EX-99.1 2 fhb-20200424xex99d1.htm EX-99.1 fnb_Ex_99_1

EXHIBIT 99.1

 

Picture 2

 

For Immediate Release

First Hawaiian, Inc. Reports First Quarter 2020 Financial Results and Declares Dividend

HONOLULU, Hawaii April 24, 2020--(Globe Newswire)--First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended March 31, 2020.

“First Hawaiian will continue to be a source of strength for our employees, our customers and the community,” said Bob Harrison, Chairman, President and Chief Executive Officer. “With our experienced management team, dedicated employees, deep customer relationships, and strong liquidity and capital, we are well positioned to manage through these challenging times.”

On April 22, 2020 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on June 5, 2020 to stockholders of record at the close of business on May 26, 2020. The Board of Directors also voted to suspend the stock repurchase program.

 

First Quarter 2020 Highlights:

·

Net income of $38.9 million, or $0.30 per diluted share

·

Loan balances increased $169 million, or 1.3%, versus prior quarter

·

Deposits balances increased $575 million, or 3.5% versus the prior quarter

·

Net interest margin (“NIM”) was 3.12%

·

Adopted Current Expected Credit Loss (“CECL”) methodology on January 1, 2020

o

Upon adoption recognized a $17.1 million collective increase in the Allowance for Credit Losses (“ACL”) and the reserve for unfunded commitments and a corresponding $12.5 million decrease (after-tax) in retained earnings

o

Recorded a $41.2 million provision for credit losses in Q1

·

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

 

Balance Sheet

Total assets were $20.8 billion as of March 31, 2020, compared to $20.2 billion as of December 31, 2019.

Gross loans and leases were $13.4 billion as of March 31, 2020, an increase of $169 million, or 1.3%, from $13.2 billion as of December 31, 2019.

Total deposits were $17.0 billion as of March 31, 2020, an increase of $575 million, or 3.5%, from $16.4 billion as of December 31, 2019. The increase was primarily due to a $425 million increase in public time deposits as the bank increased its liquidity position in anticipation of a surge in funding needs due to our participation in the Paycheck Protection Program and other additional liquidity needs.

Net Interest Income

Net interest income for the first quarter of 2020 was $138.7 million, a decrease of $0.9 million, or 0.7%, compared to $139.6 million for the prior quarter.

The NIM was 3.12% in the first quarter of 2020, a decrease of three basis points compared to 3.15% in the fourth quarter of 2019.

Provision Expense

On January 1, 2020, the Bank adopted the CECL methodology under Accounting Standards Codification (“ASC”) Topic 326, in which the ACL reflects expected credit losses for the remaining estimated life of loans and leases using historical experience, current conditions, and reasonable and supportable forecasts. The ACL at the end of the first quarter incorporates a change in the economic forecast late in the first quarter of 2020, to reflect the pandemic conditions, as compared to our initial adoption of CECL.

During the quarter ended March 31, 2020, the Bank recorded a total provision for credit losses of $41.2 million. In the quarter ended December 31, 2019, the total provision for credit losses was $4.3 million.

Noninterest Income

Noninterest income was $49.2 million in the first quarter of 2020, an increase of $2.5 million compared to noninterest income of $46.7 million in the fourth quarter of 2019.

Noninterest Expense

Noninterest expense was $96.5 million in the first quarter of 2020, an increase of $5.4 million from $91.1 million in the fourth quarter of 2019.

The efficiency ratio was 51.3% and 48.9% for the quarters ended March 31, 2020 and December 31, 2019, respectively.

Taxes

The effective tax rate was 22.6% for the quarter ended March 31, 2020 and 25.5% for the quarter ended December 31, 2019.

Asset Quality

The allowance for credit losses was $166.0 million, or 1.24% of total loans and leases, as of March 31, 2020, compared to $130.5 million, or 0.99% of total loans and leases, as of December 31, 2019. The reserve for unfunded commitments was $17.3 million as of March 31, 2020 compared to $0.6 million as of December 31, 2019. Net charge-offs were $6.1 million, or 0.19% of average loans and leases on an annualized basis for the quarter ended March 31, 2020, compared to $6.7 million, or 0.20% of average loans and leases on an annualized basis for the quarter ended December 31, 2019. Total non-performing assets were $7.2 million, or 0.05% of total loans and leases and other real estate owned, at March 31, 2020, compared to non-performing assets of $5.8 million, or 0.04% of total loans and leases and other real estate owned, at December 31, 2019.

Capital

Total stockholders' equity was $2.7 billion at March 31, 2020, compared to $2.6 billion at December 31, 2019.

The tier 1 leverage, common equity tier 1 and total capital ratios were 8.63%, 11.65% and 12.90%, respectively, at March 31, 2020, compared with 8.79%, 11.88% and 12.81%, respectively, at December 31, 2019.

The Company repurchased 0.2 million shares of common stock at a total cost of $5.0 million under the stock repurchase program in the first quarter. The average cost was $22.96 per share repurchased. Remaining buyback authority under the stock repurchase program was $75 million at March 31, 2020.

