10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2023

or

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from   to

Commission File Number: 1-6887

BANK OF HAWAII CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	99-0148992
(State of incorporation)	(I.R.S. Employer Identification No.)

130 Merchant Street	Honolulu	Hawaii	96813
(Address of principal executive offices)	(City)	(State)	(Zip Code)

1-888-643-3888

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.01 per share	BOH	New York Stock Exchange
Depository Shares, Each Representing 1/40th Interest in a Share of 4.375% Fixed Rate Non-Cumulative Preferred Stock, Series A	BOH.PRA	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 18, 2023, there were 39,727,652 shares of common stock outstanding.

Bank of Hawai‘i Corporation

Form 10-Q

Index

		uninsuPage
Part I - Financial Information
Item 1.	Financial Statements (Unaudited)
	Consolidated Statements of Income – Three and six months ended June 30, 2023, and June 30, 2022	2
	Consolidated Statements of Comprehensive Income – Three and six months ended June 30, 2023, and June 30, 2022	3
	Consolidated Statements of Condition – June 30, 2023, and December 31, 2022	4
	Consolidated Statements of Shareholders’ Equity – Six months ended June 30, 2023, and June 30, 2022	5
	Consolidated Statements of Cash Flows – Six months ended June 30, 2023, and June 30, 2022	6
	Notes to Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	65
Item 4.	Controls and Procedures	65
Part II - Other Information		66
Item 1.	Legal Proceedings	66
Item 1A.	Risk Factors	66
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	67
Item 5.	Other Information	67
Item 6.	Exhibits	67
Signatures		69

1

Bank of Hawai‘i Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(dollars in thousands, except per share amounts)	2023			2022			2023			2022
Interest Income
Interest and Fees on Loans and Leases	$	144,541		$	101,663		$	281,042		$	196,102
Income on Investment Securities
Available-for-Sale		23,301			17,984			47,194			35,084
Held-to-Maturity		23,375			18,838			47,323			37,539
Deposits		18			5			45			9
Funds Sold		6,395			719			9,761			846
Other		2,121			353			2,718			555
Total Interest Income		199,751			139,562			388,083			270,135
Interest Expense
Deposits		53,779			3,535			91,573			5,888
Securities Sold Under Agreements to Repurchase		5,436			2,794			10,813			5,566
Funds Purchased		184			57			888			59
Short-Term Borrowings		2,510			92			5,713			92
Other Debt		13,494			182			18,793			365
Total Interest Expense		75,403			6,660			127,780			11,970
Net Interest Income		124,348			132,902			260,303			258,165
Provision for Credit Losses		2,500			(2,500	)		4,500			(8,000	)
Net Interest Income After Provision for Credit Losses		121,848			135,402			255,803			266,165
Noninterest Income
Trust and Asset Management		11,215			11,457			21,905			22,733
Mortgage Banking		1,176			1,247			2,180			3,987
Service Charges on Deposit Accounts		7,587			7,309			15,324			14,581
Fees, Exchange, and Other Service Charges		14,150			14,193			27,958			27,145
Investment Securities Losses, Net		(1,310	)		(1,295	)		(3,102	)		(2,840	)
Annuity and Insurance		1,038			870			2,309			1,661
Bank-Owned Life Insurance		2,876			2,658			5,718			5,007
Other		6,523			5,719			11,700			13,435
Total Noninterest Income		43,255			42,158			83,992			85,709
Noninterest Expense
Salaries and Benefits		56,175			57,769			121,263			117,693
Net Occupancy		9,991			9,930			19,863			19,756
Net Equipment		10,573			9,543			20,948			18,696
Data Processing		4,599			4,607			9,182			9,167
Professional Fees		4,651			3,542			8,534			6,800
FDIC Insurance		3,173			1,590			6,407			3,092
Other		14,874			15,958			29,758			31,609
Total Noninterest Expense		104,036			102,939			215,955			206,813
Income Before Provision for Income Taxes		61,067			74,621			123,840			145,061
Provision for Income Taxes		15,006			17,759			30,937			33,365
Net Income	$	46,061		$	56,862		$	92,903		$	111,696
Preferred Stock Dividends		1,969			1,969			3,938			3,938
Net Income Available to Common Shareholders	$	44,092		$	54,893		$	88,965		$	107,758
Basic Earnings Per Common Share	$	1.12		$	1.38		$	2.27		$	2.71
Diluted Earnings Per Common Share	$	1.12		$	1.38		$	2.26		$	2.70
Dividends Declared Per Common Share	$	0.70		$	0.70		$	1.40		$	1.40
Basic Weighted Average Common Shares		39,241,559			39,693,593			39,259,279			39,722,985
Diluted Weighted Average Common Shares		39,317,521			39,842,608			39,382,359			39,896,700

The accompanying notes are an integral part of the Consolidated Financial Statements (Unaudited).

2

Bank of Hawai‘i Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(dollars in thousands)	2023			2022			2023		2022
Net Income	$	46,061		$	56,862		$	92,903	$	111,696
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities		(18,217	)		(122,647	)		11,059		(302,771	)
Defined Benefit Plans		84			352			168		705
Total Other Comprehensive Income (Loss)		(18,133	)		(122,295	)		11,227		(302,066	)
Comprehensive Income (Loss)	$	27,928		$	(65,433	)	$	104,130	$	(190,370	)

The accompanying notes are an integral part of the Consolidated Financial Statements (Unaudited).

3

Bank of Hawai‘i Corporation and Subsidiaries

Consolidated Statements of Condition (Unaudited)

(dollars in thousands)	June 30, 2023			December 31, 2022
Assets
Interest-Bearing Deposits in Other Banks	$	2,261		$	3,724
Funds Sold		1,273,109			81,364
Investment Securities
Available-for-Sale		2,666,723			2,844,823
Held-to-Maturity (Fair Value of $4,411,003 and $4,615,393)		5,202,698			5,414,139
Loans Held for Sale		3,359			1,035
Loans and Leases		13,914,889			13,646,420
Allowance for Credit Losses		(145,367	)		(144,439	)
Net Loans and Leases		13,769,522			13,501,981
Total Earning Assets		22,917,672			21,847,066
Cash and Due From Banks		398,072			316,679
Premises and Equipment, Net		200,297			206,777
Operating Lease Right-of-Use Assets		89,286			92,307
Accrued Interest Receivable		64,720			61,002
Foreclosed Real Estate		1,040			1,040
Mortgage Servicing Rights		21,626			22,619
Goodwill		31,517			31,517
Bank-Owned Life Insurance		456,889			453,882
Other Assets		766,817			573,988
Total Assets	$	24,947,936		$	23,606,877
Liabilities
Deposits
Noninterest-Bearing Demand	$	5,968,344		$	6,714,982
Interest-Bearing Demand		4,119,166			4,232,567
Savings		7,756,426			7,962,410
Time		2,664,679			1,705,737
Total Deposits		20,508,615			20,615,696
Securities Sold Under Agreements to Repurchase		725,490			725,490
Other Debt		1,760,243			410,294
Operating Lease Liabilities		97,768			100,526
Retirement Benefits Payable		26,434			26,991
Accrued Interest Payable		26,737			9,698
Taxes Payable		132			7,104
Other Liabilities		444,238			394,083
Total Liabilities		23,589,657			22,289,882
Commitments and Contingencies (Note 12)
Shareholders’ Equity
Preferred Stock ($.01 par value; authorized 180,000 shares;    issued and outstanding: June 30, 2023 and December 31, 2022 - 180,000)		180,000			180,000
Common Stock ($.01 par value; authorized 500,000,000 shares;        issued / outstanding: June 20, 2023 -58,771,036 / 39,725,348        and December 31, 2022 -58,733,625 / 39,835,750)		583			582
Capital Surplus		628,202			620,578
Accumulated Other Comprehensive Loss		(423,431	)		(434,658	)
Retained Earnings		2,091,289			2,055,912
Treasury Stock, at Cost (Shares: June 30, 2023 - 19,045,688          and December 31, 2022 - 18,897,875)		(1,118,364	)		(1,105,419	)
Total Shareholders’ Equity		1,358,279			1,316,995
Total Liabilities and Shareholders’ Equity	$	24,947,936		$	23,606,877

The accompanying notes are an integral part of the Consolidated Financial Statements (Unaudited).

4

Bank of Hawai‘i Corporation and Subsidiaries

Consolidated Statements of Shareholders’ Equity (Unaudited)

(dollars in thousands)	Preferred Shares Outstanding		Preferred Stock		Common Shares Outstanding			Common Stock		Capital Surplus			Accum. Other Comprehensive Income (Loss)			Retained Earnings			Treasury Stock			Total
Balance as of December 31, 2022		180,000	$	180,000		39,835,750		$	582	$	620,578		$	(434,658	)	$	2,055,912		$	(1,105,419	)	$	1,316,995
Net Income		—		—		—			—		—			—			46,842			—			46,842
Other Comprehensive Income		—		—		—			—		—			29,360			—			—			29,360
Share-Based Compensation		—		—		—			—		3,371			—			—			—			3,371
Common Stock Issued under Purchase and    Equity Compensation Plans		—		—		13,164			1		177			—			1,587			(197	)		1,568
Common Stock Repurchased		—		—		(202,408	)		—		—			—			—			(13,793	)		(13,793	)
Cash Dividends Declared Common Stock    ($0.70 per share)		—		—		—			—		—			—			(27,944	)		—			(27,944	)
Cash Dividends Declared Preferred Stock		—		—		—			—		—			—			(1,969	)		—			(1,969	)
Balance as of March 31, 2023		180,000	$	180,000		39,646,506		$	583	$	624,126		$	(405,298	)	$	2,074,428		$	(1,119,409	)	$	1,354,430
Net Income		—		—		—			—		—			—			46,061			—			46,061
Other Comprehensive Loss		—		—		—			—		—			(18,133	)		—			—			(18,133	)
Share-Based Compensation		—		—		—			—		4,301			—			—			—			4,301
Common Stock Issued under Purchase and    Equity Compensation Plans		—		—		81,601			—		(225	)		—			699			1,183			1,657
Common Stock Repurchased		—		—		(2,759	)		—		—			—			—			(138	)		(138	)
Cash Dividends Declared Common Stock    ($0.70 per share)		—		—		—			—		—			—			(27,930	)		—			(27,930	)
Cash Dividends Declared Preferred Stock		—		—		—			—		—			—			(1,969	)		—			(1,969	)
Balance as of June 30, 2023		180,000	$	180,000		39,725,348		$	583	$	628,202		$	(423,431	)	$	2,091,289		$	(1,118,364	)	$	1,358,279
Balance as of December 31, 2021		180,000	$	180,000		40,253,193		$	581	$	602,508		$	(66,382	)	$	1,950,375		$	(1,055,471	)	$	1,611,611
Net Income		—		—		—			—		—			—			54,834			—			54,834
Other Comprehensive Loss		—		—		—			—		—			(179,771	)		—			—			(179,771	)
Share-Based Compensation		—		—		—			—		4,010			—			—			—			4,010
Common Stock Issued under Purchase and    Equity Compensation Plans		—		—		197,783			1		543			—			(185	)		2,036			2,395
Common Stock Repurchased		—		—		(162,611	)		—		—			—			—			(13,960	)		(13,960	)
Cash Dividends Declared Common Stock    ($0.70 per share)		—		—		—			—		—			—			(28,265	)		—			(28,265	)
Cash Dividends Declared Preferred Stock						—			—		—			—			(1,969	)		—			(1,969	)
Balance as of March 31, 2022		180,000	$	180,000		40,288,365		$	582	$	607,061		$	(246,153	)	$	1,974,790		$	(1,067,395	)	$	1,448,885
Net Income		—		—		—			—		—			—			56,862			—			56,862
Other Comprehensive Loss		—		—		—			—		—			(122,295	)		—			—			(122,295	)
Share-Based Compensation		—		—		—			—		4,162			—			—			—			4,162
Common Stock Issued under Purchase and    Equity Compensation Plans		—		—		30,442			—		471			—			531			661			1,663
Common Stock Repurchased		—		—		(136,148	)		—		—			—			—			(10,353	)		(10,353	)
Cash Dividends Declared Common Stock    ($0.70 per share)		—		—		—			—		—			—			(28,209	)		—			(28,209	)
Cash Dividends Declared Preferred Stock																	(1,969	)					(1,969	)
Balance as of June 30, 2022		180,000	$	180,000		40,182,659		$	582	$	611,694		$	(368,448	)	$	2,002,005		$	(1,077,087	)	$	1,348,746

The accompanying notes are an integral part of the Consolidated Financial Statements (Unaudited).

5

Bank of Hawai‘i Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

	Six Months Ended
	June 30,
(dollars in thousands)	2023			2022
Operating Activities
Net Income	$	92,903		$	111,696
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Provision for Credit Losses		4,500			(8,000	)
Depreciation and Amortization		11,525			10,607
Amortization of Deferred Loan and Lease Costs (Fees), Net		444			(561	)
Amortization and Accretion of Premiums/Discounts on Investment Securities, Net		6,742			12,453
Amortization of Operating Lease Right-of-Use Assets		5,808			5,798
Share-Based Compensation		7,672			8,172
Benefit Plan Contributions		(949	)		(825	)
Deferred Income Taxes		(734	)		839
Net Gains on Sales of Loans and Leases		(1,275	)		(2,463	)
Net Losses on Sales of Investment Securities		3,102			2,840
Proceeds from Sales of Loans Held for Sale		19,107			102,806
Originations of Loans Held for Sale		(21,853	)		(79,660	)
Net Tax (Deficiency) Benefits from Share-Based Compensation		(490	)		163
Net Change in Other Assets and Other Liabilities		(145,871	)		(5,516	)
Net Cash (Used in) Provided by Operating Activities		(19,369	)		158,349
Investing Activities
Investment Securities Available-for-Sale:
Proceeds from Prepayments and Maturities		174,574			456,420
Purchases		(246	)		(556,154	)
Investment Securities Held-to-Maturity:
Proceeds from Prepayments and Maturities		220,415			381,387
Purchases		—			(15,240	)
Net Change in Loans and Leases		(270,751	)		(692,179	)
Purchases of Premises and Equipment		(5,046	)		(13,277	)
Net Cash Provided by (Used in) Investing Activities		118,946			(439,043	)
Financing Activities
Net Change in Deposits		(107,081	)		665,573
Net Change in Short-Term Borrowings		—			(25,000	)
Proceeds from Long-Term Debt		1,350,000			—
Repayments of Long-Term Debt		(51	)		(48	)
Proceeds from Issuance of Common Stock		2,973			3,826
Repurchase of Common Stock		(13,931	)		(24,313	)
Cash Dividends Paid on Common Stock		(55,874	)		(56,474	)
Cash Dividends Paid on Preferred Stock		(3,938	)		(3,938	)
Net Cash Provided by Financing Activities		1,172,098			559,626
Net Change in Cash and Cash Equivalents		1,271,675			278,932
Cash and Cash Equivalents at Beginning of Period		401,767			560,434
Cash and Cash Equivalents at End of Period	$	1,673,442		$	839,366
Supplemental Information
Cash Paid for Interest	$	110,741		$	11,924
Cash Paid for Income Taxes		30,623			24,946
Non-Cash Investing and Financing Activities:
Transfer from Loans to Loans Held for Sale		—			380
Transfer from Loans Held for Sale to Loans		569			—

The accompanying notes are an integral part of the Consolidated Financial Statements (Unaudited).

6

Bank of Hawai‘i Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Unaudited)

Note 1. Summary of Significant Accounting Policies

Basis of Presentation

Bank of Hawaii Corporation (the “Parent”) is a Delaware corporation and a bank holding company headquartered in Honolulu, Hawaii. Bank of Hawai‘i Corporation is a trade name of Bank of Hawaii Corporation, and along with its subsidiaries (collectively, the “Company”), provides a broad range of financial products and services to businesses, consumers and governments in Hawaii and the West Pacific. The majority of the Company’s operations consist of customary commercial and consumer banking services including, but not limited to, lending, leasing, deposit services, trust and investment activities, brokerage services, and trade financing. The accompanying consolidated financial statements include the accounts of the Parent and its subsidiaries. The Parent’s principal operating subsidiary is Bank of Hawaii (the “Bank”), doing business as Bank of Hawai‘i.

The consolidated financial statements in this report have not been audited by an independent registered public accounting firm, but, in the opinion of management, reflect all adjustments necessary for a fair presentation of the results for the interim periods. All such adjustments are of a normal recurring nature. Intercompany accounts and transactions have been eliminated in consolidation. Certain prior period information has been reclassified to conform to the current period presentation. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for the full fiscal year or any future period.

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements and should be read in conjunction with the 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. Significant changes to accounting policies from those disclosed in our audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K are presented below.

In January 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a prospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications made on January 1, 2023 and forward to borrowers experiencing financial difficulty. Instead, these modifications are included in their respective cohort and a historical loss rate is applied to the current loan balance to arrive at the quantitative baseline portion of the Allowance for Credit Losses.

Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral.

Accounting Standard Pending Adoption

In March 2023, the FASB issued ASU 2023-02, “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” ASU 2023-02 permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. ASU 2023-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. ASU 2023-02 is not expected to have a material impact on the Company’s consolidated financial statements.

7

Note 2. Cash and Cash Equivalents

The following table provides a reconciliation of cash and cash equivalents reported within the consolidated statement of condition:

(dollars in thousands)	June 30, 2023
Interest-Bearing Deposits in Other Banks	$	2,261
Funds Sold		1,273,109
Cash and Due From Banks		398,072
Total Cash and Cash Equivalents	$	1,673,442

8

Note 3. Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities as of June 30, 2023, and December 31, 2022, were as follows:

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2023
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	235,178	$	472	$	(14,569	)	$	221,081
Debt Securities Issued by States and Political Subdivisions		107,621		142		(11,223	)		96,540
Debt Securities Issued by U.S. Government-Sponsored Enterprises		1,757		—		(120	)		1,637
Debt Securities Issued by Corporations		844,587		552		(56,385	)		788,754
Mortgage-Backed Securities:
Residential - Government Agencies		771,006		174		(95,976	)		675,204
Residential - U.S. Government-Sponsored Enterprises		869,381		—		(124,667	)		744,714
Commercial - Government Agencies or Sponsored Agencies		163,474		—		(24,681	)		138,793
Total Mortgage-Backed Securities		1,803,861		174		(245,324	)		1,558,711
Total	$	2,993,004	$	1,340	$	(327,621	)	$	2,666,723
Held-to-Maturity:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	131,678	$	—	$	(17,666	)	$	114,012
Debt Securities Issued by Corporations		12,094		—		(2,174	)		9,920
Mortgage-Backed Securities:
Residential - Government Agencies		1,761,490		11		(290,874	)		1,470,627
Residential - U.S. Government-Sponsored Enterprises		2,856,709		7		(387,659	)		2,469,057
Commercial - Government Agencies or Sponsored Agencies		440,727		—		(93,340	)		347,387
Total Mortgage-Backed Securities		5,058,926		18		(771,873	)		4,287,071
Total	$	5,202,698	$	18	$	(791,713	)	$	4,411,003
December 31, 2022
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	248,335	$	638	$	(15,067	)	$	233,906
Debt Securities Issued by States and Political Subdivisions		107,689		158		(12,582	)		95,265
Debt Securities Issued by U.S. Government-Sponsored Enterprises		48,807		—		(179	)		48,628
Debt Securities Issued by Corporations		850,585		809		(56,736	)		794,658
Mortgage-Backed Securities:
Residential - Government Agencies		828,798		245		(96,215	)		732,828
Residential - U.S. Government-Sponsored Enterprises		919,980		1		(126,110	)		793,871
Commercial - Government Agencies or Sponsored Agencies		168,242		—		(22,575	)		145,667
Total Mortgage-Backed Securities		1,917,020		246		(244,900	)		1,672,366
Total	$	3,172,436	$	1,851	$	(329,464	)	$	2,844,823
Held-to-Maturity:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	131,619	$	—	$	(18,202	)	$	113,417
Debt Securities Issued by Corporations		17,014		—		(2,534	)		14,480
Mortgage-Backed Securities:
Residential - Government Agencies		1,848,239		35		(294,047	)		1,554,227
Residential - U.S. Government-Sponsored Enterprises		2,968,322		8		(397,055	)		2,571,275
Commercial - Government Agencies or Sponsored Agencies		448,945		—		(86,951	)		361,994
Total Mortgage-Backed Securities		5,265,506		43		(778,053	)		4,487,496
Total	$	5,414,139	$	43	$	(798,789	)	$	4,615,393

The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities disclosed throughout this footnote. For available-for-sale (“AFS”) debt securities, AIR totaled $11.4 million and $11.7 million as of June 30, 2023, and December 31, 2022, respectively. For held-to-maturity (“HTM”) debt securities, AIR totaled $10.1 million and $9.2 million as of June 30, 2023, and December 31, 2022, respectively. AIR is included in the Accrued Interest Receivable line item on the Company’s consolidated statements of condition.

9

The table below presents an analysis of the contractual maturities of the Company’s investment securities as of June 30, 2023. Debt securities issued by government agencies (Small Business Administration securities) and mortgage-backed securities are disclosed separately in the table below as these investment securities may prepay prior to their scheduled contractual maturity dates.

(dollars in thousands)	Amortized Cost		Fair Value
Available-for-Sale:
Due in One Year or Less	$	9,012	$	8,980
Due After One Year Through Five Years		443,955		419,503
Due After Five Years Through Ten Years		651,597		595,753
Due After Ten Years		6,380		5,172
		1,110,944		1,029,408
Debt Securities Issued by Government Agencies		78,199		78,604
Mortgage-Backed Securities:
Residential - Government Agencies		771,006		675,204
Residential - U.S. Government-Sponsored Enterprises		869,381		744,714
Commercial - Government Agencies or Sponsored Agencies		163,474		138,793
Total Mortgage-Backed Securities		1,803,861		1,558,711
Total	$	2,993,004	$	2,666,723
Held-to-Maturity:
Due After One Year Through Five Years		83,436		73,401
Due After Five Year Through Ten Years		49,448		41,783
Due After Ten Years		10,888		8,748
		143,772		123,932
Mortgage-Backed Securities:
Residential - Government Agencies		1,761,490		1,470,627
Residential - U.S. Government-Sponsored Enterprises		2,856,709		2,469,057
Commercial - Government Agencies or Sponsored Agencies		440,727		347,387
Total Mortgage-Backed Securities		5,058,926		4,287,071
Total	$	5,202,698	$	4,411,003

Investment securities with carrying values of $7.7 billion and $4.1 billion as of June 30, 2023, and December 31, 2022, respectively, were pledged to secure deposits of governmental entities, securities sold under agreements to repurchase, and FRB discount window borrowing.

The table below presents the losses from the sales of investment securities for the three and six months ended June 30, 2023, and June 30, 2022:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2023			2022			2023			2022
Total Losses on Sales of Investment Securities	$	(1,310	)	$	(1,295	)	$	(3,102	)	$	(2,840	)

The losses on sales of investment securities during the three and six months ended June 30, 2023, and June 30, 2022, were due to fees paid to the counterparties of the Company’s prior Visa Class B share sale transactions, which are expensed as incurred. These losses were not the result of the Company selling its investment securities.

10

The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses was not deemed necessary, aggregated by major security type and length of time in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or Longer					Total
(dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
June 30, 2023
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury    and Government Agencies	$	13,669	$	(54	)	$	145,838	$	(14,515	)	$	159,507	$	(14,569	)
Debt Securities Issued by States    and Political Subdivisions		25,209		(126	)		62,113		(11,097	)		87,322		(11,223	)
Debt Securities Issued by U.S. Government-    Sponsored Enterprises		—		—			1,636		(120	)		1,636		(120	)
Debt Securities Issued by Corporations		376,871		(2,133	)		368,538		(54,252	)		745,409		(56,385	)
Mortgage-Backed Securities:
Residential - Government Agencies		53,525		(1,939	)		617,092		(94,037	)		670,617		(95,976	)
Residential - U.S. Government-Sponsored Enterprises		10,064		(468	)		734,650		(124,199	)		744,714		(124,667	)
Commercial - Government Agencies or Sponsored Agencies		734		(33	)		138,059		(24,648	)		138,793		(24,681	)
Total Mortgage-Backed Securities		64,323		(2,440	)		1,489,801		(242,884	)		1,554,124		(245,324	)
Total	$	480,072	$	(4,753	)	$	2,067,926	$	(322,868	)	$	2,547,998	$	(327,621	)
December 31, 2022
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury    and Government Agencies	$	28,574	$	(1,118	)	$	127,841	$	(13,949	)	$	156,415	$	(15,067	)
Debt Securities Issued by States    and Political Subdivisions		11,341		(1,240	)		49,985		(11,342	)		61,326		(12,582	)
Debt Securities Issued by U.S. Government-    Sponsored Enterprises		47,825		(108	)		803		(71	)		48,628		(179	)
Debt Securities Issued by Corporations		438,225		(7,995	)		284,350		(48,741	)		722,575		(56,736	)
Mortgage-Backed Securities:
Residential - Government Agencies		386,809		(30,492	)		340,824		(65,723	)		727,633		(96,215	)
Residential - U.S. Government-Sponsored Enterprises		194,684		(22,294	)		598,986		(103,816	)		793,670		(126,110	)
Commercial - Government Agencies or Sponsored Agencies		98,694		(13,247	)		46,973		(9,328	)		145,667		(22,575	)
Total Mortgage-Backed Securities		680,187		(66,033	)		986,783		(178,867	)		1,666,970		(244,900	)
Total	$	1,206,152	$	(76,494	)	$	1,449,762	$	(252,970	)	$	2,655,914	$	(329,464	)

The Company does not believe that the AFS debt securities that were in an unrealized loss position as of June 30, 2023, which were comprised of 405 individual securities, represent a credit loss impairment. As of June 30, 2023, and December 31, 2022, the gross unrealized loss positions were primarily related to mortgage-backed securities issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. Total gross unrealized losses 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. The Company does not intend to sell the investment securities that were in an unrealized loss position and it is not more likely than not that the Company will be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity.

