0001558370-22-000340.txt : 20220121 0001558370-22-000340.hdr.sgml : 20220121 20220121081946 ACCESSION NUMBER: 0001558370-22-000340 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20220121 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20220121 DATE AS OF CHANGE: 20220121 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: 22544184 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 fhb-20220121x8k.htm 8-K
0000036377false00000363772022-01-212022-01-21

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): January 21, 2022

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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:

Trading Symbol(s)

Name of each exchange on which registered:

Common Stock, par value $0.01 per share

FHB

NASDAQ Global Select Market

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 January 21, 2022, First Hawaiian, Inc. (together with its consolidated subsidiary, “First Hawaiian”) reported its earnings for the quarter ended December 31, 2021. 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 8.01. Other Events.

On January 21, 2022, First Hawaiian announced a stock repurchase program for up to $75 million of its outstanding common stock during 2022. Repurchases of shares of the Company’s common stock may be conducted through open market purchases, which may include purchases under a trading plan adopted pursuant to Securities and Exchange Commission Rule 10b5-1, or through privately negotiated transactions. The timing and exact amount of share repurchases, if any, will be subject to management’s discretion and various factors, including the Company’s capital position and financial performance, as well as market conditions. The repurchase program may be suspended, terminated or modified at any time for any reason.

Item 9.01 Financial Statements and Exhibits.

(d)Exhibits

Exhibit No.

Description

99.1

Press release of First Hawaiian, Inc. dated January 21, 2022 containing financial information for its quarter ended December 31, 2021.

104

Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document

2

SIGNATURE

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

Pril

FIRST HAWAIIAN, INC.

Date: January 21, 2022

By:

/s/ Robert S. Harrison

Robert S. Harrison

Chairman of the Board, President and Chief Executive Officer

(Principal Executive Officer)

3

EX-99.1 2 fhb-20220121xex99d1.htm EX-99.1

EXHIBIT 99.1

Graphic

For Immediate Release

First Hawaiian, Inc. Reports Fourth Quarter 2021 Financial Results and Declares Dividend

HONOLULU, Hawaii January 21, 2022--(Globe Newswire)--First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended December 31, 2021.

“We are pleased to report that we closed 2021 with a solid fourth quarter,” said Bob Harrison, Chairman, President and CEO. “We saw strong loan growth, continued to grow consumer and commercial deposits while reducing excess liquidity, and credit quality remained excellent.”

On January 19, 2022 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on March 4, 2022 to stockholders of record at the close of business on February 18, 2022.

Additionally, the Company’s Board of Directors adopted a stock repurchase program for up to $75 million of its outstanding common stock during 2022.

Fourth Quarter 2021 Highlights:

Net income of $57.0 million, or $0.44 per diluted share
Total loans and leases increased $127.7 million versus prior quarter
Total deposits decreased $303.9 million versus prior quarter, reduced public deposits by $978.4 million
Incurred a $9.0 million charge in connection with the prepayment of $200.0 million of Federal Home Loan Bank advances at a weighted average rate of 2.73%
No provision for credit losses was taken in the quarter
Board of Directors declared a quarterly dividend of $0.26 per share
Repurchased $21.5 million of stock under share repurchase program

Balance Sheet

Total assets were $25.0 billion as of December 31, 2021, compared to $25.5 billion as of September 30, 2021.

Gross loans and leases were $13.0 billion as of December 31, 2021, an increase of $127.7 million, or 1.0%, from $12.8 billion as of September 30, 2021.

Total deposits were $21.8 billion as of December 31, 2021, a decrease of $303.9 million, or 1.4%, from $22.1 billion as of September 30, 2021.

Net Interest Income

Net interest income for the fourth quarter of 2021 was $137.3 million, an increase of $4.7 million, or 3.6%, compared to $132.6 million for the prior quarter.

The net interest margin (NIM) was 2.38% in the fourth quarter of 2021, an increase of 2 basis points compared to 2.36% in the third quarter of 2021.

Provision Expense

During the quarter ended December 31, 2021, we did not record a provision for credit losses. In the quarter ended September 30, 2021, we recorded a $4.0 million negative provision for credit losses.

Noninterest Income

Noninterest income was $41.6 million in the fourth quarter of 2021, a decrease of $8.5 million compared to noninterest income of $50.1 million in the third quarter of 2021.


Noninterest Expense

Noninterest expense was $108.7 million in the fourth quarter of 2021, an increase of $7.7 million compared to noninterest expense of $101.0 million in the third quarter of 2021.

The efficiency ratio was 60.5% and 55.1% for the quarters ended December 31, 2021 and September 30, 2021, respectively.

Taxes

The effective tax rate was 18.7% for the quarter ended December 31, 2021 and 25.0% for the quarter ended September 30, 2021.

Asset Quality

The allowance for credit losses was $157.3 million, or 1.21% of total loans and leases, as of December 31, 2021, compared to $161.2 million, or 1.26% of total loans and leases, as of September 30, 2021. The reserve for unfunded commitments was $30.3 million as of December 31, 2021 compared to $32.5 million as of September 30, 2021. Net charge-offs were $6.2 million, or 0.19% of average loans and leases on an annualized basis for the quarter ended December 31, 2021, compared to net charge-offs of $0.6 million, or 0.02% of average loans and leases on an annualized basis for the quarter ended September 30, 2021. Total non-performing assets were $7.3 million, or 0.06% of total loans and leases and other real estate owned, at December 31, 2021, compared to total non-performing assets of $8.6 million, or 0.07% of total loans and leases and other real estate owned, at September 30, 2021.

Capital

Total stockholders’ equity was $2.7 billion at both December 31, 2021 and September 30, 2021.

