Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 19, 2022 | |
Cover page | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-14585 | |
Entity Registrant Name | FIRST HAWAIIAN, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 99-0156159 | |
Entity Address, Address Line One | 999 Bishop Street, 29th Floor | |
Entity Address, City or Town | Honolulu | |
Entity Address, Postal Zip Code | 96813 | |
Local Phone Number | 525-7000 | |
City Area Code | 808 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | FHB | |
Security Exchange Name | NASDAQ | |
Entity Address, State or Province | HI | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 128,062,213 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0000036377 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest income | ||
Loans and lease financing | $ 103,732 | $ 110,939 |
Available-for-sale securities | 32,107 | 23,146 |
Other | 782 | 491 |
Total interest income | 136,621 | 134,576 |
Interest expense | ||
Deposits | 2,749 | 4,056 |
Short-term and long-term borrowings | 1,362 | |
Total interest expense | 2,749 | 5,418 |
Net interest income | 133,872 | 129,158 |
Provision for credit losses | (5,747) | |
Net interest income after provision for credit losses | 139,619 | 129,158 |
Noninterest income | ||
Service charges on deposit accounts | 7,501 | 6,718 |
Credit and debit card fees | 14,850 | 14,551 |
Other service charges and fees | 9,654 | 8,846 |
Trust and investment services income | 8,883 | 8,492 |
Bank-owned life insurance | (417) | 2,389 |
Other | 909 | 2,872 |
Total noninterest income | 41,380 | 43,868 |
Noninterest expense | ||
Salaries and employee benefits | 48,226 | 43,936 |
Contracted services and professional fees | 17,147 | 17,188 |
Occupancy | 7,410 | 7,170 |
Equipment | 5,977 | 5,491 |
Regulatory assessment and fees | 2,224 | 2,034 |
Advertising and marketing | 2,028 | 1,591 |
Card rewards program | 6,883 | 4,835 |
Other | 14,147 | 14,061 |
Total noninterest expense | 104,042 | 96,306 |
Income before provision for income taxes | 76,957 | 76,720 |
Provision for income taxes | 19,238 | 19,027 |
Net income | $ 57,719 | $ 57,693 |
Basic earnings per share (in dollars per share) | $ 0.45 | $ 0.44 |
Diluted earnings per share (in dollars per share) | $ 0.45 | $ 0.44 |
Basic weighted-average outstanding shares (in shares) | 127,556,242 | 129,933,104 |
Diluted weighted-average outstanding shares (in shares) | 128,121,126 | 130,589,878 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||
Net income | $ 57,719 | $ 57,693 |
Other comprehensive loss, net of tax: | ||
Net change in investment securities | (394,551) | (75,039) |
Net change in cash flow derivative hedges | (1,258) | |
Other comprehensive loss | (395,809) | (75,039) |
Total comprehensive loss | $ (338,090) | $ (17,346) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 274,022 | $ 246,716 |
Interest-bearing deposits in other banks | 1,352,138 | 1,011,753 |
Investment securities, at fair value (amortized cost: $8,733,170 as of March 31, 2022 and $8,560,733 as of December 31, 2021) | 8,062,384 | 8,428,032 |
Loans held for sale | 538 | |
Loans and leases | 12,891,743 | 12,961,999 |
Less: allowance for credit losses | 150,280 | 157,262 |
Net loans and leases | 12,741,463 | 12,804,737 |
Premises and equipment, net | 315,766 | 318,448 |
Other real estate owned and repossessed personal property | 175 | |
Accrued interest receivable | 61,561 | 63,158 |
Bank-owned life insurance | 471,401 | 471,819 |
Goodwill | 995,492 | 995,492 |
Mortgage servicing rights | 7,650 | 8,302 |
Other assets | 760,843 | 643,240 |
Total assets | 25,042,720 | 24,992,410 |
Deposits: | ||
Interest-bearing | 12,504,821 | 12,422,283 |
Noninterest-bearing | 9,765,609 | 9,393,863 |
Total deposits | 22,270,430 | 21,816,146 |
Retirement benefits payable | 134,323 | 134,491 |
Other liabilities | 352,818 | 384,861 |
Total liabilities | 22,757,571 | 22,335,498 |
Commitments and contingent liabilities (Note 11) | ||
Stockholders' equity | ||
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 140,875,595 / 127,686,307 as of March 31, 2022; issued/outstanding: 140,581,715 / 127,502,472 as of December 31, 2021) | 1,409 | 1,406 |
Additional paid-in capital | 2,530,795 | 2,527,663 |
Retained earnings | 628,642 | 604,534 |
Accumulated other comprehensive loss, net | (517,502) | (121,693) |
Treasury stock (13,189,288 shares as of March 31, 2022 and 13,079,243 shares as of December 31, 2021) | (358,195) | (354,998) |
Total stockholders' equity | 2,285,149 | 2,656,912 |
Total liabilities and stockholders' equity | $ 25,042,720 | $ 24,992,410 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Amortized Cost | $ 8,733,170 | $ 8,560,733 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, issued (in shares) | 140,875,595 | 140,581,715 |
Common stock outstanding (in shares) | 127,686,307 | 127,502,472 |
Treasury stock (in shares) | 13,189,288 | 13,079,243 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total |
Balance at Dec. 31, 2020 | $ 1,402 | $ 2,514,014 | $ 473,974 | $ 31,604 | $ (276,890) | $ 2,744,104 |
Balance (in shares) at Dec. 31, 2020 | 129,912,272 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 57,693 | 57,693 | ||||
Cash dividends declared | (33,812) | (33,812) | ||||
Equity-based awards | $ 3 | 3,034 | (437) | (2,373) | 227 | |
Equity-based awards (in shares) | 170,082 | |||||
Common stock repurchased | (9,543) | (9,543) | ||||
Common stock repurchased (in shares) | (332,464) | |||||
Other comprehensive loss, net of tax | (75,039) | (75,039) | ||||
Balance at Mar. 31, 2021 | $ 1,405 | 2,517,048 | 497,418 | (43,435) | (288,806) | 2,683,630 |
Balance (in shares) at Mar. 31, 2021 | 129,749,890 | |||||
Balance at Dec. 31, 2021 | $ 1,406 | 2,527,663 | 604,534 | (121,693) | (354,998) | $ 2,656,912 |
Balance (in shares) at Dec. 31, 2021 | 127,502,472 | 127,502,472 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 57,719 | $ 57,719 | ||||
Cash dividends declared | (33,151) | (33,151) | ||||
Equity-based awards | $ 3 | 3,132 | (460) | (3,197) | (522) | |
Equity-based awards (in shares) | 183,835 | |||||
Other comprehensive loss, net of tax | (395,809) | (395,809) | ||||
Balance at Mar. 31, 2022 | $ 1,409 | $ 2,530,795 | $ 628,642 | $ (517,502) | $ (358,195) | $ 2,285,149 |
Balance (in shares) at Mar. 31, 2022 | 127,686,307 | 127,686,307 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||
Cash dividends declared (in dollars per share) | $ 0.26 | $ 0.26 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 57,719 | $ 57,693 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | (5,747) | |
Depreciation, amortization and accretion, net | 15,581 | 13,643 |
Deferred income tax provision | 15,059 | 355 |
Stock-based compensation | 3,135 | 3,037 |
Other losses | 1,566 | 1,090 |
Originations of loans held for sale | (6,566) | (61,552) |
Proceeds from sales of loans held for sale | 6,194 | 67,067 |
Net (gains) losses on sales of loans originated for investment and held for sale | (1,486) | |
Change in assets and liabilities: | ||
Net (increase) decrease in other assets | (33,509) | 27,030 |
Net increase in other liabilities | 12,830 | 47,323 |
Net cash provided by operating activities | 66,262 | 154,200 |
Available-for-sale securities: | ||
Proceeds from maturities and principal repayments | 383,290 | 448,655 |
Proceeds from calls and sales | 970 | 145 |
Purchases | (563,925) | (1,178,760) |
Other investments: | ||
Proceeds from sales | 2,690 | 2,404 |
Purchases | (2,841) | (14,515) |
Loans: | ||
Net decrease (increase) in loans and leases resulting from originations and principal repayments | 180,505 | (45,193) |
Proceeds from sales of loans originated for investment | 220 | |
Purchases of loans | (114,677) | (558) |
Purchases of premises, equipment and software | (2,695) | (3,791) |
Proceeds from sales of other real estate owned | 176 | |
Other | (1,171) | |
Net cash used in investing activities | (116,507) | (792,564) |
Cash flows from financing activities | ||
Net increase in deposits | 454,284 | 905,958 |
Dividends paid | (33,151) | (33,812) |
Stock tendered for payment of withholding taxes | (3,197) | (2,373) |
Common stock repurchased | (9,543) | |
Net cash provided by financing activities | 417,936 | 860,230 |
Net increase in cash and cash equivalents | 367,691 | 221,866 |
Cash and cash equivalents at beginning of period | 1,258,469 | 1,040,944 |
Cash and cash equivalents at end of period | 1,626,160 | 1,262,810 |
Supplemental disclosures | ||
Interest paid | 3,545 | 8,894 |
Income taxes paid, net of income tax refunds | 2,124 | 981 |
Noncash investing and financing activities: | ||
Operating lease right-of-use assets obtained in exchange for new lease obligations | 761 | 6,864 |
Transfers from loans and leases to land held for sale | $ 1,840 | |
Transfers to loans and leases to land held for sale | $ (834) |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization and Basis of Presentation. | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation First Hawaiian, Inc. (“FHI” or the “Parent”), a bank holding company, owns 100% of the outstanding common stock of First Hawaiian Bank (“FHB” or the “Bank”), its only direct, wholly owned subsidiary. FHB offers a comprehensive suite of banking services, including loans, deposit products, wealth management, insurance, trust, retirement planning, credit card and merchant processing services, to consumer and commercial customers. The accompanying unaudited interim consolidated financial statements of First Hawaiian, Inc. and Subsidiary (the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The accompanying unaudited interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair presentation of the interim period consolidated financial information, have been made. Results of operations for interim periods are not necessarily indicative of results to be expected for the entire year. Intercompany account balances and transactions have been eliminated in consolidation. Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Although these estimates are based on management’s best knowledge of current events, actual results may differ from these estimates. Accounting Standards Adopted in 2022 In July 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-05, Leases (Topic 842), Lessors – Certain Leases with Variable Lease Payments. Recent Accounting Pronouncements The following ASUs have been issued by the FASB and are applicable to the Company in future reporting periods. In March 2022, the FASB issued ASU No. 2022-01, Derivatives and Hedging (Topic 815), Fair Value Hedging – Portfolio Layer Method. the flexibility to use any type of derivative (or combination of derivatives) by applying the multiple-layer model that aligns with its risk management strategy. Although no assets may be added to a closed portfolio once it is designated in a portfolio layer method hedge, at any time after the initial hedge designation, new hedging relationships associated with the portfolio may be designated and existing hedging relationships associated with the portfolio may be dedesignated to align with an entity’s evolving strategy for managing interest rate risk on a timely basis. Under the portfolio layer method, the basis of the portfolio assets is generally adjusted at the portfolio level rather than being allocated to individual assets within the portfolio, except when the allocation of basis adjustments is required by other areas of GAAP. The intent of this update is consistent with the FASB’s efforts to better align an entity’s financial reporting with the results of its risk management strategy and to further simplify the hedge accounting model. This update is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The Company is in the process of evaluating the impact that this new guidance may have on the Company’s consolidated financial statements. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2022 | |
Investment Securities | |
Investment Securities | 2. Investment Securities As of March 31, 2022 and December 31, 2021, investment securities consisted predominantly of the following investment categories: U.S. Treasury and debt securities Mortgage-backed securities Collateralized mortgage obligations Collateralized loan obligations Debt securities issued by states and political subdivisions As of March 31, 2022 and December 31, 2021, all of the Company’s investment securities were classified as available-for-sale. Amortized cost and fair value of securities as of March 31, 2022 and December 31, 2021 were as follows: March 31, 2022 December 31, 2021 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Cost Gains Losses Value U.S. Treasury and government agency debt securities $ 213,572 $ — $ (14,028) $ 199,544 $ 196,662 $ 125 $ (4,224) $ 192,563 Mortgage-backed securities: Residential - Government agency 128,080 — (5,115) 122,965 135,764 1,791 (291) 137,264 Residential - Government-sponsored enterprises 1,450,070 428 (88,153) 1,362,345 1,496,605 6,914 (12,419) 1,491,100 Commercial - Government agency 358,910 53 (25,874) 333,089 392,443 1,741 (6,521) 387,663 Commercial - Government-sponsored enterprises 1,426,831 — (176,997) 1,249,834 1,415,511 2,646 (48,714) 1,369,443 Collateralized mortgage obligations: Government agency 2,153,236 59 (143,514) 2,009,781 2,103,187 7,768 (31,432) 2,079,523 Government-sponsored enterprises 2,719,829 3 (210,125) 2,509,707 2,671,131 3,608 (53,695) 2,621,044 Collateralized loan obligations 221,607 25 (748) 220,884 105,245 2 — 105,247 Debt securities issued by states and political subdivisions 61,035 — (6,800) 54,235 44,185 — — 44,185 Total available-for-sale securities $ 8,733,170 $ 568 $ (671,354) $ 8,062,384 $ 8,560,733 $ 24,595 $ (157,296) $ 8,428,032 Accrued interest receivable related to available-for-sale investment securities was $15.0 million and $14.1 million as of March 31, 2022 and December 31, 2021, respectively, and is recorded separately from the amortized cost basis of investment securities on the Company’s unaudited interim consolidated balance sheets. Proceeds from calls and sales of investment securities were $1.0 million and nil, respectively, for the three months ended March 31, 2022. Proceeds from calls and sales of investment securities were $0.1 million and nil, respectively, for the three months ended March 31, 2021. The Company recorded gross realized gains of nil and gross realized losses of nil for the three months ended March 31, 2022 and 2021. The income tax benefit related to the Company’s net realized loss on the sale of investment securities was nil during both the three months ended March 31, 2022 and 2021. Gains and losses realized on sales of securities are determined using the specific identification method. Interest income from taxable investment securities was $29.2 million and $22.1 million, respectively, for the three months ended March 31, 2022 and 2021. Interest income from non-taxable investment securities was $2.9 million and $1.0 million, respectively, for the three months ended March 31, 2022 and 2021. The amortized cost and fair value of debt securities issued by the U.S. Treasury, government agencies and states and political subdivisions and collateralized loan obligations as of March 31, 2022, by contractual maturity, are shown below. Mortgage-backed securities and collateralized mortgage obligations are disclosed separately in the table below as remaining expected maturities will differ from contractual maturities as borrowers have the right to prepay obligations. March 31, 2022 Amortized Fair (dollars in thousands) Cost Value Due in one year or less $ 30,148 $ 29,944 Due after one year through five years 39,854 38,512 Due after five years through ten years 178,200 172,750 Due after ten years 248,012 233,457 496,214 474,663 Mortgage-backed securities: Residential - Government agency 128,080 122,965 Residential - Government-sponsored enterprises 1,450,070 1,362,345 Commercial - Government agency 358,910 333,089 Commercial - Government-sponsored enterprises 1,426,831 1,249,834 Total mortgage-backed securities 3,363,891 3,068,233 Collateralized mortgage obligations: Government agency 2,153,236 2,009,781 Government-sponsored enterprises 2,719,829 2,509,707 Total collateralized mortgage obligations 4,873,065 4,519,488 Total available-for-sale securities $ 8,733,170 $ 8,062,384 At March 31, 2022, pledged securities totaled $2.0 billion, of which $1.8 billion was pledged to secure public deposits and $186.8 million was pledged to secure other financial transactions. At December 31, 2021, pledged securities totaled $2.1 billion, of which $1.9 billion was pledged to secure public deposits and $193.2 million was pledged to secure other financial transactions. The Company held no securities of any single issuer, other than debt securities issued by the U.S. government, government agencies and government-sponsored enterprises, taken in the aggregate, which were in excess of 10% of stockholders’ equity as of March 31, 2022 or December 31, 2021. The following tables present the unrealized gross losses and fair values of securities in the available-for-sale portfolio by length of time that the 499 and 318 individual securities in each category have been in a continuous loss position as of March 31, 2022 and December 31, 2021, respectively. The unrealized losses on investment securities were attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. Time in Continuous Loss as of March 31, 2022 Less Than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized (dollars in thousands) Losses Fair Value Losses Fair Value Losses Fair Value U.S. Treasury and government agency debt securities $ (4,314) $ 93,417 $ (9,714) $ 106,127 $ (14,028) $ 199,544 Mortgage-backed securities: Residential - Government agency (5,115) 122,965 — — (5,115) 122,965 Residential - Government-sponsored enterprises (75,047) 1,209,850 (13,106) 106,145 (88,153) 1,315,995 Commercial - Government agency (10,635) 169,320 (15,239) 153,626 (25,874) 322,946 Commercial - Government-sponsored enterprises (71,323) 562,986 (105,674) 682,848 (176,997) 1,245,834 Collateralized mortgage obligations: Government agency (135,357) 1,904,905 (8,157) 73,679 (143,514) 1,978,584 Government-sponsored enterprises (161,761) 2,012,931 (48,364) 465,051 (210,125) 2,477,982 Collateralized loan obligations: (748) 79,181 — — (748) 79,181 Debt securities issued by states and political subdivisions (6,800) 54,235 — — (6,800) 54,235 Total available-for-sale securities with unrealized losses $ (471,100) $ 6,209,790 $ (200,254) $ 1,587,476 $ (671,354) $ 7,797,266 Time in Continuous Loss as of December 31, 2021 Less Than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized (dollars in thousands) Losses Fair Value Losses Fair Value Losses Fair Value U.S. Treasury and government agency debt securities $ (3,355) $ 134,468 $ (869) $ 16,642 $ (4,224) $ 151,110 Mortgage-backed securities: Residential - Government agency (291) 51,231 — — (291) 51,231 Residential - Government-sponsored enterprises (10,876) 1,230,104 (1,543) 32,415 (12,419) 1,262,519 Commercial - Government agency (5,239) 186,024 (1,282) 26,063 (6,521) 212,087 Commercial - Government-sponsored enterprises (22,179) 744,819 (26,535) 397,123 (48,714) 1,141,942 Collateralized mortgage obligations: Government agency (31,432) 1,441,848 — — (31,432) 1,441,848 Government-sponsored enterprises (52,551) 2,255,535 (1,144) 24,959 (53,695) 2,280,494 Total available-for-sale securities with unrealized losses $ (125,923) $ 6,044,029 $ (31,373) $ 497,202 $ (157,296) $ 6,541,231 At March 31, 2022 and December 31, 2021, the Company did not have any securities with the intent to sell and determined it was more likely than not that the Company would not be required to sell the securities prior to recovery of the amortized cost basis. As the Company had the intent and ability to hold the remaining securities in an unrealized loss position as of March 31, 2022 and December 31, 2021, each security with an unrealized loss position in the above tables has been further assessed to determine if a credit loss exists. As of March 31, 2022 and December 31, 2021, the Company did not expect any credit losses in its debt securities and no credit losses were recognized on securities during the three months ended March 31, 2022 and for the year ended December 31, 2021. As of March 31, 2022 and December 31, 2021, the Company’s available-for-sale investment securities were comprised primarily of debt, mortgage-backed securities and collateralized mortgage obligations issued by the U.S. Government, its agencies and government-sponsored enterprises, with under 4% of the available-for-sale investment securities comprised of collateralized loan obligations rated AA or better and obligations issued by local state and political subdivisions rated AA or better. For investment securities issued by the U.S. Government, its agencies and government-sponsored enterprises, management has concluded that the long history with no credit losses from these issuers indicates an expectation that nonpayment of the amortized cost basis is zero, and these securities are explicitly or implicitly fully guaranteed by the U.S. government. The U.S. government can print its own currency and its currency is routinely held by central banks and other major financial institutions. The dollar is used in international commerce, and commonly is viewed as a reserve currency, all of which qualitatively indicates that historical credit loss information should be minimally affected by current conditions and reasonable and supportable forecasts. For collateralized loan obligations and debt securities issued by local state and political subdivisions, these securities are investment grade and highly rated and carry either sufficient credit enhancement or days cash on hand to support timely payments of principal and interest. As a result, the Company does not expect any future payment defaults and has not recorded an allowance for credit losses for its available-for-sale debt securities as of March 31, 2022 and December 31, 2021. The Company holds approximately 120,000 Visa Class B restricted shares as of both March 31, 2022 and December 31, 2021. These shares continued to be carried at $0 cost basis as of both March 31, 2022 and December 31, 2021. |
Loans and Leases
Loans and Leases | 3 Months Ended |
Mar. 31, 2022 | |
Loans and Leases. | |
Loans and Leases | 3. Loans and Leases As of March 31, 2022 and December 31, 2021, loans and leases were comprised of the following: March 31, December 31, (dollars in thousands) 2022 2021 Commercial and industrial $ 1,923,534 $ 2,087,099 Commercial real estate 3,759,980 3,639,623 Construction 708,300 813,969 Residential: Residential mortgage 4,153,824 4,083,367 Home equity line 918,101 876,608 Total residential 5,071,925 4,959,975 Consumer 1,204,834 1,229,939 Lease financing 223,170 231,394 Total loans and leases $ 12,891,743 $ 12,961,999 As of March 31, 2022, residential real estate loans totaling $2.3 billion were pledged to collateralize the Company’s borrowing capacity at the Federal Home Loan Bank of Des Moines (“FHLB”), and consumer, commercial and industrial, commercial real estate and residential real estate loans totaling $1.7 billion were pledged to collateralize the Company’s borrowing capacity at the Federal Reserve Bank of San Francisco (“FRB”). As of December 31, 2021, residential real estate loans totaling $2.4 billion were pledged to collateralize the Company’s borrowing capacity at the FHLB, and consumer, commercial and industrial, commercial real estate and residential real estate loans totaling $1.7 billion were pledged to collateralize the Company’s borrowing capacity at the FRB. Residential real estate loans collateralized by properties that were in the process of foreclosure totaled $5.3 million and $4.7 million as of March 31, 2022 and December 31, 2021, respectively. In the course of evaluating the credit risk presented by a customer and the pricing that will adequately compensate the Company for assuming that risk, management may require a certain amount of collateral support. The type of collateral held varies, but may include accounts receivable, inventory, land, buildings, equipment, income-producing commercial properties and residential real estate. The Company applies the same collateral policy for loans whether they are funded immediately or on a delayed basis. The loan and lease portfolio is principally located in Hawaii and, to a lesser extent, on the U.S. Mainland, Guam and Saipan. The risk inherent in the portfolio depends upon both the economic strength and stability of the state or territories, which affects property values, and the financial strength and creditworthiness of the borrowers. |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2022 | |
Allowance for Credit Losses | |
