GlobeNewswire Inc | Oct 22, 2021 08:00AM EDT

October 22, 2021

HONOLULU, Oct. 22, 2021 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (First Hawaiian or the Company) today reported financial results for its quarter ended September 30, 2021.

We are pleased with the banks solid performance in the third quarter. It was also a milestone quarter, as total assets exceeded $25 billion at quarter-end for the first time in our history, said Bob Harrison, Chairman, President and CEO. We had good growth in deposit balances, credit quality remained excellent, and we are seeing an increase in loan activity.

On October 20, 2021 the Companys Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on December 3, 2021 to stockholders of record at the close of business on November 22, 2021.

Third Quarter 2021 Highlights:

-- Net income of $64.3 million, or $0.50 per diluted share -- Total loans and leases decreased $269.4 million versus prior quarter, reflecting a $308.0 million decline in PPP loans -- Total deposits increased $1.3 billion versus prior quarter -- Recorded a $4.0 million negative provision for credit losses -- Board of Directors declared a quarterly dividend of $0.26 per share -- Repurchased $21.6 million of stock under share repurchase program

Balance SheetTotal assets were $25.5 billion as of September 30, 2021, compared to $24.2 billion as of June 30, 2021.

Gross loans and leases were $12.8 billion as of September 30, 2021, a decrease of $269.4 million, or 2.1%, from $13.1 billion as of June 30, 2021.

Total deposits were $22.1 billion as of September 30, 2021, an increase of $1.3 billion, or 6.2%, from $20.8 billion as of June 30, 2021.

Net Interest IncomeNet interest income for the third quarter of 2021 was $132.6 million, an increase of $1.1 million, or 0.8%, compared to $131.5 million for the prior quarter.

The net interest margin (NIM) was 2.36% in the third quarter of 2021, a decrease of 10 basis points compared to 2.46% in the second quarter of 2021.

Provision ExpenseDuring the quarter ended September 30, 2021, we recorded a $4.0 million negative provision for credit losses. In the quarter ended June 30, 2021 we recorded a $35.0 million negative provision for credit losses.

Noninterest IncomeNoninterest income was $50.1 million in the third quarter of 2021, an increase of $0.7 million compared to noninterest income of $49.4 million in the second quarter of 2021.

Noninterest ExpenseNoninterest expense was $101.0 million in the third quarter of 2021, an increase of $1.6 million compared to noninterest expense of $99.4 million in the second quarter of 2021.

The efficiency ratio was 55.1% and 54.7% for the quarters ended September 30, 2021 and June 30, 2021, respectively.

TaxesThe effective tax rate was 25.0% for the quarter ended September 30, 2021 and 25.5% for the quarter ended June 30, 2021.

Asset QualityThe allowance for credit losses was $161.2 million, or 1.26% of total loans and leases, as of September 30, 2021, compared to $169.1 million, or 1.29% of total loans and leases, as of June 30, 2021. The reserve for unfunded commitments was $32.5 million as of September 30, 2021 compared to $29.2 million as of June 30, 2021. Net charge-offs were $0.6 million, or 0.02% of average loans and leases on an annualized basis, for the quarter ended September 30, 2021, compared to net charge-offs of $1.1 million, or 0.03% of average loans and leases on an annualized basis, for the quarter ended June 30, 2021. Total non-performing assets were $8.6 million, or 0.07% of total loans and leases and other real estate owned, at September 30, 2021, compared to total non-performing assets of $8.9 million, or 0.07% of total loans and leases and other real estate owned at June 30, 2021.

CapitalTotal stockholders' equity was $2.7 billion at both September 30, 2021 and June 30, 2021.

The tier 1 leverage, common equity tier 1 and total capital ratios were 7.39%, 12.63% and 13.88%, respectively, at September 30, 2021, compared with 7.68%, 12.76% and 14.01%, respectively, at June 30, 2021.

The Company repurchased 0.8 million shares of common stock at a total cost of$21.6 millionunder the stock repurchase program in the third quarter. The average cost was$27.76 per share repurchased. Remaining buyback authority under the stock repurchase program was$21.5 millionatSeptember 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 Hawaiis 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 Companys website, www.fhb.com.

Conference Call InformationFirst Hawaiian will host a conference call to discuss the Companys 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: 2438538. 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 October 29, 2021. Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 2438538.

Forward-Looking StatementsThis 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 quarters ended March 31, 2021 and June 30, 2021.

Use of Non-GAAP Financial MeasuresWe 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: Media Contact:Kevin Haseyama, CFA Susan Kam(808) 525-6268 (808) 525-6254khaseyama@fhb.com skam@fhb.com

