Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover page | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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, State or Province | HI | |
Entity Address, Postal Zip Code | 96813 | |
City Area Code | 808 | |
Local Phone Number | 525-7000 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | FHB | |
Security Exchange Name | NASDAQ | |
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 | 127,612,083 | |
Entity Central Index Key | 0000036377 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest income | ||||
Loans and lease financing | $ 194,098 | $ 134,646 | $ 551,777 | $ 350,294 |
Available-for-sale investment securities | 18,426 | 19,644 | 55,208 | 68,394 |
Held-to-maturity investment securities | 18,271 | 17,950 | 55,510 | 36,239 |
Other | 9,004 | 4,150 | 20,054 | 7,828 |
Total interest income | 239,799 | 176,390 | 682,549 | 462,755 |
Interest expense | ||||
Deposits | 74,651 | 13,653 | 176,006 | 20,999 |
Short-term and long-term borrowings | 6,838 | 1 | 20,057 | 1 |
Other | 1,162 | 2,152 | ||
Total interest expense | 82,651 | 13,654 | 198,215 | 21,000 |
Net interest income | 157,148 | 162,736 | 484,334 | 441,755 |
Provision (benefit) for credit losses | 7,500 | 3,183 | 21,300 | (1,564) |
Net interest income after provision for credit losses | 149,648 | 159,553 | 463,034 | 443,319 |
Noninterest income | ||||
Service charges on deposit accounts | 7,524 | 7,089 | 22,001 | 21,433 |
Credit and debit card fees | 15,748 | 17,746 | 47,507 | 49,652 |
Other service charges and fees | 9,546 | 9,179 | 27,764 | 27,851 |
Trust and investment services income | 9,742 | 9,800 | 28,804 | 27,442 |
Bank-owned life insurance | 1,872 | (341) | 10,263 | (1,617) |
Other | 1,665 | 2,384 | 6,129 | 6,613 |
Total noninterest income | 46,097 | 45,857 | 142,468 | 131,374 |
Noninterest expense | ||||
Salaries and employee benefits | 55,937 | 51,372 | 169,873 | 149,500 |
Contracted services and professional fees | 16,393 | 16,625 | 50,204 | 52,389 |
Occupancy | 6,711 | 8,115 | 22,047 | 22,859 |
Equipment | 11,826 | 10,791 | 32,562 | 24,522 |
Regulatory assessment and fees | 4,149 | 2,487 | 11,661 | 7,012 |
Advertising and marketing | 2,289 | 1,902 | 6,174 | 5,924 |
Card rewards program | 8,358 | 8,141 | 24,124 | 22,309 |
Other | 13,720 | 13,899 | 42,186 | 42,034 |
Total noninterest expense | 119,383 | 113,332 | 358,831 | 326,549 |
Income before provision for income taxes | 76,362 | 92,078 | 246,671 | 248,144 |
Provision for income taxes | 18,141 | 23,060 | 59,190 | 62,047 |
Net income | $ 58,221 | $ 69,018 | $ 187,481 | $ 186,097 |
Basic earnings per share (in dollars per share) | $ 0.46 | $ 0.54 | $ 1.47 | $ 1.46 |
Diluted earnings per share (in dollars per share) | $ 0.46 | $ 0.54 | $ 1.47 | $ 1.45 |
Basic weighted-average outstanding shares (in shares) | 127,609,860 | 127,377,713 | 127,552,255 | 127,534,746 |
Diluted weighted-average outstanding shares (in shares) | 127,936,440 | 127,796,617 | 127,897,829 | 127,996,672 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) | ||||
Net Income (Loss) | $ 58,221 | $ 69,018 | $ 187,481 | $ 186,097 |
Other comprehensive loss, net of tax: | ||||
Net change in investment securities | (36,985) | (84,164) | (10,746) | (531,086) |
Net change in cash flow derivative hedges | 990 | (3,135) | 1,269 | (5,977) |
Other comprehensive loss | (35,995) | (87,299) | (9,477) | (537,063) |
Total comprehensive income (loss) | $ 22,226 | $ (18,281) | $ 178,004 | $ (350,966) |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 246,028 | $ 297,502 |
Interest-bearing deposits in other banks | 967,400 | 229,122 |
Available-for-sale, at fair value (amortized cost: $3,172,031 as of September 30, 2023 and $3,549,599 as of December 31, 2022) | 2,722,704 | 3,151,133 |
Held-to-maturity, at amortized cost (fair value: $3,433,029 as of September 30, 2023 and $3,814,822 as of December 31, 2022) | 4,104,114 | 4,320,639 |
Loans and leases | 14,332,335 | 14,092,012 |
Less: allowance for credit losses | 154,795 | 143,900 |
Net loans and leases | 14,177,540 | 13,948,112 |
Premises and equipment, net | 277,805 | 280,355 |
Other real estate owned and repossessed personal property | 91 | |
Accrued interest receivable | 84,327 | 78,194 |
Bank-owned life insurance | 477,698 | 473,067 |
Goodwill | 995,492 | 995,492 |
Mortgage servicing rights | 5,855 | 6,562 |
Other assets | 853,561 | 796,954 |
Total assets | 24,912,524 | 24,577,223 |
Deposits: | ||
Interest-bearing | 13,612,493 | 12,824,383 |
Noninterest-bearing | 7,898,996 | 8,864,646 |
Total deposits | 21,511,489 | 21,689,029 |
Short-term borrowings | 500,000 | 75,000 |
Retirement benefits payable | 99,685 | 102,577 |
Other liabilities | 450,341 | 441,612 |
Total liabilities | 22,561,515 | 22,308,218 |
Commitments and contingent liabilities (Note 12) | ||
Stockholders' equity | ||
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,330,663 / 127,609,934 as of September 30, 2023; issued/outstanding: 140,963,918 / 127,363,327 as of December 31, 2022) | 1,413 | 1,410 |
Additional paid-in capital | 2,545,659 | 2,538,336 |
Retained earnings | 823,895 | 736,544 |
Accumulated other comprehensive loss, net | (648,731) | (639,254) |
Treasury stock (13,720,729 shares as of September 30, 2023 and 13,600,591 shares as of December 31, 2022) | (371,227) | (368,031) |
Total stockholders' equity | 2,351,009 | 2,269,005 |
Total liabilities and stockholders' equity | $ 24,912,524 | $ 24,577,223 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS (Unaudited) | ||
Available-for-sale investment securities, amortized cost | $ 3,172,031 | $ 3,549,599 |
Held-to-maturity investment securities, fair value | $ 3,433,029 | $ 3,814,822 |
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) | 141,330,663 | 140,963,918 |
Common stock outstanding (in shares) | 127,609,934 | 127,363,327 |
Common stock repurchased (in shares) | 13,720,729 | 13,600,591 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated other comprehensive loss | Treasury Stock | Total |
Balance at Dec. 31, 2021 | $ 1,406 | $ 2,527,663 | $ 604,534 | $ (121,693) | $ 2,656,912 | |
Balance (in shares) at Dec. 31, 2021 | 127,502,472 | |||||
Treasury Stock, Value, Beginning Balance at Dec. 31, 2021 | $ (354,998) | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income (Loss) | 186,097 | 186,097 | ||||
Cash dividends declared | (99,475) | (99,475) | ||||
Common stock issued under Employee Stock Purchase Plan | 224 | 224 | ||||
Common stock issued under Employee Stock Purchase Plan (in shares) | 10,411 | |||||
Equity-based awards | $ 4 | 7,714 | (723) | (3,561) | 3,434 | |
Equity-based awards (in shares) | 241,982 | |||||
Common stock repurchased | (9,478) | (9,478) | ||||
Common stock repurchased (in shares) | (397,185) | |||||
Other comprehensive loss, net of tax | (537,063) | (537,063) | ||||
Balance at Sep. 30, 2022 | $ 1,410 | 2,535,601 | 690,433 | (658,756) | 2,200,651 | |
Balance (in shares) at Sep. 30, 2022 | 127,357,680 | |||||
Treasury Stock, Value, Ending Balance at Sep. 30, 2022 | (368,037) | |||||
Balance at Jun. 30, 2022 | $ 1,409 | 2,533,407 | 654,777 | (571,457) | 2,252,611 | |
Balance (in shares) at Jun. 30, 2022 | 127,451,087 | |||||
Treasury Stock, Value, Beginning Balance at Jun. 30, 2022 | (365,525) | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income (Loss) | 69,018 | 69,018 | ||||
Cash dividends declared | (33,112) | (33,112) | ||||
Common stock issued under Employee Stock Purchase Plan | 224 | 224 | ||||
Common stock issued under Employee Stock Purchase Plan (in shares) | 10,411 | |||||
Equity-based awards | $ 1 | 1,970 | (250) | (34) | 1,687 | |
Equity-based awards (in shares) | 2,809 | |||||
Common stock repurchased | (2,478) | (2,478) | ||||
Common stock repurchased (in shares) | (106,627) | |||||
Other comprehensive loss, net of tax | (87,299) | (87,299) | ||||
Balance at Sep. 30, 2022 | $ 1,410 | 2,535,601 | 690,433 | (658,756) | 2,200,651 | |
Balance (in shares) at Sep. 30, 2022 | 127,357,680 | |||||
Treasury Stock, Value, Ending Balance at Sep. 30, 2022 | (368,037) | |||||
Balance at Dec. 31, 2022 | $ 1,410 | 2,538,336 | 736,544 | (639,254) | $ 2,269,005 | |
Balance (in shares) at Dec. 31, 2022 | 127,363,327 | 127,363,327 | ||||
Treasury Stock, Value, Beginning Balance at Dec. 31, 2022 | (368,031) | $ 368,031 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income (Loss) | 187,481 | 187,481 | ||||
Cash dividends declared | (99,468) | (99,468) | ||||
Common stock issued under Employee Stock Purchase Plan | 163 | 163 | ||||
Common stock issued under Employee Stock Purchase Plan (in shares) | 9,548 | |||||
Equity-based awards | $ 3 | 7,160 | (662) | (3,196) | 3,305 | |
Equity-based awards (in shares) | 237,059 | |||||
Other comprehensive loss, net of tax | (9,477) | (9,477) | ||||
Balance at Sep. 30, 2023 | $ 1,413 | 2,545,659 | 823,895 | (648,731) | $ 2,351,009 | |
Balance (in shares) at Sep. 30, 2023 | 127,609,934 | 127,609,934 | ||||
Treasury Stock, Value, Ending Balance at Sep. 30, 2023 | (371,227) | $ 371,227 | ||||
Balance at Jun. 30, 2023 | $ 1,413 | 2,543,226 | 799,045 | (612,736) | 2,359,738 | |
Balance (in shares) at Jun. 30, 2023 | 127,608,037 | |||||
Treasury Stock, Value, Beginning Balance at Jun. 30, 2023 | (371,210) | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income (Loss) | 58,221 | 58,221 | ||||
Cash dividends declared | (33,178) | (33,178) | ||||
Equity-based awards | 2,433 | (193) | (17) | 2,223 | ||
Equity-based awards (in shares) | 1,897 | |||||
Other comprehensive loss, net of tax | (35,995) | (35,995) | ||||
Balance at Sep. 30, 2023 | $ 1,413 | $ 2,545,659 | $ 823,895 | $ (648,731) | $ 2,351,009 | |
Balance (in shares) at Sep. 30, 2023 | 127,609,934 | 127,609,934 | ||||
Treasury Stock, Value, Ending Balance at Sep. 30, 2023 | $ (371,227) | $ 371,227 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) | ||||
Cash dividends declared (in dollars per share) | $ 0.26 | $ 0.26 | $ 0.78 | $ 0.78 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 187,481 | $ 186,097 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision (benefit) for credit losses | 21,300 | (1,564) |
Depreciation, amortization and accretion, net | 32,425 | 44,142 |
Deferred income tax (benefit) provision | (13,322) | 13,807 |
Stock-based compensation | 7,163 | 7,718 |
Other losses | 1,243 | 2,780 |
Originations of loans held for sale | (11,483) | (14,243) |
Proceeds from sales of loans held for sale | 12,613 | 13,452 |
Change in assets and liabilities: | ||
Net decrease in other assets | 20,495 | 7,348 |
Net (decrease) increase in other liabilities | (44,095) | 62,054 |
Net cash provided by operating activities | 213,820 | 321,591 |
Available-for-sale securities: | ||
Proceeds from maturities and principal repayments | 345,798 | 752,306 |
Proceeds from calls and sales | 25,236 | 1,080 |
Purchases | (938,268) | |
Held-to-maturity securities: | ||
Proceeds from maturities and principal repayments | 238,722 | 254,157 |
Proceeds from calls | 7,950 | 395 |
Purchases | (79,470) | |
Other investments: | ||
Proceeds from sales | 78,746 | 5,496 |
Purchases | (102,639) | (29,514) |
Loans: | ||
Net increase in loans and leases resulting from originations and principal repayments | (214,539) | (521,025) |
Purchases of loans | (48,911) | (225,844) |
Proceeds from bank-owned life insurance | 5,632 | |
Purchases of premises, equipment and software | (8,283) | (10,747) |
Other | 313 | (2,994) |
Net cash provided by (used in) investing activities | 328,025 | (794,428) |
Cash flows from financing activities | ||
Net (decrease) increase in deposits | (177,540) | 275,592 |
Proceeds from long-term borrowings | 500,000 | |
Net decrease in other short-term borrowings | (75,000) | |
Dividends paid | (99,468) | (99,475) |
Stock tendered for payment of withholding taxes | (3,196) | (3,561) |
Proceeds from employee stock purchase plan | 163 | 224 |
Common stock repurchased | (9,478) | |
Net cash provided by financing activities | 144,959 | 163,302 |
Net increase (decrease) in cash and cash equivalents | 686,804 | (309,535) |
Cash and cash equivalents at beginning of period | 526,624 | 1,258,469 |
Cash and cash equivalents at end of period | 1,213,428 | 948,934 |
Supplemental disclosures | ||
Interest paid | 173,712 | 21,006 |
Income taxes paid, net of income tax refunds | 50,098 | 23,471 |
Noncash investing and financing activities: | ||
Operating lease right-of-use assets obtained in exchange for new lease obligations | 3,239 | 5,603 |
Transfers to loans and leases from loans held for sale | 834 | |
Transfers to loans held for sale from loans and leases | 1,133 | |
Obligation to fund low-income housing partnerships | $ 25,836 | 3,569 |
Transfers of securities from available-for-sale to held-to-maturity | $ 4,550,748 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
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, 2022. 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. Loan Modifications to Borrowers Experiencing Financial Difficulty Loan modifications are assessed by the Company to determine: (1) whether the borrower is experiencing financial difficulty and (2) whether the Company granted the borrower a modification or combination of modifications in the form of one or more of the following modification types: principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay and/or a term extension. If both criteria are met, then the loan modification is subject to additional evaluation for credit losses and enhanced disclosure requirements. Generally, a non-accrual loan that has been modified with a borrower experiencing financial difficulty remains on non-accrual status for at least six months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment terms is uncertain, the loan remains on non-accrual status. Allowance for Credit Losses The allowance for credit losses for loans and leases (the “ACL”) is a valuation account that is deducted from the amortized cost basis of loans and leases to present the net amount expected to be collected from loans and leases. Loans and leases are charged-off against the ACL when management believes the loan or lease balance is deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The Company’s ACL and the reserve for unfunded commitments under the Current Expected Credit Losses (“CECL”) approach consist of quantitative and qualitative estimates. The Company’s methodology leverages two quantitative models: a one-variable forward-looking macroeconomic model that estimates the impact of management’s economic outlook and a transition probability matrix that estimates expected losses over the long run. The quantitative estimation is overlaid with qualitative adjustments to account for current conditions and forward-looking factors not captured in the quantitative model. Qualitative adjustments that are considered include adjustments for regulatory determinants, model limitations, model maturity, and other current or anticipated events that are not captured in the Company’s historical loss experience. The Company generally evaluates loans and leases on a collective or pool basis when similar risk characteristics exist. However, loans and leases that do not share similar risk characteristics are evaluated on an individual basis. Such loans and leases evaluated individually are excluded from the collective evaluation. Individually assessed loans are measured for estimated credit loss (“ECL”) based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, less estimated selling costs, if the loan is collateral-dependent. Management reviews relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts about the future. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency levels, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. The Company utilizes a Probability of Default (“PD”)/Loss Given Default (“LGD”) framework to estimate the ACL and the reserve for unfunded commitments. The PD represents the percentage expectation to default, measured by assessing loans and leases that migrate to default status (i.e., nonaccrual status, 90 days or more past due, partial or full charge-offs or bankruptcy). LGD is defined as the percentage of the exposure at default (“EAD”) lost at the time of default, net of any recoveries, and will be unique to each of the collateral types securing the Company’s loans. PD and LGD’s are based on past experience of the Company. The ECL on loans and leases is calculated by taking the product of the credit exposure, lifetime default probability (“LDP”) and the LGD. The ECL model is applied to current credit exposures at the account level, using assumptions calibrated at the portfolio segment level using internal historical loan and lease level data. The Company estimates the default risk of a credit exposure over the remaining life of each account using a transition probability matrix approach which captures both the average rate of up/down-grade and default transitions, as well as withdrawal rates which capture the historical rate of exposure decline due to loan and lease amortization and prepayment. To apply the transition matrices, each credit exposure’s remaining life is split into two time segments. The first time segment is for the reasonable and supportable forecast period over which the transition matrices which are applied have been adjusted to incorporate current and forecasted conditions over that period. Management has determined that using a one-year time horizon for the reasonable and supportable forecast period for all classes of loans and leases is a reasonable forecast horizon given the difficulty in predicting future economic conditions with a high degree of certainty. The second time segment is the reversion period from the end of the reasonable and supportable forecast period to the maturity of the exposure, over which long-run average transition matrices are applied. Management elected to use an immediate reversion to the mean approach. Lifetime loss rates are applied against the amortized cost basis of loans and leases and unfunded commitments to estimate the ACL and the reserve for unfunded commitments, respectively. On at least a quarterly basis, management convenes the Bank’s forecasting team which is responsible for reviewing the economic forecast model inputs and outputs and approving the resulting economic adjustment. The model uses a one-variable econometric model to produce factors that modify the long-run default rate assumptions used in the CECL model. These factors are applied to calculate the economic adjustment over the Reasonable and Supportable Forecast Period. At the meeting, management is presented with the economic forecast model input and output as well as the resulting economic adjustment. Depending on the current economic conditions, a range of inputs and outputs may be presented, in which case, using judgment, management will select an input and output. The economic forecast framework also allows management to use judgment in selecting the economic model input in cases where management’s outlook diverges from the official forecasts, and to apply qualitative dollar overlays to account for other economic related conditions not captured in the economic forecast model but are expected to potentially impact losses. The team also reviews other relevant economic variables and economic factors at the time of the meeting that could potentially impact future losses. These materials are presented to the economic forecasting team as they are economic in nature. If determined to be relevant and needing to be considered in the ACL estimate, these risks will be included in the ACL estimate through a qualitative dollar overlay that is determined using either quantitative analysis or qualitative judgment, or a mix of both. These other factors could include inflation indicators, personal income, or visitor arrivals, for example. At present, the Company has identified three portfolio segments in estimating the ACL: commercial, residential real estate and consumer lending. The Company’s commercial portfolio segment is comprised of four distinct classes: commercial and industrial loans, commercial real estate loans, construction loans and lease financing. The key risk drivers related to this portfolio segment include risk rating, collateral type, and remaining maturity. The Company’s residential real estate portfolio segment is comprised of two distinct classes: residential real estate loans and home equity lines of credit. Specific risk characteristics related to this portfolio include the value of the underlying collateral, credit score and remaining maturity. Finally, the Company’s consumer portfolio segment is not further segmented, but consists primarily of automobile loans, credit cards and other installment loans. Automobile loans constitute the majority of this segment and are monitored using credit scores, collateral values and remaining maturity. The remainder of the consumer portfolio is predominantly unsecured. Regarding accrued interest receivable, the Company made accounting policy elections to (1) not measure an ACL on accrued interest receivable, (2) write-off accrued interest receivable by reversing interest income and (3) present accrued interest receivable separately from the related financial asset on the balance sheet. Furthermore, regarding collateral-dependent financial assets, the Company elected the practical expedient to use the fair value of collateral at the reporting date when recording the net carrying amount of the asset and determining the ACL for a financial asset for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the Company’s assessment as of the reporting date. Accounting Standards Adopted in 2023 In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-01, Derivatives and Hedging (Topic 815), Fair Value Hedging –Portfolio Layer Method. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures Enactment of the Inflation Reduction Act of 2022 On August 16, 2022, the U.S. government enacted the Inflation Reduction Act (IRA) which, among other changes, created a new corporate alternative minimum tax (AMT) based on adjusted financial statement income and imposes a 1% excise tax on corporate stock repurchases. These provisions became effective January 1, 2023. The enactment of the IRA did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements The following ASUs have been issued by the FASB and are applicable to the Company in future reporting periods. In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842), Common Control Arrangements. Property, Plant, and Equipment. In March 2023, the FASB issued ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323), Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. Income Taxes Investments—Equity Method and Joint Ventures—Overall Investments—Equity Securities |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2023 | |
Investment Securities | |
Investment Securities | 2. Investment Securities As of September 30, 2023 and December 31, 2022, 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 September 30, 2023 and December 31, 2022, the Company’s investment securities were classified as either available-for-sale or held-to-maturity. Amortized cost, gross unrealized holding gains and losses and fair value of available-for-sale and held-to-maturity investment securities as of September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 December 31, 2022 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 $ 126,264 $ — $ (12,105) $ 114,159 $ 163,309 $ — $ (12,327) $ 150,982 Government-sponsored enterprises debt securities 20,000 — (740) 19,260 45,000 — (699) 44,301 Mortgage-backed securities: Residential - Government agency 61,768 — (9,406) 52,362 66,792 — (7,069) 59,723 Residential - Government-sponsored enterprises 1,185,269 — (179,487) 1,005,782 1,317,718 — (157,263) 1,160,455 Commercial - Government agency 272,432 — (60,535) 211,897 282,700 — (44,847) 237,853 Commercial - Government-sponsored enterprises 94,021 — (9,101) 84,920 130,612 — (11,039) 119,573 Commercial - Non-agency 21,964 — (362) 21,602 21,964 — (493) 21,471 Collateralized mortgage obligations: Government agency 661,207 — (95,355) 565,852 738,524 — (85,202) 653,322 Government-sponsored enterprises 479,217 — (78,469) 400,748 533,103 — (70,971) 462,132 Collateralized loan obligations 249,889 21 (3,788) 246,122 249,877 50 (8,606) 241,321 Total available-for-sale securities $ 3,172,031 $ 21 $ (449,348) $ 2,722,704 $ 3,549,599 $ 50 $ (398,516) $ 3,151,133 Government agency debt securities $ 53,105 $ — $ (7,901) $ 45,204 $ 54,318 $ — $ (5,674) $ 48,644 Mortgage-backed securities: Residential - Government agency 44,379 — (8,024) 36,355 46,302 — (6,294) 40,008 Residential - Government-sponsored enterprises 100,905 — (18,151) 82,754 106,534 — (12,978) 93,556 Commercial - Government agency 30,733 — (8,756) 21,977 30,544 — (5,229) 25,315 Commercial - Government-sponsored enterprises 1,132,818 153 (194,471) 938,500 1,150,449 — (138,451) 1,011,998 Collateralized mortgage obligations: Government agency 1,010,551 — (153,260) 857,291 1,080,492 — (122,378) 958,114 Government-sponsored enterprises 1,677,519 — (271,248) 1,406,271 1,798,178 — (207,045) 1,591,133 Debt securities issued by states and political subdivisions 54,104 — (9,427) 44,677 53,822 — (7,768) 46,054 Total held-to-maturity securities $ 4,104,114 $ 153 $ (671,238) $ 3,433,029 $ 4,320,639 $ — $ (505,817) $ 3,814,822 During the year ended December 31, 2022, the Company reclassified at fair value approximately $4.6 billion, in available-for-sale investment securities to the held-to-maturity category. The related total unrealized after-tax losses of approximately $372.4 million remained in accumulated other comprehensive loss to be amortized over the estimated remaining life of the securities as an adjustment of yield, offsetting the related accretion of the discount on the transferred securities. No gains or losses were recognized at the time of reclassification. Management considers the held-to-maturity classification of these investment securities to be appropriate as the Company has the positive intent and ability to hold these securities to maturity. There were no securities transferred from available-for-sale investment securities to the held-to-maturity category during the three and nine months ended September 30, 2023. Accrued interest receivable related to available-for-sale investment securities was $8.7 million and $8.9 million as of September 30, 2023 and December 31, 2022, respectively. Accrued interest receivable related to held-to-maturity investment securities was $7.4 million and $7.5 million as of September 30, 2023 and December 31, 2022, respectively. Accrued interest receivable 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 $0.2 million and nil, respectively, for the three months ended September 30, 2023, and $8.0 million and $25.2 million, respectively, for the nine months ended September 30, 2023. Proceeds from calls and sales of investment securities were $0.3 million and nil, respectively, for the three months ended September 30, 2022, and $1.5 million and nil, respectively, for the nine months ended September 30, 2022. The Company recorded gross realized gains of nil and gross realized losses of nil for the three and nine months ended September 30, 2023 and 2022. The income tax expense related to the Company’s net realized gain on the sale of investment securities was nil for the three and nine months ended September 30, 2023 and 2022. Gains and losses realized on sales of securities are determined using the specific identification method. Interest income from taxable investment securities was $33.4 million and $33.8 million, respectively, for the three months ended September 30, 2023 and 2022, and $100.7 million and $94.5 million, respectively, for the nine months ended September 30, 2023 and 2022. Interest income from non-taxable investment securities was $3.3 million and $3.8 million, respectively, for the three months ended September 30, 2023 and 2022, and $10.0 million and $10.1 million, respectively, for the nine months ended September 30, 2023 and 2022. The amortized cost and fair value of debt securities issued by the U.S. Treasury, government agencies, government-sponsored enterprises and states and political subdivisions, non-agency mortgage-backed securities and collateralized loan obligations as of September 30, 2023, by contractual maturity, are shown below. Mortgage-backed securities and collateralized mortgage obligations issued by government agencies and government-sponsored enterprises are disclosed separately in the table below as remaining expected maturities will differ from contractual maturities as borrowers have the right to prepay obligations. September 30, 2023 Amortized Fair (dollars in thousands) Cost Value Available-for-sale securities Due in one year or less $ 19,884 $ 19,534 Due after one year through five years 60,651 57,469 Due after five years through ten years 172,717 161,989 Due after ten years 164,865 162,151 418,117 401,143 Mortgage-backed securities: Residential - Government agency 61,768 52,362 Residential - Government-sponsored enterprises 1,185,269 1,005,782 Commercial - Government agency 272,432 211,897 Commercial - Government-sponsored enterprises 94,021 84,920 Total mortgage-backed securities 1,613,490 1,354,961 Collateralized mortgage obligations: Government agency 661,207 565,852 Government-sponsored enterprises 479,217 400,748 Total collateralized mortgage obligations 1,140,424 966,600 Total available-for-sale securities $ 3,172,031 $ 2,722,704 Held-to-maturity securities Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 10,280 8,732 Due after ten years 96,929 81,149 107,209 89,881 Mortgage-backed securities: Residential - Government agency 44,379 36,355 Residential - Government-sponsored enterprises 100,905 82,754 Commercial - Government agency 30,733 21,977 Commercial - Government-sponsored enterprises 1,132,818 938,500 Total mortgage-backed securities 1,308,835 1,079,586 Collateralized mortgage obligations: Government agency 1,010,551 857,291 Government-sponsored enterprises 1,677,519 1,406,271 Total collateralized mortgage obligations 2,688,070 2,263,562 Total held-to-maturity securities $ 4,104,114 $ 3,433,029 At September 30, 2023, pledged securities totaled $6.3 billion, of which $3.5 billion was pledged to secure public deposits, $2.6 billion was pledged to secure borrowing capacity and $180.1 million was pledged to secure other financial transactions. At December 31, 2022, pledged securities totaled $3.2 billion, of which $3.0 billion was pledged to secure public deposits and $207.8 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 September 30, 2023 or December 31, 2022. 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 279 and 275 individual securities in each category have been in a continuous loss position as of September 30, 2023 and December 31, 2022, respectively. The unrealized losses on available-for-sale 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 September 30, 2023 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 $ — $ — $ (12,105) $ 114,159 $ (12,105) $ 114,159 Government-sponsored enterprises debt securities — — (740) 19,260 (740) 19,260 Mortgage-backed securities: Residential - Government agency — — (9,406) 52,362 (9,406) 52,362 Residential - Government-sponsored enterprises — — (179,487) 1,005,782 (179,487) 1,005,782 Commercial - Government agency — — (60,535) 211,897 (60,535) 211,897 Commercial - Government-sponsored enterprises — — (9,101) 84,920 (9,101) 84,920 Commercial - Non-agency — — (362) 21,602 (362) 21,602 Collateralized mortgage obligations: Government agency — — (95,355) 565,852 (95,355) 565,852 Government-sponsored enterprises — — (78,469) 400,748 (78,469) 400,748 Collateralized loan obligations (973) 75,258 (2,815) 169,131 (3,788) 244,389 Total available-for-sale securities with unrealized losses $ (973) $ 75,258 $ (448,375) $ 2,645,713 $ (449,348) $ 2,720,971 Time in Continuous Loss as of December 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 $ (2,962) $ 83,870 $ (9,365) $ 67,112 $ (12,327) $ 150,982 Government-sponsored enterprises debt securities (699) 44,301 — — (699) 44,301 Mortgage-backed securities: Residential - Government agency (7,069) 59,723 — — (7,069) 59,723 Residential - Government-sponsored enterprises (73,954) 645,338 (83,309) 515,117 (157,263) 1,160,455 Commercial - Government agency (15,852) 108,842 (28,995) 129,011 (44,847) 237,853 Commercial - Government-sponsored enterprises (7,348) 94,657 (3,691) 24,916 (11,039) 119,573 Commercial - Non-agency (493) 21,471 — — (493) 21,471 Collateralized mortgage obligations: Government agency (74,797) 596,907 (10,405) 56,415 (85,202) 653,322 Government-sponsored enterprises (21,916) 198,108 (49,055) 264,024 (70,971) 462,132 Collateralized loan obligations: (8,606) 170,042 — — (8,606) 170,042 Total available-for-sale securities with unrealized losses $ (213,696) $ 2,023,259 $ (184,820) $ 1,056,595 $ (398,516) $ 3,079,854 At September 30, 2023 and December 31, 2022, the Company did not have any available-for-sale securities in an unrealized loss position with the intent to sell and determined it was more likely than not that the Company would not be required to sell these securities prior to recovery of the amortized cost basis. As the Company had the intent and ability to hold the remaining available-for-sale securities in an unrealized loss position as of September 30, 2023 and December 31, 2022, each security with an unrealized loss position in the above tables has been further assessed to determine if a credit loss exists. As of September 30, 2023 and December 31, 2022, the Company did not expect any credit losses in its available-for-sale debt securities and no credit losses were recognized on available-for-sale securities during the three and nine months ended September 30, 2023 and for the year ended December 31, 2022. As of September 30, 2023 and December 31, 2022, the Company’s investment securities were comprised primarily of debt securities, mortgage-backed securities and collateralized mortgage obligations issued by the U.S. Government, its agencies and government-sponsored enterprises, with under 5% of the 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 and held-to-maturity debt securities as of September 30, 2023 or December 31, 2022. The Company held approximately 120,000 Visa Class B restricted shares as of both September 30, 2023 and December 31, 2022. These shares continued to be carried at $0 cost basis as of both September 30, 2023 and December 31, 2022. |
