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

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HONOLULU, April 24, 2020 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. FHB, ("First Hawaiian" or the "Company") today reported financial results for its quarter ended March 31, 2020.

"First Hawaiian will continue to be a source of strength for our employees, our customers and the community," said Bob Harrison, Chairman, President and Chief Executive Officer.  "With our experienced management team, dedicated employees, deep customer relationships, and strong liquidity and capital, we are well positioned to manage through these challenging times."

On April 22, 2020 the Company's Board of Directors declared a quarterly cash dividend of $0.26 per share.  The dividend will be payable on June 5, 2020 to stockholders of record at the close of business on May 26, 2020.  The Board of Directors also voted to suspend the stock repurchase program.

First Quarter 2020 Highlights:

  • Net income of $38.9 million, or $0.30 per diluted share
  • Loan balances increased $169 million, or 1.3%, versus prior quarter
  • Deposits balances increased $575 million, or 3.5% versus the prior quarter
  • Net interest margin ("NIM") was 3.12%
  • Adopted Current Expected Credit Loss ("CECL") methodology on January 1, 2020
    • Upon adoption recognized a $17.1 million collective increase in the Allowance for Credit Losses ("ACL") and the reserve for unfunded commitments and a corresponding $12.5 million decrease (after-tax) in retained earnings
    • Recorded a $41.2 million provision for credit losses in Q1
  • Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet

Total assets were $20.8 billion as of March 31, 2020, compared to $20.2 billion as of December 31, 2019.

Gross loans and leases were $13.4 billion as of March 31, 2020, an increase of $169 million, or 1.3%, from $13.2 billion as of December 31, 2019. 

Total deposits were $17.0 billion as of March 31, 2020, an increase of $575 million, or 3.5%, from $16.4 billion as of December 31, 2019.  The increase was primarily due to a $425 million increase in public time deposits as the bank increased its liquidity position in anticipation of a surge in funding needs due to our participation in the Paycheck Protection Program and other additional liquidity needs.

Net Interest Income

Net interest income for the first quarter of 2020 was $138.7 million, a decrease of $0.9 million, or 0.7%, compared to $139.6 million for the prior quarter. 

The NIM was 3.12% in the first quarter of 2020, a decrease of three basis points compared to 3.15% in the fourth quarter of 2019.  

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Provision Expense

On January 1, 2020, the Bank adopted the CECL methodology under Accounting Standards Codification ("ASC") Topic 326, in which the ACL reflects expected credit losses for the remaining estimated life of loans and leases using historical experience, current conditions, and reasonable and supportable forecasts. The ACL at the end of the first quarter incorporates a change in the economic forecast late in the first quarter of 2020, to reflect the pandemic conditions, as compared to our initial adoption of CECL.

During the quarter ended March 31, 2020, the Bank recorded a total provision for credit losses of $41.2 million. In the quarter ended December 31, 2019, the total provision for credit losses was $4.3 million.

Noninterest Income

Noninterest income was $49.2 million in the first quarter of 2020, an increase of $2.5 million compared to noninterest income of $46.7 million in the fourth quarter of 2019.     

Noninterest Expense

Noninterest expense was $96.5 million in the first quarter of 2020, an increase of $5.4 million from $91.1 million in the fourth quarter of 2019. 

The efficiency ratio was 51.3% and 48.9% for the quarters ended March 31, 2020 and December 31, 2019, respectively.

Taxes

The effective tax rate was 22.6% for the quarter ended March 31, 2020 and 25.5% for the quarter ended December 31, 2019.

Asset Quality

The allowance for credit losses was $166.0 million, or 1.24% of total loans and leases, as of March 31, 2020, compared to $130.5 million, or 0.99% of total loans and leases, as of December 31, 2019.  The reserve for unfunded commitments was $17.3 million as of March 31, 2020 compared to $0.6 million as of December 31, 2019.  Net charge-offs were $6.1 million, or 0.19% of average loans and leases on an annualized basis for the quarter ended March 31, 2020, compared to $6.7 million, or 0.20% of average loans and leases on an annualized basis for the quarter ended December 31, 2019.  Total non-performing assets were $7.2 million, or 0.05% of total loans and leases and other real estate owned, at March 31, 2020, compared to non-performing assets of $5.8 million, or 0.04% of total loans and leases and other real estate owned, at December 31, 2019. 

