,789				15,152				14,147
Total noninterest expense			118,567				113,922				104,042
Income before provision for income taxes			88,903				103,067				76,957
Provision for income taxes			22,085				23,479				19,238
Net income		$	66,818			$	79,588			$	57,719
Basic earnings per share		$	0.52			$	0.62			$	0.45
Diluted earnings per share		$	0.52			$	0.62			$	0.45
Basic weighted-average outstanding shares			127,453,820				127,356,795				127,556,242
Diluted weighted-average outstanding shares			128,033,812				127,894,773				128,121,126

Consolidated Balance Sheets		Table 3
		March 31,				December 31,				March 31,
(dollars in thousands)		2023				2022				2022
Assets
Cash and due from banks		$	253,705			$	297,502			$	274,022
Interest-bearing deposits in other banks			611,887				229,122				1,352,138
Investment securities:
Available-for-sale, at fair value (amortized cost: $3,427,708 as of March 31, 2023, $3,549,599 as of December 31, 2022 and $8,733,170 as of March 31, 2022)			3,054,280				3,151,133				8,062,384
Held-to-maturity, at amortized cost (fair value: $3,824,478 as of March 31, 2023, $3,814,822 as of December 31, 2022 and nil as of March 31, 2022)			4,261,361				4,320,639				—
Loans and leases			14,221,272				14,092,012				12,891,743
Less: allowance for credit losses			147,122				143,900				150,280
Net loans and leases			14,074,150				13,948,112				12,741,463
Premises and equipment, net			278,121				280,355				315,766
Other real estate owned and repossessed personal property			91				91				—
Accrued interest receivable			79,200				78,194				61,561
Bank-owned life insurance			473,255				473,067				471,401
Goodwill			995,492				995,492				995,492
Mortgage servicing rights			6,299				6,562				7,650
Other assets			796,366				796,954				760,843
Total assets		$	24,884,207			$	24,577,223			$	25,042,720
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing		$	12,579,155			$	12,824,383			$	12,504,821
Noninterest-bearing			8,702,345				8,864,646				9,765,609
Total deposits			21,281,500				21,689,029				22,270,430
Short-term borrowings			250,000				75,000				—
Long-term borrowings			500,000				—				—
Retirement benefits payable			101,622				102,577				134,323
Other liabilities			422,073				441,612				352,818
Total liabilities			22,555,195				22,308,218				22,757,571
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,291,086 / 127,573,680 shares as of March 31, 2023, issued/outstanding: 140,963,918 / 127,363,327 shares as of December 31, 2022 and issued/outstanding: 140,875,595 / 127,686,307 shares as of March 31, 2022)			1,413				1,410				1,409
Additional paid-in capital			2,540,653				2,538,336				2,530,795
Retained earnings			769,791				736,544				628,642
Accumulated other comprehensive loss, net			(611,679	)			(639,254	)			(517,502	)
Treasury stock (13,717,406 shares as of March 31, 2023, 13,600,591 shares as of December 31, 2022 and 13,189,288 shares as of March 31, 2022)			(371,166	)			(368,031	)			(358,195	)
Total stockholders' equity			2,329,012				2,269,005				2,285,149
Total liabilities and stockholders' equity		$	24,884,207			$	24,577,223			$	25,042,720

