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

HONOLULU, Oct. 23, 2020 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended September 30, 2020.

“In spite of the current economic environment, we reported solid financial results for the third quarter,” said Bob Harrison, Chairman, President and CEO. “These are still challenging times, but the re-opening of the local economy, and more recently, the pre-testing program for trans-Pacific travel, are important steps toward the state’s economic recovery.”

On October 21, 2020 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on December 4, 2020 to stockholders of record at the close of business on November 23, 2020.

Third Quarter 2020 Highlights:

• Net income of $65.1 million, or $0.50 per diluted share
• Net interest income increased $6.2 million, or 4.8% versus prior quarter
• Noninterest income increased $3.2 million, or 7.1% versus prior quarter
• Consumer and commercial deposits increased $166.0 million and public deposits decreased $629.9 million versus the prior quarter
• Net interest margin (“NIM”) was 2.70%, a 12 basis point increase versus the prior quarter
• Recorded a $5.1 million provision for credit losses
• Board of Directors declared a quarterly dividend of $0.26 per share
  

Balance Sheet

Total assets were $22.3 billion as of September 30, 2020, compared to $23.0 billion as of June 30, 2020.

Gross loans and leases were $13.5 billion as of September 30, 2020, a decrease of $264.1 million, or 1.9%, from $13.8 billion as of June 30, 2020.

Total deposits were $18.9 billion as of September 30, 2020, a decrease of $463.9 million, or 2.4%, from $19.4 billion as of June 30, 2020.

Net Interest Income

Net interest income for the third quarter of 2020 was $134.0 million, an increase of $6.2 million, or 4.8%, compared to $127.8 million for the prior quarter.

The NIM was 2.70% in the third quarter of 2020, an increase of 12 basis points compared to 2.58% in the second quarter of 2020.

Provision Expense

During the quarter ended September 30, 2020, the Bank recorded a total provision for credit losses of $5.1 million. In the quarter ended June 30, 2020, the total provision for credit losses was $55.4 million.

Noninterest Income

Noninterest income was $48.9 million in the third quarter of 2020, an increase of $3.2 million compared to noninterest income of $45.7 million in the second quarter of 2020.

Noninterest Expense

Noninterest expense was $91.6 million in the third quarter of 2020, essentially unchanged from $91.5 million in the second quarter of 2020.

The efficiency ratio was 50.0% and 52.7% for the quarters ended September 30, 2020 and June 30, 2020, respectively.

Taxes

The effective tax rate was 24.5% for the quarter ended September 30, 2020 and 24.6% for the quarter ended June 30, 2020.

Asset Quality

The allowance for credit losses was $195.9 million, or 1.45% of total loans and leases, as of September 30, 2020, compared to $192.1 million, or 1.40% of total loans and leases, as of June 30, 2020. The reserve for unfunded commitments was $24.6 million as of September 30, 2020 compared to $23.2 million as of June 30, 2020. Net recoveries were $0.1 million, or 0.0% of average loans and leases on an annualized basis for the quarter ended September 30, 2020, compared to $23.4 million, or 0.67% of average loans and leases on an annualized basis for the quarter ended June 30, 2020. Total non-performing assets were $17.6 million, or 0.13% of total loans and leases and other real estate owned, at September 30, 2020, compared to non-performing assets of $33.3 million, or 0.24% of total loans and leases and other real estate owned, at June 30, 2020.

Capital

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

The tier 1 leverage, common equity tier 1 and total capital ratios were 7.91%, 12.22% and 13.47%, respectively, at September 30, 2020, compared with 7.75%, 11.86% and 13.11%, respectively, at June 30, 2020.

The Company suspended its stock repurchase program during the first quarter and did not repurchase any shares of common stock in the third 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, 7:00 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: 5358159. 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 October 30, 2020. Access the replay by dialing [phone] or [phone] and entering the conference ID: 5358159.

