EX-99.1 2 fhb-20250725xex99d1.htm EX-99.1

EXHIBIT 99.1

For Immediate Release

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

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

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

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

Second Quarter 2025 Highlights:

●

Net income of $73.2 million, or $0.58 per diluted share

●

Total loans and leases increased $58.8 million versus prior quarter

●

Total deposits increased $15.6 million versus prior quarter

●

Net interest margin increased 3 basis points to 3.11%

●

Recorded a $4.5 million provision for credit losses

●

Provision for income taxes included a net benefit of $5.1 million due a recent change in the California tax code

●

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

Balance Sheet

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

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

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

Net Interest Income

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

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

Provision Expense

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

Noninterest Income

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

Noninterest Expense

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

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

Taxes

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

Asset Quality

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

Capital

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

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

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

First Hawaiian, Inc.

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

Conference Call Information

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

To access the call by phone, please register via the following link:

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

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

Forward-Looking Statements

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

Use of Non-GAAP Financial Measures

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

Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.


Investor Relations Contact:	Media Contact:
Kevin Haseyama, CFA	Lindsay Chambers
(808) 525-6268	(808) 525-6254
khaseyama@fhb.com	lchambers@fhb.com


Financial Highlights	Table 1
	For the Three Months Ended									For the Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands, except per share data)	2025			2025			2024			2025			2024
Operating Results:
Net interest income	$	163,583		$	160,526		$	152,851		$	324,109		$	307,278
Provision for credit losses		4,500			10,500			1,800			15,000			8,100
Noninterest income		53,958			50,477			51,768			104,435			103,139
Noninterest expense		124,939			123,560			122,086			248,499			250,899
Net income		73,247			59,248			61,921			132,495			116,141
Basic earnings per share		0.58			0.47			0.48			1.05			0.91
Diluted earnings per share		0.58			0.47			0.48			1.05			0.91
Dividends declared per share		0.26			0.26			0.26			0.52			0.52
Dividend payout ratio		44.83	%		55.32	%		54.17	%		49.52	%		57.14	%
Performance Ratios⁽¹⁾:
Net interest margin		3.11	%		3.08	%		2.92	%		3.10	%		2.91	%
Efficiency ratio		57.23	%		58.22	%		59.22	%		57.71	%		60.69	%
Return on average total assets		1.23	%		1.01	%		1.04	%		1.12	%		0.97	%
Return on average tangible assets (non-GAAP)⁽²⁾		1.28	%		1.05	%		1.08	%		1.17	%		1.01	%
Return on average total stockholders' equity		11.03	%		9.09	%		9.91	%		10.07	%		9.32	%
Return on average tangible stockholders' equity (non-GAAP)⁽²⁾		17.61	%		14.59	%		16.42	%		16.12	%		15.48	%
Average Balances:
Average loans and leases	$	14,288,918		$	14,309,998		$	14,358,049		$	14,299,400		$	14,335,306
Average earning assets		21,167,588			21,169,194			21,247,707			21,168,386			21,364,799
Average assets		23,859,410			23,890,459			23,958,913			23,874,849			24,073,060
Average deposits		20,280,042			20,354,040			20,308,028			20,316,836			20,439,979
Average stockholders' equity		2,663,850			2,641,978			2,512,471			2,652,975			2,504,656
Market Value Per Share:
Closing		24.96			24.44			20.76			24.96			20.76
High		25.09			28.28			22.68			28.28			23.12
Low		20.32			23.95			19.48			20.32			19.48


	As of			As of			As of			As of
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands, except per share data)	2025			2025			2024			2024
Balance Sheet Data:
Loans and leases	$	14,351,869		$	14,293,036		$	14,408,258		$	14,359,899
Total assets		23,837,147			23,744,958			23,828,186			23,991,791
Total deposits		20,231,419			20,215,816			20,322,216			20,318,832
Short-term borrowings		250,000			250,000			250,000			500,000
Total stockholders' equity		2,694,545			2,648,852			2,617,486			2,550,312

Per Share of Common Stock:
Book value	$	21.61		$	21.07		$	20.70		$	19.94
Tangible book value (non-GAAP)⁽²⁾		13.63			13.15			12.83			12.16

Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases		0.20	%		0.14	%		0.14	%		0.13	%
Allowance for credit losses for loans and leases / total loans and leases		1.17	%		1.17	%		1.11	%		1.12	%

Capital Ratios:
Common Equity Tier 1 Capital Ratio		13.03	%		12.93	%		12.80	%		12.73	%
Tier 1 Capital Ratio		13.03	%		12.93	%		12.80	%		12.73	%
Total Capital Ratio		14.28	%		14.17	%		13.99	%		13.92	%
Tier 1 Leverage Ratio		9.12	%		9.01	%		9.14	%		9.03	%
Total stockholders' equity to total assets		11.30	%		11.16	%		10.98	%		10.63	%
Tangible stockholders' equity to tangible assets (non-GAAP)⁽²⁾		7.44	%		7.27	%		7.10	%		6.76	%

Non-Financial Data:
Number of branches		48			48			48			48
Number of ATMs		274			273			273			272
Number of Full-Time Equivalent Employees		2,006			1,995			1,997			2,032

(1)	Except for the efficiency ratio, amounts are annualized for the three and six months ended June 30, 2025 and 2024 and three months ended March 31, 2025.

