EX-99.1 2 ex-99d1.htm EX-99.1 fnb_Ex_99_1

EXHIBIT 99.1

Picture 1

 

For Immediate Release

First Hawaiian, Inc. Reports First Quarter 2018 Financial Results and Declares Dividend

·

Net income of $68.0 million, or $0.49 per diluted share and core net income1 of $68.3 million, or $0.49 per diluted share.

·

1.35%  return on average total assets and 1.43% core return on average tangible assets1.

·

11.02% return on average total equity and 18.40% core return on average tangible common equity1.

·

48.1% efficiency ratio.

·

The Board of Directors declared a dividend of $0.24 per share.

HONOLULU, Hawaii April 26, 2018 -- (Globe Newswire) -- First Hawaiian, Inc. (NASDAQ:FHB), (the “Company”) today reported financial results for its first quarter ended March 31, 2018.

“We are very pleased with our performance in the first quarter,” said Bob Harrison, Chairman and Chief Executive Officer. “We had strong earnings driven by good loan growth, margin expansion, excellent asset quality, and an effective tax rate in line with our expectations. We have been very focused on managing expenses, which resulted in an efficiency ratio of 48.1%. At quarter end, the bank remained well capitalized with a tier 1 capital ratio of 12.73%, a total capital ratio of 13.77%, and a tier 1 leverage ratio of 8.71%.”

On April 25, 2018, the Company’s Board of Directors declared a quarterly cash dividend of $0.24 per share. The dividend will be payable on June 8, 2018 to shareholders of record at the close of business on May 29, 2018.

Earnings Highlights

Net income for the quarter ended March 31, 2018 was $68.0 million, or $0.49 per diluted share, compared to $11.7 million, or $0.08 per diluted share, for the quarter ended December 31, 2017, and $56.7 million, or $0.41 per diluted share, for the quarter ended March 31, 2017. Core net income1 for the quarter ended March 31, 2018 was $68.3 million, or $0.49 per diluted share, compared to $59.2 million, or $0.42 per diluted share, for the quarter ended December 31, 2017, and $57.0 million, or $0.41 per diluted share, for the quarter ended March 31, 2017.

Net interest income for the quarter ended March 31, 2018 was $139.7 million, an increase of $4.8 million compared to $134.9 million for the quarter ended December 31, 2017, and an increase of $10.3 million compared to $129.3 million for the quarter ended March 31, 2017. The increase in net interest income compared to the fourth quarter of 2017 was due to higher average balances of loans and interest-bearing deposits in other banks, and higher yields on loans and investment securities, partially offset by higher rates on deposits. The increase in net interest income compared to the first quarter of 2017 was due to higher average balances of loans and higher yields on loans, interest-bearing deposits in other banks, and investment securities, partially offset by higher rates on deposits.

Net interest margin (“NIM”) was 3.13%, 2.99% and 3.00%, for the quarters ended March 31, 2018, December 31, 2017, and March 31, 2017, respectively. The 14 basis point increase in NIM versus the prior quarter was due to increased overall yields on earnings assets, a positive $1.9 million premium amortization adjustment, and the impact of the short quarter, partially offset by higher deposit costs. Excluding the premium amortization adjustment and the impact of the short quarter, the annualized NIM would have been approximately 3.03% for the quarter ended March 31, 2018.

Results for the quarter ended March 31, 2018 included a provision for credit losses of $6.0 million compared to $5.1 million in the quarter ended December 31, 2017 and $4.5 million in the quarter ended March 31, 2017.

Noninterest income was $48.7 million in the quarter ended March 31, 2018, a decrease of $5.6 million compared to noninterest income of $54.3 million in the quarter ended December 31, 2017 and a decrease of $2.4 million compared to noninterest income of $51.1 million in the quarter ended March 31, 2017. The decrease in noninterest income compared to the fourth quarter of 2017 was primarily due to $5.9 million lower other income. Other income in the fourth quarter of 2017 quarter included a $4.3 million gain on sale of bank property and $3.7 million related to intercompany taxes. The decrease in noninterest income compared to the first quarter of 2017 was primarily due to $2.5 million lower bank-owned life insurance (BOLI) income, $1.4 million lower service charges on deposit accounts and $0.8 million lower credit and debit card fees, partially offset by $1.3 million higher other income and $0.9 million higher trust and investment services income. The first quarter of 2017 also included proceeds of $1.3 million from BOLI death benefits.

1A non-GAAP measure. For more information on this measure, including a reconciliation to the most directly comparable GAAP measure, see “Use of Non-GAAP Financial Measures” and Tables 11 and 12 at the end of this document.

 

Noninterest expense was $90.6 million for the quarter ended March 31, 2018, an increase of $0.7 million from $89.9 million in the quarter ended December 31, 2017, and an increase of $4.6 million from $86.0 million in the quarter ended March 31, 2017. The increase in noninterest expense compared to the fourth quarter of 2017 was primarily due to $1.0 million higher other expenses, $0.8 million higher contracted services and professional fees, $0.4 million higher occupancy expenses, $0.3 million higher regulatory assessments and fees and $0.2 million higher equipment expenses, partially offset by $1.5 million lower salaries and employee benefits and $0.5 million lower cards rewards program expenses. Salaries and benefits in the fourth quarter included a $3.4 million expense due to bonuses awarded to virtually all employees following the passage of the Tax Cuts and Jobs Act. The increase in noninterest expense compared to the first quarter of 2017 was primarily due to $2.0 million higher contracted services and professional fees, a $1.8 million increase in salaries and benefits, $0.8 million higher occupancy expenses, and $0.6 million higher other expenses, partially offset by $1.1 million lower advertising and marketing expenses.

