GlobeNewswire Inc | Oct 23, 2020 08:00AM EDT

October 23, 2020

HONOLULU, Oct. 23, 2020 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (First Hawaiian or the Company) today reported financial results for its quarter ended September 30, 2020.

In spite of the current economic environment, we reported solid financial results for the third quarter, said Bob Harrison, Chairman, President and CEO. These are still challenging times, but the re-opening of the local economy, and more recently, the pre-testing program for trans-Pacific travel, are important steps toward the states economic recovery.

On October 21, 2020 the Companys Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on December 4, 2020 to stockholders of record at the close of business on November 23, 2020.

ThirdQuarter 2020Highlights

-- Net income of $65.1 million, or $0.50 per diluted share -- Net interest income increased $6.2 million, or 4.8% versus prior quarter -- Noninterest income increased $3.2 million, or 7.1% versus prior quarter -- Consumer and commercial deposits increased $166.0 million and public deposits decreased $629.9 million versus the prior quarter -- Net interest margin (NIM) was 2.70%, a 12 basis point increase versus the prior quarter -- Recorded a $5.1 million provision for credit losses -- Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet

Total assets were $22.3 billion as of September 30, 2020, compared to $23.0 billion as of June 30, 2020.

Gross loans and leases were $13.5 billion as of September 30, 2020, a decrease of $264.1 million, or 1.9%, from $13.8 billion as of June 30, 2020.

Total deposits were $18.9 billion as of September 30, 2020, a decrease of $463.9 million, or 2.4%, from $19.4 billion as of June 30, 2020.

Net Interest Income

Net interest income for the third quarter of 2020 was $134.0 million, an increase of $6.2 million, or 4.8%, compared to $127.8 million for the prior quarter.

The NIM was 2.70% in the third quarter of 2020, an increase of 12 basis points compared to 2.58% in the second quarter of 2020.

Provision Expense

During the quarter ended September 30, 2020, the Bank recorded a total provision for credit losses of $5.1 million. In the quarter ended June 30, 2020, the total provision for credit losses was $55.4 million.

Noninterest Income

Noninterest income was $48.9 million in the third quarter of 2020, an increase of $3.2 million compared to noninterest income of $45.7 million in the second quarter of 2020.

Noninterest Expense

Noninterest expense was $91.6 million in the third quarter of 2020, essentially unchanged from $91.5 million in the second quarter of 2020.

The efficiency ratio was 50.0% and 52.7% for the quarters ended September 30, 2020 and June 30, 2020, respectively.

Taxes

The effective tax rate was 24.5% for the quarter ended September 30, 2020 and 24.6% for the quarter ended June 30, 2020.

Asset Quality

The allowance for credit losses was $195.9 million, or 1.45% of total loans and leases, as of September 30, 2020, compared to $192.1 million, or 1.40% of total loans and leases, as of June 30, 2020. The reserve for unfunded commitments was $24.6 million as of September 30, 2020 compared to $23.2 million as of June 30, 2020. Net recoveries were $0.1 million, or 0.0% of average loans and leases on an annualized basis for the quarter ended September 30, 2020, compared to $23.4 million, or 0.67% of average loans and leases on an annualized basis for the quarter ended June 30, 2020. Total non-performing assets were $17.6 million, or 0.13% of total loans and leases and other real estate owned, at September 30, 2020, compared to non-performing assets of $33.3 million, or 0.24% of total loans and leases and other real estate owned, at June 30, 2020.

Capital

Total stockholders' equity was $2.7 billion at both September 30 and June 30, 2020.

The tier 1 leverage, common equity tier 1 and total capital ratios were 7.91%, 12.22% and 13.47%, respectively, at September 30, 2020, compared with 7.75%, 11.86% and 13.11%, respectively, at June 30, 2020.

The Company suspended its stock repurchase program during the first quarter and did not repurchase any shares of common stock in the third 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 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 Information

First 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: 5358159. 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 30, 2020. Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 5358159.

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, 2019 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020.

Use of Non-GAAP Financial Measures

We present net interest income, noninterest income, noninterest expense, net income, earnings per share (basic and diluted) and the related ratios described below, on an adjusted, or core, basis, each a non-GAAP financial measure. These core measures exclude from the corresponding GAAP measure the impact of certain items that we do not believe are representative of our financial results. We believe that the presentation of these non-GAAP financial measures helps identify underlying trends in our business from period to period that could otherwise be distorted by the effect of certain expenses, gains and other items included in our operating results. We believe that these core measures provide useful information about our operating results and enhance the overall understanding of our past performance and future performance. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition.

Core net interest margin, core efficiency ratio, core return on average total assets and core return on average total stockholders equity are non-GAAP financial measures. We compute our core net interest margin as the ratio of core net interest income to average earning assets. We compute our core efficiency ratio as the ratio of core noninterest expense to the sum of core net interest income and core noninterest income. We compute our core return on average total assets as the ratio of core net income to average total assets. We compute our core return on average total stockholders equity as the ratio of core net income to average total stockholders equity.

Return on average tangible stockholders equity, core return on average tangible stockholders equity, return on average tangible assets, core return on average tangible assets and tangible stockholders equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible stockholders equity as the ratio of net income to average tangible stockholders equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders equity. We compute our core return on average tangible stockholders equity as the ratio of core net income to average tangible stockholders equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders equity. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our core return on average tangible assets as the ratio of core net income to average tangible assets. We compute our tangible stockholders equity to tangible assets as the ratio of tangible stockholders equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP.

Tables 14 and 15 at the end of this document provide a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.

