FIRST HAWAIIAN, INC. - FORM 8-K - EX-99.1

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8-K - 8-K - FIRST HAWAIIAN, INC.	fhb-20210122x8k.htm

EXHIBIT 99.1

For Immediate Release

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

HONOLULU, Hawaii January 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 (844) 452-2942 (US/Canada), or (574) 990-9846 (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 (855) 859-2056 or (404) 537-3406 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:	Media Contact:
Kevin Haseyama, CFA	Susan Kam
(808) 525-6268	(808) 525-6254
khaseyama@fhb.com	skam@fhb.com


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

Amortized

(dollars in thousands)

2020

2019

2018

2017

2016

Prior

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

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

(continued)

Amortized

(dollars in thousands)

2020

2019

2018

2017

2016

Prior

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

109

—

33,854

356

34,835

Other ⁽²⁾

380

1,890

2,214

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.

FIRST HAWAIIAN, INC. - FORM 8-K - EX-99.1 - January 22, 2021

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