GlobeNewswire Inc | Jul 24, 2020 08:00AM EDT

July 24, 2020

HONOLULU, July 24, 2020 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (First Hawaiian or the Company) today reported financial results for its quarter ended June 30, 2020.

I am very proud of our teams extraordinary efforts to manage through the pandemics disruption with agility and resilience while ensuring the health and safety of their co-workers, customers and community, said Bob Harrison, Chairman, President and CEO. During this difficult time for our local economy, we focused our efforts on creating stability by offeringrelief assistance to customers and support to the community. Our teams leveraged technology investments to develop an online application portal that enabled us to secure over $940 million in PPP loans for 6,000 small business customers. We also successfully launched the Aloha for Hawaii Fund, which supported the restaurant industry, and donated $1 million to non-profits for COVID-19 relief. Another $1 million was donated to the Stronger Together Fund to support the 2020 public high school graduates as they transition to the next phase of their lives.

On July 22, 2020 the Companys Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on September 4, 2020 to stockholders of record at the close of business on August 24, 2020.

Second Quarter 2020 Highlights:

-- Net income of $20.0 million, or $0.15 per diluted share -- Total Loans and Leases increased $383.8 million, or 2.9%, versus prior quarter -- Deposits balances increased $2.3 billion, or 13.8% versus the prior quarter -- Net interest margin (NIM) was 2.58% -- Recorded a $55.4 million provision for credit losses -- Board of Directors declared a quarterly dividend of $0.26 per share

Balance SheetTotal assets were $23.0 billion as of June 30, 2020, compared to $20.8 billion as of March 31, 2020.

Gross loans and leases were $13.8 billion as of June 30, 2020, an increase of $383.8 million, or 2.9%, from $13.4 billion as of March 31, 2020. Loan growth was driven by Paycheck Protection Program (PPP) loans, partially offset by declines in other commercial loans, including shared national credits (SNCs) and dealer flooring loans.

Total deposits were $19.4 billion as of June 30, 2020, an increase of $2.3 billion, or 13.8%, from $17.0 billion as of March 31, 2020. The increase in deposit balances was due to growth in consumer and commercial deposits, which included a portion of PPP loan proceeds, and an increase in public deposits.

Net Interest IncomeNet interest income for the second quarter of 2020 was $127.8 million, a decrease of $10.9 million, or 7.8%, compared to $138.7 million for the prior quarter.

The NIM was 2.58% in the second quarter of 2020, a decrease of 54 basis points compared to 3.12% in the first quarter of 2020. The decline in NIM was due to lower interest rates and excess liquidity.

Provision ExpenseDuring the quarter ended June 30, 2020, the Bank recorded a total provision for credit losses of $55.4 million. In the quarter ended March 31, 2020, the total provision for credit losses was $41.2 million. The provision expense recorded in the first and second quarters was due to expectations for increased credit losses as a result of COVID-19 and its impact on Hawaiis economy.

Noninterest IncomeNoninterest income was $45.7 million in the second quarter of 2020, a decrease of $3.6 million compared to noninterest income of $49.2 million in the first quarter of 2020.

Noninterest ExpenseNoninterest expense was $91.5 million in the second quarter of 2020, a decrease of $5.0 million from $96.5 million in the first quarter of 2020.

The efficiency ratio was 52.7% and 51.3% for the quarters ended June 30, 2020 and March 31, 2020, respectively.

TaxesThe effective tax rate was 24.6% for the quarter ended June 30, 2020 and 22.6% for the quarter ended March 31, 2020.

Asset QualityThe allowance for credit losses was $192.1 million, or 1.40% of total loans and leases, as of June 30, 2020, compared to $166.0 million, or 1.24% of total loans and leases, as of March 31, 2020. The reserve for unfunded commitments was $23.2 million as of June 30, 2020 compared to $17.3 million as of March 31, 2020. Net charge-offs were $23.4 million, or 0.67% of average loans and leases on an annualized basis for the quarter ended June 30, 2020, compared to $6.1 million, or 0.19% of average loans and leases on an annualized basis for the quarter ended March 31, 2020. Total non-performing assets were $33.3 million, or 0.24% of total loans and leases and other real estate owned, at June 30, 2020, compared to non-performing assets of $7.2 million, or 0.05% of total loans and leases and other real estate owned, at March 31, 2020.

CapitalTotal stockholders equity was $2.7 billion at both June 30 and March 31, 2020.

The tier 1 leverage, common equity tier 1 and total capital ratios were 7.75%, 11.86% and 13.11%, respectively, at June 30, 2020, compared with 8.63%, 11.65% and 12.90%, respectively, at March 31, 2020.

The Company suspended its stock repurchase program during the first quarter and did not repurchase any shares of common stock in the second 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 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: 4496063 A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location. A telephonic replay of the conference call will be available two hours after the conclusion of the call until 4:30 p.m. (Eastern Time) on July 31, 2020. Access the replay by dialing (855) 859-2056 or (404) 537-3406 and entering the conference ID: 4496063

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 Report on Form 10-Q for the quarter ended March 31, 2020.

