Earnings release
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EXHIBIT 99.1 For Immediate Release First Hawaiian, Inc. Reports Third Quarter 2026 Financial Results and Declares Dividend HONOLULU, Hawaii October 23, 2026--(Globe Newswire)--First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended September 30, 2026. “I’m pleased with the solid earnings we delivered this quarter and the continued trust our customers place in us,” said Bob Harrison, Chairman, President and Chief Executive Officer. “Our deposit growth in a competitive market reflects the strength of those relationships, and our balance sheet is well positioned to benefit from rising interest rates. As we prepare for the Tri Counties Bank acquisition, we’re focused on building on that foundation and the growth opportunities ahead.” On October 21, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on November 27, 2026, to stockholders of record at the close of business on November 16, 2026. Third Quarter 2026 Highlights: ● Net income of $63.7 million, or $0.52 per diluted share ● Total loans and leases decreased $115.1 million to $14.5 billion ● Total deposits increased $50.4 million to $20.2 billion ● Net interest margin increased 5 basis points to 3.30% ● Results include a $24.3 million noninterest expense and a $31.0 million income tax benefit from an agreement to settle tax liabilities resulting from the 2016 corporate reorganization ● Merger-related costs in the quarter were $6.7 million ● Recorded a $20.3 million provision for credit losses, driven by a $12.5 million partial charge-off related to a single CRE loan and other CRE loan downgrades ● Board of Directors declared a quarterly dividend of $0.26 per share Balance Sheet Total assets were $23.8 billion at September 30, 2026 versus $23.6 billion at June 30, 2026. Gross loans and leases were $14.5 billion as of September 30, 2026, a decrease of $115.1 million from $14.6 billion as of June 30, 2026. Total deposits were $20.2 billion as of September 30, 2026 and June 30, 2026. Net Interest Income Net interest income for the third quarter of 2026 was $174.1 million, an increase of $3.1 million compared to $171.0 million for the prior quarter. The net interest margin was 3.30% in the third quarter of 2026, 5 basis points higher than the prior quarter’s margin of 3.25%. Provision Expense During the quarter ended September 30, 2026, we recorded a $20.3 million provision for credit losses. In the quarter endedJune 30, 2026, we recorded a $5.6 million provision for credit losses. Noninterest Income Noninterest income was $56.1 million in the third quarter of 2026, $4.2 million lower than noninterest income of $60.3 millionin the prior quarter. Noninterest Expense Noninterest expense was $160.0 million in the third quarter of 2026, $29.6 million higher compared to noninterest expense of$130.4 million in the prior quarter.
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Noninterest expense in the third quarter included $6.7 million of merger-related costs and a $24.3 million noninterest expense from an agreement to settle tax liabilities resulting from the 2016 corporate reorganization. The efficiency ratio was 69.2% and 56.2% for the quarters ended September 30, 2026 and June 30, 2026, respectively. Taxes The effective tax rate was -27.8% and 22.9% for the quarters ended September 30, 2026 and June 30, 2026, respectively. The negative effective tax rate in the third quarter was due to a $31.0 million income tax benefit we recorded as a result of the agreement to settle tax liabilities resulting from the 2016 corporate reorganization. Asset Quality The allowance for credit losses was $164.4 million, or 1.14% of total loans and leases, as of September 30, 2026, compared to $168.1 million, or 1.15% of total loans and leases, as of June 30, 2026. The reserve for unfunded commitments was $39.7 million as of September 30, 2026 and $37.7 million as of June 30, 2026. Net charge-offs were $21.9 million, or 0.60% of average loans and leases on an annualized basis, for the quarter ended September 30, 2026, compared to net charge-offs of $4.1 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended June 30, 2026. Total non-performing assets were $46.0 million, or 0.32% of total loans and leases and other real estate owned, on September 30, 2026, compared to total non-performing assets of $39.5 million, or 0.27% of total loans and leases and other real estate owned, on June 30, 2026. Capital Total stockholders' equity was $2.8 billion at September 30, 2026 and June 30, 2026. The tier 1 leverage, common equity tier 1 and total capital ratios were 9.61%, 13.50% and 14.74%, respectively, onSeptember 30, 2026, compared with 9.46%, 13.27% and 14.52%, respectively, on June 30, 2026. The Company did not repurchase any shares in the third quarter. First Hawaiian, Inc. First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com. Conference Call Information First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time. To access the call by phone, please register via the following link: https://register-conf.media-server.com/register/BI4e0abe37ecf34f5d8bdacfb166cade22, and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location.