Substantially all of the Company’s HTM debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. Therefore, an allowance for credit losses for these securities was not deemed necessary as of June 30, 2023.

11

Interest income from taxable and non-taxable investment securities for the three and six months ended June 30, 2023, and June 30, 2022, were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2023		2022		2023		2022
Taxable	$	46,593	$	36,809	$	94,350	$	72,599
Non-Taxable		83		12		167		23
Total Interest Income from Investment Securities	$	46,676	$	36,821	$	94,517	$	72,622

As of June 30, 2023, and December 31, 2022, the carrying value of the Company’s Federal Home Loan Bank of Des Moines stock and Federal Reserve Bank stock was as follows:

(dollars in thousands)	June 30, 2023		December 31, 2022
Federal Home Loan Bank of Des Moines Stock	$	80,000	$	26,000
Federal Reserve Bank Stock		27,277		27,065
Total	$	107,277	$	53,065

These securities can only be redeemed or sold at their par value and only to the respective issuing institution or to another member institution. The Company records these non-marketable equity securities as a component of other assets and periodically evaluates these securities for impairment. Management considers these non-marketable equity securities to be long-term investments. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value.

Note 4. Loans and Leases and the Allowance for Credit Losses

Loans and Leases

The Company’s loan and lease portfolio was comprised of the following as of June 30, 2023, and December 31, 2022:

(dollars in thousands)	June 30, 2023		December 31, 2022
Commercial
Commercial and Industrial	$	1,502,676	$	1,389,066
Paycheck Protection Program		13,789		19,579
Commercial Mortgage		3,796,769		3,725,542
Construction		236,428		260,825
Lease Financing		62,779		69,491
Total Commercial		5,612,441		5,464,503
Consumer
Residential Mortgage		4,721,976		4,653,072
Home Equity		2,278,105		2,225,950
Automobile		878,767		870,396
Other 2		423,600		432,499
Total Consumer		8,302,448		8,181,917
Total Loans and Leases	$	13,914,889	$	13,646,420

1.Comprised of other revolving credit, installment, and lease financing.

Most of the Company’s lending activity is with customers located in the State of Hawaii. A substantial portion of the Company’s real estate loans are secured by real estate located in the State of Hawaii.

12

Net loss related to sales of residential mortgage loans, recorded as a component of mortgage banking income was $0.2 million for the three months ended June 30, 2023, and net gains related to sales of residential mortgage loans, recorded as a component of mortgage banking income was $0.2 million for the three months ended June 30, 2022, $0.3 million and $0.2 million for the six months ended June 30, 2023, and June 30, 2022, respectively.

The Company elected to exclude AIR from the amortized cost basis of loans disclosed throughout this footnote. As of June 30, 2023, and December 31, 2022, AIR for loans totaled $42.9 million and $40.1 million, respectively, and is included in the “accrued interest receivable” line item on the Company’s consolidated statements of condition.

Allowance for Credit Losses (the “Allowance”)

The following presents by portfolio segment, the activity in the Allowance for the three and six months ended June 30, 2023, and June 30, 2022.

(dollars in thousands)	Commercial			Consumer			Total
Three Months Ended June 30, 2023
Allowance for Credit Losses:
Balance at Beginning of Period	$	58,771		$	84,806		$	143,577
Loans and Leases Charged-Off		(203	)		(3,308	)		(3,511	)
Recoveries on Loans and Leases Previously Charged-Off		103			2,031			2,134
Net Loans and Leases Recovered (Charged-Off)		(100	)		(1,277	)		(1,377	)
Provision for Credit Losses		5,270			(2,103	)		3,167
Balance at End of Period	$	63,941		$	81,426		$	145,367
Six Months Ended June 30, 2023
Allowance for Credit Losses:
Balance at Beginning of Period	$	63,900		$	80,539		$	144,439
Loans and Leases Charged-Off		(464	)		(7,356	)		(7,820	)
Recoveries on Loans and Leases Previously Charged-Off		153			3,622			3,775
Net Loans and Leases Recovered (Charged-Off)		(311	)		(3,734	)		(4,045	)
Provision for Credit Losses		352			4,621			4,973
Balance at End of Period	$	63,941		$	81,426		$	145,367
Three Months Ended June 30, 2022
Allowance for Credit Losses:
Balance at Beginning of Period	$	62,093		$	89,935		$	152,028
Loans and Leases Charged-Off		(233	)		(3,113	)		(3,346	)
Recoveries on Loans and Leases Previously Charged-Off		51			2,664			2,715
Net Loans and Leases Recovered (Charged-Off)		(182	)		(449	)		(631	)
Provision for Credit Losses		(85	)		(2,800	)		(2,885	)
Balance at End of Period	$	61,826		$	86,686		$	148,512
Six Months Ended June 30, 2022
Allowance for Credit Losses:
Balance at Beginning of Period	$	64,950		$	92,871		$	157,821
Loans and Leases Charged-Off		(582	)		(6,672	)		(7,254	)
Recoveries on Loans and Leases Previously Charged-Off		420			4,717			5,137
Net Loans and Leases Recovered (Charged-Off)		(162	)		(1,955	)		(2,117	)
Provision for Credit Losses		(2,962	)		(4,230	)		(7,192	)
Balance at End of Period	$	61,826		$	86,686		$	148,512

13

Credit Quality Indicators

The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company uses an internal credit risk rating system that categorizes loans and leases into pass, special mention, or classified categories. Credit risk ratings are applied individually to those classes of loans and leases that have significant or unique credit characteristics that benefit from a case-by-case evaluation. These are typically loans and leases to businesses or individuals in the classes which comprise the commercial portfolio segment. Groups of loans and leases that are underwritten and structured using standardized criteria and characteristics are typically monitored and risk-rated collectively. These are typically loans and leases to individuals in the classes which comprise the consumer portfolio segment.

The following are the definitions of the Company’s credit quality indicators:

Pass:	Loans and leases in all classes within the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan or lease agreement. Residential mortgage loans that are past due 90 days or more as to principal or interest may be considered Pass if the current loan-to-value ratio is 60% or less. Home equity loans that are past due 90 days or more as to principal or interest may be considered Pass if: a) the home equity loan is in a first lien position and the current loan-to-value ratio is 60% or less; or b) the first mortgage is with the Company and the current combined loan-to-value ratio is 60% or less.
Special Mention:	Loans and leases in all classes within the commercial portfolio segment that have potential weaknesses that deserve management’s close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease. The Special Mention credit quality indicator is not used for the consumer portfolio segment.
Classified:	Loans and leases in the classes within the commercial portfolio segment that are inadequately protected by the sound worth and paying capacity of the borrower or of the collateral pledged, if any. Classified loans and leases are also those in the classes within the consumer portfolio segment that are past due 90 days or more as to principal or interest. Residential mortgage and home equity loans may be current as to principal and interest, but may be considered Classified for a period of generally up to six months following a loan modification. Following a period of demonstrated performance in accordance with the modified contractual terms, the loan may be removed from Classified status.

14

For Pass rated credits, risk ratings are certified at a minimum annually. For Special Mention or Classified credits, risk ratings are reviewed for appropriateness on an ongoing basis, monthly, or at a minimum, quarterly. The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of June 30, 2023.

		Term Loans by Origination Year
(dollars in thousands)	2023 2			2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
June 30, 2023
Commercial
Commercial and Industrial
Pass		$	289,456	$	295,319	$	250,845	$	159,176	$	44,914	$	86,713	$	330,831	$	205	$	1,457,459
Special Mention			551		11,617		2,354		49		-		-		1,763		-		16,334
Classified			83		2,532		5,847		6,731		11		8,486		5,176		17		28,883
Total Commercial and Industrial		$	290,090	$	309,468	$	259,046	$	165,956	$	44,925	$	95,199	$	337,770	$	222	$	1,502,676
Paycheck Protection Program
Pass		$	-	$	-	$	2,692	$	11,097	$	-	$	-	$	-	$	-	$	13,789
Total Paycheck Protection Program		$	-	$	-	$	2,692	$	11,097	$	-	$	-	$	-	$	-	$	13,789
Commercial Mortgage
Pass		$	675,565	$	997,296	$	725,699	$	460,847	$	250,447	$	491,306	$	42,928	$	-	$	3,644,088
Special Mention			30,482		61,921		6,249		-		-		19,399		-		-		118,051
Classified			3,220		4,313		6,351		13,593		234		6,919		-		-		34,630
Total Commercial Mortgage		$	709,267	$	1,063,530	$	738,299	$	474,440	$	250,681	$	517,624	$	42,928	$	-	$	3,796,769
Construction
Pass		$	19,496	$	125,499	$	71,654	$	2,859	$	16,184	$	296	$	440	$	-	$	236,428
Total Construction		$	19,496	$	125,499	$	71,654	$	2,859	$	16,184	$	296	$	440	$	-	$	236,428
Lease Financing
Pass		$	4,938	$	14,413	$	15,495	$	9,838	$	7,523	$	9,756	$	-	$	-	$	61,963
Classified			-		57		130		107		-		522		-		-		816
Total Lease Financing		$	4,938	$	14,470	$	15,625	$	9,945	$	7,523	$	10,278	$	-	$	-	$	62,779
Total Commercial		$	1,023,791	$	1,512,967	$	1,087,316	$	664,297	$	319,313	$	623,397	$	381,138	$	222	$	5,612,441
Consumer
Residential Mortgage
Pass		$	213,211	$	811,601	$	1,272,073	$	1,003,636	$	311,321	$	1,108,419	$	-	$	-	$	4,720,261
Classified			-		-		-		-		-		1,715		-		-		1,715
Total Residential Mortgage		$	213,211	$	811,601	$	1,272,073	$	1,003,636	$	311,321	$	1,110,134	$	-	$	-	$	4,721,976
Home Equity
Pass		$	-	$	-	$	-	$	-	$	-	$	45	$	2,235,915	$	39,738	$	2,275,698
Classified			-		-		-		-		-		-		1,168		1,239		2,407
Total Home Equity		$	-	$	-	$	-	$	-	$	-	$	45	$	2,237,083	$	40,977	$	2,278,105
Automobile
Pass		$	158,785	$	351,850	$	180,380	$	82,119	$	64,406	$	40,650	$	-	$	-	$	878,190
Classified			-		94		93		114		199		77		-		-		577
Total Automobile		$	158,785	$	351,944	$	180,473	$	82,233	$	64,605	$	40,727	$	-	$	-	$	878,767
Other1
Pass		$	68,369	$	160,685	$	108,394	$	20,822	$	25,708	$	38,104	$	884	$	-	$	422,966
Classified			-		153		154		13		146		168		-		-		634
Total Other		$	68,369	$	160,838	$	108,548	$	20,835	$	25,854	$	38,272	$	884	$	-	$	423,600
Total Consumer		$	440,365	$	1,324,383	$	1,561,094	$	1,106,704	$	401,780	$	1,189,178	$	2,237,967	$	40,977	$	8,302,448
Total Loans and Leases		$	1,464,156	$	2,837,350	$	2,648,410	$	1,771,001	$	721,093	$	1,812,575	$	2,619,105	$	41,199	$	13,914,889

1.Comprised of other revolving credit, installment, and lease financing.

2.Loans reported as Special Mention or Classified in the 2023 column represent renewal of loans that originated in an earlier period.

For the six months ended June 30, 2023, $5.3 million of revolving loans were converted to term loans.

15

The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of December 31, 2022.

		Term Loans by Origination Year
(dollars in thousands)	2022			2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
December 31, 2022
Commercial
Commercial and Industrial
Pass		$	360,748	$	348,300	$	224,264	$	59,127	$	46,799	$	71,906	$	257,349	$	155	$	1,368,648
Special Mention			273		-		-		-		96		92		1,357		-		1,818
Classified			7,295		91		1,030		-		1,644		6,267		2,252		21		18,600
Total Commercial and Industrial		$	368,316	$	348,391	$	225,294	$	59,127	$	48,539	$	78,265	$	260,958	$	176	$	1,389,066
Paycheck Protection Program
Pass		$	-	$	5,359	$	14,220	$	-	$	-	$	-	$	-	$	-	$	19,579
Total Paycheck Protection Program		$	-	$	5,359	$	14,220	$	-	$	-	$	-	$	-	$	-	$	19,579
Commercial Mortgage
Pass		$	1,182,831	$	771,375	$	691,054	$	283,553	$	131,055	$	494,924	$	48,771	$	-	$	3,603,563
Special Mention			29,707		37,657		28,105		-		1,482		5,014		-		-		101,965
Classified			182		1,964		8,545		624		-		8,699		-		-		20,014
Total Commercial Mortgage		$	1,212,720	$	810,996	$	727,704	$	284,177	$	132,537	$	508,637	$	48,771	$	-	$	3,725,542
Construction
Pass		$	124,507	$	69,992	$	37,133	$	16,838	$	-	$	297	$	12,058	$	-	$	260,825
Total Construction		$	124,507	$	69,992	$	37,133	$	16,838	$	-	$	297	$	12,058	$	-	$	260,825
Lease Financing
Pass		$	16,959	$	17,823	$	11,408	$	9,768	$	6,379	$	6,444	$	-	$	-	$	68,781
Classified			-		-		-		-		710		-		-		-		710
Total Lease Financing		$	16,959	$	17,823	$	11,408	$	9,768	$	7,089	$	6,444	$	-	$	-	$	69,491
Total Commercial		$	1,722,502	$	1,252,561	$	1,015,759	$	369,910	$	188,165	$	593,643	$	321,787	$	176	$	5,464,503
Consumer
Residential Mortgage
Pass		$	827,909	$	1,304,831	$	1,035,285	$	321,208	$	138,214	$	1,023,841	$	-	$	-	$	4,651,288
Classified			-		-		-		-		552		1,232		-		-		1,784
Total Residential Mortgage		$	827,909	$	1,304,831	$	1,035,285	$	321,208	$	138,766	$	1,025,073	$	-	$	-	$	4,653,072
Home Equity
Pass		$	-	$	-	$	-	$	-	$	-	$	890	$	2,186,598	$	36,114	$	2,223,602
Classified			-		-		-		-		-		25		1,105		1,218		2,348
Total Home Equity		$	-	$	-	$	-	$	-	$	-	$	915	$	2,187,703	$	37,332	$	2,225,950
Automobile
Pass		$	405,440	$	216,039	$	100,608	$	84,052	$	45,301	$	18,366	$	-	$	-	$	869,806
Classified			121		260		23		43		92		51		-		-		590
Total Automobile		$	405,561	$	216,299	$	100,631	$	84,095	$	45,393	$	18,417	$	-	$	-	$	870,396
Other1
Pass		$	185,347	$	124,759	$	31,343	$	39,902	$	16,364	$	9,853	$	23,228	$	1,020	$	431,816
Classified			117		114		70		148		129		24		59		22		683
Total Other		$	185,464	$	124,873	$	31,413	$	40,050	$	16,493	$	9,877	$	23,287	$	1,042	$	432,499
Total Consumer		$	1,418,934	$	1,646,003	$	1,167,329	$	445,353	$	200,652	$	1,054,282	$	2,210,990	$	38,374	$	8,181,917
Total Loans and Leases		$	3,141,436	$	2,898,564	$	2,183,088	$	815,263	$	388,817	$	1,647,925	$	2,532,777	$	38,550	$	13,646,420

1.Comprised of other revolving credit, installment, and lease financing.

For the year ended December 31, 2022, $6.2 million of revolving loans were converted to term loans.

16

Aging Analysis

Loans and leases are considered to be past due once becoming 30 days delinquent. For the consumer portfolio, this generally represents two missed monthly payments. The following presents by class, an aging analysis of the Company’s loan and lease portfolio as of June 30, 2023, and December 31, 2022.

(dollars in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Past Due 90 Days or More		Non- Accrual		Total Past Due and Non- Accrual		Current		Total Loans and Leases		Non- Accrual Loans and Leases that are Current 2
As of June 30, 2023
Commercial
Commercial and Industrial	$	202	$	252	$	—	$	17	$	471	$	1,502,205	$	1,502,676	$	17
Paycheck Protection Program		—		—		—		—		—		13,789		13,789		—
Commercial Mortgage		—		—		—		3,107		3,107		3,793,662		3,796,769		3,107
Construction		—		—		—		—		—		236,428		236,428		—
Lease Financing		—		—		—		—		—		62,779		62,779		—
Total Commercial		202		252		—		3,124		3,578		5,608,863		5,612,441		3,124
Consumer
Residential Mortgage		2,173		1,882		3,560		3,504		11,119		4,710,857		4,721,976		884
Home Equity		2,464		1,826		2,022		3,809		10,121		2,267,984		2,278,105		751
Automobile		10,830		1,668		577		—		13,075		865,692		878,767		—
Other 1		2,169		748		633		—		3,550		420,050		423,600		—
Total Consumer		17,636		6,124		6,792		7,313		37,865		8,264,583		8,302,448		1,635
Total	$	17,838	$	6,376	$	6,792	$	10,437	$	41,443	$	13,873,446	$	13,914,889	$	4,759
As of December 31, 2022
Commercial
Commercial and Industrial	$	252	$	9	$	—	$	37	$	298	$	1,388,768	$	1,389,066	$	37
Paycheck Protection Program		—		—		—		—		—		19,579		19,579		—
Commercial Mortgage		—		—		—		3,309		3,309		3,722,233		3,725,542		3,309
Construction		—		—		—		—		—		260,825		260,825		—
Lease Financing		—		—		—		—		—		69,491		69,491		—
Total Commercial		252		9		—		3,346		3,607		5,460,896		5,464,503		3,346
Consumer
Residential Mortgage		3,016		721		2,429		4,239		10,405		4,642,667		4,653,072		1,729
Home Equity		1,639		960		1,673		4,022		8,294		2,217,656		2,225,950		664
Automobile		13,293		1,988		589		—		15,870		854,526		870,396		—
Other 1		2,318		1,302		683		—		4,303		428,196		432,499		—
Total Consumer		20,266		4,971		5,374		8,261		38,872		8,143,045		8,181,917		2,393
Total	$	20,518	$	4,980	$	5,374	$	11,607	$	42,479	$	13,603,941	$	13,646,420	$	5,739

1.Comprised of other revolving credit, installment, and lease financing.

2.Represents non-accrual loans that are not past due 30 days or more; however, full payment of principal and interest is still not expected.

17

Non-Accrual Loans and Leases

The following presents the non-accrual loans and leases as of June 30, 2023, and December 31, 2022.

	June 30, 2023						December 31, 2022
(dollars in thousands)	Non-accrual loans with a related ACL		Non-accrual loans without a related ACL		Total Non- accrual loans		Non-accrual loans with a related ACL		Non-accrual loans without a related ACL		Total Non- accrual loans
Commercial
Commercial and Industrial	$	17	$	—	$	17	$	37	$	—	$	37
Commercial Mortgage		—		3,107		3,107		—		3,309		3,309
Total Commercial		17		3,107		3,124		37		3,309		3,346
Consumer
Residential Mortgage		3,504		—		3,504		4,239		—		4,239
Home Equity		3,809		—		3,809		4,022		—		4,022
Total Consumer		7,313		—		7,313		8,261		—		8,261
Total	$	7,330	$	3,107	$	10,437	$	8,298	$	3,309	$	11,607

All payments received while on non-accrual status are applied against the principal balance of the loan or lease. The Company does not recognize interest income while loans or leases are on non-accrual status.

Loan Modifications to Borrowers Experiencing Financial Difficulty

Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. The following illustrates the most common loan modifications by loan classes offered by the Company that are required to be disclosed pursuant to the requirements of ASU 2022-02:

Loan Classes	Modification Types
Commercial:	Term extension, interest rate reductions, payment delay, or combination thereof. These modifications extend the term of the loan, lower the payment amount, or otherwise delay payments during a defined period for the purpose of providing borrowers additional time to return to compliance with the original loan term.
Residential Mortgage/ Home Equity:	Forbearance period greater than six months. These modifications require reduced or no payments during the forbearance period for the purpose of providing borrowers additional time to return to compliance with the original loan term.
Residential Mortgage/ Home Equity:	Term extension and rate adjustment. These modifications extend the term of the loan and provides for an adjustment to the interest rate, which reduces the monthly payment requirement.
Automobile/ Direct Installment:	Term extension greater than three months. These modifications extend the term of the loan, which reduces the monthly payment requirement.

18

The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during three and six months ended June 30, 2023.

									%
					Payment				of
					Delay				Total
			Interest		and				Class of
	Term		Rate		Term				Loans and
(dollars in thousands)	Extension		Reduction		Extension		Total		Leases
Three Months Ended June 30, 2023
Commercial
Commercial and Industrial	$	91	$	—	$	—	$	91		0.01	%
Commercial Mortgage		—		952		—		952		0.03	%
Total Commercial		91		952		—		1,043		0.02	%
Consumer
Residential Mortgage		—		—		—		—		0.00	%
Home Equity		—		—		—		—		0.00	%
Automobile		2,654		—		—		2,654		0.30	%
Other1		215		—		—		215		0.05	%
Total Consumer		2,869		—		—		2,869		0.03	%
Total Loans and Leases	$	2,960	$	952	$	—	$	3,912		0.03	%
Six Months Ended June 30, 2023
Commercial
Commercial and Industrial	$	91	$	—	$	6,695	$	6,786		0.45	%
Commercial Mortgage		—		952		—		952		0.03	%
Total Commercial		91		952		6,695		7,738		0.14	%
Consumer
Residential Mortgage		134		—		—		134		0.00	%
Home Equity		139		—		—		139		0.01	%
Automobile		4,411		—		—		4,411		0.50	%
Other1		384		—		—		384		0.09	%
Total Consumer		5,068		—		—		5,068		0.06	%
Total Loans and Leases	$	5,159	$	952	$	6,695	$	12,806		0.09	%

1 Comprised of other revolving credit, installment and lease financing.

19

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2023.

	Weighted-Average		Weighted-Average		Weighted-Average
	Months of		Payment		Interest Rate
(dollars in thousands)	Term Extension		Deferral		Reduction
Three Months Ended June 30, 2023
Commercial
Commercial Mortgage		—	$	—		2.50	%
Consumer
Automobile		23		—		—
Other1		22		—		—
Six Months Ended June 30, 2023
Commercial
Commercial and Industrial		6	$	1,159		—	%
Commercial Mortgage		—		—		2.50
Consumer
Residential Mortgage		58		—		—
Home Equity		64		—		—
Automobile		23		—		—
Other1		22		—		—

1 Comprised of other revolving credit, installment and lease financing.

The following table presents the loan modifications made to borrowers experiencing financial difficulty that defaulted during the three and six months ended June 30, 2023.

	Term
(dollars in thousands)	Extension		Total
Three Months Ended June 30, 2023
Consumer
Automobile		23		23
Other1		15		15
Total Consumer		38		38
Total Loans and Leases	$	38	$	76
Six Months Ended June 30, 2023
Consumer
Automobile		23		23
Other1		15		15
Total Consumer		38		38
Total Loans and Leases	$	38	$	76

1 Comprised of other revolving credit, installment and lease financing.

20

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty as of June 30, 2023.

(dollars in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		Past Due 90 Days or More		Non- Accrual		Total
As of June 30, 2023
Commercial
Commercial and Industrial	$	6,786	$	—	$	—	$	—	$	—	$	6,786
Commercial Mortgage		952		—		—		—		—		952
Total Commercial		7,738		—		—		—		—		7,738
Consumer
Residential Mortgage		—		—		—		—		134		134
Home Equity		139		—		—		—		—		139
Automobile		4,061		327		—		23		—		4,411
Other1		333		36		15		—		—		384
Total Consumer		4,533		363		15		23		134		5,068
Total Loans and Leases		12,271	$	363	$	15	$	23	$	134	$	12,806

1 Comprised of other revolving credit, installment and lease financing.

The following table presents by loan class and year of origination, the gross charge-offs recorded during the three and six months ended June 30, 2023.

(dollars in thousands)	2023		2022		2021		2020		2019		Prior		Total
Three Months Ended June 30, 2023
Commercial
Commercial and Industrial	$	185	$	—	$	—	$	—	$	—	$	18	$	203
Total Commercial		185		—		—		—		—		18		203
Consumer
Residential Mortgage		—		—		—		—		—		6		6
Home Equity		—		—		—		—		—		5		5
Automobile		—		558		238		107		173		217		1,293
Other1		358		512		446		82		318		288		2,004
Total Consumer		358		1,070		684		189		491		516		3,308
Total	$	543	$	1,070	$	684	$	189	$	491	$	534	$	3,511
Six Months Ended June 30, 2023
Commercial
Commercial and Industrial	$	185	$	188	$	—	$	—	$	—	$	91	$	464
Total Commercial		185		188		—		—		—		91		464
Consumer
Residential Mortgage		—		—		—		—		—		6		6
Home Equity		—		—		—		—		—		55		55
Automobile		—		872		745		335		364		640		2,956
Other 1		358		1,333		1,011		202		713		722		4,339
Total Consumer		358		2,205		1,756		537		1,077		1,423		7,356
Total	$	543	$	2,393	$	1,756	$	537	$	1,077	$	1,514	$	7,820

1 Comprised of other revolving credit, installment and lease financing.

Foreclosure Proceedings

Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $5.4 million as of June 30, 2023.

21

Note 5. Mortgage Servicing Rights

The Company’s portfolio of residential mortgage loans serviced for third parties was $2.6 billion as of June 30, 2023, and $2.6 billion as of December 31, 2022. Substantially all of these loans were originated by the Company and sold to third parties on a non-recourse basis with servicing rights retained. These retained servicing rights are recorded as a servicing asset and are initially recorded at fair value (see Note 13 Fair Value of Assets and Liabilities for more information). Changes to the balance of mortgage servicing rights are recorded in mortgage banking income in the Company’s consolidated statements of income.

The Company’s mortgage servicing activities include collecting principal, interest, and escrow payments from borrowers; making tax and insurance payments on behalf of borrowers; monitoring delinquencies and executing foreclosure proceedings; and accounting for and remitting principal and interest payments to investors. Servicing income, including late and ancillary fees, was $1.4 million and $1.5 million for the three months ended June 30, 2023, and June 30, 2022, respectively, and $2.8 million and $3.0 million for the six months ended June 30, 2023, and June 30, 2022, respectively. Servicing income is recorded in mortgage banking income in the Company’s consolidated statements of income. The Company’s residential mortgage investor loan servicing portfolio is primarily comprised of fixed rate loans concentrated in Hawaii.