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 and June 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 Nine Months Ended
		September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share data)		2020			2020			2019			2020			2019
Operating Results:
Net interest income		$	134,002		$	127,822		$	143,081		$	400,507		$	433,783
Provision for credit losses			5,072			55,446			—			101,718			9,550
Noninterest income			48,898			45,656			49,980			143,782			145,825
Noninterest expense			91,629			91,450			93,466			279,545			279,379
Net income			65,101			20,049			74,199			124,015			216,556
Basic earnings per share			0.50			0.15			0.56			0.95			1.62
Diluted earnings per share			0.50			0.15			0.56			0.95			1.61
Dividends declared per share			0.26			0.26			0.26			0.78			0.78
Dividend payout ratio			52.00	%		173.33	%		46.43	%		82.11	%		48.45	%
Supplemental Income Statement Data (non-GAAP):
Core net interest income		$	134,002		$	127,822		$	143,081		$	400,507		$	433,783
Core noninterest income			48,874			45,867			49,980			143,884			148,417
Core noninterest expense			91,629			91,450			91,222			279,545			276,613
Core net income			65,083			20,204			75,871			124,090			220,535
Core basic earnings per share			0.50			0.16			0.57			0.96			1.65
Core diluted earnings per share			0.50			0.16			0.57			0.95			1.64
Performance Ratio(1):
Net interest margin			2.70	%		2.58	%		3.19	%		2.79	%		3.22	%
Core net interest margin (non-GAAP)			2.70	%		2.58	%		3.19	%		2.79	%		3.22	%
Efficiency ratio			50.01	%		52.70	%		48.41	%		51.32	%		48.20	%
Core efficiency ratio (non-GAAP)			50.02	%		52.64	%		47.25	%		51.31	%		47.51	%
Return on average total assets			1.16	%		0.36	%		1.45	%		0.76	%		1.42	%
Core return on average total assets (non-GAAP)			1.16	%		0.36	%		1.48	%		0.76	%		1.44	%
Return on average tangible assets (non-GAAP)			1.21	%		0.38	%		1.52	%		0.80	%		1.49	%
Core return on average tangible assets (non-GAAP)(2)			1.21	%		0.38	%		1.56	%		0.80	%		1.52	%
Return on average total stockholders' equity			9.58	%		2.99	%		11.12	%		6.16	%		11.13	%
Core return on average total stockholders' equity (non-GAAP)			9.57	%		3.01	%		11.37	%		6.17	%		11.34	%
Return on average tangible stockholders' equity (non-GAAP)			15.16	%		4.74	%		17.81	%		9.79	%		18.04	%
Core return on average tangible stockholders’ equity (non-GAAP)(3)			15.15	%		4.77	%		18.21	%		9.80	%		18.37	%
Average Balances:
Average loans and leases		$	13,559,367		$	13,956,669		$	13,032,349		$	13,569,119		$	13,105,086
Average earning assets			19,846,674			19,854,795			17,862,564			19,174,349			17,974,363
Average assets			22,341,485			22,341,654			20,332,457			21,667,948			20,405,261
Average deposits			18,892,033			18,540,394			16,573,796			17,995,196			16,700,366
Average stockholders' equity			2,704,129			2,697,775			2,648,428			2,687,632			2,600,259
Market Value Per Share:
Closing			14.47			17.24			26.70			14.47			26.70
High			18.96			21.50			27.84			31.25			28.20
Low			14.32			13.56			24.25			13.56			22.13

		As of			As of			As of			As of
		September 30,			June 30,			December 31,			September 30,
		2020			2020			2019			2019
Balance Sheet Data:
Loans and leases		$	13,499,969		$	13,764,030		$	13,211,650		$	12,843,396
Total assets			22,310,701			22,993,715			20,166,734			20,598,220
Total deposits			18,897,762			19,361,634			16,444,994			16,857,246
Short-term borrowings			—			200,000			400,000			400,000
Long-term borrowings			200,010			200,019			200,019			200,018
Total stockholders' equity			2,733,934			2,701,897			2,640,258			2,654,558
Per Share of Common Stock:
Book value		$	21.04		$	20.81		$	20.32		$	20.22
Tangible book value (non-GAAP)(4)			13.38			13.14			12.66			12.64
Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases			0.13	%		0.24	%		0.04	%		0.03	%
Allowance for credit losses for loans and leases / total loans and leases			1.45	%		1.40	%		0.99	%		1.04	%
Capital Ratios:
Common Equity Tier 1 Capital Ratio			12.22	%		11.86	%		11.88	%		12.15	%
Tier 1 Capital Ratio			12.22	%		11.86	%		11.88	%		12.15	%
Total Capital Ratio			13.47	%		13.11	%		12.81	%		13.11	%
Tier 1 Leverage Ratio			7.91	%		7.75	%		8.79	%		8.68	%
Total stockholders' equity to total assets			12.25	%		11.75	%		13.09	%		12.89	%
Tangible stockholders' equity to tangible assets (non-GAAP)			8.16	%		7.76	%		8.58	%		8.46	%
Non-Financial Data:
Number of branches			58			58			58			58
Number of ATMs			302			295			301			293
Number of Full-Time Equivalent Employees			2,099			2,100			2,092			2,099

---

(1)	Except for the efficiency ratio and the core efficiency ratio, amounts are annualized for the three and nine months ended September 30, 2020 and 2019 and the three months ended June 30, 2020.
(2)	Core return on average tangible assets is a non-GAAP financial measure. We compute our core return on average tangible assets as the ratio of core net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.
(3)	Core return on average tangible stockholders’ equity is a non-GAAP financial measure. We compute our core return on average tangible stockholders’ equity as the ratio of core net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.
(4)	Tangible book value is a non-GAAP financial measure. We compute our tangible book value as the ratio of tangible stockholders’ equity to shares outstanding. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.