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

Financial Highlights Table1 For the Three Months Ended Forthe Nine Months Ended September30, June30, September30, September30, (dollarsinthousands,exceptpersharedata) 2020 2020 2019 2020 2019 Operating Results: Net interest income $ 134,002 $ 127,822 $ 143,081 $ 400,507 $ 433,783 Provision for credit losses 5,072 55,446 ? 101,718 9,550 Noninterest income 48,898 45,656 49,980 143,782 145,825 Noninterest expense 91,629 91,450 93,466 279,545 279,379 Net income 65,101 20,049 74,199 124,015 216,556 Basic earnings per share 0.50 0.15 0.56 0.95 1.62 Diluted earnings per share 0.50 0.15 0.56 0.95 1.61 Dividends declared per share 0.26 0.26 0.26 0.78 0.78 Dividend payout ratio 52.00 % 173.33 % 46.43 % 82.11 % 48.45 %Supplemental Income Statement Data (non-GAAP): Core net interest income $ 134,002 $ 127,822 $ 143,081 $ 400,507 $ 433,783 Core noninterest income 48,874 45,867 49,980 143,884 148,417 Core noninterest expense 91,629 91,450 91,222 279,545 276,613 Core net income 65,083 20,204 75,871 124,090 220,535 Core basic earnings per share 0.50 0.16 0.57 0.96 1.65 Core diluted earnings per share 0.50 0.16 0.57 0.95 1.64 Performance Ratio^(1): Net interest margin 2.70 % 2.58 % 3.19 % 2.79 % 3.22 %Core net interest margin (non-GAAP) 2.70 % 2.58 % 3.19 % 2.79 % 3.22 %Efficiency ratio 50.01 % 52.70 % 48.41 % 51.32 % 48.20 %Core efficiency ratio (non-GAAP) 50.02 % 52.64 % 47.25 % 51.31 % 47.51 %Return on average total assets 1.16 % 0.36 % 1.45 % 0.76 % 1.42 %Core return on average total assets (non-GAAP) 1.16 % 0.36 % 1.48 % 0.76 % 1.44 %Return on average tangible assets (non-GAAP) 1.21 % 0.38 % 1.52 % 0.80 % 1.49 %Core return on average tangible assets 1.21 % 0.38 % 1.56 % 0.80 % 1.52 %(non-GAAP)^(2)Return on average total stockholders' equity 9.58 % 2.99 % 11.12 % 6.16 % 11.13 %Core return on average total stockholders' 9.57 % 3.01 % 11.37 % 6.17 % 11.34 %equity (non-GAAP)Return on average tangible stockholders' equity 15.16 % 4.74 % 17.81 % 9.79 % 18.04 %(non-GAAP)Core return on average tangible stockholders? 15.15 % 4.77 % 18.21 % 9.80 % 18.37 %equity (non-GAAP)^(3)Average Balances: Average loans and leases $ 13,559,367 $ 13,956,669 $ 13,032,349 $ 13,569,119 $ 13,105,086 Average earning assets 19,846,674 19,854,795 17,862,564 19,174,349 17,974,363 Average assets 22,341,485 22,341,654 20,332,457 21,667,948 20,405,261 Average deposits 18,892,033 18,540,394 16,573,796 17,995,196 16,700,366 Average stockholders' equity 2,704,129 2,697,775 2,648,428 2,687,632 2,600,259 Market Value Per Share: Closing 14.47 17.24 26.70 14.47 26.70 High 18.96 21.50 27.84 31.25 28.20 Low 14.32 13.56 24.25 13.56 22.13

Asof Asof Asof Asof September30, June30, December31, September30, 2020 2020 2019 2019 Balance Sheet Data:Loans and $ 13,499,969 $ 13,764,030 $ 13,211,650 $ 12,843,396 leasesTotal assets 22,310,701 22,993,715 20,166,734 20,598,220 Total deposits 18,897,762 19,361,634 16,444,994 16,857,246 Short-term ? 200,000 400,000 400,000 borrowingsLong-term 200,010 200,019 200,019 200,018 borrowingsTotalstockholders' 2,733,934 2,701,897 2,640,258 2,654,558 equity Per Share of Common Stock:Book value $ 21.04 $ 20.81 $ 20.32 $ 20.22 Tangible bookvalue 13.38 13.14 12.66 12.64 (non-GAAP)^(4) Asset Quality Ratios:Non-accrualloans andleases / total 0.13 % 0.24 % 0.04 % 0.03 %loans andleasesAllowance forcredit lossesfor loans and 1.45 % 1.40 % 0.99 % 1.04 %leases / totalloans andleases Capital Ratios: Common EquityTier 1 Capital 12.22 % 11.86 % 11.88 % 12.15 %RatioTier 1 Capital 12.22 % 11.86 % 11.88 % 12.15 %RatioTotal Capital 13.47 % 13.11 % 12.81 % 13.11 %RatioTier 1 Leverage 7.91 % 7.75 % 8.79 % 8.68 %RatioTotalstockholders' 12.25 % 11.75 % 13.09 % 12.89 %equity to totalassetsTangiblestockholders'equity to 8.16 % 7.76 % 8.58 % 8.46 %tangible assets(non-GAAP) Non-Financial Data:Number of 58 58 58 58 branchesNumber of ATMs 302 295 301 293 Number ofFull-Time 2,099 2,100 2,092 2,099 EquivalentEmployees

Except for the efficiency ratio and the core efficiency ratio, amounts are(1) annualized for the three and nine months ended September30,2020 and 2019 and the three months ended June 30, 2020.

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(2) thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.

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(4) (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders? equity. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.

