CORRECTION – First Hawaiian, Inc. Reports Fourth Quarter 2019 Financial Results and Declares Dividend

• Net income of $67.8 million, or $0.52 per diluted share, core net income¹ of $71.3 million or $0.54 per diluted share¹
• Board of Directors declared a quarterly dividend of $0.26 per share

HONOLULU, Jan. 29, 2020 (GLOBE NEWSWIRE) -- In a release issued under the same headline yesterday by First Hawaiian, Inc. (NASDAQ:FHB), please note that in the third paragraph of the release, the record date for its next quarterly dividend should be February 24, 2020, not February 28, 2020 as previously stated. The corrected release follows:

First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended December 31, 2019.

“I’m pleased to report that we ended 2019 with a strong fourth quarter.  We generated great loan growth, significantly reduced deposit costs, and maintained excellent credit quality,” said Bob Harrison, Chairman, President and Chief Executive Officer.  “This was a good finish to an exciting year, and we are well positioned going into 2020.”

On January 22, 2020 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share.  The dividend will be payable on March 6, 2020 to stockholders of record at the close of business on February 24, 2020.

Fourth Quarter 2019 Highlights:

• Profitability measures were excellent with Return on Assets of 1.34%, core Return on Average Tangible Assets^1,2 of 1.48%, Return on Equity of 10.21%, and core Return on Average Tangible Common Equity^1,2 of 17.22%;
• Grew loans and leases by $368 million, or 2.9%;
• Cost of deposits fell 10 basis points to 44 basis points;
• Reported efficiency ratio was 48.9% and core efficiency ratio¹ was 47.7%;
• Continued excellent credit quality.  The ratio of non-performing assets to total loans and leases and other real estate owned was 0.04% at the end of the fourth quarter.

Balance Sheet
Total assets were $20.2 billion as of December 31, 2019, compared to $20.6 billion as of September 30, 2019.

Gross loans and leases were $13.2 billion as of December 31, 2019, an increase of $368 million, or 2.9%, from $12.8 billion as of September 30, 2019. 

Total deposits were $16.4 billion as of December 31, 2019, a decrease of $412 million, or 2.4%, from $16.9 billion as of September 30, 2019, primarily reflecting the withdrawal of a $400 million commercial deposit that was deposited at the end of the third quarter and withdrawn early in the fourth quarter, and a $266 million reduction in public deposits.

Net Interest Income
Net interest income for the fourth quarter of 2019 was $139.6 million, a decrease of $3.5 million, or 2.4%, compared to $143.1 million for the prior quarter.  The decrease in net interest income compared to the third quarter of 2019 was primarily due to lower yields on loans and lower investment and loan balances, partially offset by lower deposit rates and balances.  Average loan balances in the fourth quarter were lower than the prior quarter as a result of the sale of $409 million of shared national credits in the third quarter.

Net interest margin (“NIM”) was 3.15% in the fourth quarter of 2019, a decrease of four basis points compared to 3.19% in the third quarter of 2019.  

Provision Expense
Results for the quarter ended December 31, 2019 included a provision for credit losses of $4.3 million.  No provision for credit losses was taken in the quarter ended September 30, 2019.    

Noninterest Income
Noninterest income was $46.7 million in the fourth quarter of 2019, a decrease of $3.3 million compared to noninterest income of $50.0 million in the third quarter of 2019.     

Noninterest Expense
Noninterest expense was $91.1 million in the fourth quarter of 2019, a decrease of $2.4 million from $93.5 million in the third quarter of 2019. 

The efficiency ratio was 48.9% and 48.4% for the quarters ended December 31, 2019 and September 30, 2019, respectively.

Taxes
The effective tax rate was 25.5% for both the quarters ended December 31, 2019 and September 30, 2019.

Asset Quality
The allowance for loan and lease losses was $130.5 million, or 0.99% of total loans and leases, as of December 31, 2019, compared to $133.0 million, or 1.04% of total loans and leases, as of September 30, 2019.  Net charge-offs were $6.7 million, or 0.20% of average loans and leases on an annualized basis for the quarter ended December 31, 2019, compared to $5.6 million, or 0.17% of average loans and leases on an annualized basis for the quarter ended September 30, 2019.  Total non-performing assets were $5.8 million, or 0.04% of total loans and leases and other real estate owned, at December 31, 2019, compared to non-performing assets of $4.3 million, or 0.03% of total loans and leases and other real estate owned, at September 30, 2019. 

Capital
Total stockholders' equity was $2.6 billion at December 31, 2019, compared to $2.7 billion at September 30, 2019.   

The tier 1 leverage, common equity tier 1 and total capital ratios were 8.79%, 11.88% and 12.81%, respectively, at December 31, 2019, compared with 8.68%, 12.15% and 13.11%, respectively, at September 30, 2019.

