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First Hawaiian, Inc. Reports Second Quarter 2025 Financial Results and Declares Dividend

1. FHB's Q2 2025 net income increased 23.6%, reaching $73.2 million. 2. Total loans grew by $58.8 million; deposits rose by $15.6 million. 3. Dividend of $0.26 per share declared, payable on August 29, 2025. 4. Net interest margin slightly improved to 3.11%, enhancing profitability. 5. Credit losses provision decreased significantly from $10.5 million to $4.5 million.

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Why Bullish?

FHB's strong quarterly performance and higher dividend indicate positive financial health, similar to past earnings that boosted its stock value.

How important is it?

The article highlights strong financial performance and increased dividends, significant factors likely to affect investor decisions and FHB’s stock price.

Why Short Term?

The effects of strong Q2 results and dividend increase will influence investor sentiment and stock price in the immediate term.

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HBANBHLBZION
HONOLULU, July 25, 2025 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended June 30, 2025. “I’m happy to report that First Hawaiian Bank had an outstanding second quarter, and posted net income of $73.2 million, a 23.6% increase over the first quarter,” said Bob Harrison, Chairman, President, and CEO. “Our results were driven by strong revenues, well controlled expenses and continued excellent credit quality.” On July 23, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on August 29, 2025, to stockholders of record at the close of business on August 18, 2025. Second Quarter 2025 Highlights: Net income of $73.2 million, or $0.58 per diluted shareTotal loans and leases increased $58.8 million versus prior quarterTotal deposits increased $15.6 million versus prior quarterNet interest margin increased 3 basis points to 3.11%Recorded a $4.5 million provision for credit lossesProvision for income taxes included a net benefit of $5.1 million due a recent change in the California tax codeBoard of Directors declared a quarterly dividend of $0.26 per share Balance Sheet Total assets were $23.8 billion at June 30, 2025 versus $23.7 billion at March 31, 2025. Gross loans and leases were $14.4 billion as of June 30, 2025, an increase of $58.8 million, or 0.4%, from $14.3 billion as of March 31, 2025. Total deposits were $20.2 billion as of June 30, 2025, an increase of $15.6 million from March 31, 2025. Net Interest Income Net interest income for the second quarter of 2025 was $163.6 million, an increase of $3.1 million, or 1.9%, compared to $160.5 million for the prior quarter. The net interest margin was 3.11% in the second quarter of 2025, an increase of 3 basis points compared to 3.08% in the prior quarter. Provision Expense During the quarter ended June 30, 2025, we recorded a $4.5 million provision for credit losses. In the quarter ended March 31, 2025, we recorded a $10.5 million provision for credit losses. Noninterest Income Noninterest income was $54.0 million in the second quarter of 2025, an increase of $3.5 million compared to noninterest income of $50.5 million in the prior quarter. Noninterest Expense Noninterest expense was $124.9 million in the second quarter of 2025, an increase of $1.4 million compared to noninterest expense of $123.6 million in the prior quarter. The efficiency ratio was 57.2% and 58.2% for the quarters ended June 30, 2025 and March 31, 2025, respectively. Taxes The effective tax rate was 16.9% and 23.0% for the quarters ended June 30, 2025 and March 31, 2025, respectively. The decrease in the effective tax rate was primarily due to the remeasurement of the California deferred tax assets as of the beginning of the year, reflecting the enactment of a recent change in the California tax code. Asset Quality The allowance for credit losses was $167.8 million, or 1.17% of total loans and leases, as of June 30, 2025, compared to $166.6 million, or 1.17% of total loans and leases, as of March 31, 2025. The reserve for unfunded commitments was $33.3 million as of June 30, 2025 and March 31, 2025. Net charge-offs were $3.3 million, or 0.09% of average loans and leases on an annualized basis, for the quarter ended June 30, 2025, compared to net charge-offs of $3.8 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended March 31, 2025. Total non-performing assets were $28.6 million, or 0.20% of total loans and leases and other real estate owned, on June 30, 2025, compared to total non-performing assets of $20.2 million, or 0.14% of total loans and leases and other real estate owned, on March 31, 2025. Capital Total stockholders' equity was $2.7 billion on June 30, 2025 versus $2.6 billion on March 31, 2025. The tier 1 leverage, common equity tier 1 and total capital ratios were 9.12%, 13.03% and 14.28%, respectively, on June 30, 2025, compared with 9.01%, 12.93% and 14.17%, respectively, on March 31, 2025. The Company repurchased 1.04 million shares of common stock at a total cost of $25.0 million under the stock repurchase program in the second quarter. The average cost was $23.99 per share repurchased. First Hawaiian, Inc. First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com. Conference Call Information First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time. To access the call by phone, please register via the following link:https://register-conf.media-server.com/register/BI3617237efe0943198ba8998c36c623cc, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. Use of Non-GAAP Financial Measures Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy. Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.                      Financial Highlights Table 1  For the Three Months Ended  For the Six Months Ended   June 30,  March 31,  June 30,  June 30, (dollars in thousands, except per share data) 2025  2025  2024  2025  2024 Operating Results:                    Net interest income $163,583  $160,526  $152,851  $324,109  $307,278 Provision for credit losses  4,500   10,500   1,800   15,000   8,100 Noninterest income  53,958   50,477   51,768   104,435   103,139 Noninterest expense  124,939   123,560   122,086   248,499   250,899 Net income  73,247   59,248   61,921   132,495   116,141 Basic earnings per share  0.58   0.47   0.48   1.05   0.91 Diluted earnings per share  0.58   0.47   0.48   1.05   0.91 Dividends declared per share  0.26   0.26   0.26   0.52   0.52 Dividend payout ratio  44.83%  55.32%  54.17%  49.52%  57.14%Performance Ratios(1):                    Net interest margin  3.11%  3.08%  2.92%  3.10%  2.91%Efficiency ratio  57.23%  58.22%  59.22%  57.71%  60.69%Return on average total assets  1.23%  1.01%  1.04%  1.12%  0.97%Return on average tangible assets (non-GAAP)(2)  1.28%  1.05%  1.08%  1.17%  1.01%Return on average total stockholders' equity  11.03%  9.09%  9.91%  10.07%  9.32%Return on average tangible stockholders' equity (non-GAAP)(2)  17.61%  14.59%  16.42%  16.12%  15.48%Average Balances:                    Average loans and leases $14,288,918  $14,309,998  $14,358,049  $14,299,400  $14,335,306 Average earning assets  21,167,588   21,169,194   21,247,707   21,168,386   21,364,799 Average assets  23,859,410   23,890,459   23,958,913   23,874,849   24,073,060 Average deposits  20,280,042   20,354,040   20,308,028   20,316,836   20,439,979 Average stockholders' equity  2,663,850   2,641,978   2,512,471   2,652,975   2,504,656 Market Value Per Share:                    Closing  24.96   24.44   20.76   24.96   20.76 High  25.09   28.28   22.68   28.28   23.12 Low  20.32   23.95   19.48   20.32   19.48                         As of  As of  As of  As of   June 30,   March 31,   December 31,   June 30,  (dollars in thousands, except per share data) 2025  2025  2024  2024 Balance Sheet Data:                Loans and leases $ 14,351,869  $14,293,036  $14,408,258  $14,359,899 Total assets   23,837,147   23,744,958   23,828,186   23,991,791 Total deposits   20,231,419   20,215,816   20,322,216   20,318,832 Short-term borrowings   250,000   250,000   250,000   500,000 Total stockholders' equity   2,694,545   2,648,852   2,617,486   2,550,312                  Per Share of Common Stock:                Book value $ 21.61  $21.07  $20.70  $19.94 Tangible book value (non-GAAP)(2)   13.63   13.15   12.83   12.16                  Asset Quality Ratios:                Non-accrual loans and leases / total loans and leases   0.20%    0.14%  0.14%  0.13%Allowance for credit losses for loans and leases / total loans and leases   1.17%    1.17%  1.11%  1.12%                 Capital Ratios:                Common Equity Tier 1 Capital Ratio    13.03%    12.93%  12.80%  12.73%Tier 1 Capital Ratio   13.03%    12.93%  12.80%  12.73%Total Capital Ratio   14.28%    14.17%  13.99%  13.92%Tier 1 Leverage Ratio   9.12%    9.01%  9.14%  9.03%Total stockholders' equity to total assets   11.30%    11.16%  10.98%  10.63%Tangible stockholders' equity to tangible assets (non-GAAP)(2)   7.44%    7.27%  7.10%  6.76%                 Non-Financial Data:                Number of branches   48   48   48   48 Number of ATMs   274   273   273   272 Number of Full-Time Equivalent Employees   2,006   1,995   1,997   2,032                    (1)Except for the efficiency ratio, amounts are annualized for the three and six months ended June 30, 2025 and 2024 and three months ended March 31, 2025.  (2)Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation.                     