The efficiency ratio was 48.1%, 47.5% and 47.7% for the quarters ended March 31, 2018, December 31, 2017 and March 31, 2017, respectively.

The effective tax rate for the first quarter of 2018 was 26.0% compared to 87.6% in the fourth quarter of 2017 and 36.9% in the same quarter last year. The lower effective tax rate in the first quarter of 2018 compared to the previous quarter and the same quarter last year was due to the lower corporate tax rate resulting from the Tax Cuts and Jobs Act. The provision for taxes in the fourth quarter of 2017 included a $47.6 million charge due to the revaluation of certain tax-related assets at the projected lower corporate tax rate resulting from the Tax Cuts and Jobs Act. Excluding the one-time charge, the effective tax rate for the fourth quarter of 2017 was 37.1%.

Balance Sheet Highlights

Total assets were $20.2 billion at March 31, 2018, compared to $20.5 billion at December 31, 2017 and $19.8 billion at March 31, 2017.

The investment securities portfolio was $5.1 billion at March 31, 2018, compared to $5.2 billion at December 31, 2017 and $5.3 billion at March 31, 2017. The portfolio remains largely comprised of securities issued by U.S. government agencies.

Total loans and leases were $12.5 billion at March 31, 2018, up 1.5%, from $12.3 billion at December 31, 2017 and up 5.8% from $11.8 billion at March 31, 2017.

The growth in loans and leases in the first quarter of 2018 compared to the fourth quarter of 2017 was led by increases in commercial and industrial loans (C&I) of $83.9 million, commercial real estate loans of $71.0 million, residential real estate loans of $66.0 million, and consumer loans of $9.5 million.  Construction loans declined by $38.6 million, primarily due to the completion of several large commercial construction projects.  Compared to March 31, 2017, the growth in loans and leases was due to increases in residential real estate loans of $291.5 million, commercial real estate loans of $206.3 million, construction loans of $124.5 million and consumer loans of $92.9 million. C&I loans declined by $24.3 million.

Total deposits were $17.4 billion at March 31, 2018, a decrease of $0.2 billion, or 1.4%, from $17.6 billion at December 31, 2017, and an increase of $0.4 billion, or 2.5%, compared to $16.9 billion at March 31, 2017.

Asset Quality

The Company's asset quality remained excellent during the first quarter of 2018. Total non-performing assets were $12.1 million, or 0.10% of total loans and leases and other real estate owned, at March 31, 2018, compared to non-performing assets of $10.2 million, or 0.08% of total loans and leases and other real estate owned, at December 31, 2017 and non-performing assets of $7.7 million, or 0.07% of total loans and leases and other real estate owned, at March 31, 2017.

Net charge-offs for the quarter ended March 31, 2018 were $4.6 million, or 0.15% of average loans and leases on an annualized basis, compared to $5.2 million, or 0.17% of average loans and leases on an annualized basis for the quarter ended December 31, 2017 and $4.1 million, or 0.15% of average loans and leases on an annualized basis for the quarter ended March 31, 2017.

The ratio of the allowance for loan and lease losses to total loans and leases was 1.11% at March 31, 2018 compared to 1.12% at December 31, 2017 and 1.15% at March 31, 2017.

Capital

Total stockholders' equity was $2.5 billion at March 31, 2018, December 31, 2017 and March 31, 2017.

The tier 1 leverage, common equity tier 1, and total capital ratios were 8.71%, 12.73% and 13.77%, respectively, at March 31, 2018, compared with 8.52%, 12.45% and 13.50% at December 31, 2017 and 8.52%, 12.78% and 13.87% at March 31, 2017.

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 5:00 p.m. Eastern Time, 11:00 a.m. Hawaii Time. To access the call, participants should dial (844) 452-2942 (US/Canada), or (574) 990-9846 (International) ten minutes prior to the start of the call and enter the conference ID: 8467599. 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. A telephonic replay of the conference call will be available two hours after the conclusion of the call until 8:30 p.m. (Eastern Time) on May 6, 2018. Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 8467599.

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, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. For a discussion of some of the 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, 2017.

Use of Non-GAAP Financial Measures

We present net interest income, noninterest income, noninterest expense, net income, earnings per share and the related ratios described below, on an adjusted, or ‘‘core,’’ basis, each a non-GAAP financial measure. These core measures exclude from the corresponding GAAP measure the impact of certain items that we do not believe are representative of our financial results. We believe that the presentation of these non-GAAP financial measures helps identify underlying trends in our business from period to period that could otherwise be distorted by the effect of certain expenses, gains and other items included in our operating results. We believe that these core measures provide useful information about our operating results and enhance the overall understanding of our past performance and future performance.  Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition.

Core net interest margin, core return on average total assets and core return on average total stockholders’ equity are non-GAAP financial measures. We compute our core net interest margin as the ratio of core net interest income to average earning assets. We compute our core return on average total assets as the ratio of core net income to average total assets. We compute our core return on average total stockholders’ equity as the ratio of core net income to average stockholders’ equity.

Return on average tangible stockholders’ equity, core return on average tangible stockholders’ equity, return on average tangible assets, core return on average tangible assets and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. 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 core return on average tangible stockholders’ equity as the ratio of core 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 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 core return on average tangible assets as the ratio of core net income to average tangible assets. 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. 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.

Tables 11 and 12 at the end of this document provide a reconciliation of these non-GAAP financial measures with their most closely related GAAP measures.