Capital

Total stockholders' equity was $2.7 billion at March 31, 2020, compared to $2.6 billion at December 31, 2019.   

The tier 1 leverage, common equity tier 1 and total capital ratios were 8.63%, 11.65% and 12.90%, respectively, at March 31, 2020, compared with 8.79%, 11.88% and 12.81%, respectively, at December 31, 2019.

The Company repurchased 0.2 million shares of common stock at a total cost of $5.0 million under the stock repurchase program in the first quarter. The average cost was $22.96 per share repurchased.  Remaining buyback authority under the stock repurchase program was $75 million at March 31, 2020.

First Hawaiian, Inc. 

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

Conference Call Information

First Hawaiian will host a conference call to discuss the Company's results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time.  To access the call, participants should dial (844) 452-2942 (US/Canada), or (574) 990-9846 (International) ten minutes prior to the start of the call and enter the conference ID:  3248226.  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 May 1, 2020.  Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID:  3248226.

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.

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

Investor Relations Contact:
Kevin Haseyama, CFA
(808) 525-6268
khaseyama@fhb.com
                       Media Contact:
Susan Kam
(808) 525-6254
skam@fhb.com
   


Financial Highlights       Table 1 
  For the Three Months Ended 
  March 31,  December 31,  March 31,  
(dollars in thousands, except per share data) 2020 2019 2019 
Operating Results:          
Net interest income $ 138,683 $139,619 $145,089 
Provision for credit losses   41,200  4,250  5,680 
Noninterest income   49,228  46,708  47,072 
Noninterest expense   96,466  91,058  92,623 
Net income   38,865  67,836  69,924 
Basic earnings per share   0.30  0.52  0.52 
Diluted earnings per share   0.30  0.52  0.52 
Dividends declared per share   0.26  0.26  0.26 
Dividend payout ratio   86.67% 50.00% 50.00%
Supplemental Income Statement Data (non-GAAP):          
Core net interest income $ 138,683 $139,619 $145,089 
Core noninterest income   49,143  51,331  49,685 
Core noninterest expense   96,466  91,010  92,362 
Core net income   38,803  71,250  72,052 
Core basic earnings per share   0.30  0.55  0.53 
Core diluted earnings per share   0.30  0.54  0.53 
Performance Ratio(1):          
Net interest margin   3.12 3.15% 3.23%
Core net interest margin (non-GAAP)   3.12 3.15% 3.23%
Efficiency ratio   51.33 48.86% 48.20%
Core efficiency ratio (non-GAAP)   51.35 47.65% 47.42%
Return on average total assets   0.77 1.34% 1.38%
Core return on average total assets (non-GAAP)   0.77 1.41% 1.43%
Return on average tangible assets (non-GAAP)   0.81 1.41% 1.45%
Core return on average tangible assets (non-GAAP)(2)   0.81 1.48% 1.50%
Return on average total stockholders' equity   5.87 10.21% 11.16%
Core return on average total stockholders' equity (non-GAAP)   5.87 10.72% 11.50%
Return on average tangible stockholders' equity (non-GAAP)   9.39 16.40% 18.35%
Core return on average tangible stockholders' equity (non-GAAP)(3)   9.37 17.22% 18.91%
Average Balances:          
Average loans and leases $ 13,191,426 $12,940,956 $13,073,708 
Average earning assets   17,814,189  17,649,343  18,091,424 
Average assets   20,313,304  20,089,601  20,494,837 
Average deposits   16,543,305  16,355,254  16,865,673 
Average stockholders' equity   2,660,811  2,636,651  2,540,600 
Market Value Per Share:          
Closing   16.53  28.85  26.05 
High   31.25  29.47  27.67 
Low   15.42  25.48  22.13 
           


  As of As of As of 
  March 31,  December 31,  March 31,  
  2020 2019 2019 
Balance Sheet Data:          
Loans and leases $ 13,380,270 $13,211,650 $13,197,454 
Total assets   20,755,891  20,166,734  20,441,136 
Total deposits   17,020,002  16,444,994  16,795,244 
Short-term borrowings   400,000  400,000   
Long-term borrowings   200,019  200,019  600,028 
Total stockholders' equity   2,664,685  2,640,258  2,613,202 
           