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Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2025 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026. Use of Non-GAAP Financial Measures Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy. Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures. Investor Relations Contact: Media Contact: Kevin Haseyama, CFA Shari Nishijima (808) 525-6268 (808) 525-6254 khaseyama@fhb.com snishijima@fhb.com
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Financial Highlights Table 1 For the Three Months Ended For the Nine Months Ended September 30, June 30, September 30, September 30, (dollars in thousands, except per share data) 2026 2026 2025 2026 2025 Operating Results: Net interest income $ 174,104 $ 170,993 $ 169,331 $ 512,627 $ 493,440 Provision for credit losses 20,308 5,600 4,500 30,908 19,500 Noninterest income 56,123 60,281 57,060 169,223 161,495 Noninterest expense 160,047 130,445 125,744 418,377 374,243 Net income 63,730 73,375 73,840 204,889 206,335 Basic earnings per share 0.52 0.60 0.59 1.68 1.65 Diluted earnings per share 0.52 0.60 0.59 1.67 1.64 Dividends declared per share 0.26 0.26 0.26 0.78 0.78 Dividend payout ratio 50.00% 43.33% 44.07% 46.71% 47.56% Performance Ratios(1): Net interest margin 3.30% 3.25% 3.19% 3.25% 3.13% Efficiency ratio 69.18% 56.17% 55.29% 61.08% 56.88% Return on average total assets 1.06% 1.23% 1.22% 1.14% 1.15% Return on average tangible assets (non-GAAP)(2) 1.10% 1.28% 1.27% 1.19% 1.20% Return on average total stockholders' equity 8.88% 10.52% 10.81% 9.75% 10.32% Return on average tangible stockholders' equity (non-GAAP)(2) 13.67% 16.34% 17.08% 15.09% 16.45% Average Balances: Average loans and leases $ 14,496,740 $ 14,488,213$ 14,209,282$ 14,425,550 $ 14,269,030 Average earning assets 21,128,236 21,192,973 21,271,827 21,217,201 21,203,245 Average assets 23,955,273 23,954,425 23,993,685 23,997,190 23,914,896 Average deposits 20,408,631 20,483,307 20,411,117 20,504,383 20,348,609 Average stockholders' equity 2,845,750 2,796,857 2,710,273 2,810,686 2,672,284 Market Value Per Share: Closing 24.62 29.30 24.83 24.62 24.83 High 30.58 29.63 26.72 30.58 28.28 Low 24.48 24.50 23.48 23.26 20.32
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As of As of As of As ofSeptember 30, June 30, December 31, September 30, (dollars in thousands, except per share data) 2026 2026 2025 2025 Balance Sheet Data: Loans and leases $ 14,462,228 $ 14,577,299 $ 14,312,529 $ 14,129,383 Total assets 23,764,015 23,646,049 23,955,252 24,098,728 Total deposits 20,204,570 20,154,181 20,515,668 20,729,557 Total stockholders' equity 2,817,544 2,826,028 2,769,365 2,733,921 Per Share of Common Stock: Book value $ 23.16 $ 23.22 $ 22.57 $ 22.10 Tangible book value (non-GAAP)(2) 14.97 15.04 14.46 14.05 Asset Quality Ratios: Non-accrual loans and leases / total loans and leases 0.32% 0.27% 0.29% 0.22% Allowance for credit losses for loans and leases / total loans and leases 1.14% 1.15% 1.18% 1.17% Capital Ratios: Common Equity Tier 1 Capital Ratio 13.50% 13.27% 13.17% 13.24% Tier 1 Capital Ratio 13.50% 13.27% 13.17% 13.24% Total Capital Ratio 14.74% 14.52% 14.42% 14.49% Tier 1 Leverage Ratio 9.61% 9.46% 9.27% 9.16% Total stockholders' equity to total assets 11.86% 11.95% 11.56% 11.34% Tangible stockholders' equity to tangible assets (non-GAAP)(2) 8.00% 8.08% 7.73% 7.52% Non-Financial Data: Number of branches 49 49 49 49 Number of ATMs 272 274 273 275 Number of Full-Time Equivalent Employees 1,974 1,995 1,997 2,001 (1) Except for the efficiency ratio, amounts are annualized for the three and nine months ended September 30, 2026 and 2025 and three months ended June 30, 2026. (2) Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation.
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Consolidated Statements of Income Table 2 For the Three Months Ended For the Nine Months Ended September 30, June 30, September 30, September 30, (dollars in thousands, except per share amounts) 2026 2026 2025 2026 2025 Interest incomeLoans and lease financing $ 192,373 $ 190,727 $ 196,441 $ 569,489 $ 581,936Available-for-sale investment securities 16,200 15,867 13,470 46,951 39,089Held-to-maturity investment securities 14,856 15,121 15,920 45,040 48,866 Other 11,114 10,652 16,744 35,128 44,573 Total interest income 234,543 232,367 242,575 696,608 714,464 Interest expenseDeposits 60,211 61,220 70,851 183,495 212,849Short-term borrowings 1 — 2,195 1 7,421 Other 227 154 198 485 754 Total interest expense 60,439 61,374 73,244 183,981 221,024 Net interest income 174,104 170,993 169,331 512,627 493,440 Provision for credit losses 20,308 5,600 4,500 30,908 19,500 Net interest income