 

 

Investor Relations Contact:

Media Contact:

Kevin Haseyama, CFA

Susan Kam

(808) 525‑6268

(808) 525‑6254

khaseyama@fhb.com

skam@fhb.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Highlights

 

 

 

 

 

 

 

 

Table 1

 

 

 

 

For the Three Months Ended

 

 

 

 

March 31, 

 

December 31,

 

March 31, 

 

(dollars in thousands, except per share data)

 

    

2018

    

2017

    

2017

    

Operating Results:

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

139,672

 

$

134,886

 

$

129,345

 

Provision for loan and lease losses

 

 

 

5,950

 

 

5,100

 

 

4,500

 

Noninterest income(1)

 

 

 

48,700

 

 

54,324

 

 

51,059

 

Noninterest expense(1)

 

 

 

90,587

 

 

89,850

 

 

85,991

 

Net income

 

 

 

67,958

 

 

11,684

 

 

56,740

 

Basic earnings per share

 

 

 

0.49

 

 

0.08

 

 

0.41

 

Diluted earnings per share

 

 

 

0.49

 

 

0.08

 

 

0.41

 

Dividends declared per share

 

 

 

0.24

 

 

0.22

 

 

0.22

 

Dividend payout ratio

 

 

 

48.98

%

 

275.00

%

 

53.66

%

Supplemental Income Statement Data (non-GAAP):

 

 

 

 

 

 

 

 

 

 

 

Core net interest income

 

 

$

139,672

 

$

134,886

 

$

129,345

 

Core noninterest income(1)

 

 

 

48,700

 

 

50,069

 

 

51,059

 

Core noninterest expense(1)

 

 

 

90,180

 

 

85,777

 

 

85,607

 

Core net income

 

 

 

68,259

 

 

59,163

 

 

56,982

 

Core basic earnings per share

 

 

 

0.49

 

 

0.42

 

 

0.41

 

Core diluted earnings per share

 

 

 

0.49

 

 

0.42

 

 

0.41

 

Performance Ratio:

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 

3.13

%  

 

2.99

%  

 

3.00

%  

Core net interest margin (non-GAAP)

 

 

 

3.13

%  

 

2.99

%  

 

3.00

%  

Efficiency ratio(1)

 

 

 

48.08

%  

 

47.47

%  

 

47.66

%  

Core efficiency ratio (non-GAAP)(1)

 

 

 

47.86

%  

 

46.36

%  

 

47.45

%  

Return on average total assets

 

 

 

1.35

%  

 

0.23

%  

 

1.16

%  

Core return on average total assets (non-GAAP)

 

 

 

1.36

%  

 

1.16

%  

 

1.17

%  

Return on average tangible assets

 

 

 

1.42

%  

 

0.24

%  

 

1.23

%  

Core return on average tangible assets (non-GAAP)

 

 

 

1.43

%  

 

1.22

%  

 

1.23

%  

Return on average total stockholders' equity

 

 

 

11.02

%  

 

1.80

%  

 

9.25

%  

Core return on average total stockholders' equity (non-GAAP)

 

 

 

11.07

%  

 

9.13

%  

 

9.29

%  

Return on average tangible stockholders' equity (non-GAAP)

 

 

 

18.32

%  

 

2.94

%  

 

15.41

%  

Core return on average tangible stockholders’ equity (non-GAAP)

 

 

 

18.40

%  

 

14.90

%  

 

15.48

%  

Average Balances:

 

 

 

 

 

 

 

 

 

 

 

Average loans and leases

 

 

$

12,296,678

 

$

12,169,167

 

$

11,582,645

 

Average earning assets

 

 

 

18,088,280

 

 

17,904,956

 

 

17,470,726

 

Average assets

 

 

 

20,407,718

 

 

20,193,919

 

 

19,769,508

 

Average deposits

 

 

 

17,504,054

 

 

17,211,872

 

 

16,900,354

 

Average shareholders' equity

 

 

 

2,500,299

 

 

2,570,704

 

 

2,488,519

 

Market Value Per Share:

 

 

 

 

 

 

 

 

 

 

 

    Closing

 

 

 

27.83

 

 

29.18

 

 

29.92

 

    High

 

 

 

32.36

 

 

30.85

 

 

35.32

 

    Low

 

 

 

26.92

 

 

27.34

 

 

28.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

As of

 

As of

 

 

 

March 31, 

 

December 31,

 

March 31, 

 

 

    

2018

 

2017

 

2017

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

$

12,464,165

 

$

12,277,369

 

$

11,781,496

 

Total assets

 

 

20,242,942

 

 

20,549,461

 

 

19,792,785

 

Total deposits

 

 

17,362,422

 

 

17,612,122

 

 

16,938,178

 

Total stockholders' equity

 

 

2,520,862

 

 

2,532,551

 

 

2,505,994

 

 

 

 

 

 

 

 

 

 

 

 

Per Share of Common Stock:

 

 

 

 

 

 

 

 

 

 

Book value

 

$

18.06

 

$

18.14

 

$

17.96

 

Tangible book value (non-GAAP)

 

 

10.93

 

 

11.01

 

 

10.82

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases / total loans and leases

 

 

0.10

%  

 

0.08

%

 

0.06

%  

Allowance for loan and lease losses / total loans and leases

 

 

1.11

%  

 

1.12

%

 

1.15

%  

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio

 

  

12.73

%  

  

12.45

%

  

12.78

%  

Tier 1 Capital Ratio

 

 

12.73

%  

 

12.45

%

 

12.78

%  

Total Capital Ratio

 

 

13.77

%  

 

13.50

%

 

13.87

%  

Tier 1 Leverage Ratio

 

 