First Hawaiian, Inc.

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

Conference Call Information

First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time. To access the call, 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: 3248226. 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 4:30 p.m. (Eastern Time) on May 1, 2020. Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 3248226.

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. Further, statements about the potential effects of the COVID-19 pandemic on our businesses and financial results and conditions may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic,

actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the ongoing impacts of COVID-19, the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31,  2019.

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:

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)

 

    

2020

    

2019

    

2019

    

Operating Results:

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

138,683

 

$

139,619

 

$

145,089

 

Provision for credit losses

 

 

 

41,200

 

 

4,250

 

 

5,680

 

Noninterest income

 

 

 

49,228

 

 

46,708

 

 

47,072

 

Noninterest expense

 

 

 

96,466

 

 

91,058

 

 

92,623

 

Net income

 

 

 

38,865

 

 

67,836

 

 

69,924

 

Basic earnings per share

 

 

 

0.30

 

 

0.52

 

 

0.52

 

Diluted earnings per share

 

 

 

0.30

 

 

0.52

 

 

0.52

 

Dividends declared per share

 

 

 

0.26

 

 

0.26

 

 

0.26

 

Dividend payout ratio

 

 

 

86.67

%

 

50.00

%

 

50.00

%

Supplemental Income Statement Data (non-GAAP):

 

 

 

 

 

 

 

 

 

 

 

Core net interest income

 

 

$

138,683

 

$

139,619

 

$

145,089

 

Core noninterest income

 

 

 

49,143

 

 

51,331

 

 

49,685

 

Core noninterest expense

 

 

 

96,466

 

 

91,010

 

 

92,362

 

Core net income

 

 

 

38,803

 

 

71,250

 

 

72,052

 

Core basic earnings per share

 

 

 

0.30

 

 

0.55

 

 

0.53

 

Core diluted earnings per share

 

 

 

0.30

 

 

0.54

 

 

0.53

 

Performance Ratio(1):

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 

3.12

%  

 

3.15

%  

 

3.23

%  

Core net interest margin (non-GAAP)

 

 

 

3.12

%  

 

3.15

%  

 

3.23

%  

Efficiency ratio

 

 

 

51.33

%  

 

48.86

%  

 

48.20

%  

Core efficiency ratio (non-GAAP)

 

 

 

51.35

%  

 

47.65

%  

 

47.42

%  

Return on average total assets

 

 

 

0.77

%  

 

1.34

%  

 

1.38

%  

Core return on average total assets (non-GAAP)

 

 

 

0.77

%  

 

1.41

%  

 

1.43

%  

Return on average tangible assets (non-GAAP)

 

 

 

0.81

%  

 

1.41

%  

 

1.45

%  

Core return on average tangible assets (non-GAAP)(2)

 

 

 

0.81

%  

 

1.48

%  

 

1.50

%  

Return on average total stockholders' equity

 

 

 

5.87

%  

 

10.21

%  

 

11.16

%  

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

 

 

 

5.87

%  

 

10.72

%  

 

11.50

%  

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

 

 

 

9.39

%  

 

16.40

%  

 

18.35

%  

Core return on average tangible stockholders’ equity (non-GAAP)(3)

 

 

 

9.37

%  

 

17.22

%  

 

18.91

%  

Average Balances:

 

 

 

 

 

 

 

 

 

 

 

Average loans and leases

 

 

$

13,191,426

 

$

12,940,956

 

$

13,073,708

 

Average earning assets

 

 

 

17,814,189

 

 

17,649,343

 

 

18,091,424

 

Average assets

 

 

 

20,313,304

 

 

20,089,601

 

 

20,494,837

 

Average deposits

 

 

 

16,543,305

 

 

16,355,254

 

 

16,865,673

 

Average stockholders' equity

 

 

 

2,660,811

 

 

2,636,651

 

 

2,540,600

 

Market Value Per Share:

 

 

 

 

 

 

 

 

 

 

 

    Closing

 

 

 

16.53

 

 

28.85

 

 

26.05

 

    High

 

 

 

31.25

 

 

29.47

 

 

27.67

 

    Low

 

 

 

15.42

 

 

25.48

 

 

22.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

As of

 

As of

 

 

 

 

March 31, 

 

December 31, 

 

March 31, 

 

 

 

    

2020

 

2019

 

2019

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

Loans and leases

 

 

$

13,380,270

 

$

13,211,650

 

$

13,197,454

 

Total assets

 

 

 

20,755,891

 

 

20,166,734

 

 

20,441,136

 

Total deposits

 

 

 

17,020,002

 

 

16,444,994

 

 

16,795,244

 

Short-term borrowings

 

 

 

400,000

 

 

400,000

 

 

 —

 

Long-term borrowings

 

 

 

200,019

 

 

200,019

 

 

600,028

 

Total stockholders' equity

 

 

 

2,664,685

 

 

2,640,258

 

 

2,613,202

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share of Common Stock:

 

 

 

 

 

 

 

 

 

 

 

Book value

 

 

$

20.52

 

$

20.32

 

$

19.36

 