Loans and Leases
Loans and Leases | 9 Months Ended |
Sep. 30, 2023 | |
Loans and Leases. | |
Loans and Leases | 3. Loans and Leases As of September 30, 2023 and December 31, 2022, loans and leases were comprised of the following: September 30, December 31, (dollars in thousands) 2023 2022 Commercial and industrial $ 2,101,442 $ 2,235,897 Commercial real estate 4,387,751 4,132,309 Construction 885,112 844,643 Residential: Residential mortgage 4,303,924 4,302,788 Home equity line 1,167,388 1,055,351 Total residential 5,471,312 5,358,139 Consumer 1,154,203 1,222,934 Lease financing 332,515 298,090 Total loans and leases $ 14,332,335 $ 14,092,012 As of September 30, 2023, commercial real estate and residential real estate loans totaling $4.8 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, residential real estate loans and pledged securities totaling $4.8 billion were pledged to collateralize the Company’s borrowing capacity at the Federal Reserve Bank of San Francisco (“FRB”). As of December 31, 2022, residential real estate loans totaling $3.5 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 $7.3 million and $2.8 million as of September 30, 2023 and December 31, 2022, 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 | 9 Months Ended |
Sep. 30, 2023 | |
Allowance for Credit Losses | |
Allowance for Credit Losses | 4. Allowance for Credit Losses The Company maintains 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. While management utilizes its best judgment and information available, the ultimate appropriateness of the ACL is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. The Company’s methodology is more fully described in our Annual Report on Form 10-K for the year ended December 31, 2022. 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 and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, 2023 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 $ 13,810 $ 39,887 $ 9,871 $ 1,447 $ 32,803 $ 11,806 $ 38,957 $ 148,581 Charge-offs (784) — — — — — (3,665) (4,449) Recoveries 2,637 — — — 53 303 1,746 4,739 Provision (1,963) 3,911 333 263 4,143 (682) (81) 5,924 Balance at end of period $ 13,700 $ 43,798 $ 10,204 $ 1,710 $ 36,999 $ 11,427 $ 36,957 $ 154,795 Nine Months Ended September 30, 2023 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 $ 14,564 $ 43,810 $ 5,843 $ 1,551 $ 35,175 $ 8,296 $ 34,661 $ 143,900 Charge-offs (2,572) — — — (122) (272) (12,963) (15,929) Recoveries 3,175 — — — 110 539 5,640 9,464 Provision (1,467) (12) 4,361 159 1,836 2,864 9,619 17,360 Balance at end of period $ 13,700 43,798 $ 10,204 $ 1,710 $ 36,999 $ 11,427 $ 36,957 $ 154,795 Three Months Ended September 30, 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 $ 15,924 $ 44,726 $ 5,367 $ 1,398 $ 33,635 $ 4,734 $ 43,158 $ 148,942 Charge-offs (328) (750) — — (1) — (3,986) (5,065) Recoveries 240 — — — 37 356 1,653 2,286 Provision (703) 416 (643) 235 248 164 2,283 2,000 Balance at end of period $ 15,133 $ 44,392 $ 4,724 $ 1,633 $ 33,919 $ 5,254 $ 43,108 $ 148,163 Nine Months Ended September 30, 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 (1,277) (750) — — (1) (1,163) (11,754) (14,945) Recoveries 594 14 — 60 245 575 5,741 7,229 Provision (4,264) 2,177 (5,049) (86) (689) 200 6,328 (1,383) Balance at end of period $ 15,133 $ 44,392 $ 4,724 $ 1,633 $ 33,919 $ 5,254 $ 43,108 $ 148,163 Rollforward of the Reserve for Unfunded Commitments The following presents the activity in the Reserve for Unfunded Commitments for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, 2023 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 $ 6,354 $ 1,991 $ 9,789 $ — $ 19 $ 18,015 $ 31 $ 36,199 Provision 3,577 (129) (382) — (6) (1,475) (9) 1,576 Balance at end of period $ 9,931 $ 1,862 $ 9,407 $ — $ 13 $ 16,540 $ 22 $ 37,775 Nine Months Ended September 30, 2023 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 $ 7,811 $ 2,004 $ 7,470 $ — $ 30 $ 16,483 $ 37 $ 33,835 Provision 2,120 (142) 1,937 — (17) 57 (15) 3,940 Balance at end of period $ 9,931 $ 1,862 $ 9,407 $ — $ 13 $ 16,540 $ 22 $ 37,775 Three Months Ended September 30, 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 $ 7,640 $ 3,750 $ 6,084 $ — $ 32 $ 11,423 $ 29 $ 28,958 Provision 478 (1,397) 630 — (4) 1,473 3 1,183 Balance at end of period $ 8,118 $ 2,353 $ 6,714 $ — $ 28 $ 12,896 $ 32 $ 30,141 Nine Months Ended September 30, 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 Provision (497) 239 (2,249) — 13 2,350 (37) (181) Balance at end of period $ 8,118 $ 2,353 $ 6,714 $ — $ 28 $ 12,896 $ 32 $ 30,141 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 September 30, 2023 was as follows: Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans Amortized Amortized (dollars in thousands) 2023 2022 2021 2020 2019 Prior Cost Basis Cost Basis Total Commercial Lending Commercial and Industrial Risk rating: Pass $ 55,062 $ 294,558 $ 368,460 $ 35,603 $ 150,195 $ 147,197 $ 906,094 $ 3,427 $ 1,960,596 Special Mention 1 31,427 95 730 1,125 1,569 2,677 87 37,711 Substandard 217 532 245 847 1,839 1,034 13,947 — 18,661 Other (1) 13,438 12,424 5,575 2,856 2,226 1,513 46,442 — 84,474 Total Commercial and Industrial 68,718 338,941 374,375 40,036 155,385 151,313 969,160 3,514 2,101,442 Current period gross charge-offs $ 130 $ 69 $ 74 $ 28 $ 108 $ 2,163 $ — $ — $ 2,572 Commercial Real Estate Risk rating: Pass 288,996 881,117 665,048 329,663 559,287 1,508,430 60,613 — 4,293,154 Special Mention 2,322 7,643 41,304 543 6,935 13,039 12,483 — 84,269 Substandard — 5,110 2,004 170 — 2,599 300 — 10,183 Other (1) — — — — — 145 — — 145 Total Commercial Real Estate 291,318 893,870 708,356 330,376 566,222 1,524,213 73,396 — 4,387,751 Current period gross charge-offs — — — — — — — — — Construction Risk rating: Pass 129,160 209,227 335,433 59,164 64,168 28,916 3,826 — 829,894 Special Mention — — — — 197 669 — — 866 Other (1) 10,194 24,825 10,313 2,260 2,115 3,932 713 — 54,352 Total Construction 139,354 234,052 345,746 61,424 66,480 33,517 4,539 — 885,112 Current period gross charge-offs — — — — — — — — — Lease Financing Risk rating: Pass 83,255 88,367 19,869 35,583 34,828 69,043 — — 330,945 Special Mention — — 341 38 — — — — 379 Substandard 747 440 — — 4 — — — 1,191 Total Lease Financing 84,002 88,807 20,210 35,621 34,832 69,043 — — 332,515 Current period gross charge-offs — — — — — — — — — Total Commercial Lending $ 583,392 $ 1,555,670 $ 1,448,687 $ 467,457 $ 822,919 $ 1,778,086 $ 1,047,095 $ 3,514 $ 7,706,820 Current period gross charge-offs $ 130 $ 69 $ 74 $ 28 $ 108 $ 2,163 $ — $ — $ 2,572 (continued) Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in thousands) 2023 2022 2021 2020 2019 Prior Cost Basis Cost Basis Total Residential Lending Residential Mortgage FICO: 740 and greater $ 195,053 $ 527,072 $ 1,018,441 $ 536,878 $ 231,038 $ 1,012,924 $ — $ — $ 3,521,406 680 - 739 29,006 78,642 116,247 73,209 32,906 131,547 — — 461,557 620 - 679 2,847 11,153 15,830 10,678 5,705 36,289 — — 82,502 550 - 619 269 3,343 4,037 2,458 249 11,724 — — 22,080 Less than 550 — 196 2,362 1,573 50 5,373 — — 9,554 No Score (3) 5,589 19,402 11,729 6,343 9,757 53,515 — — 106,335 Other (2) 10,518 17,079 17,682 12,840 8,733 26,171 7,467 — 100,490 Total Residential Mortgage 243,282 656,887 1,186,328 643,979 288,438 1,277,543 7,467 — 4,303,924 Current period gross charge-offs $ — $ — $ — $ — $ — $ 122 $ — $ — $ 122 Home Equity Line FICO: 740 and greater — — — — — — 961,974 1,503 963,477 680 - 739 — — — — — — 148,629 2,382 151,011 620 - 679 — — — — — — 34,333 1,326 35,659 550 - 619 — — — — — — 9,099 948 10,047 Less than 550 — — — — — — 5,257 264 5,521 No Score (3) — — — — — — 1,673 — 1,673 Total Home Equity Line — — — — — — 1,160,965 6,423 1,167,388 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ 254 $ 18 $ 272 Total Residential Lending $ 243,282 $ 656,887 $ 1,186,328 $ 643,979 $ 288,438 $ 1,277,543 $ 1,168,432 $ 6,423 $ 5,471,312 Current period gross charge-offs $ — $ — $ — $ — $ — $ 122 $ 254 $ 18 $ 394 Consumer Lending FICO: 740 and greater 85,839 139,753 84,741 39,390 27,790 13,589 116,342 153 507,597 680 - 739 60,184 79,628 43,948 20,531 16,192 8,577 74,428 416 303,904 620 - 679 21,797 32,632 18,094 8,650 9,214 6,191 33,543 892 131,013 550 - 619 3,745 10,422 7,898 4,953 5,597 4,069 12,456 684 49,824 Less than 550 774 5,629 4,519 3,175 3,048 2,459 4,567 560 24,731 No Score (3) 1,455 297 — — 5 13 41,852 150 43,772 Other (2) — 1,188 1,007 340 1,086 1 89,740 — 93,362 Total Consumer Lending $ 173,794 $ 269,549 $ 160,207 $ 77,039 $ 62,932 $ 34,899 $ 372,928 $ 2,855 $ 1,154,203 Current period gross charge-offs $ 152 $ 1,710 $ 1,723 $ 880 $ 1,500 $ 1,995 $ 4,541 $ 462 $ 12,963 Total Loans and Leases $ 1,000,468 $ 2,482,106 $ 2,795,222 $ 1,188,475 $ 1,174,289 $ 3,090,528 $ 2,588,455 $ 12,792 $ 14,332,335 Current period gross charge-offs $ 282 $ 1,779 $ 1,797 $ 908 $ 1,608 $ 4,280 $ 4,795 $ 480 $ 15,929 (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, 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 $ 359,881 $ 422,567 $ 54,656 $ 170,222 $ 51,476 $ 137,257 $ 894,384 $ 15,715 $ 2,106,158 Special Mention 2,059 240 1,371 2,643 184 1,431 22,897 378 31,203 Substandard 625 289 1,117 1,092 668 885 14,733 65 19,474 Other (1) 17,679 7,721 4,329 3,965 1,881 1,167 42,320 — 79,062 Total Commercial and Industrial 380,244 430,817 61,473 177,922 54,209 140,740 974,334 16,158 2,235,897 Commercial Real Estate Risk rating: Pass 889,583 695,882 319,838 565,587 395,474 1,173,163 48,081 — 4,087,608 Special Mention 170 — 555 14,878 512 11,398 675 — 28,188 Substandard — — 173 — 1,704 14,485 — — 16,362 Other (1) — — — — — 151 — — 151 Total Commercial Real Estate 889,753 695,882 320,566 580,465 397,690 1,199,197 48,756 — 4,132,309 Construction Risk rating: Pass 124,464 261,536 96,423 97,000 88,973 84,704 25,957 — 779,057 Special Mention — — — 221 — — — — 221 Substandard — — — — 21 490 — — 511 Other (1) 29,694 21,339 4,686 2,201 3,784 2,196 954 — 64,854 Total Construction 154,158 282,875 101,109 99,422 92,778 87,390 26,911 — 844,643 Lease Financing Risk rating: Pass 113,563 24,052 43,497 37,502 6,004 67,687 — — 292,305 Special Mention — 411 2,498 1,299 — — — — 4,208 Substandard — — 197 12 11 1,357 — — 1,577 Total Lease Financing 113,563 24,463 46,192 38,813 6,015 69,044 — — 298,090 Total Commercial Lending $ 1,537,718 $ 1,434,037 $ 529,340 $ 896,622 $ 550,692 $ 1,496,371 $ 1,050,001 $ 16,158 $ 7,510,939 (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 $ 557,636 $ 1,064,444 $ 560,463 $ 245,241 $ 165,258 $ 920,100 $ — $ — $ 3,513,142 680 - 739 73,929 112,672 82,416 40,355 22,126 130,508 — — 462,006 620 - 679 12,320 13,804 9,881 3,649 3,054 35,441 — — 78,149 550 - 619 2,455 2,246 1,791 263 601 6,955 — — 14,311 Less than 550 — 1,321 367 — 966 5,304 — — 7,958 No Score (3) 22,289 14,671 6,820 10,599 15,921 47,245 — — 117,545 Other (2) 18,970 18,211 15,287 9,201 9,124 29,128 9,202 554 109,677 Total Residential Mortgage 687,599 1,227,369 677,025 309,308 217,050 1,174,681 9,202 554 4,302,788 Home Equity Line FICO: 740 and greater — — — — — — 817,123 2,059 819,182 680 - 739 — — — — — — 171,117 2,714 173,831 620 - 679 — — — — — — 45,368 2,100 47,468 550 - 619 — — — — — — 7,485 1,029 8,514 Less than 550 — — — — — — 1,151 481 1,632 No Score (3) — — — — — — 4,724 — 4,724 Total Home Equity Line — — — — — — 1,046,968 8,383 1,055,351 Total Residential Lending 687,599 1,227,369 677,025 309,308 217,050 1,174,681 1,056,170 8,937 5,358,139 Consumer Lending FICO: 740 and greater 200,887 111,047 53,534 43,912 24,951 8,432 125,126 185 568,074 680 - 739 99,787 67,140 37,260 31,751 15,874 7,665 72,101 514 332,092 620 - 679 25,949 29,587 14,226 16,872 9,672 6,488 31,854 937 135,585 550 - 619 3,017 5,475 5,226 8,056 5,396 3,924 11,269 854 43,217 Less than 550 656 1,351 2,286 3,779 1,869 1,593 3,541 443 15,518 No Score (3) 3,205 258 — 51 24 29 38,805 227 42,599 Other (2) 1,615 4,082 353 1,368 — — 78,430 1 85,849 Total Consumer Lending 335,116 218,940 112,885 105,789 57,786 28,131 361,126 3,161 1,222,934 Total Loans and Leases $ 2,560,433 $ 2,880,346 $ 1,319,250 $ 1,311,719 $ 825,528 $ 2,699,183 $ 2,467,297 $ 28,256 $ 14,092,012 (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 September 30, 2023 and December 31, 2022. 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 September 30, 2023 and December 31, 2022, the aging analysis of the amortized cost basis of the Company’s past due loans and leases was as follows: September 30, 2023 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 $ 3,989 $ 673 $ 1,277 $ 5,939 $ 2,095,503 $ 2,101,442 $ 289 Commercial real estate — 300 170 470 4,387,281 4,387,751 170 Construction — — — — 885,112 885,112 — Lease financing — — — — 332,515 332,515 — Residential mortgage 3,239 — 6,575 9,814 4,294,110 4,303,924 1,430 Home equity line 6,741 938 3,320 10,999 1,156,389 1,167,388 — Consumer 20,327 3,967 1,681 25,975 1,128,228 1,154,203 1,681 Total $ 34,296 $ 5,878 $ 13,023 $ 53,197 $ 14,279,138 $ 14,332,335 $ 3,570 December 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 $ 2,682 $ 769 $ 1,441 $ 4,892 $ 2,231,005 $ 2,235,897 $ 291 Commercial real estate 4,505 — 727 5,232 4,127,077 4,132,309 — Construction 109 — — 109 844,534 844,643 — Lease financing — — — — 298,090 298,090 — Residential mortgage 3,681 1,983 2,572 8,236 4,294,552 4,302,788 58 Home equity line 5,161 1,381 2,072 8,614 1,046,737 1,055,351 — Consumer 29,927 6,801 2,886 39,614 1,183,320 1,222,934 2,885 Total $ 46,065 $ 10,934 $ 9,698 $ 66,697 $ 14,025,315 $ 14,092,012 $ 3,234 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 September 30, 2023 and December 31, 2022 and the amortized cost basis of loans and leases on nonaccrual status with no ACL as of September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 Nonaccrual Loans and Leases With No Nonaccrual Allowance Loans (dollars in thousands) for Credit Losses and Leases Commercial and industrial $ 503 $ 988 Residential mortgage 2,674 7,435 Home equity line 596 6,200 Total Nonaccrual Loans and Leases $ 3,773 $ 14,623 December 31, 2022 Nonaccrual Loans and Leases With No Nonaccrual Allowance Loans (dollars in thousands) for Credit Losses and Leases Commercial and industrial $ 665 $ 1,215 Commercial real estate 727 727 Residential mortgage 1,560 6,166 Home equity line 596 3,797 Total Nonaccrual Loans and Leases $ 3,548 $ 11,905 For the three and nine months ended September 30, 2023, the Company recognized interest income of $0.1 million and $0.4 million, respectively, on nonaccrual loans and leases, and for the three and nine months ended September 30, 2022, the Company recognized interest income of $0.1 million and $0.2 million, respectively, on nonaccrual loans and leases. Furthermore, for the three and nine months ended September 30, 2023, the amount of accrued interest receivables written off by reversing interest income was $0.2 million and $0.7 million, respectively, and for the three and nine months ended September 30, 2022 the amount of accrued interest receivables written off by reversing interest income was $0.3 million and $0.7 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 September 30, 2023 and December 31, 2022, the amortized cost basis of collateral-dependent loans were $7.5 million and $8.2 million, respectively. As of both September 30, 2023 and December 31, 2022, these loans were primarily collateralized by residential real estate property and the fair value of collateral on substantially all collateral-dependent loans were significantly in excess of their amortized cost basis. Loan Modifications to Borrowers Experiencing Financial Difficulty The Company adopted the provisions of Accounting Standards Update (“ASU”) No. 2022-02, Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures |
Mortgage Servicing Rights
Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2023 | |
Other Assets. | |
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 $1.4 billion as of both September 30, 2023 and December 31, 2022. Servicing fees include contractually specified fees, late charges, and ancillary fees and were $0.8 million and $0.9 million for the three months ended September 30, 2023 and 2022, respectively, and $2.6 million and $2.9 million for the nine months ended September 30, 2023 and 2022, respectively. Amortization of mortgage servicing rights (“MSRs”) was $0.3 million for both three months ended September 30, 2023 and 2022, and $0.8 million and $1.6 million for the nine months ended September 30, 2023 and 2022, respectively. The estimated future amortization expenses for MSRs over the next five years are as follows: Estimated (dollars in thousands) Amortization Under one year $ 852 One to two years 757 Two to three years 671 Three to four years 592 Four to five years 523 The details of the Company’s MSRs are presented below: September 30, December 31, (dollars in thousands) 2023 2022 Gross carrying amount $ 69,406 $ 69,273 Less: accumulated amortization 63,551 62,711 Net carrying value $ 5,855 $ 6,562 The following table presents changes in amortized MSRs for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2023 2022 2023 2022 Balance at beginning of period $ 6,072 $ 7,152 $ 6,562 $ 8,302 Originations 65 47 133 151 Amortization (282) (333) (840) (1,587) Balance at end of period $ 5,855 $ 6,866 $ 5,855 $ 6,866 Fair value of amortized MSRs at beginning of period $ 14,557 $ 14,969 $ 15,193 $ 12,243 Fair value of amortized MSRs at end of period $ 14,520 $ 14,945 $ 14,520 $ 14,945 MSRs are evaluated for impairment if events and circumstances indicate a possible impairment. No impairment of MSRs was recorded for the three and nine months ended September 30, 2023 and 2022. The quantitative assumptions used in determining the lower of cost or fair value of the Company’s MSRs as of September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 December 31, 2022 Weighted Weighted Range Average Range Average Conditional prepayment rate 6.89 % - 11.27 % 7.02 % 7.02 % - 13.58 % 7.11 % Life in years (of the MSR) 4.26 - 7.25 7.11 3.35 - 7.37 7.20 Weighted-average coupon rate 3.57 % - 5.84 % 3.70 % 3.55 % - 6.24 % 3.68 % Discount rate 10.36 % - 10.55 % 10.52 % 10.41 % - 10.54 % 10.51 % The sensitivities surrounding MSRs are expected to have an immaterial impact on fair value. |
Transfers of Financial Assets
Transfers of Financial Assets | 9 Months Ended |
Sep. 30, 2023 | |
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 and/or securities 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 September 30, 2023 and December 31, 2022 were as follows: (dollars in thousands) September 30, 2023 December 31, 2022 Public deposits $ 3,511,412 $ 2,977,693 Federal Home Loan Bank 4,817,865 3,451,070 Federal Reserve Bank 4,801,873 1,704,803 ACH transactions 135,512 133,173 Interest rate swaps 585 31,091 Total $ 13,267,247 $ 8,297,830 As the Company did not enter into reverse repurchase agreements or repurchase agreements, no collateral was accepted as of September 30, 2023 and December 31, 2022. In addition, no debt was extinguished by in-substance defeasance. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2023 | |
Deposits | |
Deposits | 7. Deposits As of September 30, 2023 and December 31, 2022, deposits were categorized as interest-bearing or noninterest-bearing as follows: (dollars in thousands) September 30, 2023 December 31, 2022 U.S.: Interest-bearing $ 12,667,072 $ 11,936,775 Noninterest-bearing 6,931,032 7,978,046 Foreign: Interest-bearing 945,421 887,608 Noninterest-bearing 967,964 886,600 Total deposits $ 21,511,489 $ 21,689,029 The following table presents the maturity distribution of time certificates of deposit as of September 30, 2023: Under $250,000 (dollars in thousands) $250,000 or More Total Three months or less $ 202,932 $ 1,093,989 $ 1,296,921 Over three through six months 268,176 540,418 808,594 Over six through twelve months 785,036 496,157 1,281,193 One to two years 114,912 57,576 172,488 Two to three years 41,313 7,422 48,735 Three to four years 26,248 5,529 31,777 Four to five years 17,012 3,452 20,464 Thereafter 313 646 959 Total $ 1,455,942 $ 2,205,189 $ 3,661,131 Time certificates of deposit in denominations of $250,000 or more, in the aggregate, were $2.2 billion and $1.5 billion as of September 30, 2023 and December 31, 2022, respectively. Overdrawn deposit accounts are classified as loans and totaled $2.0 million and $2.5 million as of September 30, 2023 and December 31, 2022, respectively. |
Short-Term Borrowings
Short-Term Borrowings | 9 Months Ended |
Sep. 30, 2023 | |
Short-Term Borrowings | |
Short-Term Borrowings | 8. Short-Term Borrowings At September 30, 2023 and December 31, 2022, short-term borrowings were comprised of the following: (dollars in thousands) September 30, 2023 December 31, 2022 Federal funds purchased $ — $ 75,000 Short-term FHLB fixed-rate advances (1) 500,000 — Total short-term borrowings $ 500,000 $ 75,000 (1) Interest is payable monthly. As of September 30, 2023, the Company’s short-term borrowings consisted of $500.0 million in short-term FHLB fixed-rate advances with a weighted average interest rate of 4.71% and maturity dates in September 2024. The FHLB fixed-rate advances require monthly interest-only payments with the principal amount due on the maturity date. As of December 31, 2022, the Company’s short-term borrowings consisted of $75.0 million in federal funds purchased with a 4.35% annual interest rate that matured in January 2023. As of September 30, 2023 and December 31, 2022, the Company had a remaining line of credit of $2.8 billion and $2.5 billion available from the FHLB, respectively. The FHLB borrowing capacity was secured by commercial real estate and residential real estate loan collateral as of September 30, 2023 and residential real estate loan collateral as of December 31, 2022. As of September 30, 2023 and December 31, 2022, respectively, the Company had an undrawn line of credit of $3.8 billion and $1.2 billion available from the FRB. The borrowing capacity with the FRB was secured by consumer, commercial and industrial, commercial real estate, residential real estate loans and pledged securities as of September 30, 2023 and consumer, commercial and industrial, commercial real estate and residential real estate loans as of December 31, 2022. See “Note 6. Transfers of Financial Assets” for more information. Nine Months Ended September 30, (dollars in thousands) 2023 2022 Federal funds purchased: Weighted-average interest rate at September 30, — % — % Highest month-end balance $ 150,000 $ — Average outstanding balance $ 23,059 $ 55 Weighted-average interest rate paid 4.45 % 1.67 % Short-term FHLB repo advance: Weighted-average interest rate at September 30, — % — % Highest month-end balance $ 400,000 $ — Average outstanding balance $ 156,319 $ — Weighted-average interest rate paid 5.25 % — % Short-term FHLB fixed-rate advances: Weighted-average interest rate at September 30, 4.71 % — % Highest month-end balance $ 500,000 $ — Average outstanding balance $ 20,147 $ — Weighted-average interest rate paid 4.34 % — % |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2023 | |
AOCI Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Loss | 9. 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 and nine months ended September 30, 2023 and 2022 are presented below: Income Tax Pre-tax Benefit Net of (dollars in Amount (Expense) Tax Accumulated other comprehensive loss at June 30, 2023 $ (835,647) $ 222,911 $ (612,736) Three months ended September 30, 2023 Investment securities: Unrealized net losses arising during the period (61,874) 16,505 (45,369) Reclassification of net losses to net income: Amortization of unrealized holding losses on held-to-maturity securities 11,434 (3,050) 8,384 Net change in investment securities (50,440) 13,455 (36,985) Cash flow derivative hedges: Unrealized net losses arising during the period (373) 100 (273) Reclassification of net losses included in net income 1,723 (460) 1,263 Net change in cash flow derivative hedges 1,350 (360) 990 Other comprehensive loss (49,090) 13,095 (35,995) Accumulated other comprehensive loss at September 30, 2023 $ (884,737) $ 236,006 $ (648,731) Income Tax Pre-tax Benefit Net of (dollars in thousands) Amount (Expense) Tax Accumulated other comprehensive loss at December 31, 2022 $ (871,813) $ 232,559 $ (639,254) Nine months ended September 30, 2023 Investment securities: Unrealized net losses arising during the period (50,861) 13,567 (37,294) Reclassification of net losses to net income: Amortization of unrealized holding losses on held-to-maturity securities 36,206 (9,658) 26,548 Net change in investment securities (14,655) 3,909 (10,746) Cash flow derivative hedges: Unrealized net losses arising during the period (2,868) 765 (2,103) Reclassification of net losses included in net income 4,599 (1,227) 3,372 Net change in cash flow derivative hedges 1,731 (462) 1,269 Other comprehensive loss (12,924) 3,447 (9,477) Accumulated other comprehensive loss at September 30, 2023 $ (884,737) $ 236,006 $ (648,731) Income Tax Pre-tax Benefit Net of (dollars in thousands) Amount (Expense) Tax Accumulated other comprehensive loss at June 30, 2022 $ (779,352) $ 207,895 $ (571,457) Three months ended September 30, 2022 Investment securities: Unrealized net losses arising during the period (130,000) 34,677 (95,323) Reclassification of net losses to net income: Amortization of unrealized holding losses on held-to-maturity securities 15,217 (4,058) 11,159 Net change in investment securities (114,783) 30,619 (84,164) Cash flow derivative hedges: Unrealized net losses arising during the period (4,372) 1,165 (3,207) Reclassification of net losses included in net income 98 (26) 72 Net change in cash flow derivative hedges (4,274) 1,139 (3,135) Other comprehensive loss (119,057) 31,758 (87,299) Accumulated other comprehensive loss at September 30, 2022 $ (898,409) $ 239,653 $ (658,756) 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) Nine months ended September 30, 2022 Investment securities: Unrealized net losses arising during the period (759,437) 202,580 (556,857) Reclassification of net losses to net income: Amortization of unrealized holding losses on held-to-maturity securities 35,146 (9,375) 25,771 Net change in investment securities (724,291) 193,205 (531,086) Cash flow derivative hedges: Unrealized net losses arising during the period (7,611) 2,030 (5,581) Reclassification of net gains included in net income (540) 144 (396) Net change in cash flow derivative hedges (8,151) 2,174 (5,977) Other comprehensive loss (732,442) 195,379 (537,063) Accumulated other comprehensive loss at September 30, 2022 $ (898,409) $ 239,653 $ (658,756) The following table summarizes changes in accumulated other comprehensive loss, net of tax, for the periods indicated: Pensions Accumulated and Available-for-Sale Held-to-Maturity Cash Flow Other Other Investment Investment Derivative Comprehensive (dollars in thousands) Benefits Securities Securities Hedges Loss Three Months Ended September 30, 2023 Balance at beginning of period $ (5,431) $ (284,100) $ (318,782) $ (4,423) $ (612,736) Other comprehensive (loss) income — (45,369) 8,384 990 (35,995) Balance at end of period $ (5,431) $ (329,469) $ (310,398) $ (3,433) $ (648,731) Nine Months Ended September 30, 2023 Balance at beginning of period $ (5,431) $ (292,175) $ (336,946) $ (4,702) $ (639,254) Other comprehensive (loss) income — (37,294) 26,548 1,269 (9,477) Balance at end of period $ (5,431) $ (329,469) $ (310,398) $ (3,433) $ (648,731) Three Months Ended September 30, 2022 Balance at beginning of period $ (24,390) $ (220,021) $ (324,204) $ (2,842) $ (571,457) Unrealized net losses related to the transfer of securities from available-for-sale to held-to-maturity — 33,603 (33,603) — — Other comprehensive (loss) income — (95,323) 11,159 (3,135) (87,299) Balance at end of period $ (24,390) $ (281,741) $ (346,648) $ (5,977) $ (658,756) Nine Months Ended September 30, 2022 Balance at beginning of period $ (24,390) $ (97,303) $ — $ — $ (121,693) Unrealized net losses related to the transfer of securities from available-for-sale to held-to-maturity — 372,419 (372,419) — — Other comprehensive (loss) income — (556,857) 25,771 (5,977) (537,063) Balance at end of period $ (24,390) $ (281,741) $ (346,648) $ (5,977) $ (658,756) |
Regulatory Capital Requirements
Regulatory Capital Requirements | 9 Months Ended |
Sep. 30, 2023 | |
Regulatory Capital Requirements | |
