First Hawaiian, Inc.NASDAQ: FHB

First Hawaiian, Inc. Reports First Quarter 2023 Financial Results and Declares Dividend

· Issued by First Hawaiian, Inc. via GlobeNewswire

Key figures

  • 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

On 6ix: 6ix.com/news/first-hawaiian-inc-reports-first-quarter-2023-financial-results-and-declares

Watch First Hawaiian explain itFirst Hawaiian (NASDAQ:FHB) Q1 2023 Earnings Call · Replay · Apr 28, 2023 · From 2:52 · Q1 2023 Financial Results

HONOLULU, April 28, 2023 (GLOBE NEWSWIRE) -- 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) 525-6268[email protected]Media Contact:Lindsay Chambers(808) 525-6254[email protected]
Financial HighlightsTable 1
For the Three Months Ended
March 31,December 31,March 31,
(dollars in thousands, except per share data)202320222022
Operating Results:
Net interest income$167,247$171,794$133,872
Provision for credit losses8,8002,956(5,747)
Noninterest income49,02348,15141,380
Noninterest expense118,567113,922104,042
Net income66,81879,58857,719
Basic earnings per share0.520.620.45
Diluted earnings per share0.520.620.45
Dividends declared per share0.260.260.26
Dividend payout ratio50.00%41.94%57.78%
Performance Ratios(1):
Net interest margin3.11%3.15%2.42%
Efficiency ratio54.46%51.47%59.04%
Return on average total assets1.10%1.28%0.93%
Return on average tangible assets (non-GAAP)(2)1.15%1.34%0.97%
Return on average total stockholders' equity11.78%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 assets21,873,25921,856,13522,463,209
Average assets24,548,12424,575,64825,080,453
Average deposits21,468,62421,725,17721,960,819
Average stockholders' equity2,299,4222,213,0302,547,865
Market Value Per Share:
Closing20.6326.0427.89
High28.2827.1631.16
Low19.6824.0626.93
As ofAs ofAs of
March 31,December 31,March 31,
(dollars in thousands, except per share data)202320222022
Balance Sheet Data:
Loans and leases$14,221,272$14,092,012$12,891,743
Total assets24,884,20724,577,22325,042,720
Total deposits21,281,50021,689,02922,270,430
Short-term borrowings250,00075,000—
Long-term borrowings500,000——
Total stockholders' equity2,329,0122,269,0052,285,149
Per Share of Common Stock:
Book value$18.26$17.82$17.90
Tangible book value (non-GAAP)(2)10.4510.0010.10
Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases0.10%0.08%0.07%
Allowance for credit losses for loans and leases / total loans and leases1.03%1.02%1.17%
Capital Ratios:
Common Equity Tier 1 Capital Ratio11.97%11.82%12.27%
Tier 1 Capital Ratio11.97%11.82%12.27%
Total Capital Ratio13.09%12.92%13.48%
Tier 1 Leverage Ratio8.26%8.11%7.50%
Total stockholders' equity to total assets9.36%9.23%9.13%
Tangible stockholders' equity to tangible assets (non-GAAP)(2)5.58%5.40%5.36%
Non-Financial Data:
Number of branches515151
Number of ATMs296294298
Number of Full-Time Equivalent Employees2,1002,0632,022