Tangible book value (non-GAAP)(4)

 

 

 

12.86

 

 

12.66

 

 

11.98

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans and leases / total loans and leases

 

 

 

0.05

%  

 

0.04

%

 

0.03

%  

Allowance for credit losses for loans and leases / total loans and leases

 

 

 

1.24

%  

 

0.99

%

 

1.07

%  

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

Common Equity Tier 1 Capital Ratio

 

 

  

11.65

%  

  

11.88

%

  

12.05

%  

Tier 1 Capital Ratio

 

 

 

11.65

%  

 

11.88

%

 

12.05

%  

Total Capital Ratio

 

 

 

12.90

%  

 

12.81

%

 

13.06

%  

Tier 1 Leverage Ratio

 

 

 

8.63

%  

 

8.79

%

 

8.71

%  

Total stockholders' equity to total assets

 

 

 

12.84

%  

 

13.09

%

 

12.78

%  

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

 

 

 

8.45

%  

 

8.58

%

 

8.32

%  

 

 

 

 

 

 

 

 

 

 

 

 

Non-Financial Data:

 

 

 

 

 

 

 

 

 

 

 

Number of branches

 

 

 

58

 

 

58

 

 

60

 

Number of ATMs

 

 

 

304

 

 

301

 

 

296

 

Number of Full-Time Equivalent Employees

 

 

 

2,103

 

 

2,092

 

 

2,130

 

(1)

Except for the efficiency ratio and the core efficiency ratio, amounts are annualized for the three months ended March 31, 2020,  December 31, 2019 and March 31, 2019.

(2)

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.

(3)

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.

(4)

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)

 

    

2020

    

2019

    

2019

Interest income

 

 

 

 

 

 

 

 

 

 

Loans and lease financing

 

 

$

134,971

 

$

138,033

 

$

144,406

Available-for-sale securities

 

 

 

21,210

 

 

20,979

 

 

24,486

Other

 

 

 

2,351

 

 

3,120

 

 

3,669

Total interest income

 

 

 

158,532

 

 

162,132

 

 

172,561

Interest expense

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

15,600

 

 

18,222

 

 

23,197

Short-term and long-term borrowings

 

 

 

4,249

 

 

4,291

 

 

4,275

Total interest expense

 

 

 

19,849

 

 

22,513

 

 

27,472

Net interest income

 

 

 

138,683

 

 

139,619

 

 

145,089

Provision for credit losses

 

 

 

41,200

 

 

4,250

 

 

5,680

Net interest income after provision for credit losses

 

 

 

97,483

 

 

135,369

 

 

139,409

Noninterest income

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

 

8,950

 

 

9,041

 

 

8,060

Credit and debit card fees

 

 

 

14,949

 

 

16,626

 

 

16,655

Other service charges and fees

 

 

 

8,539

 

 

8,818

 

 

9,129

Trust and investment services income

 

 

 

9,591

 

 

8,855

 

 

8,618

Bank-owned life insurance

 

 

 

2,260

 

 

2,533

 

 

3,813

Investment securities losses, net

 

 

 

85

 

 

(123)

 

 

(2,613)

Other

 

 

 

4,854

 

 

958

 

 

3,410

Total noninterest income

 

 

 

49,228

 

 

46,708

 

 

47,072

Noninterest expense

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

 

44,829

 

 

41,098

 

 

44,860

Contracted services and professional fees

 

 

 

16,055

 

 

13,724

 

 

13,645

Occupancy

 

 

 

7,243

 

 

7,231

 

 

6,986

Equipment

 

 

 

4,708

 

 

4,491

 

 

4,284

Regulatory assessment and fees

 

 

 

1,946

 

 

1,802

 

 

1,447

Advertising and marketing

 

 

 

1,823

 

 

1,317

 

 

1,966

Card rewards program

 

 

 

7,015

 

 

8,635

 

 

6,732

Other

 

 

 

12,847

 

 

12,760

 

 

12,703

Total noninterest expense

 

 

 

96,466

 

 

91,058

 

 

92,623

Income before provision for income taxes

 

 

 

50,245

 

 

91,019

 

 

93,858

Provision for income taxes

 

 

 

11,380

 

 

23,183

 

 

23,934

Net income

 

 

$

38,865

 

$

67,836

 

$

69,924

Basic earnings per share

 

 

$

0.30

 

$

0.52

 

$

0.52

Diluted earnings per share

 

 

$

0.30

 

$

0.52

 

$

0.52

Basic weighted-average outstanding shares

 

 

 

129,895,706

 

 

130,463,102

 

 

134,879,336

Diluted weighted-average outstanding shares

 

 

 

130,351,585

 

 

130,845,645

 

 

135,198,345

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

Table 3

 

 

 

March 31, 

 

December 31, 

 

March 31, 

(dollars in thousands)

 

    

2020

    

2019

    

2019

Assets

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

$

353,908

 

$

360,375

 

$

336,555

Interest-bearing deposits in other banks

 

 

 

698,924

 

 

333,642

 

 