Regulatory Capital Requirements | 10. 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 September 30, 2023 and December 31, 2022: First Hawaiian Minimum Well- First Hawaiian, Inc. Bank Capital Capitalized (dollars in thousands) Amount Ratio Amount Ratio Ratio (1) Ratio (1) September 30, 2023: Common equity tier 1 capital to risk-weighted assets $ 2,004,248 12.21 % $ 1,990,261 12.12 % 4.50 % 6.50 % Tier 1 capital to risk-weighted assets 2,004,248 12.21 % 1,990,261 12.12 % 6.00 % 8.00 % Total capital to risk-weighted assets 2,196,818 13.38 % 2,182,831 13.30 % 8.00 % 10.00 % Tier 1 capital to average assets (leverage ratio) 2,004,248 8.45 % 1,990,261 8.39 % 4.00 % 5.00 % December 31, 2022: Common equity tier 1 capital to risk-weighted assets $ 1,912,767 11.82 % $ 1,895,693 11.71 % 4.50 % 6.50 % Tier 1 capital to risk-weighted assets 1,912,767 11.82 % 1,895,693 11.71 % 6.00 % 8.00 % Total capital to risk-weighted assets 2,090,502 12.92 % 2,073,428 12.81 % 8.00 % 10.00 % Tier 1 capital to average assets (leverage ratio) 1,912,767 8.11 % 1,895,693 8.04 % 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 September 30, 2023, 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 September 30, 2023, to change the capital adequacy category of the Company or the Bank. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 11. 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 and collars that are designated as either a fair value hedge or a cash flow 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 the notional amounts and fair values of derivatives held by the Company as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 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 $ 9,829 $ (3,731) $ 267,500 $ 7,276 $ (6,840) Interest rate collars 200,000 — (951) 200,000 491 (63) Derivatives not designated as hedging instruments: Interest rate swaps 2,811,284 3,073 (1,198) 2,849,776 3,178 (42,365) Visa derivative 102,587 — (1,200) 121,013 — (851) Foreign exchange contracts 191 — — 210 — — (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 September 30, 2023 and December 31, 2022, the amount of initial margin cash collateral posted by the Company was $0.6 million and $1.2 million, respectively. As of September 30, 2023 and December 31, 2022, the variation margin was $1.9 million and $39.2 million, respectively. As of September 30, 2023, the Company pledged $0.6 million in cash and received $49.1 million in cash as collateral for interest rate swaps. As of December 31, 2022, the Company pledged $29.9 million in financial instruments and $1.2 million in cash and received $48.1 million in cash as collateral for interest rate swaps. As of September 30, 2023 and December 31, 2022, 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. As of September 30, 2023 and December 31, 2022, the Company received $68.5 million and nil, respectively, in securities collateral for interest rate swaps, which is held in a custodial account and is not recorded on the Company’s unaudited interim consolidated balance sheets. 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 September 30, 2023 and December 31, 2022, 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 September 30, 2023 and December 31, 2022, the interest rate swap had a positive fair value of $9.8 million and $7.3 million, respectively. The swap matures in 2041. The Company received a USD Federal Funds floating rate and paid 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 and nine months ended September 30, 2023 and 2022: Gains (losses) recognized in Three Months Ended Nine Months Ended the consolidated statements September 30, September 30, (dollars in of income line item 2023 2022 2023 2022 Gains (losses) on fair value hedging relationships recognized in interest income: Recognized on interest rate swap Loans and lease financing $ 2,159 $ 745 $ 2,553 $ 6,888 Recognized on hedged item Loans and lease financing (2,256) (839) (2,833) (7,185) As of September 30, 2023 and December 31, 2022, 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 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Line item in the consolidated balance sheets in which the hedged item is included Loans and leases $ 57,627 $ 60,189 $ (9,873) $ (7,311) 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 provided an initial benefit to interest income as the Company received the higher fixed rate, which persisted while the floating rate remained below the swap’s fixed rate. By hedging with interest rate swaps, the Company minimized the adverse impact on interest income previously associated with a low interest rate environment on floating-rate loans. As of September 30, 2023 and December 31, 2022, the Company carried two interest rate swaps with notional amounts totaling $200.0 million, with a negative fair value totaling $3.7 million and $6.8 million, respectively. The swaps mature in 2024. The Company received fixed rates ranging from 1.70% to 2.08% and paid 1-month BSBY. The Company also utilized interest rate collars to manage interest rate risk and protect against downside risk in yields associated with interest payments received on a pool of floating-rate assets. The floating-rate index of the collars (Secured Overnight Financing Rate, or “SOFR”) corresponds to the floating-rate nature of the interest receipts being hedged (based on SOFR). Interest rate collars involve the payments of variable-rate amounts if the collar index exceeds the cap strike rate on the contract and receipts of variable-rate amounts if the collar index falls below the floor strike rate on the contract. No payments are required if the collar index falls between the cap and floor rates. By hedging with interest rate collars, the Company mitigates the adverse impact on interest income associated with possible future decreases in interest rates. As of September 30, 2023 and December 31, 2022, the Company carried two interest rate collars with notional amounts totaling $200.0 million. As of September 30, 2023, these interest rate collars had a negative fair value of $1.0 million. As of December 31, 2022, these interest rate collars had a positive fair value of $0.5 million and a negative fair value of $0.1 million. The collars mature in 2025 and 2027. The interest rate collars had a floor strike rate of 2.00% and cap strike rates ranging from 5.31% to 5.64%. The interest rate swaps and collars 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 and collars 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 following table summarizes the effect of cash flow hedging relationships for the three and nine months ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended September 30, September 30, (dollars in 2023 2022 2023 2022 Pretax net losses recognized in other comprehensive income on cash flow derivative hedges $ (373) $ (4,372) $ (2,868) $ (7,611) Pretax net losses (gains) reclassified from accumulated other comprehensive income to interest income from loans and lease financing 1,723 98 4,599 (540) The estimated net amount to be reclassified within the next 12 months out of accumulated other comprehensive income (loss) into earnings is $3.7 million as a decrease to interest income from loans and lease financing. As of September 30, 2023, the maximum length of time over which forecasted transactions are hedged is approximately four 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 and nine months ended September 30, 2023 and 2022: Net gains (losses) recognized Three Months Ended Nine Months Ended in the consolidated statements September 30, September 30, (dollars in of income line item 2023 2022 2023 2022 Derivatives Not Designated As Hedging Instruments: Interest rate swaps Other noninterest income $ 26 $ — $ (532) $ — Visa derivative Other noninterest income $ (1,350) $ 273 (5,129) (1,084) As of September 30, 2023, 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 $3.1 million and a negative fair value of $1.2 million. The Company received floating rates ranging from 5.82% to 8.33% and paid fixed rates ranging from 2.39% to 5.86%. The swaps mature between October 2023 and June 2040. As of December 31, 2022, 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 $3.2 million and a negative fair value of $42.4 million. The Company received floating rates ranging from 4.62% to 7.12% and paid fixed rates ranging from 2.39% to 6.13%. These swaps resulted in net interest expense of nil during both the three and nine months ended September 30, 2023 and 2022. 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 nil and $0.4 million for the three months ended September 30, 2023 and 2022, respectively, and $1.5 million and $1.8 million for the nine months ended September 30, 2023 and 2022, 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 through 2023, 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 1.5875. 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 $1.2 million and $0.9 million was included in the unaudited interim consolidated balance sheets at September 30, 2023 and December 31, 2022, respectively, to provide for the fair value of this liability. There were no sales of these shares prior to 2016. See “Note 16. 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 nil were recognized during both the three months ended September 30, 2023 and 2022, and nil and $0.1 million were recognized during the nine months ended September 30, 2023 and 2022, respectively. Credit-Risk Related Contingent Features Certain of the Company’s 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. The aggregate fair value of all derivative instruments with such credit-risk related contingent features that are in a net liability position was nil at both September 30, 2023 and December 31, 2022, for which the Company posted nil in collateral in the normal course of business. If the Company’s credit rating had been downgraded as of September 30, 2023 and December 31, 2022, the Company may have been required to settle the contracts in an amount equal to their fair value. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingent Liabilities | |
Commitments and Contingent Liabilities | 12. 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 $65.5 million and $90.5 million at September 30, 2023 and December 31, 2022, 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 $8.2 million and $8.1 million at September 30, 2023 and December 31, 2022, respectively. 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 September 30, 2023 have maturities ranging from October 2023 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 September 30, 2023 and December 31, 2022 were as follows: September 30, December 31, (dollars in 2023 2022 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit $ 6,722,595 $ 6,760,395 Standby letters of credit 238,704 244,275 Commercial letters of credit 5,410 7,299 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 11. 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. 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 | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contracts with Customers | |
Revenue from Contracts with Customers | 13. Revenue from Contracts with Customers Revenue Recognition In accordance with Topic 606, Revenue from Contracts with Customers Disaggregation of Revenue 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 September 30, 2023 Treasury Retail Commercial and (dollars in Banking Banking Other Total Net interest income (1) $ 119,070 $ 45,913 $ (7,835) $ 157,148 Service charges on deposit accounts 6,724 714 86 7,524 Credit and debit card fees — 13,990 1,152 15,142 Other service charges and fees 6,461 425 529 7,415 Trust and investment services income 9,742 — — 9,742 Other 86 2,599 (48) 2,637 Not in scope of Topic 606 (1) 1,821 1,130 686 3,637 Total noninterest income 24,834 18,858 2,405 46,097 Total revenue $ 143,904 $ 64,771 $ (5,430) $ 203,245 Nine Months Ended September 30, 2023 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Net interest income (1) $ 332,227 $ 128,348 $ 23,759 $ 484,334 Service charges on deposit accounts 19,723 2,002 276 22,001 Credit and debit card fees — 42,044 3,687 45,731 Other service charges and fees 18,681 1,268 1,592 21,541 Trust and investment services income 28,804 — — 28,804 Other 413 6,449 2,037 8,899 Not in scope of Topic 606 (1) 5,277 4,069 6,146 15,492 Total noninterest income 72,898 55,832 13,738 142,468 Total revenue $ 405,125 $ 184,180 $ 37,497 $ 626,802 (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, derivative financial instruments and bank-owned life insurance. Three Months Ended September 30, 2022 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Net interest income (1) $ 117,060 $ 39,586 $ 6,090 $ 162,736 Service charges on deposit accounts 6,421 621 47 7,089 Credit and debit card fees — 15,831 1,312 17,143 Other service charges and fees 6,081 509 472 7,062 Trust and investment services income 9,800 — — 9,800 Other 93 1,250 304 1,647 Not in scope of Topic 606 (1) 2,085 1,637 (606) 3,116 Total noninterest income 24,480 19,848 1,529 45,857 Total revenue $ 141,540 $ 59,434 $ 7,619 $ 208,593 Nine Months Ended September 30, 2022 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Net interest income (1) $ 318,476 $ 111,500 $ 11,779 $ 441,755 Service charges on deposit accounts 19,155 1,380 898 21,433 Credit and debit card fees — 44,099 3,734 47,833 Other service charges and fees 18,950 1,708 1,327 21,985 Trust and investment services income 27,442 — — 27,442 Other 396 6,708 849 7,953 Not in scope of Topic 606 (1) 4,337 5,023 (4,632) 4,728 Total noninterest income 70,280 58,918 2,176 131,374 Total revenue $ 388,756 $ 170,418 $ 13,955 $ 573,129 (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, derivative financial instruments and bank-owned life insurance. For the three and nine months ended September 30, 2023 and 2022, 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. The Company received signing bonuses from two vendors in prior years, which are being amortized over the term of the respective contracts. As of September 30, 2023 and December 31, 2022, the Company had contract liabilities of $2.1 million and $2.7 million, respectively, which it expects to recognize over the remaining term of the respective contracts with the vendors. For the three and nine months ended September 30, 2023, the Company’s recognized revenues increased and contract liabilities decreased by approximately $0.2 million and $0.6 million due to the passage of time. For the three and nine months ended September 30, 2022, the Company’s recognized revenues increased and contract liabilities decreased by approximately $0.2 million and $0.7 million, respectively, 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 September 30, 2023 and December 31, 2022, there were no material receivables from contracts with customers or contract assets recorded on the Company’s unaudited interim consolidated balance sheets. Other Except for the contract liabilities noted above, the Company did not have any significant performance obligations as of September 30, 2023 and December 31, 2022. 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 | 9 Months Ended |
Sep. 30, 2023 | |
Earnings per Share | |
Earnings per Share | 14. Earnings per Share For the three and nine months ended September 30, 2023, the Company made no adjustments to net income for the purpose of computing earnings per share and there were 611,000 and 609,000 antidilutive securities, respectively. For the three and nine months ended September 30, 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 and nine months ended September 30, 2023 and 2022, the computations of basic and diluted earnings per share were as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in 2023 2022 2023 2022 Numerator: Net income $ 58,221 $ 69,018 $ 187,481 $ 186,097 Denominator: Basic: weighted-average shares outstanding 127,609,860 127,377,713 127,552,255 127,534,746 Add: weighted-average equity-based awards 326,580 418,904 345,574 461,926 Diluted: weighted-average shares outstanding 127,936,440 127,796,617 127,897,829 127,996,672 Basic earnings per share $ 0.46 $ 0.54 $ 1.47 $ 1.46 Diluted earnings per share $ 0.46 $ 0.54 $ 1.47 $ 1.45 |
Noninterest Income and Noninter
Noninterest Income and Noninterest Expense | 9 Months Ended |
Sep. 30, 2023 | |
Benefit Plans | |
Noninterest Income and Noninterest Expense | 15. 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 and nine months ended September 30, 2023 and 2022: Income line item where recognized in Pension Benefits Other Benefits (dollars in the consolidated statements of income 2023 2022 2023 2022 Three Months Ended September 30, Service cost Salaries and employee benefits $ — $ — $ 136 $ 197 Interest cost Other noninterest expense 2,053 1,523 171 118 Expected return on plan assets Other noninterest expense (883) (783) — — Recognized net actuarial loss (gain) Other noninterest expense 719 1,269 (379) (101) Total net periodic benefit cost $ 1,889 $ 2,009 $ (72) $ 214 Nine Months Ended September 30, Service cost Salaries and employee benefits $ — $ — $ 430 $ 626 Interest cost Other noninterest expense 6,171 4,245 611 405 Expected return on plan assets Other noninterest expense (2,648) (2,348) — — Recognized net actuarial loss (gain) Other noninterest expense 2,157 3,806 (1,137) (303) Total net periodic benefit cost $ 5,680 $ 5,703 $ (96) $ 728 Leases The Company recognized operating lease income related to lease payments of $1.6 million and $1.5 million for the three months ended September 30, 2023 and 2022, respectively, and $4.7 million and $4.6 million for the nine months ended September 30, 2023 and 2022, respectively. In addition, the Company recognized $1.5 million and $1.7 million of lease income related to variable lease payments for three months ended September 30, 2023 and 2022, respectively, and $4.8 million and $4.9 million for the nine months ended September 30, 2023 and 2022, respectively. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value | |
Fair Value | 16. 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 September 30, 2023 and December 31, 2022, 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 through 2023, 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 1.5875. The Visa derivative of $1.2 million and $0.9 million was included in the unaudited interim consolidated balance sheets at September 30, 2023 and December 31, 2022, 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 September 30, 2023 and December 31, 2022 are summarized below: Fair Value Measurements as of September 30, 2023 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 $ — $ 114,159 $ — $ 114,159 Government-sponsored enterprises debt securities — 19,260 — 19,260 Mortgage-backed securities: Residential - Government agency (1) — 52,362 — 52,362 Residential - Government-sponsored enterprises (1) — 1,005,782 — 1,005,782 Commercial - Government agency — 211,897 — 211,897 Commercial - Government-sponsored enterprises — 84,920 — 84,920 Commercial - Non-agency — 21,602 — 21,602 Collateralized mortgage obligations: Government agency — 565,852 — 565,852 Government-sponsored enterprises — 400,748 — 400,748 Collateralized loan obligations — 246,122 — 246,122 Total available-for-sale securities — 2,722,704 — 2,722,704 Other assets (2) 1,287 12,902 — 14,189 Liabilities Other liabilities (3) — (5,880) (1,200) (7,080) Total $ 1,287 $ 2,729,726 $ (1,200) $ 2,729,813 (1) Backed by residential real estate. (2) Other assets classified as Level 1 include 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, 2022 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 $ — $ 150,982 $ — $ 150,982 Government-sponsored enterprises debt securities — 44,301 — 44,301 Mortgage-backed securities: Residential - Government agency (1) — 59,723 — 59,723 Residential - Government-sponsored enterprises (1) — 1,160,455 — 1,160,455 Commercial - Government agency — 237,853 — 237,853 Commercial - Government-sponsored enterprises — 119,573 — 119,573 Commercial - Non-agency — 21,471 — 21,471 Collateralized mortgage obligations: Government agency — 653,322 — 653,322 Government-sponsored enterprises — 462,132 — 462,132 Collateralized loan obligations — 241,321 — 241,321 Total available-for-sale securities — 3,151,133 — 3,151,133 Other assets (2) 5,376 10,945 — 16,321 Liabilities Other liabilities (3) — (49,268) (851) (50,119) Total $ 5,376 $ 3,112,810 $ (851) $ 3,117,335 (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 September 30, 2023 and December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows: Quantitative Information about Level 3 Fair Value Measurements at September 30, 2023 Significant (dollars in thousands) Fair value Valuation Technique Unobservable Input Range Visa derivative $ (1,200) Discounted Cash Flow Expected Conversion Rate - 1.5875 (1) 1.5289 - 1.5875 Expected Term - 3 months (2) 0 - 6 months Growth Rate - 17% (3) 7% - 24% Quantitative Information about Level 3 Fair Value Measurements at December 31, 2022 Significant (dollars in thousands) Fair value Valuation Technique Unobservable Input Range Visa derivative $ (851) Discounted Cash Flow Expected Conversion Rate - 1.5991 (1) 1.5514-1.5991 Expected Term - 3 months (2) 0 - 6 months 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 3 months was based on the median of 0 to 6 months. (3) The growth rate was based on the arithmetic average of analyst price targets. Changes in Fair Value Levels For the three and nine months ended September 30, 2023 and 2022, 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 and nine months ended September 30, 2023 and 2022 are summarized below: Visa Derivative (dollars in 2023 2022 Three Months Ended September 30, Balance as of July 1, $ (1,200) $ (3,786) Total net (losses) gains included in other noninterest income (1,350) 273 Settlements 1,350 1,154 Balance as of September 30, $ (1,200) $ (2,359) Total net (losses) gains included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of September 30, $ (1,350) $ 273 Nine Months Ended September 30, Balance as of January 1, $ (851) $ (5,530) Total net losses included in other noninterest income (5,129) (1,084) Settlements 4,780 4,255 Balance as of September 30, $ (1,200) $ (2,359) Total net losses included in net income attributable to the change in unrealized losses related to liabilities still held as of September 30, $ (5,129) $ (1,084) 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. September 30, 2023 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 $ 1,213,428 $ 246,028 $ 967,400 $ — $ 1,213,428 Investment securities held-to-maturity 4,104,114 — 3,433,029 — 3,433,029 Loans (1) 13,999,820 — — 13,166,377 13,166,377 Financial liabilities: Time deposits (2) $ 3,661,131 $ — $ 3,625,116 $ — $ 3,625,116 Short-term borrowings 500,000 — 495,306 — 495,306 December 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 $ 526,624 $ 297,502 $ 229,122 $ — $ 526,624 Investment securities held-to-maturity 4,320,639 — 3,814,822 — 3,814,822 Loans (1) 13,793,922 — — 13,138,787 13,138,787 Financial liabilities: Time deposits (2) $ 2,476,050 $ — $ 2,423,231 $ — $ 2,423,231 Short-term borrowings 75,000 — 74,991 — 74,991 (1) Excludes financing leases of $332.5 million at September 30, 2023 and $298.1 million at December 31, 2022. (2) Excludes deposit liabilities with no defined or contractual maturity of $17.9 billion as of September 30, 2023 and $19.2 billion as of December 31, 2022. Unfunded loan and lease commitments and letters of credit are not included in the tables above. As of both September 30, 2023 and December 31, 2022, the Company had $7.0 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 $52.3 million and $48.5 million at September 30, 2023 and December 31, 2022, 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 September 30, 2023 and December 31, 2022. Additionally, there were no nonrecurring fair value adjustments for both the three and nine months ended September 30, 2023 and 2022. |
Reportable Operating Segments
Reportable Operating Segments | 9 Months Ended |
Sep. 30, 2023 | |
Reportable Operating Segments | |
Reportable Operating Segments | 17. 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. 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 50 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 cross-border wires for business and personal reasons 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 Banking Banking Other Total Three Months Ended September 30, 2023 Net interest income (loss) $ 119,070 $ 45,913 $ (7,835) $ 157,148 Provision for credit losses (2,359) (3,565) (1,576) (7,500) Net interest income (loss) after provision for credit losses 116,711 42,348 (9,411) 149,648 Noninterest income 24,834 18,858 2,405 46,097 Noninterest expense (77,873) (24,976) (16,534) (119,383) Income (loss) before (provision) benefit for income taxes 63,672 36,230 (23,540) 76,362 (Provision) benefit for income taxes (15,209) (8,334) 5,402 (18,141) Net income (loss) $ 48,463 $ 27,896 $ (18,138) $ 58,221 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Nine Months Ended September 30, 2023 Net interest income $ 332,227 $ 128,348 $ 23,759 $ 484,334 Provision for credit losses (6,913) (10,447) (3,940) (21,300) Net interest income after provision for credit losses 325,314 117,901 19,819 463,034 Noninterest income 72,898 55,832 13,738 142,468 Noninterest expense (231,313) (79,832) (47,686) (358,831) Income (loss) before (provision) benefit for income taxes 166,899 93,901 (14,129) 246,671 (Provision) benefit for income taxes (39,836) (21,546) 2,192 (59,190) Net income (loss) $ 127,063 $ 72,355 $ (11,937) $ 187,481 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Three Months Ended September 30, 2022 Net interest income $ 117,060 $ 39,586 $ 6,090 $ 162,736 Provision for credit losses (773) (1,227) (1,183) (3,183) Net interest income after provision for credit losses 116,287 38,359 4,907 159,553 Noninterest income 24,480 19,848 1,529 45,857 Noninterest expense (76,820) (28,079) (8,433) (113,332) Income (loss) before (provision) benefit for income taxes 63,947 30,128 (1,997) 92,078 (Provision) benefit for income taxes (16,093) (7,458) 491 (23,060) Net income (loss) $ 47,854 $ 22,670 $ (1,506) $ 69,018 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Nine Months Ended September 30, 2022 Net interest income $ 318,476 $ 111,500 $ 11,779 $ 441,755 Benefit for credit losses 682 701 181 1,564 Net interest income after benefit for credit losses 319,158 112,201 11,960 443,319 Noninterest income 70,280 58,918 2,176 131,374 Noninterest expense (220,397) (81,546) (24,606) (326,549) Income (loss) before (provision) benefit for income taxes 169,041 89,573 (10,470) 248,144 (Provision) benefit for income taxes (42,139) (21,962) 2,054 (62,047) Net income (loss) $ 126,902 $ 67,611 $ (8,416) $ 186,097 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization and Summary of Significant Accounting Policies | |
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, 2022. 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. |
Loan Modifications to Borrowers Experiencing Financial Difficulty | Loan Modifications to Borrowers Experiencing Financial Difficulty Loan modifications are assessed by the Company to determine: (1) whether the borrower is experiencing financial difficulty and (2) whether the Company granted the borrower a modification or combination of modifications in the form of one or more of the following modification types: principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay and/or a term extension. If both criteria are met, then the loan modification is subject to additional evaluation for credit losses and enhanced disclosure requirements. Generally, a non-accrual loan that has been modified with a borrower experiencing financial difficulty remains on non-accrual status for at least six months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment terms is uncertain, the loan remains on non-accrual status. |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses for loans and leases (the “ACL”) is a valuation account that is deducted from the amortized cost basis of loans and leases to present the net amount expected to be collected from loans and leases. Loans and leases are charged-off against the ACL when management believes the loan or lease balance is deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The Company’s ACL and the reserve for unfunded commitments under the Current Expected Credit Losses (“CECL”) approach consist of quantitative and qualitative estimates. The Company’s methodology leverages two quantitative models: a one-variable forward-looking macroeconomic model that estimates the impact of management’s economic outlook and a transition probability matrix that estimates expected losses over the long run. The quantitative estimation is overlaid with qualitative adjustments to account for current conditions and forward-looking factors not captured in the quantitative model. Qualitative adjustments that are considered include adjustments for regulatory determinants, model limitations, model maturity, and other current or anticipated events that are not captured in the Company’s historical loss experience. The Company generally evaluates loans and leases on a collective or pool basis when similar risk characteristics exist. However, loans and leases that do not share similar risk characteristics are evaluated on an individual basis. Such loans and leases evaluated individually are excluded from the collective evaluation. Individually assessed loans are measured for estimated credit loss (“ECL”) based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, less estimated selling costs, if the loan is collateral-dependent. Management reviews relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts about the future. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency levels, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. The Company utilizes a Probability of Default (“PD”)/Loss Given Default (“LGD”) framework to estimate the ACL and the reserve for unfunded commitments. The PD represents the percentage expectation to default, measured by assessing loans and leases that migrate to default status (i.e., nonaccrual status, 90 days or more past due, partial or full charge-offs or bankruptcy). LGD is defined as the percentage of the exposure at default (“EAD”) lost at the time of default, net of any recoveries, and will be unique to each of the collateral types securing the Company’s loans. PD and LGD’s are based on past experience of the Company. The ECL on loans and leases is calculated by taking the product of the credit exposure, lifetime default probability (“LDP”) and the LGD. The ECL model is applied to current credit exposures at the account level, using assumptions calibrated at the portfolio segment level using internal historical loan and lease level data. The Company estimates the default risk of a credit exposure over the remaining life of each account using a transition probability matrix approach which captures both the average rate of up/down-grade and default transitions, as well as withdrawal rates which capture the historical rate of exposure decline due to loan and lease amortization and prepayment. To apply the transition matrices, each credit exposure’s remaining life is split into two time segments. The first time segment is for the reasonable and supportable forecast period over which the transition matrices which are applied have been adjusted to incorporate current and forecasted conditions over that period. Management has determined that using a one-year time horizon for the reasonable and supportable forecast period for all classes of loans and leases is a reasonable forecast horizon given the difficulty in predicting future economic conditions with a high degree of certainty. The second time segment is the reversion period from the end of the reasonable and supportable forecast period to the maturity of the exposure, over which long-run average transition matrices are applied. Management elected to use an immediate reversion to the mean approach. Lifetime loss rates are applied against the amortized cost basis of loans and leases and unfunded commitments to estimate the ACL and the reserve for unfunded commitments, respectively. On at least a quarterly basis, management convenes the Bank’s forecasting team which is responsible for reviewing the economic forecast model inputs and outputs and approving the resulting economic adjustment. The model uses a one-variable econometric model to produce factors that modify the long-run default rate assumptions used in the CECL model. These factors are applied to calculate the economic adjustment over the Reasonable and Supportable Forecast Period. At the meeting, management is presented with the economic forecast model input and output as well as the resulting economic adjustment. Depending on the current economic conditions, a range of inputs and outputs may be presented, in which case, using judgment, management will select an input and output. The economic forecast framework also allows management to use judgment in selecting the economic model input in cases where management’s outlook diverges from the official forecasts, and to apply qualitative dollar overlays to account for other economic related conditions not captured in the economic forecast model but are expected to potentially impact losses. The team also reviews other relevant economic variables and economic factors at the time of the meeting that could potentially impact future losses. These materials are presented to the economic forecasting team as they are economic in nature. If determined to be relevant and needing to be considered in the ACL estimate, these risks will be included in the ACL estimate through a qualitative dollar overlay that is determined using either quantitative analysis or qualitative judgment, or a mix of both. These other factors could include inflation indicators, personal income, or visitor arrivals, for example. At present, the Company has identified three portfolio segments in estimating the ACL: commercial, residential real estate and consumer lending. The Company’s commercial portfolio segment is comprised of four distinct classes: commercial and industrial loans, commercial real estate loans, construction loans and lease financing. The key risk drivers related to this portfolio segment include risk rating, collateral type, and remaining maturity. The Company’s residential real estate portfolio segment is comprised of two distinct classes: residential real estate loans and home equity lines of credit. Specific risk characteristics related to this portfolio include the value of the underlying collateral, credit score and remaining maturity. Finally, the Company’s consumer portfolio segment is not further segmented, but consists primarily of automobile loans, credit cards and other installment loans. Automobile loans constitute the majority of this segment and are monitored using credit scores, collateral values and remaining maturity. The remainder of the consumer portfolio is predominantly unsecured. Regarding accrued interest receivable, the Company made accounting policy elections to (1) not measure an ACL on accrued interest receivable, (2) write-off accrued interest receivable by reversing interest income and (3) present accrued interest receivable separately from the related financial asset on the balance sheet. Furthermore, regarding collateral-dependent financial assets, the Company elected the practical expedient to use the fair value of collateral at the reporting date when recording the net carrying amount of the asset and determining the ACL for a financial asset for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the Company’s assessment as of the reporting date. |
