First Hawaiian, Inc.NASDAQ: FHB

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

· Issued by First Hawaiian, Inc. via GlobeNewswire

Key figures

  • Net income of $73.2 million , or $0.58 per diluted share
  • Total loans and leases increased $58.8 million versus prior quarter
  • Total deposits increased $15.6 million versus prior quarter
  • Net interest margin increased 3 basis points to 3.11%
  • Recorded a $4.5 million provision for credit losses

On 6ix: 6ix.com/news/first-hawaiian-inc-reports-second-quarter-2025-financial-results-and-declares

Watch First Hawaiian explain itFirst Hawaiian (NASDAQ:FHB) Q2 2025 Earnings Call · Replay · Jul 25, 2025 · From 2:04 · Second Quarter Financial Performance

HONOLULU, July 25, 2025 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended June 30, 2025.

“I’m happy to report that First Hawaiian Bank had an outstanding second quarter, and posted net income of $73.2 million, a 23.6% increase over the first quarter,” said Bob Harrison, Chairman, President, and CEO. “Our results were driven by strong revenues, well controlled expenses and continued excellent credit quality.”

On July 23, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on August 29, 2025, to stockholders of record at the close of business on August 18, 2025.

Second Quarter 2025 Highlights:

  • Net income of $73.2 million, or $0.58 per diluted share
  • Total loans and leases increased $58.8 million versus prior quarter
  • Total deposits increased $15.6 million versus prior quarter
  • Net interest margin increased 3 basis points to 3.11%
  • Recorded a $4.5 million provision for credit losses
  • Provision for income taxes included a net benefit of $5.1 million due a recent change in the California tax code
  • Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet

Total assets were $23.8 billion at June 30, 2025 versus $23.7 billion at March 31, 2025.

Gross loans and leases were $14.4 billion as of June 30, 2025, an increase of $58.8 million, or 0.4%, from $14.3 billion as of March 31, 2025.

Total deposits were $20.2 billion as of June 30, 2025, an increase of $15.6 million from March 31, 2025.

Net Interest Income

Net interest income for the second quarter of 2025 was $163.6 million, an increase of $3.1 million, or 1.9%, compared to $160.5 million for the prior quarter.

The net interest margin was 3.11% in the second quarter of 2025, an increase of 3 basis points compared to 3.08% in the prior quarter.

Provision Expense

During the quarter ended June 30, 2025, we recorded a $4.5 million provision for credit losses. In the quarter ended March 31, 2025, we recorded a $10.5 million provision for credit losses.

Noninterest Income

Noninterest income was $54.0 million in the second quarter of 2025, an increase of $3.5 million compared to noninterest income of $50.5 million in the prior quarter.

Noninterest Expense

Noninterest expense was $124.9 million in the second quarter of 2025, an increase of $1.4 million compared to noninterest expense of $123.6 million in the prior quarter.

The efficiency ratio was 57.2% and 58.2% for the quarters ended June 30, 2025 and March 31, 2025, respectively.

Taxes

The effective tax rate was 16.9% and 23.0% for the quarters ended June 30, 2025 and March 31, 2025, respectively. The decrease in the effective tax rate was primarily due to the remeasurement of the California deferred tax assets as of the beginning of the year, reflecting the enactment of a recent change in the California tax code.

Asset Quality

The allowance for credit losses was $167.8 million, or 1.17% of total loans and leases, as of June 30, 2025, compared to $166.6 million, or 1.17% of total loans and leases, as of March 31, 2025. The reserve for unfunded commitments was $33.3 million as of June 30, 2025 and March 31, 2025. Net charge-offs were $3.3 million, or 0.09% of average loans and leases on an annualized basis, for the quarter ended June 30, 2025, compared to net charge-offs of $3.8 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended March 31, 2025. Total non-performing assets were $28.6 million, or 0.20% of total loans and leases and other real estate owned, on June 30, 2025, compared to total non-performing assets of $20.2 million, or 0.14% of total loans and leases and other real estate owned, on March 31, 2025.

Capital

Total stockholders' equity was $2.7 billion on June 30, 2025 versus $2.6 billion on March 31, 2025.

The tier 1 leverage, common equity tier 1 and total capital ratios were 9.12%, 13.03% and 14.28%, respectively, on June 30, 2025, compared with 9.01%, 12.93% and 14.17%, respectively, on March 31, 2025.

