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Market ClerkRecap
Sat Oct 31 · markets closed1 signal today129 insider buys this week · $10BCIRO short report next: Nov 15The week ahead

FHB

FIRST HAWAIIAN, INC.
NASDAQ · FINANCIALS · STATE COMMERCIAL BANKS
25.20
−0.43 −1.68%
USD · close Oct 30
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MKT CAP $3.1BP/E 11.0DIV YIELD 4.13%FCF YIELD 10.20%REV TTM $903.9M +9.3%NET INCOME $284.9M +15.6%NET CASH $1.9B52W 23.39 – 30.34SEC XBRL · TTM TO Invalid Date

How FHB rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
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510
new sentences
Dropped
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+755
words, now 74,490

New in FY2025

  • Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by applicable law. ​ Company Overview ​ FHI, a bank holding company, owns 100% of the outstanding common stock of FHB.
  • As of December 31, 2025, we were the largest full-service bank headquartered in Hawaii as measured by loans and leases and net income.
  • As of December 31, 2025, we had $14.3 billion of gross loans and leases.
  • We also generated $276.3 million of net income or diluted earnings per share of $2.20 for the year ended December 31, 2025.
  • We operate our business through two operating segments: Retail Banking and Commercial Banking.
  • All other activities, including Treasury, are reported in Corporate/Other.
  • Hawaii Economy ​ Hawaii’s economy as a whole experienced mixed economic conditions during the year ended December 31, 2025.
  • Although the economy remains resilient and maintains a lower unemployment rate than the country as a whole, the State continues to endure high consumer prices and housing affordability challenges, which are expected to continue with the gradual pass-through of tariffs, as well as a steady out-migration of its population.
  • According to the State of Hawaii Department of Business, Economic Development and Tourism, the statewide seasonally adjusted unemployment rate was 2.2% at December 31, 2025, lower than the national seasonally adjusted unemployment rate of 4.4%. ​ Domestic visitor arrivals for the state remain stable, with the average daily domestic passenger counts for the year ended December 31, 2025 being relatively similar to the average daily domestic passenger counts during the year ended December 31, 2024, according to the Hawaii Tourism Authority.
  • More generally, Hawaii’s economy depends significantly on conditions of the U.S. economy and key international economies, particularly Japan.
  • International visitor arrivals have not yet recovered to pre-pandemic arrival levels. ​ The local Oahu housing market continues to experience some softening as compared to previous years primarily due to increased interest rates.
  • According to the Honolulu Board of Realtors, the volume of single-family home sales increased by 3.5%, while condominium sales decreased by 1.1%, in each case when comparing the year ended December 31, 2025 with the same period in 2024.
  • The median price of a single-family home sold on Oahu in 2025 was $1,139,000, an increase of 3.5% compared to 2024.
  • The median price of a condominium sold on Oahu in 2025 was $507,000, a decrease of 1.5% compared to 2024.