(2)

Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation.


Consolidated Statements of Income	Table 2
	For the Three Months Ended						For the Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(dollars in thousands, except per share amounts)	2025		2025		2024		2025		2024
Interest income
Loans and lease financing	$	193,393	$	192,102	$	202,068	$	385,495	$	401,912
Available-for-sale investment securities		12,469		13,150		14,143		25,619		28,689
Held-to-maturity investment securities		16,299		16,647		17,575		32,946		35,368
Other		14,578		13,251		11,148		27,829		23,917
Total interest income		236,739		235,150		244,934		471,889		489,886
Interest expense
Deposits		70,289		71,709		85,609		141,998		169,752
Short-term borrowings		2,627		2,599		5,953		5,226		11,906
Other		240		316		521		556		950
Total interest expense		73,156		74,624		92,083		147,780		182,608
Net interest income		163,583		160,526		152,851		324,109		307,278
Provision for credit losses		4,500		10,500		1,800		15,000		8,100
Net interest income after provision for credit losses		159,083		150,026		151,051		309,109		299,178
Noninterest income
Service charges on deposit accounts		7,830		7,535		7,793		15,365		15,339
Credit and debit card fees		15,913		14,474		15,861		30,387		32,034
Other service charges and fees		13,350		12,167		11,036		25,517		20,940
Trust and investment services income		9,154		9,370		9,426		18,524		19,780
Bank-owned life insurance		4,724		4,371		3,360		9,095		7,646
Investment securities gains, net		—		37		—		37		—
Other		2,987		2,523		4,292		5,510		7,400
Total noninterest income		53,958		50,477		51,768		104,435		103,139
Noninterest expense
Salaries and employee benefits		59,501		60,104		57,737		119,605		116,999
Contracted services and professional fees		15,997		14,839		16,067		30,836		31,806
Occupancy		7,934		8,100		7,377		16,034		14,318
Equipment		14,037		13,871		13,196		27,908		26,609
Regulatory assessment and fees		3,759		3,823		3,814		7,582		11,934
Advertising and marketing		2,035		2,179		1,765		4,214		4,377
Card rewards program		8,406		7,919		8,719		16,325		17,227
Other		13,270		12,725		13,411		25,995		27,629
Total noninterest expense		124,939		123,560		122,086		248,499		250,899
Income before provision for income taxes		88,102		76,943		80,733		165,045		151,418
Provision for income taxes		14,855		17,695		18,812		32,550		35,277
Net income	$	73,247	$	59,248	$	61,921	$	132,495	$	116,141
Basic earnings per share	$	0.58	$	0.47	$	0.48	$	1.05	$	0.91
Diluted earnings per share	$	0.58	$	0.47	$	0.48	$	1.05	$	0.91
Basic weighted-average outstanding shares		125,321,837		126,281,802		127,867,853		125,799,060		127,787,663
Diluted weighted-average outstanding shares		125,833,064		127,166,932		128,262,594		126,493,569		128,279,917


Consolidated Balance Sheets	Table 3
	June 30,		March 31,		December 31,		June 30,
(dollars in thousands, except share amount)	2025		2025		2024		2024
Assets
Cash and due from banks	$	304,624	$	240,738	$	258,057	$	290,501
Interest-bearing deposits in other banks		1,094,411		1,073,841		912,133		824,258
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,097,906 as of June 30, 2025, $2,091,034 as of March 31, 2025, $2,190,448 as of December 31, 2024 and $2,379,004 as of June 30, 2024)		1,891,654		1,858,428		1,926,516		2,067,956
Held-to-maturity, at amortized cost (fair value: $3,230,698 as of June 30, 2025, $3,250,275 as of March 31, 2025, $3,262,509 as of December 31, 2024 and $3,401,006 as of June 30, 2024)		3,658,814		3,724,908		3,790,650		3,917,175
Loans held for sale		—		1,547		—		2,820
Loans and leases		14,351,869		14,293,036		14,408,258		14,359,899
Less: allowance for credit losses		167,825		166,612		160,393		160,517
Net loans and leases		14,184,044		14,126,424		14,247,865		14,199,382