Allowance for Credit Losses | 4. Allowance for Credit Losses The Company maintains the allowance for credit losses for loans and leases (the “ACL”) that is deducted from the amortized cost basis of loans and leases to present the net carrying value of loans and leases expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount of loans and leases. The Company also maintains an estimated reserve for unfunded commitments on the unaudited interim consolidated balance sheets. The reserve for unfunded commitments is reduced in the period in which the off-balance sheet financial instruments expire, loan funding occurs, or is otherwise settled. Rollforward of the Allowance for Credit Losses The following presents the activity in the ACL by class of loans and leases for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 Commercial Lending Residential Lending Commercial Commercial Home and Real Lease Residential Equity (dollars in thousands) Industrial Estate Construction Financing Mortgage Line Consumer Total Allowance for credit losses: Balance at beginning of period $ 20,080 $ 42,951 $ 9,773 $ 1,659 $ 34,364 $ 5,642 $ 42,793 $ 157,262 Charge-offs (706) — — — — (43) (4,109) (4,858) Recoveries 53 14 — — 16 28 2,148 2,259 Increase (decrease) in Provision (267) 2,273 (865) (297) (3,492) (543) (1,192) (4,383) Balance at end of period $ 19,160 $ 45,238 $ 8,908 $ 1,362 $ 30,888 $ 5,084 $ 39,640 $ 150,280 Three Months Ended March 31, 2021 Commercial Lending Residential Lending Commercial Commercial Home and Real Lease Residential Equity (dollars in thousands) Industrial Estate Construction Financing Mortgage Line Consumer Total Allowance for credit losses: Balance at beginning of year $ 24,711 $ 58,123 $ 10,039 $ 3,298 $ 40,461 $ 7,163 $ 64,659 $ 208,454 Charge-offs (963) (66) — — (98) — (6,541) (7,668) Recoveries 215 3 166 — 17 24 2,655 3,080 Increase (decrease) in Provision 3,359 (6,369) 347 (101) (1,909) (519) 1,692 (3,500) Balance at end of period $ 27,322 $ 51,691 $ 10,552 $ 3,197 $ 38,471 $ 6,668 $ 62,465 $ 200,366 Rollforward of the Reserve for Unfunded Commitments The following presents the activity in the Reserve for Unfunded Commitments for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 Commercial Lending Residential Lending Commercial Commercial Home and Real Lease Residential Equity (dollars in thousands) Industrial Estate Construction Financing Mortgage Line Consumer Total Reserve for unfunded commitments: Balance at beginning of period $ 8,615 $ 2,114 $ 8,963 $ — $ 15 $ 10,546 $ 69 $ 30,322 Increase (decrease) in Provision 693 (325) (917) — (12) (780) (23) (1,364) Balance at end of period $ 9,308 $ 1,789 $ 8,046 $ — $ 3 $ 9,766 $ 46 $ 28,958 Three Months Ended March 31, 2021 Commercial Lending Residential Lending Commercial Commercial Home and Real Lease Residential Equity (dollars in thousands) Industrial Estate Construction Financing Mortgage Line Consumer Total Reserve for unfunded commitments: Balance at beginning of period $ 11,719 $ 1,328 $ 9,037 $ — $ 2 $ 8,452 $ 65 $ 30,603 Increase (decrease) in Provision 4,410 (216) (724) — (2) 48 (16) 3,500 Balance at end of period $ 16,129 $ 1,112 $ 8,313 $ — $ — $ 8,500 $ 49 $ 34,103 Credit Quality Information The Company performs an internal loan review and grading or scoring procedures on an ongoing basis. The review provides management with periodic information as to the quality of the loan portfolio and effectiveness of the Company’s lending policies and procedures. The objective of the loan review and grading or scoring procedures is to identify, in a timely manner, existing or emerging credit quality issues so that appropriate steps can be initiated to avoid or minimize future losses. Loans and leases subject to grading primarily include: commercial and industrial loans, commercial real estate loans, construction loans and lease financing. Other loans subject to grading include installment loans to businesses or individuals for business and commercial purposes, overdraft lines of credit, commercial credit cards, and other credits as may be determined. Credit quality indicators for internally graded loans and leases are generally updated on an annual basis or on a quarterly basis for those loans and leases deemed to be of potentially higher risk. An internal credit risk rating system is used to determine loan grade and is based on borrower credit risk and transactional risk. The loan grading process is a mechanism used to determine the risk of a particular borrower and is based on the following factors of a borrower: character, earnings and operating cash flow, asset and liability structure, debt capacity, management and controls, borrowing entity, and industry and operating environment. Pass Special Mention Substandard Doubtful Loss Loans that are primarily monitored for credit quality using FICO scores include: residential mortgage loans, home equity lines and consumer loans. FICO scores are calculated primarily based on a consideration of payment history, the current amount of debt, the length of credit history available, a recent history of new sources of credit and the mix of credit type. FICO scores are updated on a monthly, quarterly or bi-annual basis, depending on the product type. The amortized cost basis by year of origination and credit quality indicator of the Company’s loans and leases as of March 31, 2022 was as follows: Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans Amortized Amortized (dollars in thousands) 2022 2021 2020 2019 2018 Prior Cost Basis Cost Basis Total Commercial Lending Commercial and Industrial Risk rating: Pass $ 158,853 $ 483,473 $ 98,061 $ 184,897 $ 79,810 $ 166,075 $ 594,007 $ 31,048 $ 1,796,224 Special Mention 2,876 356 3,898 3,983 52 5,594 1,601 867 19,227 Substandard — 337 1,296 1,776 13,251 757 15,877 138 33,432 Other (1) 4,028 10,510 6,171 6,450 3,516 1,664 42,312 — 74,651 Total Commercial and Industrial 165,757 494,676 109,426 197,106 96,629 174,090 653,797 32,053 1,923,534 Commercial Real Estate Risk rating: Pass 240,807 682,346 351,893 523,735 471,899 1,291,495 77,724 14,752 3,654,651 Special Mention — — — 47,897 473 39,064 696 — 88,130 Substandard — — — — 1,757 15,280 4 — 17,041 Other (1) — — — — — 158 — — 158 Total Commercial Real Estate 240,807 682,346 351,893 571,632 474,129 1,345,997 78,424 14,752 3,759,980 Construction Risk rating: Pass 6,160 167,645 118,526 136,209 112,919 89,172 19,470 — 650,101 Special Mention — — — 244 705 353 — — 1,302 Substandard — — — — 357 827 — — 1,184 Other (1) 7,871 29,932 5,774 2,957 3,922 4,435 822 — 55,713 Total Construction 14,031 197,577 124,300 139,410 117,903 94,787 20,292 — 708,300 Lease Financing Risk rating: Pass 3,913 31,974 57,192 45,698 8,813 69,286 — — 216,876 Special Mention — 479 2,672 1,360 12 20 — — 4,543 Substandard — — 270 123 15 1,343 — — 1,751 Total Lease Financing 3,913 32,453 60,134 47,181 8,840 70,649 — — 223,170 Total Commercial Lending $ 424,508 $ 1,407,052 $ 645,753 $ 955,329 $ 697,501 $ 1,685,523 $ 752,513 $ 46,805 $ 6,614,984 (continued) Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in thousands) 2022 2021 2020 2019 2018 Prior Cost Basis Cost Basis Total Residential Lending Residential Mortgage FICO: 740 and greater $ 185,434 $ 1,096,789 $ 615,500 $ 264,419 $ 183,368 $ 1,012,447 $ — $ — $ 3,357,957 680 - 739 26,812 128,172 72,766 44,872 25,913 159,950 — — 458,485 620 - 679 3,088 13,196 12,304 5,995 5,021 39,145 — — 78,749 550 - 619 — 2,267 1,570 720 731 8,847 — — 14,135 Less than 550 2,116 228 60 — 82 4,098 — — 6,584 No Score (3) 6,550 15,806 7,676 13,968 17,545 56,444 — — 117,989 Other (2) 18,485 30,872 16,042 9,704 10,810 32,600 43 1,369 119,925 Total Residential Mortgage 242,485 1,287,330 725,918 339,678 243,470 1,313,531 43 1,369 4,153,824 Home Equity Line FICO: 740 and greater — — — — — — 705,570 1,892 707,462 680 - 739 — — — — — — 147,290 3,202 150,492 620 - 679 — — — — — — 39,370 2,129 41,499 550 - 619 — — — — — — 10,310 1,426 11,736 Less than 550 — — — — — — 1,482 494 1,976 No Score (3) — — — — — — 4,936 — 4,936 Total Home Equity Line — — — — — — 908,958 9,143 918,101 Total Residential Lending 242,485 1,287,330 725,918 339,678 243,470 1,313,531 909,001 10,512 5,071,925 Consumer Lending FICO: 740 and greater 60,821 145,550 74,436 68,970 46,731 24,261 112,298 217 533,284 680 - 739 26,319 87,933 50,976 48,120 28,498 18,340 68,407 647 329,240 620 - 679 6,222 39,016 19,677 25,307 16,453 14,473 30,462 1,038 152,648 550 - 619 292 7,159 7,314 11,776 8,904 8,485 10,352 1,129 55,411 Less than 550 53 2,003 3,445 5,732 2,939 3,089 3,166 471 20,898 No Score (3) 280 458 9 53 35 52 35,063 337 36,287 Other (2) 502 4,247 363 1,691 4 2,181 68,078 — 77,066 Total Consumer Lending 94,489 286,366 156,220 161,649 103,564 70,881 327,826 3,839 1,204,834 Total Loans and Leases $ 761,482 $ 2,980,748 $ 1,527,891 $ 1,456,656 $ 1,044,535 $ 3,069,935 $ 1,989,340 $ 61,156 $ 12,891,743 (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. (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. (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. The amortized cost basis by year of origination and credit quality indicator of the Company’s loans and leases as of December 31, 2021 was as follows: Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans Amortized Amortized (dollars in thousands) 2021 2020 2019 2018 2017 Prior Cost Basis Cost Basis Total Commercial Lending Commercial and Industrial Risk rating: Pass $ 623,098 $ 129,665 $ 223,388 $ 88,409 $ 29,380 $ 168,591 $ 644,947 $ 40,193 $ 1,947,671 Special Mention 397 4,382 4,213 12,552 974 5,313 4,804 986 33,621 Substandard 354 1,380 1,951 1,285 60 3,551 17,893 1,043 27,517 Other (1) 13,277 7,070 7,741 4,453 1,995 370 43,384 — 78,290 Total Commercial and Industrial 637,126 142,497 237,293 106,699 32,409 177,825 711,028 42,222 2,087,099 Commercial Real Estate Risk rating: Pass 693,370 338,140 533,887 487,739 415,186 940,732 78,479 14,891 3,502,424 Special Mention — — 48,499 7,470 25,513 30,255 7,600 — 119,337 Substandard — — — 1,776 164 15,303 459 — 17,702 Other (1) — — — — — 160 — — 160 Total Commercial Real Estate 693,370 338,140 582,386 496,985 440,863 986,450 86,538 14,891 3,639,623 Construction Risk rating: Pass 154,558 107,767 210,314 155,311 62,770 48,021 22,859 — 761,600 Special Mention — — 244 707 — 356 — — 1,307 Substandard — — — 363 — 839 — — 1,202 Other (1) 26,835 8,875 4,317 4,308 2,684 2,048 793 — 49,860 Total Construction 181,393 116,642 214,875 160,689 65,454 51,264 23,652 — 813,969 Lease Financing Risk rating: Pass 33,980 60,650 48,236 9,449 15,009 57,130 — — 224,454 Special Mention 501 2,702 1,506 311 153 — — — 5,173 Substandard — 270 140 16 871 470 — — 1,767 Total Lease Financing 34,481 63,622 49,882 9,776 16,033 57,600 — — 231,394 Total Commercial Lending $ 1,546,370 $ 660,901 $ 1,084,436 $ 774,149 $ 554,759 $ 1,273,139 $ 821,218 $ 57,113 $ 6,772,085 (continued) Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in thousands) 2021 2020 2019 2018 2017 Prior Cost Basis Cost Basis Total Residential Lending Residential Mortgage FICO: 740 and greater $ 1,101,958 $ 635,061 $ 286,993 $ 198,622 $ 251,906 $ 829,175 $ — $ — $ 3,303,715 680 - 739 140,997 81,590 45,163 27,315 32,855 125,906 — — 453,826 620 - 679 15,781 11,943 5,268 10,149 9,069 37,404 — — 89,614 550 - 619 1,735 873 698 533 2,033 7,475 — — 13,347 Less than 550 — — — 345 2,603 2,838 — — 5,786 No Score (3) 18,882 7,938 15,051 18,107 17,333 42,185 — — 119,496 Other (2) 25,625 16,263 10,242 11,297 16,242 17,152 44 718 97,583 Total Residential Mortgage 1,304,978 753,668 363,415 266,368 332,041 1,062,135 44 718 4,083,367 Home Equity Line FICO: 740 and greater — — — — — — 671,566 1,873 673,439 680 - 739 — — — — — — 141,889 3,968 145,857 620 - 679 — — — — — — 37,815 2,500 40,315 550 - 619 — — — — — — 9,090 948 10,038 Less than 550 — — — — — — 2,574 68 2,642 No Score (3) — — — — — — 4,317 — 4,317 Total Home Equity Line — — — — — — 867,251 9,357 876,608 Total Residential Lending 1,304,978 753,668 363,415 266,368 332,041 1,062,135 867,295 10,075 4,959,975 Consumer Lending FICO: 740 and greater 155,929 83,337 79,617 56,707 24,525 8,067 117,843 209 526,234 680 - 739 93,214 56,327 55,126 34,049 17,527 6,315 69,366 707 332,631 620 - 679 41,671 21,986 28,491 19,403 12,952 5,324 31,165 1,175 162,167 550 - 619 7,836 8,265 13,265 10,497 7,469 3,244 10,359 1,089 62,024 Less than 550 2,272 3,867 6,646 3,484 2,739 1,175 3,195 536 23,914 No Score (3) 481 19 56 40 65 2 35,414 320 36,397 Other (2) 4,737 365 1,712 17 2,182 31 77,528 — 86,572 Total Consumer Lending 306,140 174,166 184,913 124,197 67,459 24,158 344,870 4,036 1,229,939 Total Loans and Leases $ 3,157,488 $ 1,588,735 $ 1,632,764 $ 1,164,714 $ 954,259 $ 2,359,432 $ 2,033,383 $ 71,224 $ 12,961,999 (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. (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. (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. There were no loans and leases graded as Loss as of March 31, 2022 and December 31, 2021. The amortized cost basis of revolving loans that were converted to term loans during the three months ended March 31, 2022 and 2021 was as follows: Three Months Ended (dollars in thousands) March 31, 2022 Commercial and industrial $ 203 Home equity line 1,015 Consumer 354 Total Revolving Loans Converted to Term Loans During the Period $ 1,572 Three Months Ended (dollars in thousands) March 31, 2021 Commercial and industrial $ 229 Home equity line 1,079 Consumer 493 Total Revolving Loans Converted to Term Loans During the Period $ 1,801 Past-Due Status The Company continually updates its aging analysis for loans and leases to monitor the migration of loans and leases into past due categories. The Company considers loans and leases that are delinquent for 30 days or more to be past due. As of March 31, 2022 and December 31, 2021, the aging analysis of the amortized cost basis of the Company’s past due loans and leases was as follows: March 31, 2022 Past Due Loans and Greater Leases Past Than or Due 90 Days 30-59 60-89 Equal to or More and Days Days 90 Days Total Total Loans Still Accruing (dollars in thousands) Past Due Past Due Past Due Past Due Current and Leases Interest Commercial and industrial $ 2,825 $ 2,351 $ 1,160 $ 6,336 $ 1,917,198 $ 1,923,534 $ 591 Commercial real estate 2,503 — 727 3,230 3,756,750 3,759,980 — Construction 247 — — 247 708,053 708,300 — Lease financing — — 75 75 223,095 223,170 — Residential mortgage 1,229 1,301 5,665 8,195 4,145,629 4,153,824 13 Home equity line 1,640 589 2,252 4,481 913,620 918,101 2,252 Consumer 14,144 2,589 1,588 18,321 1,186,513 1,204,834 1,588 Total $ 22,588 $ 6,830 $ 11,467 $ 40,885 $ 12,850,858 $ 12,891,743 $ 4,444 December 31, 2021 Past Due Loans and Greater Leases Past Than or Due 90 Days 30-59 60-89 Equal to or More and Days Days 90 Days Total Total Loans Still Accruing (dollars in thousands) Past Due Past Due Past Due Past Due Current and Leases Interest Commercial and industrial $ 1,195 $ 1,195 $ 1,318 $ 3,708 $ 2,083,391 $ 2,087,099 $ 740 Commercial real estate 631 — — 631 3,638,992 3,639,623 — Construction 162 — — 162 813,807 813,969 — Lease financing — — — — 231,394 231,394 — Residential mortgage 3,030 1,002 5,617 9,649 4,073,718 4,083,367 987 Home equity line 1,538 538 3,681 5,757 870,851 876,608 3,681 Consumer 16,534 3,366 1,800 21,700 1,208,239 1,229,939 1,800 Total $ 23,090 $ 6,101 $ 12,416 $ 41,607 $ 12,920,392 $ 12,961,999 $ 7,208 Nonaccrual Loans and Leases The Company generally places a loan or lease on nonaccrual status when management believes that collection of principal or interest has become doubtful or when a loan or lease becomes 90 days past due as to principal or interest, unless it is well secured and in the process of collection. The Company charges off a loan or lease when facts indicate that the loan or lease is considered uncollectible. The amortized cost basis of loans and leases on nonaccrual status as of March 31, 2022 and December 31, 2021 and the amortized cost basis of loans and leases on nonaccrual status with no ACL as of March 31, 2022 and December 31, 2021 were as follows: March 31, 2022 Nonaccrual Loans and Leases With No Nonaccrual Allowance Loans (dollars in thousands) for Credit Losses and Leases Commercial and industrial $ — $ 707 Commercial real estate 727 727 Lease financing — 75 Residential mortgage 2,163 7,092 Total Nonaccrual Loans and Leases $ 2,890 $ 8,601 December 31, 2021 Nonaccrual Loans and Leases With No Nonaccrual Allowance Loans (dollars in thousands) for Credit Losses and Leases Commercial and industrial $ — $ 718 Commercial real estate 727 727 Residential mortgage 1,192 5,637 Total Nonaccrual Loans and Leases $ 1,919 $ 7,082 For the three months ended March 31, 2022 and 2021, the Company recognized interest income of nil and $0.1 million, respectively, on nonaccrual loans and leases. Furthermore, for the three months ended March 31, 2022 and 2021, the amount of accrued interest receivables written off by reversing interest income was $0.2 million and $0.4 million, respectively. Collateral-Dependent Loans and Leases Collateral-dependent loans and leases are those for which repayment (on the basis of the Company’s assessment as of the reporting date) is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. As of March 31, 2022 and December 31, 2021, the amortized cost basis of collateral-dependent loans were $8.4 million and $7.5 million, respectively. As of both March 31, 2022 and December 31, 2021, these loans were primarily collateralized by residential real estate property. As of both March 31, 2022 and December 31, 2021, the fair value of collateral on substantially all collateral-dependent loans were significantly in excess of their amortized cost basis. Modifications Commercial and industrial loans modified in a TDR may involve temporary interest-only payments, term and amortization extensions, and converting revolving credit lines to term loans. Modifications of commercial real estate and construction loans in a TDR may involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor. Modifications of construction loans in a TDR may also involve extending the interest-only payment period. Interest continues to accrue on the missed payments and as a result, the effective yield on the loan remains unchanged. Residential real estate loans modified in a TDR may be comprised of loans where monthly payments are lowered to accommodate the borrowers’ financial needs for a period of time, including extended interest-only periods and re-amortization of the balance. Modifications of consumer loans in a TDR may involve temporary or permanent reduced payments, temporary interest-only payments and below-market interest rates. Loans modified in a TDR may already be on nonaccrual status and in some cases, partial charge-offs may have already been taken against the outstanding loan balance. Loans modified in a TDR are evaluated for impairment. As a result, this may have a financial effect of increasing the specific ACL associated with the loan. An ACL for impaired commercial loans, including commercial real estate and construction loans, that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or if the loan is collateral-dependent, the estimated fair value of the collateral, less any selling costs. An ACL for impaired residential real estate loans that have been modified in a TDR is measured based on the estimated fair value of the collateral, less any selling costs. Management exercises significant judgment in developing these estimates. The following presents, by class, information related to loans modified in a TDR during the three months ended March 31, 2022 and 2021: Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Number of Recorded Related Number of Recorded Related (dollars in thousands) Contracts (1) Investment (2) ACL Contracts (1) Investment (2) ACL Commercial and industrial — $ — $ — 17 $ 2,945 $ 1,648 Construction — — — 2 716 342 Residential mortgage — — — 10 4,916 374 Consumer 144 1,759 202 1,690 15,763 11,832 Total 144 $ 1,759 $ 202 1,719 $ 24,340 $ 14,196 (1) The number of contracts does not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period. (2) The recorded investment balances reflect all partial paydowns and charge-offs since the modification date and do not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period. The above loans were modified in a TDR through an extension of maturity dates, temporary interest-only payments, temporary payment deferrals, reduced payments, converting revolving credit lines to term loans or below-market interest rates. The Company had commitments to extend credit, standby letters of credit, and commercial letters of credit totaling $6.7 billion as of both March 31, 2022 and December 31, 2021. Of the $6.7 billion at March 31, 2022, there were commitments of $0.1 million to lend additional funds related to borrowers who had loan terms modified in a TDR. Of the $6.7 billion at December 31, 2021, there were commitments of $0.2 million to lend additional funds related to borrowers who had loan terms modified in a TDR. The following table presents, by class, loans modified in TDRs that have defaulted in the current period within 12 months of their permanent modification date for the periods indicated. The Company is reporting these defaulted TDRs based on a payment default definition of 30 days past due: Three Months Ended March 31, 2022 2021 Number of Recorded Number of Recorded (dollars in Contracts (1) Investment (2) Contracts (1) Investment (2) Commercial and industrial 1 $ 216 2 $ 397 Construction — — 1 361 Residential mortgage — — 1 372 Consumer 142 1,991 93 1,068 Total 143 $ 2,207 97 $ 2,198 (1) The numb |
Mortgage Servicing Rights
Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2022 | |
Mortgage Servicing Rights | |
Mortgage Servicing Rights | 5. Mortgage Servicing Rights Mortgage servicing activities include collecting principal, interest, tax, and insurance payments from borrowers while accounting for and remitting payments to investors, taxing authorities, and insurance companies. The Company also monitors delinquencies and administers foreclosure proceedings. Mortgage loan servicing income is recorded in noninterest income as a part of other service charges and fees and amortization of the servicing assets is recorded in noninterest income as part of other income. The unpaid principal amount of residential real estate loans serviced for others was $1.6 billion and $1.7 billion as of March 31, 2022 and December 31, 2021, respectively. Servicing fees include contractually specified fees, late charges, and ancillary fees, and were $1.0 million and $1.3 million for the three months ended March 31, 2022 and 2021, respectively. Amortization of mortgage servicing rights (“MSRs”) was $0.7 million and $0.5 million for three months ended March 31, 2022 and 2021, respectively. The estimated future amortization expenses for MSRs over the next five years are as follows: Estimated (dollars in thousands) Amortization Under one year $ 1,296 One to two years 1,094 Two to three years 928 Three to four years 787 Four to five years 672 The details of the Company’s MSRs are presented below: March 31, December 31, (dollars in thousands) 2022 2021 Gross carrying amount $ 69,187 $ 69,103 Less: accumulated amortization 61,537 60,801 Net carrying value $ 7,650 $ 8,302 The following table presents changes in amortized MSRs for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, (dollars in thousands) 2022 2021 Balance at beginning of period $ 8,302 $ 10,731 Originations 84 683 Amortization (736) (545) Balance at end of period $ 7,650 $ 10,869 Fair value of amortized MSRs at beginning of period $ 12,243 $ 14,029 Fair value of amortized MSRs at end of period $ 13,585 $ 14,921 MSRs are evaluated for impairment if events and circumstances indicate a possible impairment. No impairment of MSRs was recorded for the three months ended March 31, 2022 and 2021. The quantitative assumptions used in determining the lower of cost or fair value of the Company’s MSRs as of March 31, 2022 and December 31, 2021 were as follows: March 31, 2022 December 31, 2021 Weighted Weighted Range Average Range Average Conditional prepayment rate 10.93 % - 24.10 % 11.19 % 13.77 % - 25.19 % 14.61 % Life in years (of the MSR) 2.18 - 6.09 4.70 1.99 - 5.31 5.03 Weighted-average coupon rate 3.56 % - 6.47 % 3.69 % 3.58 % - 6.56 % 3.71 % Discount rate 10.00 % - 10.01 % 10.00 % 10.00 % - 10.01 % 10.00 % The sensitivities surrounding MSRs are expected to have an immaterial impact on fair value. |
Transfers of Financial Assets
Transfers of Financial Assets | 3 Months Ended |
Mar. 31, 2022 | |
Transfers of Financial Assets | |
Transfers of Financial Assets | 6. Transfers of Financial Assets The Company’s transfers of financial assets with continuing interest may include pledges of collateral to secure public deposits and repurchase agreements, FHLB and FRB borrowing capacity, automated clearing house (“ACH”) transactions and interest rate swaps. For public deposits and repurchase agreements, the Company enters into bilateral agreements with the entity to pledge investment securities as collateral in the event of default. The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default. The counterparty has the right to sell or repledge the investment securities. The Company is required by the counterparty to maintain adequate collateral levels. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional investment securities. For transfers of assets with the FHLB and the FRB, the Company enters into bilateral agreements to pledge loans as collateral to secure borrowing capacity. For ACH transactions, the Company enters into bilateral agreements to collateralize possible daylight overdrafts. For interest rate swaps, the Company enters into bilateral agreements to pledge collateral when either party is in a negative fair value position to mitigate counterparty credit risk. Counterparties to ACH transactions, certain interest rate swaps, the FHLB and the FRB do not have the right to sell or repledge the collateral. The carrying amounts of the assets pledged as collateral to secure public deposits, borrowing arrangements and other transactions as of March 31, 2022 and December 31, 2021 were as follows: (dollars in thousands) March 31, 2022 December 31, 2021 Public deposits $ 1,783,882 $ 1,913,369 Federal Home Loan Bank 2,269,584 2,380,042 Federal Reserve Bank 1,725,291 1,724,279 ACH transactions 112,800 115,038 Interest rate swaps 20,889 48,430 Total $ 5,912,446 $ 6,181,158 As of March 31, 2022 and December 31, 2021, the borrowing capacity with the FHLB was $1.7 billion and $1.8 billion, respectively. The FHLB fixed-rate advances and remaining borrowing capacity were secured by residential real estate loan collateral as of March 31, 2022 and December 31, 2021. As of March 31, 2022 and December 31, 2021, the Company had an undrawn line of credit of $1.3 billion and $1.1 billion, respectively, from the FRB. The borrowing capacity with the FRB was secured by consumer, commercial and industrial, commercial real estate and residential real estate loans as of March 31, 2022 and December 31, 2021. As the Company did not enter into reverse repurchase agreements or repurchase agreements, no collateral was accepted or pledged as of March 31, 2022 and December 31, 2021. In addition, no debt was extinguished by in-substance defeasance. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2022 | |
Deposits | |
Deposits | 7. Deposits As of March 31, 2022 and December 31, 2021, deposits were categorized as interest-bearing or noninterest-bearing as follows: (dollars in thousands) March 31, 2022 December 31, 2021 U.S.: Interest-bearing $ 11,642,353 $ 11,553,298 Noninterest-bearing 8,855,088 8,498,187 Foreign: Interest-bearing 862,468 868,985 Noninterest-bearing 910,521 895,676 Total deposits $ 22,270,430 $ 21,816,146 The following table presents the maturity distribution of time certificates of deposit as of March 31, 2022: Under $250,000 (dollars in thousands) $250,000 or More Total Three months or less $ 228,660 $ 155,546 $ 384,206 Over three through six months 152,926 119,732 272,658 Over six through twelve months 360,870 409,218 770,088 One to two years 80,002 20,850 100,852 Two to three years 50,970 10,126 61,096 Three to four years 41,724 19,291 61,015 Four to five years 42,545 9,206 51,751 Thereafter 172 — 172 Total $ 957,869 $ 743,969 $ 1,701,838 Time certificates of deposit in denominations of $250,000 or more, in the aggregate, were $0.7 billion and $0.8 billion as of March 31, 2022 and December 31, 2021, respectively. Overdrawn deposit accounts are classified as loans and totaled $1.7 million and $2.1 million as of March 31, 2022 and December 31, 2021, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | 8. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is defined as the revenues, expenses, gains and losses that are included in comprehensive loss but excluded from net income. The Company’s significant items of accumulated other comprehensive loss are pension and other benefits, net unrealized gains or losses on investment securities and net unrealized gains or losses on cash flow derivative hedges. Changes in accumulated other comprehensive loss for the three months ended March 31, 2022 and 2021 are presented below: Income Tax Pre-tax Benefit Net of (dollars in thousands) Amount (Expense) Tax Accumulated other comprehensive loss at December 31, 2021 $ (165,967) $ 44,274 $ (121,693) Three months ended March 31, 2022 Investment securities: Unrealized net losses arising during the period (538,085) 143,534 (394,551) Net change in investment securities (538,085) 143,534 (394,551) Cash flow derivative hedges: Unrealized net losses on cash flow derivative hedges arising during the period (1,716) 458 (1,258) Net change in cash flow derivative hedges (1,716) 458 (1,258) Other comprehensive loss (539,801) 143,992 (395,809) Accumulated other comprehensive loss at March 31, 2022 $ (705,768) $ 188,266 $ (517,502) Income Tax Pre-tax Benefit Net of (dollars in thousands) Amount (Expense) Tax Accumulated other comprehensive income at December 31, 2020 $ 43,098 $ (11,494) $ 31,604 Three months ended March 31, 2021 Investment securities: Unrealized net losses arising during the period (102,336) 27,297 (75,039) Net change in investment securities (102,336) 27,297 (75,039) Other comprehensive loss (102,336) 27,297 (75,039) Accumulated other comprehensive loss at March 31, 2021 $ (59,238) $ 15,803 $ (43,435) The following table summarizes changes in accumulated other comprehensive loss, net of tax, for the periods indicated: Pensions Accumulated and Cash Flow Other Other Investment Derivative Comprehensive (dollars in thousands) Benefits Securities Hedges Loss Three Months Ended March 31, 2022 Balance at beginning of year $ (24,390) $ (97,303) $ — $ (121,693) Other comprehensive loss — (394,551) (1,258) (395,809) Balance at end of period $ (24,390) $ (491,854) $ (1,258) $ (517,502) Three Months Ended March 31, 2021 Balance at beginning of year $ (31,737) $ 63,341 $ — $ 31,604 Other comprehensive loss — (75,039) — (75,039) Balance at end of period $ (31,737) $ (11,698) $ — $ (43,435) |
Regulatory Capital Requirements
Regulatory Capital Requirements | 3 Months Ended |
Mar. 31, 2022 | |
Regulatory Capital Requirements | |