8.71

%  

 

8.52

%

 

8.52

%  

Total stockholders' equity to total assets

 

 

12.45

%  

 

12.32

%

 

12.66

%  

Tangible stockholders' equity to tangible assets (non-GAAP)

 

 

7.93

%  

 

7.86

%

 

8.04

%  

 

 

 

 

 

 

 

 

 

 

 

Non-Financial Data:

 

 

 

 

 

 

 

 

 

 

Number of branches

 

 

61

 

 

62

 

 

62

 

Number of ATMs

 

 

310

 

 

310

 

 

311

 

Number of Full-Time Equivalent Employees

 

 

2,213

 

 

2,220

 

 

2,195

 

(1)

Subsequent to the issuance of the Company’s interim condensed consolidated financial statements as of September 30, 2017, the Company’s management determined that certain expenses related to the card rewards program were incorrectly offset against credit and debit card fee income and credit card interchange assessment fees were incorrectly classified in card rewards program expenses versus credit and debit card fee income in the interim condensed consolidated statements of income for the three months ended March 31, 2017.  As a result, certain noninterest income and noninterest expense amounts have been revised from the amounts previously reported to correct the classification errors. There was no change to net income or earnings per share as previously reported as a result of these errors. Management has evaluated the materiality of these errors on its prior period financial statements from a quantitative and qualitative perspective, and has concluded that these errors were not material to any prior annual or interim period.

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Income

 

Table 2

 

 

Three Months Ended

 

 

March 31, 

 

December 31,

 

March 31, 

(dollars in thousands, except per share amounts)

    

2018

    

2017

    

2017

Interest income

 

 

 

 

 

 

 

 

 

Loans and lease financing

 

$

123,551

 

$

120,244

 

$

109,266

Available-for-sale securities

 

 

28,993

 

 

26,589

 

 

26,429

Other

 

 

2,392

 

 

1,725

 

 

1,226

Total interest income

 

 

154,936

 

 

148,558

 

 

136,921

Interest expense

 

 

 

 

 

 

 

 

 

Deposits

 

 

15,264

 

 

13,665

 

 

7,570

Short-term borrowings and long-term debt

 

 

 —

 

 

 7

 

 

 6

Total interest expense

 

 

15,264

 

 

13,672

 

 

7,576

Net interest income

 

 

139,672

 

 

134,886

 

 

129,345

Provision for loan and lease losses

 

 

5,950

 

 

5,100

 

 

4,500

Net interest income after provision for loan and lease losses

 

 

133,722

 

 

129,786

 

 

124,845

Noninterest income

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

7,955

 

 

8,259

 

 

9,381

Credit and debit card fees

 

 

15,497

 

 

15,599

 

 

16,305

Other service charges and fees

 

 

9,342

 

 

8,346

 

 

9,097

Trust and investment services income

 

 

8,231

 

 

7,949

 

 

7,338

Bank-owned life insurance

 

 

2,044

 

 

2,659

 

 

4,578

Other

 

 

5,631

 

 

11,512

 

 

4,360

Total noninterest income

 

 

48,700

 

 

54,324

 

 

51,059

Noninterest expense

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

42,160

 

 

43,627

 

 

40,408

Contracted services and professional fees

 

 

12,287

 

 

11,481

 

 

10,308

Occupancy

 

 

6,484

 

 

6,103

 

 

5,709

Equipment

 

 

4,588

 

 

4,349

 

 

4,197

Regulatory assessment and fees

 

 

3,973

 

 

3,715

 

 

3,774

Advertising and marketing

 

 

951

 

 

936

 

 

2,028

Card rewards program

 

 

5,718

 

 

6,256

 

 

5,775

Other

 

 

14,426

 

 

13,383

 

 

13,792

Total noninterest expense

 

 

90,587

 

 

89,850

 

 

85,991

Income before provision for income taxes

 

 

91,835

 

 

94,260

 

 

89,913

Provision for income taxes

 

 

23,877

 

 

82,576

 

 

33,173

Net income

 

$

67,958

 

$

11,684

 

$

56,740

Basic earnings per share

 

$

0.49

 

$

0.08

 

$

0.41

Diluted earnings per share

 

$

0.49

 

$

0.08

 

$

0.41

Dividends declared per share

 

$

0.24

 

$

0.22

 

$

0.22

Basic weighted-average outstanding shares

 

 

139,600,712

 

 

139,588,782

 

 

139,545,728

Diluted weighted-average outstanding shares

 

 

139,732,100

 

 

139,698,674

 

 

139,637,410

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

Table 3

 

 

March 31, 

 

December 31,

 

March 31, 

(dollars in thousands)

    

2018

    

2017

    

2017

Assets

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

283,135

 

$

367,084

 

$

249,953

Interest-bearing deposits in other banks

 

 

409,357

 

 

667,560

 

 

527,659

Investment securities

 

 

5,076,766

 

 

5,234,658

 

 

5,260,262

Loans held for sale

 

 

397

 

 

556

 

 

 —

Loans and leases

 

 

12,464,165

 

 

12,277,369

 

 

11,781,496

Less: allowance for loan and lease losses

 

 

138,574

 

 

137,253

 

 

135,847

Net loans and leases

 

 

12,325,591

 

 

12,140,116

 

 

11,645,649

 

 

 

 

 

 

 

 

 

 

Premises and equipment, net

 

 

288,565

 

 

289,215

 

 

295,608

Other real estate owned and repossessed personal property

 

 

 —

 

 

329

 

 

329

Accrued interest receivable

 

 

47,499

 

 

47,987

 

 

39,386

Bank-owned life insurance

 