Per Share of Common Stock:          
Book value $ 20.52 $20.32 $19.36 
Tangible book value (non-GAAP)(4)   12.86  12.66  11.98 
           
Asset Quality Ratios:          
Non-accrual loans and leases / total loans and leases   0.05 0.04% 0.03%
Allowance for credit losses for loans and leases / total loans and leases   1.24 0.99% 1.07%
           
Capital Ratios:          
Common Equity Tier 1 Capital Ratio   11.65 11.88% 12.05%
Tier 1 Capital Ratio   11.65 11.88% 12.05%
Total Capital Ratio   12.90 12.81% 13.06%
Tier 1 Leverage Ratio   8.63 8.79% 8.71%
Total stockholders' equity to total assets   12.84 13.09% 12.78%
Tangible stockholders' equity to tangible assets (non-GAAP)   8.45 8.58% 8.32%
           
Non-Financial Data:          
Number of branches   58  58  60 
Number of ATMs   304  301  296 
Number of Full-Time Equivalent Employees   2,103  2,092  2,130 
           

(1) Except for the efficiency ratio and the core efficiency ratio, amounts are annualized for the three months ended March 31, 2020, December 31, 2019 and March 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 11, 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 11, 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 11, GAAP to Non-GAAP Reconciliation.

Consolidated Statements of Income Table 2
  Three Months Ended
  March 31,  December 31,  March 31, 
(dollars in thousands, except per share amounts) 2020 2019 2019
Interest income         
Loans and lease financing $ 134,971 $138,033  $144,406 
Available-for-sale securities   21,210  20,979   24,486 
Other   2,351  3,120   3,669 
Total interest income   158,532  162,132   172,561 
Interest expense         
Deposits   15,600  18,222   23,197 
Short-term and long-term borrowings   4,249  4,291   4,275 
Total interest expense   19,849  22,513   27,472 
Net interest income   138,683  139,619   145,089 
Provision for credit losses   41,200  4,250   5,680 
Net interest income after provision for credit losses   97,483  135,369   139,409 
Noninterest income         
Service charges on deposit accounts   8,950  9,041   8,060 
Credit and debit card fees   14,949  16,626   16,655 
Other service charges and fees   8,539  8,818   9,129 
Trust and investment services income   9,591  8,855   8,618 
Bank-owned life insurance   2,260  2,533   3,813 
Investment securities losses, net   85  (123)  (2,613)
Other   4,854  958   3,410 
Total noninterest income   49,228  46,708   47,072 
Noninterest expense         
Salaries and employee benefits   44,829  41,098   44,860 
Contracted services and professional fees   16,055  13,724   13,645 
Occupancy   7,243  7,231   6,986 
Equipment   4,708  4,491   4,284 
Regulatory assessment and fees   1,946  1,802   1,447 
Advertising and marketing   1,823  1,317   1,966 
Card rewards program   7,015  8,635   6,732 
Other   12,847  12,760   12,703 
Total noninterest expense   96,466  91,058   92,623 
Income before provision for income taxes   50,245  91,019   93,858 
Provision for income taxes   11,380  23,183   23,934 
Net income $ 38,865 $67,836  $69,924 
Basic earnings per share $ 0.30 $0.52  $0.52 
Diluted earnings per share $ 0.30 $0.52  $0.52 
Basic weighted-average outstanding shares   129,895,706  130,463,102   134,879,336 
Diluted weighted-average outstanding shares   130,351,585  130,845,645   135,198,345 
            


Consolidated Balance Sheets Table 3
  March 31,  December 31,  March 31, 
(dollars in thousands) 2020 2019 2019
Assets         
Cash and due from banks $ 353,908  $360,375  $336,555 
Interest-bearing deposits in other banks   698,924   333,642   281,312 
Investment securities, at fair value (amortized cost: $4,014,397 as of March 31, 2020, $4,080,663 as of December 31, 2019 and $4,554,601 as of March 31, 2019)   4,058,457   4,075,644   4,485,660 
Loans held for sale   8,180   904    
Loans and leases   13,380,270   13,211,650   13,197,454 
Less: allowance for credit losses   166,013   130,530   141,546 
Net loans and leases   13,214,257   13,081,120   13,055,908 
          