Consolidated Statements of Income		Table 2
		For the Three Months Ended										For the Nine Months Ended
		September 30,			June 30,				September 30,			September 30,
(dollars in thousands, except per share amounts)		2020			2020				2019			2020				2019
Interest income
Loans and lease financing		$	120,940		$	122,298			$	144,691		$	378,209			$	435,980
Available-for-sale securities			20,317			17,529				22,256			59,056				71,526
Other			670			792				3,234			3,813				9,054
Total interest income			141,927			140,619				170,181			441,078				516,560
Interest expense
Deposits			6,227			8,583				22,753			30,410				69,643
Short-term and long-term borrowings			1,698			4,214				4,347			10,161				13,134
Total interest expense			7,925			12,797				27,100			40,571				82,777
Net interest income			134,002			127,822				143,081			400,507				433,783
Provision for credit losses			5,072			55,446				—			101,718				9,550
Net interest income after provision for credit losses			128,930			72,376				143,081			298,789				424,233
Noninterest income
Service charges on deposit accounts			6,523			5,927				8,554			21,400				24,737
Credit and debit card fees			14,049			10,870				16,839			39,868				50,123
Other service charges and fees			9,021			7,912				8,903			25,472				27,435
Trust and investment services income			8,664			8,664				8,698			26,919				26,247
Bank-owned life insurance			4,903			4,432				5,743			11,595				12,946
Investment securities gains (losses), net			24			(211	)			—			(102	)			(2,592	)
Other			5,714			8,062				1,243			18,630				6,929
Total noninterest income			48,898			45,656				49,980			143,782				145,825
Noninterest expense
Salaries and employee benefits			44,291			42,414				44,955			131,534				132,000
Contracted services and professional fees			15,073			15,478				14,649			46,606				42,597
Occupancy			6,921			7,302				7,250			21,466				21,522
Equipment			5,137			5,207				4,024			15,052				12,852
Regulatory assessment and fees			2,445			2,100				1,992			6,491				5,588
Advertising and marketing			1,374			1,402				1,647			4,599				5,593
Card rewards program			5,046			5,163				6,930			17,224				21,326
Other			11,342			12,384				12,019			36,573				37,901
Total noninterest expense			91,629			91,450				93,466			279,545				279,379
Income before provision for income taxes			86,199			26,582				99,595			163,026				290,679
Provision for income taxes			21,098			6,533				25,396			39,011				74,123
Net income		$	65,101		$	20,049			$	74,199		$	124,015			$	216,556
Basic earnings per share		$	0.50		$	0.15			$	0.56		$	0.95			$	1.62
Diluted earnings per share		$	0.50		$	0.15			$	0.56		$	0.95			$	1.61
Basic weighted-average outstanding shares			129,896,054			129,856,730				132,583,902			129,882,878				133,957,192
Diluted weighted-average outstanding shares			130,085,534			130,005,195				132,877,769			130,129,690				134,231,762

Consolidated Balance Sheets		Table 3
		September 30,				June 30,				December 31,				September 30,
(dollars in thousands)		2020				2020				2019				2019
Assets
Cash and due from banks		$	333,744			$	347,592			$	360,375			$	358,863
Interest-bearing deposits in other banks			482,585				1,507,630				333,642				985,154
Investment securities, at fair value (amortized cost: $5,584,556 as of September 30, 2020, $5,025,433 as of June 30, 2020, $4,080,663 as of December 31, 2019 and $4,143,124 as of September 30, 2019)			5,692,883				5,135,775				4,075,644				4,157,082
Loans held for sale			34,669				6,698				904				1,594
Loans and leases			13,499,969				13,764,030				13,211,650				12,843,396
Less: allowance for credit losses			195,876				192,120				130,530				132,964
Net loans and leases			13,304,093				13,571,910				13,081,120				12,710,432
Premises and equipment, net			321,229				322,919				316,885				315,309
Other real estate owned and repossessed personal property			—				446				319				82
Accrued interest receivable			66,005				58,420				45,239				44,671
Bank-owned life insurance			462,422				458,720				453,873				453,410
Goodwill			995,492				995,492				995,492				995,492
Mortgage servicing rights			10,922				11,595				12,668				13,630
Other assets			606,657				576,518				490,573				562,501
Total assets		$	22,310,701			$	22,993,715			$	20,166,734			$	20,598,220
Liabilities and Stockholders' Equity
Deposits:
Interest-bearing		$	11,989,492			$	12,481,543			$	10,564,922			$	11,136,424
Noninterest-bearing			6,908,270				6,880,091				5,880,072				5,720,822
Total deposits			18,897,762				19,361,634				16,444,994				16,857,246
Short-term borrowings			—				200,000				400,000				400,000
Long-term borrowings			200,010				200,019				200,019				200,018
Retirement benefits payable			138,806				138,624				138,222				128,442
Other liabilities			340,189				391,541				343,241				357,956
Total liabilities			19,576,767				20,291,818				17,526,476				17,943,662
Stockholders' equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,190,428 / 129,911,789 shares as of September 30, 2020, issued/outstanding: 140,140,542 / 129,866,898 shares as of June 30, 2020, issued/outstanding: 139,917,150 / 129,928,479 shares as of December 31, 2019 and issued/outstanding: 139,908,699 / 131,260,900 shares as of September 30, 2019)			1,402				1,401				1,399				1,399
Additional paid-in capital			2,511,849				2,509,271				2,503,677				2,501,324
Retained earnings			446,315				415,296				437,072				403,317
Accumulated other comprehensive income (loss), net			51,254				52,731				(31,749	)			(18,774	)
Treasury stock (10,278,639 shares as of September 30, 2020, 10,273,644 shares as of June 30, 2020, 9,988,671 shares as of December 31, 2019 and 8,647,799 shares as of September 30, 2019)			(276,886	)			(276,802	)			(270,141	)			(232,708	)
Total stockholders' equity			2,733,934				2,701,897				2,640,258				2,654,558
Total liabilities and stockholders' equity		$	22,310,701			$	22,993,715			$	20,166,734			$	20,598,220