For the three and six months ended June 30, 2023, and June 30, 2022, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2023			2022			2023			2022
Balance at Beginning of Period	$	707		$	781		$	717		$	800
Change in Fair Value Due to Payoffs		(12	)		(34	)		(22	)		(53	)
Balance at End of Period	$	695		$	747		$	695		$	747

For the three months and six months ended June 30, 2023, and June 30, 2022, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2023			2022			2023			2022
Balance at Beginning of Period	$	21,395		$	23,187		$	21,902		$	21,451
Servicing Rights that Resulted From Asset Transfers		110			205			176			956
Amortization		(574	)		(599	)		(1,147	)		(1,443	)
Valuation Allowance Recovery (Provision)		—			—			—			1,829
Balance at End of Period	$	20,931		$	22,793		$	20,931		$	22,793
Valuation Allowance:
Balance at Beginning of Period	$	—		$	—		$	—		$	(1,829	)
Valuation Allowance Recovery (Provision)		—			—			—			1,829
Balance at End of Period	$	—		$	—		$	—		$	—
Fair Value of Mortgage Servicing Rights Accounted for    Under the Amortization Method
Beginning of Period	$	26,456		$	26,088		$	27,323		$	21,451
End of Period	$	26,327		$	28,314		$	26,327		$	28,314

22

The key data and assumptions used in estimating the fair value of the Company’s mortgage servicing rights as of June 30, 2023, and December 31, 2022, were as follows:

	June 30, 2023			December 31, 2022
Weighted-Average Constant Prepayment Rate 1		3.93	%		4.02	%
Weighted-Average Life (in years)		9.61			9.64
Weighted-Average Note Rate		3.62	%		3.60	%
Weighted-Average Discount Rate 2		9.71	%		9.93	%

1.Represents annualized loan prepayment rate assumption.

2.Derived from multiple interest rate scenarios that incorporate a spread to a market yield curve and market volatilities.

A sensitivity analysis of the Company’s fair value of mortgage servicing rights to changes in certain key assumptions as of June 30, 2023, and December 31, 2022, is presented in the following table.

(dollars in thousands)	June 30, 2023			December 31, 2022
Constant Prepayment Rate
Decrease in fair value from 25 basis points (“bps”) adverse change	$	(335	)	$	(346	)
Decrease in fair value from 50 bps adverse change		(663	)		(686	)
Discount Rate
Decrease in fair value from 25 bps adverse change		(306	)		(316	)
Decrease in fair value from 50 bps adverse change		(606	)		(626	)

This analysis generally cannot be extrapolated because the relationship of a change in one key assumption to the change in the fair value of the Company’s mortgage servicing rights usually is not linear. Also, the effect of changing one key assumption without changing other assumptions is not realistic.

Note 6. Affordable Housing Projects Tax Credit Partnerships

The Company makes equity investments in various limited partnerships or limited liability companies that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit (“LIHTC”) pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital, to facilitate the sale of affordable housing product offerings, and to assist in achieving goals associated with the Community Reinvestment Act. The primary activities of these entities include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants. Generally, these types of investments are funded through a combination of debt and equity.

The Company is a limited partner or non-managing member in each LIHTC limited partnership or limited liability company, respectively. Each of these entities is managed by an unrelated third-party general partner or managing member who exercises significant control over the affairs of the entity. The general partner or managing member has all the rights, powers and authority granted or permitted to be granted to a general partner of a limited partnership or managing member of a limited liability company. Duties entrusted to the general partner or managing member include, but are not limited to: investment in operating companies, company expenditures, investment of excess funds, borrowing funds, employment of agents, disposition of fund property, prepayment and refinancing of liabilities, votes and consents, contract authority, disbursement of funds, accounting methods, tax elections, bank accounts, insurance, litigation, cash reserve, and use of working capital reserve funds. Except for limited rights granted to the limited partner(s) or non-managing member(s) relating to the approval of certain transactions, the limited partner(s) and non-managing member(s) may not participate in the operation, management, or control of the entity’s business, transact any business in the entity’s name or have any power to sign documents for or otherwise bind the entity. In addition, the general partner or managing member may only be removed by the limited partner(s) or managing member(s) in the event of a failure to comply with the terms of the agreement or negligence in performing its duties.

23

The general partner or managing member of each entity has both the power to direct the activities which most significantly affect the performance of each entity and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. Therefore, the Company has determined that it is not the primary beneficiary of any LIHTC entity. The Company uses the effective yield method to account for its pre-2015 investments in these entities. Beginning January 1, 2015, any new investments that meet the requirements of the proportional amortization method are recognized using the proportional amortization method. The Company’s net affordable housing tax credit investments including the related unfunded commitments were $183.2 million and $174.5 million as of June 30, 2023, and December 31, 2022, respectively, and are included in other assets in the consolidated statements of condition.

Unfunded Commitments

As of June 30, 2023, the expected payments for unfunded affordable housing commitments were as follows:

(dollars in thousands)	Amount
2023	$	22,653
2024		24,731
2025		24,115
2026		156
2027		133
Thereafter		12,721
Total Unfunded Commitments	$	84,509

The following table presents tax credits and other tax benefits recognized and amortization expense related to affordable housing for the three and six months ended June 30, 2023, and June 30, 2022.

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2023		2022		2023		2022
Effective Yield Method
Tax Credits and Other Tax Benefits Recognized	$	1,457	$	1,528	$	2,915	$	3,066
Amortization Expense in Provision for Income Taxes		1,333		1,296		2,666		2,593
Proportional Amortization Method
Tax Credits and Other Tax Benefits Recognized	$	5,438	$	3,794	$	10,876	$	7,579
Amortization Expense in Provision for Income Taxes		4,713		3,265		9,426		6,529

There were no impairment losses related to LIHTC investments during the six months ended June 30, 2023, and June 30, 2022.

24

Note 7. Securities Sold Under Agreements to Repurchase

The following table presents the remaining contractual maturities of the Company’s repurchase agreements as of June 30, 2023, and December 31, 2022, disaggregated by the class of collateral pledged.

	Remaining Contractual Maturity of Repurchase Agreements
(dollars in thousands)	Up to  90 days		91-365 days		1-3 Years		After 3 Years		Total
June 30, 2023
Class of Collateral Pledged:
Debt Securities Issued by States and Political Subdivisions	$	—	$	—	$	490	$	—	$	490
Mortgage-Backed Securities:
Residential - Government Agencies		—		—		34,014		—		34,014
Residential - U.S. Government-Sponsored Enterprises		—		—		390,986		300,000		690,986
Total	$	—	$	—	$	425,490	$	300,000	$	725,490
December 31, 2022
Class of Collateral Pledged:
Debt Securities Issued by States and Political Subdivisions	$	—	$	—	$	—	$	490	$	490
Mortgage-Backed Securities:
Residential - Government Agencies		—		—		28,673		—		28,673
Residential - U.S. Government-Sponsored Enterprises		—		—		396,327		300,000		696,327
Total	$	—	$	—	$	425,000	$	300,490	$	725,490

25

The following table presents the assets and liabilities subject to an enforceable master netting arrangement, or repurchase agreements as of June 30, 2023, and December 31, 2022. The swap agreements the Company has with our commercial banking customers are not subject to an enforceable master netting arrangement, and therefore, are excluded from this table. Centrally cleared swap agreements between the Company and institutional counterparties are also excluded from this table. See Note 11 Derivative Financial Instruments for more information on swap agreements.

	(i)		(ii)		(iii) = (i)-(ii)		(iv)				(v) = (iii)-(iv)
							Gross Amounts Not Offset in the Statements of Condition
(dollars in thousands)	Gross Amounts Recognized in the Statements  of Condition		Gross Amounts Offset in the Statements of Condition		Net Amounts Presented in the Statements  of Condition		Netting Adjustments per Master Netting Arrangements		Fair Value of Collateral Pledged/ Received 1		Net Amount
June 30, 2023
Assets:
Interest Rate Swap Agreements:
Institutional Counterparties	$	157,910	$	—	$	157,910	$	157,910	$	—	$	—
Liabilities:
Interest Rate Swap Agreements:
Institutional Counterparties		4,230		—	$	4,230		4,230		—		—
Repurchase Agreements:
Private Institutions		725,000		—		725,000		—		725,000		—
Government Entities		490		—		490		—		490		—
Total Repurchase Agreements	$	725,490	$	—	$	725,490	$	—	$	725,490	$	—
December 31, 2022
Assets:
Interest Rate Swap Agreements:
Institutional Counterparties	$	42,339	$	—	$	42,339	$	42,339	$	—	$	—
Liabilities:
Interest Rate Swap Agreements:
Institutional Counterparties		3,554		—		3,554		3,554		—		—
Repurchase Agreements:
Private Institutions		725,000		—		725,000		—		725,000		—
Government Entities		490		—		490		—		490		—
Total Repurchase Agreements	$	725,490	$	—	$	725,490	$	—	$	725,490	$	—

1.The application of collateral cannot reduce the net amount below zero. Therefore, excess collateral is not reflected in this table. For interest rate swap agreements, the fair value of investment securities pledged was $3.5 million and $34.8 million as of June 30, 2023, and December 31, 2022, respectively. For repurchase agreements with private institutions, the fair value of investment securities pledged was $763.3 million and $755.9 million as of June 30, 2023, and December 31, 2022, respectively. For repurchase agreements with government entities, the fair value of investment securities pledged was $0.8 million as of June 30, 2023, and December 31, 2022.

26

Note 8. Accumulated Other Comprehensive Income (Loss)

The following table presents the components of other comprehensive income (loss) for the three and six months ended June 30, 2023, and June 30, 2022:

(dollars in thousands)	Before Tax			Tax Effect			Net of Tax
Three Months Ended June 30, 2023
Net Unrealized Gains (Losses) on Investment Securities:
Net Unrealized Gains (Losses) Arising During the Period	$	(31,586	)	$	(8,371	)	$	(23,215	)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)    that (Increase) Decrease Net Income:
Amortization of Unrealized Holding (Gains) Losses on Held-to-    Maturity Securities 1		6,801			1,803			4,998
Net Unrealized Gains (Losses) on Investment Securities		(24,785	)		(6,568	)		(18,217	)
Defined Benefit Plans:
Amortization of Net Actuarial Losses (Gains)		177			46			131
Amortization of Prior Service Credit		(62	)		(15	)		(47	)
Defined Benefit Plans, Net		115			31			84
Other Comprehensive Income (Loss)	$	(24,670	)	$	(6,537	)	$	(18,133	)
Three Months Ended June 30, 2022
Net Unrealized Gains (Losses) on Investment Securities:
Net Unrealized Gains (Losses) Arising During the Period	$	(166,878	)	$	(44,233	)	$	(122,645	)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)    that (Increase) Decrease Net Income:
Amortization of Unrealized Holding (Gains) Losses on Held-to-    Maturity Securities 1		(3	)		(1	)		(2	)
Net Unrealized Gains (Losses) on Investment Securities		(166,881	)		(44,234	)		(122,647	)
Defined Benefit Plans:
Amortization of Net Actuarial Losses (Gains)		542			145			397
Amortization of Prior Service Credit		(61	)		(16	)		(45	)
Defined Benefit Plans, Net		481			129			352
Other Comprehensive Income (Loss)	$	(166,400	)	$	(44,105	)	$	(122,295	)
Six Months Ended June 30, 2023
Net Unrealized Gains (Losses) on Investment Securities:
Net Unrealized Gains (Losses) Arising During the Period	$	1,332		$	352		$	980
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)    that (Increase) Decrease Net Income:
Amortization of Unrealized Holding (Gains) Losses on Held-to-    Maturity Securities 1		13,714			3,635			10,079
Net Unrealized Gains (Losses) on Investment Securities		15,046			3,987			11,059
Defined Benefit Plans:
Amortization of Net Actuarial Losses (Gains)		352			93			259
Amortization of Prior Service Credit		(123	)		(32	)		(91	)
Defined Benefit Plans, Net		229			61			168
Other Comprehensive Income (Loss)	$	15,275		$	4,048		$	11,227
Six Months Ended June 30, 2022
Net Unrealized Gains (Losses) on Investment Securities:
Net Unrealized Gains (Losses) Arising During the Period	$	(412,026	)	$	(109,208	)	$	(302,818	)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)    that (Increase) Decrease Net Income:
Amortization of Unrealized Holding (Gains) Losses on Held-to-    Maturity Securities 1		63			16			47
Net Unrealized Gains (Losses) on Investment Securities		(411,963	)		(109,192	)		(302,771	)
Defined Benefit Plans:
Amortization of Net Actuarial Losses (Gains)		1,084			288			796
Amortization of Prior Service Credit		(123	)		(32	)		(91	)
Defined Benefit Plans, Net		961			256			705
Other Comprehensive Income (Loss)	$	(411,002	)	$	(108,936	)	$	(302,066	)

1These amount relates to the amortization/accretion of unrealized net gains and losses related to the Company’s reclassification of available-for-sale investment securities to the held-to-maturity category. The unrealized net gains/losses will be amortized/accreted over the remaining life of the investment securities as an adjustment of yield.

27

The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the three and six months ended June 30, 2023, and June 30, 2022:

(dollars in thousands)	Investment Securities- Available- for-Sale			Investment Securities- Held-to-Maturity			Defined Benefit Plans			Accumulated Other Comprehensive Income (Loss)
Three Months Ended June 30, 2023
Balance at Beginning of Period	$	(216,588	)	$	(163,716	)	$	(24,994	)	$	(405,298	)
Other Comprehensive Income (Loss) Before Reclassifications		(23,215	)		—			—			(23,215	)
Amounts Reclassified from Accumulated Other    Comprehensive Income (Loss)		—			4,998			84			5,082
Total Other Comprehensive Income (Loss)		(23,215	)		4,998			84			(18,133	)
Balance at End of Period	$	(239,803	)	$	(158,718	)	$	(24,910	)	$	(423,431	)
Three Months Ended June 30, 2022
Balance at Beginning of Period	$	(213,113	)	$	103		$	(33,143	)		(246,153	)
Other Comprehensive Income (Loss) Before Reclassifications		(122,645	)		—			—			(122,645	)
Amounts Reclassified from Accumulated Other    Comprehensive Income (Loss)		—			(2	)		352			350
Total Other Comprehensive Income (Loss)		(122,645	)		(2	)		352			(122,295	)
Balance at End of Period	$	(335,758	)	$	101		$	(32,791	)	$	(368,448	)
Six Months Ended June 30, 2023
Balance at Beginning of Period	$	(240,783	)	$	(168,797	)	$	(25,078	)	$	(434,658	)
Other Comprehensive Income (Loss) Before Reclassifications		980			—			—			980
Amounts Reclassified from Accumulated Other    Comprehensive Income (Loss)		—			10,079			168			10,247
Total Other Comprehensive Income (Loss)		980			10,079			168			11,227
Balance at End of Period	$	(239,803	)	$	(158,718	)	$	(24,910	)	$	(423,431	)
Six Months Ended June 30, 2022
Balance at Beginning of Period	$	(32,940	)	$	54		$	(33,496	)		(66,382	)
Other Comprehensive Income (Loss) Before Reclassifications		(302,818	)		—			—			(302,818	)
Amounts Reclassified from Accumulated Other    Comprehensive Income (Loss)		—			47			705			752
Total Other Comprehensive Income (Loss)		(302,818	)		47			705			(302,066	)
Balance at End of Period	$	(335,758	)	$	101		$	(32,791	)	$	(368,448	)

28

The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2023, and June 30, 2022:

Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)1						Affected Line Item in the Statement Where Net Income Is Presented
	Three Months Ended June 30,
(dollars in thousands)	2023			2022
Amortization of Unrealized Holding Gains (Losses) on    Investment Securities Held-to-Maturity	$	(6,801	)	$	3		Interest Income
		1,803			(1	)	Provision for Income Tax
		(4,998	)		2		Net of Tax
Amortization of Defined Benefit Plan Items
Prior Service Credit 2		62			61
Net Actuarial Losses 2		(177	)		(542	)
		(115	)		(481	)	Total Before Tax
		31			129		Provision for Income Tax
		(84	)		(352	)	Net of Tax
Total Reclassifications for the Period	$	(5,082	)	$	(350	)	Net of Tax
Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)1						Affected Line Item in the Statement Where Net Income Is Presented
	Six Months Ended June 30,
(dollars in thousands)	2023			2022
Amortization of Unrealized Holding Gains (Losses) on    Investment Securities Held-to-Maturity	$	(13,714	)	$	(63	)	Interest Income
		3,635			16		Provision for Income Tax
		(10,079	)		(47	)	Net of Tax
Amortization of Defined Benefit Plan Items
Prior Service Credit 2		123			123
Net Actuarial Losses 2		(352	)		(1,084	)
		(229	)		(961	)	Total Before Tax
		61			256		Provision for Income Tax
		(168	)		(705	)	Net of Tax
Total Reclassifications for the Period	$	(10,247	)	$	(752	)	Net of Tax

1.Amounts in parentheses indicate reductions to net income.

2.These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost and are included in other noninterest expense on the consolidated statements of income.

29

Note 9. Earnings Per Common Share

Earnings per common share is computed using the two-class method. The following is a reconciliation of the weighted average number of common shares used in the calculation of basic and diluted earnings per common share and antidilutive stock options and restricted stock outstanding for the three and six months ended June 30, 2023, and June 30, 2022:

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands, except shares and per share amounts)	2023		2022		2023		2022
Numerator:
Net Income Available to Common Shareholders	$	44,092	$	54,893	$	88,965	$	107,758
Denominator:
Weighted Average Common Shares Outstanding - Basic		39,241,559		39,693,593		39,259,279		39,722,985
Dilutive Effect of Equity Based Awards		75,962		149,015		123,080		173,715
Weighted Average Common Shares Outstanding - Diluted		39,317,521		39,842,608		39,382,359		39,896,700
Earnings Per Common Share:
Basic	$	1.12	$	1.38	$	2.27	$	2.71
Diluted	$	1.12	$	1.38	$	2.26	$	2.70
Antidilutive Stock Options and Restricted Stock Outstanding		411,640		201,422		226,646		160,670

Note 10. Business Segments

The Company’s business segments are defined as Consumer Banking, Commercial Banking, and Treasury and Other. The Company’s internal management accounting process measures the performance of these business segments. This process, which is not necessarily comparable with the process used by 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. Previously reported results have been reclassified to conform to the current reporting structure.

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. However, the other business segments have some latitude to retain certain interest rate exposures related to customer pricing decisions within guidelines.

The provision for credit losses for the Consumer Banking and Commercial Banking business segments reflects the actual net charge-offs of those business segments. The amount of the consolidated provision for loan and lease losses is based on the methodology that the Company used to estimate our consolidated Allowance. The residual provision for credit losses to arrive at the consolidated provision for credit losses is included in Treasury and Other.

Noninterest income and expense includes allocations from support units to business units. These allocations are based on actual usage where practicably calculated or by management’s estimate of such usage.

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The provision for income taxes is allocated to business segments using a 26% effective income tax rate. However, the provision for income taxes for our Commercial Leasing portfolio (included in the Commercial Banking segment) and Auto Leasing portfolio and Pacific Century Life Insurance business unit (both included in the Consumer Banking segment) are assigned their actual effective income tax rates due to the unique relationship that income taxes have with their products. The residual income tax expense or benefit to arrive at the consolidated effective tax rate is included in Treasury and Other.

Consumer Banking

Consumer Banking offers a broad range of financial products and services, including loan, deposit and insurance products; private banking and international client banking services; trust services; investment management; and institutional investment advisory services. Consumer Banking also provides a full service brokerage offering equities, mutual funds, life insurance, and annuity products. Loan and lease products include residential mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, small business loans and leases, and credit cards. Deposit products include checking, savings, and time deposit accounts. Private banking and personal trust groups assist individuals and families in building and preserving their wealth by providing investment, credit, and trust services to high-net-worth individuals. The investment management group manages portfolios utilizing a variety of investment products. Also within Consumer Banking, institutional client services offer investment advice to corporations, government entities, and foundations. Products and services from Consumer Banking are delivered to customers through 51 branch locations and 320 ATMs throughout Hawaii and the Pacific Islands, e-Bankoh (online banking service), a customer service center, and a mobile banking service.

Commercial Banking

Commercial Banking offers products including corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. Commercial lending and deposit products are offered to middle-market and large companies in Hawaii and the Pacific Islands. In addition, Commercial Banking offers deposit products to government entities in Hawaii. Commercial real estate mortgages focus on customers that include investors, developers, and builders predominantly domiciled in Hawaii. Commercial Banking also includes international banking and provides merchant services to its customers.

Treasury and Other

Treasury consists of corporate asset and liability management activities, including interest rate risk management and a foreign currency exchange business. This segment’s assets and liabilities (and related interest income and expense) consist of interest-bearing deposits, investment securities, federal funds sold and purchased, and short and long-term borrowings. The primary sources of noninterest income are from bank-owned life insurance, net gains from the sale of investment securities, and foreign exchange income related to customer-driven currency requests from merchants and island visitors. 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, Marketing, Human Resources, Finance, Credit and Risk Management, 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.

31

Selected business segment financial information as of and for the three and six months ended June 30, 2023, and June 30, 2022, were as follows:

(dollars in thousands)	Consumer Banking			Commercial Banking			Treasury and Other			Consolidated Total
Three Months Ended June 30, 2023
Net Interest Income (Loss)	$	99,814		$	53,673		$	(29,139	)	$	124,348
Provision for Credit Losses		1,392			(15	)		1,123			2,500
Net Interest Income (Loss) After Provision for Credit Losses		98,422			53,688			(30,262	)		121,848
Noninterest Income		31,944			7,939			3,372			43,255
Noninterest Expense		(81,275	)		(19,302	)		(3,459	)		(104,036	)
Income (Loss) Before Provision for Income Taxes		49,091			42,325			(30,349	)		61,067
Provision for Income Taxes		(12,645	)		(10,710	)		8,349			(15,006	)
Net Income (Loss)	$	36,446		$	31,615		$	(22,000	)	$	46,061
Total Assets as of June 30, 2023	$	8,739,294		$	5,714,929		$	10,493,713		$	24,947,936
Three Months Ended June 30, 2022 1
Net Interest Income	$	76,872		$	49,791		$	6,239		$	132,902
Provision for Credit Losses		632			(1	)		(3,131	)		(2,500	)
Net Interest Income After Provision for Credit Losses		76,240			49,792			9,370			135,402
Noninterest Income		31,868			8,363			1,927			42,158
Noninterest Expense		(82,856	)		(17,014	)		(3,069	)		(102,939	)
Income Before Provision for Income Taxes		25,252			41,141			8,228			74,621
Provision for Income Taxes		(6,339	)		(10,252	)		(1,168	)		(17,759	)
Net Income	$	18,913		$	30,889		$	7,060		$	56,862
Total Assets as of June 30, 2022 1	$	8,205,352		$	5,339,224		$	9,688,123		$	23,232,699
Six Months Ended June 30, 2023
Net Interest Income (Loss)	$	197,822		$	110,378		$	(47,897	)	$	260,303
Provision for Credit Losses		4,061			(16	)		455			4,500
Net Interest Income (Loss) After Provision for Credit Losses		193,761			110,394			(48,352	)		255,803
Noninterest Income		63,098			16,588			4,306			83,992
Noninterest Expense		(166,348	)		(39,591	)		(10,016	)		(215,955	)
Income (Loss) Before Provision for Income Taxes		90,511			87,391			(54,062	)		123,840
Provision for Income Taxes		(23,268	)		(21,503	)		13,834			(30,937	)
Net Income (Loss)	$	67,243		$	65,888		$	(40,228	)	$	92,903
Total Assets as of June 30, 2023	$	8,739,294		$	5,714,929		$	10,493,713		$	24,947,936
Six Months Ended June 30, 2022 1
Net Interest Income	$	147,233		$	96,140		$	14,792		$	258,165
Provision for Credit Losses		2,315			(198	)		(10,117	)		(8,000	)
Net Interest Income After Provision for Credit Losses		144,918			96,338			24,909			266,165
Noninterest Income		63,837			18,561			3,311			85,709
Noninterest Expense		(164,666	)		(35,683	)		(6,464	)		(206,813	)
Income Before Provision for Income Taxes		44,089			79,216			21,756			145,061
Provision for Income Taxes		(11,053	)		(19,449	)		(2,863	)		(33,365	)
Net Income	$	33,036		$	59,767		$	18,893		$	111,696
Total Assets as of June 30, 2022 1	$	8,205,352		$	5,339,224		$	9,688,123		$	23,232,699
1  Certain prior period information has been reclassified to conform to current presentation.

Note 11. Derivative Financial Instruments

The Company uses derivative instruments to manage its exposure to market risks, including interest rate risk, and to assist customers with their risk management objectives. The Company designates certain derivatives as hedging instruments in a qualifying hedge accounting relationship, while other derivatives serve as economic hedges that do not qualify for hedge accounting.

32

The notional amount and fair value of the Company’s derivative financial instruments as of June 30, 2023, and December 31, 2022, were as follows:

	June 30, 2023					December 31, 2022
(dollars in thousands)	Notional Amount		Fair Value			Notional Amount		Fair Value
Derivatives designated as hedging instruments
Interest Rate Swap Agreements	$	200,000	$	434		$	—	$	—
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments		11,353		225			3,860		58
Forward Commitments		11,531		32			3,256		6
Interest Rate Swap Agreements
Receive Fixed/Pay Variable Swaps		1,911,911		(154,136	)		1,821,433		(160,914	)
Pay Fixed/Receive Variable Swaps		1,911,911		153,680			1,821,433		38,785
Foreign Exchange Contracts		349		1			52,065		1,745
Conversion Rate Swap Agreement 1		141,804		—			124,752	NA

1The conversation rate swap agreements were valued at zero as further reductions to the conversion rate were deemed neither probable nor reasonable estimable.

