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First Hawaiian, Inc. Reports Second Quarter 2021 Financial Results and Declares Dividend
Source: Nasdaq GlobeNewswire / 23 Jul 2021 08:00:02 America/New_York
HONOLULU, July 23, 2021 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended June 30, 2021.
“We are pleased with our financial performance during the second quarter, which was driven by the strong return of tourism and pickup in the local economy,” said Bob Harrison, Chairman, President and CEO. “We had good activity in the loan portfolio, solid growth in fee income and credit quality remained excellent. In addition, we benefitted from the improved outlook for the local economy with the release of $35 million from our reserves for credit losses.”
On July 21, 2021 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on September 3, 2021 to stockholders of record at the close of business on August 23, 2021.
Second Quarter 2021 Highlights:
- Net income of $86.7 million, or $0.67 per diluted share
- Total loans and leases decreased $196.5 million, or 1.5%, versus prior quarter
- Total deposits increased $701.4 million, or 3.5%, versus prior quarter
- Recorded a $35.0 million negative provision for credit losses
- Board of Directors declared a quarterly dividend of $0.26 per share
- Repurchased $22.4 million of stock under share repurchase program
Balance Sheet
Total assets were $24.2 billion as of June 30, 2021, compared to $23.5 billion as of March 31, 2021.
Gross loans and leases were $13.1 billion as of June 30, 2021, a decrease of $196.5 million, or 1.5%, from $13.3 billion as of March 31, 2021.
Total deposits were $20.8 billion as of June 30, 2021, an increase of $701.4 million, or 3.5%, from $20.1 billion as of March 31, 2021.
Net Interest Income
Net interest income for the second quarter of 2021 was $131.5 million, an increase of $2.3 million, or 1.8%, compared to $129.2 million for the prior quarter.
The net interest margin (NIM) was 2.46% in the second quarter of 2021, a decrease of 9 basis points compared to 2.55% in the first quarter of 2021.
Provision Expense
During the quarter ended June 30, 2021, we recorded a $35.0 million negative provision for credit losses. We did not record a provision for credit losses in the quarter ended March 31, 2021.
Noninterest Income
Noninterest income was $49.4 million in the second quarter of 2021, an increase of $5.5 million compared to noninterest income of $43.9 million in the first quarter of 2021.
Noninterest Expense
Noninterest expense was $99.4 million in the second quarter of 2021, an increase of $3.1 million compared to noninterest expense of $96.3 million in the first quarter of 2021.
The efficiency ratio was 54.7% and 55.5% for the quarters ended June 30, 2021 and March 31, 2021, respectively.
Taxes
The effective tax rate was 25.5% for the quarter ended June 30, 2021 and 24.8% for the quarter ended March 31, 2021.
Asset Quality
The allowance for credit losses was $169.1 million, or 1.29% of total loans and leases, as of June 30, 2021, compared to $200.4 million, or 1.51% of total loans and leases, as of March 31, 2021. The reserve for unfunded commitments was $29.2 million as of June 30, 2021 compared to $34.1 million as of March 31, 2021. Net charge-offs were $1.1 million, or 0.03% of average loans and leases on an annualized basis, for the quarter ended June 30, 2021, compared to net charge-offs of $4.6 million, or 0.14% of average loans and leases on an annualized basis, for the quarter ended March 31, 2021. Total non-performing assets were $8.9 million, or 0.07% of total loans and leases and other real estate owned, at June 30, 2021, compared to total non-performing assets of $9.1 million, or 0.07% of total loans and leases and other real estate owned at March 31, 2021.
Capital
Total stockholders' equity was $2.7 billion at both June 30, 2021 and March 31, 2021.
The tier 1 leverage, common equity tier 1 and total capital ratios were 7.68%, 12.76% and 14.01%, respectively, at June 30, 2021, compared with 7.90%, 12.82% and 14.07%, respectively, at March 31, 2021.
The Company repurchased 0.8 million shares of common stock at a total cost of $22.4 million under the stock repurchase program in the second quarter. The average cost was $27.99 per share repurchased. Remaining buyback authority under the stock repurchase program was $43.1 million at June 30, 2021.
First Hawaiian, Inc.
First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com.
Conference Call Information
First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time. To access the call, participants should dial (844) 452-2942 (US/Canada), or (574) 990-9846 (International) ten minutes prior to the start of the call and enter the conference ID: 3681457. 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 July 30, 2021. Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 3681457.
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, 2020 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021.Use of Non-GAAP Financial Measures
We present net interest income, noninterest income, noninterest expense, net income, earnings per share (basic and diluted) and the related ratios described below, on an adjusted, or ‘‘core,’’ basis, each a non-GAAP financial measure. These core measures exclude from the corresponding GAAP measure the impact of certain items that we do not believe are representative of our financial results. We believe that the presentation of these non-GAAP financial measures helps identify underlying trends in our business from period to period that could otherwise be distorted by the effect of certain expenses, gains and other items included in our operating results. We believe that these core measures provide useful information about our operating results and enhance the overall understanding of our past performance and future performance. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition.
Core net interest margin, core efficiency ratio, core return on average total assets and core return on average total stockholders’ equity are non-GAAP financial measures. We compute our core net interest margin as the ratio of core net interest income to average earning assets. We compute our core efficiency ratio as the ratio of core noninterest expense to the sum of core net interest income and core noninterest income. We compute our core return on average total assets as the ratio of core net income to average total assets. We compute our core return on average total stockholders’ equity as the ratio of core net income to average total stockholders’ equity.