Consolidated Statements of Income Table 2  For the Three Months Ended For the Six Months Ended   June 30,  March 31,  June 30,  June 30, (dollars in thousands, except per share amounts) 2025 2025 2024 2025 2024Interest income               Loans and lease financing $ 193,393 $192,102 $202,068 $ 385,495 $401,912Available-for-sale investment securities   12,469  13,150  14,143   25,619  28,689Held-to-maturity investment securities   16,299  16,647  17,575   32,946  35,368Other   14,578  13,251  11,148   27,829  23,917Total interest income   236,739  235,150  244,934   471,889  489,886Interest expense               Deposits   70,289  71,709  85,609   141,998  169,752Short-term borrowings   2,627  2,599  5,953   5,226  11,906Other   240  316  521   556  950Total interest expense   73,156  74,624  92,083   147,780  182,608Net interest income   163,583  160,526  152,851   324,109  307,278Provision for credit losses   4,500  10,500  1,800   15,000  8,100Net interest income after provision for credit losses   159,083  150,026  151,051   309,109  299,178Noninterest income               Service charges on deposit accounts   7,830  7,535  7,793   15,365  15,339Credit and debit card fees   15,913  14,474  15,861   30,387  32,034Other service charges and fees   13,350  12,167  11,036   25,517  20,940Trust and investment services income   9,154  9,370  9,426   18,524  19,780Bank-owned life insurance   4,724  4,371  3,360   9,095  7,646Investment securities gains, net   —  37  —   37  —Other   2,987  2,523  4,292   5,510  7,400Total noninterest income   53,958  50,477  51,768   104,435  103,139Noninterest expense               Salaries and employee benefits   59,501  60,104  57,737   119,605  116,999Contracted services and professional fees   15,997  14,839  16,067   30,836  31,806Occupancy   7,934  8,100  7,377   16,034  14,318Equipment   14,037  13,871  13,196   27,908  26,609Regulatory assessment and fees   3,759  3,823  3,814   7,582  11,934Advertising and marketing   2,035  2,179  1,765   4,214  4,377Card rewards program   8,406  7,919  8,719   16,325  17,227Other   13,270  12,725  13,411   25,995  27,629Total noninterest expense   124,939  123,560  122,086   248,499  250,899Income before provision for income taxes   88,102  76,943  80,733   165,045  151,418Provision for income taxes   14,855  17,695  18,812   32,550  35,277Net income $ 73,247 $59,248 $61,921 $ 132,495 $116,141Basic earnings per share $ 0.58 $0.47 $0.48 $ 1.05 $0.91Diluted earnings per share $ 0.58 $0.47 $0.48 $ 1.05 $0.91Basic weighted-average outstanding shares   125,321,837  126,281,802  127,867,853   125,799,060  127,787,663Diluted weighted-average outstanding shares   125,833,064  127,166,932  128,262,594   126,493,569  128,279,917                Consolidated Balance Sheets Table 3  June 30,  March 31,  December 31,  June 30, (dollars in thousands, except share amount) 2025 2025 2024 2024Assets            Cash and due from banks $ 304,624  $240,738  $258,057  $290,501 Interest-bearing deposits in other banks   1,094,411   1,073,841   912,133   824,258 Investment securities:            Available-for-sale, at fair value (amortized cost: $2,097,906 as of June 30, 2025, $2,091,034 as of March 31, 2025, $2,190,448 as of December 31, 2024 and $2,379,004 as of June 30, 2024)   1,891,654   1,858,428   1,926,516   2,067,956 Held-to-maturity, at amortized cost (fair value: $3,230,698 as of June 30, 2025, $3,250,275 as of March 31, 2025, $3,262,509 as of December 31, 2024 and $3,401,006 as of June 30, 2024)   3,658,814   3,724,908   3,790,650   3,917,175 Loans held for sale   —   1,547   —   2,820 Loans and leases   14,351,869   14,293,036   14,408,258   14,359,899 Less: allowance for credit losses   167,825   166,612   160,393   160,517 Net loans and leases   14,184,044   14,126,424   14,247,865   14,199,382              Premises and equipment, net   299,149   292,576   288,530   283,762 Accrued interest receivable   77,943   78,973   79,979   82,512 Bank-owned life insurance   502,419   495,567   491,890   486,261 Goodwill   995,492   995,492   995,492   995,492 Mortgage servicing rights   4,828   4,926   5,078   5,395 Other assets   823,769   851,538   831,996   836,277 Total assets $ 23,837,147  $23,744,958  $23,828,186  $23,991,791 Liabilities and Stockholders' Equity            Deposits:            Interest-bearing $ 13,386,987  $13,330,265  $13,347,068  $13,461,365 Noninterest-bearing   6,844,432   6,885,551   6,975,148   6,857,467 Total deposits   20,231,419   20,215,816   20,322,216   20,318,832 Short-term borrowings   250,000   250,000   250,000   500,000 Retirement benefits payable   95,357   96,241   97,135   101,304 Other liabilities   565,826   534,049   541,349   521,343 Total liabilities   21,142,602   21,096,106   21,210,700   21,441,479              Stockholders' equity            Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 142,173,027 / 124,683,544 shares as of June 30, 2025, issued/outstanding: 142,139,353 / 125,692,598 shares as of March 31, 2025, issued/outstanding: 141,748,847 / 126,422,898 shares as of December 31, 2024 and issued/outstanding: 141,728,446 / 127,879,012 shares as of June 30, 2024)   1,422   1,421   1,417   1,417 Additional paid-in capital   2,567,936   2,564,408   2,560,380   2,554,795 Retained earnings   1,000,997   960,337   934,048   887,176 Accumulated other comprehensive loss, net   (407,008)  (433,769)  (463,994)  (519,132)Treasury stock (17,489,483 shares as of June 