The Company repurchased 1.04 million shares of common stock at a total cost of $25.0 million under the stock repurchase program in the second quarter. The average cost was $23.99 per share repurchased.

First Hawaiian, Inc.

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

Conference Call Information

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

To access the call by phone, please register via the following link:https://register-conf.media-server.com/register/BI3617237efe0943198ba8998c36c623cc, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

Use of Non-GAAP Financial Measures

Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy.

Table 14 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 EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,
(dollars in thousands, except per share data)20252025202420252024
Operating Results:
Net interest income$163,583$160,526$152,851$324,109$307,278
Provision for credit losses4,50010,5001,80015,0008,100
Noninterest income53,95850,47751,768104,435103,139
Noninterest expense124,939123,560122,086248,499250,899
Net income73,24759,24861,921132,495116,141
Basic earnings per share0.580.470.481.050.91
Diluted earnings per share0.580.470.481.050.91
Dividends declared per share0.260.260.260.520.52
Dividend payout ratio44.83%55.32%54.17%49.52%57.14%
Performance Ratios(1):
Net interest margin3.11%3.08%2.92%3.10%2.91%
Efficiency ratio57.23%58.22%59.22%57.71%60.69%
Return on average total assets1.23%1.01%1.04%1.12%0.97%
Return on average tangible assets (non-GAAP)(2)1.28%1.05%1.08%1.17%1.01%
Return on average total stockholders' equity11.03%9.09%9.91%10.07%9.32%
Return on average tangible stockholders' equity (non-GAAP)(2)17.61%14.59%16.42%16.12%15.48%
Average Balances:
Average loans and leases$14,288,918$14,309,998$14,358,049$14,299,400$14,335,306
Average earning assets21,167,58821,169,19421,247,70721,168,38621,364,799
Average assets23,859,41023,890,45923,958,91323,874,84924,073,060
Average deposits20,280,04220,354,04020,308,02820,316,83620,439,979
Average stockholders' equity2,663,8502,641,9782,512,4712,652,9752,504,656
Market Value Per Share:
Closing24.9624.4420.7624.9620.76
High25.0928.2822.6828.2823.12
Low20.3223.9519.4820.3219.48
As ofAs ofAs ofAs of
June 30,March 31,December 31,June 30,
(dollars in thousands, except per share data)2025202520242024
Balance Sheet Data:
Loans and leases$14,351,869$14,293,036$14,408,258$14,359,899
Total assets23,837,14723,744,95823,828,18623,991,791
Total deposits20,231,41920,215,81620,322,21620,318,832
Short-term borrowings250,000250,000250,000500,000
Total stockholders' equity2,694,5452,648,8522,617,4862,550,312
Per Share of Common Stock:
Book value$21.61$21.07$20.70$19.94
Tangible book value (non-GAAP)(2)13.6313.1512.8312.16
Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases0.20%0.14%0.14%0.13%
Allowance for credit losses for loans and leases / total loans and leases1.17%1.17%1.11%1.12%
Capital Ratios:
Common Equity Tier 1 Capital Ratio13.03%12.93%12.80%12.73%
Tier 1 Capital Ratio13.03%12.93%12.80%12.73%
Total Capital Ratio14.28%14.17%13.99%13.92%
Tier 1 Leverage Ratio9.12%9.01%9.14%9.03%
Total stockholders' equity to total assets11.30%11.16%10.98%10.63%
Tangible stockholders' equity to tangible assets (non-GAAP)(2)7.44%7.27%7.10%6.76%
Non-Financial Data:
Number of branches48484848
Number of ATMs274273273272
Number of Full-Time Equivalent Employees2,0061,9951,9972,032
(1)Except for the efficiency ratio, amounts are annualized for the three and six months ended June 30, 2025 and 2024 and three months ended March 31, 2025.
(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 14, GAAP to Non-GAAP Reconciliation.
Consolidated Statements of IncomeTable 2
For the Three Months EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,