Return on average tangible stockholders’ equity, core return on average tangible stockholders’ equity, return on average tangible assets, core return on average tangible assets and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our core return on average tangible stockholders’ equity as the ratio of core net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our core return on average tangible assets as the ratio of core net income to average tangible assets. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP.
Tables 14 and 15 at the end of this document provide a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.
Investor Relations Contact:
Kevin Haseyama, CFA
(808) 525-6268
khaseyama@fhb.comMedia Contact:
Susan Kam
(808) 525-6254
skam@fhb.comFinancial 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) 2021 2021 2020 2021 2020 Operating Results: Net interest income $ 131,481 $ 129,158 $ 127,822 $ 260,639 $ 266,505 Provision for credit losses (35,000 ) — 55,446 (35,000 ) 96,646 Noninterest income 49,371 43,868 45,656 93,239 94,884 Noninterest expense 99,388 96,306 91,450 195,694 187,916 Net income 86,741 57,693 20,049 144,434 58,914 Basic earnings per share 0.67 0.44 0.15 1.11 0.45 Diluted earnings per share 0.67 0.44 0.15 1.11 0.45 Dividends declared per share 0.26 0.26 0.26 0.52 0.52 Dividend payout ratio 38.81 % 59.09 % 173.33 % 46.85 % 115.56 % Supplemental Income Statement Data (non-GAAP): Core net interest income $ 131,481 $ 129,158 $ 127,822 $ 260,639 $ 266,505 Core noninterest income 49,269 43,868 45,867 93,137 95,010 Core noninterest expense 98,228 96,306 91,450 194,534 187,916 Core net income 87,704 57,693 20,204 145,397 59,007 Core basic earnings per share 0.68 0.44 0.16 1.12 0.45 Core diluted earnings per share 0.68 0.44 0.16 1.12 0.45 Performance Ratios(1): Net interest margin 2.46 % 2.55 % 2.58 % 2.50 % 2.84 % Core net interest margin (non-GAAP) 2.46 % 2.55 % 2.58 % 2.50 % 2.84 % Efficiency ratio 54.74 % 55.53 % 52.70 % 55.12 % 51.99 % Core efficiency ratio (non-GAAP) 54.13 % 55.53 % 52.64 % 54.81 % 51.97 % Return on average total assets 1.45 % 1.02 % 0.36 % 1.24 % 0.56 % Core return on average total assets (non-GAAP) 1.46 % 1.02 % 0.36 % 1.25 % 0.56 % Return on average tangible assets (non-GAAP) 1.51 % 1.07 % 0.38 % 1.30 % 0.58 % Core return on average tangible assets (non-GAAP)(2) 1.53 % 1.07 % 0.38 % 1.30 % 0.58 % Return on average total stockholders' equity 12.92 % 8.58 % 2.99 % 10.75 % 4.42 % Core return on average total stockholders' equity (non-GAAP) 13.07 % 8.58 % 3.01 % 10.82 % 4.43 % Return on average tangible stockholders' equity (non-GAAP) 20.51 % 13.51 % 4.74 % 16.99 % 7.04 % Core return on average tangible stockholders’ equity (non-GAAP)(3) 20.74 % 13.51 % 4.77 % 17.10 % 7.05 % Average Balances: Average loans and leases $ 13,205,086 $ 13,242,270 $ 13,956,669 $ 13,223,575 $ 13,574,048 Average earning assets 21,539,264 20,476,149 19,854,795 21,010,643 18,834,492 Average assets 24,015,065 22,944,699 22,341,654 23,482,839 21,327,479 Average deposits 20,638,015 19,503,067 18,540,394 20,073,676 17,541,849 Average stockholders' equity 2,691,966 2,727,701 2,697,775 2,709,735 2,679,293 Market Value Per Share: Closing 28.34 27.37 17.24 28.34 17.24 High 29.85 30.80 21.50 30.80 31.25 Low 24.75 23.14 13.56 23.14 13.56 As of As of As of As of June 30, March 31, December 31, June 30, (dollars in thousands, except per share data) 2021 2021 2020 2020 Balance Sheet Data: Loans and leases $ 13,103,785 $ 13,300,289 $ 13,279,097 $ 13,764,030 Total assets 24,246,328 23,497,596 22,662,831 22,993,715 Total deposits 20,835,115 20,133,681 19,227,723 19,361,634 Short-term borrowings — — — 200,000 Long-term borrowings 200,000 200,010 200,010 200,019 Total stockholders' equity 2,731,341 2,683,630 2,744,104 2,701,897 Per Share of Common Stock: Book value $ 21.17 $ 20.68 $ 21.12 $ 20.81 Tangible book value (non-GAAP)(4) 13.45 13.01 13.46 13.14 Asset Quality Ratios: Non-accrual loans and leases / total loans and leases 0.07 % 0.07 % 0.07 % 0.24 % Allowance for credit losses for loans and leases / total loans and leases 1.29 % 1.51 % 1.57 % 1.40 % Capital Ratios: Common Equity Tier 1 Capital Ratio 12.76 % 12.82 % 12.47 % 11.86 % Tier 1 Capital Ratio 12.76 % 12.82 % 12.47 % 11.86 % Total Capital Ratio 14.01 % 14.07 % 13.73 % 13.11 % Tier 1 Leverage Ratio 7.68 % 7.90 % 8.00 % 7.75 % Total stockholders' equity to total assets 11.26 % 11.42 % 12.11 % 11.75 % Tangible stockholders' equity to tangible assets (non-GAAP) 7.47 % 7.50 % 8.07 % 7.76 % Non-Financial Data: Number of branches 54 54 54 58 Number of ATMs 294 297 297 295 Number of Full-Time Equivalent Employees 2,087 2,090 2,103 2,100 ________________________