30, 2025, 16,446,755 shares as of March 31, 2025, 15,325,949 shares as of December 31, 2024 and 13,849,434 shares as of June 30, 2024)   (468,802)  (443,545)  (414,365)  (373,944)Total stockholders' equity   2,694,545   2,648,852   2,617,486   2,550,312 Total liabilities and stockholders' equity $ 23,837,147  $23,744,958  $23,828,186  $23,991,791                                 Average Balances and Interest Rates                         Table 4   Three Months Ended  Three Months Ended  Three Months Ended    June 30, 2025  March 31, 2025  June 30, 2024    Average Income/ Yield/  Average Income/ Yield/  Average Income/ Yield/ (dollars in millions) Balance Expense Rate  Balance Expense Rate  Balance Expense Rate Earning Assets                           Interest-Bearing Deposits in Other Banks $1,276.8 $14.1 4.45% $1,171.1 $12.8 4.44% $773.4 $10.5 5.45%Available-for-Sale Investment Securities                           Taxable  1,869.3  12.5 2.67   1,891.4  13.2 2.79   2,100.7  14.1 2.69 Non-Taxable  1.3  — 5.27   1.4  — 5.52   1.5  — 5.76 Held-to-Maturity Investment Securities                           Taxable  3,099.9  13.2 1.70   3,164.0  13.6 1.72   3,358.2  14.4 1.71 Non-Taxable  596.5  3.3 2.21   599.0  3.7 2.51   602.9  4.0 2.64 Total Investment Securities  5,567.0  29.0 2.08   5,655.8  30.5 2.16   6,063.3  32.5 2.15 Loans Held for Sale  0.3  — 6.86   0.3  — 6.28   1.0  — 6.58 Loans and Leases(1)                           Commercial and industrial  2,291.5  35.2 6.16   2,196.8  33.6 6.20   2,201.6  38.1 6.96 Commercial real estate  4,392.5  66.9 6.11   4,420.1  66.5 6.10   4,305.6  71.5 6.68 Construction  900.4  14.9 6.66   937.0  15.4 6.67   984.8  18.5 7.57 Residential:                           Residential mortgage  4,104.1  40.2 3.92   4,150.3  40.9 3.94   4,229.4  40.1 3.80 Home equity line  1,154.4  13.4 4.64   1,149.8  13.1 4.61   1,164.2  12.6 4.35 Consumer  1,013.9  19.2 7.58   1,019.5  18.9 7.53   1,054.1  17.7 6.74 Lease financing  432.1  4.2 3.90   436.5  4.3 3.99   418.3  4.3 4.09 Total Loans and Leases  14,288.9  194.0 5.44   14,310.0  192.7 5.44   14,358.0  202.8 5.67 Other Earning Assets  34.6  0.4 4.94   32.0  0.4 5.48   52.0  0.7 5.25 Total Earning Assets(2)  21,167.6  237.5 4.50   21,169.2  236.4 4.51   21,247.7  246.5 4.66 Cash and Due from Banks  222.3        235.9        240.4      Other Assets  2,469.5        2,485.4        2,470.8      Total Assets $23,859.4       $23,890.5       $23,958.9                                   Interest-Bearing Liabilities                           Interest-Bearing Deposits                           Savings $6,247.5 $21.0 1.35% $6,232.5 $21.3 1.38% $6,000.4 $23.4 1.57%Money Market  3,822.1  22.8 2.39   3,922.2  23.0 2.38   4,076.7  30.6 3.02 Time  3,389.4  26.5 3.14   3,317.1  27.4 3.36   3,284.3  31.6 3.87 Total Interest-Bearing Deposits  13,459.0  70.3 2.09   13,471.8  71.7 2.16   13,361.4  85.6 2.58 Other Short-Term Borrowings  250.0  2.6 4.22   250.0  2.6 4.22   500.0  6.0 4.79 Other Interest-Bearing Liabilities  20.8  0.2 4.62   27.5  0.3 4.67   38.2  0.5 5.48 Total Interest-Bearing Liabilities  13,729.8  73.1 2.14   13,749.3  74.6 2.20   13,899.6  92.1 2.66 Net Interest Income    $164.4       $161.8       $154.4   Interest Rate Spread(3)       2.36%       2.31%       2.00%Net Interest Margin(4)       3.11%       3.08%       2.92%Noninterest-Bearing Demand Deposits  6,821.0        6,882.2        6,946.6      Other Liabilities  644.7        617.0        600.2      Stockholders' Equity  2,663.9        2,642.0        2,512.5      Total Liabilities and Stockholders' Equity $23,859.4       $23,890.5       $23,958.9                         (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 $0.8 million, $1.2 million and $1.5 million for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.  (3)Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.  (4)Net interest margin is net interest income annualized for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, on a fully taxable-equivalent basis, divided by average total earning assets.                                        Average Balances and Interest Rates               Table 5   Six Months Ended  Six Months Ended     June 30, 2025 June 30, 2024    Average Income/ Yield/ Average Income/ Yield/ (dollars in millions) Balance Expense Rate Balance Expense Rate Earning Assets                 Interest-Bearing Deposits in Other Banks $ 1,224.3 $ 27.0  4.44%  $815.9 $22.1 5.45%Available-for-Sale Investment Securities                 Taxable   1,880.3   25.6  2.73  2,155.7  28.7 2.66 Non-Taxable   1.3   —  5.38  1.6  — 5.68 Held-to-Maturity Investment Securities                 Taxable   3,131.8   26.8  1.71  3,387.3  29.0 1.71 Non-Taxable   597.7   7.0  2.36  603.2  7.9 2.65 Total Investment Securities   5,611.1   59.4  2.12  6,147.8  65.6 2.14 Loans Held for Sale   0.3   —  6.54  0.9  — 6.72 Loans and Leases(1)                 Commercial and industrial   2,244.4   68.8  6.18  2,183.3  75.3 6.94 Commercial real estate   