 

440,054

 

 

438,010

 

 

429,800

Goodwill

 

 

995,492

 

 

995,492

 

 

995,492

Mortgage servicing rights

 

 

18,659

 

 

13,196

 

 

15,800

Other assets

 

 

357,427

 

 

355,258

 

 

332,847

Total assets

 

$

20,242,942

 

$

20,549,461

 

$

19,792,785

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Interest-bearing

 

$

11,312,288

 

$

11,485,269

 

$

10,917,631

Noninterest-bearing

 

 

6,050,134

 

 

6,126,853

 

 

6,020,547

Total deposits

 

 

17,362,422

 

 

17,612,122

 

 

16,938,178

Long-term debt

 

 

34

 

 

34

 

 

41

Retirement benefits payable

 

 

134,684

 

 

134,218

 

 

133,819

Other liabilities

 

 

224,940

 

 

270,536

 

 

214,753

Total liabilities

 

 

17,722,080

 

 

18,016,910

 

 

17,286,791

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

 

Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 139,611,795 / 139,601,123 shares as of March 31, 2018, issued/outstanding: 139,599,454 / 139,588,782 shares as of December 31, 2017 and issued and outstanding: 139,546,615 shares as of March 31, 2017)

 

 

1,396

 

 

1,396

 

 

1,395

Additional paid-in capital

 

 

2,490,910

 

 

2,488,643

 

 

2,486,596

Retained earnings

 

 

193,522

 

 

139,177

 

 

104,695

Accumulated other comprehensive loss, net

 

 

(164,684)

 

 

(96,383)

 

 

(86,692)

Treasury stock (10,672 shares as of both March 31, 2018 and December 31, 2017 and nil as of March 31, 2017)

 

 

(282)

 

 

(282)

 

 

 —

Total stockholders' equity

 

 

2,520,862

 

 

2,532,551

 

 

2,505,994

Total liabilities and stockholders' equity

 

$

20,242,942

 

$

20,549,461

 

$

19,792,785

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances and Interest Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 4

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

 

 

March 31, 2018

 

December 31, 2017

 

March 31, 2017

 

 

 

Average

 

Income/

 

Yield/

 

Average

 

Income/

 

Yield/

 

Average

 

Income/

 

Yield/

 

(dollars in millions)

    

Balance

    

Expense

    

Rate

    

Balance

    

Expense

    

Rate

    

Balance

    

Expense

    

Rate

 

Earning Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits in Other Banks

 

$

616.8

 

$

2.3

 

1.53

%  

$

479.4

 

$

1.6

 

1.31

%  

$

640.2

 

$

1.2

 

0.78

%

Available-for-Sale Investment Securities

 

 

5,160.3

 

 

29.0

 

2.28

 

 

5,236.8

 

 

26.6

 

2.01

 

 

5,236.6

 

 

26.4

 

2.05

 

Loans Held for Sale

 

 

0.1

 

 

 —

 

2.99

 

 

0.1

 

 

 —

 

3.57

 

 

 —

 

 

 —

 

 —

 

Loans and Leases (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

3,104.4

 

 

27.7

 

3.62

 

 

3,130.3

 

 

26.3

 

3.34

 

 

3,233.6

 

 

24.3

 

3.04

 

Real estate - commercial

 

 

2,799.9

 

 

26.5

 

3.83

 

 

2,755.1

 

 

25.6

 

3.68

 

 

2,481.2

 

 

22.2

 

3.63

 

Real estate - construction

 

 

621.2

 

 

5.7

 

3.74

 

 

605.5

 

 

5.5

 

3.57

 

 

460.3

 

 

3.7

 

3.25

 

Real estate - residential

 

 

4,009.8

 

 

41.1

 

4.15

 

 

3,933.9

 

 

40.3

 

4.07

 

 

3,723.7

 

 

37.6

 

4.10

 

Consumer

 

 

1,599.6

 

 

21.3

 

5.41

 

 

1,575.1

 

 

21.3

 

5.36

 

 

1,513.4

 

 

20.3

 

5.43

 

Lease financing

 

 

161.8

 

 

1.2

 

3.10

 

 

169.3

 

 

1.3

 

2.94

 

 

170.5

 

 

1.2

 

2.77

 

Total Loans and Leases

 

 

12,296.7

 

 

123.5

 

4.07

 

 

12,169.2

 

 

120.3

 

3.92

 

 

11,582.7

 

 

109.3

 

3.83

 

Other Earning Assets

 

 

14.4

 

 

0.1

 

1.68

 

 

19.5

 

 

0.1

 

2.98

 

 

11.2

 

 

 —

 

0.77

 

Total Earning Assets (2)

 

 

18,088.3

 

 

154.9

 

3.47

 

 

17,905.0

 

 

148.6

 

3.29

 

 

17,470.7

 

 

136.9

 

3.18

 

Cash and Due from Banks

 

 

318.9

 

 

 

 

 

 

 

317.5

 

 

 

 

 

 

 

324.7

 

 

 

 

 

 

Other Assets

 

 

2,000.5

 

 

 

 

 

 

 

1,971.4

 

 

 

 

 

 

 

1,974.1

 

 

 

 

 

 

Total Assets

 

$

20,407.7

 

 

 

 

 

 

$

20,193.9

 

 

 

 

 

 

$

19,769.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings

 

$

4,543.1

 

$

1.7

 

0.15

%  

$

4,401.0

 

$

1.3

 

0.12

%  

$

4,506.4

 

$

0.7

 

0.06

%

Money Market

 

 

2,710.9

 

 

1.7

 

0.26

 