Average Balances and Interest Rates																							Table 4
		Three Months Ended								Three Months Ended								Three Months Ended
		September 30, 2020								June 30, 2020								September 30, 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		$	889.6		$	0.2		0.10	%	$	1,436.2		$	0.4		0.10	%	$	447.8		$	2.3		2.02	%
Available-for-Sale Investment Securities			5,334.2			20.3		1.53			4,390.4			17.5		1.60			4,296.3			22.3		2.07
Loans Held for Sale			10.2			0.1		2.67			9.8			0.1		2.93			1.4			—		2.36
Loans and Leases(1)
Commercial and industrial			3,230.4			21.6		2.67			3,601.0			24.3		2.71			2,885.9			30.0		4.12
Commercial real estate			3,418.0			27.8		3.23			3,438.8			28.3		3.31			3,294.7			37.3		4.49
Construction			637.6			5.2		3.22			584.1			4.9		3.35			477.2			5.6		4.67
Residential:
Residential mortgage			3,680.5			37.9		4.12			3,682.7			35.7		3.88			3,644.9			38.6		4.23
Home equity line			871.1			6.6		3.02			885.2			6.8		3.07			912.8			8.6		3.74
Consumer			1,474.4			20.2		5.46			1,526.5			20.6		5.42			1,651.4			23.3		5.61
Lease financing			247.4			1.8		2.90			238.4			1.7		2.88			165.4			1.3		3.14
Total Loans and Leases			13,559.4			121.1		3.56			13,956.7			122.3		3.52			13,032.3			144.7		4.41
Other Earning Assets			53.3			0.5		3.32			61.7			0.4		2.79			84.8			0.9		4.47
Total Earning Assets(2)			19,846.7			142.2		2.86			19,854.8			140.7		2.84			17,862.6			170.2		3.79
Cash and Due from Banks			307.9								295.1								341.7
Other Assets			2,186.9								2,191.8								2,128.2
Total Assets		$	22,341.5							$	22,341.7							$	20,332.5
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings		$	5,768.3		$	0.6		0.04	%	$	5,501.9		$	0.9		0.07	%		4,891.5		$	4.6		0.37	%
Money Market			3,288.2			0.4		0.05			3,270.3			1.1		0.13			3,067.4			7.1		0.92
Time			3,029.8			5.2		0.69			3,335.6			6.6		0.79			2,872.6			11.1		1.54
Total Interest-Bearing Deposits			12,086.3			6.2		0.20			12,107.8			8.6		0.29			10,831.5			22.8		0.83
Short-Term Borrowings			45.1			0.3		2.69			395.6			2.8		2.88			370.0			2.6		2.84
Long-Term Borrowings			200.0			1.4		2.77			200.0			1.4		2.77			239.1			1.7		2.82
Total Interest-Bearing Liabilities			12,331.4			7.9		0.26			12,703.4			12.8		0.41			11,440.6			27.1		0.94
Net Interest Income					$	134.3							$	127.9							$	143.1
Interest Rate Spread								2.60	%							2.43	%							2.85	%
Net Interest Margin								2.70	%							2.58	%							3.19	%
Noninterest-Bearing Demand Deposits			6,805.7								6,432.6								5,742.3
Other Liabilities			500.3								507.9								501.2
Stockholders' Equity			2,704.1								2,697.8								2,648.4
Total Liabilities and Stockholders' Equity		$	22,341.5							$	22,341.7							$	20,332.5

 

---

(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, $0.1 million and nil for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively.

Average Balances and Interest Rates																Table 5
		Nine Months Ended								Nine Months Ended
		September 30, 2020								September 30, 2019
		Average			Income/			Yield/		Average			Income/			Yield/
(dollars in millions)		Balance			Expense			Rate		Balance			Expense			Rate
Earning Assets
Interest-Bearing Deposits in Other Banks		$	947.3		$	2.2		0.31	%	$	400.6		$	6.9		2.31	%
Available-for-Sale Investment Securities			4,588.7			59.1		1.72			4,383.6			71.5		2.18
Loans Held for Sale			11.9			0.2		2.31			0.8			—		2.52
Loans and Leases(1)
Commercial and industrial			3,202.4			70.5		2.94			3,094.8			97.5		4.21
Commercial real estate			3,423.9			90.7		3.54			3,129.8			108.1		4.62
Construction			586.9			15.8		3.59			565.2			20.0		4.73
Residential:
Residential mortgage			3,700.8			111.3		4.01			3,590.2			112.4		4.17
Home equity line			881.2			21.1		3.20			912.4			25.9		3.79
Consumer			1,537.5			63.9		5.55			1,658.7			68.5		5.52
Lease financing			236.4			5.1		2.90			154.0			3.6		3.15
Total Loans and Leases			13,569.1			378.4		3.72			13,105.1			436.0		4.44
Other Earning Assets			57.3			1.6		3.78			84.3			2.2		3.37
Total Earning Assets(2)			19,174.3			441.5		3.07			17,974.4			516.6		3.84
Cash and Due from Banks			310.1								348.1
Other Assets			2,183.5								2,082.8
Total Assets		$	21,667.9							$	20,405.3
Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings		$	5,454.7		$	4.7		0.12	%	$	4,806.0		$	12.8		0.35	%
Money Market			3,208.1			6.1		0.25			3,125.5			22.1		0.95
Time			2,966.9			19.6		0.88			2,999.0			34.8		1.55
Total Interest-Bearing Deposits			11,629.7			30.4		0.35			10,930.5			69.7		0.85
Short-Term Borrowings			279.9			6.0		2.87			145.7			3.0		2.76
Long-Term Borrowings			200.0			4.2		2.77			476.2			10.1		2.84
Total Interest-Bearing Liabilities			12,109.6			40.6		0.45			11,552.4			82.8		0.96
Net Interest Income					$	400.9							$	433.8
Interest Rate Spread								2.62	%							2.88	%
Net Interest Margin								2.79	%							3.22	%
Noninterest-Bearing Demand Deposits			6,365.5								5,769.9
Other Liabilities			505.2								482.7
Stockholders' Equity			2,687.6								2,600.3
Total Liabilities and Stockholders' Equity		$	21,667.9							$	20,405.3

---

(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 $0.4 million and nil for the nine months ended September 30, 2020 and 2019, respectively.