The following table presents the Company’s derivative financial instruments, their fair values, and their location in the consolidated statements of condition as of June 30, 2023, and December 31, 2022:

	June 30, 2023				December 31, 2022
	Asset		Liability		Asset		Liability
(dollars in thousands)	Derivatives		Derivatives		Derivatives		Derivatives
Derivatives designated as hedging instruments
Interest Rate Swap Agreements	$	434	$	—	$	—	$	—
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments		225		—	$	64	$	6
Forward Commitments		33		1		10		4
Interest Rate Swap Agreements		162,060		162,516		45,831		167,960
Foreign Exchange Contracts		1		—		1,812		67
Total	$	162,753	$	162,517	$	47,717	$	168,037

1Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the consolidated statements of condition. The Company’s free-standing derivative financial instruments are required to be carried at their fair value on the Company’s consolidated statements of condition.

The following table presents the Company’s derivative financial instruments and the amount and location of the net gains or losses recognized in the consolidated statements of income for the three and six months ended June 30, 2023, and June 30, 2022:

	Location of
	Net Gains (Losses)	Three Months Ended					Six Months Ended
	Recognized in the	June 30,					June 30,
(dollars in thousands)	Statements of Income	2023			2022		2023			2022
Derivatives designated as hedging instruments
Recognized on Interest Rate Swap Agreements	Interest and Fees on Loans and Leases	$	434		$	—	$	434		$	—
Recognized on Hedged Item	Interest and Fees on Loans and Leases		(435	)	$	—		(435	)	$	—
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments	Mortgage Banking		274			66		478			(1,013	)
Forward Commitments	Mortgage Banking		92			314		61			2,221
Interest Rate Swap Agreements	Other Noninterest Income		(2	)		23		(18	)		17
Foreign Exchange Contracts	Other Noninterest Income		802			232		1,643			506
Total		$	1,165		$	635	$	2,163		$	1,731

33

The following amounts were recorded on the consolidated statement of financial condition related to the cumulative basis adjustment for fair value hedges as of June 30, 2023:

Derivative Financial Instruments
Designated as Hedging Instruments
Line Item in the Consolidated Statement of Condition	Carrying Amount of the Hedged Assets			Cumulative Amount of Fair Value Hedging Adjustment Included In the Carrying Amount of the Hedged Assets
(dollars in thousands)	June 30, 2023			June 30, 2023
Loans and Leases1	$	(435	)	$	(435	)

1 These amounts were included in the amortized cost basis of closed portfolios of loans used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At June 30, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $3.3 billion.

Derivatives Not Designated as Hedging Instruments
Interest Rate Swap Agreements

The Company enters into interest rate swap agreements to facilitate the risk management strategies of a small number of commercial banking customers. The Company mitigates the risk of entering into these agreements by entering into equal and offsetting interest rate swap agreements with highly rated third party financial institutions. The interest rate swap agreements are free-standing derivatives and are recorded at fair value in the Company’s consolidated statements of condition (asset positions are included in other assets and liability positions are included in other liabilities). 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 master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of marketable securities, is posted by the party (i.e., the Company or the financial institution counterparty) with net liability positions in accordance with contract thresholds. The Company had net asset positions with its financial institution counterparties totaling $153.7 million and $38.8 million as of June 30, 2023, and December 31, 2022, respectively.

Conversion Rate Swap Agreements

As certain sales of Visa Class B restricted shares were completed, the Company entered into a conversion rate swap agreement with the buyer that requires payment to the buyer in the event Visa further reduces the conversion ratio of Class B into Class A unrestricted common shares. In the event of Visa increasing the conversion ratio, the buyer would be required to make payment to the Company. As of June 30, 2023, and December 31, 2022, the conversion rate swap agreement was valued at zero (i.e., no contingent liability recorded) as further reductions to the conversion ratio were deemed neither probable nor reasonably estimable by management.

Derivatives Designated as Hedging Instruments
Fair Value Hedges

The Company is exposed to changes in the fair value of fixed-rate assets due to changes in benchmark interest rates. The Company entered into pay-fixed and receive-floating interest rate swaps to manage its exposure to changes in fair value of its fixed rate loans. These interest rate swaps are designated as fair value hedges using the portfolio layer method. The Company receives variable-rate interest payments in exchange for making fixed-rate payments over the lives of the contracts without exchanging the notional amounts. The fair value hedges are recorded as components of other assets and other liabilities in the Company’s consolidated statements of financial condition. The gain or loss on these derivatives, as well as the offsetting loss or gain on the hedged items attributable to the hedged risk are recognized in interest income in the Company’s consolidated statements of income.

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Note 12. Commitments and Contingencies

The Company’s credit commitments as of June 30, 2023, and December 31, 2022, were as follows:

(dollars in thousands)	June 30, 2023		December 31, 2022
Unfunded Commitments to Extend Credit	$	3,597,648	$	3,592,872
Standby Letters of Credit		100,495		129,512
Commercial Letters of Credit		20,687		24,030
Total Credit Commitments	$	3,718,830	$	3,746,414

Unfunded Commitments to Extend Credit

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of the terms or conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since commitments may expire without being drawn, the total commitment amount does not necessarily represent future cash requirements.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. Standby letters of credit generally become payable upon the failure of the customer to perform according to the terms of the underlying contract with the third-party, while commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and a third party. The contractual amount of these letters of credit represents the maximum potential future payments guaranteed by the Company. The Company has recourse against the customer for any amount it is required to pay to a third-party under a standby letter of credit, and generally holds cash or deposits as collateral on those standby letters of credit for which collateral is deemed necessary. Assets valued at $75.7 million secured certain specifically identified standby letters of credit as of June 30, 2023. As of June 30, 2023, the standby and commercial letters of credit had remaining terms ranging from 1 to 13 months.

Contingencies

The Company is subject to various pending and threatened legal proceedings arising out of the normal course of business or operations. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal proceedings using the most recent information available. On a case-by-case basis, reserves are established for those legal claims for which it is probable that a loss will be incurred and the amount of such loss can be reasonably estimated. Based on information currently available, management believes that the eventual outcome of any claims against the Company will not be materially in excess of such amounts reserved by the Company. However, in the event of unexpected future developments, it is possible that the ultimate resolution of these matters may result in a loss that materially exceeds the reserves established by the Company.

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Note 13. Fair Value of Assets and Liabilities

Fair Value Hierarchy

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels:

Level 1:	Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value.
Level 2:	Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market.
Level 3:	Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that require significant management judgment or estimation, some of which may be internally developed.

In some instances, an instrument may fall into multiple levels of the fair value hierarchy. In such instances, the instrument’s level within the fair value hierarchy is based on the lowest of the three levels (with Level 3 being the lowest) that is significant to the fair value measurement. Our assessment of the significance of an input requires judgment and considers factors specific to the instrument.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Investment Securities Available-for-Sale

Level 1 investment securities are comprised of debt securities issued by the U.S. Treasury, as quoted prices were available, unadjusted, for identical securities in active markets. Level 2 investment securities were primarily comprised of debt securities issued by the Small Business Administration, states and municipalities, corporations, as well as mortgage-backed securities issued by government agencies and government-sponsored enterprises. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models. In cases where there may be limited or less transparent information provided by the Company’s third party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third party broker quotes.

Loans Held for Sale

The fair value of the Company’s residential mortgage loans held for sale was determined based on quoted prices for similar loans in active markets, and therefore, is classified as a Level 2 measurement.

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Mortgage Servicing Rights

The Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company stratifies its mortgage servicing portfolio on the basis of loan type. The assumptions used in the discounted cash flow model are those that the Company believes market participants would use in estimating future net servicing income. Significant assumptions in the valuation of mortgage servicing rights include estimated loan repayment rates, the discount rate, servicing costs, and the timing of cash flows, among other factors. Mortgage servicing rights are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation.

Other Assets

Other assets recorded at fair value on a recurring basis are primarily comprised of investments related to deferred compensation arrangements. Quoted prices for these investments, primarily in mutual funds, are available in active markets. Thus, the Company’s investments related to deferred compensation arrangements are classified as Level 1 measurements in the fair value hierarchy.

Derivative Financial Instruments

Derivative financial instruments recorded at fair value on a recurring basis are comprised of interest rate lock commitments (“IRLCs”), forward commitments, interest rate swap agreements, foreign exchange contracts, and Visa Class B to Class A shares conversion rate swap agreements. The fair values of IRLCs are calculated based on the value of the underlying loan held for sale, which in turn is based on quoted prices for similar loans in the secondary market. However, this value is adjusted by a factor which considers the likelihood that the loan in a locked position will ultimately close. This factor, the closing ratio, is derived from the Bank’s internal data and is adjusted using significant management judgment. As such, IRLCs are classified as Level 3 measurements. Forward commitments are classified as Level 2 measurements as they are primarily based on quoted prices from the secondary market based on the settlement date of the contracts, interpolated or extrapolated, if necessary, to estimate a fair value as of the end of the reporting period.

The fair values of interest rate swap agreements are calculated using a discounted cash flow approach and utilize Level 2 observable inputs such as a market yield curve, effective date, maturity date, notional amount, and stated interest rate. The valuation methodology for interest rate swaps with financial institution counterparties (and the related customer interest rate swaps) is based on the Secured Overnight Financing Rate ("SOFR"). In addition, the Company includes in its fair value calculation a credit factor adjustment which is based primarily on management judgment. Thus, interest rate swap agreements are classified as a Level 3 measurement. The fair values of foreign exchange contracts are calculated using the Bank’s multi-currency accounting system which utilizes contract specific information such as currency, maturity date, contractual amount, and strike price, along with market data information such as the spot rates of specific currency and yield curves. Foreign exchange contracts are classified as Level 2 measurements because while they are valued using the Bank’s multi-currency accounting system, significant management judgment or estimation is not required. The fair value of the Visa Class B restricted shares to Class A unrestricted common shares conversion rate swap agreements represent the amount owed by the Company to the buyer of the Visa Class B shares as a result of a reduction of the conversion ratio subsequent to the sales date. As of June 30, 2023, and December 31, 2022, the conversion rate swap agreements were valued at zero as reductions to the conversion ratio were neither probable nor reasonably estimable by management. See Note 11 Derivative Financial Instruments for more information.

The Company is exposed to credit risk if borrowers or counterparties fail to perform. The Company seeks to minimize credit risk through credit approvals, limits, monitoring procedures, and collateral requirements. The Company generally enters into transactions with borrowers of high credit quality and counterparties that carry high quality credit ratings. Credit risk associated with borrowers or counterparties as well as the Company’s non-performance risk is factored into the determination of the fair value of derivative financial instruments.

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The Table below presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2023, and December 31, 2022.

	Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
(dollars in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
June 30, 2023
Assets:
Investment Securities Available-for-Sale
Debt Securities Issued by the U.S. Treasury and Government    Agencies	$	142,478	$	78,603	$	—	$	221,081
Debt Securities Issued by States and Political Subdivisions		—		96,540		—		96,540
Debt Securities Issued by U.S. Government-Sponsored    Enterprises		—		1,637		—		1,637
Debt Securities Issued by Corporations		—		788,754		—		788,754
Mortgage-Backed Securities:
Residential - Government Agencies		—		675,204		—		675,204
Residential - U.S. Government-Sponsored Enterprises		—		744,714		—		744,714
Commercial - Government Agencies		—		138,793		—		138,793
Total Mortgage-Backed Securities		—		1,558,711		—		1,558,711
Total Investment Securities Available-for-Sale		142,478		2,524,245		—		2,666,723
Loans Held for Sale		—		3,359		—		3,359
Mortgage Servicing Rights		—		—		695		695
Other Assets		53,202		—		—		53,202
Derivatives 1		—		34		162,719		162,753
Total Assets Measured at Fair Value on a Recurring Basis as of    June 30, 2023	$	195,680	$	2,527,638	$	163,414	$	2,886,732
Liabilities:
Derivatives 1	$	—	$	—	$	162,517	$	162,517
Total Liabilities Measured at Fair Value on a Recurring Basis as of   June 30, 2023	$	—	$	—	$	162,517	$	162,517
December 31, 2022
Assets:
Investment Securities Available-for-Sale
Debt Securities Issued by the U.S. Treasury    and Government Agencies	$	141,944	$	91,962	$	—	$	233,906
Debt Securities Issued by States and Political Subdivisions		—		95,265		—		95,265
Debt Securities Issued by    U.S. Government-Sponsored Enterprises		—		48,628		—		48,628
Debt Securities Issued by Corporations		—		794,658		—		794,658
Mortgage-Backed Securities:
Residential - Government Agencies		—		732,828		—		732,828
Residential - U.S. Government-Sponsored Enterprises		—		793,871		—		793,871
Commercial - Government Agencies or Sponsored Agencies		—		145,667		—		145,667
Total Mortgage-Backed Securities		—		1,672,366		—		1,672,366
Total Investment Securities Available-for-Sale		141,944		2,702,879		—		2,844,823
Loans Held for Sale		—		1,035		—		1,035
Mortgage Servicing Rights		—		—		717		717
Other Assets		47,755		—		—		47,755
Derivatives 1		—		1,822		45,895		47,717
Total Assets Measured at Fair Value on a    Recurring Basis as of December 31, 2022	$	189,699	$	2,705,736	$	46,612	$	2,942,047
Liabilities:
Derivatives 1	$	—	$	70	$	167,967	$	168,037
Total Liabilities Measured at Fair Value on a    Recurring Basis as of December 31, 2022	$	—	$	70	$	167,967	$	168,037

1 The fair value of each class of derivatives is shown in Note 11 Derivative Financial Instruments.

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For the three and six months ended June 30, 2023, and June 30, 2022, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows:

(dollars in thousands)	Mortgage Servicing Rights 1			Net Derivative Assets and Liabilities 2
Three Months Ended June 30, 2023
Balance as of April 1, 2023	$	707		$	(52,838	)
Realized and Unrealized Net Gains (Losses):
Included in Net Income		(12	)		272
Transfers to Loans Held for Sale		—			(223	)
Variation Margin Payments		—			52,991
Balance as of June 30, 2023	$	695		$	202
Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of June 30, 2023	$	—		$	272
Three Months Ended June 30, 2022
Balance as of April 1, 2022	$	781		$	(50,429	)
Realized and Unrealized Net Gains (Losses):
Included in Net Income3		(34	)		90
Transfers to Loans Held for Sale		—			58
Variation Margin Payments		—			(32,667	)
Balance as of June 30, 2022	$	747		$	(82,948	)
Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of June 30, 2022	$	—		$	89
Six Months Ended June 30, 2023
Balance as of January 1, 2023	$	717			(122,071	)
Realized and Unrealized Net Gains (Losses):
Included in Net Income		(22	)		460
Transfers to Loans Held for Sale		—			(311	)
Variation Margin Payments		—			122,124
Balance as of June 30, 2023	$	695			202
Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of June 30, 2023	$	—		$	460
Six Months Ended June 30, 2022
Balance as of January 1, 2023	$	800		$	23,904
Realized and Unrealized Net Gains (Losses):
Included in Net Income		(53	)		(996	)
Transfers to Loans Held for Sale		—			172
Variation Margin Payments		—			(106,028	)
Balance as of June 30, 2022	$	747		$	(82,948	)
Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of June 30, 2022	$	—		$	(996	)

1 Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of mortgage banking income in the Company’s consolidated statements of income.

2 Realized and unrealized gains and losses related to interest rate lock commitments are reported as a component of mortgage banking income in the Company’s consolidated statements of income. Realized and unrealized gains and losses related to interest rate swap agreements are reported as a component of other noninterest income in the Company’s consolidated statements of income.

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For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of June 30, 2023, and December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:

(dollars in thousands)	Valuation  Technique	Description	Range						Weighted Average1			Fair Value
June 30, 2023
Mortgage Servicing Rights	Discounted Cash Flow	Constant Prepayment Rate		3.05	%	-	11.06	%		3.93	%	$	27,022
		Discount Rate		9.22	%	-	10.92	%		9.71	%	$	—
Net Derivative Assets and Liabilities:
Interest Rate Lock Commitments	Pricing Model	Closing Ratio		84.10	%	-	99.00	%		92.30	%	$	225
Interest Rate Swap Agreements	Discounted Cash Flow	Credit Factor		0.00	%	-	4.03	%		0.01	%	$	(23	)
December 31, 2022
Mortgage Servicing Rights	Discounted Cash Flow	Constant Prepayment Rate		2.81	%	-	10.63	%		4.02	%	$	28,040
		Discount Rate		8.70	%	-	10.40	%		9.93	%	$	—
Net Derivative Assets and Liabilities:
Interest Rate Lock Commitments	Pricing Model	Closing Ratio		84.10	%	-	99.00	%		92.86	%	$	58
Interest Rate Swap Agreements	Discounted Cash Flow	Credit Factor		0.00	%	-	0.49	%		0.01	%	$	(122,129	)

1 Unobservable inputs for mortgage servicing rights and interest rate lock commitments were weighted by loan amount. Unobservable inputs for interest rate swap agreements were weighted by fair value.

Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. Although the constant prepayment rate and the discount rate are not directly interrelated, they generally move in opposite directions of each other.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The Company may be required periodically to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower-of-cost-or-fair value accounting or impairment write-downs of individual assets. The following table represents the assets measured at fair value on a nonrecurring basis as of June 30, 2023, and December 31, 2022.

(dollars in thousands)	Fair Value Hierarchy	Net Carrying Amount		Valuation Allowance
June 30, 2023
Mortgage Servicing Rights - amortization method	Level 3	$	20,931	$	—
December 31, 2022
Mortgage Servicing Rights - amortization method	Level 3	$	21,902	$	—

As previously mentioned, all of the Company's mortgage servicing rights are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation.

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Fair Value Option

The following table reflects the difference between the aggregate fair value and the aggregate unpaid principal balance of the Company’s residential mortgage loans held for sale as of June 30, 2023, and December 31, 2022.

(dollars in thousands)	Aggregate Fair Value		Aggregate Unpaid Principal		Aggregate Fair Value Less Aggregate Unpaid Principal
June 30, 2023
Loans Held for Sale	$	3,359	$	3,348	$	11
December 31, 2022
Loans Held for Sale	$	1,035	$	1,016	$	19

Changes in the estimated fair value of residential mortgage loans held for sale are reported as a component of mortgage banking income in the Company’s consolidated statements of income. For the three and six months ended June 30, 2023, and year ended December 31, 2022, the net gains or losses from the change in fair value of the Company’s residential mortgage loans held for sale were not material.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments not recorded at fair value on a recurring basis as of June 30, 2023, and December 31, 2022. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For non-marketable equity securities such as Federal Home Loan Bank of Des Moines and Federal Reserve Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity.

					Fair Value Measurements
	Carrying				Quoted Prices  in Active  Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
(dollars in thousands)	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2023
Financial Instruments - Assets
Investment Securities Held-to-Maturity	$	5,202,698	$	4,411,003	$	114,012	$	4,296,991	$	—
Loans		13,652,102		12,640,810		—		—		12,640,810
Financial Instruments - Liabilities
Time Deposits		2,664,679		2,628,658		—		2,628,658		—
Securities Sold Under Agreements to Repurchase		725,490		716,935		—		716,935		—
Other Debt 1		1,750,000		1,731,736		—		1,731,736		—
December 31, 2022
Financial Instruments – Assets
Investment Securities Held-to-Maturity	$	5,414,139	$	4,615,393	$	113,417	$	4,501,976	$	—
Loans		13,371,226		12,386,615		—		—		12,386,615
Financial Instruments – Liabilities
Time Deposits		1,705,737		1,679,777		—		1,679,777		—
Securities Sold Under Agreements to Repurchase		725,490		718,614		—		718,614		—
Other Debt 1		400,000		402,877		—		402,877		—

1 Excludes finance lease obligations.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following MD&A is intended to help the reader understand the Company and its operations and is focused on our fiscal 2023 financial results, including comparisons of year-to-year performance, trends, and updates from the Company’s most recent 10-K filing. Discussion and analysis of our 2022 fiscal year, as well as the year-to-year comparison between fiscal 2022 and 2021, are included "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on March 1, 2023.

Forward-Looking Statements

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts and may include statements concerning, among other things, the anticipated economic and business environment in our service area and elsewhere, credit quality and other financial and business matters in future periods, our future results of operations and financial position, our business strategy and plans and our objectives and future operations. We also may make forward-looking statements in our other documents filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”). In addition, our senior management may provide forward-looking statements orally to analysts, investors, representatives of the media and others. Our forward-looking statements are based on numerous assumptions, any of which could prove to be inaccurate, and actual results may differ materially from those projected because of a variety of risks and uncertainties, including, but not limited to: 1) general economic conditions either nationally, internationally, or locally may be different than expected, and particularly, any event that negatively impacts the tourism industry in Hawaii; 2) the lingering effects of the COVID-19 pandemic, including reduced tourism in Hawaii, volatility in the international and national economy and credit markets, inflation, worker absenteeism, quarantines or other travel or health-related restrictions, and the effect of government, business and individual actions intended to mitigate the effects of the COVID-19 pandemic; 3) changes in market interest rates that may affect credit markets and our ability to maintain our net interest margin; 4) disruptions, instability and failures in the banking industry; 5) inflationary pressures including Federal Reserve interest rate hikes; 6) the effect of potential recessionary conditions; 7) changes in our credit quality or risk profile that may increase or decrease the required level of our reserve for credit losses; 8) the impact of legislative and regulatory initiatives, particularly the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) and Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; 9) changes to the amount and timing of proposed common stock repurchases; 10) unanticipated changes in the securities markets, public debt markets, and other capital markets in the U.S. and internationally, including, without limitation, the elimination of the London Interbank Offered Rate (“LIBOR”) as a benchmark interest rate; 11) changes in fiscal and monetary policies of the markets in which we operate; 12) the increased cost of maintaining or the Company’s ability to maintain adequate liquidity and capital, based on the requirements adopted by the Basel Committee on Banking Supervision and U.S. regulators; 13) changes in accounting standards; 14) changes in tax laws or regulations, including Public Law 115-97, commonly known as the Tax Cuts and Jobs Act, or the interpretation of such laws and regulations; 15) any failure in or breach of our operational systems, information systems or infrastructure, or those of our merchants, third party vendors and other service providers; 16) any interruption or breach of security of our information systems resulting in failures or disruptions in customer account management, general ledger processing, and loan or deposit systems; 17) natural disasters, public unrest or adverse weather, public health, disease outbreaks, and other conditions impacting us and our customers’ operations or negatively impacting the tourism industry in Hawaii; 18) competitive pressures in the markets for financial services and products; 19) actual or alleged conduct which could harm our reputation; and 20) the impact of litigation and regulatory investigations of the Company, including costs, expenses, settlements, and judgments. Given these risks and uncertainties, investors should not place undue reliance on any forward-looking statement as a prediction of our actual results. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included under the section entitled “Risk Factors” in Part II of this report. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We undertake no obligation to update forward-looking statements to reflect later events or circumstances, except as may be required by law.

For the reasons described above, we caution you against relying on any forward-looking statements. You should not consider any list of such factors to be an exhaustive statement of all of the risks, uncertainties, or potentially inaccurate assumptions that could cause our current expectations or beliefs to change. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by the federal securities laws.

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Investor Announcements

Investors and others should note that the Company intends to announce financial and other information to the Company’s investors using the Company’s investor relations website at https://ir.boh.com, social media channels, press releases, SEC filings and public conference calls and webcasts, all for purposes of complying with the Company’s disclosure obligations under Regulation FD. Accordingly, investors should monitor these channels, as information is updated and new information is posted.

Critical Accounting Policies

Our Consolidated Financial Statements were prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and follow general practices within the industries in which we operate. The significant accounting policies we follow are presented in Note 1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Application of these principles requires us to make estimates, assumptions, and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Most accounting policies are not considered by management to be critical accounting policies. Several factors are considered in determining whether or not a policy is critical in the preparation of the Consolidated Financial Statements. These factors include among other things, whether the policy requires management to make difficult, subjective, and complex judgments about matters that are inherently uncertain and because it is likely that materially different amounts would be reported under different conditions or using different assumptions. The accounting policies which we believe to be most critical in preparing our Consolidated Financial Statements are presented in the section titled “Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. There have been no significant changes in the Company’s application of critical accounting policies since December 31, 2022.

Overview

We are a regional financial services company serving businesses, consumers, and governments in Hawaii, Guam, and other Pacific Islands. Our principal operating subsidiary, the Bank, was founded in 1897.

Our business strategy is to use our unique market knowledge, prudent management discipline and brand strength to deliver exceptional value to our stakeholders. Our business plan is balanced between growth and risk management while maintaining flexibility to adjust to economic changes. We will continue to focus on providing customers with best-in-class service and an innovative mix of products and services. We will also remain focused on continuing to deliver strong financial results while maintaining prudent risk and capital management strategies as well as our commitment to support our local communities.

Hawaii Economy

Hawaii’s visitor industry continues to perform well despite the delayed recovery in international visitors from Japan, with activity only slightly below pre-pandemic levels. The economy is also benefitting from a strong construction industry due to a high level of public sector projects which is expected to continue, and will help to support the impact of continuing high interest rates and a slowing U.S. economy. Hawaii’s unemployment rate was 3.0% in June 2023, which was below the U.S. unemployment rate of 3.6%.

For the first six months of 2023, the median price of single-family home sales and condominium sales on Oahu changed by -5.5% and -2.9%, respectively, compared to the same period in 2022. The volume of single-family home sales and condominiums sales on Oahu decreased 34.6% and 35.8%, respectively, for the first six months of 2023 compared with the same period in 2022. Despite these declines in the median price of single-family home sales and sales volume, as of June 30, 2023, inventory of single-family homes and condominiums on Oahu continues to remain low at 2.6 months and 2.8 months, respectively.

Earnings Summary

Net income for the second quarter of 2023 was $46.1 million, a decrease of $10.8 million or 19% compared to the same period in 2022. Diluted earnings per common share was $1.12 for the second quarter of 2023, a decrease of $0.26 or 19% compared to the same period in 2022.