after provision for credit losses 153,796 165,393 164,831 481,719 473,940 Noninterest incomeService charges on deposit accounts 8,693 8,316 8,096 25,165 23,461Credit and debit card fees 15,718 15,402 15,850 46,203 46,237Other service charges and fees 15,386 14,409 13,807 43,579 39,324Trust and investment services income 9,146 9,074 9,212 27,366 27,736Bank-owned life insurance 4,748 7,069 6,314 15,908 15,409Investment securities gains, net — — — — 37Other 2,432 6,011 3,781 11,002 9,291 Total noninterest income 56,123 60,281 57,060 169,223 161,495 Noninterest expenseSalaries and employee benefits 63,159 62,376 61,533 189,625 181,138Contracted services and professional fees 13,803 14,220 15,785 41,987 46,621Occupancy 7,333 7,902 7,098 23,051 23,132Equipment 15,308 14,563 13,834 44,652 41,742Regulatory assessment and fees 3,112 3,417 3,294 9,777 10,876Advertising and marketing 2,157 2,178 2,033 6,587 6,247Card rewards program 9,125 8,403 8,694 25,932 25,019Merger-related costs 6,672 4,182 — 10,854 —Other 39,378 13,204 13,473 65,912 39,468 Total noninterest expense 160,047 130,445 125,744 418,377 374,243 Income before provision for income taxes 49,872 95,229 96,147 232,565 261,192(Benefit) provision for income taxes (13,858) 21,854 22,307 27,676 54,857 Net income $ 63,730 $ 73,375 $ 73,840 $ 204,889 $ 206,335 Basic earnings per share $ 0.52 $ 0.60 $ 0.59 $ 1.68 $ 1.65 Diluted earnings per share $ 0.52 $ 0.60 $ 0.59 $ 1.67 $ 1.64 Basic weighted-average outstanding shares 121,681,309 121,669,238 124,267,090 121,933,207 125,282,792 Diluted weighted-average outstanding shares 122,478,489 122,339,836 124,970,898 122,716,742 125,977,271
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Consolidated Balance Sheets Table 3 September 30, June 30, December 31, September 30, (dollars in thousands, except share amount) 2026 2026 2025 2025 Assets Cash and due from banks $ 258,228 $ 263,762 $ 228,734 $ 249,563 Interest-bearing deposits in other banks 1,071,703 748,734 1,249,018 1,606,080 Investment securities: Available-for-sale, at fair value (amortized cost: $2,259,070 as of September 30, 2026, $2,275,837 as of June 30, 2026, $2,246,716 as of December 31, 2025 and $2,178,092 as of September 30, 2025) 2,016,945 2,094,699 2,076,233 1,986,717 Held-to-maturity, at amortized cost (fair value: $2,819,282 as of September 30, 2026, $3,035,475 as of June 30, 2026, $3,188,775 as of December 31, 2025 and $3,209,883 as of September 30, 2025) 3,346,994 3,411,684 3,533,082 3,594,188 Loans held for sale — — 1,370 468 Loans and leases 14,462,228 14,577,299 14,312,529 14,129,383 Less: allowance for credit losses 164,437 168,056 168,468 165,269 Net loans and leases 14,297,791 14,409,243 14,144,061 13,964,114 Premises and equipment, net 304,848 304,025 303,496 302,983 Accrued interest receivable 75,204 76,622 77,641 77,878 Bank-owned life insurance 525,898 521,137 513,182 507,950 Goodwill 995,492 995,492 995,492 995,492 Mortgage servicing rights 4,164 4,302 4,638 4,728 Other assets 866,748 816,349 828,305 808,567 Total assets $ 23,764,015 $ 23,646,049 $ 23,955,252 $ 24,098,728 Liabilities and Stockholders' Equity Deposits: Interest-bearing $ 13,803,664 $ 13,706,392 $ 13,968,376 $ 13,947,385 Noninterest-bearing 6,400,906 6,447,789 6,547,292 6,782,172 Total deposits 20,204,570 20,154,181 20,515,668 20,729,557 Retirement benefits payable 96,570 97,409 99,052 94,504 Other liabilities 645,331 568,431 571,167 540,746 Total liabilities 20,946,471 20,820,021 21,185,887 21,364,807 Stockholders' equity Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 142,662,115 / 121,681,352 shares as of September 30, 2026, issued/outstanding: 142,661,019 / 121,680,634 shares as of June 30, 2026, issued/outstanding: 142,184,584 / 122,689,256 shares as of December 31, 2025 and issued/outstanding: 142,173,027 / 123,719,585 shares as of September 30, 2025) 1,427 1,427 1,422 1,422 Additional paid-in capital 2,588,530 2,584,578 2,576,540 2,572,156 Retained earnings 1,187,636 1,156,028 1,078,885 1,041,573 Accumulated other comprehensive loss, net (403,826) (359,793) (368,140) (388,149) Treasury stock (20,980,763 shares as of September 30, 2026, 20,980,385 shares as of June 30, 2026, 19,495,328 shares as of December 31, 2025 and 18,453,442 shares as of September 30, 2025) (556,223) (556,212) (519,342) (493,081) Total stockholders' equity 2,817,544 2,826,028 2,769,365 2,733,921 Total liabilities and stockholders' equity $ 23,764,015 $ 23,646,049 $ 23,955,252 $ 24,098,728