Regulatory Capital Requirements | 9. Regulatory Capital Requirements Federal and state laws and regulations limit the amount of dividends the Company may declare or pay. The Company depends primarily on dividends from FHB as the source of funds for the Company’s payment of dividends. The Company and the Bank are subject to various regulatory capital requirements imposed by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s operating activities and financial condition. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of its assets and certain off-balance sheet items. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The table below sets forth those ratios at March 31, 2022 and December 31, 2021: First Hawaiian Minimum Well- First Hawaiian, Inc. Bank Capital Capitalized (dollars in thousands) Amount Ratio Amount Ratio Ratio (1) Ratio (1) March 31, 2022: Common equity tier 1 capital to risk-weighted assets $ 1,806,115 12.27 % $ 1,795,292 12.19 % 4.50 % 6.50 % Tier 1 capital to risk-weighted assets 1,806,115 12.27 % 1,795,292 12.19 % 6.00 % 8.00 % Total capital to risk-weighted assets 1,985,353 13.48 % 1,974,530 13.41 % 8.00 % 10.00 % Tier 1 capital to average assets (leverage ratio) 1,806,115 7.50 % 1,795,292 7.46 % 4.00 % 5.00 % December 31, 2021: Common equity tier 1 capital to risk-weighted assets $ 1,783,113 12.24 % $ 1,769,214 12.14 % 4.50 % 6.50 % Tier 1 capital to risk-weighted assets 1,783,113 12.24 % 1,769,214 12.14 % 6.00 % 8.00 % Total capital to risk-weighted assets 1,965,280 13.49 % 1,951,377 13.40 % 8.00 % 10.00 % Tier 1 capital to average assets (leverage ratio) 1,783,113 7.24 % 1,769,214 7.18 % 4.00 % 5.00 % (1) As defined by the regulations issued by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation (“FDIC”). Federal regulations require a 2.5% capital conservation buffer designed to absorb losses during periods of economic stress. The capital conservation buffer is composed entirely of CET1, on top of these minimum risk weighted asset ratios, effectively resulting in minimum ratios of (i) 7% CET1 to risk-weighted assets, (ii) 8.5% Tier 1 capital to risk-weighted assets, and (iii) 10.5% total capital to risk-weighted assets. As of March 31, 2022, under the bank regulatory capital guidelines, the Company and Bank were both classified as well-capitalized. Management is not aware of any conditions or events that have occurred since March 31, 2022, to change the capital adequacy category of the Company or the Bank. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 10. Derivative Financial Instruments The Company enters into derivative contracts primarily to manage its interest rate risk, as well as for customer accommodation purposes. Derivatives used for risk management purposes consist of interest rate swaps that are designated as a fair value hedge. The derivatives are recognized on the unaudited interim consolidated balance sheets as either assets or liabilities at fair value. Derivatives entered into for customer accommodation purposes consist of various free-standing interest rate derivative products and foreign exchange contracts. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The following table summarizes notional amounts and fair values of derivatives held by the Company as of March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 Fair Value Fair Value Notional Asset Liability Notional Asset Liability (dollars in thousands) Amount Derivatives (1) Derivatives (2) Amount Derivatives (1) Derivatives (2) Derivatives designated as hedging instruments: Interest rate swaps $ 267,500 $ 301 $ (1,716) $ 67,500 $ — $ (1,211) Derivatives not designated as hedging instruments: Interest rate swaps 2,908,144 16,107 (11,697) 2,827,582 50,898 — Visa derivative 100,887 — (5,794) 105,916 — (5,530) Interest rate caps and floors — — — 148,800 27 (27) Foreign exchange contracts 1,005 6 — 217 — — (1) The positive fair values of derivative assets are included in other assets. (2) The negative fair values of derivative liabilities are included in other liabilities. Certain interest rate swaps noted above, are cleared through clearinghouses, rather than directly with counterparties. Those transactions cleared through a clearinghouse require initial margin collateral and variation margin payments depending on the contracts being in a net asset or liability position. As of March 31, 2022, the amount of initial margin cash collateral received by the Company was $1.5 million. As of December 31, 2021, the amount of initial margin cash collateral received by the Company was $1.7 million. As of March 31, 2022 and December 31, 2021, the variation margin was $4.4 million and $50.9 million, respectively. As of March 31, 2022, the Company pledged $29.9 million in financial instruments and received $9.1 million in cash as collateral for interest rate swaps. As of December 31, 2021, the Company pledged $30.3 million in financial instruments and $18.1 million in cash as collateral for interest rate swaps. As of March 31, 2022 and December 31, 2021, the cash collateral includes the excess initial margin for interest rate swaps cleared through clearinghouses and cash collateral for interest rate swaps with financial institution counterparties. Fair Value Hedges To manage the risk related to the Company’s net interest margin, interest rate swaps are utilized to hedge certain fixed-rate loans. These swaps have maturity, amortization and prepayment features that correspond to the loans hedged, and are designated and qualify as fair value hedges. Any gain or loss on the swaps, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, is recognized in current period earnings. At March 31, 2022 and December 31, 2021, the Company carried one interest rate swap with a notional amount of $67.5 million, which was designated and qualified as a fair value hedge for a commercial and industrial loan. As of March 31, 2022 and December 31, 2021, the interest rate swap had a positive fair value of $0.3 million and a negative fair value of $1.0 million, respectively. The swap was executed in the fourth quarter of 2021, will start in the fourth quarter of 2023, and will mature in 2041. The Company will receive a USD Federal Funds floating rate and will pay a fixed rate of 2.07% . The following table shows the gains and losses recognized in income related to derivatives in fair value hedging relationships for the three months ended March 31, 2022 and 2021: Gains (losses) recognized in Three Months Ended the consolidated statements March 31, (dollars in of income line item 2022 2021 Gains (losses) on fair value hedging relationships recognized in interest income: Recognized on interest rate swap Loans and lease financing $ 1,512 $ 193 Recognized on hedged item Loans and lease financing (1,617) (249) As of March 31, 2022 and December 31, 2021, the following amounts were recorded in the unaudited interim consolidated balance sheets related to the cumulative basis adjustments for fair value hedges: Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset Carrying Amount of the Hedged Asset (dollars in March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Line item in the consolidated balance sheets in which the hedged item is included Loans and leases $ 67,181 $ 68,707 $ (319) $ 1,207 Cash Flow Hedges The Company utilized interest rate swaps to reduce asset sensitivity and enhance current yields associated with interest payments received on a pool of floating-rate loans. The Company entered into interest rate swaps paying floating rates and receiving fixed rates. The floating-rate index (Bloomberg Short-Term Bank Yield Index, or “BSBY”) corresponds to the floating-rate nature of the interest receipts being hedged (based on USD Prime). The swaps provide an initial benefit to interest income as the Company receives the higher fixed rate, which persists for as long as the floating rate remains below the swap’s fixed rate. By hedging with interest rate swaps, the Company minimizes the adverse impact on interest income associated with a low interest rate environment on floating-rate loans. As of March 31, 2022, the Company carried two interest rate swaps with notional amounts totaling $200.0 million, with a negative fair value totaling $1.7 million. The swaps were executed in the first quarter of 2022, will start in the second quarter of 2022, and will mature in 2024. The Company will receive fixed rates ranging from 1.70% to 2.08% and will pay 1-month BSBY. The interest rate swaps are designated and qualify as cash flow hedges. To the extent that the hedge is considered highly effective, the gain or loss on the interest rate swaps is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period that the hedged transaction affects earnings. The Company recognized a $1.7 million loss in other comprehensive income (loss) during the three months ended March 31, 2022. There were no gains or losses reclassified from accumulated other comprehensive income (loss) into earnings during the three months ended March 31, 2022. The estimated net amount to be reclassified within the next 12 months out of accumulated other comprehensive income (loss) into earnings is $0.4 million as an increase to interest income from loans and lease financing. As of March 31, 2022, the maximum length of time over which forecasted transactions are hedged is approximately two years. Free-Standing Derivative Instruments For the derivatives that are not designated as hedges, changes in fair value are reported in current period earnings. The following table summarizes the impact on pretax earnings of derivatives not designated as hedges, as reported on the unaudited interim consolidated statements of income for the three months ended March 31, 2022 and 2021: Net gains (losses) recognized Three Months Ended in the consolidated statements March 31, (dollars in of income line item 2022 2021 Derivatives Not Designated As Hedging Instruments: Visa derivative Other noninterest income (1,480) 26 Foreign exchange contracts Other noninterest income 6 — As of March 31, 2022, the Company carried multiple interest rate swaps with notional amounts totaling $2.9 billion, all of which were related to the Company’s customer swap program, with a positive fair value of $16.1 million and a negative fair value of $11.7 million. The Company received floating rates ranging from 0.23% to 3.23% and paid fixed rates ranging from 2.02% to 6.19%. The swaps mature between May 2022 and June 2040. As of December 31, 2021, the Company carried multiple interest rate swaps with notional amounts totaling $2.8 billion, all of which were related to the Company’s customer swap program, with a positive fair value of $50.9 million and a negative fair value of nil. The Company received floating rates ranging from 0.00% to 3.55% and paid fixed rates ranging from 2.02% to 6.19%. These swaps resulted in net interest expense of nil during both the three months ended March 31, 2022 and 2021. The Company’s customer swap program is designed by offering customers a variable-rate loan that is swapped to fixed-rate through an interest rate swap. The Company simultaneously executes an offsetting interest rate swap with a swap dealer. Upfront fees on the dealer swap are recorded in other noninterest income and totaled $1.0 million and $0.5 million for the three months ended March 31, 2022 and 2021, respectively. Visa Class B Restricted Shares In 2016, the Company recorded a $22.7 million net realized gain related to the sale of 274,000 Visa Class B restricted shares. Concurrent with the sale of the Visa Class B restricted shares, the Company entered into a funding swap agreement with the buyer that requires payment to the buyer in the event Visa reduces each member bank’s Class B conversion rate to unrestricted Class A common shares. During 2018, 2019 and 2021, Visa funded its litigation escrow account, thereby reducing each member bank’s Class B conversion rate to unrestricted Class A common shares from 1.6483 to the current conversion rate of 1.6181. Under the terms of the funding swap agreement, the Company will make monthly payments to the buyer based on Visa’s Class A stock price and the number of Visa Class B restricted shares that were sold until the date on which the covered litigation is settled. A derivative liability (“Visa derivative”) of $5.8 million and $5.5 million was included in the unaudited interim consolidated balance sheets at March 31, 2022 and December 31, 2021, respectively, to provide for the fair value of this liability. There were no sales of these shares prior to 2016. See “Note 15. Fair Value” for more information. Counterparty Credit Risk By using derivatives, the Company is exposed to counterparty credit risk if counterparties to the derivative contracts do not perform as expected. If a counterparty fails to perform, the Company’s counterparty credit risk is equal to the amount reported as a derivative asset, net of cash or other collateral received, and net of derivatives in a loss position with the same counterparty to the extent master netting arrangements exist. The Company minimizes counterparty credit risk through credit approvals, limits, monitoring procedures, executing master netting arrangements and obtaining collateral, where appropriate. Counterparty credit risk related to derivatives is considered in determining fair value. The Company’s interest rate swap agreements include bilateral collateral agreements with collateral requirements, which begin with exposures in excess of $0.3 million. For each counterparty, the Company reviews the interest rate swap collateral daily. Collateral for customer interest rate swap agreements, calculated as the pledged asset less loan balance, requires valuation of the pledged asset. Counterparty credit risk adjustments of $0.1 million were recognized during both the three months ended March 31, 2022 and 2021. Credit-Risk Related Contingent Features Some of our derivative contracts contain provisions whereby if the Company’s credit rating were to be downgraded by certain major credit rating agencies as a result of a merger or material adverse change in the Company’s financial condition, the counterparty could require an early termination of derivative instruments in a net liability position. The aggregate fair value of all derivative instruments with such credit-risk related contingent features that are in a net liability position was $0.8 million and $26.9 million at March 31, 2022 and December 31, 2021, respectively, for which we posted $0.8 million and $19.8 million, respectively, in collateral in the normal course of business. If the Company’s credit rating had been downgraded as of March 31, 2022 and December 31, 2021, we may have been required to settle the contracts in an amount equal to their fair value. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingent Liabilities | |
Commitments and Contingent Liabilities | 11. Commitments and Contingent Liabilities Contingencies On November 2, 2020, a lawsuit was filed in Hawaii Circuit Court by a Bank customer related to the sale of credit facilities that the Bank had previously extended to the customer. The customer asserts claims against the Bank for interference with the customer’s contract and business opportunity, unfair methods of competition and declaratory and injunctive relief. The outcome of this legal proceeding is uncertain at this point. Based on information available to the Company at present, the Company cannot reasonably estimate a range of potential loss, if any, for this action. Accordingly, the Company has not recognized any liability associated with this action. Management disputes any wrongdoing and the case is being vigorously defended. In addition to the litigation noted above, various legal proceedings are pending or threatened against the Company. After consultation with legal counsel, management does not expect that the aggregate liability, if any, resulting from these proceedings would have a material effect on the Company’s unaudited interim consolidated financial position, results of operations or cash flows. Financial Instruments with Off-Balance Sheet Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby and commercial letters of credit which are not reflected in the unaudited interim consolidated financial statements. Unfunded Commitments to Extend Credit A commitment to extend credit is a legally binding agreement to lend funds to a customer, usually at a stated interest rate and for a specified purpose. Commitments are reported net of participations sold to other institutions. Such commitments have fixed expiration dates and generally require a fee. The extension of a commitment gives rise to credit risk. The actual liquidity requirements or credit risk that the Company will experience is expected to be lower than the contractual amount of commitments to extend credit because a significant portion of those commitments are expected to expire without being drawn upon. Certain commitments are subject to loan agreements containing covenants regarding the financial performance of the customer that must be met before the Company is required to fund the commitment. The Company uses the same credit policies in making commitments to extend credit as it does in making loans. In addition, the Company manages the potential credit risk in commitments to extend credit by limiting the total amount of arrangements, both by individual customer and in the aggregate, by monitoring the size and expiration structure of these portfolios and by applying the same credit standards maintained for all of its related credit activities. Commitments to extend credit are reported net of participations sold to other institutions of $93.5 million and $95.5 million at March 31, 2022 and December 31, 2021, respectively. Standby and Commercial Letters of Credit Standby letters of credit are issued on behalf of customers in connection with contracts between the customers and third parties. Under standby letters of credit, the Company assures that the third parties will receive specified funds if customers fail to meet their contractual obligations. The credit risk to the Company arises from its obligation to make payment in the event of a customer’s contractual default. Standby letters of credit are reported net of participations sold to other institutions of $10.7 million at March 31, 2022 and December 31, 2021. The Company also had commitments for commercial and similar letters of credit. Commercial letters of credit are issued specifically to facilitate commerce whereby the commitment is typically drawn upon when the underlying transaction between the customer and a third-party is consummated. The maximum amount of potential future payments guaranteed by the Company is limited to the contractual amount of these letters. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Collateral held supports those commitments for which collateral is deemed necessary. The commitments outstanding as of March 31, 2022 have maturities ranging from April 2022 to September 2026. Substantially all fees received from the issuance of such commitments are deferred and amortized on a straight-line basis over the term of the commitment. Financial instruments with off-balance sheet risk at March 31, 2022 and December 31, 2021 were as follows: March 31, December 31, (dollars in 2022 2021 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit $ 6,546,389 $ 6,490,301 Standby letters of credit 182,423 182,447 Commercial letters of credit 7,149 3,307 Guarantees The Company sells residential mortgage loans in the secondary market primarily to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation that may potentially require repurchase under certain conditions. This risk is managed through the Company’s underwriting practices. The Company services loans sold to investors and loans originated by other originators under agreements that may include repurchase remedies if certain servicing requirements are not met. This risk is managed through the Company’s quality assurance and monitoring procedures. Management does not anticipate any material losses as a result of these transactions. Foreign Exchange Contracts The Company has forward foreign exchange contracts that represent commitments to purchase or sell foreign currencies at a future date at a specified price. The Company’s utilization of forward foreign exchange contracts is subject to the primary underlying risk of movements in foreign currency exchange rates and to additional counterparty risk should its counterparties fail to meet the terms of their contracts. Forward foreign exchange contracts are utilized to mitigate the Company’s risk to satisfy customer demand for foreign currencies and are not used for trading purposes. See “Note 10. Derivative Financial Instruments” for more information. Reorganization Transactions On April 1, 2016, a series of reorganization transactions were undertaken to facilitate FHI’s initial public offering. In connection with the reorganization transactions, FHI distributed its interest in BancWest Holding Inc. (“BWHI”), including Bank of the West (“BOW”) to BNP Paribas (“BNPP”) so that BWHI was held directly by BNPP. As a result of the reorganization transactions that occurred on April 1, 2016, various tax or other contingent liabilities could arise related to the business of BOW, or related to the Company’s operations prior to the restructuring when it was known as BancWest Corporation, including its then wholly owned subsidiary, BOW. In December 2021, Bank of Montreal agreed to purchase Bank of the West from BNP Paribas SA. The Company is not able to determine the ultimate outcome or estimate the amounts of these contingent liabilities, if any, at this time. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | 12. Revenue from Contracts with Customers Revenue Recognition In accordance with Topic 606, revenues are recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services that are promised within each contract and identifies those that contain performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Disaggregation of Revenue In the second quarter of 2021, the Company made changes to the internal measurement of segment operating profits for the purpose of evaluating segment performance and resource allocation. The Company has restated the selected financial information for the three months ended March 31, 2021 in order to conform with the current presentation. See “Note 16. Reportable Operating Segments” contained in our unaudited interim consolidated financial statements for further information. The following table summarizes the Company’s revenues, which includes net interest income on financial instruments and noninterest income, disaggregated by type of service and business segments for the periods indicated: Three Months Ended March 31, 2022 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Net interest income (1) $ 94,048 $ 35,088 $ 4,736 $ 133,872 Service charges on deposit accounts 6,650 346 505 7,501 Credit and debit card fees — 13,026 1,216 14,242 Other service charges and fees 6,563 781 369 7,713 Trust and investment services income 8,883 — — 8,883 Other 128 2,584 258 2,970 Not in scope of Topic 606 (1) 1,091 1,918 (2,938) 71 Total noninterest income 23,315 18,655 (590) 41,380 Total revenue $ 117,363 $ 53,743 $ 4,146 $ 175,252 (1) Most of the Company’s revenue is not within the scope of ASU No. 2014-09, Revenue from Contracts with Customers . The guidance explicitly excludes net interest income from financial assets and liabilities as well as other noninterest income from loans, leases, investment securities and derivative financial instruments. Three Months Ended March 31, 2021 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Net interest income (1) $ 94,454 $ 38,266 $ (3,562) $ 129,158 Service charges on deposit accounts 6,086 223 409 6,718 Credit and debit card fees — 12,525 1,428 13,953 Other service charges and fees 5,564 475 352 6,391 Trust and investment services income 8,492 — — 8,492 Other 79 1,496 336 1,911 Not in scope of Topic 606 (1) 3,354 1,322 1,727 6,403 Total noninterest income 23,575 16,041 4,252 43,868 Total revenue $ 118,029 $ 54,307 $ 690 $ 173,026 (1) Most of the Company’s revenue is not within the scope of ASU No. 2014-09, Revenue from Contracts with Customers. The guidance explicitly excludes net interest income from financial assets and liabilities as well as other noninterest income from loans, leases, investment securities and derivative financial instruments. For the three months ended March 31, 2022 and 2021, substantially all of the Company’s revenues under the scope of Topic 606 were related to performance obligations satisfied at a point in time. The following is a discussion of revenues within the scope of Topic 606. Service Charges on Deposit Accounts Service charges on deposit accounts relate to fees generated from a variety of deposit products and services rendered to customers. Charges include, but are not limited to, overdraft fees, non-sufficient fund fees, dormant fees and monthly service charges. Such fees are recognized concurrent with the event on a daily basis or on a monthly basis depending upon the customer’s cycle date. Credit and Debit Card Fees Credit and debit card fees primarily represent revenues earned from interchange fees, ATM fees and merchant processing fees. Interchange and network revenues are earned on credit and debit card transactions conducted with payment networks. ATM fees are primarily earned as a result of surcharges assessed to non-FHB customers who use an FHB ATM. Merchant processing fees are primarily earned on transactions in which FHB is the acquiring bank. Such fees are generally recognized concurrently with the delivery of services on a daily basis. Trust and Investment Services Fees Trust and investment services fees represent revenue earned by directing, holding and managing customers’ assets. Fees are generally computed based on a percentage of the previous period’s value of assets under management. The transaction price (i.e., percentage of assets under management) is established at the inception of each contract. Trust and investment services fees also include fees collected when the Company acts as agent or personal representative and executes security transactions, performs collection and disbursement of income, and completes investment management and other administrative tasks. Other Fees Other fees primarily include revenues generated from wire transfers, lockboxes, bank issuance of checks and insurance commissions. Such fees are recognized concurrent with the event or on a monthly basis. Contract Balances A contract liability is an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer. In prior years, the Company received signing bonuses from three vendors which are being amortized over the term of the respective contracts. As of March 31, 2022 and December 31, 2021, the Company had contract liabilities of $2.7 million and $3.0 million, respectively, which it expects to recognize over the remaining term of the respective contracts with the vendors. For the three months ended March 31, 2022, the Company’s recognized revenues increased and contract liabilities decreased by approximately $0.3 million due to the passage of time. For the three months ended March 31, 2021, the Company’s recognized revenues increased and contract liabilities decreased by approximately $0.2 million due to the passage of time. There were no changes in contract liabilities due to changes in transaction price estimates. A contract asset is the right to consideration for transferred goods or services when the amount is conditioned on something other than the passage of time. As of March 31, 2022 and December 31, 2021, there were no material receivables from contracts with customers or contract assets recorded on the Company’s consolidated balance sheets. Other Except for the contract liabilities noted above, the Company did not have any significant performance obligations as of March 31, 2022 and December 31, 2021. The Company also did not have any material contract acquisition costs or use any significant judgments or estimates in recognizing revenue for financial reporting purposes. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings per Share | |
Earnings per Share | 13. Earnings per Share For the three months ended March 31, 2022, the Company made no adjustments to net income for the purpose of computing earnings per share and there were no antidilutive securities. For the three months ended March 31, 2021, the Company made no adjustments to net income for the purpose of computing earnings per share and there were 27,000 antidilutive securities. For the three months ended March 31, 2022 and 2021, the computations of basic and diluted earnings per share were as follows: Three Months Ended March 31, (dollars in 2022 2021 Numerator: Net income $ 57,719 $ 57,693 Denominator: Basic: weighted-average shares outstanding 127,556,242 129,933,104 Add: weighted-average equity-based awards 564,884 656,774 Diluted: weighted-average shares outstanding 128,121,126 130,589,878 Basic earnings per share $ 0.45 $ 0.44 Diluted earnings per share $ 0.45 $ 0.44 |
Noninterest Income and Noninter
Noninterest Income and Noninterest Expense | 3 Months Ended |
Mar. 31, 2022 | |
Noninterest Income and Noninterest Expense | |