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•The return on average common equity for the second quarter of 2023 was 14.95% compared with 18.19% in the same period in 2022.

•Net interest income for the second quarter of 2023 was $124.3 million, a decrease of -6% from the same period in 2022. Net interest margin was 2.22% in the second quarter of 2023, a decrease of 25 basis points from the same period in 2022. The decrease in the net interest margin compared to the prior year was due to the higher funding costs and increased liquidity, partially offset by higher earning asset yields.

•The provision for credit losses was $2.5 million for the second quarter of 2023 compared with a net benefit of $2.5 million in the same period in 2022.

•Noninterest income was $43.3 million in the second quarter of 2023, an increase of 2.6% from the same period in 2022, primarily due to $1.5 million from the sale of a low-income housing tax credit investment in the second quarter of 2023.

•Noninterest expense was $104.0 million in the second quarter of 2023, an increase of 1% compared to the same period in 2022, primarily due to higher FDIC insurance expenses of $1.6 million.

•The effective tax rate for the second quarter of 2023 was 24.57% compared with 23.80% in the same period in 2022.

•Total non-performing assets were $11.5 million at June 30, 2023, a decrease of $4.0 million or -26% compared to June 30, 2022. Non-performing assets as percentage of total loans and leases and foreclosed real estate were 0.08% at June 30, 2023, a decrease of 4 basis points compared to June 30, 2022.

•Net loan and lease charge-offs during the second quarter of 2023 were $1.4 million or 0.04% annualized of total average loans and leases outstanding, comprised of charge-offs of $3.5 million partially offset by recoveries of $2.1 million. Compared to the second quarter of 2022, net loan and lease charge-offs increased by $0.7 million or 2 basis points annualized on total average loans and leases outstanding.

•The allowance for credit losses on loans and leases was $145.4 million at June 30, 2023, a decrease of $3.1 million from June 30, 2022. The ratio of the allowance for credit losses to total loans and leases outstanding was 1.04% at the end of the quarter, a decrease of 11 basis points from the end of the same period in 2022.

We maintained a strong balance sheet during the second quarter of 2023, with what we believe are appropriate reserves for credit losses and high levels of liquidity and capital.

•Total assets increased to $24.9 billion at June 30, 2023, an increase of 7.4% from December 31, 2022.

•The investment securities portfolio was $7.9 billion at June 30, 2023, a decrease of 4.9% from December 31, 2022. The portfolio remains largely comprised of securities issued by U.S. government agencies and U.S. government-sponsored enterprises.

•Total loans and leases were $13.9 billion at June 30, 2023, an increase of 2.0% from December 31, 2022, primarily due to growth in commercial and industrial, commercial mortgage, residential mortgage, and home equity loans.

•Total deposits were $20.5 billion at June 30, 2023, a decrease of 0.5% from December 31, 2022.

•No shares of common stock were repurchased under the share repurchase program in the second quarter of 2023. Total remaining buyback authority under the share repurchase program was $126.0 million at June 30, 2023.

•Cash dividends of $55.9 million on common shares, and $3.9 million on preferred shares, were distributed during the first six months of 2023.

44

Analysis of Statements of Income

Average balances, related income and expenses, and resulting yields and rates are presented in Table 1. An analysis of the change in net interest income, on a taxable-equivalent basis, is presented in Table 2.

Average Balances and Interest Rates - Taxable-Equivalent Basis																								Table 1
	Three Months Ended							Three Months Ended							Six Months Ended							Six Months Ended
	June 30, 2023							June 30, 2022							June 30, 2023							June 30, 2022
	Average		Income/		Yield/			Average		Income/		Yield/			Average		Income/		Yield/			Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate			Balance		Expense		Rate			Balance		Expense		Rate			Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	5.1	$	—		1.48	%	$	3.5	$	—		0.59	%	$	3.4	$	—		2.68	%	$	3.5	$	—		0.52	%
Funds Sold		500.1		6.4		5.06			273.5		0.7		1.04			398.6		9.8		4.87			256.1		0.8		0.66
Investment Securities
Available-for-Sale
Taxable		2,741.1		23.2		3.39			4,123.1		18.0		1.74			2,780.4		47.0		3.40			4,260.6		35.1		1.65
Non-Taxable		9.6		0.1		4.40			2.9		—		1.99			9.6		0.2		4.39			3.0		—		1.96
Held-to-Maturity						—
Taxable		5,231.3		23.2		1.78			4,377.0		18.7		1.71			5,283.6		47.0		1.78			4,471.7		37.2		1.67
Non-Taxable		35.2		0.2		2.10			35.7		0.2		2.10			35.2		0.4		2.10			35.8		0.4		2.10
Total Investment Securities		8,017.2		46.7		2.33			8,538.7		36.9		1.73			8,108.8		94.6		2.34			8,771.1		72.7		1.66
Loans Held for Sale		2.7		0.0		5.50			6.3		0.1		4.06			2.1		0.1		5.42			10.0		0.2		3.19
Loans and Leases 1
Commercial and Industrial		1,456.1		17.5		4.82			1,330.0		9.9		2.99			1,433.8		33.8		4.75			1,331.5		18.9		2.86
Paycheck Protection Program		14.5		—		1.30			38.7		0.5		5.26			15.7		0.1		1.86			63.7		2.3		7.39
Commercial Mortgage		3,814.9		49.3		5.19			3,357.2		26.2		3.13			3,776.2		94.5		5.04			3,258.5		48.0		2.97
Construction		246.8		3.5		5.70			222.6		2.4		4.39			263.5		7.4		5.68			225.1		4.5		4.03
Commercial Lease Financing		65.4		0.3		1.67			94.2		0.3		1.44			66.1		0.3		0.76			96.5		0.7		1.44
Residential Mortgage		4,704.0		41.2		3.50			4,445.7		36.4		3.26			4,685.2		81.0		3.46			4,394.8		71.2		3.24
Home Equity		2,272.3		19.0		3.35			2,032.9		14.4		2.85			2,255.9		37.2		3.33			1,966.3		27.7		2.84
Automobile		879.3		7.7		3.53			759.1		6.1		3.20			875.6		15.0		3.45			748.3		11.9		3.22
Other 2		423.5		6.4		6.04			420.4		5.6		5.38			425.6		12.5		5.94			412.1		11.1		5.42
Total Loans and Leases		13,876.8		144.9		4.19			12,700.8		101.8		3.21			13,797.6		281.8		4.11			12,496.8		196.3		3.16
Other		94.8		2.2		8.94			38.1		0.3		3.70			81.00		2.7		6.70			37.4		0.6		2.97
Total Earning Assets 3		22,496.7		200.2		3.56			21,560.9		139.8		2.60			22,391.5		389.0		3.49			21,574.9		270.6		2.52
Cash and Due From Banks		316.6							238.4							317.8							235.8
Other Assets		1,301.1							1,091.9							1,281.3							1,058.8
Total Assets	$	24,114.4						$	22,891.2						$	23,990.6						$	22,869.5
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	4,037.4	$	7.5		0.75	%	$	4,442.2	$	0.7		0.06	%	$	4,126.2	$	12.7		0.62	%	$	4,548.2	$	1.2		0.05	%
Savings		7,667.6		26.6		1.39			7,692.8		1.9		0.10			7,837.3		47.2		1.21			7,617.1		2.9		0.08
Time		2,296.1		19.7		3.44			950.4		0.9		0.40			2,044.4		31.7		3.12			960.9		1.8		0.37
Total Interest-Bearing Deposits		14,001.1		53.8		1.54			13,085.4		3.5		0.11			14,007.9		91.6		1.32			13,126.2		5.9		0.09
Funds Purchased		14.6		0.2		5.00			25.3		—		0.89			37.4		0.9		4.72			16.2		0.1		0.72
Short-Term Borrowings		195.2		2.5		5.09			34.5		0.1		1.06			229.9		5.7		4.94			17.3		0.1		1.06
Securities Sold Under Agreements to    Repurchase		725.5		5.4		2.96			447.7		2.8		2.47			725.5		10.8		2.96			449.1		5.6		2.47
Other Debt		1,255.8		13.5		4.31			10.4		0.3		7.05			879.8		18.7		4.31			10.4		0.3		7.05
Total Interest-Bearing Liabilities		16,192.2		75.4		1.87			13,603.3		6.7		0.20			15,880.5		127.7		1.62			13,619.2		12.0		0.18
Net Interest Income			$	124.8						$	133.1						$	261.3						$	258.6
Interest Rate Spread						1.69	%						2.40	%						1.87	%						2.34	%
Net Interest Margin						2.22	%						2.47	%						2.34	%						2.41	%
Noninterest-Bearing Demand Deposits		6,017.5							7,484.0							6,215.7							7,371.9
Other Liabilities		541.6							413.3							546.3							399.2
Shareholders’ Equity		1,363.1							1,390.7							1,348.1							1,479.2
Total Liabilities and Shareholders’    Equity	$	24,114.4						$	22,891.3						$	23,990.6						$	22,869.5

1Non-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.

2Comprised of other consumer revolving credit, installment, and consumer lease financing.

3Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $0.5 million and $1.0 million for the three and six months ended June 30, 2023, and $0.2 million and $0.5 for the three and six months ended June 30, 2022.

45

Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 2
	Six Months Ended June 30, 2023
	Compared to June 30, 2022
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	0.8		$	8.2		$	9.0
Investment Securities
Available-for-Sale
Taxable		(15.4	)		27.3			11.9
Non-Taxable		0.1			0.1			0.2
Held-to-Maturity
Taxable		7.1			2.7			9.8
Non-Taxable		—			—			-
Total Investment Securities		(8.2	)		30.1			21.9
Loans Held for Sale		(0.2	)		0.1			(0.1	)
Loans and Leases
Commercial and Industrial		1.6			13.3			14.9
Paycheck Protection Program		(1.1	)		(1.1	)		(2.2	)
Commercial Mortgage		8.6			37.9			46.5
Construction		0.9			2.0			2.9
Commercial Lease Financing		(0.3	)		(0.1	)		(0.4	)
Residential Mortgage		4.8			5.0			9.8
Home Equity		4.4			5.1			9.5
Automobile		2.2			0.9			3.1
Other 2		0.3			1.1			1.4
Total Loans and Leases		21.4			64.1			85.5
Other		1.0			1.1			2.1
Total Change in Interest Income		14.8			103.6			118.4
Change in Interest Expense:
Interest-Bearing Deposits
Demand		(0.1	)		11.6			11.5
Savings		0.1			44.2			44.3
Time		3.9			26.0			29.9
Total Interest-Bearing Deposits		3.9			81.8			85.7
Funds Purchased		0.2			0.6			0.8
Short-Term Borrowings		4.3			1.3			5.6
Securities Sold Under Agreements to Repurchase		3.9			1.3			5.2
Other Debt		18.6			(0.2	)		18.4
Total Change in Interest Expense		30.9			84.8			115.7
Change in Net Interest Income	$	(16.1	)	$	18.8		$	2.7

1The 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.

2Comprised of other consumer revolving credit, installment, and consumer lease financing.

Net Interest Income

Net interest income is affected by the size and mix of our balance sheet components as well as the spread between interest earned on assets and interest paid on liabilities. Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

Yields on our earning assets increased by 96 basis points in the second quarter of 2023 and increased by 97 basis points in the first six months of 2023 compared to the same periods in 2022. This is primarily due to the higher rate environment in 2023 compared to the prior year.

46

Yields on our investment securities portfolio increased by 60 basis points in the second quarter of 2023 and by 68 basis points in the first six months of 2023 compared to the same periods in 2022 due to the higher rate environment and slower prepayments. Yields on funds sold increased by 402 basis points in the second quarter of 2023 and by 421 basis points in the first six months of 2023 compared to the same periods in 2022. Yields on our loan and lease portfolio increased by 98 basis points in the second quarter of 2023 and by 95 basis points in the first six months of 2023 compared to the same periods in 2022 due to an increase in yields on our floating rate loan portfolio and higher rates on loans that originated during the period.

Interest rates paid on our interest-bearing liabilities increased by 167 basis points in the second quarter of 2023 and by 144 basis points in the first six months of 2023 compared to the same periods in 2022. The interest rates on savings deposits increased by 129 basis points in the second quarter of 2023 and by 113 basis points in the first six months of 2023 compared to the same periods in 2022. Interest rates paid on time deposits increased by 304 basis points in the second quarter of 2023 and by 275 basis points in the first six months of 2023 compared to the same periods in 2022. The rates paid on securities sold under agreements to repurchase increased by 49 basis points in the second quarter of 2023 compared to the same period in 2022. Increases to our funding costs are primarily due to the higher interest rate environment and increased Federal Home Loan Bank advances.

The average balance of our earning assets increased by $0.9 billion or 4% in the second quarter of 2023 and by $0.8 billion or 4% in the first six months of 2023 compared to the same periods in 2022 primarily due to an increase in the average balances of our loan portfolio. The average balance of our funds sold increased by $226.6 million or 83% in the second quarter of 2023 and by $142.5 million or 56% in the first six months of 2023 compared to the same periods in 2022. The average balance of our investment securities decreased by $0.5 billion or 6% in the second quarter of 2023 and by $0.7 billion or 8% in the first six months of 2023 compared to the same periods in 2022. The average balance of our loan and lease portfolio increased by $1.2 billion or 9% in the second quarter of 2023 and by 10% in the first six months of 2023 compared to the same periods in 2022. The average balance of our commercial mortgage portfolio increased by $457.7 million or 14% in the second quarter of 2023 and by $517.7 million or 16% in the first six months of 2023 compared to the same periods in 2022 as a result of continued demand from new and existing customers. The average balance of our residential mortgage portfolio increased by $258.3 million or 6% in the second quarter of 2023 and by $290.4 million or 7% in the first six months of 2023 compared to the same period in 2022 primarily due to loan originations partially offset by lower payoff activity. The average balance of our home equity portfolio increased by $239.4 million or 12% in the second quarter of 2023 and by $289.6 million or 15% in the first six months of 2023 compared to the same period in 2022 mainly due to growth driven by ongoing promotions of our SmartRefi program.

The average balances of our interest-bearing liabilities for the three and six months ended June 30, 2023, increased by $2.6 billion or 19% and by $2.3 billion or 17%, respectively, compared to the same periods in 2022 primarily due to increased time deposits, borrowings and securities sold under repurchase agreements. The average balances of our core interest-bearing deposit products for the three months ended June 30, 2023, decreased by $430.0 million or 4% and decreased by $201.8 million or 2% for the six months ended June 30, 2023, compared to the same periods in 2022. The average balances of our interest-bearing deposits for the three and six months ended June 30, 2023, increased by $915.7 million or 7% and by $881.7 million or 7%, respectively, compared to the same periods in 2022. The average balance of our interest-bearing demand deposits for the three and six months ended June 30, 2023, decreased by $404.8 million or 9% and by $422.0 million or 9%, respectively, compared to the same periods in 2022. The average balance of our savings deposits decreased by $25.2 million for the three months ended June 30, 2023, and increased by $220.2 million or 2.9% was relatively unchanged compared to the same 2022 period, and the average balance for the six months ended June 30, 2023, increased by $220.2 million or 3% for the six months ended June 30, 2023, compared to the same period in 2022. The average balance of our time deposits for the three and six months ended June 30, 2023, increased by $1.3 billion or 142% and by $1.1 billion or 113%, respectively, compared to the same periods in 2022.

47

The average balances of our securities sold under agreements to repurchase for the three and six months ended June 30, 2023, increased by $277.8 million or 62% and by $276.4 million or 62% compared to the same periods in 2022. The increase was due to $300.0 million in repurchase agreements that originated in late 2022. The average balances of our other debt, which was comprised primarily of Federal Home Loan Bank (“FHLB”) advances, increased by $1.2 billion in the second quarter of 2023 and by $869.4 million for the six months ended June 30, 2023, compared to the same periods in 2022, primarily due to FHLB advances totaling $1.25 billion that originated during the current quarter, $100.0 million that originated during the first quarter of 2023, and $400.0 million that originated in the fourth quarter of 2022.

Noninterest Income

Table 3 presents the components of noninterest income.

Noninterest Income																Table 3
	Three Months Ended June 30,									Six Months Ended June 30,
(dollars in thousands)	2023			2022			Change			2023			2022			Change
Trust and Asset Management	$	11,215		$	11,457		$	(242	)	$	21,905		$	22,733		$	(828	)
Mortgage Banking		1,176			1,247			(71	)		2,180			3,987			(1,807	)
Service Charges on Deposit Accounts		7,587			7,309			278			15,324			14,581			743
Fees, Exchange, and Other Service Charges		14,150			14,193			(43	)		27,958			27,145			813
Investment Securities Gains (Losses), Net		(1,310	)		(1,295	)		(15	)		(3,102	)		(2,840	)		(262	)
Annuity and Insurance		1,038			870			168			2,309			1,661			648
Bank-Owned Life Insurance		2,876			2,658			218			5,718			5,007			711
Other Income		6,523			5,719			804			11,700			13,435			(1,735	)
Total Noninterest Income	$	43,255		$	42,158		$	1,097		$	83,992		$	85,709		$	(1,717	)

Trust and asset management income is comprised of fees earned from the management and administration of trusts and other customer assets. The management fees are largely based upon the market value of the assets and the fee rate charged to customers. Total trust assets under administration were $10.7 billion and $10.2 billion as of June 30, 2023, and June 30, 2022, respectively. Trust and asset management income decreased by $0.8 million or 4% for the first six months of 2023 compared to the same period in 2022 primarily due to a decrease in management and trust fees.

Mortgage banking income is highly influenced by mortgage interest rates, the housing market, and the amount of our loan sales. Mortgage banking income decreased by $1.8 million or 45% for the first six months of 2023 compared to the same period in 2022. This decrease was primarily due to a net valuation allowance recovery to our servicing rights during the first quarter of 2022.

Service charges on deposit accounts increased by $0.7 million or 5% for the first six months of 2023 compared to the same period in 2022. This increase was primarily due to an increase in overdraft fees compared to the same period in 2022.

Fees, exchange, and other service charges are primarily comprised of debit and credit card income, fees from ATMs, merchant service activity, and other loan fees and service charges. Fees, exchange, and other service charges increased by $0.8 million or 3% for the first six months of 2023 compared to the same period in 2022 primarily due to an increase in merchant income as a result of higher transaction volume.

Annuity and insurance income increased by $0.6 million or 39% for the first six months of 2023 compared to the same period in 2022 primarily due to increased fixed annuity and insurance income.

Bank-owned life insurance increased by $0.7 million or 14% for the first six months of 2023 compared to the same period in 2022 primarily due to an increase in death benefits received.

Other noninterest income increased by $0.8 million or 14% in the second quarter and decreased by $1.7 million or 13% for the first six months of 2023 compared to the same periods in 2022. The quarter-to-quarter increase was primarily due to a gain on sale of a low income housing investment, partially offset by a decrease in customer derivative fees. The year-over-year change was primarily due to a decrease in customer derivative fees, partially offset by an increase in income on foreign exchange contracts.

48

Noninterest Expense

Table 4 presents the components of noninterest expense.

Noninterest Expense													Table 4
	Three Months Ended June 30,								Six Months Ended June 30,
(dollars in thousands)	2023			2022		Change			2023		2022		Change
Salaries	$	37,962		$	36,721	$	1,241		$	76,579	$	71,653	$	4,926
Incentive Compensation		2,984			6,073		(3,089	)		6,981		12,184		(5,203	)
Share-Based Compensation		4,096			3,962		134			7,255		7,761		(506	)
Commission Expense		775			1,232		(457	)		1,422		2,873		(1,451	)
Retirement and Other Benefits		3,489			4,036		(547	)		9,377		8,729		648
Payroll Taxes		3,310			3,034		276			9,158		7,978		1,180
Medical, Dental, and Life Insurance		3,568			2,591		977			7,432		5,825		1,607
Separation Expense		(9	)		120		(129	)		3,059		690		2,369
Total Salaries and Benefits		56,175			57,769		(1,594	)		121,263		117,693		3,570
Net Occupancy		9,991			9,930		61			19,863		19,756		107
Net Equipment		10,573			9,543		1,030			20,948		18,696		2,252
Data Processing		4,599			4,607		(8	)		9,182		9,167		15
Professional Fees		4,651			3,542		1,109			8,534		6,800		1,734
FDIC Insurance		3,173			1,590		1,583			6,407		3,092		3,315
Other Expense:
Advertising		1,992			2,430		(438	)		4,037		5,053		(1,016	)
Delivery and Postage Services		1,646			1,788		(142	)		3,327		3,294		33
Broker's Charges		1,009			1,251		(242	)		1,858		2,714		(856	)
Merchant Transaction and Card Processing Fees		1,579			1,484		95			3,232		2,937		295
Mileage Program Travel		1,094			1,156		(62	)		2,187		2,352		(165	)
Other		7,554			7,849		(295	)		15,117		15,259		(142	)
Total Other Expense		14,874			15,958		(1,084	)		29,758		31,609		(1,851	)
Total Noninterest Expense	$	104,036		$	102,939	$	1,097		$	215,955	$	206,813	$	9,142

Total salaries and benefits expense decreased by $1.6 million or 3% for the second quarter of 2023 and increased by $3.6 million or 3% for the first six months of 2023 compared to the same periods in 2022. The quarter-to-quarter decrease was primarily due to a decrease in incentive compensation, commission, and retirement and other benefits, partially offset by an increase in base salaries coupled with an increase in medical, dental, and life insurance expenses. The year-over-year change was primarily due to an increase in base salaries coupled with an increase in medical, dental, and life insurance and separation expenses, partially offset by a decrease in incentive compensation, commission, and retirement and other benefits.

Net equipment expense increased by $1.0 million or 11% for the second quarter of 2023 and by $2.3 million or 12% for the first six months compared to the same period in 2022. These increases were due to higher software license fees coupled with an increase in maintenance and depreciation expenses.

Professional fees increased by $1.1 million or 31% in the second quarter of 2023 and by $1.7 million or 26% for the first six months of 2023 compared to the same period in 2022 primarily due to an increase in legal fees coupled with an increase in outsourcing various administrative and support functions.

FDIC insurance expense increased by $1.6 million or 100% in the second quarter of 2023 and by $3.3 million or 107% for the first six months of 2023 compared to the same periods in 2022 primarily due to an increase in the initial base deposit insurance assessment rate. In May 2023, the FDIC issued a notice of proposed rulemaking (NPR). The NPR proposed an annual special assessment rate of approximately 12.5 basis points to an assessment base that would equal an Insured Depository Institution’s estimated uninsured deposits reported as of December 31, 2022, to be paid in eight quarterly installments beginning in the first quarter of 2024. If the rule is adopted as proposed, the total amount of the special assessment would be accrued and recognized as a loss in the period the rule is adopted.

49

Total other expense decreased by $1.1 million or 7% for the second quarter of 2023 and by $1.9 million or 6% for the first six months of 2023 compared to the same periods in 2022. These decreases were primarily due to lower broker charges, advertising, and telephone service expenses.

Provision for Income Taxes

Table 5 presents our provision for income taxes and effective tax rates.

Provision for Income Taxes and Effective Tax Rates										Table 5
	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2023			2022			2023			2022
Provision for Income Taxes	$	15,006		$	17,759		$	30,937		$	33,365
Effective Tax Rates		24.57	%		23.80	%		24.98	%		23.00	%

The provision for income taxes was $15.0 million in the second quarter of 2023, a decrease of $2.8 million compared to the same period in 2022. The effective tax rate for the second quarter of 2023 was 24.57% , an increase from 23.80% for the same period in 2022. The higher effective tax rate in the second quarter of 2023 compared to the same period in 2022 was primarily due to a loss of tax benefits from exiting the leverage lease business and an increase in valuation allowance.

The provision for income taxes was $30.9 million in the first six months of 2023, a decrease of $2.4 million compared to the same period in 2022. The effective tax rate for the first six months of 2023 was 24.98%, an increase from 23.00% for the same period in 2022. The higher effective tax rate for the first six months of 2023 compared to the same period in 2022 was primarily due to a loss of tax benefits from exiting the leverage lease business, an increase in valuation allowance and tax deficiency on share-based compensation.

Analysis of Statements of Condition

Investment Securities

The carrying value of our investment securities portfolio was $7.9 billion and $8.3 billion as of June 30, 2023, and December 31, 2022, respectively.

We continually evaluate our investment securities portfolio in response to established asset/liability management objectives, changing market conditions that could affect profitability, and the level of interest rate risk to which we are exposed to. These evaluations may cause us to change the level of funds we deploy into investment securities, change the composition of our investment securities portfolio, and change the proportion of investments made into the available-for-sale and held-to-maturity investment categories.

Mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac are the largest concentration in our portfolio. As of June 30, 2023, these mortgage-backed securities were all AAA-rated, with a low probability of a change in their credit ratings in the near future.

50

Gross unrealized gains in our investment securities portfolio were $1.4 million as of June 30, 2023, and $1.9 million as of December 31, 2022. Gross unrealized losses in our investment securities portfolio were $1.1 billion as of June 30, 2023, and December 31, 2022. The gross unrealized losses were primarily related to mortgage-backed securities issued by U.S. government agencies or U.S. government-sponsored enterprises. See Note 3 to the Consolidated Financial Statements for more information.

Loans and Leases

Table 6 presents the composition of our loan and lease portfolio by major categories.

Loan and Lease Portfolio Balances					Table 6
(dollars in thousands)	June 30, 2023		December 31, 2022		Change
Commercial
Commercial and Industrial	$	1,502,676	$	1,389,066	$	113,610
Paycheck Protection Program		13,789		19,579		(5,790	)
Commercial Mortgage		3,796,769		3,725,542		71,227
Construction		236,428		260,825		(24,397	)
Lease Financing		62,779		69,491		(6,712	)
Total Commercial		5,612,441		5,464,503		147,938
Consumer
Residential Mortgage		4,721,976		4,653,072		68,904
Home Equity		2,278,105		2,225,950		52,155
Automobile		878,767		870,396		8,371
Other 1		423,600		432,499		(8,899	)
Total Consumer		8,302,448		8,181,917		120,531
Total Loans and Leases	$	13,914,889	$	13,646,420	$	268,469

1Comprised of other revolving credit, installment, and lease financing.