The tier 1 leverage, common equity tier 1 and total capital ratios were 7.24%, 12.24% and 13.49%, respectively, at December 31, 2021, compared with 7.39%, 12.63% and 13.88%, respectively, at September 30, 2021.

The Company repurchased 0.77 million shares of common stock at a total cost of $21.5 million under the stock repurchase program in the fourth quarter. The average cost was $27.92 per share repurchased. Total repurchases in 2021 were $75.0 million.

As to the stock repurchase program approved for 2022, repurchases of shares of the Company’s common stock may be conducted through open market purchases, which may include purchases under a trading plan adopted pursuant to Securities and Exchange Commission Rule 10b5-1, or through privately negotiated transactions. The timing and exact amount of share repurchases, if any, will be subject to management’s discretion and various factors, including the Company’s capital position and financial performance, as well as market conditions. The repurchase program may be suspended, terminated or modified at any time for any reason.

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, 8:00 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: 8790379. 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 January 28, 2022. Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 8790379.

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, 2020 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021.

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 14 and 15 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

For the Year Ended

December 31, 

September 30, 

December 31, 

December 31, 

(dollars in thousands, except per share data)

    

2021

    

2021

    

2020

    

2021

    

2020

 

Operating Results:

Net interest income

$

137,327

$

132,593

$

135,227

$

530,559

$

535,734

Provision for credit losses

(4,000)

20,000

(39,000)

121,718

Noninterest income

41,573

50,104

53,598

184,916

197,380

Noninterest expense

108,749

101,036

88,127

405,479

367,672

Net income

57,022

64,279

61,739

265,735

185,754

Basic earnings per share

0.45

0.50

0.48

2.06

1.43

Diluted earnings per share

0.44

0.50

0.47

2.05

1.43

Dividends declared per share

0.26

0.26

0.26

1.04

1.04

Dividend payout ratio

59.09

%

52.00

%

55.32

%

50.73

%

72.73

%

Supplemental Income Statement Data (non-GAAP):

Core net interest income

$

137,327

$

132,593

$

135,227

$

530,559

$

535,734

Core noninterest income

47,587

50,104

58,438

190,828

202,322

Core noninterest expense

99,775

98,936

88,127

393,245

367,672

Core net income

68,013

65,819

65,288

279,229

189,378

Core basic earnings per share

0.53

0.51

0.50

2.17

1.46

Core diluted earnings per share

0.53

0.51

0.50

2.16

1.45

Performance Ratios(1):

Net interest margin

2.38

%  

2.36

%  

2.71

%  

2.43

%  

2.77

%

Core net interest margin (non-GAAP)

2.38

%  

2.36

%  

2.71

%  

2.43

%  

2.77

%

Efficiency ratio

60.50

%  

55.07

%  

46.59

%  

56.45

%  

50.10

%

Core efficiency ratio (non-GAAP)

53.71

%  

53.92

%  

45.43

%  

54.30

%  

49.77

%

Return on average total assets

0.88

%  

1.02

%  

1.09

%  

1.09

%  

0.85

%

Core return on average total assets (non-GAAP)

1.05

%  

1.04

%  

1.16

%  

1.14

%  

0.87

%

Return on average tangible assets (non-GAAP)

0.92

%  

1.06

%  

1.14

%  

1.13

%  

0.89

%

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

1.09

%  

1.09

%  

1.21

%  

1.19

%  

0.91

%

Return on average total stockholders' equity

8.46

%  

9.31

%  

8.99

%  

9.81

%  

6.88

%

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

10.09

%  

9.54

%  

9.51

%  

10.31

%  

7.02

%

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

13.47

%  

14.63

%  

14.14

%  

15.51

%  

10.91

%

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

16.06

%  

14.98

%  

14.95

%  

16.30

%  

11.12

%

Average Balances:

Average loans and leases

$

12,814,316

$

12,881,885

$

13,366,980

$

13,034,295

$

13,518,308

Average earning assets

23,100,445

22,533,174

19,977,933

21,921,149

19,376,343

Average assets

25,650,505

25,058,085

22,468,040

24,426,258

21,869,064

Average deposits

22,246,577

21,621,836

19,020,800

21,011,587

18,252,998

Average stockholders' equity

2,675,513

2,738,540

2,732,271

2,708,370

2,698,853

Market Value Per Share:

Closing

27.33

29.35

23.58

27.33

23.58

High

30.14

30.06

23.90

30.80

31.25

Low

25.17

25.75

14.16

23.14

13.56


As of

As of

As of

December 31, 

September 30, 

December 31, 

(dollars in thousands, except per share data)

2021

2021

 

2020

Balance Sheet Data:

Loans and leases

$

12,961,999

$

12,834,339

$

13,279,097

Total assets

24,992,410

25,548,322

22,662,831

Total deposits

21,816,146

22,120,003

19,227,723

Long-term borrowings

200,000

200,010

Total stockholders' equity

2,656,912

2,711,734

2,744,104

Per Share of Common Stock:

Book value

$

20.84

$

21.14

$

21.12

Tangible book value (non-GAAP)(4)

13.03

13.38

13.46

Asset Quality Ratios:

Non-accrual loans and leases / total loans and leases

0.05

%  

0.07

%

0.07

%  

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

1.21

%  

1.26

%

1.57

%  

Capital Ratios:

Common Equity Tier 1 Capital Ratio

  

12.24

%  

  

12.63

%

12.47

%  

Tier 1 Capital Ratio

12.24

%  

12.63

%

12.47

%  

Total Capital Ratio

13.49

%  

13.88

%

13.73

%  

Tier 1 Leverage Ratio

7.24

%  

7.39

%

8.00

%  

Total stockholders' equity to total assets

10.63

%  

10.61

%

12.11

%  

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

6.92

%  

6.99

%

8.07

%  

Non-Financial Data:

Number of branches

54

54

54

Number of ATMs

299

298

297

Number of Full-Time Equivalent Employees

2,036

2,025

2,103


(1)Except for the efficiency ratio and the core efficiency ratio, amounts are annualized for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020.
(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 14, 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 14, 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 14, GAAP to Non-GAAP Reconciliation.