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Average Balances and Interest Rates Table 4 Three Months Ended Three Months Ended Three Months EndedSeptember 30, 2026 June 30, 2026 September 30, 2025 Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/(dollars in millions) Balance Expense Rate Balance Expense Rate Balance Expense Rate Earning AssetsInterest-Bearing Deposits in Other Banks $ 1,162.4 $ 10.9 3.73 % $ 1,142.4 $ 10.5 3.68 % $ 1,471.0 $ 16.3 4.40 %Available-for-Sale Investment SecuritiesTaxable 2,060.5 16.2 3.14 2,081.7 15.8 3.05 1,921.2 13.5 2.80Non-Taxable 0.1 — 2.20 0.4 — 4.42 1.2 — 5.07Held-to-Maturity Investment SecuritiesTaxable 2,795.2 11.8 1.69 2,860.7 12.1 1.69 3,036.1 12.8 1.68Non-Taxable 587.9 3.3 2.26 590.3 3.3 2.23 595.5 3.6 2.39Total Investment Securities 5,443.7 31.3 2.30 5,533.1 31.2 2.26 5,554.0 29.9 2.15Loans Held for Sale 0.9 — 5.82 0.6 — 5.68 0.9 — 5.71Loans and Leases(1) Commercial and industrial 2,328.7 33.2 5.66 2,275.4 32.3 5.69 2,144.0 33.6 6.22Commercial real estate 4,741.5 68.6 5.74 4,736.0 67.6 5.73 4,481.5 69.9 6.18Construction 705.8 11.8 6.60 770.2 12.4 6.48 891.9 15.2 6.78 Residential: Residential mortgage 4,029.1 40.5 4.02 4,038.8 40.9 4.05 4,077.1 40.4 3.96Home equity line 1,178.7 14.6 4.91 1,181.8 14.2 4.82 1,167.0 14.0 4.76Consumer 1,066.3 20.8 7.74 1,044.1 20.1 7.74 1,018.4 19.6 7.63Lease financing 446.6 3.7 3.31 441.9 3.9 3.51 429.4 4.3 3.98 Total Loans and Leases 14,496.7 193.2 5.30 14,488.2 191.4 5.30 14,209.3 197.0 5.51 Other Earning Assets 24.5 0.2 3.07 28.7 0.2 2.36 36.6 0.4 4.72 Total Earning Assets(2) 21,128.2 235.6 4.44 21,193.0 233.3 4.41 21,271.8 243.6 4.55 Cash and Due from Banks 241.0 239.1 243.3Other Assets 2,586.1 2,522.3 2,478.6 Total Assets $ 23,955.3 $ 23,954.4 $ 23,993.7 Interest-Bearing LiabilitiesInterest-Bearing DepositsSavings $ 6,248.0 $ 18.0 1.15 % $ 6,407.4 $ 19.6 1.23 % $ 6,331.6 $ 21.9 1.37 %Money Market 4,358.4 20.3 1.84 4,321.3 19.5 1.81 3,837.6 23.4 2.42 Time 3,268.9 21.9 2.66 3,275.3 22.1 2.71 3,353.9 25.5 3.02 Total Interest-Bearing Deposits 13,875.3 60.2 1.72 14,004.0 61.2 1.75 13,523.1 70.8 2.08Federal Funds Purchased 0.1 — 3.77 — — — — — —Other Short-Term Borrowings — — — — — — 206.5 2.2 4.22Other Interest-Bearing Liabilities 27.3 0.2 3.29 19.5 0.2 3.16 14.4 0.2 5.46 Total Interest-Bearing Liabilities 13,902.7 60.4 1.72 14,023.5 61.4 1.76 13,744.0 73.2 2.11 Net Interest Income $ 175.2 $ 171.9 $ 170.4 Interest Rate Spread(3) 2.72 % 2.65 % 2.44 %Net Interest Margin(4) 3.30 % 3.25 % 3.19 %Noninterest-Bearing Demand Deposits 6,533.3 6,479.3 6,888.0Other Liabilities 673.5 654.7 651.4Stockholders' Equity 2,845.8 2,796.9 2,710.3 Total Liabilities and Stockholders' Equity $ 23,955.3 $ 23,954.4 $ 23,993.7 (1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. (2) Interest income includes taxable-equivalent basis adjustments of $1.1 million, $0.9 million and $1.0 million for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis. (4) Net interest margin is net interest income annualized for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, on a fully taxable-equivalent basis, divided by average total earning assets.
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Average Balances and Interest Rates Table 5 Nine Months Ended Nine Months EndedSeptember 30, 2026 September 30, 2025 Average Income/ Yield/ Average Income/ Yield/(dollars in millions) Balance Expense Rate Balance Expense Rate Earning Assets Interest-Bearing Deposits in Other Banks $ 1,252.2 $ 34.6 3.69% $ 1,307.4 $ 43.3 4.43% Available-for-Sale Investment Securities Taxable 2,064.3 46.9 3.03 1,894.1 39.0 2.75 Non-Taxable 0.4 — 4.57 1.3 0.1 5.31 Held-to-Maturity Investment Securities Taxable 2,857.0 35.9 1.67 3,099.5 39.6 1.70 Non-Taxable 590.3 10.1 2.29 597.0 10.5 2.37 Total Investment Securities 5,512.0 92.9 2.25 5,591.9 89.2 2.13 Loans Held for Sale 0.8 — 5.80 0.5 — 6.03 Loans and Leases(1) Commercial and industrial 2,258.8 96.3 5.70 2,210.6 102.5 6.20 Commercial real estate 4,695.8 201.2 5.73 4,431.6 203.2 6.13 Construction 750.3 36.6 6.52 909.6 45.6 6.71 Residential: Residential mortgage 4,049.7 122.4 4.03 4,110.2 121.5 3.94 Home equity line 1,178.7 42.4 4.81 1,157.2 40.4 4.67 Consumer 1,048.4 61.0 7.77 1,017.2 57.7 7.58 Lease financing 443.9 11.7 3.52 432.6 12.8 3.96 Total Loans and Leases 14,425.6 571.6 5.29 14,269.0 583.7 5.47 Other Earning Assets 26.6 0.6 2.63 34.4 1.3 5.03 Total Earning Assets(2) 21,217.2 699.7 4.41 21,203.2 717.5 4.52 Cash and Due from Banks 235.6 233.9 Other Assets 2,544.4 2,477.8 Total Assets $ 23,997.2 $ 23,914.9 Interest-Bearing Liabilities Interest-Bearing Deposits Savings $ 6,352.7 $ 56.6 1.19% $ 6,270.9 $ 64.1 1.37% Money Market 4,346.2 59.5 1.83 3,860.3 69.2 2.40 Time 3,308.1 67.4 2.72 3,353.6 79.5 3.17 Total Interest-Bearing Deposits 14,007.0 183.5 1.75 13,484.8 212.8 2.11 Federal Funds Purchased — — 3.77 — — — Other Short-Term Borrowings — — — 