Consolidated Statements of Income Table 2 For the Three Months Ended For the Nine Months Ended September30, June30, September30, September30,(dollarsinthousands,exceptpershareamounts) 2020 2020 2019 2020 2019 Interest income Loans and lease financing $ 120,940 $ 122,298 $ 144,691 $ 378,209 $ 435,980 Available-for-sale securities 20,317 17,529 22,256 59,056 71,526 Other 670 792 3,234 3,813 9,054 Total interest income 141,927 140,619 170,181 441,078 516,560 Interest expense Deposits 6,227 8,583 22,753 30,410 69,643 Short-term and long-term borrowings 1,698 4,214 4,347 10,161 13,134 Total interest expense 7,925 12,797 27,100 40,571 82,777 Net interest income 134,002 127,822 143,081 400,507 433,783 Provision for credit losses 5,072 55,446 ? 101,718 9,550 Net interest income after provision for credit 128,930 72,376 143,081 298,789 424,233 lossesNoninterest income Service charges on deposit accounts 6,523 5,927 8,554 21,400 24,737 Credit and debit card fees 14,049 10,870 16,839 39,868 50,123 Other service charges and fees 9,021 7,912 8,903 25,472 27,435 Trust and investment services income 8,664 8,664 8,698 26,919 26,247 Bank-owned life insurance 4,903 4,432 5,743 11,595 12,946 Investment securities gains (losses), net 24 (211 ) ? (102 ) (2,592 )Other 5,714 8,062 1,243 18,630 6,929 Total noninterest income 48,898 45,656 49,980 143,782 145,825 Noninterest expense Salaries and employee benefits 44,291 42,414 44,955 131,534 132,000 Contracted services and professional fees 15,073 15,478 14,649 46,606 42,597 Occupancy 6,921 7,302 7,250 21,466 21,522 Equipment 5,137 5,207 4,024 15,052 12,852 Regulatory assessment and fees 2,445 2,100 1,992 6,491 5,588 Advertising and marketing 1,374 1,402 1,647 4,599 5,593 Card rewards program 5,046 5,163 6,930 17,224 21,326 Other 11,342 12,384 12,019 36,573 37,901 Total noninterest expense 91,629 91,450 93,466 279,545 279,379 Income before provision for income taxes 86,199 26,582 99,595 163,026 290,679 Provision for income taxes 21,098 6,533 25,396 39,011 74,123 Net income $ 65,101 $ 20,049 $ 74,199 $ 124,015 $ 216,556 Basic earnings per share $ 0.50 $ 0.15 $ 0.56 $ 0.95 $ 1.62 Diluted earnings per share $ 0.50 $ 0.15 $ 0.56 $ 0.95 $ 1.61 Basic weighted-average outstanding shares 129,896,054 129,856,730 132,583,902 129,882,878 133,957,192 Diluted weighted-average outstanding shares 130,085,534 130,005,195 132,877,769 130,129,690 134,231,762

Consolidated Balance Table 3Sheets September30, June30, December31, September30,(dollarsinthousands) 2020 2020 2019 2019 Assets Cash and due from $ 333,744 $ 347,592 $ 360,375 $ 358,863 banksInterest-bearingdeposits in other 482,585 1,507,630 333,642 985,154 banksInvestment securities,at fair value(amortized cost:$5,584,556 as ofSeptember30,2020,$5,025,433 as of June 5,692,883 5,135,775 4,075,644 4,157,082 30, 2020, $4,080,663as ofDecember31,2019 and$4,143,124 as ofSeptember30,2019)Loans held for sale 34,669 6,698 904 1,594 Loans and leases 13,499,969 13,764,030 13,211,650 12,843,396 Less: allowance for 195,876 192,120 130,530 132,964 credit lossesNet loans and leases 13,304,093 13,571,910 13,081,120 12,710,432 Premises and 321,229 322,919 316,885 315,309 equipment, netOther real estateowned and repossessed ? 446 319 82 personal propertyAccrued interest 66,005 58,420 45,239 44,671 receivableBank-owned life 462,422 458,720 453,873 453,410 insuranceGoodwill 995,492 995,492 995,492 995,492 Mortgage servicing 10,922 11,595 12,668 13,630 rightsOther assets 606,657 576,518 490,573 562,501 Total assets $ 22,310,701 $ 22,993,715 $ 20,166,734 $ 20,598,220 Liabilities and Stockholders' EquityDeposits: Interest-bearing $ 11,989,492 $ 12,481,543 $ 10,564,922 $ 11,136,424 Noninterest-bearing 6,908,270 6,880,091 5,880,072 5,720,822 Total deposits 18,897,762 19,361,634 16,444,994 16,857,246 Short-term borrowings ? 200,000 400,000 400,000 Long-term borrowings 200,010 200,019 200,019 200,018 Retirement benefits 138,806 138,624 138,222 128,442 payableOther liabilities 340,189 391,541 343,241 357,956 Total liabilities 19,576,767 20,291,818 17,526,476 17,943,662 Stockholders' equity Common stock ($0.01par value; authorized300,000,000 shares;issued/outstanding:140,190,428 /129,911,789 shares asof September30,2020,issued/outstanding:140,140,542 /129,866,898 shares as 1,402 1,401 1,399 1,399 of June30,2020,issued/outstanding:139,917,150 /129,928,479 shares asof December31,2019and issued/outstanding:139,908,699 /131,260,900 shares asof September30,2019)Additional paid-in 2,511,849 2,509,271 2,503,677 2,501,324 capitalRetained earnings 446,315 415,296 437,072 403,317 Accumulated othercomprehensive income 51,254 52,731 (31,749 ) (18,774 )(loss), netTreasury stock(10,278,639 shares asof September30,2020,10,273,644 shares asof June30,2020, (276,886 ) (276,802 ) (270,141 ) (232,708 )9,988,671 shares as ofDecember31,2019 and8,647,799 shares as ofSeptember30,2019)Total stockholders' 2,733,934 2,701,897 2,640,258 2,654,558 equityTotal liabilities and $ 22,310,701 $ 22,993,715 $ 20,166,734 $ 20,598,220 stockholders' equity