Analysis of Change in Net Interest Income											Table 6
		Three Months Ended September 30, 2020
		Compared to June 30, 2020
(dollars in millions)		Volume				Rate				Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	(0.2	)		$	—			$	(0.2	)
Available-for-Sale Investment Securities			3.6				(0.8	)			2.8
Loans and Leases
Commercial and industrial			(2.3	)			(0.4	)			(2.7	)
Commercial real estate			(0.1	)			(0.4	)			(0.5	)
Construction			0.5				(0.2	)			0.3
Residential:
Residential mortgage			—				2.2				2.2
Home equity line			(0.1	)			(0.1	)			(0.2	)
Consumer			(0.6	)			0.2				(0.4	)
Lease financing			0.1				—				0.1
Total Loans and Leases			(2.5	)			1.3				(1.2	)
Other Earning Assets			—				0.1				0.1
Total Change in Interest Income			0.9				0.6				1.5
Change in Interest Expense:
Interest-Bearing Deposits
Savings			0.1				(0.4	)			(0.3	)
Money Market			—				(0.7	)			(0.7	)
Time			(0.6	)			(0.8	)			(1.4	)
Total Interest-Bearing Deposits			(0.5	)			(1.9	)			(2.4	)
Short-Term Borrowings			(2.3	)			(0.2	)			(2.5	)
Total Change in Interest Expense			(2.8	)			(2.1	)			(4.9	)
Change in Net Interest Income		$	3.7			$	2.7			$	6.4

Analysis of Change in Net Interest Income											Table 7
		Three Months Ended September 30, 2020
		Compared to September 30, 2019
(dollars in millions)		Volume				Rate				Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	1.1			$	(3.2	)		$	(2.1	)
Available-for-Sale Investment Securities			4.6				(6.6	)			(2.0	)
Loans Held for Sale			0.1				—				0.1
Loans and Leases
Commercial and industrial			3.2				(11.6	)			(8.4	)
Commercial real estate			1.3				(10.8	)			(9.5	)
Construction			1.6				(2.0	)			(0.4	)
Residential:
Residential mortgage			0.4				(1.1	)			(0.7	)
Home equity line			(0.4	)			(1.6	)			(2.0	)
Consumer			(2.5	)			(0.6	)			(3.1	)
Lease financing			0.6				(0.1	)			0.5
Total Loans and Leases			4.2				(27.8	)			(23.6	)
Other Earning Assets			(0.3	)			(0.1	)			(0.4	)
Total Change in Interest Income			9.7				(37.7	)			(28.0	)
Change in Interest Expense:
Interest-Bearing Deposits
Savings			0.7				(4.7	)			(4.0	)
Money Market			0.4				(7.1	)			(6.7	)
Time			0.6				(6.5	)			(5.9	)
Total Interest-Bearing Deposits			1.7				(18.3	)			(16.6	)
Short-Term Borrowings			(2.2	)			(0.1	)			(2.3	)
Long-Term Borrowings			(0.3	)			—				(0.3	)
Total Change in Interest Expense			(0.8	)			(18.4	)			(19.2	)
Change in Net Interest Income		$	10.5			$	(19.3	)		$	(8.8	)

Analysis of Change in Net Interest Income											Table 8
		Nine Months Ended September 30, 2020
		Compared to September 30, 2019
(dollars in millions)		Volume				Rate				Total
Change in Interest Income:
Interest-Bearing Deposits in Other Banks		$	4.5			$	(9.2	)		$	(4.7	)
Available-for-Sale Investment Securities			3.2				(15.6	)			(12.4	)
Loans Held for Sale			0.2				—				0.2
Loans and Leases
Commercial and industrial			3.3				(30.3	)			(27.0	)
Commercial real estate			9.5				(26.9	)			(17.4	)
Construction			0.8				(5.0	)			(4.2	)
Residential:
Residential mortgage			3.3				(4.4	)			(1.1	)
Home equity line			(0.9	)			(3.9	)			(4.8	)
Consumer			(5.0	)			0.4				(4.6	)
Lease financing			1.8				(0.3	)			1.5
Total Loans and Leases			12.8				(70.4	)			(57.6	)
Other Earning Assets			(0.8	)			0.2				(0.6	)
Total Change in Interest Income			19.9				(95.0	)			(75.1	)
Change in Interest Expense:
Interest-Bearing Deposits
Savings			1.4				(9.5	)			(8.1	)
Money Market			0.6				(16.6	)			(16.0	)
Time			(0.4	)			(14.8	)			(15.2	)
Total Interest-Bearing Deposits			1.6				(40.9	)			(39.3	)
Short-Term Borrowings			2.9				0.1				3.0
Long-Term Borrowings			(5.7	)			(0.2	)			(5.9	)
Total Change in Interest Expense			(1.2	)			(41.0	)			(42.2	)
Change in Net Interest Income		$	21.1			$	(54.0	)		$	(32.9	)