  • As of December 31, 2025, months of inventory of single-family homes and condominiums on Oahu were approximately 2.6 and 5.9 months, respectively, as compared to 2.9 and 5.2 months, respectively, as of December 31, 2024. ​ ​ Selected Financial Data: ​ Our financial highlights for the years indicated are presented in Table 1: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial Highlights ​ ​ ​ ​ ​ ​ Table 1 ​ ​ For the Year Ended ​ ​ December 31, (dollars in thousands, except per share data) ​ 2025 ​ ​ ​ 2024 2023 Income Statement Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest income ​ $ 951,303 ​ $ 980,044 ​ $ 923,579 ​ Interest expense ​ ​ 287,561 ​ ​ 357,306 ​ ​ 287,452 ​ Net interest income ​ ​ 663,742 ​ ​ 622,738 ​ ​ 636,127 ​ Provision for credit losses ​ ​ 27,200 ​ ​ 14,750 ​ ​ 26,630 ​ Net interest income after provision for credit losses ​ ​ 636,542 ​ ​ 607,988 ​ ​ 609,497 ​ Noninterest income ​ ​ 217,046 ​ ​ 185,803 ​ ​ 200,815 ​ Noninterest expense ​ ​ 499,345 ​ ​ 501,189 ​ ​ 501,138 ​ Income before provision for income taxes ​ ​ 354,243 ​ ​ 292,602 ​ ​ 309,174 ​ Provision for income taxes ​ ​ 77,977 ​ ​ 62,473 ​ ​ 74,191 ​ Net income ​ $ 276,266 ​ $ 230,129 ​ $ 234,983 ​ Basic earnings per share ​ $ 2.21 ​ $ 1.80 ​ $ 1.84 ​ Diluted earnings per share ​ $ 2.20 ​ $ 1.79 ​ $ 1.84 ​ Basic weighted-average outstanding shares ​ ​ 124,793,785 ​ ​ 127,702,573 ​ ​ 127,567,547 ​ Diluted weighted-average outstanding shares ​ ​ 125,509,146 ​ ​ 128,325,865 ​ ​ 127,915,873 ​ Dividends declared per share ​ $ 1.04 ​ $ 1.04 ​ $ 1.04 ​ Dividend payout ratio ​ ​ 47.27 % ​ 58.10 % ​ 56.52 % Performance Ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest margin ​ ​ 3.15 % ​ 2.95 % ​ 2.92 % Efficiency ratio ​ ​ 56.43 % ​ 61.57 % ​ 59.48 % Return on average total assets ​ ​ 1.16 % ​ 0.96 % ​ 0.95 % Return on average tangible assets (non-GAAP) (1) ​ ​ 1.21 % ​ 1.00 % ​ 0.99 % Return on average total stockholders' equity ​ ​ 10.26 % ​ 9.00 % ​ 10.01 % Return on average tangible stockholders' equity (non-GAAP) (1) ​ ​ 16.27 % ​ 14.74 % ​ 17.39 % Noninterest expense to average assets ​ ​ 2.09 % ​ 2.09 % ​ 2.04 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, (dollars in thousands, except per share data) ​ 2025 ​ 2024 ​ Balance Sheet Data: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 1,477,752 ​ $ 1,170,190 ​ Investment securities available-for-sale ​ ​ 2,076,233 ​ ​ 1,926,516 ​ Investment securities held-to-maturity ​ ​ 3,533,082 ​ ​ 3,790,650 ​ Loans and leases ​ ​ 14,312,529 ​ ​ 14,408,258 ​ Allowance for credit losses for loans and leases ​ ​ 168,468 ​ ​ 160,393 ​ Goodwill ​ ​ 995,492 ​ ​ 995,492 ​ Total assets ​ ​ 23,955,252 ​ ​ 23,828,186 ​ Total deposits ​ ​ 20,515,668 ​ ​ 20,322,216 ​ Short-term borrowings ​ ​ — ​ ​ 250,000 ​ Total liabilities ​ ​ 21,185,887 ​ ​ 21,210,700 ​ Total stockholders' equity ​ ​ 2,769,365 ​ ​ 2,617,486 ​ Book value per share ​ $ 22.57 ​ $ 20.70 ​ Tangible book value per share (non-GAAP) (1) ​ $ 14.46 ​ $ 12.83 ​ ​ ​ ​ ​ ​ ​ ​ ​ Asset Quality Ratios: ​ ​ ​ ​ ​ ​ ​ Non-accrual loans and leases / total loans and leases ​ ​ 0.29 % ​ 0.14 % Allowance for credit losses for loans and leases / total loans and leases ​ ​ 1.18 % ​ 1.11 % Net charge-offs / average total loans and leases ​ ​ 0.11 % ​ 0.10 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, Capital Ratios: ​ 2025 ​ 2024 ​ Common Equity Tier 1 Capital Ratio ​ ​ 13.17 % ​ 12.80 % Tier 1 Capital Ratio ​ ​ 13.17 % ​ 12.80 % Total Capital Ratio ​ ​ 14.42 % ​ 13.99 % Tier 1 Leverage Ratio ​ ​ 9.27 % ​ 9.14 % Total stockholders' equity to total assets ​ ​ 11.56 % ​ 10.98 % Tangible stockholders' equity to tangible assets (non-GAAP) (1) ​ ​ 7.73 % ​ 7.10 % (1) Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures.