AverageBalancesandInterestRates Table4 Three Months Ended Three Months Ended Three Months Ended September30,2020 June30,2020 September30,2019 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 $ 889.6 $ 0.2 0.10 % $ 1,436.2 $ 0.4 0.10 % $ 447.8 $ 2.3 2.02 %BanksAvailable-for-Sale Investment 5,334.2 20.3 1.53 4,390.4 17.5 1.60 4,296.3 22.3 2.07 SecuritiesLoans Held for Sale 10.2 0.1 2.67 9.8 0.1 2.93 1.4 ? 2.36 Loans and Leases^(1) Commercial and industrial 3,230.4 21.6 2.67 3,601.0 24.3 2.71 2,885.9 30.0 4.12 Commercial real estate 3,418.0 27.8 3.23 3,438.8 28.3 3.31 3,294.7 37.3 4.49 Construction 637.6 5.2 3.22 584.1 4.9 3.35 477.2 5.6 4.67 Residential: Residential mortgage 3,680.5 37.9 4.12 3,682.7 35.7 3.88 3,644.9 38.6 4.23 Home equity line 871.1 6.6 3.02 885.2 6.8 3.07 912.8 8.6 3.74 Consumer 1,474.4 20.2 5.46 1,526.5 20.6 5.42 1,651.4 23.3 5.61 Lease financing 247.4 1.8 2.90 238.4 1.7 2.88 165.4 1.3 3.14 Total Loans and Leases 13,559.4 121.1 3.56 13,956.7 122.3 3.52 13,032.3 144.7 4.41 Other Earning Assets 53.3 0.5 3.32 61.7 0.4 2.79 84.8 0.9 4.47 Total Earning Assets^(2) 19,846.7 142.2 2.86 19,854.8 140.7 2.84 17,862.6 170.2 3.79 Cash and Due from Banks 307.9 295.1 341.7 Other Assets 2,186.9 2,191.8 2,128.2 Total Assets $ 22,341.5 $ 22,341.7 $ 20,332.5 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 5,768.3 $ 0.6 0.04 % $ 5,501.9 $ 0.9 0.07 % 4,891.5 $ 4.6 0.37 %Money Market 3,288.2 0.4 0.05 3,270.3 1.1 0.13 3,067.4 7.1 0.92 Time 3,029.8 5.2 0.69 3,335.6 6.6 0.79 2,872.6 11.1 1.54 Total Interest-Bearing Deposits 12,086.3 6.2 0.20 12,107.8 8.6 0.29 10,831.5 22.8 0.83 Short-Term Borrowings 45.1 0.3 2.69 395.6 2.8 2.88 370.0 2.6 2.84 Long-Term Borrowings 200.0 1.4 2.77 200.0 1.4 2.77 239.1 1.7 2.82 Total Interest-Bearing Liabilities 12,331.4 7.9 0.26 12,703.4 12.8 0.41 11,440.6 27.1 0.94 Net Interest Income $ 134.3 $ 127.9 $ 143.1 Interest Rate Spread 2.60 % 2.43 % 2.85 %Net Interest Margin 2.70 % 2.58 % 3.19 %Noninterest-Bearing Demand Deposits 6,805.7 6,432.6 5,742.3 Other Liabilities 500.3 507.9 501.2 Stockholders' Equity 2,704.1 2,697.8 2,648.4 Total Liabilities and Stockholders' $ 22,341.5 $ 22,341.7 $ 20,332.5 Equity



Non-performing loans and leases are included in the respective average loan(1) 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 $0.3(2) million, $0.1 million and nil for the three months ended September 30, 2020, June 30, 2020 and September 30, 2019, respectively.

Average Balances Table and Interest Rates 5 Nine Months Ended Nine Months Ended September30,2020 September30,2019 Average Income/ Yield Average Income/ Yield / /(dollars in Balance Expense Rate Balance Expense Rate millions)Earning Assets Interest-BearingDeposits in Other $ 947.3 $ 2.2 0.31 % $ 400.6 $ 6.9 2.31 %BanksAvailable-for-SaleInvestment 4,588.7 59.1 1.72 4,383.6 71.5 2.18 SecuritiesLoans Held for Sale 11.9 0.2 2.31 0.8 ? 2.52 Loans and Leases^ (1)Commercial and 3,202.4 70.5 2.94 3,094.8 97.5 4.21 industrialCommercial real 3,423.9 90.7 3.54 3,129.8 108.1 4.62 estateConstruction 586.9 15.8 3.59 565.2 20.0 4.73 Residential: Residential 3,700.8 111.3 4.01 3,590.2 112.4 4.17 mortgageHome equity line 881.2 21.1 3.20 912.4 25.9 3.79 Consumer 1,537.5 63.9 5.55 1,658.7 68.5 5.52 Lease financing 236.4 5.1 2.90 154.0 3.6 3.15 Total Loans and 13,569.1 378.4 3.72 13,105.1 436.0 4.44 LeasesOther Earning 57.3 1.6 3.78 84.3 2.2 3.37 AssetsTotal Earning 19,174.3 441.5 3.07 17,974.4 516.6 3.84 Assets^(2)Cash and Due from 310.1 348.1 BanksOther Assets 2,183.5 2,082.8 Total Assets $ 21,667.9 $ 20,405.3 Interest-Bearing LiabilitiesInterest-Bearing DepositsSavings $ 5,454.7 $ 4.7 0.12 % $ 4,806.0 $ 12.8 0.35 %Money Market 3,208.1 6.1 0.25 3,125.5 22.1 0.95 Time 2,966.9 19.6 0.88 2,999.0 34.8 1.55 TotalInterest-Bearing 11,629.7 30.4 0.35 10,930.5 69.7 0.85 DepositsShort-Term 279.9 6.0 2.87 145.7 3.0 2.76 BorrowingsLong-Term 200.0 4.2 2.77 476.2 10.1 2.84 BorrowingsTotalInterest-Bearing 12,109.6 40.6 0.45 11,552.4 82.8 0.96 LiabilitiesNet Interest Income $ 400.9 $ 433.8 Interest Rate 2.62 % 2.88 %SpreadNet Interest Margin 2.79 % 3.22 %Noninterest-Bearing 6,365.5 5,769.9 Demand DepositsOther Liabilities 505.2 482.7 Stockholders' 2,687.6 2,600.3 EquityTotal Liabilitiesand Stockholders' $ 21,667.9 $ 20,405.3 Equity

