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

HONOLULU, Jan. 22, 2021 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended December 31, 2020.

“We finished 2020 with a strong quarter and continued to support our customers and meet their evolving needs by leveraging technology, digital channels and our deep relationships,” said Bob Harrison, Chairman, President and CEO. “In these uncertain times, our ability to remain agile and innovative positions us well to continue supporting our customers and the community.”

On January 20, 2021 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on March 5, 2021 to stockholders of record at the close of business on February 22, 2021.

Fourth Quarter 2020 Highlights:

• Net income of $61.7 million, or $0.47 per diluted share
• Net interest income increased $1.2 million, or 0.9%, versus prior quarter
• Net interest margin (“NIM”) was 2.71%, a 1 basis point increase versus the prior quarter
• Noninterest income increased $4.7 million, or 9.6%, versus prior quarter
• Noninterest expense decreased $3.5 million, or 3.8%, versus prior quarter
• Total deposits increased $330.0 million, or 1.7%, versus prior quarter.
• Recorded a $20.0 million provision for credit losses
• Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet
Total assets were $22.7 billion as of December 31, 2020, compared to $22.3 billion as of September 30, 2020.

Gross loans and leases were $13.3 billion as of December 31, 2020, a decrease of $220.9 million, or 1.6%, from $13.5 billion as of September 30, 2020.

Total deposits were $19.2 billion as of December 31, 2020, an increase of $330.0 million, or 1.7%, from $18.9 billion as of September 30, 2020.

Net Interest Income
Net interest income for the fourth quarter of 2020 was $135.2 million, an increase of $1.2 million, or 0.9%, compared to $134.0 million for the prior quarter.  

The NIM was 2.71% in the fourth quarter of 2020, an increase of 1 basis point compared to 2.70% in the third quarter of 2020.

Provision Expense
During the quarter ended December 31, 2020, the Bank recorded a total provision for credit losses of $20.0 million. In the quarter ended September 30, 2020, the total provision for credit losses was $5.1 million.

Noninterest Income
Noninterest income was $53.6 million in the fourth quarter of 2020, an increase of $4.7 million compared to noninterest income of $48.9 million in the third quarter of 2020.

Noninterest Expense
Noninterest expense was $88.1 million in the fourth quarter of 2020, a decrease of $3.5 million compared to noninterest expense of $91.6 million in the third quarter of 2020.

The efficiency ratio was 46.6% and 50.0% for the quarters ended December 31, 2020 and September 30, 2020, respectively.

Taxes
The effective tax rate was 23.5% for the quarter ended December 31, 2020 and 24.5% for the quarter ended September 30, 2020.

Asset Quality
The allowance for credit losses was $208.5 million, or 1.57% of total loans and leases, as of December 31, 2020, compared to $195.9 million, or 1.45% of total loans and leases, as of September 30, 2020. The reserve for unfunded commitments was $30.6 million as of December 31, 2020 compared to $24.6 million as of September 30, 2020. Net charge-offs were $1.4 million, or 0.04% of average loans and leases on an annualized basis for the quarter ended December 31, 2020, compared to net recoveries of $0.1 million, or 0.00% of average loans and leases on an annualized basis for the quarter ended September 30, 2020. Total non-performing assets were $9.1 million, or 0.07% of total loans and leases and other real estate owned, at December 31, 2020, compared to non-performing assets of $17.6 million, or 0.13% of total loans and leases and other real estate owned, at September 30, 2020.

Capital
Total stockholders' equity was $2.7 billion at both December 31, 2020 and September 30, 2020.    

The tier 1 leverage, common equity tier 1 and total capital ratios were 8.00%, 12.47% and 13.72%, respectively, at December 31, 2020, compared with 7.91%, 12.22% and 13.47%, respectively, at September 30, 2020.

The Company suspended its stock repurchase program during the first quarter and did not repurchase any shares of common stock in the fourth quarter.

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 [phone] (US/Canada), or [phone] (International) ten minutes prior to the start of the call and enter the conference ID: 9772806.   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 29, 2021. Access the replay by dialing [phone] or [phone] and entering the conference ID: 9772806.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Further, statements about the potential effects of the COVID-19 pandemic on our businesses and financial results and conditions may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic, actions taken by governmental authorities in response to the pandemic, and the direct and indirect impact of the pandemic on our customers, third parties and us. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the ongoing impacts of COVID-19, the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2019 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020, and September 30, 2020.

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: Kevin Haseyama, CFA [phone] [e-mail]

Media Contact: Susan Kam [phone] [e-mail]