  • Although these non-GAAP financial measures are frequently used by shareholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP. ​ ​ ​ The following table provides a reconciliation of these non-GAAP financial measures with their most closely related GAAP measures for the years indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ GAAP to Non-GAAP Reconciliation ​ ​ ​ ​ ​ ​ ​ ​ Table 2 ​ ​ ​ For the Year Ended ​ ​ ​ December 31, (dollars in thousands) ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 Income Statement Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 276,266 ​ $ 230,129 ​ $ 234,983 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average total stockholders' equity ​ $ 2,693,446 ​ $ 2,557,215 ​ $ 2,346,713 ​ Less: average goodwill ​ ​ 995,492 ​ ​ 995,492 ​ ​ 995,492 ​ Average tangible stockholders' equity ​ $ 1,697,954 ​ $ 1,561,723 ​ $ 1,351,221 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average total assets ​ $ 23,917,443 ​ $ 23,996,723 ​ $ 24,625,445 ​ Less: average goodwill ​ ​ 995,492 ​ ​ 995,492 ​ ​ 995,492 ​ Average tangible assets ​ $ 22,921,951 ​ $ 23,001,231 ​ $ 23,629,953 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Return on average total stockholders' equity ​ ​ 10.26 % ​ 9.00 % ​ 10.01 % Return on average tangible stockholders' equity (non-GAAP) ​ ​ 16.27 % ​ 14.74 % ​ 17.39 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Return on average total assets ​ ​ 1.16 % ​ 0.96 % ​ 0.95 % Return on average tangible assets (non-GAAP) ​ ​ 1.21 % ​ 1.00 % ​ 0.99 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, (dollars in thousands, except per share data) ​ 2025 ​ ​ ​ 2024 ​ ​ ​ Balance Sheet Data: ​ ​ ​ ​ ​ ​ ​ Total stockholders' equity ​ $ 2,769,365 ​ $ 2,617,486 ​ Less: goodwill ​ ​ 995,492 ​ ​ 995,492 ​ Tangible stockholders' equity ​ $ 1,773,873 ​ $ 1,621,994 ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets ​ $ 23,955,252 ​ $ 23,828,186 ​ Less: goodwill ​ ​ 995,492 ​ ​ 995,492 ​ Tangible assets ​ $ 22,959,760 ​ $ 22,832,694 ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares outstanding ​ ​ 122,689,256 ​ ​ 126,422,898 ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders' equity to total assets ​ ​ 11.56 % ​ 10.98 % Tangible stockholders' equity to tangible assets (non-GAAP) ​ ​ 7.73 % ​ 7.10 % ​ ​ ​ ​ ​ ​ ​ ​ Book value per share ​ $ 22.57 ​ $ 20.70 ​ Tangible book value per share (non-GAAP) ​ $ 14.46 ​ $ 12.83 ​ ​ Financial Highlights ​ Net income was $276.3 million for the year ended December 31, 2025, an increase of $46.1 million or 20% as compared to 2024.
  • Basic earnings per share was $2.21 for the year ended December 31, 2025, an increase of $0.41 or 23% as compared to 2024.
  • Diluted earnings per share was $2.20 for the year ended December 31, 2025, an increase of $0.41 or 23% as compared to 2024.
  • The increase in net income was primarily due to a $41.0 million increase in net interest income, a $31.2 million increase in noninterest income and a $1.8 million decrease in noninterest expense.
  • This was partially offset by a $15.5 million increase in the provision for income taxes and a $12.5 million increase in the provision for credit losses (the “Provision”). ​ Net income was $230.1 million for the year ended December 31, 2024, a decrease of $4.9 million or 2% as compared to 2023.
  • Diluted earnings per share was $1.79 for the year ended December 31, 2024, a decrease of $0.05 or 3% as compared to 2023.The decrease in net income was primarily due to a $15.0 million decrease in noninterest income and a $13.4 million decrease in net interest income.
  • This was partially offset by an $11.9 million decrease in the Provision and an $11.7 million decrease in the provision for income taxes. ​ Our return on average total assets was 1.16% for the year ended December 31, 2025, an increase of 20 basis points as compared to 2024, and our return on average total stockholders’ equity was 10.26% for the year ended December 31, 2025, an increase of 126 basis points as compared to 2024.
  • Our return on average tangible assets was 1.21% for the year ended December 31, 2025, an increase of 21 basis points as compared to 2024, and our return on average tangible stockholders’ equity was 16.27% for the year ended December 31, 2025, an increase of 153 basis points as compared to 2024, due to higher net income, offset by an increase in average tangible stockholders’ equity.
  • Our efficiency ratio was 56.43% for the year ended December 31, 2025 as compared to 61.57% in 2024.