Consolidated Statements of Income

Table 2

For the Three Months Ended

For the Year Ended

December 31, 

September 30, 

December 31, 

December 31, 

(dollars in thousands, except per share amounts)

    

2021

    

2021

    

2020

    

2021

    

2020

Interest income

Loans and lease financing

$

111,865

$

110,765

$

118,314

$

444,488

$

496,523

Available-for-sale securities

28,393

25,234

22,752

101,410

81,808

Other

1,051

1,205

615

3,413

4,428

Total interest income

141,309

137,204

141,681

549,311

582,759

Interest expense

Deposits

3,216

3,218

5,061

13,853

35,471

Short-term and long-term borrowings

766

1,393

1,393

4,899

11,554

Total interest expense

3,982

4,611

6,454

18,752

47,025

Net interest income

137,327

132,593

135,227

530,559

535,734

Provision for credit losses

(4,000)

20,000

(39,000)

121,718

Net interest income after provision for credit losses

137,327

136,593

115,227

569,559

414,016

Noninterest income

Service charges on deposit accounts

7,171

6,989

6,769

27,510

28,169

Credit and debit card fees

16,266

16,017

15,583

63,580

55,451

Other service charges and fees

9,196

10,233

8,404

38,578

33,876

Trust and investment services income

8,895

8,625

8,733

34,719

35,652

Bank-owned life insurance

2,851

4,841

4,159

13,185

15,754

Investment securities (losses) gains, net

(12)

102

(114)

Other

(2,806)

3,399

9,962

7,242

28,592

Total noninterest income

41,573

50,104

53,598

184,916

197,380

Noninterest expense

Salaries and employee benefits

45,982

46,484

42,687

182,384

174,221

Contracted services and professional fees

14,603

15,042

13,940

63,349

60,546

Occupancy

8,074

6,790

7,355

29,348

28,821

Equipment

6,317

6,549

5,225

24,719

20,277

Regulatory assessment and fees

2,557

1,828

2,168

8,245

8,659

Advertising and marketing

1,579

1,469

1,096

6,108

5,695

Card rewards program

7,471

6,676

4,890

25,244

22,114

Other

22,166

16,198

10,766

66,082

47,339

Total noninterest expense

108,749

101,036

88,127

405,479

367,672

Income before provision for income taxes

70,151

85,661

80,698

348,996

243,724

Provision for income taxes

13,129

21,382

18,959

83,261

57,970

Net income

$

57,022

$

64,279

$

61,739

$

265,735

$

185,754

Basic earnings per share

$

0.45

$

0.50

$

0.48

$

2.06

$

1.43

Diluted earnings per share

$

0.44

$

0.50

$

0.47

$

2.05

$

1.43

Basic weighted-average outstanding shares

127,893,011

128,660,038

129,912,104

128,963,131

129,890,225

Diluted weighted-average outstanding shares

128,512,257

129,210,448

130,314,381

129,537,922

130,220,077


Consolidated Balance Sheets

Table 3

December 31, 

September 30, 

December 31, 

(dollars in thousands)

    

2021

    

2021

    

2020

Assets

Cash and due from banks

$

246,716

$

268,467

$

303,373

Interest-bearing deposits in other banks

1,011,753

2,130,615

737,571

Investment securities, at fair value (amortized cost: $8,560,733 as of December 31, 2021, $7,994,266 as of September 30, 2021 and $5,985,031 as of December 31, 2020)

8,428,032

7,953,727

6,071,415

Loans held for sale

538

2,052

11,579

Loans and leases

12,961,999

12,834,339

13,279,097

Less: allowance for credit losses

157,262

161,246

208,454

Net loans and leases

12,804,737

12,673,093

13,070,643

Premises and equipment, net

318,448

317,272

322,401

Other real estate owned and repossessed personal property

175

Accrued interest receivable

63,158

64,855

69,626

Bank-owned life insurance

471,819

468,968

466,537

Goodwill

995,492

995,492

995,492

Mortgage servicing rights

8,302

9,107

10,731

Other assets

643,240

664,674

603,463

Total assets

$

24,992,410

$

25,548,322

$

22,662,831

Liabilities and Stockholders' Equity

Deposits:

Interest-bearing

$

12,422,283

$

13,246,579

$

11,705,609

Noninterest-bearing

9,393,863

8,873,424

7,522,114

Total deposits

21,816,146

22,120,003

19,227,723

Long-term borrowings

200,000

200,010

Retirement benefits payable

134,491

144,400

143,373

Other liabilities

384,861

372,185

347,621

Total liabilities

22,335,498

22,836,588

19,918,727

Stockholders' equity

Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,581,715 / 127,502,472 shares as of December 31, 2021, issued/outstanding: 140,563,799 / 128,255,570 shares as of September 30, 2021 and issued/outstanding: 140,191,133 / 129,912,272 shares as of December 31, 2020)

1,406

1,406

1,402

Additional paid-in capital

2,527,663

2,524,168

2,514,014

Retained earnings

604,534

581,094

473,974

Accumulated other comprehensive (loss) income, net

(121,693)

(61,463)

31,604

Treasury stock (13,079,243 shares as of December 31, 2021, 12,308,229 shares as of September 30, 2021 and 10,278,861 shares as of December 31, 2020)

