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First Hawaiian, Inc. Reports First Quarter 2022 Financial Results and Declares Dividend
Source: Nasdaq GlobeNewswire / 22 Apr 2022 08:00:02 America/New_York
HONOLULU, April 22, 2022 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended March 31, 2022.
“I’m pleased to report that we started 2022 with a strong quarter,” said Bob Harrison, Chairman, President and CEO. “We had good earnings and continued consumer and commercial deposit growth, and credit quality remained excellent.”
On April 20, 2022 the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on June 3, 2022 to stockholders of record at the close of business on May 23, 2022.
First Quarter 2022 Highlights:
- Net income of $57.7 million, or $0.45 per diluted share
- Total loans and leases decreased $70.3 million versus prior quarter. PPP loans decreased $110.3 million versus the prior quarter
- Total deposits increased $454.3 million versus prior quarter
- Recorded a $5.7 million negative provision for credit losses
- Board of Directors declared a quarterly dividend of $0.26 per share
Balance Sheet
Total assets were $25.0 billion as of March 31, 2022, unchanged from December 31, 2021.
Gross loans and leases were $12.9 billion as of March 31, 2022, a decrease of $70.3 million, or 0.5%, from $13.0 billion as of December 31, 2021.
Total deposits were $22.3 billion as of March 31, 2022, an increase of $454.3 million, or 2.1%, from $21.8 billion as of December 31, 2021.
Net Interest Income
Net interest income for the first quarter of 2022 was $133.9 million, a decrease of $3.5 million, or 2.5%, compared to $137.3 million for the prior quarter.
The net interest margin (NIM) was 2.42% in the first quarter of 2022, an increase of 4 basis points compared to 2.38% in the fourth quarter of 2021.
Provision Expense
During the quarter ended March 31, 2022, we recorded a $5.7 million negative provision for credit losses. In the quarter ended December 31, 2021, we did not record a provision for credit losses.
Noninterest Income
Noninterest income was $41.4 million in the first quarter of 2022, a decrease of $0.2 million compared to noninterest income of $41.6 million in the fourth quarter of 2021.
Noninterest Expense
Noninterest expense was $104.0 million in the first quarter of 2022, a decrease of $4.7 million compared to noninterest expense of $108.7 million in the fourth quarter of 2021.
The efficiency ratio was 59.0% and 60.5% for the quarters ended March 31, 2022 and December 31, 2021, respectively.
Taxes
The effective tax rate was 25.0% for the quarter ended March 31, 2022 and 18.7% for the quarter ended December 31, 2021.
Asset Quality
The allowance for credit losses was $150.3 million, or 1.17% of total loans and leases, as of March 31, 2022, compared to $157.3 million, or 1.21% of total loans and leases, as of December 31, 2021. The reserve for unfunded commitments was $29.0 million as of March 31, 2022, compared to $30.3 million as of December 31, 2021. Net charge-offs were $2.6 million, or 0.08% of average loans and leases on an annualized basis, for the quarter ended March 31, 2022, compared to net charge-offs of $6.2 million, or 0.19% of average loans and leases on an annualized basis, for the quarter ended December 31, 2021. Total non-performing assets were $8.6 million, or 0.07% of total loans and leases and other real estate owned, at March 31, 2022, compared to total non-performing assets of $7.3 million, or 0.06% of total loans and leases and other real estate owned, at December 31, 2021.
Capital
Total stockholders' equity was $2.3 billion at March 31, 2022, compared to $2.7 billion at December 31, 2021.
The tier 1 leverage, common equity tier 1 and total capital ratios were 7.50%, 12.27% and 13.48%, respectively, at March 31, 2022, compared with 7.24%, 12.24% and 13.49%, respectively, at December 31, 2021.
The Company did not repurchase any shares in the first quarter.
First Hawaiian, Inc.
First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com.
Conference Call Information
First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time. To access the call, participants should dial (844) 452-2942 (US/Canada), or (574) 990-9846 (International) ten minutes prior to the start of the call and enter the conference ID: 6391237. 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 April 29, 2022. The replay can be accessed dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 6391237.