 

2,582.1

 

 

1.1

 

0.17

 

 

2,494.3

 

 

0.6

 

0.09

 

Time

 

 

4,252.3

 

 

11.8

 

1.13

 

 

4,299.7

 

 

11.3

 

1.04

 

 

3,985.8

 

 

6.3

 

0.65

 

Total Interest-Bearing Deposits

 

 

11,506.3

 

 

15.2

 

0.54

 

 

11,282.8

 

 

13.7

 

0.48

 

 

10,986.5

 

 

7.6

 

0.28

 

Short-Term Borrowings

 

 

 —

 

 

 —

 

 —

 

 

2.3

 

 

 —

 

1.11

 

 

3.9

 

 

 —

 

0.54

 

Total Interest-Bearing Liabilities

 

 

11,506.3

 

 

15.2

 

0.54

 

 

11,285.1

 

 

13.7

 

0.48

 

 

10,990.4

 

 

7.6

 

0.28

 

Net Interest Income

 

 

 

 

$

139.7

 

 

 

 

 

 

$

134.9

 

 

 

 

 

 

$

129.3

 

 

 

Interest Rate Spread

 

 

 

 

 

 

 

2.93

%  

 

 

 

 

 

 

2.81

%  

 

 

 

 

 

 

2.90

%

Net Interest Margin

 

 

 

 

 

 

 

3.13

%  

 

 

 

 

 

 

2.99

%  

 

 

 

 

 

 

3.00

%

Noninterest-Bearing Demand Deposits

 

 

5,997.8

 

 

 

 

 

 

 

5,929.1

 

 

 

 

 

 

 

5,913.9

 

 

 

 

 

 

Other Liabilities

 

 

403.3

 

 

 

 

 

 

 

409.0

 

 

 

 

 

 

 

376.7

 

 

 

 

 

 

Stockholders' Equity

 

 

2,500.3

 

 

 

 

 

 

 

2,570.7

 

 

 

 

 

 

 

2,488.5

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity

 

$

20,407.7

 

 

 

 

 

 

$

20,193.9

 

 

 

 

 

 

$

19,769.5

 

 

 

 

 

 

(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)

For the periods disclosed above, the taxable-equivalent basis adjustments made to the table above were not material.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Analysis of Change in Net Interest Income

 

 

 

 

 

 

 

 

Table 5

 

 

Three Months Ended March 31, 2018

 

 

Compared to December 31, 2017

(dollars in millions)

 

Volume

 

Rate

 

Total

Change in Interest Income:

    

 

 

    

 

 

    

 

 

Interest-Bearing Deposits in Other Banks

 

$

0.5

 

$

0.3

 

$

0.8

Available-for-Sale Investment Securities

 

 

(0.4)

 

 

2.8

 

 

2.4

Loans and Leases

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

(0.2)

 

 

1.6

 

 

1.4

Real estate - commercial

 

 

0.4

 

 

0.5

 

 

0.9

Real estate - construction

 

 

0.2

 

 

0.1

 

 

0.3

Real estate - residential

 

 

0.8

 

 

(0.1)

 

 

0.7

Consumer

 

 

0.3

 

 

(0.3)

 

 

 —

Lease financing

 

 

 —

 

 

(0.1)

 

 

(0.1)

Total Loans and Leases

 

 

1.5

 

 

1.7

 

 

3.2

Total Change in Interest Income

 

 

1.6

 

 

4.8

 

 

6.4

 

 

 

 

 

 

 

 

 

 

Change in Interest Expense:

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

 

 

 

Savings

 

 

 —

 

 

0.4

 

 

0.4

Money Market

 

 

0.1

 

 

0.5

 

 

0.6

Time

 

 

(0.1)

 

 

0.7

 

 

0.6

Total Interest-Bearing Deposits

 

 

 —

 

 

1.6

 

 

1.6

Total Change in Interest Expense

 

 

 —

 

 

1.6

 

 

1.6

Change in Net Interest Income

 

$

1.6

 

$

3.2

 

$

4.8

 

 

 

 

 

 

 

 

 

 

 

 

Analysis of Change in Net Interest Income

 

 

 

 

 

 

 

 

Table 6

 

 

Three Months Ended March 31, 2018

 

 

Compared to March 31, 2017

(dollars in millions)

 

Volume

 

Rate

 

Total

Change in Interest Income:

    

 

 

    

 

 

    

 

 

Interest-Bearing Deposits in Other Banks

 

$

 —

 

$

1.1

 

$

1.1

Available-for-Sale Investment Securities

 

 

(0.4)

 

 

3.0

 

 

2.6

Loans and Leases

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

(1.0)

 

 

4.5

 

 

3.5

Real estate - commercial

 

 

3.0

 

 

1.2

 

 

4.2

Real estate - construction

 

 

1.4

 

 

0.7

 

 

2.1

Real estate - residential

 

 

2.9

 

 

0.5

 

 

3.4

Consumer

 

 

1.1

 

 

(0.1)

 

 

1.0

Lease financing

 

 

 —

 

 

0.1

 

 

0.1

Total Loans and Leases

 

 

7.4

 

 

6.9

 

 

14.3

Total Change in Interest Income

 

 

7.0

 

 

11.0

 

 

18.0

 

 

 

 

 

 

 

 

 

 

Change in Interest Expense:

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

 

 

 

Savings

 

 

 —

 

 

1.0

 

 

1.0

Money Market

 

 

0.1

 

 

1.1

 

 

1.2

Time

 

 

0.5

 

 

5.0

 

 

5.5

Total Interest-Bearing Deposits

 

 