________________________(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 IncomeTable 2
For the Three Months Ended
March 31,December 31,March 31,
(dollars in thousands, except per share amounts)202320222022
Interest income
Loans and lease financing$172,339$159,526$103,732
Available-for-sale investment securities18,68818,71432,107
Held-to-maturity investment securities18,95719,137—
Other3,5613,088782
Total interest income213,545200,465136,621
Interest expense
Deposits43,28428,2022,749
Short-term and long-term borrowings2,563469—
Other451——
Total interest expense46,29828,6712,749
Net interest income167,247171,794133,872
Provision for credit losses8,8002,956(5,747)
Net interest income after provision for credit losses158,447168,838139,619
Noninterest income
Service charges on deposit accounts7,2317,3767,501
Credit and debit card fees16,29816,37614,850
Other service charges and fees9,1629,1859,654
Trust and investment services income9,6149,0238,883
Bank-owned life insurance5,1202,865(417)
Other1,5983,326909
Total noninterest income49,02348,15141,380
Noninterest expense
Salaries and employee benefits56,03249,62948,226
Contracted services and professional fees16,31317,63817,147
Occupancy7,7828,1757,410
Equipment9,7369,9845,977
Regulatory assessment and fees3,8362,5912,224
Advertising and marketing1,9942,0722,028
Card rewards program8,0858,6816,883
Other14,78915,15214,147
Total noninterest expense118,567113,922104,042
Income before provision for income taxes88,903103,06776,957
Provision for income taxes22,08523,47919,238
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 shares127,453,820127,356,795127,556,242
Diluted weighted-average outstanding shares128,033,812127,894,773128,121,126
Consolidated Balance SheetsTable 3
March 31,December 31,March 31,
(dollars in thousands)202320222022
Assets
Cash and due from banks$253,705$297,502$274,022
Interest-bearing deposits in other banks611,887229,1221,352,138
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)3,054,2803,151,1338,062,384
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)4,261,3614,320,639—
Loans and leases14,221,27214,092,01212,891,743
Less: allowance for credit losses147,122143,900150,280
Net loans and leases14,074,15013,948,11212,741,463
Premises and equipment, net278,121280,355315,766
Other real estate owned and repossessed personal property9191—
Accrued interest receivable79,20078,19461,561
Bank-owned life insurance473,255473,067471,401
Goodwill995,492995,492995,492
Mortgage servicing rights6,2996,5627,650
Other assets796,366796,954760,843
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-bearing8,702,3458,864,6469,765,609
Total deposits21,281,50021,689,02922,270,430
Short-term borrowings250,00075,000—
Long-term borrowings500,000——
Retirement benefits payable101,622102,577134,323
Other liabilities422,073441,612352,818
Total liabilities22,555,19522,308,21822,757,571
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)1,4131,4101,409
Additional paid-in capital2,540,6532,538,3362,530,795
Retained earnings769,791736,544628,642
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' equity2,329,0122,269,0052,285,149
Total liabilities and stockholders' equity$24,884,207$24,577,223$25,042,720
Average Balances and Interest RatesTable 4
Three Months EndedThree Months EndedThree Months Ended
March 31, 2023December 31, 2022March 31, 2022
AverageIncome/Yield/AverageIncome/Yield/AverageIncome/Yield/
(dollars in millions)BalanceExpenseRateBalanceExpenseRateBalanceExpenseRate
Earning Assets
Interest-Bearing Deposits in Other Banks$299.6$3.44.60%$321.3$2.93.64%$1,138.3$0.60.20%
Available-for-Sale Investment Securities
Taxable3,081.418.42.393,180.818.32.307,800.329.21.50
Non-Taxable31.10.45.5537.90.55.42636.73.62.32
Held-to-Maturity Investment Securities
Taxable3,683.815.71.703,754.915.81.69———
Non-Taxable612.24.12.74613.44.22.69———
Total Investment Securities7,408.538.62.097,587.038.82.048,437.032.81.56
Loans Held for Sale0.1—5.530.1—6.501.2—2.02
Loans and Leases(1)
Commercial and industrial2,192.932.45.982,126.328.15.241,973.114.63.01
Commercial real estate4,105.758.35.764,116.853.95.193,632.225.82.88
Construction873.914.76.83804.411.85.83766.95.73.03
Residential:
Residential mortgage4,307.038.43.574,280.638.13.564,111.034.83.38
Home equity line1,074.98.73.271,029.78.13.10891.65.52.48
Consumer1,213.517.25.751,220.917.15.551,218.615.65.19
Lease financing311.43.14.10297.42.93.92226.21.93.42
Total Loans and Leases14,079.3172.84.9613,876.1160.04.5812,819.6103.93.27
Other Earning Assets85.80.20.7671.60.20.8067.10.21.31
Total Earning Assets(2)21,873.3215.03.9721,856.1201.93.6722,463.2137.52.47
Cash and Due from Banks286.1286.4292.1
Other Assets2,388.72,433.12,325.2
Total Assets$24,548.1$24,575.6$25,080.5
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings$6,354.3$13.90.89%$6,455.5$10.30.63%6,668.4$0.50.03%
Money Market3,853.514.31.504,012.99.80.974,048.90.50.05
Time2,515.615.12.442,163.28.11.481,748.51.70.39
Total Interest-Bearing Deposits12,723.443.31.3812,631.628.20.8912,465.82.70.09
Federal Funds Purchased67.10.74.4345.50.54.09———
Other Short-Term Borrowings52.80.75.02——————
Long-Term Borrowings105.51.24.52——————
