First Hawaiian, Inc.

HONOLULU, April 23, 2025 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended March 31, 2025.

“I’m pleased to report that First Hawaiian Bank started 2025 with a solid quarter. Retail deposits continued to grow, net interest income rose from the prior quarter, expenses were well managed, and credit quality remained strong,” said Bob Harrison, Chairman, President, and CEO. “Despite the current economic uncertainty, our customers can be confident in the strength of our balance sheet, our solid capital position, and our deep roots in the community, which provide the stability and reliability that define us.”

On April 22, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on May 30, 2025, to stockholders of record at the close of business on May 19, 2025.

First Quarter 2025 Highlights:

Net income of $59.2 million, or $0.47 per diluted share Total loans and leases declined $115.2 million versus prior quarter Total deposits declined $106.4 million versus prior quarter Net interest margin increased 5 basis points to 3.08% Recorded a $10.5 million provision for credit losses Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet

Total assets were $23.7 billion at March 31, 2025 versus $23.8 billion at December 31, 2024.

Gross loans and leases were $14.3 billion as of March 31, 2025, a decrease of $115.2 million, or 0.8%, from $14.4 billion as of December 31, 2024.

Total deposits were $20.2 billion as of March 31, 2025, a decrease of $106.4 million, or 0.5%, from $20.3 billion as of December 31, 2024.

Net Interest Income

Net interest income for the first quarter of 2025 was $160.5 million, an increase of $1.8 million, or 1.1%, compared to $158.8 million for the prior quarter.

The net interest margin was 3.08% in the first quarter of 2025, an increase of 5 basis points compared to 3.03% in the prior quarter.

Provision Expense

During the quarter ended March 31, 2025, we recorded a $10.5 million provision for credit losses. In the quarter ended December 31, 2024, we recorded a $0.8 million negative provision for credit losses.

Noninterest Income

Noninterest income was $50.5 million in the first quarter of 2025, an increase of $21.1 million compared to noninterest income of $29.4 million in the prior quarter. Noninterest income in the fourth quarter of 2024 included a $26.2 million loss on the sale of investment securities.

Noninterest Expense

Noninterest expense was $123.6 million in the first quarter of 2025, a decrease of $0.6 million compared to noninterest expense of $124.1 million in the prior quarter.

Story Continues

The efficiency ratio was 58.2% and 65.5% for the quarters ended March 31, 2025 and December 31, 2024, respectively.

Taxes

The effective tax rate was 23.0% and 18.9% for the quarters ended March 31, 2025 and December 31, 2024, respectively.

Asset Quality

The allowance for credit losses was $166.6 million, or 1.17% of total loans and leases, as of March 31, 2025, compared to $160.4 million, or 1.11% of total loans and leases, as of December 31, 2024. The reserve for unfunded commitments was $33.3 million as of March 31, 2025, compared to $32.8 million as of December 31, 2024. Net charge-offs were $3.8 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended March 31, 2025, compared to net charge-offs of $3.4 million, or 0.09% of average loans and leases on an annualized basis, for the quarter ended December 31, 2024. Total non-performing assets were $20.2 million, or 0.14% of total loans and leases and other real estate owned, on March 31, 2025, compared to total non-performing assets of $20.7 million, or 0.14% of total loans and leases and other real estate owned, on December 31, 2024.

Capital

Total stockholders' equity was $2.6 billion on March 31, 2025 and December 31, 2024.

The tier 1 leverage, common equity tier 1 and total capital ratios were 9.01%, 12.93% and 14.17%, respectively, on March 31, 2025, compared with 9.14%, 12.80% and 13.99%, respectively, on December 31, 2024.

The Company repurchased 974 thousand shares of common stock at a total cost of $25.0 million under the stock repurchase program in the first quarter. The average cost was $25.66 per share repurchased.

First Hawaiian, Inc.

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

Conference Call Information

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

To access the call by phone, please register via the following link:
https://register-conf.media-server.com/register/BI13d3259b1b3b46188926f83e1bbe1316, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

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

Forward-Looking Statements

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

Use of Non-GAAP Financial Measures

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

Table 12 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.