0.6

 

 

7.1

 

 

7.7

Total Change in Interest Expense

 

 

0.6

 

 

7.1

 

 

7.7

Change in Net Interest Income

 

$

6.4

 

$

3.9

 

$

10.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and Leases

 

 

 

 

 

 

 

 

 

Table 7

 

 

 

March 31, 

 

December 31,

 

March 31, 

(dollars in thousands)

 

    

2018

    

2017

    

2017

Commercial and industrial

 

  

$

3,219,210

  

$

3,135,266

  

$

3,243,508

Real estate:

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

2,738,557

 

 

2,667,597

 

 

2,532,253

Construction

 

 

 

594,266

 

 

632,911

 

 

469,741

Residential

 

 

 

4,156,003

 

 

4,090,053

 

 

3,864,509

Total real estate

 

 

 

7,488,826

 

 

7,390,561

 

 

6,866,503

Consumer

 

 

 

1,595,989

 

 

1,586,476

 

 

1,503,129

Lease financing

 

 

 

160,140

 

 

165,066

 

 

168,356

Total loans and leases

 

 

$

12,464,165

 

$

12,277,369

 

$

11,781,496

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

Table 8

 

 

March 31, 

 

December 31,

 

March 31, 

(dollars in thousands)

    

2018

    

2017

    

2017

Demand

 

$

6,050,134

 

$

6,126,853

 

$

6,020,547

Savings

 

 

4,614,668

 

 

4,509,419

 

 

4,503,663

Money Market

 

 

2,631,894

 

 

2,801,968

 

 

2,496,642

Time

 

 

4,065,726

 

 

4,173,882

 

 

3,917,326

    Total Deposits

 

$

17,362,422

 

$

17,612,122

 

$

16,938,178

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More

 

 

 

 

 

 

 

 

 

Table 9

 

 

 

March 31, 

 

December 31,

 

March 31, 

(dollars in thousands)

 

    

2018

    

2017

    

2017

Non-Performing Assets

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans and Leases

 

 

 

 

 

 

 

 

 

 

Commercial Loans:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

$

1,888

 

$

2,932

 

$

2,154

Real estate - commercial

 

 

 

2,885

 

 

1,786

 

 

 —

Real estate - construction

 

 

 

2,001

 

 

 —

 

 

 —

Lease financing

 

 

 

 —

 

 

 —

 

 

153

Total Commercial Loans

 

 

 

6,774

 

 

4,718

 

 

2,307

Residential

 

 

 

5,349

 

 

5,107

 

 

5,023

Total Non-Accrual Loans and Leases

 

 

 

12,123

 

 

9,825

 

 

7,330

Other Real Estate Owned

 

 

 

 —

 

 

329

 

 

329

Total Non-Performing Assets

 

 

$

12,123

 

$

10,154

 

$

7,659

 

 

 

 

 

 

 

 

 

 

 

Accruing Loans and Leases Past Due 90 Days or More

 

 

 

 

 

 

 

 

 

 

Commercial Loans:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

$

83

 

$

220

 

$

309

Real estate - commercial

 

 

 

 —

 

 

1,400

 

 

 —

Real estate - construction

 

 

 

343

 

 

 —

 

 

 —

Lease financing

 

 

 

 —

 

 

 —

 

 

84

Total Commercial Loans

 

 

 

426

 

 

1,620

 

 

393

Residential

 

 

 

1,469

 

 

1,360

 

 

1,437

Consumer

 

 

 

1,744

 

 

1,394

 

 

1,718

Total Accruing Loans and Leases Past Due 90 Days or More

 

 

$

3,639

 

$

4,374

 

$

3,548

 

 

 

 

 

 

 

 

 

 

 

Restructured Loans on Accrual Status and Not Past Due 90 Days or More

 

 

 

33,429

 

 

34,130

 

 

50,758

Total Loans and Leases

 

 

$

12,464,165

 

$

12,277,369

 

$

11,781,496

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan and Lease Losses

 

 

 

 

 

 

 

 

Table 10

 

 

 

For the Three Months Ended

 

 

 

March 31, 

 

December 31,

 

March 31, 

 

(dollars in thousands)

    

2018

    

2017

    

2017

    

Balance at Beginning of Period

 

$

137,253

 

$

137,327

 

$

135,494

 

Loans and Leases Charged-Off

 

 

 

 

 

 

 

 

 

 

Commercial Loans:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

(475)

 

 

(181)

 

 

(855)

 

Total Commercial Loans

 

 

(475)

 

 

(181)

 

 

(855)

 

Residential

 

 

 —

 

 

(93)

 

 

(22)

 

Consumer

 

 

(6,625)

 

 

(6,765)

 

 

(5,572)

 

Total Loans and Leases Charged-Off

 

 

(7,100)

 

 

(7,039)

 

 

(6,449)

 

Recoveries on Loans and Leases Previously Charged-Off

 

 

 

 

 

 

 

 

 

 

Commercial Loans:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

64

 

 

19

 

 

114

 

Real estate - commercial

 

 

122

 

 

128

 

 

77

 

Total Commercial Loans

 

 

186

 

 

147

 

 

191

 

Residential

 

 

182

 

 

77

 

 

321

 

Consumer

 

 

2,103

 

 

1,641

 

 

1,790

 

Total Recoveries on Loans and Leases Previously Charged-Off

 

 

2,471

 

 

1,865

 

 

2,302

 

Net Loans and Leases Charged-Off

 

 

(4,629)

 

 

(5,174)

 

 

(4,147)

 

Provision for Loan and Lease Losses

 

 

5,950

 

 