Premises and equipment, net   321,254   316,885   310,902 
Other real estate owned and repossessed personal property   238   319   124 
Accrued interest receivable   43,552   45,239   49,489 
Bank-owned life insurance   455,226   453,873   447,936 
Goodwill   995,492   995,492   995,492 
Mortgage servicing rights   11,979   12,668   15,399 
Other assets   594,424   490,573   462,359 
Total assets $ 20,755,891  $20,166,734  $20,441,136 
Liabilities and Stockholders' Equity         
Deposits:         
Interest-bearing $ 11,274,463  $10,564,922  $10,951,764 
Noninterest-bearing   5,745,539   5,880,072   5,843,480 
Total deposits   17,020,002   16,444,994   16,795,244 
Short-term borrowings   400,000   400,000    
Long-term borrowings   200,019   200,019   600,028 
Retirement benefits payable   138,396   138,222   127,845 
Other liabilities   332,789   343,241   304,817 
Total liabilities   18,091,206   17,526,476   17,827,934 
          
Stockholders' equity         
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,092,172 / 129,827,968 shares as of March 31, 2020, issued/outstanding: 139,917,150 / 129,928,479 shares as of December 31, 2019 and issued/outstanding: 139,851,508 / 135,012,015 shares as of March 31, 2019)   1,401   1,399   1,399 
Additional paid-in capital   2,506,477   2,503,677   2,497,770 
Retained earnings   429,323   437,072   326,451 
Accumulated other comprehensive income (loss), net   4,129   (31,749)  (78,754)
Treasury stock (10,264,204 shares as of March 31, 2020, 9,988,671 shares as of December 31, 2019 and 4,839,493 shares as of March 31, 2019)   (276,645)  (270,141)  (133,664)
Total stockholders' equity   2,664,685   2,640,258   2,613,202 
Total liabilities and stockholders' equity $ 20,755,891  $20,166,734  $20,441,136 
             


Average Balances and Interest Rates                      Table 4 
  Three Months Ended  Three Months Ended  Three Months Ended  
  March 31, 2020 December 31, 2019 March 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 $ 516.8 $ 1.6  1.25$548.5 $2.3 1.68%$507.3 $3.2 2.56%
Available-for-Sale Investment Securities   4,033.2   21.2  2.10  4,092.2  21.0 2.05  4,417.8  24.5 2.22 
Loans Held for Sale   15.8   0.1  1.70  1.5   2.55  0.3   2.79 
Loans and Leases(1)                         
Commercial and industrial   2,776.2   24.6  3.56  2,668.5  25.3 3.76  3,166.4  33.2 4.25 
Commercial real estate   3,433.2   34.6  4.05  3,325.8  35.9 4.28  3,005.2  35.4 4.77 
Construction   538.5   5.7  4.27  497.8  5.4 4.36  636.7  7.5 4.77 
Residential:                         
Residential mortgage   3,721.2   37.7  4.05  3,720.2  38.5 4.14  3,535.2  36.0 4.07 
Home equity line   887.4   7.7  3.50  905.6  8.2 3.58  915.7  8.7 3.85 
Consumer   1,611.7   23.0  5.75  1,635.2  23.3 5.66  1,667.3  22.5 5.48 
Lease financing   223.2   1.6  2.85  187.8  1.4 2.94  147.2  1.1 2.99 
Total Loans and Leases   13,191.4   134.9  4.11  12,940.9  138.0 4.24  13,073.7  144.4 4.46 
Other Earning Assets   57.0   0.7  5.30  66.2  0.8 4.76  92.3  0.5 2.06 
Total Earning Assets(2)   17,814.2   158.5  3.57  17,649.3  162.1 3.66  18,091.4  172.6 3.85 
Cash and Due from Banks   327.4       316.5       360.3      
Other Assets   2,171.7       2,123.8       2,043.1      
Total Assets $ 20,313.3      $20,089.6      $20,494.8      
                          