Average Balances and Interest Rates																		Table 4
		Three Months Ended								Three Months Ended								Three Months Ended
		March 31, 2023								December 31, 2022								March 31, 2022
		Average			Income/			Yield/		Average			Income/			Yield/		Average			Income/			Yield/
(dollars in millions)		Balance			Expense			Rate		Balance			Expense			Rate		Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	299.6		$	3.4		4.60	%	$	321.3		$	2.9		3.64	%	$	1,138.3		$	0.6		0.20	%
Available-for-Sale Investment Securities
Taxable			3,081.4			18.4		2.39			3,180.8			18.3		2.30			7,800.3			29.2		1.50
Non-Taxable			31.1			0.4		5.55			37.9			0.5		5.42			636.7			3.6		2.32
Held-to-Maturity Investment Securities
Taxable			3,683.8			15.7		1.70			3,754.9			15.8		1.69			—			—		—
Non-Taxable			612.2			4.1		2.74			613.4			4.2		2.69			—			—		—
Total Investment Securities			7,408.5			38.6		2.09			7,587.0			38.8		2.04			8,437.0			32.8		1.56
Loans Held for Sale			0.1			—		5.53			0.1			—		6.50			1.2			—		2.02
Loans and Leases(1)
Commercial and industrial			2,192.9			32.4		5.98			2,126.3			28.1		5.24			1,973.1			14.6		3.01
Commercial real estate			4,105.7			58.3		5.76			4,116.8			53.9		5.19			3,632.2			25.8		2.88
Construction			873.9			14.7		6.83			804.4			11.8		5.83			766.9			5.7		3.03
Residential:
Residential mortgage			4,307.0			38.4		3.57			4,280.6			38.1		3.56			4,111.0			34.8		3.38
Home equity line			1,074.9			8.7		3.27			1,029.7			8.1		3.10			891.6			5.5		2.48
Consumer			1,213.5			17.2		5.75			1,220.9			17.1		5.55			1,218.6			15.6		5.19
Lease financing			311.4			3.1		4.10			297.4			2.9		3.92			226.2			1.9		3.42
Total Loans and Leases			14,079.3			172.8		4.96			13,876.1			160.0		4.58			12,819.6			103.9		3.27
Other Earning Assets			85.8			0.2		0.76			71.6			0.2		0.80			67.1			0.2		1.31
Total Earning Assets(2)			21,873.3			215.0		3.97			21,856.1			201.9		3.67			22,463.2			137.5		2.47
Cash and Due from Banks			286.1								286.4								292.1
Other Assets			2,388.7								2,433.1								2,325.2
Total Assets		$	24,548.1							$	24,575.6							$	25,080.5
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings		$	6,354.3		$	13.9		0.89	%	$	6,455.5		$	10.3		0.63	%		6,668.4		$	0.5		0.03	%
Money Market			3,853.5			14.3		1.50			4,012.9			9.8		0.97			4,048.9			0.5		0.05
Time			2,515.6			15.1		2.44			2,163.2			8.1		1.48			1,748.5			1.7		0.39
Total Interest-Bearing Deposits			12,723.4			43.3		1.38			12,631.6			28.2		0.89			12,465.8			2.7		0.09
Federal Funds Purchased			67.1			0.7		4.43			45.5			0.5		4.09			—			—		—
Other Short-Term Borrowings			52.8			0.7		5.02			—			—		—			—			—		—
Long-Term Borrowings			105.5			1.2		4.52			—			—		—			—			—		—
Other Interest-Bearing Liabilities			42.8			0.4		4.27			—			—		—			—			—		—
Total Interest-Bearing Liabilities			12,991.6			46.3		1.45			12,677.1			28.7		0.90			12,465.8			2.7		0.09
Net Interest Income					$	168.7							$	173.2							$	134.8
Interest Rate Spread								2.52	%							2.77	%							2.38	%
Net Interest Margin								3.11	%							3.15	%							2.42	%
Noninterest-Bearing Demand Deposits			8,745.2								9,093.6								9,495.0
Other Liabilities			511.9								591.9								571.8
Stockholders' Equity			2,299.4								2,213.0								2,547.9
Total Liabilities and Stockholders' Equity		$	24,548.1							$	24,575.6							$	25,080.5

________________________(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 $1.4 million, $1.4 million and $1.0 million for the three months ended March 31, 2023, December 31, 2022 and March 31, 2022, respectively.