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, 2021.Use of Non-GAAP Financial Measures
Return on average tangible stockholders’ equity, 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 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 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. 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 12 at the end of this document provides 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:
Lindsay Chambers
(808) 525-6254
lchambers@fhb.comFinancial Highlights Table 1 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands, except per share data) 2022 2021 2021 Operating Results: Net interest income $ 133,872 $ 137,327 $ 129,158 Provision for credit losses (5,747 ) — — Noninterest income 41,380 41,573 43,868 Noninterest expense 104,042 108,749 96,306 Net income 57,719 57,022 57,693 Basic earnings per share 0.45 0.45 0.44 Diluted earnings per share 0.45 0.44 0.44 Dividends declared per share 0.26 0.26 0.26 Dividend payout ratio 57.78 % 59.09 % 59.09 % Performance Ratios(1): Net interest margin 2.42 % 2.38 % 2.55 % Efficiency ratio 59.04 % 60.50 % 55.53 % Return on average total assets 0.93 % 0.88 % 1.02 % Return on average tangible assets (non-GAAP) 0.97 % 0.92 % 1.07 % Return on average total stockholders' equity 9.19 % 8.46 % 8.58 % Return on average tangible stockholders' equity (non-GAAP) 15.08 % 13.47 % 13.51 % Average Balances: Average loans and leases $ 12,819,612 $ 12,814,316 $ 13,242,270 Average earning assets 22,463,209 23,100,445 20,476,149 Average assets 25,080,453 25,650,505 22,944,699 Average deposits 21,960,819 22,246,577 19,503,067 Average stockholders' equity 2,547,865 2,675,513 2,727,701 Market Value Per Share: Closing 27.89 27.33 27.37 High 31.16 30.14 30.80 Low 26.93 25.17 23.14 As of As of As of March 31, December 31, March 31, (dollars in thousands, except per share data) 2022 2021 2021 Balance Sheet Data: Loans and leases $ 12,891,743 $ 12,961,999 $ 13,300,289 Total assets 25,042,720 24,992,410 23,497,596 Total deposits 22,270,430 21,816,146 20,133,681 Long-term borrowings — — 200,010 Total stockholders' equity 2,285,149 2,656,912 2,683,630 Per Share of Common Stock: Book value $ 17.90 $ 20.84 $ 20.68 Tangible book value (non-GAAP)(2) 10.10 13.03 13.01 Asset Quality Ratios: Non-accrual loans and leases / total loans and leases 0.07 % 0.05 % 0.07 % Allowance for credit losses for loans and leases / total loans and leases 1.17 % 1.21 % 1.51 % Capital Ratios: Common Equity Tier 1 Capital Ratio 12.27 % 12.24 % 12.82 % Tier 1 Capital Ratio 12.27 % 12.24 % 12.82 % Total Capital Ratio 13.48 % 13.49 % 14.07 % Tier 1 Leverage Ratio 7.50 % 7.24 % 7.90 % Total stockholders' equity to total assets 9.13 % 10.63 % 11.42 % Tangible stockholders' equity to tangible assets (non-GAAP) 5.36 % 6.92 % 7.50 % Non-Financial Data: Number of branches 51 54 54 Number of ATMs 298 299 297 Number of Full-Time Equivalent Employees 2,022 2,036 2,090 - Except for the efficiency ratio, amounts are annualized for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021.
- 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, see Table 12, GAAP to Non-GAAP Reconciliation.
