Business
First Hawaiian, Inc. Reports Second Quarter 2026 Financial Results and Declares Dividend
First Hawaiian, Inc. Reports Second Quarter 2026 Financial Results and Declares
About this update from First Hawaiian, Inc.
HONOLULU, July 24, 2026 (GLOBE NEWSWIRE) -- First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended June 30, 2026. "The second quarter was another strong quarter, reflecting the strength of our business model, the disciplined execution by our team and the trust our customers place in us," said Bob Harrison, Chairman, President and Chief Executive Officer. "The announced acquisition of Tri Counties Bank builds on that momentum, bringing together two strong banks with shared values and complementary strengths to better serve our customers and communities while creating long-term value for our shareholders." On July 22, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on August 28, 2026, to stockholders of record at the close of business on August 17, 2026. Second Quarter 2026 Highlights: Net income of $73.4 million, or $0.60 per diluted share Total loans and leases increased $136.5 million versus prior quarter Total deposits decreased $623.2 million versus prior quarter Net interest margin increased 6 basis points to 3.25% Recorded a $5.6 million provision for credit losses Board of Directors declared a quarterly dividend of $0.26 per share Balance Sheet Total assets were $23.6 billion at June 30, 2026 versus $24.3 billion at March 31, 2026. Gross loans and leases were $14.6 billion as of June 30, 2026, an increase of $136.5 million from $14.4 billion as of March 31, 2026. Total deposits were $20.2 billion as of June 30, 2026, a decrease of $623.2 million from $20.8 billion as of March 31, 2026. Net Interest Income Net interest income for the second quarter of 2026 was $171.0 million, an increase of $3.5 million compared to $167.5 million for the prior quarter. The net interest margin was 3.25% in the second quarter of 2026, 6 basis points higher than the prior quarter’s margin of 3.19%. Provision Expense During the quarter ended June 30, 2026, we recorded a $5.6 million provision for credit losses. In the quarter ended March 31, 2026, we recorded a $5.0 million provision for credit losses. Noninterest Income Noninterest income was $60.3 million in the second quarter of 2026, $7.5 million higher compared to noninterest income of $52.8 million in the prior quarter. Noninterest Expense Noninterest expense was $130.4 million in the second quarter of 2026, $2.6 million higher compared to noninterest expense of $127.9 million in the prior quarter. The efficiency ratio was 56.2% and 57.8% for the quarters ended June 30, 2026 and March 31, 2026, respectively. Taxes The effective tax rate was 22.9% and 22.5% for the quarters ended June 30, 2026 and March 31, 2026, respectively. Asset Quality The allowance for credit losses was $168.1 million, or 1.15% of total loans and leases, as of June 30, 2026, compared to $169.3 million, or 1.17% of total loans and leases, as of March 31, 2026. The reserve for unfunded commitments was $37.7 million as of June 30, 2026 and $34.9 million as of March 31, 2026. Net charge-offs were $4.1 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended June 30, 2026, compared to net charge-offs of $4.9 million, or 0.14% of average loans and leases on an annualized basis, for the quarter ended March 31, 2026. Total non-performing assets were $39.5 million, or 0.27% of total loans and leases and other real estate owned, on June 30, 2026, compared to total non-performing assets of $39.7 million, or 0.27% of total loans and leases and other real estate owned, on March 31, 2026. Capital Total stockholders' equity was $2.8 billion at June 30, 2026 and March 31, 2026. The tier 1 leverage, common equity tier 1 and total capital ratios were 9.46%, 13.27% and 14.52%, respectively, on June 30, 2026, compared with 9.21%, 13.12% and 14.37%, respectively, on March 31, 2026. The Company did not repurchase any shares 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 Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com . Conference Call Information First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time. To access the call by phone, please register via the following link: https://register-conf.media-server.com/register/BIb8e318d9b8d24417b3d7d113fcf80dbc , and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. 