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 Six Months Ended June30, March31, June30, June30, (dollarsinthousands,exceptpersharedata) 2020 2020 2019 2020 2019 Operating Results: Net interest income $ 127,822 $ 138,683 $ 145,613 $ 266,505 $ 290,702 Provision for credit losses 55,446 41,200 3,870 96,646 9,550 Noninterest income 45,656 49,228 48,773 94,884 95,845 Noninterest expense 91,450 96,466 93,290 187,916 185,913 Net income 20,049 38,865 72,433 58,914 142,357 Basic earnings per share 0.15 0.30 0.54 0.45 1.06 Diluted earnings per share 0.15 0.30 0.54 0.45 1.06 Dividends declared per share 0.26 0.26 0.26 0.52 0.52 Dividend payout ratio 173.33 % 86.67 % 48.15 % 115.56 % 49.06 %Supplemental Income Statement Data (non-GAAP):Core net interest income $ 127,822 $ 138,683 $ 145,613 $ 266,505 $ 290,702 Core noninterest income 45,867 49,143 48,752 95,010 98,437 Core noninterest expense 91,450 96,466 93,029 187,916 185,391 Core net income 20,204 38,803 72,612 59,007 144,664 Core basic earnings per share 0.16 0.30 0.54 0.45 1.07 Core diluted earnings per share 0.16 0.30 0.54 0.45 1.07 Performance Ratio^(1): Net interest margin 2.58 % 3.12 % 3.25 % 2.84 % 3.24 %Core net interest margin (non-GAAP) 2.58 % 3.12 % 3.25 % 2.84 % 3.24 %Efficiency ratio 52.70 % 51.33 % 47.99 % 51.99 % 48.09 %Core efficiency ratio (non-GAAP) 52.64 % 51.35 % 47.86 % 51.97 % 47.64 %Return on average total assets 0.36 % 0.77 % 1.42 % 0.56 % 1.40 %Core return on average total assets 0.36 % 0.77 % 1.43 % 0.56 % 1.43 %(non-GAAP)Return on average tangible assets (non-GAAP) 0.38 % 0.81 % 1.50 % 0.58 % 1.48 %Core return on average tangible assets 0.38 % 0.81 % 1.50 % 0.58 % 1.50 %(non-GAAP)^(2)Return on average total stockholders' equity 2.99 % 5.87 % 11.13 % 4.42 % 11.15 %Core return on average total stockholders' 3.01 % 5.87 % 11.16 % 4.43 % 11.33 %equity (non-GAAP)Return on average tangible stockholders' 4.74 % 9.39 % 17.99 % 7.04 % 18.17 %equity (non-GAAP)Core return on average tangible stockholders? 4.77 % 9.37 % 18.03 % 7.05 % 18.46 %equity (non-GAAP)^(3)Average Balances: Average loans and leases $ 13,956,669 $ 13,191,426 $ 13,209,655 $ 13,574,048 $ 13,142,057 Average earning assets 19,854,795 17,814,189 17,971,615 18,834,492 18,031,189 Average assets 22,341,654 20,313,304 20,390,273 21,327,479 20,442,266 Average deposits 18,540,394 16,543,305 16,664,837 17,541,849 16,764,700 Average stockholders' equity 2,697,775 2,660,811 2,610,565 2,679,293 2,575,775 Market Value Per Share: Closing 17.24 16.53 25.87 17.24 25.87 High 21.50 31.25 28.20 31.25 28.20 Low 13.56 15.42 24.83 13.56 22.13

Asof Asof Asof Asof June30, March31, December31, June30, 2020 2020 2019 2019 Balance Sheet Data:Loans and $ 13,764,030 $ 13,380,270 $ 13,211,650 $ 13,264,609 leasesTotal assets 22,993,715 20,755,891 20,166,734 20,526,367 Total 19,361,634 17,020,002 16,444,994 16,792,078 depositsShort-term 200,000 400,000 400,000 200,000 borrowingsLong-term 200,019 200,019 200,019 400,028 borrowingsTotalstockholders' 2,701,897 2,664,685 2,640,258 2,659,441 equity Per Share of Common Stock:Book value $ 20.81 $ 20.52 $ 20.32 $ 19.92 Tangible bookvalue 13.14 12.86 12.66 12.46 (non-GAAP)^(4) Asset Quality Ratios:Non-accrualloans andleases / 0.24 % 0.05 % 0.04 % 0.03 %total loansand leasesAllowance forcredit lossesfor loans and 1.40 % 1.24 % 0.99 % 1.04 %leases /total loansand leases Capital Ratios:Common EquityTier 1 11.86 % 11.65 % 11.88 % 11.84 %Capital RatioTier 1 11.86 % 11.65 % 11.88 % 11.84 %Capital RatioTotal Capital 13.11 % 12.90 % 12.81 % 12.81 %RatioTier 1Leverage 7.75 % 8.63 % 8.79 % 8.75 %RatioTotalstockholders' 11.75 % 12.84 % 13.09 % 12.96 %equity tototal assetsTangiblestockholders'equity to 7.76 % 8.45 % 8.58 % 8.52 %tangibleassets(non-GAAP) Non-Financial Data:Number of 58 58 58 59 branchesNumber of 295 304 301 292 ATMsNumber ofFull-Time 2,100 2,103 2,092 2,123 EquivalentEmployees

(1) Except for the efficiency ratio and the core efficiency ratio, amounts are annualized for the three and six months ended June30,2020 and 2019 and the three months ended March 31, 2020.

(2) Core return on average tangible assets is a non-GAAP financial measure. We compute our core return on average tangible assets as the ratio of core net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.

(3) Core return on average tangible stockholders equity is a non-GAAP financial measure. We compute our core return on average tangible stockholders equity as the ratio of core net income to average tangible stockholders equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders equity. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.

(4)Tangible book value is a non-GAAP financial measure. We compute our tangible book value as the ratio of tangible stockholders equity to shares outstanding. Tangible stockholders equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders equity. For a reconciliation to the most directly comparable GAAP financial measure for core net income, see Table 14, GAAP to Non-GAAP Reconciliation.