Loans and Leases												Table 9
		September 30,			June 30,			December 31,			September 30,
(dollars in thousands)		2020			2020			2019			2019
Commercial and industrial		$	3,170,262		$	3,423,708		$	2,743,242		$	2,654,077
Commercial real estate			3,461,085			3,423,499			3,463,953			3,309,389
Construction			662,871			617,935			519,241			486,977
Residential:
Residential mortgage			3,669,051			3,691,950			3,768,936			3,671,424
Home equity line			864,789			876,491			893,239			916,106
Total residential			4,533,840			4,568,441			4,662,175			4,587,530
Consumer			1,425,934			1,492,160			1,620,556			1,637,549
Lease financing			245,977			238,287			202,483			167,874
Total loans and leases		$	13,499,969		$	13,764,030		$	13,211,650		$	12,843,396

Deposits												Table 10
		September 30,			June 30,			December 31,			September 30,
(dollars in thousands)		2020			2020			2019			2019
Demand		$	6,908,270		$	6,880,091		$	5,880,072		$	5,720,822
Savings			5,994,687			5,727,367			4,998,933			4,899,468
Money Market			3,379,985			3,247,511			3,055,832			3,529,363
Time			2,614,820			3,506,665			2,510,157			2,707,593
Total Deposits		$	18,897,762		$	19,361,634		$	16,444,994		$	16,857,246

Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More												Table 11
		September 30,			June 30,			December 31,			September 30,
(dollars in thousands)		2020			2020			2019			2019
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial		$	725		$	11,559		$	32		$	12
Commercial real estate			7,067			13,168			30			33
Construction			2,043			2,043			—			—
Total Commercial Loans			9,835			26,770			62			45
Residential Loans:
Residential mortgage			7,798			6,059			5,406			3,959
Total Residential Loans			7,798			6,059			5,406			3,959
Consumer			—			—			—			200
Total Non-Accrual Loans and Leases			17,633			32,829			5,468			4,204
Other Real Estate Owned			—			446			319			82
Total Non-Performing Assets		$	17,633		$	33,275		$	5,787		$	4,286
Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial		$	1,938		$	2,309		$	1,429		$	750
Commercial real estate			1,307			900			1,013			—
Construction			100			248			2,367			—
Total Commercial Loans			3,345			3,457			4,809			750
Residential Loans:
Residential mortgage			—			—			74			139
Home equity line			4,503			4,496			2,995			3,192
Total Residential Loans			4,503			4,496			3,069			3,331
Consumer			2,897			2,167			4,272			3,076
Total Accruing Loans and Leases Past Due 90 Days or More		$	10,745		$	10,120		$	12,150		$	7,157
Restructured Loans on Accrual Status and Not Past Due 90 Days or More		$	9,726		$	11,182		$	14,493		$	22,350
Total Loans and Leases		$	13,499,969		$	13,764,030		$	13,211,650		$	12,843,396

Allowance for Credit Losses																			Table 12
		For the Three Months Ended												For the Nine Months Ended
		September 30,				June 30,				September 30,				September 30,				September 30,
(dollars in thousands)		2020				2020				2019				2020				2019
Balance at Beginning of Period		$	192,120			$	166,013			$	138,535			$	130,530			$	141,718
Adjustment to Adopt ASC Topic 326			—				—				—				770				—
After Adoption of ASC Topic 326			192,120				166,013				138,535				131,300				141,718
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial			(598	)			(13,974	)			(514	)			(14,773	)			(2,514	)
Commercial real estate			—				(2,723	)			—				(2,723	)			—
Construction			—				(379	)			—				(379	)			—
Lease financing			—				—				—				—				(24	)
Total Commercial Loans			(598	)			(17,076	)			(514	)			(17,875	)			(2,538	)
Residential Loans:
Residential mortgage			—				(14	)			(7	)			(14	)			(7	)
Home equity line			—				—				—				(8	)			—
Total Residential Loans			—				(14	)			(7	)			(22	)			(7	)
Consumer			(4,238	)			(8,907	)			(8,015	)			(21,742	)			(24,118	)
Total Loans and Leases Charged-Off			(4,836	)			(25,997	)			(8,536	)			(39,639	)			(26,663	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial Loans:
Commercial and industrial			1,699				100				241				2,019				303
Commercial real estate			—				—				30				—				93
Construction			30				30				—				170				—
Total Commercial Loans			1,729				130				271				2,189				396
Residential Loans:
Residential mortgage			27				17				368				179				704
Home equity line			16				8				57				146				156
Total Residential Loans			43				25				425				325				860
Consumer			3,148				2,456				2,269				7,687				7,103
Total Recoveries on Loans and Leases Previously Charged-Off			4,920				2,611				2,965				10,201				8,359
Net Loans and Leases Recovered (Charged-Off)			84				(23,386	)			(5,571	)			(29,438	)			(18,304	)
Provision for Credit Losses - Loans and Leases			3,672				49,493				—				94,014				9,550
Balance at End of Period		$	195,876			$	192,120			$	132,964			$	195,876			$	132,964
Average Loans and Leases Outstanding		$	13,559,367			$	13,956,669			$	13,032,349			$	13,569,119			$	13,105,086
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)			-		%		0.67		%		0.17		%		0.29		%		0.19		%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding			1.45		%		1.40		%		1.04		%		1.45		%		1.04		%

 

---

(1)	Annualized for the three and nine months ended September 30, 2020 and 2019 and three months ended June 30, 2020.