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. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. 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 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, 2025 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. Use of Non-GAAP Financial Measures Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy. Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures. Investor Relations Contact: Kevin Haseyama, CFA (808) 525-6268 [email protected] Media Contact: Bill Weeshoff (808) 525-6229 [email protected] Financial Highlights Table 1 For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, (dollars in thousands, except per share data) 2026 2026 2025 2026 2025 Operating Results: Net interest income $ 170,993 $ 167,530 $ 163,583 $ 338,523 $ 324,109 Provision for credit losses 5,600 5,000 4,500 10,600 15,000 Noninterest income 60,281 52,819 53,958 113,100 104,435 Noninterest expense 130,445 127,885 124,939 258,330 248,499 Net income 73,375 67,784 73,247 141,159 132,495 Basic earnings per share 0.60 0.55 0.58 1.16 1.05 Diluted earnings per share 0.60 0.55 0.58 1.15 1.05 Dividends declared per share 0.26 0.26 0.26 0.52 0.52 Dividend payout ratio 43.33 % 47.27 % 44.83 % 45.22 % 49.52 % Performance Ratios (1) : Net interest margin 3.25 % 3.19 % 3.11 % 3.22 % 3.10 % Efficiency ratio 56.17 % 57.77 % 57.23 % 56.95 % 57.71 % Return on average total assets 1.23 % 1.14 % 1.23 % 1.19 % 1.12 % Return on average tangible assets (non-GAAP) (2) 1.28 % 1.19 % 1.28 % 1.24 % 1.17 % Return on average total stockholders' equity 10.52 % 9.86 % 11.03 % 10.19 % 10.07 % Return on average tangible stockholders' equity (non-GAAP) (2) 16.34 % 15.33 % 17.61 % 15.84 % 16.12 % Average Balances: Average loans and leases $ 14,488,213 $ 14,289,418 $ 14,288,918 $ 14,389,365 $ 14,299,400 Average earning assets 21,192,973 21,332,641 21,167,588 21,262,421 21,168,386 Average assets 23,954,425 24,083,280 23,859,410 24,018,496 23,874,849 Average deposits 20,483,307 20,623,573 20,280,042 20,553,052 20,316,836 Average stockholders' equity 2,796,857 2,788,826 2,663,850 2,792,863 2,652,975 Market Value Per Share: Closing 29.30 24.64 24.96 29.30 24.96 High 29.63 28.35 25.09 29.63 28.28 Low 24.50 23.26 20.32 23.26 20.32 As of As of As of As of June 30, March 31, December 31, June 30, (dollars in thousands, except per share data) 2026 2026 2025 2025 Balance Sheet Data: Loans and leases $ 14,577,299 $ 14,440,835 $ 14,312,529 $ 14,351,869 Total assets 23,646,049 24,264,548 23,955,252 23,837,147 Total deposits 20,154,181 20,777,353 20,515,668 20,231,419 Short-term borrowings — — — 250,000 Total stockholders' equity 2,826,028 2,767,760 2,769,365 2,694,545 Per Share of Common Stock: Book value $ 23.22 $ 22.75 $ 22.57 $ 21.61 Tangible book value (non-GAAP) (2) 15.04 14.57 14.46 13.63 Asset Quality Ratios: Non-accrual loans and leases / total loans and leases 0.27 % 0.27 % 0.29 % 0.20 % Allowance for credit losses for loans and leases / total loans and leases 1.15 % 1.17 % 1.18 % 1.17 % Capital Ratios: Common Equity Tier 1 Capital Ratio 13.27 % 13.12 % 13.17 % 13.03 % Tier 1 Capital Ratio 13.27 % 13.12 % 13.17 % 13.03 % Total Capital Ratio 14.52 % 14.37 % 14.42 % 14.28 % Tier 1 Leverage Ratio 9.46 % 9.21 % 9.27 % 9.12 % Total stockholders' equity to total assets 11.95 % 11.41 % 11.56 % 11.30 % Tangible stockholders' equity to tangible assets (non-GAAP) (2) 8.08 % 7.62 % 7.73 % 7.44 % Non-Financial Data: Number of branches 49 49 49 48 Number of ATMs 274 273 273 274 Number of Full-Time Equivalent Employees 1,995 1,986 1,997 2,006 (1) Except for the efficiency ratio, amounts are annualized for the three and six months ended June 30, 2026 and 2025 and three months ended March 31, 2026. (2) Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. 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 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 tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. 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. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation. Consolidated Statements of Income Table 2 For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, (dollars in thousands, except per share amounts) 2026 2026 2025 2026 2025 Interest income Loans and lease financing $ 190,727 $ 186,389 $ 193,393 $ 377,116 $ 385,495 Available-for-sale investment securities 15,867 14,884 12,469 30,751 25,619 Held-to-maturity investment securities 15,121 15,063 16,299 30,184 32,946 Other 10,652 13,362 14,578 24,014 27,829 Total interest income 232,367 229,698 236,739 462,065 471,889 Interest expense Deposits 61,220 62,064 70,289 123,284 141,998 Short-term borrowings — — 2,627 — 5,226 Other 154 104 240 258 556 Total interest expense 61,374 62,168 73,156 123,542 147,780 Net interest income 170,993 167,530 163,583 338,523 324,109 Provision for credit losses 5,600 5,000 4,500 10,600 15,000 Net interest income after provision for credit losses 165,393 162,530 159,083 327,923 309,109 Noninterest income Service charges on deposit accounts 8,316 8,156 7,830 16,472 15,365 Credit and debit card fees 15,402 15,083 15,913 30,485 30,387 Other service charges and fees 14,409 13,784 13,350 28,193 25,517 Trust and investment services income 9,074 9,146 9,154 18,220 18,524 Bank-owned life insurance 7,069 4,091 4,724 11,160 9,095 Investment securities gains, net — — — — 37 Other 6,011 2,559 2,987 8,570 5,510 Total noninterest income 60,281 52,819 53,958 113,100 104,435 Noninterest expense Salaries and employee benefits 62,376 64,090 59,501 126,466 119,605 Contracted services and professional fees 18,402 13,964 15,997 32,366 30,836 Occupancy 7,902 7,816 7,934 15,718 16,034 Equipment 14,563 14,781 14,037 29,344 27,908 Regulatory assessment and fees 3,417 3,248 3,759 6,665 7,582 Advertising and marketing 2,178 2,252 2,035 4,430 4,214 Card rewards program 8,403 8,404 8,406 16,807 16,325 Other 13,204 13,330 13,270 26,534 25,995 Total noninterest expense 130,445 127,885 124,939 258,330 248,499 Income before provision for income taxes 95,229 87,464 88,102 182,693 165,045 Provision for income taxes 21,854 19,680 14,855 41,534 32,550 Net income $ 73,375 $ 67,784 $ 73,247 $ 141,159 $ 132,495 Basic earnings per share $ 0.60 $ 0.55 $ 0.58 $ 1.16 $ 1.05 Diluted earnings per share $ 0.60 $ 0.55 $ 0.58 $ 1.15 $ 1.05 Basic weighted-average outstanding shares 121,669,238 122,457,604 125,321,837 122,061,243 125,799,060 Diluted weighted-average outstanding shares 122,339,836 123,345,708 125,833,064 122,830,138 126,493,569 Consolidated Balance Sheets Table 3 June 30, March 31, December 31, June 30, (dollars in thousands, except share amount) 2026 2026 2025 2025 Assets Cash and due from banks $ 263,762 $ 225,727 $ 228,734 $ 304,624 Interest-bearing deposits in other banks 748,734 1,493,421 1,249,018 1,094,411 Investment securities: Available-for-sale, at fair value (amortized cost: $2,275,837 as of June 30, 2026, $2,270,792 as of March 31, 2026, $2,246,716 as of December 31, 2025 and $2,097,906 as of June 30, 2025) 2,094,699 2,080,004 2,076,233 1,891,654 Held-to-maturity, at amortized cost (fair value: $3,035,475 as of June 30, 2026, $3,074,133 as of March 31, 2026, $3,188,775 as of December 31, 2025 and $3,230,698 as of June 30, 2025) 3,411,684 3,480,022 3,533,082 3,658,814 Loans held for sale — — 1,370 — Loans and leases 14,577,299 14,440,835 14,312,529 14,351,869 Less: allowance for credit losses 168,056 169,318 168,468 167,825 Net loans and leases 14,409,243 14,271,517 14,144,061 14,184,044 Premises and equipment, net 304,025 302,807 303,496 299,149 Accrued interest receivable 76,622 77,286 77,641 77,943 Bank-owned life insurance 521,137 514,069 513,182 502,419 Goodwill 995,492 995,492 995,492 995,492 Mortgage servicing rights 4,302 4,470 4,638 4,828 Other assets 816,349 819,733 828,305 823,769 Total assets $ 23,646,049 $ 24,264,548 $ 23,955,252 $ 23,837,147 Liabilities and Stockholders' Equity Deposits: Interest-bearing $ 13,706,392 $ 14,257,290 $ 13,968,376 $ 13,386,987 Noninterest-bearing 6,447,789 6,520,063 6,547,292 6,844,432 Total deposits 20,154,181 20,777,353 20,515,668 20,231,419 Short-term borrowings — — — 250,000 Retirement benefits payable 97,409 98,220 99,052 95,357 Other liabilities 568,431 621,215 571,167 565,826 Total liabilities 20,820,021 21,496,788 21,185,887 21,142,602 Stockholders' equity Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 142,661,019 / 121,680,634 shares as of June 30, 2026, issued/outstanding: 142,627,813 / 121,648,973 shares as of March 31, 2026, issued/outstanding: 142,184,584 / 122,689,256 shares as of December 31, 2025 and issued/outstanding: 142,173,027 / 124,683,544 shares as of June 30, 2025) 1,427 1,426 1,422 1,422 Additional paid-in capital 2,584,578 2,580,501 2,576,540 2,567,936 Retained earnings 1,156,028 1,114,759 1,078,885 1,000,997 Accumulated other comprehensive loss, net (359,793 ) (372,747 ) (368,140 ) (407,008 ) Treasury stock (20,980,385 shares as of June 30, 2026, 20,978,840 shares as of March 31, 2026, 19,495,328 shares as of December 31, 2025 and 17,489,483 shares as of June 30, 2025) (556,212 ) (556,179 ) (519,342 ) (468,802 ) Total stockholders' equity 2,826,028 2,767,760 2,769,365 2,694,545 Total liabilities and stockholders' equity $ 23,646,049 $ 24,264,548 $ 23,955,252 $ 23,837,147 Average Balances and Interest Rates Table 4 Three Months Ended Three Months Ended Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ (dollars in millions) Balance Expense Rate Balance Expense Rate Balance Expense Rate Earning Assets Interest-Bearing Deposits in Other Banks $ 1,142.4 $ 10.5 3.68 % $ 1,455.0 $ 13.2 3.68 % $ 1,276.8 $ 14.1 4.45 % Available-for-Sale Investment Securities Taxable 2,081.7 15.8 3.05 2,050.7 14.9 2.91 1,869.3 12.5 2.67 Non-Taxable 0.4 — 4.42 0.8 — 4.86 1.3 — 5.27 Held-to-Maturity Investment Securities Taxable 2,860.7 12.1 1.69 2,916.5 12.0 1.64 3,099.9 13.2 1.70 Non-Taxable 590.3 3.3 2.23 592.6 3.5 2.39 596.5 3.3 2.21 Total Investment Securities 5,533.1 31.2 2.26 5,560.6 30.4 2.19 5,567.0 29.0 2.08 Loans Held for Sale 0.6 — 5.68 0.9 — 5.87 0.3 — 6.86 Loans and Leases (1) Commercial and industrial 2,275.4 32.3 5.69 2,170.6 30.8 5.75 2,291.5 35.2 6.16 Commercial real estate 4,736.0 67.6 5.73 4,608.4 65.0 5.72 4,392.5 66.9 6.11 Construction 770.2 12.4 6.48 775.5 12.4 6.48 900.4 14.9 6.66 Residential: Residential mortgage 4,038.8 40.9 4.05 4,081.8 41.0 4.02 4,104.1 40.2 3.92 Home equity line 1,181.8 14.2 4.82 1,175.4 13.7 4.71 1,154.4 13.4 4.64 Consumer 1,044.1 20.1 7.74 1,034.5 20.0 7.84 1,013.9 19.2 7.58 Lease financing 441.9 3.9 3.51 443.2 4.1 3.75 432.1 4.2 3.90 Total Loans and Leases 14,488.2 191.4 5.30 14,289.4 187.0 5.29 14,288.9 194.0 5.44 Other Earning Assets 28.7 0.2 2.36 26.7 0.1 2.52 34.6 0.4 4.94 Total Earning Assets (2) 21,193.0 233.3 4.41 21,332.6 230.7 4.37 21,167.6 237.5 4.50 Cash and Due from Banks 239.1 226.4 222.3 Other Assets 2,522.3 2,524.3 2,469.5 Total Assets $ 23,954.4 $ 24,083.3 $ 23,859.4 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 6,407.4 $ 19.6 1.23 % $ 6,404.5 $ 18.9 1.20 % $ 6,247.5 $ 21.0 1.35 % Money Market 4,321.3 19.5 1.81 4,358.9 19.8 1.84 3,822.1 22.8 2.39 Time 3,275.3 22.1 2.71 3,381.3 23.4 2.80 3,389.4 26.5 3.14 Total Interest-Bearing Deposits 14,004.0 61.2 1.75 14,144.7 62.1 1.78 13,459.0 70.3 2.09 Other Short-Term Borrowings — — — — — — 250.0 2.6 4.22 Other Interest-Bearing Liabilities 19.5 0.2 3.16 12.5 0.1 3.40 20.8 0.2 4.62 Total Interest-Bearing Liabilities 14,023.5 61.4 1.76 14,157.2 62.2 1.78 13,729.8 73.1 2.14 Net Interest Income $ 171.9 $ 168.5 $ 164.4 Interest Rate Spread (3) 2.65 % 2.59 % 2.36 % Net Interest Margin (4) 3.25 % 3.19 % 3.11 % Noninterest-Bearing Demand Deposits 6,479.3 6,478.9 6,821.0 Other Liabilities 654.7 658.4 644.7 Stockholders' Equity 2,796.9 2,788.8 2,663.9 Total Liabilities and Stockholders' Equity $ 23,954.4 $ 24,083.3 $ 23,859.4 (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 $0.9 million, $1.0 million and $0.8 million for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively. (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis. (4) Net interest margin is net interest income annualized for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, on a fully taxable-equivalent basis, divided by average total earning assets. Average Balances and Interest Rates Table 5 Six Months Ended Six Months Ended June 30, 2026 June 30, 2025 Average Income/ Yield/ Average Income/ Yield/ (dollars in millions) Balance Expense Rate Balance Expense Rate Earning Assets Interest-Bearing Deposits in Other Banks $ 1,297.9 $ 23.7 3.68 % $ 1,224.3 $ 27.0 4.44 % Available-for-Sale Investment Securities Taxable 2,066.3 30.7 2.98 1,880.3 25.6 2.73 Non-Taxable 0.6 — 4.71 1.3 — 5.38 Held-to-Maturity Investment Securities Taxable 2,888.4 24.1 1.67 3,131.8 26.8 1.71 Non-Taxable 591.4 6.8 2.31 597.7 7.0 2.36 Total Investment Securities 5,546.7 61.6 2.22 5,611.1 59.4 2.12 Loans Held for Sale 0.8 — 5.79 0.3 — 6.54 Loans and Leases (1) Commercial and industrial 2,223.3 63.1 5.72 2,244.4 68.8 6.18 Commercial real estate 4,672.5 132.7 5.73 4,406.3 133.3 6.10 Construction 772.8 24.8 6.48 918.6 30.4 6.67 Residential: Residential mortgage 4,060.2 81.9 4.03 4,127.1 81.2 3.93 Home equity line 1,178.6 27.8 4.76 1,152.1 26.4 4.62 Consumer 1,039.4 40.1 7.79 1,016.6 38.1 7.56 Lease financing 442.6 8.0 3.63 434.3 8.5 3.95 Total Loans and Leases 14,389.4 378.4 5.29 14,299.4 386.7 5.44 Other Earning Assets 27.6 0.3 2.44 33.3 0.8 5.20 Total Earning Assets (2) 21,262.4 464.0 4.39 21,168.4 473.9 4.50 Cash and Due from Banks 232.8 229.0 Other Assets 2,523.3 2,477.4 Total Assets $ 24,018.5 $ 23,874.8 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 6,406.0 $ 38.5 1.21 % $ 6,240.1 $ 42.2 1.36 % Money Market 4,340.0 39.3 1.83 3,871.8 45.8 2.38 Time 3,328.0 45.5 2.76 3,353.5 54.0 3.25 Total Interest-Bearing Deposits 14,074.0 123.3 1.77 13,465.4 142.0 2.13 Other Short-Term Borrowings — — — 250.0 5.2 4.22 Other Interest-Bearing Liabilities 16.0 0.2 3.25 24.1 0.6 4.65 Total Interest-Bearing Liabilities 14,090.0 123.5 1.77 13,739.5 147.8 2.17 Net Interest Income $ 340.5 $ 326.1 Interest Rate Spread (3) 2.62 % 2.33 % Net Interest Margin (4) 3.22 % 3.10 % Noninterest-Bearing Demand Deposits 6,479.1 6,851.4 Other Liabilities 656.5 630.9 Stockholders' Equity 2,792.9 2,653.0 Total Liabilities and Stockholders' Equity $ 24,018.5 $ 23,874.8 (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 $2.0 million for both the six months ended June 30, 2026 and 2025. (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis. (4) Net interest margin is net interest income annualized for the six months ended June 30, 2026 and 2025, on a fully taxable-equivalent basis, divided by average total earning assets. Analysis of Change in Net Interest Income Table 6 Three Months Ended June 30, 2026 Compared to March 31, 2026 (dollars in millions) Volume Rate Total (1) Change in Interest Income: Interest-Bearing Deposits in Other Banks $ (2.7 ) $ — $ (2.7 ) Available-for-Sale Investment Securities Taxable 0.2 0.7 0.9 Held-to-Maturity Investment Securities Taxable (0.2 ) 0.3 0.1 Non-Taxable — (0.2 ) (0.2 ) Total Investment Securities — 0.8 0.8 Loans and Leases Commercial and industrial 1.8 (0.3 ) 1.5 Commercial real estate 2.4 0.2 2.6 Residential: Residential mortgage (0.4 ) 0.3 (0.1 ) Home equity line 0.1 0.4 0.5 Consumer 0.2 (0.1 ) 0.1 Lease financing — (0.2 ) (0.2 ) Total Loans and Leases 4.1 0.3 4.4 Other Earning Assets 0.1 — 0.1 Total Change in Interest Income 1.5 1.1 2.6 Change in Interest Expense: Interest-Bearing Deposits Savings — 0.7 0.7 Money Market (0.1 ) (0.2 ) (0.3 ) Time (0.6 ) (0.7 ) (1.3 ) Total Interest-Bearing Deposits (0.7 ) (0.2 ) (0.9 ) Other Interest-Bearing Liabilities 0.1 — 0.1 Total Change in Interest Expense (0.6 ) (0.2 ) (0.8 ) Change in Net Interest Income $ 2.1 $ 1.3 $ 3.4 (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. Analysis of Change in Net Interest Income Table 7 Three Months Ended June 30, 2026 Compared to June 30, 2025 (dollars in millions) Volume Rate Total (1) Change in Interest Income: Interest-Bearing Deposits in Other Banks $ (1.4 ) $ (2.2 ) $ (3.6 ) Available-for-Sale Investment Securities Taxable 1.4 1.9 3.3 Held-to-Maturity Investment Securities Taxable (1.0 ) (0.1 ) (1.1 ) Total Investment Securities 0.4 1.8 2.2 Loans and Leases Commercial and industrial (0.2 ) (2.7 ) (2.9 ) Commercial real estate 5.0 (4.3 ) 0.7 Construction (2.1 ) (0.4 ) (2.5 ) Residential: Residential mortgage (0.6 ) 1.3 0.7 Home equity line 0.3 0.5 0.8 Consumer 0.5 0.4 0.9 Lease financing 0.1 (0.4 ) (0.3 ) Total Loans and