Interest-Bearing Liabilities                         
Interest-Bearing Deposits                         
Savings $ 5,090.4 $ 3.3  0.26$4,943.2 $3.8 0.31% 4,815.8 $4.2 0.36%
Money Market   3,064.8   4.6  0.61  3,117.6  5.6 0.72  3,181.3  7.7 0.98 
Time   2,534.7   7.7  1.23  2,538.4  8.8 1.37  3,041.8  11.3 1.51 
Total Interest-Bearing Deposits   10,689.9   15.6  0.59  10,599.2  18.2 0.68  11,038.9  23.2 0.85 
Short-Term Borrowings   401.7   2.8  2.88  400.1  2.9 2.87  12.8  0.1 2.45 
Long-Term Borrowings   200.0   1.4  2.77  200.0  1.4 2.76  600.0  4.2 2.84 
Total Interest-Bearing Liabilities   11,291.6   19.8  0.71  11,199.3  22.5 0.80  11,651.7  27.5 0.96 
Net Interest Income    $ 138.7      $139.6      $145.1   
Interest Rate Spread        2.86      2.86%      2.89%
Net Interest Margin        3.12      3.15%      3.23%
Noninterest-Bearing Demand Deposits   5,853.4       5,756.0       5,826.8      
Other Liabilities   507.5       497.6       475.7      
Stockholders' Equity   2,660.8       2,636.7       2,540.6      
Total Liabilities and Stockholders' Equity $ 20,313.3      $20,089.6      $20,494.8      
                          

(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) For the periods disclosed above, the taxable-equivalent basis adjustments made to the table above were not material.

Analysis of Change in Net Interest Income        Table 5
  Three Months Ended March 31, 2020
  Compared to December 31, 2019
(dollars in millions) Volume Rate Total
Change in Interest Income:         
Interest-Bearing Deposits in Other Banks $ (0.1) $ (0.6) $ (0.7)
Available-for-Sale Investment Securities   (0.3)   0.5    0.2 
Loans Held for Sale   0.1    —    0.1 
Loans and Leases         
Commercial and industrial   0.8    (1.5)   (0.7)
Commercial real estate   0.9    (2.2)   (1.3)
Construction   0.4    (0.1)   0.3 
Residential:         
Residential mortgage   —    (0.8)   (0.8)
Home equity line   (0.2)   (0.3)   (0.5)
Consumer   (0.5)   0.2    (0.3)
Lease financing   0.2    —    0.2 
Total Loans and Leases   1.6    (4.7)   (3.1)
Other Earning Assets   (0.1)   —    (0.1)
Total Change in Interest Income   1.2    (4.8)   (3.6)
          
Change in Interest Expense:         
Interest-Bearing Deposits         
Savings   0.1    (0.6)   (0.5)
Money Market   (0.1)   (0.9)   (1.0)
Time   —    (1.1)   (1.1)
Total Interest-Bearing Deposits   —    (2.6)   (2.6)
Short-Term Borrowings   (0.1)   —    (0.1)
Total Change in Interest Expense   (0.1)   (2.6)   (2.7)
Change in Net Interest Income $ 1.3  $ (2.2) $ (0.9)
             


Analysis of Change in Net Interest Income        Table 6
  Three Months Ended March 31, 2020
  Compared to March 31, 2019
(dollars in millions) Volume Rate Total
Change in Interest Income:         
Interest-Bearing Deposits in Other Banks $ 0.1  $ (1.7) $ (1.6)
Available-for-Sale Investment Securities   (2.0)   (1.3)   (3.3)
Loans Held for Sale   0.1    —    0.1 
Loans and Leases         
Commercial and industrial   (3.7)   (4.9)   (8.6)
Commercial real estate   4.9    (5.7)   (0.8)
Construction   (1.1)   (0.7)   (1.8)
Residential:         
Residential mortgage   1.8    (0.1)   1.7 
Home equity line   (0.3)   (0.7)   (1.0)
Consumer   (0.7)   1.2    0.5 
Lease financing   0.5    —    0.5 
Total Loans and Leases   1.4    (10.9)   (9.5)
Other Earning Assets   (0.3)   0.5    0.2 
Total Change in Interest Income   (0.7)   (13.4)   (14.1)
          
Change in Interest Expense:         
Interest-Bearing Deposits         
Savings   0.3    (1.2)   (0.9)
Money Market   (0.3)   (2.8)   (3.1)
Time   (1.7)   (1.9)   (3.6)
Total Interest-Bearing Deposits   (1.7)   (5.9)   (7.6)
Short-Term Borrowings   2.7    —    2.7 
Long-Term Borrowings   (2.7)   (0.1)   (2.8)
Total Change in Interest Expense   (1.7)   (6.0)   (7.7)
Change in Net Interest Income $ 1.0  $ (7.4) $ (6.4)
             