Non-performing loans and leases are included in the respective average loan(1) 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 $0.4(2) million and nil for the nine months ended September 30, 2020 and 2019, respectively.

Analysis of Change in Net Interest Table 6Income Three Months Ended September30,2020 Compared to June 30, 2020(dollars in millions) Volume Rate TotalChange in Interest Income: Interest-Bearing Deposits in Other Banks $ (0.2 ) $ ? $ (0.2 )Available-for-Sale Investment Securities 3.6 (0.8 ) 2.8 Loans and Leases Commercial and industrial (2.3 ) (0.4 ) (2.7 )Commercial real estate (0.1 ) (0.4 ) (0.5 )Construction 0.5 (0.2 ) 0.3 Residential: Residential mortgage ? 2.2 2.2 Home equity line (0.1 ) (0.1 ) (0.2 )Consumer (0.6 ) 0.2 (0.4 )Lease financing 0.1 ? 0.1 Total Loans and Leases (2.5 ) 1.3 (1.2 )Other Earning Assets ? 0.1 0.1 Total Change in Interest Income 0.9 0.6 1.5 Change in Interest Expense: Interest-Bearing Deposits Savings 0.1 (0.4 ) (0.3 )Money Market ? (0.7 ) (0.7 )Time (0.6 ) (0.8 ) (1.4 )Total Interest-Bearing Deposits (0.5 ) (1.9 ) (2.4 )Short-Term Borrowings (2.3 ) (0.2 ) (2.5 )Total Change in Interest Expense (2.8 ) (2.1 ) (4.9 )Change in Net Interest Income $ 3.7 $ 2.7 $ 6.4

Analysis of Change in Net Interest Table 7Income Three Months Ended September30,2020 Compared to September30,2019(dollars in millions) Volume Rate TotalChange in Interest Income: Interest-Bearing Deposits in Other Banks $ 1.1 $ (3.2 ) $ (2.1 )Available-for-Sale Investment Securities 4.6 (6.6 ) (2.0 )Loans Held for Sale 0.1 ? 0.1 Loans and Leases Commercial and industrial 3.2 (11.6 ) (8.4 )Commercial real estate 1.3 (10.8 ) (9.5 )Construction 1.6 (2.0 ) (0.4 )Residential: Residential mortgage 0.4 (1.1 ) (0.7 )Home equity line (0.4 ) (1.6 ) (2.0 )Consumer (2.5 ) (0.6 ) (3.1 )Lease financing 0.6 (0.1 ) 0.5 Total Loans and Leases 4.2 (27.8 ) (23.6 )Other Earning Assets (0.3 ) (0.1 ) (0.4 )Total Change in Interest Income 9.7 (37.7 ) (28.0 ) Change in Interest Expense: Interest-Bearing Deposits Savings 0.7 (4.7 ) (4.0 )Money Market 0.4 (7.1 ) (6.7 )Time 0.6 (6.5 ) (5.9 )Total Interest-Bearing Deposits 1.7 (18.3 ) (16.6 )Short-Term Borrowings (2.2 ) (0.1 ) (2.3 )Long-Term Borrowings (0.3 ) ? (0.3 )Total Change in Interest Expense (0.8 ) (18.4 ) (19.2 )Change in Net Interest Income $ 10.5 $ (19.3 ) $ (8.8 )

Analysis of Change in Net Interest Income Table 8 Nine Months Ended September30,2020 Compared to September30,2019(dollars in millions) Volume Rate TotalChange in Interest Income: Interest-Bearing Deposits in Other Banks $ 4.5 $ (9.2 ) $ (4.7 )Available-for-Sale Investment Securities 3.2 (15.6 ) (12.4 )Loans Held for Sale 0.2 ? 0.2 Loans and Leases Commercial and industrial 3.3 (30.3 ) (27.0 )Commercial real estate 9.5 (26.9 ) (17.4 )Construction 0.8 (5.0 ) (4.2 )Residential: Residential mortgage 3.3 (4.4 ) (1.1 )Home equity line (0.9 ) (3.9 ) (4.8 )Consumer (5.0 ) 0.4 (4.6 )Lease financing 1.8 (0.3 ) 1.5 Total Loans and Leases 12.8 (70.4 ) (57.6 )Other Earning Assets (0.8 ) 0.2 (0.6 )Total Change in Interest Income 19.9 (95.0 ) (75.1 ) Change in Interest Expense: Interest-Bearing Deposits Savings 1.4 (9.5 ) (8.1 )Money Market 0.6 (16.6 ) (16.0 )Time (0.4 ) (14.8 ) (15.2 )Total Interest-Bearing Deposits 1.6 (40.9 ) (39.3 )Short-Term Borrowings 2.9 0.1 3.0 Long-Term Borrowings (5.7 ) (0.2 ) (5.9 )Total Change in Interest Expense (1.2 ) (41.0 ) (42.2 )Change in Net Interest Income $ 21.1 $ (54.0 ) $ (32.9 )