  • For a reconciliation to the most directly comparable GAAP financial measures for return on average tangible assets and return on average tangible stockholders’ equity, see Table 2, GAAP to Non-GAAP Reconciliation. ​ Our return on average total assets was 0.96% for the year ended December 31, 2024, an increase of one basis point as compared to 2023, and our return on average total stockholders’ equity was 9.00% for the year ended December 31, 2024, a decrease of 101 basis points as compared to 2023.
  • Our return on average tangible assets was 1.00% for the year ended December 31, 2024, an increase of one basis point as compared to 2023, and our return on average tangible stockholders’ equity was 14.74% for the year ended December 31, 2024, a decrease of 265 basis points as compared to 2023, due to an increase in average tangible stockholders’ equity, which resulted in part from a decrease in net unrealized losses in our investment securities portfolio, and lower net income.
  • For a reconciliation to the most directly comparable GAAP financial measures for return on average tangible assets and return on average tangible stockholders’ equity, see Table 2, GAAP to Non-GAAP Reconciliation. ​ Our results for the December 31, 2025 were highlighted by the following: ​ ● Net interest income was $663.7 million for the year ended December 31, 2025, an increase of $41.0 million or 7% as compared to 2024.
  • Our net interest margin was 3.15% for the year ended December 31, 2025, an increase of 20 basis points as compared to 2024.
  • The increase in net interest income was primarily due to lower deposit funding costs, higher average balances on our interest-bearing deposits in other banks and lower borrowing costs, partially offset by lower rates on our earning assets driven by lower yields in our loan and lease portfolio, and lower average balances in our investment securities portfolio. ​ ● The Provision was $27.2 million for the year ended December 31, 2025, an increase of $12.5 million or 84% as compared to 2024.
  • The increase in the Provision was primarily due to increases in the provision for home equity lines, commercial and industrial loans, construction loans, commercial real estate loans and lease financing and the provision for unfunded construction, home equity line, commercial real estate and commercial and industrial commitments.
  • This was partially offset by decreases in the provision for residential mortgage loans and consumer loans.
  • The Provision is recorded to maintain the ACL and the reserve for unfunded commitments at levels deemed adequate to absorb lifetime expected credit losses in our loan and lease portfolio and unfunded loan and lease commitments as of the balance sheet date. ​ ● Noninterest income was $217.0 million for the year ended December 31, 2025, an increase of $31.2 million or 17% as compared to 2024.
  • The increase was primarily due to $26.2 million of net losses on the sale of investment securities in 2024, a $7.3 million increase in other service charges and fees and a $2.8 million increase in bank-owned life insurance (“BOLI”) income, partially offset by a $2.6 million decrease in credit and debit card fees, a $1.6 million decrease in other noninterest income and a $1.4 million decrease in trust and investment services income. ​ ● Noninterest expense was $499.3 million for the year ended December 31, 2025, a decrease of $1.8 million as compared to 2024.
  • The decrease in noninterest expense was primarily due to an $8.6 million decrease in other noninterest expenses and a $7.0 million decrease in regulatory assessment and fees, partially offset by a $10.3 million increase in salaries and employee benefits expense, a $2.4 million increase in equipment expense and a $1.3 million increase in occupancy expense. ​ Our results for the December 31, 2024 were highlighted by the following: ​ ● Net interest income was $622.7 million for the year ended December 31, 2024, a decrease of $13.4 million or 2% as compared to 2023.
  • The decrease in net interest income was primarily due to higher deposit funding costs and lower average balances in our investment securities portfolio, partially offset by higher rates on our earning assets driven by higher yields in our loan and lease portfolio, higher average balances on our interest-bearing deposits in other banks and lower borrowing costs. ​ ● The Provision was $14.8 million for the year ended December 31, 2024, a decrease of $11.9 million as compared to 2023.
  • The decrease was primarily due to a $26.2 million net loss on the sale of investment securities and a $1.0 million decrease in other noninterest income, partially offset by an $8.6 million increase in other services charges and fees, a $2.5 million increase in BOLI income and a $1.4 million increase in service charges on deposits accounts. ​ ● Noninterest expense was $501.2 million for the year ended December 31, 2024, an increase of $0.1 million as compared to 2023.
  • The increase in noninterest expense was primarily due to a $9.8 million increase in salaries and employee benefits expense, an $8.8 million increase in equipment expense and a $2.2 million increase in card rewards program expense.