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)		2020			2020			2019			2020			2019
Operating Results:
Net interest income		$	135,227		$	134,002		$	139,619		$	535,734		$	573,402
Provision for credit losses			20,000			5,072			4,250			121,718			13,800
Noninterest income			53,598			48,898			46,708			197,380			192,533
Noninterest expense			88,127			91,629			91,058			367,672			370,437
Net income			61,739			65,101			67,836			185,754			284,392
Basic earnings per share			0.48			0.50			0.52			1.43			2.14
Diluted earnings per share			0.47			0.50			0.52			1.43			2.13
Dividends declared per share			0.26			0.26			0.26			1.04			1.04
Dividend payout ratio			55.32	%		52.00	%		50.00	%		72.73	%		48.83	%
Supplemental Income Statement Data (non-GAAP):
Core net interest income		$	135,227		$	134,002		$	139,619		$	535,734		$	573,402
Core noninterest income			58,438			48,874			51,331			202,322			199,748
Core noninterest expense			88,127			91,629			91,010			367,672			367,623
Core net income			65,288			65,083			71,250			189,378			291,785
Core basic earnings per share			0.50			0.50			0.55			1.46			2.19
Core diluted earnings per share			0.50			0.50			0.54			1.45			2.19
Performance Ratio(1):
Net interest margin			2.71	%		2.70	%		3.15	%		2.77	%		3.20	%
Core net interest margin (non-GAAP)			2.71	%		2.70	%		3.15	%		2.77	%		3.20	%
Efficiency ratio			46.59	%		50.01	%		48.86	%		50.10	%		48.36	%
Core efficiency ratio (non-GAAP)			45.43	%		50.02	%		47.65	%		49.77	%		47.55	%
Return on average total assets			1.09	%		1.16	%		1.34	%		0.85	%		1.40	%
Core return on average total assets (non-GAAP)			1.16	%		1.16	%		1.41	%		0.87	%		1.44	%
Return on average tangible assets (non-GAAP)			1.14	%		1.21	%		1.41	%		0.89	%		1.47	%
Core return on average tangible assets (non-GAAP)(2)			1.21	%		1.21	%		1.48	%		0.91	%		1.51	%
Return on average total stockholders' equity			8.99	%		9.58	%		10.21	%		6.88	%		10.90	%
Core return on average total stockholders' equity (non-GAAP)			9.51	%		9.57	%		10.72	%		7.02	%		11.18	%
Return on average tangible stockholders' equity (non-GAAP)			14.14	%		15.16	%		16.40	%		10.91	%		17.62	%
Core return on average tangible stockholders’ equity (non-GAAP)(3)			14.95	%		15.15	%		17.22	%		11.12	%		18.08	%
Average Balances:
Average loans and leases		$	13,366,980		$	13,559,367		$	12,940,956		$	13,518,308		$	13,063,716
Average earning assets			19,977,933			19,846,674			17,649,343			19,376,343			17,892,440
Average assets			22,468,040			22,341,485			20,089,601			21,869,064			20,325,697
Average deposits			19,020,800			18,892,033			16,355,254			18,252,998			16,613,379
Average stockholders' equity			2,732,271			2,704,129			2,636,651			2,698,853			2,609,432
Market Value Per Share:
Closing			23.58			14.47			28.85			23.58			28.85
High			23.90			18.96			29.47			31.25			29.47
Low			14.16			14.32			25.48			13.56			22.13

			As of			As of			As of
			December 31,			September 30,			December 31,
			2020			2020			2019
Balance Sheet Data:
Loans and leases			$	13,279,097		$	13,499,969		$	13,211,650
Total assets				22,662,831			22,310,701			20,166,734
Total deposits				19,227,723			18,897,762			16,444,994
Short-term borrowings				—			—			400,000
Long-term borrowings				200,010			200,010			200,019
Total stockholders' equity				2,744,104			2,733,934			2,640,258
Per Share of Common Stock:
Book value			$	21.12		$	21.04		$	20.32
Tangible book value (non-GAAP)(4)				13.46			13.38			12.66
Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases				0.07	%		0.13	%		0.04	%
Allowance for credit losses for loans and leases / total loans and leases				1.57	%		1.45	%		0.99	%
Capital Ratios:
Common Equity Tier 1 Capital Ratio				12.47	%		12.22	%		11.88	%
Tier 1 Capital Ratio				12.47	%		12.22	%		11.88	%
Total Capital Ratio				13.72	%		13.47	%		12.81	%
Tier 1 Leverage Ratio				8.00	%		7.91	%		8.79	%
Total stockholders' equity to total assets				12.11	%		12.25	%		13.09	%
Tangible stockholders' equity to tangible assets (non-GAAP)				8.07	%		8.16	%		8.58	%
Non-Financial Data:
Number of branches				54			58			58
Number of ATMs				297			302			301
Number of Full-Time Equivalent Employees				2,103			2,099			2,092

_____________________________
⁽¹⁾ Except for the efficiency ratio and the core efficiency ratio, amounts are annualized for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019.