Accounting Standards Adopted in 2023 | Accounting Standards Adopted in 2023 In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-01, Derivatives and Hedging (Topic 815), Fair Value Hedging –Portfolio Layer Method. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures |
Enactment of the Inflation Reduction Act of 2022 | Enactment of the Inflation Reduction Act of 2022 On August 16, 2022, the U.S. government enacted the Inflation Reduction Act (IRA) which, among other changes, created a new corporate alternative minimum tax (AMT) based on adjusted financial statement income and imposes a 1% excise tax on corporate stock repurchases. These provisions became effective January 1, 2023. The enactment of the IRA did not have a material impact on the Company’s consolidated financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following ASUs have been issued by the FASB and are applicable to the Company in future reporting periods. In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842), Common Control Arrangements. Property, Plant, and Equipment. In March 2023, the FASB issued ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323), Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. Income Taxes Investments—Equity Method and Joint Ventures—Overall Investments—Equity Securities |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investment Securities | |
Schedule of amortized cost and fair value of securities | September 30, 2023 December 31, 2022 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 $ 126,264 $ — $ (12,105) $ 114,159 $ 163,309 $ — $ (12,327) $ 150,982 Government-sponsored enterprises debt securities 20,000 — (740) 19,260 45,000 — (699) 44,301 Mortgage-backed securities: Residential - Government agency 61,768 — (9,406) 52,362 66,792 — (7,069) 59,723 Residential - Government-sponsored enterprises 1,185,269 — (179,487) 1,005,782 1,317,718 — (157,263) 1,160,455 Commercial - Government agency 272,432 — (60,535) 211,897 282,700 — (44,847) 237,853 Commercial - Government-sponsored enterprises 94,021 — (9,101) 84,920 130,612 — (11,039) 119,573 Commercial - Non-agency 21,964 — (362) 21,602 21,964 — (493) 21,471 Collateralized mortgage obligations: Government agency 661,207 — (95,355) 565,852 738,524 — (85,202) 653,322 Government-sponsored enterprises 479,217 — (78,469) 400,748 533,103 — (70,971) 462,132 Collateralized loan obligations 249,889 21 (3,788) 246,122 249,877 50 (8,606) 241,321 Total available-for-sale securities $ 3,172,031 $ 21 $ (449,348) $ 2,722,704 $ 3,549,599 $ 50 $ (398,516) $ 3,151,133 Government agency debt securities $ 53,105 $ — $ (7,901) $ 45,204 $ 54,318 $ — $ (5,674) $ 48,644 Mortgage-backed securities: Residential - Government agency 44,379 — (8,024) 36,355 46,302 — (6,294) 40,008 Residential - Government-sponsored enterprises 100,905 — (18,151) 82,754 106,534 — (12,978) 93,556 Commercial - Government agency 30,733 — (8,756) 21,977 30,544 — (5,229) 25,315 Commercial - Government-sponsored enterprises 1,132,818 153 (194,471) 938,500 1,150,449 — (138,451) 1,011,998 Collateralized mortgage obligations: Government agency 1,010,551 — (153,260) 857,291 1,080,492 — (122,378) 958,114 Government-sponsored enterprises 1,677,519 — (271,248) 1,406,271 1,798,178 — (207,045) 1,591,133 Debt securities issued by states and political subdivisions 54,104 — (9,427) 44,677 53,822 — (7,768) 46,054 Total held-to-maturity securities $ 4,104,114 $ 153 $ (671,238) $ 3,433,029 $ 4,320,639 $ — $ (505,817) $ 3,814,822 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | September 30, 2023 Amortized Fair (dollars in thousands) Cost Value Available-for-sale securities Due in one year or less $ 19,884 $ 19,534 Due after one year through five years 60,651 57,469 Due after five years through ten years 172,717 161,989 Due after ten years 164,865 162,151 418,117 401,143 Mortgage-backed securities: Residential - Government agency 61,768 52,362 Residential - Government-sponsored enterprises 1,185,269 1,005,782 Commercial - Government agency 272,432 211,897 Commercial - Government-sponsored enterprises 94,021 84,920 Total mortgage-backed securities 1,613,490 1,354,961 Collateralized mortgage obligations: Government agency 661,207 565,852 Government-sponsored enterprises 479,217 400,748 Total collateralized mortgage obligations 1,140,424 966,600 Total available-for-sale securities $ 3,172,031 $ 2,722,704 Held-to-maturity securities Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 10,280 8,732 Due after ten years 96,929 81,149 107,209 89,881 Mortgage-backed securities: Residential - Government agency 44,379 36,355 Residential - Government-sponsored enterprises 100,905 82,754 Commercial - Government agency 30,733 21,977 Commercial - Government-sponsored enterprises 1,132,818 938,500 Total mortgage-backed securities 1,308,835 1,079,586 Collateralized mortgage obligations: Government agency 1,010,551 857,291 Government-sponsored enterprises 1,677,519 1,406,271 Total collateralized mortgage obligations 2,688,070 2,263,562 Total held-to-maturity securities $ 4,104,114 $ 3,433,029 |
Schedule of gross unrealized losses and fair values of securities in a continuous loss position | Time in Continuous Loss as of September 30, 2023 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 $ — $ — $ (12,105) $ 114,159 $ (12,105) $ 114,159 Government-sponsored enterprises debt securities — — (740) 19,260 (740) 19,260 Mortgage-backed securities: Residential - Government agency — — (9,406) 52,362 (9,406) 52,362 Residential - Government-sponsored enterprises — — (179,487) 1,005,782 (179,487) 1,005,782 Commercial - Government agency — — (60,535) 211,897 (60,535) 211,897 Commercial - Government-sponsored enterprises — — (9,101) 84,920 (9,101) 84,920 Commercial - Non-agency — — (362) 21,602 (362) 21,602 Collateralized mortgage obligations: Government agency — — (95,355) 565,852 (95,355) 565,852 Government-sponsored enterprises — — (78,469) 400,748 (78,469) 400,748 Collateralized loan obligations (973) 75,258 (2,815) 169,131 (3,788) 244,389 Total available-for-sale securities with unrealized losses $ (973) $ 75,258 $ (448,375) $ 2,645,713 $ (449,348) $ 2,720,971 Time in Continuous Loss as of December 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 $ (2,962) $ 83,870 $ (9,365) $ 67,112 $ (12,327) $ 150,982 Government-sponsored enterprises debt securities (699) 44,301 — — (699) 44,301 Mortgage-backed securities: Residential - Government agency (7,069) 59,723 — — (7,069) 59,723 Residential - Government-sponsored enterprises (73,954) 645,338 (83,309) 515,117 (157,263) 1,160,455 Commercial - Government agency (15,852) 108,842 (28,995) 129,011 (44,847) 237,853 Commercial - Government-sponsored enterprises (7,348) 94,657 (3,691) 24,916 (11,039) 119,573 Commercial - Non-agency (493) 21,471 — — (493) 21,471 Collateralized mortgage obligations: Government agency (74,797) 596,907 (10,405) 56,415 (85,202) 653,322 Government-sponsored enterprises (21,916) 198,108 (49,055) 264,024 (70,971) 462,132 Collateralized loan obligations: (8,606) 170,042 — — (8,606) 170,042 Total available-for-sale securities with unrealized losses $ (213,696) $ 2,023,259 $ (184,820) $ 1,056,595 $ (398,516) $ 3,079,854 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Loans and Leases. | |
Schedule of components of loans and leases | September 30, December 31, (dollars in thousands) 2023 2022 Commercial and industrial $ 2,101,442 $ 2,235,897 Commercial real estate 4,387,751 4,132,309 Construction 885,112 844,643 Residential: Residential mortgage 4,303,924 4,302,788 Home equity line 1,167,388 1,055,351 Total residential 5,471,312 5,358,139 Consumer 1,154,203 1,222,934 Lease financing 332,515 298,090 Total loans and leases $ 14,332,335 $ 14,092,012 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Allowance for Credit Losses | |
Schedule of activity in the allowance by class of loans and lease | Three Months Ended September 30, 2023 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 $ 13,810 $ 39,887 $ 9,871 $ 1,447 $ 32,803 $ 11,806 $ 38,957 $ 148,581 Charge-offs (784) — — — — — (3,665) (4,449) Recoveries 2,637 — — — 53 303 1,746 4,739 Provision (1,963) 3,911 333 263 4,143 (682) (81) 5,924 Balance at end of period $ 13,700 $ 43,798 $ 10,204 $ 1,710 $ 36,999 $ 11,427 $ 36,957 $ 154,795 Nine Months Ended September 30, 2023 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 $ 14,564 $ 43,810 $ 5,843 $ 1,551 $ 35,175 $ 8,296 $ 34,661 $ 143,900 Charge-offs (2,572) — — — (122) (272) (12,963) (15,929) Recoveries 3,175 — — — 110 539 5,640 9,464 Provision (1,467) (12) 4,361 159 1,836 2,864 9,619 17,360 Balance at end of period $ 13,700 43,798 $ 10,204 $ 1,710 $ 36,999 $ 11,427 $ 36,957 $ 154,795 Three Months Ended September 30, 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 $ 15,924 $ 44,726 $ 5,367 $ 1,398 $ 33,635 $ 4,734 $ 43,158 $ 148,942 Charge-offs (328) (750) — — (1) — (3,986) (5,065) Recoveries 240 — — — 37 356 1,653 2,286 Provision (703) 416 (643) 235 248 164 2,283 2,000 Balance at end of period $ 15,133 $ 44,392 $ 4,724 $ 1,633 $ 33,919 $ 5,254 $ 43,108 $ 148,163 Nine Months Ended September 30, 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 (1,277) (750) — — (1) (1,163) (11,754) (14,945) Recoveries 594 14 — 60 245 575 5,741 7,229 Provision (4,264) 2,177 (5,049) (86) (689) 200 6,328 (1,383) Balance at end of period $ 15,133 $ 44,392 $ 4,724 $ 1,633 $ 33,919 $ 5,254 $ 43,108 $ 148,163 |
Schedule of activity in the Liability for Credit Losses for Off-Balance-Sheet Financial Instruments | Three Months Ended September 30, 2023 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 $ 6,354 $ 1,991 $ 9,789 $ — $ 19 $ 18,015 $ 31 $ 36,199 Provision 3,577 (129) (382) — (6) (1,475) (9) 1,576 Balance at end of period $ 9,931 $ 1,862 $ 9,407 $ — $ 13 $ 16,540 $ 22 $ 37,775 Nine Months Ended September 30, 2023 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 $ 7,811 $ 2,004 $ 7,470 $ — $ 30 $ 16,483 $ 37 $ 33,835 Provision 2,120 (142) 1,937 — (17) 57 (15) 3,940 Balance at end of period $ 9,931 $ 1,862 $ 9,407 $ — $ 13 $ 16,540 $ 22 $ 37,775 Three Months Ended September 30, 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 $ 7,640 $ 3,750 $ 6,084 $ — $ 32 $ 11,423 $ 29 $ 28,958 Provision 478 (1,397) 630 — (4) 1,473 3 1,183 Balance at end of period $ 8,118 $ 2,353 $ 6,714 $ — $ 28 $ 12,896 $ 32 $ 30,141 Nine Months Ended September 30, 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 Provision (497) 239 (2,249) — 13 2,350 (37) (181) Balance at end of period $ 8,118 $ 2,353 $ 6,714 $ — $ 28 $ 12,896 $ 32 $ 30,141 |
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 September 30, 2023 was as follows: Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans Amortized Amortized (dollars in thousands) 2023 2022 2021 2020 2019 Prior Cost Basis Cost Basis Total Commercial Lending Commercial and Industrial Risk rating: Pass $ 55,062 $ 294,558 $ 368,460 $ 35,603 $ 150,195 $ 147,197 $ 906,094 $ 3,427 $ 1,960,596 Special Mention 1 31,427 95 730 1,125 1,569 2,677 87 37,711 Substandard 217 532 245 847 1,839 1,034 13,947 — 18,661 Other (1) 13,438 12,424 5,575 2,856 2,226 1,513 46,442 — 84,474 Total Commercial and Industrial 68,718 338,941 374,375 40,036 155,385 151,313 969,160 3,514 2,101,442 Current period gross charge-offs $ 130 $ 69 $ 74 $ 28 $ 108 $ 2,163 $ — $ — $ 2,572 Commercial Real Estate Risk rating: Pass 288,996 881,117 665,048 329,663 559,287 1,508,430 60,613 — 4,293,154 Special Mention 2,322 7,643 41,304 543 6,935 13,039 12,483 — 84,269 Substandard — 5,110 2,004 170 — 2,599 300 — 10,183 Other (1) — — — — — 145 — — 145 Total Commercial Real Estate 291,318 893,870 708,356 330,376 566,222 1,524,213 73,396 — 4,387,751 Current period gross charge-offs — — — — — — — — — Construction Risk rating: Pass 129,160 209,227 335,433 59,164 64,168 28,916 3,826 — 829,894 Special Mention — — — — 197 669 — — 866 Other (1) 10,194 24,825 10,313 2,260 2,115 3,932 713 — 54,352 Total Construction 139,354 234,052 345,746 61,424 66,480 33,517 4,539 — 885,112 Current period gross charge-offs — — — — — — — — — Lease Financing Risk rating: Pass 83,255 88,367 19,869 35,583 34,828 69,043 — — 330,945 Special Mention — — 341 38 — — — — 379 Substandard 747 440 — — 4 — — — 1,191 Total Lease Financing 84,002 88,807 20,210 35,621 34,832 69,043 — — 332,515 Current period gross charge-offs — — — — — — — — — Total Commercial Lending $ 583,392 $ 1,555,670 $ 1,448,687 $ 467,457 $ 822,919 $ 1,778,086 $ 1,047,095 $ 3,514 $ 7,706,820 Current period gross charge-offs $ 130 $ 69 $ 74 $ 28 $ 108 $ 2,163 $ — $ — $ 2,572 (continued) Revolving Loans Converted Term Loans Revolving to Term Amortized Cost Basis by Origination Year Loans Loans (continued) Amortized Amortized (dollars in thousands) 2023 2022 2021 2020 2019 Prior Cost Basis Cost Basis Total Residential Lending Residential Mortgage FICO: 740 and greater $ 195,053 $ 527,072 $ 1,018,441 $ 536,878 $ 231,038 $ 1,012,924 $ — $ — $ 3,521,406 680 - 739 29,006 78,642 116,247 73,209 32,906 131,547 — — 461,557 620 - 679 2,847 11,153 15,830 10,678 5,705 36,289 — — 82,502 550 - 619 269 3,343 4,037 2,458 249 11,724 — — 22,080 Less than 550 — 196 2,362 1,573 50 5,373 — — 9,554 No Score (3) 5,589 19,402 11,729 6,343 9,757 53,515 — — 106,335 Other (2) 10,518 17,079 17,682 12,840 8,733 26,171 7,467 — 100,490 Total Residential Mortgage 243,282 656,887 1,186,328 643,979 288,438 1,277,543 7,467 — 4,303,924 Current period gross charge-offs $ — $ — $ — $ — $ — $ 122 $ — $ — $ 122 Home Equity Line FICO: 740 and greater — — — — — — 961,974 1,503 963,477 680 - 739 — — — — — — 148,629 2,382 151,011 620 - 679 — — — — — — 34,333 1,326 35,659 550 - 619 — — — — — — 9,099 948 10,047 Less than 550 — — — — — — 5,257 264 5,521 No Score (3) — — — — — — 1,673 — 1,673 Total Home Equity Line — — — — — — 1,160,965 6,423 1,167,388 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ 254 $ 18 $ 272 Total Residential Lending $ 243,282 $ 656,887 $ 1,186,328 $ 643,979 $ 288,438 $ 1,277,543 $ 1,168,432 $ 6,423 $ 5,471,312 Current period gross charge-offs $ — $ — $ — $ — $ — $ 122 $ 254 $ 18 $ 394 Consumer Lending FICO: 740 and greater 85,839 139,753 84,741 39,390 27,790 13,589 116,342 153 507,597 680 - 739 60,184 79,628 43,948 20,531 16,192 8,577 74,428 416 303,904 620 - 679 21,797 32,632 18,094 8,650 9,214 6,191 33,543 892 131,013 550 - 619 3,745 10,422 7,898 4,953 5,597 4,069 12,456 684 49,824 Less than 550 774 5,629 4,519 3,175 3,048 2,459 4,567 560 24,731 No Score (3) 1,455 297 — — 5 13 41,852 150 43,772 Other (2) — 1,188 1,007 340 1,086 1 89,740 — 93,362 Total Consumer Lending $ 173,794 $ 269,549 $ 160,207 $ 77,039 $ 62,932 $ 34,899 $ 372,928 $ 2,855 $ 1,154,203 Current period gross charge-offs $ 152 $ 1,710 $ 1,723 $ 880 $ 1,500 $ 1,995 $ 4,541 $ 462 $ 12,963 Total Loans and Leases $ 1,000,468 $ 2,482,106 $ 2,795,222 $ 1,188,475 $ 1,174,289 $ 3,090,528 $ 2,588,455 $ 12,792 $ 14,332,335 Current period gross charge-offs $ 282 $ 1,779 $ 1,797 $ 908 $ 1,608 $ 4,280 $ 4,795 $ 480 $ 15,929 (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, 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 $ 359,881 $ 422,567 $ 54,656 $ 170,222 $ 51,476 $ 137,257 $ 894,384 $ 15,715 $ 2,106,158 Special Mention 2,059 240 1,371 2,643 184 1,431 22,897 378 31,203 Substandard 625 289 1,117 1,092 668 885 14,733 65 19,474 Other (1) 17,679 7,721 4,329 3,965 1,881 1,167 42,320 — 79,062 Total Commercial and Industrial 380,244 430,817 61,473 177,922 54,209 140,740 974,334 16,158 2,235,897 Commercial Real Estate Risk rating: Pass 889,583 695,882 319,838 565,587 395,474 1,173,163 48,081 — 4,087,608 Special Mention 170 — 555 14,878 512 11,398 675 — 28,188 Substandard — — 173 — 1,704 14,485 — — 16,362 Other (1) — — — — — 151 — — 151 Total Commercial Real Estate 889,753 695,882 320,566 580,465 397,690 1,199,197 48,756 — 4,132,309 Construction Risk rating: Pass 124,464 261,536 96,423 97,000 88,973 84,704 25,957 — 779,057 Special Mention — — — 221 — — — — 221 Substandard — — — — 21 490 — — 511 Other (1) 29,694 21,339 4,686 2,201 3,784 2,196 954 — 64,854 Total Construction 154,158 282,875 101,109 99,422 92,778 87,390 26,911 — 844,643 Lease Financing Risk rating: Pass 113,563 24,052 43,497 37,502 6,004 67,687 — — 292,305 Special Mention — 411 2,498 1,299 — — — — 4,208 Substandard — — 197 12 11 1,357 — — 1,577 Total Lease Financing 113,563 24,463 46,192 38,813 6,015 69,044 — — 298,090 Total Commercial Lending $ 1,537,718 $ 1,434,037 $ 529,340 $ 896,622 $ 550,692 $ 1,496,371 $ 1,050,001 $ 16,158 $ 7,510,939 (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 $ 557,636 $ 1,064,444 $ 560,463 $ 245,241 $ 165,258 $ 920,100 $ — $ — $ 3,513,142 680 - 739 73,929 112,672 82,416 40,355 22,126 130,508 — — 462,006 620 - 679 12,320 13,804 9,881 3,649 3,054 35,441 — — 78,149 550 - 619 2,455 2,246 1,791 263 601 6,955 — — 14,311 Less than 550 — 1,321 367 — 966 5,304 — — 7,958 No Score (3) 22,289 14,671 6,820 10,599 15,921 47,245 — — 117,545 Other (2) 18,970 18,211 15,287 9,201 9,124 29,128 9,202 554 109,677 Total Residential Mortgage 687,599 1,227,369 677,025 309,308 217,050 1,174,681 9,202 554 4,302,788 Home Equity Line FICO: 740 and greater — — — — — — 817,123 2,059 819,182 680 - 739 — — — — — — 171,117 2,714 173,831 620 - 679 — — — — — — 45,368 2,100 47,468 550 - 619 — — — — — — 7,485 1,029 8,514 Less than 550 — — — — — — 1,151 481 1,632 No Score (3) — — — — — — 4,724 — 4,724 Total Home Equity Line — — — — — — 1,046,968 8,383 1,055,351 Total Residential Lending 687,599 1,227,369 677,025 309,308 217,050 1,174,681 1,056,170 8,937 5,358,139 Consumer Lending FICO: 740 and greater 200,887 111,047 53,534 43,912 24,951 8,432 125,126 185 568,074 680 - 739 99,787 67,140 37,260 31,751 15,874 7,665 72,101 514 332,092 620 - 679 25,949 29,587 14,226 16,872 9,672 6,488 31,854 937 135,585 550 - 619 3,017 5,475 5,226 8,056 5,396 3,924 11,269 854 43,217 Less than 550 656 1,351 2,286 3,779 1,869 1,593 3,541 443 15,518 No Score (3) 3,205 258 — 51 24 29 38,805 227 42,599 Other (2) 1,615 4,082 353 1,368 — — 78,430 1 85,849 Total Consumer Lending 335,116 218,940 112,885 105,789 57,786 28,131 361,126 3,161 1,222,934 Total Loans and Leases $ 2,560,433 $ 2,880,346 $ 1,319,250 $ 1,311,719 $ 825,528 $ 2,699,183 $ 2,467,297 $ 28,256 $ 14,092,012 (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 aging analyses of past due loans and leases | September 30, 2023 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 $ 3,989 $ 673 $ 1,277 $ 5,939 $ 2,095,503 $ 2,101,442 $ 289 Commercial real estate — 300 170 470 4,387,281 4,387,751 170 Construction — — — — 885,112 885,112 — Lease financing — — — — 332,515 332,515 — Residential mortgage 3,239 — 6,575 9,814 4,294,110 4,303,924 1,430 Home equity line 6,741 938 3,320 10,999 1,156,389 1,167,388 — Consumer 20,327 3,967 1,681 25,975 1,128,228 1,154,203 1,681 Total $ 34,296 $ 5,878 $ 13,023 $ 53,197 $ 14,279,138 $ 14,332,335 $ 3,570 December 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 $ 2,682 $ 769 $ 1,441 $ 4,892 $ 2,231,005 $ 2,235,897 $ 291 Commercial real estate 4,505 — 727 5,232 4,127,077 4,132,309 — Construction 109 — — 109 844,534 844,643 — Lease financing — — — — 298,090 298,090 — Residential mortgage 3,681 1,983 2,572 8,236 4,294,552 4,302,788 58 Home equity line 5,161 1,381 2,072 8,614 1,046,737 1,055,351 — Consumer 29,927 6,801 2,886 39,614 1,183,320 1,222,934 2,885 Total $ 46,065 $ 10,934 $ 9,698 $ 66,697 $ 14,025,315 $ 14,092,012 $ 3,234 |
Schedule of amortized cost basis of loans and leases on nonaccrual status | September 30, 2023 Nonaccrual Loans and Leases With No Nonaccrual Allowance Loans (dollars in thousands) for Credit Losses and Leases Commercial and industrial $ 503 $ 988 Residential mortgage 2,674 7,435 Home equity line 596 6,200 Total Nonaccrual Loans and Leases $ 3,773 $ 14,623 December 31, 2022 Nonaccrual Loans and Leases With No Nonaccrual Allowance Loans (dollars in thousands) for Credit Losses and Leases Commercial and industrial $ 665 $ 1,215 Commercial real estate 727 727 Residential mortgage 1,560 6,166 Home equity line 596 3,797 Total Nonaccrual Loans and Leases $ 3,548 $ 11,905 |
Schedule of loans modified to borrowers experiencing financial difficulty | Interest Rate Reduction Three Months Ended Nine Months Ended September 30, 2023 September 30, 2023 Amortized % of Total Class Amortized % of Total Class (dollars in Cost Basis (1) of Financing Receivable Cost Basis (1) of Financing Receivable Consumer $ 255 0.02 % $ 889 0.08 % Total $ 255 n/m % $ 889 0.01 % n/m – Represents less than 0.01% of total class of financing receivable. (1) The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period. Term Extension Three Months Ended Nine Months Ended September 30, 2023 September 30, 2023 Amortized % of Total Class Amortized % of Total Class (dollars in Cost Basis (1) of Financing Receivable Cost Basis (1) of Financing Receivable Commercial and industrial $ 145 0.01 % $ 248 0.01 % Commercial real estate — — 1,214 0.03 Construction 669 0.08 897 0.10 Residential mortgage — — 33 n/m Consumer 17 n/m 130 0.01 Total $ 831 0.01 % $ 2,522 0.02 % |
Schedule of financial effect of the modifications made to borrowers experiencing financial difficulty | Interest Rate Reduction Financial Effect Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Consumer Reduced weighted-average contractual interest rate by 13.31%. Reduced weighted-average contractual interest rate by 13.22%. Term Extension Financial Effect Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Commercial and industrial Added a weighted-average 2.6 years to the life of loans. Added a weighted-average 3.0 years to the life of loans. Commercial real estate — Added a weighted-average 1.0 years to the life of loans. Construction Added a weighted-average 1.0 years to the life of loans. Added a weighted-average 1.4 years to the life of loans. Residential mortgage — Added a weighted-average 5.9 years to the life of loans. Consumer Added a weighted-average 2.9 years to the life of loans. Added a weighted-average 3.6 years to the life of loans. |
Tabular disclosure of financing receivables to borrowers experiencing financial difficulty modified within the previous 12 months and for which there was a payment default | Amortized Cost Basis of Modified Loans That Subsequently Defaulted (1) Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 (dollars in Interest Rate Reduction Interest Rate Reduction Consumer $ 166 $ 186 Total $ 166 $ 186 (1) The amortized cost basis reflects all partial paydowns and charge-offs since the modification date and do not include loans modified to borrowers experiencing financial difficulty that have been fully paid off, charged off, or foreclosed upon by the end of the period. |
Schedule of aging analyses of loans modified with a borrower experiencing financial difficulty | September 30, 2023 Past Due Greater Than or Equal to 30-59 Days 60-89 Days 90 Days Total (dollars in Past Due Past Due Past Due Past Due Current Total Commercial and industrial $ — $ — $ — $ — $ 248 $ 248 Commercial real estate — — — — 1,214 1,214 Construction — — — — 897 897 Residential mortgage — — — — 33 33 Consumer 62 18 18 98 921 1,019 Total $ 62 $ 18 $ 18 $ 98 $ 3,313 $ 3,411 |
Schedule of Receivables, Troubled Debt Restructurings by Creditors | Three Months Ended Nine Months Ended September 30, 2022 September 30, 2022 Number of Recorded Related Number of Recorded Related (dollars in thousands) Contracts (1) Investment (2) ACL Contracts (1) Investment (2) ACL Commercial and industrial 2 $ 201 $ 4 2 $ 201 $ 4 Residential mortgage — — — 1 252 32 Consumer 50 387 114 234 2,286 424 Total 52 $ 588 $ 118 237 $ 2,739 $ 460 (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 Nine Months Ended September 30, 2022 September 30, 2022 Number of Recorded Number of Recorded (dollars in Contracts (1) Investment (2) Contracts (1) Investment (2) Commercial and industrial 1 $ 216 2 $ 541 Consumer 123 1,561 219 2,939 Total 124 $ 1,777 221 $ 3,480 (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) | 9 Months Ended |
Sep. 30, 2023 | |
Other Assets. | |
Schedule of estimated future amortization expense for MSRs | Estimated (dollars in thousands) Amortization Under one year $ 852 One to two years 757 Two to three years 671 Three to four years 592 Four to five years 523 |
Schedule of details of the Company's MSRs | September 30, December 31, (dollars in thousands) 2023 2022 Gross carrying amount $ 69,406 $ 69,273 Less: accumulated amortization 63,551 62,711 Net carrying value $ 5,855 $ 6,562 |
Schedule of changes in amortized MSRs | Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2023 2022 2023 2022 Balance at beginning of period $ 6,072 $ 7,152 $ 6,562 $ 8,302 Originations 65 47 133 151 Amortization (282) (333) (840) (1,587) Balance at end of period $ 5,855 $ 6,866 $ 5,855 $ 6,866 Fair value of amortized MSRs at beginning of period $ 14,557 $ 14,969 $ 15,193 $ 12,243 Fair value of amortized MSRs at end of period $ 14,520 $ 14,945 $ 14,520 $ 14,945 |
Schedule of quantitative assumptions used in determining lower of cost or fair value of MSRs | September 30, 2023 December 31, 2022 Weighted Weighted Range Average Range Average Conditional prepayment rate 6.89 % - 11.27 % 7.02 % 7.02 % - 13.58 % 7.11 % Life in years (of the MSR) 4.26 - 7.25 7.11 3.35 - 7.37 7.20 Weighted-average coupon rate 3.57 % - 5.84 % 3.70 % 3.55 % - 6.24 % 3.68 % Discount rate 10.36 % - 10.55 % 10.52 % 10.41 % - 10.54 % 10.51 % |
Transfers of Financial Assets (
Transfers of Financial Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Transfers of Financial Assets | |
Schedule of carrying amounts of assets pledged as collateral | (dollars in thousands) September 30, 2023 December 31, 2022 Public deposits $ 3,511,412 $ 2,977,693 Federal Home Loan Bank 4,817,865 3,451,070 Federal Reserve Bank 4,801,873 1,704,803 ACH transactions 135,512 133,173 Interest rate swaps 585 31,091 Total $ 13,267,247 $ 8,297,830 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deposits | |
Schedule of deposits by category | (dollars in thousands) September 30, 2023 December 31, 2022 U.S.: Interest-bearing $ 12,667,072 $ 11,936,775 Noninterest-bearing 6,931,032 7,978,046 Foreign: Interest-bearing 945,421 887,608 Noninterest-bearing 967,964 886,600 Total deposits $ 21,511,489 $ 21,689,029 |
Schedule of maturity distribution of time certificates of deposit | The following table presents the maturity distribution of time certificates of deposit as of September 30, 2023: Under $250,000 (dollars in thousands) $250,000 or More Total Three months or less $ 202,932 $ 1,093,989 $ 1,296,921 Over three through six months 268,176 540,418 808,594 Over six through twelve months 785,036 496,157 1,281,193 One to two years 114,912 57,576 172,488 Two to three years 41,313 7,422 48,735 Three to four years 26,248 5,529 31,777 Four to five years 17,012 3,452 20,464 Thereafter 313 646 959 Total $ 1,455,942 $ 2,205,189 $ 3,661,131 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Short-Term Borrowings | |
Schedule of short-term borrowings | (dollars in thousands) September 30, 2023 December 31, 2022 Federal funds purchased $ — $ 75,000 Short-term FHLB fixed-rate advances (1) 500,000 — Total short-term borrowings $ 500,000 $ 75,000 |
Schedule of selected information for short-term borrowings | Nine Months Ended September 30, (dollars in thousands) 2023 2022 Federal funds purchased: Weighted-average interest rate at September 30, — % — % Highest month-end balance $ 150,000 $ — Average outstanding balance $ 23,059 $ 55 Weighted-average interest rate paid 4.45 % 1.67 % Short-term FHLB repo advance: Weighted-average interest rate at September 30, — % — % Highest month-end balance $ 400,000 $ — Average outstanding balance $ 156,319 $ — Weighted-average interest rate paid 5.25 % — % Short-term FHLB fixed-rate advances: Weighted-average interest rate at September 30, 4.71 % — % Highest month-end balance $ 500,000 $ — Average outstanding balance $ 20,147 $ — Weighted-average interest rate paid 4.34 % — % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
AOCI Attributable to Parent [Abstract] | |