(dollars in thousands, except per share amounts)20252025202420252024
Interest income
Loans and lease financing$193,393$192,102$202,068$385,495$401,912
Available-for-sale investment securities12,46913,15014,14325,61928,689
Held-to-maturity investment securities16,29916,64717,57532,94635,368
Other14,57813,25111,14827,82923,917
Total interest income236,739235,150244,934471,889489,886
Interest expense
Deposits70,28971,70985,609141,998169,752
Short-term borrowings2,6272,5995,9535,22611,906
Other240316521556950
Total interest expense73,15674,62492,083147,780182,608
Net interest income163,583160,526152,851324,109307,278
Provision for credit losses4,50010,5001,80015,0008,100
Net interest income after provision for credit losses159,083150,026151,051309,109299,178
Noninterest income
Service charges on deposit accounts7,8307,5357,79315,36515,339
Credit and debit card fees15,91314,47415,86130,38732,034
Other service charges and fees13,35012,16711,03625,51720,940
Trust and investment services income9,1549,3709,42618,52419,780
Bank-owned life insurance4,7244,3713,3609,0957,646
Investment securities gains, net—37—37—
Other2,9872,5234,2925,5107,400
Total noninterest income53,95850,47751,768104,435103,139
Noninterest expense
Salaries and employee benefits59,50160,10457,737119,605116,999
Contracted services and professional fees15,99714,83916,06730,83631,806
Occupancy7,9348,1007,37716,03414,318
Equipment14,03713,87113,19627,90826,609
Regulatory assessment and fees3,7593,8233,8147,58211,934
Advertising and marketing2,0352,1791,7654,2144,377
Card rewards program8,4067,9198,71916,32517,227
Other13,27012,72513,41125,99527,629
Total noninterest expense124,939123,560122,086248,499250,899
Income before provision for income taxes88,10276,94380,733165,045151,418
Provision for income taxes14,85517,69518,81232,55035,277
Net income$73,247$59,248$61,921$132,495$116,141
Basic earnings per share$0.58$0.47$0.48$1.05$0.91
Diluted earnings per share$0.58$0.47$0.48$1.05$0.91
Basic weighted-average outstanding shares125,321,837126,281,802127,867,853125,799,060127,787,663
Diluted weighted-average outstanding shares125,833,064127,166,932128,262,594126,493,569128,279,917
Consolidated Balance SheetsTable 3
June 30,March 31,December 31,June 30,
(dollars in thousands, except share amount)2025202520242024
Assets
Cash and due from banks$304,624$240,738$258,057$290,501
Interest-bearing deposits in other banks1,094,4111,073,841912,133824,258
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,097,906 as of June 30, 2025, $2,091,034 as of March 31, 2025, $2,190,448 as of December 31, 2024 and $2,379,004 as of June 30, 2024)1,891,6541,858,4281,926,5162,067,956
Held-to-maturity, at amortized cost (fair value: $3,230,698 as of June 30, 2025, $3,250,275 as of March 31, 2025, $3,262,509 as of December 31, 2024 and $3,401,006 as of June 30, 2024)3,658,8143,724,9083,790,6503,917,175
Loans held for sale—1,547—2,820
Loans and leases14,351,86914,293,03614,408,25814,359,899
Less: allowance for credit losses167,825166,612160,393160,517
Net loans and leases14,184,04414,126,42414,247,86514,199,382
Premises and equipment, net299,149292,576288,530283,762
Accrued interest receivable77,94378,97379,97982,512
Bank-owned life insurance502,419495,567491,890486,261
Goodwill995,492995,492995,492995,492
Mortgage servicing rights4,8284,9265,0785,395
Other assets823,769851,538831,996836,277
Total assets$23,837,147$23,744,958$23,828,186$23,991,791
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing$13,386,987$13,330,265$13,347,068$13,461,365
Noninterest-bearing6,844,4326,885,5516,975,1486,857,467
Total deposits20,231,41920,215,81620,322,21620,318,832
Short-term borrowings250,000250,000250,000500,000
Retirement benefits payable95,35796,24197,135101,304