Analysis of Change in Net Interest Income		Table 5
		Three Months Ended March 31, 2023
		Compared to December 31, 2022
(dollars in millions)		Volume				Rate				Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	(0.2	)		$	0.7			$	0.5
Available-for-Sale Investment Securities
Taxable			(0.6	)			0.7				0.1
Non-Taxable			(0.1	)			—				(0.1	)
Held-to-Maturity Investment Securities
Taxable			(0.2	)			0.1				(0.1	)
Non-Taxable			(0.1	)			—				(0.1	)
Total Investment Securities			(1.0	)			0.8				(0.2	)
Loans and Leases
Commercial and industrial			0.8				3.5				4.3
Commercial real estate			(0.2	)			4.6				4.4
Construction			1.0				1.9				2.9
Residential:
Residential mortgage			0.2				0.1				0.3
Home equity line			0.3				0.3				0.6
Consumer			(0.2	)			0.3				0.1
Lease financing			0.1				0.1				0.2
Total Loans and Leases			2.0				10.8				12.8
Total Change in Interest Income			0.8				12.3				13.1
Change in Interest Expense:
Interest-Bearing Deposits
Savings			(0.2	)			3.8				3.6
Money Market			(0.4	)			4.9				4.5
Time			1.4				5.6				7.0
Total Interest-Bearing Deposits			0.8				14.3				15.1
Federal Funds Purchased			0.2				—				0.2
Other Short-Term Borrowings			0.7				—				0.7
Long-Term Borrowings			1.2				—				1.2
Other Interest-Bearing Liabilities			0.4				—				0.4
Total Change in Interest Expense			3.3				14.3				17.6
Change in Net Interest Income		$	(2.5	)		$	(2.0	)		$	(4.5	)

Analysis of Change in Net Interest Income						Table 6
		Three Months Ended March 31, 2023
		Compared to March 31, 2022
(dollars in millions)		Volume				Rate				Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	(0.7	)		$	3.5			$	2.8
Available-for-Sale Investment Securities
Taxable			(23.0	)			12.2				(10.8	)
Non-Taxable			(5.5	)			2.3				(3.2	)
Held-to-Maturity Investment Securities
Taxable			15.7				—				15.7
Non-Taxable			4.1				—				4.1
Total Investment Securities			(8.7	)			14.5				5.8
Loans and Leases
Commercial and industrial			1.8				16.0				17.8
Commercial real estate			3.7				28.8				32.5
Construction			0.9				8.1				9.0
Residential:
Residential mortgage			1.7				1.9				3.6
Home equity line			1.3				1.9				3.2
Consumer			(0.1	)			1.7				1.6
Lease financing			0.8				0.4				1.2
Total Loans and Leases			10.1				58.8				68.9
Other Earning Assets			0.1				(0.1	)			—
Total Change in Interest Income			0.8				76.7				77.5
Change in Interest Expense:
Interest-Bearing Deposits
Savings			—				13.4				13.4
Money Market			—				13.8				13.8
Time			1.0				12.4				13.4
Total Interest-Bearing Deposits			1.0				39.6				40.6
Federal Funds Purchased			0.7				—				0.7
Other Short-Term Borrowings			0.7				—				0.7
Long-Term Borrowings			1.2				—				1.2
Other Interest-Bearing Liabilities			0.4				—				0.4
Total Change in Interest Expense			4.0				39.6				43.6
Change in Net Interest Income		$	(3.2	)		$	37.1			$	33.9

Loans and Leases										Table 7
		March 31,				December 31,				March 31,
(dollars in thousands)		2023				2022				2022
Commercial and industrial:
Commercial and industrial excluding Paycheck Protection Program loans		$	2,254,506			$	2,217,604			$	1,817,346
Paycheck Protection Program loans			13,826				18,293				106,188
Total commercial and industrial			2,268,332				2,235,897				1,923,534
Commercial real estate			4,106,200				4,132,309				3,759,980
Construction			913,959				844,643				708,300
Residential:
Residential mortgage			4,318,742				4,302,788				4,153,824
Home equity line			1,095,365				1,055,351				918,101
Total residential			5,414,107				5,358,139				5,071,925
Consumer			1,191,552				1,222,934				1,204,834
Lease financing			327,122				298,090				223,170
Total loans and leases		$	14,221,272			$	14,092,012			$	12,891,743