(1) Except for the efficiency ratio and the core efficiency ratio, amounts are annualized for the three and six months ended June 30, 2021 and 2020 and the three months ended March 31, 2021.(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 Six Months Ended June 30, March 31, June 30, June 30, (dollars in thousands, except per share amounts) 2021 2021 2020 2021 2020 Interest income Loans and lease financing $ 110,919 $ 110,939 $ 122,298 $ 221,858 $ 257,269 Available-for-sale securities 24,637 23,146 17,529 47,783 38,739 Other 666 491 792 1,157 3,143 Total interest income 136,222 134,576 140,619 270,798 299,151 Interest expense Deposits 3,363 4,056 8,583 7,419 24,183 Short-term and long-term borrowings 1,378 1,362 4,214 2,740 8,463 Total interest expense 4,741 5,418 12,797 10,159 32,646 Net interest income 131,481 129,158 127,822 260,639 266,505 Provision for credit losses (35,000 ) — 55,446 (35,000 ) 96,646 Net interest income after provision for credit losses 166,481 129,158 72,376 295,639 169,859 Noninterest income Service charges on deposit accounts 6,632 6,718 5,927 13,350 14,877 Credit and debit card fees 16,746 14,551 10,870 31,297 25,819 Other service charges and fees 10,303 8,846 7,912 19,149 16,451 Trust and investment services income 8,707 8,492 8,664 17,199 18,255 Bank-owned life insurance 3,104 2,389 4,432 5,493 6,692 Investment securities gains (losses), net 102 — (211 ) 102 (126 ) Other 3,777 2,872 8,062 6,649 12,916 Total noninterest income 49,371 43,868 45,656 93,239 94,884 Noninterest expense Salaries and employee benefits 45,982 43,936 42,414 89,918 87,243 Contracted services and professional fees 16,516 17,188 15,478 33,704 31,533 Occupancy 7,314 7,170 7,302 14,484 14,545 Equipment 6,362 5,491 5,207 11,853 9,915 Regulatory assessment and fees 1,826 2,034 2,100 3,860 4,046 Advertising and marketing 1,469 1,591 1,402 3,060 3,225 Card rewards program 6,262 4,835 5,163 11,097 12,178 Other 13,657 14,061 12,384 27,718 25,231 Total noninterest expense 99,388 96,306 91,450 195,694 187,916 Income before provision for income taxes 116,464 76,720 26,582 193,184 76,827 Provision for income taxes 29,723 19,027 6,533 48,750 17,913 Net income $ 86,741 $ 57,693 $ 20,049 $ 144,434 $ 58,914 Basic earnings per share $ 0.67 $ 0.44 $ 0.15 $ 1.11 $ 0.45 Diluted earnings per share $ 0.67 $ 0.44 $ 0.15 $ 1.11 $ 0.45 Basic weighted-average outstanding shares 129,392,339 129,933,104 129,856,730 129,661,228 129,876,218 Diluted weighted-average outstanding shares 129,828,847 130,589,878 130,005,195 130,164,762 130,163,722 Consolidated Balance Sheets Table 3 June 30, March 31, December 31, June 30, (dollars in thousands) 2021 2021 2020 2020 Assets Cash and due from banks $ 347,861 $ 278,994 $ 303,373 $ 347,592 Interest-bearing deposits in other banks 1,558,437 983,816 737,571 1,507,630 Investment securities, at fair value (amortized cost: $6,951,153 as of June 30, 2021, $6,708,431 as of March 31, 2021, $5,985,031 as of December 31, 2020 and $5,025,433 as of June 30, 2020) 6,953,930 6,692,479 6,071,415 5,135,775 Loans held for sale 1,241 9,390 11,579 6,698 Loans and leases 13,103,785 13,300,289 13,279,097 13,764,030 Less: allowance for credit losses 169,148 200,366 208,454 192,120 Net loans and leases 12,934,637 13,099,923 13,070,643 13,571,910 Premises and equipment, net 319,452 319,949 322,401 322,919 Other real estate owned and repossessed personal property — — — 446 Accrued interest receivable 66,734 69,879 69,626 58,420 Bank-owned life insurance 466,402 468,927 466,537 458,720 Goodwill 995,492 995,492 995,492 995,492 