4,406.3   133.3  6.10  4,314.6  141.7 6.60 Construction   918.6   30.4  6.67  954.8  35.9 7.56 Residential:                 Residential mortgage   4,127.1   81.2  3.93  4,246.7  82.1 3.87 Home equity line   1,152.1   26.4  4.62  1,168.1  24.7 4.24 Consumer   1,016.6   38.1  7.56  1,068.8  35.7 6.72 Lease financing   434.3   8.5  3.95  399.0  8.0 4.00 Total Loans and Leases   14,299.4   386.7  5.44  14,335.3  403.4 5.65 Other Earning Assets   33.3   0.8  5.20  64.9  1.8 5.64 Total Earning Assets(2)   21,168.4   473.9  4.50  21,364.8  492.9 4.63 Cash and Due from Banks   229.0       242.4      Other Assets   2,477.4       2,465.9      Total Assets $ 23,874.8      $24,073.1                         Interest-Bearing Liabilities                 Interest-Bearing Deposits                 Savings $ 6,240.1 $ 42.2  1.36%  $6,030.1 $46.9 1.56%Money Market   3,871.8   45.8  2.38  4,010.8  59.4 2.98 Time   3,353.5   54.0  3.25  3,304.8  63.5 3.86 Total Interest-Bearing Deposits   13,465.4   142.0  2.13  13,345.7  169.8 2.56 Other Short-Term Borrowings   250.0   5.2  4.22  500.0  11.9 4.79 Other Interest-Bearing Liabilities   24.1   0.6  4.65  35.6  0.9 5.36 Total Interest-Bearing Liabilities   13,739.5   147.8  2.17  13,881.3  182.6 2.65 Net Interest Income    $ 326.1      $310.3   Interest Rate Spread(3)        2.33%        1.98%Net Interest Margin(4)        3.10%        2.91%Noninterest-Bearing Demand Deposits   6,851.4       7,094.3      Other Liabilities   630.9       592.8      Stockholders' Equity   2,653.0       2,504.7      Total Liabilities and Stockholders' Equity $ 23,874.8      $24,073.1                         (1)Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.  (2)Interest income includes taxable-equivalent basis adjustments of $2.0 million and $3.0 million for the six months ended June 30, 2025 and 2024, respectively.  (3)Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.  (4)Net interest margin is net interest income annualized for the six months ended June 30, 2025 and 2024, on a fully taxable-equivalent basis, divided by average total earning assets.                                Analysis of Change in Net Interest Income        Table 6   Three Months Ended June 30, 2025   Compared to March 31, 2025(dollars in millions) Volume Rate Total (1)Change in Interest Income:         Interest-Bearing Deposits in Other Banks $ 1.3  $ —  $ 1.3 Available-for-Sale Investment Securities         Taxable   (0.1)   (0.6)   (0.7)Held-to-Maturity Investment Securities         Taxable   (0.2)   (0.2)   (0.4)Non-Taxable   —    (0.4)   (0.4)Total Investment Securities   (0.3)   (1.2)   (1.5)Loans and Leases         Commercial and industrial   1.8    (0.2)   1.6 Commercial real estate   0.1    0.3    0.4 Construction   (0.5)   —    (0.5)Residential:         Residential mortgage   (0.5)   (0.2)   (0.7)Home equity line   0.1    0.2    0.3 Consumer   —    0.3    0.3 Lease financing   —    (0.1)   (0.1)Total Loans and Leases   1.0    0.3    1.3 Total Change in Interest Income   2.0    (0.9)   1.1            Change in Interest Expense:         Interest-Bearing Deposits         Savings   0.1    (0.4)   (0.3)Money Market   (0.4)   0.2    (0.2)Time   0.7    (1.6)   (0.9)Total Interest-Bearing Deposits   0.4    (1.8)   (1.4)Other Interest-Bearing Liabilities   (0.1)   —    (0.1)Total Change in Interest Expense   0.3    (1.8)   (1.5)Change in Net Interest Income $ 1.7  $ 0.9  $ 2.6                    (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.                               Analysis of Change in Net Interest Income        Table 7  Three Months Ended June 30, 2025  Compared to June 30, 2024(dollars in millions) Volume Rate Total (1)Change in Interest Income:         Interest-Bearing Deposits in Other Banks $ 5.8  $ (2.2) $ 3.6 Available-for-Sale Investment Securities         Taxable   (1.5)   (0.1)   (1.6)Held-to-Maturity Investment Securities         Taxable   (1.1)   (0.1)   (1.2)Non-Taxable   (0.1)   (0.6)   (0.7)Total Investment Securities   (2.7)   (0.8)   (3.5)Loans and Leases         Commercial and industrial   1.6    (4.5)   (2.9)Commercial real estate   1.5    (6.1)   (4.6)Construction   (1.5)   (2.1)   (3.6)Residential:         Residential mortgage   (1.2)   1.3    0.1 Home equity line   (0.1)   0.9    0.8 Consumer   (0.7)   2.2    1.5 Lease financing   0.1    (0.2)   (0.1)Total Loans and Leases   (0.3)   (8.5)   (8.8)Other Earning Assets   (0.2)   (0.1)   (0.3)Total Change in Interest Income   2.6    (11.6)   (9.0)          Change in Interest Expense:         Interest-Bearing Deposits         Savings   1.0    (3.4)   (2.4)Money Market   (1.8)   (6.0)   (7.8)Time   1.0    (6.1)   (5.1)Total Interest-Bearing Deposits   0.2    (15.5)   (15.3)Other Short-Term Borrowings   (2.8)   (0.6)   (3.4)Other Interest-Bearing Liabilities   (0.2)   (0.1)   (0.3)Total Change in Interest Expense   (2.8)   (16.2)   (19.0)Change in Net Interest Income $ 5.4  $ 4.6  $ 10.0                    (1)The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.                               