Schedule of changes in accumulated other comprehensive loss | Income Tax Pre-tax Benefit Net of (dollars in Amount (Expense) Tax Accumulated other comprehensive loss at June 30, 2023 $ (835,647) $ 222,911 $ (612,736) Three months ended September 30, 2023 Investment securities: Unrealized net losses arising during the period (61,874) 16,505 (45,369) Reclassification of net losses to net income: Amortization of unrealized holding losses on held-to-maturity securities 11,434 (3,050) 8,384 Net change in investment securities (50,440) 13,455 (36,985) Cash flow derivative hedges: Unrealized net losses arising during the period (373) 100 (273) Reclassification of net losses included in net income 1,723 (460) 1,263 Net change in cash flow derivative hedges 1,350 (360) 990 Other comprehensive loss (49,090) 13,095 (35,995) Accumulated other comprehensive loss at September 30, 2023 $ (884,737) $ 236,006 $ (648,731) Income Tax Pre-tax Benefit Net of (dollars in thousands) Amount (Expense) Tax Accumulated other comprehensive loss at December 31, 2022 $ (871,813) $ 232,559 $ (639,254) Nine months ended September 30, 2023 Investment securities: Unrealized net losses arising during the period (50,861) 13,567 (37,294) Reclassification of net losses to net income: Amortization of unrealized holding losses on held-to-maturity securities 36,206 (9,658) 26,548 Net change in investment securities (14,655) 3,909 (10,746) Cash flow derivative hedges: Unrealized net losses arising during the period (2,868) 765 (2,103) Reclassification of net losses included in net income 4,599 (1,227) 3,372 Net change in cash flow derivative hedges 1,731 (462) 1,269 Other comprehensive loss (12,924) 3,447 (9,477) Accumulated other comprehensive loss at September 30, 2023 $ (884,737) $ 236,006 $ (648,731) Income Tax Pre-tax Benefit Net of (dollars in thousands) Amount (Expense) Tax Accumulated other comprehensive loss at June 30, 2022 $ (779,352) $ 207,895 $ (571,457) Three months ended September 30, 2022 Investment securities: Unrealized net losses arising during the period (130,000) 34,677 (95,323) Reclassification of net losses to net income: Amortization of unrealized holding losses on held-to-maturity securities 15,217 (4,058) 11,159 Net change in investment securities (114,783) 30,619 (84,164) Cash flow derivative hedges: Unrealized net losses arising during the period (4,372) 1,165 (3,207) Reclassification of net losses included in net income 98 (26) 72 Net change in cash flow derivative hedges (4,274) 1,139 (3,135) Other comprehensive loss (119,057) 31,758 (87,299) Accumulated other comprehensive loss at September 30, 2022 $ (898,409) $ 239,653 $ (658,756) 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) Nine months ended September 30, 2022 Investment securities: Unrealized net losses arising during the period (759,437) 202,580 (556,857) Reclassification of net losses to net income: Amortization of unrealized holding losses on held-to-maturity securities 35,146 (9,375) 25,771 Net change in investment securities (724,291) 193,205 (531,086) Cash flow derivative hedges: Unrealized net losses arising during the period (7,611) 2,030 (5,581) Reclassification of net gains included in net income (540) 144 (396) Net change in cash flow derivative hedges (8,151) 2,174 (5,977) Other comprehensive loss (732,442) 195,379 (537,063) Accumulated other comprehensive loss at September 30, 2022 $ (898,409) $ 239,653 $ (658,756) |
Summary of changes in accumulated other comprehensive loss, net of tax | Pensions Accumulated and Available-for-Sale Held-to-Maturity Cash Flow Other Other Investment Investment Derivative Comprehensive (dollars in thousands) Benefits Securities Securities Hedges Loss Three Months Ended September 30, 2023 Balance at beginning of period $ (5,431) $ (284,100) $ (318,782) $ (4,423) $ (612,736) Other comprehensive (loss) income — (45,369) 8,384 990 (35,995) Balance at end of period $ (5,431) $ (329,469) $ (310,398) $ (3,433) $ (648,731) Nine Months Ended September 30, 2023 Balance at beginning of period $ (5,431) $ (292,175) $ (336,946) $ (4,702) $ (639,254) Other comprehensive (loss) income — (37,294) 26,548 1,269 (9,477) Balance at end of period $ (5,431) $ (329,469) $ (310,398) $ (3,433) $ (648,731) Three Months Ended September 30, 2022 Balance at beginning of period $ (24,390) $ (220,021) $ (324,204) $ (2,842) $ (571,457) Unrealized net losses related to the transfer of securities from available-for-sale to held-to-maturity — 33,603 (33,603) — — Other comprehensive (loss) income — (95,323) 11,159 (3,135) (87,299) Balance at end of period $ (24,390) $ (281,741) $ (346,648) $ (5,977) $ (658,756) Nine Months Ended September 30, 2022 Balance at beginning of period $ (24,390) $ (97,303) $ — $ — $ (121,693) Unrealized net losses related to the transfer of securities from available-for-sale to held-to-maturity — 372,419 (372,419) — — Other comprehensive (loss) income — (556,857) 25,771 (5,977) (537,063) Balance at end of period $ (24,390) $ (281,741) $ (346,648) $ (5,977) $ (658,756) |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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) September 30, 2023: Common equity tier 1 capital to risk-weighted assets $ 2,004,248 12.21 % $ 1,990,261 12.12 % 4.50 % 6.50 % Tier 1 capital to risk-weighted assets 2,004,248 12.21 % 1,990,261 12.12 % 6.00 % 8.00 % Total capital to risk-weighted assets 2,196,818 13.38 % 2,182,831 13.30 % 8.00 % 10.00 % Tier 1 capital to average assets (leverage ratio) 2,004,248 8.45 % 1,990,261 8.39 % 4.00 % 5.00 % December 31, 2022: Common equity tier 1 capital to risk-weighted assets $ 1,912,767 11.82 % $ 1,895,693 11.71 % 4.50 % 6.50 % Tier 1 capital to risk-weighted assets 1,912,767 11.82 % 1,895,693 11.71 % 6.00 % 8.00 % Total capital to risk-weighted assets 2,090,502 12.92 % 2,073,428 12.81 % 8.00 % 10.00 % Tier 1 capital to average assets (leverage ratio) 1,912,767 8.11 % 1,895,693 8.04 % 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) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Financial Instruments | |
Summary of notional amounts and fair values of derivatives held | September 30, 2023 December 31, 2022 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 $ 9,829 $ (3,731) $ 267,500 $ 7,276 $ (6,840) Interest rate collars 200,000 — (951) 200,000 491 (63) Derivatives not designated as hedging instruments: Interest rate swaps 2,811,284 3,073 (1,198) 2,849,776 3,178 (42,365) Visa derivative 102,587 — (1,200) 121,013 — (851) Foreign exchange contracts 191 — — 210 — — (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 Nine Months Ended the consolidated statements September 30, September 30, (dollars in of income line item 2023 2022 2023 2022 Gains (losses) on fair value hedging relationships recognized in interest income: Recognized on interest rate swap Loans and lease financing $ 2,159 $ 745 $ 2,553 $ 6,888 Recognized on hedged item Loans and lease financing (2,256) (839) (2,833) (7,185) |
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 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Line item in the consolidated balance sheets in which the hedged item is included Loans and leases $ 57,627 $ 60,189 $ (9,873) $ (7,311) |
Summary of effect of cash flow hedging relationships | Three Months Ended Nine Months Ended September 30, September 30, (dollars in 2023 2022 2023 2022 Pretax net losses recognized in other comprehensive income on cash flow derivative hedges $ (373) $ (4,372) $ (2,868) $ (7,611) Pretax net losses (gains) reclassified from accumulated other comprehensive income to interest income from loans and lease financing 1,723 98 4,599 (540) |
Summary of impact on pretax earnings of derivatives not designated as hedges | Net gains (losses) recognized Three Months Ended Nine Months Ended in the consolidated statements September 30, September 30, (dollars in of income line item 2023 2022 2023 2022 Derivatives Not Designated As Hedging Instruments: Interest rate swaps Other noninterest income $ 26 $ — $ (532) $ — Visa derivative Other noninterest income $ (1,350) $ 273 (5,129) (1,084) |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingent Liabilities | |
Schedule of financial instruments with off-balance sheet risk | September 30, December 31, (dollars in 2023 2022 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit $ 6,722,595 $ 6,760,395 Standby letters of credit 238,704 244,275 Commercial letters of credit 5,410 7,299 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contracts with Customers | |
Summary of revenues disaggregated by type of service and business segments | Three Months Ended September 30, 2023 Treasury Retail Commercial and (dollars in Banking Banking Other Total Net interest income (1) $ 119,070 $ 45,913 $ (7,835) $ 157,148 Service charges on deposit accounts 6,724 714 86 7,524 Credit and debit card fees — 13,990 1,152 15,142 Other service charges and fees 6,461 425 529 7,415 Trust and investment services income 9,742 — — 9,742 Other 86 2,599 (48) 2,637 Not in scope of Topic 606 (1) 1,821 1,130 686 3,637 Total noninterest income 24,834 18,858 2,405 46,097 Total revenue $ 143,904 $ 64,771 $ (5,430) $ 203,245 Nine Months Ended September 30, 2023 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Net interest income (1) $ 332,227 $ 128,348 $ 23,759 $ 484,334 Service charges on deposit accounts 19,723 2,002 276 22,001 Credit and debit card fees — 42,044 3,687 45,731 Other service charges and fees 18,681 1,268 1,592 21,541 Trust and investment services income 28,804 — — 28,804 Other 413 6,449 2,037 8,899 Not in scope of Topic 606 (1) 5,277 4,069 6,146 15,492 Total noninterest income 72,898 55,832 13,738 142,468 Total revenue $ 405,125 $ 184,180 $ 37,497 $ 626,802 (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, derivative financial instruments and bank-owned life insurance. Three Months Ended September 30, 2022 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Net interest income (1) $ 117,060 $ 39,586 $ 6,090 $ 162,736 Service charges on deposit accounts 6,421 621 47 7,089 Credit and debit card fees — 15,831 1,312 17,143 Other service charges and fees 6,081 509 472 7,062 Trust and investment services income 9,800 — — 9,800 Other 93 1,250 304 1,647 Not in scope of Topic 606 (1) 2,085 1,637 (606) 3,116 Total noninterest income 24,480 19,848 1,529 45,857 Total revenue $ 141,540 $ 59,434 $ 7,619 $ 208,593 Nine Months Ended September 30, 2022 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Net interest income (1) $ 318,476 $ 111,500 $ 11,779 $ 441,755 Service charges on deposit accounts 19,155 1,380 898 21,433 Credit and debit card fees — 44,099 3,734 47,833 Other service charges and fees 18,950 1,708 1,327 21,985 Trust and investment services income 27,442 — — 27,442 Other 396 6,708 849 7,953 Not in scope of Topic 606 (1) 4,337 5,023 (4,632) 4,728 Total noninterest income 70,280 58,918 2,176 131,374 Total revenue $ 388,756 $ 170,418 $ 13,955 $ 573,129 (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, derivative financial instruments and bank-owned life insurance. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings per Share | |
Schedule of computations of basic and diluted earnings per share | Three Months Ended September 30, Nine Months Ended September 30, (dollars in 2023 2022 2023 2022 Numerator: Net income $ 58,221 $ 69,018 $ 187,481 $ 186,097 Denominator: Basic: weighted-average shares outstanding 127,609,860 127,377,713 127,552,255 127,534,746 Add: weighted-average equity-based awards 326,580 418,904 345,574 461,926 Diluted: weighted-average shares outstanding 127,936,440 127,796,617 127,897,829 127,996,672 Basic earnings per share $ 0.46 $ 0.54 $ 1.47 $ 1.46 Diluted earnings per share $ 0.46 $ 0.54 $ 1.47 $ 1.45 |
Noninterest Income and Nonint_2
Noninterest Income and Noninterest Expense (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 2023 2022 2023 2022 Three Months Ended September 30, Service cost Salaries and employee benefits $ — $ — $ 136 $ 197 Interest cost Other noninterest expense 2,053 1,523 171 118 Expected return on plan assets Other noninterest expense (883) (783) — — Recognized net actuarial loss (gain) Other noninterest expense 719 1,269 (379) (101) Total net periodic benefit cost $ 1,889 $ 2,009 $ (72) $ 214 Nine Months Ended September 30, Service cost Salaries and employee benefits $ — $ — $ 430 $ 626 Interest cost Other noninterest expense 6,171 4,245 611 405 Expected return on plan assets Other noninterest expense (2,648) (2,348) — — Recognized net actuarial loss (gain) Other noninterest expense 2,157 3,806 (1,137) (303) Total net periodic benefit cost $ 5,680 $ 5,703 $ (96) $ 728 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Fair Value Measurements as of September 30, 2023 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 $ — $ 114,159 $ — $ 114,159 Government-sponsored enterprises debt securities — 19,260 — 19,260 Mortgage-backed securities: Residential - Government agency (1) — 52,362 — 52,362 Residential - Government-sponsored enterprises (1) — 1,005,782 — 1,005,782 Commercial - Government agency — 211,897 — 211,897 Commercial - Government-sponsored enterprises — 84,920 — 84,920 Commercial - Non-agency — 21,602 — 21,602 Collateralized mortgage obligations: Government agency — 565,852 — 565,852 Government-sponsored enterprises — 400,748 — 400,748 Collateralized loan obligations — 246,122 — 246,122 Total available-for-sale securities — 2,722,704 — 2,722,704 Other assets (2) 1,287 12,902 — 14,189 Liabilities Other liabilities (3) — (5,880) (1,200) (7,080) Total $ 1,287 $ 2,729,726 $ (1,200) $ 2,729,813 (1) Backed by residential real estate. (2) Other assets classified as Level 1 include 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, 2022 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 $ — $ 150,982 $ — $ 150,982 Government-sponsored enterprises debt securities — 44,301 — 44,301 Mortgage-backed securities: Residential - Government agency (1) — 59,723 — 59,723 Residential - Government-sponsored enterprises (1) — 1,160,455 — 1,160,455 Commercial - Government agency — 237,853 — 237,853 Commercial - Government-sponsored enterprises — 119,573 — 119,573 Commercial - Non-agency — 21,471 — 21,471 Collateralized mortgage obligations: Government agency — 653,322 — 653,322 Government-sponsored enterprises — 462,132 — 462,132 Collateralized loan obligations — 241,321 — 241,321 Total available-for-sale securities — 3,151,133 — 3,151,133 Other assets (2) 5,376 10,945 — 16,321 Liabilities Other liabilities (3) — (49,268) (851) (50,119) Total $ 5,376 $ 3,112,810 $ (851) $ 3,117,335 (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. |
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis | Visa Derivative (dollars in 2023 2022 Three Months Ended September 30, Balance as of July 1, $ (1,200) $ (3,786) Total net (losses) gains included in other noninterest income (1,350) 273 Settlements 1,350 1,154 Balance as of September 30, $ (1,200) $ (2,359) Total net (losses) gains included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of September 30, $ (1,350) $ 273 Nine Months Ended September 30, Balance as of January 1, $ (851) $ (5,530) Total net losses included in other noninterest income (5,129) (1,084) Settlements 4,780 4,255 Balance as of September 30, $ (1,200) $ (2,359) Total net losses included in net income attributable to the change in unrealized losses related to liabilities still held as of September 30, $ (5,129) $ (1,084) |
Summary of estimated fair value of financial instruments not required to be carried at fair value on a recurring basis | September 30, 2023 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 $ 1,213,428 $ 246,028 $ 967,400 $ — $ 1,213,428 Investment securities held-to-maturity 4,104,114 — 3,433,029 — 3,433,029 Loans (1) 13,999,820 — — 13,166,377 13,166,377 Financial liabilities: Time deposits (2) $ 3,661,131 $ — $ 3,625,116 $ — $ 3,625,116 Short-term borrowings 500,000 — 495,306 — 495,306 December 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 $ 526,624 $ 297,502 $ 229,122 $ — $ 526,624 Investment securities held-to-maturity 4,320,639 — 3,814,822 — 3,814,822 Loans (1) 13,793,922 — — 13,138,787 13,138,787 Financial liabilities: Time deposits (2) $ 2,476,050 $ — $ 2,423,231 $ — $ 2,423,231 Short-term borrowings 75,000 — 74,991 — 74,991 (1) Excludes financing leases of $332.5 million at September 30, 2023 and $298.1 million at December 31, 2022. (2) Excludes deposit liabilities with no defined or contractual maturity of $17.9 billion as of September 30, 2023 and $19.2 billion as of December 31, 2022. |
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 September 30, 2023 Significant (dollars in thousands) Fair value Valuation Technique Unobservable Input Range Visa derivative $ (1,200) Discounted Cash Flow Expected Conversion Rate - 1.5875 (1) 1.5289 - 1.5875 Expected Term - 3 months (2) 0 - 6 months Growth Rate - 17% (3) 7% - 24% Quantitative Information about Level 3 Fair Value Measurements at December 31, 2022 Significant (dollars in thousands) Fair value Valuation Technique Unobservable Input Range Visa derivative $ (851) Discounted Cash Flow Expected Conversion Rate - 1.5991 (1) 1.5514-1.5991 Expected Term - 3 months (2) 0 - 6 months 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 3 months was based on the median of 0 to 6 months. (3) The growth rate was based on the arithmetic average of analyst price targets. |
Reportable Operating Segments (
Reportable Operating Segments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Reportable Operating Segments | |
Schedule of selected business segment financial information | Treasury Retail Commercial and (dollars in Banking Banking Other Total Three Months Ended September 30, 2023 Net interest income (loss) $ 119,070 $ 45,913 $ (7,835) $ 157,148 Provision for credit losses (2,359) (3,565) (1,576) (7,500) Net interest income (loss) after provision for credit losses 116,711 42,348 (9,411) 149,648 Noninterest income 24,834 18,858 2,405 46,097 Noninterest expense (77,873) (24,976) (16,534) (119,383) Income (loss) before (provision) benefit for income taxes 63,672 36,230 (23,540) 76,362 (Provision) benefit for income taxes (15,209) (8,334) 5,402 (18,141) Net income (loss) $ 48,463 $ 27,896 $ (18,138) $ 58,221 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Nine Months Ended September 30, 2023 Net interest income $ 332,227 $ 128,348 $ 23,759 $ 484,334 Provision for credit losses (6,913) (10,447) (3,940) (21,300) Net interest income after provision for credit losses 325,314 117,901 19,819 463,034 Noninterest income 72,898 55,832 13,738 142,468 Noninterest expense (231,313) (79,832) (47,686) (358,831) Income (loss) before (provision) benefit for income taxes 166,899 93,901 (14,129) 246,671 (Provision) benefit for income taxes (39,836) (21,546) 2,192 (59,190) Net income (loss) $ 127,063 $ 72,355 $ (11,937) $ 187,481 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Three Months Ended September 30, 2022 Net interest income $ 117,060 $ 39,586 $ 6,090 $ 162,736 Provision for credit losses (773) (1,227) (1,183) (3,183) Net interest income after provision for credit losses 116,287 38,359 4,907 159,553 Noninterest income 24,480 19,848 1,529 45,857 Noninterest expense (76,820) (28,079) (8,433) (113,332) Income (loss) before (provision) benefit for income taxes 63,947 30,128 (1,997) 92,078 (Provision) benefit for income taxes (16,093) (7,458) 491 (23,060) Net income (loss) $ 47,854 $ 22,670 $ (1,506) $ 69,018 Treasury Retail Commercial and (dollars in thousands) Banking Banking Other Total Nine Months Ended September 30, 2022 Net interest income $ 318,476 $ 111,500 $ 11,779 $ 441,755 Benefit for credit losses 682 701 181 1,564 Net interest income after benefit for credit losses 319,158 112,201 11,960 443,319 Noninterest income 70,280 58,918 2,176 131,374 Noninterest expense (220,397) (81,546) (24,606) (326,549) Income (loss) before (provision) benefit for income taxes 169,041 89,573 (10,470) 248,144 (Provision) benefit for income taxes (42,139) (21,962) 2,054 (62,047) Net income (loss) $ 126,902 $ 67,611 $ (8,416) $ 186,097 |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2023 item | |
Capitalization | |
Loan modification, period of nonaccrual status | 6 months |
Estimated credit loss model, forecast horizon | 1 year |
Number of Portfolio Segments | 3 |
Commercial Lending | |
Capitalization | |
Number of distinct classes within portfolio segment | 4 |
Residential mortgage | |
Capitalization | |
Number of distinct classes within portfolio segment | 2 |
First Hawaiian, Inc. (FHI) | |
Capitalization | |
Outstanding common stock owned (as a percent) | 100% |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Securities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Available for sale debt securities | |||
Amortized Cost | $ 3,172,031,000 | $ 3,172,031,000 | $ 3,549,599,000 |
Unrealized Gains | 21,000 | 21,000 | 50,000 |
Unrealized Losses | (449,348,000) | (449,348,000) | (398,516,000) |
Total available-for-sale securities, Fair value, | 2,722,704,000 | 2,722,704,000 | 3,151,133,000 |
Held to maturity securities | |||
Amortized Cost | 4,104,114,000 | 4,104,114,000 | 4,320,639,000 |
Unrealized Gains | 153,000 | 153,000 | |
Unrealized Losses | (671,238,000) | (671,238,000) | (505,817,000) |
Total held to maturity, Fair value, | 3,433,029,000 | 3,433,029,000 | 3,814,822,000 |
Available-for-sale investment securities | |||
Accrued interest receivable related to available-for-sale investment securities | 8,700,000 | 8,700,000 | 8,900,000 |
Accrued interest receivable related to held to maturity investment securities | 7,400,000 | 7,400,000 | 7,500,000 |
Reclassification of available for sale securities to held to maturity | 0 | 0 | 4,600,000,000 |
Other comprehensive income (loss), transfer of securities from available for sale to held to maturity | (372,400,000) | ||
Gains (losses) recognized on reclassification, transfer of securities from available for sale to held to maturity | 0 | ||
Collateralized Loan Obligations | |||
Available for sale debt securities | |||
Amortized Cost | 249,889,000 | 249,889,000 | 249,877,000 |
Unrealized Gains | 21,000 | 21,000 | 50,000 |
Unrealized Losses | (3,788,000) | (3,788,000) | (8,606,000) |
Total available-for-sale securities, Fair value, | 246,122,000 | 246,122,000 | 241,321,000 |
U.S. Treasury and government agency debt securities | |||
Available for sale debt securities | |||
Amortized Cost | 126,264,000 | 126,264,000 | 163,309,000 |
Unrealized Losses | (12,105,000) | (12,105,000) | (12,327,000) |
Total available-for-sale securities, Fair value, | 114,159,000 | 114,159,000 | 150,982,000 |
Held to maturity securities | |||
Amortized Cost | 53,105,000 | 53,105,000 | 54,318,000 |
Unrealized Losses | (7,901,000) | (7,901,000) | (5,674,000) |
Total held to maturity, Fair value, | 45,204,000 | 45,204,000 | 48,644,000 |
Government-sponsored enterprises debt securities | |||
Available for sale debt securities | |||
Amortized Cost | 20,000,000 | 20,000,000 | 45,000,000 |
Unrealized Losses | (740,000) | (740,000) | (699,000) |
Total available-for-sale securities, Fair value, | 19,260,000 | 19,260,000 | 44,301,000 |
Residential - Government agency | |||
Available for sale debt securities | |||
Amortized Cost | 61,768,000 | 61,768,000 | 66,792,000 |
Unrealized Losses | (9,406,000) | (9,406,000) | (7,069,000) |
Total available-for-sale securities, Fair value, | 52,362,000 | 52,362,000 | 59,723,000 |
Held to maturity securities | |||
Amortized Cost | 44,379,000 | 44,379,000 | 46,302,000 |
Unrealized Losses | (8,024,000) | (8,024,000) | (6,294,000) |
Total held to maturity, Fair value, | 36,355,000 | 36,355,000 | 40,008,000 |
Residential - Government-sponsored enterprises | |||
Available for sale debt securities | |||
Amortized Cost | 1,185,269,000 | 1,185,269,000 | 1,317,718,000 |
Unrealized Losses | (179,487,000) | (179,487,000) | (157,263,000) |
Total available-for-sale securities, Fair value, | 1,005,782,000 | 1,005,782,000 | 1,160,455,000 |
Held to maturity securities | |||
Amortized Cost | 100,905,000 | 100,905,000 | 106,534,000 |
Unrealized Losses | (18,151,000) | (18,151,000) | (12,978,000) |
Total held to maturity, Fair value, | 82,754,000 | 82,754,000 | 93,556,000 |
Commercial - Government agency | |||
Available for sale debt securities | |||
Amortized Cost | 272,432,000 | 272,432,000 | 282,700,000 |
Unrealized Losses | (60,535,000) | (60,535,000) | (44,847,000) |
Total available-for-sale securities, Fair value, | 211,897,000 | 211,897,000 | 237,853,000 |
Held to maturity securities | |||
Amortized Cost | 30,733,000 | 30,733,000 | 30,544,000 |
Unrealized Losses | (8,756,000) | (8,756,000) | (5,229,000) |
Total held to maturity, Fair value, | 21,977,000 | 21,977,000 | 25,315,000 |
Commercial - Government-sponsored enterprises | |||
Available for sale debt securities | |||
Amortized Cost | 94,021,000 | 94,021,000 | 130,612,000 |
Unrealized Losses | (9,101,000) | (9,101,000) | (11,039,000) |
Total available-for-sale securities, Fair value, | 84,920,000 | 84,920,000 | 119,573,000 |
Held to maturity securities | |||
Amortized Cost | 1,132,818,000 | 1,132,818,000 | 1,150,449,000 |
Unrealized Gains | 153,000 | 153,000 | |
Unrealized Losses | (194,471,000) | (194,471,000) | (138,451,000) |
Total held to maturity, Fair value, | 938,500,000 | 938,500,000 | 1,011,998,000 |
Commercial - Non -agency | |||
Available for sale debt securities | |||
Amortized Cost | 21,964,000 | 21,964,000 | 21,964,000 |
Unrealized Losses | (362,000) | (362,000) | (493,000) |
Total available-for-sale securities, Fair value, | 21,602,000 | 21,602,000 | 21,471,000 |
Government agency | |||
Available for sale debt securities | |||
Amortized Cost | 661,207,000 | 661,207,000 | 738,524,000 |
Unrealized Losses | (95,355,000) | (95,355,000) | (85,202,000) |
Total available-for-sale securities, Fair value, | 565,852,000 | 565,852,000 | 653,322,000 |
Held to maturity securities | |||
Amortized Cost | 1,010,551,000 | 1,010,551,000 | 1,080,492,000 |
Unrealized Losses | (153,260,000) | (153,260,000) | (122,378,000) |
Total held to maturity, Fair value, | 857,291,000 | 857,291,000 | 958,114,000 |
Government-sponsored enterprises | |||
Available for sale debt securities | |||
Amortized Cost | 479,217,000 | 479,217,000 | 533,103,000 |
Unrealized Losses | (78,469,000) | (78,469,000) | (70,971,000) |
Total available-for-sale securities, Fair value, | 400,748,000 | 400,748,000 | 462,132,000 |
Held to maturity securities | |||
Amortized Cost | 1,677,519,000 | 1,677,519,000 | 1,798,178,000 |
Unrealized Losses | (271,248,000) | (271,248,000) | (207,045,000) |
Total held to maturity, Fair value, | 1,406,271,000 | 1,406,271,000 | 1,591,133,000 |
Debt securities issued by states and political subdivisions | |||
Held to maturity securities | |||
Amortized Cost | 54,104,000 | 54,104,000 | 53,822,000 |
Unrealized Losses | (9,427,000) | (9,427,000) | (7,768,000) |
Total held to maturity, Fair value, | $ 44,677,000 | $ 44,677,000 | $ 46,054,000 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Proceeds from calls and sales of investment securities and other assets | ||||
Proceeds from calls of investment securities | $ 0.2 | $ 0.3 | $ 8 | $ 1.5 |
Proceeds from sales of investment securities | 0 | 0 | 25.2 | 0 |
Debt Securities, Available-for-sale, Realized Gain (Loss) [Abstract] | ||||
Gross realized gains on sales of investment securities | 0 | 0 | 0 | 0 |
Gross realized losses on sales of investment securities | 0 | 0 | 0 | 0 |
Income tax benefit related to net realized loss on sale of investment securities | 0 | 0 | 0 | 0 |
Interest income from taxable and nontaxable investment securities | ||||
Interest income from taxable investment securities | 33.4 | 33.8 | 100.7 | 94.5 |
Interest income from non-taxable investment securities | $ 3.3 | $ 3.8 | $ 10 | $ 10.1 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Value, by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 19,884 | |
Due after one year through five years | 60,651 | |
Due after five years through ten years | 172,717 | |
Due after ten years | 164,865 | |
Total contractual maturities | 418,117 | |
Available-for-sale investment securities, amortized cost | 3,172,031 | $ 3,549,599 |
Fair Value | ||
Due in one year or less | 19,534 | |
Due after one year through five years | 57,469 | |
Due after five years through ten years | 161,989 | |
Due after ten years | 162,151 | |
Total contractual maturities | 401,143 | |
Total available-for-sale securities, Fair value, | 2,722,704 | 3,151,133 |
Amortized Cost | ||
Due after five years through ten years | 10,280 | |
Due after ten years | 96,929 | |
Total contractual maturities | 107,209 | |
Amortized cost | 4,104,114 | 4,320,639 |
Fair Value | ||
Due after five years through ten years | 8,732 | |
Due after ten years | 81,149 | |
Total contractual maturities | 89,881 | |
Total held to maturity, Fair value, | 3,433,029 | 3,814,822 |
Mortgage-backed securities: | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 1,613,490 | |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 1,354,961 | |
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 1,308,835 | |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 1,079,586 | |
Residential - Government agency | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 61,768 | |
Available-for-sale investment securities, amortized cost | 61,768 | 66,792 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 52,362 | |
Total available-for-sale securities, Fair value, | 52,362 | 59,723 |
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 44,379 | |
Amortized cost | 44,379 | 46,302 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 36,355 | |
Total held to maturity, Fair value, | 36,355 | 40,008 |
Residential - Government-sponsored enterprises | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 1,185,269 | |
Available-for-sale investment securities, amortized cost | 1,185,269 | 1,317,718 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 1,005,782 | |
Total available-for-sale securities, Fair value, | 1,005,782 | 1,160,455 |
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 100,905 | |
Amortized cost | 100,905 | 106,534 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 82,754 | |
Total held to maturity, Fair value, | 82,754 | 93,556 |
Commercial - Government agency | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 272,432 | |
Available-for-sale investment securities, amortized cost | 272,432 | 282,700 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 211,897 | |
Total available-for-sale securities, Fair value, | 211,897 | 237,853 |
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 30,733 | |
Amortized cost | 30,733 | 30,544 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 21,977 | |
Total held to maturity, Fair value, | 21,977 | 25,315 |
Commercial - Government-sponsored enterprises | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 94,021 | |
Available-for-sale investment securities, amortized cost | 94,021 | 130,612 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 84,920 | |
Total available-for-sale securities, Fair value, | 84,920 | 119,573 |
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 1,132,818 | |
Amortized cost | 1,132,818 | 1,150,449 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 938,500 | |
Total held to maturity, Fair value, | 938,500 | 1,011,998 |
Collateralized mortgage obligations | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 1,140,424 | |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 966,600 | |
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 2,688,070 | |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 2,263,562 | |
Government agency | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 661,207 | |
Available-for-sale investment securities, amortized cost | 661,207 | 738,524 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 565,852 | |
Total available-for-sale securities, Fair value, | 565,852 | 653,322 |
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 1,010,551 | |
Amortized cost | 1,010,551 | 1,080,492 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 857,291 | |
Total held to maturity, Fair value, | 857,291 | 958,114 |
Government-sponsored enterprises | ||
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 479,217 | |
Available-for-sale investment securities, amortized cost | 479,217 | 533,103 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 400,748 | |
Total available-for-sale securities, Fair value, | 400,748 | 462,132 |
Amortized Cost | ||
Mortgaged-backed securities and collateralized mortgage obligations | 1,677,519 | |
Amortized cost | 1,677,519 | 1,798,178 |
Fair Value | ||
Mortgaged-backed securities and collateralized mortgage obligations | 1,406,271 | |
Total held to maturity, Fair value, | $ 1,406,271 | $ 1,591,133 |
Investment Securities - Pledged
Investment Securities - Pledged Securities and Concentration Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Concentration of risk | |||
Credit losses recognized on securities | $ 0 | $ 0 | $ 0 |
Asset Pledged as Collateral | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Investment securities pledged as collateral | 6,300,000,000 | 6,300,000,000 | 3,200,000,000 |
Asset Pledged as Collateral | Public deposits | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Investment securities pledged as collateral | 3,500,000,000 | 3,500,000,000 | 3,000,000,000 |
Asset Pledged as Collateral | Other financial transactions | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Investment securities pledged as collateral | 180,100,000 | 180,100,000 | $ 207,800,000 |