Noninterest Income and Noninterest Expense | 14. Noninterest Income and Noninterest Expense Benefit Plans The following table sets forth the components of net periodic benefit cost for the Company’s pension and postretirement benefit plans for the three months ended March 31, 2022 and 2021: Income line item where recognized in Pension Benefits Other Benefits (dollars in the consolidated statements of income 2022 2021 2022 2021 Three Months Ended March 31, Service cost Salaries and employee benefits $ — $ — $ 215 $ 264 Interest cost Other noninterest expense 1,361 1,231 144 131 Expected return on plan assets Other noninterest expense (783) (766) — — Recognized net actuarial loss (gain) Other noninterest expense 1,268 1,720 (101) — Total net periodic benefit cost $ 1,846 $ 2,185 $ 258 $ 395 Leases The Company recognized operating lease income related to lease payments of $1.5 million and $1.7 million for the three months ended March 31, 2022 and 2021, respectively. In addition, the Company recognized $1.6 million and $1.5 million of lease income related to variable lease payments for the three months ended March 31, 2022 and 2021, respectively. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value | |
Fair Value | 15. Fair Value The Company determines the fair values of its financial instruments based on the requirements established in Accounting Standards Codification Topic 820 (“Topic 820”), Fair Value Measurements Fair Value Hierarchy Topic 820 establishes three levels of fair values based on the markets in which the assets or liabilities are traded and the reliability of the assumptions used to determine fair value. The levels are: ◾ Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. ◾ Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ◾ Level 3: Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability (“Company-level data”). Level 3 assets and liabilities include financial instruments whose value is determined using unobservable inputs to pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Topic 820 requires that the Company disclose estimated fair values for certain financial instruments. Financial instruments include such items as investment securities, loans, deposits, interest rate and foreign exchange contracts, swaps and other instruments as defined by the standard. The Company has an organized and established process for determining and reviewing the fair value of financial instruments reported in the Company’s financial statements. The fair value measurements are reviewed to ensure they are reasonable and in line with market experience in similar asset and liability classes. Additionally, the Company may be required to record at fair value other assets on a nonrecurring basis, such as other real estate owned, other customer relationships, and other intangible assets. These nonrecurring fair value adjustments typically involve the application of lower-of-cost-or-fair-value accounting or write-downs of individual assets. Disclosure of fair values is not required for certain items such as lease financing, obligations for pension and other postretirement benefits, premises and equipment, prepaid expenses, deposit liabilities with no defined or contractual maturity, and income tax assets and liabilities. Reasonable comparisons of fair value information with that of other financial institutions cannot necessarily be made because the standard permits many alternative calculation techniques, and numerous assumptions have been used to estimate the Company’s fair values. Valuation Techniques Used in the Fair Value Measurement of Assets and Liabilities Carried at Fair Value For the assets and liabilities measured at fair value on a recurring basis (categorized in the valuation hierarchy table below), the Company applies the following valuation techniques: Available-for-sale securities Available-for-sale debt securities are recorded at fair value on a recurring basis. Fair value measurement is based on quoted prices, including estimates by third-party pricing services, if available. If quoted prices are not available, fair values are measured using proprietary valuation models that utilize market observable parameters from active market makers and inter-dealer brokers whereby securities are valued based upon available market data for securities with similar characteristics. Management reviews the pricing information received from the Company’s third-party pricing service to evaluate the inputs and valuation methodologies used to place securities into the appropriate level of the fair value hierarchy and transfers of securities within the fair value hierarchy are made if necessary. On a monthly basis, management reviews the pricing information received from the third-party pricing service which includes a comparison to non-binding third-party broker quotes, as well as a review of market-related conditions impacting the information provided by the third-party pricing service. Management also identifies investment securities which may have traded in illiquid or inactive markets by identifying instances of a significant decrease in the volume or frequency of trades, relative to historical levels, as well as instances of a significant widening of the bid-ask spread in the brokered markets. As of March 31, 2022 and December 31, 2021, management did not make adjustments to prices provided by the third-party pricing services as a result of illiquid or inactive markets. The Company’s third-party pricing service has also established processes for the Company to submit inquiries regarding quoted prices. Periodically, the Company will challenge the quoted prices provided by the third-party pricing service. The Company’s third-party pricing service will review the inputs to the evaluation in light of the new market data presented by the Company. The Company’s third-party pricing service may then affirm the original quoted price or may update the evaluation on a going forward basis. The Company classifies all available-for-sale securities as Level 2. Derivatives Most of the Company’s derivatives are traded in over-the-counter markets where quoted market prices are not readily available. For those derivatives, the Company measures fair value on a recurring basis using proprietary valuation models that primarily use market observable inputs, such as yield curves, and option volatilities. The fair value of derivatives includes values associated with counterparty credit risk and the Company’s own credit standing. The Company classifies these derivatives, included in other assets and other liabilities, as Level 2. Concurrent with the sale of the Visa Class B restricted shares, the Company entered into an agreement with the buyer that requires payment to the buyer in the event Visa reduces each member bank’s Class B conversion rate to unrestricted Class A common shares. During 2018, 2019 and 2021, Visa funded its litigation escrow account, thereby reducing each member bank’s Class B conversion rate to unrestricted Class A common shares from 1.6483 to the current conversion rate of 1.6181. The Visa derivative of $5.8 million and $5.5 million was included in the unaudited interim consolidated balance sheets at March 31, 2022 and December 31, 2021, respectively, to provide for the fair value of this liability. The potential liability related to this funding swap agreement was determined based on management’s estimate of the timing and the amount of Visa’s litigation settlement and the resulting payments due to the counterparty under the terms of the contract. As such, the funding swap agreement is classified as Level 3 in the fair value hierarchy. The significant unobservable inputs used in the fair value measurement of the Company’s funding swap agreement are the potential future changes in the conversion rate, expected term and growth rate of the market price of Visa Class A common shares. Material increases (or decreases) in any of those inputs may result in a significantly higher (or lower) fair value measurement. Assets and Liabilities Recorded at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 are summarized below: Fair Value Measurements as of March 31, 2022 Quoted Prices in Significant Active Markets for Other Significant Identical Assets Observable Unobservable (dollars in (Level 1) Inputs (Level 2) Inputs (Level 3) Total Assets U.S. Treasury and government agency debt securities $ — $ 199,544 $ — $ 199,544 Mortgage-backed securities: Residential - Government agency (1) — 122,965 — 122,965 Residential - Government-sponsored enterprises (1) — 1,362,345 — 1,362,345 Commercial - Government agency — 333,089 — 333,089 Commercial - Government-sponsored enterprises — 1,249,834 — 1,249,834 Collateralized mortgage obligations: Government agency — 2,009,781 — 2,009,781 Government-sponsored enterprises — 2,509,707 — 2,509,707 Collateralized loan obligations — 220,884 — 220,884 Debt securities issued by states and political subdivisions — 54,235 — 54,235 Total available-for-sale securities — 8,062,384 — 8,062,384 Other assets (2) 6,617 16,414 — 23,031 Liabilities Other liabilities (3) — (13,413) (5,794) (19,207) Total $ 6,617 $ 8,065,385 $ (5,794) $ 8,066,208 (1) Backed by residential real estate. (2) Other assets classified as Level 1 include mutual funds and money market funds that have quoted prices in active markets and are related to the Company’s deferred compensation plans. Other assets classified as Level 2 include derivative assets. (3) Other liabilities include derivative liabilities. Fair Value Measurements as of December 31, 2021 Quoted Prices in Significant Active Markets for Other Significant Identical Assets Observable Unobservable (dollars in thousands) (Level 1) Inputs (Level 2) Inputs (Level 3) Total Assets U.S. Treasury and government agency debt securities $ — $ 192,563 $ — $ 192,563 Mortgage-backed securities: Residential - Government agency (1) — 137,264 — 137,264 Residential - Government-sponsored enterprises (1) — 1,491,100 — 1,491,100 Commercial - Government agency — 387,663 — 387,663 Commercial - Government-sponsored enterprises — 1,369,443 — 1,369,443 Collateralized mortgage obligations: Government agency — 2,079,523 — 2,079,523 Government-sponsored enterprises — 2,621,044 — 2,621,044 Collateralized loan obligations — 105,247 — 105,247 Debt securities issued by states and political subdivisions — 44,185 — 44,185 Total available-for-sale securities — 8,428,032 — 8,428,032 Other assets (2) 7,382 50,925 — 58,307 Liabilities Other liabilities (3) — (1,238) (5,530) (6,768) Total $ 7,382 $ 8,477,719 $ (5,530) $ 8,479,571 (1) Backed by residential real estate. (2) Other assets classified as Level 1 include mutual funds and money market funds that have quoted prices in active markets and are related to the Company’s deferred compensation plans. Other assets classified as Level 2 include derivative assets. (3) Other liabilities include derivative liabilities. For Level 3 assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows: Quantitative Information about Level 3 Fair Value Measurements at March 31, 2022 Significant (dollars in thousands) Fair value Valuation Technique Unobservable Input Range Visa derivative $ (5,794) Discounted Cash Flow Expected Conversation Rate - 1.6181 (1) 1.5885 - 1.6181 Expected Term - 1 year (2) 0.5 to 1.5 years Growth Rate - 26% (3) 10% - 38% Quantitative Information about Level 3 Fair Value Measurements at December 31, 2021 Significant (dollars in thousands) Fair value Valuation Technique Unobservable Input Range Visa derivative $ (5,530) Discounted Cash Flow Expected Conversation Rate - 1.6181 (1) 1.5885-1.6181 Expected Term - 1 year (2) 0.5 to 1.5 years Growth Rate - 26% (3) 10% - 38% (1) Due to the uncertainty in the movement of the conversion rate, the current conversion rate was utilized in the fair value calculation. (2) The expected term of 1 year was based on the median of 0.5 to 1.5 years. (3) The growth rate was based on the arithmetic average of analyst price targets. Changes in Fair Value Levels For the three months ended March 31, 2022 and 2021, there were no transfers between fair value hierarchy levels. The changes in Level 3 liabilities measured at fair value on a recurring basis for the three months ended March 31, 2022 and 2021 are summarized below: Visa Derivative (dollars in 2022 2021 Three Months Ended March 31, Balance as of January 1, $ (5,530) $ (4,554) Total net (losses) gains included in other noninterest income (1,480) 26 Settlements 1,216 1,146 Balance as of March 31, $ (5,794) $ (3,382) Total net (losses) gains included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of March 31, $ (1,480) $ 26 Assets and Liabilities Carried at Other Than Fair Value The following tables summarize for the periods indicated the estimated fair value of the Company’s financial instruments that are not required to be carried at fair value on a recurring basis, excluding leases and deposit liabilities with no defined or contractual maturity. March 31, 2022 Fair Value Measurements Quoted Prices in Significant Significant Active Markets Other Unobservable for Identical Observable Inputs (dollars in thousands) Book Value Assets (Level 1) Inputs (Level 2) (Level 3) Total Financial assets: Cash and cash equivalents $ 1,626,160 $ 274,022 $ 1,352,138 $ — $ 1,626,160 Loans (1) 12,668,573 — — 12,447,576 12,447,576 Financial liabilities: Time deposits (2) $ 1,701,838 $ — $ 1,681,170 $ — $ 1,681,170 December 31, 2021 Fair Value Measurements Quoted Prices in Significant Significant Active Markets Other Unobservable for Identical Observable Inputs (dollars in thousands) Book Value Assets (Level 1) Inputs (Level 2) (Level 3) Total Financial assets: Cash and cash equivalents $ 1,258,469 $ 246,716 $ 1,011,753 $ — $ 1,258,469 Loans held for sale 538 — 542 — 542 Loans (1) 12,730,605 — — 12,791,811 12,791,811 Financial liabilities: Time deposits (2) $ 1,776,438 $ — $ 1,773,321 $ — $ 1,773,321 (1) Excludes financing leases of $223.2 million at March 31, 2022 and $231.4 million at December 31, 2021. (2) Excludes deposit liabilities with no defined or contractual maturity of $20.6 billion as of March 31, 2022 and $20.0 billion as of December 31, 2021. Unfunded loan and lease commitments and letters of credit are not included in the tables above. As of both March 31, 2022 and December 31, 2021, the Company had $6.7 billion of unfunded loan and lease commitments and letters of credit. The Company believes that a reasonable estimate of the fair value of these instruments is the carrying value of deferred fees plus the related reserve for unfunded commitments, which totaled $42.6 million and $44.3 million at March 31, 2022 and December 31, 2021, respectively. No active trading market exists for these instruments, and the estimated fair value does not include value associated with the borrower relationship. The Company does not estimate the fair values of certain unfunded loan and lease commitments that can be canceled by providing notice to the borrower. As Company-level data is incorporated into the fair value measurement, unfunded loan and lease commitments and letters of credit are classified as Level 3. Valuation Techniques Used in the Fair Value Measurement of Assets and Liabilities Carried at the Lower of Cost or Fair Value The Company applies the following valuation techniques to assets measured at the lower of cost or fair value: Mortgage servicing rights MSRs are carried at the lower of cost or fair value and are therefore subject to fair value measurements on a nonrecurring basis. The fair value of MSRs is determined using models which use significant unobservable inputs, such as estimates of prepayment rates, the resultant weighted average lives of the MSRs and the option-adjusted spread levels. Accordingly, the Company classifies MSRs as Level 3. Collateral-dependent loans Collateral-dependent loans are those for which repayment is expected to be provided substantially through the operation or sale of the collateral. Other real estate owned The Company values these properties at fair value at the time the Company acquires them, which establishes their new cost basis. After acquisition, the Company carries such properties at the lower of cost or fair value less estimated selling costs on a nonrecurring basis. Fair value is measured on a nonrecurring basis using collateral values as a practical expedient. The fair values of collateral for other real estate owned are primarily based on real estate appraisal reports prepared by third-party appraisers less disposition costs, and are classified as Level 3. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The Company may be required to record certain assets at fair value on a nonrecurring basis in accordance with GAAP. These assets are subject to fair value adjustments that result from the application of lower of cost or fair value accounting or write-downs of individual assets to fair value. There were no assets with nonrecurring fair value adjustments held as of March 31, 2022 and December 31, 2021. Additionally, there were no nonrecurring fair value adjustments for both the three months ended March 31, 2022 and 2021. |
Reportable Operating Segments
Reportable Operating Segments | 3 Months Ended |
Mar. 31, 2022 | |
Reportable Operating Segments | |
Reportable Operating Segments | 16. Reportable Operating Segments The Company’s operations are organized into three business segments – Retail Banking, Commercial Banking, and Treasury and Other. These segments reflect how discrete financial information is currently evaluated by the chief operating decision maker and how performance is assessed and resources allocated. The Company’s internal management process measures the performance of these business segments. This process, which is not necessarily comparable with similar information for any other financial institution, uses various techniques to assign balance sheet and income statement amounts to the business segments, including allocations of income, expense, the provision for credit losses, and capital. This process is dynamic and requires certain allocations based on judgment and other subjective factors. Unlike financial accounting, there is no comprehensive authoritative guidance for management accounting that is equivalent to GAAP. The net interest income of the business segments reflects the results of a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics and reflects the allocation of net interest income related to the Company’s overall asset and liability management activities on a proportionate basis. The basis for the allocation of net interest income is a function of the Company’s assumptions that are subject to change based on changes in current interest rates and market conditions. Funds transfer pricing also serves to transfer interest rate risk to Treasury. The Company allocates the provision for credit losses from the Treasury and Other business segment (which is comprised of many of the Company’s support units) to the Retail and Commercial business segments. These allocations are based on direct costs incurred by the Retail and Commercial business segments. Noninterest income and expense includes allocations from support units to the business segments. These allocations are based on actual usage where practicably calculated or by management’s estimate of such usage. Income tax expense is allocated to each business segment based on the consolidated effective income tax rate for the period shown. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), enacted on March 27, 2020, established, among other COVID-19 relief programs, a loan program (Paycheck Protection Program, or the “PPP”) for fully guaranteed loans (which may then be forgiven) to small businesses. In the second quarter of 2021, the Company made changes to the internal measurement of segment operating profits for the purpose of evaluating segment performance and resource allocation. The primary reason for the change was to align PPP loan balances within the business segment that directly manages them. Specifically, PPP loan balances previously included as part of the Retail Banking segment have been reclassified to the Commercial Banking segment. The reallocation of select PPP loan balances affected net interest income, net interest income after provision for credit losses, noninterest expense, provision for income taxes and net income. The Company has reported its selected financial information using the current PPP loan balance alignments for the three months ended March 31, 2022. The Company has restated the selected financial information for the three months ended March 31, 2021 in order to conform with the current presentation. Business Segments Retail Banking Retail Banking offers a broad range of financial products and services to consumers and small businesses. Loan and lease products offered include residential and commercial mortgage loans, home equity lines of credit and loans, automobile loans and leases, secured and unsecured lines of credit, installment loans and small business loans and leases. Deposit products offered include checking, savings, and time deposit accounts. Retail Banking also offers wealth management services. Products and services from Retail Banking are delivered to customers through 51 banking locations throughout the State of Hawaii, Guam, and Saipan. Commercial Banking Commercial Banking offers products that include corporate banking related products, commercial real estate loans, commercial lease financing, secured and unsecured lines of credit, automobile loans and auto dealer financing, business deposit products and credit cards. Commercial lending and deposit products are offered primarily to middle-market and large companies locally, nationally, and internationally. Treasury and Other Treasury consists of corporate asset and liability management activities including interest rate risk management. The segment’s assets and liabilities (and related interest income and expense) consist of interest-bearing deposits, investment securities, federal funds sold and purchased, government deposits, short- and long-term borrowings and bank-owned properties. The primary sources of noninterest income are from bank-owned life insurance, net gains from the sale of investment securities, foreign exchange income related to customer-driven currency requests from merchants and island visitors and management of bank-owned properties. The net residual effect of the transfer pricing of assets and liabilities is included in Treasury, along with the elimination of intercompany transactions. Other organizational units (Technology, Operations, Credit and Risk Management, Human Resources, Finance, Administration, Marketing, and Corporate and Regulatory Administration) provide a wide-range of support to the Company’s other income earning segments. Expenses incurred by these support units are charged to the business segments through an internal cost allocation process. The following tables present selected business segment financial information for the periods indicated. Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Three Months Ended March 31, 2022 Net interest income $ 94,048 $ 35,088 $ 4,736 $ 133,872 Benefit for credit losses 1,841 2,542 1,364 5,747 Net interest income after benefit for credit losses 95,889 37,630 6,100 139,619 Noninterest income 23,315 18,655 (590) 41,380 Noninterest expense (70,220) (26,505) (7,317) (104,042) Income (loss) before (provision) benefit for income taxes 48,984 29,780 (1,807) 76,957 (Provision) benefit for income taxes (12,150) (7,253) 165 (19,238) Net income (loss) $ 36,834 $ 22,527 $ (1,642) $ 57,719 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Three Months Ended March 31, 2021 Net interest income (expense) $ 94,454 $ 38,266 $ (3,562) $ 129,158 Benefit (Provision) for credit losses 1,470 2,030 (3,500) — Net interest income (expense) after provision for credit losses 95,924 40,296 (7,062) 129,158 Noninterest income 23,575 16,041 4,252 43,868 Noninterest expense (62,889) (22,478) (10,939) (96,306) Income (loss) before (provision) benefit for income taxes 56,610 33,859 (13,749) 76,720 (Provision) benefit for income taxes (14,126) (8,344) 3,443 (19,027) Net income (loss) $ 42,484 $ 25,515 $ (10,306) $ 57,693 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization and Basis of Presentation | |
Organization and Basis of Presentation | First Hawaiian, Inc. (“FHI” or the “Parent”), a bank holding company, owns 100% of the outstanding common stock of First Hawaiian Bank (“FHB” or the “Bank”), its only direct, wholly owned subsidiary. FHB offers a comprehensive suite of banking services, including loans, deposit products, wealth management, insurance, trust, retirement planning, credit card and merchant processing services, to consumer and commercial customers. The accompanying unaudited interim consolidated financial statements of First Hawaiian, Inc. and Subsidiary (the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The accompanying unaudited interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair presentation of the interim period consolidated financial information, have been made. Results of operations for interim periods are not necessarily indicative of results to be expected for the entire year. Intercompany account balances and transactions have been eliminated in consolidation. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases its estimates on historical experience and various other assumptions believed to be reasonable. Although these estimates are based on management’s best knowledge of current events, actual results may differ from these estimates. |
Accounting Standards Adopted in 2022 and Recent Accounting Pronouncements | Accounting Standards Adopted in 2022 In July 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-05, Leases (Topic 842), Lessors – Certain Leases with Variable Lease Payments. Recent Accounting Pronouncements The following ASUs have been issued by the FASB and are applicable to the Company in future reporting periods. In March 2022, the FASB issued ASU No. 2022-01, Derivatives and Hedging (Topic 815), Fair Value Hedging – Portfolio Layer Method. the flexibility to use any type of derivative (or combination of derivatives) by applying the multiple-layer model that aligns with its risk management strategy. Although no assets may be added to a closed portfolio once it is designated in a portfolio layer method hedge, at any time after the initial hedge designation, new hedging relationships associated with the portfolio may be designated and existing hedging relationships associated with the portfolio may be dedesignated to align with an entity’s evolving strategy for managing interest rate risk on a timely basis. Under the portfolio layer method, the basis of the portfolio assets is generally adjusted at the portfolio level rather than being allocated to individual assets within the portfolio, except when the allocation of basis adjustments is required by other areas of GAAP. The intent of this update is consistent with the FASB’s efforts to better align an entity’s financial reporting with the results of its risk management strategy and to further simplify the hedge accounting model. This update is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The Company is in the process of evaluating the impact that this new guidance may have on the Company’s consolidated financial statements. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investment Securities | |
Schedule of amortized cost and fair value of securities | March 31, 2022 December 31, 2021 Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Cost Gains Losses Value U.S. Treasury and government agency debt securities $ 213,572 $ — $ (14,028) $ 199,544 $ 196,662 $ 125 $ (4,224) $ 192,563 Mortgage-backed securities: Residential - Government agency 128,080 — (5,115) 122,965 135,764 1,791 (291) 137,264 Residential - Government-sponsored enterprises 1,450,070 428 (88,153) 1,362,345 1,496,605 6,914 (12,419) 1,491,100 Commercial - Government agency 358,910 53 (25,874) 333,089 392,443 1,741 (6,521) 387,663 Commercial - Government-sponsored enterprises 1,426,831 — (176,997) 1,249,834 1,415,511 2,646 (48,714) 1,369,443 Collateralized mortgage obligations: Government agency 2,153,236 59 (143,514) 2,009,781 2,103,187 7,768 (31,432) 2,079,523 Government-sponsored enterprises 2,719,829 3 (210,125) 2,509,707 2,671,131 3,608 (53,695) 2,621,044 Collateralized loan obligations 221,607 25 (748) 220,884 105,245 2 — 105,247 Debt securities issued by states and political subdivisions 61,035 — (6,800) 54,235 44,185 — — 44,185 Total available-for-sale securities $ 8,733,170 $ 568 $ (671,354) $ 8,062,384 $ 8,560,733 $ 24,595 $ (157,296) $ 8,428,032 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | March 31, 2022 Amortized Fair (dollars in thousands) Cost Value Due in one year or less $ 30,148 $ 29,944 Due after one year through five years 39,854 38,512 Due after five years through ten years 178,200 172,750 Due after ten years 248,012 233,457 496,214 474,663 Mortgage-backed securities: Residential - Government agency 128,080 122,965 Residential - Government-sponsored enterprises 1,450,070 1,362,345 Commercial - Government agency 358,910 333,089 Commercial - Government-sponsored enterprises 1,426,831 1,249,834 Total mortgage-backed securities 3,363,891 3,068,233 Collateralized mortgage obligations: Government agency 2,153,236 2,009,781 Government-sponsored enterprises 2,719,829 2,509,707 Total collateralized mortgage obligations 4,873,065 4,519,488 Total available-for-sale securities $ 8,733,170 $ 8,062,384 |