Leases 3.0 (5.6 ) (2.6 ) Other Earning Assets — (0.2 ) (0.2 ) Total Change in Interest Income 2.0 (6.2 ) (4.2 ) Change in Interest Expense: Interest-Bearing Deposits Savings 0.5 (1.9 ) (1.4 ) Money Market 2.7 (6.0 ) (3.3 ) Time (0.9 ) (3.5 ) (4.4 ) Total Interest-Bearing Deposits 2.3 (11.4 ) (9.1 ) Other Short-Term Borrowings (1.3 ) (1.3 ) (2.6 ) Total Change in Interest Expense 1.0 (12.7 ) (11.7 ) Change in Net Interest Income $ 1.0 $ 6.5 $ 7.5 (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. Analysis of Change in Net Interest Income Table 8 Six Months Ended June 30, 2026 Compared to June 30, 2025 (dollars in millions) Volume Rate Total (1) Change in Interest Income: Interest-Bearing Deposits in Other Banks $ 1.5 $ (4.8 ) $ (3.3 ) Available-for-Sale Investment Securities Taxable 2.6 2.5 5.1 Held-to-Maturity Investment Securities Taxable (2.1 ) (0.6 ) (2.7 ) Non-Taxable (0.1 ) (0.1 ) (0.2 ) Total Investment Securities 0.4 1.8 2.2 Loans and Leases Commercial and industrial (0.6 ) (5.1 ) (5.7 ) Commercial real estate 7.8 (8.4 ) (0.6 ) Construction (4.7 ) (0.9 ) (5.6 ) Residential: Residential mortgage (1.3 ) 2.0 0.7 Home equity line 0.6 0.8 1.4 Consumer 0.8 1.2 2.0 Lease financing 0.2 (0.7 ) (0.5 ) Total Loans and Leases 2.8 (11.1 ) (8.3 ) Other Earning Assets (0.1 ) (0.4 ) (0.5 ) Total Change in Interest Income 4.6 (14.5 ) (9.9 ) Change in Interest Expense: Interest-Bearing Deposits Savings 1.1 (4.8 ) (3.7 ) Money Market 5.0 (11.5 ) (6.5 ) Time (0.4 ) (8.1 ) (8.5 ) Total Interest-Bearing Deposits 5.7 (24.4 ) (18.7 ) Other Short-Term Borrowings (2.6 ) (2.6 ) (5.2 ) Other Interest-Bearing Liabilities (0.2 ) (0.2 ) (0.4 ) Total Change in Interest Expense 2.9 (27.2 ) (24.3 ) Change in Net Interest Income $ 1.7 $ 12.7 $ 14.4 (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns. Loans and Leases Table 9 June 30, March 31, December 31, June 30, (dollars in thousands) 2026 2026 2025 2025 Commercial and industrial $ 2,339,882 $ 2,241,882 $ 2,171,333 $ 2,370,210 Commercial real estate 4,783,130 4,715,741 4,590,326 4,411,585 Construction 731,766 769,302 808,275 884,306 Residential: Residential mortgage 4,044,207 4,063,933 4,096,300 4,085,827 Home equity line 1,181,396 1,176,228 1,178,527 1,161,876 Total residential 5,225,603 5,240,161 5,274,827 5,247,703 Consumer 1,046,461 1,030,002 1,025,838 1,011,125 Lease financing 450,457 443,747 441,930 426,940 Total loans and leases $ 14,577,299 $ 14,440,835 $ 14,312,529 $ 14,351,869 Deposits Table 10 June 30, March 31, December 31, June 30, (dollars in thousands) 2026 2026 2025 2025 Demand $ 6,447,789 $ 6,520,063 $ 6,547,292 $ 6,844,432 Savings 6,132,746 6,566,192 6,308,873 6,219,801 Money Market 4,283,982 4,310,474 4,289,370 3,777,681 Time 3,289,664 3,380,624 3,370,133 3,389,505 Total Deposits $ 20,154,181 $ 20,777,353 $ 20,515,668 $ 20,231,419 Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More Table 11 June 30, March 31, December 31, June 30, (dollars in thousands) 2026 2026 2025 2025 Non-Performing Assets Non-Accrual Loans and Leases Commercial Loans: Commercial and industrial $ 4,054 $ 4,960 $ 8,805 $ 1,184 Commercial real estate 2,879 2,952 3,007 3,185 Construction 1,788 1,788 1,788 904 Lease financing 680 691 734 — Total Commercial Loans 9,401 10,391 14,334 5,273 Residential Loans: Residential mortgage 18,675 17,665 16,423 15,032 Home equity line 11,425 11,624 10,271 8,286 Total Residential Loans 30,100 29,289 26,694 23,318 Total Non-Accrual Loans and Leases 39,501 39,680 41,028 28,591 Total Non-Performing Assets $ 39,501 $ 39,680 $ 41,028 $ 28,591 Accruing Loans and Leases Past Due 90 Days or More Commercial and industrial $ 249 $ 715 $ 318 $ 942 Residential mortgage 771 9 55 309 Consumer 3,073 3,620 2,984 3,187 Total Accruing Loans and Leases Past Due 90 Days or More $ 4,093 $ 4,344 $ 3,357 $ 4,438 Total Loans and Leases $ 14,577,299 $ 14,440,835 $ 14,312,529 $ 14,351,869 Allowance for Credit Losses and Reserve for Unfunded Commitments Table 12 For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, June 30, (dollars in thousands) 2026 2026 2025 2026 2025 Balance at Beginning of Period $ 204,265 $ 204,165 $ 199,959 $ 204,165 $ 193,240 Loans and Leases Charged-Off Commercial Loans: Commercial and industrial (769 ) (2,625 ) (688 ) (3,394 ) (2,147 ) Lease financing — — (82 ) — (82 ) Total Commercial Loans (769 ) (2,625 ) (770 ) (3,394 ) (2,229 ) Home equity line (23 ) — (16 ) (23 ) (30 ) Consumer (5,490 ) (4,844 ) (4,543 ) (10,334 ) (9,568 ) Total Loans and Leases Charged-Off (6,282 ) (7,469 ) (5,329 ) (13,751 ) (11,827 ) Recoveries on Loans and Leases Previously Charged-Off Commercial Loans: Commercial and industrial 281 266 196 547 599 Commercial real estate — — — — 251 Lease financing — 3 — 3 — Total Commercial Loans 281 269 196 550 850 Residential Loans: Residential mortgage 16 13 109 29 129 Home equity line 28 39 32 67 96 Total Residential Loans 44 52 141 96 225 Consumer 1,820 2,248 1,705 4,068 3,684 Total Recoveries on Loans and Leases Previously Charged-Off 2,145 2,569 2,042 4,714 4,759 Net Loans and Leases Charged-Off (4,137 ) (4,900 ) (3,287 ) (9,037 ) (7,068 ) Provision for Credit Losses 5,600 5,000 4,500 10,600 15,000 Balance at End of Period $ 205,728 $ 204,265 $ 201,172 $ 205,728 $ 201,172 Components: Allowance for Credit Losses $ 168,056 $ 169,318 $ 167,825 $ 168,056 $ 167,825 Reserve for Unfunded Commitments 37,672 34,947 33,347 37,672 33,347 Total Allowance for Credit Losses and Reserve for Unfunded Commitments $ 205,728 $ 204,265 $ 201,172 $ 205,728 $ 201,172 Average Loans and Leases Outstanding $ 14,488,213 $ 14,289,418 $ 14,288,918 $ 14,389,365 $ 14,299,400 Ratio of Net Loans and Leases Charged-Off to Average Loans and Leases Outstanding (1) 0.11 % 0.14 % 0.09 % 0.13 % 0.10 % Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding 1.15 % 1.17 % 1.17 % 1.15 % 1.17 % Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases 4.25x 4.27x 5.87x 4.25x 5.87x (1) Annualized for the three and six months ended June 30, 2026 and 2025 and three months ended March 31, 2026. 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 thousands) 2026 2025 2024 2023 2022 Prior Cost Basis Cost Basis Total Commercial Lending Commercial and Industrial Risk rating: Pass $ 121,498 $ 265,147 $ 116,522 $ 63,411 $ 57,461 $ 302,522 $ 1,229,183 $ 30,382 $ 2,186,126 Special Mention 439 6,038 692 1,689 2,473 807 8,308 — 20,446 Substandard 145 687 2,334 376 2,998 18,736 15,143 — 40,419 Other (1) 11,798 14,486 7,222 3,453 2,601 1,743 51,588 — 92,891 Total Commercial and Industrial 133,880 286,358 126,770 68,929 65,533 323,808 1,304,222 30,382 2,339,882 Current period gross charge-offs — 84 46 — 10 1,392 1,862 — 3,394 Commercial Real Estate Risk rating: Pass 439,619 723,674 369,595 404,872 658,129 1,814,129 117,006 6,353 4,533,377 Special Mention — — 3,623 1,652 104,548 71,474 2,376 — 183,673 Substandard 969 — 5,309 695 37,564 16,219 5,207 — 65,963 Other (1) — — — — — 117 — — 117 Total Commercial Real Estate 440,588 723,674 378,527 407,219 800,241 1,901,939 124,589 6,353 4,783,130 Current period gross charge-offs — — — — — — — — — Construction Risk rating: Pass 55,488 124,793 219,701 61,476 169,561 31,308 44,234 — 706,561 Special Mention — — — — — 904 — — 904 Other (1) 3,050 7,895 5,419 3,773 1,723 1,762 679 — 24,301 Total Construction 58,538 132,688 225,120 65,249 171,284 33,974 44,913 — 731,766 Current period gross charge-offs — — — — — — — — — Lease Financing Risk rating: Pass 94,390 63,777 77,896 84,839 35,648 92,657 — — 449,207 Special Mention — — 77 419 74 — — — 570 Substandard — — 680 — — — — — 680 Total Lease Financing 94,390 63,777 78,653 85,258 35,722 92,657 — — 450,457 Current period gross charge-offs — — — — — — — — — Total Commercial Lending $ 727,396 $ 1,206,497 $ 809,070 $ 626,655 $ 1,072,780 $ 2,352,378 $ 1,473,724 $ 36,735 $ 8,305,235 Current period gross charge-offs $ — $ 84 $ 46 $ — $ 10 $ 1,392 $ 1,862 $ — $ 3,394 (continued) Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in thousands) 2026 2025 2024 2023 2022 Prior Cost Basis Cost Basis Total Residential Lending Residential Mortgage FICO: 740 and greater $ 118,185 $ 192,744 $ 132,076 $ 163,841 $ 426,056 $ 2,240,745 $ — $ — $ 3,273,647 680 - 739 13,300 21,120 19,686 27,538 62,622 267,910 — — 412,176 620 - 679 6,310 3,842 5,882 4,488 28,030 68,426 — — 116,978 550 - 619 — 2,487 1,953 1,251 2,653 22,325 — — 30,669 Less than 550 — — — 1,143 3,504 14,639 — — 19,286 No Score (3) 7,172 6,764 3,098 4,753 15,334 49,997 — — 87,118 Other (2) 2,645 22,254 7,104 11,039 13,174 40,616 7,501 — 104,333 Total Residential Mortgage 147,612 249,211 169,799 214,053 551,373 2,704,658 7,501 — 4,044,207 Current period gross charge-offs — — — — — — — — — Home Equity Line FICO: 740 and greater — — — — — — 938,399 343 938,742 680 - 739 — — — — — — 171,860 1,294 173,154 620 - 679 — — — — — — 42,343 785 43,128 550 - 619 — — — — — — 13,793 624 14,417 Less than 550 — — — — — — 11,162 30 11,192 No Score (3) — — — — — — 763 — 763 Total Home Equity Line — — — — — — 1,178,320 3,076 1,181,396 Current period gross charge-offs — — — — — — 23 — 23 Total Residential Lending $ 147,612 $ 249,211 $ 169,799 $ 214,053 $ 551,373 $ 2,704,658 $ 1,185,821 $ 3,076 $ 5,225,603 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ 23 $ — $ 23 Consumer Lending FICO: 740 and greater $ 60,328 $ 93,986 $ 54,390 $ 34,205 $ 35,359 $ 12,947 $ 99,798 $ 56 $ 391,069 680 - 739 49,967 75,396 37,212 20,373 17,060 7,497 85,511 556 293,572 620 - 679 30,116 38,437 16,008 9,023 9,299 4,877 51,080 896 159,736 550 - 619 6,036 12,294 8,393 5,766 5,734 3,529 17,345 845 59,942 Less than 550 1,239 5,754 4,578 2,826 2,807 1,750 5,927 537 25,418 No Score (3) 2,691 332 4 22 — 15 35,963 165 39,192 Other (2) 201 3,921 — — — 1,485 71,925 — 77,532 Total Consumer Lending $ 150,578 $ 230,120 $ 120,585 $ 72,215 $ 70,259 $ 32,100 $ 367,549 $ 3,055 $ 1,046,461 Current period gross charge-offs $ 60 $ 1,689 $ 1,147 $ 827 $ 532 $ 1,262 $ 4,447 $ 370 $ 10,334 Total Loans and Leases $ 1,025,586 $ 1,685,828 $ 1,099,454 $ 912,923 $ 1,694,412 $ 5,089,136 $ 3,027,094 $ 42,866 $ 14,577,299 Current period gross charge-offs $ 60 $ 1,773 $ 1,193 $ 827 $ 542 $ 2,654 $ 6,332 $ 370 $ 13,751 (1) Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score (680 and above). As of June 30, 2026, the majority of the loans in this population were current. (2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. As of June 30, 2026, the majority of the loans in this population were current. (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. GAAP to Non-GAAP Reconciliation Table 14 For the Three Months Ended For the Six Months Ended June 30, March 31, June 30, June 30, (dollars in thousands) 2026 2026 2025 2026 2025 Income Statement Data: Net income $ 73,375 $ 67,784 $ 73,247 $ 141,159 $ 132,495 Average total stockholders' equity $ 2,796,857 $ 2,788,826 $ 2,663,850 $ 2,792,863 $ 2,652,975 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible stockholders' equity $ 1,801,365 $ 1,793,334 $ 1,668,358 $ 1,797,371 $ 1,657,483 Average total assets $ 23,954,425 $ 24,083,280 $ 23,859,410 $ 24,018,496 $ 23,874,849 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible assets $ 22,958,933 $ 23,087,788 $ 22,863,918 $ 23,023,004 $ 22,879,357 Return on average total stockholders' equity (1) 10.52 % 9.86 % 11.03 % 10.19 % 10.07 % Return on average tangible stockholders' equity (non-GAAP) (1) 16.34 % 15.33 % 17.61 % 15.84 % 16.12 % Return on average total assets (1) 1.23 % 1.14 % 1.23 % 1.19 % 1.12 % Return on average tangible assets (non-GAAP) (1) 1.28 % 1.19 % 1.28 % 1.24 % 1.17 % As of As of As of As of June 30, March 31, December 31, June 30, (dollars in thousands, except per share amounts) 2026 2026 2025 2025 Balance Sheet Data: Total stockholders' equity $ 2,826,028 $ 2,767,760 $ 2,769,365 $ 2,694,545 Less: goodwill 995,492 995,492 995,492 995,492 Tangible stockholders' equity $ 1,830,536 $ 1,772,268 $ 1,773,873 $ 1,699,053 Total assets $ 23,646,049 $ 24,264,548 $ 23,955,252 $ 23,837,147 Less: goodwill 995,492 995,492 995,492 995,492 Tangible assets $ 22,650,557 $ 23,269,056 $ 22,959,760 $ 22,841,655 Shares outstanding 121,680,634 121,648,973 122,689,256 124,683,544 Total stockholders' equity to total assets 11.95 % 11.41 % 11.56 % 11.30 % Tangible stockholders' equity to tangible assets (non-GAAP) 8.08 % 7.62 % 7.73 % 7.44 % Book value per share $ 23.22 $ 22.75 $ 22.57 $ 21.61 Tangible book value per share (non-GAAP) $ 15.04 $ 14.57 $ 14.46 $ 13.63 (1) Annualized for the three and six months ended June 30, 2026 and 2025 and three months ended March 31, 2026.
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