Consolidated Statements of Income Table 2 For the Three Months Ended For the Six Months Ended June30, March31, June30, June30,(dollarsinthousands,exceptpershareamounts) 2020 2020 2019 2020 2019Interest income Loans and lease financing $ 122,298 $ 134,971 $ 146,883 $ 257,269 $ 291,289 Available-for-sale securities 17,529 21,210 24,784 38,739 49,270 Other 792 2,351 2,151 3,143 5,820 Total interest income 140,619 158,532 173,818 299,151 346,379 Interest expense Deposits 8,583 15,600 23,693 24,183 46,890 Short-term and long-term borrowings 4,214 4,249 4,512 8,463 8,787 Total interest expense 12,797 19,849 28,205 32,646 55,677 Net interest income 127,822 138,683 145,613 266,505 290,702 Provision for credit losses 55,446 41,200 3,870 96,646 9,550 Net interest income after provision for credit losses 72,376 97,483 141,743 169,859 281,152 Noninterest income Service charges on deposit accounts 5,927 8,950 8,123 14,877 16,183 Credit and debit card fees 10,870 14,949 16,629 25,819 33,284 Other service charges and fees 7,912 8,539 9,403 16,451 18,532 Trust and investment services income 8,664 9,591 8,931 18,255 17,549 Bank-owned life insurance 4,432 2,260 3,390 6,692 7,203 Investment securities (losses) gains, net (211 ) 85 21 (126 ) (2,592 )Other 8,062 4,854 2,276 12,916 5,686 Total noninterest income 45,656 49,228 48,773 94,884 95,845 Noninterest expense Salaries and employee benefits 42,414 44,829 42,185 87,243 87,045 Contracted services and professional fees 15,478 16,055 14,303 31,533 27,948 Occupancy 7,302 7,243 7,286 14,545 14,272 Equipment 5,207 4,708 4,544 9,915 8,828 Regulatory assessment and fees 2,100 1,946 2,149 4,046 3,596 Advertising and marketing 1,402 1,823 1,980 3,225 3,946 Card rewards program 5,163 7,015 7,664 12,178 14,396 Other 12,384 12,847 13,179 25,231 25,882 Total noninterest expense 91,450 96,466 93,290 187,916 185,913 Income before provision for income taxes 26,582 50,245 97,226 76,827 191,084 Provision for income taxes 6,533 11,380 24,793 17,913 48,727 Net income $ 20,049 $ 38,865 $ 72,433 $ 58,914 $ 142,357 Basic earnings per share $ 0.15 $ 0.30 $ 0.54 $ 0.45 $ 1.06 Diluted earnings per share $ 0.15 $ 0.30 $ 0.54 $ 0.45 $ 1.06 Basic weighted-average outstanding shares 129,856,730 129,895,706 134,420,380 129,876,218 134,655,217 Diluted weighted-average outstanding shares 130,005,195 130,351,585 134,652,008 130,163,722 134,924,331

Consolidated Balance Table 3Sheets June30, March31, December31, June30,(dollarsinthousands) 2020 2020 2019 2019Assets Cash and due from $ 347,592 $ 353,908 $ 360,375 $ 423,802 banksInterest-bearingdeposits in other 1,507,630 698,924 333,642 259,713 banksInvestment securities,at fair value(amortized cost:$5,025,433 as ofJune30,2020,$4,014,397 as of March 5,135,775 4,058,457 4,075,644 4,395,476 31, 2020, $4,080,663as ofDecember31,2019 and$4,399,597 as ofJune30,2019)Loans held for sale 6,698 8,180 904 215 Loans and leases 13,764,030 13,380,270 13,211,650 13,264,609 Less: allowance for 192,120 166,013 130,530 138,535 credit lossesNet loans and leases 13,571,910 13,214,257 13,081,120 13,126,074 Premises and 322,919 321,254 316,885 313,200 equipment, netOther real estateowned and repossessed 446 238 319 ? personal propertyAccrued interest 58,420 43,552 45,239 49,205 receivableBank-owned life 458,720 455,226 453,873 450,722 insuranceGoodwill 995,492 995,492 995,492 995,492 Mortgage servicing 11,595 11,979 12,668 14,573 rightsOther assets 576,518 594,424 490,573 497,895 Total assets $ 22,993,715 $ 20,755,891 $ 20,166,734 $ 20,526,367 Liabilities and Stockholders' EquityDeposits: Interest-bearing $ 12,481,543 $ 11,274,463 $ 10,564,922 $ 11,028,921 Noninterest-bearing 6,880,091 5,745,539 5,880,072 5,763,157 Total deposits 19,361,634 17,020,002 16,444,994 16,792,078 Short-term borrowings 200,000 400,000 400,000 200,000 Long-term borrowings 200,019 200,019 200,019 400,028 Retirement benefits 138,624 138,396 138,222 128,610 payableOther liabilities 391,541 332,789 343,241 346,210 Total liabilities 20,291,818 18,091,206 17,526,476 17,866,926 Stockholders' equity Common stock ($0.01par value; authorized300,000,000 shares;issued/outstanding:140,140,542 /129,866,898 shares asof June30,2020,issued/outstanding:140,092,172 /129,827,968 shares as 1,401 1,401 1,399 1,399 of March31,2020,issued/outstanding:139,917,150 /129,928,479 shares asof December31,2019and issued/outstanding:139,857,673 /133,508,212 shares asof June30,2019)Additional paid-in 2,509,271 2,506,477 2,503,677 2,499,946 capitalRetained earnings 415,296 429,323 437,072 363,748 Accumulated othercomprehensive income 52,731 4,129 (31,749 ) (31,984 )(loss), netTreasury stock(10,273,644 shares asof June30,2020,10,264,204 shares asof March31,2020, (276,802 ) (276,645 ) (270,141 ) (173,668 )9,988,671 shares as ofDecember31,2019 and6,349,461 shares as ofJune30,2019)Total stockholders' 2,701,897 2,664,685 2,640,258 2,659,441 equityTotal liabilities and $ 22,993,715 $ 20,755,891 $ 20,166,734 $ 20,526,367 stockholders' equity