Total loans and leases as of June 30, 2023, increased by $268.5 million or 2%, from December 31, 2022, primarily due to growth from commercial and industrial loans, commercial mortgage loans, residential mortgage loans, and home equity lines of credit.

Commercial loans and leases as of June 30, 2023, increased by $147.9 million or 3% from December 31, 2022. Commercial and industrial loans increased by $113.6 million or 8% from December 31, 2022, primarily due to higher corporate demand for funding from new and existing customers. PPP loans decreased by $5.8 million, or 30% from December 31, 2022, primarily due to paydowns. Commercial mortgage loans increased by $71.2 million or 2% from December 31, 2022, primarily due to demand from new and existing customers. Construction loans decreased by $24.4 million or 9% from December 31, 2022, primarily due to paydowns. Lease financing decreased by $6.7 million, or 10% from December 31, 2022, primarily due to paydowns.

51

Consumer loans and leases as of June 30, 2023, increased by $120.5 million or 1% from December 31, 2022. Residential mortgage loans increased by $68.9 million or 1% from December 31, 2022. While overall production has decreased due to the higher rate environment, payoffs remain low due to existing customers having lower interest rates. Home equity portfolio increased by $52.2 million or 2% from December 31, 2022, as a result of reduced payoff levels despite lower production levels. Automobile loans and other consumer loans remained relatively unchanged from December 31, 2022.

Table 7 presents the composition of our loan and lease portfolio by geographic area and by major categories.

Geographic Distribution of Loan and Lease Portfolio									Table 7
(dollars in thousands)	Hawaii		U.S. Mainland 1		Guam		Other Pacific Islands		Total
June 30, 2023
Commercial
Commercial and Industrial	$	1,271,098	$	145,453	$	70,005	$	16,120	$	1,502,676
Paycheck Protection Program		10,957		2,006		401		425		13,789
Commercial Mortgage		3,306,416		286,544		203,367		442		3,796,769
Construction		236,428		—		—		—		236,428
Lease Financing		62,082		—		697		—		62,779
Total Commercial		4,886,981		434,003		274,470		16,987		5,612,441
Consumer
Residential Mortgage		4,640,840		3,500		77,142		494		4,721,976
Home Equity		2,229,576		44		48,485		—		2,278,105
Automobile		679,719		—		154,122		44,926		878,767
Other 2		360,701		—		52,431		10,468		423,600
Total Consumer		7,910,836		3,544		332,180		55,888		8,302,448
Total Loans and Leases	$	12,797,817	$	437,547	$	606,650	$	72,875	$	13,914,889
December 31, 2022
Commercial
Commercial and Industrial	$	1,182,706	$	127,302	$	66,686	$	12,372	$	1,389,066
Paycheck Protection Program		15,980		2,601		485		513		19,579
Commercial Mortgage		3,226,112		288,566		210,864		—		3,725,542
Construction		260,825		—		—		—		260,825
Lease Financing		66,321		—		3,170		—		69,491
Total Commercial		4,751,944		418,469		281,205		12,885		5,464,503
Consumer
Residential Mortgage		4,576,143		—		76,376		553		4,653,072
Home Equity		2,176,848		46		49,056		—		2,225,950
Automobile		663,608		—		160,694		46,094		870,396
Other 2		366,744		—		54,107		11,648		432,499
Total Consumer		7,783,343		46		340,233		58,295		8,181,917
Total Loans and Leases	$	12,535,287	$	418,515	$	621,438	$	71,180	$	13,646,420

1For secured loans and leases, classification is made based on where the collateral is located. For unsecured loans and leases, classification is made based on the location where the majority of the borrower’s business operations are conducted.

2Comprised of other revolving credit, installment, and lease financing.

Our commercial and consumer lending activities are concentrated primarily in Hawaii and the Pacific Islands. Our commercial loan and lease portfolio to borrowers based on the U.S. Mainland includes participation in shared national credits for customers whose operations and assets extend beyond Hawaii.

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Other Assets

Table 8 presents the major components of other assets.

Other Assets					Table 8
(dollars in thousands)	June 30, 2023		December 31, 2022		Change
Federal Home Loan Bank of Des Moines and Federal Reserve Bank Stock	$	107,277	$	53,065	$	54,212
Derivative Financial Instruments		162,753		47,717		115,036
Low-Income Housing and Other Equity Investments		183,238		175,283		7,955
Deferred Compensation Plan Assets		53,202		47,755		5,447
Prepaid Expenses		22,483		18,651		3,832
Accounts Receivable		15,250		12,168		3,082
Deferred Tax Assets		178,841		177,713		1,128
Other		43,773		41,636		2,137
Total Other Assets	$	766,817	$	573,988	$	192,829

Total other assets increased by $192.8 million or 34% from December 31, 2022. This increase was due to a $115.0 million increase in derivative financial instruments, which was driven by the conversion of our interest rate swap portfolio from LIBOR to CME Term SOFR. CME Term SOFR swaps are not clearable via a central clearinghouse and do not require the exchange of daily payments. Previously, the exchange of these payments through a central clearinghouse would reduce the fair value of the associated derivative to approximately zero on a daily basis. The cessation of these daily payments resulted in these derivative being marked to fair value, which increased during the year due to prevailing interest rates. Federal Home Loan Bank of Des Moines stock increased by $54.2 million due to increase of stock activity. In addition, low-income housing and other equity investments increased by $8.0 million due to additional funding of existing projects.

Deposits

Table 9 presents the composition of our deposits by major customer categories.

Deposits					Table 9
(dollars in thousands)	June 30, 2023		December 31, 2022		Change
Consumer	$	10,018,931	$	10,304,335	$	(285,404	)
Commercial		8,019,971		8,569,670		(549,699	)
Public and Other		2,469,713		1,741,691		728,022
Total Deposits	$	20,508,615	$	20,615,696	$	(107,081	)

Total deposits were $20.5 billion as of June 30, 2023, a decrease of $107.1 million or 1% from December 31, 2022. Consumer deposits decreased by $285.4 million primarily due to a $740.7 million decrease in core deposits, partially offset by $455.3 million increase in time deposits. Commercial deposits decreased by $549.7 million due to a decrease of $627.4 million in core deposits, partially offset by an increase of $77.7 million in time deposits. Public and other deposits increased by $728.0 million primarily from increases of $302.1 million in core deposits and $425.9 million in time deposits.

Table 10 presents the composition of our savings deposits.

Savings Deposits					Table 10
(dollars in thousands)	June 30, 2023		December 31, 2022		Change
Money Market	$	3,091,684	$	3,101,594	$	(9,910	)
Regular Savings		4,664,742		4,860,816		(196,074	)
Total Savings Deposits	$	7,756,426	$	7,962,410	$	(205,984	)

53

The decrease in Money Market was primarily due to a decrease in consumer deposits of $44.6 million offset by $34.7 million increase in commercial deposits. The decrease in Regular Savings was due to a decrease in consumer deposits of $318.5 million partially offset by increase of $98.4 million and $24.1 million in public deposits and commercial deposits respectively.

Table 11 presents the maturity distribution of the estimated uninsured time deposits.

Maturity Distribution of Estimated Uninsured Time Deposits	Table 11
(dollars in thousands)	June 30, 2023
Remaining maturity:
Three months or less	$	601,112
After three through six months		154,718
After six through twelve months		593,003
After twelve months		487,470
Total	$	1,836,303

Estimated uninsured deposits totaled $10.5 billion and $10.7 billion at June 30, 2023, and December 31, 2022, respectively. As of June 30, 2023, approximately $2.4 billion of uninsured deposits were collateralized by government-backed securities.

Securities Sold Under Agreements to Repurchase

Table 12 presents the composition of our securities sold under agreements to repurchase.

Securities Sold Under Agreements to Repurchase					Table 12
(dollars in thousands)	June 30, 2023		December 31, 2022		Change
Private Institutions	$	725,000	$	725,000	$	—
Government Entities		490		490		—
Total Securities Sold Under Agreements to Repurchase	$	725,490	$	725,490	$	—

Securities sold under agreements to repurchase was $725.5 million as of June 30, 2023, and December 31, 2022. As of June 30, 2023, the weighted-average maturity was 1.36 years for our repurchase agreements with government entities and 3.20 years for our repurchase agreements with private institutions. As of June 30, 2023, the weighted-average interest rate for outstanding agreements with government entities and private institutions was 1.55% and 2.97%, respectively, with all rates being fixed. Each of our repurchase agreements is accounted for as a collateralized financing arrangement (i.e., a secured borrowing) and not as a sale and subsequent repurchase of securities.

Other Debt

Table 13 presents the composition of our other debt.

Other Debt					Table 13
(dollars in thousands)	June 30, 2023		December 31, 2022		Change
Federal Home Loan Bank Advances	$	1,750,000	$	400,000	$	1,350,000
Finance Lease Obligations		10,243		10,294		(51	)
Total	$	1,760,243	$	410,294	$	1,349,949

The FHLB advances increased by $1.4 billion from December 31, 2022, due to borrowing additional funds from the FHLB, which provided a form of fixed-rate funding that mitigates the risk of higher, longer term interest rates. As of June 30, 2023, FHLB advances totaled $1.75 billion with a weighted-average interest rate of 4.26% and weighted average maturity of 2.96 years.

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Analysis of Business Segments

Our business segments are defined as Consumer Banking, Commercial Banking, and Treasury and Other.

Table 14 summarizes net income from our business segments. Additional information about segment performance is presented in Note 10 to the Consolidated Financial Statements.

Business Segment Net Income									Table 14
	Three Months Ended June 30,					Six Months Ended June 30,
(dollars in thousands)	2023			2022 1		2023			2022 1
Consumer Banking	$	36,446		$	18,913	$	67,243		$	33,036
Commercial Banking		31,615			30,889		65,888			59,767
Total		68,061			49,802		133,131			92,803
Treasury and Other		(22,000	)		7,060		(40,228	)		18,893
Consolidated Total	$	46,061		$	56,862	$	92,903		$	111,696
1  Certain prior period information has been reclassified to conform to current presentation.

Consumer Banking

Net income increased by $17.5 million or 93% in the second quarter of 2023 compared to the same period in 2022 primarily due to an increase in net interest income and a decrease in noninterest expense. This was partially offset by an increase in the provision for credit losses. The increase in net interest income was primarily due to higher deposit spreads and higher loan balances, partially offset by lower loan spreads and lower deposit balances. The decrease in noninterest expense was primarily due to lower allocated expense related to support units. The increase in the provision for credit losses was primarily due to lower recoveries in the residential mortgage portfolio and higher net charge-offs in the installment loan portfolio, partially offset by higher recoveries in the home equity portfolio.

Net income increased by $34.2 million or 104% in the first six months of 2023 compared to the same period in 2022 primarily due to an increase in net interest income. This was partially offset by an increase in the provision for credit losses, an increase in noninterest expense, and a decrease in noninterest income. The increase in net interest income was primarily due to higher deposit spreads and higher loan balances, partially offset by lower loan spreads and lower deposit balances. The increase in the provision for credit losses was primarily due to lower recoveries in the residential mortgage portfolio and higher net charge-offs in the installment loan and automobile loan portfolios. The increase in noninterest expense was primarily due to higher salaries and benefits expense. The decrease in noninterest income was primarily due to a decrease in mortgage banking income, related to a net valuation recovery to our servicing rights during the first quarter of 2022.

Commercial Banking

Net income increased by $1.2 million in the second quarter of 2023 compared to the same period in 2022 primarily due to an increase in interest income, partially offset by a decrease to noninterest income and an increase in noninterest expense and an increased tax provision. The increase in interest income is primarily due to higher spreads on noninterest bearing and time deposits, and larger average balances on time deposits and commercial mortgage loans. The increase in interest income was partially offset by a decrease in interest bearing and savings deposit spreads. The decrease in noninterest income is primarily due to decreases in loan fees, customer derivative program revenue, and account analysis fees. The decrease was partially offset by an increase in fees earned on money market sweep balances. The increase in noninterest expense was driven by higher allocated expenses from support units and increased salaries and benefits.

55

Net income decreased by $6.1 million in the first six months of 2023 compared to the same period in 2022 primarily due to an increase in interest income, partially offset by a decrease to noninterest income, an increase in noninterest expense, and an increased tax provision. The increase in interest income is primarily due to higher spreads on noninterest bearing and time deposits, and larger average balances on savings and time deposits and commercial mortgage loans. The increase in interest income was partially offset by a decrease in commercial and industrial spreads as well as interest bearing deposit balances and spreads. The decrease in noninterest income is primarily due to decreases in customer derivative program revenue, loan fees, and account analysis fees. The decrease was partially offset by an increase in merchant income and fees earned on money market sweep balances. The increase in noninterest expense was driven by higher allocated expenses from support units, increased salaries and benefits, and higher merchant transaction fees.

Treasury and Other

Net income decreased by $29.1 million in the second quarter of 2023 compared to the same period in 2022 primarily due to lower net interest income and higher provision for credit losses. This was partially offset by a lower provision for income taxes. The decrease in net interest income was primarily due to higher funding costs, partially offset by an increase in interest income from higher asset yields. The increase in the Provision was primarily due to management’s best estimate of losses over the life of loans and leases in our portfolio in accordance with the CECL approach, given the economic outlook. The provision for income taxes in this business segment represents the residual amount to arrive at the total tax expense for the Company.

Net income decreased by $59.1 million in the first six months of 2023 compared to the same period in 2022 primarily due to lower net interest income and higher provision for credit losses. This was partially offset by a lower provision for income taxes. The decrease in net interest income was primarily due to higher funding costs, partially offset by an increase in interest income from higher asset yields. The increase in the Provision was primarily due to management’s best estimate of losses over the life of loans and leases in our portfolio in accordance with the CECL approach, given the economic outlook. The provision for income taxes in this business segment represents the residual amount to arrive at the total tax expense for the Company.

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Corporate Risk Profile

Credit Risk

As of June 30, 2023, our overall credit risk profile remains strong and reflects the continued recovery of Hawaii’s economy.

We actively manage exposures with deteriorating asset quality to reduce levels of potential loss exposure and closely monitor our reserves and capital to address both anticipated and unforeseen issues. Risk management activities include detailed analysis of portfolio segments and stress tests of certain segments to ensure that reserve and capital levels are appropriate. We perform frequent loan and lease-level risk monitoring and risk rating reviews, which provide opportunities for early interventions to allow for credit exits or restructuring, loan and lease sales, and voluntary workouts and liquidations.

Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More

Table 15 presents information on non-performing assets (“NPAs”) and accruing loans and leases past due 90 days or more.

Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More							Table 15
(dollars in thousands)	June 30, 2023			December 31, 2022			Change
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial	$	17		$	37		$	(20	)
Commercial Mortgage		3,107			3,309			(202	)
Total Commercial		3,124			3,346			(222	)
Consumer
Residential Mortgage		3,504			4,239			(735	)
Home Equity		3,809			4,022			(213	)
Total Consumer		7,313			8,261			(948	)
Total Non-Accrual Loans and Leases		10,437			11,607			(1,170	)
Foreclosed Real Estate		1,040			1,040			—
Total Non-Performing Assets	$	11,477		$	12,647		$	(1,170	)
Accruing Loans and Leases Past Due 90 Days or More
Consumer
Residential Mortgage	$	3,560		$	2,429		$	1,131
Home Equity		2,022			1,673			349
Automobile		577			589			(12	)
Other 1		633			683			(50	)
Total Consumer		6,792			5,374			1,418
Total Accruing Loans and Leases Past Due 90 Days or More	$	6,792		$	5,374		$	1,418
Total Loans and Leases	$	13,914,889		$	13,646,420		$	268,469
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases		0.08	%		0.09	%		(0.01	)%
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate		0.08	%		0.09	%		(0.01	)%
Ratio of Non-Performing Assets to Total Assets		0.04	%		0.05	%		(0.01	)%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases    and Commercial Foreclosed Real Estate		0.06	%		0.06	%		—
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases    and Consumer Foreclosed Real Estate		0.10	%		0.11	%		(0.01	)%
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days    or More to Total Loans and Leases and Foreclosed Real Estate		0.13	%		0.13	%		—
Changes in Non-Performing Assets
Balance as of December 31, 2022	$	12,647
Additions		1,668
Reductions
Payments		(1,004	)
Return to Accrual Status		(1,824	)
Sales of Foreclosed Real Estate
Charge-offs/Write-downs		(10	)
Total Reductions		(2,838	)
Balance as of June 30, 2023	$	11,477

1Comprised of other revolving credit, installment, and lease financing.

57

NPAs consist of non-accrual loans and leases, and foreclosed real estate. Changes in the level of non-accrual loans and leases typically represent additions for loans and leases that reach a specified past due status, offset by reductions for loans and leases that are charged-off, paid down, sold, transferred to foreclosed real estate, or are no longer classified as non-accrual because they have returned to accrual status.

Residential mortgage non-accrual loans were $3.5 million as of June 30, 2023, a decrease of $735 thousand from December 31, 2022. As of June 30, 2023, our residential mortgage non-accrual loans were comprised of 17 loans with a weighted average current loan-to-value ratio of 63%.

Foreclosed real estate represents property acquired as the result of borrower defaults on loans. Foreclosed real estate is recorded at fair value, less estimated selling costs, at the time of foreclosure. On an ongoing basis, properties are appraised as required by market conditions and applicable regulations. Foreclosed real estate was $1.0 million as of June 30, 2023.

Loans and Leases Past Due 90 Days or More and Still Accruing Interest

Loans and leases in this category are 90 days or more past due, as to principal or interest, and are still accruing interest because they are well secured and in the process of collection. Loans and leases past due 90 days or more and still accruing interest were $6.8 million as of June 30, 2023, a $1.4 million or 26% increase from December 31, 2022. The increase was primarily in residential mortgage and home equity.

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Reserve for Credit Losses

Table 16 presents the activity in our reserve for credit losses.

Reserve for Credit Losses										Table 16
	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2023			2022			2023			2022
Balance at Beginning of Period	$	150,579		$	157,264		$	151,247		$	164,297
Loans and Leases Charged-Off
Commercial
Commercial and Industrial		(203	)		(233	)		(464	)		(582	)
Commercial Mortgage		—			—			—			—
Consumer
Residential Mortgage		(6	)		(80	)		(6	)		(80	)
Home Equity		(5	)		(22	)		(55	)		(90	)
Automobile		(1,293	)		(1,157	)		(2,956	)		(2,687	)
Other 1		(2,004	)		(1,854	)		(4,339	)		(3,815	)
Total Loans and Leases Charged-Off		(3,511	)		(3,346	)		(7,820	)		(7,254	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial		103			51			153			420
Consumer
Residential Mortgage		58			920			119			974
Home Equity		578			416			762			931
Automobile		777			684			1,449			1,423
Other 1		618			644			1,292			1,389
Total Recoveries on Loans and Leases Previously    Charged-Off		2,134			2,715			3,775			5,137
Net Charged-Off - Loans and Leases		(1,377	)		(631	)		(4,045	)		(2,117	)
Net Charged-Off - Accrued Interest Receivable		—			—			—			(47	)
Provision for Credit Losses:
Loans and Leases		3,167			(2,885	)		4,973			(7,192	)
Accrued Interest Receivable		—			—			—			(367	)
Unfunded Commitments		(667	)		350			(473	)		(476	)
Total Provision for Credit Losses		2,500			(2,535	)		4,500			(8,035	)
Balance at End of Period	$	151,702		$	154,098		$	151,702		$	154,098
Components
Allowance for Credit Losses - Loans and Leases	$	145,367		$	148,512		$	145,367		$	148,512
Reserve for Unfunded Commitments		6,335			5,586			6,335			5,586
Total Reserve for Credit Losses	$	151,702		$	154,098		$	151,702		$	154,098
Average Loans and Leases Outstanding	$	13,876,754		$	12,700,825		$	13,797,559		$	12,496,747
Ratio of Net Loans and Leases Charged-Off to    Average Loans and Leases Outstanding (annualized)		0.04	%		0.02	%		0.06	%		0.03	%
Ratio of Allowance for Credit Losses to    Loans and Leases Outstanding 2		1.04	%		1.15	%		1.04	%		1.15	%

1Comprised of other revolving credit, installment, and lease financing.

2The numerator comprises the Allowance for Credit Losses – Loans and Leases.

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Allowance for Credit Losses - Loans and Leases

As of June 30, 2023, the Allowance was $145.4 million or 1.04% of total loans and leases outstanding (1.05% excluding PPP loans), compared with an Allowance of $144.4 million or 1.06% of total loans and leases outstanding (1.08% excluding PPP loans) as of December 31, 2022. The Allowance as of June 30, 2023, continues to include a qualitative overlay to account for economic uncertainty and downside risk of a recession.

Net charge-offs on loans and leases were $1.4 million or 0.04% of total average loans and leases on an annualized basis, in the second quarter of 2023 compared to net charge-offs of $0.6 million or 0.02% of total average loans and leases on an annualized basis, in the second quarter of 2022. The increase in net charge-offs on loans and leases was primarily due to lower recoveries in 2023.

Reserve for Unfunded Commitments

The Unfunded Reserve was $6.3 million as of June 30, 2023, a decrease of $0.5 million or 7% from December 31, 2022, primarily driven by higher utilization of commercial and industrial commitments. The reserve for unfunded commitments is recorded in other liabilities in the consolidated statements of condition.

Provision for Credit Losses

For the first six months of 2023, the provision for credit losses was $4.5 million compared to a net benefit of $8.0 million during the same period in 2022. The increase in the provision was primarily due to reduction in the allowance for credit losses in 2022 and higher net charge-offs in 2023.

Market Risk

Market risk is the potential of loss arising from adverse changes in interest rates and prices. We are exposed to market risk as a consequence of the normal course of conducting our business activities. Our market risk management process involves measuring, monitoring, controlling, and mitigating risks that can significantly impact our statements of income and condition. In this management process, market risks are balanced with expected returns in an effort to enhance earnings performance, while limiting volatility.

Our primary market risk exposure is interest rate risk.

Interest Rate Risk

The objective of our interest rate risk management process is to optimize net interest income while operating within acceptable limits established for interest rate risk and maintaining adequate levels of funding and liquidity. The potential cash flows, sales, or replacement value of many of our assets and liabilities, especially those that earn or pay interest, are sensitive to changes in the general level of interest rates. This interest rate risk arises primarily from our core business activities of extending loans and accepting deposits. Our investment securities portfolio is also subject to significant interest rate risk.

Many factors affect our exposure to changes in interest rates such as general economic and financial conditions, customer preferences, historical pricing relationships, and repricing characteristics of financial instruments. Our earnings are affected not only by general economic conditions but also by the monetary and fiscal policies of the U.S. and its agencies, particularly the Federal Reserve Bank (the “FRB”). The monetary policies of the FRB can influence the overall growth of loans, investment securities, and deposits and the level of interest rates earned on assets and paid for liabilities.

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In managing interest rate risk, we, through the Asset/Liability Management Committee (“ALCO”), measure short and long-term sensitivities to changes in interest rates. The ALCO, which is comprised of members of executive management, utilizes several techniques to manage interest rate risk, which include:

•adjusting the balance sheet mix or altering the interest rate characteristics of assets and liabilities;

•changing product pricing strategies;

•modifying characteristics of the investment securities portfolio; and

•using derivative financial instruments.

Our use of derivative financial instruments, as detailed in Note 11 to the Consolidated Financial Statements, has generally been limited. This is due to natural on-balance sheet hedges arising out of offsetting interest rate exposures from loans and investment securities with deposits and other interest-bearing liabilities. In particular, the investment securities portfolio is utilized to manage the interest rate exposure and sensitivity to within the guidelines and limits established by the ALCO. We utilize natural and offsetting economic hedges in an effort to reduce the need to employ off-balance sheet derivative financial instruments to hedge interest rate risk exposures. Expected movements in interest rates are also considered in managing interest rate risk. Thus, as interest rates change, we may use different techniques to manage interest rate risk.

A key element in our ongoing process to measure and monitor interest rate risk is the utilization of an asset/liability simulation model that attempts to capture the dynamic nature of the statement of condition. The model is used to estimate and measure the statement of condition sensitivity to changes in interest rates. These estimates are based on assumptions about the behavior of loan and deposit pricing, prepayment rates on mortgage-based assets, and principal amortization and maturities on other financial instruments. The model’s analytics include the effects of standard prepayment options on mortgages and customer withdrawal options for deposits. While such assumptions are inherently uncertain, we believe that our assumptions are reasonable.

We utilize net interest income simulations to analyze income sensitivities to changes in interest rates. Table 17 presents, as of June 30, 2023, and December 31, 2022, an estimate of the change in net interest income that would result from a gradual and immediate change in interest rates, moving in a parallel shock over the entire yield curve, relative to the measured base case scenario. The base case scenario assumes the statement of condition and interest rates are generally unchanged. Based on our net interest income simulation as of June 30, 2023, net interest income is expected to increase as interest rates rise. In addition, rising interest rates would drive higher rates on loans and investment securities, as well as induce a slower pace of premium amortization on certain securities within our investment portfolio. However, lower interest rates would likely cause a decline in net interest income as lower rates would lead to lower yields on loans and investment securities, as well as drive higher premium amortization on existing investment securities. Based on our net interest income simulation as of June 30, 2023, net interest income sensitivity to changes in interest rates as of June 30, 2023, was more sensitive in comparison to the sensitivity profile as of December 31, 2022.

Net Interest Income Sensitivity Profile									Table 17
	Impact on Future Annual Net Interest Income
(dollars in thousands)	June 30, 2023					December 31, 2022
Gradual Change in Interest Rates (basis points)
+200	$	9,756		1.9	%	$	13,943			2.4	%
+100		4,439		0.9			7,673			1.3
-100		(6,317	)	(1.2	)		(4,365	)		(0.7	)
Immediate Change in Interest Rates (basis points)
+200	$	19,444		3.8	%	$	22,100			3.8	%
+100		8,669		1.7			11,627			2.0
-100		(15,023	)	(2.9	)		(8,659	)		(1.5	)

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To analyze the impact of changes in interest rates in a more realistic manner, non-parallel interest rate scenarios are also simulated. Given the current shape of the yield curve, these non-parallel interest rate scenarios indicate that net interest income may increase from the base case scenario should the yield curve flatten and may decrease should the yield curve become more inverted for a period of time. However, if the yield curve were to steepen, net interest income may increase.