Analysis of Change in Net Interest Income        Table 8  Six Months Ended June 30, 2025  Compared to June 30, 2024(dollars in millions)    Volume    Rate    Total (1)Change in Interest Income:         Interest-Bearing Deposits in Other Banks $ 9.5  $ (4.6) $ 4.9 Available-for-Sale Investment Securities         Taxable   (3.8)   0.7    (3.1)Held-to-Maturity Investment Securities         Taxable   (2.2)   —    (2.2)Non-Taxable   (0.1)   (0.8)   (0.9)Total Investment Securities   (6.1)   (0.1)   (6.2)Loans and Leases         Commercial and industrial   2.0    (8.5)   (6.5)Commercial real estate   2.8    (11.2)   (8.4)Construction   (1.3)   (4.2)   (5.5)Residential:         Residential mortgage   (2.2)   1.3    (0.9)Home equity line   (0.3)   2.0    1.7 Consumer   (1.8)   4.2    2.4 Lease financing   0.6    (0.1)   0.5 Total Loans and Leases   (0.2)   (16.5)   (16.7)Other Earning Assets   (0.8)   (0.2)   (1.0)Total Change in Interest Income   2.4    (21.4)   (19.0)          Change in Interest Expense:         Interest-Bearing Deposits         Savings   1.5    (6.2)   (4.7)Money Market   (2.0)   (11.6)   (13.6)Time   0.9    (10.4)   (9.5)Total Interest-Bearing Deposits   0.4    (28.2)   (27.8)Other Short-Term Borrowings   (5.4)   (1.3)   (6.7)Other Interest-Bearing Liabilities   (0.2)   (0.1)   (0.3)Total Change in Interest Expense   (5.2)   (29.6)   (34.8)Change in Net Interest Income $ 7.6  $ 8.2  $ 15.8  _______________________ (1)The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.                 Loans and Leases           Table 9  June 30,  March 31,  December 31,  June 30, (dollars in thousands) 2025    2025    2024    2024Commercial and industrial $ 2,370,210 $2,261,394 $2,247,428 $2,208,690Commercial real estate   4,411,585  4,367,433  4,463,992  4,305,017Construction   884,306  954,072  918,326  1,017,649Residential:            Residential mortgage   4,085,827  4,129,518  4,168,154  4,216,416Home equity line   1,161,876  1,144,895  1,151,739  1,159,833Total residential   5,247,703  5,274,413  5,319,893  5,376,249Consumer   1,011,125  998,325  1,023,969  1,027,104Lease financing   426,940  437,399  434,650  425,190Total loans and leases $ 14,351,869 $14,293,036 $14,408,258 $14,359,899                Deposits           Table 10  June 30,  March 31,  December 31,  June 30, (dollars in thousands) 2025    2025    2024    2024Demand $ 6,844,432 $6,885,551 $6,975,148 $6,857,467Savings   6,219,801  6,110,796  6,021,364  6,055,051Money Market   3,777,681  3,865,203  4,027,334  4,111,609Time   3,389,505  3,354,266  3,298,370  3,294,705 Total Deposits $ 20,231,419 $20,215,816 $20,322,216 $20,318,832                Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More           Table 11  June 30,  March 31,  December 31,  June 30, (dollars in thousands) 2025    2025    2024    2024Non-Performing Assets            Non-Accrual Loans and Leases            Commercial Loans:            Commercial and industrial $ 1,184 $— $329 $1,084Commercial real estate   3,185  216  411  3,085Construction   904  375  —  447Total Commercial Loans   5,273  591  740  4,616Residential Loans:            Residential mortgage   15,032  12,809  12,768  7,273Home equity line   8,286  6,788  7,171  6,124Total Residential Loans   23,318  19,597  19,939  13,397Total Non-Accrual Loans and Leases   28,591  20,188  20,679  18,013Total Non-Performing Assets $ 28,591 $20,188 $20,679 $18,013             Accruing Loans and Leases Past Due 90 Days or More            Commercial Loans:            Commercial and industrial $ 942 $740 $1,432 $110Construction   —  —  536  —Total Commercial Loans   942  740  1,968  110Residential mortgage   309  1,008  1,317  1,820Consumer   3,187  2,554  2,734  1,835Total Accruing Loans and Leases Past Due 90 Days or More $ 4,438 $4,302 $6,019 $3,765             Total Loans and Leases $ 14,351,869 $14,293,036 $14,408,258 $14,359,899                  Allowance for Credit Losses and Reserve for Unfunded Commitments Table 12  For the Three Months Ended  For the Six Months Ended    June 30,  March 31,  June 30,  June 30,  June 30,  (dollars in thousands) 2025 2025    2024    2025 2024 Balance at Beginning of Period $ 199,959  $193,240  $194,649  $ 193,240  $192,138  Loans and Leases Charged-Off                Commercial Loans:                Commercial and industrial   (688)  (1,459)  (677)   (2,147)  (1,586) Lease financing   (82)  —   —    (82)  —  Total Commercial Loans   (770)  (1,459)  (677)   (2,229)  (1,586) Home equity line   (16)  (14)  —    (30)  —  Consumer   (4,543)  (5,025)  (4,182)   (9,568)  (9,036) Total Loans and Leases Charged-Off   (5,329)  (6,498)  (4,859)   (11,827)  (10,622) Recoveries on Loans and Leases Previously Charged-Off                Commercial Loans:                Commercial and industrial   196   403   250    599   461  Commercial real estate   —   251   —    251   —  Total Commercial Loans   196   654   250    850   461  Residential Loans:                