Borrowing Capacity | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Investment securities pledged as collateral | 2,600,000,000 | 2,600,000,000 | |
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) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) security shares | Dec. 31, 2022 USD ($) security shares | |
Securities in the available-for-sale portfolio in a continuous loss position | ||
Number of individual securities in a continuous loss position | security | 279 | 275 |
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | $ (973,000) | $ (213,696,000) |
12 Months or More Unrealized Losses | (448,375,000) | (184,820,000) |
Total Unrealized Losses | (449,348,000) | (398,516,000) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 75,258,000 | 2,023,259,000 |
12 Months or More Fair Value | 2,645,713,000 | 1,056,595,000 |
Total Fair Value | 2,720,971,000 | 3,079,854,000 |
Allowance for credit losses, investment securities | $ 0 | $ 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 | 5% | 5% |
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 | (2,962,000) | |
12 Months or More Unrealized Losses | (12,105,000) | (9,365,000) |
Total Unrealized Losses | (12,105,000) | (12,327,000) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 83,870,000 | |
12 Months or More Fair Value | 114,159,000 | 67,112,000 |
Total Fair Value | 114,159,000 | 150,982,000 |
Government-sponsored enterprises debt securities | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (699,000) | |
12 Months or More Unrealized Losses | (740,000) | |
Total Unrealized Losses | (740,000) | (699,000) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 44,301,000 | |
12 Months or More Fair Value | 19,260,000 | |
Total Fair Value | 19,260,000 | 44,301,000 |
Residential - Government-sponsored enterprises | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (73,954,000) | |
12 Months or More Unrealized Losses | (179,487,000) | (83,309,000) |
Total Unrealized Losses | (179,487,000) | (157,263,000) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 645,338,000 | |
12 Months or More Fair Value | 1,005,782,000 | 515,117,000 |
Total Fair Value | 1,005,782,000 | 1,160,455,000 |
Residential - Government agency | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (7,069,000) | |
12 Months or More Unrealized Losses | (9,406,000) | |
Total Unrealized Losses | (9,406,000) | (7,069,000) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 59,723,000 | |
12 Months or More Fair Value | 52,362,000 | |
Total Fair Value | 52,362,000 | 59,723,000 |
Commercial - Government agency | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (15,852,000) | |
12 Months or More Unrealized Losses | (60,535,000) | (28,995,000) |
Total Unrealized Losses | (60,535,000) | (44,847,000) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 108,842,000 | |
12 Months or More Fair Value | 211,897,000 | 129,011,000 |
Total Fair Value | 211,897,000 | 237,853,000 |
Commercial - Government-sponsored enterprises | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (7,348,000) | |
12 Months or More Unrealized Losses | (9,101,000) | (3,691,000) |
Total Unrealized Losses | (9,101,000) | (11,039,000) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 94,657,000 | |
12 Months or More Fair Value | 84,920,000 | 24,916,000 |
Total Fair Value | 84,920,000 | 119,573,000 |
Commercial - Non -agency | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (493,000) | |
12 Months or More Unrealized Losses | (362,000) | |
Total Unrealized Losses | (362,000) | (493,000) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 21,471,000 | |
12 Months or More Fair Value | 21,602,000 | |
Total Fair Value | 21,602,000 | 21,471,000 |
Government agency | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (74,797,000) | |
12 Months or More Unrealized Losses | (95,355,000) | (10,405,000) |
Total Unrealized Losses | (95,355,000) | (85,202,000) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 596,907,000 | |
12 Months or More Fair Value | 565,852,000 | 56,415,000 |
Total Fair Value | 565,852,000 | 653,322,000 |
Government-sponsored enterprises | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (21,916,000) | |
12 Months or More Unrealized Losses | (78,469,000) | (49,055,000) |
Total Unrealized Losses | (78,469,000) | (70,971,000) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 198,108,000 | |
12 Months or More Fair Value | 400,748,000 | 264,024,000 |
Total Fair Value | 400,748,000 | 462,132,000 |
Collateralized Loan Obligations | ||
Time in Continuous Loss, Unrealized Losses | ||
Less Than 12 Months Unrealized Losses | (973,000) | (8,606,000) |
12 Months or More Unrealized Losses | (2,815,000) | |
Total Unrealized Losses | (3,788,000) | (8,606,000) |
Time in Continuous Loss, Fair Value | ||
Less Than 12 Months, Fair Value | 75,258,000 | 170,042,000 |
12 Months or More Fair Value | 169,131,000 | |
Total Fair Value | $ 244,389,000 | $ 170,042,000 |
Loans and Leases - Components (
Loans and Leases - Components (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Loans and leases | ||
Loans and leases | $ 14,332,335 | $ 14,092,012 |
Outstanding loan balances, deferred loan costs and fees | 58,500 | 56,100 |
Accrued interest receivable related to loans and leases recorded separately | 67,900 | 61,600 |
Consumer, commercial and industrial, commercial real estate and residential real estate loans pledged to collateralize the borrowing capacity at the FRB | 4,800,000 | 1,700,000 |
Home equity line | ||
Loans and leases | ||
Loans and leases | 1,055,351 | |
Real estate | ||
Loans and leases | ||
Loans and leases | 5,471,312 | 5,358,139 |
Commercial and Industrial | ||
Loans and leases | ||
Loans and leases | 2,101,442 | 2,235,897 |
Commercial and Industrial | Real estate | ||
Loans and leases | ||
Loans and leases | 2,101,442 | 2,235,897 |
Commercial real estate | ||
Loans and leases | ||
Loans and leases | 4,387,751 | 4,132,309 |
Commercial real estate | Real estate | ||
Loans and leases | ||
Loans and leases | 4,387,751 | 4,132,309 |
Construction | ||
Loans and leases | ||
Loans and leases | 885,112 | 844,643 |
Construction | Real estate | ||
Loans and leases | ||
Loans and leases | 885,112 | 844,643 |
Residential mortgage | ||
Loans and leases | ||
Loans and leases | 4,303,924 | 4,302,788 |
Properties in the process of foreclosure | 7,300 | 2,800 |
Residential mortgage | Home equity line | ||
Loans and leases | ||
Loans and leases | 1,167,388 | |
Home equity Line | ||
Loans and leases | ||
Loans and leases | 1,167,388 | 1,055,351 |
Home equity Line | Real estate | ||
Loans and leases | ||
Loans and leases | 1,167,388 | 1,055,351 |
Consumer Portfolio Segment [Member] | ||
Loans and leases | ||
Loans and leases | 1,154,203 | 1,222,934 |
Consumer Portfolio Segment [Member] | Real estate | ||
Loans and leases | ||
Loans and leases | 1,154,203 | 1,222,934 |
Lease financing | ||
Loans and leases | ||
Loans and leases | 332,515 | 298,090 |
Asset Pledged as Collateral | Short-term FHLB fixed-rate advances: | Residential mortgage | ||
Loans and leases | ||
Loans and leases | $ 4,800,000 | $ 3,500,000 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Activity in ACL by Class of Loans and Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Rollforward of the Allowance for Credit Losses | ||||
Balance at beginning of year | $ 148,581 | $ 148,942 | $ 143,900 | $ 157,262 |
Charge-offs | (4,449) | (5,065) | (15,929) | (14,945) |
Recoveries | 4,739 | 2,286 | 9,464 | 7,229 |
Provision | 5,924 | 2,000 | 17,360 | (1,383) |
Balance at end of year | 154,795 | 148,163 | 154,795 | 148,163 |
Commercial Lending | ||||
Rollforward of the Allowance for Credit Losses | ||||
Charge-offs | (2,572) | |||
Commercial and Industrial | ||||
Rollforward of the Allowance for Credit Losses | ||||
Balance at beginning of year | 13,810 | 15,924 | 14,564 | 20,080 |
Charge-offs | (784) | (328) | (2,572) | (1,277) |
Recoveries | 2,637 | 240 | 3,175 | 594 |
Provision | (1,963) | (703) | (1,467) | (4,264) |
Balance at end of year | 13,700 | 15,133 | 13,700 | 15,133 |
Commercial real estate | ||||
Rollforward of the Allowance for Credit Losses | ||||
Balance at beginning of year | 39,887 | 44,726 | 43,810 | 42,951 |
Charge-offs | (750) | (750) | ||
Recoveries | 14 | |||
Provision | 3,911 | 416 | (12) | 2,177 |
Balance at end of year | 43,798 | 44,392 | 43,798 | 44,392 |
Construction | ||||
Rollforward of the Allowance for Credit Losses | ||||
Balance at beginning of year | 9,871 | 5,367 | 5,843 | 9,773 |
Provision | 333 | (643) | 4,361 | (5,049) |
Balance at end of year | 10,204 | 4,724 | 10,204 | 4,724 |
Lease financing | ||||
Rollforward of the Allowance for Credit Losses | ||||
Balance at beginning of year | 1,447 | 1,398 | 1,551 | 1,659 |
Recoveries | 60 | |||
Provision | 263 | 235 | 159 | (86) |
Balance at end of year | 1,710 | 1,633 | 1,710 | 1,633 |
Residential mortgage | ||||
Rollforward of the Allowance for Credit Losses | ||||
Charge-offs | (394) | |||
Residential mortgage | Residential Lending: Residential Mortgage | ||||
Rollforward of the Allowance for Credit Losses | ||||
Balance at beginning of year | 32,803 | 33,635 | 35,175 | 34,364 |
Charge-offs | (1) | (122) | (1) | |
Recoveries | 53 | 37 | 110 | 245 |
Provision | 4,143 | 248 | 1,836 | (689) |
Balance at end of year | 36,999 | 33,919 | 36,999 | 33,919 |
Residential mortgage | Home equity line | ||||
Rollforward of the Allowance for Credit Losses | ||||
Charge-offs | (272) | |||
Home equity line | Home equity line | ||||
Rollforward of the Allowance for Credit Losses | ||||
Balance at beginning of year | 11,806 | 4,734 | 8,296 | 5,642 |
Charge-offs | (272) | (1,163) | ||
Recoveries | 303 | 356 | 539 | 575 |
Provision | (682) | 164 | 2,864 | 200 |
Balance at end of year | 11,427 | 5,254 | 11,427 | 5,254 |
Consumer | ||||
Rollforward of the Allowance for Credit Losses | ||||
Balance at beginning of year | 38,957 | 43,158 | 34,661 | 42,793 |
Charge-offs | (3,665) | (3,986) | (12,963) | (11,754) |
Recoveries | 1,746 | 1,653 | 5,640 | 5,741 |
Provision | (81) | 2,283 | 9,619 | 6,328 |
Balance at end of year | $ 36,957 | $ 43,108 | $ 36,957 | $ 43,108 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reserve for unfunded commitments: | ||||
Reserve for unfunded commitments, beginning balance | $ 36,199 | $ 28,958 | $ 33,835 | $ 30,322 |
Provision | 1,576 | 1,183 | 3,940 | (181) |
Reserve for unfunded commitments, ending balance | 37,775 | 30,141 | 37,775 | 30,141 |
Commercial and Industrial | ||||
Reserve for unfunded commitments: | ||||
Reserve for unfunded commitments, beginning balance | 6,354 | 7,640 | 7,811 | 8,615 |
Provision | 3,577 | 478 | 2,120 | (497) |
Reserve for unfunded commitments, ending balance | 9,931 | 8,118 | 9,931 | 8,118 |
Commercial real estate | ||||
Reserve for unfunded commitments: | ||||
Reserve for unfunded commitments, beginning balance | 1,991 | 3,750 | 2,004 | 2,114 |
Provision | (129) | (1,397) | (142) | 239 |
Reserve for unfunded commitments, ending balance | 1,862 | 2,353 | 1,862 | 2,353 |
Construction | ||||
Reserve for unfunded commitments: | ||||
Reserve for unfunded commitments, beginning balance | 9,789 | 6,084 | 7,470 | 8,963 |
Provision | (382) | 630 | 1,937 | (2,249) |
Reserve for unfunded commitments, ending balance | 9,407 | 6,714 | 9,407 | 6,714 |
Residential Lending: Residential Mortgage | ||||
Reserve for unfunded commitments: | ||||
Reserve for unfunded commitments, beginning balance | 19 | 32 | 30 | 15 |
Provision | (6) | (4) | (17) | 13 |
Reserve for unfunded commitments, ending balance | 13 | 28 | 13 | 28 |
Home equity line | ||||
Reserve for unfunded commitments: | ||||
Reserve for unfunded commitments, beginning balance | 18,015 | 11,423 | 16,483 | 10,546 |
Provision | (1,475) | 1,473 | 57 | 2,350 |
Reserve for unfunded commitments, ending balance | 16,540 | 12,896 | 16,540 | 12,896 |
Consumer Portfolio Segment [Member] | ||||
Reserve for unfunded commitments: | ||||
Reserve for unfunded commitments, beginning balance | 31 | 29 | 37 | 69 |
Provision | (9) | 3 | (15) | (37) |
Reserve for unfunded commitments, ending balance | $ 22 | $ 32 | $ 22 | $ 32 |
Allowance for Credit Losses - C
Allowance for Credit Losses - Credit Quality Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Financing Receivable, before Allowance for Credit Loss, Total | $ 14,332,335 | $ 14,332,335 | $ 14,092,012 | ||
Current period gross charge-offs: | |||||
Total, Current period gross charge-offs | 4,449 | $ 5,065 | 15,929 | $ 14,945 | |
Loss | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Financing Receivable, before Allowance for Credit Loss, Total | 0 | 0 | |||
Residential Lending: Residential Mortgage | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 687,599 | ||||
2022/2021 | 1,227,369 | ||||
2021/2020 | 677,025 | ||||
2020/2019 | 309,308 | ||||
2019/2018 | 217,050 | ||||
Prior | 1,174,681 | ||||
Revolving Loans Amortized Cost Basis | 9,202 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 554 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 4,302,788 | ||||
Residential Lending: Residential Mortgage | 740 and greater | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 557,636 | ||||
2022/2021 | 1,064,444 | ||||
2021/2020 | 560,463 | ||||
2020/2019 | 245,241 | ||||
2019/2018 | 165,258 | ||||
Prior | 920,100 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 3,513,142 | ||||
Residential Lending: Residential Mortgage | 680 - 739 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 73,929 | ||||
2022/2021 | 112,672 | ||||
2021/2020 | 82,416 | ||||
2020/2019 | 40,355 | ||||
2019/2018 | 22,126 | ||||
Prior | 130,508 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 462,006 | ||||
Residential Lending: Residential Mortgage | 620 - 679 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 12,320 | ||||
2022/2021 | 13,804 | ||||
2021/2020 | 9,881 | ||||
2020/2019 | 3,649 | ||||
2019/2018 | 3,054 | ||||
Prior | 35,441 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 78,149 | ||||
Residential Lending: Residential Mortgage | 550 - 619 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 2,455 | ||||
2022/2021 | 2,246 | ||||
2021/2020 | 1,791 | ||||
2020/2019 | 263 | ||||
2019/2018 | 601 | ||||
Prior | 6,955 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 14,311 | ||||
Residential Lending: Residential Mortgage | Less than 550 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2022/2021 | 1,321 | ||||
2021/2020 | 367 | ||||
2019/2018 | 966 | ||||
Prior | 5,304 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 7,958 | ||||
Residential Lending: Residential Mortgage | No Score | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 22,289 | ||||
2022/2021 | 14,671 | ||||
2021/2020 | 6,820 | ||||
2020/2019 | 10,599 | ||||
2019/2018 | 15,921 | ||||
Prior | 47,245 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 117,545 | ||||
Residential Lending: Residential Mortgage | Fico Other | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 18,970 | ||||
2022/2021 | 18,211 | ||||
2021/2020 | 15,287 | ||||
2020/2019 | 9,201 | ||||
2019/2018 | 9,124 | ||||
Prior | 29,128 | ||||
Revolving Loans Amortized Cost Basis | 9,202 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 554 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 109,677 | ||||
Home equity line | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost Basis | 1,046,968 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 8,383 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 1,055,351 | ||||
Home equity line | 740 and greater | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost Basis | 817,123 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 2,059 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 819,182 | ||||
Home equity line | 680 - 739 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost Basis | 171,117 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 2,714 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 173,831 | ||||
Home equity line | 620 - 679 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost Basis | 45,368 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 2,100 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 47,468 | ||||
Home equity line | 550 - 619 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost Basis | 7,485 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1,029 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 8,514 | ||||
Home equity line | Less than 550 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost Basis | 1,151 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 481 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 1,632 | ||||
Home equity line | No Score | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost Basis | 4,724 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 4,724 | ||||
Total loans | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 1,000,468 | 1,000,468 | 2,560,433 | ||
2022/2021 | 2,482,106 | 2,482,106 | 2,880,346 | ||
2021/2020 | 2,795,222 | 2,795,222 | 1,319,250 | ||
2020/2019 | 1,188,475 | 1,188,475 | 1,311,719 | ||
2019/2018 | 1,174,289 | 1,174,289 | 825,528 | ||
Prior | 3,090,528 | 3,090,528 | 2,699,183 | ||
Revolving Loans Amortized Cost Basis | 2,588,455 | 2,588,455 | 2,467,297 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 12,792 | 12,792 | 28,256 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 14,332,335 | 14,332,335 | 14,092,012 | ||
Current period gross charge-offs: | |||||
2023, Current period gross charge-offs | 282 | ||||
2022, Current period gross charge-offs | 1,779 | ||||
2021, Current period gross charge-offs | 1,797 | ||||
2020, Current period gross charge-offs | 908 | ||||
2019, Current period gross charge-offs | 1,608 | ||||
Prior, Current period gross charge-offs | 4,280 | ||||
Revolving Loans Amortized Cost Basis, Current period gross charge-offs | 4,795 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis, Current period gross charge-offs | 480 | ||||
Total, Current period gross charge-offs | 15,929 | ||||
Residential mortgage | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Financing Receivable, before Allowance for Credit Loss, Total | 4,303,924 | 4,303,924 | 4,302,788 | ||
Current period gross charge-offs: | |||||
Prior, Current period gross charge-offs | 122 | ||||
Revolving Loans Amortized Cost Basis, Current period gross charge-offs | 254 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis, Current period gross charge-offs | 18 | ||||
Total, Current period gross charge-offs | 394 | ||||
Residential mortgage | Fico Other | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 243,282 | 243,282 | |||
2022/2021 | 656,887 | 656,887 | |||
2021/2020 | 1,186,328 | 1,186,328 | |||
2020/2019 | 643,979 | 643,979 | |||
2019/2018 | 288,438 | 288,438 | |||
Prior | 1,277,543 | 1,277,543 | |||
Revolving Loans Amortized Cost Basis | 1,168,432 | 1,168,432 | |||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 6,423 | 6,423 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 5,471,312 | 5,471,312 | |||
Residential mortgage | Residential Lending: Residential Mortgage | |||||
Current period gross charge-offs: | |||||
Total, Current period gross charge-offs | 1 | 122 | 1 | ||
Residential mortgage | Home equity line | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost Basis | 1,160,965 | 1,160,965 | |||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 6,423 | 6,423 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 1,167,388 | 1,167,388 | |||
Current period gross charge-offs: | |||||
Revolving Loans Amortized Cost Basis, Current period gross charge-offs | 254 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis, Current period gross charge-offs | 18 | ||||
Total, Current period gross charge-offs | 272 | ||||
Residential mortgage | Home equity line | 740 and greater | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost Basis | 961,974 | 961,974 | |||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1,503 | 1,503 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 963,477 | 963,477 | |||
Residential mortgage | Home equity line | 680 - 739 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost Basis | 148,629 | 148,629 | |||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 2,382 | 2,382 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 151,011 | 151,011 | |||
Residential mortgage | Home equity line | 620 - 679 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost Basis | 34,333 | 34,333 | |||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1,326 | 1,326 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 35,659 | 35,659 | |||
Residential mortgage | Home equity line | 550 - 619 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost Basis | 9,099 | 9,099 | |||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 948 | 948 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 10,047 | 10,047 | |||
Residential mortgage | Home equity line | Less than 550 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost Basis | 5,257 | 5,257 | |||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 264 | 264 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 5,521 | 5,521 | |||
Residential mortgage | Home equity line | No Score | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Revolving Loans Amortized Cost Basis | 1,673 | 1,673 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 1,673 | 1,673 | |||
Home equity Line | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Financing Receivable, before Allowance for Credit Loss, Total | 1,167,388 | 1,167,388 | 1,055,351 | ||
Consumer | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 173,794 | 173,794 | 335,116 | ||
2022/2021 | 269,549 | 269,549 | 218,940 | ||
2021/2020 | 160,207 | 160,207 | 112,885 | ||
2020/2019 | 77,039 | 77,039 | 105,789 | ||
2019/2018 | 62,932 | 62,932 | 57,786 | ||
Prior | 34,899 | 34,899 | 28,131 | ||
Revolving Loans Amortized Cost Basis | 372,928 | 372,928 | 361,126 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 2,855 | 2,855 | 3,161 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 1,154,203 | 1,154,203 | 1,222,934 | ||
Current period gross charge-offs: | |||||
2023, Current period gross charge-offs | 152 | ||||
2022, Current period gross charge-offs | 1,710 | ||||
2021, Current period gross charge-offs | 1,723 | ||||
2020, Current period gross charge-offs | 880 | ||||
2019, Current period gross charge-offs | 1,500 | ||||
Prior, Current period gross charge-offs | 1,995 | ||||
Revolving Loans Amortized Cost Basis, Current period gross charge-offs | 4,541 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis, Current period gross charge-offs | 462 | ||||
Total, Current period gross charge-offs | 3,665 | 3,986 | 12,963 | 11,754 | |
Consumer | 740 and greater | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 85,839 | 85,839 | 200,887 | ||
2022/2021 | 139,753 | 139,753 | 111,047 | ||
2021/2020 | 84,741 | 84,741 | 53,534 | ||
2020/2019 | 39,390 | 39,390 | 43,912 | ||
2019/2018 | 27,790 | 27,790 | 24,951 | ||
Prior | 13,589 | 13,589 | 8,432 | ||
Revolving Loans Amortized Cost Basis | 116,342 | 116,342 | 125,126 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 153 | 153 | 185 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 507,597 | 507,597 | 568,074 | ||
Consumer | 680 - 739 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 60,184 | 60,184 | 99,787 | ||
2022/2021 | 79,628 | 79,628 | 67,140 | ||
2021/2020 | 43,948 | 43,948 | 37,260 | ||
2020/2019 | 20,531 | 20,531 | 31,751 | ||
2019/2018 | 16,192 | 16,192 | 15,874 | ||
Prior | 8,577 | 8,577 | 7,665 | ||
Revolving Loans Amortized Cost Basis | 74,428 | 74,428 | 72,101 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 416 | 416 | 514 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 303,904 | 303,904 | 332,092 | ||
Consumer | 620 - 679 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 21,797 | 21,797 | 25,949 | ||
2022/2021 | 32,632 | 32,632 | 29,587 | ||
2021/2020 | 18,094 | 18,094 | 14,226 | ||
2020/2019 | 8,650 | 8,650 | 16,872 | ||
2019/2018 | 9,214 | 9,214 | 9,672 | ||
Prior | 6,191 | 6,191 | 6,488 | ||
Revolving Loans Amortized Cost Basis | 33,543 | 33,543 | 31,854 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 892 | 892 | 937 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 131,013 | 131,013 | 135,585 | ||
Consumer | 550 - 619 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 3,745 | 3,745 | 3,017 | ||
2022/2021 | 10,422 | 10,422 | 5,475 | ||
2021/2020 | 7,898 | 7,898 | 5,226 | ||
2020/2019 | 4,953 | 4,953 | 8,056 | ||
2019/2018 | 5,597 | 5,597 | 5,396 | ||
Prior | 4,069 | 4,069 | 3,924 | ||
Revolving Loans Amortized Cost Basis | 12,456 | 12,456 | 11,269 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 684 | 684 | 854 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 49,824 | 49,824 | 43,217 | ||
Consumer | Less than 550 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 774 | 774 | 656 | ||
2022/2021 | 5,629 | 5,629 | 1,351 | ||
2021/2020 | 4,519 | 4,519 | 2,286 | ||
2020/2019 | 3,175 | 3,175 | 3,779 | ||
2019/2018 | 3,048 | 3,048 | 1,869 | ||
Prior | 2,459 | 2,459 | 1,593 | ||
Revolving Loans Amortized Cost Basis | 4,567 | 4,567 | 3,541 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 560 | 560 | 443 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 24,731 | 24,731 | 15,518 | ||
Consumer | No Score | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 1,455 | 1,455 | 3,205 | ||
2022/2021 | 297 | 297 | 258 | ||
2020/2019 | 51 | ||||
2019/2018 | 5 | 5 | 24 | ||
Prior | 13 | 13 | 29 | ||
Revolving Loans Amortized Cost Basis | 41,852 | 41,852 | 38,805 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 150 | 150 | 227 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 43,772 | 43,772 | 42,599 | ||
Consumer | Fico Other | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 1,615 | ||||
2022/2021 | 1,188 | 1,188 | 4,082 | ||
2021/2020 | 1,007 | 1,007 | 353 | ||
2020/2019 | 340 | 340 | 1,368 | ||
2019/2018 | 1,086 | 1,086 | |||
Prior | 1 | 1 | |||
Revolving Loans Amortized Cost Basis | 89,740 | 89,740 | 78,430 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 93,362 | 93,362 | 85,849 | ||
Residential Mortgage loans | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 687,599 | ||||
2022/2021 | 1,227,369 | ||||
2021/2020 | 677,025 | ||||
2020/2019 | 309,308 | ||||
2019/2018 | 217,050 | ||||
Prior | 1,174,681 | ||||
Revolving Loans Amortized Cost Basis | 1,056,170 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 8,937 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 5,358,139 | ||||
Residential Mortgage loans | Residential Lending: Residential Mortgage | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 243,282 | 243,282 | |||
2022/2021 | 656,887 | 656,887 | |||
2021/2020 | 1,186,328 | 1,186,328 | |||
2020/2019 | 643,979 | 643,979 | |||
2019/2018 | 288,438 | 288,438 | |||
Prior | 1,277,543 | 1,277,543 | |||
Revolving Loans Amortized Cost Basis | 7,467 | 7,467 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 4,303,924 | 4,303,924 | |||
Current period gross charge-offs: | |||||
Prior, Current period gross charge-offs | 122 | ||||
Total, Current period gross charge-offs | 122 | ||||
Residential Mortgage loans | Residential Lending: Residential Mortgage | 740 and greater | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 195,053 | 195,053 | |||
2022/2021 | 527,072 | 527,072 | |||
2021/2020 | 1,018,441 | 1,018,441 | |||
2020/2019 | 536,878 | 536,878 | |||
2019/2018 | 231,038 | 231,038 | |||
Prior | 1,012,924 | 1,012,924 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 3,521,406 | 3,521,406 | |||
Residential Mortgage loans | Residential Lending: Residential Mortgage | 680 - 739 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 29,006 | 29,006 | |||
2022/2021 | 78,642 | 78,642 | |||
2021/2020 | 116,247 | 116,247 | |||
2020/2019 | 73,209 | 73,209 | |||
2019/2018 | 32,906 | 32,906 | |||
Prior | 131,547 | 131,547 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 461,557 | 461,557 | |||
Residential Mortgage loans | Residential Lending: Residential Mortgage | 620 - 679 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 2,847 | 2,847 | |||
2022/2021 | 11,153 | 11,153 | |||
2021/2020 | 15,830 | 15,830 | |||
2020/2019 | 10,678 | 10,678 | |||
2019/2018 | 5,705 | 5,705 | |||
Prior | 36,289 | 36,289 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 82,502 | 82,502 | |||
Residential Mortgage loans | Residential Lending: Residential Mortgage | 550 - 619 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 269 | 269 | |||
2022/2021 | 3,343 | 3,343 | |||
2021/2020 | 4,037 | 4,037 | |||
2020/2019 | 2,458 | 2,458 | |||
2019/2018 | 249 | 249 | |||
Prior | 11,724 | 11,724 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 22,080 | 22,080 | |||
Residential Mortgage loans | Residential Lending: Residential Mortgage | Less than 550 | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2022/2021 | 196 | 196 | |||
2021/2020 | 2,362 | 2,362 | |||
2020/2019 | 1,573 | 1,573 | |||
2019/2018 | 50 | 50 | |||
Prior | 5,373 | 5,373 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 9,554 | 9,554 | |||
Residential Mortgage loans | Residential Lending: Residential Mortgage | No Score | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 5,589 | 5,589 | |||
2022/2021 | 19,402 | 19,402 | |||
2021/2020 | 11,729 | 11,729 | |||
2020/2019 | 6,343 | 6,343 | |||
2019/2018 | 9,757 | 9,757 | |||
Prior | 53,515 | 53,515 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 106,335 | 106,335 | |||
Residential Mortgage loans | Residential Lending: Residential Mortgage | Fico Other | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 10,518 | 10,518 | |||
2022/2021 | 17,079 | 17,079 | |||
2021/2020 | 17,682 | 17,682 | |||
2020/2019 | 12,840 | 12,840 | |||
2019/2018 | 8,733 | 8,733 | |||
Prior | 26,171 | 26,171 | |||
Revolving Loans Amortized Cost Basis | 7,467 | 7,467 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 100,490 | 100,490 | |||
Commercial and Industrial | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 68,718 | 68,718 | 380,244 | ||
2022/2021 | 338,941 | 338,941 | 430,817 | ||
2021/2020 | 374,375 | 374,375 | 61,473 | ||
2020/2019 | 40,036 | 40,036 | 177,922 | ||
2019/2018 | 155,385 | 155,385 | 54,209 | ||
Prior | 151,313 | 151,313 | 140,740 | ||
Revolving Loans Amortized Cost Basis | 969,160 | 969,160 | 974,334 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 3,514 | 3,514 | 16,158 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 2,101,442 | 2,101,442 | 2,235,897 | ||
Current period gross charge-offs: | |||||
2023, Current period gross charge-offs | 130 | ||||
2022, Current period gross charge-offs | 69 | ||||
2021, Current period gross charge-offs | 74 | ||||
2020, Current period gross charge-offs | 28 | ||||
2019, Current period gross charge-offs | 108 | ||||
Prior, Current period gross charge-offs | 2,163 | ||||
Total, Current period gross charge-offs | 784 | 328 | 2,572 | 1,277 | |
Commercial and Industrial | Pass | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 55,062 | 55,062 | 359,881 | ||
2022/2021 | 294,558 | 294,558 | 422,567 | ||
2021/2020 | 368,460 | 368,460 | 54,656 | ||
2020/2019 | 35,603 | 35,603 | 170,222 | ||
2019/2018 | 150,195 | 150,195 | 51,476 | ||
Prior | 147,197 | 147,197 | 137,257 | ||
Revolving Loans Amortized Cost Basis | 906,094 | 906,094 | 894,384 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 3,427 | 3,427 | 15,715 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 1,960,596 | 1,960,596 | 2,106,158 | ||
Commercial and Industrial | Special mention | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 1 | 1 | 2,059 | ||
2022/2021 | 31,427 | 31,427 | 240 | ||
2021/2020 | 95 | 95 | 1,371 | ||
2020/2019 | 730 | 730 | 2,643 | ||
2019/2018 | 1,125 | 1,125 | 184 | ||
Prior | 1,569 | 1,569 | 1,431 | ||
Revolving Loans Amortized Cost Basis | 2,677 | 2,677 | 22,897 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 87 | 87 | 378 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 37,711 | 37,711 | 31,203 | ||
Commercial and Industrial | Substandard | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 217 | 217 | 625 | ||