Investor Relations Contact: 
Kevin Haseyama, CFA
(808) 525-6268
[email protected]  Media Contact:
Lindsay Chambers
(808) 525-6254
[email protected]

Financial Highlights  Table 1 For the Three Months Ended  March 31,   December 31,   March 31,  (dollars in thousands, except per share data)  2025  2024   2024  Operating Results:  Net interest income  $ 160,526  $ 158,753   $ 154,427  Provision (benefit) for credit losses   10,500   (750 )   6,300  Noninterest income   50,477   29,376    51,371  Noninterest expense   123,560   124,143    128,813  Net income   59,248   52,496    54,220  Basic earnings per share   0.47   0.41    0.42  Diluted earnings per share   0.47   0.41    0.42  Dividends declared per share   0.26   0.26    0.26  Dividend payout ratio   55.32 %  63.41  %  61.90 % Performance Ratios(1):  Net interest margin   3.08 %  3.03  %  2.91 % Efficiency ratio   58.22 %  65.51  %  62.15 % Return on average total assets   1.01 %  0.88  %  0.90 % Return on average tangible assets (non-GAAP)(2)   1.05 %  0.92  %  0.94 % Return on average total stockholders' equity   9.09 %  7.94  %  8.73 % Return on average tangible stockholders' equity (non-GAAP)(2)   14.59 %  12.78  %  14.53 % Average Balances:  Average loans and leases  $ 14,309,998  $ 14,276,107   $ 14,312,563  Average earning assets   21,169,194   21,079,951    21,481,890  Average assets   23,890,459   23,795,735    24,187,207  Average deposits   20,354,040   20,249,573    20,571,930  Average stockholders' equity   2,641,978   2,629,600    2,496,840  Market Value Per Share:  Closing   24.44   25.95    21.96  High   28.28   28.80    23.12  Low   23.95   22.08    20.37

As of  As of  As of  March 31,   December 31,   March 31,  (dollars in thousands, except per share data)  2025  2024  2024  Balance Sheet Data:  Loans and leases  $ 14,293,036  $ 14,408,258  $ 14,320,208  Total assets   23,744,958   23,828,186   24,279,186  Total deposits   20,215,816   20,322,216   20,669,481  Short-term borrowings   250,000   250,000   500,000  Total stockholders' equity   2,648,852   2,617,486   2,513,761   Per Share of Common Stock:  Book value  $ 21.07  $ 20.70  $ 19.66  Tangible book value (non-GAAP)(2)   13.15   12.83   11.88   Asset Quality Ratios:  Non-accrual loans and leases / total loans and leases   0.14 %  0.14 %  0.13 % Allowance for credit losses for loans and leases / total loans and leases   1.17 %  1.11 %  1.12 %  Capital Ratios:  Common Equity Tier 1 Capital Ratio   12.93 %  12.80 %  12.55 % Tier 1 Capital Ratio   12.93 %  12.80 %  12.55 % Total Capital Ratio   14.17 %  13.99 %  13.75 % Tier 1 Leverage Ratio   9.01 %  9.14 %  8.80 % Total stockholders' equity to total assets   11.16 %  10.98 %  10.35 % Tangible stockholders' equity to tangible assets (non-GAAP)(2)   7.27 %  7.10 %  6.52 %  Non-Financial Data:  Number of branches   48   48   50  Number of ATMs   273   273   275  Number of Full-Time Equivalent Employees   1,995   1,997   2,065

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

(2) Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 12, GAAP to Non-GAAP Reconciliation.