Residential mortgage   109   20   28    129   58  Home equity line   32   64   112    96   156  Total Residential Loans   141   84   140    225   214  Consumer   1,705   1,979   1,950    3,684   3,639  Total Recoveries on Loans and Leases Previously Charged-Off   2,042   2,717   2,340    4,759   4,314  Net Loans and Leases Charged-Off   (3,287)  (3,781)  (2,519)   (7,068)  (6,308) Provision for Credit Losses   4,500   10,500   1,800    15,000   8,100  Balance at End of Period $ 201,172  $199,959  $193,930  $ 201,172  $193,930  Components:                Allowance for Credit Losses $ 167,825  $166,612  $160,517  $ 167,825  $160,517  Reserve for Unfunded Commitments   33,347   33,347   33,413    33,347   33,413  Total Allowance for Credit Losses and Reserve for Unfunded Commitments $ 201,172  $199,959  $193,930  $ 201,172  $193,930  Average Loans and Leases Outstanding $ 14,288,918  $14,309,998  $14,358,049  $ 14,299,400  $14,335,306  Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)   0.09 %   0.11 % 0.07 %  0.10 %   0.09 %Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding   1.17 %   1.17 % 1.12 %  1.17 %   1.12 %Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases  5.87x   8.25x   8.91x   5.87x   8.91x                      (1)Annualized for the three and six months ended June 30, 2025 and 2024 and three months ended March 31, 2025.                                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) 2025 2024 2023 2022 2021 Prior Cost Basis Cost Basis TotalCommercial Lending                           Commercial and Industrial                           Risk rating:                           Pass $ 75,108 $ 143,460 $ 64,613 $ 158,143 $ 194,932 $ 239,648 $ 1,282,369 $ 21,144 $ 2,179,417Special Mention   407   874   2,114   1,589   123   21,393   24,455   —   50,955Substandard   537   —   —   10,554   39   1,193   42,079   —   54,402Other (1)   11,171   11,347   6,926   5,216   1,851   1,583   47,342   —   85,436Total Commercial and Industrial   87,223   155,681   73,653   175,502   196,945   263,817   1,396,245   21,144   2,370,210Current period gross charge-offs   1   43   95   202   356   1,420   30   —   2,147                            Commercial Real Estate                           Risk rating:                           Pass   169,890   290,636   374,749   795,676   655,689   1,822,004   101,260   7,588   4,217,492Special Mention   —   3,336   1,682   7,455   41,396   54,805   11,003   —   119,677Substandard   —   5,613   540   57,437   1,005   9,193   500   —   74,288Other (1)   —   —   —   —   —   128   —   —   128Total Commercial Real Estate   169,890   299,585   376,971   860,568   698,090   1,886,130   112,763   7,588   4,411,585Current period gross charge-offs   —   —   —   —   —   —   —   —   —                            Construction                           Risk rating:                           Pass   10,471   141,948   207,877   285,083   134,469   49,647   21,163   —   850,658Special Mention   —   —   —   —   —   138   —   —   138Substandard   —   —   —   —   —   904   —   —   904Other (1)   2,557   14,216   6,299   5,200   1,486   2,153   695   —   32,606Total Construction   13,028   156,164   214,176   290,283   135,955   52,842   21,858   —   884,306Current period gross charge-offs   —   —   —   —   —   —   —   —   —                            Lease Financing                           Risk rating:                           Pass   75,371   87,087   96,362   52,286   12,405   96,879   —   —   420,390Special Mention   —   —   209   —   169   —   —   —   378Substandard   —   5,418   488   266   —   —   —   —   6,172Total Lease Financing   75,371   92,505   97,059   52,552   12,574   96,879   —   —   426,940Current period gross charge-offs   —   —   —   —   —   82   —   —   82                            Total Commercial Lending $ 345,512 $ 703,935 $ 761,859 $ 1,378,905 $ 1,043,564 $ 2,299,668 $ 1,530,866 $ 28,732 $ 8,093,041Current period gross charge-offs $ 1 $ 43 $ 95 $ 202 $ 356 $ 1,502 $ 30 $ — $ 2,229 (continued)                                                    Revolving                          Loans                          Converted     Term Loans Revolving to Term     Amortized Cost Basis by Origination Year Loans Loans   (continued)                   Amortized Amortized   (dollars in thousands) 2025 2024 2023 2022 2021 Prior Cost Basis Cost Basis TotalResidential Lending                           Residential Mortgage                           FICO:                           740 and greater $ 75,024 $ 152,336 $ 184,091 $ 466,879 $ 889,999 $ 1,539,891 $ — $ — $ 3,308,220680 - 739   7,541   20,371   27,773   80,105   119,482   192,183   —   —   447,455620 - 679   4,787   1,274   5,446   8,256   25,983   37,856   —   —   83,602550 - 619   —   1,508   444   7,226   6,840   26,115   —   —   42,133Less than 550   —   156   1,439   1,547   3,123   7,033   —   —   13,298No Score (3)   1,471   9,893   6,036   16,659   9,758   47,459   —   —   91,276Other (2)   11,078   