2022/2021 | 532 | 532 | 289 | ||
2021/2020 | 245 | 245 | 1,117 | ||
2020/2019 | 847 | 847 | 1,092 | ||
2019/2018 | 1,839 | 1,839 | 668 | ||
Prior | 1,034 | 1,034 | 885 | ||
Revolving Loans Amortized Cost Basis | 13,947 | 13,947 | 14,733 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 65 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 18,661 | 18,661 | 19,474 | ||
Commercial and Industrial | Other Indicator | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 13,438 | 13,438 | 17,679 | ||
2022/2021 | 12,424 | 12,424 | 7,721 | ||
2021/2020 | 5,575 | 5,575 | 4,329 | ||
2020/2019 | 2,856 | 2,856 | 3,965 | ||
2019/2018 | 2,226 | 2,226 | 1,881 | ||
Prior | 1,513 | 1,513 | 1,167 | ||
Revolving Loans Amortized Cost Basis | 46,442 | 46,442 | 42,320 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 84,474 | 84,474 | 79,062 | ||
Commercial real estate | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 291,318 | 291,318 | 889,753 | ||
2022/2021 | 893,870 | 893,870 | 695,882 | ||
2021/2020 | 708,356 | 708,356 | 320,566 | ||
2020/2019 | 330,376 | 330,376 | 580,465 | ||
2019/2018 | 566,222 | 566,222 | 397,690 | ||
Prior | 1,524,213 | 1,524,213 | 1,199,197 | ||
Revolving Loans Amortized Cost Basis | 73,396 | 73,396 | 48,756 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 4,387,751 | 4,387,751 | 4,132,309 | ||
Current period gross charge-offs: | |||||
Total, Current period gross charge-offs | $ 750 | $ 750 | |||
Commercial real estate | Pass | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 288,996 | 288,996 | 889,583 | ||
2022/2021 | 881,117 | 881,117 | 695,882 | ||
2021/2020 | 665,048 | 665,048 | 319,838 | ||
2020/2019 | 329,663 | 329,663 | 565,587 | ||
2019/2018 | 559,287 | 559,287 | 395,474 | ||
Prior | 1,508,430 | 1,508,430 | 1,173,163 | ||
Revolving Loans Amortized Cost Basis | 60,613 | 60,613 | 48,081 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 4,293,154 | 4,293,154 | 4,087,608 | ||
Commercial real estate | Special mention | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 2,322 | 2,322 | 170 | ||
2022/2021 | 7,643 | 7,643 | |||
2021/2020 | 41,304 | 41,304 | 555 | ||
2020/2019 | 543 | 543 | 14,878 | ||
2019/2018 | 6,935 | 6,935 | 512 | ||
Prior | 13,039 | 13,039 | 11,398 | ||
Revolving Loans Amortized Cost Basis | 12,483 | 12,483 | 675 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 84,269 | 84,269 | 28,188 | ||
Commercial real estate | Substandard | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2022/2021 | 5,110 | 5,110 | |||
2021/2020 | 2,004 | 2,004 | 173 | ||
2020/2019 | 170 | 170 | |||
2019/2018 | 1,704 | ||||
Prior | 2,599 | 2,599 | 14,485 | ||
Revolving Loans Amortized Cost Basis | 300 | 300 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 10,183 | 10,183 | 16,362 | ||
Commercial real estate | Other Indicator | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
Prior | 145 | 145 | 151 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 145 | 145 | 151 | ||
Construction | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 139,354 | 139,354 | 154,158 | ||
2022/2021 | 234,052 | 234,052 | 282,875 | ||
2021/2020 | 345,746 | 345,746 | 101,109 | ||
2020/2019 | 61,424 | 61,424 | 99,422 | ||
2019/2018 | 66,480 | 66,480 | 92,778 | ||
Prior | 33,517 | 33,517 | 87,390 | ||
Revolving Loans Amortized Cost Basis | 4,539 | 4,539 | 26,911 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 885,112 | 885,112 | 844,643 | ||
Construction | Pass | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 129,160 | 129,160 | 124,464 | ||
2022/2021 | 209,227 | 209,227 | 261,536 | ||
2021/2020 | 335,433 | 335,433 | 96,423 | ||
2020/2019 | 59,164 | 59,164 | 97,000 | ||
2019/2018 | 64,168 | 64,168 | 88,973 | ||
Prior | 28,916 | 28,916 | 84,704 | ||
Revolving Loans Amortized Cost Basis | 3,826 | 3,826 | 25,957 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 829,894 | 829,894 | 779,057 | ||
Construction | Special mention | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2020/2019 | 221 | ||||
2019/2018 | 197 | 197 | |||
Prior | 669 | 669 | |||
Financing Receivable, before Allowance for Credit Loss, Total | 866 | 866 | 221 | ||
Construction | Substandard | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2019/2018 | 21 | ||||
Prior | 490 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 511 | ||||
Construction | Other Indicator | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 10,194 | 10,194 | 29,694 | ||
2022/2021 | 24,825 | 24,825 | 21,339 | ||
2021/2020 | 10,313 | 10,313 | 4,686 | ||
2020/2019 | 2,260 | 2,260 | 2,201 | ||
2019/2018 | 2,115 | 2,115 | 3,784 | ||
Prior | 3,932 | 3,932 | 2,196 | ||
Revolving Loans Amortized Cost Basis | 713 | 713 | 954 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 54,352 | 54,352 | 64,854 | ||
Lease financing | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 84,002 | 84,002 | 113,563 | ||
2022/2021 | 88,807 | 88,807 | 24,463 | ||
2021/2020 | 20,210 | 20,210 | 46,192 | ||
2020/2019 | 35,621 | 35,621 | 38,813 | ||
2019/2018 | 34,832 | 34,832 | 6,015 | ||
Prior | 69,043 | 69,043 | 69,044 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 332,515 | 332,515 | 298,090 | ||
Lease financing | Pass | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 83,255 | 83,255 | 113,563 | ||
2022/2021 | 88,367 | 88,367 | 24,052 | ||
2021/2020 | 19,869 | 19,869 | 43,497 | ||
2020/2019 | 35,583 | 35,583 | 37,502 | ||
2019/2018 | 34,828 | 34,828 | 6,004 | ||
Prior | 69,043 | 69,043 | 67,687 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 330,945 | 330,945 | 292,305 | ||
Lease financing | Special mention | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2022/2021 | 411 | ||||
2021/2020 | 341 | 341 | 2,498 | ||
2020/2019 | 38 | 38 | 1,299 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 379 | 379 | 4,208 | ||
Lease financing | Substandard | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 747 | 747 | |||
2022/2021 | 440 | 440 | |||
2021/2020 | 197 | ||||
2020/2019 | 12 | ||||
2019/2018 | 4 | 4 | 11 | ||
Prior | 1,357 | ||||
Financing Receivable, before Allowance for Credit Loss, Total | 1,191 | 1,191 | 1,577 | ||
Commercial Lending | |||||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||||
2023/2022 | 583,392 | 583,392 | 1,537,718 | ||
2022/2021 | 1,555,670 | 1,555,670 | 1,434,037 | ||
2021/2020 | 1,448,687 | 1,448,687 | 529,340 | ||
2020/2019 | 467,457 | 467,457 | 896,622 | ||
2019/2018 | 822,919 | 822,919 | 550,692 | ||
Prior | 1,778,086 | 1,778,086 | 1,496,371 | ||
Revolving Loans Amortized Cost Basis | 1,047,095 | 1,047,095 | 1,050,001 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 3,514 | 3,514 | 16,158 | ||
Financing Receivable, before Allowance for Credit Loss, Total | $ 7,706,820 | 7,706,820 | $ 7,510,939 | ||
Current period gross charge-offs: | |||||
2023, Current period gross charge-offs | 130 | ||||
2022, Current period gross charge-offs | 69 | ||||
2021, Current period gross charge-offs | 74 | ||||
2020, Current period gross charge-offs | 28 | ||||
2019, Current period gross charge-offs | 108 | ||||
Prior, Current period gross charge-offs | 2,163 | ||||
Total, Current period gross charge-offs | $ 2,572 |
Allowance for Credit Losses - P
Allowance for Credit Losses - Past-Due Status (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | $ 14,332,335 | $ 14,092,012 |
Loans and Leases Past Due 90 Days or More and Still Accruing Interest | 3,570 | 3,234 |
30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 34,296 | 46,065 |
60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 5,878 | 10,934 |
90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 13,023 | 9,698 |
Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 53,197 | 66,697 |
Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 14,279,138 | 14,025,315 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 2,101,442 | 2,235,897 |
Loans and Leases Past Due 90 Days or More and Still Accruing Interest | 289 | 291 |
Commercial and Industrial | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 3,989 | 2,682 |
Commercial and Industrial | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 673 | 769 |
Commercial and Industrial | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,277 | 1,441 |
Commercial and Industrial | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 5,939 | 4,892 |
Commercial and Industrial | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 2,095,503 | 2,231,005 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 4,387,751 | 4,132,309 |
Loans and Leases Past Due 90 Days or More and Still Accruing Interest | 170 | |
Commercial real estate | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 4,505 | |
Commercial real estate | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 300 | |
Commercial real estate | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 170 | 727 |
Commercial real estate | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 470 | 5,232 |
Commercial real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 4,387,281 | 4,127,077 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 885,112 | 844,643 |
Construction | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 109 | |
Construction | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 109 | |
Construction | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 885,112 | 844,534 |
Lease financing | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 332,515 | 298,090 |
Lease financing | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 332,515 | 298,090 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 4,303,924 | 4,302,788 |
Loans and Leases Past Due 90 Days or More and Still Accruing Interest | 1,430 | 58 |
Residential mortgage | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 3,239 | 3,681 |
Residential mortgage | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,983 | |
Residential mortgage | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 6,575 | 2,572 |
Residential mortgage | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 9,814 | 8,236 |
Residential mortgage | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 4,294,110 | 4,294,552 |
Home equity Line | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,167,388 | 1,055,351 |
Home equity Line | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 6,741 | 5,161 |
Home equity Line | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 938 | 1,381 |
Home equity Line | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 3,320 | 2,072 |
Home equity Line | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 10,999 | 8,614 |
Home equity Line | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,156,389 | 1,046,737 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,154,203 | 1,222,934 |
Loans and Leases Past Due 90 Days or More and Still Accruing Interest | 1,681 | 2,885 |
Consumer | 30 - 59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 20,327 | 29,927 |
Consumer | 60 - 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 3,967 | 6,801 |
Consumer | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,681 | 2,886 |
Consumer | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 25,975 | 39,614 |
Consumer | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 1,128,228 | 1,183,320 |
Residential Lending: Residential Mortgage | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | 4,302,788 | |
Home equity line | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | $ 1,055,351 | |
Home equity line | Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loans and leases | $ 1,167,388 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Nonaccrual Loans and Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Nonaccrual [Line Items] | |||||
Nonaccrual Loans and Leases With No Allowance for Credit Losses | $ 3,773 | $ 3,773 | $ 3,548 | ||
Nonaccrual Loans and Leases | 14,623 | 14,623 | 11,905 | ||
Interest income recognized on nonaccrual loans and leases | 100 | $ 100 | 400 | $ 200 | |
Accrued interest receivables written off, Interest income reversed | 200 | $ 300 | 700 | $ 700 | |
Commercial and Industrial | |||||
Financing Receivable, Nonaccrual [Line Items] | |||||
Nonaccrual Loans and Leases With No Allowance for Credit Losses | 503 | 503 | 665 | ||
Nonaccrual Loans and Leases | 988 | 988 | 1,215 | ||
Commercial real estate | |||||
Financing Receivable, Nonaccrual [Line Items] | |||||
Nonaccrual Loans and Leases With No Allowance for Credit Losses | 727 | ||||
Nonaccrual Loans and Leases | 727 | ||||
Residential mortgage | |||||
Financing Receivable, Nonaccrual [Line Items] | |||||
Nonaccrual Loans and Leases With No Allowance for Credit Losses | 2,674 | 2,674 | 1,560 | ||
Nonaccrual Loans and Leases | 7,435 | 7,435 | 6,166 | ||
Home equity Line | |||||
Financing Receivable, Nonaccrual [Line Items] | |||||
Nonaccrual Loans and Leases With No Allowance for Credit Losses | 596 | 596 | 596 | ||
Nonaccrual Loans and Leases | $ 6,200 | $ 6,200 | $ 3,797 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Collateral-Dependent Loans and Leases (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Residential Real Estate [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Amortized cost basis of collateral-dependent loans | $ 7.5 | $ 8.2 |
Allowance for Credit Losses - L
Allowance for Credit Losses - Loan Modified to Borrowers Experiencing Financial Difficulty (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | $ 3,411 | ||
Amortized Cost Basis of Modified Loans That Subsequently Defaulted | 186 | ||
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit | $ 7,000,000 | 7,000,000 | $ 7,000,000 |
Commitments related to borrowers experiencing financial difficulty | $ 100 | ||
30 - 59 Days Past Due | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 62 | ||
60 - 89 Days Past Due | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 18 | ||
90 Days or Greater Past Due | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 18 | ||
Total Past Due | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 98 | ||
Current | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 3,313 | ||
Commercial and Industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 248 | ||
Commercial and Industrial | Current | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 248 | ||
Construction | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 897 | ||
Construction | Current | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 897 | ||
Commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 1,214 | ||
Commercial real estate | Current | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 1,214 | ||
Residential mortgage | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 33 | ||
Residential mortgage | Current | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 33 | ||
Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 1,019 | ||
Amortized Cost Basis of Modified Loans That Subsequently Defaulted | 186 | ||
Consumer | 30 - 59 Days Past Due | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 62 | ||
Consumer | 60 - 89 Days Past Due | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 18 | ||
Consumer | 90 Days or Greater Past Due | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 18 | ||
Consumer | Total Past Due | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 98 | ||
Consumer | Current | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 921 | ||
Interest Rate Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | 255 | $ 889 | |
% of Total Class of Financing Receivable | 0.01% | ||
Amortized Cost Basis of Modified Loans That Subsequently Defaulted | 166 | ||
Interest Rate Reduction | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | $ 255 | $ 889 | |
% of Total Class of Financing Receivable | 0.02% | 0.08% | |
Reduced weighted-average contractual interest rate | 13.31% | 13.22% | |
Amortized Cost Basis of Modified Loans That Subsequently Defaulted | $ 166 | ||
Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | $ 831 | $ 2,522 | |
% of Total Class of Financing Receivable | 0.01% | 0.02% | |
Term Extension | Commercial and Industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | $ 145 | $ 248 | |
% of Total Class of Financing Receivable | 0.01% | 0.01% | |
Added weighted-average years to the life of loans | 2 years 7 months 6 days | 3 years | |
Term Extension | Construction | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | $ 669 | $ 897 | |
% of Total Class of Financing Receivable | 0.08% | 0.10% | |
Added weighted-average years to the life of loans | 1 year | 1 year 4 months 24 days | |
Term Extension | Commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | $ 1,214 | ||
% of Total Class of Financing Receivable | 0.03% | ||
Added weighted-average years to the life of loans | 0 years | 1 year | |
Term Extension | Residential mortgage | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | $ 33 | ||
Added weighted-average years to the life of loans | 0 years | 3 years 7 months 6 days | |
Term Extension | Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Amortized Cost Basis | $ 17 | $ 130 | |
% of Total Class of Financing Receivable | 0.01% | ||
Combination - Interest Rate Reduction and Term Extension | |||
Financing Receivable, Modifications [Line Items] | |||
Commitments related to borrowers experiencing financial difficulty | $ 5,000 | $ 5,000 |
Allowance for Credit Losses - T
Allowance for Credit Losses - Troubled Debt Restructuring Disclosures Prior to Adoption of ASU 2022-02 (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 USD ($) item contract | Sep. 30, 2022 USD ($) contract | Dec. 31, 2022 USD ($) loan | Sep. 30, 2023 USD ($) | |
Troubled debt restructuring modifications | ||||
Number of Contracts | contract | 52 | 237 | ||
Recorded Investment | $ 588 | $ 2,739 | ||
Related ACL | $ 118 | $ 460 | ||
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit | $ 7,000,000 | $ 7,000,000 | ||
Commitments related to borrowers experiencing financial difficulty | $ 100 | |||
Loans modified in TDRs that experienced a payment default | ||||
Number of Contracts, Defaulted TDRs | 124 | 221 | ||
Recorded Investment, Defaulted TDRs | $ 1,777 | $ 3,480 | ||
Commercial and Industrial | ||||
Troubled debt restructuring modifications | ||||
Number of Contracts | contract | 2 | 2 | ||
Recorded Investment | $ 201 | $ 201 | ||
Related ACL | $ 4 | $ 4 | ||
Loans modified in TDRs that experienced a payment default | ||||
Number of Contracts, Defaulted TDRs | 1 | 2 | ||
Recorded Investment, Defaulted TDRs | $ 216 | $ 541 | ||
Residential mortgage | ||||
Troubled debt restructuring modifications | ||||
Number of Contracts | contract | 1 | |||
Recorded Investment | $ 252 | |||
Related ACL | $ 32 | |||
Consumer | ||||
Troubled debt restructuring modifications | ||||
Number of Contracts | contract | 50 | 234 | ||
Recorded Investment | $ 387 | $ 2,286 | ||
Related ACL | $ 114 | $ 424 | ||
Loans modified in TDRs that experienced a payment default | ||||
Number of Contracts, Defaulted TDRs | 123 | 219 | ||
Recorded Investment, Defaulted TDRs | $ 1,561 | $ 2,939 | ||
Other real estate owned and repossessed personal property | ||||
Loans modified in TDRs that experienced a payment default | ||||
Number of foreclosed properties | loan | 1 | |||
Real estate property held from a foreclosed TDR | $ 100 | $ 0 |
Mortgage Servicing Rights - Est
Mortgage Servicing Rights - Estimated Future Amortization Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Other Intangible Assets | |||||
Unpaid principal amount of consumer loans serviced for others | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | ||
Contractually specified fees, late charges, and ancillary fees | 800 | $ 900 | 2,600 | $ 2,900 | |
Amortization of mortgage servicing rights | 282 | $ 333 | 840 | $ 1,587 | |
Details of MSRs | |||||
Gross carrying amount | 69,406 | 69,406 | 69,273 | ||
Less: accumulated amortization | 63,551 | 63,551 | 62,711 | ||
Net carrying value | 5,855 | 5,855 | $ 6,562 | ||
Mortgage servicing assets | |||||
Estimated future amortization expenses for MSRs over the next five years | |||||
Under one year | 852 | 852 | |||
One to two years | 757 | 757 | |||
Two to three years | 671 | 671 | |||
Three to four years | 592 | 592 | |||
Four to five years | $ 523 | $ 523 |
Mortgage Servicing Rights - Cha
Mortgage Servicing Rights - Changes in Amortized MSRs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Changes in amortized mortgage servicing rights | ||||
Balance at beginning of year | $ 6,072 | $ 7,152 | $ 6,562 | $ 8,302 |
Originations | 65 | 47 | 133 | 151 |
Amortization | (282) | (333) | (840) | (1,587) |
Balance at end of year | 5,855 | 6,866 | 5,855 | 6,866 |
Fair value of amortized MSRs at beginning of period | 14,557 | 14,969 | 15,193 | 12,243 |
Fair value of amortized MSRs at end of period | 14,520 | 14,945 | 14,520 | 14,945 |
Impairment of MSRs recorded | $ 0 | $ 0 | $ 0 | $ 0 |
Mortgage Servicing Rights - Qua
Mortgage Servicing Rights - Quantitative Assumptions Used for MSRs (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Minimum | ||
Quantitative assumptions used in determining lower of cost or fair value of MSRs | ||
Conditional prepayment rate (as a percent) | 6.89% | 7.02% |
Life in years (of the MSR) | 4 years 3 months 3 days | 3 years 4 months 6 days |
Weighted-average coupon rate (as a percent) | 3.57% | 3.55% |
Discount rate (as a percent) | 10.36% | 10.41% |
Maximum | ||
Quantitative assumptions used in determining lower of cost or fair value of MSRs | ||
Conditional prepayment rate (as a percent) | 11.27% | 13.58% |
Life in years (of the MSR) | 7 years 3 months | 7 years 4 months 13 days |
Weighted-average coupon rate (as a percent) | 5.84% | 6.24% |
Discount rate (as a percent) | 10.55% | 10.54% |
Weighted Average | ||
Quantitative assumptions used in determining lower of cost or fair value of MSRs | ||
Conditional prepayment rate (as a percent) | 7.02% | 7.11% |
Life in years (of the MSR) | 7 years 1 month 9 days | 7 years 2 months 12 days |
Weighted-average coupon rate (as a percent) | 3.70% | 3.68% |
Discount rate (as a percent) | 10.52% | 10.51% |
Transfers of Financial Assets -
Transfers of Financial Assets - Carrying Amounts of Assets Pledged as Collateral, Borrowings and Other Transactions (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
In-substance debt defeasance | $ 0 | $ 0 |
Carrying amounts of the assets pledged as collateral | ||
Securities for reverse repurchase agreements | 0 | 0 |
Asset Pledged as Collateral | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Investment securities pledged as collateral | 6,300,000 | 3,200,000 |
Assets pledged as collateral | 13,267,247 | 8,297,830 |
Asset Pledged as Collateral | Public deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Investment securities pledged as collateral | 3,500,000 | 3,000,000 |
Public deposits | Asset Pledged as Collateral with Right [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Investment securities pledged as collateral | 3,511,412 | 2,977,693 |
Federal Home Loan Bank Advances [Member] | Asset Pledged as Collateral | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Assets pledged as collateral | 4,817,865 | 3,451,070 |
Federal Reserve Bank Advances [Member] | Asset Pledged as Collateral | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Assets pledged as collateral | 4,801,873 | 1,704,803 |
ACH transactions | Asset Pledged as Collateral without Right [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Assets pledged as collateral | 135,512 | 133,173 |
Interest rate swaps | Asset Pledged as Collateral without Right [Member] | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Assets pledged as collateral | $ 585 | $ 31,091 |
Deposits - Interest-bearing or
Deposits - Interest-bearing or Noninterest-bearing (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
U.S.: | ||
Interest-bearing | $ 12,667,072 | $ 11,936,775 |
Noninterest-bearing | 6,931,032 | 7,978,046 |
Foreign: | ||
Interest-bearing | 945,421 | 887,608 |
Noninterest-bearing | 967,964 | 886,600 |
Total deposits | $ 21,511,489 | $ 21,689,029 |
Deposits - Maturity Distributio
Deposits - Maturity Distribution of Time Certificates of Deposits (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Maturity distribution of time certificates of deposit | |
Three months or less | $ 1,296,921 |
Over three through six months | 808,594 |
Over six through twelve months | 1,281,193 |
One to two years | 172,488 |
Two to three years | 48,735 |
Three to four years | 31,777 |
Four to five years | 20,464 |
Thereafter | 959 |
Total | 3,661,131 |
Under $250,000 | |
Maturity distribution of time certificates of deposit | |
Three months or less | 202,932 |
Over three through six months | 268,176 |
Over six through twelve months | 785,036 |
One to two years | 114,912 |
Two to three years | 41,313 |
Three to four years | 26,248 |
Four to five years | 17,012 |
Thereafter | 313 |
Total | 1,455,942 |
$250,000 or More | |
Maturity distribution of time certificates of deposit | |
Three months or less | 1,093,989 |
Over three through six months | 540,418 |
Over six through twelve months | 496,157 |
One to two years | 57,576 |
Two to three years | 7,422 |
Three to four years | 5,529 |
Four to five years | 3,452 |
Thereafter | 646 |
Total | $ 2,205,189 |
Deposits - Time Certificate Den
Deposits - Time Certificate Denominations and Overdrawn Accounts (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Deposits | ||
Time certificates of deposit in denominations of $250,000 or more, in the aggregate | $ 2,200 | $ 1,500 |
Overdrawn deposit accounts classified as loans | $ 2 | $ 2.5 |
Short-Term Borrowings - Compone
Short-Term Borrowings - Components and Selected Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Short-term borrowings | |||
Short-term borrowings | $ 500,000 | $ 75,000 | |
Short-term FHLB fixed-rate advances: | |||
Short-term borrowings | |||
Borrowing capacity | 2,800,000 | 2,500,000 | |
Federal Reserve Bank Advances [Member] | |||
Short-term borrowings | |||
Borrowing capacity | 3,800,000 | 1,200,000 | |
Federal funds purchased: | |||
Short-term borrowings | |||
Short-term borrowings | $ 75,000 | ||
Annual interest rate | 4.35% | ||
Highest month-end balance | 150,000 | ||
Average outstanding balance | $ 23,059 | $ 55 | |
Weighted-average interest rate paid (as a percent) | 4.45% | 1.67% | |
Short-term FHLB repo advance: | |||
Short-term borrowings | |||
Highest month-end balance | $ 400,000 | ||
Average outstanding balance | $ 156,319 | ||
Weighted-average interest rate paid (as a percent) | 5.25% | ||
Short-term FHLB fixed-rate advances: | |||
Short-term borrowings | |||
Short-term borrowings | $ 500,000 | ||
Weighted-average interest rate (as a percent) | 4.71% | ||
Highest month-end balance | $ 500,000 | ||
Average outstanding balance | $ 20,147 | ||
Weighted-average interest rate paid (as a percent) | 4.34% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pre-tax Amount | ||||
Other comprehensive loss, Pre-tax Amount | $ (49,090) | $ (119,057) | $ (12,924) | $ (732,442) |
Income Tax Benefit (Expense) | ||||
Other comprehensive loss, Income Tax Benefit (Expense) | 13,095 | 31,758 | 3,447 | 195,379 |
Net of tax | ||||
Balance | 2,359,738 | 2,252,611 | 2,269,005 | 2,656,912 |
Other comprehensive loss | (35,995) | (87,299) | (9,477) | (537,063) |
Balance | 2,351,009 | 2,200,651 | 2,351,009 | 2,200,651 |
Accumulated other comprehensive loss | ||||
Pre-tax Amount | ||||
Accumulated other comprehensive loss, beginning balance, Pre-tax Amount | (835,647) | (779,352) | (871,813) | (165,967) |
Accumulated other comprehensive loss, ending balance, Pre-tax Amount | (884,737) | (898,409) | (884,737) | (898,409) |
Income Tax Benefit (Expense) | ||||
Accumulated other comprehensive loss, beginning balance, Income Tax Benefit (Expense) | 222,911 | 207,895 | 232,559 | 44,274 |
Accumulated other comprehensive loss, ending balance, Income Tax Benefit (Expense) | 236,006 | 239,653 | 236,006 | 239,653 |
Net of tax | ||||
Balance | (612,736) | (571,457) | (639,254) | (121,693) |
Other comprehensive loss | (35,995) | (87,299) | (9,477) | (537,063) |
Balance | (648,731) | (658,756) | (648,731) | (658,756) |
Pensions and Other Benefits | ||||
Net of tax | ||||
Balance | (5,431) | (24,390) | (5,431) | (24,390) |
Balance | (5,431) | (24,390) | (5,431) | (24,390) |
Investment securities | ||||
Pre-tax Amount | ||||
Unrealized net losses arising during the period, Pre-tax Amount | (61,874) | (130,000) | (50,861) | (759,437) |
Reclassification of net losses (gains) to net income, Pre-tax Amount | 11,434 | 15,217 | 36,206 | 35,146 |
Other comprehensive loss, Pre-tax Amount | (50,440) | (114,783) | (14,655) | (724,291) |
Income Tax Benefit (Expense) | ||||
Unrealized net losses arising during the period, Income Tax Benefit (Expense) | 16,505 | 34,677 | 13,567 | 202,580 |
Reclassification of net (losses) gains to net income, Income Tax Benefit (Expense) | (3,050) | (4,058) | (9,658) | (9,375) |
Other comprehensive loss, Income Tax Benefit (Expense) | 13,455 | 30,619 | 3,909 | 193,205 |
Net of tax | ||||
Unrealized net losses arising during the period, Net of tax | (45,369) | (95,323) | (37,294) | (556,857) |
Reclassification of net losses to net income, Net of tax | 8,384 | 11,159 | 26,548 | 25,771 |
Other comprehensive loss | (36,985) | (84,164) | (10,746) | (531,086) |
Cash Flow Derivative Hedges | ||||
Pre-tax Amount | ||||
Unrealized net losses arising during the period, Pre-tax Amount | (373) | (4,372) | (2,868) | (7,611) |
Reclassification of net losses (gains) to net income, Pre-tax Amount | 1,723 | 98 | 4,599 | (540) |
Other comprehensive loss, Pre-tax Amount | 1,350 | (4,274) | 1,731 | (8,151) |
Income Tax Benefit (Expense) | ||||
Unrealized net losses arising during the period, Income Tax Benefit (Expense) | 100 | 1,165 | 765 | 2,030 |
Reclassification of net (losses) gains to net income, Income Tax Benefit (Expense) | (460) | (26) | (1,227) | 144 |
Other comprehensive loss, Income Tax Benefit (Expense) | (360) | 1,139 | (462) | 2,174 |
Net of tax | ||||
Balance | (4,423) | (2,842) | (4,702) | |
Unrealized net losses arising during the period, Net of tax | (273) | (3,207) | (2,103) | (5,581) |
Reclassification of net losses to net income, Net of tax | 1,263 | 72 | 3,372 | (396) |
Other comprehensive loss | 990 | (3,135) | 1,269 | (5,977) |
Balance | $ (3,433) | $ (5,977) | $ (3,433) | $ (5,977) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Net of tax | |||||
Balance | $ 2,359,738 | $ 2,252,611 | $ 2,269,005 | $ 2,656,912 | $ 2,656,912 |
Unrealized net losses related to the transfer of securities from available-for-sale to held-to-maturity | (372,400) | ||||
Other comprehensive (loss) income | (35,995) | (87,299) | (9,477) | (537,063) | |
Balance | 2,351,009 | 2,200,651 | 2,351,009 | 2,200,651 | 2,269,005 |
Accumulated other comprehensive loss | |||||
Net of tax | |||||
Balance | (612,736) | (571,457) | (639,254) | (121,693) | (121,693) |
Other comprehensive (loss) income | (35,995) | (87,299) | (9,477) | (537,063) | |
Balance | (648,731) | (658,756) | (648,731) | (658,756) | (639,254) |
Pensions and Other Benefits | |||||
Net of tax | |||||
Balance | (5,431) | (24,390) | (5,431) | (24,390) | (24,390) |
Balance | (5,431) | (24,390) | (5,431) | (24,390) | (5,431) |
Investment securities | |||||
Net of tax | |||||
Other comprehensive (loss) income | (36,985) | (84,164) | (10,746) | (531,086) | |
Available-for-sale Investment securities | |||||
Net of tax | |||||
Balance | (284,100) | (220,021) | (292,175) | (97,303) | (97,303) |
Unrealized net losses related to the transfer of securities from available-for-sale to held-to-maturity | 33,603 | 372,419 | |||
Other comprehensive (loss) income | (45,369) | (95,323) | (37,294) | (556,857) | |
Balance | (329,469) | (281,741) | (329,469) | (281,741) | (292,175) |
Held-to-Maturity Investment Securities | |||||
Net of tax | |||||
Balance | (318,782) | (324,204) | (336,946) | ||
Unrealized net losses related to the transfer of securities from available-for-sale to held-to-maturity | (33,603) | (372,419) | |||