The Company repurchased 1.3 million shares of common stock at a total cost of $37.4 million under the stock repurchase program in the fourth quarter. The average cost was $27.92 per share repurchased.  For the full year 2019, the Company repurchased 5.1 million shares at a total cost of $136.2 million. 

The Company’s Board of Directors approved a stock repurchase program for up to $80 million of its outstanding common stock during 2020.

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

Conference Call Information
First Hawaiian will host a conference call to discuss the Company’s results today at 5:00 p.m. Eastern Time, 12:00 p.m. Hawaii Time.  To access the call, participants should dial [phone] (US/Canada), or [phone] (International) ten minutes prior to the start of the call and enter the conference ID:  7588548.  A live webcast of the conference call, including a slide presentation, will be available at the following link:  www.fhb.com/earnings.  The archive of the webcast will be available at the same location.  A telephonic replay of the conference call will be available two hours after the conclusion of the call until 8:30 p.m. (Eastern Time) on February 4, 2020.  Access the replay by dialing [phone] or [phone] and entering the conference ID:  7588548.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance.  These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature.  These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control.  Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict.  Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.  For a discussion of some of the risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2018 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2019.

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

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

Return on average tangible stockholders’ equity, core return on average tangible stockholders’ equity, return on average tangible assets, core return on average tangible assets and tangible stockholders’ equity to tangible assets are non-GAAP financial measures.  We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity.  We compute our core return on average tangible stockholders’ equity as the ratio of core net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity.  We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets.  We compute our core return on average tangible assets as the ratio of core net income to average tangible assets. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions.  Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP.

Tables 13 and 14 at the end of this document provide a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.

Investor Relations Contact: Kevin Haseyama, CFA [phone] [e-mail]	Media Contact: Susan Kam [phone] [e-mail]

_{¹ Core measurements are non-GAAP financial measures.  Core excludes certain gains, expenses and one-time items.  See Tables 13 and 14 at the end of this document for reconciliations of core measurements, including core net income, core noninterest income, core efficiency ratio and core earnings per diluted share to the comparable GAAP measurements.}

_{² Return on Average Tangible Assets (“ROATA”) and Return on Average Tangible Common Equity (“ROATCE”) are non-GAAP financial measures.  A reconciliation of average tangible assets and average tangible stockholders’ equity to the comparable GAAP measurements is provided in Table 13 at the end of this document.}

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)		2019			2019			2018			2019			2018
Operating Results:
Net interest income		$	139,619		$	143,081		$	143,985		$	573,402		$	566,318
Provision for loan and lease losses			4,250			—			5,750			13,800			22,180
Noninterest income			46,708			49,980			33,091			192,533			178,993
Noninterest expense			91,058			93,466			89,354			370,437			364,953
Net income			67,836			74,199			59,995			284,392			264,394
Basic earnings per share			0.52			0.56			0.44			2.14			1.93
Diluted earnings per share			0.52			0.56			0.44			2.13			1.93
Dividends declared per share			0.26			0.26			0.24			1.04			0.96
Dividend payout ratio			50.00	%		46.43	%		54.55	%		48.83	%		49.74	%
Supplemental Income Statement Data (non-GAAP):
Core net interest income		$	139,619		$	143,081		$	143,985		$	573,402		$	566,318
Core noninterest income			51,331			49,980			57,176			199,748			203,078
Core noninterest expense			91,010			91,222			88,919			367,623			358,561
Core net income			71,250			75,871			77,914			291,785			286,711
Core basic earnings per share			0.55			0.57			0.58			2.19			2.09
Core diluted earnings per share			0.54			0.57			0.58			2.19			2.09
Performance Ratio(1):
Net interest margin			3.15	%		3.19	%		3.23	%		3.20	%		3.16	%
Core net interest margin (non-GAAP)			3.15	%		3.19	%		3.23	%		3.20	%		3.16	%
Efficiency ratio			48.86	%		48.41	%		50.45	%		48.36	%		48.96	%
Core efficiency ratio (non-GAAP)			47.65	%		47.25	%		44.19	%		47.55	%		46.59	%
Return on average total assets			1.34	%		1.45	%		1.19	%		1.40	%		1.31	%
Core return on average total assets (non-GAAP)			1.41	%		1.48	%		1.54	%		1.44	%		1.42	%
Return on average tangible assets (non-GAAP)			1.41	%		1.52	%		1.25	%		1.47	%		1.37	%
Core return on average tangible assets (non-GAAP)(2)			1.48	%		1.56	%		1.62	%		1.51	%		1.49	%
Return on average total stockholders' equity			10.21	%		11.12	%		9.77	%		10.90	%		10.76	%
Core return on average total stockholders' equity (non-GAAP)			10.72	%		11.37	%		12.68	%		11.18	%		11.67	%
Return on average tangible stockholders' equity (non-GAAP)			16.40	%		17.81	%		16.51	%		17.62	%		18.08	%
Core return on average tangible stockholders’ equity (non-GAAP)			17.22	%		18.21	%		21.44	%		18.08	%		19.61	%
Average Balances:
Average loans and leases		$	12,940,956		$	13,032,349		$	12,829,635		$	13,063,716		$	12,570,182
Average earning assets			17,649,343			17,862,564			17,701,301			17,892,440			17,911,545
Average assets			20,089,601			20,332,457			20,069,988			20,325,697			20,247,135
Average deposits			16,355,254			16,573,796			16,608,611			16,613,379			17,115,380
Average stockholders' equity			2,636,651			2,648,428			2,437,504			2,609,432			2,457,771
Market Value Per Share:
Closing			28.85			26.70			22.51			28.85			22.51
High			29.47			27.84			27.49			29.47			32.36
Low			25.48			24.25			21.19			22.13			21.19