⁽²⁾ Core return on average tangible assets is a non-GAAP financial measure. We compute our core return on average tangible assets as the ratio of core net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 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)		2020				2020			2019				2020				2019
Interest income
Loans and lease financing		$	118,314			$	120,940		$	138,033			$	496,523			$	574,013
Available-for-sale securities			22,752				20,317			20,979				81,808				92,505
Other			615				670			3,120				4,428				12,174
Total interest income			141,681				141,927			162,132				582,759				678,692
Interest expense
Deposits			5,061				6,227			18,222				35,471				87,865
Short-term and long-term borrowings			1,393				1,698			4,291				11,554				17,425
Total interest expense			6,454				7,925			22,513				47,025				105,290
Net interest income			135,227				134,002			139,619				535,734				573,402
Provision for credit losses			20,000				5,072			4,250				121,718				13,800
Net interest income after provision for credit losses			115,227				128,930			135,369				414,016				559,602
Noninterest income
Service charges on deposit accounts			6,769				6,523			9,041				28,169				33,778
Credit and debit card fees			15,583				14,049			16,626				55,451				66,749
Other service charges and fees			8,404				9,021			8,818				33,876				36,253
Trust and investment services income			8,733				8,664			8,855				35,652				35,102
Bank-owned life insurance			4,159				4,903			2,533				15,754				15,479
Investment securities (losses) gains, net			(12	)			24			(123	)			(114	)			(2,715	)
Other			9,962				5,714			958				28,592				7,887
Total noninterest income			53,598				48,898			46,708				197,380				192,533
Noninterest expense
Salaries and employee benefits			42,687				44,291			41,098				174,221				173,098
Contracted services and professional fees			13,940				15,073			13,724				60,546				56,321
Occupancy			7,355				6,921			7,231				28,821				28,753
Equipment			5,225				5,137			4,491				20,277				17,343
Regulatory assessment and fees			2,168				2,445			1,802				8,659				7,390
Advertising and marketing			1,096				1,374			1,317				5,695				6,910
Card rewards program			4,890				5,046			8,635				22,114				29,961
Other			10,766				11,342			12,760				47,339				50,661
Total noninterest expense			88,127				91,629			91,058				367,672				370,437
Income before provision for income taxes			80,698				86,199			91,019				243,724				381,698
Provision for income taxes			18,959				21,098			23,183				57,970				97,306
Net income		$	61,739			$	65,101		$	67,836			$	185,754			$	284,392
Basic earnings per share		$	0.48			$	0.50		$	0.52			$	1.43			$	2.14
Diluted earnings per share		$	0.47			$	0.50		$	0.52			$	1.43			$	2.13
Basic weighted-average outstanding shares			129,912,104				129,896,054			130,463,102				129,890,225				133,076,489
Diluted weighted-average outstanding shares			130,314,381				130,085,534			130,845,645				130,220,077				133,387,157

Consolidated Balance Sheets		Table 3
		December 31,				September 30,				December 31,
(dollars in thousands)		2020				2020				2019
Assets
Cash and due from banks		$	303,373			$	333,744			$	360,375
Interest-bearing deposits in other banks			737,571				482,585				333,642
Investment securities, at fair value (amortized cost: $5,985,031 as of December 31, 2020, $5,584,556 as of September 30, 2020 and $4,080,663 as of December 31, 2019)			6,071,415				5,692,883				4,075,644
Loans held for sale			11,579				34,669				904
Loans and leases			13,279,097				13,499,969				13,211,650
Less: allowance for credit losses			208,454				195,876				130,530
Net loans and leases			13,070,643				13,304,093				13,081,120
Premises and equipment, net			322,401				321,229				316,885
Other real estate owned and repossessed personal property			—				—				319
Accrued interest receivable			69,626				66,005				45,239
Bank-owned life insurance			466,537				462,422				453,873
Goodwill			995,492				995,492				995,492
Mortgage servicing rights			10,731				10,922				12,668
Other assets			603,463				606,657				490,573
Total assets		$	22,662,831			$	22,310,701			$	20,166,734
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing		$	11,705,609			$	11,989,492			$	10,564,922
Noninterest-bearing			7,522,114				6,908,270				5,880,072
Total deposits			19,227,723				18,897,762				16,444,994
Short-term borrowings			—				—				400,000
Long-term borrowings			200,010				200,010				200,019
Retirement benefits payable			143,373				138,806				138,222
Other liabilities			347,621				340,189				343,241
Total liabilities			19,918,727				19,576,767				17,526,476
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,191,133 / 129,912,272 shares as of December 31, 2020, issued/outstanding: 140,190,428 / 129,911,789 shares as of September 30, 2020 and issued/outstanding: 139,917,150 / 129,928,479 shares as of December 31, 2019)			1,402				1,402				1,399
Additional paid-in capital			2,514,014				2,511,849				2,503,677
Retained earnings			473,974				446,315				437,072
Accumulated other comprehensive income (loss), net			31,604				51,254				(31,749	)
Treasury stock (10,278,861 shares as of December 31, 2020, 10,278,639 shares as of September 30, 2020 and 9,988,671 shares as of December 31, 2019)			(276,890	)			(276,886	)			(270,141	)
Total stockholders' equity			2,744,104				2,733,934				2,640,258
Total liabilities and stockholders' equity		$	22,662,831			$	22,310,701			$	20,166,734