Other Market Risks

In addition to interest rate risk, we are exposed to other forms of market risk in our normal business transactions. Foreign currency and foreign exchange contracts expose us to a small degree of foreign currency risk. These transactions are primarily executed on behalf of customers. Our trust and asset management income are at risk to fluctuations in the market values of underlying assets, particularly debt and equity securities. Also, our share-based compensation expense is dependent on the fair value of our stock options, restricted stock units, and restricted stock at the date of grant. The fair value of stock options, restricted stock units, and restricted stock is impacted by the market price of the Parent’s common stock on the date of grant and is at risk to changes in equity markets, general economic conditions, and other factors.

Liquidity Risk Management

The objective of our liquidity risk management process is to manage cash flow and liquidity in an effort to provide continuous access to sufficient, reasonably priced funds. Funding requirements are impacted by loan originations and refinancings, deposit balance changes, liability issuances and settlements, and off-balance sheet funding commitments. We consider and comply with various regulatory guidelines regarding required liquidity levels and periodically monitor our liquidity position in light of the changing economic environment and customer activity. Based on periodic liquidity assessments, we may alter our asset, liability, and off-balance sheet positions. The ALCO monitors sources and uses of funds and modifies asset and liability positions as liquidity requirements change. This process, combined with our ability to raise funds in money and capital markets and through private placements, provides flexibility in managing the exposure to liquidity risk.

In an effort to satisfy our liquidity needs, we actively manage our assets and liabilities. We have access to immediate liquid resources in the form of cash which is primarily on deposit with the FRB. Potential sources of liquidity also include investment securities in our available-for-sale securities portfolio, our ability to sell loans in the secondary market, and to secure borrowings from the FRB and FHLB. Our held-to-maturity securities, while not intended for sale, may also be utilized to secure borrowings from the FRB and FHLB, or in repurchase agreements. Our core deposits have historically provided us with a long-term source of stable and relatively low cost source of funding. Additional funding is available through the issuance of long-term debt or equity.

Maturities and payments on outstanding loans and investment securities also provide a steady flow of funds. Liquidity is further enhanced by our ability to pledge loans to access secured borrowings from the FHLB and FRB. As of June 30, 2023, we had additional borrowing capacity of $5.2 billion from the FRB and $1.4 billion from the FHLB based on the amount of collateral pledged. As of June 30, 2023, cash and cash equivalents were $1.7 billion, the carrying value of our available-for-sale investment securities was $2.7 billion, and total deposits were $20.5 billion. As of June 30, 2023, our available-for-sale investment securities portfolio was comprised of securities with an average base duration of approximately 3.80 years.

Capital Management

We actively manage capital, commensurate with our risk profile, to enhance shareholder value. We also seek to maintain capital levels for the Company and the Bank at amounts in excess of the regulatory “well-capitalized” thresholds. Periodically, we may respond to market conditions by implementing changes to our overall balance sheet positioning to manage our capital position.

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The Company and the Bank are each subject to regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements could cause certain mandatory and discretionary actions by regulators that, if undertaken, would likely have a material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative and qualitative measures. These measures were established by regulation intended to ensure capital adequacy. Capital ratios are calculated using the regulatory capital rule that allows a five-year transition period related to the adoption of CECL. As of June 30, 2023, the Company’s capital levels remained characterized as “well-capitalized.” There have been no conditions or events since June 30, 2023, that management believes have changed either the Company’s or the Bank’s capital classifications. The Company’s regulatory capital ratios are presented in Table 18 below.

Table 18 presents our regulatory capital and ratios as of June 30, 2023, and December 31, 2022.

Regulatory Capital and Ratios				Table 18
(dollars in thousands)	June 30, 2023			December 31, 2022
Regulatory Capital
Total Common Shareholders’ Equity	$	1,182,792		$	1,141,508
Add: CECL Transitional Amount		4,749			7,124
Less: Goodwill, Net of Deferred Tax Liabilities		28,746			28,746
Postretirement Benefit Liability Adjustments		(24,910	)		(25,078	)
Net Unrealized Losses on Investment Securities 1		(398,521	)		(409,579	)
Other		(198	)		(198	)
Common Equity Tier 1 Capital		1,582,424			1,554,741
Preferred Stock, Net of Issuance Cost		175,487			175,487
Tier 1 Capital		1,757,911			1,730,228
Allowable Reserve for Credit Losses		147,673			145,202
Total Regulatory Capital	$	1,905,584		$	1,875,430
Risk-Weighted Assets	$	14,391,943		$	14,238,798
Key Regulatory Capital Ratios
Common Equity Tier 1 Capital Ratio		11.00	%		10.92	%
Tier 1 Capital Ratio		12.21			12.15
Total Capital Ratio		13.24			13.17
Tier 1 Leverage Ratio		7.21			7.37

1 Includes unrealized gains and losses related to the Company’s reclassification of available-for-sale investment securities to the held-to-maturity category.

2 Regulatory capital ratios as of June 30, 2023 are preliminary.

As of June 30, 2023, shareholders’ equity was $1.4 billion, an increase of $41.3 million or 3% from December 31, 2022. For the first six months of 2023, net income of $92.9 million, other comprehensive income of $11.2 million, share-based compensation of $7.7 million, and common stock issuances of $3.2 million were offset by cash dividends paid of $55.9 million on common shares, common stock repurchased of $13.9 million, and cash dividends declared of $3.9 million on preferred shares. No shares of common stock were repurchased under the share repurchase program in the second quarter of 2023. We repurchased 150,000 shares under our share repurchase program in the first quarter of 2023. These shares were repurchased at an average cost per share of $65.69 and a total cost of $9.9 million. From the beginning of our share repurchase program in July 2001 through June 30, 2023, we repurchased a total of 58.2 million shares of our common stock and returned a total of $2.4 billion to our shareholders at an average cost of $41.24 per share.

In January 2023, the Board of Directors authorized an additional $100.0 million for the share repurchase program. Remaining buyback authority under our share repurchase program was $126.0 million as of June 30, 2023. The actual amount and timing of future share repurchases, if any, will depend on market and economic conditions, regulatory rules, applicable SEC rules, and various other factors.

In July 2023, the Parent’s Board of Directors declared a quarterly dividend payment of its Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, of $10.94 per share, equivalent to $0.2735 per depositary share. The dividend will be payable on August 1, 2023, to shareholders of record of the preferred stock at the close of business on July 17, 2023.

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In July 2023, the Parent’s Board of Directors declared a quarterly cash dividend of $0.70 per share on the Parent’s outstanding common shares. The dividend will be payable on September 15, 2023, to shareholders of record of the common stock at the close of business on August 31, 2023.

Operational Risk

Operational risk represents the risk of loss resulting from our operations, including, but not limited to, the risk of fraud by employees or persons outside the Company, errors relating to transaction processing and technology, failure to adhere to compliance requirements, and the risk of cyber attacks. We are also exposed to operational risk through our outsourcing arrangements, and the effect that changes in circumstances or capabilities of our outsourcing vendors can have on our ability to continue to perform operational functions necessary to our business. The risk of loss also includes the potential legal actions that could arise as a result of an operational deficiency or as a result of noncompliance with applicable regulatory standards, adverse business decisions or their implementation, and customer attrition due to potential negative publicity. Operational risk is inherent in all business activities, and management of this risk is important to the achievement of Company goals and objectives.

Our Operational Risk Committee (the “ORC”) provides oversight and assesses the most significant operational risks facing the Company. We have developed a framework that provides for a centralized operating risk management function through the ORC, supplemented by business unit responsibility for managing operational risks specific to their business units. Our internal audit department also validates the system of internal controls through ongoing risk-based audit procedures and reports on the effectiveness of internal controls to executive management and the Audit and Risk Committee of the Board of Directors.

We continuously strive to strengthen our system of internal controls to improve the oversight of operational risk. While our internal controls have been designed to minimize operational risks, there is no assurance that business disruption or operational losses will not occur. On an ongoing basis, management reassesses operational risks, implements appropriate process changes, and invests in enhancements to our systems of internal controls.

Off-Balance Sheet Arrangements, Credit Commitments, and Contractual Obligations

Off-Balance Sheet Arrangements

We hold interests in several unconsolidated variable interest entities (“VIEs”). These unconsolidated VIEs are primarily low-income housing partnerships and solar energy partnerships. Variable interests are defined as contractual ownership or other interests in an entity that change with fluctuations in an entity’s net asset value. The primary beneficiary consolidates the VIE. We have determined that the Company is not the primary beneficiary of these entities. As a result, we do not consolidate these VIEs.

Credit Commitments and Contractual Obligations

Our credit commitments and contractual obligations have not changed materially since previously reported in our Annual Report on Form 10-K for the year ended December 31, 2022.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

See “Market Risk” of this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

The Company’s management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of June 30, 2023. The Company’s disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the U.S. Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2023.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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Part II - Other Information

Item 1. Legal Proceedings

Information regarding legal proceedings is incorporated by reference from “Contingencies” in Note 12 to our Consolidated Financial Statements (unaudited) set forth in Part I of this report.

Item 1A. Risk Factors

There are no material changes from the risk factors set forth under Part I, Item 1A. “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, except as described below.

Risks Related to Recent Events Impacting the Financial Services Industry

Recent events impacting the financial services industry, including the failure of Silicon Valley Bank, Signature Bank and First Republic Bank, have resulted in decreased confidence in banks among consumer and commercial depositors, other counterparties and investors, as well as significant disruption, volatility and reduced valuations of equity and other securities of banks in the capital markets. These events occurred during a period of rapidly rising interest rates which, among other things, has resulted in unrealized losses in longer duration securities and loans held by banks, more competition for bank deposits and may increase the risk of a potential recession. These recent events have, and could continue to, adversely impact the market price and volatility of the Company’s common stock.

These recent events may also result in potentially adverse changes to laws or regulations governing banks and bank holding companies or result in the impositions of restrictions through supervisory or enforcement activities, including higher capital requirements, which could have a material impact on our business. Inability to access short-term funding, loss of client deposits or changes in our credit ratings could increase the cost of funding, limit access to capital markets or negatively impact our overall liquidity or capitalization. We may be impacted by concerns regarding the soundness or creditworthiness of other financial institutions, which can cause substantial and cascading disruption within the financial markets and increased expenses. The cost of resolving the recent bank failures may prompt the FDIC to increase its premiums above the recently increased levels or to issue additional special assessments, which could have a material negative impact on our profitability and our business.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The Parent’s repurchases of its common stock during the second quarter of 2023 were as follows:

Issuer Purchases of Equity Securities
Period	Total Number of Shares Purchased 1		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs 2
April 1 - 30, 2023		2,353	$	51.32		—	$	126,038,927
May 1 - 31, 2023		—		—		—		126,038,927
June 1 - 30, 2023		406		42.59		—		126,038,927
Total		2,759	$	50.03		—

1During the second quarter of 2023, 2,759 shares were acquired from employees in connection with income tax withholdings related to the vesting of restricted stock and acquired by the trustee of a trust established pursuant to the Bank of Hawai‘i Corporation Director Deferred Compensation Plan (the “DDCP”) directly from the Parent in satisfaction of the Company’s obligations to participants under the DDCP. The issuance of these shares was made in reliance upon the exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) by Section 4(a)(2) thereof. The trustee under the trust and the participants under the DDCP are “Accredited Investors”, as defined in Rule 501(a) under the Securities Act. These transactions did not involve a public offering and occurred without general solicitation or advertising. The shares were purchased at the closing price of the Parent’s common stock on the dates of purchase.

2The share repurchase program was first announced in July 2001. The program has no set expiration or termination date. The actual amount and timing of future share repurchases, if any, will depend on market and economic conditions, regulatory rules, applicable SEC rules, and various other factors.

Item 5. Other Information

On May 8, 2023, Peter S. Ho, Chairman, CEO and President of the Company, terminated his Rule 10b5-1 trading arrangement that he previously adopted on October 26, 2022, for the sale of up to 25,000 shares of the Company’s common stock between the periods of February 10, 2023 and November 30, 2023 pursuant to pre-established trading formulas. Both the entry into and the termination of Mr. Ho’s Rule 10b5-1 trading arrangement were effected within the Company’s open trading window periods and were done in compliance with the Company’s insider trading policy.

Other than the aforementioned, during the fiscal quarter ended June 30, 2023, none of the Company’s directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any non-Rule 10b5-1 trading arrangement.

Item 6. Exhibits

A list of exhibits to this Form 10-Q is set forth on the Exhibit Index and is incorporated herein by reference.

Exhibit Index

Exhibit Number
3.1	Certificate of Incorporation of Bank of Hawaii Corporation (f/k/a Pacific Century Financial Corporation and Bancorp Hawaii, Inc.), as amended (incorporated by reference to Exhibit 3.1 to Bank of Hawaii Corporation’s Annual Report on Form 10-K for its fiscal year ended December 31, 2005 filed on February 28, 2006).
3.2	Certificate of Amendment of Certificate of Incorporation of Bank of Hawaii Corporation (incorporated by reference to Exhibit 3.1 to Bank of Hawaii Corporation’s Current Report on Form 8-K filed on April 30, 2008).
3.3	Certificate of Designations of 4.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (incorporated by reference to Exhibit 3.1 to Bank of Hawaii Corporation’s Current Report on Form 8-K filed on June 15, 2021).
3.4	Amended and Restated By-laws of Bank of Hawaii Corporation (as amended November 20, 2020) (incorporated by reference to Exhibit 3.2 to Bank of Hawaii Corporation’s Current Report on Form 8-K filed on November 23, 2020).

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4.1	Deposit Agreement, dated June 15, 2021, by and among Bank of Hawaii Corporation, Computershare Inc. and Computershare Trust Company, N.A., jointly as depositary, and the holders from time to time of the depositary receipts described therein (incorporated by reference to the Company’s Current Report on Form 8-K filed with the SEC on June 15, 2021)
4.2	Form Depository Receipt (included in Exhibit 4.1)
31.1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Amended, Adopted Pursuant to Section 302 of the Sarbanes Oxley Act of 2002
31.2	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Amended, Adopted Pursuant to Section 302 of the Sarbanes Oxley Act of 2002
32	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	The cover page for the Company’s Quarterly Report on the Form 10-Q has been formatted in Inline XBRL and contained in Exhibit 101

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Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:	July 24, 2023		Bank of Hawaii Corporation
		By:	/s/ Peter S. Ho
			Peter S. Ho
			Chairman of the Board,
			Chief Executive Officer, and
			President
		By:	/s/ Dean Y. Shigemura
			Dean Y. Shigemura
			Vice Chair, Chief Financial Officer

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EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer Pursuant to

Rule 13a-14(a) of the Securities Exchange Act of 1934, as Amended,

Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Peter S. Ho, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Bank of Hawaii Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit and risk committee of the registrant’s board of directors:

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	July 24, 2023	/s/ Peter S. Ho
		Peter S. Ho
		Chairman of the Board,
		Chief Executive Officer, and
		President

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer Pursuant to

Rule 13a-14(a) of the Securities Exchange Act of 1934, as Amended,

Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Dean Y. Shigemura, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Bank of Hawaii Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit and risk committee of the registrant’s board of directors:

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	July 24, 2023	/s/ Dean Y. Shigemura
		Dean Y. Shigemura
		Vice Chair,
		Chief Financial Officer

EX-32

Exhibit 32

Certification of Chief Executive Officer and Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

We hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Bank of Hawaii Corporation (the “Company”) for the quarter ended June 30, 2023 (the “Report”):

•fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

•the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	July 24, 2023	/s/ Peter S. Ho
		Peter S. Ho
		Chairman of the Board,
		Chief Executive Officer, and
		President
		/s/ Dean Y. Shigemura
		Dean Y. Shigemura
		Vice Chair,
		Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover page - shares	6 Months Ended
	Jun. 30, 2023	Jul. 18, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	1-6887
Entity Registrant Name	BANK OF HAWAII CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	99-0148992
Entity Address, Address Line One	130 Merchant Street
Entity Address, City or Town	Honolulu
Entity Address, State or Province	HI
Entity Address, Postal Zip Code	96813
City Area Code	888
Local Phone Number	643-3888
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		39,727,652
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000046195
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	BOH
Security Exchange Name	NYSE
Series A Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	Depository Shares, Each Representing 1/40th Interest in a Share of 4.375% Fixed Rate Non-Cumulative Preferred Stock, Series A
Trading Symbol	BOH.PRA
Security Exchange Name	NYSE

XML

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Interest Income
Interest and Fees on Loans and Leases	$ 144,541	$ 101,663	$ 281,042	$ 196,102
Income on Investment Securities
Available-for-Sale	23,301	17,984	47,194	35,084
Held-to-Maturity	23,375	18,838	47,323	37,539
Deposits	18	5	45	9
Funds Sold	6,395	719	9,761	846
Other	2,121	353	2,718	555
Total Interest Income	199,751	139,562	388,083	270,135
Interest Expense
Deposits	53,779	3,535	91,573	5,888
Securities Sold Under Agreements to Repurchase	5,436	2,794	10,813	5,566
Funds Purchased	184	57	888	59
Short-Term Borrowings	2,510	92	5,713	92
Other Debt	13,494	182	18,793	365
Total Interest Expense	75,403	6,660	127,780	11,970
Net Interest Income	124,348	132,902	260,303	258,165
Provision for Credit Losses	2,500	(2,500)	4,500	(8,000)
Net Interest Income After Provision for Credit Losses	121,848	135,402	255,803	266,165
Noninterest Income
Trust and Asset Management	11,215	11,457	21,905	22,733
Mortgage Banking	1,176	1,247	2,180	3,987
Service Charges on Deposit Accounts	7,587	7,309	15,324	14,581
Fees, Exchange, and Other Service Charges	14,150	14,193	27,958	27,145
Investment Securities Losses, Net	(1,310)	(1,295)	(3,102)	(2,840)
Annuity and Insurance	1,038	870	2,309	1,661
Bank-Owned Life Insurance	2,876	2,658	5,718	5,007
Other	6,523	5,719	11,700	13,435
Total Noninterest Income	43,255	42,158	83,992	85,709
Noninterest Expense
Salaries and Benefits	56,175	57,769	121,263	117,693
Net Occupancy	9,991	9,930	19,863	19,756
Net Equipment	10,573	9,543	20,948	18,696
Data Processing	4,599	4,607	9,182	9,167
Professional Fees	4,651	3,542	8,534	6,800
FDIC Insurance	3,173	1,590	6,407	3,092
Other	14,874	15,958	29,758	31,609
Total Noninterest Expense	104,036	102,939	215,955	206,813
Income Before Provision for Income Taxes	61,067	74,621	123,840	145,061
Provision for Income Taxes	15,006	17,759	30,937	33,365
Net Income	46,061	56,862	92,903	111,696
Preferred Stock Dividends	1,969	1,969	3,938	3,938
Net Income Available to Common Shareholders	$ 44,092	$ 54,893	$ 88,965	$ 107,758
Basic Earnings Per Common Share	$ 1.12	$ 1.38	$ 2.27	$ 2.71
Diluted Earnings Per Common Share	1.12	1.38	2.26	2.7
Dividends Declared Per Common Share	$ 0.7	$ 0.7	$ 1.4	$ 1.4
Basic Weighted Average Common Shares	39,241,559	39,693,593	39,259,279	39,722,985
Diluted Weighted Average Common Shares	39,317,521	39,842,608	39,382,359	39,896,700

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net Income	$ 46,061	$ 56,862	$ 92,903	$ 111,696
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) on Investment Securities	(18,217)	(122,647)	11,059	(302,771)
Defined Benefit Plans	84	352	168	705
Total Other Comprehensive Income (Loss)	(18,133)	(122,295)	11,227	(302,066)
Comprehensive Income (Loss)	$ 27,928	$ (65,433)	$ 104,130	$ (190,370)

XML

Consolidated Statements of Condition (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets
Interest-Bearing Deposits in Other Banks	$ 2,261	$ 3,724
Funds Sold	1,273,109	81,364
Investment Securities
Available-for-Sale	2,666,723	2,844,823
Held-to-Maturity (Fair Value of $x,xxx,xxx and $4,615,393)	5,202,698	5,414,139
Loans Held for Sale	3,359	1,035
Loans and Leases	13,914,889	13,646,420
Allowance for Credit Losses	(145,367)	(144,439)
Net Loans and Leases	13,769,522	13,501,981
Total Earning Assets	22,917,672	21,847,066
Cash and Due From Banks	398,072	316,679
Premises and Equipment, Net	200,297	206,777
Operating Lease Right-of-Use Assets	89,286	92,307
Accrued Interest Receivable	64,720	61,002
Foreclosed Real Estate	1,040	1,040
Mortgage Servicing Rights	21,626	22,619
Goodwill	31,517	31,517
Bank-Owned Life Insurance	456,889	453,882
Other Assets	766,817	573,988
Total Assets	24,947,936	23,606,877
Deposits
Noninterest-Bearing Demand	5,968,344	6,714,982
Interest-Bearing Demand	4,119,166	4,232,567
Savings	7,756,426	7,962,410
Time	2,664,679	1,705,737
Total Deposits	20,508,615	20,615,696
Securities Sold Under Agreements to Repurchase	725,490	725,490
Other Debt	1,760,243	410,294
Operating Lease Liabilities	97,768	100,526
Retirement Benefits Payable	26,434	26,991
Accrued Interest Payable	26,737	9,698
Taxes Payable	132	7,104
Other Liabilities	444,238	394,083
Total Liabilities	23,589,657	22,289,882
Commitments and Contingencies (Note 12)
Shareholders’ Equity
Preferred Stock ($.01 par value; authorized 180,000 shares; issued and outstanding: June 30, 2023 and December 31, 2022 - 180,000)	180,000	180,000
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 20, 2023 -58,771,036 / 39,725,348 and December 31, 2022 -58,733,625 / 39,835,750)	583	582
Capital Surplus	628,202	620,578
Accumulated Other Comprehensive Loss	(423,431)	(434,658)
Retained Earnings	2,091,289	2,055,912
Treasury Stock, at Cost (Shares: June 30, 2023 - 19,045,688 and December 31, 2022 - 18,897,875)	(1,118,364)	(1,105,419)
Total Shareholders’ Equity	1,358,279	1,316,995
Total Liabilities and Shareholders’ Equity	$ 24,947,936	$ 23,606,877

XML

Consolidated Statements of Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Held-to-Maturity: Fair Value	$ 4,411,003	$ 4,615,393
Preferred Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, authorized (in shares)	180,000	180,000
Preferred Stock, issued (in shares)	180,000	180,000
Preferred Stock, outstanding (in shares)	180,000	180,000
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, authorized (in shares)	500,000,000	500,000,000
Common Stock, issued (in shares)	58,771,036	58,733,625
Common Stock, outstanding (in shares)	39,725,348	39,835,750
Treasury Stock (in shares)	19,045,688	18,897,875

XML

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Capital Surplus	Accum.Other Comprehensive Income (Loss)	Retained Earnings	Treasury Stock
Balance at Beginning of Period at Dec. 31, 2021	$ 1,611,611	$ 180,000	$ 581	$ 602,508	$ (66,382)	$ 1,950,375	$ (1,055,471)
Beginning Balance (in shares) at Dec. 31, 2021		180,000	40,253,193
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	54,834					54,834
Other Comprehensive Income (Loss)	(179,771)				(179,771)
Share-Based Compensation	4,010			4,010
Common Stock Issued under Purchase and Equity Compensation Plans	2,395		$ 1	543		(185)	2,036
Common Stock Issued under Purchase and Equity Compensation Plans (in shares)			197,783
Common Stock Repurchased	(13,960)						(13,960)
Common Stock Repurchased (in shares)			(162,611)
Cash Dividends Declared Common Stock (per share)	(28,265)					(28,265)
Cash Dividends Declared Preferred Stock	(1,969)					(1,969)
Balance at End of Period at Mar. 31, 2022	1,448,885	$ 180,000	$ 582	607,061	(246,153)	1,974,790	(1,067,395)
Ending Balance (in shares) at Mar. 31, 2022		180,000	40,288,365
Balance at Beginning of Period at Dec. 31, 2021	1,611,611	$ 180,000	$ 581	602,508	(66,382)	1,950,375	(1,055,471)
Beginning Balance (in shares) at Dec. 31, 2021		180,000	40,253,193
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	111,696
Other Comprehensive Income (Loss)	(302,066)				(302,066)
Balance at End of Period at Jun. 30, 2022	1,348,746	$ 180,000	$ 582	611,694	(368,448)	2,002,005	(1,077,087)
Ending Balance (in shares) at Jun. 30, 2022		180,000	40,182,659
Balance at Beginning of Period at Mar. 31, 2022	1,448,885	$ 180,000	$ 582	607,061	(246,153)	1,974,790	(1,067,395)
Beginning Balance (in shares) at Mar. 31, 2022		180,000	40,288,365
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	56,862					56,862
Other Comprehensive Income (Loss)	(122,295)				(122,295)
Share-Based Compensation	4,162			4,162
Common Stock Issued under Purchase and Equity Compensation Plans	1,663			471		531	661
Common Stock Issued under Purchase and Equity Compensation Plans (in shares)			30,442
Common Stock Repurchased	(10,353)						(10,353)
Common Stock Repurchased (in shares)			(136,148)
Cash Dividends Declared Common Stock (per share)	(28,209)					(28,209)
Cash Dividends Declared Preferred Stock	(1,969)					(1,969)
Balance at End of Period at Jun. 30, 2022	1,348,746	$ 180,000	$ 582	611,694	(368,448)	2,002,005	(1,077,087)
Ending Balance (in shares) at Jun. 30, 2022		180,000	40,182,659
Balance at Beginning of Period at Dec. 31, 2022	1,316,995	$ 180,000	$ 582	620,578	(434,658)	2,055,912	(1,105,419)
Beginning Balance (in shares) at Dec. 31, 2022		180,000	39,835,750
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	46,842					46,842
Other Comprehensive Income (Loss)	29,360				29,360
Share-Based Compensation	3,371			3,371
Common Stock Issued under Purchase and Equity Compensation Plans	1,568		$ 1	177		1,587	(197)
Common Stock Issued under Purchase and Equity Compensation Plans (in shares)			13,164
Common Stock Repurchased	(13,793)						(13,793)
Common Stock Repurchased (in shares)			(202,408)
Cash Dividends Declared Common Stock (per share)	(27,944)					(27,944)
Cash Dividends Declared Preferred Stock	(1,969)					(1,969)
Balance at End of Period at Mar. 31, 2023	1,354,430	$ 180,000	$ 583	624,126	(405,298)	2,074,428	(1,119,409)
Ending Balance (in shares) at Mar. 31, 2023		180,000	39,646,506
Balance at Beginning of Period at Dec. 31, 2022	1,316,995	$ 180,000	$ 582	620,578	(434,658)	2,055,912	(1,105,419)
Beginning Balance (in shares) at Dec. 31, 2022		180,000	39,835,750
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	92,903
Other Comprehensive Income (Loss)	11,227				11,227
Balance at End of Period at Jun. 30, 2023	1,358,279	$ 180,000	$ 583	628,202	(423,431)	2,091,289	(1,118,364)
Ending Balance (in shares) at Jun. 30, 2023		180,000	39,725,348
Balance at Beginning of Period at Mar. 31, 2023	1,354,430	$ 180,000	$ 583	624,126	(405,298)	2,074,428	(1,119,409)
Beginning Balance (in shares) at Mar. 31, 2023		180,000	39,646,506
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	46,061					46,061
Other Comprehensive Income (Loss)	(18,133)				(18,133)
Share-Based Compensation	4,301			4,301
Common Stock Issued under Purchase and Equity Compensation Plans	1,657			(225)		699	1,183
Common Stock Issued under Purchase and Equity Compensation Plans (in shares)			81,601
Common Stock Repurchased	(138)						(138)
Common Stock Repurchased (in shares)			(2,759)
Cash Dividends Declared Common Stock (per share)	(27,930)					(27,930)
Cash Dividends Declared Preferred Stock	(1,969)					(1,969)
Balance at End of Period at Jun. 30, 2023	$ 1,358,279	$ 180,000	$ 583	$ 628,202	$ (423,431)	$ 2,091,289	$ (1,118,364)
Ending Balance (in shares) at Jun. 30, 2023		180,000	39,725,348