Mortgage servicing rights 10,007 10,869 10,731 11,595 Other assets 592,135 567,878 603,463 576,518 Total assets $ 24,246,328 $ 23,497,596 $ 22,662,831 $ 22,993,715 Liabilities and Stockholders' Equity Deposits: Interest-bearing $ 12,245,193 $ 11,958,606 $ 11,705,609 $ 12,481,543 Noninterest-bearing 8,589,922 8,175,075 7,522,114 6,880,091 Total deposits 20,835,115 20,133,681 19,227,723 19,361,634 Short-term borrowings — — — 200,000 Long-term borrowings 200,000 200,010 200,010 200,019 Retirement benefits payable 144,101 143,736 143,373 138,624 Other liabilities 335,771 336,539 347,621 391,541 Total liabilities 21,514,987 20,813,966 19,918,727 20,291,818 Stockholders' equity Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,542,398 / 129,019,871 shares as of June 30, 2021, issued/outstanding: 140,455,180 / 129,749,890 shares as of March 31, 2021, issued/outstanding: 140,191,133 / 129,912,272 shares as of December 31, 2020 and issued/outstanding: 140,140,542 / 129,866,898 shares as of June 30, 2020) 1,405 1,405 1,402 1,401 Additional paid-in capital 2,520,790 2,517,048 2,514,014 2,509,271 Retained earnings 550,511 497,418 473,974 415,296 Accumulated other comprehensive (loss) income, net (29,702 ) (43,435 ) 31,604 52,731 Treasury stock (11,522,527 shares as of June 30, 2021, 10,705,290 shares as of March 31, 2021, 10,278,861 shares as of December 31, 2020 and 10,273,644 shares as of June 30, 2020) (311,663 ) (288,806 ) (276,890 ) (276,802 ) Total stockholders' equity 2,731,341 2,683,630 2,744,104 2,701,897 Total liabilities and stockholders' equity $ 24,246,328 $ 23,497,596 $ 22,662,831 $ 22,993,715 Average Balances and Interest Rates Table 4 Three Months Ended Three Months Ended Three Months Ended June 30, 2021 March 31, 2021 June 30, 2020 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 $ 1,503.0 $ 0.4 0.10 % $ 938.7 $ 0.2 0.10 % $ 1,436.2 $ 0.4 0.10 % Available-for-Sale Investment Securities Taxable 6,298.3 22.5 1.43 5,949.9 22.1 1.49 4,389.7 17.5 1.60 Non-Taxable 468.4 2.7 2.30 278.0 1.3 1.80 0.7 — 2.58 Total Available-for-Sale Investment Securities 6,766.7 25.2 1.49 6,227.9 23.4 1.50 4,390.4 17.5 1.60 Loans Held for Sale 2.0 — 1.44 9.2 0.1 2.46 9.8 0.1 2.93 Loans and Leases(1) Commercial and industrial 2,882.1 21.1 2.94 3,026.7 20.4 2.74 3,601.0 24.3 2.71 Commercial real estate 3,419.7 25.3 2.97 3,385.2 24.9 2.98 3,438.8 28.3 3.31 Construction 800.9 6.3 3.15 746.8 5.8 3.16 584.1 4.9 3.35 Residential: Residential mortgage 3,765.4 34.0 3.62 3,696.1 34.7 3.76 3,682.7 35.7 3.88 Home equity line 812.6 5.5 2.72 822.0 5.7 2.80 885.2 6.8 3.07 Consumer 1,277.9 16.9 5.32 1,323.7 17.7 5.43 1,526.5 20.6 5.42 Lease financing 246.5 1.9 3.06 241.8 1.8 3.02 238.4 1.7 2.88 Total Loans and Leases 13,205.1 111.0 3.37 13,242.3 111.0 3.39 13,956.7 122.3 3.52 Other Earning Assets 62.5 0.3 1.91 58.0 0.3 1.79 61.7 0.4 2.79 Total Earning Assets(2) 21,539.3 136.9 2.55 20,476.1 135.0 2.66 19,854.8 140.7 2.84 Cash and Due from Banks 290.7 294.0 295.1 Other Assets 2,185.1 2,174.6 2,191.8 Total Assets $ 24,015.1 $ 22,944.7 $ 22,341.7 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 6,361.8 $ 0.5 0.03 % $ 5,975.1 $ 0.6 0.04 % 5,501.9 $ 0.9 0.07 % Money Market 3,783.1 0.5 0.06 3,530.0 0.4 0.05 3,270.3 1.1 0.13 Time 2,034.5 2.3 0.45 2,288.5 3.0 0.53 3,335.6 6.6 0.79 Total Interest-Bearing Deposits 12,179.4 3.3 0.11 11,793.6 4.0 0.14 12,107.8 8.6 0.29 Short-Term Borrowings — — — — — — 395.6 2.8 2.88 Long-Term Borrowings 200.0 1.4 2.76 200.0 1.4 2.76 200.0 1.4 2.77 Total Interest-Bearing Liabilities 12,379.4 4.7 0.15 11,993.6 5.4 0.18 12,703.4 12.8 0.41 Net Interest Income $ 132.2 $ 129.6 $ 127.9 Interest Rate Spread 2.40 % 2.48 % 2.43 % Net Interest Margin 2.46 % 2.55 % 2.58 % Noninterest-Bearing Demand Deposits 8,458.6 7,709.5 6,432.6 Other Liabilities 485.1 513.9 507.9 Stockholders' Equity 2,692.0 2,727.7 2,697.8 Total Liabilities and Stockholders' Equity $ 24,015.1 $ 22,944.7 $ 22,341.7 ________________________
(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, $0.4 million and $0.1 million for the three months ended June 30, 2021, March 31, 2021 and June 30, 2020, respectively.