Consolidated Statements of Income Table 2 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands, except per share amounts) 2022 2021 2021 Interest income Loans and lease financing $ 103,732 $ 111,865 $ 110,939 Available-for-sale securities 32,107 28,393 23,146 Other 782 1,051 491 Total interest income 136,621 141,309 134,576 Interest expense Deposits 2,749 3,216 4,056 Short-term and long-term borrowings — 766 1,362 Total interest expense 2,749 3,982 5,418 Net interest income 133,872 137,327 129,158 Provision for credit losses (5,747 ) — — Net interest income after provision for credit losses 139,619 137,327 129,158 Noninterest income Service charges on deposit accounts 7,501 7,171 6,718 Credit and debit card fees 14,850 16,266 14,551 Other service charges and fees 9,654 9,196 8,846 Trust and investment services income 8,883 8,895 8,492 Bank-owned life insurance (417 ) 2,851 2,389 Other 909 (2,806 ) 2,872 Total noninterest income 41,380 41,573 43,868 Noninterest expense Salaries and employee benefits 48,226 45,982 43,936 Contracted services and professional fees 17,147 14,603 17,188 Occupancy 7,410 8,074 7,170 Equipment 5,977 6,317 5,491 Regulatory assessment and fees 2,224 2,557 2,034 Advertising and marketing 2,028 1,579 1,591 Card rewards program 6,883 7,471 4,835 Other 14,147 22,166 14,061 Total noninterest expense 104,042 108,749 96,306 Income before provision for income taxes 76,957 70,151 76,720 Provision for income taxes 19,238 13,129 19,027 Net income $ 57,719 $ 57,022 $ 57,693 Basic earnings per share $ 0.45 $ 0.45 $ 0.44 Diluted earnings per share $ 0.45 $ 0.44 $ 0.44 Basic weighted-average outstanding shares 127,556,242 127,893,011 129,933,104 Diluted weighted-average outstanding shares 128,121,126 128,512,257 130,589,878 Consolidated Balance Sheets Table 3 March 31, December 31, March 31, (dollars in thousands) 2022 2021 2021 Assets Cash and due from banks $ 274,022 $ 246,716 $ 278,994 Interest-bearing deposits in other banks 1,352,138 1,011,753 983,816 Investment securities, at fair value (amortized cost: $8,733,170 as of March 31, 2022, $8,560,733 as of December 31, 2021 and $6,708,431 as of March 31, 2021) 8,062,384 8,428,032 6,692,479 Loans held for sale — 538 9,390 Loans and leases 12,891,743 12,961,999 13,300,289 Less: allowance for credit losses 150,280 157,262 200,366 Net loans and leases 12,741,463 12,804,737 13,099,923 Premises and equipment, net 315,766 318,448 319,949 Other real estate owned and repossessed personal property — 175 — Accrued interest receivable 61,561 63,158 69,879 Bank-owned life insurance 471,401 471,819 468,927 Goodwill 995,492 995,492 995,492 Mortgage servicing rights 7,650 8,302 10,869 Other assets 760,843 643,240 567,878 Total assets $ 25,042,720 $ 24,992,410 $ 23,497,596 Liabilities and Stockholders' Equity Deposits: Interest-bearing $ 12,504,821 $ 12,422,283 $ 11,958,606 Noninterest-bearing 9,765,609 9,393,863 8,175,075 Total deposits 22,270,430 21,816,146 20,133,681 Long-term borrowings — — 200,010 Retirement benefits payable 134,323 134,491 143,736 Other liabilities 352,818 384,861 336,539 Total liabilities 22,757,571 22,335,498 20,813,966 Stockholders' equity Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,875,595 / 127,686,307 shares as of March 31, 2022, issued/outstanding: 140,581,715 / 127,502,472 shares as of December 31, 2021 and issued/outstanding: 140,455,180 / 129,749,890 shares as of March 31, 2021) 1,409 1,406 1,405 Additional paid-in capital 2,530,795 2,527,663 2,517,048 Retained earnings 628,642 604,534 497,418 Accumulated other comprehensive