281,312

Investment securities, at fair value (amortized cost: $4,014,397 as of March 31, 2020, $4,080,663 as of December 31, 2019 and $4,554,601 as of March 31, 2019)

 

 

 

4,058,457

 

 

4,075,644

 

 

4,485,660

Loans held for sale

 

 

 

8,180

 

 

904

 

 

 —

Loans and leases

 

 

 

13,380,270

 

 

13,211,650

 

 

13,197,454

Less: allowance for credit losses

 

 

 

166,013

 

 

130,530

 

 

141,546

Net loans and leases

 

 

 

13,214,257

 

 

13,081,120

 

 

13,055,908

 

 

 

 

 

 

 

 

 

 

 

Premises and equipment, net

 

 

 

321,254

 

 

316,885

 

 

310,902

Other real estate owned and repossessed personal property

 

 

 

238

 

 

319

 

 

124

Accrued interest receivable

 

 

 

43,552

 

 

45,239

 

 

49,489

Bank-owned life insurance

 

 

 

455,226

 

 

453,873

 

 

447,936

Goodwill

 

 

 

995,492

 

 

995,492

 

 

995,492

Mortgage servicing rights

 

 

 

11,979

 

 

12,668

 

 

15,399

Other assets

 

 

 

594,424

 

 

490,573

 

 

462,359

Total assets

 

 

$

20,755,891

 

$

20,166,734

 

$

20,441,136

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Interest-bearing

 

 

$

11,274,463

 

$

10,564,922

 

$

10,951,764

Noninterest-bearing

 

 

 

5,745,539

 

 

5,880,072

 

 

5,843,480

Total deposits

 

 

 

17,020,002

 

 

16,444,994

 

 

16,795,244

Short-term borrowings

 

 

 

400,000

 

 

400,000

 

 

 —

Long-term borrowings

 

 

 

200,019

 

 

200,019

 

 

600,028

Retirement benefits payable

 

 

 

138,396

 

 

138,222

 

 

127,845

Other liabilities

 

 

 

332,789

 

 

343,241

 

 

304,817

Total liabilities

 

 

 

18,091,206

 

 

17,526,476

 

 

17,827,934

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

 

 

Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,092,172 / 129,827,968 shares as of March 31, 2020, issued/outstanding: 139,917,150 / 129,928,479 shares as of December 31, 2019 and issued/outstanding: 139,851,508 / 135,012,015 shares as of March 31, 2019)

 

 

 

1,401

 

 

1,399

 

 

1,399

Additional paid-in capital

 

 

 

2,506,477

 

 

2,503,677

 

 

2,497,770

Retained earnings

 

 

 

429,323

 

 

437,072

 

 

326,451

Accumulated other comprehensive income (loss), net

 

 

 

4,129

 

 

(31,749)

 

 

(78,754)

Treasury stock (10,264,204 shares as of March 31, 2020, 9,988,671 shares as of December 31, 2019 and 4,839,493 shares as of March 31, 2019)

 

 

 

(276,645)

 

 

(270,141)

 

 

(133,664)

Total stockholders' equity

 

 

 

2,664,685

 

 

2,640,258

 

 

2,613,202

Total liabilities and stockholders' equity

 

 

$

20,755,891

 

$

20,166,734

 

$

20,441,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Balances and Interest Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 4

 

 

 

Three Months Ended

 

Three Months Ended

 

Three Months Ended

 

 

 

March 31, 2020

 

December 31, 2019

 

March 31, 2019

 

 

 

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

 

$

516.8

 

$

1.6

 

1.25

%  

$

548.5

 

$

2.3

 

1.68

%  

$

507.3

 

$

3.2

 

2.56

%

Available-for-Sale Investment Securities

 

 

4,033.2

 

 

21.2

 

2.10

 

 

4,092.2

 

 

21.0

 

2.05

 

 

4,417.8

 

 

24.5

 

2.22

 

Loans Held for Sale

 

 

15.8

 

 

0.1

 

1.70

 

 

1.5

 

 

 —

 

2.55

 

 

0.3

 

 

 —

 

2.79

 

Loans and Leases(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

2,776.2

 

 

24.6

 

3.56

 

 

2,668.5

 

 

25.3

 

3.76

 

 

3,166.4

 

 

33.2

 

4.25

 

Commercial real estate

 

 

3,433.2

 

 

34.6

 

4.05

 

 

3,325.8

 

 

35.9

 

4.28

 

 

3,005.2

 

 

35.4

 

4.77

 

Construction

 

 

538.5

 

 

5.7

 

4.27

 

 

497.8

 

 

5.4

 

4.36

 

 

636.7

 

 

7.5

 

4.77

 

Residential:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

3,721.2

 

 

37.7

 

4.05

 

 

3,720.2

 

 

38.5

 

4.14

 

 

3,535.2

 

 

36.0

 

4.07

 

Home equity line

 

 

887.4

 

 

7.7

 

3.50

 

 

905.6

 

 

8.2

 

3.58

 

 

915.7

 

 

8.7

 

3.85

 

Consumer

 

 

1,611.7

 

 

23.0

 

5.75

 

 

1,635.2

 

 

23.3

 

5.66

 

 

1,667.3

 

 

22.5

 

5.48

 

Lease financing

 

 

223.2

 

 

1.6

 

2.85

 

 

187.8

 

 

1.4

 

2.94

 

 

147.2

 

 

1.1

 

2.99

 

Total Loans and Leases

 

 

13,191.4

 

 

134.9

 

4.11

 

 

12,940.9

 

 

138.0

 

4.24

 

 

13,073.7

 

 

144.4

 

4.46

 

Other Earning Assets

 

 

57.0

 

 

0.7

 

5.30

 

 

66.2

 

 

0.8

 

4.76

 

 

92.3

 

 

0.5

 

2.06

 

Total Earning Assets(2)

 

 

17,814.2

 

 

158.5

 

3.57

 

 

17,649.3

 

 

162.1

 

3.66

 

 

18,091.4

 

 

172.6

 

3.85

 

Cash and Due from Banks

 

 

327.4

 

 

 

 

 

 

 

316.5

 

 

 

 

 

 

 

360.3

 

 

 

 

 

 

Other Assets

 

 

2,171.7

 

 

 

 

 

 

 

2,123.8

 

 

 

 

 

 

 

2,043.1

 

 

 

 

 

 

Total Assets

 

$

20,313.3

 

 

 

 

 

 

$

20,089.6

 

 

 

 

 

 

$

20,494.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings

 

$

5,090.4

 

$

3.3

 

0.26

%  

$

4,943.2

 

$

3.8

 

0.31

%  

 

4,815.8

 

$

4.2

 

0.36

%

Money Market

 

 

3,064.8

 

 

4.6

 

0.61

 

 

3,117.6

 

 

5.6

 

0.72

 

 

3,181.3

 

 

7.7

 

0.98

 

Time

 

 

2,534.7

 

 

7.7

 

1.23

 

 

2,538.4

 

 

8.8

 

1.37

 

 

3,041.8

 

 

11.3

 

1.51

 

Total Interest-Bearing Deposits

 

 

10,689.9

 

 

15.6

 

0.59

 

 

10,599.2

 

 

18.2

 

0.68

 

 

11,038.9

 

 

23.2

 

0.85

 

Short-Term Borrowings

 

 

401.7

 

 

2.8

 

2.88

 

 

400.1

 

 

2.9

 

2.87

 

 

12.8

 

 

0.1

 

2.45

 

Long-Term Borrowings

 

 

200.0

 

 

1.4

 

2.77

 

 

200.0

 

 

1.4

 

2.76

 

 

600.0

 

 

4.2

 

2.84

 

Total Interest-Bearing Liabilities

 

 

11,291.6

 

 

19.8

 

0.71

 

 

11,199.3

 

 

22.5

 

0.80

 

 

11,651.7

 

 

27.5

 

0.96

 

Net Interest Income

 

 

 

 

$

138.7

 

 

 

 

 

 

$

139.6

 

 

 

 

 

 

$

145.1

 

 

 

Interest Rate Spread

 

 

 

 

 

 

 

2.86

%  

 

 

 

 

 

 

2.86

%  

 

 

 

 

 

 

2.89

%

Net Interest Margin

 

 

 

 

 

 

 

3.12

%  

 

 

 

 

 

 

3.15

%  

 

 

 

 

 

 

3.23

%

Noninterest-Bearing Demand Deposits

 

 

5,853.4

 

 

 

 

 

 

 

5,756.0

 

 

 

 

 

 

 

5,826.8

 

 

 

 

 

 

Other Liabilities

 

 

507.5

 

 

 

 

 

 

 

497.6

 

 

 

 

 

 

 

475.7

 

 

 

 

 

 

Stockholders' Equity

 

 

2,660.8

 

 

 

 

 

 

 

2,636.7

 

 

 

 

 

 

 

2,540.6

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity

 

$

20,313.3

 

 

 

 

 

 

$

20,089.6

 

 

 

 

 

 

$

20,494.8

 

 

 

 

 

 

(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, 2020

 

 

Compared to December 31, 2019

(dollars in millions)

 

Volume

 

Rate

 

Total

Change in Interest Income:

    

 

 

    

 

 

    

 

 

Interest-Bearing Deposits in Other Banks

 

$

(0.1)

 

$

(0.6)

 

$

(0.7)

Available-for-Sale Investment Securities

 

 

(0.3)

 

 

0.5

 

 

0.2

Loans Held for Sale

 

 

0.1

 

 

 —

 

 

0.1

Loans and Leases

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

0.8

 

 

(1.5)

 

 

(0.7)

Commercial real estate

 

 

0.9

 

 

(2.2)

 

 

(1.3)

Construction

 

 

0.4

 

 

(0.1)

 

 

0.3

Residential:

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

 —

 

 

(0.8)

 

 

(0.8)

Home equity line

 

 

(0.2)

 

 

(0.3)

 

 

(0.5)

Consumer

 

 

(0.5)

 

 

0.2

 

 

(0.3)

Lease financing

 

 

0.2

 

 

 —

 

 

0.2

Total Loans and Leases

 

 

1.6

 

 

(4.7)

 

 

(3.1)

Other Earning Assets

 

 

(0.1)

 

 

 —

 

 

(0.1)

Total Change in Interest Income

 

 

1.2

 

 

(4.8)

 

 

(3.6)

 

 

 

 

 

 

 

 

 

 

Change in Interest Expense:

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

 

 

 

Savings

 

 

0.1

 

 

(0.6)

 

 

(0.5)

Money Market

 

 

(0.1)

 

 

(0.9)

 

 

(1.0)

Time

 

 

 —

 

 

(1.1)

 

 

(1.1)

Total Interest-Bearing Deposits

 

 

 —

 

 

(2.6)

 

 

(2.6)

Short-Term Borrowings

 

 

(0.1)

 

 

 —

 

 

(0.1)

Total Change in Interest Expense

 

 

(0.1)

 

 

(2.6)

 

 

(2.7)

Change in Net Interest Income

 

$

1.3

 

$

(2.2)

 

$

(0.9)

 

 

 

 

 

 

 

 

 

 

 

Analysis of Change in Net Interest Income

 

 

 

 

 

 

 

 

Table 6

 

 

Three Months Ended March 31, 2020

 

 

Compared to March 31, 2019

(dollars in millions)

 

Volume

 

Rate

 

Total

Change in Interest Income:

    

 

 

    

 

 

    

 

 

Interest-Bearing Deposits in Other Banks

 

$

0.1

 

$

(1.7)

 

$

(1.6)

Available-for-Sale Investment Securities

 

 

(2.0)

 

 

(1.3)

 

 

(3.3)

Loans Held for Sale

 

 

0.1

 

 

 —

 

 

0.1

Loans and Leases

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

(3.7)

 

 

(4.9)

 

 

(8.6)

Commercial real estate

 

 

4.9

 

 

(5.7)

 

 

(0.8)

Construction

 

 

(1.1)

 

 

(0.7)

 

 

(1.8)

Residential:

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

1.8

 

 

(0.1)

 

 

1.7

Home equity line

 

 

(0.3)

 

 

(0.7)

 

 

(1.0)

Consumer

 

 

(0.7)

 

 

1.2

 

 

0.5

Lease financing

 

 

0.5

 

 

 —

 

 

0.5

Total Loans and Leases

 

 

1.4

 

 

(10.9)

 

 

(9.5)

Other Earning Assets

 

 

(0.3)

 

 

0.5

 

 

0.2

Total Change in Interest Income

 

 

(0.7)

 

 

(13.4)

 

 

(14.1)

 

 

 

 

 

 

 

 

 

 

Change in Interest Expense:

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

 

 

 

 

 

 

 

 

 

Savings

 

 

0.3

 

 

(1.2)

 

 

(0.9)

Money Market

 

 

(0.3)

 

 

(2.8)

 

 

(3.1)

Time

 

 

(1.7)

 

 

(1.9)

 

 

(3.6)

Total Interest-Bearing Deposits

 

 

(1.7)

 

 

(5.9)

 

 

(7.6)

Short-Term Borrowings

 

 

2.7

 

 

 —

 

 

2.7

Long-Term Borrowings

 

 

(2.7)

 

 

(0.1)

 

 

(2.8)

Total Change in Interest Expense

 

 

(1.7)

 

 

(6.0)

 

 

(7.7)

Change in Net Interest Income

 

$

1.0

 

$

(7.4)

 

$

(6.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and Leases

 

 

 

 

 

 

 

 

 

Table 7

 

 

 

March 31, 

 

December 31, 

 

March 31, 

(dollars in thousands)

 

    

2020

    

2019

    

2019

Commercial and industrial

 

  

$

3,025,345

  

$

2,743,242

  

$

3,203,770

Commercial real estate

 

 

 

3,413,014

 

 

3,463,953

 

 

3,147,304

Construction

 

 

 

572,062

 

 

519,241

 

 

595,491

Residential:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

 

3,673,455

 

 

3,768,936

 

 

3,543,964

Home equity line

 

 

 

891,698

 

 

893,239

 

 

907,829

Total residential

 

 

 

4,565,153

 

 

4,662,175

 

 

4,451,793

Consumer

 

 

 

1,568,073

 

 

1,620,556

 

 

1,653,109

Lease financing

 

 

 

236,623

 

 

202,483

 

 

145,987

Total loans and leases

 

 

$

13,380,270

 

$

13,211,650

 

$

13,197,454

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

Table 8

 

 

 

March 31, 

 

December 31, 

 

March 31, 

(dollars in thousands)

 

    

2020

    

2019

    

2019

Demand

 

 

$

5,745,539

 

$

5,880,072

 

$

5,843,480

Savings

 

 

 

5,213,471

 

 

4,998,933

 

 

4,884,418

Money Market

 

 

 

3,148,694

 

 

3,055,832

 

 

3,156,056

Time

 

 

 

2,912,298

 

 

2,510,157

 

 

2,911,290

    Total Deposits

 

 

$

17,020,002

 

$

16,444,994

 

$

16,795,244

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

    

2020

    

2019

    

2019

Non-Performing Assets

 

 

 

 

 

 

 

 

 

 

Non-Accrual Loans and Leases

 

 

 

 

 

 

 

 

 

 

Commercial Loans:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

$

32

 

$

32

 

$

190

Commercial real estate

 

 

 

 —

 

 

30

 

 

 —

Construction

 

 

 

2,422

 

 

 —

 

 

 —

Total Commercial Loans

 

 

 

2,454

 

 

62

 

 

190

Residential Loans:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

 

4,472

 

 

5,406

 

 

4,090

Total Residential Loans

 

 

 

4,472

 

 

5,406

 

 

4,090

Total Non-Accrual Loans and Leases

 

 

 

6,926

 

 

5,468

 

 

4,280

Other Real Estate Owned

 

 

 

238

 

 

319

 

 

124

Total Non-Performing Assets

 

 

$

7,164

 

$

5,787

 

$

4,404

 

 

 

 

 

 

 

 

 

 

 

Accruing Loans and Leases Past Due 90 Days or More

 

 

 

 

 

 

 

 

 

 

Commercial Loans:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

$

4,007

 

$

1,429

 

$

350

Commercial real estate

 

 

 

757

 

 

1,013

 

 

 —

Construction

 

 

 

148

 

 

2,367

 

 

89

Total Commercial Loans

 

 

 

4,912

 

 

4,809

 

 

439

Residential Loans:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

 

82

 

 

74

 

 

 —

Home equity line

 

 

 

2,566

 

 

2,995

 

 

2,448

Total Residential Loans

 

 

 

2,648

 

 

3,069

 

 

2,448

Consumer

 

 

 

3,353

 

 

4,272

 

 

3,538

Total Accruing Loans and Leases Past Due 90 Days or More

 

 

$

10,913

 

$

12,150

 

$

6,425

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

17,823

 

 

14,493

 

 

25,229

Total Loans and Leases

 

 

$

13,380,270

 

$

13,211,650

 

$

13,197,454

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses

 

 

 

 

 

 

 

 

Table 10

 

 

 

For the Three Months Ended

 

 

 

March 31, 

 

December 31, 

 

March 31, 

 

(dollars in thousands)

    

2020

    

2019

    

2019

    

Balance at Beginning of Period

 

$

130,530

 

$

132,964

 

$

141,718

 

Adjustment to Adopt ASC Topic 326

 

 

770

 

 

 —

 

 

 —

 

After Adoption of ASC Topic 326

 

 

131,300

 

 

132,964

 

 

141,718

 

Loans and Leases Charged-Off

 

 

 

 

 

 

 

 

 

 

Commercial Loans:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

(201)

 

 

(204)

 

 

 —

 

Lease financing

 

 

 —

 

 

 —

 

 

(24)

 

Total Commercial Loans

 

 

(201)

 

 

(204)

 

 

(24)

 

Residential Loans:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

 —

 

 

(236)

 

 

 —

 

Home equity line

 

 

(8)

 

 

(195)

 

 

 —

 

Total Residential Loans

 

 

(8)

 

 

(431)

 

 

 —

 

Consumer

 

 

(8,597)

 

 

(8,689)

 

 

(8,598)

 

Total Loans and Leases Charged-Off

 

 

(8,806)

 

 

(9,324)

 

 

(8,622)

 

Recoveries on Loans and Leases Previously Charged-Off

 

 

 

 

 

 

 

 

 

 

Commercial Loans:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

220

 

 

107

 

 

37

 

Commercial real estate

 

 

 —

 

 

170

 

 

31

 

Construction

 

 

110

 

 

 —

 

 

 —

 

Total Commercial Loans

 

 

330

 

 

277

 

 

68

 

Residential Loans:

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

135

 

 

37

 

 

218

 

Home equity line

 

 

122

 

 

70

 

 

32

 

Total Residential Loans

 

 

257

 

 

107

 

 

250

 

Consumer

 

 

2,083

 

 

2,256

 

 

2,452

 

Total Recoveries on Loans and Leases Previously Charged-Off

 

 

2,670

 

 

2,640

 

 

2,770

 

Net Loans and Leases Charged-Off

 

 

(6,136)

 

 

(6,684)

 

 

(5,852)

 

Provision for Credit Losses - Loans and Leases

 

 

40,849

 

 

4,250

 

 

5,680

 

Balance at End of Period

 

$

166,013

 

$

130,530

 

$

141,546

 

Average Loans and Leases Outstanding

 

$

13,191,426

 

$

12,940,956

 

$

13,073,708

 

Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)

 

 

0.19

%  

 

0.20

%  

 

0.18

%  

Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding

 

 

1.24

%  

 

0.99

%  

 

1.07

%  

(1)

Annualized for the three months ended March 31, 2020,  December 31, 2019 and March 31, 2019.

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

    

2020

    

2019

    

2019

    

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

$

38,865

 

$

67,836

 

$

69,924

 

Core net income

 

 

$

38,803

 

$

71,250

 

$

72,052

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total stockholders' equity

 

 

$

2,660,811

 

$

2,636,651

 

$

2,540,600

 

Less: average goodwill

 

 

 

995,492

 

 

995,492

 

 

995,492

 

Average tangible stockholders' equity

 

 

$

1,665,319

 

$

1,641,159

 

$

1,545,108

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

 

$

20,313,304

 

$

20,089,601

 

$

20,494,837

 

Less: average goodwill

 

 

 

995,492

 

 

995,492

 

 

995,492

 

Average tangible assets

 

 

$

19,317,812

 

$

19,094,109

 

$

19,499,345

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total stockholders' equity(1)

 

 

 

5.87

%  

 

10.21

%  

 

11.16

%  

Core return on average total stockholders' equity (non-GAAP)(1)

 

 

 

5.87

%  

 

10.72

%  

 

11.50

%  

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

 

 

 

9.39

%  

 

16.40

%  

 

18.35

%  

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

 

 

 

9.37

%  

 

17.22

%  

 

18.91

%  

 

 

 

 

 

 

 

 

 

 

 

 

Return on average total assets(1)

 

 

 

0.77

%  

 

1.34

%  

 

1.38

%  

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

 

 

 

0.77

%  

 

1.41

%  

 

1.43

%  

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

 

 

 

0.81

%  

 

1.41

%  

 

1.45

%  

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

 

 

 

0.81

%  

 

1.48

%  

 

1.50

%  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

As of

 

As of

 

 

 

 

March 31, 

 

December 31, 

 

March 31, 

 

 

 

    

2020

    

2019

    

2019

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

 

$

2,664,685

 

$

2,640,258

 

$

2,613,202

 

Less: goodwill

 

 

 

995,492

 

 

995,492

 

 

995,492

 

Tangible stockholders' equity

 

 

$

1,669,193

 

$

1,644,766

 

$

1,617,710

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

$

20,755,891

 

$

20,166,734

 

$

20,441,136

 

Less: goodwill

 

 

 

995,492

 

 

995,492

 

 

995,492

 

Tangible assets

 

 

$

19,760,399

 

$

19,171,242

 

$

19,445,644

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

 

 

129,827,968

 

 

129,928,479

 

 

135,012,015

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity to total assets

 

 

 

12.84

%  

 

13.09

%  

 

12.78

%

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

 

 

8.45

%  

 

8.58

%  

 

8.32

%

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

 

$

20.52

 

$

20.32

 

$

19.36

 

Tangible book value per share (non-GAAP)

 

 

$

12.86

 

$

12.66

 

$

11.98

 

(1)

Annualized for the three months ended March 31, 2020,  December 31, 2019 and March 31, 2019.

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

    

2020

    

2019

    

2019

    

Net interest income

 

 

$

138,683

 

$

139,619

 

$

145,089

 

Core net interest income (non-GAAP)

 

 

$

138,683

 

$

139,619

 

$

145,089

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

$

49,228

 

$

46,708

 

$

47,072

 

(Gain) loss on sale of securities

 

 

 

(85)

 

 

123

 

 

2,613

 

Costs associated with the sale of stock

 

 

 

 —

 

 

4,500

 

 

 —

 

Core noninterest income (non-GAAP)

 

 

$

49,143

 

$

51,331

 

$

49,685

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

 

$

96,466

 

$

91,058

 

$

92,623

 

One-time items(1)

 

 

 

 —

 

 

(48)

 

 

(261)

 

Core noninterest expense (non-GAAP)

 

 

$

96,466

 

$

91,010

 

$

92,362

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

$

38,865

 

$

67,836

 

$

69,924

 

(Gain) loss on sale of securities

 

 

 

(85)

 

 

123

 

 

2,613

 

Costs associated with the sale of stock

 

 

 

 —

 

 

4,500

 

 

 —

 

One-time noninterest expense items(1)

 

 

 

 —

 

 

48

 

 

261

 

Tax adjustments(2)

 

 

 

23

 

 

(1,257)

 

 

(746)

 

Total core adjustments

 

 

 

(62)

 

 

3,414

 

 

2,128

 

Core net income (non-GAAP)

 

 

$

38,803

 

$

71,250

 

$

72,052

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

 

$

0.30

 

$

0.52

 

$

0.52

 

Diluted earnings per share

 

 

$

0.30

 

$

0.52

 

$

0.52

 

Efficiency ratio

 

 

 

51.33

%

 

48.86

%

 

48.20

%

 

 

 

 

 

 

 

 

 

 

 

 

Core basic earnings per share (non-GAAP)

 

 

$

0.30

 

$

0.55

 

$

0.53

 

Core diluted earnings per share (non-GAAP)

 

 

$

0.30

 

$

0.54

 

$

0.53

 

Core efficiency ratio (non-GAAP)

 

 

 

51.35

%

 

47.65

%

 

47.42

%

(1)

One-time items for all periods shown included nonrecurring offering costs.

(2)

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