7,868   11,820   16,274   13,972   35,769   3,062   —   99,843Total Residential Mortgage   99,901   193,406   237,049   596,946   1,069,157   1,886,306   3,062   —   4,085,827Current period gross charge-offs   —   —   —   —   —   —   —   —   —                            Home Equity Line                           FICO:                           740 and greater   —   —   —   —   —   —   926,318   1,275   927,593680 - 739   —   —   —   —   —   —   173,339   1,656   174,995620 - 679   —   —   —   —   —   —   34,428   579   35,007550 - 619   —   —   —   —   —   —   14,006   552   14,558Less than 550   —   —   —   —   —   —   8,129   395   8,524No Score (3)   —   —   —   —   —   —   1,199   —   1,199Total Home Equity Line   —   —   —   —   —   —   1,157,419   4,457   1,161,876Current period gross charge-offs   —   —   —   —   —   —   30   —   30                            Total Residential Lending $ 99,901 $ 193,406 $ 237,049 $ 596,946 $ 1,069,157 $ 1,886,306 $ 1,160,481 $ 4,457 $ 5,247,703Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ 30 $ — $ 30                            Consumer Lending                           FICO:                           740 and greater   61,761   75,352   53,350   65,835   31,177   10,411   95,804   96   393,786680 - 739   41,443   60,382   35,296   33,253   15,631   6,463   84,324   568   277,360620 - 679   20,622   26,812   14,646   15,734   7,570   4,810   50,024   817   141,035550 - 619   2,805   9,190   7,165   8,375   4,849   3,479   16,574   888   53,325Less than 550   664   3,896   4,177   4,758   2,669   2,281   5,594   545   24,584No Score (3)   545   232   58   21   —   13   38,412   186   39,467Other (2)   229   —   601   240   583   1,032   78,883   —   81,568Total Consumer Lending $ 128,069 $ 175,864 $ 115,293 $ 128,216 $ 62,479 $ 28,489 $ 369,615 $ 3,100 $ 1,011,125Current period gross charge-offs $ 35 $ 1,282 $ 998 $ 986 $ 506 $ 1,299 $ 3,966 $ 496 $ 9,568                            Total Loans and Leases $ 573,482 $ 1,073,205 $ 1,114,201 $ 2,104,067 $ 2,175,200 $ 4,214,463 $ 3,060,962 $ 36,289 $ 14,351,869Current period gross charge-offs $ 36 $ 1,325 $ 1,093 $ 1,188 $ 862 $ 2,801 $ 4,026 $ 496 $ 11,827                   (1)Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score (680 and above). As of June 30, 2025, the majority of the loans in this population were current.(2)Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. As of June 30, 2025, the majority of the loans in this population were current.(3)No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.                    GAAP to Non-GAAP Reconciliation Table 14  For the Three Months Ended  For the Six Months Ended    June 30,  March 31,  June 30,  June 30,  (dollars in thousands)    2025     2025    2024    2025     2024 Income Statement Data:                Net income $ 73,247 $59,248 $61,921 $ 132,495 $116,141                  Average total stockholders' equity $ 2,663,850 $2,641,978 $2,512,471 $ 2,652,975 $2,504,656 Less: average goodwill   995,492  995,492  995,492   995,492  995,492 Average tangible stockholders' equity $ 1,668,358 $1,646,486 $1,516,979 $ 1,657,483 $1,509,164                  Average total assets $ 23,859,410 $23,890,459 $23,958,913 $ 23,874,849 $24,073,060 Less: average goodwill   995,492  995,492  995,492   995,492  995,492 Average tangible assets $ 22,863,918 $22,894,967 $22,963,421 $ 22,879,357 $23,077,568                  Return on average total stockholders' equity(1)   11.03%   9.09%   9.91%    10.07%   9.32%  Return on average tangible stockholders' equity (non-GAAP)(1)   17.61%   14.59%   16.42%    16.12%   15.48%                   Return on average total assets(1)   1.23%   1.01%   1.04%    1.12%   0.97%  Return on average tangible assets (non-GAAP)(1)   1.28%   1.05%   1.08%    1.17%   1.01%                              As of As of As of As of   June 30,  March 31,  December 31,  June 30,  (dollars in thousands, except per share amounts)    2025    2025    2024    2024 Balance Sheet Data:             Total stockholders' equity $ 2,694,545 $2,648,852 $2,617,486 $2,550,312 Less: goodwill   995,492  995,492  995,492  995,492 Tangible stockholders' equity $ 1,699,053 $1,653,360 $1,621,994 $1,554,820               Total assets $ 23,837,147 $23,744,958 $23,828,186 $23,991,791 Less: goodwill   995,492  995,492  995,492  995,492 Tangible assets $ 22,841,655 $22,749,466 $22,832,694 $22,996,299               Shares outstanding   124,683,544  125,692,598  126,422,898  127,879,012               Total stockholders' equity to total assets   11.30%   11.16%   10.98%   10.63%Tangible stockholders' equity to tangible assets (non-GAAP)   7.44%   7.27%   7.10%   6.76%              Book value per share $ 21.61 $21.07 $20.70 $19.94 Tangible book value per share (non-GAAP) $ 13.63 $13.15 $12.83 $12.16                   (1) Annualized for the three and six months ended June 30, 2025 and 2024 and three months ended March 31, 2025.                   

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