AverageBalancesandInterestRates Table 4 Three Months Ended Three Months Ended Three Months Ended June30,2020 March31,2020 June30,2019 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 $ 1,436.2 $ 0.4 0.10 % $ 516.8 $ 1.6 1.25 % $ 247.2 $ 1.4 2.35 %BanksAvailable-for-Sale Investment 4,390.4 17.5 1.60 4,033.2 21.2 2.10 4,438.1 24.8 2.23 SecuritiesLoans Held for Sale 9.8 0.1 2.93 15.8 0.1 1.70 0.7 ? 2.76 Loans and Leases^(1) Commercial and industrial 3,601.0 24.3 2.71 2,776.2 24.6 3.56 3,235.0 34.3 4.26 Commercial real estate 3,438.8 28.3 3.31 3,433.2 34.6 4.05 3,094.4 36.0 4.67 Construction 584.1 4.9 3.35 538.5 5.7 4.27 583.6 6.9 4.73 Residential: Residential mortgage 3,682.7 35.7 3.88 3,721.2 37.7 4.05 3,581.2 37.2 4.16 Home equity line 885.2 6.8 3.07 887.4 7.7 3.50 908.5 8.6 3.79 Consumer 1,526.5 20.6 5.42 1,611.7 23.0 5.75 1,657.7 22.7 5.48 Lease financing 238.4 1.7 2.88 223.2 1.6 2.85 149.3 1.2 3.31 Total Loans and Leases 13,956.7 122.3 3.52 13,191.4 134.9 4.11 13,209.7 146.9 4.46 Other Earning Assets 61.7 0.4 2.79 57.0 0.7 5.30 76.0 0.7 3.71 Total Earning Assets^(2) 19,854.8 140.7 2.84 17,814.2 158.5 3.57 17,971.7 173.8 3.88 Cash and Due from Banks 295.1 327.4 342.6 Other Assets 2,191.8 2,171.7 2,076.0 Total Assets $ 22,341.7 $ 20,313.3 $ 20,390.3 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 5,501.9 $ 0.9 0.07 % $ 5,090.4 $ 3.3 0.26 % 4,712.2 $ 4.0 0.34 %Money Market 3,270.3 1.1 0.13 3,064.8 4.6 0.61 3,126.7 7.4 0.95 Time 3,335.6 6.6 0.79 2,534.7 7.7 1.23 3,084.6 12.3 1.60 Total Interest-Bearing Deposits 12,107.8 8.6 0.29 10,689.9 15.6 0.59 10,923.5 23.7 0.87 Short-Term Borrowings 395.6 2.8 2.88 401.7 2.8 2.88 50.4 0.3 2.25 Long-Term Borrowings 200.0 1.4 2.77 200.0 1.4 2.77 593.5 4.2 2.86 Total Interest-Bearing Liabilities 12,703.4 12.8 0.41 11,291.6 19.8 0.71 11,567.4 28.2 0.98 Net Interest Income $ 127.9 $ 138.7 $ 145.6 Interest Rate Spread 2.43 % 2.86 % 2.90 %Net Interest Margin 2.58 % 3.12 % 3.25 %Noninterest-Bearing Demand Deposits 6,432.6 5,853.4 5,741.3 Other Liabilities 507.9 507.5 471.0 Stockholders' Equity 2,697.8 2,660.8 2,610.6 Total Liabilities and Stockholders' $ 22,341.7 $ 20,313.3 $ 20,390.3 Equity

(1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

(2) Interest income includes taxable-equivalent basis adjustments of $0.1 million, nil and nil for the three months ended June 30, 2020, March 31, 2020 and June 30, 2019, respectively.

Average Balances Table 5and Interest Rates Six Months Ended Six Months Ended June30,2020 June30,2019 Average Income/ Yield Average Income/ Yield / /(dollars in Balance Expense Rate Balance Expense Rate millions)Earning Assets Interest-BearingDeposits in Other $ 976.5 $ 2.0 0.40 % $ 376.5 $ 4.6 2.49 %BanksAvailable-for-SaleInvestment 4,211.8 38.7 1.84 4,428.0 49.3 2.23 SecuritiesLoans Held for Sale 12.8 0.1 2.17 0.5 ? 2.76 Loans and Leases^ (1)Commercial and 3,188.4 48.9 3.08 3,200.9 67.5 4.25 industrialCommercial real 3,426.3 62.9 3.69 3,044.9 70.7 4.68 estateConstruction 561.5 10.6 3.79 610.2 14.4 4.75 Residential: Residential 3,711.5 73.4 3.95 3,563.2 73.9 4.14 mortgageHome equity line 886.3 14.5 3.28 912.1 17.3 3.82 Consumer 1,569.2 43.6 5.59 1,662.5 45.2 5.48 Lease financing 230.8 3.3 2.90 148.3 2.3 3.15 Total Loans and 13,574.0 257.2 3.80 13,142.1 291.3 4.46 LeasesOther Earning 59.4 1.2 3.99 84.1 1.2 2.81 AssetsTotal Earning 18,834.5 299.2 3.19 18,031.2 346.4 3.86 Assets^(2)Cash and Due from 311.2 351.4 BanksOther Assets 2,181.8 2,059.7 Total Assets $ 21,327.5 $ 20,442.3 Interest-Bearing LiabilitiesInterest-Bearing DepositsSavings $ 5,296.1 $ 4.2 0.16 % $ 4,762.6 $ 8.2 0.35 %Money Market 3,167.6 5.7 0.36 3,155.0 15.0 0.96 Time 2,935.1 14.3 0.98 3,063.3 23.7 1.56 TotalInterest-Bearing 11,398.8 24.2 0.43 10,980.9 46.9 0.86 DepositsShort-Term 398.6 5.7 2.88 31.7 0.4 2.29 BorrowingsLong-Term 200.0 2.7 2.77 596.7 8.4 2.85 BorrowingsTotalInterest-Bearing 11,997.4 32.6 0.55 11,609.3 55.7 0.97 LiabilitiesNet Interest Income $ 266.6 $ 290.7 Interest Rate 2.64 % 2.89 %SpreadNet Interest Margin 2.84 % 3.24 %Noninterest-Bearing 6,143.0 5,783.8 Demand DepositsOther Liabilities 507.8 473.4 Stockholders' 2,679.3 2,575.8 EquityTotal Liabilitiesand Stockholders' $ 21,327.5 $ 20,442.3 Equity

(1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

(2) Interest income includes taxable-equivalent basis adjustments of $0.1 million and nil for the six months ended June 30, 2020 and 2019, respectively.

Analysis of Change in Net Interest Income Table 6 Three Months Ended June30,2020 Compared to March 31, 2020(dollars in millions) Volume Rate TotalChange in Interest Income: Interest-Bearing Deposits in Other Banks $ 1.1 $ (2.3 ) $ (1.2 )Available-for-Sale Investment Securities 1.7 (5.4 ) (3.7 )Loans and Leases Commercial and industrial 6.4 (6.7 ) (0.3 )Commercial real estate ? (6.3 ) (6.3 )Construction 0.5 (1.3 ) (0.8 )Residential: Residential mortgage (0.4 ) (1.6 ) (2.0 )Home equity line ? (0.9 ) (0.9 )Consumer (1.2 ) (1.2 ) (2.4 )Lease financing 0.1 ? 0.1 Total Loans and Leases 5.4 (18.0 ) (12.6 )Other Earning Assets 0.1 (0.4 ) (0.3 )Total Change in Interest Income 8.3 (26.1 ) (17.8 ) Change in Interest Expense: Interest-Bearing Deposits Savings 0.2 (2.6 ) (2.4 )Money Market 0.3 (3.8 ) (3.5 )Time 2.1 (3.2 ) (1.1 )Total Interest-Bearing Deposits 2.6 (9.6 ) (7.0 )Total Change in Interest Expense 2.6 (9.6 ) (7.0 )Change in Net Interest Income $ 5.7 $ (16.5 ) $ (10.8 )

Analysis of Change in Net Interest Income Table 7 Three Months Ended June30,2020 Compared to June30,2019(dollars in millions) Volume Rate TotalChange in Interest Income: Interest-Bearing Deposits in Other Banks $ 1.4 $ (2.4 ) $ (1.0 )Available-for-Sale Investment Securities (0.3 ) (7.0 ) (7.3 )Loans Held for Sale 0.1 ? 0.1 Loans and Leases Commercial and industrial 3.6 (13.6 ) (10.0 )Commercial real estate 3.7 (11.4 ) (7.7 )Construction ? (2.0 ) (2.0 )Residential: Residential mortgage 1.0 (2.5 ) (1.5 )Home equity line (0.2 ) (1.6 ) (1.8 )Consumer (1.8 ) (0.3 ) (2.1 )Lease financing 0.7 (0.2 ) 0.5 Total Loans and Leases 7.0 (31.6 ) (24.6 )Other Earning Assets (0.1 ) (0.2 ) (0.3 )Total Change in Interest Income 8.1 (41.2 ) (33.1 ) Change in Interest Expense: Interest-Bearing Deposits Savings 0.6 (3.7 ) (3.1 )Money Market 0.3 (6.6 ) (6.3 )Time 1.0 (6.7 ) (5.7 )Total Interest-Bearing Deposits 1.9 (17.0 ) (15.1 )Short-Term Borrowings 2.4 0.1 2.5 Long-Term Borrowings (2.7 ) (0.1 ) (2.8 )Total Change in Interest Expense 1.6 (17.0 ) (15.4 )Change in Net Interest Income $ 6.5 $ (24.2 ) $ (17.7 )

Analysis of Change in Net Interest Income Table 8 Six Months Ended June30,2020 Compared to June30,2019(dollars in millions) Volume Rate TotalChange in Interest Income: Interest-Bearing Deposits in Other Banks $ 3.4 $ (6.0 ) $ (2.6 )Available-for-Sale Investment Securities (2.3 ) (8.3 ) (10.6 )Loans Held for Sale 0.1 ? 0.1 Loans and Leases Commercial and industrial (0.2 ) (18.4 ) (18.6 )Commercial real estate 8.3 (16.1 ) (7.8 )Construction (1.1 ) (2.7 ) (3.8 )Residential: Residential mortgage 2.9 (3.4 ) (0.5 )Home equity line (0.5 ) (2.3 ) (2.8 )Consumer (2.5 ) 0.9 (1.6 )Lease financing 1.2 (0.2 ) 1.0 Total Loans and Leases 8.1 (42.2 ) (34.1 )Other Earning Assets (0.4 ) 0.4 ? Total Change in Interest Income 8.9 (56.1 ) (47.2 ) Change in Interest Expense: Interest-Bearing Deposits Savings 0.9 (4.9 ) (4.0 )Money Market 0.1 (9.4 ) (9.3 )Time (1.0 ) (8.4 ) (9.4 )Total Interest-Bearing Deposits ? (22.7 ) (22.7 )Short-Term Borrowings 5.2 0.1 5.3 Long-Term Borrowings (5.5 ) (0.2 ) (5.7 )Total Change in Interest Expense (0.3 ) (22.8 ) (23.1 )Change in Net Interest Income $ 9.2 $ (33.3 ) $ (24.1 )

Loans and Table 9Leases June30, March31, December31, June30,(dollars in 2020 2020 2019 2019thousands)Commercialand $ 3,423,708 $ 3,025,345 $ 2,743,242 $ 3,177,844industrialCommercial 3,423,499 3,413,014 3,463,953 3,194,219real estateConstruction 617,935 572,062 519,241 549,578Residential: Residential 3,691,950 3,673,455 3,768,936 3,618,433mortgageHome equity 876,491 891,698 893,239 908,452lineTotal 4,568,441 4,565,153 4,662,175 4,526,885residentialConsumer 1,492,160 1,568,073 1,620,556 1,650,713Lease 238,287 236,623 202,483 165,370financingTotal loans $ 13,764,030 $ 13,380,270 $ 13,211,650 $ 13,264,609and leases

Deposits Table 10 June30, March31, December31, June30,(dollarsin 2020 2020 2019 2019thousands)Demand $ 6,880,091 $ 5,745,539 $ 5,880,072 $ 5,763,157Savings 5,727,367 5,213,471 4,998,933 4,908,000Money 3,247,511 3,148,694 3,055,832 3,050,843MarketTime 3,506,665 2,912,298 2,510,157 3,070,078 Total $ 19,361,634 $ 17,020,002 $ 16,444,994 $ 16,792,078Deposits

Non-PerformingAssets andAccruing Loans Table 11and Leases PastDue 90 Days orMore June30, March31, December31, June30,(dollars in 2020 2020 2019 2019thousands)Non-Performing AssetsNon-Accrual Loans and LeasesCommercial Loans: Commercial and $ 11,559 $ 32 $ 32 $ 119industrialCommercial real 13,168 ? 30 ?estateConstruction 2,043 2,422 ? ?Total Commercial 26,770 2,454 62 119LoansResidential Loans:Residential 6,059 4,472 5,406 3,771mortgageTotal Residential 6,059 4,472 5,406 3,771LoansTotal Non-Accrual 32,829 6,926 5,468 3,890Loans and LeasesOther Real Estate 446 238 319 ?OwnedTotalNon-Performing $ 33,275 $ 7,164 $ 5,787 $ 3,890Assets Accruing Loansand Leases Past Due 90 Days orMoreCommercial Loans: Commercial and $ 2,309 $ 4,007 $ 1,429 $ 807industrialCommercial real 900 757 1,013 ?estateConstruction 248 148 2,367 ?Total Commercial 3,457 4,912 4,809 807LoansResidential Loans:Residential ? 82 74 ?mortgageHome equity line 4,496 2,566 2,995 1,635Total Residential 4,496 2,648 3,069 1,635LoansConsumer 2,167 3,353 4,272 3,295Total AccruingLoans and Leases $ 10,120 $ 10,913 $ 12,150 $ 5,737Past Due 90 Daysor More RestructuredLoans on AccrualStatus and Not 11,182 17,823 14,493 23,466Past Due 90 Daysor MoreTotal Loans and $ 13,764,030 $ 13,380,270 $ 13,211,650 $ 13,264,609Leases

Allowancefor Credit Table 12Losses Forthe Three Months Ended Forthe Six Months Ended June30, March31, June30, June30, June30,(dollars in 2020 2020 2019 2020 2019thousands)Balance atBeginning of $ 166,013 $ 130,530 $ 141,546 $ 130,530 $ 141,718 PeriodAdjustmentto Adopt ASC ? 770 ? 770 ? Topic 326AfterAdoption of 166,013 131,300 141,546 131,300 141,718 ASC Topic326Loans andLeases Charged-OffCommercial Loans:Commercialand (13,974 ) (201 ) (2,000 ) (14,175 ) (2,000 )industrialCommercial (2,723 ) ? ? (2,723 ) ? real estateConstruction (379 ) ? ? (379 ) ? Lease ? ? ? ? (24 )financingTotalCommercial (17,076 ) (201 ) (2,000 ) (17,277 ) (2,024 )LoansResidential Loans:Residential (14 ) ? ? (14 ) ? mortgageHome equity ? (8 ) ? (8 ) ? lineTotalResidential (14 ) (8 ) ? (22 ) ? LoansConsumer (8,907 ) (8,597 ) (7,505 ) (17,504 ) (16,103 )Total Loansand Leases (25,997 ) (8,806 ) (9,505 ) (34,803 ) (18,127 )Charged-OffRecoverieson Loans andLeases PreviouslyCharged-OffCommercial Loans:Commercialand 100 220 25 320 62 industrialCommercial ? ? 32 ? 63 real estateConstruction 30 110 ? 140 ? TotalCommercial 130 330 57 460 125 LoansResidential Loans:Residential 17 135 118 152 336 mortgageHome equity 8 122 67 130 99 lineTotalResidential 25 257 185 282 435 LoansConsumer 2,456 2,083 2,382 4,539 4,834 TotalRecoverieson Loans and 2,611 2,670 2,624 5,281 5,394 LeasesPreviouslyCharged-OffNet Loansand Leases (23,386 ) (6,136 ) (6,881 ) (29,522 ) (12,733 )Charged-OffProvisionfor CreditLosses - 49,493 40,849 3,870 90,342 9,550 Loans andLeasesBalance atEnd of $ 192,120 $ 166,013 $ 138,535 $ 192,120 $ 138,535 PeriodAverageLoans and $ 13,956,669 $ 13,191,426 $ 13,209,655 $ 13,574,048 $ 13,142,057 LeasesOutstandingRatio of NetLoans andLeasesCharged-Offto Average 0.67 % 0.19 % 0.21 % 0.44 % 0.20 %Loans andLeasesOutstanding^(1)Ratio ofAllowancefor CreditLosses forLoans and 1.40 % 1.24 % 1.04 % 1.40 % 1.04 %Leases toLoans andLeasesOutstanding

(1) Annualized for the three and six months ended June 30, 2020 and 2019 and three months ended March 31, 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 LendingCommercialand IndustrialRisk rating: Pass $ 989,501 $ 349,261 $ 271,941 $ 76,742 $ 62,113 $ 68,468 $ 1,182,299 $ 39,617 $ 3,039,942Special 28,136 9,235 8,460 841 335 27,174 113,642 509 188,332MentionSubstandard 16,621 1,724 1,836 2,000 4,321 9,788 52,225 938 89,453Other ^(1) 9,091 16,661 12,574 7,884 3,199 811 55,761 ? 105,981TotalCommercial 1,043,349 376,881 294,811 87,467 69,968 106,241 1,403,927 41,064 3,423,708andIndustrial Commercial Real EstateRisk rating: Pass 171,445 618,501 523,149 440,549 296,474 927,232 33,878 ? 3,011,228Special ? 113,286 53,391 62,165 47,790 66,008 2,999 ? 345,639MentionSubstandard ? 16,304 14,617 1,655 6,630 17,947 8,970 ? 66,123Other ^(1) ? ? ? ? ? 509 ? ? 509TotalCommercial 171,445 748,091 591,157 504,369 350,894 1,011,696 45,847 ? 3,423,499Real Estate Construction Risk rating: Pass 16,615 135,963 192,016 96,137 24,106 41,457 29,297 ? 535,591Special ? ? 2,152 4,782 ? 10,850 196 ? 17,980MentionSubstandard ? ? 541 1,840 528 1,000 ? ? 3,909Other ^(1) 8,415 31,038 8,546 5,562 1,795 4,514 585 ? 60,455Total 25,030 167,001 203,255 108,321 26,429 57,821 30,078 ? 617,935Construction Lease FinancingRisk rating: Pass 45,489 67,806 11,965 18,915 3,764 59,364 ? ? 207,303Special 9,142 1,931 4,626 1,545 1,440 5,854 ? ? 24,538MentionSubstandard 2,697 1,651 368 1,207 ? 523 ? ? 6,446Total Lease 57,328 71,388 16,959 21,667 5,204 65,741 ? ? 238,287Financing TotalCommercial $ 1,297,152 $ 1,363,361 $ 1,106,182 $ 721,824 $ 452,495 $ 1,241,499 $ 1,479,852 $ 41,064 $ 7,703,429Lending

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 $ 300,079 $ 411,883 $ 353,197 $ 411,670 $ 362,197 $ 988,771 $ ? $ ? $ 2,827,797680 - 739 50,937 72,139 64,920 65,992 43,666 161,897 ? ? 459,551620 - 679 6,098 12,708 12,060 12,648 10,789 55,000 ? ? 109,303550 - 619 2,006 1,824 3,533 3,389 3,032 13,329 ? ? 27,113Less than 550 ? ? 1,204 1,907 528 6,324 ? ? 9,963No Score ^(3) 15,676 21,603 24,182 23,736 16,298 51,943 ? ? 153,438Other ^(2) 8,244 20,308 22,241 23,435 12,412 17,063 579 503 104,785Total Residential 383,040 540,465 481,337 542,777 448,922 1,294,327 579 503 3,691,950Mortgage Home Equity Line FICO: 740 and greater ? ? ? ? ? ? 626,897 858 627,755680 - 739 ? ? ? ? ? ? 169,547 1,283 170,830620 - 679 ? ? ? ? ? ? 48,655 1,013 49,668550 - 619 ? ? ? ? ? ? 14,276 562 14,838Less than 550 ? ? ? ? ? ? 6,661 212 6,873No Score ^(3) ? ? ? ? ? ? 6,527 ? 6,527Total Home Equity ? ? ? ? ? ? 872,563 3,928 876,491LineTotal Residential 383,040 540,465 481,337 542,777 448,922 1,294,327 873,142 4,431 4,568,441Lending Consumer Lending FICO: 740 and greater 65,206 141,704 120,178 71,525 35,932 12,451 109,702 ? 556,698680 - 739 47,584 109,728 87,056 48,728 24,478 10,094 83,021 ? 410,689620 - 679 24,185 65,310 43,282 31,318 16,144 7,013 42,511 ? 229,763550 - 619 5,881 26,220 22,891 20,874 10,869 5,467 18,429 ? 110,631Less than 550 1,562 12,306 13,110 10,628 5,397 2,567 7,777 ? 53,347No Score ^(3) 3,799 124 125 126 27 1 34,281 ? 38,483Other ^(2) 594 9,160 96 2,225 72 6,804 73,598 ? 92,549Total Consumer 148,811 364,552 286,738 185,424 92,919 44,397 369,319 ? 1,492,160Lending Total Loans and $ 1,829,003 $ 2,268,378 $ 1,874,257 $ 1,450,025 $ 994,336 $ 2,580,223 $ 2,722,313 $ 45,495 $ 13,764,030Leases

(1) Other credit quality indicators used for monitoring purposes are primarily FICO scores.

(2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings.

(3) No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.

GAAPtoNon-GAAPReconciliation Table14 Forthe Three Months Ended Forthe Six Months Ended June30, March31, June30, June30, (dollarsinthousands,exceptpershareamounts) 2020 2020 2019 2020 2019 Income Statement Data: Net income $ 20,049 $ 38,865 $ 72,433 $ 58,914 $ 142,357 Core net income $ 20,204 $ 38,803 $ 72,612 $ 59,007 $ 144,664 Average total stockholders' equity $ 2,697,775 $ 2,660,811 $ 2,610,565 $ 2,679,293 $ 2,575,775 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible stockholders' equity $ 1,702,283 $ 1,665,319 $ 1,615,073 $ 1,683,801 $ 1,580,283 Average total assets $ 22,341,654 $ 20,313,304 $ 20,390,273 $ 21,327,479 $ 20,442,266 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible assets $ 21,346,162 $ 19,317,812 $ 19,394,781 $ 20,331,987 $ 19,446,774 Return on average total stockholders' equity^(1) 2.99 % 5.87 % 11.13 % 4.42 % 11.15 %Core return on average total stockholders' equity 3.01 % 5.87 % 11.16 % 4.43 % 11.33 %(non-GAAP)^(1)Return on average tangible stockholders' equity (non-GAAP) 4.74 % 9.39 % 17.99 % 7.04 % 18.17 %^(1)Core return on average tangible stockholders' equity 4.77 % 9.37 % 18.03 % 7.05 % 18.46 %(non-GAAP)^(1) Return on average total assets^(1) 0.36 % 0.77 % 1.42 % 0.56 % 1.40 %Core return on average total assets (non-GAAP)^(1) 0.36 % 0.77 % 1.43 % 0.56 % 1.43 %Return on average tangible assets (non-GAAP)^(1) 0.38 % 0.81 % 1.50 % 0.58 % 1.48 %Core return on average tangible assets (non-GAAP)^(1) 0.38 % 0.81 % 1.50 % 0.58 % 1.50 %

Asof Asof Asof Asof June30, March31, December31, June30, 2020 2020 2019 2019 Balance Sheet Data:Totalstockholders' $ 2,701,897 $ 2,664,685 $ 2,640,258 $ 2,659,441 equityLess: 995,492 995,492 995,492 995,492 goodwillTangiblestockholders' $ 1,706,405 $ 1,669,193 $ 1,644,766 $ 1,663,949 equity Total assets $ 22,993,715 $ 20,755,891 $ 20,166,734 $ 20,526,367 Less: 995,492 995,492 995,492 995,492 goodwillTangible $ 21,998,223 $ 19,760,399 $ 19,171,242 $ 19,530,875 assets Shares 129,866,898 129,827,968 129,928,479 133,508,212 outstanding Totalstockholders' 11.75 % 12.84 % 13.09 % 12.96 %equity tototal assetsTangiblestockholders'equity to 7.76 % 8.45 % 8.58 % 8.52 %tangibleassets(non-GAAP) Book value $ 20.81 $ 20.52 $ 20.32 $ 19.92 per shareTangible bookvalue per $ 13.14 $ 12.86 $ 12.66 $ 12.46 share(non-GAAP)

(1) Annualized for the three and six months ended June 30, 2020 and 2019 and three months ended March 31, 2020.

GAAPtoNon-GAAPReconciliation Table 15 For the Three Months Ended Forthe Six Months Ended June30, March31, June30, June30, (dollarsinthousands, except per 2020 2020 2019 2020 2019 share amounts)Net interest income $ 127,822 $ 138,683 $ 145,613 $ 266,505 $ 290,702 Core net interest income (non-GAAP) $ 127,822 $ 138,683 $ 145,613 $ 266,505 $ 290,702 Noninterest income $ 45,656 $ 49,228 $ 48,773 $ 94,884 $ 95,845 Losses (gains) on sale of securities 211 (85 ) (21 ) 126 2,592 Core noninterest income (non-GAAP) $ 45,867 $ 49,143 $ 48,752 $ 95,010 $ 98,437 Noninterest expense $ 91,450 $ 96,466 $ 93,290 $ 187,916 $ 185,913 One-time items^(1) ? ? (261 ) ? (522 ) Core noninterest expense (non-GAAP) $ 91,450 $ 96,466 $ 93,029 $ 187,916 $ 185,391 Net income $ 20,049 $ 38,865 $ 72,433 $ 58,914 $ 142,357 Losses (gains) on sale of securities 211 (85 ) (21 ) 126 2,592 One-time noninterest expense items^ ? ? 261 ? 522 (1)Tax adjustments^(2) (56 ) 23 (61 ) (33 ) (807 ) Total core adjustments 155 (62 ) 179 93 2,307 Core net income (non-GAAP) $ 20,204 $ 38,803 $ 72,612 $ 59,007 $ 144,664 Basic earnings per share $ 0.15 $ 0.30 $ 0.54 $ 0.45 $ 1.06 Diluted earnings per share $ 0.15 $ 0.30 $ 0.54 $ 0.45 $ 1.06 Efficiency ratio 52.70 % 51.33 % 47.99 % 51.99 % 48.09 % Core basic earnings per share $ 0.16 $ 0.30 $ 0.54 $ 0.45 $ 1.07 (non-GAAP)Core diluted earnings per share $ 0.16 $ 0.30 $ 0.54 $ 0.45 $ 1.07 (non-GAAP)Core efficiency ratio (non-GAAP) 52.64 % 51.35 % 47.86 % 51.97 % 47.64 %

(1) One-time items included nonrecurring offering costs.

(2) Represents the adjustments to net income, tax effected at the Companys effective tax rate for the respective period.