235.3 7.4 4.22 Other Interest-Bearing Liabilities 19.8 0.5 3.27 20.9 0.8 4.84 Total Interest-Bearing Liabilities 14,026.8 184.0 1.75 13,741.0 221.0 2.15 Net Interest Income $ 515.7 $ 496.5 Interest Rate Spread(3) 2.66% 2.37% Net Interest Margin(4) 3.25% 3.13% Noninterest-Bearing Demand Deposits 6,497.4 6,863.8 Other Liabilities 662.3 637.8 Stockholders' Equity 2,810.7 2,672.3 Total Liabilities and Stockholders' Equity $ 23,997.2 $ 23,914.9 (1) Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis. (2) Interest income includes taxable-equivalent basis adjustments of $3.1 million for both the nine months ended September 30, 2026 and 2025, respectively. (3) Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis. (4) Net interest margin is net interest income annualized for the nine months ended September 30, 2026 and 2025, on a fully taxable- equivalent basis, divided by average total earning assets.
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Analysis of Change in Net Interest Income Table 6 Three Months Ended September 30, 2026Compared to June 30, 2026 (dollars in millions) Volume Rate Total (1) Change in Interest Income: Interest-Bearing Deposits in Other Banks $ 0.2 $ 0.2 $ 0.4 Available-for-Sale Investment Securities Taxable (0.1) 0.5 0.4 Held-to-Maturity Investment Securities Taxable (0.3) — (0.3) Total Investment Securities (0.4) 0.5 0.1 Loans and Leases Commercial and industrial 1.0 (0.1) 0.9 Commercial real estate 0.4 0.6 1.0 Construction (0.9) 0.3 (0.6) Residential: Residential mortgage (0.1) (0.3) (0.4) Home equity line — 0.4 0.4 Consumer 0.7 — 0.7 Lease financing — (0.2) (0.2) Total Loans and Leases 1.1 0.7 1.8 Total Change in Interest Income 0.9 1.4 2.3 Change in Interest Expense: Interest-Bearing Deposits Savings (0.4) (1.2) (1.6) Money Market 0.3 0.5 0.8 Time — (0.2) (0.2) Total Interest-Bearing Deposits (0.1) (0.9) (1.0) Total Change in Interest Expense (0.1) (0.9) (1.0) Change in Net Interest Income $ 1.0 $ 2.3 $ 3.3 (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
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Analysis of Change in Net Interest Income Table 7 Three Months Ended September 30, 2026Compared to September 30, 2025 (dollars in millions) Volume Rate Total (1) Change in Interest Income: Interest-Bearing Deposits in Other Banks $ (3.1) $ (2.3) $ (5.4) Available-for-Sale Investment Securities Taxable 1.0 1.7 2.7 Held-to-Maturity Investment Securities Taxable (1.1) 0.1 (1.0) Non-Taxable (0.1) (0.2) (0.3) Total Investment Securities (0.2) 1.6 1.4 Loans and Leases Commercial and industrial 2.7 (3.1) (0.4) Commercial real estate 3.8 (5.1) (1.3) Construction (3.0) (0.4) (3.4) Residential: Residential mortgage (0.5) 0.6 0.1 Home equity line 0.2 0.4 0.6 Consumer 0.9 0.3 1.2 Lease financing 0.2 (0.8) (0.6) Total Loans and Leases 4.3 (8.1) (3.8) Other Earning Assets (0.1) (0.1) (0.2) Total Change in Interest Income 0.9 (8.9) (8.0) Change in Interest Expense: Interest-Bearing Deposits Savings (0.3) (3.6) (3.9) Money Market 2.9 (6.0) (3.1) Time (0.6) (3.0) (3.6) Total Interest-Bearing Deposits 2.0 (12.6) (10.6) Other Short-Term Borrowings (1.1) (1.1) (2.2) Other Interest-Bearing Liabilities 0.1 (0.1) — Total Change in Interest Expense 1.0 (13.8) (12.8) Change in Net Interest Income $ (0.1) $ 4.9 $ 4.8 (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
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Analysis of Change in Net Interest Income Table 8 Nine Months Ended September 30, 2026Compared to September 30, 2025 (dollars in millions) Volume Rate Total (1) Change in Interest Income: Interest-Bearing Deposits in Other Banks $ (1.8) $ (6.9) $ (8.7) Available-for-Sale Investment Securities Taxable 3.7 4.2 7.9 Non-Taxable (0.1) — (0.1) Held-to-Maturity Investment Securities Taxable (3.0) (0.7) (3.7) Non-Taxable (0.1) (0.3) (0.4) Total Investment Securities 0.5 3.2 3.7 Loans and Leases Commercial and industrial 2.2 (8.4) (6.2) Commercial real estate 11.7 (13.7) (2.0) Construction (7.7) (1.3) (9.0) Residential: Residential mortgage (1.8) 2.7 0.9 Home equity line 0.8 1.2 2.0 Consumer 1.8 1.5 3.3 Lease financing 0.3 (1.4) (1.1) Total Loans and Leases 7.3 (19.4) (12.1) Other Earning Assets (0.2) (0.5) (0.7) Total Change in Interest Income 5.8 (23.6) (17.8) Change in Interest Expense: Interest-Bearing Deposits Savings 0.9 (8.4) (7.5) Money Market 8.0 (17.7) (9.7) Time (1.1) (11.0) (12.1) Total Interest-Bearing Deposits 7.8 (37.1) (29.3) Other Short-Term Borrowings (3.7) (3.7) (7.4) Other Interest-Bearing Liabilities — (0.3) (0.3) Total Change in Interest Expense 4.1 (41.1) (37.0) Change in Net Interest Income $ 1.7 $ 17.5 $ 19.2 (1) The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.