  • This was partially offset by a $13.0 million decrease in regulatory assessment and fees, a $5.5 million decrease in contracted services and professional fees, a $1.7 million decrease in other noninterest expense and a $0.6 million decrease in occupancy expense. ​ Balance sheet highlights consisted of the following: ​ ● Total loans and leases were $14.3 billion as of December 31, 2025, a decrease of $95.7 million or 1% as compared to December 31, 2024.
  • This decrease was primarily due to decreases in construction loans, commercial and industrial loans and residential real estate loans, partially offset by an increase in commercial real estate loans. ​ ● The ACL was $168.5 million as of December 31, 2025, an increase of $8.1 million or 5% from December 31, 2024.
  • The ratio of our ACL to total loans and leases outstanding was 1.18% as of December 31, 2025, an increase of seven basis points compared to December 31, 2024.

and 470 more.

Gone since FY2024

  • Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by applicable law. ​ Company Overview ​ FHI, a bank holding company, owns 100% of the outstanding common stock of FHB.
  • As of December 31, 2024, we were the largest full-service bank headquartered in Hawaii as measured by assets, loans and leases and net income.
  • As of December 31, 2024, we had $23.8 billion of assets and $14.4 billion of gross loans and leases.
  • We also generated $230.1 million of net income or diluted earnings per share of $1.79 for the year ended December 31, 2024.
  • We operate our business through three operating segments: Retail Banking, Commercial Banking and Treasury and Other.
  • Hawaii Economy ​ Hawaii’s economy remains relatively resilient in the wake of high consumer prices and the August 2023 wildfires that continue to affect the island of Maui.
  • According to the State of Hawaii Department of Business, Economic Development and Tourism, the statewide seasonally adjusted unemployment rate was 3.0% at December 31, 2024 compared to 2.9% at December 31, 2023.
  • Nationally, the seasonally adjusted unemployment rate was 4.1% at December 31, 2024 compared to 3.7% at December 31, 2023. ​ Domestic visitor arrivals for the state remain stable, with the average daily domestic passenger counts for the year ended December 31, 2024 relatively similar to the average daily passenger counts during the year ended December 31, 2023, according to the Hawaii Tourism Authority.
  • International visitor arrivals from Japan during the year ended December 31, 2024 have increased significantly as compared to each of the last three years, but the level of arrivals from Japan still remains below pre-pandemic levels due to the weak yen. ​ The local Oahu housing market has remained relatively stable, but is experiencing some softening as compared to previous years primarily due to home prices continuing to rise and high mortgage interest rates.
  • According to the Honolulu Board of Realtors, the volume of single-family home sales increased by 9.1%, while condominium sales decreased by 2.5%, in each case when comparing the twelve months of 2024 with the same period in 2023.
  • When comparing the twelve months of 2024 with the same period in 2022, however, the volume of single-family home sales decreased by 19.6%, while condominium sales decreased by 29.8%.
  • The median price of a single-family home sold on Oahu in the twelve months of 2024 was $1,100,000, an increase of 4.8% from the same period in 2023.
  • The median price of a condominium sold on Oahu in the twelve months of 2024 was $515,000, an increase of 1.3% from the same period in 2023.
  • As of December 31, 2024, months of inventory of single-family homes and condominiums on Oahu remained low at approximately 2.9 and 5.2 months, respectively. ​ Effect of Recent Natural Disasters ​ In early August of 2023, wildfires swept across several areas of Maui, impacting residents in upcountry Maui and devastating the historic town of Lahaina.
  • The outstanding balance of real estate-secured loans in the Maui fire zones totaled approximately $96.8 million as of December 31, 2024.
  • We are working closely with our resident and business borrowers to navigate the post-disaster period and are continuing to closely monitor the impact that the wildfires has had on our customers. ​ ​ Other Economic Developments Economic conditions and therefore our results of operations may be impacted by a variety of other factors as well, such as other natural disasters, an economic slowdown or recession, financial market volatility, supply chain disruptions, monetary and fiscal policy measures, heightened geopolitical tensions, fluctuations in foreign currency exchange rates and interest rates, the political and regulatory environment, changes to the U.S.
  • Federal budget and potential changes in tax laws.
  • These and other key factors could impact our profitability in future reporting periods.