Deposits										Table 8
		March 31,				December 31,				March 31,
(dollars in thousands)		2023				2022				2022
Demand		$	8,702,345			$	8,864,646			$	9,765,609
Savings			6,173,398				6,382,910				6,812,758
Money Market			3,818,355				3,965,423				3,990,225
Time			2,587,402				2,476,050				1,701,838
Total Deposits		$	21,281,500			$	21,689,029			$	22,270,430

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)		2023				2022				2022
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial		$	1,158			$	1,215			$	707
Commercial real estate			727				727				727
Lease financing			—				—				75
Total Commercial Loans			1,885				1,942				1,509
Residential Loans:
Residential mortgage			6,896				6,166				7,092
Home equity line			4,903				3,797				—
Total Residential Loans			11,799				9,963				7,092
Total Non-Accrual Loans and Leases			13,684				11,905				8,601
Other Real Estate Owned			91				91				—
Total Non-Performing Assets		$	13,775			$	11,996			$	8,601
Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial		$	461			$	291			$	591
Commercial real estate			1,346				—				—
Construction			102				—				—
Total Commercial Loans			1,909				291				591
Residential Loans:
Residential mortgage			58				58				13
Home equity line			—				—				2,252
Total Residential Loans			58				58				2,265
Consumer			2,502				2,885				1,588
Total Accruing Loans and Leases Past Due 90 Days or More		$	4,469			$	3,234			$	4,444
Total Loans and Leases		$	14,221,272			$	14,092,012			$	12,891,743

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)		2023				2022				2022
Balance at Beginning of Period		$	177,735			$	178,304			$	187,584
Loans and Leases Charged-Off
Commercial and industrial			(791	)			(735	)			(706	)
Residential Loans:
Residential mortgage			(122	)			(102	)			—
Home equity line			(135	)			(12	)			(43	)
Total Residential Loans			(257	)			(114	)			(43	)
Consumer			(4,782	)			(5,094	)			(4,109	)
Total Loans and Leases Charged-Off			(5,830	)			(5,943	)			(4,858	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial			246				303				53
Commercial real estate			—				—				14
Total Commercial Loans			246				303				67
Residential Loans:
Residential mortgage			27				173				16
Home equity line			177				138				28
Total Residential Loans			204				311				44
Consumer			2,166				1,804				2,148
Total Recoveries on Loans and Leases Previously Charged-Off			2,616				2,418				2,259
Net Loans and Leases Charged-Off			(3,214	)			(3,525	)			(2,599	)
Provision for Credit Losses			8,800				2,956				(5,747	)
Balance at End of Period		$	183,321			$	177,735			$	179,238
Components:
Allowance for Credit Losses		$	147,122			$	143,900			$	150,280
Reserve for Unfunded Commitments			36,199				33,835				28,958
Total Allowance for Credit Losses and Reserve for Unfunded Commitments		$	183,321			$	177,735			$	179,238
Average Loans and Leases Outstanding		$	14,079,337			$	13,876,136			$	12,819,612
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)			0.09		%		0.10		%		0.08		%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding			1.03		%		1.02		%		1.17		%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases			10.75x				12.09x				17.47x

________________________(1)   Annualized for the three months ended March 31, 2023, December 31, 2022 and March 31, 2022.