Premises and equipment, net		299,149		292,576		288,530		283,762
Accrued interest receivable		77,943		78,973		79,979		82,512
Bank-owned life insurance		502,419		495,567		491,890		486,261
Goodwill		995,492		995,492		995,492		995,492
Mortgage servicing rights		4,828		4,926		5,078		5,395
Other assets		823,769		851,538		831,996		836,277
Total assets	$	23,837,147	$	23,744,958	$	23,828,186	$	23,991,791
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing	$	13,386,987	$	13,330,265	$	13,347,068	$	13,461,365
Noninterest-bearing		6,844,432		6,885,551		6,975,148		6,857,467
Total deposits		20,231,419		20,215,816		20,322,216		20,318,832
Short-term borrowings		250,000		250,000		250,000		500,000
Retirement benefits payable		95,357		96,241		97,135		101,304
Other liabilities		565,826		534,049		541,349		521,343
Total liabilities		21,142,602		21,096,106		21,210,700		21,441,479

Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 142,173,027 / 124,683,544 shares as of June 30, 2025, issued/outstanding: 142,139,353 / 125,692,598 shares as of March 31, 2025, issued/outstanding: 141,748,847 / 126,422,898 shares as of December 31, 2024 and issued/outstanding: 141,728,446 / 127,879,012 shares as of June 30, 2024)		1,422		1,421		1,417		1,417
Additional paid-in capital		2,567,936		2,564,408		2,560,380		2,554,795
Retained earnings		1,000,997		960,337		934,048		887,176
Accumulated other comprehensive loss, net		(407,008)		(433,769)		(463,994)		(519,132)
Treasury stock (17,489,483 shares as of June 30, 2025, 16,446,755 shares as of March 31, 2025, 15,325,949 shares as of December 31, 2024 and 13,849,434 shares as of June 30, 2024)		(468,802)		(443,545)		(414,365)		(373,944)
Total stockholders' equity		2,694,545		2,648,852		2,617,486		2,550,312
Total liabilities and stockholders' equity	$	23,837,147	$	23,744,958	$	23,828,186	$	23,991,791


Average Balances and Interest Rates																	Table 4
	Three Months Ended						Three Months Ended						Three Months Ended
	June 30, 2025						March 31, 2025						June 30, 2024
	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	$	1,276.8	$	14.1	4.45	%	$	1,171.1	$	12.8	4.44	%	$	773.4	$	10.5	5.45	%
Available-for-Sale Investment Securities
Taxable		1,869.3		12.5	2.67			1,891.4		13.2	2.79			2,100.7		14.1	2.69
Non-Taxable		1.3		—	5.27			1.4		—	5.52			1.5		—	5.76
Held-to-Maturity Investment Securities
Taxable		3,099.9		13.2	1.70			3,164.0		13.6	1.72			3,358.2		14.4	1.71
Non-Taxable		596.5		3.3	2.21			599.0		3.7	2.51			602.9		4.0	2.64
Total Investment Securities		5,567.0		29.0	2.08			5,655.8		30.5	2.16			6,063.3		32.5	2.15
Loans Held for Sale		0.3		—	6.86			0.3		—	6.28			1.0		—	6.58
Loans and Leases⁽¹⁾
Commercial and industrial		2,291.5		35.2	6.16			2,196.8		33.6	6.20			2,201.6		38.1	6.96
Commercial real estate		4,392.5		66.9	6.11			4,420.1		66.5	6.10			4,305.6		71.5	6.68
Construction		900.4		14.9	6.66			937.0		15.4	6.67			984.8		18.5	7.57
Residential:
Residential mortgage		4,104.1		40.2	3.92			4,150.3		40.9	3.94			4,229.4		40.1	3.80
Home equity line		1,154.4		13.4	4.64			1,149.8		13.1	4.61			1,164.2		12.6	4.35
Consumer		1,013.9		19.2	7.58			1,019.5		18.9	7.53			1,054.1		17.7	6.74
Lease financing		432.1		4.2	3.90			436.5		4.3	3.99			418.3		4.3	4.09
Total Loans and Leases		14,288.9		194.0	5.44			14,310.0		192.7	5.44			14,358.0		202.8	5.67
Other Earning Assets		34.6		0.4	4.94			32.0		0.4	5.48			52.0		0.7	5.25
Total Earning Assets⁽²⁾		21,167.6		237.5	4.50			21,169.2		236.4	4.51			21,247.7		246.5	4.66
Cash and Due from Banks		222.3						235.9						240.4
Other Assets		2,469.5						2,485.4						2,470.8
Total Assets	$	23,859.4					$	23,890.5					$	23,958.9