Average Balances and Interest Rates Table 5 Six Months Ended Six Months Ended June 30, 2021 June 30, 2020 Average Income/ Yield/ Average Income/ Yield/ (dollars in millions) Balance Expense Rate Balance Expense Rate Earning Assets Interest-Bearing Deposits in Other Banks $ 1,222.4 $ 0.6 0.10 % $ 976.5 $ 2.0 0.40 % Available-for-Sale Investment Securities Taxable 6,125.1 44.6 1.46 4,211.4 38.7 1.84 Non-Taxable 373.7 4.0 2.11 0.4 — 2.58 Total Available-for-Sale Investment Securities 6,498.8 48.6 1.49 4,211.8 38.7 1.84 Loans Held for Sale 5.6 0.1 2.28 12.8 0.1 2.17 Loans and Leases(1) Commercial and industrial 2,954.0 41.5 2.84 3,188.4 48.9 3.08 Commercial real estate 3,402.6 50.2 2.98 3,426.3 62.9 3.69 Construction 774.0 12.1 3.16 561.5 10.6 3.79 Residential: Residential mortgage 3,730.9 68.7 3.68 3,711.5 73.4 3.95 Home equity line 817.3 11.2 2.76 886.3 14.5 3.28 Consumer 1,300.7 34.7 5.37 1,569.2 43.6 5.59 Lease financing 244.1 3.7 3.04 230.8 3.3 2.90 Total Loans and Leases 13,223.6 222.1 3.38 13,574.0 257.2 3.80 Other Earning Assets 60.2 0.5 1.85 59.4 1.2 3.99 Total Earning Assets(2) 21,010.6 271.9 2.60 18,834.5 299.2 3.19 Cash and Due from Banks 292.3 311.2 Other Assets 2,179.9 2,181.8 Total Assets $ 23,482.8 $ 21,327.5 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 6,169.5 $ 1.1 0.04 % $ 5,296.1 $ 4.2 0.16 % Money Market 3,657.3 1.0 0.05 3,167.6 5.7 0.36 Time 2,160.8 5.3 0.49 2,935.1 14.3 0.98 Total Interest-Bearing Deposits 11,987.6 7.4 0.12 11,398.8 24.2 0.43 Short-Term Borrowings — — — 398.6 5.7 2.88 Long-Term Borrowings 200.0 2.7 2.76 200.0 2.7 2.77 Total Interest-Bearing Liabilities 12,187.6 10.1 0.17 11,997.4 32.6 0.55 Net Interest Income $ 261.8 $ 266.6 Interest Rate Spread 2.43 % 2.64 % Net Interest Margin 2.50 % 2.84 % Noninterest-Bearing Demand Deposits 8,086.1 6,143.0 Other Liabilities 499.4 507.8 Stockholders' Equity 2,709.7 2,679.3 Total Liabilities and Stockholders' Equity $ 23,482.8 $ 21,327.5 ________________________
(1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.(2) Interest income includes taxable-equivalent basis adjustments of $1.1 million and $0.1 million for the six months ended June 30, 2021 and 2020, respectively.
Analysis of Change in Net Interest Income Table 6 Three Months Ended June 30, 2021 Compared to March 31, 2021 (dollars in millions) Volume Rate Total Change in Interest Income: Interest-Bearing Deposits in Other Banks $ 0.2 $ — $ 0.2 Available-for-Sale Investment Securities Taxable 1.3 (0.9 ) 0.4 Non-Taxable 1.0 0.4 1.4 Total Available-for-Sale Investment Securities 2.3 (0.5 ) 1.8 Loans Held for Sale (0.1 ) — (0.1 ) Loans and Leases Commercial and industrial (0.9 ) 1.6 0.7 Commercial real estate 0.4 — 0.4 Construction 0.5 — 0.5 Residential: Residential mortgage 0.6 (1.3 ) (0.7 ) Home equity line (0.1 ) (0.1 ) (0.2 ) Consumer (0.5 ) (0.3 ) (0.8 ) Lease financing 0.1 — 0.1 Total Loans and Leases 0.1 (0.1 ) — Total Change in Interest Income 2.5 (0.6 ) 1.9 Change in Interest Expense: Interest-Bearing Deposits Savings — (0.1 ) (0.1 ) Money Market — 0.1 0.1 Time (0.3 ) (0.4 ) (0.7 ) Total Interest-Bearing Deposits (0.3 ) (0.4 ) (0.7 ) Total Change in Interest Expense (0.3 ) (0.4 ) (0.7 ) Change in Net Interest Income $ 2.8 $ (0.2 ) $ 2.6 Analysis of Change in Net Interest Income Table 7 Three Months Ended June 30, 2021 Compared to June 30, 2020 (dollars in millions) Volume Rate Total Change in Interest Income: Available-for-Sale Investment Securities Taxable $ 7.0 $ (2.0 ) $ 5.0 Non-Taxable 2.7 — 2.7 Total Available-for-Sale Investment Securities 9.7 (2.0 ) 7.7 Loans Held for Sale (0.1 ) — (0.1 ) Loans and Leases Commercial and industrial (5.2 ) 2.0 (3.2 ) Commercial real estate (0.1 ) (2.9 ) (3.0 ) Construction 1.7 (0.3 ) 1.4 Residential: Residential mortgage 0.8 (2.5 ) (1.7 ) Home equity line (0.5 ) (0.8 ) (1.3 ) Consumer (3.3 ) (0.4 ) (3.7 ) Lease financing 0.1 0.1 0.2 Total Loans and Leases (6.5 ) (4.8 ) (11.3 ) Other Earning Assets — (0.1 ) (0.1 ) Total Change in Interest Income 3.1 (6.9 ) (3.8 ) Change in Interest Expense: Interest-Bearing Deposits Savings 0.1 (0.5 ) (0.4 ) Money Market 0.1 (0.7 ) (0.6 ) Time (2.0 ) (2.3 ) (4.3 ) Total Interest-Bearing Deposits (1.8 ) (3.5 ) (5.3 ) Short-Term Borrowings (1.4 ) (1.4 ) (2.8 ) Total Change in Interest Expense (3.2 ) (4.9 ) (8.1 ) Change in Net Interest Income $ 6.3 $ (2.0 ) $ 4.3 Analysis of Change in Net Interest