Loans and Leases by Year of Origination and Credit Quality Indicator																											Table 11
																							Revolving
																							Loans
																							Converted
																							to Term
		Term Loans																		Revolving			Loans
		Amortized Cost Basis by Origination Year																		Loans			Amortized
																				Amortized			Cost
(dollars in thousands)		2023			2022			2021			2020			2019			Prior			Cost Basis			Basis			Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass		$	66,587		$	338,534		$	412,459		$	48,560		$	167,698		$	178,991		$	921,651		$	13,566		$	2,148,046
Special Mention			152			16,591			202			994			2,526			1,548			2,557			283			24,853
Substandard			—			594			274			1,058			958			1,422			11,043			41			15,390
Other (1)			5,223			14,426			6,965			3,780			3,312			2,287			44,050			—			80,043
Total Commercial and Industrial			71,962			370,145			419,900			54,392			174,494			184,248			979,301			13,890			2,268,332
Current period gross charge-offs			—			60			—			—			20			711			—			—			791
Commercial Real Estate
Risk rating:
Pass			105,554			880,292			661,523			321,162			521,596			1,533,711			56,034			—			4,079,872
Special Mention			—			163			—			551			7,031			11,490			659			—			19,894
Substandard			—			—			—			172			—			5,808			305			—			6,285
Other (1)			—			—			—			—			—			149			—			—			149
Total Commercial Real Estate			105,554			880,455			661,523			321,885			528,627			1,551,158			56,998			—			4,106,200
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Construction
Risk rating:
Pass			15,219			152,263			333,608			89,515			103,855			141,243			20,349			—			856,052
Special Mention			—			—			—			—			213			—			—			—			213
Substandard			—			—			—			—			—			486			—			—			486
Other (1)			817			29,615			16,206			2,991			2,160			4,478			941			—			57,208
Total Construction			16,036			181,878			349,814			92,506			106,228			146,207			21,290			—			913,959
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Lease Financing
Risk rating:
Pass			51,664			99,102			22,653			42,081			37,333			72,254			—			—			325,087
Special Mention			—			—			388			82			—			—			—			—			470
Substandard			—			—			—			184			9			1,372			—			—			1,565
Total Lease Financing			51,664			99,102			23,041			42,347			37,342			73,626			—			—			327,122
Current period gross charge-offs			—			—			—			—			—			—			—			—			—
Total Commercial Lending		$	245,216		$	1,531,580		$	1,454,278		$	511,130		$	846,691		$	1,955,239		$	1,057,589		$	13,890		$	7,615,613
Current period gross charge-offs		$	—		$	60		$	—		$	—		$	20		$	711		$	—		$	—		$	791