Financial Highlights Table1 For the Three Months Ended Forthe Nine Months Ended September30, June30, September30, September30, (dollarsinthousands,exceptpersharedata) 2021 2021 2020 2021 2020 Operating Results: Net interest income $ 132,593 $ 131,481 $ 134,002 $ 393,232 $ 400,507 Provision for credit losses (4,000 ) (35,000 ) 5,072 (39,000 ) 101,718 Noninterest income 50,104 49,371 48,898 143,343 143,782 Noninterest expense 101,036 99,388 91,629 296,730 279,545 Net income 64,279 86,741 65,101 208,713 124,015 Basic earnings per share 0.50 0.67 0.50 1.61 0.95 Diluted earnings per share 0.50 0.67 0.50 1.61 0.95 Dividends declared per share 0.26 0.26 0.26 0.78 0.78 Dividend payout ratio 52.00 % 38.81 % 52.00 % 48.45 % 82.11 %Supplemental Income Statement Data (non-GAAP): Core net interest income $ 132,593 $ 131,481 $ 134,002 $ 393,232 $ 400,507 Core noninterest income 50,104 49,269 48,874 143,241 143,884 Core noninterest expense 98,936 98,228 91,629 293,470 279,545 Core net income 65,819 87,704 65,083 211,216 124,090 Core basic earnings per share 0.51 0.68 0.50 1.63 0.96 Core diluted earnings per share 0.51 0.68 0.50 1.63 0.95 Performance Ratios^(1): Net interest margin 2.36 % 2.46 % 2.70 % 2.45 % 2.79 %Core net interest margin (non-GAAP) 2.36 % 2.46 % 2.70 % 2.45 % 2.79 %Efficiency ratio 55.07 % 54.74 % 50.01 % 55.10 % 51.32 %Core efficiency ratio (non-GAAP) 53.92 % 54.13 % 50.02 % 54.51 % 51.31 %Return on average total assets 1.02 % 1.45 % 1.16 % 1.16 % 0.76 %Core return on average total assets (non-GAAP) 1.04 % 1.46 % 1.16 % 1.18 % 0.76 %Return on average tangible assets (non-GAAP) 1.06 % 1.51 % 1.21 % 1.21 % 0.80 %Core return on average tangible assets (non-GAAP)^ 1.09 % 1.53 % 1.21 % 1.23 % 0.80 %(2)Return on average total stockholders' equity 9.31 % 12.92 % 9.58 % 10.26 % 6.16 %Core return on average total stockholders' equity 9.54 % 13.07 % 9.57 % 10.38 % 6.17 %(non-GAAP)Return on average tangible stockholders' equity 14.63 % 20.51 % 15.16 % 16.19 % 9.79 %(non-GAAP)Core return on average tangible stockholders? equity 14.98 % 20.74 % 15.15 % 16.38 % 9.80 %(non-GAAP)^(3)Average Balances: Average loans and leases $ 12,881,885 $ 13,205,086 $ 13,559,367 $ 13,108,427 $ 13,569,119 Average earning assets 22,533,174 21,539,264 19,846,674 21,523,731 19,174,349 Average assets 25,058,085 24,015,065 22,341,485 24,013,691 21,667,948 Average deposits 21,621,836 20,638,015 18,892,033 20,595,400 17,995,196 Average stockholders' equity 2,738,540 2,691,966 2,704,129 2,719,442 2,687,632 Market Value Per Share: Closing 29.35 28.34 14.47 29.35 14.47 High 30.06 29.85 18.96 30.80 31.25 Low 25.75 24.75 14.32 23.14 13.56

Asof Asof Asof Asof September30, June30, December31, September30, (dollarsinthousands,exceptpersharedata) 2021 2021 2020 2020 Balance Sheet Data: Loans and leases $ 12,834,339 $ 13,103,785 $ 13,279,097 $ 13,499,969 Total assets 25,548,322 24,246,328 22,662,831 22,310,701 Total deposits 22,120,003 20,835,115 19,227,723 18,897,762 Long-term borrowings 200,000 200,000 200,010 200,010 Total stockholders' equity 2,711,734 2,731,341 2,744,104 2,733,934 Per Share of Common Stock: Book value $ 21.14 $ 21.17 $ 21.12 $ 21.04 Tangible book value (non-GAAP)^(4) 13.38 13.45 13.46 13.38 Asset Quality Ratios: Non-accrual loans and leases / total loans and 0.07 % 0.07 % 0.07 % 0.13 %leasesAllowance for credit losses for loans and leases / 1.26 % 1.29 % 1.57 % 1.45 %total loans and leases Capital Ratios: Common Equity Tier 1 Capital Ratio 12.63 % 12.76 % 12.47 % 12.22 %Tier 1 Capital Ratio 12.63 % 12.76 % 12.47 % 12.22 %Total Capital Ratio 13.88 % 14.01 % 13.73 % 13.47 %Tier 1 Leverage Ratio 7.39 % 7.68 % 8.00 % 7.91 %Total stockholders' equity to total assets 10.61 % 11.26 % 12.11 % 12.25 %Tangible stockholders' equity to tangible assets 6.99 % 7.47 % 8.07 % 8.16 %(non-GAAP) Non-Financial Data: Number of branches 54 54 54 58 Number of ATMs 298 294 297 302 Number of Full-Time Equivalent Employees 2,025 2,087 2,103 2,099

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Except for the efficiency ratio and the core efficiency ratio, amounts are^ annualized for the three and nine months ended September30,2021 and 2020(1) and the three months ended June 30, 2021.

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(2) 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.

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(3) 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.

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(4) 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 Nine Months Ended September30, June30, September30, September30,(dollarsinthousands,exceptpershareamounts) 2021 2021 2020 2021 2020Interest income Loans and lease financing $ 110,765 $ 110,919 $ 120,940 $ 332,623 $ 378,209 Available-for-sale securities 25,234 24,637 20,317 73,017 59,056 Other 1,205 666 670 2,362 3,813 Total interest income 137,204 136,222 141,927 408,002 441,078 Interest expense Deposits 3,218 3,363 6,227 10,637 30,410 Short-term and long-term borrowings 1,393 1,378 1,698 4,133 10,161 Total interest expense 4,611 4,741 7,925 14,770 40,571 Net interest income 132,593 131,481 134,002 393,232 400,507 Provision for credit losses (4,000 ) (35,000 ) 5,072 (39,000 ) 101,718 Net interest income after provision for credit 136,593 166,481 128,930 432,232 298,789 lossesNoninterest income Service charges on deposit accounts 6,989 6,632 6,523 20,339 21,400 Credit and debit card fees 16,017 16,746 14,049 47,314 39,868 Other service charges and fees 10,233 10,303 9,021 29,382 25,472 Trust and investment services income 8,625 8,707 8,664 25,824 26,919 Bank-owned life insurance 4,841 3,104 4,903 10,334 11,595 Investment securities gains (losses), net ? 102 24 102 (102 )Other 3,399 3,777 5,714 10,048 18,630 Total noninterest income 50,104 49,371 48,898 143,343 143,782 Noninterest expense Salaries and employee benefits 46,484 45,982 44,291 136,402 131,534 Contracted services and professional fees 15,042 16,516 15,073 48,746 46,606 Occupancy 6,790 7,314 6,921 21,274 21,466 Equipment 6,549 6,362 5,137 18,402 15,052 Regulatory assessment and fees 1,828 1,826 2,445 5,688 6,491 Advertising and marketing 1,469 1,469 1,374 4,529 4,599 Card rewards program 6,676 6,262 5,046 17,773 17,224 Other 16,198 13,657 11,342 43,916 36,573 Total noninterest expense 101,036 99,388 91,629 296,730 279,545 Income before provision for income taxes 85,661 116,464 86,199 278,845 163,026 Provision for income taxes 21,382 29,723 21,098 70,132 39,011 Net income $ 64,279 $ 86,741 $ 65,101 $ 208,713 $ 124,015 Basic earnings per share $ 0.50 $ 0.67 $ 0.50 $ 1.61 $ 0.95 Diluted earnings per share $ 0.50 $ 0.67 $ 0.50 $ 1.61 $ 0.95 Basic weighted-average outstanding shares 128,660,038 129,392,339 129,896,054 129,323,973 129,882,878 Diluted weighted-average outstanding shares 129,210,448 129,828,847 130,085,534 129,895,311 130,129,690

Consolidated Balance Table 3Sheets September30, June30, December31, September30,(dollarsinthousands) 2021 2021 2020 2020Assets Cash and due from banks $ 268,467 $ 347,861 $ 303,373 $ 333,744 Interest-bearing 2,130,615 1,558,437 737,571 482,585 deposits in other banksInvestment securities,at fair value (amortizedcost: $7,994,266 as ofSeptember30,2021,$6,951,153 as of June 7,953,727 6,953,930 6,071,415 5,692,883 30, 2021, $5,985,031 asof December31,2020and $5,584,556 as ofSeptember30,2020)Loans held for sale 2,052 1,241 11,579 34,669 Loans and leases 12,834,339 13,103,785 13,279,097 13,499,969 Less: allowance for 161,246 169,148 208,454 195,876 credit lossesNet loans and leases 12,673,093 12,934,637 13,070,643 13,304,093 Premises and equipment, 317,272 319,452 322,401 321,229 netAccrued interest 64,855 66,734 69,626 66,005 receivableBank-owned life 468,968 466,402 466,537 462,422 insuranceGoodwill 995,492 995,492 995,492 995,492 Mortgage servicing 9,107 10,007 10,731 10,922 rightsOther assets 664,674 592,135 603,463 606,657 Total assets $ 25,548,322 $ 24,246,328 $ 22,662,831 $ 22,310,701 Liabilities and Stockholders' EquityDeposits: Interest-bearing $ 13,246,579 $ 12,245,193 $ 11,705,609 $ 11,989,492 Noninterest-bearing 8,873,424 8,589,922 7,522,114 6,908,270 Total deposits 22,120,003 20,835,115 19,227,723 18,897,762 Long-term borrowings 200,000 200,000 200,010 200,010 Retirement benefits 144,400 144,101 143,373 138,806 payableOther liabilities 372,185 335,771 347,621 340,189 Total liabilities 22,836,588 21,514,987 19,918,727 19,576,767 Stockholders' equity Common stock ($0.01 parvalue; authorized300,000,000 shares;issued/outstanding:140,563,799 /128,255,570 shares as ofSeptember30,2021,issued/outstanding:140,542,398 / 1,406 1,405 1,402 1,402 129,019,871 shares as ofJune30,2021, issued/outstanding: 140,191,133/ 129,912,272 shares asof December31,2020and issued/outstanding:140,190,428 /129,911,789 shares as ofSeptember30,2020)Additional paid-in 2,524,168 2,520,790 2,514,014 2,511,849 capitalRetained earnings 581,094 550,511 473,974 446,315 Accumulated othercomprehensive (loss) (61,463 ) (29,702 ) 31,604 51,254 income, netTreasury stock(12,308,229 shares as ofSeptember30,2021,11,522,527 shares as ofJune30,2021, (333,471 ) (311,663 ) (276,890 ) (276,886 )10,278,861 shares as ofDecember31,2020 and10,278,639 shares as ofSeptember30,2020)Total stockholders' 2,711,734 2,731,341 2,744,104 2,733,934 equityTotal liabilities and $ 25,548,322 $ 24,246,328 $ 22,662,831 $ 22,310,701 stockholders' equity

AverageBalancesandInterestRates Table4 Three Months Ended Three Months Ended Three Months Ended September30,2021 June30,2021 September30,2020 Average Income/ Yield Average Income/ Yield Average Income/ Yield / / /(dollarsinmillions) Balance Expense Rate Balance Expense Rate Balance Expense Rate Earning Assets Interest-Bearing Deposits in Other $ 2,356.4 $ 0.9 0.16 % $ 1,503.0 $ 0.4 0.10 % $ 889.6 $ 0.2 0.10 %BanksAvailable-for-Sale Investment SecuritiesTaxable 6,654.6 22.9 1.37 6,298.3 22.5 1.43 5,308.5 20.2 1.52 Non-Taxable 561.1 2.9 2.11 468.4 2.7 2.30 25.7 0.1 2.11 Total Available-for-Sale Investment 7,215.7 25.8 1.43 6,766.7 25.2 1.49 5,334.2 20.3 1.53 SecuritiesLoans Held for Sale 2.2 ? 2.39 2.0 ? 1.44 10.2 0.1 2.67 Loans and Leases^(1) Commercial and industrial 2,367.2 19.7 3.29 2,882.1 21.1 2.94 3,230.4 21.6 2.67 Commercial real estate 3,447.0 25.4 2.92 3,419.7 25.3 2.97 3,418.0 27.8 3.23 Construction 862.4 7.0 3.24 800.9 6.3 3.15 637.6 5.2 3.22 Residential: Residential mortgage 3,866.1 34.6 3.58 3,765.4 34.0 3.62 3,680.5 37.9 4.12 Home equity line 837.7 5.5 2.62 812.6 5.5 2.72 871.1 6.6 3.02 Consumer 1,260.2 16.8 5.28 1,277.9 16.9 5.32 1,474.4 20.2 5.46 Lease financing 241.3 2.0 3.23 246.5 1.9 3.06 247.4 1.8 2.90 Total Loans and Leases 12,881.9 111.0 3.43 13,205.1 111.0 3.37 13,559.4 121.1 3.56 Other Earning Assets 77.0 0.3 1.34 62.5 0.3 1.91 53.3 0.5 3.32 Total Earning Assets^(2) 22,533.2 138.0 2.44 21,539.3 136.9 2.55 19,846.7 142.2 2.86 Cash and Due from Banks 290.5 290.7 307.9 Other Assets 2,234.4 2,185.1 2,186.9 Total Assets $ 25,058.1 $ 24,015.1 $ 22,341.5 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 6,886.0 $ 0.6 0.03 % $ 6,361.8 $ 0.5 0.03 % 5,768.3 $ 0.6 0.04 %Money Market 3,957.1 0.5 0.05 3,783.1 0.5 0.06 3,288.2 0.4 0.05 Time 1,884.4 2.1 0.45 2,034.5 2.3 0.45 3,029.8 5.2 0.69 Total Interest-Bearing Deposits 12,727.5 3.2 0.10 12,179.4 3.3 0.11 12,086.3 6.2 0.20 Short-Term Borrowings ? ? ? ? ? ? 45.1 0.3 2.69 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 12,927.5 4.6 0.14 12,379.4 4.7 0.15 12,331.4 7.9 0.26 Net Interest Income $ 133.4 $ 132.2 $ 134.3 Interest Rate Spread 2.30 % 2.40 % 2.60 %Net Interest Margin 2.36 % 2.46 % 2.70 %Noninterest-Bearing Demand Deposits 8,894.3 8,458.6 6,805.7 Other Liabilities 497.7 485.1 500.3 Stockholders' Equity 2,738.6 2,692.0 2,704.1 Total Liabilities and Stockholders' $ 25,058.1 $ 24,015.1 $ 22,341.5 Equity

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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(1) on a cash basis.

Interest income includes taxable-equivalent basis adjustments of $0.8^ million, $0.7 million and $0.3 million for the three months ended September(2) 30, 2021, June 30, 2021 and September 30, 2020, respectively.

Average Balances Table 5and Interest Rates Nine Months Ended Nine Months Ended September30,2021 September30,2020 Average Income/ Yield Average Income/ Yield / /(dollars in Balance Expense Rate Balance Expense Rate millions)Earning Assets Interest-BearingDeposits in Other $ 1,604.6 $ 1.5 0.13 % $ 947.3 $ 2.2 0.31 %BanksAvailable-for-SaleInvestment SecuritiesTaxable 6,303.5 67.5 1.43 4,579.8 59.0 1.72 Non-Taxable 436.9 6.9 2.11 8.9 0.1 2.11 TotalAvailable-for-Sale 6,740.4 74.4 1.47 4,588.7 59.1 1.72 InvestmentSecuritiesLoans Held for Sale 4.4 0.1 2.31 11.9 0.2 2.31 Loans and Leases^ (1)Commercial and 2,756.2 61.2 2.97 3,202.4 70.5 2.94 industrialCommercial real 3,417.5 75.6 2.96 3,423.9 90.7 3.54 estateConstruction 803.8 19.2 3.19 586.9 15.8 3.59 Residential: Residential 3,776.5 103.3 3.65 3,700.8 111.3 4.01 mortgageHome equity line 824.1 16.7 2.71 881.2 21.1 3.20 Consumer 1,287.1 51.4 5.34 1,537.5 63.9 5.55 Lease financing 243.2 5.7 3.10 236.4 5.1 2.90 Total Loans and 13,108.4 333.1 3.39 13,569.1 378.4 3.72 LeasesOther Earning 65.9 0.8 1.65 57.3 1.6 3.78 AssetsTotal Earning 21,523.7 409.9 2.54 19,174.3 441.5 3.07 Assets^(2)Cash and Due from 291.7 310.1 BanksOther Assets 2,198.3 2,183.5 Total Assets $ 24,013.7 $ 21,667.9 Interest-Bearing LiabilitiesInterest-Bearing DepositsSavings $ 6,410.9 $ 1.7 0.04 % $ 5,454.7 $ 4.7 0.12 %Money Market 3,758.3 1.5 0.05 3,208.1 6.1 0.25 Time 2,067.7 7.4 0.48 2,966.9 19.6 0.88 TotalInterest-Bearing 12,236.9 10.6 0.12 11,629.7 30.4 0.35 DepositsShort-Term ? ? ? 279.9 6.0 2.87 BorrowingsLong-Term 200.0 4.2 2.76 200.0 4.2 2.77 BorrowingsTotalInterest-Bearing 12,436.9 14.8 0.16 12,109.6 40.6 0.45 LiabilitiesNet Interest Income $ 395.1 $ 400.9 Interest Rate 2.38 % 2.62 %SpreadNet Interest Margin 2.45 % 2.79 %Noninterest-Bearing 8,358.5 6,365.5 Demand DepositsOther Liabilities 498.9 505.2 Stockholders' 2,719.4 2,687.6 EquityTotal Liabilitiesand Stockholders' $ 24,013.7 $ 21,667.9 Equity

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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(1) on a cash basis.

Interest income includes taxable-equivalent basis adjustments of $1.9^ million and $0.4 million for the nine months ended September 30, 2021 and(2) 2020, respectively.

Analysis of Change in Net Interest Income Table 6 Three Months Ended September30,2021 Compared to June 30, 2021(dollars in millions) Volume Rate TotalChange in Interest Income: Interest-Bearing Deposits in Other Banks $ 0.2 $ 0.3 $ 0.5 Available-for-Sale Investment Securities Taxable 1.3 (0.9 ) 0.4 Non-Taxable 0.5 (0.3 ) 0.2 Total Available-for-Sale Investment 1.8 (1.2 ) 0.6 SecuritiesLoans and Leases Commercial and industrial (3.9 ) 2.5 (1.4 )Commercial real estate 0.3 (0.2 ) 0.1 Construction 0.5 0.2 0.7 Residential: Residential mortgage 1.0 (0.4 ) 0.6 Home equity line 0.2 (0.2 ) ? Consumer (0.1 ) ? (0.1 )Lease financing ? 0.1 0.1 Total Loans and Leases (2.0 ) 2.0 ? Other Earning Assets 0.1 (0.1 ) ? Total Change in Interest Income 0.1 1.0 1.1 Change in Interest Expense: Interest-Bearing Deposits Savings 0.1 ? 0.1 Time (0.2 ) ? (0.2 )Total Interest-Bearing Deposits (0.1 ) ? (0.1 )Total Change in Interest Expense (0.1 ) ? (0.1 )Change in Net Interest Income $ 0.2 $ 1.0 $ 1.2

Analysis of Change in Net Interest Income Table 7 Three Months Ended September30,2021 Compared to September30,2020(dollars in millions) Volume Rate TotalChange in Interest Income: Interest-Bearing Deposits in Other Banks $ 0.5 $ 0.2 $ 0.7 Available-for-Sale Investment Securities Taxable 4.8 (2.1 ) 2.7 Non-Taxable 2.8 ? 2.8 Total Available-for-Sale Investment 7.6 (2.1 ) 5.5 SecuritiesLoans Held for Sale (0.1 ) ? (0.1 )Loans and Leases Commercial and industrial (6.3 ) 4.4 (1.9 )Commercial real estate 0.2 (2.6 ) (2.4 )Construction 1.8 ? 1.8 Residential: Residential mortgage 1.8 (5.1 ) (3.3 )Home equity line (0.2 ) (0.9 ) (1.1 )Consumer (2.8 ) (0.6 ) (3.4 )Lease financing ? 0.2 0.2 Total Loans and Leases (5.5 ) (4.6 ) (10.1 )Other Earning Assets 0.1 (0.3 ) (0.2 )Total Change in Interest Income 2.6 (6.8 ) (4.2 ) Change in Interest Expense: Interest-Bearing Deposits Savings 0.1 (0.1 ) ? Money Market 0.1 ? 0.1 Time (1.6 ) (1.5 ) (3.1 )Total Interest-Bearing Deposits (1.4 ) (1.6 ) (3.0 )Short-Term Borrowings (0.2 ) (0.1 ) (0.3 )Total Change in Interest Expense (1.6 ) (1.7 ) (3.3 )Change in Net Interest Income $ 4.2 $ (5.1 ) $ (0.9 )

Analysis of Change in Net Interest Income Table 8 Nine Months Ended September30,2021 Compared to September30,2020(dollars in millions) Volume Rate TotalChange in Interest Income: Interest-Bearing Deposits in Other Banks $ 1.0 $ (1.7 ) $ (0.7 )Available-for-Sale Investment Securities Taxable 19.6 (11.1 ) 8.5 Non-Taxable 6.8 ? 6.8 Total Available-for-Sale Investment 26.4 (11.1 ) 15.3 SecuritiesLoans Held for Sale (0.1 ) ? (0.1 )Loans and Leases Commercial and industrial (10.0 ) 0.7 (9.3 )Commercial real estate (0.2 ) (14.9 ) (15.1 )Construction 5.3 (1.9 ) 3.4 Residential: Residential mortgage 2.2 (10.2 ) (8.0 )Home equity line (1.3 ) (3.1 ) (4.4 )Consumer (10.1 ) (2.4 ) (12.5 )Lease financing 0.2 0.4 0.6 Total Loans and Leases (13.9 ) (31.4 ) (45.3 )Other Earning Assets 0.2 (1.0 ) (0.8 )Total Change in Interest Income 13.6 (45.2 ) (31.6 ) Change in Interest Expense: Interest-Bearing Deposits Savings 0.7 (3.7 ) (3.0 )Money Market 0.9 (5.5 ) (4.6 )Time (4.9 ) (7.3 ) (12.2 )Total Interest-Bearing Deposits (3.3 ) (16.5 ) (19.8 )Short-Term Borrowings (3.0 ) (3.0 ) (6.0 )Total Change in Interest Expense (6.3 ) (19.5 ) (25.8 )Change in Net Interest Income $ 19.9 $ (25.7 ) $ (5.8 )

Loans and Table 9Leases September30, June30, December31, September30,(dollars in 2021 2021 2020 2020thousands)Commercialand industrial:Commercialandindustrialexcluding $ 1,692,315 $ 1,753,444 $ 2,218,266 $ 2,250,094PaycheckProtectionProgramloansPaycheckProtection 503,069 811,103 801,241 920,168ProgramloansTotalcommercial 2,195,384 2,564,547 3,019,507 3,170,262andindustrialCommercial 3,569,768 3,528,068 3,392,676 3,461,085real estateConstruction 826,078 853,865 735,819 662,871Residential: Residential 3,914,632 3,821,407 3,690,218 3,669,051mortgageHome equity 852,074 825,368 841,624 864,789lineTotal 4,766,706 4,646,775 4,531,842 4,533,840residentialConsumer 1,238,714 1,267,559 1,353,842 1,425,934Lease 237,689 242,971 245,411 245,977financingTotal loans $ 12,834,339 $ 13,103,785 $ 13,279,097 $ 13,499,969and leases

Deposits Table 10 September30, June30, December31, September30,(dollarsin 2021 2021 2020 2020thousands)Demand $ 8,873,424 $ 8,589,922 $ 7,522,114 $ 6,908,270Savings 7,347,079 6,421,053 6,020,075 5,994,687Money 4,019,250 3,920,477 3,337,236 3,379,985MarketTime 1,880,250 1,903,663 2,348,298 2,614,820Total $ 22,120,003 $ 20,835,115 $ 19,227,723 $ 18,897,762Deposits

Non-PerformingAssets andAccruing Loans Table 11and Leases PastDue 90 Days orMore September30, June30, December31, September30,(dollars in 2021 2021 2020 2020thousands)Non-Performing AssetsNon-Accrual Loans and LeasesCommercial Loans: Commercial and $ 746 $ 828 $ 518 $ 725industrialCommercial real 745 937 80 7,067estateConstruction ? ? 2,043 2,043Total Commercial 1,491 1,765 2,641 9,835LoansResidential Loans:Residential 7,137 7,140 6,441 7,798mortgageTotal Residential 7,137 7,140 6,441 7,798LoansTotal Non-Accrual 8,628 8,905 9,082 17,633Loans and LeasesTotalNon-Performing $ 8,628 $ 8,905 $ 9,082 $ 17,633Assets Accruing Loansand Leases Past Due 90 Days orMoreCommercial Loans: Commercial and $ 439 $ 494 $ 2,108 $ 1,938industrialCommercial real ? ? 882 1,307estateConstruction ? 60 93 100Total Commercial 439 554 3,083 3,345LoansResidential Loans:Residential 100 ? ? ?mortgageHome equity line 3,871 4,680 4,818 4,503Total Residential 3,971 4,680 4,818 4,503LoansConsumer 1,376 1,134 3,266 2,897Total AccruingLoans and Leases $ 5,786 $ 6,368 $ 11,167 $ 10,745Past Due 90 Daysor More RestructuredLoans on AccrualStatus and Not $ 36,234 $ 36,668 $ 16,684 $ 9,726Past Due 90 Daysor MoreTotal Loans and $ 12,834,339 $ 13,103,785 $ 13,279,097 $ 13,499,969Leases

Allowance for Table 12Credit Losses Forthe Three Months Ended Forthe Nine Months Ended September30, June30, September30, September30, September30, (dollars in 2021 2021 2020 2021 2020 thousands)Balance atBeginning of $ 169,148 $ 200,366 $ 192,120 $ 208,454 $ 130,530 PeriodAdjustment toAdopt ASC ? ? ? ? 770 Topic 326AfterAdoption of 169,148 200,366 192,120 208,454 131,300 ASC Topic 326Loans andLeases Charged-OffCommercial Loans:Commercialand (224 ) (330 ) (598 ) (1,517 ) (14,773 ) industrialCommercial ? ? ? (66 ) (2,723 ) real estateConstruction ? ? ? ? (379 ) TotalCommercial (224 ) (330 ) (598 ) (1,583 ) (17,875 ) LoansResidential Loans:Residential ? ? ? (98 ) (14 ) mortgageHome equity (235 ) ? ? (235 ) (8 ) lineTotalResidential (235 ) ? ? (333 ) (22 ) LoansConsumer (2,926 ) (3,917 ) (4,238 ) (13,384 ) (21,742 ) Total Loansand Leases (3,385 ) (4,247 ) (4,836 ) (15,300 ) (39,639 ) Charged-OffRecoveries onLoans andLeases PreviouslyCharged-OffCommercial Loans:Commercialand 121 287 1,699 623 2,019 industrialCommercial 15 12 ? 30 ? real estateConstruction ? ? 30 166 170 TotalCommercial 136 299 1,729 819 2,189 LoansResidential Loans:Residential 215 14 27 246 179 mortgageHome equity 27 38 16 89 146 lineTotalResidential 242 52 43 335 325 LoansConsumer 2,405 2,797 3,148 7,857 7,687 TotalRecoveries onLoans and 2,783 3,148 4,920 9,011 10,201 LeasesPreviouslyCharged-OffNet Loans andLeases (602 ) (1,099 ) 84 (6,289 ) (29,438 ) (Charged-Off)RecoveredProvision forCredit Losses (7,300 ) (30,119 ) 3,672 (40,919 ) 94,014 - Loans andLeasesBalance at $ 161,246 $ 169,148 $ 195,876 $ 161,246 $ 195,876 End of PeriodAverage Loansand Leases $ 12,881,885 $ 13,205,086 $ 13,559,367 $ 13,108,427 $ 13,569,119 OutstandingRatio of NetLoans andLeasesCharged-Offto Average 0.02 % 0.03 % ? % 0.06 % 0.29 %Loans andLeasesOutstanding^(1)Ratio ofAllowance forCredit Lossesfor Loans and 1.26 % 1.29 % 1.45 % 1.26 % 1.45 %Leases toLoans andLeasesOutstanding

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^ Annualized for the three and nine months ended September 30, 2021 and 2020(1) and three months ended June 30, 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 2021 2020 2019 2018 2017 Prior Cost Cost Totalthousands) Basis BasisCommercial LendingCommercialand IndustrialRisk rating: Pass $ 633,079 $ 172,147 $ 162,921 $ 128,968 $ 31,439 $ 194,494 $ 578,257 $ 21,767 $ 1,923,072Special 5,421 4,709 104,973 4,083 1,069 4,292 23,127 289 147,963MentionSubstandard 371 1,663 2,102 13,874 97 8,285 19,162 1,307 46,861Other ^(1) 10,257 7,897 8,955 5,364 2,740 573 41,702 ? 77,488TotalCommercial 649,128 186,416 278,951 152,289 35,345 207,644 662,248 23,363 2,195,384andIndustrial Commercial Real EstateRisk rating: Pass 493,286 342,433 578,079 522,123 429,840 967,286 59,685 ? 3,392,732Special ? 1,472 48,916 16,054 28,264 56,319 7,604 ? 158,629MentionSubstandard ? ? ? 1,907 258 15,578 502 ? 18,245Other ^(1) ? ? ? ? ? 162 ? ? 162TotalCommercial 493,286 343,905 626,995 540,084 458,362 1,039,345 67,791 ? 3,569,768Real Estate Construction Risk rating: Pass 57,368 94,127 285,960 151,714 63,031 67,670 58,013 ? 777,883Special ? ? 473 708 ? 359 ? ? 1,540MentionSubstandard ? ? ? 369 ? 850 ? ? 1,219Other ^(1) 19,268 10,753 4,367 4,955 2,710 2,581 802 ? 45,436Total 76,636 104,880 290,800 157,746 65,741 71,460 58,815 ? 826,078Construction Lease FinancingRisk rating: Pass 26,419 64,989 53,457 10,371 15,819 58,940 ? ? 229,995Special 523 282 501 182 27 201 ? ? 1,716MentionSubstandard ? 2,720 1,506 225 1,037 490 ? ? 5,978Total Lease 26,942 67,991 55,464 10,778 16,883 59,631 ? ? 237,689Financing TotalCommercial $ 1,245,992 $ 703,192 $ 1,252,210 $ 860,897 $ 576,331 $ 1,378,080 $ 788,854 $ 23,363 $ 6,828,919Lending

Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in 2021 2020 2019 2018 2017 Prior Cost Basis Cost Totalthousands) BasisResidential Lending Residential Mortgage FICO: 740 and greater $ 804,889 $ 661,402 $ 306,706 $ 209,819 $ 270,664 $ 879,063 $ ? $ ? $ 3,132,543680 - 739 104,415 79,553 52,470 36,440 40,109 141,178 ? ? 454,165620 - 679 14,479 11,825 6,941 5,683 10,341 41,481 ? ? 90,750550 - 619 231 818 193 2,059 1,428 7,378 ? ? 12,107Less than 550 ? ? ? 490 2,533 3,127 ? ? 6,150No Score ^(3) 13,307 8,559 15,727 20,112 18,265 46,312 ? ? 122,282Other ^(2) 18,701 17,823 10,835 11,779 18,988 17,737 625 147 96,635Total Residential 956,022 779,980 392,872 286,382 362,328 1,136,276 625 147 3,914,632Mortgage Home Equity Line FICO: 740 and greater ? ? ? ? ? ? 637,131 2,220 639,351680 - 739 ? ? ? ? ? ? 150,452 3,485 153,937620 - 679 ? ? ? ? ? ? 38,987 1,709 40,696550 - 619 ? ? ? ? ? ? 10,433 1,473 11,906Less than 550 ? ? ? ? ? ? 2,260 70 2,330No Score ^(3) ? ? ? ? ? ? 3,854 ? 3,854Total Home Equity ? ? ? ? ? ? 843,117 8,957 852,074LineTotal Residential 956,022 779,980 392,872 286,382 362,328 1,136,276 843,742 9,104 4,766,706Lending Consumer Lending FICO: 740 and greater 130,773 88,770 88,797 65,818 30,908 11,516 107,938 245 524,765680 - 739 72,447 63,996 65,105 41,209 21,461 8,912 68,887 717 342,734620 - 679 27,131 28,491 33,219 22,225 15,042 6,825 30,956 1,398 165,287550 - 619 3,181 8,735 15,408 12,262 9,546 4,829 10,150 1,177 65,288Less than 550 341 3,200 6,116 4,665 3,196 1,757 2,983 578 22,836No Score ^(3) 1,155 60 81 46 77 3 34,234 420 36,076Other ^(2) 709 368 1,735 30 2,183 38 76,665 ? 81,728Total Consumer 235,737 193,620 210,461 146,255 82,413 33,880 331,813 4,535 1,238,714Lending Total Loans and $ 2,437,751 $ 1,676,792 $ 1,855,543 $ 1,293,534 $ 1,021,072 $ 2,548,236 $ 1,964,409 $ 37,002 $ 12,834,339Leases

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Other credit quality indicators used for monitoring purposes are primarily^ FICO scores. The majority of the loans in this population were originated(1) 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(2) 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(3) collateral and/or are closely monitored for performance.

GAAPtoNon-GAAPReconciliation Table14 Forthe Three Months Ended Forthe Nine Months Ended September30, June30, September30, September30, (dollarsinthousands,exceptpershareamounts) 2021 2021 2020 2021 2020 Income Statement Data: Net income $ 64,279 $ 86,741 $ 65,101 $ 208,713 $ 124,015 Core net income $ 65,819 $ 87,704 $ 65,083 $ 211,216 $ 124,090 Average total stockholders' equity $ 2,738,540 $ 2,691,966 $ 2,704,129 $ 2,719,442 $ 2,687,632 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible stockholders' equity $ 1,743,048 $ 1,696,474 $ 1,708,637 $ 1,723,950 $ 1,692,140 Average total assets $ 25,058,085 $ 24,015,065 $ 22,341,485 $ 24,013,691 $ 21,667,948 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible assets $ 24,062,593 $ 23,019,573 $ 21,345,993 $ 23,018,199 $ 20,672,456 Return on average total stockholders' equity^(1) 9.31 % 12.92 % 9.58 % 10.26 % 6.16 %Core return on average total stockholders' equity 9.54 % 13.07 % 9.57 % 10.38 % 6.17 %(non-GAAP)^(1)Return on average tangible stockholders' equity 14.63 % 20.51 % 15.16 % 16.19 % 9.79 %(non-GAAP)^(1)Core return on average tangible stockholders' equity 14.98 % 20.74 % 15.15 % 16.38 % 9.80 %(non-GAAP)^(1) Return on average total assets^(1) 1.02 % 1.45 % 1.16 % 1.16 % 0.76 %Core return on average total assets (non-GAAP)^(1) 1.04 % 1.46 % 1.16 % 1.18 % 0.76 %Return on average tangible assets (non-GAAP)^(1) 1.06 % 1.51 % 1.21 % 1.21 % 0.80 %Core return on average tangible assets (non-GAAP)^(1) 1.09 % 1.53 % 1.21 % 1.23 % 0.80 %

Asof Asof Asof Asof September30, June30, December31, September30, 2021 2021 2020 2020 Balance Sheet Data:Totalstockholders' $ 2,711,734 $ 2,731,341 $ 2,744,104 $ 2,733,934 equityLess: 995,492 995,492 995,492 995,492 goodwillTangiblestockholders' $ 1,716,242 $ 1,735,849 $ 1,748,612 $ 1,738,442 equity Total assets $ 25,548,322 $ 24,246,328 $ 22,662,831 $ 22,310,701 Less: 995,492 995,492 995,492 995,492 goodwillTangible $ 24,552,830 $ 23,250,836 $ 21,667,339 $ 21,315,209 assets Shares 128,255,570 129,019,871 129,912,272 129,911,789 outstanding Totalstockholders' 10.61 % 11.26 % 12.11 % 12.25 %equity tototal assetsTangiblestockholders'equity to 6.99 % 7.47 % 8.07 % 8.16 %tangibleassets(non-GAAP) Book value $ 21.14 $ 21.17 $ 21.12 $ 21.04 per shareTangible bookvalue per $ 13.38 $ 13.45 $ 13.46 $ 13.38 share(non-GAAP)

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^ Annualized for the three and nine months ended September 30, 2021 and 2020(1) and three months ended June 30, 2021.

GAAPtoNon-GAAPReconciliation Table 15 For the Three Months Ended Forthe Nine Months Ended September30, June30, September30, September30, (dollarsinthousands, except per 2021 2021 2020 2021 2020 share amounts)Net interest income $ 132,593 $ 131,481 $ 134,002 $ 393,232 $ 400,507 Core net interest income (non-GAAP) $ 132,593 $ 131,481 $ 134,002 $ 393,232 $ 400,507 Noninterest income $ 50,104 $ 49,371 $ 48,898 $ 143,343 $ 143,782 (Gains) losses on sale of ? (102 ) (24 ) (102 ) 102 securitiesCore noninterest income (non-GAAP) $ 50,104 $ 49,269 $ 48,874 $ 143,241 $ 143,884 Noninterest expense $ 101,036 $ 99,388 $ 91,629 $ 296,730 $ 279,545 Loss on litigation (2,100 ) ? ? (2,100 ) ? One-time items^(1) ? (1,160 ) ? (1,160 ) ? Core noninterest expense (non-GAAP) $ 98,936 $ 98,228 $ 91,629 $ 293,470 $ 279,545 Net income $ 64,279 $ 86,741 $ 65,101 $ 208,713 $ 124,015 (Gains) losses on sale of ? (102 ) (24 ) (102 ) 102 securitiesLoss on litigation 2,100 ? ? 2,100 ? One-time noninterest expense items^ ? 1,160 ? 1,160 ? (1)Tax adjustments^(2) (560 ) (95 ) 6 (655 ) (27 ) Total core adjustments 1,540 963 (18 ) 2,503 75 Core net income (non-GAAP) $ 65,819 $ 87,704 $ 65,083 $ 211,216 $ 124,090 Basic earnings per share $ 0.50 $ 0.67 $ 0.50 $ 1.61 $ 0.95 Diluted earnings per share $ 0.50 $ 0.67 $ 0.50 $ 1.61 $ 0.95 Efficiency ratio 55.07 % 54.74 % 50.01 % 55.10 % 51.32 % Core basic earnings per share $ 0.51 $ 0.68 $ 0.50 $ 1.63 $ 0.96 (non-GAAP)Core diluted earnings per share $ 0.51 $ 0.68 $ 0.50 $ 1.63 $ 0.95 (non-GAAP)Core efficiency ratio (non-GAAP) 53.92 % 54.13 % 50.02 % 54.51 % 51.31 %

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^ One-time items consisted of severance costs.(1)^ Represents the adjustments to net income, tax effected at the Company?s(2) effective tax rate for the respective period.