Other comprehensive (loss) income | 8,384 | 11,159 | 26,548 | 25,771 | |
Balance | (310,398) | (346,648) | (310,398) | (346,648) | (336,946) |
Cash Flow Derivative Hedges | |||||
Net of tax | |||||
Balance | (4,423) | (2,842) | (4,702) | ||
Other comprehensive (loss) income | 990 | (3,135) | 1,269 | (5,977) | |
Balance | $ (3,433) | $ (5,977) | $ (3,433) | $ (5,977) | $ (4,702) |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Common equity tier 1 capital to risk-weighted assets | ||
Amount | $ 2,004,248 | $ 1,912,767 |
Ratio (as a percent) | 0.1221 | 0.1182 |
Minimum Capital Ratio (as a percent) | 0.0450 | 0.0450 |
Well-Capitalized Ratio (as a percent) | 0.0650 | 0.0650 |
Tier 1 capital to risk-weighted assets | ||
Amount | $ 2,004,248 | $ 1,912,767 |
Ratio (as a percent) | 0.1221 | 0.1182 |
Minimum Capital Ratio (as a percent) | 0.0600 | 0.0600 |
Well-Capitalized Ratio (percent) | 0.0800 | 0.0800 |
Total capital to risk-weighted assets | ||
Amount | $ 2,196,818 | $ 2,090,502 |
Ratio (as a percent) | 0.1338 | 0.1292 |
Minimum Capital Ratio (as a percent) | 0.0800 | 0.0800 |
Well-Capitalized Ratio (as a percent) | 0.1000 | 0.1000 |
Tier 1 capital to average assets (leverage ratio) | ||
Amount | $ 2,004,248 | $ 1,912,767 |
Ratio | 0.0845 | 0.0811 |
Minimum Capital Ratio (as a percent) | 0.0400 | 0.0400 |
Well-Capitalized Ratio (percent) | 0.0500 | 0.0500 |
First Hawaiian Bank (FHB) | ||
Common equity tier 1 capital to risk-weighted assets | ||
Amount | $ 1,990,261 | $ 1,895,693 |
Ratio (as a percent) | 0.1212 | 0.1171 |
Tier 1 capital to risk-weighted assets | ||
Amount | $ 1,990,261 | $ 1,895,693 |
Ratio (as a percent) | 0.1212 | 0.1171 |
Total capital to risk-weighted assets | ||
Amount | $ 2,182,831 | $ 2,073,428 |
Ratio (as a percent) | 0.1330 | 0.1281 |
Tier 1 capital to average assets (leverage ratio) | ||
Amount | $ 1,990,261 | $ 1,895,693 |
Ratio | 0.0839 | 0.0804 |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements - Capital Conservation Buffer (Details) | Sep. 30, 2023 | Dec. 31, 2022 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Effective CET1 capital to risk-weighted assets (as a percent) | 0.1221 | 0.1182 |
Effective Tier 1 capital to risk-weighted assets (as a percent) | 0.1221 | 0.1182 |
Effective total capital to risk-weighted assets (as a percent) | 0.1338 | 0.1292 |
Capital conservation buffer | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Effective CET1 capital to risk-weighted assets (as a percent) | 0.07 | |
Effective Tier 1 capital to risk-weighted assets (as a percent) | 0.085 | |
Effective total capital to risk-weighted assets (as a percent) | 0.105 | |
Capital requirements above regulatory rate (as a percent) | 0.025 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Notional Amounts and Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Notional amounts and fair values of derivatives | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | |
Derivatives designated as hedging instruments | Interest rate swaps | ||
Notional amounts and fair values of derivatives | ||
Notional Amount | $ 267,500 | $ 267,500 |
Asset Derivatives | 9,829 | 7,276 |
Liability Derivatives | (3,731) | (6,840) |
Derivatives designated as hedging instruments | Interest rate collars | ||
Notional amounts and fair values of derivatives | ||
Notional Amount | 200,000 | 200,000 |
Asset Derivatives | 491 | |
Liability Derivatives | (951) | (63) |
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | ||
Notional amounts and fair values of derivatives | ||
Notional Amount | 2,811,284 | 2,849,776 |
Asset Derivatives | 3,073 | 3,178 |
Liability Derivatives | (1,198) | (42,365) |
Derivatives Not Designated as Hedging Instruments | Visa Derivative | ||
Notional amounts and fair values of derivatives | ||
Notional Amount | 102,587 | 121,013 |
Liability Derivatives | (1,200) | (851) |
Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Notional amounts and fair values of derivatives | ||
Notional Amount | $ 191 | $ 210 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Clearinghouse Margin and Collateral (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative contracts | ||
Initial margin cash collateral posted | $ 0.6 | $ 1.2 |
Interest rate swaps | ||
Derivative contracts | ||
Financial instruments pledged as collateral | 29.9 | |
Cash pledged as collateral | 0.6 | 1.2 |
Received cash as collateral | 49.1 | 48.1 |
Securities received as collateral | 68.5 | 0 |
Chicago Mercantile Exchange (CME) and London Clearing House (LCH) | ||
Derivative contracts | ||
Variation margin | $ 1.9 | $ 39.2 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Value Hedges and Cash Flow Hedges (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) derivative | Dec. 31, 2022 USD ($) derivative | |
Other comprehensive income (loss) | ||
Fair hedges carried | ||
Accumulated other comprehensive income (loss) into earnings | $ 3,700 | $ 3,700 |
Hedge term | 4 years | 4 years |
Derivatives designated as hedging instruments | Interest rate swaps | ||
Fair hedges carried | ||
Notional amounts | $ 267,500 | $ 267,500 |
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 | $ 9,800 | $ 7,300 |
Fixed interest rate (as a percent) | 2.07% | 2.07% |
Derivatives designated as hedging instruments | Interest rate swaps | Cash Flow Hedges | ||
Fair hedges carried | ||
Number of derivatives carried | derivative | 2 | 2 |
Notional amounts | $ 200,000 | $ 200,000 |
Negative fair value | $ 3,700 | $ 6,800 |
Derivatives designated as hedging instruments | Interest rate swaps | Cash Flow Hedges | Minimum | ||
Fair hedges carried | ||
Fixed interest rate (as a percent) | 1.70% | 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% | 2.08% |
Derivatives designated as hedging instruments | Interest Rate Collar [Member] | ||
Fair hedges carried | ||
Notional amounts | $ 200,000 | $ 200,000 |
Derivatives designated as hedging instruments | Interest Rate Collar [Member] | Cash Flow Hedges | ||
Fair hedges carried | ||
Number of derivatives carried | derivative | 2 | 2 |
Notional amounts | $ 200,000 | $ 200,000 |
Positive fair value | 500 | |
Negative fair value | $ 1,000 | $ 100 |
Floor strike rates | 2% | 2% |
Derivatives designated as hedging instruments | Interest Rate Collar [Member] | Cash Flow Hedges | Minimum | ||
Fair hedges carried | ||
Cap strike rates | 5.31% | 5.31% |
Derivatives designated as hedging instruments | Interest Rate Collar [Member] | Cash Flow Hedges | Maximum | ||
Fair hedges carried | ||
Cap strike rates | 5.64% | 5.64% |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest rate swaps | ||||
Gains and losses related to derivatives | ||||
Recognized on interest rate swap | $ 2,159 | $ 745 | $ 2,553 | $ 6,888 |
Hedged item | ||||
Gains and losses related to derivatives | ||||
Recognized on hedged item | $ (2,256) | $ (839) | $ (2,833) | $ (7,185) |
Derivative Financial Instrume_7
Derivative Financial Instruments - Amounts Recorded in Balance Sheets Related to Cumulative Basis Adjustments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Financial Instruments | ||
Carrying Amount of the Hedged Asset | $ 57,627 | $ 60,189 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset | $ (9,873) | $ (7,311) |
Derivative Financial Instrume_8
Derivative Financial Instruments - Derivatives Not Designated as Hedges (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Impact on pretax earnings of derivatives not designated as hedges | ||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Noninterest Income, Other Operating Income | Noninterest Income, Other Operating Income | Noninterest Income, Other Operating Income | Noninterest Income, Other Operating Income |
Interest rate swaps | ||||
Impact on pretax earnings of derivatives not designated as hedges | ||||
Net Gains (Losses) on Derivatives Not Designated As Hedging Instruments | $ 26 | $ (532) | ||
Visa Derivative | ||||
Impact on pretax earnings of derivatives not designated as hedges | ||||
Net Gains (Losses) on Derivatives Not Designated As Hedging Instruments | $ (1,350) | $ 273 | $ (5,129) | $ (1,084) |
Derivative Financial Instrume_9
Derivative Financial Instruments - Cash Flow Hedges (Details) - Derivatives designated as hedging instruments - Interest rate swaps and collars - Cash Flow Hedges - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative financial instruments | ||||
Pretax net losses (gains) reclassified from accumulated other comprehensive income to interest income from loans and lease financing | $ 1,723 | $ 98 | $ 4,599 | $ (540) |
Other comprehensive income (loss) | ||||
Derivative financial instruments | ||||
Pretax net losses recognized in other comprehensive income on cash flow derivative hedges | $ (373) | $ (4,372) | $ (2,868) | $ (7,611) |
Derivative Financial Instrum_10
Derivative Financial Instruments - Free-Standing (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Minimum | |||||
Derivative financial instruments | |||||
Derivative, Floating rate | 4.62% | ||||
Maximum | |||||
Derivative financial instruments | |||||
Derivative, Floating rate | 7.12% | ||||
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | |||||
Derivative financial instruments | |||||
Notional Amount | $ 2,811,284,000 | $ 2,811,284,000 | $ 2,849,776,000 | ||
Positive fair value, derivative asset | 3,073,000 | 3,073,000 | 3,178,000 | ||
Negative fair value, derivative liability | 1,198,000 | 1,198,000 | $ 42,365,000 | ||
Net interest expense | $ 0 | $ 0 | $ 0 | $ 0 | |
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Minimum | |||||
Derivative financial instruments | |||||
Derivative, Floating rate | 5.82% | 5.82% | |||
Fixed interest rate (as a percent) | 2.39% | 2.39% | 2.39% | ||
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Maximum | |||||
Derivative financial instruments | |||||
Derivative, Floating rate | 8.33% | 8.33% | |||
Fixed interest rate (as a percent) | 5.86% | 5.86% | 6.13% | ||
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Customer swap program | |||||
Derivative financial instruments | |||||
Notional Amount | $ 2,800,000,000 | $ 2,800,000,000 | $ 2,800,000,000 | ||
Positive fair value, derivative asset | 3,100,000 | 3,100,000 | 3,200,000 | ||
Negative fair value, derivative liability | 1,200,000 | 1,200,000 | $ 42,400,000 | ||
Upfront fees on the dealer swap | $ 0 | $ 400,000 | $ 1,500,000 | $ 1,800,000 |
Derivative Financial Instrum_11
Derivative Financial Instruments - Counterparty Credit Risk and Credit-Risk Related Contingent Features (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative contracts | ||||
Counterparty credit risk adjustments | $ 0 | $ 0 | $ 0 | $ 100,000 |
Credit-risk-related contingent features | ||||
Aggregate fair value of derivative instruments in a net liability position | 0 | 0 | ||
Collateral posted for derivatives in a net liability position | 0 | 0 | ||
Interest rate swaps | ||||
Derivative contracts | ||||
Collateral thresholds for derivative agreements with credit risk related contingent features | $ 300,000 | $ 300,000 |
Derivative Financial Instrum_12
Derivative Financial Instruments - Visa Class B Restricted Shares (Details) - Class B restricted shares $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 USD ($) shares | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | 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 | 1.5875 | 1.6483 | ||
Derivative liability value | $ 1.2 | $ 0.9 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Commitments to Extend Credit, Participations Sold (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Commitments to extend credit | ||
Commitments | ||
Participations sold to other institutions | $ 65.5 | $ 90.5 |
Standby letters of credit | ||
Commitments | ||
Participations sold to other institutions | $ 8.2 | $ 8.1 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial instruments with off-balance sheet risk | ||
Contract amount | $ 7,000,000 | $ 7,000,000 |
Commitments to extend credit | ||
Financial instruments with off-balance sheet risk | ||
Contract amount | 6,722,595 | 6,760,395 |
Standby letters of credit | ||
Financial instruments with off-balance sheet risk | ||
Contract amount | 238,704 | 244,275 |
Commercial letters of credit | ||
Financial instruments with off-balance sheet risk | ||
Contract amount | $ 5,410 | $ 7,299 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from Contracts with Customers | ||||
Net interest income (loss) | $ 157,148 | $ 162,736 | $ 484,334 | $ 441,755 |
Not in scope of Topic 606 | 3,637 | 3,116 | 15,492 | 4,728 |
Total noninterest income | 46,097 | 45,857 | 142,468 | 131,374 |
Total revenue | 203,245 | 208,593 | 626,802 | 573,129 |
Retail Banking | ||||
Revenue from Contracts with Customers | ||||
Net interest income (loss) | 119,070 | 117,060 | 332,227 | 318,476 |
Not in scope of Topic 606 | 1,821 | 2,085 | 5,277 | 4,337 |
Total noninterest income | 24,834 | 24,480 | 72,898 | 70,280 |
Total revenue | 143,904 | 141,540 | 405,125 | 388,756 |
Commercial Banking | ||||
Revenue from Contracts with Customers | ||||
Net interest income (loss) | 45,913 | 39,586 | 128,348 | 111,500 |
Not in scope of Topic 606 | 1,130 | 1,637 | 4,069 | 5,023 |
Total noninterest income | 18,858 | 19,848 | 55,832 | 58,918 |
Total revenue | 64,771 | 59,434 | 184,180 | 170,418 |
Treasury and Other | ||||
Revenue from Contracts with Customers | ||||
Net interest income (loss) | (7,835) | 6,090 | 23,759 | 11,779 |
Not in scope of Topic 606 | 686 | (606) | 6,146 | (4,632) |
Total noninterest income | 2,405 | 1,529 | 13,738 | 2,176 |
Total revenue | (5,430) | 7,619 | 37,497 | 13,955 |
Service charges on deposit accounts. | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 7,524 | 7,089 | 22,001 | 21,433 |
Service charges on deposit accounts. | Retail Banking | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 6,724 | 6,421 | 19,723 | 19,155 |
Service charges on deposit accounts. | Commercial Banking | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 714 | 621 | 2,002 | 1,380 |
Service charges on deposit accounts. | Treasury and Other | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 86 | 47 | 276 | 898 |
Credit and debit card fees | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 15,142 | 17,143 | 45,731 | 47,833 |
Credit and debit card fees | Commercial Banking | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 13,990 | 15,831 | 42,044 | 44,099 |
Credit and debit card fees | Treasury and Other | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 1,152 | 1,312 | 3,687 | 3,734 |
Other service charges and fees. | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 7,415 | 7,062 | 21,541 | 21,985 |
Other service charges and fees. | Retail Banking | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 6,461 | 6,081 | 18,681 | 18,950 |
Other service charges and fees. | Commercial Banking | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 425 | 509 | 1,268 | 1,708 |
Other service charges and fees. | Treasury and Other | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 529 | 472 | 1,592 | 1,327 |
Trust and investment services income | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 9,742 | 9,800 | 28,804 | 27,442 |
Trust and investment services income | Retail Banking | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 9,742 | 9,800 | 28,804 | 27,442 |
Other. | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 2,637 | 1,647 | 8,899 | 7,953 |
Other. | Retail Banking | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 86 | 93 | 413 | 396 |
Other. | Commercial Banking | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | 2,599 | 1,250 | 6,449 | 6,708 |
Other. | Treasury and Other | ||||
Revenue from Contracts with Customers | ||||
Revenue by type of service | $ (48) | $ 304 | $ 2,037 | $ 849 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Balances (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) item | |
Revenue from Contracts with Customers | |||||
Signing bonuses received from vendors, in prior years | item | 2 | ||||
Contract liabilities | $ 2.1 | $ 2.1 | $ 2.7 | ||
Increase in recognized revenues and contract liabilities | 0.2 | $ 0.2 | 0.6 | $ 0.7 | |
Change in contract liabilities due to changes in transaction price estimates | $ 0 | $ 0 | $ 0 | $ 0 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings per Share | ||||
Adjustments to net income (in dollars) | $ 0 | $ 0 | $ 0 | $ 0 |
Antidilutive securities (in shares) | 611,000 | 0 | 609,000 | 0 |
Numerator: | ||||
Net income | $ 58,221 | $ 69,018 | $ 187,481 | $ 186,097 |
Denominator: | ||||
Basic: weighted-average shares outstanding (in shares) | 127,609,860 | 127,377,713 | 127,552,255 | 127,534,746 |
Add: weighted-average equity-based awards (in shares) | 326,580 | 418,904 | 345,574 | 461,926 |
Diluted: weighted-average shares outstanding (in shares) | 127,936,440 | 127,796,617 | 127,897,829 | 127,996,672 |
Basic earnings per share (in dollars per share) | $ 0.46 | $ 0.54 | $ 1.47 | $ 1.46 |
Diluted earnings per share (in dollars per share) | $ 0.46 | $ 0.54 | $ 1.47 | $ 1.45 |
Noninterest Income and Nonint_3
Noninterest Income and Noninterest Expense - Net periodic benefit cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pension Plan | ||||
Components of net periodic benefit cost | ||||
Interest cost | $ 2,053 | $ 1,523 | $ 6,171 | $ 4,245 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense |
Expected return on plan assets | $ (883) | $ (783) | $ (2,648) | $ (2,348) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense |
Recognized net actuarial loss (gain) | $ 719 | $ 1,269 | $ 2,157 | $ 3,806 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense |
Total net periodic benefit cost | $ 1,889 | $ 2,009 | $ 5,680 | $ 5,703 |
Other Benefits | ||||
Components of net periodic benefit cost | ||||
Interest cost | $ 171 | $ 118 | $ 611 | $ 405 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense |
Recognized net actuarial loss (gain) | $ (379) | $ (101) | $ (1,137) | $ (303) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense |
Total net periodic benefit cost | $ (72) | $ 214 | $ (96) | $ 728 |
Other Benefits | Salaries and employee benefits | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 136 | $ 197 | $ 430 | $ 626 |
Noninterest Income and Nonint_4
Noninterest Income and Noninterest Expense - Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Noninterest Income and Noninterest Expense | ||||
Operating lease income related to lease payments | $ 1.6 | $ 1.5 | $ 4.7 | $ 4.6 |
Lease income related to variable lease payments | $ 1.5 | $ 1.7 | $ 4.8 | $ 4.9 |
Fair Value - Visa Derivative (D
Fair Value - Visa Derivative (Details) - Visa Derivative $ in Millions | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2017 |
Class B restricted shares | |||
Fair value | |||
Conversion rate | 1.5875 | 1.6483 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | |||
Fair value | |||
Derivative Liability | $ 1.2 | $ 0.9 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Total available-for-sale securities, Fair value, | $ 2,722,704 | $ 3,151,133 |
Collateralized Loan Obligations | ||
Assets | ||
Total available-for-sale securities, Fair value, | 246,122 | 241,321 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 2,722,704 | 3,151,133 |
Other assets | 14,189 | 16,321 |
Liabilities | ||
Other liabilities | (7,080) | (50,119) |
Total | ||
Net Assets (Liabilities) | 2,729,813 | 3,117,335 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Other assets | 1,287 | 5,376 |
Total | ||
Net Assets (Liabilities) | 1,287 | 5,376 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Total available-for-sale securities, Fair value, | 2,722,704 | 3,151,133 |
Other assets | 12,902 | 10,945 |
Liabilities | ||
Other liabilities | (5,880) | (49,268) |
Total | ||
Net Assets (Liabilities) | 2,729,726 | 3,112,810 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Liabilities | ||
Other liabilities | (1,200) | (851) |
Total | ||
Net Assets (Liabilities) | (1,200) | (851) |
U.S. Treasury and government agency debt securities | ||
Assets | ||
Total available-for-sale securities, Fair value, | 114,159 | 150,982 |
U.S. Treasury and government agency debt securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 114,159 | 150,982 |
U.S. Treasury and government agency debt securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Total available-for-sale securities, Fair value, | 114,159 | 150,982 |
Government-sponsored enterprises debt securities | ||
Assets | ||
Total available-for-sale securities, Fair value, | 19,260 | 44,301 |
Government-sponsored enterprises debt securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 19,260 | 44,301 |
Government-sponsored enterprises debt securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Total available-for-sale securities, Fair value, | 19,260 | 44,301 |
Residential - Government agency | ||
Assets | ||
Total available-for-sale securities, Fair value, | 52,362 | 59,723 |
Residential - Government agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 52,362 | 59,723 |
Residential - Government agency | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Total available-for-sale securities, Fair value, | 52,362 | 59,723 |
Residential - Government-sponsored enterprises | ||
Assets | ||
Total available-for-sale securities, Fair value, | 1,005,782 | 1,160,455 |
Residential - Government-sponsored enterprises | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 1,005,782 | 1,160,455 |
Residential - Government-sponsored enterprises | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Total available-for-sale securities, Fair value, | 1,005,782 | 1,160,455 |
Commercial - Government agency | ||
Assets | ||
Total available-for-sale securities, Fair value, | 211,897 | 237,853 |
Commercial - Government agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 211,897 | 237,853 |
Commercial - Government agency | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Total available-for-sale securities, Fair value, | 211,897 | 237,853 |
Commercial - Government-sponsored enterprises | ||
Assets | ||
Total available-for-sale securities, Fair value, | 84,920 | 119,573 |
Commercial - Government-sponsored enterprises | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 84,920 | 119,573 |
Commercial - Government-sponsored enterprises | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Total available-for-sale securities, Fair value, | 84,920 | 119,573 |
Commercial - Non-government mortgage | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 21,602 | 21,471 |
Commercial - Non-government mortgage | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Total available-for-sale securities, Fair value, | 21,602 | 21,471 |
Government agency | ||
Assets | ||
Total available-for-sale securities, Fair value, | 565,852 | 653,322 |
Government agency | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 565,852 | 653,322 |
Government agency | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Total available-for-sale securities, Fair value, | 565,852 | 653,322 |
Government-sponsored enterprises | ||
Assets | ||
Total available-for-sale securities, Fair value, | 400,748 | 462,132 |
Government-sponsored enterprises | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 400,748 | 462,132 |
Government-sponsored enterprises | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Total available-for-sale securities, Fair value, | 400,748 | 462,132 |
Collateralized Loan Obligations | Fair Value, Measurements, Recurring | ||
Assets | ||
Total available-for-sale securities, Fair value, | 246,122 | 241,321 |
Collateralized Loan Obligations | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Total available-for-sale securities, Fair value, | $ 246,122 | $ 241,321 |
Fair Value - Significant Unobse
Fair Value - Significant Unobservable Inputs Used in Fair Value Measurements (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) M | Dec. 31, 2022 USD ($) M | |
Fair Value, Measurements, Nonrecurring | ||
Fair value | ||
Fair value | $ | $ 0 | $ 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Visa derivative | ||
Fair value | ||
Liabilities | $ | $ (1,200,000) | $ (851,000) |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Visa derivative | Expected Conversation Rate | Discounted cash flow | Weighted Average | ||
Fair value | ||
Measurement input | 0.015875 | 0.015991 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Visa derivative | Expected Conversation Rate | Discounted cash flow | Minimum | ||
Fair value | ||
Measurement input | 0.015289 | 0.015514 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Visa derivative | Expected Conversation Rate | Discounted cash flow | Maximum | ||
Fair value | ||
Measurement input | 0.015875 | 0.015991 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Visa derivative | Expected Term (in months or years) | Discounted cash flow | Weighted Average | ||
Fair value | ||
Measurement input | 3 | 3 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Visa derivative | Expected Term (in months or years) | Discounted cash flow | Minimum | ||
Fair value | ||
Measurement input | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Visa derivative | Expected Term (in months or years) | Discounted cash flow | Maximum | ||
Fair value | ||
Measurement input | 6 | 6 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Visa derivative | Growth Rate (percentage) | Discounted cash flow | Weighted Average | ||
Fair value | ||
Growth Rate (as a percent) | 17% | 26% |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Visa derivative | Growth Rate (percentage) | Discounted cash flow | Minimum | ||
Fair value | ||
Growth Rate (as a percent) | 7% | 10% |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Visa derivative | Growth Rate (percentage) | Discounted cash flow | Maximum | ||
Fair value | ||
Growth Rate (as a percent) | 24% | 38% |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair value | ||||
Amount of transfers between hierarchy levels | $ 0 | $ 0 | $ 0 | $ 0 |
Visa derivative | Visa Derivative | ||||
Changes in Level 3 liabilities measured at fair value on a recurring basis | ||||
Balance as of July 1, | (1,200) | (3,786) | (851) | (5,530) |
Total net (losses) gains included in other noninterest income | (1,350) | 273 | (5,129) | (1,084) |
Settlements | 1,350 | 1,154 | 4,780 | 4,255 |
Balance as of September 30, | (1,200) | (2,359) | (1,200) | (2,359) |
Total net (losses) gains included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of September 30, | $ (1,350) | $ 273 | $ (5,129) | $ (1,084) |
Fair Value - Financial Instrume
Fair Value - Financial Instruments not Required to be Carried at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Held-to-maturity investment securities, fair value | $ 3,433,029 | $ 3,814,822 |
Lease and lease commitments excluded | ||
Financing leases | 332,500 | 298,100 |
Deposit liabilities with no defined or contractual maturity | 17,900,000 | 19,200,000 |
Book Value | ||
Financial assets: | ||
Cash and cash equivalents | 1,213,428 | 526,624 |
Held-to-maturity investment securities, fair value | 4,104,114 | 4,320,639 |
Loans | 13,999,820 | 13,793,922 |
Financial liabilities: | ||
Time deposits | 3,661,131 | 2,476,050 |
Short-term borrowings | 500,000 | 75,000 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 1,213,428 | 526,624 |
Held-to-maturity investment securities, fair value | 3,433,029 | 3,814,822 |
Loans | 13,166,377 | 13,138,787 |
Financial liabilities: | ||
Time deposits | 3,625,116 | 2,423,231 |
Short-term borrowings | 495,306 | 74,991 |
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 246,028 | 297,502 |
Estimated Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Cash and cash equivalents | 967,400 | 229,122 |
Held-to-maturity investment securities, fair value | 3,433,029 | 3,814,822 |
Financial liabilities: | ||
Time deposits | 3,625,116 | 2,423,231 |
Short-term borrowings | 495,306 | 74,991 |
Estimated Fair Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Loans | $ 13,166,377 | $ 13,138,787 |
Fair Value - Unfunded Loan and
Fair Value - Unfunded Loan and Lease Commitments and Letters of Credit (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Unfunded loan and lease commitments and letters of credit | ||
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit | $ 7,000,000 | $ 7,000,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Unfunded loan and lease commitments and letters of credit | ||
Aggregate commitments to extend credit, standby letters of credit and commercial letters of credit | 7,000,000 | 7,000,000 |
Estimated fair value of unfunded loan and lease commitments and letters of credit | $ 52,300 | $ 48,500 |
Fair Value - Assets and Liabi_2
Fair Value - Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Assets with fair value adjustments on a nonrecurring basis | |||||
Fair value | $ 0 | $ 0 | $ 0 | ||
Assets, Fair Value Adjustment | $ 0 | $ 0 | $ 0 | $ 0 |
Reportable Operating Segments -
Reportable Operating Segments - Business Segments (Details) | 9 Months Ended |
Sep. 30, 2023 segment location | |
Reportable operating segments | |
Number of business segments | segment | 3 |
Retail Banking | |
Reportable operating segments | |
Number of Branches | location | 50 |
Reportable Operating Segments_2
Reportable Operating Segments - Selected Business Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Selected business segment financial information | ||||
Net interest income (loss) | $ 157,148 | $ 162,736 | $ 484,334 | $ 441,755 |
(Provision) Benefit for credit losses | (7,500) | (3,183) | (21,300) | 1,564 |
Net interest income after provision for credit losses | 149,648 | 159,553 | 463,034 | 443,319 |
Noninterest income | 46,097 | 45,857 | 142,468 | 131,374 |
Noninterest expense | (119,383) | (113,332) | (358,831) | (326,549) |
Income before provision for income taxes | 76,362 | 92,078 | 246,671 | 248,144 |
(Provision) benefit for income taxes | (18,141) | (23,060) | (59,190) | (62,047) |
Net income | 58,221 | 69,018 | 187,481 | 186,097 |
Retail Banking | ||||
Selected business segment financial information | ||||
Net interest income (loss) | 119,070 | 117,060 | 332,227 | 318,476 |
(Provision) Benefit for credit losses | (2,359) | (773) | (6,913) | 682 |
Net interest income after provision for credit losses | 116,711 | 116,287 | 325,314 | 319,158 |
Noninterest income | 24,834 | 24,480 | 72,898 | 70,280 |
Noninterest expense | (77,873) | (76,820) | (231,313) | (220,397) |
Income before provision for income taxes | 63,672 | 63,947 | 166,899 | 169,041 |
(Provision) benefit for income taxes | (15,209) | (16,093) | (39,836) | (42,139) |
Net income | 48,463 | 47,854 | 127,063 | 126,902 |
Commercial Banking | ||||
Selected business segment financial information | ||||
Net interest income (loss) | 45,913 | 39,586 | 128,348 | 111,500 |
(Provision) Benefit for credit losses | (3,565) | (1,227) | (10,447) | 701 |
Net interest income after provision for credit losses | 42,348 | 38,359 | 117,901 | 112,201 |
Noninterest income | 18,858 | 19,848 | 55,832 | 58,918 |
Noninterest expense | (24,976) | (28,079) | (79,832) | (81,546) |
Income before provision for income taxes | 36,230 | 30,128 | 93,901 | 89,573 |
(Provision) benefit for income taxes | (8,334) | (7,458) | (21,546) | (21,962) |
Net income | 27,896 | 22,670 | 72,355 | 67,611 |
Treasury and Other | ||||
Selected business segment financial information | ||||
Net interest income (loss) | (7,835) | 6,090 | 23,759 | 11,779 |
(Provision) Benefit for credit losses | (1,576) | (1,183) | (3,940) | 181 |
Net interest income after provision for credit losses | (9,411) | 4,907 | 19,819 | 11,960 |
Noninterest income | 2,405 | 1,529 | 13,738 | 2,176 |
Noninterest expense | (16,534) | (8,433) | (47,686) | (24,606) |
Income before provision for income taxes | (23,540) | (1,997) | (14,129) | (10,470) |
(Provision) benefit for income taxes | 5,402 | 491 | 2,192 | 2,054 |
Net income | $ (18,138) | $ (1,506) | $ (11,937) | $ (8,416) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 58,221 | $ 69,018 | $ 187,481 | $ 186,097 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |