0001558370-19-003305.txt : 20190425 0001558370-19-003305.hdr.sgml : 20190425 20190425163039 ACCESSION NUMBER: 0001558370-19-003305 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20190425 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190425 DATE AS OF CHANGE: 20190425 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST HAWAIIAN, INC. CENTRAL INDEX KEY: 0000036377 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 990156159 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14585 FILM NUMBER: 19767854 BUSINESS ADDRESS: STREET 1: 999 BISHOP STREET CITY: HONOLULU STATE: HI ZIP: 96813 BUSINESS PHONE: 808-525-7000 MAIL ADDRESS: STREET 1: 999 BISHOP STREET CITY: HONOLULU STATE: HI ZIP: 96813 FORMER COMPANY: FORMER CONFORMED NAME: BANCWEST CORP/HI DATE OF NAME CHANGE: 19981105 FORMER COMPANY: FORMER CONFORMED NAME: FIRST HAWAIIAN INC DATE OF NAME CHANGE: 19920703 8-K 1 f8-k.htm 8-K fhb_Current_Folio_8K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8‑K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 25, 2019

FIRST HAWAIIAN, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

Delaware

 

(State or Other Jurisdiction of Incorporation)

 

 

001‑14585

 

99‑0156159

(Commission File Number)

 

(IRS Employer Identification No.)

 

 

 

 

999 Bishop St., 29th Floor

 

 

Honolulu, Hawaii

 

96813

(Address of Principal Executive Offices)

 

(Zip Code)

 

(808) 525‑7000

(Registrant’s Telephone Number, Including Area Code)

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8‑K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐   Soliciting material pursuant to Rule 14a‑12 under the Exchange Act (17 CFR 240.14a‑12)

 

☐   Pre-commencement communications pursuant to Rule 14d‑2(b) under the Exchange Act (17 CFR 240.14d‑2(b))

 

☐   Pre-commencement communications pursuant to Rule 13e‑4(c) under the Exchange Act (17 CFR 240.13e‑4(c))

 

 Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

Item 2.02 Results of Operations and Financial Condition.

On April 25, 2019 First Hawaiian, Inc. (together with its consolidated subsidiary, “First Hawaiian”) reported its earnings for the quarter ended March 31, 2019. A copy of First Hawaiian’s press release containing this information is being furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

All information provided in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section, and shall not be deemed to be incorporated by reference into any filing of First Hawaiian under the Securities Act of 1933, as amended, or the Exchange Act except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits

 

 

 

 

 

2

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be filed on its behalf by the undersigned hereunto duly authorized.

Pril 

 

 

 

FIRST HAWAIIAN, INC.

 

 

 

Date: April 25, 2019

By:

/s/ Robert S. Harrison

 

 

Robert S. Harrison

 

 

Chairman of the Board and Chief Executive Officer

 

 

(Principal Executive Officer)

 

 

3

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 2019 Financial Results and Declares Dividend

 

·

Net income of $69.9 million, or $0.52 per diluted share, core net income1 of $72.1 million or $0.53 per diluted share1

·

BNPP fully exited position in First Hawaiian, Inc. 

·

Announced $100 million stock repurchase program

·

Board of Directors declared a quarterly dividend of $0.26 per share

HONOLULU, Hawaii April 25, 2019--(Globe Newswire)--First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its first quarter ended March 31, 2019.

“The first quarter of 2019 was a solid quarter for First Hawaiian, as we started the year with a strong financial performance and BNP Paribas fully exited its remaining position in First Hawaiian,” said Bob Harrison, Chairman and Chief Executive Officer.  “We had strong core earnings, driven by good loan growth and continued expense control, while our asset quality and profitability measures remained excellent.”

On April 24, 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share.  The dividend will be payable on June 7, 2019 to stockholders of record at the close of business on May 28, 2019.

First Quarter 2019 Highlights (Comparisons To Fourth Quarter 2018):

·

Profitability measures were excellent with ROA of 1.38%, core ROATA1,2 of 1.50%, ROE of 11.16%, and core ROATCE1,2 of 18.91%;

·

Loans grew $121.3 million, or 1%, primarily in commercial and residential real estate;

·

Reported net interest margin (“NIM”) was 3.23%.  After removing the impact of premium adjustments NIM was up 7 basis points;

·

Reported efficiency ratio was 48.2% and core efficiency ratio1 was 47.4%;

·

Continued excellent credit quality.  The ratio of non-performing assets to total loans and leases and other real estate owned was 0.03% at the end of the first quarter;

·

On February 1, BNPP sold their remaining 18.4% interest in First Hawaiian and we are once again, a fully independent, local bank;

·

On March 1, we announced a stock repurchase program for up to $100 million of First Hawaiian’s common stock in 2019;

·

On April 24, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share, equal to an annual dividend yield of 3.85%  based on the share price as of the close of business on that date.

Balance Sheet

Total assets were $20.4 billion as of March 31, 2019, compared to $20.7 billion as of December 31, 2018.

Gross loans and leases were $13.2 billion as of March 31, 2019, an increase of $121.3 million, or 1%, from $13.1 billion as of December 31, 2018.  The increase was due to growth in commercial real estate and residential mortgage loans, partially offset by declines in construction, consumer, commercial and industrial (“C&I”) and home equity lines.

Total deposits were $16.8 billion as of March 31, 2019, a decrease of $354.8 million, or 2% from $17.2 billion as of December 31, 2018.  The decrease was primarily due to the outflow of approximately $305 million of temporary deposits from the prior quarter and an additional reduction of $174.7 million of public time deposits. 

1 Core measurements are non-GAAP financial measures.  Core excludes certain gains, expenses and one-time items.  See Tables 11 and 12 at the end of this document for reconciliations of core measurements, including core net income, core noninterest income, core efficiency ratio and core earnings per diluted share to the comparable GAAP measurements.

2 Return on Average Tangible Assets (“ROATA”) and Return on Average Tangible Common Equity (“ROATCE”) are non-GAAP financial measures.  A reconciliation of average tangible assets and average tangible stockholders’ equity to the comparable GAAP measurements is provided in Tables 11 and 12 at the end of this document.

 

Net Interest Income

Net interest income for the first quarter of 2019 was $145.1 million, an increase of $1.1 million, or 0.8%, compared to $144.0 million for the prior quarter.  Net interest income in the first quarter included a negative $1.8 million premium adjustment, while net interest income in the prior quarter benefited from a positive $1.1 million premium adjustment. The increase in net interest income compared to the fourth quarter of 2018 was primarily due to higher balances and rates on loans and leases, partially offset by higher rates on deposit accounts and higher average balances of long-term borrowings.

NIM was 3.23% in the first quarter of 2019, unchanged compared to 3.23% in the fourth quarter of 2018.  The negative $1.8 million premium adjustment had a negative four basis point impact on the first quarter NIM, while the positive $1.1 million premium adjustment in the prior quarter increased the fourth quarter NIM by three basis points.   

Provision Expense

Results for the quarter ended March 31, 2019 included a provision for credit losses of $5.7 million compared to $5.8 million in the quarter ended December 31, 2018.   

Noninterest Income

Noninterest income was $47.1 million in the first quarter of 2019, an increase of $14.0 million compared to noninterest income of $33.1 million in the fourth quarter of 2018. The increase compared to the fourth quarter was primarily due to $21.5 million lower other-than-temporary impairment (“OTTI”) and investment losses associated with the investment portfolio restructuring, partially offset by $9.8 million lower other income.  Other income in the fourth quarter of 2018 included a positive $7.6 million mark-to-market adjustment associated with maturing cash flow hedges and a positive $1.5 million intercompany tax adjustment. 

Noninterest Expense

Noninterest expense was $92.6 million in the first quarter of 2019, an increase of $3.3 million from $89.4 million in the fourth quarter of 2018.  The increase in noninterest expense was primarily driven by higher salaries and benefits due to lower deferred loan costs, reflecting lower levels of loan production, and higher annual incentive compensation payments, including payroll taxes.

The efficiency ratio was 48.2% and 50.5% for the quarters ended March 31, 2019 and December 31, 2018, respectively.  Core efficiency ratio1 was 47.4% and 44.2% for the quarters ended March 31, 2019 and December 31, 2018, respectively.

Taxes

The effective tax rate for the first quarter of 2019 was 25.5% compared with 26.8% in the previous quarter.  The provision for taxes in the fourth quarter of 2018 included a $1.5 million expense for intercompany taxes. 

Asset Quality

The allowance for loan and lease losses was $141.5 million, or 1.07% of total loans and leases, as of March 31, 2019, compared to $141.7 million, or 1.08% of total loans and leases, as of December 31, 2018.  Net charge-offs were $5.9 million, or 0.18% of average loans and leases on an annualized basis, compared to $5.3 million, or 0.16% of average loans and leases on an annualized basis for the quarter ended December 31, 2018.  Total non-performing assets were $4.4 million, or 0.03% of total loans and leases and other real estate owned, at March 31, 2019, compared to non-performing assets of $7.3 million, or 0.06% of total loans and leases and other real estate owned, at December 31, 2018. 

Capital

Total stockholders' equity was $2.6 billion at March 31, 2019, compared to $2.5 billion at December 31, 2018.   

The tier 1 leverage, common equity tier 1 and total capital ratios were 8.71%, 12.05% and 13.06%, respectively, at March 31, 2019, compared with 8.72%, 11.97% and 12.99% at December 31, 2018.

During the first quarter, the company’s Board of Directors adopted a stock repurchase program for up to $100 million of its outstanding common stock during 2019.  Remaining buyback authority under the stock repurchase program was $100 million at April 24, 2019.

 

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:  2444505.  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 5, 2019.  Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID:  2444505.

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, 2018.

Use of Non-GAAP Financial Measures

We present net interest income, noninterest income, noninterest expense, net income, earnings per share (basic and diluted) 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 efficiency ratio, 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 efficiency ratio as the ratio of core noninterest expense to the sum of core net interest income and core noninterest income.  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 total 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 directly comparable GAAP measures.

 

 

 

 

 

 

 

 

Investor Relations Contact:
Kevin Haseyama, CFA

(808) 525-6268

khaseyama@fhb.com

Media Contact:

Susan Kam

(808) 525-6254

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)

    

2019

    

2018

    

2018

    

Operating Results:

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

145,089

 

$

143,985

 

$

139,672

 

Provision for loan and lease losses

 

 

5,680

 

 

5,750

 

 

5,950

 

Noninterest income

 

 

47,072

 

 

33,091

 

 

48,700

 

Noninterest expense

 

 

92,623

 

 

89,354

 

 

90,587

 

Net income

 

 

69,924

 

 

59,995

 

 

67,958

 

Basic earnings per share

 

 

0.52

 

 

0.44

 

 

0.49

 

Diluted earnings per share

 

 

0.52

 

 

0.44

 

 

0.49

 

Dividends declared per share

 

 

0.26

 

 

0.24

 

 

0.24

 

Dividend payout ratio

 

 

50.00

%

 

54.55

%

 

48.98

%

Supplemental Income Statement Data (non-GAAP):

 

 

 

 

 

 

 

 

 

 

Core net interest income

 

$

145,089

 

$

143,985

 

$

139,672

 

Core noninterest income

 

 

49,685

 

 

57,176

 

 

48,700

 

Core noninterest expense

 

 

92,362

 

 

88,919

 

 

90,180

 

Core net income

 

 

72,052

 

 

77,914

 

 

68,259

 

Core basic earnings per share

 

 

0.53

 

 

0.58

 

 

0.49

 

Core diluted earnings per share

 

 

0.53

 

 

0.58

 

 

0.49

 

Performance Ratio:

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

3.23

%  

 

3.23

%  

 

3.13

%  

Core net interest margin (non-GAAP)

 

 

3.23

%  

 

3.23

%  

 

3.13

%  

Efficiency ratio

 

 

48.20

%  

 

50.45

%  

 

48.08

%  

Core efficiency ratio (non-GAAP)

 

 

47.42

%  

 

44.19

%  

 

47.86

%  

Return on average total assets

 

 

1.38

%  

 

1.19

%  

 

1.35

%  

Core return on average total assets (non-GAAP)

 

 

1.43

%  

 

1.54

%  

 

1.36

%  

Return on average tangible assets (non-GAAP)

 

 

1.45

%  

 

1.25

%  

 

1.42

%  

Core return on average tangible assets (non-GAAP)(1)

 

 

1.50

%  

 

1.62

%  

 

1.43

%  

Return on average total stockholders' equity

 

 

11.16

%  

 

9.77

%  

 

11.02

%  

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

 

 

11.50

%  

 

12.68

%  

 

11.07

%  

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

 

 

18.35

%  

 

16.51

%  

 

18.32

%  

Core return on average tangible stockholders’ equity (non-GAAP)(2)

 

 

18.91

%  

 

21.44

%  

 

18.40

%  

Average Balances:

 

 

 

 

 

 

 

 

 

 

Average loans and leases

 

$

13,073,708

 

$

12,829,635

 

$

12,296,678

 

Average earning assets

 

 

18,091,424

 

 

17,701,301

 

 

18,088,280

 

Average assets

 

 

20,494,837

 

 

20,069,988

 

 

20,407,718

 

Average deposits

 

 

16,865,673

 

 

16,608,611

 

 

17,504,054

 

Average stockholders' equity

 

 

2,540,600

 

 

2,437,504

 

 

2,500,299

 

Market Value Per Share:

 

 

 

 

 

 

 

 

 

 

    Closing

 

 

26.05

 

 

22.51

 

 

27.83

 

    High

 

 

27.67

 

 

27.49

 

 

32.36

 

    Low

 

 

22.13

 

 

21.19

 

 

26.92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

As of

 

As of

 

 

 

 

March 31, 

 

December 31, 

 

March 31, 

 

 

 

    

2019

 

2018

 

2018

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

 

$

13,197,454

 

$

13,076,191

 

$

12,464,165

 

Total assets

 

 

 

20,441,136

 

 

20,695,678

 

 

20,242,942

 

Total deposits

 

 

 

16,795,244

 

 

17,150,068

 

 

17,362,422

 

Long-term borrowings

 

 

 

600,028

 

 

600,026

 

 

34

 

Total stockholders' equity

 

 

 

2,613,202

 

 

2,524,839

 

 

2,520,862

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share of Common Stock:

 

 

 

 

 

 

 

 

 

 

 

Book value

 

 

$

19.36

 

$

18.72

 

$

18.06

 

Tangible book value (non-GAAP)(3)

 

 

 

11.98

 

 

11.34

 

 

10.93

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases / total loans and leases

 

 

 

0.03

%  

 

0.05

%

 

0.10

%  

Allowance for loan and lease losses / total loans and leases

 

 

 

1.07

%  

 

1.08

%

 

1.11

%  

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio

 

 

  

12.05

%  

  

11.97

%

  

12.73

%  

Tier 1 Capital Ratio

 

 

 

12.05

%  

 

11.97

%

 

12.73

%  

Total Capital Ratio

 

 

 

13.06

%  

 

12.99

%

 

13.77

%  

Tier 1 Leverage Ratio

 

 

 

8.71

%  

 

8.72

%

 

8.71

%  

Total stockholders' equity to total assets

 

 

 

12.78

%  

 

12.20

%

 

12.45

%  

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

 

 

 

8.32

%  

 

7.76

%

 

7.93

%  

 

 

 

 

 

 

 

 

 

 

 

 

Non-Financial Data:

 

 

 

 

 

 

 

 

 

 

 

Number of branches

 

 

 

60

 

 

60

 

 

61

 

Number of ATMs

 

 

 

296

 

 

295

 

 

310

 

Number of Full-Time Equivalent Employees

 

 

 

2,130

 

 

2,155

 

 

2,213

 

(1)

Core return on average tangible assets is a non-GAAP financial measure. We compute our core return on average tangible assets as the ratio of core 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. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 11, GAAP to Non-GAAP Reconciliation.

(2)

Core return on average tangible stockholders’ equity is a non-GAAP financial measure. 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. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 11, GAAP to Non-GAAP Reconciliation.

(3)

Tangible book value is a non-GAAP financial measure. We compute our tangible book value as the ratio of tangible stockholders’ equity to shares outstanding. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 11, GAAP to Non-GAAP Reconciliation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Income

 

 

Table 2

 

 

 

Three Months Ended

 

 

 

March 31, 

 

December 31, 

 

March 31, 

(dollars in thousands, except per share amounts)

 

    

2019

    

2018

    

2018

Interest income

 

 

 

 

 

 

 

 

 

 

Loans and lease financing

 

 

$

144,406

 

$

140,649

 

$

123,551

Available-for-sale securities

 

 

 

24,486

 

 

25,537

 

 

28,993

Other

 

 

 

3,669

 

 

1,858

 

 

2,392

Total interest income

 

 

 

172,561

 

 

168,044

 

 

154,936

Interest expense

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

23,197

 

 

20,152

 

 

15,264

Short-term and long-term borrowings

 

 

 

4,275

 

 

3,907

 

 

 —

Total interest expense

 

 

 

27,472

 

 

24,059

 

 

15,264

Net interest income

 

 

 

145,089

 

 

143,985

 

 

139,672

Provision for loan and lease losses

 

 

 

5,680

 

 

5,750

 

 

5,950

Net interest income after provision for loan and lease losses

 

 

 

139,409

 

 

138,235

 

 

133,722

Noninterest income

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

 

8,060

 

 

8,427

 

 

7,955

Credit and debit card fees

 

 

 

16,655

 

 

16,755

 

 

15,497

Other service charges and fees

 

 

 

9,129

 

 

9,763

 

 

9,342

Trust and investment services income

 

 

 

8,618

 

 

7,895

 

 

8,231

Bank-owned life insurance

 

 

 

3,813

 

 

1,086

 

 

2,044

Investment securities losses, net

 

 

 

(2,613)

 

 

 —

 

 

 —

Other-than-temporary impairment (OTTI) losses on available-for-sale debt securities

 

 

 

 —

 

 

(24,085)

 

 

 —

Other

 

 

 

3,410

 

 

13,250

 

 

5,631

Total noninterest income

 

 

 

47,072

 

 

33,091

 

 

48,700

Noninterest expense

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

 

44,860

 

 

41,407

 

 

42,160

Contracted services and professional fees

 

 

 

13,645

 

 

13,005

 

 

12,287

Occupancy

 

 

 

6,986

 

 

7,181

 

 

6,484

Equipment

 

 

 

4,284

 

 

4,610

 

 

4,588

Regulatory assessment and fees

 

 

 

1,447

 

 

2,053

 

 

3,973

Advertising and marketing

 

 

 

1,966

 

 

1,687

 

 

951

Card rewards program

 

 

 

6,732

 

 

6,978

 

 

5,718

Other

 

 

 

12,703

 

 

12,433

 

 

14,426

Total noninterest expense

 

 

 

92,623

 

 

89,354

 

 

90,587

Income before provision for income taxes

 

 

 

93,858

 

 

81,972

 

 

91,835

Provision for income taxes

 

 

 

23,934

 

 

21,977

 

 

23,877

Net income

 

 

$

69,924

 

$

59,995

 

$

67,958

Basic earnings per share

 

 

$

0.52

 

$

0.44

 

$

0.49

Diluted earnings per share

 

 

$

0.52

 

$

0.44

 

$

0.49

Basic weighted-average outstanding shares

 

 

 

134,879,336

 

 

134,874,277

 

 

139,600,712

Diluted weighted-average outstanding shares

 

 

 

135,198,345

 

 

135,100,162

 

 

139,732,100

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

Table 3

 

 

 

March 31, 

 

December 31, 

 

March 31, 

(dollars in thousands)

 

    

2019

    

2018

    

2018

Assets

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

$

336,555

 

$

396,836

 

$

283,135

Interest-bearing deposits in other banks

 

 

 

281,312

 

 

606,801

 

 

409,357

Investment securities

 

 

 

4,485,660

 

 

4,498,342

 

 

5,076,766

Loans held for sale

 

 

 

 —

 

 

432

 

 

397

Loans and leases

 

 

 

13,197,454

 

 

13,076,191

 

 

12,464,165

Less: allowance for loan and lease losses

 

 

 

141,546

 

 

141,718

 

 

138,574

Net loans and leases

 

 

 

13,055,908

 

 

12,934,473

 

 

12,325,591

 

 

 

 

 

 

 

 

 

 

 

Premises and equipment, net

 

 

 

310,902

 

 

304,996

 

 

288,565

Other real estate owned and repossessed personal property

 

 

 

124

 

 

751

 

 

 —

Accrued interest receivable

 

 

 

49,489

 

 

48,920

 

 

47,499

Bank-owned life insurance

 

 

 

447,936

 

 

446,076

 

 

440,054

Goodwill

 

 

 

995,492

 

 

995,492

 

 

995,492

Mortgage servicing rights

 

 

 

15,399

 

 

16,155

 

 

18,659

Other assets

 

 

 

462,359

 

 

446,404

 

 

357,427

Total assets

 

 

$

20,441,136

 

$

20,695,678

 

$

20,242,942

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Interest-bearing

 

 

$

10,951,764

 

$

11,142,127

 

$

11,312,288

Noninterest-bearing

 

 

 

5,843,480

 

 

6,007,941

 

 

6,050,134

Total deposits

 

 

 

16,795,244

 

 

17,150,068

 

 

17,362,422

Long-term borrowings

 

 

 

600,028

 

 

600,026

 

 

34

Retirement benefits payable

 

 

 

127,845

 

 

127,909

 

 

134,684

Other liabilities

 

 

 

304,817

 

 

292,836

 

 

224,940

Total liabilities

 

 

 

17,827,934

 

 

18,170,839

 

 

17,722,080

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

 

 

Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 139,851,508 / 135,012,015 shares as of March 31, 2019, issued/outstanding: 139,656,674 / 134,874,302 shares as of December 31, 2018 and issued/outstanding: 139,611,795 / 139,601,123 shares as of March 31, 2018)

 

 

 

1,399

 

 

1,397

 

 

1,396

Additional paid-in capital

 

 

 

2,497,770

 

 

2,495,853

 

 

2,490,910

Retained earnings

 

 

 

326,451

 

 

291,919

 

 

193,522

Accumulated other comprehensive loss, net

 

 

 

(78,754)

 

 

(132,195)

 

 

(164,684)

Treasury stock (4,839,493 shares as of March 31, 2019, 4,782,372 as of December 31, 2018 and 10,672 as of March 31, 2018)

 

 

 

(133,664)

 

 

(132,135)

 

 

(282)

Total stockholders' equity

 

 

 

2,613,202

 

 

2,524,839

 

 

2,520,862

Total liabilities and stockholders' equity

 

 

$

20,441,136

 

$

20,695,678

 

$

20,242,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances and Interest Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 4

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

 

 

March 31, 2019

 

December 31, 2018

 

March 31, 2018

 

 

 

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

 

$

507.3

 

$

3.2

 

2.56

%  

$

290.0

 

$

1.5

 

2.04

%  

$

616.8

 

$

2.3

 

1.53

%

Available-for-Sale Investment Securities

 

 

4,417.8

 

 

24.5

 

2.22

 

 

4,521.3

 

 

25.5

 

2.24

 

 

5,160.3

 

 

29.0

 

2.28

 

Loans Held for Sale

 

 

0.3

 

 

 —

 

2.79

 

 

0.3

 

 

 —

 

3.51

 

 

0.1

 

 

 —

 

2.99

 

Loans and Leases(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

3,166.4

 

 

33.2

 

4.25

 

 

3,120.9

 

 

32.7

 

4.16

 

 

3,104.4

 

 

27.7

 

3.62

 

Commercial real estate

 

 

3,005.2

 

 

35.4

 

4.77

 

 

3,013.0

 

 

32.4

 

4.27

 

 

2,799.9

 

 

26.5

 

3.83

 

Construction

 

 

636.7

 

 

7.5

 

4.77

 

 

623.9

 

 

7.1

 

4.51

 

 

621.2

 

 

5.7

 

3.74

 

Residential:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgages

 

 

3,535.2

 

 

36.0

 

4.07

 

 

3,351.8

 

 

36.0

 

4.26

 

 

3,147.1

 

 

33.4

 

4.30

 

Home equity lines

 

 

915.7

 

 

8.7

 

3.85

 

 

904.5

 

 

8.7

 

3.78

 

 

862.7

 

 

7.7

 

3.61

 

Consumer

 

 

1,667.3

 

 

22.5

 

5.48

 

 

1,657.9

 

 

22.7

 

5.44

 

 

1,599.6

 

 

21.3

 

5.41

 

Lease financing

 

 

147.2

 

 

1.1

 

2.99

 

 

157.6

 

 

1.1

 

2.70

 

 

161.8

 

 

1.2

 

3.10

 

Total Loans and Leases

 

 

13,073.7

 

 

144.4

 

4.46

 

 

12,829.6

 

 

140.7

 

4.35

 

 

12,296.7

 

 

123.5

 

4.07

 

Other Earning Assets

 

 

92.3

 

 

0.5

 

2.06

 

 

60.1

 

 

0.4

 

2.42

 

 

14.4

 

 

0.1

 

1.68

 

Total Earning Assets(2)

 

 

18,091.4

 

 

172.6

 

3.85

 

 

17,701.3

 

 

168.1

 

3.77

 

 

18,088.3

 

 

154.9

 

3.47

 

Cash and Due from Banks

 

 

360.3

 

 

 

 

 

 

 

339.7

 

 

 

 

 

 

 

318.9

 

 

 

 

 

 

Other Assets

 

 

2,043.1

 

 

 

 

 

 

 

2,029.0

 

 

 

 

 

 

 

2,000.5

 

 

 

 

 

 

Total Assets

 

$

20,494.8

 

 

 

 

 

 

$

20,070.0

 

 

 

 

 

 

$

20,407.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings

 

$

4,815.8

 

$

4.2

 

0.36

%  

$

4,708.4

 

$

3.6

 

0.30

%  

 

4,543.1

 

$

1.7

 

0.15

%

Money Market

 

 

3,181.3

 

 

7.7

 

0.98

 

 

3,021.9

 

 

6.1

 

0.80

 

 

2,710.9

 

 

1.7

 

0.26

 

Time

 

 

3,041.8

 

 

11.3

 

1.51

 

 

3,026.2

 

 

10.5

 

1.37

 

 

4,252.3

 

 

11.8

 

1.13

 

Total Interest-Bearing Deposits

 

 

11,038.9

 

 

23.2

 

0.85

 

 

10,756.5

 

 

20.2

 

0.74

 

 

11,506.3

 

 

15.2

 

0.54

 

Short-Term Borrowings

 

 

12.8

 

 

0.1

 

2.45

 

 

112.9

 

 

0.6

 

2.26

 

 

 —

 

 

 —

 

 —

 

Long-Term Borrowings

 

 

600.0

 

 

4.2

 

2.84

 

 

452.2

 

 

3.3

 

2.86

 

 

 —

 

 

 —

 

 —

 

Total Interest-Bearing Liabilities

 

 

11,651.7

 

 

27.5

 

0.96

 

 

11,321.6

 

 

24.1

 

0.84

 

 

11,506.3

 

 

15.2

 

0.54

 

Net Interest Income

 

 

 

 

$

145.1

 

 

 

 

 

 

$

144.0

 

 

 

 

 

 

$

139.7

 

 

 

Interest Rate Spread

 

 

 

 

 

 

 

2.89

%  

 

 

 

 

 

 

2.93

%  

 

 

 

 

 

 

2.93

%

Net Interest Margin

 

 

 

 

 

 

 

3.23

%  

 

 

 

 

 

 

3.23

%  

 

 

 

 

 

 

3.13

%

Noninterest-Bearing Demand Deposits

 

 

5,826.8

 

 

 

 

 

 

 

5,852.1

 

 

 

 

 

 

 

5,997.8

 

 

 

 

 

 

Other Liabilities

 

 

475.7

 

 

 

 

 

 

 

458.8

 

 

 

 

 

 

 

403.3

 

 

 

 

 

 

Stockholders' Equity

 

 

2,540.6

 

 

 

 

 

 

 

2,437.5

 

 

 

 

 

 

 

2,500.3

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity

 

$

20,494.8

 

 

 

 

 

 

$

20,070.0

 

 

 

 

 

 

$

20,407.7

 

 

 

 

 

 

(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, 2019

 

 

Compared to December 31, 2018

(dollars in millions)

 

Volume

 

Rate

 

Total

Change in Interest Income:

    

 

 

    

 

 

    

 

 

Interest-Bearing Deposits in Other Banks

 

$

1.3

 

$

0.4

 

$

1.7

Available-for-Sale Investment Securities

 

 

(0.8)

 

 

(0.3)

 

 

(1.1)

Loans and Leases

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

0.2

 

 

0.3

 

 

0.5

Commercial real estate

 

 

(0.1)

 

 

3.0

 

 

2.9

Construction

 

 

0.1

 

 

0.3

 

 

0.4

Residential:

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

1.8

 

 

(1.7)

 

 

0.1

Home equity line

 

 

 —

 

 

0.1

 

 

0.1

Consumer

 

 

(0.1)

 

 

(0.1)

 

 

(0.2)

Lease financing

 

 

(0.1)

 

 

0.1

 

 

 —

Total Loans and Leases

 

 

1.8

 

 

2.0

 

 

3.8

Other Earning Assets

 

 

0.2

 

 

(0.1)

 

 

0.1

Total Change in Interest Income

 

 

2.5

 

 

2.0

 

 

4.5

 

 

 

 

 

 

 

 

 

 

Change in Interest Expense:

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

 

 

 

Savings

 

 

 —

 

 

0.6

 

 

0.6

Money Market

 

 

0.3

 

 

1.3

 

 

1.6

Time

 

 

 —

 

 

0.8

 

 

0.8

Total Interest-Bearing Deposits

 

 

0.3

 

 

2.7

 

 

3.0

Short-Term Borrowings

 

 

(0.6)

 

 

 —

 

 

(0.6)

Long-Term Borrowings

 

 

1.0

 

 

 —

 

 

1.0

Total Change in Interest Expense

 

 

0.7

 

 

2.7

 

 

3.4

Change in Net Interest Income

 

$

1.8

 

$

(0.7)

 

$

1.1

 

 

 

 

 

 

 

 

 

 

 

 

Analysis of Change in Net Interest Income

 

 

 

 

 

 

 

 

Table 6

 

 

Three Months Ended March 31, 2019

 

 

Compared to March 31, 2018

(dollars in millions)

 

Volume

 

Rate

 

Total

Change in Interest Income:

    

 

 

    

 

 

    

 

 

Interest-Bearing Deposits in Other Banks

 

$

(0.5)

 

$

1.4

 

$

0.9

Available-for-Sale Investment Securities

 

 

(3.8)

 

 

(0.7)

 

 

(4.5)

Loans and Leases

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

0.6

 

 

4.9

 

 

5.5

Commercial real estate

 

 

2.0

 

 

6.9

 

 

8.9

Construction

 

 

0.1

 

 

1.6

 

 

1.7

Residential:

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

4.4

 

 

(1.8)

 

 

2.6

Home equity line

 

 

0.5

 

 

0.5

 

 

1.0

Consumer

 

 

0.9

 

 

0.3

 

 

1.2

Lease financing

 

 

(0.1)

 

 

 —

 

 

(0.1)

Total Loans and Leases

 

 

8.4

 

 

12.4

 

 

20.8

Other Earning Assets

 

 

0.4

 

 

 —

 

 

0.4

Total Change in Interest Income

 

 

4.5

 

 

13.1

 

 

17.6

 

 

 

 

 

 

 

 

 

 

Change in Interest Expense:

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

 

 

 

Savings

 

 

0.1

 

 

2.4

 

 

2.5

Money Market

 

 

0.3

 

 

5.6

 

 

5.9

Time

 

 

(3.9)

 

 

3.4

 

 

(0.5)

Total Interest-Bearing Deposits

 

 

(3.5)

 

 

11.4

 

 

7.9

Short-Term Borrowings

 

 

0.1

 

 

 —

 

 

0.1

Long-Term Borrowings

 

 

4.2

 

 

 —

 

 

4.2

Total Change in Interest Expense

 

 

0.8

 

 

11.4

 

 

12.2

Change in Net Interest Income

 

$

3.7

 

$

1.7

 

$

5.4

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and Leases

 

 

 

 

 

 

 

 

 

Table 7

 

 

 

March 31, 

 

December 31, 

 

March 31, 

(dollars in thousands)

 

    

2019

    

2018

    

2018

Commercial and industrial

 

  

$

3,203,770

  

$

3,208,760

  

$

3,219,210

Commercial real estate

 

 

 

3,147,304

 

 

2,990,783

 

 

2,738,557

Construction

 

 

 

595,491

 

 

626,757

 

 

594,266

Residential:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

 

3,543,964

 

 

3,527,101

 

 

3,298,652

Home equity line

 

 

 

907,829

 

 

912,517

 

 

857,351

Total residential

 

 

 

4,451,793

 

 

4,439,618

 

 

4,156,003

Consumer

 

 

 

1,653,109

 

 

1,662,504

 

 

1,595,989

Lease financing

 

 

 

145,987

 

 

147,769

 

 

160,140

Total loans and leases

 

 

$

13,197,454

 

$

13,076,191

 

$

12,464,165

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

Table 8

 

 

 

March 31, 

 

December 31, 

 

March 31, 

(dollars in thousands)

 

    

2019

    

2018

    

2018

Demand

 

 

$

5,843,480

 

$

6,007,941

 

$

6,050,134

Savings

 

 

 

4,884,418

 

 

4,853,285

 

 

4,614,668

Money Market

 

 

 

3,156,056

 

 

3,196,678

 

 

2,631,894

Time

 

 

 

2,911,290

 

 

3,092,164

 

 

4,065,726

    Total Deposits

 

 

$

16,795,244

 

$

17,150,068

 

$

17,362,422

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

    

2019

    

2018

    

2018

Non-Performing Assets

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans and Leases

 

 

 

 

 

 

 

 

 

 

Commercial Loans:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

$

190

 

$

274

 

$

1,888

Commercial real estate

 

 

 

 —

 

 

1,658

 

 

2,885

Construction

 

 

 

 —

 

 

 —

 

 

2,001

Total Commercial Loans

 

 

 

190

 

 

1,932

 

 

6,774

Residential Loans:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

 

4,090

 

 

4,611

 

 

5,349

Total Residential Loans

 

 

 

4,090

 

 

4,611

 

 

5,349

Total Non-Accrual Loans and Leases

 

 

 

4,280

 

 

6,543

 

 

12,123

Other Real Estate Owned

 

 

 

124

 

 

751

 

 

 —

Total Non-Performing Assets

 

 

$

4,404

 

$

7,294

 

$

12,123

 

 

 

 

 

 

 

 

 

 

 

Accruing Loans and Leases Past Due 90 Days or More

 

 

 

 

 

 

 

 

 

 

Commercial Loans:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

$

350

 

$

141

 

$

83

Construction

 

 

 

89

 

 

 —

 

 

343

Total Commercial Loans

 

 

 

439

 

 

141

 

 

426

Residential Loans:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

 

 —

 

 

32

 

 

77

Home equity line

 

 

 

2,448

 

 

2,842

 

 

1,392

Total Residential Loans

 

 

 

2,448

 

 

2,874

 

 

1,469

Consumer

 

 

 

3,538

 

 

3,373

 

 

1,744

Total Accruing Loans and Leases Past Due 90 Days or More

 

 

$

6,425

 

$

6,388

 

$

3,639

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

25,229

 

 

24,033

 

 

33,429

Total Loans and Leases

 

 

$

13,197,454

 

$

13,076,191

 

$

12,464,165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan and Lease Losses

 

 

 

 

 

 

 

 

 

Table 10

 

 

 

 

For the Three Months Ended

 

 

 

 

March 31, 

 

December 31, 

 

March 31, 

 

(dollars in thousands)

 

    

2019

    

2018

    

2018

    

Balance at Beginning of Period

 

 

$

141,718

 

$

141,250

 

$

137,253

 

Loans and Leases Charged-Off

 

 

 

 

 

 

 

 

 

 

 

Commercial Loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

 

 —

 

 

 —

 

 

(475)

 

Lease financing

 

 

 

(24)

 

 

 —

 

 

 —

 

Total Commercial Loans

 

 

 

(24)

 

 

 —

 

 

(475)

 

Residential

 

 

 

 —

 

 

(6)

 

 

 —

 

Consumer

 

 

 

(8,598)

 

 

(8,015)

 

 

(6,625)

 

Total Loans and Leases Charged-Off

 

 

 

(8,622)

 

 

(8,021)

 

 

(7,100)

 

Recoveries on Loans and Leases Previously Charged-Off

 

 

 

 

 

 

 

 

 

 

 

Commercial Loans:

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

 

37

 

 

78

 

 

64

 

Commercial real estate

 

 

 

31

 

 

41

 

 

122

 

Total Commercial Loans

 

 

 

68

 

 

119

 

 

186

 

Residential

 

 

 

250

 

 

256

 

 

182

 

Consumer

 

 

 

2,452

 

 

2,364

 

 

2,103

 

Total Recoveries on Loans and Leases Previously Charged-Off

 

 

 

2,770

 

 

2,739

 

 

2,471

 

Net Loans and Leases Charged-Off

 

 

 

(5,852)

 

 

(5,282)

 

 

(4,629)

 

Provision for Loan and Lease Losses

 

 

 

5,680

 

 

5,750

 

 

5,950

 

Balance at End of Period

 

 

$

141,546

 

$

141,718

 

$

138,574

 

Average Loans and Leases Outstanding

 

 

$

13,073,708

 

$

12,829,635

 

$

12,296,678

 

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

 

 

 

0.18

%  

 

0.16

%  

 

0.15

%  

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

 

 

 

1.07

%  

 

1.08

%  

 

1.11

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

    

2019

    

2018

    

2018

    

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

$

69,924

 

$

59,995

 

$

67,958

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total stockholders' equity

 

 

$

2,540,600

 

$

2,437,504

 

$

2,500,299

 

Less: average goodwill

 

 

 

995,492

 

 

995,492

 

 

995,492

 

Average tangible stockholders' equity

 

 

$

1,545,108

 

$

1,442,012

 

$

1,504,807

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

 

$

20,494,837

 

$

20,069,988

 

$

20,407,718

 

Less: average goodwill

 

 

 

995,492

 

 

995,492

 

 

995,492

 

Average tangible assets

 

 

$

19,499,345

 

$

19,074,496

 

$

19,412,226

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total stockholders' equity(1)

 

 

 

11.16

%  

 

9.77

%  

 

11.02

%  

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

 

 

 

18.35

%  

 

16.51

%  

 

18.32

%  

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets(1)

 

 

 

1.38

%  

 

1.19

%  

 

1.35

%  

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

 

 

 

1.45

%  

 

1.25

%  

 

1.42

%  

 

 

 

 

 

 

 

 

 

 

 

 

Average stockholders' equity to average assets

 

 

 

12.40

%  

 

12.15

%  

 

12.25

%  

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

 

 

 

7.92

%  

 

7.56

%  

 

7.75

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

As of

 

As of

 

 

 

 

March 31, 

 

December 31, 

 

March 31, 

 

 

 

    

2019

    

2018

    

2018

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

 

$

2,613,202

 

$

2,524,839

 

$

2,520,862

 

Less: goodwill

 

 

 

995,492

 

 

995,492

 

 

995,492

 

Tangible stockholders' equity

 

 

$

1,617,710

 

$

1,529,347

 

$

1,525,370

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

$

20,441,136

 

$

20,695,678

 

$

20,242,942

 

Less: goodwill

 

 

 

995,492

 

 

995,492

 

 

995,492

 

Tangible assets

 

 

$

19,445,644

 

$

19,700,186

 

$

19,247,450

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

 

 

135,012,015

 

 

134,874,302

 

 

139,601,123

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity to total assets

 

 

 

12.78

%  

 

12.20

%  

 

12.45

%

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

 

 

8.32

%  

 

7.76

%  

 

7.93

%

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

 

$

19.36

 

$

18.72

 

$

18.06

 

Tangible book value per share (non-GAAP)

 

 

$

11.98

 

$

11.34

 

$

10.93

 

(1)

Annualized for the three months ended March 31, 2019,  December 31, 2018 and March 31, 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

    

2019

    

2018

    

2018

    

Net interest income

 

 

$

145,089

 

$

143,985

 

$

139,672

 

Core net interest income (non-GAAP)

 

 

$

145,089

 

$

143,985

 

$

139,672

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

$

47,072

 

$

33,091

 

$

48,700

 

OTTI losses on available-for-sale debt securities

 

 

 

 —

 

 

24,085

 

 

 —

 

Loss on sale of securities

 

 

 

2,613

 

 

 —

 

 

 —

 

Core noninterest income (non-GAAP)

 

 

$

49,685

 

$

57,176

 

$

48,700

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

 

$

92,623

 

$

89,354

 

$

90,587

 

One-time items(1)

 

 

 

(261)

 

 

(435)

 

 

(407)

 

Core noninterest expense (non-GAAP)

 

 

$

92,362

 

$

88,919

 

$

90,180

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

$

69,924

 

$

59,995

 

$

67,958

 

OTTI losses on available-for-sale debt securities

 

 

 

 —

 

 

24,085

 

 

 —

 

Loss on sale of securities

 

 

 

2,613

 

 

 —

 

 

 —

 

One-time noninterest expense items(1)

 

 

 

261

 

 

435

 

 

407

 

Tax adjustments(2)

 

 

 

(746)

 

 

(6,601)

 

 

(106)

 

Total core adjustments

 

 

 

2,128

 

 

17,919

 

 

301

 

Core net income (non-GAAP)

 

 

$

72,052

 

$

77,914

 

$

68,259

 

Core basic earnings per share (non-GAAP)

 

 

$

0.53

 

$

0.58

 

$

0.49

 

Core diluted earnings per share (non-GAAP)

 

 

$

0.53

 

$

0.58

 

$

0.49

 

Core efficiency ratio (non-GAAP)

 

 

 

47.42

%

 

44.19

%

 

47.86

%

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

 

$

0.52

 

$

0.44

 

$

0.49

 

Diluted earnings per share

 

 

$

0.52

 

$

0.44

 

$

0.49

 

Efficiency ratio

 

 

 

48.20

%

 

50.45

%

 

48.08

%

(1)

One-time items for all periods disclosed included public offering related costs.

(2)

Represents the adjustments to net income, tax effected at the Company’s effective tax rate for the respective period.

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