loss, net (517,502 ) (121,693 ) (43,435 ) Treasury stock (13,189,288 shares as of March 31, 2022, 13,079,243 shares as of December 31, 2021 and 10,705,290 shares as of March 31, 2021) (358,195 ) (354,998 ) (288,806 ) Total stockholders' equity 2,285,149 2,656,912 2,683,630 Total liabilities and stockholders' equity $ 25,042,720 $ 24,992,410 $ 23,497,596 Average Balances and Interest Rates Table 4 Three Months Ended Three Months Ended Three Months Ended March 31, 2022 December 31, 2021 March 31, 2021 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 $ 1,138.3 $ 0.6 0.20 % $ 2,074.5 $ 0.8 0.15 % $ 938.7 $ 0.2 0.10 % Available-for-Sale Investment Securities Taxable 7,800.3 29.2 1.50 7,515.2 25.8 1.37 5,949.9 22.1 1.49 Non-Taxable 636.7 3.6 2.32 615.3 3.3 2.14 278.0 1.3 1.80 Total Available-for-Sale Investment Securities 8,437.0 32.8 1.56 8,130.5 29.1 1.43 6,227.9 23.4 1.50 Loans Held for Sale 1.2 — 2.02 1.0 — 1.35 9.2 0.1 2.46 Loans and Leases(1) Commercial and industrial 1,973.1 14.6 3.01 2,084.0 21.1 4.01 3,026.7 20.4 2.74 Commercial real estate 3,632.2 25.8 2.88 3,572.9 26.0 2.89 3,385.2 24.9 2.98 Construction 766.9 5.7 3.03 806.6 6.3 3.09 746.8 5.8 3.16 Residential: Residential mortgage 4,111.0 34.8 3.38 4,014.9 34.9 3.48 3,696.1 34.7 3.76 Home equity line 891.6 5.5 2.48 864.4 5.5 2.52 822.0 5.7 2.80 Consumer 1,218.6 15.6 5.19 1,241.3 16.3 5.22 1,323.7 17.7 5.43 Lease financing 226.2 1.9 3.42 230.2 1.9 3.27 241.8 1.8 3.02 Total Loans and Leases 12,819.6 103.9 3.27 12,814.3 112.0 3.48 13,242.3 111.0 3.39 Other Earning Assets 67.1 0.2 1.31 80.1 0.3 1.27 58.0 0.3 1.79 Total Earning Assets(2) 22,463.2 137.5 2.47 23,100.4 142.2 2.45 20,476.1 135.0 2.66 Cash and Due from Banks 292.1 282.2 294.0 Other Assets 2,325.2 2,267.9 2,174.6 Total Assets $ 25,080.5 $ 25,650.5 $ 22,944.7 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 6,668.4 $ 0.5 0.03 % $ 7,086.0 $ 0.8 0.04 % 5,975.1 $ 0.6 0.04 % Money Market 4,048.9 0.5 0.05 4,048.3 0.5 0.05 3,530.0 0.4 0.05 Time 1,748.5 1.7 0.39 1,819.0 1.9 0.42 2,288.5 3.0 0.53 Total Interest-Bearing Deposits 12,465.8 2.7 0.09 12,953.3 3.2 0.10 11,793.6 4.0 0.14 Long-Term Borrowings — — — 110.9 0.8 2.74 200.0 1.4 2.76 Total Interest-Bearing Liabilities 12,465.8 2.7 0.09 13,064.2 4.0 0.12 11,993.6 5.4 0.18 Net Interest Income $ 134.8 $ 138.2 $ 129.6 Interest Rate Spread 2.38 % 2.33 % 2.48 % Net Interest Margin 2.42 % 2.38 % 2.55 % Noninterest-Bearing Demand Deposits 9,495.0 9,293.3 7,709.5 Other Liabilities 571.8 617.5 513.9 Stockholders' Equity 2,547.9 2,675.5 2,727.7 Total Liabilities and Stockholders' Equity $ 25,080.5 $ 25,650.5 $ 22,944.7 - 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.
- Interest income includes taxable-equivalent basis adjustments of $1.0 million, $0.9 million and $0.4 million for the three months ended March 31, 2022, December 31, 2021, and March 31, 2021, respectively.
Analysis of Change in Net Interest Income Table 5 Three Months Ended March 31, 2022 Compared to December 31, 2021 (dollars in millions) Volume Rate Total Change in Interest Income: Interest-Bearing Deposits in Other Banks $ (0.4 ) $ 0.2 $ (0.2 ) Available-for-Sale Investment Securities Taxable 1.0 2.4 3.4 Non-Taxable — 0.3 0.3 Total Available-for-Sale Investment Securities 1.0 2.7 3.7 Loans and Leases Commercial and industrial (1.2 ) (5.3 ) (6.5 ) Commercial real estate — (0.2 ) (0.2 ) Construction (0.4 ) (0.2 ) (0.6 ) Residential: Residential mortgage 0.9 (1.0 ) (0.1 ) Home equity line 0.1 (0.1 ) — Consumer (0.5 ) (0.2 ) (0.7 ) Lease financing (0.1 ) 0.1 — Total Loans and Leases (1.2 ) (6.9 ) (8.1 ) Other Earning Assets (0.1 ) — (0.1 ) Total Change in Interest Income (0.7 ) (4.0 ) (4.7 ) Change in Interest Expense: Interest-Bearing Deposits Savings (0.1 ) (0.2 ) (0.3 ) Time (0.1 ) (0.1 ) (0.2 ) Total Interest-Bearing Deposits (0.2 ) (0.3 ) (0.5 ) Long-Term Borrowings (0.4 ) (0.4 ) (0.8 ) Total Change in Interest Expense (0.6 ) (0.7 ) (1.3 ) Change in Net Interest Income $ (0.1 ) $ (3.3 ) $ (3.4 ) Analysis of Change in Net Interest Income Table 6 Three Months Ended March 31, 2022 Compared to March 31, 2021 (dollars in millions) Volume Rate Total Change in Interest Income: Interest-Bearing Deposits in Other Banks $ 0.1 $ 0.3 $ 0.4 Available-for-Sale Investment Securities Taxable 6.9 0.2 7.1 Non-Taxable 1.9 0.4 2.3 Total Available-for-Sale Investment Securities 8.8 0.6 9.4 Loans Held for Sale (0.1 ) — (0.1 ) Loans and Leases Commercial and industrial (7.7 ) 1.9 (5.8 ) Commercial real estate 1.8 (0.9 ) 0.9 Construction 0.1 (0.2 ) (0.1 ) Residential: Residential mortgage 3.8 (3.7 ) 0.1 Home equity line 0.5 (0.7 ) (0.2 ) Consumer (1.4 ) (0.7 ) (2.1 ) Lease financing (0.1 ) 0.2 0.1 Total Loans and Leases (3.0 ) (4.1 ) (7.1 ) Other Earning Assets — (0.1 ) (0.1 ) Total Change in Interest Income 5.8 (3.3 ) 2.5 Change in Interest Expense: Interest-Bearing Deposits Savings — (0.1 ) (0.1 ) Money Market 0.1 — 0.1 Time (0.6 ) (0.7 ) (1.3 ) Total Interest-Bearing Deposits (0.5 ) (0.8 ) (1.3 ) Long-Term Borrowings (0.7 ) (0.7 ) (1.4 ) Total Change in Interest Expense (1.2 ) (1.5 ) (2.7 ) Change in Net Interest Income $ 7.0 $ (1.8 ) $ 5.2 Loans and Leases Table 7 March 31, December 31, March 31, (dollars in thousands) 2022 2021 2021 Commercial and industrial: Commercial and industrial excluding Paycheck Protection Program loans $ 1,817,346 $ 1,870,657 $ 1,962,672 Paycheck Protection Program loans 106,188 216,442 1,158,764 Total commercial and industrial 1,923,534 2,087,099 3,121,436 Commercial real estate 3,759,980 3,639,623 3,396,233 Construction 708,300 813,969 739,271 Residential: Residential mortgage 4,153,824 4,083,367 3,715,676 Home equity line 918,101 876,608 805,746 Total residential 5,071,925 4,959,975 4,521,422 Consumer 1,204,834 1,229,939 1,283,779 Lease financing 223,170 231,394 238,148 Total loans and leases $ 12,891,743 $ 12,961,999 $ 13,300,289 Deposits Table 8 March 31, December 31, March 31, (dollars in thousands) 2022 2021 2021 Demand $ 9,765,609 $ 9,393,863 $ 8,175,075 Savings 6,812,758 6,612,775 6,141,161 Money Market 3,990,225 4,033,070 3,642,604 Time 1,701,838 1,776,438 2,174,841 Total Deposits $ 22,270,430 $ 21,816,146 $ 20,133,681 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) 2022 2021 2021 Non-Performing Assets Non-Accrual Loans and Leases Commercial Loans: Commercial and industrial $ 707 $ 718 $ 593 Commercial real estate 727 727 937 Construction — — 579 Lease financing 75 — — Total Commercial Loans 1,509 1,445 2,109 Residential Loans: Residential mortgage 7,092 5,637 6,999 Total Residential Loans 7,092 5,637 6,999 Total Non-Accrual Loans and Leases 8,601 7,082 9,108 Other Real Estate Owned — 175 — Total Non-Performing Assets $ 8,601 $ 7,257 $ 9,108 Accruing Loans and Leases Past Due 90 Days or More Commercial Loans: Commercial and industrial $ 591 $ 740 $ 1,365 Commercial real estate — — 1,054 Construction — — 89 Total Commercial Loans 591 740 2,508 Residential Loans: Residential mortgage 13 987 — Home equity line 2,252 3,681 4,975 Total Residential Loans 2,265 4,668 4,975 Consumer 1,588 1,800 2,024 Total Accruing Loans and Leases Past Due 90 Days or More $ 4,444 $ 7,208 $ 9,507 Restructured Loans on Accrual Status and Not Past Due 90 Days or More $ 32,590 $ 34,893 $ 39,831 Total Loans and Leases $ 12,891,743 $ 12,961,999 $ 13,300,289 Allowance for Credit Losses Table 10 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands) 2022 2021 2021 Balance at Beginning of Period $ 157,262 $ 161,246 $ 208,454 Loans and Leases Charged-Off Commercial Loans: Commercial and industrial (706 ) (4,432 ) (963 ) Commercial real estate — — (66 ) Total Commercial Loans (706 ) (4,432 ) (1,029 ) Residential Loans: Residential mortgage — (534 ) (98 ) Home equity line (43 ) (107 ) — Total Residential Loans (43 ) (641 ) (98 ) Consumer (4,109 ) (3,250 ) (6,541 ) Total Loans and Leases Charged-Off (4,858 ) (8,323 ) (7,668 ) Recoveries on Loans and Leases Previously Charged-Off Commercial Loans: Commercial and industrial 53 244 215 Commercial real estate 14 9 3 Construction — 100 166 Total Commercial Loans 67 353 384 Residential Loans: Residential mortgage 16 15 17 Home equity line 28 28 24 Total Residential Loans 44 43 41 Consumer 2,148 1,743 2,655 Total Recoveries on Loans and Leases Previously Charged-Off 2,259 2,139 3,080 Net Loans and Leases Charged-Off (2,599 ) (6,184 ) (4,588 ) Provision for Credit Losses - Loans and Leases (4,383 ) 2,200 (3,500 ) Balance at End of Period $ 150,280 $ 157,262 $ 200,366 Average Loans and Leases Outstanding $ 12,819,612 $ 12,814,316 $ 13,242,270 Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding(1) 0.08 % 0.19 % 0.14 % Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding 1.17 % 1.21 % 1.51 % Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases 17.47x 22.21x 22.00x - Annualized for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021.
Loans and Leases by Year of Origination and Credit Quality Indicator Table 11 Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans Amortized Amortized (dollars in thousands) 2022 2021 2020 2019 2018 Prior Cost Basis Cost Basis Total Commercial Lending Commercial and Industrial Risk rating: Pass $ 158,853 $ 483,473 $ 98,061 $ 184,897 $ 79,810 $ 166,075 $ 594,007 $ 31,048 $ 1,796,224 Special Mention 2,876 356 3,898 3,983 52 5,594 1,601 867 19,227 Substandard — 337 1,296 1,776 13,251 757 15,877 138 33,432 Other (1) 4,028 10,510 6,171 6,450 3,516 1,664 42,312 — 74,651 Total Commercial and Industrial 165,757 494,676 109,426 197,106 96,629 174,090 653,797 32,053 1,923,534 Commercial Real Estate Risk rating: Pass 240,807 682,346 351,893 523,735 471,899 1,291,495 77,724 14,752 3,654,651 Special Mention — — — 47,897 473 39,064 696 — 88,130 Substandard — — — — 1,757 15,280 4 — 17,041 Other (1) — — — — — 158 — — 158 Total Commercial Real Estate 240,807 682,346 351,893 571,632 474,129 1,345,997 78,424 14,752 3,759,980 Construction Risk rating: Pass 6,160 167,645 118,526 136,209 112,919 89,172 19,470 — 650,101 Special Mention — — — 244 705 353 — — 1,302 Substandard — — — — 357 827 — — 1,184 Other (1) 7,871 29,932 5,774 2,957 3,922 4,435 822 — 55,713 Total Construction 14,031 197,577 124,300 139,410 117,903 94,787 20,292 — 708,300 Lease Financing Risk rating: Pass 3,913 31,974 57,192 45,698 8,813 69,286 — — 216,876 Special Mention — 479 2,672 1,360 12 20 — — 4,543 Substandard — — 270 123 15 1,343 — — 1,751 Total Lease Financing 3,913 32,453 60,134 47,181 8,840 70,649 — — 223,170 Total Commercial Lending $ 424,508 $ 1,407,052 $ 645,753 $ 955,329 $ 697,501 $ 1,685,523 $ 752,513 $ 46,805 $ 6,614,984 Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in thousands) 2022 2021 2020 2019 2018 Prior Cost Basis Cost Basis Total