Loans and Leases        Table 7
  March 31,  December 31,  March 31, 
(dollars in thousands) 2020 2019 2019
Commercial and industrial $ 3,025,345  $ 2,743,242  $ 3,203,770
Commercial real estate   3,413,014   3,463,953   3,147,304
Construction   572,062   519,241   595,491
Residential:         
Residential mortgage   3,673,455   3,768,936   3,543,964
Home equity line   891,698   893,239   907,829
Total residential   4,565,153   4,662,175   4,451,793
Consumer   1,568,073   1,620,556   1,653,109
Lease financing   236,623   202,483   145,987
Total loans and leases $ 13,380,270 $ 13,211,650 $ 13,197,454
          


Deposits        Table 8
  March 31,  December 31,  March 31, 
(dollars in thousands) 2020 2019 2019
Demand $ 5,745,539 $ 5,880,072 $ 5,843,480
Savings   5,213,471   4,998,933   4,884,418
Money Market   3,148,694   3,055,832   3,156,056
Time   2,912,298   2,510,157   2,911,290
Total Deposits $ 17,020,002 $ 16,444,994 $ 16,795,244
          


Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More        Table 9
  March 31,  December 31,  March 31, 
(dollars in thousands) 2020 2019 2019
Non-Performing Assets         
Non-Accrual Loans and Leases         
Commercial Loans:         
Commercial and industrial $ 32 $ 32 $ 190
Commercial real estate   —   30   —
Construction   2,422   —   —
Total Commercial Loans   2,454   62   190
Residential Loans:         
Residential mortgage   4,472   5,406   4,090
Total Residential Loans   4,472   5,406   4,090
Total Non-Accrual Loans and Leases   6,926   5,468   4,280
Other Real Estate Owned   238   319   124
Total Non-Performing Assets $ 7,164 $ 5,787 $ 4,404
          
Accruing Loans and Leases Past Due 90 Days or More         
Commercial Loans:         
Commercial and industrial $ 4,007 $ 1,429 $ 350
Commercial real estate   757   1,013   —
Construction   148   2,367   89
Total Commercial Loans   4,912   4,809   439
Residential Loans:         
Residential mortgage   82   74   —
Home equity line   2,566   2,995   2,448
Total Residential Loans   2,648   3,069   2,448
Consumer   3,353   4,272   3,538
Total Accruing Loans and Leases Past Due 90 Days or More $ 10,913 $ 12,150 $ 6,425
          
Restructured Loans on Accrual Status and Not Past Due 90 Days or More   17,823   14,493   25,229
Total Loans and Leases $ 13,380,270 $ 13,211,650 $ 13,197,454
          


Allowance for Credit Losses        Table 10
  For the Three Months Ended
  March 31,  December 31,  March 31, 
(dollars in thousands) 2020 2019 2019
Balance at Beginning of Period $ 130,530  $132,964  $141,718 
Adjustment to Adopt ASC Topic 326   770       
After Adoption of ASC Topic 326   131,300   132,964   141,718 
Loans and Leases Charged-Off         
Commercial Loans:         
Commercial and industrial   (201)  (204)   
Lease financing   —      (24)
Total Commercial Loans   (201)  (204)  (24)
Residential Loans:         
Residential mortgage   —   (236)   
Home equity line   (8)  (195)   
Total Residential Loans   (8)  (431)   
Consumer   (8,597)  (8,689)  (8,598)
Total Loans and Leases Charged-Off   (8,806)  (9,324)  (8,622)
Recoveries on Loans and Leases Previously Charged-Off         
Commercial Loans:         
Commercial and industrial   220   107   37 
Commercial real estate   —   170   31 
Construction   110       
Total Commercial Loans   330   277   68 
Residential Loans:         
Residential mortgage   135   37   218 
Home equity line   122   70   32 
Total Residential Loans   257   107   250 
Consumer   2,083   2,256   2,452 
Total Recoveries on Loans and Leases Previously Charged-Off   2,670   2,640   2,770 
Net Loans and Leases Charged-Off   (6,136)  (6,684)  (5,852)
Provision for Credit Losses - Loans and Leases   40,849   4,250   5,680 
Balance at End of Period $ 166,013  $130,530  $141,546 
Average Loans and Leases Outstanding $ 13,191,426  $12,940,956  $13,073,708 
Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1)   0.19  0.20%  0.18%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding   1.24  0.99%  1.07%