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	6,247.5	$	21.0	1.35	%	$	6,232.5	$	21.3	1.38	%	$	6,000.4	$	23.4	1.57	%
Money Market		3,822.1		22.8	2.39			3,922.2		23.0	2.38			4,076.7		30.6	3.02
Time		3,389.4		26.5	3.14			3,317.1		27.4	3.36			3,284.3		31.6	3.87
Total Interest-Bearing Deposits		13,459.0		70.3	2.09			13,471.8		71.7	2.16			13,361.4		85.6	2.58
Other Short-Term Borrowings		250.0		2.6	4.22			250.0		2.6	4.22			500.0		6.0	4.79
Other Interest-Bearing Liabilities		20.8		0.2	4.62			27.5		0.3	4.67			38.2		0.5	5.48
Total Interest-Bearing Liabilities		13,729.8		73.1	2.14			13,749.3		74.6	2.20			13,899.6		92.1	2.66
Net Interest Income			$	164.4					$	161.8					$	154.4
Interest Rate Spread⁽³⁾					2.36	%					2.31	%					2.00	%
Net Interest Margin⁽⁴⁾					3.11	%					3.08	%					2.92	%
Noninterest-Bearing Demand Deposits		6,821.0						6,882.2						6,946.6
Other Liabilities		644.7						617.0						600.2
Stockholders' Equity		2,663.9						2,642.0						2,512.5
Total Liabilities and Stockholders' Equity	$	23,859.4					$	23,890.5					$	23,958.9

(1)	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

(2)	Interest income includes taxable-equivalent basis adjustments of $0.8 million, $1.2 million and $1.5 million for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.

(3)	Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.

(4)	Net interest margin is net interest income annualized for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, on a fully taxable-equivalent basis, divided by average total earning assets.


Average Balances and Interest Rates											Table 5
	Six Months Ended						Six Months Ended
	June 30, 2025						June 30, 2024
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	1,224.3	$	27.0	4.44	%	$	815.9	$	22.1	5.45	%
Available-for-Sale Investment Securities
Taxable		1,880.3		25.6	2.73			2,155.7		28.7	2.66
Non-Taxable		1.3		—	5.38			1.6		—	5.68
Held-to-Maturity Investment Securities
Taxable		3,131.8		26.8	1.71			3,387.3		29.0	1.71
Non-Taxable		597.7		7.0	2.36			603.2		7.9	2.65
Total Investment Securities		5,611.1		59.4	2.12			6,147.8		65.6	2.14
Loans Held for Sale		0.3		—	6.54			0.9		—	6.72
Loans and Leases⁽¹⁾
Commercial and industrial		2,244.4		68.8	6.18			2,183.3		75.3	6.94
Commercial real estate		4,406.3		133.3	6.10			4,314.6		141.7	6.60
Construction		918.6		30.4	6.67			954.8		35.9	7.56
Residential:
Residential mortgage		4,127.1		81.2	3.93			4,246.7		82.1	3.87
Home equity line		1,152.1		26.4	4.62			1,168.1		24.7	4.24
Consumer		1,016.6		38.1	7.56			1,068.8		35.7	6.72
Lease financing		434.3		8.5	3.95			399.0		8.0	4.00
Total Loans and Leases		14,299.4		386.7	5.44			14,335.3		403.4	5.65
Other Earning Assets		33.3		0.8	5.20			64.9		1.8	5.64
Total Earning Assets⁽²⁾		21,168.4		473.9	4.50			21,364.8		492.9	4.63
Cash and Due from Banks		229.0						242.4
Other Assets		2,477.4						2,465.9
Total Assets	$	23,874.8					$	24,073.1

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	6,240.1	$	42.2	1.36	%	$	6,030.1	$	46.9	1.56	%
Money Market		3,871.8		45.8	2.38			4,010.8		59.4	2.98
Time		3,353.5		54.0	3.25			3,304.8		63.5	3.86
Total Interest-Bearing Deposits		13,465.4		142.0	2.13			13,345.7		169.8	2.56
Other Short-Term Borrowings		250.0		5.2	4.22			500.0		11.9	4.79
Other Interest-Bearing Liabilities		24.1		0.6	4.65			35.6		0.9	5.36
Total Interest-Bearing Liabilities		13,739.5		147.8	2.17			13,881.3		182.6	2.65
Net Interest Income			$	326.1					$	310.3
Interest Rate Spread⁽³⁾					2.33	%					1.98	%
Net Interest Margin⁽⁴⁾					3.10	%					2.91	%
Noninterest-Bearing Demand Deposits		6,851.4						7,094.3
Other Liabilities		630.9						592.8
Stockholders' Equity		2,653.0						2,504.7
Total Liabilities and Stockholders' Equity	$	23,874.8					$	24,073.1

(1)	Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

(2)	Interest income includes taxable-equivalent basis adjustments of $2.0 million and $3.0 million for the six months ended June 30, 2025 and 2024, respectively.