Other liabilities565,826534,049541,349521,343
Total liabilities21,142,60221,096,10621,210,70021,441,479
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 142,173,027 / 124,683,544 shares as of June 30, 2025, issued/outstanding: 142,139,353 / 125,692,598 shares as of March 31, 2025, issued/outstanding: 141,748,847 / 126,422,898 shares as of December 31, 2024 and issued/outstanding: 141,728,446 / 127,879,012 shares as of June 30, 2024)1,4221,4211,4171,417
Additional paid-in capital2,567,9362,564,4082,560,3802,554,795
Retained earnings1,000,997960,337934,048887,176
Accumulated other comprehensive loss, net(407,008)(433,769)(463,994)(519,132)
Treasury stock (17,489,483 shares as of June 30, 2025, 16,446,755 shares as of March 31, 2025, 15,325,949 shares as of December 31, 2024 and 13,849,434 shares as of June 30, 2024)(468,802)(443,545)(414,365)(373,944)
Total stockholders' equity2,694,5452,648,8522,617,4862,550,312
Total liabilities and stockholders' equity$23,837,147$23,744,958$23,828,186$23,991,791
Average Balances and Interest RatesTable 4
Three Months EndedThree Months EndedThree Months Ended
June 30, 2025March 31, 2025June 30, 2024
AverageIncome/Yield/AverageIncome/Yield/AverageIncome/Yield/
(dollars in millions)BalanceExpenseRateBalanceExpenseRateBalanceExpenseRate
Earning Assets
Interest-Bearing Deposits in Other Banks$1,276.8$14.14.45%$1,171.1$12.84.44%$773.4$10.55.45%
Available-for-Sale Investment Securities
Taxable1,869.312.52.671,891.413.22.792,100.714.12.69
Non-Taxable1.3—5.271.4—5.521.5—5.76
Held-to-Maturity Investment Securities
Taxable3,099.913.21.703,164.013.61.723,358.214.41.71
Non-Taxable596.53.32.21599.03.72.51602.94.02.64
Total Investment Securities5,567.029.02.085,655.830.52.166,063.332.52.15
Loans Held for Sale0.3—6.860.3—6.281.0—6.58
Loans and Leases(1)
Commercial and industrial2,291.535.26.162,196.833.66.202,201.638.16.96
Commercial real estate4,392.566.96.114,420.166.56.104,305.671.56.68
Construction900.414.96.66937.015.46.67984.818.57.57
Residential:
Residential mortgage4,104.140.23.924,150.340.93.944,229.440.13.80
Home equity line1,154.413.44.641,149.813.14.611,164.212.64.35
Consumer1,013.919.27.581,019.518.97.531,054.117.76.74
Lease financing432.14.23.90436.54.33.99418.34.34.09
Total Loans and Leases14,288.9194.05.4414,310.0192.75.4414,358.0202.85.67
Other Earning Assets34.60.44.9432.00.45.4852.00.75.25
Total Earning Assets(2)21,167.6237.54.5021,169.2236.44.5121,247.7246.54.66
Cash and Due from Banks222.3235.9240.4
Other Assets2,469.52,485.42,470.8
Total Assets$23,859.4$23,890.5$23,958.9
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings$6,247.5$21.01.35%$6,232.5$21.31.38%$6,000.4$23.41.57%
Money Market3,822.122.82.393,922.223.02.384,076.730.63.02
Time3,389.426.53.143,317.127.43.363,284.331.63.87
Total Interest-Bearing Deposits13,459.070.32.0913,471.871.72.1613,361.485.62.58
Other Short-Term Borrowings250.02.64.22250.02.64.22500.06.04.79
Other Interest-Bearing Liabilities20.80.24.6227.50.34.6738.20.55.48
Total Interest-Bearing Liabilities13,729.873.12.1413,749.374.62.2013,899.692.12.66
Net Interest Income$164.4$161.8$154.4
Interest Rate Spread(3)2.36%2.31%2.00%
Net Interest Margin(4)3.11%3.08%2.92%
Noninterest-Bearing Demand Deposits6,821.06,882.26,946.6
Other Liabilities644.7617.0600.2
Stockholders' Equity2,663.92,642.02,512.5
Total Liabilities and Stockholders' Equity$23,859.4$23,890.5$23,958.9
(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 $0.8 million, $1.2 million and $1.5 million for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(3)Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.
(4)Net interest margin is net interest income annualized for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, on a fully taxable-equivalent basis, divided by average total earning assets.