Consolidated Statements of Income  Table 2 For the Three Months Ended March 31,   December 31,   March 31,  (dollars in thousands, except per share amounts)  2025  2024   2024 Interest income  Loans and lease financing  $ 192,102  $ 198,347   $ 199,844 Available-for-sale investment securities   13,150   12,767    14,546 Held-to-maturity investment securities   16,647   17,071    17,793 Other   13,251   11,977    12,769 Total interest income   235,150   240,162    244,952 Interest expense  Deposits   71,709   78,465    84,143 Short-term borrowings   2,599   2,685    5,953 Other   316   259    429 Total interest expense   74,624   81,409    90,525 Net interest income   160,526   158,753    154,427 Provision (benefit) for credit losses   10,500   (750 )   6,300 Net interest income after provision (benefit) for credit losses   150,026   159,503    148,127 Noninterest income  Service charges on deposit accounts   7,535   7,968    7,546 Credit and debit card fees   14,474   14,834    16,173 Other service charges and fees   12,167   13,132    9,904 Trust and investment services income   9,370   9,449    10,354 Bank-owned life insurance   4,371   5,713    4,286 Investment securities gains (losses), net   37   (26,171 )   — Other   2,523   4,451    3,108 Total noninterest income   50,477   29,376    51,371 Noninterest expense  Salaries and employee benefits   60,104   59,003    59,262 Contracted services and professional fees   14,839   14,472    15,739 Occupancy   8,100   7,708    6,941 Equipment   13,871   14,215    13,413 Regulatory assessment and fees   3,823   3,745    8,120 Advertising and marketing   2,179   1,529    2,612 Card rewards program   7,919   7,926    8,508 Other   12,725   15,545    14,218 Total noninterest expense   123,560   124,143    128,813 Income before provision for income taxes   76,943   64,736    70,685 Provision for income taxes   17,695   12,240    16,465 Net income  $ 59,248  $ 52,496   $ 54,220 Basic earnings per share  $ 0.47  $ 0.41   $ 0.42 Diluted earnings per share  $ 0.47  $ 0.41   $ 0.42 Basic weighted-average outstanding shares   126,281,802   127,350,626    127,707,354 Diluted weighted-average outstanding shares   127,166,932   128,167,502    128,217,689

Consolidated Balance Sheets  Table 3 (dollars in thousands, except share amount)  March 31,
2025   December 31,
2024   March 31,
2024  Assets  Cash and due from banks  $ 240,738   $ 258,057   $ 202,121  Interest-bearing deposits in other banks   1,073,841    912,133    1,072,145  Investment securities:  Available-for-sale, at fair value (amortized cost: $2,091,034 as of March 31, 2025, $2,190,448 as of December 31, 2024 and $2,466,109 as of March 31, 2024)   1,858,428    1,926,516    2,159,338  Held-to-maturity, at amortized cost (fair value: $3,250,275 as of March 31, 2025, $3,262,509 as of December 31, 2024 and $3,470,710 as of March 31, 2024)   3,724,908    3,790,650    3,988,011  Loans held for sale   1,547    —    —  Loans and leases   14,293,036    14,408,258    14,320,208  Less: allowance for credit losses   166,612    160,393    159,836  Net loans and leases   14,126,424    14,247,865    14,160,372   Premises and equipment, net   292,576    288,530    281,181  Accrued interest receivable   78,973    79,979    85,715  Bank-owned life insurance   495,567    491,890    484,193  Goodwill   995,492    995,492    995,492  Mortgage servicing rights   4,926    5,078    5,533  Other assets   851,538    831,996    845,085  Total assets  $ 23,744,958   $ 23,828,186   $ 24,279,186  Liabilities and Stockholders' Equity  Deposits:  Interest-bearing  $ 13,330,265   $ 13,347,068   $ 13,620,928  Noninterest-bearing   6,885,551    6,975,148    7,048,553  Total deposits   20,215,816    20,322,216    20,669,481  Short-term borrowings   250,000    250,000    500,000  Retirement benefits payable   96,241    97,135    102,242  Other liabilities   534,049    541,349    493,702  Total liabilities   21,096,106    21,210,700    21,765,425   Stockholders' equity  Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 142,139,353 / 125,692,598 shares as of March 31, 2025, issued/outstanding: 141,748,847 / 126,422,898 shares as of December 31, 2024 and issued/outstanding: 141,687,612 / 127,841,908 shares as of March 31, 2024)   1,421    1,417    1,417  Additional paid-in capital   2,564,408    2,560,380    2,551,488  Retained earnings   960,337    934,048    858,494  Accumulated other comprehensive loss, net   (433,769 )   (463,994 )   (523,780 ) Treasury stock (16,446,755 shares as of March 31, 2025, 15,325,949 shares as of December 31, 2024 and 13,845,704 shares as of March 31, 2024)   (443,545 )   (414,365 )   (373,858 ) Total stockholders' equity   2,648,852    2,617,486    2,513,761  Total liabilities and stockholders' equity  $ 23,744,958   $ 23,828,186   $ 24,279,186

Average Balances and Interest Rates                        Table 4 Three Months Ended   Three Months Ended   Three Months Ended  March 31, 2025  December 31, 2024  March 31, 2024  Average  Income/  Yield/  Average  Income/  Yield/  Average  Income/  Yield/  (dollars in millions)  Balance  Expense  Rate  Balance  Expense  Rate  Balance  Expense  Rate  Earning Assets  Interest-Bearing Deposits in Other Banks  $ 1,171.1  $ 12.8  4.44 % $ 948.9  $ 11.3  4.75 % $ 858.6  $ 11.6  5.45 % Available-for-Sale Investment Securities  Taxable   1,891.4   13.2  2.79   1,987.7   12.7  2.56   2,210.6   14.5  2.63  Non-Taxable   1.4   —  5.52   1.4   —  5.30   1.8   —  5.61  Held-to-Maturity Investment Securities  Taxable   3,164.0   13.6  1.72   3,224.8   13.9  1.72   3,416.4   14.6  1.71  Non-Taxable   599.0   3.7  2.51   601.7   3.9  2.56   603.4   4.0  2.65  Total Investment Securities   5,655.8   30.5  2.16   5,815.6   30.5  2.10   6,232.2   33.1  2.13  Loans Held for Sale   0.3   —  6.28   1.3   —  5.75   0.7   —  6.92  Loans and Leases(1)  Commercial and industrial   2,196.8   33.6  6.20   2,157.8   35.2  6.50   2,164.9   37.2  6.92  Commercial real estate   4,420.1   66.5  6.10   4,333.1   68.9  6.33   4,323.5   70.1  6.53  Construction   937.0   15.4  6.67   990.7   17.4  6.99   924.7   17.4  7.55  Residential:  Residential mortgage   4,150.3   40.9  3.94   4,183.5   40.8  3.90   4,264.1   42.0  3.94  Home equity line   1,149.8   13.1  4.61   1,157.1   13.3  4.55   1,172.1   12.0  4.13  Consumer   1,019.5   18.9  7.53   1,033.2   19.0  7.29   1,083.5   18.1  6.71  Lease financing   436.5   4.3  3.99   420.7   4.4  4.18   379.8   3.7  3.91  Total Loans and Leases   14,310.0   192.7  5.44   14,276.1   199.0  5.55   14,312.6   200.5  5.63  Other Earning Assets   32.0   0.4  5.48   38.1   0.7  6.73   77.8   1.2  5.90  Total Earning Assets(2)   21,169.2   236.4  4.51   21,080.0   241.5  4.56   21,481.9   246.4  4.61  Cash and Due from Banks   235.9        226.2        244.3  Other Assets   2,485.4        2,489.5        2,461.0  Total Assets  $ 23,890.5       $ 23,795.7       $ 24,187.2   Interest-Bearing Liabilities  Interest-Bearing Deposits  Savings  $ 6,232.5  $ 21.3  1.38 % $ 5,940.3  $ 21.1  1.42 % $ 6,059.7  $ 23.4  1.56 % Money Market   3,922.2   23.0  2.38   4,053.6   26.6  2.61   3,944.9   28.8  2.94  Time   3,317.1   27.4  3.36   3,362.0   30.8  3.64   3,325.3   31.9  3.86  Total Interest-Bearing Deposits   13,471.8   71.7  2.16   13,355.9   78.5  2.34   13,329.9   84.1  2.54  Other Short-Term Borrowings   250.0   2.6  4.22   250.0   2.7  4.27   500.0   6.0  4.79  Other Interest-Bearing Liabilities   27.5   0.3  4.67   25.3   0.2  4.07   33.0   0.4  5.22  Total Interest-Bearing Liabilities   13,749.3   74.6  2.20   13,631.2   81.4  2.38   13,862.9   90.5  2.63  Net Interest Income     $ 161.8       $ 160.1       $ 155.9  Interest Rate Spread(3)        2.31 %       2.18 %       1.98 % Net Interest Margin(4)        3.08 %       3.03 %       2.91 % Noninterest-Bearing Demand Deposits   6,882.2        6,893.7        7,242.0  Other Liabilities   617.0        641.2        585.5  Stockholders' Equity   2,642.0        2,629.6        2,496.8  Total Liabilities and Stockholders' Equity  $ 23,890.5       $ 23,795.7       $ 24,187.2

(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 $1.2 million, $1.4 million and $1.5 million for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

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

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

Analysis of Change in Net Interest Income         Table 5 Three Months Ended March 31, 2025 Compared to December 31, 2024 (dollars in millions)  Volume  Rate  Total (1) Change in Interest Income:  Interest-Bearing Deposits in Other Banks  $ 2.3   $ (0.8 )  $ 1.5  Available-for-Sale Investment Securities  Taxable   (0.6 )   1.1    0.5  Held-to-Maturity Investment Securities  Taxable   (0.3 )   —    (0.3 ) Non-Taxable   —    (0.2 )   (0.2 ) Total Investment Securities   (0.9 )   0.9    —  Loans and Leases  Commercial and industrial   0.5    (2.1 )   (1.6 ) Commercial real estate   0.9    (3.3 )   (2.4 ) Construction   (1.1 )   (0.9 )   (2.0 ) Residential:  Residential mortgage   (0.3 )   0.4    0.1  Home equity line   (0.2 )   —    (0.2 ) Consumer   (0.4 )   0.3    (0.1 ) Lease financing   0.1    (0.2 )   (0.1 ) Total Loans and Leases   (0.5 )   (5.8 )   (6.3 ) Other Earning Assets   (0.1 )   (0.2 )   (0.3 ) Total Change in Interest Income   0.8    (5.9 )   (5.1 )  Change in Interest Expense:  Interest-Bearing Deposits  Savings   0.9    (0.7 )   0.2  Money Market   (1.0 )   (2.6 )   (3.6 ) Time   (0.5 )   (2.9 )   (3.4 ) Total Interest-Bearing Deposits   (0.6 )   (6.2 )   (6.8 ) Other Short-Term Borrowings   —    (0.1 )   (0.1 ) Other Interest-Bearing Liabilities   —    0.1    0.1  Total Change in Interest Expense   (0.6 )   (6.2 )   (6.8 ) Change in Net Interest Income  $ 1.4   $ 0.3   $ 1.7

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

Analysis of Change in Net Interest Income         Table 6 Three Months Ended March 31, 2025 Compared to March 31, 2024 (dollars in millions)  Volume  Rate  Total (1) Change in Interest Income:  Interest-Bearing Deposits in Other Banks  $ 3.7   $ (2.5 )  $ 1.2  Available-for-Sale Investment Securities  Taxable   (2.2 )   0.9    (1.3 ) Held-to-Maturity Investment Securities  Taxable   (1.1 )   0.1    (1.0 ) Non-Taxable   —    (0.3 )   (0.3 ) Total Investment Securities   (3.3 )   0.7    (2.6 ) Loans and Leases  Commercial and industrial   0.5    (4.1 )   (3.6 ) Commercial real estate   1.5    (5.1 )   (3.6 ) Construction   0.2    (2.2 )   (2.0 ) Residential:  Residential mortgage   (1.1 )   —    (1.1 ) Home equity line   (0.2 )   1.3    1.1  Consumer   (1.2 )   2.0    0.8  Lease financing   0.5    0.1    0.6  Total Loans and Leases   0.2    (8.0 )   (7.8 ) Other Earning Assets   (0.7 )   (0.1 )   (0.8 ) Total Change in Interest Income   (0.1 )   (9.9 )   (10.0 )  Change in Interest Expense:  Interest-Bearing Deposits  Savings   0.7    (2.8 )   (2.1 ) Money Market   (0.2 )   (5.6 )   (5.8 ) Time   (0.1 )   (4.4 )   (4.5 ) Total Interest-Bearing Deposits   0.4    (12.8 )   (12.4 ) Other Short-Term Borrowings   (2.7 )   (0.7 )   (3.4 ) Other Interest-Bearing Liabilities   (0.1 )   —    (0.1 ) Total Change in Interest Expense   (2.4 )   (13.5 )   (15.9 ) Change in Net Interest Income  $ 2.3   $ 3.6   $ 5.9

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

Loans and Leases         Table 7 March 31,   December 31,   March 31,  (dollars in thousands)  2025  2024  2024 Commercial and industrial  $ 2,261,394  $ 2,247,428  $ 2,189,875 Commercial real estate   4,367,433   4,463,992   4,301,300 Construction   954,072   918,326   972,517 Residential:  Residential mortgage   4,129,518   4,168,154   4,242,502 Home equity line   1,144,895   1,151,739   1,165,778 Total residential   5,274,413   5,319,893   5,408,280 Consumer   998,325   1,023,969   1,054,227 Lease financing   437,399   434,650   394,009 Total loans and leases  $ 14,293,036  $ 14,408,258  $ 14,320,208

Deposits         Table 8 March 31,   December 31,   March 31,  (dollars in thousands)  2025  2024  2024 Demand  $ 6,885,551  $ 6,975,148  $ 7,048,553 Savings   6,110,796   6,021,364   6,277,679 Money Market   3,865,203   4,027,334   4,059,204 Time   3,354,266   3,298,370   3,284,045 Total Deposits  $ 20,215,816  $ 20,322,216  $ 20,669,481

Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More         Table 9 March 31,   December 31,   March 31,  (dollars in thousands)  2025  2024  2024 Non-Performing Assets  Non-Accrual Loans and Leases  Commercial Loans:  Commercial and industrial  $ —  $ 329  $ 942 Commercial real estate   216   411   2,953 Construction   375   —   — Total Commercial Loans   591   740   3,895 Residential Loans:  Residential mortgage   12,809   12,768   7,777 Home equity line   6,788   7,171   6,345 Total Residential Loans   19,597   19,939   14,122 Total Non-Accrual Loans and Leases   20,188   20,679   18,017 Total Non-Performing Assets  $ 20,188  $ 20,679  $ 18,017  Accruing Loans and Leases Past Due 90 Days or More  Commercial Loans:  Commercial and industrial  $ 740  $ 1,432  $ 529 Construction   —   536   606 Total Commercial Loans   740   1,968   1,135 Residential mortgage   1,008   1,317   359 Consumer   2,554   2,734   2,126 Total Accruing Loans and Leases Past Due 90 Days or More  $ 4,302  $ 6,019  $ 3,620  Total Loans and Leases  $ 14,293,036  $ 14,408,258  $ 14,320,208

Allowance for Credit Losses and Reserve for Unfunded Commitments  Table 10 For the Three Months Ended  March 31,   December 31,   March 31,  (dollars in thousands)  2025   2024   2024  Balance at Beginning of Period  $ 193,240   $ 197,397   $ 192,138  Loans and Leases Charged-Off  Commercial and industrial   (1,459 )   (851 )   (909 )  Home equity line   (14 )   —    —  Consumer   (5,025 )   (4,774 )   (4,854 )  Total Loans and Leases Charged-Off   (6,498 )   (5,625 )   (5,763 )  Recoveries on Loans and Leases Previously Charged-Off  Commercial Loans:  Commercial and industrial   403    298    211  Commercial real estate   251    —    —  Total Commercial Loans   654    298    211  Residential Loans:  Residential mortgage   20    30    30  Home equity line   64    32    44  Total Residential Loans   84    62    74  Consumer   1,979    1,858    1,689  Total Recoveries on Loans and Leases Previously Charged-Off   2,717    2,218    1,974  Net Loans and Leases Charged-Off   (3,781 )   (3,407 )   (3,789 )  Provision (Benefit) for Credit Losses   10,500    (750 )   6,300  Balance at End of Period  $ 199,959   $ 193,240   $ 194,649  Components:  Allowance for Credit Losses  $ 166,612   $ 160,393   $ 159,836  Reserve for Unfunded Commitments   33,347    32,847    34,813  Total Allowance for Credit Losses and Reserve for Unfunded Commitments  $ 199,959   $ 193,240   $ 194,649  Average Loans and Leases Outstanding  $ 14,309,998   $ 14,276,107   $ 14,312,563  Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)   0.11  %  0.09  %  0.11  % Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding   1.17  %  1.11  %  1.12  % Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases   8.25x   7.76x   8.87x

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

Loans and Leases by Year of Origination and Credit Quality Indicator   Table 11 Revolving  Loans  Converted  Term Loans  Revolving  to Term  Amortized Cost Basis by Origination Year  Loans  Loans  Amortized  Amortized  (dollars in thousands)  2025  2024  2023  2022  2021  Prior  Cost Basis  Cost Basis  Total Commercial Lending  Commercial and Industrial  Risk rating:  Pass  $ 19,578  $ 173,435  $ 68,842  $ 172,494  $ 220,547  $ 268,053  $ 1,148,880  $ 20,009  $ 2,091,838 Special Mention   364   916   2,250   3,353   58   1,229   41,972   —   50,142 Substandard   —   —   —   7,948   26   1,238   24,836   —   34,048 Other (1)   8,099   12,828   7,983   6,045   2,255   2,105   46,051   —   85,366 Total Commercial and Industrial   28,041   187,179   79,075   189,840   222,886   272,625   1,261,739   20,009   2,261,394 Current period gross charge-offs   —   43   95   179   356   779   7   —   1,459  Commercial Real Estate  Risk rating:  Pass   105,358   291,863   384,491   796,202   632,631   1,889,571   100,071   7,645   4,207,832 Special Mention   —   8,979   2,235   7,483   41,397   22,702   11,747   —   94,543 Substandard   —   —   —   54,918   1,007   9,003   —   —   64,928 Other (1)   —   —   —   —   —   130   —   —   130 Total Commercial Real Estate   105,358   300,842   386,726   858,603   675,035   1,921,406   111,818   7,645   4,367,433 Current period gross charge-offs   —   —   —   —   —   —   —   —   —  Construction  Risk rating:  Pass   4,610   122,410   198,780   353,108   162,361   52,233   22,934   —   916,436 Special Mention   —   —   —   —   —   147   —   —   147 Other (1)   522   14,134   8,910   8,500   1,553   3,177   693   —   37,489 Total Construction   5,132   136,544   207,690   361,608   163,914   55,557   23,627   —   954,072 Current period gross charge-offs   —   —   —   —   —   —   —   —   —  Lease Financing  Risk rating:  Pass   69,731   94,965   99,259   56,228   13,304   98,262   —   —   431,749 Special Mention   —   —   226   —   195   —   —   —   421 Substandard   —   4,411   526   292   —   —   —   —   5,229 Total Lease Financing   69,731   99,376   100,011   56,520   13,499   98,262   —   —   437,399 Current period gross charge-offs   —   —   —   —   —   —   —   —   —  Total Commercial Lending  $ 208,262  $ 723,941  $ 773,502  $ 1,466,571  $ 1,075,334  $ 2,347,850  $ 1,397,184  $ 27,654  $ 8,020,298 Current period gross charge-offs  $ —  $ 43  $ 95  $ 179  $ 356  $ 779  $ 7  $ —  $ 1,459

(continued)

Revolving  Loans  Converted  Term Loans  Revolving  to Term  Amortized Cost Basis by Origination Year  Loans  Loans  (continued)                    Amortized  Amortized  (dollars in thousands)  2025  2024  2023  2022  2021  Prior  Cost Basis  Cost Basis  Total Residential Lending  Residential Mortgage  FICO:  740 and greater  $ 41,949  $ 161,436  $ 183,292  $ 482,310  $ 933,384  $ 1,578,605  $ —  $ —  $ 3,380,976 680 - 739   4,088   18,218   34,761   65,347   101,230   192,602   —   —   416,246 620 - 679   734   1,714   3,922   23,196   18,793   51,826   —   —   100,185 550 - 619   —   —   817   6,495   7,696   17,224   —   —   32,232 Less than 550   —   —   731   771   2,253   7,503   —   —   11,258 No Score (3)   —   13,199   6,330   16,757   9,837   50,065   —   —   96,188 Other (2)   759   8,020   11,914   16,416   14,182   37,781   3,361   —   92,433 Total Residential Mortgage   47,530   202,587   241,767   611,292   1,087,375   1,935,606   3,361   —   4,129,518 Current period gross charge-offs   —   —   —   —   —   —   —   —   —  Home Equity Line  FICO:  740 and greater   —   —   —   —   —   —   911,857   1,404   913,261 680 - 739   —   —   —   —   —   —   169,131   1,684   170,815 620 - 679   —   —   —   —   —   —   39,262   592   39,854 550 - 619   —   —   —   —   —   —   12,077   485   12,562 Less than 550   —   —   —   —   —   —   6,645   486   7,131 No Score (3)   —   —   —   —   —   —   1,272   —   1,272 Total Home Equity Line   —   —   —   —   —   —   1,140,244   4,651   1,144,895 Current period gross charge-offs   —   —   —   —   —   —   14   —   14  Total Residential Lending  $ 47,530  $ 202,587  $ 241,767  $ 611,292  $ 1,087,375  $ 1,935,606  $ 1,143,605  $ 4,651  $ 5,274,413 Current period gross charge-offs  $ —  $ —  $ —  $ —  $ —  $ —  $ 14  $ —  $ 14  Consumer Lending  FICO:  740 and greater   32,634   80,861   58,623   73,919   37,183   15,253   93,415   112   392,000 680 - 739   19,668   66,839   41,621   38,860   18,814   9,295   84,783   515   280,395 620 - 679   6,692   31,051   16,155   17,379   8,533   6,406   50,655   793   137,664 550 - 619   596   9,333   6,584   9,663   5,434   4,471   16,458   849   53,388 Less than 550   280   3,004   4,421   5,131   3,263   2,741   5,399   508   24,747 No Score (3)   750   821   95   30   —   18   35,238   194   37,146 Other (2)   201   —   —   257   600   1,044   70,883   —   72,985 Total Consumer Lending  $ 60,821  $ 191,909  $ 127,499  $ 145,239  $ 73,827  $ 39,228  $ 356,831  $ 2,971  $ 998,325 Current period gross charge-offs  $ —  $ 660  $ 481  $ 585  $ 270  $ 809  $ 1,883  $ 337  $ 5,025  Total Loans and Leases  $ 316,613  $ 1,118,437  $ 1,142,768  $ 2,223,102  $ 2,236,536  $ 4,322,684  $ 2,897,620  $ 35,276  $ 14,293,036 Current period gross charge-offs  $ —  $ 703  $ 576  $ 764  $ 626  $ 1,588  $ 1,904  $ 337  $ 6,498

(1) Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score (680 and above). As of March 31, 2025, the majority of the loans in this population were current.

(2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. As of March 31, 2025, the majority of the loans in this population were current.

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

GAAP to Non-GAAP Reconciliation  Table 12 For the Three Months Ended  March 31,   December 31,   March 31,  (dollars in thousands)  2025  2024  2024  Income Statement Data:  Net income  $ 59,248  $ 52,496  $ 54,220   Average total stockholders' equity  $ 2,641,978  $ 2,629,600  $ 2,496,840  Less: average goodwill   995,492   995,492   995,492  Average tangible stockholders' equity  $ 1,646,486  $ 1,634,108  $ 1,501,348   Average total assets  $ 23,890,459  $ 23,795,735  $ 24,187,207  Less: average goodwill   995,492   995,492   995,492  Average tangible assets  $ 22,894,967  $ 22,800,243  $ 23,191,715   Return on average total stockholders' equity(1)   9.09 %  7.94 %  8.73 % Return on average tangible stockholders' equity (non-GAAP)(1)   14.59 %  12.78 %  14.53 %  Return on average total assets(1)   1.01 %  0.88 %  0.90 % Return on average tangible assets (non-GAAP)(1)   1.05 %  0.92 %  0.94 %

As of  As of  As of  March 31,   December 31,   March 31,  (dollars in thousands, except per share amounts)  2025  2024  2024  Balance Sheet Data:  Total stockholders' equity  $ 2,648,852  $ 2,617,486  $ 2,513,761  Less: goodwill   995,492   995,492   995,492  Tangible stockholders' equity  $ 1,653,360  $ 1,621,994  $ 1,518,269   Total assets  $ 23,744,958  $ 23,828,186  $ 24,279,186  Less: goodwill   995,492   995,492   995,492  Tangible assets  $ 22,749,466  $ 22,832,694  $ 23,283,694   Shares outstanding   125,692,598   126,422,898   127,841,908   Total stockholders' equity to total assets   11.16 %  10.98 %  10.35 % Tangible stockholders' equity to tangible assets (non-GAAP)   7.27 %  7.10 %  6.52 %  Book value per share  $ 21.07  $ 20.70  $ 19.66  Tangible book value per share (non-GAAP)  $ 13.15  $ 12.83  $ 11.88

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

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