(3)	Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.

(4)	Net interest margin is net interest income annualized for the six months ended June 30, 2025 and 2024, on a fully taxable-equivalent basis, divided by average total earning assets.


Analysis of Change in Net Interest Income						Table 6
	Three Months Ended June 30, 2025
	Compared to March 31, 2025
(dollars in millions)	Volume		Rate		Total⁽¹⁾
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	1.3	$	—	$	1.3
Available-for-Sale Investment Securities
Taxable		(0.1)		(0.6)		(0.7)
Held-to-Maturity Investment Securities
Taxable		(0.2)		(0.2)		(0.4)
Non-Taxable		—		(0.4)		(0.4)
Total Investment Securities		(0.3)		(1.2)		(1.5)
Loans and Leases
Commercial and industrial		1.8		(0.2)		1.6
Commercial real estate		0.1		0.3		0.4
Construction		(0.5)		—		(0.5)
Residential:
Residential mortgage		(0.5)		(0.2)		(0.7)
Home equity line		0.1		0.2		0.3
Consumer		—		0.3		0.3
Lease financing		—		(0.1)		(0.1)
Total Loans and Leases		1.0		0.3		1.3
Total Change in Interest Income		2.0		(0.9)		1.1

Change in Interest Expense:
Interest-Bearing Deposits
Savings		0.1		(0.4)		(0.3)
Money Market		(0.4)		0.2		(0.2)
Time		0.7		(1.6)		(0.9)
Total Interest-Bearing Deposits		0.4		(1.8)		(1.4)
Other Interest-Bearing Liabilities		(0.1)		—		(0.1)
Total Change in Interest Expense		0.3		(1.8)		(1.5)
Change in Net Interest Income	$	1.7	$	0.9	$	2.6

(1)	The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.


Analysis of Change in Net Interest Income						Table 7
	Three Months Ended June 30, 2025
	Compared to June 30, 2024
(dollars in millions)	Volume		Rate		Total ⁽¹⁾
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	5.8	$	(2.2)	$	3.6
Available-for-Sale Investment Securities
Taxable		(1.5)		(0.1)		(1.6)
Held-to-Maturity Investment Securities
Taxable		(1.1)		(0.1)		(1.2)
Non-Taxable		(0.1)		(0.6)		(0.7)
Total Investment Securities		(2.7)		(0.8)		(3.5)
Loans and Leases
Commercial and industrial		1.6		(4.5)		(2.9)
Commercial real estate		1.5		(6.1)		(4.6)
Construction		(1.5)		(2.1)		(3.6)
Residential:
Residential mortgage		(1.2)		1.3		0.1
Home equity line		(0.1)		0.9		0.8
Consumer		(0.7)		2.2		1.5
Lease financing		0.1		(0.2)		(0.1)
Total Loans and Leases		(0.3)		(8.5)		(8.8)
Other Earning Assets		(0.2)		(0.1)		(0.3)
Total Change in Interest Income		2.6		(11.6)		(9.0)

Change in Interest Expense:
Interest-Bearing Deposits
Savings		1.0		(3.4)		(2.4)
Money Market		(1.8)		(6.0)		(7.8)
Time		1.0		(6.1)		(5.1)
Total Interest-Bearing Deposits		0.2		(15.5)		(15.3)
Other Short-Term Borrowings		(2.8)		(0.6)		(3.4)
Other Interest-Bearing Liabilities		(0.2)		(0.1)		(0.3)
Total Change in Interest Expense		(2.8)		(16.2)		(19.0)
Change in Net Interest Income	$	5.4	$	4.6	$	10.0

(1)	The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.


Analysis of Change in Net Interest Income						Table 8
	Six Months Ended June 30, 2025
	Compared to June 30, 2024
(dollars in millions)	Volume		Rate		Total ⁽¹⁾
Change in Interest Income:
Interest-Bearing Deposits in Other Banks	$	9.5	$	(4.6)	$	4.9
Available-for-Sale Investment Securities
Taxable		(3.8)		0.7		(3.1)
Held-to-Maturity Investment Securities
Taxable		(2.2)		—		(2.2)
Non-Taxable		(0.1)		(0.8)		(0.9)
Total Investment Securities		(6.1)		(0.1)		(6.2)
Loans and Leases
Commercial and industrial		2.0		(8.5)		(6.5)
Commercial real estate		2.8		(11.2)		(8.4)
Construction		(1.3)		(4.2)		(5.5)
Residential:
Residential mortgage		(2.2)		1.3		(0.9)
Home equity line		(0.3)		2.0		1.7
Consumer		(1.8)		4.2		2.4
Lease financing		0.6		(0.1)		0.5
Total Loans and Leases		(0.2)		(16.5)		(16.7)
Other Earning Assets		(0.8)		(0.2)		(1.0)
Total Change in Interest Income		2.4		(21.4)		(19.0)