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Loans and Leases Table 9 September 30, June 30, December 31, September 30, (dollars in thousands) 2026 2026 2025 2025 Commercial and industrial $ 2,304,567 $ 2,339,882 $ 2,171,333 $ 2,027,504 Commercial real estate 4,714,502 4,783,130 4,590,326 4,513,706 Construction 739,531 731,766 808,275 881,462 Residential: Residential mortgage 3,996,717 4,044,207 4,096,300 4,077,946 Home equity line 1,177,610 1,181,396 1,178,527 1,170,822 Total residential 5,174,327 5,225,603 5,274,827 5,248,768 Consumer 1,067,697 1,046,461 1,025,838 1,013,663 Lease financing 461,604 450,457 441,930 444,280 Total loans and leases $ 14,462,228 $ 14,577,299 $ 14,312,529 $ 14,129,383
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Deposits Table 10 September 30, June 30, December 31, September 30, (dollars in thousands) 2026 2026 2025 2025 Demand $ 6,400,906 $ 6,447,789 $ 6,547,292 $ 6,782,172 Savings 6,248,848 6,132,746 6,308,873 6,691,136 Money Market 4,313,623 4,283,982 4,289,370 3,874,614 Time 3,241,193 3,289,664 3,370,133 3,381,635 Total Deposits $ 20,204,570 $ 20,154,181 $ 20,515,668 $ 20,729,557
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Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days orMore Table 11 September 30, June 30, December 31, September 30, (dollars in thousands) 2026 2026 2025 2025 Non-Performing AssetsNon-Accrual Loans and LeasesCommercial Loans:Commercial and industrial $ 1,688 $ 4,054 $ 8,805 $ 1,084Commercial real estate 13,833 2,879 3,007 3,089Construction 1,064 1,788 1,788 904 Lease financing 115 680 734 169 Total Commercial Loans 16,700 9,401 14,334 5,246 Residential Loans:Residential mortgage 19,244 18,675 16,423 16,702 Home equity line 10,030 11,425 10,271 8,385 Total Residential Loans 29,274 30,100 26,694 25,087 Consumer — — — 600 Total Non-Accrual Loans and Leases 45,974 39,501 41,028 30,933 Total Non-Performing Assets $ 45,974 $ 39,501 $ 41,028 $ 30,933 Accruing Loans and Leases Past Due 90 Days or MoreCommercial Loans:Commercial and industrial $ 403 $ 249 $ 318 $ 633Commercial real estate 1,690 — — — Construction — — — 2,063 Total Commercial Loans 2,093 249 318 2,696 Residential mortgage 14,963 771 55 627 Consumer 2,171 3,073 2,984 2,566 Total Accruing Loans and Leases Past Due 90 Days or More $ 19,227 $ 4,093 $ 3,357 $ 5,889 Total Loans and Leases $ 14,462,228 $ 14,577,299 $ 14,312,529 $ 14,129,383
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Allowance for Credit Losses and Reserve for UnfundedCommitments Table 12 For the Three Months Ended For the Nine Months Ended September 30, June 30, September 30, September 30, September 30, (dollars in thousands) 2026 2026 2025 2026 2025 Balance at Beginning of Period $ 205,728 $ 204,265 $ 201,172 $ 204,165 $ 193,240Loans and Leases Charged-OffCommercial Loans:Commercial and industrial (6,918) (769) (1,106) (10,312) (3,253)Commercial real estate (12,465) — — (12,465) —Lease financing (6) — (580) (6) (662) Total Commercial Loans (19,389) (769) (1,686) (22,783) (3,915) Home equity line — (23) — (23) (30)Consumer (6,281) (5,490) (4,719) (16,615) (14,287) Total Loans and Leases Charged-Off (25,670) (6,282) (6,405) (39,421) (18,232) Recoveries on Loans and Leases Previously Charged-OffCommercial Loans:Commercial and industrial 1,444 281 410 1,991 1,009Commercial real estate — — — — 251Lease financing — — — 3 — Total Commercial Loans 1,444 281 410 1,994 1,260 Residential Loans:Residential mortgage 11 16 14 40 143Home equity line 69 28 26 136 122 Total Residential Loans 80 44 40 176 265 Consumer 2,198 1,820 1,749 6,266 5,433Total Recoveries on Loans and Leases Previously Charged-Off 3,722 2,145 2,199 8,436 6,958 Net Loans and Leases Charged-Off (21,948) (4,137) (4,206) (30,985) (11,274)Provision for Credit Losses 20,308 5,600 4,500 30,908 19,500 Balance at End of Period $ 204,088 $ 205,728 $ 201,466 $ 204,088 $ 201,466 Components:Allowance for Credit Losses $ 164,437 $ 168,056 $ 165,269 $ 164,437 $ 165,269Reserve for Unfunded Commitments 39,651 37,672 36,197 39,651 36,197Total Allowance for Credit Losses and Reserve for UnfundedCommitments $ 204,088 $ 205,728 $ 201,466 $ 204,088 $ 201,466 Average Loans and Leases Outstanding $ 14,496,740 $ 14,488,213 $ 14,209,282 $ 14,425,550 $ 14,269,030 Ratio of Net Loans and Leases Charged-Off to Average Loansand Leases Outstanding(1) 0.60 % 0.11 % 0.12 % 0.29 % 0.11 %Ratio of Allowance for Credit Losses for Loans and Leases toLoans and Leases Outstanding 1.14 % 1.15 % 1.17 % 1.14 % 1.17 %Ratio of Allowance for Credit Losses for Loans and Leases toNon-accrual Loans and Leases 3.58x 4.25x 5.34x 3.58x 5.34x (1) Annualized for the three and nine months ended September 30, 2026 and 2025 and three months ended June 30, 2026.