(354,998)

(333,471)

(276,890)

Total stockholders' equity

2,656,912

2,711,734

2,744,104

Total liabilities and stockholders' equity

$

24,992,410

$

25,548,322

$

22,662,831


Average Balances and Interest Rates

Table 4

Three Months Ended

Three Months Ended

Three Months Ended

December 31, 2021

September 30, 2021

December 31, 2020

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

$

2,074.5

$

0.8

0.15

%  

$

2,356.4

$

0.9

0.16

%  

$

688.1

$

0.2

0.10

%

Available-for-Sale Investment Securities

Taxable

7,515.2

25.8

1.37

6,654.6

22.9

1.37

5,632.9

22.0

1.56

Non-Taxable

615.3

3.3

2.14

561.1

2.9

2.11

220.0

0.9

1.74

Total Available-for-Sale Investment Securities

8,130.5

29.1

1.43

7,215.7

25.8

1.43

5,852.9

22.9

1.57

Loans Held for Sale

1.0

1.35

2.2

2.39

16.2

0.1

2.00

Loans and Leases(1)

Commercial and industrial

2,084.0

21.1

4.01

2,367.2

19.7

3.29

3,077.6

22.6

2.93

Commercial real estate

3,572.9

26.0

2.89

3,447.0

25.4

2.92

3,407.2

26.2

3.06

Construction

806.6

6.3

3.09

862.4

7.0

3.24

703.1

5.6

3.14

Residential:

Residential mortgage

4,014.9

34.9

3.48

3,866.1

34.6

3.58

3,679.6

37.1

4.03

Home equity line

864.4

5.5

2.52

837.7

5.5

2.62

856.8

6.1

2.81

Consumer

1,241.3

16.3

5.22

1,260.2

16.8

5.28

1,394.5

19.0

5.43

Lease financing

230.2

1.9

3.27

241.3

2.0

3.23

248.2

1.8

2.89

Total Loans and Leases

12,814.3

112.0

3.48

12,881.9

111.0

3.43

13,367.0

118.4

3.53

Other Earning Assets

80.1

0.3

1.27

77.0

0.3

1.34

53.7

0.4

3.26

Total Earning Assets(2)

23,100.4

142.2

2.45

22,533.2

138.0

2.44

19,977.9

142.0

2.83

Cash and Due from Banks

282.2

290.5

289.2

Other Assets

2,267.9

2,234.4

2,200.9

Total Assets

$

25,650.5

$

25,058.1

$

22,468.0

Interest-Bearing Liabilities

Interest-Bearing Deposits

Savings

$

7,086.0

$

0.8

0.04

%  

$

6,886.0

$

0.6

0.03

%  

5,786.4

$

0.5

0.03

%

Money Market

4,048.3

0.5

0.05

3,957.1

0.5

0.05

3,440.9

0.4

0.05

Time

1,819.0

1.9

0.42

1,884.4

2.1

0.45

2,461.3

4.2

0.67

Total Interest-Bearing Deposits

12,953.3

3.2

0.10

12,727.5

3.2

0.10

11,688.6

5.1

0.17

Long-Term Borrowings

110.9

0.8

2.74

200.0

1.4

2.76

200.0

1.4

2.77

Total Interest-Bearing Liabilities

13,064.2

4.0

0.12

12,927.5

4.6

0.14

11,888.6

6.5

0.22

Net Interest Income

$

138.2

$

133.4

$

135.5

Interest Rate Spread

2.33

%  

2.30

%  

2.61

%

Net Interest Margin

2.38

%  

2.36

%  

2.71

%

Noninterest-Bearing Demand Deposits

9,293.3

8,894.3

7,332.2

Other Liabilities

617.5

497.7

514.9

Stockholders' Equity

2,675.5

2,738.6

2,732.3

Total Liabilities and Stockholders' Equity

$

25,650.5

$

25,058.1

$

22,468.0


(1)Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
(2)Interest income includes taxable-equivalent basis adjustments of $0.9 million, $0.8 million and $0.3 million for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively.


Average Balances and Interest Rates

Table 5

Year Ended

Year Ended

December 31, 2021

December 31, 2020

Average

Income/

Yield/

Average

Income/

Yield/

(dollars in millions)

    

Balance

Expense

Rate

Balance

Expense

Rate

Earning Assets

    

    

    

    

    

    

  

Interest-Bearing Deposits in Other Banks

$

1,723.0

$

2.3

0.14

%  

$

882.1

$

2.4

0.27

%

Available-for-Sale Investment Securities

Taxable

6,608.9

93.3

1.41

4,844.5

80.9

1.67

Non-Taxable

481.9

10.2

2.12

62.0

1.1

1.77

Total Available-for-Sale Investment Securities

7,090.8

103.5

1.46

4,906.5

82.0

1.67

Loans Held for Sale

3.6

0.1

2.24

13.0

0.3

2.21

Loans and Leases(1)

Commercial and industrial

2,586.8

82.2

3.18

3,168.7

93.2

2.94

Commercial real estate

3,456.7

101.6

2.94

3,419.1

116.9

3.42

Construction

804.5

25.4

3.16

615.7

21.3

3.46

Residential:

Residential mortgage

3,836.6

138.3

3.60

3,698.7

148.4

4.01

Home equity line

834.3

22.2

2.66

875.1

27.1

3.10

Consumer

1,275.5

67.8

5.31

1,501.6

82.9

5.52

Lease financing

239.9

7.6

3.14

239.4

6.9

2.90

Total Loans and Leases

13,034.3

445.1

3.42

13,518.3

496.7

3.67

Other Earning Assets

69.4

1.1

1.54

56.4

2.0

3.66

Total Earning Assets(2)

21,921.1

552.1

2.52

19,376.3

583.4

3.01

Cash and Due from Banks

289.3

304.9

Other Assets

2,215.9

2,187.9

Total Assets

$

24,426.3

$

21,869.1

Interest-Bearing Liabilities

Interest-Bearing Deposits

Savings

$

6,581.1

$

2.5

0.04

%  

$

5,538.1

$

5.2

0.09

%

Money Market

3,831.4

2.1

0.05

3,266.6

6.6

0.20

Time

2,005.0

9.3

0.47

2,839.8

23.7

0.83

Total Interest-Bearing Deposits

12,417.5

13.9

0.11

11,644.5

35.5

0.30

Federal Funds Purchased

1.4

0.43

Short-Term Borrowings

208.2

6.0

2.88

Long-Term Borrowings

177.5

4.9

2.76

200.0

5.5

2.77

Total Interest-Bearing Liabilities

12,595.0

18.8

0.15

12,054.1

47.0

0.39

Net Interest Income

$

533.3

$

536.4

Interest Rate Spread

2.37

%  

2.62

%

Net Interest Margin

2.43

%  

2.77

%

Noninterest-Bearing Demand Deposits

8,594.1

6,608.5

Other Liabilities

528.8

507.6

Stockholders' Equity

2,708.4

2,698.9

Total Liabilities and Stockholders' Equity

$

24,426.3

$

21,869.1


(1)Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.
(2)Interest income includes taxable-equivalent basis adjustments of $2.8 million and $0.7 million for the years ended December 31, 2021 and 2020, respectively.


Analysis of Change in Net Interest Income

Table 6

Three Months Ended December 31, 2021

Compared to September 30, 2021

(dollars in millions)

Volume

Rate

Total

Change in Interest Income:

    

    

    

Interest-Bearing Deposits in Other Banks

$

(0.1)

$

$

(0.1)

Available-for-Sale Investment Securities

Taxable

2.9

2.9

Non-Taxable

0.3

0.1

0.4

Total Available-for-Sale Investment Securities

3.2

0.1

3.3

Loans and Leases

Commercial and industrial

(2.5)

3.9

1.4

Commercial real estate

0.9

(0.3)

0.6

Construction

(0.4)

(0.3)

(0.7)

Residential:

Residential mortgage

1.3

(1.0)

0.3

Home equity line

0.2

(0.2)

Consumer

(0.3)

(0.2)

(0.5)

Lease financing

(0.1)

(0.1)

Total Loans and Leases

(0.9)

1.9

1.0

Total Change in Interest Income

2.2

2.0

4.2

Change in Interest Expense:

Interest-Bearing Deposits

Savings

0.2

0.2

Time

(0.1)

(0.1)

(0.2)

Total Interest-Bearing Deposits

(0.1)

0.1

Long-Term Borrowings

(0.6)

(0.6)

Total Change in Interest Expense

(0.7)

0.1

(0.6)

Change in Net Interest Income

$

2.9

$

1.9

$

4.8


Analysis of Change in Net Interest Income

Table 7

Three Months Ended December 31, 2021

Compared to December 31, 2020

(dollars in millions)

Volume

Rate

Total

Change in Interest Income:

    

    

    

Interest-Bearing Deposits in Other Banks

$

0.5

$

0.1

$

0.6

Available-for-Sale Investment Securities

Taxable

6.7

(2.9)

3.8

Non-Taxable

2.1

0.3

2.4

Total Available-for-Sale Investment Securities

8.8

(2.6)

6.2

Loans Held for Sale

(0.1)

(0.1)

Loans and Leases

Commercial and industrial

(8.5)

7.0

(1.5)

Commercial real estate

1.3

(1.5)

(0.2)

Construction

0.8

(0.1)

0.7

Residential:

Residential mortgage

3.2

(5.4)

(2.2)

Home equity line

(0.6)

(0.6)

Consumer

(2.0)

(0.7)

(2.7)

Lease financing

(0.1)

0.2

0.1

Total Loans and Leases

(5.3)

(1.1)

(6.4)

Other Earning Assets

0.2

(0.3)

(0.1)

Total Change in Interest Income

4.1

(3.9)

0.2

Change in Interest Expense:

Interest-Bearing Deposits

Savings

0.1

0.2

0.3

Money Market

0.1

0.1

Time

(0.9)

(1.4)

(2.3)

Total Interest-Bearing Deposits

(0.7)

(1.2)

(1.9)

Long-Term Borrowings

(0.6)

(0.6)

Total Change in Interest Expense

(1.3)

(1.2)

(2.5)

Change in Net Interest Income

$

5.4

$

(2.7)

$

2.7


Analysis of Change in Net Interest Income

Table 8

Year Ended December 31, 2021

Compared to December 31, 2020

(dollars in millions)

    

Volume

    

Rate

    

Total

Change in Interest Income:

Interest-Bearing Deposits in Other Banks

$

1.5

$

(1.6)

$

(0.1)

Available-for-Sale Investment Securities

Taxable

26.3

(13.9)

12.4

Non-Taxable

8.8

0.3

9.1

Total Available-for-Sale Investment Securities

35.1

(13.6)

21.5

Loans Held for Sale

(0.2)

(0.2)

Loans and Leases

Commercial and industrial

(18.1)

7.1

(11.0)

Commercial real estate

1.3

(16.6)

(15.3)

Construction

6.1

(2.0)

4.1

Residential:

Residential mortgage

5.4

(15.5)

(10.1)

Home equity line

(1.2)

(3.7)

(4.9)

Consumer

(12.1)

(3.0)

(15.1)

Lease financing

0.1

0.6

0.7

Total Loans and Leases

(18.5)