	As of			As of			As of
	December 31,			September 30,			December 31,
	2019			2019			2018
Balance Sheet Data:
Loans and leases	$	13,211,650		$	12,843,396		$	13,076,191
Total assets		20,166,734			20,598,220			20,695,678
Total deposits		16,444,994			16,857,246			17,150,068
Short-term borrowings		400,000			400,000			—
Long-term borrowings		200,019			200,018			600,026
Total stockholders' equity		2,640,258			2,654,558			2,524,839
Per Share of Common Stock:
Book value	$	20.32		$	20.22		$	18.72
Tangible book value (non-GAAP)(4)		12.66			12.64			11.34
Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases		0.04	%		0.03	%		0.05	%
Allowance for loan and lease losses / total loans and leases		0.99	%		1.04	%		1.08	%
Capital Ratios:
Common Equity Tier 1 Capital Ratio		11.88	%		12.15			11.97
Tier 1 Capital Ratio		11.88	%		12.15			11.97
Total Capital Ratio		12.81	%		13.11			12.99
Tier 1 Leverage Ratio		8.79	%		8.68			8.72
Total stockholders' equity to total assets		13.09	%		12.89	%		12.20	%
Tangible stockholders' equity to tangible assets (non-GAAP)		8.58	%		8.46	%		7.76	%
Non-Financial Data:
Number of branches		58			58			60
Number of ATMs		301			293			295
Number of Full-Time Equivalent Employees		2,092			2,099			2,155

⁽¹⁾ Except for the efficiency ratio and the core efficiency ratio, amounts are annualized for the three months ended December 31, 2019, September 30, 2019 and December 31, 2018.
⁽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 13, 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 13, 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 13, GAAP to Non-GAAP Reconciliation.

Consolidated Statements of Income		Table 2
		Three Months Ended											For the Year Ended
		December 31,				September 30,			December 31,				December 31,
(dollars in thousands, except per share amounts)		2019				2019			2018				2019				2018
Interest income
Loans and lease financing		$	138,033			$	144,691		$	140,649			$	574,013			$	529,877
Available-for-sale securities			20,979				22,256			25,537				92,505				107,123
Other			3,120				3,234			1,858				12,174				9,051
Total interest income			162,132				170,181			168,044				678,692				646,051
Interest expense
Deposits			18,222				22,753			20,152				87,865				72,976
Short-term and long-term borrowings			4,291				4,347			3,907				17,425				6,757
Total interest expense			22,513				27,100			24,059				105,290				79,733
Net interest income			139,619				143,081			143,985				573,402				566,318
Provision for loan and lease losses			4,250				—			5,750				13,800				22,180
Net interest income after provision for loan and lease losses			135,369				143,081			138,235				559,602				544,138
Noninterest income
Service charges on deposit accounts			9,041				8,554			8,427				33,778				32,036
Credit and debit card fees			16,626				16,839			16,755				66,749				65,716
Other service charges and fees			8,818				8,903			9,763				36,253				38,316
Trust and investment services income			8,855				8,698			7,895				35,102				31,324
Bank-owned life insurance			2,533				5,743			1,086				15,479				9,217
Investment securities losses, net			(123	)			—			—				(2,715	)			—
Other-than-temporary impairment (OTTI) losses on available-for-sale debt securities			—				—			(24,085	)			—				(24,085	)
Other			958				1,243			13,250				7,887				26,469
Total noninterest income			46,708				49,980			33,091				192,533				178,993
Noninterest expense
Salaries and employee benefits			41,098				44,955			41,407				173,098				167,162
Contracted services and professional fees			13,724				14,649			13,005				56,321				49,775
Occupancy			7,231				7,250			7,181				28,753				27,330
Equipment			4,491				4,024			4,610				17,343				17,714
Regulatory assessment and fees			1,802				1,992			2,053				7,390				14,217
Advertising and marketing			1,317				1,647			1,687				6,910				4,813
Card rewards program			8,635				6,930			6,978				29,961				24,860
Other			12,760				12,019			12,433				50,661				59,082
Total noninterest expense			91,058				93,466			89,354				370,437				364,953
Income before provision for income taxes			91,019				99,595			81,972				381,698				358,178
Provision for income taxes			23,183				25,396			21,977				97,306				93,784
Net income		$	67,836			$	74,199		$	59,995			$	284,392			$	264,394
Basic earnings per share		$	0.52			$	0.56		$	0.44			$	2.14			$	1.93
Diluted earnings per share		$	0.52			$	0.56		$	0.44			$	2.13			$	1.93
Basic weighted-average outstanding shares			130,463,102				132,583,902			134,874,277				133,076,489				136,945,134
Diluted weighted-average outstanding shares			130,845,645				132,877,769			135,100,162				133,387,157				137,111,420

Consolidated Balance Sheets		Table 3
		December 31,				September 30,				December 31,
(dollars in thousands)		2019				2019				2018
Assets
Cash and due from banks		$	360,375			$	358,863			$	396,836
Interest-bearing deposits in other banks			333,642				985,154				606,801
Investment securities			4,075,644				4,157,082				4,498,342
Loans held for sale			904				1,594				432
Loans and leases			13,211,650				12,843,396				13,076,191
Less: allowance for loan and lease losses			130,530				132,964				141,718
Net loans and leases			13,081,120				12,710,432				12,934,473
Premises and equipment, net			316,885				315,309				304,996
Other real estate owned and repossessed personal property			319				82				751
Accrued interest receivable			45,239				44,671				48,920
Bank-owned life insurance			453,873				453,410				446,076
Goodwill			995,492				995,492				995,492
Mortgage servicing rights			12,668				13,630				16,155
Other assets			490,573				562,501				446,404
Total assets		$	20,166,734			$	20,598,220			$	20,695,678
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing		$	10,564,922			$	11,136,424			$	11,142,127
Noninterest-bearing			5,880,072				5,720,822				6,007,941
Total deposits			16,444,994				16,857,246				17,150,068
Short-term borrowings			400,000				400,000				—
Long-term borrowings			200,019				200,018				600,026
Retirement benefits payable			138,222				128,442				127,909
Other liabilities			343,241				357,956				292,836
Total liabilities			17,526,476				17,943,662				18,170,839
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 139,917,150 / 129,928,479 shares as of December 31, 2019, issued/outstanding: 139,908,699 / 131,260,900 shares as of September 30, 2019 and issued/outstanding: 139,656,674 / 134,874,302 shares as of December 31, 2018)			1,399				1,399				1,397
Additional paid-in capital			2,503,677				2,501,324				2,495,853
Retained earnings			437,072				403,317				291,919
Accumulated other comprehensive loss, net			(31,749	)			(18,774	)			(132,195	)
Treasury stock (9,988,671 shares as of December 31, 2019, 8,647,799 shares as of September 30, 2019 and 4,782,372 shares as of December 31, 2018)			(270,141	)			(232,708	)			(132,135	)
Total stockholders' equity			2,640,258				2,654,558				2,524,839
Total liabilities and stockholders' equity		$	20,166,734			$	20,598,220			$	20,695,678

Average Balances and Interest Rates																							Table 4
		Three Months Ended								Three Months Ended								Three Months Ended
		December 31, 2019								September 30, 2019								December 31, 2018
		Average			Income/			Yield/		Average			Income/			Yield/		Average			Income/			Yield/
(dollars in millions)		Balance			Expense			Rate		Balance			Expense			Rate		Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	548.5		$	2.3		1.68	%	$	447.8		$	2.3		2.02	%	$	290.0		$	1.5		2.04	%
Available-for-Sale Investment Securities			4,092.2			21.0		2.05			4,296.3			22.3		2.07			4,521.3			25.5		2.24
Loans Held for Sale			1.5			—		2.55			1.4			—		2.36			0.3			—		3.51
Loans and Leases(1)
Commercial and industrial			2,668.5			25.3		3.76			2,885.9			30.0		4.12			3,120.9			32.7		4.16
Commercial real estate			3,325.8			35.9		4.28			3,294.7			37.3		4.49			3,013.0			32.4		4.27
Construction			497.8			5.4		4.36			477.2			5.6		4.67			623.9			7.1		4.51
Residential:
Residential mortgages			3,720.2			38.5		4.14			3,644.9			38.6		4.23			3,351.8			36.0		4.26
Home equity lines			905.6			8.2		3.58			912.8			8.6		3.74			904.5			8.7		3.78
Consumer			1,635.2			23.3		5.66			1,651.4			23.3		5.61			1,657.9			22.7		5.44
Lease financing			187.8			1.4		2.94			165.4			1.3		3.14			157.6			1.1		2.70
Total Loans and Leases			12,940.9			138.0		4.24			13,032.3			144.7		4.41			12,829.6			140.7		4.35
Other Earning Assets			66.2			0.8		4.76			84.8			0.9		4.47			60.1			0.4		2.42
Total Earning Assets(2)			17,649.3			162.1		3.66			17,862.6			170.2		3.79			17,701.3			168.1		3.77
Cash and Due from Banks			316.5								341.7								339.7
Other Assets			2,123.8								2,128.2								2,029.0
Total Assets		$	20,089.6							$	20,332.5							$	20,070.0
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings		$	4,943.2		$	3.8		0.31	%	$	4,891.5		$	4.6		0.37	%		4,708.4		$	3.6		0.30	%
Money Market			3,117.6			5.6		0.72			3,067.4			7.1		0.92			3,021.9			6.1		0.80
Time			2,538.4			8.8		1.37			2,872.6			11.1		1.54			3,026.2			10.5		1.37
Total Interest-Bearing Deposits			10,599.2			18.2		0.68			10,831.5			22.8		0.83			10,756.5			20.2		0.74
Short-Term Borrowings			400.1			2.9		2.87			370.0			2.6		2.84			112.9			0.6		2.26
Long-Term Borrowings			200.0			1.4		2.76			239.1			1.7		2.82			452.2			3.3		2.86
Total Interest-Bearing Liabilities			11,199.3			22.5		0.80			11,440.6			27.1		0.94			11,321.6			24.1		0.84
Net Interest Income					$	139.6							$	143.1							$	144.0
Interest Rate Spread								2.86	%							2.85	%							2.93	%
Net Interest Margin								3.15	%							3.19	%							3.23	%
Noninterest-Bearing Demand Deposits			5,756.0								5,742.3								5,852.1
Other Liabilities			497.6								501.2								458.8
Stockholders' Equity			2,636.7								2,648.4								2,437.5
Total Liabilities and Stockholders' Equity		$	20,089.6							$	20,332.5							$	20,070.0

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

Average Balances and Interest Rates																Table 5
		Year Ended								Year Ended
		December 31, 2019								December 31, 2018
		Average			Income/			Yield/		Average			Income/			Yield/
(dollars in millions)		Balance			Expense			Rate		Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	437.8		$	9.3		2.11	%	$	460.8		$	8.3		1.81	%
Available-for-Sale Investment Securities			4,310.2			92.5		2.15			4,843.0			107.1		2.21
Loans Held for Sale			1.0			—		2.53			1.0			—		3.60
Loans and Leases(1)
Commercial and industrial			2,987.3			122.8		4.11			3,105.4			121.9		3.93
Commercial real estate			3,176.6			143.9		4.53			2,918.5			118.7		4.07
Construction			547.7			25.5		4.65			623.6			25.8		4.13
Residential:
Residential mortgages			3,626.0			150.9		4.16			3,254.9			138.4		4.25
Home equity lines			910.7			34.1		3.74			874.2			32.2		3.68
Consumer			1,652.8			91.8		5.56			1,633.2			88.2		5.40
Lease financing			162.6			5.0		3.08			160.4			4.7		2.91
Total Loans and Leases			13,063.7			574.0		4.39			12,570.2			529.9		4.22
Other Earning Assets			79.8			2.9		3.66			36.5			0.7		1.93
Total Earning Assets(2)			17,892.5			678.7		3.79			17,911.5			646.0		3.61
Cash and Due from Banks			340.1								328.3
Other Assets			2,093.1								2,007.3
Total Assets		$	20,325.7							$	20,247.1
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings		$	4,840.6		$	16.6		0.34	%	$	4,638.6		$	11.0		0.24	%
Money Market			3,123.5			27.8		0.89			2,833.4			15.2		0.53
Time			2,882.9			43.5		1.51			3,743.5			46.8		1.25
Total Interest-Bearing Deposits			10,847.0			87.9		0.81			11,215.5			73.0		0.65
Short-Term Borrowings			209.8			5.9		2.82			39.9			0.8		2.13
Long-Term Borrowings			406.6			11.5		2.83			206.0			5.9		2.87
Total Interest-Bearing Liabilities			11,463.4			105.3		0.92			11,461.4			79.7		0.70
Net Interest Income					$	573.4							$	566.3
Interest Rate Spread								2.87	%							2.91	%
Net Interest Margin								3.20	%							3.16	%
Noninterest-Bearing Demand Deposits			5,766.4								5,899.9
Other Liabilities			486.5								428.0
Stockholders' Equity			2,609.4								2,457.8
Total Liabilities and Stockholders' Equity		$	20,325.7							$	20,247.1

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

Analysis of Change in Net Interest Income											Table 6
		Three Months Ended December 31, 2019
		Compared to September 30, 2019
(dollars in millions)		Volume				Rate				Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	0.4			$	(0.4	)		$	—
Available-for-Sale Investment Securities			(1.1	)			(0.2	)			(1.3	)
Loans and Leases
Commercial and industrial			(2.2	)			(2.5	)			(4.7	)
Commercial real estate			0.4				(1.8	)			(1.4	)
Construction			0.2				(0.4	)			(0.2	)
Residential:
Residential mortgage			0.8				(0.9	)			(0.1	)
Home equity line			(0.1	)			(0.3	)			(0.4	)
Consumer			(0.2	)			0.2				—
Lease financing			0.2				(0.1	)			0.1
Total Loans and Leases			(0.9	)			(5.8	)			(6.7	)
Other Earning Assets			(0.2	)			0.1				(0.1	)
Total Change in Interest Income			(1.8	)			(6.3	)			(8.1	)
Change in Interest Expense:
Interest-Bearing Deposits
Savings			—				(0.8	)			(0.8	)
Money Market			0.1				(1.6	)			(1.5	)
Time			(1.2	)			(1.1	)			(2.3	)
Total Interest-Bearing Deposits			(1.1	)			(3.5	)			(4.6	)
Short-Term Borrowings			0.2				0.1				0.3
Long-Term Borrowings			(0.3	)			—				(0.3	)
Total Change in Interest Expense			(1.2	)			(3.4	)			(4.6	)
Change in Net Interest Income		$	(0.6	)		$	(2.9	)		$	(3.5	)

Analysis of Change in Net Interest Income											Table 7
		Three Months Ended December 31, 2019
		Compared to December 31, 2018
(dollars in millions)		Volume				Rate				Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	1.1			$	(0.3	)		$	0.8
Available-for-Sale Investment Securities			(2.4	)			(2.1	)			(4.5	)
Loans and Leases
Commercial and industrial			(4.5	)			(2.9	)			(7.4	)
Commercial real estate			3.4				0.1				3.5
Construction			(1.4	)			(0.3	)			(1.7	)
Residential:
Residential mortgage			3.6				(1.1	)			2.5
Home equity line			—				(0.5	)			(0.5	)
Consumer			(0.2	)			0.8				0.6
Lease financing			0.2				0.1				0.3
Total Loans and Leases			1.1				(3.8	)			(2.7	)
Other Earning Assets			—				0.4				0.4
Total Change in Interest Income			(0.2	)			(5.8	)			(6.0	)
Change in Interest Expense:
Interest-Bearing Deposits
Savings			0.1				0.1				0.2
Money Market			0.2				(0.7	)			(0.5	)
Time			(1.7	)			—				(1.7	)
Total Interest-Bearing Deposits			(1.4	)			(0.6	)			(2.0	)
Short-Term Borrowings			2.1				0.2				2.3
Long-Term Borrowings			(1.8	)			(0.1	)			(1.9	)
Total Change in Interest Expense			(1.1	)			(0.5	)			(1.6	)
Change in Net Interest Income		$	0.9			$	(5.3	)		$	(4.4	)

Analysis of Change in Net Interest Income											Table 8
		Year Ended December 31, 2019
		Compared to December 31, 2018
(dollars in millions)		Volume				Rate				Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	(0.4	)		$	1.4			$	1.0
Available-for-Sale Investment Securities			(11.7	)			(2.9	)			(14.6	)
Loans and Leases
Commercial and industrial			(4.7	)			5.6				0.9
Commercial real estate			11.0				14.2				25.2
Construction			(3.3	)			3.0				(0.3	)
Residential:
Residential mortgage			15.6				(3.1	)			12.5
Home equity line			1.4				0.5				1.9
Consumer			1.0				2.6				3.6
Lease financing			—				0.3				0.3
Total Loans and Leases			21.0				23.1				44.1
Other Earning Assets			1.3				0.9				2.2
Total Change in Interest Income			10.2				22.5				32.7
Change in Interest Expense:
Interest-Bearing Deposits
Savings			0.5				5.1				5.6
Money Market			1.7				10.9				12.6
Time			(11.9	)			8.6				(3.3	)
Total Interest-Bearing Deposits			(9.7	)			24.6				14.9
Short-Term Borrowings			4.7				0.4				5.1
Long-Term Borrowings			5.7				(0.1	)			5.6
Total Change in Interest Expense			0.7				24.9				25.6
Change in Net Interest Income		$	9.5			$	(2.4	)		$	7.1

Loans and Leases									Table 9
		December 31,			September 30,			December 31,
(dollars in thousands)		2019			2019			2018
Commercial and industrial		$	2,743,242		$	2,654,077		$	3,208,760
Commercial real estate			3,463,953			3,309,389			2,990,783
Construction			519,241			486,977			626,757
Residential:
Residential mortgage			3,768,936			3,671,424			3,527,101
Home equity line			893,239			916,106			912,517
Total residential			4,662,175			4,587,530			4,439,618
Consumer			1,620,556			1,637,549			1,662,504
Lease financing			202,483			167,874			147,769
Total loans and leases		$	13,211,650		$	12,843,396		$	13,076,191

Deposits									Table 10
		December 31,			September 30,			December 31,
(dollars in thousands)		2019			2019			2018
Demand		$	5,880,072		$	5,720,822		$	6,007,941
Savings			4,998,933			4,899,468			4,853,285
Money Market			3,055,832			3,529,363			3,196,678
Time			2,510,157			2,707,593			3,092,164
Total Deposits		$	16,444,994		$	16,857,246		$	17,150,068

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)		2019			2019			2018
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial		$	32		$	12		$	274
Commercial real estate			30			33			1,658
Total Commercial Loans			62			45			1,932
Residential Loans:
Residential mortgage			5,406			3,959			4,611
Total Residential Loans			5,406			3,959			4,611
Consumer			—			200			—
Total Non-Accrual Loans and Leases			5,468			4,204			6,543
Other Real Estate Owned			319			82			751
Total Non-Performing Assets		$	5,787		$	4,286		$	7,294
Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial		$	1,429		$	750		$	141
Construction			2,367			—			—
Commercial real estate			1,013			—			—
Total Commercial Loans			4,809			750			141
Residential Loans:
Residential mortgage			74			139			32
Home equity line			2,995			3,192			2,842
Total Residential Loans			3,069			3,331			2,874
Consumer			4,272			3,076			3,373
Total Accruing Loans and Leases Past Due 90 Days or More		$	12,150		$	7,157		$	6,388
Restructured Loans on Accrual Status and Not Past Due 90 Days or More			14,493			22,350			24,033
Total Loans and Leases		$	13,211,650		$	12,843,396		$	13,076,191

Allowance for Loan and Lease 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)		2019			2019			2018			2019			2018
Balance at Beginning of Period		$	132,964		$	138,535		$	141,250		$	141,718		$	137,253
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial			(204)			(514)			—			(2,718)			(778)
Lease financing			—			—			—			(24)			—
Total Commercial Loans			(204)			(514)			—			(2,742)			(778)
Residential			(431)			(7)			(6)			(438)			(165)
Consumer			(8,689)			(8,015)			(8,015)			(32,807)			(26,630)
Total Loans and Leases Charged-Off			(9,324)			(8,536)			(8,021)			(35,987)			(27,573)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial			107			241			78			410			232
Commercial real estate			170			30			41			263			216
Total Commercial Loans			277			271			119			673			448
Residential			107			425			256			967			940
Consumer			2,256			2,269			2,364			9,359			8,470
Total Recoveries on Loans and Leases Previously Charged-Off			2,640			2,965			2,739			10,999			9,858
Net Loans and Leases Charged-Off			(6,684)			(5,571)			(5,282)			(24,988)			(17,715)
Provision for Loan and Lease Losses			4,250			—			5,750			13,800			22,180
Balance at End of Period		$	130,530		$	132,964		$	141,718		$	130,530		$	141,718
Average Loans and Leases Outstanding		$	12,940,956		$	13,032,349		$	12,829,635		$	13,063,716		$	12,570,182
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)			0.20	%		0.17	%		0.16	%		0.19	%		0.14	%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding			0.99	%		1.04	%		1.08	%		0.99	%		1.08	%

⁽¹⁾ Annualized for the three months ended December 31, 2019, September 30, 2019 and December 31, 2018.

GAAP to Non-GAAP Reconciliation													Table 13
		For the Three Months Ended									For the Year Ended
		December 31,			September 30,			December 31,			December 31,
(dollars in thousands, except per share amounts)		2019			2019			2018			2019			2018
Income Statement Data:
Net income		$	67,836		$	74,199		$	59,995		$	284,392		$	264,394
Core net income		$	71,250		$	75,871		$	77,914		$	291,785		$	286,711
Average total stockholders' equity		$	2,636,651		$	2,648,428		$	2,437,504		$	2,609,432		$	2,457,771
Less: average goodwill			995,492			995,492			995,492			995,492			995,492
Average tangible stockholders' equity		$	1,641,159		$	1,652,936		$	1,442,012		$	1,613,940		$	1,462,279
Average total assets		$	20,089,601		$	20,332,457		$	20,069,988		$	20,325,697		$	20,247,135
Less: average goodwill			995,492			995,492			995,492			995,492			995,492
Average tangible assets		$	19,094,109		$	19,336,965		$	19,074,496		$	19,330,205		$	19,251,643
Return on average total stockholders' equity(1)			10.21	%		11.12	%		9.77	%		10.90	%		10.76	%
Core return on average total stockholders' equity (non-GAAP)(1)			10.72	%		11.37	%		12.68	%		11.18	%		11.67	%
Return on average tangible stockholders' equity (non-GAAP)(1)			16.40	%		17.81	%		16.51	%		17.62	%		18.08	%
Core return on average tangible stockholders' equity (non-GAAP)(1)			17.22	%		18.21	%		21.44	%		18.08	%		19.61	%
Return on average total assets(1)			1.34	%		1.45	%		1.19	%		1.40	%		1.31	%
Core return on average total assets (non-GAAP)(1)			1.41	%		1.48	%		1.54	%		1.44	%		1.42	%
Return on average tangible assets (non-GAAP)(1)			1.41	%		1.52	%		1.25	%		1.47	%		1.37	%
Core return on average tangible assets (non-GAAP)(1)			1.48	%		1.56	%		1.62	%		1.51	%		1.49	%
								As of			As of			As of
								December 31,			September 30,			December 31,
								2019			2019			2018
Balance Sheet Data:
Total stockholders' equity								$	2,640,258		$	2,654,558		$	2,524,839
Less: goodwill									995,492			995,492			995,492
Tangible stockholders' equity								$	1,644,766		$	1,659,066		$	1,529,347
Total assets								$	20,166,734		$	20,598,220		$	20,695,678
Less: goodwill									995,492			995,492			995,492
Tangible assets								$	19,171,242		$	19,602,728		$	19,700,186
Shares outstanding									129,928,479			131,260,900			134,874,302
Total stockholders' equity to total assets									13.09	%		12.89	%		12.20	%
Tangible stockholders' equity to tangible assets (non-GAAP)									8.58	%		8.46	%		7.76	%
Book value per share								$	20.32		$	20.22		$	18.72
Tangible book value per share (non-GAAP)								$	12.66		$	12.64		$	11.34

⁽¹⁾ Annualized for the three months ended December 31, 2019, September 30, 2019 and December 31, 2018.

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)		2019				2019				2018				2019				2018
Net interest income		$	139,619			$	143,081			$	143,985			$	573,402			$	566,318
Core net interest income (non-GAAP)		$	139,619			$	143,081			$	143,985			$	573,402			$	566,318
Noninterest income		$	46,708			$	49,980			$	33,091			$	192,533			$	178,993
Loss on sale of securities			123				—				—				2,715				—
Costs associated with the sale of stock			4,500				—				—				4,500				—
OTTI losses on available-for-sale debt securities			—				—				24,085				—				24,085
Core noninterest income (non-GAAP)		$	51,331			$	49,980			$	57,176			$	199,748			$	203,078
Noninterest expense		$	91,058			$	93,466			$	89,354			$	370,437			$	364,953
Loss on litigation settlement(1)			—				—				—				—				(4,125	)
One-time items(2)			(48	)			(2,244	)			(435	)			(2,814	)			(2,267	)
Core noninterest expense (non-GAAP)		$	91,010			$	91,222			$	88,919			$	367,623			$	358,561
Net income		$	67,836			$	74,199			$	59,995			$	284,392			$	264,394
Loss on sale of securities			123				—				—				2,715				—
Costs associated with the sale of stock			4,500				—				—				4,500				—
OTTI losses on available-for-sale debt securities			—				—				24,085				—				24,085
Loss on litigation settlement(1)			—				—				—				—				4,125
One-time noninterest expense items(2)			48				2,244				435				2,814				2,267
Tax adjustments(3)			(1,257	)			(572	)			(6,601	)			(2,636	)			(8,160	)
Total core adjustments			3,414				1,672				17,919				7,393				22,317
Core net income (non-GAAP)		$	71,250			$	75,871			$	77,914			$	291,785			$	286,711
Basic earnings per share		$	0.52			$	0.56			$	0.44			$	2.14			$	1.93
Diluted earnings per share		$	0.52			$	0.56			$	0.44			$	2.13			$	1.93
Efficiency ratio			48.86		%		48.41		%		50.45		%		48.36		%		48.96		%
Core basic earnings per share (non-GAAP)		$	0.55			$	0.57			$	0.58			$	2.19			$	2.09
Core diluted earnings per share (non-GAAP)		$	0.54			$	0.57			$	0.58			$	2.19			$	2.09
Core efficiency ratio (non-GAAP)			47.65		%		47.25		%		44.19		%		47.55		%		46.59		%

⁽¹⁾ The Company reached an agreement in principle to resolve a putative class action lawsuit alleging that the Bank improperly charged certain overdraft fees. In connection with the settlement agreement, the Company recorded an expense of approximately $4.1 million during the year ended December 31, 2018.
⁽²⁾ One-time items for all periods shown included nonrecurring offering costs. Additionally, one-time items for the three months ended September 30, 2019 and the twelve months ended December 31, 2019 included costs related to a nonrecurring payment to a former executive of the Company pursuant to the Bank’s Executive Change-in-Control Retention Plan and the loss on our funding swap as a result of a 2019 decrease in the conversion rate of our Visa Class B restricted shares sold in 2016. One-time items for the year ended December 31, 2018 included the loss on our funding swap as a result of a 2018 decrease in the conversion rate of our Visa Class B restricted shares sold in 2016.
⁽³⁾ Represents the adjustments to net income, tax effected at the Company’s effective tax rate for the respective period.