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Loans and Leases by Year of Origination and Credit Quality Indicator Table 13 RevolvingLoansConvertedTerm Loans Revolving to TermAmortized Cost Basis by Origination Year Loans LoansAmortized Amortized(dollars in thousands) 2026 2025 2024 2023 2022 Prior Cost Basis Cost Basis Total Commercial LendingCommercial and IndustrialRisk rating:Pass $ 202,063 $ 241,039 $ 149,553 $ 57,135 $ 51,359 $ 289,563 $ 1,146,313 $ 28,352 $ 2,165,377 Special Mention 417 3,541 549 1,523 1,899 746 6,318 — 14,993 Substandard 139 184 500 429 2,908 18,158 5,300 — 27,618 Other (1) 17,281 13,451 6,347 2,954 2,249 2,043 52,254 — 96,579 Total Commercial andIndustrial 219,900 258,215 156,949 62,041 58,415 310,510 1,210,185 28,352 2,304,567 Current period gross charge-offs — 129 1,864 259 2,180 3,214 2,666 — 10,312 Commercial Real EstateRisk rating:Pass 538,756 723,291 364,311 391,394 585,898 1,643,436 114,656 6,267 4,368,009 Special Mention 419 — 3,608 1,644 171,581 48,290 964 — 226,506 Substandard 889 — 5,287 689 37,464 61,603 13,940 — 119,872 Other (1) — — — — — 115 — — 115 Total Commercial Real Estate 540,064 723,291 373,206 393,727 794,943 1,753,444 129,560 6,267 4,714,502 Current period gross charge-offs — — — — — 12,465 — — 12,465 ConstructionRisk rating:Pass 64,419 174,295 235,743 53,119 148,418 11,369 3,579 — 690,942 Special Mention — — — — 22,591 — — — 22,591 Substandard — — — — — 904 — — 904 Other (1) 4,740 8,669 4,719 2,805 1,719 1,767 675 — 25,094 Total Construction 69,159 182,964 240,462 55,924 172,728 14,040 4,254 — 739,531 Current period gross charge-offs — — — — — — — — — Lease FinancingRisk rating:Pass 118,981 61,372 75,171 82,562 32,936 89,720 — — 460,742 Special Mention — — 68 382 57 — — — 507 Substandard — 132 172 51 — — — — 355 Total Lease Financing 118,981 61,504 75,411 82,995 32,993 89,720 — — 461,604 Current period gross charge-offs — — 6 — — — — — 6 Total Commercial Lending $ 948,104 $ 1,225,974 $ 846,028 $ 594,687 $ 1,059,079 $ 2,167,714 $ 1,343,999 $ 34,619 $ 8,220,204 Current period gross charge-offs $ — $ 129 $ 1,870 $ 259 $ 2,180 $ 15,679 $ 2,666 $ — $ 22,783 (continued)
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RevolvingLoansConvertedTerm Loans Revolving to TermAmortized Cost Basis by Origination Year Loans Loans(continued) Amortized Amortized(dollars in thousands) 2026 2025 2024 2023 2022 Prior Cost Basis Cost Basis Total Residential LendingResidential MortgageFICO:740 and greater $ 157,553 $ 187,527 $ 127,156 $ 155,856 $ 413,991 $ 2,176,053 $ — $ — $ 3,218,136 680 - 739 22,002 18,668 15,661 24,033 67,424 275,860 — — 423,648 620 - 679 2,635 8,008 8,553 5,716 18,661 69,081 — — 112,654 550 - 619 — 1,060 — 1,945 5,375 16,974 — — 25,354 Less than 550 — — — 441 3,802 17,872 — — 22,115 No Score (3) 7,850 5,511 2,887 4,728 15,250 47,394 — — 83,620 Other (2) 4,764 22,123 6,499 17,778 12,991 38,541 8,494 — 111,190 Total Residential Mortgage 194,804 242,897 160,756 210,497 537,494 2,641,775 8,494 — 3,996,717 Current period gross charge-offs — — — — — — — — — Home Equity LineFICO:740 and greater — — — — — — 924,498 332 924,830 680 - 739 — — — — — — 179,779 1,604 181,383 620 - 679 — — — — — — 47,607 633 48,240 550 - 619 — — — — — — 13,382 375 13,757 Less than 550 — — — — — — 8,612 30 8,642 No Score (3) — — — — — — 758 — 758 Total Home Equity Line — — — — — — 1,174,636 2,974 1,177,610 Current period gross charge-offs — — — — — — 23 — 23 Total Residential Lending $ 194,804 $ 242,897 $ 160,756 $ 210,497 $ 537,494 $ 2,641,775 $ 1,183,130 $ 2,974 $ 5,174,327 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ 23 $ — $ 23 Consumer LendingFICO:740 and greater $ 95,688 $ 85,965 $ 48,787 $ 29,752 $ 28,841 $ 9,062 $ 98,607 $ 61 $ 396,763 680 - 739 76,834 67,554 33,419 17,684 14,466 5,241 86,795 581 302,574 620 - 679 46,475 34,123 14,524 8,382 7,706 3,947 50,763 900 166,820 550 - 619 8,343 13,276 7,917 5,138 4,675 2,581 17,429 809 60,168 Less than 550 2,360 5,503 4,270 2,208 2,523 1,334 5,572 573 24,343 No Score (3) 4,376 274 3 17 — 10 37,409 201 42,290 Other (2) 201 3,389 — — — 1,472 69,677 — 74,739 Total Consumer Lending $ 234,277 $ 210,084 $ 108,920 $ 63,181 $ 58,211 $ 23,647 $ 366,252 $ 3,125 $ 1,067,697 Current period gross charge-offs $ 525 $ 2,613 $ 1,778 $ 1,435 $ 786 $ 1,772 $ 7,162 $ 544 $ 16,615 Total Loans and Leases $ 1,377,185 $ 1,678,955 $ 1,115,704 $ 868,365 $ 1,654,784 $ 4,833,136 $ 2,893,381 $ 40,718 $ 14,462,228 Current period gross charge-offs $ 525 $ 2,742 $ 3,648 $ 1,694 $ 2,966 $ 17,451 $ 9,851 $ 544 $ 39,421 (1) Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score (680 and above). As of September 30, 2026, the majority of the loans in this population were current. (2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. As of September 30, 2026, the majority of the loans in this population were current. (3) No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.
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GAAP to Non-GAAP Reconciliation Table 14 For the Three Months Ended For the Nine Months Ended September 30, June 30, September 30, September 30, (dollars in thousands) 2026 2026 2025 2026 2025 Income Statement Data:Net income $ 63,730 $ 73,375 $ 73,840 $ 204,889 $ 206,335 Average total stockholders' equity $ 2,845,750 $ 2,796,857 $ 2,710,273 $ 2,810,686 $ 2,672,284 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible stockholders' equity $ 1,850,258 $ 1,801,365 $ 1,714,781 $ 1,815,194 $ 1,676,792 Average total assets $ 23,955,273 $ 23,954,425 $ 23,993,685 $ 23,997,190 $ 23,914,896 Less: average goodwill 995,492 995,492 995,492 995,492 995,492 Average tangible assets $ 22,959,781 $ 22,958,933 $ 22,998,193 $ 23,001,698 $ 22,919,404 Return on average total stockholders' equity(1) 8.88 % 10.52 % 10.81 % 9.75 % 10.32 % Return on average tangible stockholders' equity (non-GAAP)(1) 13.67 % 16.34 % 17.08 % 15.09 % 16.45 % Return on average total assets(1) 1.06 % 1.23 % 1.22 % 1.14 % 1.15 % Return on average tangible assets (non-GAAP)(1) 1.10 % 1.28 % 1.27 % 1.19 % 1.20 % As of As of As of As ofSeptember 30, June 30, December 31, September 30, (dollars in thousands, except per share amounts) 2026 2026 2025 2025 Balance Sheet Data:Total stockholders' equity $ 2,817,544 $ 2,826,028 $ 2,769,365 $ 2,733,921Less: goodwill 995,492 995,492 995,492 995,492 Tangible stockholders' equity $ 1,822,052 $ 1,830,536 $ 1,773,873 $ 1,738,429 Total assets $ 23,764,015 $ 23,646,049 $ 23,955,252 $ 24,098,728Less: goodwill 995,492 995,492 995,492 995,492 Tangible assets $ 22,768,523 $ 22,650,557 $ 22,959,760 $ 23,103,236 Shares outstanding 121,681,352 121,680,634 122,689,256 123,719,585 Total stockholders' equity to total assets 11.86 % 11.95 % 11.56 % 11.34 %Tangible stockholders' equity to tangible assets (non-GAAP) 8.00 % 8.08 % 7.73 % 7.52 % Book value per share $ 23.16 $ 23.22 $ 22.57 $ 22.10Tangible book value per share (non-GAAP) $ 14.97 $ 15.04 $ 14.46 $ 14.05 (1) Annualized for the three and nine months ended September 30, 2026 and 2025 and three months ended June 30, 2026.