Schedule of gross unrealized losses and fair values of securities in a continuous loss position | Time in Continuous Loss as of March 31, 2022 Less Than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized (dollars in thousands) Losses Fair Value Losses Fair Value Losses Fair Value U.S. Treasury and government agency debt securities $ (4,314) $ 93,417 $ (9,714) $ 106,127 $ (14,028) $ 199,544 Mortgage-backed securities: Residential - Government agency (5,115) 122,965 — — (5,115) 122,965 Residential - Government-sponsored enterprises (75,047) 1,209,850 (13,106) 106,145 (88,153) 1,315,995 Commercial - Government agency (10,635) 169,320 (15,239) 153,626 (25,874) 322,946 Commercial - Government-sponsored enterprises (71,323) 562,986 (105,674) 682,848 (176,997) 1,245,834 Collateralized mortgage obligations: Government agency (135,357) 1,904,905 (8,157) 73,679 (143,514) 1,978,584 Government-sponsored enterprises (161,761) 2,012,931 (48,364) 465,051 (210,125) 2,477,982 Collateralized loan obligations: (748) 79,181 — — (748) 79,181 Debt securities issued by states and political subdivisions (6,800) 54,235 — — (6,800) 54,235 Total available-for-sale securities with unrealized losses $ (471,100) $ 6,209,790 $ (200,254) $ 1,587,476 $ (671,354) $ 7,797,266 Time in Continuous Loss as of December 31, 2021 Less Than 12 Months 12 Months or More Total Unrealized Unrealized Unrealized (dollars in thousands) Losses Fair Value Losses Fair Value Losses Fair Value U.S. Treasury and government agency debt securities $ (3,355) $ 134,468 $ (869) $ 16,642 $ (4,224) $ 151,110 Mortgage-backed securities: Residential - Government agency (291) 51,231 — — (291) 51,231 Residential - Government-sponsored enterprises (10,876) 1,230,104 (1,543) 32,415 (12,419) 1,262,519 Commercial - Government agency (5,239) 186,024 (1,282) 26,063 (6,521) 212,087 Commercial - Government-sponsored enterprises (22,179) 744,819 (26,535) 397,123 (48,714) 1,141,942 Collateralized mortgage obligations: Government agency (31,432) 1,441,848 — — (31,432) 1,441,848 Government-sponsored enterprises (52,551) 2,255,535 (1,144) 24,959 (53,695) 2,280,494 Total available-for-sale securities with unrealized losses $ (125,923) $ 6,044,029 $ (31,373) $ 497,202 $ (157,296) $ 6,541,231 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Loans and Leases. | |
Schedule of components of loans and leases | March 31, December 31, (dollars in thousands) 2022 2021 Commercial and industrial $ 1,923,534 $ 2,087,099 Commercial real estate 3,759,980 3,639,623 Construction 708,300 813,969 Residential: Residential mortgage 4,153,824 4,083,367 Home equity line 918,101 876,608 Total residential 5,071,925 4,959,975 Consumer 1,204,834 1,229,939 Lease financing 223,170 231,394 Total loans and leases $ 12,891,743 $ 12,961,999 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Allowance for Credit Losses | |
Schedule of activity in the allowance by class of loans and lease | Three Months Ended March 31, 2022 Commercial Lending Residential Lending Commercial Commercial Home and Real Lease Residential Equity (dollars in thousands) Industrial Estate Construction Financing Mortgage Line Consumer Total Allowance for credit losses: Balance at beginning of period $ 20,080 $ 42,951 $ 9,773 $ 1,659 $ 34,364 $ 5,642 $ 42,793 $ 157,262 Charge-offs (706) — — — — (43) (4,109) (4,858) Recoveries 53 14 — — 16 28 2,148 2,259 Increase (decrease) in Provision (267) 2,273 (865) (297) (3,492) (543) (1,192) (4,383) Balance at end of period $ 19,160 $ 45,238 $ 8,908 $ 1,362 $ 30,888 $ 5,084 $ 39,640 $ 150,280 Three Months Ended March 31, 2021 Commercial Lending Residential Lending Commercial Commercial Home and Real Lease Residential Equity (dollars in thousands) Industrial Estate Construction Financing Mortgage Line Consumer Total Allowance for credit losses: Balance at beginning of year $ 24,711 $ 58,123 $ 10,039 $ 3,298 $ 40,461 $ 7,163 $ 64,659 $ 208,454 Charge-offs (963) (66) — — (98) — (6,541) (7,668) Recoveries 215 3 166 — 17 24 2,655 3,080 Increase (decrease) in Provision 3,359 (6,369) 347 (101) (1,909) (519) 1,692 (3,500) Balance at end of period $ 27,322 $ 51,691 $ 10,552 $ 3,197 $ 38,471 $ 6,668 $ 62,465 $ 200,366 |
Schedule of activity in the Liability for Credit Losses for Off-Balance-Sheet Financial Instruments | Three Months Ended March 31, 2022 Commercial Lending Residential Lending Commercial Commercial Home and Real Lease Residential Equity (dollars in thousands) Industrial Estate Construction Financing Mortgage Line Consumer Total Reserve for unfunded commitments: Balance at beginning of period $ 8,615 $ 2,114 $ 8,963 $ — $ 15 $ 10,546 $ 69 $ 30,322 Increase (decrease) in Provision 693 (325) (917) — (12) (780) (23) (1,364) Balance at end of period $ 9,308 $ 1,789 $ 8,046 $ — $ 3 $ 9,766 $ 46 $ 28,958 Three Months Ended March 31, 2021 Commercial Lending Residential Lending Commercial Commercial Home and Real Lease Residential Equity (dollars in thousands) Industrial Estate Construction Financing Mortgage Line Consumer Total Reserve for unfunded commitments: Balance at beginning of period $ 11,719 $ 1,328 $ 9,037 $ — $ 2 $ 8,452 $ 65 $ 30,603 Increase (decrease) in Provision 4,410 (216) (724) — (2) 48 (16) 3,500 Balance at end of period $ 16,129 $ 1,112 $ 8,313 $ — $ — $ 8,500 $ 49 $ 34,103 |
Schedule of amortized cost basis by year of origination and credit quality indicator | The amortized cost basis by year of origination and credit quality indicator of the Company’s loans and leases as of March 31, 2022 was as follows: Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans Amortized Amortized (dollars in thousands) 2022 2021 2020 2019 2018 Prior Cost Basis Cost Basis Total Commercial Lending Commercial and Industrial Risk rating: Pass $ 158,853 $ 483,473 $ 98,061 $ 184,897 $ 79,810 $ 166,075 $ 594,007 $ 31,048 $ 1,796,224 Special Mention 2,876 356 3,898 3,983 52 5,594 1,601 867 19,227 Substandard — 337 1,296 1,776 13,251 757 15,877 138 33,432 Other (1) 4,028 10,510 6,171 6,450 3,516 1,664 42,312 — 74,651 Total Commercial and Industrial 165,757 494,676 109,426 197,106 96,629 174,090 653,797 32,053 1,923,534 Commercial Real Estate Risk rating: Pass 240,807 682,346 351,893 523,735 471,899 1,291,495 77,724 14,752 3,654,651 Special Mention — — — 47,897 473 39,064 696 — 88,130 Substandard — — — — 1,757 15,280 4 — 17,041 Other (1) — — — — — 158 — — 158 Total Commercial Real Estate 240,807 682,346 351,893 571,632 474,129 1,345,997 78,424 14,752 3,759,980 Construction Risk rating: Pass 6,160 167,645 118,526 136,209 112,919 89,172 19,470 — 650,101 Special Mention — — — 244 705 353 — — 1,302 Substandard — — — — 357 827 — — 1,184 Other (1) 7,871 29,932 5,774 2,957 3,922 4,435 822 — 55,713 Total Construction 14,031 197,577 124,300 139,410 117,903 94,787 20,292 — 708,300 Lease Financing Risk rating: Pass 3,913 31,974 57,192 45,698 8,813 69,286 — — 216,876 Special Mention — 479 2,672 1,360 12 20 — — 4,543 Substandard — — 270 123 15 1,343 — — 1,751 Total Lease Financing 3,913 32,453 60,134 47,181 8,840 70,649 — — 223,170 Total Commercial Lending $ 424,508 $ 1,407,052 $ 645,753 $ 955,329 $ 697,501 $ 1,685,523 $ 752,513 $ 46,805 $ 6,614,984 (continued) Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in thousands) 2022 2021 2020 2019 2018 Prior Cost Basis Cost Basis Total Residential Lending Residential Mortgage FICO: 740 and greater $ 185,434 $ 1,096,789 $ 615,500 $ 264,419 $ 183,368 $ 1,012,447 $ — $ — $ 3,357,957 680 - 739 26,812 128,172 72,766 44,872 25,913 159,950 — — 458,485 620 - 679 3,088 13,196 12,304 5,995 5,021 39,145 — — 78,749 550 - 619 — 2,267 1,570 720 731 8,847 — — 14,135 Less than 550 2,116 228 60 — 82 4,098 — — 6,584 No Score (3) 6,550 15,806 7,676 13,968 17,545 56,444 — — 117,989 Other (2) 18,485 30,872 16,042 9,704 10,810 32,600 43 1,369 119,925 Total Residential Mortgage 242,485 1,287,330 725,918 339,678 243,470 1,313,531 43 1,369 4,153,824 Home Equity Line FICO: 740 and greater — — — — — — 705,570 1,892 707,462 680 - 739 — — — — — — 147,290 3,202 150,492 620 - 679 — — — — — — 39,370 2,129 41,499 550 - 619 — — — — — — 10,310 1,426 11,736 Less than 550 — — — — — — 1,482 494 1,976 No Score (3) — — — — — — 4,936 — 4,936 Total Home Equity Line — — — — — — 908,958 9,143 918,101 Total Residential Lending 242,485 1,287,330 725,918 339,678 243,470 1,313,531 909,001 10,512 5,071,925 Consumer Lending FICO: 740 and greater 60,821 145,550 74,436 68,970 46,731 24,261 112,298 217 533,284 680 - 739 26,319 87,933 50,976 48,120 28,498 18,340 68,407 647 329,240 620 - 679 6,222 39,016 19,677 25,307 16,453 14,473 30,462 1,038 152,648 550 - 619 292 7,159 7,314 11,776 8,904 8,485 10,352 1,129 55,411 Less than 550 53 2,003 3,445 5,732 2,939 3,089 3,166 471 20,898 No Score (3) 280 458 9 53 35 52 35,063 337 36,287 Other (2) 502 4,247 363 1,691 4 2,181 68,078 — 77,066 Total Consumer Lending 94,489 286,366 156,220 161,649 103,564 70,881 327,826 3,839 1,204,834 Total Loans and Leases $ 761,482 $ 2,980,748 $ 1,527,891 $ 1,456,656 $ 1,044,535 $ 3,069,935 $ 1,989,340 $ 61,156 $ 12,891,743 (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. (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. (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. The amortized cost basis by year of origination and credit quality indicator of the Company’s loans and leases as of December 31, 2021 was as follows: Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans Amortized Amortized (dollars in thousands) 2021 2020 2019 2018 2017 Prior Cost Basis Cost Basis Total Commercial Lending Commercial and Industrial Risk rating: Pass $ 623,098 $ 129,665 $ 223,388 $ 88,409 $ 29,380 $ 168,591 $ 644,947 $ 40,193 $ 1,947,671 Special Mention 397 4,382 4,213 12,552 974 5,313 4,804 986 33,621 Substandard 354 1,380 1,951 1,285 60 3,551 17,893 1,043 27,517 Other (1) 13,277 7,070 7,741 4,453 1,995 370 43,384 — 78,290 Total Commercial and Industrial 637,126 142,497 237,293 106,699 32,409 177,825 711,028 42,222 2,087,099 Commercial Real Estate Risk rating: Pass 693,370 338,140 533,887 487,739 415,186 940,732 78,479 14,891 3,502,424 Special Mention — — 48,499 7,470 25,513 30,255 7,600 — 119,337 Substandard — — — 1,776 164 15,303 459 — 17,702 Other (1) — — — — — 160 — — 160 Total Commercial Real Estate 693,370 338,140 582,386 496,985 440,863 986,450 86,538 14,891 3,639,623 Construction Risk rating: Pass 154,558 107,767 210,314 155,311 62,770 48,021 22,859 — 761,600 Special Mention — — 244 707 — 356 — — 1,307 Substandard — — — 363 — 839 — — 1,202 Other (1) 26,835 8,875 4,317 4,308 2,684 2,048 793 — 49,860 Total Construction 181,393 116,642 214,875 160,689 65,454 51,264 23,652 — 813,969 Lease Financing Risk rating: Pass 33,980 60,650 48,236 9,449 15,009 57,130 — — 224,454 Special Mention 501 2,702 1,506 311 153 — — — 5,173 Substandard — 270 140 16 871 470 — — 1,767 Total Lease Financing 34,481 63,622 49,882 9,776 16,033 57,600 — — 231,394 Total Commercial Lending $ 1,546,370 $ 660,901 $ 1,084,436 $ 774,149 $ 554,759 $ 1,273,139 $ 821,218 $ 57,113 $ 6,772,085 (continued) Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in thousands) 2021 2020 2019 2018 2017 Prior Cost Basis Cost Basis Total Residential Lending Residential Mortgage FICO: 740 and greater $ 1,101,958 $ 635,061 $ 286,993 $ 198,622 $ 251,906 $ 829,175 $ — $ — $ 3,303,715 680 - 739 140,997 81,590 45,163 27,315 32,855 125,906 — — 453,826 620 - 679 15,781 11,943 5,268 10,149 9,069 37,404 — — 89,614 550 - 619 1,735 873 698 533 2,033 7,475 — — 13,347 Less than 550 — — — 345 2,603 2,838 — — 5,786 No Score (3) 18,882 7,938 15,051 18,107 17,333 42,185 — — 119,496 Other (2) 25,625 16,263 10,242 11,297 16,242 17,152 44 718 97,583 Total Residential Mortgage 1,304,978 753,668 363,415 266,368 332,041 1,062,135 44 718 4,083,367 Home Equity Line FICO: 740 and greater — — — — — — 671,566 1,873 673,439 680 - 739 — — — — — — 141,889 3,968 145,857 620 - 679 — — — — — — 37,815 2,500 40,315 550 - 619 — — — — — — 9,090 948 10,038 Less than 550 — — — — — — 2,574 68 2,642 No Score (3) — — — — — — 4,317 — 4,317 Total Home Equity Line — — — — — — 867,251 9,357 876,608 Total Residential Lending 1,304,978 753,668 363,415 266,368 332,041 1,062,135 867,295 10,075 4,959,975 Consumer Lending FICO: 740 and greater 155,929 83,337 79,617 56,707 24,525 8,067 117,843 209 526,234 680 - 739 93,214 56,327 55,126 34,049 17,527 6,315 69,366 707 332,631 620 - 679 41,671 21,986 28,491 19,403 12,952 5,324 31,165 1,175 162,167 550 - 619 7,836 8,265 13,265 10,497 7,469 3,244 10,359 1,089 62,024 Less than 550 2,272 3,867 6,646 3,484 2,739 1,175 3,195 536 23,914 No Score (3) 481 19 56 40 65 2 35,414 320 36,397 Other (2) 4,737 365 1,712 17 2,182 31 77,528 — 86,572 Total Consumer Lending 306,140 174,166 184,913 124,197 67,459 24,158 344,870 4,036 1,229,939 Total Loans and Leases $ 3,157,488 $ 1,588,735 $ 1,632,764 $ 1,164,714 $ 954,259 $ 2,359,432 $ 2,033,383 $ 71,224 $ 12,961,999 (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. (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. (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. |
Schedule of revolving loans that were converted to term loans | Three Months Ended (dollars in thousands) March 31, 2022 Commercial and industrial $ 203 Home equity line 1,015 Consumer 354 Total Revolving Loans Converted to Term Loans During the Period $ 1,572 Three Months Ended (dollars in thousands) March 31, 2021 Commercial and industrial $ 229 Home equity line 1,079 Consumer 493 Total Revolving Loans Converted to Term Loans During the Period $ 1,801 |
Schedule of aging analyses of past due loans and leases | March 31, 2022 Past Due Loans and Greater Leases Past Than or Due 90 Days 30-59 60-89 Equal to or More and Days Days 90 Days Total Total Loans Still Accruing (dollars in thousands) Past Due Past Due Past Due Past Due Current and Leases Interest Commercial and industrial $ 2,825 $ 2,351 $ 1,160 $ 6,336 $ 1,917,198 $ 1,923,534 $ 591 Commercial real estate 2,503 — 727 3,230 3,756,750 3,759,980 — Construction 247 — — 247 708,053 708,300 — Lease financing — — 75 75 223,095 223,170 — Residential mortgage 1,229 1,301 5,665 8,195 4,145,629 4,153,824 13 Home equity line 1,640 589 2,252 4,481 913,620 918,101 2,252 Consumer 14,144 2,589 1,588 18,321 1,186,513 1,204,834 1,588 Total $ 22,588 $ 6,830 $ 11,467 $ 40,885 $ 12,850,858 $ 12,891,743 $ 4,444 December 31, 2021 Past Due Loans and Greater Leases Past Than or Due 90 Days 30-59 60-89 Equal to or More and Days Days 90 Days Total Total Loans Still Accruing (dollars in thousands) Past Due Past Due Past Due Past Due Current and Leases Interest Commercial and industrial $ 1,195 $ 1,195 $ 1,318 $ 3,708 $ 2,083,391 $ 2,087,099 $ 740 Commercial real estate 631 — — 631 3,638,992 3,639,623 — Construction 162 — — 162 813,807 813,969 — Lease financing — — — — 231,394 231,394 — Residential mortgage 3,030 1,002 5,617 9,649 4,073,718 4,083,367 987 Home equity line 1,538 538 3,681 5,757 870,851 876,608 3,681 Consumer 16,534 3,366 1,800 21,700 1,208,239 1,229,939 1,800 Total $ 23,090 $ 6,101 $ 12,416 $ 41,607 $ 12,920,392 $ 12,961,999 $ 7,208 |
Schedule of amortized cost basis of loans and leases on nonaccrual status | March 31, 2022 Nonaccrual Loans and Leases With No Nonaccrual Allowance Loans (dollars in thousands) for Credit Losses and Leases Commercial and industrial $ — $ 707 Commercial real estate 727 727 Lease financing — 75 Residential mortgage 2,163 7,092 Total Nonaccrual Loans and Leases $ 2,890 $ 8,601 December 31, 2021 Nonaccrual Loans and Leases With No Nonaccrual Allowance Loans (dollars in thousands) for Credit Losses and Leases Commercial and industrial $ — $ 718 Commercial real estate 727 727 Residential mortgage 1,192 5,637 Total Nonaccrual Loans and Leases $ 1,919 $ 7,082 |
Schedule of information related to loans modified in a TDR | Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Number of Recorded Related Number of Recorded Related (dollars in thousands) Contracts (1) Investment (2) ACL Contracts (1) Investment (2) ACL Commercial and industrial — $ — $ — 17 $ 2,945 $ 1,648 Construction — — — 2 716 342 Residential mortgage — — — 10 4,916 374 Consumer 144 1,759 202 1,690 15,763 11,832 Total 144 $ 1,759 $ 202 1,719 $ 24,340 $ 14,196 (1) The number of contracts does not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period. (2) The recorded investment balances reflect all partial paydowns and charge-offs since the modification date and do not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period. |
Schedule of TDRs that defaulted in period within 12 months of their permanent modification date | Three Months Ended March 31, 2022 2021 Number of Recorded Number of Recorded (dollars in Contracts (1) Investment (2) Contracts (1) Investment (2) Commercial and industrial 1 $ 216 2 $ 397 Construction — — 1 361 Residential mortgage — — 1 372 Consumer 142 1,991 93 1,068 Total 143 $ 2,207 97 $ 2,198 (1) The number of contracts does not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period. (2) The recorded investment balances reflect all partial paydowns and charge-offs since the modification date and do not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period. |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Mortgage Servicing Rights | |
Schedule of estimated future amortization expense for MSRs | Estimated (dollars in thousands) Amortization Under one year $ 1,296 One to two years 1,094 Two to three years 928 Three to four years 787 Four to five years 672 |
Schedule of details of the Company's MSRs | March 31, December 31, (dollars in thousands) 2022 2021 Gross carrying amount $ 69,187 $ 69,103 Less: accumulated amortization 61,537 60,801 Net carrying value $ 7,650 $ 8,302 |
Schedule of changes in amortized MSRs | Three Months Ended March 31, (dollars in thousands) 2022 2021 Balance at beginning of period $ 8,302 $ 10,731 Originations 84 683 Amortization (736) (545) Balance at end of period $ 7,650 $ 10,869 Fair value of amortized MSRs at beginning of period $ 12,243 $ 14,029 Fair value of amortized MSRs at end of period $ 13,585 $ 14,921 |
Schedule of quantitative assumptions used in determining lower of cost or fair value of MSRs | March 31, 2022 December 31, 2021 Weighted Weighted Range Average Range Average Conditional prepayment rate 10.93 % - 24.10 % 11.19 % 13.77 % - 25.19 % 14.61 % Life in years (of the MSR) 2.18 - 6.09 4.70 1.99 - 5.31 5.03 Weighted-average coupon rate 3.56 % - 6.47 % 3.69 % 3.58 % - 6.56 % 3.71 % Discount rate 10.00 % - 10.01 % 10.00 % 10.00 % - 10.01 % 10.00 % |
Transfers of Financial Assets (
Transfers of Financial Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Transfers of Financial Assets | |
Schedule of carrying amounts of assets pledged as collateral | (dollars in thousands) March 31, 2022 December 31, 2021 Public deposits $ 1,783,882 $ 1,913,369 Federal Home Loan Bank 2,269,584 2,380,042 Federal Reserve Bank 1,725,291 1,724,279 ACH transactions 112,800 115,038 Interest rate swaps 20,889 48,430 Total $ 5,912,446 $ 6,181,158 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Deposits | |
Schedule of deposits by category | (dollars in thousands) March 31, 2022 December 31, 2021 U.S.: Interest-bearing $ 11,642,353 $ 11,553,298 Noninterest-bearing 8,855,088 8,498,187 Foreign: Interest-bearing 862,468 868,985 Noninterest-bearing 910,521 895,676 Total deposits $ 22,270,430 $ 21,816,146 |
Schedule of maturity distribution of time certificates of deposit | The following table presents the maturity distribution of time certificates of deposit as of March 31, 2022: Under $250,000 (dollars in thousands) $250,000 or More Total Three months or less $ 228,660 $ 155,546 $ 384,206 Over three through six months 152,926 119,732 272,658 Over six through twelve months 360,870 409,218 770,088 One to two years 80,002 20,850 100,852 Two to three years 50,970 10,126 61,096 Three to four years 41,724 19,291 61,015 Four to five years 42,545 9,206 51,751 Thereafter 172 — 172 Total $ 957,869 $ 743,969 $ 1,701,838 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Loss | |
Schedule of changes in accumulated other comprehensive income (loss) | Income Tax Pre-tax Benefit Net of (dollars in thousands) Amount (Expense) Tax Accumulated other comprehensive loss at December 31, 2021 $ (165,967) $ 44,274 $ (121,693) Three months ended March 31, 2022 Investment securities: Unrealized net losses arising during the period (538,085) 143,534 (394,551) Net change in investment securities (538,085) 143,534 (394,551) Cash flow derivative hedges: Unrealized net losses on cash flow derivative hedges arising during the period (1,716) 458 (1,258) Net change in cash flow derivative hedges (1,716) 458 (1,258) Other comprehensive loss (539,801) 143,992 (395,809) Accumulated other comprehensive loss at March 31, 2022 $ (705,768) $ 188,266 $ (517,502) Income Tax Pre-tax Benefit Net of (dollars in thousands) Amount (Expense) Tax Accumulated other comprehensive income at December 31, 2020 $ 43,098 $ (11,494) $ 31,604 Three months ended March 31, 2021 Investment securities: Unrealized net losses arising during the period (102,336) 27,297 (75,039) Net change in investment securities (102,336) 27,297 (75,039) Other comprehensive loss (102,336) 27,297 (75,039) Accumulated other comprehensive loss at March 31, 2021 $ (59,238) $ 15,803 $ (43,435) |
Summary of changes in accumulated other comprehensive income (loss), net of tax | Pensions Accumulated and Cash Flow Other Other Investment Derivative Comprehensive (dollars in thousands) Benefits Securities Hedges Loss Three Months Ended March 31, 2022 Balance at beginning of year $ (24,390) $ (97,303) $ — $ (121,693) Other comprehensive loss — (394,551) (1,258) (395,809) Balance at end of period $ (24,390) $ (491,854) $ (1,258) $ (517,502) Three Months Ended March 31, 2021 Balance at beginning of year $ (31,737) $ 63,341 $ — $ 31,604 Other comprehensive loss — (75,039) — (75,039) Balance at end of period $ (31,737) $ (11,698) $ — $ (43,435) |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Regulatory Capital Requirements | |
Schedule of regulatory capital ratios | First Hawaiian Minimum Well- First Hawaiian, Inc. Bank Capital Capitalized (dollars in thousands) Amount Ratio Amount Ratio Ratio (1) Ratio (1) March 31, 2022: Common equity tier 1 capital to risk-weighted assets $ 1,806,115 12.27 % $ 1,795,292 12.19 % 4.50 % 6.50 % Tier 1 capital to risk-weighted assets 1,806,115 12.27 % 1,795,292 12.19 % 6.00 % 8.00 % Total capital to risk-weighted assets 1,985,353 13.48 % 1,974,530 13.41 % 8.00 % 10.00 % Tier 1 capital to average assets (leverage ratio) 1,806,115 7.50 % 1,795,292 7.46 % 4.00 % 5.00 % December 31, 2021: Common equity tier 1 capital to risk-weighted assets $ 1,783,113 12.24 % $ 1,769,214 12.14 % 4.50 % 6.50 % Tier 1 capital to risk-weighted assets 1,783,113 12.24 % 1,769,214 12.14 % 6.00 % 8.00 % Total capital to risk-weighted assets 1,965,280 13.49 % 1,951,377 13.40 % 8.00 % 10.00 % Tier 1 capital to average assets (leverage ratio) 1,783,113 7.24 % 1,769,214 7.18 % 4.00 % 5.00 % (1) As defined by the regulations issued by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation (“FDIC”). |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Financial Instruments | |
Summary of notional amounts and fair values of derivatives held | March 31, 2022 December 31, 2021 Fair Value Fair Value Notional Asset Liability Notional Asset Liability (dollars in thousands) Amount Derivatives (1) Derivatives (2) Amount Derivatives (1) Derivatives (2) Derivatives designated as hedging instruments: Interest rate swaps $ 267,500 $ 301 $ (1,716) $ 67,500 $ — $ (1,211) Derivatives not designated as hedging instruments: Interest rate swaps 2,908,144 16,107 (11,697) 2,827,582 50,898 — Visa derivative 100,887 — (5,794) 105,916 — (5,530) Interest rate caps and floors — — — 148,800 27 (27) Foreign exchange contracts 1,005 6 — 217 — — (1) The positive fair values of derivative assets are included in other assets. (2) The negative fair values of derivative liabilities are included in other liabilities. |
Schedule of net gains and losses recognized in income related to derivatives in fair value hedging relationships | Gains (losses) recognized in Three Months Ended the consolidated statements March 31, (dollars in of income line item 2022 2021 Gains (losses) on fair value hedging relationships recognized in interest income: Recognized on interest rate swap Loans and lease financing $ 1,512 $ 193 Recognized on hedged item Loans and lease financing (1,617) (249) |
Schedule of amounts related to cumulative basis adjustments for fair value hedges | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset Carrying Amount of the Hedged Asset (dollars in March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Line item in the consolidated balance sheets in which the hedged item is included Loans and leases $ 67,181 $ 68,707 $ (319) $ 1,207 |
Summary of impact on pretax earnings of derivatives not designated as hedges | Net gains (losses) recognized Three Months Ended in the consolidated statements March 31, (dollars in of income line item 2022 2021 Derivatives Not Designated As Hedging Instruments: Visa derivative Other noninterest income (1,480) 26 Foreign exchange contracts Other noninterest income 6 — |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingent Liabilities | |
Schedule of financial instruments with off-balance sheet risk | March 31, December 31, (dollars in 2022 2021 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit $ 6,546,389 $ 6,490,301 Standby letters of credit 182,423 182,447 Commercial letters of credit 7,149 3,307 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contracts with Customers | |
Summary of revenues disaggregated by type of service and business segments | Three Months Ended March 31, 2022 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Net interest income (1) $ 94,048 $ 35,088 $ 4,736 $ 133,872 Service charges on deposit accounts 6,650 346 505 7,501 Credit and debit card fees — 13,026 1,216 14,242 Other service charges and fees 6,563 781 369 7,713 Trust and investment services income 8,883 — — 8,883 Other 128 2,584 258 2,970 Not in scope of Topic 606 (1) 1,091 1,918 (2,938) 71 Total noninterest income 23,315 18,655 (590) 41,380 Total revenue $ 117,363 $ 53,743 $ 4,146 $ 175,252 (1) Most of the Company’s revenue is not within the scope of ASU No. 2014-09, Revenue from Contracts with Customers . The guidance explicitly excludes net interest income from financial assets and liabilities as well as other noninterest income from loans, leases, investment securities and derivative financial instruments. Three Months Ended March 31, 2021 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Net interest income (1) $ 94,454 $ 38,266 $ (3,562) $ 129,158 Service charges on deposit accounts 6,086 223 409 6,718 Credit and debit card fees — 12,525 1,428 13,953 Other service charges and fees 5,564 475 352 6,391 Trust and investment services income 8,492 — — 8,492 Other 79 1,496 336 1,911 Not in scope of Topic 606 (1) 3,354 1,322 1,727 6,403 Total noninterest income 23,575 16,041 4,252 43,868 Total revenue $ 118,029 $ 54,307 $ 690 $ 173,026 (1) Most of the Company’s revenue is not within the scope of ASU No. 2014-09, Revenue from Contracts with Customers. The guidance explicitly excludes net interest income from financial assets and liabilities as well as other noninterest income from loans, leases, investment securities and derivative financial instruments. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings per Share | |
Schedule of computations of basic and diluted earnings per share | Three Months Ended March 31, (dollars in 2022 2021 Numerator: Net income $ 57,719 $ 57,693 Denominator: Basic: weighted-average shares outstanding 127,556,242 129,933,104 Add: weighted-average equity-based awards 564,884 656,774 Diluted: weighted-average shares outstanding 128,121,126 130,589,878 Basic earnings per share $ 0.45 $ 0.44 Diluted earnings per share $ 0.45 $ 0.44 |
Noninterest Income and Nonint_2