  • Risk Factors, beginning in the section captioned “Summary of Risk Factors.” ​ Selected Financial Data: ​ Our financial highlights for the years indicated are presented in Table 1: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial Highlights ​ ​ ​ ​ ​ ​ Table 1 ​ ​ For the Year Ended ​ ​ December 31, (dollars in thousands, except per share data) ​ 2024 2023 2022 Income Statement Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest income ​ $ 980,044 ​ $ 923,579 ​ $ 663,220 ​ Interest expense ​ ​ 357,306 ​ ​ 287,452 ​ ​ 49,671 ​ Net interest income ​ ​ 622,738 ​ ​ 636,127 ​ ​ 613,549 ​ Provision for credit losses ​ ​ 14,750 ​ ​ 26,630 ​ ​ 1,392 ​ Net interest income after provision for credit losses ​ ​ 607,988 ​ ​ 609,497 ​ ​ 612,157 ​ Noninterest income ​ ​ 185,803 ​ ​ 200,815 ​ ​ 179,525 ​ Noninterest expense ​ ​ 501,189 ​ ​ 501,138 ​ ​ 440,471 ​ Income before provision for income taxes ​ ​ 292,602 ​ ​ 309,174 ​ ​ 351,211 ​ Provision for income taxes ​ ​ 62,473 ​ ​ 74,191 ​ ​ 85,526 ​ Net income ​ $ 230,129 ​ $ 234,983 ​ $ 265,685 ​ Basic earnings per share ​ $ 1.80 ​ $ 1.84 ​ $ 2.08 ​ Diluted earnings per share ​ $ 1.79 ​ $ 1.84 ​ $ 2.08 ​ Basic weighted-average outstanding shares ​ ​ 127,702,573 ​ ​ 127,567,547 ​ ​ 127,489,889 ​ Diluted weighted-average outstanding shares ​ ​ 128,325,865 ​ ​ 127,915,873 ​ ​ 127,981,699 ​ Dividends declared per share ​ $ 1.04 ​ $ 1.04 ​ $ 1.04 ​ Dividend payout ratio ​ ​ 58.10 % ​ 56.52 % ​ 50.00 % Performance Ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net interest margin ​ ​ 2.95 % ​ 2.92 % ​ 2.78 % Efficiency ratio ​ ​ 61.57 % ​ 59.48 % ​ 55.20 % Return on average total assets ​ ​ 0.96 % ​ 0.95 % ​ 1.06 % Return on average tangible assets (non-GAAP) (1) ​ ​ 1.00 % ​ 0.99 % ​ 1.11 % Return on average total stockholders' equity ​ ​ 9.00 % ​ 10.01 % ​ 11.44 % Return on average tangible stockholders' equity (non-GAAP) (1) ​ ​ 14.74 % ​ 17.39 % ​ 20.03 % Noninterest expense to average assets ​ ​ 2.09 % ​ 2.04 % ​ 1.76 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, (dollars in thousands, except per share data) 2024 ​ 2023 ​ Balance Sheet Data: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 1,170,190 ​ $ 1,739,897 ​ Investment securities available-for-sale ​ ​ 1,926,516 ​ ​ 2,255,336 ​ Investment securities held-to-maturity ​ ​ 3,790,650 ​ ​ 4,041,449 ​ Loans and leases ​ ​ 14,408,258 ​ ​ 14,353,497 ​ Allowance for credit losses for loans and leases ​ ​ 160,393 ​ ​ 156,533 ​ Goodwill ​ ​ 995,492 ​ ​ 995,492 ​ Total assets ​ ​ 23,828,186 ​ ​ 24,926,474 ​ Total deposits ​ ​ 20,322,216 ​ ​ 21,332,657 ​ Short-term borrowings ​ ​ 250,000 ​ ​ 500,000 ​ Total liabilities ​ ​ 21,210,700 ​ ​ 22,440,408 ​ Total stockholders' equity ​ ​ 2,617,486 ​ ​ 2,486,066 ​ Book value per share ​ $ 20.70 ​ $ 19.48 ​ Tangible book value per share (non-GAAP) (1) ​ $ 12.83 ​ $ 11.68 ​ ​ ​ ​ ​ ​ ​ ​ ​ Asset Quality Ratios: ​ ​ ​ ​ ​ ​ ​ Non-accrual loans and leases / total loans and leases ​ ​ 0.14 % ​ 0.13 % Allowance for credit losses for loans and leases / total loans and leases ​ ​ 1.11 % ​ 1.09 % Net charge-offs / average total loans and leases ​ ​ 0.10 % ​ 0.09 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, Capital Ratios: 2024 ​ 2023 ​ Common Equity Tier 1 Capital Ratio ​ 12.80 % 12.39 % Tier 1 Capital Ratio ​ ​ 12.80 % ​ 12.39 % Total Capital Ratio ​ ​ 13.99 % ​ 13.57 % Tier 1 Leverage Ratio ​ ​ 9.14 % ​ 8.64 % Total stockholders' equity to total assets ​ ​ 10.98 % ​ 9.97 % Tangible stockholders' equity to tangible assets (non-GAAP) (1) ​ ​ 7.10 % ​ 6.23 % (1) Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures.
  • Although these non-GAAP financial measures are frequently used by shareholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP. ​ ​ ​ The following table provides a reconciliation of these non-GAAP financial measures with their most closely related GAAP measures for the years indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ GAAP to Non-GAAP Reconciliation ​ ​ ​ ​ ​ ​ ​ ​ Table 2 ​ ​ ​ For the Years Ended ​ ​ ​ December 31, (dollars in thousands) 2024 2023 2022 Income Statement Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Noninterest expense ​ $ 501,189 ​ $ 501,138 ​ $ 440,471 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 230,129 ​ $ 234,983 ​ $ 265,685 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average total stockholders' equity ​ $ 2,557,215 ​ $ 2,346,713 ​ $ 2,321,606 ​ Less: average goodwill ​ ​ 995,492 ​ ​ 995,492 ​ ​ 995,492 ​ Average tangible stockholders' equity ​ $ 1,561,723 ​ $ 1,351,221 ​ $ 1,326,114 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average total assets ​ $ 23,996,723 ​ $ 24,625,445 ​ $ 24,964,422 ​ Less: average goodwill ​ ​ 995,492 ​ ​ 995,492 ​ ​ 995,492 ​ Average tangible assets ​ $ 23,001,231 ​ $ 23,629,953 ​ $ 23,968,930 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Return on average total stockholders' equity ​ ​ 9.00 % ​ 10.01 % ​ 11.44 % Return on average tangible stockholders' equity (non-GAAP) ​ ​ 14.74 % ​ 17.39 % ​ 20.03 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Return on average total assets ​ ​ 0.96 % ​ 0.95 % ​ 1.06 % Return on average tangible assets (non-GAAP) ​ ​ 1.00 % ​ 0.99 % ​ 1.11 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Noninterest expense to average assets ​ ​ 2.09 % ​ 2.04 % ​ 1.76 % ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, (dollars in thousands, except per share data) 2024 ​ 2023 ​ Balance Sheet Data: ​ ​ ​ ​ ​ ​ Total stockholders' equity $ 2,617,486 ​ $ 2,486,066 ​ Less: goodwill ​ 995,492 ​ ​ 995,492 ​ Tangible stockholders' equity $ 1,621,994 ​ $ 1,490,574 ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ 23,828,186 ​ $ 24,926,474 ​ Less: goodwill ​ 995,492 ​ ​ 995,492 ​ Tangible assets $ 22,832,694 ​ $ 23,930,982 ​ ​ ​ ​ ​ ​ ​ ​ Shares outstanding ​ 126,422,898 ​ ​ 127,618,761 ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders' equity to total assets ​ 10.98 % ​ 9.97 % Tangible stockholders' equity to tangible assets (non-GAAP) ​ 7.10 % ​ 6.23 % ​ ​ ​ ​ ​ ​ ​ Book value per share $ 20.70 ​ $ 19.48 ​ Tangible book value per share (non-GAAP) $ 12.83 ​ $ 11.68 ​ ​ Financial Highlights ​ Net income was $230.1 million for the year ended December 31, 2024, a decrease of $4.9 million or 2% as compared to 2023.
  • Diluted earnings per share was $1.79 for the year ended December 31, 2024, a decrease of $0.05 or 3% as compared to 2023.
  • The decrease in net income was primarily due to a $15.0 million decrease in noninterest income and a $13.4 million decrease in net interest income.
  • This was partially offset by an $11.9 million decrease in the provision for credit losses (the “Provision”) and an $11.7 million decrease in the provision for income taxes. ​ Net income was $235.0 million for the year ended December 31, 2023, a decrease of $30.7 million or 12% as compared to 2022.
  • Basic and diluted earnings per share were both $1.84 for the year ended December 31, 2023, a decrease of $0.24 or 12% as compared to 2022.
  • The decrease in net income was primarily due to a $60.7 million increase in noninterest expense and a $25.2 million increase in the Provision.
  • This was partially offset by a $22.6 million increase in net interest income, a $21.3 million increase in noninterest income and an $11.3 million decrease in the provision for income taxes. ​ Our return on average total assets was 0.96% for the year ended December 31, 2024, an increase of one basis point as compared to 2023, and our return on average total stockholders’ equity was 9.00% for the year ended December 31, 2024, a decrease of 101 basis points as compared to 2023.
  • Our return on average tangible assets was 1.00% for the year ended December 31, 2024, an increase of one basis point as compared to 2023, and our return on average tangible stockholders’ equity was 14.74% for the year ended December 31, 2024, a decrease of 265 basis points as compared to 2023, due to an increase in average stockholders’ equity, which resulted in part from a decrease in net unrealized losses in our investment securities portfolio, and lower net income.
  • For a reconciliation to the most directly comparable GAAP financial measures for return on average tangible assets and return on average tangible stockholders’ equity, see Table 2, GAAP to Non-GAAP Reconciliation. ​ Our return on average total assets was 0.95% for the year ended December 31, 2023, a decrease of 11 basis points as compared to 2022, and our return on average total stockholders’ equity was 10.01% for the year ended December 31, 2023, a decrease of 143 basis points as compared to 2022.
  • Our return on average tangible assets was 0.99% for the year ended December 31, 2023, a decrease of 12 basis points as compared to 2022, and our return on average tangible stockholders’ equity was 17.39% for the year ended December 31, 2023, a decrease of 264 basis points as compared to 2022.
  • Our efficiency ratio was 59.48% for the year ended December 31, 2023 as compared to 55.20% in 2022.
  • For a reconciliation to the most directly comparable GAAP financial measures for return on average tangible assets and return on average tangible stockholders’ equity, see Table 2, GAAP to Non-GAAP Reconciliation. ​ Our results for the December 31, 2024 were highlighted by the following: ​ ● Net interest income was $622.7 million for the year ended December 31, 2024, a decrease of $13.4 million or 2% as compared to 2023.
  • The decrease in net interest income, on a fully taxable-equivalent basis was primarily due to higher deposit funding costs and lower average balances in our investment securities portfolio, partially offset by higher rates on our earning assets driven by higher yields in our loan and lease portfolio, higher average balances on our interest-bearing deposits in other banks and lower borrowing costs. ​ ● The Provision was $14.8 million for the year ended December 31, 2024, a decrease of $11.9 million as compared to 2023.
  • The decrease was primarily due to a $26.2 million net loss on the sale of investment securities and a $1.0 million decrease in other noninterest income, partially offset by a $8.6 million increase in other services charges and fees, a $2.5 million increase in bank-owned life insurance (“BOLI”) income and a $1.4 million increase in service charges on deposits accounts. ​ ● Noninterest expense was $501.2 million for the year ended December 31, 2024, an increase of $0.1 million as compared to 2023.
  • The increase in noninterest expense was primarily due to a $9.8 million increase in salaries and employee benefits, a $8.8 million increase in equipment expense and a $2.2 million increase in card rewards program expense.
  • This was partially offset by a $13.0 million decrease in regulatory assessment and fees, a $5.5 million decrease in contracted services and professional fees, a $1.7 million decrease in other noninterest expense and a $0.6 million decrease in occupancy expense. ​ Our results for the December 31, 2023 were highlighted by the following: ​ ● Net interest income was $636.1 million for the year ended December 31, 2023, an increase of $22.6 million or 4% as compared to 2022.
  • Our net interest margin was 2.92% for the year ended December 31, 2023, an increase of 14 basis points as compared to 2022.
  • The increase in net interest income was primarily due to higher yields and average balances in our loan and lease portfolio and higher yields on interest-bearing deposits in other banks, primarily attributable to the rising interest rate environment in the period.
  • This was partially offset by higher deposit funding costs and higher borrowing costs. ​ ● The Provision was $26.6 million for the year ended December 31, 2023, an increase of $25.2 million as compared to 2022.
  • The Provision of $26.6 million for the year ended December 31, 2023, was primarily due to increases in the provision for consumer loans, construction loans, commercial and industrial loans, residential mortgage loans and commercial real estate loans and the provision for unfunded commercial and industrial and construction commitments.
  • This was partially offset by a decrease in the provision for unfunded home equity line commitments.

and 501 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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