(33.1)

(51.6)

Other Earning Assets

0.4

(1.3)

(0.9)

Total Change in Interest Income

18.3

(49.6)

(31.3)

Change in Interest Expense:

Interest-Bearing Deposits

Savings

0.7

(3.4)

(2.7)

Money Market

1.0

(5.5)

(4.5)

Time

(5.8)

(8.6)

(14.4)

Total Interest-Bearing Deposits

(4.1)

(17.5)

(21.6)

Short-Term Borrowings

(3.0)

(3.0)

(6.0)

Long-Term Borrowings

(0.6)

(0.6)

Total Change in Interest Expense

(7.7)

(20.5)

(28.2)

Change in Net Interest Income

$

26.0

$

(29.1)

$

(3.1)


Loans and Leases

Table 9

December 31, 

September 30, 

December 31, 

(dollars in thousands)

    

2021

    

2021

    

2020

Commercial and industrial:

Commercial and industrial excluding Paycheck Protection Program loans

$

1,870,657

$

1,692,315

$

2,218,266

Paycheck Protection Program loans

216,442

503,069

801,241

Total commercial and industrial

2,087,099

2,195,384

3,019,507

Commercial real estate

3,639,623

3,569,768

3,392,676

Construction

813,969

826,078

735,819

Residential:

Residential mortgage

4,083,367

3,914,632

3,690,218

Home equity line

876,608

852,074

841,624

Total residential

4,959,975

4,766,706

4,531,842

Consumer

1,229,939

1,238,714

1,353,842

Lease financing

231,394

237,689

245,411

Total loans and leases

$

12,961,999

$

12,834,339

$

13,279,097


Deposits

Table 10

December 31, 

September 30, 

December 31, 

(dollars in thousands)

    

2021

    

2021

    

2020

Demand

$

9,393,863

$

8,873,424

$

7,522,114

Savings

6,612,775

7,347,079

6,020,075

Money Market

4,033,070

4,019,250

3,337,236

Time

1,776,438

1,880,250

2,348,298

Total Deposits

$

21,816,146

$

22,120,003

$

19,227,723


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

Table 11

December 31, 

September 30, 

December 31, 

(dollars in thousands)

    

2021

    

2021

    

2020

Non-Performing Assets

Non-Accrual Loans and Leases

Commercial Loans:

Commercial and industrial

$

718

$

746

$

518

Commercial real estate

727

745

80

Construction

2,043

Total Commercial Loans

1,445

1,491

2,641

Residential Loans:

Residential mortgage

5,637

7,137

6,441

Total Residential Loans

5,637

7,137

6,441

Total Non-Accrual Loans and Leases

7,082

8,628

9,082

Other Real Estate Owned

175

Total Non-Performing Assets

$

7,257

$

8,628

$

9,082

Accruing Loans and Leases Past Due 90 Days or More

Commercial Loans:

Commercial and industrial

$

740

$

439

$

2,108

Commercial real estate

882

Construction

93

Total Commercial Loans

740

439

3,083

Residential Loans:

Residential mortgage

987

100

Home equity line

3,681

3,871

4,818

Total Residential Loans

4,668

3,971

4,818

Consumer

1,800

1,376

3,266

Total Accruing Loans and Leases Past Due 90 Days or More

$

7,208

$

5,786

$

11,167

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

$

34,893

$

36,234

$

16,684

Total Loans and Leases

$

12,961,999

$

12,834,339

$

13,279,097


Allowance for Credit Losses

Table 12

For the Three Months Ended

For the Year Ended

December 31, 

September 30, 

December 31, 

December 31, 

December 31, 

(dollars in thousands)

    

2021

    

2021

    

2020

    

2021

 

2020

Balance at Beginning of Period

$

161,246

$

169,148

$

195,876

$

208,454

$

130,530

Adjustment to Adopt ASC Topic 326

770

After Adoption of ASC Topic 326

161,246

169,148

195,876

208,454

131,300

Loans and Leases Charged-Off

Commercial Loans:

Commercial and industrial

(4,432)

(224)

(799)

(5,949)

(15,572)

Commercial real estate

(30)

(66)

(2,753)

Construction

(379)

Total Commercial Loans

(4,432)

(224)

(829)

(6,015)

(18,704)

Residential Loans:

Residential mortgage

(534)

(632)

(14)

Home equity line

(107)

(235)

(46)

(342)

(54)

Total Residential Loans

(641)

(235)

(46)

(974)

(68)

Consumer

(3,250)

(2,926)

(7,049)

(16,634)

(28,791)

Total Loans and Leases Charged-Off

(8,323)

(3,385)

(7,924)

(23,623)

(47,563)

Recoveries on Loans and Leases Previously Charged-Off

Commercial Loans:

Commercial and industrial

244

121

2,986

867

5,005

Commercial real estate

9

15

615

39

615

Construction

100

30

266

200

Total Commercial Loans

353

136

3,631

1,172

5,820

Residential Loans:

Residential mortgage

15

215

37

261

216

Home equity line

28

27

21

117

167

Total Residential Loans

43

242

58

378

383

Consumer

1,743

2,405

2,812

9,600

10,499

Total Recoveries on Loans and Leases Previously Charged-Off

2,139

2,783

6,501

11,150

16,702

Net Loans and Leases Charged-Off

(6,184)

(602)

(1,423)

(12,473)

(30,861)

Provision for Credit Losses - Loans and Leases

2,200

(7,300)

14,001

(38,719)

108,015

Balance at End of Period

$

157,262

$

161,246

$

208,454

$

157,262

$

208,454

Average Loans and Leases Outstanding

$

12,814,316

$

12,881,885

$

13,366,980

$

13,034,295

$

13,518,308

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

0.19

%  

0.02

%  

0.04

%  

0.10

%  

0.23

%

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

1.21

%  

1.26

%  

1.57

%  

1.21

%  

1.57

%

Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases

22.21x

18.69x

22.95x

22.21x

22.95x


(1)Annualized for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020.