Loans and Table 9Leases September30, June30, December31, September30,(dollars in 2020 2020 2019 2019thousands)Commercialand $ 3,170,262 $ 3,423,708 $ 2,743,242 $ 2,654,077industrialCommercial 3,461,085 3,423,499 3,463,953 3,309,389real estateConstruction 662,871 617,935 519,241 486,977Residential: Residential 3,669,051 3,691,950 3,768,936 3,671,424mortgageHome equity 864,789 876,491 893,239 916,106lineTotal 4,533,840 4,568,441 4,662,175 4,587,530residentialConsumer 1,425,934 1,492,160 1,620,556 1,637,549Lease 245,977 238,287 202,483 167,874financingTotal loans $ 13,499,969 $ 13,764,030 $ 13,211,650 $ 12,843,396and leases

Deposits Table 10 September30, June30, December31, September30,(dollarsin 2020 2020 2019 2019thousands)Demand $ 6,908,270 $ 6,880,091 $ 5,880,072 $ 5,720,822Savings 5,994,687 5,727,367 4,998,933 4,899,468Money 3,379,985 3,247,511 3,055,832 3,529,363MarketTime 2,614,820 3,506,665 2,510,157 2,707,593Total $ 18,897,762 $ 19,361,634 $ 16,444,994 $ 16,857,246Deposits

Non-PerformingAssets andAccruing Loans Table 11and Leases PastDue 90 Days orMore September30, June30, December31, September30,(dollars in 2020 2020 2019 2019thousands)Non-Performing AssetsNon-Accrual Loans and LeasesCommercial Loans: Commercial and $ 725 $ 11,559 $ 32 $ 12industrialCommercial real 7,067 13,168 30 33estateConstruction 2,043 2,043 ? ?Total Commercial 9,835 26,770 62 45LoansResidential Loans:Residential 7,798 6,059 5,406 3,959mortgageTotal Residential 7,798 6,059 5,406 3,959LoansConsumer ? ? ? 200Total Non-Accrual 17,633 32,829 5,468 4,204Loans and LeasesOther Real Estate ? 446 319 82OwnedTotalNon-Performing $ 17,633 $ 33,275 $ 5,787 $ 4,286Assets Accruing Loansand Leases Past Due 90 Days orMoreCommercial Loans: Commercial and $ 1,938 $ 2,309 $ 1,429 $ 750industrialCommercial real 1,307 900 1,013 ?estateConstruction 100 248 2,367 ?Total Commercial 3,345 3,457 4,809 750LoansResidential Loans:Residential ? ? 74 139mortgageHome equity line 4,503 4,496 2,995 3,192Total Residential 4,503 4,496 3,069 3,331LoansConsumer 2,897 2,167 4,272 3,076Total AccruingLoans and Leases $ 10,745 $ 10,120 $ 12,150 $ 7,157Past Due 90 Daysor More RestructuredLoans on AccrualStatus and Not $ 9,726 $ 11,182 $ 14,493 $ 22,350Past Due 90 Daysor MoreTotal Loans and $ 13,499,969 $ 13,764,030 $ 13,211,650 $ 12,843,396Leases

Allowance for Table 12 Credit Losses Forthe Three Months Ended Forthe Nine Months Ended September30, June30, September30, September30, September30, (dollars in 2020 2020 2019 2020 2019 thousands)Balance atBeginning of $ 192,120 $ 166,013 $ 138,535 $ 130,530 $ 141,718 PeriodAdjustment toAdopt ASC ? ? ? 770 ? Topic 326AfterAdoption of 192,120 166,013 138,535 131,300 141,718 ASC Topic 326Loans andLeases Charged-OffCommercial Loans:Commercialand (598 ) (13,974 ) (514 ) (14,773 ) (2,514 ) industrialCommercial ? (2,723 ) ? (2,723 ) ? real estateConstruction ? (379 ) ? (379 ) ? Lease ? ? ? ? (24 ) financingTotalCommercial (598 ) (17,076 ) (514 ) (17,875 ) (2,538 ) LoansResidential Loans:Residential ? (14 ) (7 ) (14 ) (7 ) mortgageHome equity ? ? ? (8 ) ? lineTotalResidential ? (14 ) (7 ) (22 ) (7 ) LoansConsumer (4,238 ) (8,907 ) (8,015 ) (21,742 ) (24,118 ) Total Loansand Leases (4,836 ) (25,997 ) (8,536 ) (39,639 ) (26,663 ) Charged-OffRecoveries onLoans andLeases PreviouslyCharged-OffCommercial Loans:Commercialand 1,699 100 241 2,019 303 industrialCommercial ? ? 30 ? 93 real estateConstruction 30 30 ? 170 ? TotalCommercial 1,729 130 271 2,189 396 LoansResidential Loans:Residential 27 17 368 179 704 mortgageHome equity 16 8 57 146 156 lineTotalResidential 43 25 425 325 860 LoansConsumer 3,148 2,456 2,269 7,687 7,103 TotalRecoveries onLoans and 4,920 2,611 2,965 10,201 8,359 LeasesPreviouslyCharged-OffNet Loans andLeases 84 (23,386 ) (5,571 ) (29,438 ) (18,304 ) Recovered(Charged-Off)Provision forCredit Losses 3,672 49,493 ? 94,014 9,550 - Loans andLeasesBalance at $ 195,876 $ 192,120 $ 132,964 $ 195,876 $ 132,964 End of PeriodAverage Loansand Leases $ 13,559,367 $ 13,956,669 $ 13,032,349 $ 13,569,119 $ 13,105,086 OutstandingRatio of NetLoans andLeasesCharged-Offto Average - % 0.67 % 0.17 % 0.29 % 0.19 %Loans andLeasesOutstanding^(1)Ratio ofAllowance forCredit Lossesfor Loans and 1.45 % 1.40 % 1.04 % 1.45 % 1.04 %Leases toLoans andLeasesOutstanding



(1) Annualized for the three and nine months ended September 30, 2020 and 2019 and three months ended June 30, 2020.