Average Balances and Interest RatesTable 5
Six Months EndedSix Months Ended
June 30, 2025June 30, 2024
AverageIncome/Yield/AverageIncome/Yield/
(dollars in millions)BalanceExpenseRateBalanceExpenseRate
Earning Assets
Interest-Bearing Deposits in Other Banks$1,224.3$27.04.44%$815.9$22.15.45%
Available-for-Sale Investment Securities
Taxable1,880.325.62.732,155.728.72.66
Non-Taxable1.3—5.381.6—5.68
Held-to-Maturity Investment Securities
Taxable3,131.826.81.713,387.329.01.71
Non-Taxable597.77.02.36603.27.92.65
Total Investment Securities5,611.159.42.126,147.865.62.14
Loans Held for Sale0.3—6.540.9—6.72
Loans and Leases(1)
Commercial and industrial2,244.468.86.182,183.375.36.94
Commercial real estate4,406.3133.36.104,314.6141.76.60
Construction918.630.46.67954.835.97.56
Residential:
Residential mortgage4,127.181.23.934,246.782.13.87
Home equity line1,152.126.44.621,168.124.74.24
Consumer1,016.638.17.561,068.835.76.72
Lease financing434.38.53.95399.08.04.00
Total Loans and Leases14,299.4386.75.4414,335.3403.45.65
Other Earning Assets33.30.85.2064.91.85.64
Total Earning Assets(2)21,168.4473.94.5021,364.8492.94.63
Cash and Due from Banks229.0242.4
Other Assets2,477.42,465.9
Total Assets$23,874.8$24,073.1
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings$6,240.1$42.21.36%$6,030.1$46.91.56%
Money Market3,871.845.82.384,010.859.42.98
Time3,353.554.03.253,304.863.53.86
Total Interest-Bearing Deposits13,465.4142.02.1313,345.7169.82.56
Other Short-Term Borrowings250.05.24.22500.011.94.79
Other Interest-Bearing Liabilities24.10.64.6535.60.95.36
Total Interest-Bearing Liabilities13,739.5147.82.1713,881.3182.62.65
Net Interest Income$326.1$310.3
Interest Rate Spread(3)2.33%1.98%
Net Interest Margin(4)3.10%2.91%
Noninterest-Bearing Demand Deposits6,851.47,094.3
Other Liabilities630.9592.8
Stockholders' Equity2,653.02,504.7
Total Liabilities and Stockholders' Equity$23,874.8$24,073.1
(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 $2.0 million and $3.0 million for the six months ended June 30, 2025 and 2024, respectively.
(3)Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.
(4)Net interest margin is net interest income annualized for the six months ended June 30, 2025 and 2024, on a fully taxable-equivalent basis, divided by average total earning assets.
Analysis of Change in Net Interest IncomeTable 6
Three Months Ended June 30, 2025
Compared to March 31, 2025
(dollars in millions)VolumeRateTotal (1)
Change in Interest Income:
Interest-Bearing Deposits in Other Banks$1.3$—$1.3
Available-for-Sale Investment Securities
Taxable(0.1)(0.6)(0.7)
Held-to-Maturity Investment Securities
Taxable(0.2)(0.2)(0.4)
Non-Taxable—(0.4)(0.4)
Total Investment Securities(0.3)(1.2)(1.5)
Loans and Leases
Commercial and industrial1.8(0.2)1.6
Commercial real estate0.10.30.4
Construction(0.5)—(0.5)
Residential:
Residential mortgage(0.5)(0.2)(0.7)
Home equity line0.10.20.3
Consumer—0.30.3
Lease financing—(0.1)(0.1)
Total Loans and Leases1.00.31.3
Total Change in Interest Income2.0(0.9)1.1
Change in Interest Expense:
Interest-Bearing Deposits
Savings0.1(0.4)(0.3)
Money Market(0.4)0.2(0.2)
Time0.7(1.6)(0.9)
Total Interest-Bearing Deposits0.4(1.8)(1.4)
Other Interest-Bearing Liabilities(0.1)—(0.1)
Total Change in Interest Expense0.3(1.8)(1.5)
Change in Net Interest Income$1.7$0.9$2.6
(1)The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
Analysis of Change in Net Interest IncomeTable 7
Three Months Ended June 30, 2025
Compared to June 30, 2024
(dollars in millions)VolumeRateTotal (1)
Change in Interest Income:
Interest-Bearing Deposits in Other Banks$5.8$(2.2)$3.6
Available-for-Sale Investment Securities
Taxable(1.5)(0.1)(1.6)
Held-to-Maturity Investment Securities
Taxable(1.1)(0.1)(1.2)
Non-Taxable(0.1)(0.6)(0.7)