Loans and Leases by Year of Origination and Credit Quality Indicator

Table 13

Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

Loans

Amortized

Amortized

(dollars in thousands)

2021

2020

2019

2018

2017

Prior

Cost Basis

Cost Basis

Total

Commercial Lending

Commercial and Industrial

Risk rating:

Pass

$

623,098

$

129,665

$

223,388

$

88,409

$

29,380

$

168,591

$

644,947

$

40,193

$

1,947,671

Special Mention

397

4,382

4,213

12,552

974

5,313

4,804

986

33,621

Substandard

354

1,380

1,951

1,285

60

3,551

17,893

1,043

27,517

Other (1)

13,277

7,070

7,741

4,453

1,995

370

43,384

78,290

Total Commercial and Industrial

637,126

142,497

237,293

106,699

32,409

177,825

711,028

42,222

2,087,099

Commercial Real Estate

Risk rating:

Pass

693,370

338,140

533,887

487,739

415,186

940,732

78,479

14,891

3,502,424

Special Mention

48,499

7,470

25,513

30,255

7,600

119,337

Substandard

1,776

164

15,303

459

17,702

Other (1)

160

160

Total Commercial Real Estate

693,370

338,140

582,386

496,985

440,863

986,450

86,538

14,891

3,639,623

Construction

Risk rating:

Pass

154,558

107,767

210,314

155,311

62,770

48,021

22,859

761,600

Special Mention

244

707

356

1,307

Substandard

363

839

1,202

Other (1)

26,835

8,875

4,317

4,308

2,684

2,048

793

49,860

Total Construction

181,393

116,642

214,875

160,689

65,454

51,264

23,652

813,969

Lease Financing

Risk rating:

Pass

33,980

60,650

48,236

9,449

15,009

57,130

224,454

Special Mention

501

2,702

1,506

311

153

5,173

Substandard

270

140

16

871

470

1,767

Total Lease Financing

34,481

63,622

49,882

9,776

16,033

57,600

231,394

Total Commercial Lending

$

1,546,370

$

660,901

$

1,084,436

$

774,149

$

554,759

$

1,273,139

$

821,218

$

57,113

$

6,772,085


Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

Loans

(continued)

Amortized

Amortized

(dollars in thousands)

2021

2020

2019

2018

2017

Prior

Cost Basis

Cost Basis

Total

Residential Lending

Residential Mortgage

FICO:

740 and greater

$

1,101,958

$

635,061

$

286,993

$

198,622

$

251,906

$

829,175

$

$

$

3,303,715

680 - 739

140,997

81,590

45,163

27,315

32,855

125,906

453,826

620 - 679

15,781

11,943

5,268

10,149

9,069

37,404

89,614

550 - 619

1,735

873

698

533

2,033

7,475

13,347

Less than 550

345

2,603

2,838

5,786

No Score (3)

18,882

7,938

15,051

18,107

17,333

42,185

119,496

Other (2)

25,625

16,263

10,242

11,297

16,242

17,152

44

718

97,583

Total Residential Mortgage

1,304,978

753,668

363,415

266,368

332,041

1,062,135

44

718

4,083,367

Home Equity Line

FICO:

740 and greater

671,566

1,873

673,439

680 - 739

141,889

3,968

145,857

620 - 679

37,815

2,500

40,315

550 - 619

9,090

948

10,038

Less than 550

2,574

68

2,642

No Score (3)

4,317

4,317

Total Home Equity Line

867,251

9,357

876,608

Total Residential Lending

1,304,978

753,668

363,415

266,368

332,041

1,062,135

867,295

10,075

4,959,975

Consumer Lending

FICO:

740 and greater

155,929

83,337

79,617

56,707

24,525

8,067

117,843

209

526,234

680 - 739

93,214

56,327

55,126

34,049

17,527

6,315

69,366

707

332,631

620 - 679

41,671

21,986

28,491

19,403

12,952

5,324

31,165

1,175

162,167

550 - 619

7,836

8,265

13,265

10,497

7,469

3,244

10,359

1,089

62,024

Less than 550

2,272

3,867

6,646

3,484

2,739

1,175

3,195

536

23,914

No Score (3)

481

19

56

40

65

2

35,414

320

36,397

Other (2)

4,737

365

1,712

17

2,182

31

77,528

86,572

Total Consumer Lending

306,140

174,166

184,913

124,197

67,459

24,158

344,870

4,036

1,229,939

Total Loans and Leases

$

3,157,488

$

1,588,735

$

1,632,764

$

1,164,714

$

954,259

$

2,359,432

$

2,033,383

$

71,224

$

12,961,999


(1)Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score.
(2)Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating.
(3)No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.