Other Interest-Bearing Liabilities42.80.44.27——————
Total Interest-Bearing Liabilities12,991.646.31.4512,677.128.70.9012,465.82.70.09
Net Interest Income$168.7$173.2$134.8
Interest Rate Spread2.52%2.77%2.38%
Net Interest Margin3.11%3.15%2.42%
Noninterest-Bearing Demand Deposits8,745.29,093.69,495.0
Other Liabilities511.9591.9571.8
Stockholders' Equity2,299.42,213.02,547.9
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 IncomeTable 5
Three Months Ended March 31, 2023
Compared to December 31, 2022
(dollars in millions)VolumeRateTotal
Change in Interest Income:
Interest-Bearing Deposits in Other Banks$(0.2)$0.7$0.5
Available-for-Sale Investment Securities
Taxable(0.6)0.70.1
Non-Taxable(0.1)—(0.1)
Held-to-Maturity Investment Securities
Taxable(0.2)0.1(0.1)
Non-Taxable(0.1)—(0.1)
Total Investment Securities(1.0)0.8(0.2)
Loans and Leases
Commercial and industrial0.83.54.3
Commercial real estate(0.2)4.64.4
Construction1.01.92.9
Residential:
Residential mortgage0.20.10.3
Home equity line0.30.30.6
Consumer(0.2)0.30.1
Lease financing0.10.10.2
Total Loans and Leases2.010.812.8
Total Change in Interest Income0.812.313.1
Change in Interest Expense:
Interest-Bearing Deposits
Savings(0.2)3.83.6
Money Market(0.4)4.94.5
Time1.45.67.0
Total Interest-Bearing Deposits0.814.315.1
Federal Funds Purchased0.2—0.2
Other Short-Term Borrowings0.7—0.7
Long-Term Borrowings1.2—1.2
Other Interest-Bearing Liabilities0.4—0.4
Total Change in Interest Expense3.314.317.6
Change in Net Interest Income$(2.5)$(2.0)$(4.5)
Analysis of Change in Net Interest IncomeTable 6
Three Months Ended March 31, 2023
Compared to March 31, 2022
(dollars in millions)VolumeRateTotal
Change in Interest Income:
Interest-Bearing Deposits in Other Banks$(0.7)$3.5$2.8
Available-for-Sale Investment Securities
Taxable(23.0)12.2(10.8)
Non-Taxable(5.5)2.3(3.2)
Held-to-Maturity Investment Securities
Taxable15.7—15.7
Non-Taxable4.1—4.1
Total Investment Securities(8.7)14.55.8
Loans and Leases
Commercial and industrial1.816.017.8
Commercial real estate3.728.832.5
Construction0.98.19.0
Residential:
Residential mortgage1.71.93.6
Home equity line1.31.93.2
Consumer(0.1)1.71.6
Lease financing0.80.41.2
Total Loans and Leases10.158.868.9
Other Earning Assets0.1(0.1)—
Total Change in Interest Income0.876.777.5
Change in Interest Expense:
Interest-Bearing Deposits
Savings—13.413.4
Money Market—13.813.8
Time1.012.413.4
Total Interest-Bearing Deposits1.039.640.6
Federal Funds Purchased0.7—0.7
Other Short-Term Borrowings0.7—0.7
Long-Term Borrowings1.2—1.2
Other Interest-Bearing Liabilities0.4—0.4
Total Change in Interest Expense4.039.643.6
Change in Net Interest Income$(3.2)$37.1$33.9
Loans and LeasesTable 7
March 31,December 31,March 31,
(dollars in thousands)202320222022
Commercial and industrial:
Commercial and industrial excluding Paycheck Protection Program loans$2,254,506$2,217,604$1,817,346
Paycheck Protection Program loans13,82618,293106,188
Total commercial and industrial2,268,3322,235,8971,923,534
Commercial real estate4,106,2004,132,3093,759,980
Construction913,959844,643708,300
Residential:
Residential mortgage4,318,7424,302,7884,153,824
Home equity line1,095,3651,055,351918,101
Total residential5,414,1075,358,1395,071,925
Consumer1,191,5521,222,9341,204,834
Lease financing327,122298,090223,170
Total loans and leases$14,221,272$14,092,012$12,891,743
DepositsTable 8
March 31,December 31,March 31,
(dollars in thousands)202320222022
Demand$8,702,345$8,864,646$9,765,609
Savings6,173,3986,382,9106,812,758
Money Market3,818,3553,965,4233,990,225
Time2,587,4022,476,0501,701,838
Total Deposits$21,281,500$21,689,029$22,270,430
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or MoreTable 9
March 31,December 31,March 31,
(dollars in thousands)202320222022
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial$1,158$1,215$707
Commercial real estate727727727
Lease financing——75
Total Commercial Loans1,8851,9421,509
Residential Loans:
Residential mortgage6,8966,1667,092
Home equity line4,9033,797—
Total Residential Loans11,7999,9637,092
Total Non-Accrual Loans and Leases13,68411,9058,601
Other Real Estate Owned9191—
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 estate1,346——
Construction102——
Total Commercial Loans1,909291591
Residential Loans:
Residential mortgage585813
Home equity line——2,252
Total Residential Loans58582,265
Consumer2,5022,8851,588
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 CommitmentsTable 10
For the Three Months Ended
March 31,December 31,March 31,
(dollars in thousands)202320222022
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 industrial24630353
Commercial real estate——14
Total Commercial Loans24630367
Residential Loans:
Residential mortgage2717316
Home equity line17713828
Total Residential Loans20431144
Consumer2,1661,8042,148
Total Recoveries on Loans and Leases Previously Charged-Off2,6162,4182,259
Net Loans and Leases Charged-Off(3,214)(3,525)(2,599)
Provision for Credit Losses8,8002,956(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 Commitments36,19933,83528,958
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 Outstanding1.03%1.02%1.17%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases10.75x12.09x17.47x

________________________(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 IndicatorTable 11
Revolving
Loans
Converted
to Term
Term LoansRevolvingLoans
Amortized Cost Basis by Origination YearLoansAmortized
AmortizedCost
(dollars in thousands)20232022202120202019PriorCost BasisBasisTotal
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 Mention15216,5912029942,5261,5482,55728324,853
Substandard—5942741,0589581,42211,0434115,390
Other (1)5,22314,4266,9653,7803,3122,28744,050—80,043
Total Commercial and Industrial71,962370,145419,90054,392174,494184,248979,30113,8902,268,332
Current period gross charge-offs—60——20711——791
Commercial Real Estate
Risk rating:
Pass105,554880,292661,523321,162521,5961,533,71156,034—4,079,872
Special Mention—163—5517,03111,490659—19,894
Substandard———172—5,808305—6,285
Other (1)—————149——149
Total Commercial Real Estate105,554880,455661,523321,885528,6271,551,15856,998—4,106,200
Current period gross charge-offs—————————
Construction
Risk rating:
Pass15,219152,263333,60889,515103,855141,24320,349—856,052
Special Mention————213———213
Substandard—————486——486
Other (1)81729,61516,2062,9912,1604,478941—57,208
Total Construction16,036181,878349,81492,506106,228146,20721,290—913,959
Current period gross charge-offs—————————
Lease Financing
Risk rating:
Pass51,66499,10222,65342,08137,33372,254——325,087
Special Mention——38882————470
Substandard———18491,372——1,565
Total Lease Financing51,66499,10223,04142,34737,34273,626——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 LoansRevolvingLoans
Amortized Cost Basis by Origination YearLoansAmortized
(continued)AmortizedCost
(dollars in thousands)20232022202120202019PriorCost BasisBasisTotal
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 - 73911,93775,088118,79086,20235,379145,363——472,759
620 - 6792,77611,46417,4249,9469,24336,678——87,531
550 - 619—2,6132,8652,44782512,487——21,237
Less than 550—5302,4451,4982757,276——12,024
No Score (3)4,90919,76614,5736,77310,49461,168——117,683
Other (2)4,42518,20518,01313,5119,06435,16413,306552112,240
Total Residential Mortgage85,733677,9571,218,665666,412300,8151,355,30213,3065524,318,742
Current period gross charge-offs—————122——122
Home Equity Line
FICO:
740 and greater——————824,0381,304825,342
680 - 739——————190,1872,440192,627
620 - 679——————52,2391,72853,967
550 - 619——————12,7341,56614,300
Less than 550——————5,3706616,031
No Score (3)——————3,098—3,098
Total Home Equity Line——————1,087,6667,6991,095,365
Current period gross charge-offs——————11619135
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 greater40,337158,45196,17446,61837,21124,636114,058161517,646
680 - 73923,36697,74156,30629,74124,16915,97070,708441318,442
620 - 6797,02244,83926,92412,72814,48411,73133,772860152,360
550 - 61975010,1729,6986,4757,6477,51911,93785555,053
Less than 5501224,4465,4004,0784,9514,5184,32952628,370
No Score (3)8662,3768—163636,39616739,865
Other (2)761,5884,0603481,136—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 ReconciliationTable 12
For the Three Months Ended
March 31,December 31,March 31,
(dollars in thousands, except per share amounts)202320222022
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 goodwill995,492995,492995,492
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 goodwill995,492995,492995,492
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 ofAs ofAs of
March 31,December 31,March 31,
(dollars in thousands, except per share amounts)202320222022
Balance Sheet Data:
Total stockholders' equity$2,329,012$2,269,005$2,285,149
Less: goodwill995,492995,492995,492
Tangible stockholders' equity$1,333,520$1,273,513$1,289,657
Total assets$24,884,207$24,577,223$25,042,720
Less: goodwill995,492995,492995,492
Tangible assets$23,888,715$23,581,731$24,047,228
Shares outstanding127,573,680127,363,327127,686,307
Total stockholders' equity to total assets9.36%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.

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