Noninterest Income and Noninterest Expense (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Noninterest Income and Noninterest Expense | |
Schedule of components of net periodic benefit cost | Income line item where recognized in Pension Benefits Other Benefits (dollars in the consolidated statements of income 2022 2021 2022 2021 Three Months Ended March 31, Service cost Salaries and employee benefits $ — $ — $ 215 $ 264 Interest cost Other noninterest expense 1,361 1,231 144 131 Expected return on plan assets Other noninterest expense (783) (766) — — Recognized net actuarial loss (gain) Other noninterest expense 1,268 1,720 (101) — Total net periodic benefit cost $ 1,846 $ 2,185 $ 258 $ 395 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value | |
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis | Visa Derivative (dollars in 2022 2021 Three Months Ended March 31, Balance as of January 1, $ (5,530) $ (4,554) Total net (losses) gains included in other noninterest income (1,480) 26 Settlements 1,216 1,146 Balance as of March 31, $ (5,794) $ (3,382) Total net (losses) gains included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of March 31, $ (1,480) $ 26 |
Summary of estimated fair value of financial instruments not required to be carried at fair value on a recurring basis | March 31, 2022 Fair Value Measurements Quoted Prices in Significant Significant Active Markets Other Unobservable for Identical Observable Inputs (dollars in thousands) Book Value Assets (Level 1) Inputs (Level 2) (Level 3) Total Financial assets: Cash and cash equivalents $ 1,626,160 $ 274,022 $ 1,352,138 $ — $ 1,626,160 Loans (1) 12,668,573 — — 12,447,576 12,447,576 Financial liabilities: Time deposits (2) $ 1,701,838 $ — $ 1,681,170 $ — $ 1,681,170 December 31, 2021 Fair Value Measurements Quoted Prices in Significant Significant Active Markets Other Unobservable for Identical Observable Inputs (dollars in thousands) Book Value Assets (Level 1) Inputs (Level 2) (Level 3) Total Financial assets: Cash and cash equivalents $ 1,258,469 $ 246,716 $ 1,011,753 $ — $ 1,258,469 Loans held for sale 538 — 542 — 542 Loans (1) 12,730,605 — — 12,791,811 12,791,811 Financial liabilities: Time deposits (2) $ 1,776,438 $ — $ 1,773,321 $ — $ 1,773,321 (1) Excludes financing leases of $223.2 million at March 31, 2022 and $231.4 million at December 31, 2021. (2) Excludes deposit liabilities with no defined or contractual maturity of $20.6 billion as of March 31, 2022 and $20.0 billion as of December 31, 2021. |
Significant unobservable inputs used in fair value measurements for Level 3 assets and liabilities measured at fair value on a recurring basis | Quantitative Information about Level 3 Fair Value Measurements at March 31, 2022 Significant (dollars in thousands) Fair value Valuation Technique Unobservable Input Range Visa derivative $ (5,794) Discounted Cash Flow Expected Conversation Rate - 1.6181 (1) 1.5885 - 1.6181 Expected Term - 1 year (2) 0.5 to 1.5 years Growth Rate - 26% (3) 10% - 38% Quantitative Information about Level 3 Fair Value Measurements at December 31, 2021 Significant (dollars in thousands) Fair value Valuation Technique Unobservable Input Range Visa derivative $ (5,530) Discounted Cash Flow Expected Conversation Rate - 1.6181 (1) 1.5885-1.6181 Expected Term - 1 year (2) 0.5 to 1.5 years Growth Rate - 26% (3) 10% - 38% (1) Due to the uncertainty in the movement of the conversion rate, the current conversion rate was utilized in the fair value calculation. (2) The expected term of 1 year was based on the median of 0.5 to 1.5 years. (3) The growth rate was based on the arithmetic average of analyst price targets. |
Reportable Operating Segments (
Reportable Operating Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Reportable Operating Segments | |
Schedule of selected business segment financial information | Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Three Months Ended March 31, 2022 Net interest income $ 94,048 $ 35,088 $ 4,736 $ 133,872 Benefit for credit losses 1,841 2,542 1,364 5,747 Net interest income after benefit for credit losses 95,889 37,630 6,100 139,619 Noninterest income 23,315 18,655 (590) 41,380 Noninterest expense (70,220) (26,505) (7,317) (104,042) Income (loss) before (provision) benefit for income taxes 48,984 29,780 (1,807) 76,957 (Provision) benefit for income taxes (12,150) (7,253) 165 (19,238) Net income (loss) $ 36,834 $ 22,527 $ (1,642) $ 57,719 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Three Months Ended March 31, 2021 Net interest income (expense) $ 94,454 $ 38,266 $ (3,562) $ 129,158 Benefit (Provision) for credit losses 1,470 2,030 (3,500) — Net interest income (expense) after provision for credit losses 95,924 40,296 (7,062) 129,158 Noninterest income 23,575 16,041 4,252 43,868 Noninterest expense (62,889) (22,478) (10,939) (96,306) Income (loss) before (provision) benefit for income taxes 56,610 33,859 (13,749) 76,720 (Provision) benefit for income taxes (14,126) (8,344) 3,443 (19,027) Net income (loss) $ 42,484 $ 25,515 $ (10,306) $ 57,693 |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Basis of Presentation (Details) | Mar. 31, 2022 |
First Hawaiian, Inc. (FHI) | |
Capitalization | |
Outstanding common stock owned (as a percent) | 100.00% |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available for sale debt securities | ||
Amortized Cost | $ 8,733,170 | $ 8,560,733 |
Unrealized Gains | 568 | 24,595 |
Unrealized Losses | (671,354) | (157,296) |
Total available-for-sale securities, Fair value, | 8,062,384 | 8,428,032 |
Available-for-sale investment securities | ||
Accrued interest receivable related to available-for-sale investment securities | 15,000 | 14,100 |
Collateralized Loan Obligations | ||
Available for sale debt securities | ||
Amortized Cost | 221,607 | 105,245 |
Unrealized Gains | 25 | 2 |
Unrealized Losses | (748) | |
Total available-for-sale securities, Fair value, | 220,884 | 105,247 |
U.S. Treasury and government agency debt securities | ||
Available for sale debt securities | ||
Amortized Cost | 213,572 | 196,662 |
Unrealized Gains | 125 | |
Unrealized Losses | (14,028) | (4,224) |
Total available-for-sale securities, Fair value, | 199,544 | 192,563 |
Residential - Government agency | ||
Available for sale debt securities | ||
Amortized Cost | 128,080 | 135,764 |
Unrealized Gains | 1,791 | |
Unrealized Losses | (5,115) | (291) |
Total available-for-sale securities, Fair value, | 122,965 | 137,264 |
Residential - Government-sponsored enterprises | ||
Available for sale debt securities | ||
Amortized Cost | 1,450,070 | 1,496,605 |
Unrealized Gains | 428 | 6,914 |
Unrealized Losses | (88,153) | (12,419) |
Total available-for-sale securities, Fair value, | 1,362,345 | 1,491,100 |
Commercial - Government agency | ||
Available for sale debt securities | ||
Amortized Cost | 358,910 | 392,443 |
Unrealized Gains | 53 | 1,741 |
Unrealized Losses | (25,874) | (6,521) |
Total available-for-sale securities, Fair value, | 333,089 | 387,663 |
Commercial - Government-sponsored enterprises | ||
Available for sale debt securities | ||
Amortized Cost | 1,426,831 | 1,415,511 |
Unrealized Gains | 2,646 | |
Unrealized Losses | (176,997) | (48,714) |
Total available-for-sale securities, Fair value, | 1,249,834 | 1,369,443 |
Government agency | ||
Available for sale debt securities | ||
Amortized Cost | 2,153,236 | 2,103,187 |
Unrealized Gains | 59 | 7,768 |
Unrealized Losses | (143,514) | (31,432) |
Total available-for-sale securities, Fair value, | 2,009,781 | 2,079,523 |
Government-sponsored enterprises | ||
Available for sale debt securities | ||
Amortized Cost | 2,719,829 | 2,671,131 |
Unrealized Gains | 3 | 3,608 |
Unrealized Losses | (210,125) | (53,695) |
Total available-for-sale securities, Fair value, | 2,509,707 | 2,621,044 |
Debt securities issued by states and political subdivisions | ||
Available for sale debt securities | ||
Amortized Cost | 61,035 | 44,185 |
Unrealized Losses | (6,800) | |
Total available-for-sale securities, Fair value, | $ 54,235 | $ 44,185 |
Investment Securities - Proceed
Investment Securities - Proceeds from Calls and Sales, Realized Gains and Losses and Interest Income Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Proceeds from calls and sales of investment securities and other assets | ||
Proceeds from calls of investment securities | $ 1 | $ 0.1 |
Proceeds from sales of investment securities | 0 | 0 |
Debt Securities, Available-for-sale, Realized Gain (Loss) [Abstract] | ||
Gross realized gains on sales of investment securities | 0 | 0 |
Gross realized losses on sales of investment securities | 0 | 0 |
Income tax benefit related to net realized loss on sale of investment securities | 0 | 0 |
Interest income from taxable and nontaxable investment securities | ||
Interest income from taxable investment securities | 29.2 | 22.1 |
Interest income from non-taxable investment securities | $ 2.9 | $ 1 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Value, by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in one year or less | $ 30,148 | |
Due after one year through five years | 39,854 | |
Due after five years through ten years | 178,200 | |
Due after ten years | 248,012 | |
Total contractual maturities | 496,214 | |
Amortized Cost | 8,733,170 | $ 8,560,733 |
Fair Value | ||
Due in one year or less | 29,944 | |
Due after one year through five years | 38,512 | |
Due after five years through ten years | 172,750 | |
Due after ten years | 233,457 | |
Total contractual maturities | 474,663 | |
Total available-for-sale securities, Fair value, | 8,062,384 | 8,428,032 |
Mortgage-backed securities: | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 3,363,891 | |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 3,068,233 | |
Residential - Government agency | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 128,080 | |
Amortized Cost | 128,080 | 135,764 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 122,965 | |
Total available-for-sale securities, Fair value, | 122,965 | 137,264 |
Residential - Government-sponsored enterprises | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 1,450,070 | |
Amortized Cost | 1,450,070 | 1,496,605 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 1,362,345 | |
Total available-for-sale securities, Fair value, | 1,362,345 | 1,491,100 |
Commercial - Government agency | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 358,910 | |
Amortized Cost | 358,910 | 392,443 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 333,089 | |
Total available-for-sale securities, Fair value, | 333,089 | 387,663 |
Commercial - Government-sponsored enterprises | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 1,426,831 | |
Amortized Cost | 1,426,831 | 1,415,511 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 1,249,834 | |
Total available-for-sale securities, Fair value, | 1,249,834 | 1,369,443 |
Collateralized mortgage obligations | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 4,873,065 | |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 4,519,488 | |
Government agency | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 2,153,236 | |
Amortized Cost | 2,153,236 | 2,103,187 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 2,009,781 | |
Total available-for-sale securities, Fair value, | 2,009,781 | 2,079,523 |
Government-sponsored enterprises | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 2,719,829 | |
Amortized Cost | 2,719,829 | 2,671,131 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 2,509,707 | |
Total available-for-sale securities, Fair value, | $ 2,509,707 | $ 2,621,044 |
Investment Securities - Pledged
Investment Securities - Pledged Securities and Concentration Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Pledged securities | ||
Total pledged securities | $ 2,000,000,000 | $ 2,100,000,000 |
Securities pledged to secure public deposits | 1,783,882,000 | 1,913,369,000 |
Securities pledged to secure other financial transactions | 186,800,000 | 193,200,000 |
Concentration of risk | ||
Credit losses recognized on securities | 0 | 0 |
Non-government issuer | ||
Concentration of risk | ||
Securities of issuers in excess of 10% of stockholders' equity | $ 0 | $ 0 |
Investment Securities - Unreali
Investment Securities - Unrealized Gross Losses and Fair Values of Securities in a Continuous Loss Position (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)securityshares | Dec. 31, 2021USD ($)securityshares | |
Securities in the available-for-sale portfolio in a continuous loss position | ||
Number of individual securities in a continuous loss position | security | 499 | 318 |
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | $ (471,100) | $ (125,923) |
12 Months or More Unrealized Losses | (200,254) | (31,373) |
Total Unrealized Losses | (671,354) | (157,296) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 6,209,790 | 6,044,029 |
12 Months or More Fair Value | 1,587,476 | 497,202 |
Total Fair Value | 7,797,266 | 6,541,231 |
Credit losses | 0 | $ 0 |
Amortized cost basis | $ 0 | |
Investment securities comprised of collateralized loan obligations rated AA or better and obligations issued by local state and political subdivisions rated AA or better | 4.00% | 4.00% |
Class B restricted shares | Visa | ||
Time in Continuous Loss, Fair Value | ||
Shares held | shares | 120,000 | 120,000 |
Cost basis | $ 0 | $ 0 |
U.S. Treasury and government agency debt securities | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (4,314) | (3,355) |
12 Months or More Unrealized Losses | (9,714) | (869) |
Total Unrealized Losses | (14,028) | (4,224) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 93,417 | 134,468 |
12 Months or More Fair Value | 106,127 | 16,642 |
Total Fair Value | 199,544 | 151,110 |
Residential - Government-sponsored enterprises | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (75,047) | (10,876) |
12 Months or More Unrealized Losses | (13,106) | (1,543) |
Total Unrealized Losses | (88,153) | (12,419) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 1,209,850 | 1,230,104 |
12 Months or More Fair Value | 106,145 | 32,415 |
Total Fair Value | 1,315,995 | 1,262,519 |
Residential - Government agency | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (5,115) | (291) |
Total Unrealized Losses | (5,115) | (291) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 122,965 | 51,231 |
Total Fair Value | 122,965 | 51,231 |
Commercial - Government agency | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (10,635) | (5,239) |
12 Months or More Unrealized Losses | (15,239) | (1,282) |
Total Unrealized Losses | (25,874) | (6,521) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 169,320 | 186,024 |
12 Months or More Fair Value | 153,626 | 26,063 |
Total Fair Value | 322,946 | 212,087 |
Commercial - Government-sponsored enterprises | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (71,323) | (22,179) |
12 Months or More Unrealized Losses | (105,674) | (26,535) |
Total Unrealized Losses | (176,997) | (48,714) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 562,986 | 744,819 |
12 Months or More Fair Value | 682,848 | 397,123 |
Total Fair Value | 1,245,834 | 1,141,942 |
Government agency | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (135,357) | (31,432) |
12 Months or More Unrealized Losses | (8,157) | |
Total Unrealized Losses | (143,514) | (31,432) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 1,904,905 | 1,441,848 |
12 Months or More Fair Value | 73,679 | |
Total Fair Value | 1,978,584 | 1,441,848 |
Government-sponsored enterprises | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (161,761) | (52,551) |
12 Months or More Unrealized Losses | (48,364) | (1,144) |
Total Unrealized Losses | (210,125) | (53,695) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 2,012,931 | 2,255,535 |
12 Months or More Fair Value | 465,051 | 24,959 |
Total Fair Value | 2,477,982 | $ 2,280,494 |
Collateralized Loan Obligations | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (748) | |
Total Unrealized Losses | (748) | |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 79,181 | |
Total Fair Value | 79,181 | |
Debt securities issued by states and political subdivisions | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (6,800) | |
Total Unrealized Losses | (6,800) | |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 54,235 | |
Total Fair Value | $ 54,235 |
Loans and Leases - Components (
Loans and Leases - Components (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans and leases | ||
Loans and leases | $ 12,891,743 | $ 12,961,999 |
Outstanding loan balances, deferred loan costs and fees | 48,700 | 42,200 |
Accrued interest receivable related to loans and leases recorded separately | 46,500 | 49,000 |
Residential real estate loans pledged to collateralize the borrowing capacity at the FHLB | 2,300,000 | 2,400,000 |
Consumer, commercial and industrial, commercial real estate and residential real estate loans pledged to collateralize the borrowing capacity at the FRB | 1,700,000 | 1,700,000 |
Real estate | ||
Loans and leases | ||
Loans and leases | 5,071,925 | 4,959,975 |
Commercial and Industrial | ||
Loans and leases | ||
Loans and leases | 1,923,534 | 2,087,099 |
Commercial and Industrial | Real estate | ||
Loans and leases | ||
Loans and leases | 1,923,534 | 2,087,099 |
Commercial real estate | ||
Loans and leases | ||
Loans and leases | 3,759,980 | 3,639,623 |
Commercial real estate | Real estate | ||
Loans and leases | ||
Loans and leases | 3,759,980 | 3,639,623 |
Construction | ||
Loans and leases | ||
Loans and leases | 708,300 | 813,969 |
Construction | Real estate | ||
Loans and leases | ||
Loans and leases | 708,300 | 813,969 |
Residential. Mortgage | ||
Loans and leases | ||
Loans and leases | 4,153,824 | 4,083,367 |
Properties in the process of foreclosure | 5,300 | 4,700 |
Residential. Mortgage | Real estate | ||
Loans and leases | ||
Loans and leases | 4,153,824 | 4,083,367 |
Home equity Line | ||
Loans and leases | ||
Loans and leases | 918,101 | 876,608 |
Home equity Line | Real estate | ||
Loans and leases | ||
Loans and leases | 918,101 | 876,608 |
Consumer | ||
Loans and leases | ||
Loans and leases | 1,204,834 | 1,229,939 |
Consumer | Real estate | ||
Loans and leases | ||
Loans and leases | 1,204,834 | 1,229,939 |
Lease financing | ||
Loans and leases | ||
Loans and leases | 223,170 | 231,394 |
Residential mortgage | ||
Loans and leases | ||
Loans and leases | 4,153,824 | 4,083,367 |
Home equity line | ||
Loans and leases | ||
Loans and leases | $ 918,101 | $ 876,608 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance for loan and lease losses: | ||
Balance at beginning of period | $ 157,262 | $ 208,454 |
Charge-offs | (4,858) | (7,668) |
Recoveries | 2,259 | 3,080 |
Increase (decrease) in Provision | (4,383) | (3,500) |
Balance at end of period | 150,280 | 200,366 |
Commercial and Industrial | ||
Allowance for loan and lease losses: | ||
Balance at beginning of period | 20,080 | 24,711 |
Charge-offs | (706) | (963) |
Recoveries | 53 | 215 |
Increase (decrease) in Provision | (267) | 3,359 |
Balance at end of period | 19,160 | 27,322 |
Commercial real estate | ||
Allowance for loan and lease losses: | ||
Balance at beginning of period | 42,951 | 58,123 |
Charge-offs | (66) | |
Recoveries | 14 | 3 |
Increase (decrease) in Provision | 2,273 | (6,369) |
Balance at end of period | 45,238 | 51,691 |
Construction | ||
Allowance for loan and lease losses: | ||
Balance at beginning of period | 9,773 | 10,039 |
Recoveries | 166 | |
Increase (decrease) in Provision | (865) | 347 |
Balance at end of period | 8,908 | 10,552 |
Lease financing | ||
Allowance for loan and lease losses: | ||
Balance at beginning of period | 1,659 | 3,298 |
Increase (decrease) in Provision | (297) | (101) |
Balance at end of period | 1,362 | 3,197 |
Residential. Mortgage | ||
Allowance for loan and lease losses: | ||
Balance at beginning of period | 34,364 | 40,461 |
Charge-offs | (98) | |
Recoveries | 16 | 17 |
Increase (decrease) in Provision | (3,492) | (1,909) |
Balance at end of period | 30,888 | 38,471 |
Consumer | ||
Allowance for loan and lease losses: | ||
Balance at beginning of period | 42,793 | 64,659 |
Charge-offs | (4,109) | (6,541) |
Recoveries | 2,148 | 2,655 |
Increase (decrease) in Provision | (1,192) | 1,692 |
Balance at end of period | 39,640 | 62,465 |
Home equity line | ||
Allowance for loan and lease losses: | ||
Balance at beginning of period | 5,642 | 7,163 |
Charge-offs | (43) | |
Recoveries | 28 | 24 |
Increase (decrease) in Provision | (543) | (519) |
Balance at end of period | $ 5,084 | $ 6,668 |
Allowance for Credit Losses - R
Allowance for Credit Losses - Rollforward of the Reserve for Unfunded Commitments (Details) - Reserve for unfunded commitments - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reserve for unfunded commitments: | ||
Reserve for unfunded commitments, beginning balance | $ 30,322 | $ 30,603 |
Increase (decrease) in Provision | (1,364) | 3,500 |
Reserve for unfunded commitments, ending balance | 28,958 | 34,103 |
Commercial and Industrial | ||
Reserve for unfunded commitments: | ||
Reserve for unfunded commitments, beginning balance | 8,615 | 11,719 |
Increase (decrease) in Provision | 693 | 4,410 |
Reserve for unfunded commitments, ending balance | 9,308 | 16,129 |
Commercial real estate | ||
Reserve for unfunded commitments: | ||
Reserve for unfunded commitments, beginning balance | 2,114 | 1,328 |
Increase (decrease) in Provision | (325) | (216) |
Reserve for unfunded commitments, ending balance | 1,789 | 1,112 |
Construction | ||
Reserve for unfunded commitments: | ||
Reserve for unfunded commitments, beginning balance | 8,963 | 9,037 |
Increase (decrease) in Provision | (917) | (724) |
Reserve for unfunded commitments, ending balance | 8,046 | 8,313 |
Residential mortgage | ||
Reserve for unfunded commitments: | ||
Reserve for unfunded commitments, beginning balance | 15 | 2 |
Increase (decrease) in Provision | (12) | (2) |
Reserve for unfunded commitments, ending balance | 3 | |
Home equity line | ||
Reserve for unfunded commitments: | ||
Reserve for unfunded commitments, beginning balance | 10,546 | 8,452 |
Increase (decrease) in Provision | (780) | 48 |
Reserve for unfunded commitments, ending balance | 9,766 | 8,500 |
Consumer | ||
Reserve for unfunded commitments: | ||
Reserve for unfunded commitments, beginning balance | 69 | 65 |
Increase (decrease) in Provision | (23) | (16) |
Reserve for unfunded commitments, ending balance | $ 46 | $ 49 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Amortized Cost Basis by Year of Origination and Credit Quality Indicator (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Credit quality | ||
Total loans and leases | $ 12,891,743,000 | $ 12,961,999,000 |
Loss | ||
Credit quality | ||
Total loans and leases | 0 | 0 |
Residential mortgage | ||
Credit quality | ||
2021/2022 | 242,485,000 | 1,304,978,000 |
2020/2021 | 1,287,330,000 | 753,668,000 |
2019/2020 | 725,918,000 | 363,415,000 |
2018/2019 | 339,678,000 | 266,368,000 |
2017/2018 | 243,470,000 | 332,041,000 |
Prior | 1,313,531,000 | 1,062,135,000 |
Revolving Loans Amortized Cost Basis | 43,000 | 44,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1,369,000 | 718,000 |
Total loans and leases | 4,153,824,000 | 4,083,367,000 |
Residential mortgage | 740 and greater | ||
Credit quality | ||
2021/2022 | 185,434,000 | 1,101,958,000 |
2020/2021 | 1,096,789,000 | 635,061,000 |
2019/2020 | 615,500,000 | 286,993,000 |
2018/2019 | 264,419,000 | 198,622,000 |
2017/2018 | 183,368,000 | 251,906,000 |
Prior | 1,012,447,000 | 829,175,000 |
Total loans and leases | 3,357,957,000 | 3,303,715,000 |
Residential mortgage | 680 - 739 | ||
Credit quality | ||
2021/2022 | 26,812,000 | 140,997,000 |
2020/2021 | 128,172,000 | 81,590,000 |
2019/2020 | 72,766,000 | 45,163,000 |
2018/2019 | 44,872,000 | 27,315,000 |
2017/2018 | 25,913,000 | 32,855,000 |
Prior | 159,950,000 | 125,906,000 |
Total loans and leases | 458,485,000 | 453,826,000 |
Residential mortgage | 620 - 679 | ||
Credit quality | ||
2021/2022 | 3,088,000 | 15,781,000 |
2020/2021 | 13,196,000 | 11,943,000 |
2019/2020 | 12,304,000 | 5,268,000 |
2018/2019 | 5,995,000 | 10,149,000 |
2017/2018 | 5,021,000 | 9,069,000 |
Prior | 39,145,000 | 37,404,000 |
Total loans and leases | 78,749,000 | 89,614,000 |
Residential mortgage | 550 - 619 | ||
Credit quality | ||
2021/2022 | 1,735,000 | |
2020/2021 | 2,267,000 | 873,000 |
2019/2020 | 1,570,000 | 698,000 |
2018/2019 | 720,000 | 533,000 |
2017/2018 | 731,000 | 2,033,000 |
Prior | 8,847,000 | 7,475,000 |
Total loans and leases | 14,135,000 | 13,347,000 |
Residential mortgage | Less than 550 | ||
Credit quality | ||
2021/2022 | 2,116,000 | |
2020/2021 | 228,000 | |
2019/2020 | 60,000 | |
2018/2019 | 345,000 | |
2017/2018 | 82,000 | 2,603,000 |
Prior | 4,098,000 | 2,838,000 |
Total loans and leases | 6,584,000 | 5,786,000 |
Residential mortgage | No Score | ||
Credit quality | ||
2021/2022 | 6,550,000 | 18,882,000 |
2020/2021 | 15,806,000 | 7,938,000 |
2019/2020 | 7,676,000 | 15,051,000 |
2018/2019 | 13,968,000 | 18,107,000 |
2017/2018 | 17,545,000 | 17,333,000 |
Prior | 56,444,000 | 42,185,000 |
Total loans and leases | 117,989,000 | 119,496,000 |
Residential mortgage | Fico Other | ||
Credit quality | ||
2021/2022 | 18,485,000 | 25,625,000 |
2020/2021 | 30,872,000 | 16,263,000 |
2019/2020 | 16,042,000 | 10,242,000 |
2018/2019 | 9,704,000 | 11,297,000 |
2017/2018 | 10,810,000 | 16,242,000 |
Prior | 32,600,000 | 17,152,000 |
Revolving Loans Amortized Cost Basis | 43,000 | 44,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1,369,000 | 718,000 |
Total loans and leases | 119,925,000 | 97,583,000 |
Home equity line | ||
Credit quality | ||
Revolving Loans Amortized Cost Basis | 908,958,000 | 867,251,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 9,143,000 | 9,357,000 |
Total loans and leases | 918,101,000 | 876,608,000 |
Home equity line | 740 and greater | ||
Credit quality | ||
Revolving Loans Amortized Cost Basis | 705,570,000 | 671,566,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1,892,000 | 1,873,000 |
Total loans and leases | 707,462,000 | 673,439,000 |
Home equity line | 680 - 739 | ||
Credit quality | ||
Revolving Loans Amortized Cost Basis | 147,290,000 | 141,889,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 3,202,000 | 3,968,000 |
Total loans and leases | 150,492,000 | 145,857,000 |
Home equity line | 620 - 679 | ||
Credit quality | ||
Revolving Loans Amortized Cost Basis | 39,370,000 | 37,815,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 2,129,000 | 2,500,000 |
Total loans and leases | 41,499,000 | 40,315,000 |
Home equity line | 550 - 619 | ||
Credit quality | ||
Revolving Loans Amortized Cost Basis | 10,310,000 | 9,090,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1,426,000 | 948,000 |
Total loans and leases | 11,736,000 | 10,038,000 |
Home equity line | Less than 550 | ||
Credit quality | ||
Revolving Loans Amortized Cost Basis | 1,482,000 | 2,574,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 494,000 | 68,000 |
Total loans and leases | 1,976,000 | 2,642,000 |
Home equity line | No Score | ||
Credit quality | ||
Revolving Loans Amortized Cost Basis | 4,936,000 | 4,317,000 |
Total loans and leases | 4,936,000 | 4,317,000 |
Total loans | ||
Credit quality | ||
2021/2022 | 761,482,000 | 3,157,488,000 |
2020/2021 | 2,980,748,000 | 1,588,735,000 |
2019/2020 | 1,527,891,000 | 1,632,764,000 |
2018/2019 | 1,456,656,000 | 1,164,714,000 |
2017/2018 | 1,044,535,000 | 954,259,000 |
Prior | 3,069,935,000 | 2,359,432,000 |
Revolving Loans Amortized Cost Basis | 1,989,340,000 | 2,033,383,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 61,156,000 | 71,224,000 |
Total loans and leases | 12,891,743,000 | 12,961,999,000 |
Residential. Mortgage | ||
Credit quality | ||
Total loans and leases | 4,153,824,000 | 4,083,367,000 |
Home equity Line | ||
Credit quality | ||
Total loans and leases | 918,101,000 | 876,608,000 |
Consumer | ||
Credit quality | ||
2021/2022 | 94,489,000 | 306,140,000 |
2020/2021 | 286,366,000 | 174,166,000 |
2019/2020 | 156,220,000 | 184,913,000 |
2018/2019 | 161,649,000 | 124,197,000 |
2017/2018 | 103,564,000 | 67,459,000 |
Prior | 70,881,000 | 24,158,000 |
Revolving Loans Amortized Cost Basis | 327,826,000 | 344,870,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 3,839,000 | 4,036,000 |
Total loans and leases | 1,204,834,000 | 1,229,939,000 |
Consumer | 740 and greater | ||
Credit quality | ||
2021/2022 | 60,821,000 | 155,929,000 |
2020/2021 | 145,550,000 | 83,337,000 |
2019/2020 | 74,436,000 | 79,617,000 |
2018/2019 | 68,970,000 | 56,707,000 |