Average Balances and Interest Rates																							Table 4
		Three Months Ended								Three Months Ended								Three Months Ended
		December 31, 2020								September 30, 2020								December 31, 2019
		Average			Income/			Yield/		Average			Income/			Yield/		Average			Income/			Yield/
(dollars in millions)		Balance			Expense			Rate		Balance			Expense			Rate		Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	688.1		$	0.2		0.10	%	$	889.6		$	0.2		0.10	%	$	548.5		$	2.3		1.68	%
Available-for-Sale Investment Securities
Taxable			5,632.9			22.0		1.56			5,308.5			20.2		1.52			4,092.2			21.0		2.05
Non-Taxable			220.0			0.9		1.74			25.7			0.1		2.11			—			—		—
Total Available-for-Sale Investment Securities			5,852.9			22.9		1.57			5,334.2			20.3		1.53			4,092.2			21.0		2.05
Loans Held for Sale			16.2			0.1		2.00			10.2			0.1		2.67			1.5			—		2.55
Loans and Leases(1)
Commercial and industrial			3,077.6			22.6		2.93			3,230.4			21.6		2.67			2,668.5			25.3		3.76
Commercial real estate			3,407.2			26.2		3.06			3,418.0			27.8		3.23			3,325.8			35.9		4.28
Construction			703.1			5.6		3.14			637.6			5.2		3.22			497.8			5.4		4.36
Residential:
Residential mortgage			3,679.6			37.1		4.03			3,680.5			37.9		4.12			3,720.2			38.5		4.14
Home equity line			856.8			6.1		2.81			871.1			6.6		3.02			905.6			8.2		3.58
Consumer			1,394.5			19.0		5.43			1,474.4			20.2		5.46			1,635.2			23.3		5.66
Lease financing			248.2			1.8		2.89			247.4			1.8		2.90			187.8			1.4		2.94
Total Loans and Leases			13,367.0			118.4		3.53			13,559.4			121.1		3.56			12,940.9			138.0		4.24
Other Earning Assets			53.7			0.4		3.26			53.3			0.5		3.32			66.2			0.8		4.76
Total Earning Assets(2)			19,977.9			142.0		2.83			19,846.7			142.2		2.86			17,649.3			162.1		3.66
Cash and Due from Banks			289.2								307.9								316.5
Other Assets			2,200.9								2,186.9								2,123.8
Total Assets		$	22,468.0							$	22,341.5							$	20,089.6
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings		$	5,786.4		$	0.5		0.03	%	$	5,768.3		$	0.6		0.04	%		4,943.2		$	3.8		0.31	%
Money Market			3,440.9			0.4		0.05			3,288.2			0.4		0.05			3,117.6			5.6		0.72
Time			2,461.3			4.2		0.67			3,029.8			5.2		0.69			2,538.4			8.8		1.37
Total Interest-Bearing Deposits			11,688.6			5.1		0.17			12,086.3			6.2		0.20			10,599.2			18.2		0.68
Short-Term Borrowings			—			—		—			45.1			0.3		2.69			400.1			2.9		2.87
Long-Term Borrowings			200.0			1.4		2.77			200.0			1.4		2.77			200.0			1.4		2.76
Total Interest-Bearing Liabilities			11,888.6			6.5		0.22			12,331.4			7.9		0.26			11,199.3			22.5		0.80
Net Interest Income					$	135.5							$	134.3							$	139.6
Interest Rate Spread								2.61	%							2.60	%							2.86	%
Net Interest Margin								2.71	%							2.70	%							3.15	%
Noninterest-Bearing Demand Deposits			7,332.2								6,805.7								5,756.0
Other Liabilities			514.9								500.3								497.6
Stockholders' Equity			2,732.3								2,704.1								2,636.7
Total Liabilities and Stockholders' Equity		$	22,468.0							$	22,341.5							$	20,089.6

_____________________________
⁽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 $0.3 million, $0.3 million and nil for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019, respectively.

Average Balances and Interest Rates																Table 5
		Year Ended								Year Ended
		December 31, 2020								December 31, 2019
		Average			Income/			Yield/		Average			Income/			Yield/
(dollars in millions)		Balance			Expense			Rate		Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	882.1		$	2.4		0.27	%	$	437.8		$	9.3		2.11	%
Available-for-Sale Investment Securities
Taxable			4,844.5			80.9		1.67			4,309.7			92.5		2.15
Non-Taxable			62.0			1.1		1.77			0.5			—		2.71
Total Available-for-Sale Investment Securities			4,906.5			82.0		1.67			4,310.2			92.5		2.15
Loans Held for Sale			13.0			0.3		2.21			1.0			—		2.53
Loans and Leases(1)
Commercial and industrial			3,168.7			93.2		2.94			2,987.3			122.8		4.11
Commercial real estate			3,419.1			116.9		3.42			3,176.6			143.9		4.53
Construction			615.7			21.3		3.46			547.7			25.5		4.65
Residential:
Residential mortgage			3,698.7			148.4		4.01			3,626.0			150.9		4.16
Home equity line			875.1			27.1		3.10			910.7			34.1		3.74
Consumer			1,501.6			82.9		5.52			1,652.8			91.8		5.56
Lease financing			239.4			6.9		2.90			162.6			5.0		3.08
Total Loans and Leases			13,518.3			496.7		3.67			13,063.7			574.0		4.39
Other Earning Assets			56.4			2.0		3.66			79.8			2.9		3.66
Total Earning Assets(2)			19,376.3			583.4		3.01			17,892.5			678.7		3.79
Cash and Due from Banks			304.9								340.1
Other Assets			2,187.9								2,093.1
Total Assets		$	21,869.1							$	20,325.7
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings		$	5,538.1		$	5.2		0.09	%	$	4,840.6		$	16.6		0.34	%
Money Market			3,266.6			6.6		0.20			3,123.5			27.8		0.89
Time			2,839.8			23.7		0.83			2,882.9			43.5		1.51
Total Interest-Bearing Deposits			11,644.5			35.5		0.30			10,847.0			87.9		0.81
Short-Term Borrowings			209.6			6.0		2.87			209.8			5.9		2.82
Long-Term Borrowings			200.0			5.5		2.77			406.6			11.5		2.83
Total Interest-Bearing Liabilities			12,054.1			47.0		0.39			11,463.4			105.3		0.92
Net Interest Income					$	536.4							$	573.4
Interest Rate Spread								2.62	%							2.87	%
Net Interest Margin								2.77	%							3.20	%
Noninterest-Bearing Demand Deposits			6,608.5								5,766.4
Other Liabilities			507.6								486.5
Stockholders' Equity			2,698.9								2,609.4
Total Liabilities and Stockholders' Equity		$	21,869.1							$	20,325.7

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

⁽²⁾ Interest income includes taxable-equivalent basis adjustments of $0.7 million and nil for the years ended December 31, 2020 and 2019, respectively.

Analysis of Change in Net Interest Income											Table 6
		Three Months Ended December 31, 2020
		Compared to September 30, 2020
(dollars in millions)		Volume				Rate				Total
Change in Interest Income:
Available-for-Sale Investment Securities
Taxable		$	1.3			$	0.5			$	1.8
Non-Taxable			0.8				—				0.8
Total Available-for-Sale Investment Securities			2.1				0.5				2.6
Loans and Leases
Commercial and industrial			(1.0	)			2.0				1.0
Commercial real estate			(0.1	)			(1.5	)			(1.6	)
Construction			0.5				(0.1	)			0.4
Residential:
Residential mortgage			—				(0.8	)			(0.8	)
Home equity line			(0.1	)			(0.4	)			(0.5	)
Consumer			(1.1	)			(0.1	)			(1.2	)
Total Loans and Leases			(1.8	)			(0.9	)			(2.7	)
Other Earning Assets			—				(0.1	)			(0.1	)
Total Change in Interest Income			0.3				(0.5	)			(0.2	)
Change in Interest Expense:
Interest-Bearing Deposits
Savings			—				(0.1	)			(0.1	)
Time			(0.9	)			(0.1	)			(1.0	)
Total Interest-Bearing Deposits			(0.9	)			(0.2	)			(1.1	)
Short-Term Borrowings			(0.1	)			(0.2	)			(0.3	)
Total Change in Interest Expense			(1.0	)			(0.4	)			(1.4	)
Change in Net Interest Income		$	1.3			$	(0.1	)		$	1.2

Analysis of Change in Net Interest Income											Table 7
		Three Months Ended December 31, 2020
		Compared to December 31, 2019
(dollars in millions)		Volume				Rate				Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	0.5			$	(2.6	)		$	(2.1	)
Available-for-Sale Investment Securities
Taxable			6.7				(5.7	)			1.0
Non-Taxable			0.9				—				0.9
Total Available-for-Sale Investment Securities			7.6				(5.7	)			1.9
Loans Held for Sale			0.1				—				0.1
Loans and Leases
Commercial and industrial			3.5				(6.2	)			(2.7	)
Commercial real estate			0.8				(10.5	)			(9.7	)
Construction			1.9				(1.7	)			0.2
Residential:
Residential mortgage			(0.4	)			(1.0	)			(1.4	)
Home equity line			(0.4	)			(1.7	)			(2.1	)
Consumer			(3.4	)			(0.9	)			(4.3	)
Lease financing			0.4				—				0.4
Total Loans and Leases			2.4				(22.0	)			(19.6	)
Other Earning Assets			(0.1	)			(0.3	)			(0.4	)
Total Change in Interest Income			10.5				(30.6	)			(20.1	)
Change in Interest Expense:
Interest-Bearing Deposits
Savings			0.6				(3.9	)			(3.3	)
Money Market			0.5				(5.7	)			(5.2	)
Time			(0.2	)			(4.4	)			(4.6	)
Total Interest-Bearing Deposits			0.9				(14.0	)			(13.1	)
Short-Term Borrowings			(1.5	)			(1.4	)			(2.9	)
Total Change in Interest Expense			(0.6	)			(15.4	)			(16.0	)
Change in Net Interest Income		$	11.1			$	(15.2	)		$	(4.1	)

Analysis of Change in Net Interest Income											Table 8
		Year Ended December 31, 2020
		Compared to December 31, 2019
(dollars in millions)		Volume				Rate				Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	5.0			$	(11.9	)		$	(6.9	)
Available-for-Sale Investment Securities
Taxable			10.6				(22.2	)			(11.6	)
Non-Taxable			1.1				—				1.1
Total Available-for-Sale Investment Securities			11.7				(22.2	)			(10.5	)
Loans Held for Sale			0.3				—				0.3
Loans and Leases
Commercial and industrial			7.1				(36.7	)			(29.6	)
Commercial real estate			10.3				(37.3	)			(27.0	)
Construction			2.9				(7.1	)			(4.2	)
Residential:
Residential mortgage			3.0				(5.5	)			(2.5	)
Home equity line			(1.3	)			(5.7	)			(7.0	)
Consumer			(8.3	)			(0.6	)			(8.9	)
Lease financing			2.2				(0.3	)			1.9
Total Loans and Leases			15.9				(93.2	)			(77.3	)
Other Earning Assets			(0.9	)			—				(0.9	)
Total Change in Interest Income			32.0				(127.3	)			(95.3	)
Change in Interest Expense:
Interest-Bearing Deposits
Savings			2.1				(13.5	)			(11.4	)
Money Market			1.2				(22.4	)			(21.2	)
Time			(0.6	)			(19.2	)			(19.8	)
Total Interest-Bearing Deposits			2.7				(55.1	)			(52.4	)
Short-Term Borrowings			—				0.1				0.1
Long-Term Borrowings			(5.8	)			(0.2	)			(6.0	)
Total Change in Interest Expense			(3.1	)			(55.2	)			(58.3	)
Change in Net Interest Income		$	35.1			$	(72.1	)		$	(37.0	)

Loans and Leases										Table 9
			December 31,			September 30,			December 31,
(dollars in thousands)			2020			2020			2019
Commercial and industrial			$	3,019,507		$	3,170,262		$	2,743,242
Commercial real estate				3,392,676			3,461,085			3,463,953
Construction				735,819			662,871			519,241
Residential:
Residential mortgage				3,690,218			3,669,051			3,768,936
Home equity line				841,624			864,789			893,239
Total residential				4,531,842			4,533,840			4,662,175
Consumer				1,353,842			1,425,934			1,620,556
Lease financing				245,411			245,977			202,483
Total loans and leases			$	13,279,097		$	13,499,969		$	13,211,650

Deposits									Table 10
		December 31,			September 30,			December 31,
(dollars in thousands)		2020			2020			2019
Demand		$	7,522,114		$	6,908,270		$	5,880,072
Savings			6,020,075			5,994,687			4,998,933
Money Market			3,337,236			3,379,985			3,055,832
Time			2,348,298			2,614,820			2,510,157
Total Deposits		$	19,227,723		$	18,897,762		$	16,444,994

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)			2020			2020			2019
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial			$	518		$	725		$	32
Commercial real estate				80			7,067			30
Construction				2,043			2,043			—
Total Commercial Loans				2,641			9,835			62
Residential Loans:
Residential mortgage				6,441			7,798			5,406
Total Residential Loans				6,441			7,798			5,406
Total Non-Accrual Loans and Leases				9,082			17,633			5,468
Other Real Estate Owned				—			—			319
Total Non-Performing Assets			$	9,082		$	17,633		$	5,787
Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial			$	2,108		$	1,938		$	1,429
Commercial real estate				882			1,307			1,013
Construction				93			100			2,367
Total Commercial Loans				3,083			3,345			4,809
Residential Loans:
Residential mortgage				—			—			74
Home equity line				4,818			4,503			2,995
Total Residential Loans				4,818			4,503			3,069
Consumer				3,266			2,897			4,272
Total Accruing Loans and Leases Past Due 90 Days or More			$	11,167		$	10,745		$	12,150
Restructured Loans on Accrual Status and Not Past Due 90 Days or More			$	16,684		$	9,726		$	14,493
Total Loans and Leases			$	13,279,097		$	13,499,969		$	13,211,650

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)		2020				2020				2019				2020				2019
Balance at Beginning of Period		$	195,876			$	192,120			$	132,964			$	130,530			$	141,718
Adjustment to Adopt ASC Topic 326			—				—				—				770				—
After Adoption of ASC Topic 326			195,876				192,120				132,964				131,300				141,718
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial			(799	)			(598	)			(204	)			(15,572	)			(2,718	)
Commercial real estate			(30	)			—				—				(2,753	)			—
Construction			—				—				—				(379	)			—
Lease financing			—				—				—				—				(24	)
Total Commercial Loans			(829	)			(598	)			(204	)			(18,704	)			(2,742	)
Residential Loans:
Residential mortgage			—				—				(236	)			(14	)			(243	)
Home equity line			(46	)			—				(195	)			(54	)			(195	)
Total Residential Loans			(46	)			—				(431	)			(68	)			(438	)
Consumer			(7,049	)			(4,238	)			(8,689	)			(28,791	)			(32,807	)
Total Loans and Leases Charged-Off			(7,924	)			(4,836	)			(9,324	)			(47,563	)			(35,987	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial			2,986				1,699				107				5,005				410
Commercial real estate			615				—				170				615				263
Construction			30				30				—				200				—
Total Commercial Loans			3,631				1,729				277				5,820				673
Residential Loans:
Residential mortgage			37				27				37				216				741
Home equity line			21				16				70				167				226
Total Residential Loans			58				43				107				383				967
Consumer			2,812				3,148				2,256				10,499				9,359
Total Recoveries on Loans and Leases Previously Charged-Off			6,501				4,920				2,640				16,702				10,999
Net Loans and Leases (Charged-Off) Recovered			(1,423	)			84				(6,684	)			(30,861	)			(24,988	)
Provision for Credit Losses - Loans and Leases			14,001				3,672				4,250				108,015				13,800
Balance at End of Period		$	208,454			$	195,876			$	130,530			$	208,454			$	130,530
Average Loans and Leases Outstanding		$	13,366,980			$	13,559,367			$	12,940,956			$	13,518,308			$	13,063,716
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)			0.04		%		—		%		0.20		%		0.23		%		0.19		%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding			1.57		%		1.45		%		0.99		%		1.57		%		0.99		%

____________________________
⁽¹⁾ Annualized for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019.

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)		2020			2019			2018			2017			2016			Prior			Cost Basis			Cost Basis			Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass		$	873,639		$	324,030		$	183,329		$	73,000		$	49,886		$	94,360		$	1,058,786		$	28,853		$	2,685,883
Special Mention			20,937			10,370			20,164			2,099			279			8,316			101,183			1,549			164,897
Substandard			23,804			2,023			2,568			677			4,063			8,113			33,775			250			75,273
Other (1)			13,142			13,426			9,246			5,337			1,867			280			50,156			—			93,454
Total Commercial and Industrial			931,522			349,849			215,307			81,113			56,095			111,069			1,243,900			30,652			3,019,507
Commercial Real Estate
Risk rating:
Pass			342,845			611,243			541,104			447,366			295,426			814,398			47,604			323			3,100,309
Special Mention			1,500			63,617			26,187			33,482			37,841			61,279			2,999			—			226,905
Substandard			29			3,964			18,983			3,779			10,615			18,083			9,511			—			64,964
Other (1)			—			—			—			—			—			498			—			—			498
Total Commercial Real Estate			344,374			678,824			586,274			484,627			343,882			894,258			60,114			323			3,392,676
Construction
Risk rating:
Pass			53,931			233,730			202,808			83,792			23,171			41,536			28,386			—			667,354
Special Mention			—			508			707			4,717			—			9,172			—			—			15,104
Substandard			—			—			541			1,840			521			989			—			—			3,891
Other (1)			16,578			16,393			7,775			3,685			1,800			2,656			583			—			49,470
Total Construction			70,509			250,631			211,831			94,034			25,492			54,353			28,969			—			735,819
Lease Financing
Risk rating:
Pass			79,064			60,717			13,669			17,207			3,010			61,266			—			—			234,933
Special Mention			950			892			311			1,300			351			295			—			—			4,099
Substandard			2,708			1,677			327			1,141			—			526			—			—			6,379
Total Lease Financing			82,722			63,286			14,307			19,648			3,361			62,087			—			—			245,411
Total Commercial Lending		$	1,429,127		$	1,342,590		$	1,027,719		$	679,422		$	428,830		$	1,121,767		$	1,332,983		$	30,975		$	7,393,413

																							Revolving
																							Loans
																							Converted
		Term Loans																		Revolving			to Term
		Amortized Cost Basis by Origination Year																		Loans			Loans
(continued)																				Amortized			Amortized
(dollars in thousands)		2020			2019			2018			2017			2016			Prior			Cost Basis			Cost Basis			Total
Residential Lending
Residential Mortgage
FICO:
740 and greater		$	728,807		$	384,248		$	290,484		$	361,297		$	314,971		$	830,795		$	—		$	—		$	2,910,602
680 - 739			85,151			53,090			44,616			50,703			39,230			144,537			—			—			417,327
620 - 679			15,767			7,604			11,460			9,628			7,982			43,393			—			—			95,834
550 - 619			—			1,971			2,818			2,920			4,474			10,144			—			—			22,327
Less than 550			—			861			593			2,916			594			2,138			—			—			7,102
No Score (3)			13,823			18,861			21,214			21,821			14,355			45,147			—			—			135,221
Other (2)			21,011			15,860			18,540			22,677			9,550			13,426			578			163			101,805
Total Residential Mortgage			864,559			482,495			389,725			471,962			391,156			1,089,580			578			163			3,690,218
Home Equity Line
FICO:
740 and greater			—			—			—			—			—			—			608,282			2,163			610,445
680 - 739			—			—			—			—			—			—			159,886			3,155			163,041
620 - 679			—			—			—			—			—			—			44,005			1,571			45,576
550 - 619			—			—			—			—			—			—			11,644			884			12,528
Less than 550			—			—			—			—			—			—			5,159			330			5,489
No Score (3)			—			—			—			—			—			—			4,545			—			4,545
Total Home Equity Line			—			—			—			—			—			—			833,521			8,103			841,624
Total Residential Lending			864,559			482,495			389,725			471,962			391,156			1,089,580			834,099			8,266			4,531,842
Consumer Lending
FICO:
740 and greater			113,373			122,965			99,678			54,691			24,029			6,034			114,748			275			535,793
680 - 739			83,316			90,853			66,143			36,426			16,358			4,985			76,391			773			375,245
620 - 679			40,469			48,904			33,917			24,705			11,144			3,788			36,622			1,221			200,770
550 - 619			9,125			20,274			17,693			15,126			7,825			2,883			12,980			1,458			87,364
Less than 550			3,017			10,139			9,189			6,517			3,123			1,118			5,261			799			39,163
No Score (3)			339			103			64			109			10			—			33,854			356			34,835
Other (2)			380			1,890			73			2,214			45			6,768			69,302			—			80,672
Total Consumer Lending			250,019			295,128			226,757			139,788			62,534			25,576			349,158			4,882			1,353,842
Total Loans and Leases		$	2,543,705		$	2,120,213		$	1,644,201		$	1,291,172		$	882,520		$	2,236,923		$	2,516,240		$	44,123		$	13,279,097

___________________________
⁽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)		2020			2020			2019			2020			2019
Income Statement Data:
Net income		$	61,739		$	65,101		$	67,836		$	185,754		$	284,392
Core net income		$	65,288		$	65,083		$	71,250		$	189,378		$	291,785
Average total stockholders' equity		$	2,732,271		$	2,704,129		$	2,636,651		$	2,698,853		$	2,609,432
Less: average goodwill			995,492			995,492			995,492			995,492			995,492
Average tangible stockholders' equity		$	1,736,779		$	1,708,637		$	1,641,159		$	1,703,361		$	1,613,940
Average total assets		$	22,468,040		$	22,341,485		$	20,089,601		$	21,869,064		$	20,325,697
Less: average goodwill			995,492			995,492			995,492			995,492			995,492
Average tangible assets		$	21,472,548		$	21,345,993		$	19,094,109		$	20,873,572		$	19,330,205
Return on average total stockholders' equity(1)			8.99	%		9.58	%		10.21	%		6.88	%		10.90	%
Core return on average total stockholders' equity (non-GAAP)(1)			9.51	%		9.57	%		10.72	%		7.02	%		11.18	%
Return on average tangible stockholders' equity (non-GAAP)(1)			14.14	%		15.16	%		16.40	%		10.91	%		17.62	%
Core return on average tangible stockholders' equity (non-GAAP)(1)			14.95	%		15.15	%		17.22	%		11.12	%		18.08	%
Return on average total assets(1)			1.09	%		1.16	%		1.34	%		0.85	%		1.40	%
Core return on average total assets (non-GAAP)(1)			1.16	%		1.16	%		1.41	%		0.87	%		1.44	%
Return on average tangible assets (non-GAAP)(1)			1.14	%		1.21	%		1.41	%		0.89	%		1.47	%
Core return on average tangible assets (non-GAAP)(1)			1.21	%		1.21	%		1.48	%		0.91	%		1.51	%

			As of			As of			As of
			December 31,			September 30,			December 31,
			2020			2020			2019
Balance Sheet Data:
Total stockholders' equity			$	2,744,104		$	2,733,934		$	2,640,258
Less: goodwill				995,492			995,492			995,492
Tangible stockholders' equity			$	1,748,612		$	1,738,442		$	1,644,766
Total assets			$	22,662,831		$	22,310,701		$	20,166,734
Less: goodwill				995,492			995,492			995,492
Tangible assets			$	21,667,339		$	21,315,209		$	19,171,242
Shares outstanding				129,912,272			129,911,789			129,928,479
Total stockholders' equity to total assets				12.11	%		12.25	%		13.09	%
Tangible stockholders' equity to tangible assets (non-GAAP)				8.07	%		8.16	%		8.58	%
Book value per share			$	21.12		$	21.04		$	20.32
Tangible book value per share (non-GAAP)			$	13.46		$	13.38		$	12.66

____________________________
⁽¹⁾ Annualized for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019.

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)		2020				2020				2019				2020				2019
Net interest income		$	135,227			$	134,002			$	139,619			$	535,734			$	573,402
Core net interest income (non-GAAP)		$	135,227			$	134,002			$	139,619			$	535,734			$	573,402
Noninterest income		$	53,598			$	48,898			$	46,708			$	197,380			$	192,533
Losses (gains) on sale of securities			12				(24	)			123				114				2,715
Costs associated with the sale of stock(1)			4,828				—				4,500				4,828				4,500
Core noninterest income (non-GAAP)		$	58,438			$	48,874			$	51,331			$	202,322			$	199,748
Noninterest expense		$	88,127			$	91,629			$	91,058			$	367,672			$	370,437
One-time items(2)			—				—				(48	)			—				(2,814	)
Core noninterest expense (non-GAAP)		$	88,127			$	91,629			$	91,010			$	367,672			$	367,623
Net income		$	61,739			$	65,101			$	67,836			$	185,754			$	284,392
Losses (gains) on sale of securities			12				(24	)			123				114				2,715
Costs associated with the sale of stock(1)			4,828				—				4,500				4,828				4,500
One-time noninterest expense items(2)			—				—				48				—				2,814
Tax adjustments(3)			(1,291	)			6				(1,257	)			(1,318	)			(2,636	)
Total core adjustments			3,549				(18	)			3,414				3,624				7,393
Core net income (non-GAAP)		$	65,288			$	65,083			$	71,250			$	189,378			$	291,785
Basic earnings per share		$	0.48			$	0.50			$	0.52			$	1.43			$	2.14
Diluted earnings per share		$	0.47			$	0.50			$	0.52			$	1.43			$	2.13
Efficiency ratio			46.59		%		50.01		%		48.86		%		50.10		%		48.36		%
Core basic earnings per share (non-GAAP)		$	0.50			$	0.50			$	0.55			$	1.46			$	2.19
Core diluted earnings per share (non-GAAP)		$	0.50			$	0.50			$	0.54			$	1.45			$	2.19
Core efficiency ratio (non-GAAP)			45.43		%		50.02		%		47.65		%		49.77		%		47.55		%

____________________________
⁽¹⁾ Costs associated with the sale of stock for the three and twelve months ended December 31, 2020 and 2019 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, 2019 included losses 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 twelve months ended December 31, 2019 also included costs related to a nonrecurring payment for a former executive of the Company pursuant to the Bank’s Executive Change-in-Control Retention Plan and nonrecurring offering costs.

⁽³⁾ Represents the adjustments to net income, tax effected at the Company’s effective tax rate for the respective period.