Change in Interest Expense:
Interest-Bearing Deposits
Savings		1.5		(6.2)		(4.7)
Money Market		(2.0)		(11.6)		(13.6)
Time		0.9		(10.4)		(9.5)
Total Interest-Bearing Deposits		0.4		(28.2)		(27.8)
Other Short-Term Borrowings		(5.4)		(1.3)		(6.7)
Other Interest-Bearing Liabilities		(0.2)		(0.1)		(0.3)
Total Change in Interest Expense		(5.2)		(29.6)		(34.8)
Change in Net Interest Income	$	7.6	$	8.2	$	15.8

(1)	The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.


Loans and Leases								Table 9
	June 30,		March 31,		December 31,		June 30,
(dollars in thousands)	2025		2025		2024		2024
Commercial and industrial	$	2,370,210	$	2,261,394	$	2,247,428	$	2,208,690
Commercial real estate		4,411,585		4,367,433		4,463,992		4,305,017
Construction		884,306		954,072		918,326		1,017,649
Residential:
Residential mortgage		4,085,827		4,129,518		4,168,154		4,216,416
Home equity line		1,161,876		1,144,895		1,151,739		1,159,833
Total residential		5,247,703		5,274,413		5,319,893		5,376,249
Consumer		1,011,125		998,325		1,023,969		1,027,104
Lease financing		426,940		437,399		434,650		425,190
Total loans and leases	$	14,351,869	$	14,293,036	$	14,408,258	$	14,359,899


Deposits								Table 10
	June 30,		March 31,		December 31,		June 30,
(dollars in thousands)	2025		2025		2024		2024
Demand	$	6,844,432	$	6,885,551	$	6,975,148	$	6,857,467
Savings		6,219,801		6,110,796		6,021,364		6,055,051
Money Market		3,777,681		3,865,203		4,027,334		4,111,609
Time		3,389,505		3,354,266		3,298,370		3,294,705
Total Deposits	$	20,231,419	$	20,215,816	$	20,322,216	$	20,318,832


Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More								Table 11
	June 30,		March 31,		December 31,		June 30,
(dollars in thousands)	2025		2025		2024		2024
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial	$	1,184	$	—	$	329	$	1,084
Commercial real estate		3,185		216		411		3,085
Construction		904		375		—		447
Total Commercial Loans		5,273		591		740		4,616
Residential Loans:
Residential mortgage		15,032		12,809		12,768		7,273
Home equity line		8,286		6,788		7,171		6,124
Total Residential Loans		23,318		19,597		19,939		13,397
Total Non-Accrual Loans and Leases		28,591		20,188		20,679		18,013
Total Non-Performing Assets	$	28,591	$	20,188	$	20,679	$	18,013

Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial	$	942	$	740	$	1,432	$	110
Construction		—		—		536		—
Total Commercial Loans		942		740		1,968		110
Residential mortgage		309		1,008		1,317		1,820
Consumer		3,187		2,554		2,734		1,835
Total Accruing Loans and Leases Past Due 90 Days or More	$	4,438	$	4,302	$	6,019	$	3,765

Total Loans and Leases	$	14,351,869	$	14,293,036	$	14,408,258	$	14,359,899


Allowance for Credit Losses and Reserve for Unfunded Commitments	Table 12
	For the Three Months Ended									For the Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
(dollars in thousands)	2025			2025			2024			2025			2024
Balance at Beginning of Period	$	199,959		$	193,240		$	194,649		$	193,240		$	192,138
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial		(688)			(1,459)			(677)			(2,147)			(1,586)
Lease financing		(82)			—			—			(82)			—
Total Commercial Loans		(770)			(1,459)			(677)			(2,229)			(1,586)
Home equity line		(16)			(14)			—			(30)			—
Consumer		(4,543)			(5,025)			(4,182)			(9,568)			(9,036)
Total Loans and Leases Charged-Off		(5,329)			(6,498)			(4,859)			(11,827)			(10,622)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial		196			403			250			599			461
Commercial real estate		—			251			—			251			—
Total Commercial Loans		196			654			250			850			461
Residential Loans:
Residential mortgage		109			20			28			129			58
Home equity line		32			64			112			96			156
Total Residential Loans		141			84			140			225			214
Consumer		1,705			1,979			1,950			3,684			3,639
Total Recoveries on Loans and Leases Previously Charged-Off		2,042			2,717			2,340			4,759			4,314
Net Loans and Leases Charged-Off		(3,287)			(3,781)			(2,519)			(7,068)			(6,308)
Provision for Credit Losses		4,500			10,500			1,800			15,000			8,100
Balance at End of Period	$	201,172		$	199,959		$	193,930		$	201,172		$	193,930
Components:
Allowance for Credit Losses	$	167,825		$	166,612		$	160,517		$	167,825		$	160,517
Reserve for Unfunded Commitments		33,347			33,347			33,413			33,347			33,413
Total Allowance for Credit Losses and Reserve for Unfunded Commitments	$	201,172		$	199,959		$	193,930		$	201,172		$	193,930
Average Loans and Leases Outstanding	$	14,288,918		$	14,309,998		$	14,358,049		$	14,299,400		$	14,335,306
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding⁽¹⁾		0.09	%		0.11	%		0.07	%		0.10	%		0.09	%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding		1.17	%		1.17	%		1.12	%		1.17	%		1.12	%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases		5.87x			8.25x			8.91x			5.87x			8.91x

(1)	Annualized for the three and six months ended June 30, 2025 and 2024 and three months ended March 31, 2025.

Loans and Leases by Year of Origination and Credit Quality Indicator

Table 13

Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

Amortized

(dollars in thousands)

2025

2024

2023

2022

2021

Prior

Cost Basis

Total

Commercial Lending

Commercial and Industrial

Risk rating:

Pass

75,108

143,460

64,613

158,143

194,932

239,648

1,282,369

21,144

2,179,417

Special Mention

407

874

2,114

1,589

123

21,393

24,455

—

50,955

Substandard

537

—

10,554

1,193

42,079

—

54,402

Other ⁽¹⁾

11,171

11,347

6,926

5,216

1,851

1,583

47,342

—

85,436

Total Commercial and Industrial

87,223

155,681

73,653

175,502

196,945

263,817

1,396,245

21,144

2,370,210

Current period gross charge-offs

202

356

1,420

—

2,147

Commercial Real Estate

Risk rating:

Pass

169,890

290,636

374,749

795,676

655,689

1,822,004

101,260

7,588

4,217,492

Special Mention

—

3,336

1,682

7,455

41,396

54,805

11,003

—

119,677

Substandard

—

5,613

540

57,437

1,005

9,193

500

—

74,288

Other ⁽¹⁾

—

128

—

128

Total Commercial Real Estate

169,890

299,585

376,971

860,568

698,090

1,886,130

112,763

7,588

4,411,585

Current period gross charge-offs

—

Construction

Risk rating:

Pass

10,471

141,948

207,877

285,083

134,469

49,647

21,163

—

850,658

Special Mention

—

138

—

138

Substandard

—

904

—

904

Other ⁽¹⁾

2,557

14,216

6,299

5,200

1,486

2,153

695

—

32,606

Total Construction

13,028

156,164

214,176

290,283

135,955

52,842

21,858

—

884,306

Current period gross charge-offs

—

Lease Financing

Risk rating:

Pass

75,371

87,087

96,362

52,286

12,405

96,879

—

420,390

Special Mention

—

209

—

169

—

378

Substandard

—

5,418

488

266

—

6,172

Total Lease Financing

75,371

92,505

97,059

52,552

12,574

96,879

—

426,940

Current period gross charge-offs

—

Total Commercial Lending

345,512

703,935

761,859

1,378,905

1,043,564

2,299,668

1,530,866

28,732

8,093,041

Current period gross charge-offs

202

356

1,502

—

2,229

(continued)


															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
(continued)													Amortized		Amortized
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		Cost Basis		Cost Basis		Total
Residential Lending
Residential Mortgage
FICO:
740 and greater	$	75,024	$	152,336	$	184,091	$	466,879	$	889,999	$	1,539,891	$	—	$	—	$	3,308,220
680 - 739		7,541		20,371		27,773		80,105		119,482		192,183		—		—		447,455
620 - 679		4,787		1,274		5,446		8,256		25,983		37,856		—		—		83,602
550 - 619		—		1,508		444		7,226		6,840		26,115		—		—		42,133
Less than 550		—		156		1,439		1,547		3,123		7,033		—		—		13,298
No Score ⁽³⁾		1,471		9,893		6,036		16,659		9,758		47,459		—		—		91,276
Other ⁽²⁾		11,078		7,868		11,820		16,274		13,972		35,769		3,062		—		99,843
Total Residential Mortgage		99,901		193,406		237,049		596,946		1,069,157		1,886,306		3,062		—		4,085,827
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		926,318		1,275		927,593
680 - 739		—		—		—		—		—		—		173,339		1,656		174,995
620 - 679		—		—		—		—		—		—		34,428		579		35,007
550 - 619		—		—		—		—		—		—		14,006		552		14,558
Less than 550		—		—		—		—		—		—		8,129		395		8,524
No Score ⁽³⁾		—		—		—		—		—		—		1,199		—		1,199
Total Home Equity Line		—		—		—		—		—		—		1,157,419		4,457		1,161,876
Current period gross charge-offs		—		—		—		—		—		—		30		—		30