GAAP to Non-GAAP Reconciliation

Table 14

For the Three Months Ended

For the Year Ended

December 31, 

September 30, 

December 31, 

December 31, 

(dollars in thousands, except per share amounts)

    

2021

    

2021

    

2020

    

2021

    

2020

Income Statement Data:

Net income

$

57,022

$

64,279

$

61,739

$

265,735

$

185,754

Core net income

$

68,013

$

65,819

$

65,288

$

279,229

$

189,378

Average total stockholders' equity

$

2,675,513

$

2,738,540

$

2,732,271

$

2,708,370

$

2,698,853

Less: average goodwill

995,492

995,492

995,492

995,492

995,492

Average tangible stockholders' equity

$

1,680,021

$

1,743,048

$

1,736,779

$

1,712,878

$

1,703,361

Average total assets

$

25,650,505

$

25,058,085

$

22,468,040

$

24,426,258

$

21,869,064

Less: average goodwill

995,492

995,492

995,492

995,492

995,492

Average tangible assets

$

24,655,013

$

24,062,593

$

21,472,548

$

23,430,766

$

20,873,572

Return on average total stockholders' equity(1)

8.46

%  

9.31

%  

8.99

%  

9.81

%  

6.88

%  

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

10.09

%  

9.54

%  

9.51

%  

10.31

%  

7.02

%  

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

13.47

%  

14.63

%  

14.14

%  

15.51

%  

10.91

%  

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

16.06

%  

14.98

%  

14.95

%  

16.30

%  

11.12

%  

Return on average total assets(1)

0.88

%  

1.02

%  

1.09

%  

1.09

%  

0.85

%  

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

1.05

%  

1.04

%  

1.16

%  

1.14

%  

0.87

%  

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

0.92

%  

1.06

%  

1.14

%  

1.13

%  

0.89

%  

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

1.09

%  

1.09

%  

1.21

%  

1.19

%  

0.91

%  

As of

As of

As of

December 31, 

September 30, 

December 31, 

    

2021

    

2021

    

2020

    

Balance Sheet Data:

Total stockholders' equity

$

2,656,912

$

2,711,734

$

2,744,104

Less: goodwill

995,492

995,492

995,492

Tangible stockholders' equity

$

1,661,420

$

1,716,242

$

1,748,612

Total assets

$

24,992,410

$

25,548,322

$

22,662,831

Less: goodwill

995,492

995,492

995,492

Tangible assets

$

23,996,918

$

24,552,830

$

21,667,339

Shares outstanding

127,502,472

128,255,570

129,912,272

Total stockholders' equity to total assets

10.63

%  

10.61

%  

12.11

%  

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

6.92

%  

6.99

%  

8.07

%  

Book value per share

$

20.84

$

21.14

$

21.12

Tangible book value per share (non-GAAP)

$

13.03

$

13.38

$

13.46


(1)Annualized for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020.


GAAP to Non-GAAP Reconciliation

Table 15

For the Three Months Ended

For the Year Ended

December 31, 

September 30, 

December 31, 

December 31, 

(dollars in thousands, except per share amounts)

    

2021

    

2021

    

2020

    

2021

    

2020

 

Net interest income

$

137,327

$

132,593

$

135,227

$

530,559

$

535,734

Core net interest income (non-GAAP)

$

137,327

$

132,593

$

135,227

$

530,559

$

535,734

Noninterest income

$

41,573

$

50,104

$

53,598

$

184,916

$

197,380

Losses (gains) on sale of securities

12

(102)

114

Costs associated with the sale of stock(1)

6,014

4,828

6,014

4,828

Core noninterest income (non-GAAP)

$

47,587

$

50,104

$

58,438

$

190,828

$

202,322

Noninterest expense

$

108,749

$

101,036

$

88,127

$

405,479

$

367,672

Loss on litigation

(2,100)

(2,100)

One-time items(2)

(8,974)

(10,134)

Core noninterest expense (non-GAAP)

$

99,775

$

98,936

$

88,127

$

393,245

$

367,672

Net income

$

57,022

$

64,279

$

61,739

$

265,735

$

185,754

Losses (gains) on sale of securities

12

(102)

114

Costs associated with the sale of stock(1)

6,014

4,828

6,014

4,828

Loss on litigation

2,100

2,100

One-time noninterest expense items(2)

8,974

10,134

Tax adjustments(3)

(3,997)

(560)

(1,291)

(4,652)

(1,318)

Total core adjustments

10,991

1,540

3,549

13,494

3,624

Core net income (non-GAAP)

$

68,013

$

65,819

$

65,288

$

279,229

$

189,378

Basic earnings per share

$

0.45

$

0.50

$

0.48

$

2.06

$

1.43

Diluted earnings per share

$

0.44

$

0.50

$

0.47

$

2.05

$

1.43

Efficiency ratio

60.50

%

55.07

%

46.59

%

56.45

%

50.10

%

Core basic earnings per share (non-GAAP)

$

0.53

$

0.51

$

0.50

$

2.17

$

1.46

Core diluted earnings per share (non-GAAP)

$

0.53

$

0.51

$

0.50

$

2.16

$

1.45

Core efficiency ratio (non-GAAP)

53.71

%

53.92

%

45.43

%

54.30

%

49.77

%


(1)Costs associated with the sale of stock for both the three and twelve months ended December 31, 2021 and 2020 related to changes in the valuation of the funding swap entered into with the buyer of our Visa Class B restricted sales in 2016.
(2)One-time items for the three and twelve months ended December 31, 2021 consisted of fees related to the prepayment of $200.0 million of Federal Home Loan Bank advances. Additionally, one-time items for the twelve months ended December 31, 2021 consisted of severance costs.
(3)Represents the adjustments to net income, tax effected at the Company’s effective tax rate for the respective period.

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Document and Entity Information
Jan. 21, 2022
Document and Entity Information [Abstract]  
Document Type 8-K
Document Period End Date Jan. 21, 2022
Entity File Number 001-14585
Entity Registrant Name FIRST HAWAIIAN, INC.
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 99-0156159
Entity Address, Address Line One 999 Bishop St.
Entity Address, Adress Line Two 29th Floor
Entity Address, State or Province HI
Entity Address, City or Town Honolulu
Entity Address, Postal Zip Code 96813
City Area Code 808
Local Phone Number 525-7000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol FHB
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0000036377
Amendment Flag false
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