Total Investment Securities(2.7)(0.8)(3.5)
Loans and Leases
Commercial and industrial1.6(4.5)(2.9)
Commercial real estate1.5(6.1)(4.6)
Construction(1.5)(2.1)(3.6)
Residential:
Residential mortgage(1.2)1.30.1
Home equity line(0.1)0.90.8
Consumer(0.7)2.21.5
Lease financing0.1(0.2)(0.1)
Total Loans and Leases(0.3)(8.5)(8.8)
Other Earning Assets(0.2)(0.1)(0.3)
Total Change in Interest Income2.6(11.6)(9.0)
Change in Interest Expense:
Interest-Bearing Deposits
Savings1.0(3.4)(2.4)
Money Market(1.8)(6.0)(7.8)
Time1.0(6.1)(5.1)
Total Interest-Bearing Deposits0.2(15.5)(15.3)
Other Short-Term Borrowings(2.8)(0.6)(3.4)
Other Interest-Bearing Liabilities(0.2)(0.1)(0.3)
Total Change in Interest Expense(2.8)(16.2)(19.0)
Change in Net Interest Income$5.4$4.6$10.0
(1)The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
Analysis of Change in Net Interest IncomeTable 8
Six Months Ended June 30, 2025
Compared to June 30, 2024
(dollars in millions)VolumeRateTotal (1)
Change in Interest Income:
Interest-Bearing Deposits in Other Banks$9.5$(4.6)$4.9
Available-for-Sale Investment Securities
Taxable(3.8)0.7(3.1)
Held-to-Maturity Investment Securities
Taxable(2.2)—(2.2)
Non-Taxable(0.1)(0.8)(0.9)
Total Investment Securities(6.1)(0.1)(6.2)
Loans and Leases
Commercial and industrial2.0(8.5)(6.5)
Commercial real estate2.8(11.2)(8.4)
Construction(1.3)(4.2)(5.5)
Residential:
Residential mortgage(2.2)1.3(0.9)
Home equity line(0.3)2.01.7
Consumer(1.8)4.22.4
Lease financing0.6(0.1)0.5
Total Loans and Leases(0.2)(16.5)(16.7)
Other Earning Assets(0.8)(0.2)(1.0)
Total Change in Interest Income2.4(21.4)(19.0)
Change in Interest Expense:
Interest-Bearing Deposits
Savings1.5(6.2)(4.7)
Money Market(2.0)(11.6)(13.6)
Time0.9(10.4)(9.5)
Total Interest-Bearing Deposits0.4(28.2)(27.8)
Other Short-Term Borrowings(5.4)(1.3)(6.7)
Other Interest-Bearing Liabilities(0.2)(0.1)(0.3)
Total Change in Interest Expense(5.2)(29.6)(34.8)
Change in Net Interest Income$7.6$8.2$15.8
_______________________
(1)The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
Loans and LeasesTable 9
June 30,March 31,December 31,June 30,
(dollars in thousands)2025202520242024
Commercial and industrial$2,370,210$2,261,394$2,247,428$2,208,690
Commercial real estate4,411,5854,367,4334,463,9924,305,017
Construction884,306954,072918,3261,017,649
Residential:
Residential mortgage4,085,8274,129,5184,168,1544,216,416
Home equity line1,161,8761,144,8951,151,7391,159,833
Total residential5,247,7035,274,4135,319,8935,376,249
Consumer1,011,125998,3251,023,9691,027,104
Lease financing426,940437,399434,650425,190
Total loans and leases$14,351,869$14,293,036$14,408,258$14,359,899
DepositsTable 10
June 30,March 31,December 31,June 30,
(dollars in thousands)2025202520242024
Demand$6,844,432$6,885,551$6,975,148$6,857,467
Savings6,219,8016,110,7966,021,3646,055,051
Money Market3,777,6813,865,2034,027,3344,111,609
Time3,389,5053,354,2663,298,3703,294,705
Total Deposits$20,231,419$20,215,816$20,322,216$20,318,832
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or MoreTable 11
June 30,March 31,December 31,June 30,
(dollars in thousands)2025202520242024
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial$1,184$—$329$1,084
Commercial real estate3,1852164113,085
Construction904375—447
Total Commercial Loans5,2735917404,616
Residential Loans:
Residential mortgage15,03212,80912,7687,273
Home equity line8,2866,7887,1716,124
Total Residential Loans23,31819,59719,93913,397
Total Non-Accrual Loans and Leases28,59120,18820,67918,013
Total Non-Performing Assets$28,591$20,188$20,679$18,013
Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial$942$740$1,432$110
Construction——536—
Total Commercial Loans9427401,968110
Residential mortgage3091,0081,3171,820
Consumer3,1872,5542,7341,835