2017/2018 | 46,731,000 | 24,525,000 |
Prior | 24,261,000 | 8,067,000 |
Revolving Loans Amortized Cost Basis | 112,298,000 | 117,843,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 217,000 | 209,000 |
Total loans and leases | 533,284,000 | 526,234,000 |
Consumer | 680 - 739 | ||
Credit quality | ||
2021/2022 | 26,319,000 | 93,214,000 |
2020/2021 | 87,933,000 | 56,327,000 |
2019/2020 | 50,976,000 | 55,126,000 |
2018/2019 | 48,120,000 | 34,049,000 |
2017/2018 | 28,498,000 | 17,527,000 |
Prior | 18,340,000 | 6,315,000 |
Revolving Loans Amortized Cost Basis | 68,407,000 | 69,366,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 647,000 | 707,000 |
Total loans and leases | 329,240,000 | 332,631,000 |
Consumer | 620 - 679 | ||
Credit quality | ||
2021/2022 | 6,222,000 | 41,671,000 |
2020/2021 | 39,016,000 | 21,986,000 |
2019/2020 | 19,677,000 | 28,491,000 |
2018/2019 | 25,307,000 | 19,403,000 |
2017/2018 | 16,453,000 | 12,952,000 |
Prior | 14,473,000 | 5,324,000 |
Revolving Loans Amortized Cost Basis | 30,462,000 | 31,165,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1,038,000 | 1,175,000 |
Total loans and leases | 152,648,000 | 162,167,000 |
Consumer | 550 - 619 | ||
Credit quality | ||
2021/2022 | 292,000 | 7,836,000 |
2020/2021 | 7,159,000 | 8,265,000 |
2019/2020 | 7,314,000 | 13,265,000 |
2018/2019 | 11,776,000 | 10,497,000 |
2017/2018 | 8,904,000 | 7,469,000 |
Prior | 8,485,000 | 3,244,000 |
Revolving Loans Amortized Cost Basis | 10,352,000 | 10,359,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1,129,000 | 1,089,000 |
Total loans and leases | 55,411,000 | 62,024,000 |
Consumer | Less than 550 | ||
Credit quality | ||
2021/2022 | 53,000 | 2,272,000 |
2020/2021 | 2,003,000 | 3,867,000 |
2019/2020 | 3,445,000 | 6,646,000 |
2018/2019 | 5,732,000 | 3,484,000 |
2017/2018 | 2,939,000 | 2,739,000 |
Prior | 3,089,000 | 1,175,000 |
Revolving Loans Amortized Cost Basis | 3,166,000 | 3,195,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 471,000 | 536,000 |
Total loans and leases | 20,898,000 | 23,914,000 |
Consumer | No Score | ||
Credit quality | ||
2021/2022 | 280,000 | 481,000 |
2020/2021 | 458,000 | 19,000 |
2019/2020 | 9,000 | 56,000 |
2018/2019 | 53,000 | 40,000 |
2017/2018 | 35,000 | 65,000 |
Prior | 52,000 | 2,000 |
Revolving Loans Amortized Cost Basis | 35,063,000 | 35,414,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 337,000 | 320,000 |
Total loans and leases | 36,287,000 | 36,397,000 |
Consumer | Fico Other | ||
Credit quality | ||
2021/2022 | 502,000 | 4,737,000 |
2020/2021 | 4,247,000 | 365,000 |
2019/2020 | 363,000 | 1,712,000 |
2018/2019 | 1,691,000 | 17,000 |
2017/2018 | 4,000 | 2,182,000 |
Prior | 2,181,000 | 31,000 |
Revolving Loans Amortized Cost Basis | 68,078,000 | 77,528,000 |
Total loans and leases | 77,066,000 | 86,572,000 |
Residential Mortgage. | ||
Credit quality | ||
2021/2022 | 242,485,000 | 1,304,978,000 |
2020/2021 | 1,287,330,000 | 753,668,000 |
2019/2020 | 725,918,000 | 363,415,000 |
2018/2019 | 339,678,000 | 266,368,000 |
2017/2018 | 243,470,000 | 332,041,000 |
Prior | 1,313,531,000 | 1,062,135,000 |
Revolving Loans Amortized Cost Basis | 909,001,000 | 867,295,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 10,512,000 | 10,075,000 |
Total loans and leases | 5,071,925,000 | 4,959,975,000 |
Commercial and Industrial | ||
Credit quality | ||
2021/2022 | 165,757,000 | 637,126,000 |
2020/2021 | 494,676,000 | 142,497,000 |
2019/2020 | 109,426,000 | 237,293,000 |
2018/2019 | 197,106,000 | 106,699,000 |
2017/2018 | 96,629,000 | 32,409,000 |
Prior | 174,090,000 | 177,825,000 |
Revolving Loans Amortized Cost Basis | 653,797,000 | 711,028,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 32,053,000 | 42,222,000 |
Total loans and leases | 1,923,534,000 | 2,087,099,000 |
Commercial and Industrial | Pass | ||
Credit quality | ||
2021/2022 | 158,853,000 | 623,098,000 |
2020/2021 | 483,473,000 | 129,665,000 |
2019/2020 | 98,061,000 | 223,388,000 |
2018/2019 | 184,897,000 | 88,409,000 |
2017/2018 | 79,810,000 | 29,380,000 |
Prior | 166,075,000 | 168,591,000 |
Revolving Loans Amortized Cost Basis | 594,007,000 | 644,947,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 31,048,000 | 40,193,000 |
Total loans and leases | 1,796,224,000 | 1,947,671,000 |
Commercial and Industrial | Special mention | ||
Credit quality | ||
2021/2022 | 2,876,000 | 397,000 |
2020/2021 | 356,000 | 4,382,000 |
2019/2020 | 3,898,000 | 4,213,000 |
2018/2019 | 3,983,000 | 12,552,000 |
2017/2018 | 52,000 | 974,000 |
Prior | 5,594,000 | 5,313,000 |
Revolving Loans Amortized Cost Basis | 1,601,000 | 4,804,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 867,000 | 986,000 |
Total loans and leases | 19,227,000 | 33,621,000 |
Commercial and Industrial | Substandard | ||
Credit quality | ||
2021/2022 | 354,000 | |
2020/2021 | 337,000 | 1,380,000 |
2019/2020 | 1,296,000 | 1,951,000 |
2018/2019 | 1,776,000 | 1,285,000 |
2017/2018 | 13,251,000 | 60,000 |
Prior | 757,000 | 3,551,000 |
Revolving Loans Amortized Cost Basis | 15,877,000 | 17,893,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 138,000 | 1,043,000 |
Total loans and leases | 33,432,000 | 27,517,000 |
Commercial and Industrial | Other Indicator | ||
Credit quality | ||
2021/2022 | 4,028,000 | 13,277,000 |
2020/2021 | 10,510,000 | 7,070,000 |
2019/2020 | 6,171,000 | 7,741,000 |
2018/2019 | 6,450,000 | 4,453,000 |
2017/2018 | 3,516,000 | 1,995,000 |
Prior | 1,664,000 | 370,000 |
Revolving Loans Amortized Cost Basis | 42,312,000 | 43,384,000 |
Total loans and leases | 74,651,000 | 78,290,000 |
Commercial real estate | ||
Credit quality | ||
2021/2022 | 240,807,000 | 693,370,000 |
2020/2021 | 682,346,000 | 338,140,000 |
2019/2020 | 351,893,000 | 582,386,000 |
2018/2019 | 571,632,000 | 496,985,000 |
2017/2018 | 474,129,000 | 440,863,000 |
Prior | 1,345,997,000 | 986,450,000 |
Revolving Loans Amortized Cost Basis | 78,424,000 | 86,538,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 14,752,000 | 14,891,000 |
Total loans and leases | 3,759,980,000 | 3,639,623,000 |
Commercial real estate | Pass | ||
Credit quality | ||
2021/2022 | 240,807,000 | 693,370,000 |
2020/2021 | 682,346,000 | 338,140,000 |
2019/2020 | 351,893,000 | 533,887,000 |
2018/2019 | 523,735,000 | 487,739,000 |
2017/2018 | 471,899,000 | 415,186,000 |
Prior | 1,291,495,000 | 940,732,000 |
Revolving Loans Amortized Cost Basis | 77,724,000 | 78,479,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 14,752,000 | 14,891,000 |
Total loans and leases | 3,654,651,000 | 3,502,424,000 |
Commercial real estate | Special mention | ||
Credit quality | ||
2019/2020 | 48,499,000 | |
2018/2019 | 47,897,000 | 7,470,000 |
2017/2018 | 473,000 | 25,513,000 |
Prior | 39,064,000 | 30,255,000 |
Revolving Loans Amortized Cost Basis | 696,000 | 7,600,000 |
Total loans and leases | 88,130,000 | 119,337,000 |
Commercial real estate | Substandard | ||
Credit quality | ||
2018/2019 | 1,776,000 | |
2017/2018 | 1,757,000 | 164,000 |
Prior | 15,280,000 | 15,303,000 |
Revolving Loans Amortized Cost Basis | 4,000 | 459,000 |
Total loans and leases | 17,041,000 | 17,702,000 |
Commercial real estate | Other Indicator | ||
Credit quality | ||
Prior | 158,000 | 160,000 |
Total loans and leases | 158,000 | 160,000 |
Construction | ||
Credit quality | ||
2021/2022 | 14,031,000 | 181,393,000 |
2020/2021 | 197,577,000 | 116,642,000 |
2019/2020 | 124,300,000 | 214,875,000 |
2018/2019 | 139,410,000 | 160,689,000 |
2017/2018 | 117,903,000 | 65,454,000 |
Prior | 94,787,000 | 51,264,000 |
Revolving Loans Amortized Cost Basis | 20,292,000 | 23,652,000 |
Total loans and leases | 708,300,000 | 813,969,000 |
Construction | Pass | ||
Credit quality | ||
2021/2022 | 6,160,000 | 154,558,000 |
2020/2021 | 167,645,000 | 107,767,000 |
2019/2020 | 118,526,000 | 210,314,000 |
2018/2019 | 136,209,000 | 155,311,000 |
2017/2018 | 112,919,000 | 62,770,000 |
Prior | 89,172,000 | 48,021,000 |
Revolving Loans Amortized Cost Basis | 19,470,000 | 22,859,000 |
Total loans and leases | 650,101,000 | 761,600,000 |
Construction | Special mention | ||
Credit quality | ||
2019/2020 | 244,000 | |
2018/2019 | 244,000 | 707,000 |
2017/2018 | 705,000 | |
Prior | 353,000 | 356,000 |
Total loans and leases | 1,302,000 | 1,307,000 |
Construction | Substandard | ||
Credit quality | ||
2018/2019 | 363,000 | |
2017/2018 | 357,000 | |
Prior | 827,000 | 839,000 |
Total loans and leases | 1,184,000 | 1,202,000 |
Construction | Other Indicator | ||
Credit quality | ||
2021/2022 | 7,871,000 | 26,835,000 |
2020/2021 | 29,932,000 | 8,875,000 |
2019/2020 | 5,774,000 | 4,317,000 |
2018/2019 | 2,957,000 | 4,308,000 |
2017/2018 | 3,922,000 | 2,684,000 |
Prior | 4,435,000 | 2,048,000 |
Revolving Loans Amortized Cost Basis | 822,000 | 793,000 |
Total loans and leases | 55,713,000 | 49,860,000 |
Lease financing | ||
Credit quality | ||
2021/2022 | 3,913,000 | 34,481,000 |
2020/2021 | 32,453,000 | 63,622,000 |
2019/2020 | 60,134,000 | 49,882,000 |
2018/2019 | 47,181,000 | 9,776,000 |
2017/2018 | 8,840,000 | 16,033,000 |
Prior | 70,649,000 | 57,600,000 |
Total loans and leases | 223,170,000 | 231,394,000 |
Lease financing | Pass | ||
Credit quality | ||
2021/2022 | 3,913,000 | 33,980,000 |
2020/2021 | 31,974,000 | 60,650,000 |
2019/2020 | 57,192,000 | 48,236,000 |
2018/2019 | 45,698,000 | 9,449,000 |
2017/2018 | 8,813,000 | 15,009,000 |
Prior | 69,286,000 | 57,130,000 |
Total loans and leases | 216,876,000 | 224,454,000 |
Lease financing | Special mention | ||
Credit quality | ||
2021/2022 | 501,000 | |
2020/2021 | 479,000 | 2,702,000 |
2019/2020 | 2,672,000 | 1,506,000 |
2018/2019 | 1,360,000 | 311,000 |
2017/2018 | 12,000 | 153,000 |
Prior | 20,000 | |
Total loans and leases | 4,543,000 | 5,173,000 |
Lease financing | Substandard | ||
Credit quality | ||
2020/2021 | 270,000 | |
2019/2020 | 270,000 | 140,000 |
2018/2019 | 123,000 | 16,000 |
2017/2018 | 15,000 | 871,000 |
Prior | 1,343,000 | 470,000 |
Total loans and leases | 1,751,000 | 1,767,000 |
Commercial Lending | ||
Credit quality | ||
2021/2022 | 424,508,000 | 1,546,370,000 |
2020/2021 | 1,407,052,000 | 660,901,000 |
2019/2020 | 645,753,000 | 1,084,436,000 |
2018/2019 | 955,329,000 | 774,149,000 |
2017/2018 | 697,501,000 | 554,759,000 |
Prior | 1,685,523,000 | 1,273,139,000 |
Revolving Loans Amortized Cost Basis | 752,513,000 | 821,218,000 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 46,805,000 | 57,113,000 |
Total loans and leases | $ 6,614,984,000 | $ 6,772,085,000 |
Allowance for Credit Losses -_3
Allowance for Credit Losses - Amortized Cost Basis of Revolving Loans that Were Converted to Term Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Credit quality | ||
Total Revolving Loans Converted to Term Loans During the Period | $ 1,572 | $ 1,801 |
Commercial and Industrial | ||
Credit quality | ||
Total Revolving Loans Converted to Term Loans During the Period | 203 | 229 |
Home equity Line | ||
Credit quality | ||
Total Revolving Loans Converted to Term Loans During the Period | 1,015 | 1,079 |
Consumer | ||
Credit quality | ||
Total Revolving Loans Converted to Term Loans During the Period | $ 354 | $ 493 |
Allowance for Credit Losses -_4
Allowance for Credit Losses - Aging of Analysis of Past Due Loans and Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | $ 12,891,743 | $ 12,961,999 |
Loans and Leases Past Due 90 Days or More and Still Accruing Interest | 4,444 | 7,208 |
30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 22,588 | 23,090 |
60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 6,830 | 6,101 |
90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 11,467 | 12,416 |
Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 40,885 | 41,607 |
Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 12,850,858 | 12,920,392 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,923,534 | 2,087,099 |
Loans and Leases Past Due 90 Days or More and Still Accruing Interest | 591 | 740 |
Commercial and Industrial | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 2,825 | 1,195 |
Commercial and Industrial | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 2,351 | 1,195 |
Commercial and Industrial | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,160 | 1,318 |
Commercial and Industrial | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 6,336 | 3,708 |
Commercial and Industrial | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,917,198 | 2,083,391 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 3,759,980 | 3,639,623 |
Commercial real estate | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 2,503 | 631 |
Commercial real estate | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 727 | |
Commercial real estate | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 3,230 | 631 |
Commercial real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 3,756,750 | 3,638,992 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 708,300 | 813,969 |
Construction | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 247 | 162 |
Construction | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 247 | 162 |
Construction | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 708,053 | 813,807 |
Lease financing | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 223,170 | 231,394 |
Lease financing | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 75 | |
Lease financing | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 75 | |
Lease financing | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 223,095 | 231,394 |
Residential. Mortgage | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 4,153,824 | 4,083,367 |
Loans and Leases Past Due 90 Days or More and Still Accruing Interest | 13 | 987 |
Residential. Mortgage | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,229 | 3,030 |
Residential. Mortgage | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,301 | 1,002 |
Residential. Mortgage | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 5,665 | 5,617 |
Residential. Mortgage | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 8,195 | 9,649 |
Residential. Mortgage | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 4,145,629 | 4,073,718 |
Home equity Line | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 918,101 | 876,608 |
Loans and Leases Past Due 90 Days or More and Still Accruing Interest | 2,252 | 3,681 |
Home equity Line | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,640 | 1,538 |
Home equity Line | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 589 | 538 |
Home equity Line | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 2,252 | 3,681 |
Home equity Line | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 4,481 | 5,757 |
Home equity Line | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 913,620 | 870,851 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,204,834 | 1,229,939 |
Loans and Leases Past Due 90 Days or More and Still Accruing Interest | 1,588 | 1,800 |
Consumer | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 14,144 | 16,534 |
Consumer | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 2,589 | 3,366 |
Consumer | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,588 | 1,800 |
Consumer | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 18,321 | 21,700 |
Consumer | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,186,513 | 1,208,239 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 4,153,824 | 4,083,367 |
Home equity line | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | $ 918,101 | $ 876,608 |
Allowance for Credit Losses -_5
Allowance for Credit Losses - Amortized Cost Basis of Loans and Leases on Nonaccrual Status (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual Loans and Leases With No Allowance for Credit Losses | $ 2,890 | $ 1,919 | |
Nonaccrual Loans and Leases | 8,601 | 7,082 | |
Interest income recognized on nonaccrual loans and leases | 0 | $ 100 | |
Accrued interest receivables written off, Interest income reversed | 200 | $ 400 | |
Commercial and Industrial | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual Loans and Leases | 707 | 718 | |
Commercial real estate | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual Loans and Leases With No Allowance for Credit Losses | 727 | 727 | |
Nonaccrual Loans and Leases | 727 | 727 | |
Lease financing | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual Loans and Leases | 75 | ||
Residential. Mortgage | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual Loans and Leases With No Allowance for Credit Losses | 2,163 | 1,192 | |
Nonaccrual Loans and Leases | $ 7,092 | $ 5,637 |
Allowance for Credit Losses - C
Allowance for Credit Losses - Collateral-Dependent Loans and Leases (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Allowance for Credit Losses | ||
Amortized cost basis of collateral dependent loans | $ 8.4 | $ 7.5 |
Allowance for Credit Losses - T
Allowance for Credit Losses - Troubled Debt Restructuring Modifications (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)contractloan | Mar. 31, 2021USD ($)contract | Dec. 31, 2021USD ($) | |
Troubled debt restructuring modifications | |||
Number of Contracts | contract | 144 | 1,719 | |
Recorded Investment | $ 1,759 | $ 24,340 | |
Related ACL | 202 | $ 14,196 | |
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit | 6,700,000 | $ 6,700,000 | |
Commitments related to borrowers who had loan terms modified in a TDR | $ 100 | 200 | |
Loans modified in TDRs that experienced a payment default | |||
Number of Contracts, Defaulted TDRs | contract | 143 | 97 | |
Recorded Investment, Defaulted TDRs | $ 2,207 | $ 2,198 | |
Commercial and Industrial | |||
Troubled debt restructuring modifications | |||
Number of Contracts | contract | 17 | ||
Recorded Investment | $ 2,945 | ||
Related ACL | $ 1,648 | ||
Loans modified in TDRs that experienced a payment default | |||
Number of Contracts, Defaulted TDRs | contract | 1 | 2 | |
Recorded Investment, Defaulted TDRs | $ 216 | $ 397 | |
Consumer | |||
Troubled debt restructuring modifications | |||
Number of Contracts | contract | 144 | 1,690 | |
Recorded Investment | $ 1,759 | $ 15,763 | |
Related ACL | $ 202 | $ 11,832 | |
Loans modified in TDRs that experienced a payment default | |||
Number of Contracts, Defaulted TDRs | contract | 142 | 93 | |
Recorded Investment, Defaulted TDRs | $ 1,991 | $ 1,068 | |
Construction | |||
Troubled debt restructuring modifications | |||
Number of Contracts | contract | 2 | ||
Recorded Investment | $ 716 | ||
Related ACL | $ 342 | ||
Loans modified in TDRs that experienced a payment default | |||
Number of Contracts, Defaulted TDRs | contract | 1 | ||
Recorded Investment, Defaulted TDRs | $ 361 | ||
Residential Mortgage. | |||
Troubled debt restructuring modifications | |||
Number of Contracts | contract | 10 | ||
Recorded Investment | $ 4,916 | ||
Related ACL | $ 374 | ||
Loans modified in TDRs that experienced a payment default | |||
Number of Contracts, Defaulted TDRs | contract | 1 | ||
Recorded Investment, Defaulted TDRs | $ 372 | ||
Residential mortgage loans collateralized by real estate property and modified in a TDR in the process of foreclosure | $ 300 | 300 | |
Residential Mortgage. | Real estate property held from foreclosed TDR | |||
Loans modified in TDRs that experienced a payment default | |||
Number of real estate properties | loan | 0 | ||
Real estate property held from a foreclosed TDR | 200 | ||
Commitments to extend credit | |||
Troubled debt restructuring modifications | |||
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit | $ 6,546,389 | 6,490,301 | |
Standby letters of credit | |||
Troubled debt restructuring modifications | |||
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit | 182,423 | 182,447 | |
Commercial letters of credit | |||
Troubled debt restructuring modifications | |||
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit | $ 7,149 | $ 3,307 |
Mortgage Servicing Rights - Est
Mortgage Servicing Rights - Estimated Future Amortization Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Other Intangible Assets | |||
Unpaid principal amount of consumer loans serviced for others | $ 1,600,000 | $ 1,700,000 | |
Contractually specified fees, late charges, and ancillary fees | 1,000 | $ 1,300 | |
Amortization of mortgage servicing rights | 736 | $ 545 | |
Details of MSRs | |||
Gross carrying amount | 69,187 | 69,103 | |
Less: accumulated amortization | 61,537 | 60,801 | |
Net carrying value | 7,650 | $ 8,302 | |
Mortgage servicing assets | |||
Estimated future amortization expenses for MSRs over the next five years | |||
Under one year | 1,296 | ||
One to two years | 1,094 | ||
Two to three years | 928 | ||
Three to four years | 787 | ||
Four to five years | $ 672 |
Mortgage Servicing Rights - Cha
Mortgage Servicing Rights - Changes in Amortized MSRs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in amortized mortgage servicing rights | ||
Balance at beginning of period | $ 8,302 | $ 10,731 |
Originations | 84 | 683 |
Amortization | (736) | (545) |
Balance at end of period | 7,650 | 10,869 |
Fair value of amortized MSRs at beginning of period | 12,243 | 14,029 |
Fair value of amortized MSRs at end of period | 13,585 | 14,921 |
Impairment of MSRs recorded | $ 0 | $ 0 |
Mortgage Servicing Rights - Qua
Mortgage Servicing Rights - Quantitative Assumptions Used for MSRs (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Minimum | ||
Quantitative assumptions used in determining lower of cost or fair value of MSRs | ||
Conditional prepayment rate (as a percent) | 10.93% | 13.77% |
Life in years (of the MSR) | 2 years 2 months 4 days | 1 year 11 months 26 days |
Weighted-average coupon rate (as a percent) | 3.56% | 3.58% |
Discount rate (as a percent) | 10.00% | 10.00% |
Maximum | ||
Quantitative assumptions used in determining lower of cost or fair value of MSRs | ||
Conditional prepayment rate (as a percent) | 24.10% | 25.19% |
Life in years (of the MSR) | 6 years 1 month 2 days | 5 years 3 months 21 days |
Weighted-average coupon rate (as a percent) | 6.47% | 6.56% |
Discount rate (as a percent) | 10.01% | 10.01% |
Weighted Average | ||
Quantitative assumptions used in determining lower of cost or fair value of MSRs | ||
Conditional prepayment rate (as a percent) | 11.19% | 14.61% |
Life in years (of the MSR) | 4 years 8 months 12 days | 5 years 10 days |
Weighted-average coupon rate (as a percent) | 3.69% | 3.71% |
Discount rate (as a percent) | 10.00% | 10.00% |
Transfers of Financial Assets -
Transfers of Financial Assets - Carrying Amounts of Assets Pledged as Collateral, Borrowings and Other Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Carrying amounts of the assets pledged as collateral | ||
Public deposits | $ 1,783,882 | $ 1,913,369 |
Federal Home Loan Bank | 2,269,584 | 2,380,042 |
Federal Reserve Bank | 1,725,291 | 1,724,279 |
ACH transactions | 112,800 | 115,038 |
Interest rate swaps | 20,889 | 48,430 |
Total | 5,912,446 | 6,181,158 |
Securities for reverse repurchase agreements | 0 | 0 |
Extinguishment of debt | ||
In-substance debt defeasance | 0 | 0 |
FHLB fixed-rate advances | ||
Carrying amounts of the assets pledged as collateral | ||
Borrowing capacity | 1,700,000 | 1,800,000 |
Federal Reserve Bank line of credit | ||
Carrying amounts of the assets pledged as collateral | ||
Borrowing capacity | $ 1,300,000 | $ 1,100,000 |
Deposits - Interest-bearing or
Deposits - Interest-bearing or Noninterest-bearing (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
U.S.: | ||
Interest-bearing | $ 11,642,353 | $ 11,553,298 |
Noninterest-bearing | 8,855,088 | 8,498,187 |
Foreign: | ||
Interest-bearing | 862,468 | 868,985 |
Noninterest-bearing | 910,521 | 895,676 |
Total deposits | $ 22,270,430 | $ 21,816,146 |
Deposits - Maturity Distributio
Deposits - Maturity Distribution of Time Certificates of Deposits (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Maturity distribution of time certificates of deposit | |
Three months or less | $ 384,206 |
Over three through six months | 272,658 |
Over six through twelve months | 770,088 |
2023 | 100,852 |
2024 | 61,096 |
2025 | 61,015 |
2026 | 51,751 |
Thereafter | 172 |
Total | 1,701,838 |
Under $250,000 | |
Maturity distribution of time certificates of deposit | |
Three months or less | 228,660 |
Over three through six months | 152,926 |
Over six through twelve months | 360,870 |
2023 | 80,002 |
2024 | 50,970 |
2025 | 41,724 |
2026 | 42,545 |
Thereafter | 172 |
Total | 957,869 |
$250,000 or More | |
Maturity distribution of time certificates of deposit | |
Three months or less | 155,546 |
Over three through six months | 119,732 |
Over six through twelve months | 409,218 |
2023 | 20,850 |
2024 | 10,126 |
2025 | 19,291 |
2026 | 9,206 |
Total | $ 743,969 |
Deposits - Time Certificate Den
Deposits - Time Certificate Denominations and Overdrawn Accounts (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Deposits | ||
Time certificates of deposit in denominations of $250,000 or more, in the aggregate | $ 700 | $ 800 |
Overdrawn deposit accounts classified as loans | $ 1.7 | $ 2.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pre-tax Amount | ||
Other comprehensive income (loss), Pre-tax Amount | $ (539,801) | $ (102,336) |
Income Tax Benefit (Expense) | ||
Other comprehensive income (loss), Income Tax Benefit (Expense) | 143,992 | 27,297 |
Net of tax | ||
Balance | 2,656,912 | 2,744,104 |
Other comprehensive loss | (395,809) | (75,039) |
Balance | 2,285,149 | 2,683,630 |
Accumulated Other Comprehensive Income (Loss) | ||
Pre-tax Amount | ||
Accumulated other comprehensive income (loss), beginning balance, Pre-tax Amount | (165,967) | 43,098 |
Accumulated other comprehensive (loss) income, ending balance, Pre-tax Amount | (705,768) | (59,238) |
Income Tax Benefit (Expense) | ||
Accumulated other comprehensive income (loss), beginning balance, Income Tax Benefit (Expense) | 44,274 | (11,494) |
Accumulated other comprehensive loss, ending balance, Income Tax Benefit (Expense) | 188,266 | 15,803 |
Net of tax | ||
Balance | (121,693) | 31,604 |
Other comprehensive loss | (395,809) | (75,039) |
Balance | (517,502) | (43,435) |
Pensions and Other Benefits | ||
Net of tax | ||
Balance | (24,390) | (31,737) |
Balance | (24,390) | (31,737) |
Investment Securities | ||
Pre-tax Amount | ||
Unrealized net gains (losses) arising during the period, Pre-tax Amount | (538,085) | (102,336) |
Other comprehensive income (loss), Pre-tax Amount | (538,085) | (102,336) |
Income Tax Benefit (Expense) | ||
Unrealized net losses (gains) arising during the period, Income Tax Benefit (Expense) | 143,534 | 27,297 |
Other comprehensive income (loss), Income Tax Benefit (Expense) | 143,534 | 27,297 |
Net of tax | ||
Balance | (97,303) | 63,341 |
Unrealized net (losses) gains arising during the period, Net of tax | (394,551) | (75,039) |
Other comprehensive loss | (394,551) | (75,039) |
Balance | (491,854) | $ (11,698) |
Cash Flow Derivative Hedges | ||
Pre-tax Amount | ||
Unrealized net gains (losses) arising during the period, Pre-tax Amount | (1,716) | |
Other comprehensive income (loss), Pre-tax Amount | (1,716) | |
Income Tax Benefit (Expense) | ||
Unrealized net losses (gains) arising during the period, Income Tax Benefit (Expense) | 458 | |
Other comprehensive income (loss), Income Tax Benefit (Expense) | 458 | |
Net of tax | ||
Unrealized net (losses) gains arising during the period, Net of tax | (1,258) | |
Other comprehensive loss | (1,258) | |
Balance | $ (1,258) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Changes, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net of tax | ||
Balance | $ 2,656,912 | $ 2,744,104 |
Other comprehensive loss | (395,809) | (75,039) |
Balance | 2,285,149 | 2,683,630 |
Accumulated Other Comprehensive Income (Loss) | ||
Net of tax | ||
Balance | (121,693) | 31,604 |
Other comprehensive loss | (395,809) | (75,039) |
Balance | (517,502) | (43,435) |
Pensions and Other Benefits | ||
Net of tax | ||
Balance | (24,390) | (31,737) |
Balance | (24,390) | (31,737) |
Investment Securities. | ||
Net of tax | ||
Balance | (97,303) | 63,341 |
Other comprehensive loss | (394,551) | (75,039) |
Balance | (491,854) | $ (11,698) |
Cash Flow Derivative Hedges | ||
Net of tax | ||
Other comprehensive loss | (1,258) | |
Balance | $ (1,258) |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Common equity tier 1 capital to risk-weighted assets | ||
Amount | $ 1,806,115 | $ 1,783,113 |
Ratio (as a percent) | 12.27% | 12.24% |
Minimum Capital Ratio (as a percent) | 4.50 | 4.50 |
Well-Capitalized Ratio (as a percent) | 6.50% | 6.50% |
Tier 1 capital to risk-weighted assets | ||
Amount | $ 1,806,115 | $ 1,783,113 |
Ratio (as a percent) | 12.27 | 12.24 |
