First Hawaiian, Inc.NASDAQ: FHB

First Hawaiian, Inc. Reports First Quarter 2024 Financial Results and Declares Dividend

· Issued by First Hawaiian, Inc. via GlobeNewswire

Key figures

  • Net income of $54.2 million , or $0.42 per diluted share
  • Total loans and leases decreased $33.3 million versus prior quarter
  • Total deposits decreased $663.2 million versus prior quarter
  • Net interest margin increased 10 basis points to 2.91%
  • Recorded a $6.3 million provision for credit losses

On 6ix: 6ix.com/news/first-hawaiian-inc-reports-first-quarter-2024-financial-results-and-declares

Watch First Hawaiian explain itFirst Hawaiian (NASDAQ:FHB) Q1 2024 Earnings Call · Replay · Apr 26, 2024 · From 3:05 · First Quarter Financial Performance Highlights

HONOLULU, April 26, 2024 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended March 31, 2024.

“I’m pleased to report that we started 2024 with a solid first quarter,” said Bob Harrison, Chairman, President, and CEO. “We had strong earnings, continued excellent credit quality and continued to grow our capital levels.”

On April 24, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on May 31, 2024, to stockholders of record at the close of business on May 20, 2024.

First Quarter 2024 Highlights:

  • Net income of $54.2 million, or $0.42 per diluted share
  • Total loans and leases decreased $33.3 million versus prior quarter
  • Total deposits decreased $663.2 million versus prior quarter
  • Net interest margin increased 10 basis points to 2.91%
  • Recorded a $6.3 million provision for credit losses
  • $4.1 million FDIC special assessment included in expenses
  • Board of Directors declared a quarterly dividend of $0.26 per share

Balance SheetTotal assets were $24.3 billion as of March 31, 2024, a decrease of $647.3 million, or 2.6%, from $24.9 billion as of December 31, 2023.

Gross loans and leases were $14.3 billion as of March 31, 2024, a decrease of $33.3 million, or 0.2%, from $14.4 billion as of December 31, 2023.

Total deposits were $20.7 billion as of March 31, 2024, a decrease of $663.2 million, or 3.1%, from $21.3 billion as of December 31, 2023.

Net Interest IncomeNet interest income for the first quarter of 2024 was $154.4 million, an increase of $2.6 million, or 1.7%, compared to $151.8 million for the prior quarter.

The net interest margin was 2.91% in the first quarter of 2024, an increase of 10 basis points compared to 2.81% in the prior quarter.

Provision ExpenseDuring the quarter ended March 31, 2024, we recorded a $6.3 million provision for credit losses. In the quarter ended December 31, 2023, we recorded a $5.3 million provision for credit losses.

Noninterest IncomeNoninterest income was $51.4 million in the first quarter of 2024, a decrease of $7.0 million compared to noninterest income of $58.3 million in the prior quarter.

Noninterest ExpenseNoninterest expense was $128.8 million in the first quarter of 2024, a decrease of $13.5 million compared to noninterest expense of $142.3 million in the prior quarter.

The efficiency ratio was 62.2% and 67.3% for the quarters ended March 31, 2024 and December 31, 2023, respectively.

TaxesThe effective tax rate was 23.3% and 24.0% for the quarters ended March 31, 2024 and December 31, 2023, respectively.

Asset QualityThe allowance for credit losses was $159.8 million, or 1.12% of total loans and leases, as of March 31, 2024, compared to $156.5 million, or 1.09% of total loans and leases, as of December 31, 2023. The reserve for unfunded commitments was $34.8 million as of March 31, 2024 compared to $35.6 million as of December 31, 2023. 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, 2024, compared to net charge-offs of $5.8 million, or 0.16% of average loans and leases on an annualized basis, for the quarter ended December 31, 2023. Total non-performing assets were $18.0 million, or 0.13% of total loans and leases and other real estate owned, on March 31, 2024, compared to total non-performing assets of $18.6 million, or 0.13% of total loans and leases and other real estate owned, on December 31, 2023.

CapitalTotal stockholders' equity increased $27.7 million in the first quarter, and stood at $2.5 billion on March 31, 2024 and December 31, 2023.

The tier 1 leverage, common equity tier 1 and total capital ratios were 8.80%, 12.55% and 13.75%, respectively, on March 31, 2024, compared with 8.64%, 12.39% and 13.57%, respectively, on December 31, 2023.

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

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

Conference Call Information

First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time.

To access the call by phone, please register via the following link: https://register.vevent.com/register/BIb74728f7f2a14341b3028eb985e2ddf0, 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. 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, 2023.

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)202420232023
Operating Results:
Net interest income$154,427$151,793$167,247
Provision for credit losses6,3005,3308,800
Noninterest income51,37158,34749,023
Noninterest expense128,813142,307118,567
Net income54,22047,50266,818
Basic earnings per share0.420.370.52
Diluted earnings per share0.420.370.52
Dividends declared per share0.260.260.26
Dividend payout ratio61.90%70.27%50.00%
Performance Ratios(1):
Net interest margin2.91%2.81%3.11%
Efficiency ratio62.15%67.28%54.46%
Return on average total assets0.90%0.77%1.10%
Return on average tangible assets (non-GAAP)(2)0.94%0.81%1.15%
Return on average total stockholders' equity8.73%7.94%11.78%
Return on average tangible stockholders' equity (non-GAAP)(2)14.53%13.66%20.78%
Average Balances:
Average loans and leases$14,312,563$14,349,322$14,079,337
Average earning assets21,481,89021,688,81621,873,259
Average assets24,187,20724,404,72724,548,124
Average deposits20,571,93020,908,22121,468,624
Average stockholders' equity2,496,8402,374,6692,299,422
Market Value Per Share:
Closing21.9622.8620.63
High23.1223.2228.28
Low20.3717.1819.68
As ofAs ofAs of
March 31,December 31,March 31,
(dollars in thousands, except per share data)202420232023
Balance Sheet Data:
Loans and leases$14,320,208$14,353,497$14,221,272
Total assets24,279,18624,926,47424,884,207
Total deposits20,669,48121,332,65721,281,500
Short-term borrowings500,000500,000250,000
Long-term borrowings——500,000
Total stockholders' equity2,513,7612,486,0662,329,012
Per Share of Common Stock:
Book value$19.66$19.48$18.26
Tangible book value (non-GAAP)(2)11.8811.6810.45
Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases0.13%0.13%0.10%
Allowance for credit losses for loans and leases / total loans and leases1.12%1.09%1.03%
Capital Ratios:
Common Equity Tier 1 Capital Ratio12.55%12.39%11.97%
Tier 1 Capital Ratio12.55%12.39%11.97%
Total Capital Ratio13.75%13.57%13.09%
Tier 1 Leverage Ratio8.80%8.64%8.26%
Total stockholders' equity to total assets10.35%9.97%9.36%
Tangible stockholders' equity to tangible assets (non-GAAP)(2)6.52%6.23%5.58%
Non-Financial Data:
Number of branches505051
Number of ATMs275275296
Number of Full-Time Equivalent Employees2,0652,0892,100

_____________________________

(1) Except for the efficiency ratio, amounts are annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023.

(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)202420232023
Interest income
Loans and lease financing$199,844$196,276$172,339
Available-for-sale investment securities14,54619,03318,688
Held-to-maturity investment securities17,79317,98718,957
Other12,7697,7343,561
Total interest income244,952241,030213,545
Interest expense
Deposits84,14382,21543,284
Short-term and long-term borrowings5,9536,2322,563
Other429790451
Total interest expense90,52589,23746,298
Net interest income154,427151,793167,247
Provision for credit losses6,3005,3308,800
Net interest income after provision for credit losses148,127146,463158,447
Noninterest income
Service charges on deposit accounts7,5467,6467,231
Credit and debit card fees16,17316,38116,298
Other service charges and fees9,9049,5359,162
Trust and investment services income10,3549,6459,614
Bank-owned life insurance4,2865,0635,120
Investment securities gains, net—792—
Other3,1089,2851,598
Total noninterest income51,37158,34749,023
Noninterest expense
Salaries and employee benefits59,26255,88256,032
Contracted services and professional fees15,73916,21916,313
Occupancy6,9417,5617,782
Equipment13,41312,5479,736
Regulatory assessment and fees8,12020,4123,836
Advertising and marketing2,6121,4411,994
Card rewards program8,5087,5038,085
Other14,21820,74214,789
Total noninterest expense128,813142,307118,567
Income before provision for income taxes70,68562,50388,903
Provision for income taxes16,46515,00122,085
Net income$54,220$47,502$66,818
Basic earnings per share$0.42$0.37$0.52
Diluted earnings per share$0.42$0.37$0.52
Basic weighted-average outstanding shares127,707,354127,612,734127,453,820
Diluted weighted-average outstanding shares128,217,689128,028,964128,033,812
Consolidated Balance SheetsTable 3
March 31,December 31,March 31,
(dollars in thousands, except share amount)202420232023
Assets
Cash and due from banks$202,121$185,015$253,705
Interest-bearing deposits in other banks1,072,1451,554,882611,887
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,466,109 as of March 31, 2024, $2,558,675 as of December 31, 2023 and $3,427,708 as of March 31, 2023)2,159,3382,255,3363,054,280
Held-to-maturity, at amortized cost (fair value: $3,470,710 as of March 31, 2024, $3,574,856 as of December 31, 2023 and $3,824,478 as of March 31, 2023)3,988,0114,041,4494,261,361
Loans held for sale—190—
Loans and leases14,320,20814,353,49714,221,272
Less: allowance for credit losses159,836156,533147,122
Net loans and leases14,160,37214,196,96414,074,150
Premises and equipment, net281,181281,461278,121
Other real estate owned and repossessed personal property——91
Accrued interest receivable85,71584,41779,200
Bank-owned life insurance484,193479,907473,255
Goodwill995,492995,492995,492
Mortgage servicing rights5,5335,6996,299
Other assets845,085845,662796,366
Total assets$24,279,186$24,926,474$24,884,207
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing$13,620,928$13,749,095$12,579,155
Noninterest-bearing7,048,5537,583,5628,702,345
Total deposits20,669,48121,332,65721,281,500
Short-term borrowings500,000500,000250,000
Long-term borrowings——500,000
Retirement benefits payable102,242103,285101,622
Other liabilities493,702504,466422,073
Total liabilities21,765,42522,440,40822,555,195
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,687,612 / 127,841,908 shares as of March 31, 2024, issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023 and issued/outstanding: 141,291,086 / 127,573,680 shares as of March 31, 2023)1,4171,4131,413
Additional paid-in capital2,551,4882,548,2502,540,653
Retained earnings858,494837,859769,791
Accumulated other comprehensive loss, net(523,780)(530,210)(611,679)
Treasury stock (13,845,704 shares as of March 31, 2024, 13,721,778 shares as of December 31, 2023 and 13,717,406 shares as of March 31, 2023)(373,858)(371,246)(371,166)
Total stockholders' equity2,513,7612,486,0662,329,012
Total liabilities and stockholders' equity$24,279,186$24,926,474$24,884,207
Average Balances and Interest RatesTable 4
Three Months EndedThree Months EndedThree Months Ended
March 31, 2024December 31, 2023March 31, 2023
AverageIncome/Yield/AverageIncome/Yield/AverageIncome/Yield/
(dollars in millions)BalanceExpenseRateBalanceExpenseRateBalanceExpenseRate
Earning Assets
Interest-Bearing Deposits in Other Banks$858.6$11.65.45%$568.0$7.85.39%$299.6$3.44.60%
Available-for-Sale Investment Securities
Taxable2,210.614.52.632,598.419.02.923,081.418.42.39
Non-Taxable1.8—5.611.9—5.1231.10.45.55
Held-to-Maturity Investment Securities
Taxable3,416.414.61.713,472.114.81.703,683.815.71.70
Non-Taxable603.44.02.65603.93.92.58612.24.12.74
Total Investment Securities6,232.233.12.136,676.337.72.257,408.538.62.09
Loans Held for Sale0.7—6.920.7—7.410.1—5.53
Loans and Leases(1)
Commercial and industrial2,164.937.26.922,148.136.76.782,192.932.45.98
Commercial real estate4,323.570.16.534,356.371.46.514,105.758.35.76
Construction924.717.47.55888.716.77.45873.914.76.83
Residential:
Residential mortgage4,264.142.03.944,294.838.83.614,307.038.43.57
Home equity line1,172.112.04.131,174.811.33.831,074.98.73.27
Consumer1,083.518.16.711,132.418.46.431,213.517.25.75
Lease financing379.83.73.91354.23.64.03311.43.14.10
Total Loans and Leases14,312.6200.55.6314,349.3196.95.4514,079.3172.84.96
Other Earning Assets77.81.25.9094.5—0.0685.80.20.76
Total Earning Assets(2)21,481.9246.44.6121,688.8242.44.4421,873.3215.03.97
Cash and Due from Banks244.3240.8286.1
Other Assets2,461.02,475.12,388.7
Total Assets$24,187.2$24,404.7$24,548.1
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings$6,059.7$23.41.56%$6,067.2$22.41.46%6,354.3$13.90.89%
Money Market3,944.928.82.943,905.027.52.793,853.514.31.50
Time3,325.331.93.863,390.732.33.782,515.615.12.44
Total Interest-Bearing Deposits13,329.984.12.5413,362.982.22.4412,723.443.31.38
Federal Funds Purchased——————67.10.74.43
Other Short-Term Borrowings500.06.04.79515.26.24.8052.80.75.02
Long-Term Borrowings——————105.51.24.52
Other Interest-Bearing Liabilities33.00.45.2242.10.87.4442.80.44.27
Total Interest-Bearing Liabilities13,862.990.52.6313,920.289.22.5412,991.646.31.45
Net Interest Income$155.9$153.2$168.7
Interest Rate Spread(3)1.98%1.90%2.52%
Net Interest Margin(4)2.91%2.81%3.11%
Noninterest-Bearing Demand Deposits7,242.07,545.38,745.2
Other Liabilities585.5564.5511.9
Stockholders' Equity2,496.82,374.72,299.4
Total Liabilities and Stockholders' Equity$24,187.2$24,404.7$24,548.1

_____________________________

(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 $1.5 million, $1.4 million and $1.4 million for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, 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, 2024, December 31, 2023 and March 31, 2023, on a fully taxable-equivalent basis, divided by average total earning assets.

Analysis of Change in Net Interest IncomeTable 5
Three Months Ended March 31, 2024
Compared to December 31, 2023
(dollars in millions)VolumeRateTotal
Change in Interest Income:
Interest-Bearing Deposits in Other Banks$3.8$—$3.8
Available-for-Sale Investment Securities
Taxable(2.7)(1.8)(4.5)
Held-to-Maturity Investment Securities
Taxable(0.3)0.1(0.2)
Non-Taxable—0.10.1
Total Investment Securities(3.0)(1.6)(4.6)
Loans and Leases
Commercial and industrial0.10.40.5
Commercial real estate(1.2)(0.1)(1.3)
Construction0.50.20.7
Residential:
Residential mortgage(0.3)3.53.2
Home equity line—0.70.7
Consumer(0.9)0.6(0.3)
Lease financing0.2(0.1)0.1
Total Loans and Leases(1.6)5.23.6
Other Earning Assets—1.21.2
Total Change in Interest Income(0.8)4.84.0
Change in Interest Expense:
Interest-Bearing Deposits
Savings(0.1)1.11.0
Money Market0.21.11.3
Time(0.8)0.4(0.4)
Total Interest-Bearing Deposits(0.7)2.61.9
Other Short-Term Borrowings(0.2)—(0.2)
Other Interest-Bearing Liabilities(0.2)(0.2)(0.4)
Total Change in Interest Expense(1.1)2.41.3
Change in Net Interest Income$0.3$2.4$2.7
Analysis of Change in Net Interest IncomeTable 6
Three Months Ended March 31, 2024
Compared to March 31, 2023
(dollars in millions)VolumeRateTotal
Change in Interest Income:
Interest-Bearing Deposits in Other Banks$7.5$0.7$8.2
Available-for-Sale Investment Securities
Taxable(5.6)1.7(3.9)
Non-Taxable(0.4)—(0.4)
Held-to-Maturity Investment Securities
Taxable(1.2)0.1(1.1)
Non-Taxable—(0.1)(0.1)
Total Investment Securities(7.2)1.7(5.5)
Loans and Leases
Commercial and industrial(0.4)5.24.8
Commercial real estate3.38.511.8
Construction1.01.72.7
Residential:
Residential mortgage(0.4)4.03.6
Home equity line0.82.53.3
Consumer(1.9)2.80.9
Lease financing0.7(0.1)0.6
Total Loans and Leases3.124.627.7
Other Earning Assets—1.01.0
Total Change in Interest Income3.428.031.4
Change in Interest Expense:
Interest-Bearing Deposits
Savings(0.7)10.29.5
Money Market0.314.214.5
Time6.010.816.8
Total Interest-Bearing Deposits5.635.240.8
Federal Funds Purchased(0.3)(0.4)(0.7)
Other Short-Term Borrowings5.3—5.3
Long-Term Borrowings(0.6)(0.6)(1.2)
Other Interest-Bearing Liabilities(0.1)0.1—
Total Change in Interest Expense9.934.344.2
Change in Net Interest Income$(6.5)$(6.3)$(12.8)
Loans and LeasesTable 7
March 31,December 31,March 31,
(dollars in thousands)202420232023
Commercial and industrial$2,189,875$2,165,349$2,268,332
Commercial real estate4,301,3004,340,2434,106,200
Construction972,517900,292913,959
Residential:
Residential mortgage4,242,5024,283,3154,318,742
Home equity line1,165,7781,174,5881,095,365
Total residential5,408,2805,457,9035,414,107
Consumer1,054,2271,109,9011,191,552
Lease financing394,009379,809327,122
Total loans and leases$14,320,208$14,353,497$14,221,272
DepositsTable 8
March 31,December 31,March 31,
(dollars in thousands)202420232023
Demand$7,048,553$7,583,562$8,702,345
Savings6,277,6796,445,0846,173,398
Money Market4,059,2043,847,8533,818,355
Time3,284,0453,456,1582,587,402
Total Deposits$20,669,481$21,332,657$21,281,500
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or MoreTable 9
March 31,December 31,March 31,
(dollars in thousands)202420232023
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial$942$970$1,158
Commercial real estate2,9532,953727
Total Commercial Loans3,8953,9231,885
Residential Loans:
Residential mortgage7,7777,6206,896
Home equity line6,3457,0524,903
Total Residential Loans14,12214,67211,799
Total Non-Accrual Loans and Leases18,01718,59513,684
Other Real Estate Owned——91
Total Non-Performing Assets$18,017$18,595$13,775
Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial$529$494$461
Commercial real estate—3001,346
Construction606—102
Total Commercial Loans1,1357941,909
Residential mortgage359—58
Consumer2,1262,7022,502
Total Accruing Loans and Leases Past Due 90 Days or More$3,620$3,496$4,469
Total Loans and Leases$14,320,208$14,353,497$14,221,272
Allowance for Credit Losses and Reserve for Unfunded CommitmentsTable 10
For the Three Months Ended
March 31,December 31,March 31,
(dollars in thousands)202420232023
Balance at Beginning of Period$192,138$192,570$177,735
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial(909)(910)(791)
Commercial real estate—(2,500)—
Total Commercial Loans(909)(3,410)(791)
Residential Loans:
Residential mortgage——(122)
Home equity line—(20)(135)
Total Residential Loans—(20)(257)
Consumer(4,854)(4,147)(4,782)
Total Loans and Leases Charged-Off(5,763)(7,577)(5,830)
Recoveries on Loans and Leases Previously Charged-Off
Commercial and industrial211171246
Residential Loans:
Residential mortgage303127
Home equity line44163177
Total Residential Loans74194204
Consumer1,6891,4502,166
Total Recoveries on Loans and Leases Previously Charged-Off1,9741,8152,616
Net Loans and Leases Charged-Off(3,789)(5,762)(3,214)
Provision for Credit Losses6,3005,3308,800
Balance at End of Period$194,649$192,138$183,321
Components:
Allowance for Credit Losses$159,836$156,533$147,122
Reserve for Unfunded Commitments34,81335,60536,199
Total Allowance for Credit Losses and Reserve for Unfunded Commitments$194,649$192,138$183,321
Average Loans and Leases Outstanding$14,312,563$14,349,322$14,079,337
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)0.11%0.16%0.09%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding1.12%1.09%1.03%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases8.87x8.42x10.75x

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(1) Annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023.

Loans and Leases by Year of Origination and Credit Quality IndicatorTable 11
Revolving
Loans
Converted
Term LoansRevolvingto Term
Amortized Cost Basis by Origination YearLoansLoans
AmortizedAmortized
(dollars in thousands)20242023202220212020PriorCost BasisCost BasisTotal
Commercial Lending
Commercial and Industrial
Risk rating:
Pass$13,488$104,265$263,282$318,417$29,787$282,287$987,132$26,745$2,025,403
Special Mention202123,276735391,3858,132—33,608
Substandard——20,3642145722,19125,638—48,979
Other (1)4,88712,88310,0534,0441,9702,39645,652—81,885
Total Commercial and Industrial18,577117,149316,975322,74832,868288,2591,066,55426,7452,189,875
Current period gross charge-offs—711146152611——909
Commercial Real Estate
Risk rating:
Pass28,321344,674864,166671,379334,6061,866,87593,4854,2234,207,729
Special Mention3,3392,2907,59141,3371,35818,5076,863—81,285
Substandard——5,0471,203—5,244652—12,146
Other (1)—————140——140
Total Commercial Real Estate31,660346,964876,804713,919335,9641,890,766101,0004,2234,301,300
Current period gross charge-offs—————————
Construction
Risk rating:
Pass14,198181,628311,175258,40059,56365,77611,872—902,612
Special Mention—————837——837
Substandard—————24,437——24,437
Other (1)85912,25817,4926,3731,3575,588704—44,631
Total Construction15,057193,886328,667264,77360,92096,63812,576—972,517
Current period gross charge-offs—————————
Lease Financing
Risk rating:
Pass50,531114,68678,02817,48828,94697,319——386,998
Special Mention—5112537720———573
Substandard5,370676392—————6,438
Total Lease Financing55,901115,41378,54517,86528,96697,319——394,009
Current period gross charge-offs—————————
Total Commercial Lending$121,195$773,412$1,600,991$1,319,305$458,718$2,372,982$1,180,130$30,968$7,857,701
Current period gross charge-offs$—$71$114$61$52$611$—$—$909
Revolving
Loans
Converted
Term LoansRevolvingto Term
Amortized Cost Basis by Origination YearLoansLoans
(continued)AmortizedAmortized
(dollars in thousands)20242023202220212020PriorCost BasisCost BasisTotal
Residential Lending
Residential Mortgage
FICO:
740 and greater$28,332$207,263$524,402$987,343$521,598$1,186,496$—$—$3,455,434
680 - 7391,52536,56967,192115,48167,662158,890——447,319
620 - 6799102,91016,26819,05612,73341,573——93,450
550 - 619—1,3036,5061,9032,47711,685——23,874
Less than 550———2,8942,0066,686——11,586
No Score (3)—9,08120,50511,4006,00658,777——105,769
Other (2)1,41913,32016,93715,74012,08832,59012,976—105,070
Total Residential Mortgage32,186270,446651,8101,153,817624,5701,496,69712,976—4,242,502
Current period gross charge-offs—————————
Home Equity Line
FICO:
740 and greater——————943,7921,428945,220
680 - 739——————162,5781,886164,464
620 - 679——————33,72892734,655
550 - 619——————13,38297114,353
Less than 550——————5,3922965,688
No Score (3)——————1,398—1,398
Total Home Equity Line——————1,160,2705,5081,165,778
Current period gross charge-offs—————————
Total Residential Lending$32,186$270,446$651,810$1,153,817$624,570$1,496,697$1,173,246$5,508$5,408,280
Current period gross charge-offs$—$—$—$—$—$—$—$—$—
Consumer Lending
FICO:
740 and greater18,67182,551113,91466,17528,10022,442116,198138448,189
680 - 73913,46464,22964,62333,16714,75513,95175,151439279,779
620 - 6794,29328,72927,21015,6416,79310,00335,179791128,639
550 - 6196206,97311,5517,6214,0256,28913,45279551,326
Less than 5501102,6346,7345,0752,8374,1795,78264627,997
No Score (3)733839209—91639,46625641,528
Other (2)—3043499603301,03273,794—76,769
Total Consumer Lending$37,891$186,259$224,590$128,639$56,849$57,912$359,022$3,065$1,054,227
Current period gross charge-offs$—$437$904$496$272$769$1,789$187$4,854
Total Loans and Leases$191,272$1,230,117$2,477,391$2,601,761$1,140,137$3,927,591$2,712,398$39,541$14,320,208
Current period gross charge-offs$—$508$1,018$557$324$1,380$1,789$187$5,763