Total Accruing Loans and Leases Past Due 90 Days or More$4,438$4,302$6,019$3,765
Total Loans and Leases$14,351,869$14,293,036$14,408,258$14,359,899
Allowance for Credit Losses and Reserve for Unfunded CommitmentsTable 12
For the Three Months EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,June 30,
(dollars in thousands)20252025202420252024
Balance at Beginning of Period$199,959$193,240$194,649$193,240$192,138
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial(688)(1,459)(677)(2,147)(1,586)
Lease financing(82)——(82)—
Total Commercial Loans(770)(1,459)(677)(2,229)(1,586)
Home equity line(16)(14)—(30)—
Consumer(4,543)(5,025)(4,182)(9,568)(9,036)
Total Loans and Leases Charged-Off(5,329)(6,498)(4,859)(11,827)(10,622)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial196403250599461
Commercial real estate—251—251—
Total Commercial Loans196654250850461
Residential Loans:
Residential mortgage109202812958
Home equity line326411296156
Total Residential Loans14184140225214
Consumer1,7051,9791,9503,6843,639
Total Recoveries on Loans and Leases Previously Charged-Off2,0422,7172,3404,7594,314
Net Loans and Leases Charged-Off(3,287)(3,781)(2,519)(7,068)(6,308)
Provision for Credit Losses4,50010,5001,80015,0008,100
Balance at End of Period$201,172$199,959$193,930$201,172$193,930
Components:
Allowance for Credit Losses$167,825$166,612$160,517$167,825$160,517
Reserve for Unfunded Commitments33,34733,34733,41333,34733,413
Total Allowance for Credit Losses and Reserve for Unfunded Commitments$201,172$199,959$193,930$201,172$193,930
Average Loans and Leases Outstanding$14,288,918$14,309,998$14,358,049$14,299,400$14,335,306
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)0.09%0.11%0.07%0.10%0.09%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding1.17%1.17%1.12%1.17%1.12%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases5.87x8.25x8.91x5.87x8.91x
(1)Annualized for the three and six months ended June 30, 2025 and 2024 and three months ended March 31, 2025.
Loans and Leases by Year of Origination and Credit Quality IndicatorTable 13
Revolving
Loans
Converted
Term LoansRevolvingto Term
Amortized Cost Basis by Origination YearLoansLoans
AmortizedAmortized
(dollars in thousands)20252024202320222021PriorCost BasisCost BasisTotal
Commercial Lending
Commercial and Industrial
Risk rating:
Pass$75,108$143,460$64,613$158,143$194,932$239,648$1,282,369$21,144$2,179,417
Special Mention4078742,1141,58912321,39324,455—50,955
Substandard537——10,554391,19342,079—54,402
Other (1)11,17111,3476,9265,2161,8511,58347,342—85,436
Total Commercial and Industrial87,223155,68173,653175,502196,945263,8171,396,24521,1442,370,210
Current period gross charge-offs143952023561,42030—2,147
Commercial Real Estate
Risk rating:
Pass169,890290,636374,749795,676655,6891,822,004101,2607,5884,217,492
Special Mention—3,3361,6827,45541,39654,80511,003—119,677
Substandard—5,61354057,4371,0059,193500—74,288
Other (1)—————128——128
Total Commercial Real Estate169,890299,585376,971860,568698,0901,886,130112,7637,5884,411,585
Current period gross charge-offs—————————
Construction
Risk rating:
Pass10,471141,948207,877285,083134,46949,64721,163—850,658
Special Mention—————138——138
Substandard—————904——904
Other (1)2,55714,2166,2995,2001,4862,153695—32,606
Total Construction13,028156,164214,176290,283135,95552,84221,858—884,306
Current period gross charge-offs—————————
Lease Financing
Risk rating:
Pass75,37187,08796,36252,28612,40596,879——420,390
Special Mention——209—169———378
Substandard—5,418488266————6,172
Total Lease Financing75,37192,50597,05952,55212,57496,879——426,940
Current period gross charge-offs—————82——82
Total Commercial Lending$345,512$703,935$761,859$1,378,905$1,043,564$2,299,668$1,530,866$28,732$8,093,041
Current period gross charge-offs$1$43$95$202$356$1,502$30$—$2,229