Income Table 8 Six Months Ended June 30, 2021 Compared to June 30, 2020 (dollars in millions) Volume Rate Total Change in Interest Income: Interest-Bearing Deposits in Other Banks $ 0.3 $ (1.7 ) $ (1.4 ) Available-for-Sale Investment Securities Taxable 15.0 (9.1 ) 5.9 Non-Taxable 4.0 — 4.0 Total Available-for-Sale Investment Securities 19.0 (9.1 ) 9.9 Loans and Leases Commercial and industrial (3.6 ) (3.8 ) (7.4 ) Commercial real estate (0.4 ) (12.3 ) (12.7 ) Construction 3.5 (2.0 ) 1.5 Residential: Residential mortgage 0.4 (5.1 ) (4.7 ) Home equity line (1.1 ) (2.2 ) (3.3 ) Consumer (7.3 ) (1.6 ) (8.9 ) Lease financing 0.2 0.2 0.4 Total Loans and Leases (8.3 ) (26.8 ) (35.1 ) Other Earning Assets — (0.7 ) (0.7 ) Total Change in Interest Income 11.0 (38.3 ) (27.3 ) Change in Interest Expense: Interest-Bearing Deposits Savings 0.5 (3.6 ) (3.1 ) Money Market 0.8 (5.5 ) (4.7 ) Time (3.1 ) (5.9 ) (9.0 ) Total Interest-Bearing Deposits (1.8 ) (15.0 ) (16.8 ) Short-Term Borrowings (2.8 ) (2.9 ) (5.7 ) Total Change in Interest Expense (4.6 ) (17.9 ) (22.5 ) Change in Net Interest Income $ 15.6 $ (20.4 ) $ (4.8 ) Loans and Leases Table 9 June 30, March 31, December 31, June 30, (dollars in thousands) 2021 2021 2020 2020 Commercial and industrial: Commercial and industrial excluding Paycheck Protection Program loans $ 1,753,444 $ 1,962,672 $ 2,218,266 $ 2,507,312 Paycheck Protection Program loans 811,103 1,158,764 801,241 916,396 Total commercial and industrial 2,564,547 3,121,436 3,019,507 3,423,708 Commercial real estate 3,528,068 3,396,233 3,392,676 3,423,499 Construction 853,865 739,271 735,819 617,935 Residential: Residential mortgage 3,821,407 3,715,676 3,690,218 3,691,950 Home equity line 825,368 805,746 841,624 876,491 Total residential 4,646,775 4,521,422 4,531,842 4,568,441 Consumer 1,267,559 1,283,779 1,353,842 1,492,160 Lease financing 242,971 238,148 245,411 238,287 Total loans and leases $ 13,103,785 $ 13,300,289 $ 13,279,097 $ 13,764,030 Deposits Table 10 June 30, March 31, December 31, June 30, (dollars in thousands) 2021 2021 2020 2020 Demand $ 8,589,922 $ 8,175,075 $ 7,522,114 $ 6,880,091 Savings 6,421,053 6,141,161 6,020,075 5,727,367 Money Market 3,920,477 3,642,604 3,337,236 3,247,511 Time 1,903,663 2,174,841 2,348,298 3,506,665 Total Deposits $ 20,835,115 $ 20,133,681 $ 19,227,723 $ 19,361,634 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) 2021 2021 2020 2020 Non-Performing Assets Non-Accrual Loans and Leases Commercial Loans: Commercial and industrial $ 828 $ 593 $ 518 $ 11,559 Commercial real estate 937 937 80 13,168 Construction — 579 2,043 2,043 Total Commercial Loans 1,765 2,109 2,641 26,770 Residential Loans: Residential mortgage 7,140 6,999 6,441 6,059 Total Residential Loans 7,140 6,999 6,441 6,059 Total Non-Accrual Loans and Leases 8,905 9,108 9,082 32,829 Other Real Estate Owned — — — 446 Total Non-Performing Assets $ 8,905 $ 9,108 $ 9,082 $ 33,275 Accruing Loans and Leases Past Due 90 Days or More Commercial Loans: Commercial and industrial $ 494 $ 1,365 $ 2,108 $ 2,309 Commercial real estate — 1,054 882 900 Construction 60 89 93 248 Total Commercial Loans 554 2,508 3,083 3,457 Residential Loans: Home equity line 4,680 4,975 4,818 4,496 Total Residential Loans 4,680 4,975 4,818 4,496 Consumer 1,134 2,024 3,266 2,167 Total Accruing Loans and Leases Past Due 90 Days or More $ 6,368 $ 9,507 $ 11,167 $ 10,120 Restructured Loans on Accrual Status and Not Past Due 90 Days or More $ 36,668 $ 39,831 $ 16,684 $ 11,182 Total Loans and Leases $ 13,103,785 $ 13,300,289 $ 13,279,097 $ 13,764,030 Allowance for Credit Losses 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) 2021 2021 2020 2021 2020 Balance at Beginning of Period $ 200,366 $ 208,454 $ 166,013 $ 208,454 $ 130,530 Adjustment to Adopt ASC Topic 326 — — — — 770 After Adoption of ASC Topic 326 200,366 208,454 166,013 208,454 131,300 Loans and Leases Charged-Off Commercial Loans: Commercial and industrial (330 ) (963 ) (13,974 ) (1,293 ) (14,175 ) Commercial real estate — (66 ) (2,723 ) (66 ) (2,723 ) Construction — — (379 ) — (379 ) Total Commercial Loans (330 ) (1,029 ) (17,076 ) (1,359 ) (17,277 ) Residential Loans: Residential mortgage — (98 ) (14 ) (98 ) (14 ) Home equity line — — — — (8 ) Total Residential Loans — (98 ) (14 ) (98 ) (22 ) Consumer (3,917 ) (6,541 ) (8,907 ) (10,458 ) (17,504 ) Total Loans and Leases Charged-Off (4,247 ) (7,668 ) (25,997 ) (11,915 ) (34,803 ) Recoveries on Loans and Leases Previously Charged-Off Commercial Loans: Commercial and industrial 287 215 100 502 320 Commercial real estate 12 3 — 15 — Construction — 166 30 166 140 Total Commercial Loans 299 384 130 683 460 Residential Loans: Residential mortgage 14 17 17 31 152 Home equity line 38 24 8 62 130 Total Residential Loans 52 41 25 93 282 Consumer 2,797 2,655 2,456 5,452 4,539 Total Recoveries on Loans and Leases Previously Charged-Off 3,148 3,080 2,611 6,228 5,281 Net Loans and Leases Charged-Off (1,099 ) (4,588 ) (23,386 ) (5,687 ) (29,522 ) Provision for Credit Losses - Loans and Leases (30,119 ) (3,500 ) 49,493 (33,619 ) 90,342 Balance at End of Period $ 169,148 $ 200,366 $ 192,120 $ 169,148 $ 192,120 Average Loans and Leases Outstanding $ 13,205,086 $ 13,242,270 $ 13,956,669 $ 13,223,575 $ 13,574,048 Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1) 0.03 % 0.14 % 0.67 % 0.09 % 0.44 % Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding 1.29 % 1.51 % 1.40 % 1.29 % 1.40 % ________________________
(1) Annualized for the three and six months ended June 30, 2021 and 2020 and three months ended March 31, 2021.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) 2021 2020 2019 2018 2017 Prior Cost Basis Cost Basis Total Commercial Lending Commercial and Industrial Risk rating: Pass $ 606,765 $ 422,457 $ 242,554 $ 136,069 $ 48,828 $ 207,502 $ 674,340 $ 23,935 $ 2,362,450 Special Mention 122 8,994 33,617 12,735 1,425 4,647 14,338 376 76,254 Substandard — 7,149 2,400 16,246 137 8,731 6,397 1,344 42,404 Other (1) 9,812 8,774 10,337 6,632 3,531 965 43,388 — 83,439 Total Commercial and Industrial 616,699 447,374 288,908 171,682 53,921 221,845 738,463 25,655 2,564,547 Commercial Real Estate Risk rating: Pass 288,366 342,013 571,608 557,533 449,551 1,055,803 63,775 2 3,328,651 Special Mention — 1,482 52,852 16,081 33,022 55,933 7,604 — 166,974 Substandard — 411 — 7,016 2,069 21,962 502 — 31,960 Other (1) — — — — — 483 — — 483 Total Commercial Real Estate 288,366 343,906 624,460 580,630 484,642 1,134,181 71,881 2 3,528,068 Construction Risk rating: Pass 49,592 97,149 296,405 173,352 62,983 70,998 55,892 — 806,371 Special Mention — — 494 705 — 361 — — 1,560 Substandard — — — 373 — 1,378 — — 1,751 Other (1) 11,829 15,036 5,247 5,381 2,953 2,930 807 — 44,183 Total Construction 61,421 112,185 302,146 179,811 65,936 75,667 56,699 — 853,865 Lease Financing Risk rating: Pass 21,690 69,598 55,494 11,376 16,623 60,091 — — 234,872 Special Mention 545 308 465 246 81 232 — — 1,877 Substandard — 2,720 1,668 260 1,072 502 — — 6,222 Total Lease Financing 22,235 72,626 57,627 11,882 17,776 60,825 — — 242,971 Total Commercial Lending $ 988,721 $ 976,091 $ 1,273,141 $ 944,005 $ 622,275 $ 1,492,518 $ 867,043 $ 25,657 $ 7,189,451 Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in thousands) 2021 2020 2019 2018 2017 Prior Cost Basis Cost Basis Total Residential Lending Residential Mortgage FICO: 740 and greater $ 570,542 $ 675,163 $ 329,047 $ 224,827 $ 293,853 $ 958,515 $ — $ — $ 3,051,947 680 - 739 68,225 86,857 50,699 43,075 42,753 144,223 — — 435,832 620 - 679 11,867 12,564 9,988 6,352 9,310 41,478 — — 91,559 550 - 619 — 1,018 171 1,322 1,752 11,788 — — 16,051 Less than 550 — 1,274 — 346 2,545 2,807 — — 6,972 No Score (3) 10,207 8,602 15,988 21,087 18,814 51,217 — — 125,915 Other (2) 10,440 17,605 12,917 11,910 19,349 20,130 625 155 93,131 Total Residential Mortgage 671,281 803,083 418,810 308,919 388,376 1,230,158 625 155 3,821,407 Home Equity Line FICO: 740 and greater — — — — — — 610,924 1,757 612,681 680 - 739 — — — — — — 147,286 3,619 150,905 620 - 679 — — — — — — 39,660 2,036 41,696 550 - 619 — — — — — — 12,966 1,256 14,222 Less than 550 — — — — — — 2,025 47 2,072 No Score (3) — — — — — — 3,792 — 3,792 Total Home Equity Line — — — — — — 816,653 8,715 825,368 Total Residential Lending 671,281 803,083 418,810 308,919 388,376 1,230,158 817,278 8,870 4,646,775 Consumer Lending FICO: 740 and greater 82,086 97,867 100,874 77,671 38,340 16,537 112,925 284 526,584 680 - 739 50,771 70,303 73,024 48,071 26,097 12,183 70,627 747 351,823 620 - 679 21,372 31,170 37,145 25,852 17,799 9,120 31,515 1,258 175,231 550 - 619 2,887 9,729 17,206 14,016 11,217 6,263 10,652 1,234 73,204 Less than 550 322 3,826 6,934 5,439 3,757 2,295 3,184 748 26,505 No Score (3) 834 63 85 51 87 4 33,144 420 34,688 Other (2) 394 370 1,759 52 2,183 49 74,717 — 79,524 Total Consumer Lending 158,666 213,328 237,027 171,152 99,480 46,451 336,764 4,691 1,267,559 Total Loans and Leases $ 1,818,668 $ 1,992,502 $ 1,928,978 $ 1,424,076 $ 1,110,131 $ 2,769,127 $ 2,021,085 $ 39,218 $ 13,103,785 ________________________