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 2020 2019 2018 2017 2016 Prior Cost Basis Cost Totalthousands) BasisCommercial Lending Commercial and IndustrialRisk rating: Pass $ 999,763 $ 330,209 $ 202,595 $ 76,154 $ 52,391 $ 92,446 $ 1,033,278 $ 26,148 $ 2,812,984Special Mention 25,677 7,786 33,794 2,354 306 791 105,339 452 176,499Substandard 23,836 2,172 2,611 1,395 4,265 9,375 37,883 283 81,820Doubtful ? ? ? ? ? 195 ? ? 195Other ^(1) 12,084 15,053 10,998 6,439 2,454 492 51,244 ? 98,764Total Commercial and 1,061,360 355,220 249,998 86,342 59,416 103,299 1,227,744 26,883 3,170,262Industrial Commercial Real EstateRisk rating: Pass 289,941 625,894 544,367 447,473 305,557 880,689 36,258 2 3,130,181Special Mention 1,487 94,217 30,760 39,438 31,211 58,911 2,999 ? 259,023Substandard ? 10,882 14,594 6,972 10,685 19,240 9,006 ? 71,379Other ^(1) ? ? ? ? ? 502 ? ? 502Total Commercial 291,428 730,993 589,721 493,883 347,453 959,342 48,263 2 3,461,085Real Estate Construction Risk rating: Pass 32,810 182,503 187,257 91,415 24,053 42,269 26,133 ? 586,440Special Mention ? 515 1,647 4,749 ? 9,172 ? ? 16,083Substandard ? ? 538 1,840 525 1,043 ? ? 3,946Other ^(1) 13,349 23,382 8,804 4,264 1,796 4,222 585 ? 56,402Total Construction 46,159 206,400 198,246 102,268 26,374 56,706 26,718 ? 662,871 Lease Financing Risk rating: Pass 68,770 66,472 15,044 18,063 4,110 63,537 ? ? 235,996Special Mention ? 940 158 1,376 424 643 ? ? 3,541Substandard 2,703 1,680 359 1,174 ? 524 ? ? 6,440Total Lease 71,473 69,092 15,561 20,613 4,534 64,704 ? ? 245,977Financing Total Commercial $ 1,470,420 $ 1,361,705 $ 1,053,526 $ 703,106 $ 437,777 $ 1,184,051 $ 1,302,725 $ 26,885 $ 7,540,195Lending

Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in 2020 2019 2018 2017 2016 Prior Cost Basis Cost Totalthousands) BasisResidential Lending Residential Mortgage FICO: 740 and greater $ 457,209 $ 410,369 $ 319,988 $ 390,552 $ 341,709 $ 919,509 $ ? $ ? $ 2,839,336680 - 739 71,240 54,497 55,179 59,237 44,911 162,726 ? ? 447,790620 - 679 12,653 11,595 9,753 8,559 8,942 48,554 ? ? 100,056550 - 619 1,946 2,316 3,923 5,423 4,506 13,256 ? ? 31,370Less than 550 ? ? 534 2,153 953 3,480 ? ? 7,120No Score ^(3) 14,827 19,364 22,222 22,616 14,954 49,251 ? ? 143,234Other ^(2) 16,598 17,402 17,874 22,807 11,060 13,653 579 172 100,145Total Residential 574,473 515,543 429,473 511,347 427,035 1,210,429 579 172 3,669,051Mortgage Home Equity Line FICO: 740 and greater ? ? ? ? ? ? 617,973 5,600 623,573680 - 739 ? ? ? ? ? ? 163,305 3,799 167,104620 - 679 ? ? ? ? ? ? 47,448 1,295 48,743550 - 619 ? ? ? ? ? ? 13,210 1,464 14,674Less than 550 ? ? ? ? ? ? 4,750 613 5,363No Score ^(3) ? ? ? ? ? ? 5,332 ? 5,332Total Home Equity ? ? ? ? ? ? 852,018 12,771 864,789LineTotal Residential 574,473 515,543 429,473 511,347 427,035 1,210,429 852,597 12,943 4,533,840Lending Consumer Lending FICO: 740 and greater 102,091 127,590 106,359 61,204 28,613 8,443 105,905 ? 540,205680 - 739 67,228 100,723 77,874 42,470 20,280 7,302 77,445 ? 393,322620 - 679 29,733 60,484 39,213 27,825 13,701 5,148 39,748 ? 215,852550 - 619 5,927 24,376 21,050 18,784 9,388 4,134 16,484 ? 100,143Less than 550 1,558 11,200 11,967 9,579 4,671 1,969 6,590 ? 47,534No Score ^(3) 3,998 120 105 115 23 ? 33,654 ? 38,015Other ^(2) 886 9,144 89 2,219 47 6,787 71,691 ? 90,863Total Consumer 211,421 333,637 256,657 162,196 76,723 33,783 351,517 ? 1,425,934Lending Total Loans and $ 2,256,314 $ 2,210,885 $ 1,739,656 $ 1,376,649 $ 941,535 $ 2,428,263 $ 2,506,839 $ 39,828 $ 13,499,969Leases