																							Revolving
																							Loans
																							Converted
																							to Term
		Term Loans																		Revolving			Loans
		Amortized Cost Basis by Origination Year																		Loans			Amortized
(continued)																				Amortized			Cost
(dollars in thousands)		2023			2022			2021			2020			2019			Prior			Cost Basis			Basis			Total
Residential Lending
Residential Mortgage
FICO:
740 and greater		$	61,686		$	550,291		$	1,044,555		$	546,035		$	235,535		$	1,057,166		$	—		$	—		$	3,495,268
680 - 739			11,937			75,088			118,790			86,202			35,379			145,363			—			—			472,759
620 - 679			2,776			11,464			17,424			9,946			9,243			36,678			—			—			87,531
550 - 619			—			2,613			2,865			2,447			825			12,487			—			—			21,237
Less than 550			—			530			2,445			1,498			275			7,276			—			—			12,024
No Score (3)			4,909			19,766			14,573			6,773			10,494			61,168			—			—			117,683
Other (2)			4,425			18,205			18,013			13,511			9,064			35,164			13,306			552			112,240
Total Residential Mortgage			85,733			677,957			1,218,665			666,412			300,815			1,355,302			13,306			552			4,318,742
Current period gross charge-offs			—			—			—			—			—			122			—			—			122
Home Equity Line
FICO:
740 and greater			—			—			—			—			—			—			824,038			1,304			825,342
680 - 739			—			—			—			—			—			—			190,187			2,440			192,627
620 - 679			—			—			—			—			—			—			52,239			1,728			53,967
550 - 619			—			—			—			—			—			—			12,734			1,566			14,300
Less than 550			—			—			—			—			—			—			5,370			661			6,031
No Score (3)			—			—			—			—			—			—			3,098			—			3,098
Total Home Equity Line			—			—			—			—			—			—			1,087,666			7,699			1,095,365
Current period gross charge-offs			—			—			—			—			—			—			116			19			135
Total Residential Lending		$	85,733		$	677,957		$	1,218,665		$	666,412		$	300,815		$	1,355,302		$	1,100,972		$	8,251		$	5,414,107
Current period gross charge-offs		$	—		$	—		$	—		$	—		$	—		$	122		$	116		$	19		$	257
Consumer Lending
FICO:
740 and greater			40,337			158,451			96,174			46,618			37,211			24,636			114,058			161			517,646
680 - 739			23,366			97,741			56,306			29,741			24,169			15,970			70,708			441			318,442
620 - 679			7,022			44,839			26,924			12,728			14,484			11,731			33,772			860			152,360
550 - 619			750			10,172			9,698			6,475			7,647			7,519			11,937			855			55,053
Less than 550			122			4,446			5,400			4,078			4,951			4,518			4,329			526			28,370
No Score (3)			866			2,376			8			—			16			36			36,396			167			39,865
Other (2)			76			1,588			4,060			348			1,136			—			72,608			—			79,816
Total Consumer Lending		$	72,539		$	319,613		$	198,570		$	99,988		$	89,614		$	64,410		$	343,808		$	3,010		$	1,191,552
Current period gross charge-offs		$	—		$	635		$	681		$	312		$	614		$	867		$	1,471		$	202		$	4,782
Total Loans and Leases		$	403,488		$	2,529,150		$	2,871,513		$	1,277,530		$	1,237,120		$	3,374,951		$	2,502,369		$	25,151		$	14,221,272
Current period gross charge-offs		$	—		$	695		$	681		$	312		$	634		$	1,700		$	1,587		$	221		$	5,830

________________________(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)		2023				2022				2022
Income Statement Data:
Net income		$	66,818			$	79,588			$	57,719
Average total stockholders' equity		$	2,299,422			$	2,213,030			$	2,547,865
Less: average goodwill			995,492				995,492				995,492
Average tangible stockholders' equity		$	1,303,930			$	1,217,538			$	1,552,373
Average total assets		$	24,548,124			$	24,575,648			$	25,080,453
Less: average goodwill			995,492				995,492				995,492
Average tangible assets		$	23,552,632			$	23,580,156			$	24,084,961
Return on average total stockholders' equity(1)			11.78		%		14.27		%		9.19		%
Return on average tangible stockholders' equity (non-GAAP)(1)			20.78		%		25.93		%		15.08		%
Return on average total assets(1)			1.10		%		1.28		%		0.93		%
Return on average tangible assets (non-GAAP)(1)			1.15		%		1.34		%		0.97		%

		As of				As of				As of
		March 31,				December 31,				March 31,
(dollars in thousands, except per share amounts)		2023				2022				2022
Balance Sheet Data:
Total stockholders' equity		$	2,329,012			$	2,269,005			$	2,285,149
Less: goodwill			995,492				995,492				995,492
Tangible stockholders' equity		$	1,333,520			$	1,273,513			$	1,289,657
Total assets		$	24,884,207			$	24,577,223			$	25,042,720
Less: goodwill			995,492				995,492				995,492
Tangible assets		$	23,888,715			$	23,581,731			$	24,047,228
Shares outstanding			127,573,680				127,363,327				127,686,307
Total stockholders' equity to total assets			9.36		%		9.23		%		9.13		%
Tangible stockholders' equity to tangible assets (non-GAAP)			5.58		%		5.40		%		5.36		%
Book value per share		$	18.26			$	17.82			$	17.90
Tangible book value per share (non-GAAP)		$	10.45			$	10.00			$	10.10

________________________(1)   Annualized for the three months ended March 31, 2023, December 31, 2022 and March 31, 2022.