_____________________________

(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)202420232023
Income Statement Data:
Net income$54,220$47,502$66,818
Average total stockholders' equity$2,496,840$2,374,669$2,299,422
Less: average goodwill995,492995,492995,492
Average tangible stockholders' equity$1,501,348$1,379,177$1,303,930
Average total assets$24,187,207$24,404,727$24,548,124
Less: average goodwill995,492995,492995,492
Average tangible assets$23,191,715$23,409,235$23,552,632
Return on average total stockholders' equity(1)8.73%7.94%11.78%
Return on average tangible stockholders' equity (non-GAAP)(1)14.53%13.66%20.78%
Return on average total assets(1)0.90%0.77%1.10%
Return on average tangible assets (non-GAAP)(1)0.94%0.81%1.15%
As ofAs ofAs of
March 31,December 31,March 31,
(dollars in thousands, except per share amounts)202420232023
Balance Sheet Data:
Total stockholders' equity$2,513,761$2,486,066$2,329,012
Less: goodwill995,492995,492995,492
Tangible stockholders' equity$1,518,269$1,490,574$1,333,520
Total assets$24,279,186$24,926,474$24,884,207
Less: goodwill995,492995,492995,492
Tangible assets$23,283,694$23,930,982$23,888,715
Shares outstanding127,841,908127,618,761127,573,680
Total stockholders' equity to total assets10.35%9.97%9.36%
Tangible stockholders' equity to tangible assets (non-GAAP)6.52%6.23%5.58%
Book value per share$19.66$19.48$18.26
Tangible book value per share (non-GAAP)$11.88$11.68$10.45

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(1) Annualized for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023.

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