Total Residential Lending	$	99,901	$	193,406	$	237,049	$	596,946	$	1,069,157	$	1,886,306	$	1,160,481	$	4,457	$	5,247,703
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	30	$	—	$	30

Consumer Lending
FICO:
740 and greater		61,761		75,352		53,350		65,835		31,177		10,411		95,804		96		393,786
680 - 739		41,443		60,382		35,296		33,253		15,631		6,463		84,324		568		277,360
620 - 679		20,622		26,812		14,646		15,734		7,570		4,810		50,024		817		141,035
550 - 619		2,805		9,190		7,165		8,375		4,849		3,479		16,574		888		53,325
Less than 550		664		3,896		4,177		4,758		2,669		2,281		5,594		545		24,584
No Score ⁽³⁾		545		232		58		21		—		13		38,412		186		39,467
Other ⁽²⁾		229		—		601		240		583		1,032		78,883		—		81,568
Total Consumer Lending	$	128,069	$	175,864	$	115,293	$	128,216	$	62,479	$	28,489	$	369,615	$	3,100	$	1,011,125
Current period gross charge-offs	$	35	$	1,282	$	998	$	986	$	506	$	1,299	$	3,966	$	496	$	9,568

Total Loans and Leases	$	573,482	$	1,073,205	$	1,114,201	$	2,104,067	$	2,175,200	$	4,214,463	$	3,060,962	$	36,289	$	14,351,869
Current period gross charge-offs	$	36	$	1,325	$	1,093	$	1,188	$	862	$	2,801	$	4,026	$	496	$	11,827

(1)	Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score (680 and above). As of June 30, 2025, the majority of the loans in this population were current.

(2)	Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. As of June 30, 2025, the majority of the loans in this population were current.

(3)	No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.


GAAP to Non-GAAP Reconciliation	Table 14
	For the Three Months Ended									For the Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands)	2025			2025			2024			2025			2024
Income Statement Data:
Net income	$	73,247		$	59,248		$	61,921		$	132,495		$	116,141

Average total stockholders' equity	$	2,663,850		$	2,641,978		$	2,512,471		$	2,652,975		$	2,504,656
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible stockholders' equity	$	1,668,358		$	1,646,486		$	1,516,979		$	1,657,483		$	1,509,164

Average total assets	$	23,859,410		$	23,890,459		$	23,958,913		$	23,874,849		$	24,073,060
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible assets	$	22,863,918		$	22,894,967		$	22,963,421		$	22,879,357		$	23,077,568

Return on average total stockholders' equity⁽¹⁾		11.03	%		9.09	%		9.91	%		10.07	%		9.32	%
Return on average tangible stockholders' equity (non-GAAP)⁽¹⁾		17.61	%		14.59	%		16.42	%		16.12	%		15.48	%

Return on average total assets⁽¹⁾		1.23	%		1.01	%		1.04	%		1.12	%		0.97	%
Return on average tangible assets (non-GAAP)⁽¹⁾		1.28	%		1.05	%		1.08	%		1.17	%		1.01	%



	As of			As of			As of			As of
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands, except per share amounts)	2025			2025			2024			2024
Balance Sheet Data:
Total stockholders' equity	$	2,694,545		$	2,648,852		$	2,617,486		$	2,550,312
Less: goodwill		995,492			995,492			995,492			995,492
Tangible stockholders' equity	$	1,699,053		$	1,653,360		$	1,621,994		$	1,554,820

Total assets	$	23,837,147		$	23,744,958		$	23,828,186		$	23,991,791
Less: goodwill		995,492			995,492			995,492			995,492
Tangible assets	$	22,841,655		$	22,749,466		$	22,832,694		$	22,996,299

Shares outstanding		124,683,544			125,692,598			126,422,898			127,879,012

Total stockholders' equity to total assets		11.30	%		11.16	%		10.98	%		10.63	%
Tangible stockholders' equity to tangible assets (non-GAAP)		7.44	%		7.27	%		7.10	%		6.76	%

Book value per share	$	21.61		$	21.07		$	20.70		$	19.94
Tangible book value per share (non-GAAP)	$	13.63		$	13.15		$	12.83		$	12.16

(1)	Annualized for the three and six months ended June 30, 2025 and 2024 and three months ended March 31, 2025.