(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 Six Months Ended June 30, March 31, June 30, June 30, (dollars in thousands, except per share amounts) 2021 2021 2020 2021 2020 Income Statement Data: Net income $ 86,741 $ 57,693 $ 20,049 $ 144,434 $ 58,914 Core net income $ 87,704 $ 57,693 $ 20,204 $ 145,397 $ 59,007 Average total stockholders' equity $ 2,691,966 $ 2,727,701 $ 2,697,775 $ 2,709,735 $ 2,679,293 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible stockholders' equity $ 1,696,474 $ 1,732,209 $ 1,702,283 $ 1,714,243 $ 1,683,801 Average total assets $ 24,015,065 $ 22,944,699 $ 22,341,654 $ 23,482,839 $ 21,327,479 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible assets $ 23,019,573 $ 21,949,207 $ 21,346,162 $ 22,487,347 $ 20,331,987 Return on average total stockholders' equity(1) 12.92 % 8.58 % 2.99 % 10.75 % 4.42 % Core return on average total stockholders' equity (non-GAAP)(1) 13.07 % 8.58 % 3.01 % 10.82 % 4.43 % Return on average tangible stockholders' equity (non-GAAP)(1) 20.51 % 13.51 % 4.74 % 16.99 % 7.04 % Core return on average tangible stockholders' equity (non-GAAP)(1) 20.74 % 13.51 % 4.77 % 17.10 % 7.05 % Return on average total assets(1) 1.45 % 1.02 % 0.36 % 1.24 % 0.56 % Core return on average total assets (non-GAAP)(1) 1.46 % 1.02 % 0.36 % 1.25 % 0.56 % Return on average tangible assets (non-GAAP)(1) 1.51 % 1.07 % 0.38 % 1.30 % 0.58 % Core return on average tangible assets (non-GAAP)(1) 1.53 % 1.07 % 0.38 % 1.30 % 0.58 % As of As of As of As of June 30, March 31, December 31, June 30, 2021 2021 2020 2020 Balance Sheet Data: Total stockholders' equity $ 2,731,341 $ 2,683,630 $ 2,744,104 $ 2,701,897 Less: goodwill 995,492 995,492 995,492 995,492 Tangible stockholders' equity $ 1,735,849 $ 1,688,138 $ 1,748,612 $ 1,706,405 Total assets $ 24,246,328 $ 23,497,596 $ 22,662,831 $ 22,993,715 Less: goodwill 995,492 995,492 995,492 995,492 Tangible assets $ 23,250,836 $ 22,502,104 $ 21,667,339 $ 21,998,223 Shares outstanding 129,019,871 129,749,890 129,912,272 129,866,898 Total stockholders' equity to total assets 11.26 % 11.42 % 12.11 % 11.75 % Tangible stockholders' equity to tangible assets (non-GAAP) 7.47 % 7.50 % 8.07 % 7.76 % Book value per share $ 21.17 $ 20.68 $ 21.12 $ 20.81 Tangible book value per share (non-GAAP) $ 13.45 $ 13.01 $ 13.46 $ 13.14 ________________________
(1) Annualized for the three and six months ended June 30, 2021 and 2020 and three months ended March 31, 2021.GAAP to Non-GAAP Reconciliation Table 15 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) 2021 2021 2020 2021 2020 Net interest income $ 131,481 $ 129,158 $ 127,822 $ 260,639 $ 266,505 Core net interest income (non-GAAP) $ 131,481 $ 129,158 $ 127,822 $ 260,639 $ 266,505 Noninterest income $ 49,371 $ 43,868 $ 45,656 $ 93,239 $ 94,884 (Gains) losses on sale of securities (102 ) — 211 (102 ) 126 Core noninterest income (non-GAAP) $ 49,269 $ 43,868 $ 45,867 $ 93,137 $ 95,010 Noninterest expense $ 99,388 $ 96,306 $ 91,450 $ 195,694 $ 187,916 One-time items(1) (1,160 ) — — (1,160 ) — Core noninterest expense (non-GAAP) $ 98,228 $ 96,306 $ 91,450 $ 194,534 $ 187,916 Net income $ 86,741 $ 57,693 $ 20,049 $ 144,434 $ 58,914 (Gains) losses on sale of securities (102 ) — 211 (102 ) 126 One-time noninterest expense items(1) 1,160 — — 1,160 — Tax adjustments(2) (95 ) — (56 ) (95 ) (33 ) Total core adjustments 963 — 155 963 93 Core net income (non-GAAP) $ 87,704 $ 57,693 $ 20,204 $ 145,397 $ 59,007 Basic earnings per share $ 0.67 $ 0.44 $ 0.15 $ 1.11 $ 0.45 Diluted earnings per share $ 0.67 $ 0.44 $ 0.15 $ 1.11 $ 0.45 Efficiency ratio 54.74 % 55.53 % 52.70 % 55.12 % 51.99 % Core basic earnings per share (non-GAAP) $ 0.68 $ 0.44 $ 0.16 $ 1.12 $ 0.45 Core diluted earnings per share (non-GAAP) $ 0.68 $ 0.44 $ 0.16 $ 1.12 $ 0.45 Core efficiency ratio (non-GAAP) 54.13 % 55.53 % 52.64 % 54.81 % 51.97 % ________________________
(1) One-time items consisted of severance costs.(2) Represents the adjustments to net income, tax effected at the Company’s effective tax rate for the respective period.