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

           
GAAP to Non-GAAP Reconciliation      Table 11 
  For the Three Months Ended  
  March 31,  December 31,  March 31,  
(dollars in thousands, except per share amounts) 2020  2019 2019 
Income Statement Data:          
Net income $ 38,865 $ 67,836 $ 69,924 
Core net income $ 38,803 $ 71,250 $ 72,052 
           
Average total stockholders' equity $ 2,660,811 $ 2,636,651 $ 2,540,600 
Less: average goodwill   995,492   995,492   995,492 
Average tangible stockholders' equity $ 1,665,319 $ 1,641,159 $ 1,545,108 
           
Average total assets $ 20,313,304 $ 20,089,601 $ 20,494,837 
Less: average goodwill   995,492   995,492   995,492 
Average tangible assets $ 19,317,812 $ 19,094,109 $ 19,499,345 
           
Return on average total stockholders' equity(1)   5.87  10.21  11.16
Core return on average total stockholders' equity (non-GAAP)(1)   5.87  10.72  11.50
Return on average tangible stockholders' equity (non-GAAP)(1)   9.39  16.40  18.35
Core return on average tangible stockholders' equity (non-GAAP)(1)   9.37  17.22  18.91
           
Return on average total assets(1)   0.77  1.34  1.38
Core return on average total assets (non-GAAP)(1)   0.77  1.41  1.43
Return on average tangible assets (non-GAAP)(1)   0.81  1.41  1.45
Core return on average tangible assets (non-GAAP)(1)   0.81  1.48  1.50
           


  As of As of As of 
  March 31,  December 31,  March 31,  
  2020 2019 2019 
Balance Sheet Data:          
Total stockholders' equity $ 2,664,685 $ 2,640,258 $ 2,613,202 
Less: goodwill   995,492   995,492   995,492 
Tangible stockholders' equity $ 1,669,193 $ 1,644,766 $ 1,617,710 
           
Total assets $ 20,755,891 $ 20,166,734 $ 20,441,136 
Less: goodwill   995,492   995,492   995,492 
Tangible assets $ 19,760,399 $ 19,171,242 $ 19,445,644 
           
Shares outstanding   129,827,968   129,928,479   135,012,015 
           
Total stockholders' equity to total assets   12.84  13.09  12.78%
Tangible stockholders' equity to tangible assets (non-GAAP)   8.45  8.58  8.32%
           
Book value per share $ 20.52 $ 20.32 $ 19.36 
Tangible book value per share (non-GAAP) $ 12.86 $ 12.66 $ 11.98 

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

GAAP to Non-GAAP Reconciliation        Table 12
  For the Three Months Ended
  March 31,  December 31,  March 31, 
(dollars in thousands, except per share amounts) 2020 2019 2019
Net interest income $ 138,683  $139,619  $145,089 
Core net interest income (non-GAAP) $ 138,683  $139,619  $145,089 
          
Noninterest income $ 49,228  $46,708  $47,072 
(Gain) loss on sale of securities   (85)  123   2,613 
Costs associated with the sale of stock   —   4,500    
Core noninterest income (non-GAAP) $ 49,143  $51,331  $49,685 
          
Noninterest expense $ 96,466  $91,058  $92,623 
One-time items(1)   —   (48)  (261)
Core noninterest expense (non-GAAP) $ 96,466  $91,010  $92,362 
          
Net income $ 38,865  $67,836  $69,924 
(Gain) loss on sale of securities   (85)  123   2,613 
Costs associated with the sale of stock   —   4,500    
One-time noninterest expense items(1)   —   48   261 
Tax adjustments(2)   23   (1,257)  (746)
Total core adjustments   (62)  3,414   2,128 
Core net income (non-GAAP) $ 38,803  $71,250  $72,052 
          
Basic earnings per share $ 0.30  $0.52  $0.52 
Diluted earnings per share $ 0.30  $0.52  $0.52 
Efficiency ratio   51.33%  48.86%  48.20%
          
Core basic earnings per share (non-GAAP) $ 0.30  $0.55  $0.53 
Core diluted earnings per share (non-GAAP) $ 0.30  $0.54  $0.53 
Core efficiency ratio (non-GAAP)   51.35%  47.65%  47.42%
             

(1) One-time items for all periods shown included nonrecurring offering costs.

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

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