Loans and Leases by Year of Origination and Credit Quality Indicator																											Table 13
																							Revolving
																							Loans
																							Converted
		Term Loans																		Revolving			to Term
		Amortized Cost Basis by Origination Year																		Loans			Loans
																				Amortized			Amortized
(dollars in thousands)		2020			2019			2018			2017			2016			Prior			Cost Basis			Cost Basis			Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass		$	999,763		$	330,209		$	202,595		$	76,154		$	52,391		$	92,446		$	1,033,278		$	26,148		$	2,812,984
Special Mention			25,677			7,786			33,794			2,354			306			791			105,339			452			176,499
Substandard			23,836			2,172			2,611			1,395			4,265			9,375			37,883			283			81,820
Doubtful			—			—			—			—			—			195			—			—			195
Other (1)			12,084			15,053			10,998			6,439			2,454			492			51,244			—			98,764
Total Commercial and Industrial			1,061,360			355,220			249,998			86,342			59,416			103,299			1,227,744			26,883			3,170,262
Commercial Real Estate
Risk rating:
Pass			289,941			625,894			544,367			447,473			305,557			880,689			36,258			2			3,130,181
Special Mention			1,487			94,217			30,760			39,438			31,211			58,911			2,999			—			259,023
Substandard			—			10,882			14,594			6,972			10,685			19,240			9,006			—			71,379
Other (1)			—			—			—			—			—			502			—			—			502
Total Commercial Real Estate			291,428			730,993			589,721			493,883			347,453			959,342			48,263			2			3,461,085
Construction
Risk rating:
Pass			32,810			182,503			187,257			91,415			24,053			42,269			26,133			—			586,440
Special Mention			—			515			1,647			4,749			—			9,172			—			—			16,083
Substandard			—			—			538			1,840			525			1,043			—			—			3,946
Other (1)			13,349			23,382			8,804			4,264			1,796			4,222			585			—			56,402
Total Construction			46,159			206,400			198,246			102,268			26,374			56,706			26,718			—			662,871
Lease Financing
Risk rating:
Pass			68,770			66,472			15,044			18,063			4,110			63,537			—			—			235,996
Special Mention			—			940			158			1,376			424			643			—			—			3,541
Substandard			2,703			1,680			359			1,174			—			524			—			—			6,440
Total Lease Financing			71,473			69,092			15,561			20,613			4,534			64,704			—			—			245,977
Total Commercial Lending		$	1,470,420		$	1,361,705		$	1,053,526		$	703,106		$	437,777		$	1,184,051		$	1,302,725		$	26,885		$	7,540,195

																							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		$	457,209		$	410,369		$	319,988		$	390,552		$	341,709		$	919,509		$	—		$	—		$	2,839,336
680 - 739			71,240			54,497			55,179			59,237			44,911			162,726			—			—			447,790
620 - 679			12,653			11,595			9,753			8,559			8,942			48,554			—			—			100,056
550 - 619			1,946			2,316			3,923			5,423			4,506			13,256			—			—			31,370
Less than 550			—			—			534			2,153			953			3,480			—			—			7,120
No Score (3)			14,827			19,364			22,222			22,616			14,954			49,251			—			—			143,234
Other (2)			16,598			17,402			17,874			22,807			11,060			13,653			579			172			100,145
Total Residential Mortgage			574,473			515,543			429,473			511,347			427,035			1,210,429			579			172			3,669,051
Home Equity Line
FICO:
740 and greater			—			—			—			—			—			—			617,973			5,600			623,573
680 - 739			—			—			—			—			—			—			163,305			3,799			167,104
620 - 679			—			—			—			—			—			—			47,448			1,295			48,743
550 - 619			—			—			—			—			—			—			13,210			1,464			14,674
Less than 550			—			—			—			—			—			—			4,750			613			5,363
No Score (3)			—			—			—			—			—			—			5,332			—			5,332
Total Home Equity Line			—			—			—			—			—			—			852,018			12,771			864,789
Total Residential Lending			574,473			515,543			429,473			511,347			427,035			1,210,429			852,597			12,943			4,533,840
Consumer Lending
FICO:
740 and greater			102,091			127,590			106,359			61,204			28,613			8,443			105,905			—			540,205
680 - 739			67,228			100,723			77,874			42,470			20,280			7,302			77,445			—			393,322
620 - 679			29,733			60,484			39,213			27,825			13,701			5,148			39,748			—			215,852
550 - 619			5,927			24,376			21,050			18,784			9,388			4,134			16,484			—			100,143
Less than 550			1,558			11,200			11,967			9,579			4,671			1,969			6,590			—			47,534
No Score (3)			3,998			120			105			115			23			—			33,654			—			38,015
Other (2)			886			9,144			89			2,219			47			6,787			71,691			—			90,863
Total Consumer Lending			211,421			333,637			256,657			162,196			76,723			33,783			351,517			—			1,425,934
Total Loans and Leases		$	2,256,314		$	2,210,885		$	1,739,656		$	1,376,649		$	941,535		$	2,428,263		$	2,506,839		$	39,828		$	13,499,969

 