Minimum Capital Ratio (as a percent) | 6 | 6 |
Well-Capitalized Ratio (percent) | 8 | 8 |
Total capital to risk-weighted assets | ||
Amount | $ 1,985,353 | $ 1,965,280 |
Ratio (as a percent) | 13.48 | 13.49 |
Minimum Capital Ratio (as a percent) | 8 | 8 |
Well-Capitalized Ratio (as a percent) | 10 | 10 |
Tier 1 capital to average assets (leverage ratio) | ||
Amount | $ 1,806,115 | $ 1,783,113 |
Ratio | 7.50 | 7.24 |
Minimum Capital Ratio (as a percent) | 4 | 4 |
Well-Capitalized Ratio (percent) | 5 | 5 |
First Hawaiian Bank (FHB) | ||
Common equity tier 1 capital to risk-weighted assets | ||
Amount | $ 1,795,292 | $ 1,769,214 |
Ratio (as a percent) | 12.19% | 12.14% |
Tier 1 capital to risk-weighted assets | ||
Amount | $ 1,795,292 | $ 1,769,214 |
Ratio (as a percent) | 12.19 | 12.14 |
Total capital to risk-weighted assets | ||
Amount | $ 1,974,530 | $ 1,951,377 |
Ratio (as a percent) | 13.41 | 13.40 |
Tier 1 capital to average assets (leverage ratio) | ||
Amount | $ 1,795,292 | $ 1,769,214 |
Ratio | 7.46 | 7.18 |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements - Capital Conservation Buffer (Details) | Mar. 31, 2022 | Dec. 31, 2021 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Effective CET1 capital to risk-weighted assets (as a percent) | 4.50 | 4.50 |
Effective Tier 1 capital to risk-weighted assets (as a percent) | 12.27 | 12.24 |
Effective total capital to risk-weighted assets (as a percent) | 13.48 | 13.49 |
Capital conservation buffer | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Effective CET1 capital to risk-weighted assets (as a percent) | 7 | |
Effective Tier 1 capital to risk-weighted assets (as a percent) | 8.5 | |
Effective total capital to risk-weighted assets (as a percent) | 10.5 | |
Capital requirements above regulatory rate (as a percent) | 2.50% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Notional Amounts and Fair Values (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives designated as hedging instruments | Interest rate swaps | ||
Notional amounts and fair values of derivatives | ||
Notional Amount | $ 267,500 | $ 67,500 |
Derivatives designated as hedging instruments | Interest rate swaps | Included in other assets | ||
Notional amounts and fair values of derivatives | ||
Asset Derivatives | 301 | |
Derivatives designated as hedging instruments | Interest rate swaps | Included in other liabilities | ||
Notional amounts and fair values of derivatives | ||
Liability Derivatives | (1,716) | (1,211) |
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | ||
Notional amounts and fair values of derivatives | ||
Notional Amount | 2,908,144 | 2,827,582 |
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Included in other assets | ||
Notional amounts and fair values of derivatives | ||
Asset Derivatives | 16,107 | 50,898 |
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Included in other liabilities | ||
Notional amounts and fair values of derivatives | ||
Liability Derivatives | (11,697) | |
Derivatives Not Designated as Hedging Instruments | Visa Derivative | ||
Notional amounts and fair values of derivatives | ||
Notional Amount | 100,887 | 105,916 |
Derivatives Not Designated as Hedging Instruments | Visa Derivative | Included in other liabilities | ||
Notional amounts and fair values of derivatives | ||
Liability Derivatives | (5,794) | (5,530) |
Derivatives Not Designated as Hedging Instruments | Interest rate caps and floors | ||
Notional amounts and fair values of derivatives | ||
Notional Amount | 148,800 | |
Derivatives Not Designated as Hedging Instruments | Interest rate caps and floors | Included in other assets | ||
Notional amounts and fair values of derivatives | ||
Asset Derivatives | 27 | |
Derivatives Not Designated as Hedging Instruments | Interest rate caps and floors | Included in other liabilities | ||
Notional amounts and fair values of derivatives | ||
Liability Derivatives | (27) | |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Notional amounts and fair values of derivatives | ||
Notional Amount | 1,005 | $ 217 |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Included in other assets | ||
Notional amounts and fair values of derivatives | ||
Asset Derivatives | $ 6 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Clearinghouse Margin and Collateral (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative contracts | ||
Cash collateral received | $ 1.5 | $ 1.7 |
Interest rate swaps | ||
Derivative contracts | ||
Cash collateral received | 9.1 | |
Financial instruments pledged as collateral | 29.9 | 30.3 |
Cash pledged as collateral | 18.1 | |
Chicago Mercantile Exchange (CME) and London Clearing House (LCH) | ||
Derivative contracts | ||
Variation margin | $ 4.4 | $ 50.9 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Value Hedges and Cash Flow Hedges (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)derivative | Dec. 31, 2021USD ($)derivative | |
Other comprehensive income (loss) | ||
Fair hedges carried | ||
Recognized loss in other comprehensive income (loss) | $ (1,700) | |
Gains or losses reclassified from accumulated other comprehensive income (loss) into earnings | 0 | |
Accumulated other comprehensive income (loss) into earnings | $ 400 | |
Hedge term | 2 years | |
Derivatives designated as hedging instruments | Interest rate swaps | ||
Fair hedges carried | ||
Notional amounts | $ 267,500 | $ 67,500 |
Derivatives designated as hedging instruments | Interest rate swaps | Fair value hedges | ||
Fair hedges carried | ||
Number of interest rate swaps | derivative | 1 | 1 |
Notional amounts | $ 67,500 | $ 67,500 |
Positive fair value | $ 300 | |
Negative fair value | $ 1,000 | |
Fixed interest rate (as a percent) | 2.07% | |
Derivatives designated as hedging instruments | Interest rate swaps | Cash Flow Hedges | ||
Fair hedges carried | ||
Number of derivatives carried | derivative | 2 | |
Notional amounts | $ 200,000 | |
Negative fair value | $ 1,700 | |
Derivatives designated as hedging instruments | Interest rate swaps | Cash Flow Hedges | Minimum | ||
Fair hedges carried | ||
Fixed interest rate (as a percent) | 1.70% | |
Derivatives designated as hedging instruments | Interest rate swaps | Cash Flow Hedges | Maximum | ||
Fair hedges carried | ||
Fixed interest rate (as a percent) | 2.08% |
Derivative Financial Instrume_6
Derivative Financial Instruments - Gains and Losses Recognized in Income, Fair Value Hedges (Details) - Loans and lease financing - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest rate swaps | ||
Gains and losses related to derivatives | ||
Recognized on interest rate swap | $ 1,512 | $ 193 |
Hedged item | ||
Gains and losses related to derivatives | ||
Recognized on hedged item | $ (1,617) | $ (249) |
Derivative Financial Instrume_7
Derivative Financial Instruments - Amounts Recorded in Balance Sheets Related to Cumulative Basis Adjustments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative Financial Instruments | ||
Carrying Amount of the Hedged Asset | $ 67,181 | $ 68,707 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset | $ (319) | $ 1,207 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Derivatives Not Designated as Hedges (Details) - Derivatives Not Designated as Hedging Instruments - Other noninterest income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Visa Derivative | ||
Impact on pretax earnings of derivatives not designated as hedges | ||
Net Gains (Losses) on Derivatives | $ (1,480) | $ 26 |
Foreign exchange contracts | ||
Impact on pretax earnings of derivatives not designated as hedges | ||
Net Gains (Losses) on Derivatives | $ 6 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Free-Standing (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Minimum | |||
Derivative financial instruments | |||
Derivative, Floating rate | 0.23% | 0.00% | |
Maximum | |||
Derivative financial instruments | |||
Derivative, Floating rate | 3.55% | ||
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | |||
Derivative financial instruments | |||
Notional Amount | $ 2,908,144 | $ 2,827,582 | |
Net interest expense | $ 0 | $ 0 | |
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Minimum | |||
Derivative financial instruments | |||
Fixed interest rate (as a percent) | 2.02% | 2.02% | |
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Maximum | |||
Derivative financial instruments | |||
Derivative, Floating rate | 3.23% | ||
Fixed interest rate (as a percent) | 6.19% | 6.19% | |
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Customer swap program | |||
Derivative financial instruments | |||
Notional Amount | $ 2,900,000 | $ 2,800,000 | |
Positive fair value, derivative asset | 16,100 | 50,900 | |
Negative fair value, derivative liability | 11,700 | $ 0 | |
Upfront fees on the dealer swap | $ 1,000 | $ 500 |
Derivative Financial Instrum_10
Derivative Financial Instruments - Visa Class B Restricted Shares (Details) - Class B restricted shares $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016USD ($)shares | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Sep. 27, 2019 | Jun. 28, 2018 | Dec. 31, 2017 | |
Visa | ||||||
Visa Class B Restricted Shares | ||||||
Net realized gain related to the sale of stock | $ 22.7 | |||||
Number of shares sold | shares | 274,000 | |||||
Visa Derivative | ||||||
Visa Class B Restricted Shares | ||||||
Conversion rate | 1.6181 | 1.6181 | 1.6483 | 1.6483 | ||
Derivative liability value | $ 5.8 | $ 5.5 |
Derivative Financial Instrum_11
Derivative Financial Instruments - Counterparty Credit Risk and Credit-Risk Related Contingent Features (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Derivative contracts | |||
Counterparty credit risk adjustments | $ 0.1 | $ 0.1 | |
Credit-risk-related contingent features | |||
Aggregate fair value of derivative instruments in a net liability position | 0.8 | $ 26.9 | |
Collateral posted for derivatives in a net liability position | 0.8 | $ 19.8 | |
Interest rate swaps | |||
Derivative contracts | |||
Collateral thresholds for derivative agreements with credit risk related contingent features | $ 0.3 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Commitments to Extend Credit, Participations Sold (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Commitments to extend credit | ||
Commitments | ||
Participations sold to other institutions | $ 93.5 | $ 95.5 |
Standby letters of credit | ||
Commitments | ||
Participations sold to other institutions | $ 10.7 | $ 10.7 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financial instruments with off-balance sheet risk | ||
Contract amount | $ 6,700,000 | $ 6,700,000 |
Commitments to extend credit | ||
Financial instruments with off-balance sheet risk | ||
Contract amount | 6,546,389 | 6,490,301 |
Standby letters of credit | ||
Financial instruments with off-balance sheet risk | ||
Contract amount | 182,423 | 182,447 |
Commercial letters of credit | ||
Financial instruments with off-balance sheet risk | ||
Contract amount | $ 7,149 | $ 3,307 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue from Contracts with Customers | ||
Net interest income | $ 133,872 | $ 129,158 |
Not in scope of Topic 606 | 71 | 6,403 |
Total noninterest income | 41,380 | 43,868 |
Total revenue | 175,252 | 173,026 |
Retail Banking | ||
Revenue from Contracts with Customers | ||
Net interest income | 94,048 | 94,454 |
Not in scope of Topic 606 | 1,091 | 3,354 |
Total noninterest income | 23,315 | 23,575 |
Total revenue | 117,363 | 118,029 |
Commercial Banking | ||
Revenue from Contracts with Customers | ||
Net interest income | 35,088 | 38,266 |
Not in scope of Topic 606 | 1,918 | 1,322 |
Total noninterest income | 18,655 | 16,041 |
Total revenue | 53,743 | 54,307 |
Treasury and Other | ||
Revenue from Contracts with Customers | ||
Net interest income | 4,736 | (3,562) |
Not in scope of Topic 606 | (2,938) | 1,727 |
Total noninterest income | (590) | 4,252 |
Total revenue | 4,146 | 690 |
Service charges on deposit accounts. | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 7,501 | 6,718 |
Service charges on deposit accounts. | Retail Banking | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 6,650 | 6,086 |
Service charges on deposit accounts. | Commercial Banking | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 346 | 223 |
Service charges on deposit accounts. | Treasury and Other | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 505 | 409 |
Credit and debit card fees | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 14,242 | 13,953 |
Credit and debit card fees | Commercial Banking | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 13,026 | 12,525 |
Credit and debit card fees | Treasury and Other | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 1,216 | 1,428 |
Other service charges and fees. | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 7,713 | 6,391 |
Other service charges and fees. | Retail Banking | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 6,563 | 5,564 |
Other service charges and fees. | Commercial Banking | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 781 | 475 |
Other service charges and fees. | Treasury and Other | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 369 | 352 |
Trust and investment services income | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 8,883 | 8,492 |
Trust and investment services income | Retail Banking | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 8,883 | 8,492 |
Other. | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 2,970 | 1,911 |
Other. | Retail Banking | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 128 | 79 |
Other. | Commercial Banking | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | 2,584 | 1,496 |
Other. | Treasury and Other | ||
Revenue from Contracts with Customers | ||
Revenue by type of service | $ 258 | $ 336 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Balances (Details) | 3 Months Ended | ||
Mar. 31, 2022USD ($)item | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Revenue from Contracts with Customers | |||
Signing bonuses received from vendors, in prior years | item | 3 | ||
Contract liabilities | $ 2,700,000 | $ 3,000,000 | |
Increase in recognized revenues and contract liabilities | 300,000 | $ 200,000 | |
Change in contract liabilities due to changes in transaction price estimates | 0 | ||
Receivables from contracts with customers or contract assets | $ 0 | $ 0 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Other (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Revenue from Contracts with Customers | ||
Significant performance obligations | $ 0 | $ 0 |
Material contract acquisition costs | $ 0 | $ 0 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings per Share | ||
Adjustments to net income (in dollars) | $ 0 | $ 0 |
Antidilutive securities (in shares) | 0 | 27,000 |
Numerator: | ||
Net income | $ 57,719 | $ 57,693 |
Denominator: | ||
Basic: weighted-average shares outstanding (in shares) | 127,556,242 | 129,933,104 |
Add: weighted-average equity-based awards (in shares) | 564,884 | 656,774 |
Diluted: weighted-average shares outstanding (in shares) | 128,121,126 | 130,589,878 |
Basic earnings per share (in dollars per share) | $ 0.45 | $ 0.44 |
Diluted earnings per share (in dollars per share) | $ 0.45 | $ 0.44 |
Noninterest Income and Nonint_3
Noninterest Income and Noninterest Expense - Net periodic benefit cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension Plan | ||
Components of net periodic benefit cost | ||
Total net periodic benefit cost | $ 1,846 | $ 2,185 |
Pension Plan | Other noninterest expense | ||
Components of net periodic benefit cost | ||
Interest cost | 1,361 | 1,231 |
Expected return on plan assets | (783) | (766) |
Recognized net actuarial loss (gain) | 1,268 | 1,720 |
Other Benefits | ||
Components of net periodic benefit cost | ||
Total net periodic benefit cost | 258 | 395 |
Other Benefits | Salaries and employee benefits | ||
Components of net periodic benefit cost | ||
Service cost | 215 | 264 |
Other Benefits | Other noninterest expense | ||
Components of net periodic benefit cost | ||
Interest cost | 144 | $ 131 |
Recognized net actuarial loss (gain) | $ (101) |
Noninterest Income and Nonint_4
Noninterest Income and Noninterest Expense - Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Noninterest Income and Noninterest Expense | ||
Operating lease income related to lease payments | $ 1.5 | $ 1.7 |
Lease income related to variable lease payments | $ 1.6 | $ 1.5 |
Fair Value - Visa Derivative (D
Fair Value - Visa Derivative (Details) - Visa Derivative $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Sep. 27, 2019 | Jun. 28, 2018 | Dec. 31, 2017 |
Class B restricted shares | |||||
Fair value | |||||
Conversion rate | 1.6181 | 1.6181 | 1.6483 | 1.6483 | |
Fair Value, Measurements, Recurring | Level 3 | |||||
Fair value | |||||
Derivative Liability | $ 5,800 | $ 5,500 | |||
Included in other liabilities | Derivatives Not Designated as Hedging Instruments | |||||
Fair value | |||||
Derivative Liability | $ 5,794 | $ 5,530 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Total available-for-sale securities, Fair value, | $ 8,062,384 | $ 8,428,032 |
Collateralized Loan Obligations | ||
Assets | ||
Total available-for-sale securities, Fair value, | 220,884 | 105,247 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 8,062,384 | 8,428,032 |
Other assets | 23,031 | 58,307 |
Liabilities | ||
Other liabilities | (19,207) | (6,768) |
Total | ||
Net Assets (Liabilities) | 8,066,208 | 8,479,571 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Other assets | 6,617 | 7,382 |
Total | ||
Net Assets (Liabilities) | 6,617 | 7,382 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Total available-for-sale securities, Fair value, | 8,062,384 | 8,428,032 |
Other assets | 16,414 | 50,925 |
Liabilities | ||
Other liabilities | (13,413) | (1,238) |
Total | ||
Net Assets (Liabilities) | 8,065,385 | 8,477,719 |
Fair Value, Measurements, Recurring | Level 3 | ||
Liabilities | ||
Other liabilities | (5,794) | (5,530) |
Total | ||
Net Assets (Liabilities) | (5,794) | (5,530) |
U.S. Treasury and government agency debt securities | ||
Assets | ||
Total available-for-sale securities, Fair value, | 199,544 | 192,563 |
U.S. Treasury and government agency debt securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 199,544 | 192,563 |
U.S. Treasury and government agency debt securities | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Total available-for-sale securities, Fair value, | 199,544 | 192,563 |
Residential - Government agency | ||
Assets | ||
Total available-for-sale securities, Fair value, | 122,965 | 137,264 |
Residential - Government agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 122,965 | 137,264 |
Residential - Government agency | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Total available-for-sale securities, Fair value, | 122,965 | 137,264 |
Residential - Government-sponsored enterprises | ||
Assets | ||
Total available-for-sale securities, Fair value, | 1,362,345 | 1,491,100 |
Residential - Government-sponsored enterprises | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 1,362,345 | 1,491,100 |
Residential - Government-sponsored enterprises | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Total available-for-sale securities, Fair value, | 1,362,345 | 1,491,100 |
Commercial - Government agency | ||
Assets | ||
Total available-for-sale securities, Fair value, | 333,089 | 387,663 |
Commercial - Government agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 333,089 | 387,663 |
Commercial - Government agency | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Total available-for-sale securities, Fair value, | 333,089 | 387,663 |
Commercial - Government-sponsored enterprises | ||
Assets | ||
Total available-for-sale securities, Fair value, | 1,249,834 | 1,369,443 |
Commercial - Government-sponsored enterprises | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 1,249,834 | 1,369,443 |
Commercial - Government-sponsored enterprises | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Total available-for-sale securities, Fair value, | 1,249,834 | 1,369,443 |
Government agency | ||
Assets | ||
Total available-for-sale securities, Fair value, | 2,009,781 | 2,079,523 |
Government agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 2,009,781 | 2,079,523 |
Government agency | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Total available-for-sale securities, Fair value, | 2,009,781 | 2,079,523 |
Government-sponsored enterprises | ||
Assets | ||
Total available-for-sale securities, Fair value, | 2,509,707 | 2,621,044 |
Government-sponsored enterprises | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 2,509,707 | 2,621,044 |
Government-sponsored enterprises | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Total available-for-sale securities, Fair value, | 2,509,707 | 2,621,044 |
Collateralized Loan Obligations | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 220,884 | 105,247 |
Collateralized Loan Obligations | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Total available-for-sale securities, Fair value, | 220,884 | 105,247 |
Debt securities issued by states and political subdivisions | ||
Assets | ||
Total available-for-sale securities, Fair value, | 54,235 | 44,185 |
Debt securities issued by states and political subdivisions | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 54,235 | 44,185 |
Debt securities issued by states and political subdivisions | Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Total available-for-sale securities, Fair value, | $ 54,235 | $ 44,185 |
Fair Value - Changes in Fair Va
Fair Value - Changes in Fair Value Levels and in Level 3 Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair value | ||
Amount of transfers between hierarchy levels | $ 0 | $ 0 |
Visa derivative | Visa Derivative | ||
Changes in Level 3 liabilities measured at fair value on a recurring basis | ||
Balance | (5,530) | (4,554) |
Total net (losses) gains included in other noninterest income | (1,480) | 26 |
Settlements | 1,216 | 1,146 |
Balance | (5,794) | (3,382) |
Total net (losses) gains included in net income attributable to the change in unrealized gains or losses related to liabilities still held | $ (1,480) | $ 26 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments not Required to be Carried at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Lease and lease commitments excluded | ||
Financing leases | $ 223,200 | $ 231,400 |
Deposit liabilities with no defined or contractual maturity | 20,600,000 | 20,000,000 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 1,626,160 | 1,258,469 |
Loans held for sale | 538 | |
Loans | 12,668,573 | 12,730,605 |
Financial liabilities: | ||
Time deposits | 1,701,838 | 1,776,438 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 1,626,160 | 1,258,469 |
Loans held for sale | 542 | |
Loans | 12,447,576 | 12,791,811 |
Financial liabilities: | ||
Time deposits | 1,681,170 | 1,773,321 |
Estimated Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 274,022 | 246,716 |
Estimated Fair Value | Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 1,352,138 | 1,011,753 |
Loans held for sale | 542 | |
Financial liabilities: | ||
Time deposits | 1,681,170 | 1,773,321 |
Estimated Fair Value | Level 3 | ||
Financial assets: | ||
Loans | $ 12,447,576 | $ 12,791,811 |
Fair Value - Unfunded Loan and
Fair Value - Unfunded Loan and Lease Commitments and Letters of Credit (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Unfunded loan and lease commitments and letters of credit | ||
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit | $ 6,700 | $ 6,700 |
Level 3 | ||
Unfunded loan and lease commitments and letters of credit | ||
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit | 6,700 | 6,700 |
Estimated fair value of unfunded loan and lease commitments and letters of credit | $ 42.6 | $ 44.3 |
Fair Value - Assets and Liabi_2
Fair Value - Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Fair Value, Measurements, Nonrecurring | |||
Assets with fair value adjustments on a nonrecurring basis | |||
Fair value | $ 0 | $ 0 | |
Assets, Fair Value Adjustment | 0 | $ 0 | |
Collateral-dependent loans | |||
Assets with fair value adjustments on a nonrecurring basis | |||
Total impairment losses | $ 0 | $ 0 |
Fair Value - Significant Unobse
Fair Value - Significant Unobservable Inputs Used in Fair Value Measurements (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)Y | Dec. 31, 2021USD ($)Y | |
Level 3 | Visa derivative | Expected Conversation Rate | Discounted cash flow | Weighted Average | ||
Fair value | ||
Measurement input | 1.6181 | 1.6181 |
Level 3 | Visa derivative | Expected Conversation Rate | Discounted cash flow | Minimum | ||
Fair value | ||
Measurement input | 1.5885 | 1.5885 |
Level 3 | Visa derivative | Expected Conversation Rate | Discounted cash flow | Maximum | ||
Fair value | ||
Measurement input | 1.6181 | 1.6181 |
Level 3 | Visa derivative | Expected Term (in years) | Discounted cash flow | Weighted Average | ||
Fair value | ||
Measurement input | 1 | 1 |
Level 3 | Visa derivative | Expected Term (in years) | Discounted cash flow | Minimum | ||
Fair value | ||
Measurement input | 0.5 | 0.5 |
Level 3 | Visa derivative | Expected Term (in years) | Discounted cash flow | Maximum | ||
Fair value | ||
Measurement input | 1.5 | 1.5 |
Level 3 | Visa derivative | Growth Rate (percentage) | Discounted cash flow | Weighted Average | ||
Fair value | ||
Growth Rate (as a percent) | 26.00% | 26.00% |
Level 3 | Visa derivative | Growth Rate (percentage) | Discounted cash flow | Minimum | ||
Fair value | ||
Growth Rate (as a percent) | 10.00% | 10.00% |
Level 3 | Visa derivative | Growth Rate (percentage) | Discounted cash flow | Maximum | ||
Fair value | ||
Growth Rate (as a percent) | 38.00% | 38.00% |
Fair Value, Measurements, Nonrecurring | ||
Fair value | ||
Assets | $ | $ 0 | $ 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | Visa derivative | ||
Fair value | ||
Liabilities | $ | $ (5,794,000) | $ (5,530,000) |
Reportable Operating Segments -
Reportable Operating Segments - Business Segments (Details) | 3 Months Ended |
Mar. 31, 2022locationsegment | |
Reportable operating segments | |
Number of business segments | segment | 3 |
Retail Banking | |
Reportable operating segments | |
Number of Branches | location | 51 |
Reportable Operating Segments_2
Reportable Operating Segments - Selected Business Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Selected business segment financial information | |||
Net interest income (expense) | $ 133,872 | $ 129,158 | |
Benefit (Provision) for credit losses | 5,747 | ||
Net interest income after provision for credit losses | 139,619 | 129,158 | |
Noninterest income | 41,380 | 43,868 | |
Noninterest expense | (104,042) | (96,306) | |
Income before provision for income taxes | 76,957 | 76,720 | |
Benefit (provision) for income taxes | (19,238) | (19,027) | |
Net income | 57,719 | 57,693 | |
Total assets | 25,042,720 | $ 24,992,410 | |
Retail Banking | |||
Selected business segment financial information | |||
Net interest income (expense) | 94,048 | 94,454 | |
Benefit (Provision) for credit losses | 1,841 | 1,470 | |
Net interest income after provision for credit losses | 95,889 | 95,924 | |
Noninterest income | 23,315 | 23,575 | |
Noninterest expense | (70,220) | (62,889) | |
Income before provision for income taxes | 48,984 | 56,610 | |
Benefit (provision) for income taxes | (12,150) | (14,126) | |
Net income | 36,834 | 42,484 | |
Commercial Banking | |||
Selected business segment financial information | |||
Net interest income (expense) | 35,088 | 38,266 | |
Benefit (Provision) for credit losses | 2,542 | 2,030 | |
Net interest income after provision for credit losses | 37,630 | 40,296 | |
Noninterest income | 18,655 | 16,041 | |
Noninterest expense | (26,505) | (22,478) | |
Income before provision for income taxes | 29,780 | 33,859 | |
Benefit (provision) for income taxes | (7,253) | (8,344) | |
Net income | 22,527 | 25,515 | |
Treasury and Other | |||
Selected business segment financial information | |||
Net interest income (expense) | 4,736 | (3,562) | |
Benefit (Provision) for credit losses | 1,364 | (3,500) | |
Net interest income after provision for credit losses | 6,100 | (7,062) | |
Noninterest income | (590) | 4,252 | |
Noninterest expense | (7,317) | (10,939) | |
Income before provision for income taxes | (1,807) | (13,749) | |
Benefit (provision) for income taxes | 165 | 3,443 | |
Net income | $ (1,642) | $ (10,306) |