5,100

 

 

4,500

 

Balance at End of Period

 

$

138,574

 

$

137,253

 

$

135,847

 

Average Loans and Leases Outstanding

 

$

12,296,678

 

$

12,169,167

 

$

11,582,645

 

Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding

 

 

0.15

%  

 

0.17

%  

 

0.15

%  

Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding

 

 

1.11

%  

 

1.12

%  

 

1.15

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP to Non-GAAP Reconciliation

 

 

 

 

 

 

Table 11

 

 

 

For the Three Months Ended

 

 

 

March 31, 

 

December 31,

 

March 31, 

 

(dollars in thousands, except per share amounts)

    

2018

    

2017

    

2017

    

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

Net income

 

$

67,958

 

$

11,684

 

$

56,740

 

 

 

 

 

 

 

 

 

 

 

 

Average total stockholders' equity

 

$

2,500,299

 

$

2,570,704

 

$

2,488,519

 

Less: average goodwill

 

 

995,492

 

 

995,492

 

 

995,492

 

Average tangible stockholders' equity

 

$

1,504,807

 

$

1,575,212

 

$

1,493,027

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

$

20,407,718

 

$

20,193,919

 

$

19,769,508

 

Less: average goodwill

 

 

995,492

 

 

995,492

 

 

995,492

 

Average tangible assets

 

$

19,412,226

 

$

19,198,427

 

$

18,774,016

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total stockholders' equity(1)

 

 

11.02

%  

 

1.80

%  

 

9.25

%  

Return on average tangible stockholders' equity (non-GAAP)(1)

 

 

18.32

%  

 

2.94

%  

 

15.41

%  

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets(1)

 

 

1.35

%  

 

0.23

%  

 

1.16

%  

Return on average tangible assets (non-GAAP)(1)

 

 

1.42

%  

 

0.24

%  

 

1.23

%  

 

 

 

 

 

 

 

 

 

 

 

Average stockholders' equity to average assets

 

 

12.25

%  

 

12.73

%  

 

12.59

%  

Tangible average stockholders' equity to tangible average assets (non-GAAP)

 

 

7.75

%  

 

8.20

%  

 

7.95

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

As of

 

As of

 

 

 

 

March 31, 

 

December 31, 

 

March 31, 

 

 

 

    

2018

    

2017

    

2017

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

 

$

2,520,862

 

$

2,532,551

 

$

2,505,994

 

Less: goodwill

 

 

 

995,492

 

 

995,492

 

 

995,492

 

Tangible stockholders' equity

 

 

$

1,525,370

 

$

1,537,059

 

$

1,510,502

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

$

20,242,942

 

$

20,549,461

 

$

19,792,785

 

Less: goodwill

 

 

 

995,492

 

 

995,492

 

 

995,492

 

Tangible assets

 

 

$

19,247,450

 

$

19,553,969

 

$

18,797,293

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

 

 

139,601,123

 

 

139,588,782

 

 

139,546,615

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity to total assets

 

 

 

12.45

%  

 

12.32

%  

 

12.66

%

Tangible stockholders' equity to tangible assets (non-GAAP)

 

 

7.93

%  

 

7.86

%  

 

8.04

%

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

 

$

18.06

 

$

18.14

 

$

17.96

 

Tangible book value per share (non-GAAP)

 

 

$

10.93

 

$

11.01

 

$

10.82

 

(1)

Annualized for the three months ended March 31, 2018,  December 31, 2017 and March 31, 2017.

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP to Non-GAAP Reconciliation

 

 

 

 

 

 

 

 

Table 12

 

 

 

 

For the Three Months Ended

 

 

 

 

March 31, 

 

December 31,

 

March 31, 

 

 

(dollars in thousands, except per share amounts)

    

2018

    

2017

    

2017

    

   

Net interest income

 

$

139,672

 

$

134,886

 

$

129,345

 

 

Core net interest income (non-GAAP)

 

$

139,672

 

$

134,886

 

$

129,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

$

48,700

 

$

54,324

 

$

51,059

 

 

Gains on sale of real estate

 

 

 —

 

 

(4,255)

 

 

 —

 

 

Core noninterest income (non-GAAP)

 

$

48,700

 

$

50,069

 

$

51,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

$

90,587

 

$

89,850

 

$

85,991

 

 

One-time items(1)

 

 

(407)

 

 

(4,073)

 

 

(384)

 

 

Core noninterest expense (non-GAAP)

 

$

90,180

 

$

85,777

 

$

85,607

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

67,958

 

$

11,684

 

$

56,740

 

 

Gains on sale of real estate

 

 

 —

 

 

(4,255)

 

 

 —

 

 

One-time items(1)

 

 

407

 

 

4,073

 

 

384

 

 

Tax reform bill

 

 

 —

 

 

47,598

 

 

 —

 

 

Tax adjustments(2)

 

 

(106)

 

 

63

 

 

(142)

 

 

Total core adjustments

 

 

301

 

 

47,479

 

 

242

 

 

Core net income (non-GAAP)

 

$

68,259

 

$

59,163

 

$

56,982

 

 

Core basic earnings per share (non-GAAP)

 

$

0.49

 

$

0.42

 

$

0.41

 

 

Core diluted earnings per share (non-GAAP)

 

$

0.49

 

$

0.42

 

$

0.41

 

 

(1)

One-time items include salaries and benefits stemming from the 2017 Tax Cuts and Jobs Act and public offering related costs.

(2)

Represents the adjustments to net income, tax effected at the Company’s effective tax rate for the respective period, exclusive of one-time Tax Cuts and Jobs Act expense.