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(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 Nine Months Ended
		September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share amounts)		2020			2020			2019			2020			2019
Income Statement Data:
Net income		$	65,101		$	20,049		$	74,199		$	124,015		$	216,556
Core net income		$	65,083		$	20,204		$	75,871		$	124,090		$	220,535
Average total stockholders' equity		$	2,704,129		$	2,697,775		$	2,648,428		$	2,687,632		$	2,600,259
Less: average goodwill			995,492			995,492			995,492			995,492			995,492
Average tangible stockholders' equity		$	1,708,637		$	1,702,283		$	1,652,936		$	1,692,140		$	1,604,767
Average total assets		$	22,341,485		$	22,341,654		$	20,332,457		$	21,667,948		$	20,405,261
Less: average goodwill			995,492			995,492			995,492			995,492			995,492
Average tangible assets		$	21,345,993		$	21,346,162		$	19,336,965		$	20,672,456		$	19,409,769
Return on average total stockholders' equity(1)			9.58	%		2.99	%		11.12	%		6.16	%		11.13	%
Core return on average total stockholders' equity (non-GAAP)(1)			9.57	%		3.01	%		11.37	%		6.17	%		11.34	%
Return on average tangible stockholders' equity (non-GAAP)(1)			15.16	%		4.74	%		17.81	%		9.79	%		18.04	%
Core return on average tangible stockholders' equity (non-GAAP)(1)			15.15	%		4.77	%		18.21	%		9.80	%		18.37	%
Return on average total assets(1)			1.16	%		0.36	%		1.45	%		0.76	%		1.42	%
Core return on average total assets (non-GAAP)(1)			1.16	%		0.36	%		1.48	%		0.76	%		1.44	%
Return on average tangible assets (non-GAAP)(1)			1.21	%		0.38	%		1.52	%		0.80	%		1.49	%
Core return on average tangible assets (non-GAAP)(1)			1.21	%		0.38	%		1.56	%		0.80	%		1.52	%

		As of			As of			As of			As of
		September 30,			June 30,			December 31,			September 30,
		2020			2020			2019			2019
Balance Sheet Data:
Total stockholders' equity		$	2,733,934		$	2,701,897		$	2,640,258		$	2,654,558
Less: goodwill			995,492			995,492			995,492			995,492
Tangible stockholders' equity		$	1,738,442		$	1,706,405		$	1,644,766		$	1,659,066
Total assets		$	22,310,701		$	22,993,715		$	20,166,734		$	20,598,220
Less: goodwill			995,492			995,492			995,492			995,492
Tangible assets		$	21,315,209		$	21,998,223		$	19,171,242		$	19,602,728
Shares outstanding			129,911,789			129,866,898			129,928,479			131,260,900
Total stockholders' equity to total assets			12.25	%		11.75	%		13.09	%		12.89	%
Tangible stockholders' equity to tangible assets (non-GAAP)			8.16	%		7.76	%		8.58	%		8.46	%
Book value per share		$	21.04		$	20.81		$	20.32		$	20.22
Tangible book value per share (non-GAAP)		$	13.38		$	13.14		$	12.66		$	12.64

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(1)	Annualized for the three and nine months ended September 30, 2020 and 2019 and three months ended June 30, 2020.

GAAP to Non-GAAP Reconciliation																			Table 15
		For the Three Months Ended												For the Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
(dollars in thousands, except per share amounts)		2020				2020				2019				2020				2019
Net interest income		$	134,002			$	127,822			$	143,081			$	400,507			$	433,783
Core net interest income (non-GAAP)		$	134,002			$	127,822			$	143,081			$	400,507			$	433,783
Noninterest income		$	48,898			$	45,656			$	49,980			$	143,782			$	145,825
(Gains) losses on sale of securities			(24	)			211				—				102				2,592
Core noninterest income (non-GAAP)		$	48,874			$	45,867			$	49,980			$	143,884			$	148,417
Noninterest expense		$	91,629			$	91,450			$	93,466			$	279,545			$	279,379
One-time items(1)			—				—				(2,244	)			—				(2,766	)
Core noninterest expense (non-GAAP)		$	91,629			$	91,450			$	91,222			$	279,545			$	276,613
Net income		$	65,101			$	20,049			$	74,199			$	124,015			$	216,556
(Gains) losses on sale of securities			(24	)			211				—				102				2,592
One-time noninterest expense items(1)			—				—				2,244				—				2,766
Tax adjustments(2)			6				(56	)			(572	)			(27	)			(1,379	)
Total core adjustments			(18	)			155				1,672				75				3,979
Core net income (non-GAAP)		$	65,083			$	20,204			$	75,871			$	124,090			$	220,535
Basic earnings per share		$	0.50			$	0.15			$	0.56			$	0.95			$	1.62
Diluted earnings per share		$	0.50			$	0.15			$	0.56			$	0.95			$	1.61
Efficiency ratio			50.01		%		52.70		%		48.41		%		51.32		%		48.20		%
Core basic earnings per share (non-GAAP)		$	0.50			$	0.16			$	0.57			$	0.96			$	1.65
Core diluted earnings per share (non-GAAP)		$	0.50			$	0.16			$	0.57			$	0.95			$	1.64
Core efficiency ratio (non-GAAP)			50.02		%		52.64		%		47.25		%		51.31		%		47.51		%

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(1)	One-time items for the three and nine months ended September 30, 2019 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, nonrecurring offering costs 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.
(2)	Represents the adjustments to net income, tax effected at the Company’s effective tax rate for the respective period.