Other credit quality indicators used for monitoring purposes are primarily(1) 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(2) 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(3) non-residents. Loans and leases of this nature are primarily secured by 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) 2020 2020 2019 2020 2019 Income Statement Data: Net income $ 65,101 $ 20,049 $ 74,199 $ 124,015 $ 216,556 Core net income $ 65,083 $ 20,204 $ 75,871 $ 124,090 $ 220,535 Average total stockholders' equity $ 2,704,129 $ 2,697,775 $ 2,648,428 $ 2,687,632 $ 2,600,259 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible stockholders' equity $ 1,708,637 $ 1,702,283 $ 1,652,936 $ 1,692,140 $ 1,604,767 Average total assets $ 22,341,485 $ 22,341,654 $ 20,332,457 $ 21,667,948 $ 20,405,261 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible assets $ 21,345,993 $ 21,346,162 $ 19,336,965 $ 20,672,456 $ 19,409,769 Return on average total stockholders' equity^(1) 9.58 % 2.99 % 11.12 % 6.16 % 11.13 %Core return on average total stockholders' equity 9.57 % 3.01 % 11.37 % 6.17 % 11.34 %(non-GAAP)^(1)Return on average tangible stockholders' equity 15.16 % 4.74 % 17.81 % 9.79 % 18.04 %(non-GAAP)^(1)Core return on average tangible stockholders' equity 15.15 % 4.77 % 18.21 % 9.80 % 18.37 %(non-GAAP)^(1) Return on average total assets^(1) 1.16 % 0.36 % 1.45 % 0.76 % 1.42 %Core return on average total assets (non-GAAP)^(1) 1.16 % 0.36 % 1.48 % 0.76 % 1.44 %Return on average tangible assets (non-GAAP)^(1) 1.21 % 0.38 % 1.52 % 0.80 % 1.49 %Core return on average tangible assets (non-GAAP)^(1) 1.21 % 0.38 % 1.56 % 0.80 % 1.52 %

Asof Asof Asof Asof September30, June30, December31, September30, 2020 2020 2019 2019 Balance Sheet Data:Totalstockholders' $ 2,733,934 $ 2,701,897 $ 2,640,258 $ 2,654,558 equityLess: 995,492 995,492 995,492 995,492 goodwillTangiblestockholders' $ 1,738,442 $ 1,706,405 $ 1,644,766 $ 1,659,066 equity Total assets $ 22,310,701 $ 22,993,715 $ 20,166,734 $ 20,598,220 Less: 995,492 995,492 995,492 995,492 goodwillTangible $ 21,315,209 $ 21,998,223 $ 19,171,242 $ 19,602,728 assets Shares 129,911,789 129,866,898 129,928,479 131,260,900 outstanding Totalstockholders' 12.25 % 11.75 % 13.09 % 12.89 %equity tototal assetsTangiblestockholders'equity to 8.16 % 7.76 % 8.58 % 8.46 %tangibleassets(non-GAAP) Book value $ 21.04 $ 20.81 $ 20.32 $ 20.22 per shareTangible bookvalue per $ 13.38 $ 13.14 $ 12.66 $ 12.64 share(non-GAAP)

(1) Annualized for the three and nine months ended September 30, 2020 and 2019 and three months ended June 30, 2020.

GAAPtoNon-GAAPReconciliation Table 15 For the Three Months Ended Forthe Nine Months Ended September30, June30, September30, September30, (dollarsinthousands, except per 2020 2020 2019 2020 2019 share amounts)Net interest income $ 134,002 $ 127,822 $ 143,081 $ 400,507 $ 433,783 Core net interest income (non-GAAP) $ 134,002 $ 127,822 $ 143,081 $ 400,507 $ 433,783 Noninterest income $ 48,898 $ 45,656 $ 49,980 $ 143,782 $ 145,825 (Gains) losses on sale of (24 ) 211 ? 102 2,592 securitiesCore noninterest income (non-GAAP) $ 48,874 $ 45,867 $ 49,980 $ 143,884 $ 148,417 Noninterest expense $ 91,629 $ 91,450 $ 93,466 $ 279,545 $ 279,379 One-time items^(1) ? ? (2,244 ) ? (2,766 ) Core noninterest expense (non-GAAP) $ 91,629 $ 91,450 $ 91,222 $ 279,545 $ 276,613 Net income $ 65,101 $ 20,049 $ 74,199 $ 124,015 $ 216,556 (Gains) losses on sale of (24 ) 211 ? 102 2,592 securitiesOne-time noninterest expense items^ ? ? 2,244 ? 2,766 (1)Tax adjustments^(2) 6 (56 ) (572 ) (27 ) (1,379 ) Total core adjustments (18 ) 155 1,672 75 3,979 Core net income (non-GAAP) $ 65,083 $ 20,204 $ 75,871 $ 124,090 $ 220,535 Basic earnings per share $ 0.50 $ 0.15 $ 0.56 $ 0.95 $ 1.62 Diluted earnings per share $ 0.50 $ 0.15 $ 0.56 $ 0.95 $ 1.61 Efficiency ratio 50.01 % 52.70 % 48.41 % 51.32 % 48.20 % Core basic earnings per share $ 0.50 $ 0.16 $ 0.57 $ 0.96 $ 1.65 (non-GAAP)Core diluted earnings per share $ 0.50 $ 0.16 $ 0.57 $ 0.95 $ 1.64 (non-GAAP)Core efficiency ratio (non-GAAP) 50.02 % 52.64 % 47.25 % 51.31 % 47.51 %

One-time items for the three and nine months ended September 30, 2019 included costs related to a nonrecurring payment for a former executive of(1) the Company pursuant to the Bank?s Executive Change-in-Control Retention Plan, nonrecurring offering costs and the loss on our funding swap as a result of a 2019 decrease in the conversion rate of our Visa Class B restricted shares sold in 2016. (2) Represents the adjustments to net income, tax effected at the Company?s effective tax rate for the respective period.