Residential Lending Residential Mortgage FICO: 740 and greater $ 185,434 $ 1,096,789 $ 615,500 $ 264,419 $ 183,368 $ 1,012,447 $ — $ — $ 3,357,957 680 - 739 26,812 128,172 72,766 44,872 25,913 159,950 — — 458,485 620 - 679 3,088 13,196 12,304 5,995 5,021 39,145 — — 78,749 550 - 619 — 2,267 1,570 720 731 8,847 — — 14,135 Less than 550 2,116 228 60 — 82 4,098 — — 6,584 No Score (3) 6,550 15,806 7,676 13,968 17,545 56,444 — — 117,989 Other (2) 18,485 30,872 16,042 9,704 10,810 32,600 43 1,369 119,925 Total Residential Mortgage 242,485 1,287,330 725,918 339,678 243,470 1,313,531 43 1,369 4,153,824 Home Equity Line FICO: 740 and greater — — — — — — 705,570 1,892 707,462 680 - 739 — — — — — — 147,290 3,202 150,492 620 - 679 — — — — — — 39,370 2,129 41,499 550 - 619 — — — — — — 10,310 1,426 11,736 Less than 550 — — — — — — 1,482 494 1,976 No Score (3) — — — — — — 4,936 — 4,936 Total Home Equity Line — — — — — — 908,958 9,143 918,101 Total Residential Lending 242,485 1,287,330 725,918 339,678 243,470 1,313,531 909,001 10,512 5,071,925 Consumer Lending FICO: 740 and greater 60,821 145,550 74,436 68,970 46,731 24,261 112,298 217 533,284 680 - 739 26,319 87,933 50,976 48,120 28,498 18,340 68,407 647 329,240 620 - 679 6,222 39,016 19,677 25,307 16,453 14,473 30,462 1,038 152,648 550 - 619 292 7,159 7,314 11,776 8,904 8,485 10,352 1,129 55,411 Less than 550 53 2,003 3,445 5,732 2,939 3,089 3,166 471 20,898 No Score (3) 280 458 9 53 35 52 35,063 337 36,287 Other (2) 502 4,247 363 1,691 4 2,181 68,078 — 77,066 Total Consumer Lending 94,489 286,366 156,220 161,649 103,564 70,881 327,826 3,839 1,204,834 Total Loans and Leases $ 761,482 $ 2,980,748 $ 1,527,891 $ 1,456,656 $ 1,044,535 $ 3,069,935 $ 1,989,340 $ 61,156 $ 12,891,743 - 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.
- 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.
- 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 12 For the Three Months Ended March 31, December 31, March 31, (dollars in thousands, except per share amounts) 2022 2021 2021 Income Statement Data: Net income $ 57,719 $ 57,022 $ 57,693 Average total stockholders' equity $ 2,547,865 $ 2,675,513 $ 2,727,701 Less: average goodwill 995,492 995,492 995,492 Average tangible stockholders' equity $ 1,552,373 $ 1,680,021 $ 1,732,209 Average total assets $ 25,080,453 $ 25,650,505 $ 22,944,699 Less: average goodwill 995,492 995,492 995,492 Average tangible assets $ 24,084,961 $ 24,655,013 $ 21,949,207 Return on average total stockholders' equity(1) 9.19 % 8.46 % 8.58 % Return on average tangible stockholders' equity (non-GAAP)(1) 15.08 % 13.47 % 13.51 % Return on average total assets(1) 0.93 % 0.88 % 1.02 % Return on average tangible assets (non-GAAP)(1) 0.97 % 0.92 % 1.07 % As of As of As of March 31, December 31, March 31, (dollars in thousands, except per share amounts) 2022 2021 2021 Balance Sheet Data: Total stockholders' equity $ 2,285,149 $ 2,656,912 $ 2,683,630 Less: goodwill 995,492 995,492 995,492 Tangible stockholders' equity $ 1,289,657 $ 1,661,420 $ 1,688,138 Total assets $ 25,042,720 $ 24,992,410 $ 23,497,596 Less: goodwill 995,492 995,492 995,492 Tangible assets $ 24,047,228 $ 23,996,918 $ 22,502,104 Shares outstanding 127,686,307 127,502,472 129,749,890 Total stockholders' equity to total assets 9.13 % 10.63 % 11.42 % Tangible stockholders' equity to tangible assets (non-GAAP) 5.36 % 6.92 % 7.50 % Book value per share $ 17.90 $ 20.84 $ 20.68 Tangible book value per share (non-GAAP) $ 10.10 $ 13.03 $ 13.01 - Annualized for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021.