(continued)

Revolving
Loans
Converted
Term LoansRevolvingto Term
Amortized Cost Basis by Origination YearLoansLoans
(continued)AmortizedAmortized
(dollars in thousands)20252024202320222021PriorCost BasisCost BasisTotal
Residential Lending
Residential Mortgage
FICO:
740 and greater$75,024$152,336$184,091$466,879$889,999$1,539,891$—$—$3,308,220
680 - 7397,54120,37127,77380,105119,482192,183——447,455
620 - 6794,7871,2745,4468,25625,98337,856——83,602
550 - 619—1,5084447,2266,84026,115——42,133
Less than 550—1561,4391,5473,1237,033——13,298
No Score (3)1,4719,8936,03616,6599,75847,459——91,276
Other (2)11,0787,86811,82016,27413,97235,7693,062—99,843
Total Residential Mortgage99,901193,406237,049596,9461,069,1571,886,3063,062—4,085,827
Current period gross charge-offs—————————
Home Equity Line
FICO:
740 and greater——————926,3181,275927,593
680 - 739——————173,3391,656174,995
620 - 679——————34,42857935,007
550 - 619——————14,00655214,558
Less than 550——————8,1293958,524
No Score (3)——————1,199—1,199
Total Home Equity Line——————1,157,4194,4571,161,876
Current period gross charge-offs——————30—30
Total Residential Lending$99,901$193,406$237,049$596,946$1,069,157$1,886,306$1,160,481$4,457$5,247,703
Current period gross charge-offs$—$—$—$—$—$—$30$—$30
Consumer Lending
FICO:
740 and greater61,76175,35253,35065,83531,17710,41195,80496393,786
680 - 73941,44360,38235,29633,25315,6316,46384,324568277,360
620 - 67920,62226,81214,64615,7347,5704,81050,024817141,035
550 - 6192,8059,1907,1658,3754,8493,47916,57488853,325
Less than 5506643,8964,1774,7582,6692,2815,59454524,584
No Score (3)5452325821—1338,41218639,467
Other (2)229—6012405831,03278,883—81,568
Total Consumer Lending$128,069$175,864$115,293$128,216$62,479$28,489$369,615$3,100$1,011,125
Current period gross charge-offs$35$1,282$998$986$506$1,299$3,966$496$9,568
Total Loans and Leases$573,482$1,073,205$1,114,201$2,104,067$2,175,200$4,214,463$3,060,962$36,289$14,351,869
Current period gross charge-offs$36$1,325$1,093$1,188$862$2,801$4,026$496$11,827
(1)Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score (680 and above). As of June 30, 2025, the majority of the loans in this population were current.
(2)Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. As of June 30, 2025, the majority of the loans in this population were current.
(3)No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.
GAAP to Non-GAAP ReconciliationTable 14
For the Three Months EndedFor the Six Months Ended
June 30,March 31,June 30,June 30,
(dollars in thousands)20252025202420252024
Income Statement Data:
Net income$73,247$59,248$61,921$132,495$116,141
Average total stockholders' equity$2,663,850$2,641,978$2,512,471$2,652,975$2,504,656
Less: average goodwill995,492995,492995,492995,492995,492
Average tangible stockholders' equity$1,668,358$1,646,486$1,516,979$1,657,483$1,509,164
Average total assets$23,859,410$23,890,459$23,958,913$23,874,849$24,073,060
Less: average goodwill995,492995,492995,492995,492995,492
Average tangible assets$22,863,918$22,894,967$22,963,421$22,879,357$23,077,568
Return on average total stockholders' equity(1)11.03%9.09%9.91%10.07%9.32%
Return on average tangible stockholders' equity (non-GAAP)(1)17.61%14.59%16.42%16.12%15.48%
Return on average total assets(1)1.23%1.01%1.04%1.12%0.97%
Return on average tangible assets (non-GAAP)(1)1.28%1.05%1.08%1.17%1.01%
As ofAs ofAs ofAs of
June 30,March 31,December 31,June 30,
(dollars in thousands, except per share amounts)2025202520242024
Balance Sheet Data:
Total stockholders' equity$2,694,545$2,648,852$2,617,486$2,550,312
Less: goodwill995,492995,492995,492995,492
Tangible stockholders' equity$1,699,053$1,653,360$1,621,994$1,554,820
Total assets$23,837,147$23,744,958$23,828,186$23,991,791
Less: goodwill995,492995,492995,492995,492
Tangible assets$22,841,655$22,749,466$22,832,694$22,996,299
Shares outstanding124,683,544125,692,598126,422,898127,879,012
Total stockholders' equity to total assets11.30%11.16%10.98%10.63%
Tangible stockholders' equity to tangible assets (non-GAAP)7.44%7.27%7.10%6.76%
Book value per share$21.61$21.07$20.70$19.94
Tangible book value per share (non-GAAP)$13.63$13.15$12.83$12.16
(1)Annualized for the three and six months ended June 30, 2025 and 2024 and three months ended March 31, 2025.

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