XML

Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Stockholders' Equity [Abstract]
Dividends Declared Per Common Share	$ 0.7	$ 0.7	$ 0.7	$ 0.7	$ 1.4	$ 1.4

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating Activities
Net Income	$ 92,903	$ 111,696
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Provision for Credit Losses	4,500	(8,000)
Depreciation and Amortization	11,525	10,607
Amortization of Deferred Loan and Lease Costs (Fees), Net	444	(561)
Amortization and Accretion of Premiums/Discounts on Investment Securities, Net	6,742	12,453
Amortization of Operating Lease Right-of-Use Assets	5,808	5,798
Share-Based Compensation	7,672	8,172
Benefit Plan Contributions	(949)	(825)
Deferred Income Taxes	(734)	839
Net Gains on Sales of Loans and Leases	(1,275)	(2,463)
Net Losses on Sales of Investment Securities	3,102	2,840
Proceeds from Sales of Loans Held for Sale	19,107	102,806
Originations of Loans Held for Sale	(21,853)	(79,660)
Net Tax (Deficiency) Benefits from Share-Based Compensation	(490)	163
Net Change in Other Assets and Other Liabilities	(145,871)	(5,516)
Net Cash (Used in) Provided by Operating Activities	(19,369)	158,349
Investment Securities Available-for-Sale:
Proceeds from Prepayments and Maturities	174,574	456,420
Purchases	(246)	(556,154)
Investment Securities Held-to-Maturity:
Proceeds from Prepayments and Maturities	220,415	381,387
Purchases		(15,240)
Net Change in Loans and Leases	(270,751)	(692,179)
Purchases of Premises and Equipment	(5,046)	(13,277)
Net Cash Provided by (Used in) Investing Activities	118,946	(439,043)
Financing Activities
Net Change in Deposits	(107,081)	665,573
Net Change in Short-Term Borrowings		(25,000)
Proceeds from Long-Term Debt	1,350,000
Repayments of Long-Term Debt	(51)	(48)
Proceeds from Issuance of Common Stock	2,973	3,826
Repurchase of Common Stock	(13,931)	(24,313)
Cash Dividends Paid on Common Stock	(55,874)	(56,474)
Cash Dividends Paid on Preferred Stock	(3,938)	(3,938)
Net Cash Provided by Financing Activities	1,172,098	559,626
Net Change in Cash and Cash Equivalents	1,271,675	278,932
Cash and Cash Equivalents at Beginning of Period	401,767	560,434
Cash and Cash Equivalents at End of Period	1,673,442	839,366
Supplemental Information
Cash Paid for Interest	110,741	11,924
Cash Paid for Income Taxes	30,623	24,946
Non-Cash Investing and Financing Activities:
Transfer from Loans to Loans Held for Sale		$ 380
Transfer from Loans Held for Sale to Loans	$ 569

XML

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 46,061	$ 46,842	$ 56,862	$ 54,834	$ 92,903	$ 111,696

XML

Insider Trading Arrangements

6 Months Ended

Jun. 30, 2023

shares

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

On May 8, 2023, Peter S. Ho, Chairman, CEO and President of the Company, terminated his Rule 10b5-1 trading arrangement that he previously adopted on October 26, 2022, for the sale of up to 25,000 shares of the Company’s common stock between the periods of February 10, 2023 and November 30, 2023 pursuant to pre-established trading formulas. Both the entry into and the termination of Mr. Ho’s Rule 10b5-1 trading arrangement were effected within the Company’s open trading window periods and were done in compliance with the Company’s insider trading policy.

Name

Peter S. Ho

Title

Chairman, CEO and President

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

May 8, 2023

Aggregate Available

25,000

XML

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1. Summary of Significant Accounting Policies

Basis of Presentation

Bank of Hawaii Corporation (the “Parent”) is a Delaware corporation and a bank holding company headquartered in Honolulu, Hawaii. Bank of Hawai‘i Corporation is a trade name of Bank of Hawaii Corporation, and along with its subsidiaries (collectively, the “Company”), provides a broad range of financial products and services to businesses, consumers and governments in Hawaii and the West Pacific. The majority of the Company’s operations consist of customary commercial and consumer banking services including, but not limited to, lending, leasing, deposit services, trust and investment activities, brokerage services, and trade financing. The accompanying consolidated financial statements include the accounts of the Parent and its subsidiaries. The Parent’s principal operating subsidiary is Bank of Hawaii (the “Bank”), doing business as Bank of Hawai‘i.

The consolidated financial statements in this report have not been audited by an independent registered public accounting firm, but, in the opinion of management, reflect all adjustments necessary for a fair presentation of the results for the interim periods. All such adjustments are of a normal recurring nature. Intercompany accounts and transactions have been eliminated in consolidation. Certain prior period information has been reclassified to conform to the current period presentation. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for the full fiscal year or any future period.

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements and should be read in conjunction with the 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. Significant changes to accounting policies from those disclosed in our audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K are presented below.

In January 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a prospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications made on January 1, 2023 and forward to borrowers experiencing financial difficulty. Instead, these modifications are included in their respective cohort and a historical loss rate is applied to the current loan balance to arrive at the quantitative baseline portion of the Allowance for Credit Losses.

Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral.

Accounting Standard Pending Adoption

In March 2023, the FASB issued ASU 2023-02, “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” ASU 2023-02 permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. ASU 2023-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. ASU 2023-02 is not expected to have a material impact on the Company’s consolidated financial statements.

XML

Cash and Cash Equivalents

6 Months Ended

Jun. 30, 2023

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents

Note 2. Cash and Cash Equivalents

The following table provides a reconciliation of cash and cash equivalents reported within the consolidated statement of condition:

(dollars in thousands)	June 30, 2023
Interest-Bearing Deposits in Other Banks	$	2,261
Funds Sold		1,273,109
Cash and Due From Banks		398,072
Total Cash and Cash Equivalents	$	1,673,442

XML

Investment Securities

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Note 3. Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities as of June 30, 2023, and December 31, 2022, were as follows:

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2023
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	235,178	$	472	$	(14,569	)	$	221,081
Debt Securities Issued by States and Political Subdivisions		107,621		142		(11,223	)		96,540
Debt Securities Issued by U.S. Government-Sponsored Enterprises		1,757		—		(120	)		1,637
Debt Securities Issued by Corporations		844,587		552		(56,385	)		788,754
Mortgage-Backed Securities:
Residential - Government Agencies		771,006		174		(95,976	)		675,204
Residential - U.S. Government-Sponsored Enterprises		869,381		—		(124,667	)		744,714
Commercial - Government Agencies or Sponsored Agencies		163,474		—		(24,681	)		138,793
Total Mortgage-Backed Securities		1,803,861		174		(245,324	)		1,558,711
Total	$	2,993,004	$	1,340	$	(327,621	)	$	2,666,723
Held-to-Maturity:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	131,678	$	—	$	(17,666	)	$	114,012
Debt Securities Issued by Corporations		12,094		—		(2,174	)		9,920
Mortgage-Backed Securities:
Residential - Government Agencies		1,761,490		11		(290,874	)		1,470,627
Residential - U.S. Government-Sponsored Enterprises		2,856,709		7		(387,659	)		2,469,057
Commercial - Government Agencies or Sponsored Agencies		440,727		—		(93,340	)		347,387
Total Mortgage-Backed Securities		5,058,926		18		(771,873	)		4,287,071
Total	$	5,202,698	$	18	$	(791,713	)	$	4,411,003
December 31, 2022
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	248,335	$	638	$	(15,067	)	$	233,906
Debt Securities Issued by States and Political Subdivisions		107,689		158		(12,582	)		95,265
Debt Securities Issued by U.S. Government-Sponsored Enterprises		48,807		—		(179	)		48,628
Debt Securities Issued by Corporations		850,585		809		(56,736	)		794,658
Mortgage-Backed Securities:
Residential - Government Agencies		828,798		245		(96,215	)		732,828
Residential - U.S. Government-Sponsored Enterprises		919,980		1		(126,110	)		793,871
Commercial - Government Agencies or Sponsored Agencies		168,242		—		(22,575	)		145,667
Total Mortgage-Backed Securities		1,917,020		246		(244,900	)		1,672,366
Total	$	3,172,436	$	1,851	$	(329,464	)	$	2,844,823
Held-to-Maturity:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	131,619	$	—	$	(18,202	)	$	113,417
Debt Securities Issued by Corporations		17,014		—		(2,534	)		14,480
Mortgage-Backed Securities:
Residential - Government Agencies		1,848,239		35		(294,047	)		1,554,227
Residential - U.S. Government-Sponsored Enterprises		2,968,322		8		(397,055	)		2,571,275
Commercial - Government Agencies or Sponsored Agencies		448,945		—		(86,951	)		361,994
Total Mortgage-Backed Securities		5,265,506		43		(778,053	)		4,487,496
Total	$	5,414,139	$	43	$	(798,789	)	$	4,615,393

The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities disclosed throughout this footnote. For available-for-sale (“AFS”) debt securities, AIR totaled $11.4 million and $11.7 million as of June 30, 2023, and December 31, 2022, respectively. For held-to-maturity (“HTM”) debt securities, AIR totaled $10.1 million and $9.2 million as of June 30, 2023, and December 31, 2022, respectively. AIR is included in the Accrued Interest Receivable line item on the Company’s consolidated statements of condition.

The table below presents an analysis of the contractual maturities of the Company’s investment securities as of June 30, 2023. Debt securities issued by government agencies (Small Business Administration securities) and mortgage-backed securities are disclosed separately in the table below as these investment securities may prepay prior to their scheduled contractual maturity dates.

(dollars in thousands)	Amortized Cost		Fair Value
Available-for-Sale:
Due in One Year or Less	$	9,012	$	8,980
Due After One Year Through Five Years		443,955		419,503
Due After Five Years Through Ten Years		651,597		595,753
Due After Ten Years		6,380		5,172
		1,110,944		1,029,408
Debt Securities Issued by Government Agencies		78,199		78,604
Mortgage-Backed Securities:
Residential - Government Agencies		771,006		675,204
Residential - U.S. Government-Sponsored Enterprises		869,381		744,714
Commercial - Government Agencies or Sponsored Agencies		163,474		138,793
Total Mortgage-Backed Securities		1,803,861		1,558,711
Total	$	2,993,004	$	2,666,723
Held-to-Maturity:
Due After One Year Through Five Years		83,436		73,401
Due After Five Year Through Ten Years		49,448		41,783
Due After Ten Years		10,888		8,748
		143,772		123,932
Mortgage-Backed Securities:
Residential - Government Agencies		1,761,490		1,470,627
Residential - U.S. Government-Sponsored Enterprises		2,856,709		2,469,057
Commercial - Government Agencies or Sponsored Agencies		440,727		347,387
Total Mortgage-Backed Securities		5,058,926		4,287,071
Total	$	5,202,698	$	4,411,003

Investment securities with carrying values of $7.7 billion and $4.1 billion as of June 30, 2023, and December 31, 2022, respectively, were pledged to secure deposits of governmental entities, securities sold under agreements to repurchase, and FRB discount window borrowing.

The table below presents the losses from the sales of investment securities for the three and six months ended June 30, 2023, and June 30, 2022:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2023			2022			2023			2022
Total Losses on Sales of Investment Securities	$	(1,310	)	$	(1,295	)	$	(3,102	)	$	(2,840	)

The losses on sales of investment securities during the three and six months ended June 30, 2023, and June 30, 2022, were due to fees paid to the counterparties of the Company’s prior Visa Class B share sale transactions, which are expensed as incurred. These losses were not the result of the Company selling its investment securities.

The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses was not deemed necessary, aggregated by major security type and length of time in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or Longer					Total
(dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
June 30, 2023
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury    and Government Agencies	$	13,669	$	(54	)	$	145,838	$	(14,515	)	$	159,507	$	(14,569	)
Debt Securities Issued by States    and Political Subdivisions		25,209		(126	)		62,113		(11,097	)		87,322		(11,223	)
Debt Securities Issued by U.S. Government-    Sponsored Enterprises		—		—			1,636		(120	)		1,636		(120	)
Debt Securities Issued by Corporations		376,871		(2,133	)		368,538		(54,252	)		745,409		(56,385	)
Mortgage-Backed Securities:
Residential - Government Agencies		53,525		(1,939	)		617,092		(94,037	)		670,617		(95,976	)
Residential - U.S. Government-Sponsored Enterprises		10,064		(468	)		734,650		(124,199	)		744,714		(124,667	)
Commercial - Government Agencies or Sponsored Agencies		734		(33	)		138,059		(24,648	)		138,793		(24,681	)
Total Mortgage-Backed Securities		64,323		(2,440	)		1,489,801		(242,884	)		1,554,124		(245,324	)
Total	$	480,072	$	(4,753	)	$	2,067,926	$	(322,868	)	$	2,547,998	$	(327,621	)
December 31, 2022
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury    and Government Agencies	$	28,574	$	(1,118	)	$	127,841	$	(13,949	)	$	156,415	$	(15,067	)
Debt Securities Issued by States    and Political Subdivisions		11,341		(1,240	)		49,985		(11,342	)		61,326		(12,582	)
Debt Securities Issued by U.S. Government-    Sponsored Enterprises		47,825		(108	)		803		(71	)		48,628		(179	)
Debt Securities Issued by Corporations		438,225		(7,995	)		284,350		(48,741	)		722,575		(56,736	)
Mortgage-Backed Securities:
Residential - Government Agencies		386,809		(30,492	)		340,824		(65,723	)		727,633		(96,215	)
Residential - U.S. Government-Sponsored Enterprises		194,684		(22,294	)		598,986		(103,816	)		793,670		(126,110	)
Commercial - Government Agencies or Sponsored Agencies		98,694		(13,247	)		46,973		(9,328	)		145,667		(22,575	)
Total Mortgage-Backed Securities		680,187		(66,033	)		986,783		(178,867	)		1,666,970		(244,900	)
Total	$	1,206,152	$	(76,494	)	$	1,449,762	$	(252,970	)	$	2,655,914	$	(329,464	)

The Company does not believe that the AFS debt securities that were in an unrealized loss position as of June 30, 2023, which were comprised of 405 individual securities, represent a credit loss impairment. As of June 30, 2023, and December 31, 2022, the gross unrealized loss positions were primarily related to mortgage-backed securities issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. Total gross unrealized losses 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. The Company does not intend to sell the investment securities that were in an unrealized loss position and it is not more likely than not that the Company will be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity.

Substantially all of the Company’s HTM debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. Therefore, an allowance for credit losses for these securities was not deemed necessary as of June 30, 2023.

Interest income from taxable and non-taxable investment securities for the three and six months ended June 30, 2023, and June 30, 2022, were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2023		2022		2023		2022
Taxable	$	46,593	$	36,809	$	94,350	$	72,599
Non-Taxable		83		12		167		23
Total Interest Income from Investment Securities	$	46,676	$	36,821	$	94,517	$	72,622

As of June 30, 2023, and December 31, 2022, the carrying value of the Company’s Federal Home Loan Bank of Des Moines stock and Federal Reserve Bank stock was as follows:

(dollars in thousands)	June 30, 2023		December 31, 2022
Federal Home Loan Bank of Des Moines Stock	$	80,000	$	26,000
Federal Reserve Bank Stock		27,277		27,065
Total	$	107,277	$	53,065

These securities can only be redeemed or sold at their par value and only to the respective issuing institution or to another member institution. The Company records these non-marketable equity securities as a component of other assets and periodically evaluates these securities for impairment. Management considers these non-marketable equity securities to be long-term investments. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value.

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Loans and Leases and the Allowance for Credit Losses

6 Months Ended

Jun. 30, 2023

Loans And Leases And Allowance For Loan And Lease Losses [Abstract]

Loans and Leases and the Allowance for Credit Losses

Note 4. Loans and Leases and the Allowance for Credit Losses

Loans and Leases

The Company’s loan and lease portfolio was comprised of the following as of June 30, 2023, and December 31, 2022:

(dollars in thousands)	June 30, 2023		December 31, 2022
Commercial
Commercial and Industrial	$	1,502,676	$	1,389,066
Paycheck Protection Program		13,789		19,579
Commercial Mortgage		3,796,769		3,725,542
Construction		236,428		260,825
Lease Financing		62,779		69,491
Total Commercial		5,612,441		5,464,503
Consumer
Residential Mortgage		4,721,976		4,653,072
Home Equity		2,278,105		2,225,950
Automobile		878,767		870,396
Other 2		423,600		432,499
Total Consumer		8,302,448		8,181,917
Total Loans and Leases	$	13,914,889	$	13,646,420

1.Comprised of other revolving credit, installment, and lease financing.

Most of the Company’s lending activity is with customers located in the State of Hawaii. A substantial portion of the Company’s real estate loans are secured by real estate located in the State of Hawaii.

Net loss related to sales of residential mortgage loans, recorded as a component of mortgage banking income was $0.2 million for the three months ended June 30, 2023, and net gains related to sales of residential mortgage loans, recorded as a component of mortgage banking income was $0.2 million for the three months ended June 30, 2022, $0.3 million and $0.2 million for the six months ended June 30, 2023, and June 30, 2022, respectively.

The Company elected to exclude AIR from the amortized cost basis of loans disclosed throughout this footnote. As of June 30, 2023, and December 31, 2022, AIR for loans totaled $42.9 million and $40.1 million, respectively, and is included in the “accrued interest receivable” line item on the Company’s consolidated statements of condition.

Allowance for Credit Losses (the “Allowance”)

The following presents by portfolio segment, the activity in the Allowance for the three and six months ended June 30, 2023, and June 30, 2022.

(dollars in thousands)	Commercial			Consumer			Total
Three Months Ended June 30, 2023
Allowance for Credit Losses:
Balance at Beginning of Period	$	58,771		$	84,806		$	143,577
Loans and Leases Charged-Off		(203	)		(3,308	)		(3,511	)
Recoveries on Loans and Leases Previously Charged-Off		103			2,031			2,134
Net Loans and Leases Recovered (Charged-Off)		(100	)		(1,277	)		(1,377	)
Provision for Credit Losses		5,270			(2,103	)		3,167
Balance at End of Period	$	63,941		$	81,426		$	145,367
Six Months Ended June 30, 2023
Allowance for Credit Losses:
Balance at Beginning of Period	$	63,900		$	80,539		$	144,439
Loans and Leases Charged-Off		(464	)		(7,356	)		(7,820	)
Recoveries on Loans and Leases Previously Charged-Off		153			3,622			3,775
Net Loans and Leases Recovered (Charged-Off)		(311	)		(3,734	)		(4,045	)
Provision for Credit Losses		352			4,621			4,973
Balance at End of Period	$	63,941		$	81,426		$	145,367
Three Months Ended June 30, 2022
Allowance for Credit Losses:
Balance at Beginning of Period	$	62,093		$	89,935		$	152,028
Loans and Leases Charged-Off		(233	)		(3,113	)		(3,346	)
Recoveries on Loans and Leases Previously Charged-Off		51			2,664			2,715
Net Loans and Leases Recovered (Charged-Off)		(182	)		(449	)		(631	)
Provision for Credit Losses		(85	)		(2,800	)		(2,885	)
Balance at End of Period	$	61,826		$	86,686		$	148,512
Six Months Ended June 30, 2022
Allowance for Credit Losses:
Balance at Beginning of Period	$	64,950		$	92,871		$	157,821
Loans and Leases Charged-Off		(582	)		(6,672	)		(7,254	)
Recoveries on Loans and Leases Previously Charged-Off		420			4,717			5,137
Net Loans and Leases Recovered (Charged-Off)		(162	)		(1,955	)		(2,117	)
Provision for Credit Losses		(2,962	)		(4,230	)		(7,192	)
Balance at End of Period	$	61,826		$	86,686		$	148,512

Credit Quality Indicators

The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company uses an internal credit risk rating system that categorizes loans and leases into pass, special mention, or classified categories. Credit risk ratings are applied individually to those classes of loans and leases that have significant or unique credit characteristics that benefit from a case-by-case evaluation. These are typically loans and leases to businesses or individuals in the classes which comprise the commercial portfolio segment. Groups of loans and leases that are underwritten and structured using standardized criteria and characteristics are typically monitored and risk-rated collectively. These are typically loans and leases to individuals in the classes which comprise the consumer portfolio segment.

The following are the definitions of the Company’s credit quality indicators:

Pass:	Loans and leases in all classes within the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan or lease agreement. Residential mortgage loans that are past due 90 days or more as to principal or interest may be considered Pass if the current loan-to-value ratio is 60% or less. Home equity loans that are past due 90 days or more as to principal or interest may be considered Pass if: a) the home equity loan is in a first lien position and the current loan-to-value ratio is 60% or less; or b) the first mortgage is with the Company and the current combined loan-to-value ratio is 60% or less.
Special Mention:	Loans and leases in all classes within the commercial portfolio segment that have potential weaknesses that deserve management’s close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease. The Special Mention credit quality indicator is not used for the consumer portfolio segment.
Classified:	Loans and leases in the classes within the commercial portfolio segment that are inadequately protected by the sound worth and paying capacity of the borrower or of the collateral pledged, if any. Classified loans and leases are also those in the classes within the consumer portfolio segment that are past due 90 days or more as to principal or interest. Residential mortgage and home equity loans may be current as to principal and interest, but may be considered Classified for a period of generally up to six months following a loan modification. Following a period of demonstrated performance in accordance with the modified contractual terms, the loan may be removed from Classified status.

For Pass rated credits, risk ratings are certified at a minimum annually. For Special Mention or Classified credits, risk ratings are reviewed for appropriateness on an ongoing basis, monthly, or at a minimum, quarterly. The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of June 30, 2023.

		Term Loans by Origination Year
(dollars in thousands)	2023 2			2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
June 30, 2023
Commercial
Commercial and Industrial
Pass		$	289,456	$	295,319	$	250,845	$	159,176	$	44,914	$	86,713	$	330,831	$	205	$	1,457,459
Special Mention			551		11,617		2,354		49		-		-		1,763		-		16,334
Classified			83		2,532		5,847		6,731		11		8,486		5,176		17		28,883
Total Commercial and Industrial		$	290,090	$	309,468	$	259,046	$	165,956	$	44,925	$	95,199	$	337,770	$	222	$	1,502,676
Paycheck Protection Program
Pass		$	-	$	-	$	2,692	$	11,097	$	-	$	-	$	-	$	-	$	13,789
Total Paycheck Protection Program		$	-	$	-	$	2,692	$	11,097	$	-	$	-	$	-	$	-	$	13,789
Commercial Mortgage
Pass		$	675,565	$	997,296	$	725,699	$	460,847	$	250,447	$	491,306	$	42,928	$	-	$	3,644,088
Special Mention			30,482		61,921		6,249		-		-		19,399		-		-		118,051
Classified			3,220		4,313		6,351		13,593		234		6,919		-		-		34,630
Total Commercial Mortgage		$	709,267	$	1,063,530	$	738,299	$	474,440	$	250,681	$	517,624	$	42,928	$	-	$	3,796,769
Construction
Pass		$	19,496	$	125,499	$	71,654	$	2,859	$	16,184	$	296	$	440	$	-	$	236,428
Total Construction		$	19,496	$	125,499	$	71,654	$	2,859	$	16,184	$	296	$	440	$	-	$	236,428
Lease Financing
Pass		$	4,938	$	14,413	$	15,495	$	9,838	$	7,523	$	9,756	$	-	$	-	$	61,963
Classified			-		57		130		107		-		522		-		-		816
Total Lease Financing		$	4,938	$	14,470	$	15,625	$	9,945	$	7,523	$	10,278	$	-	$	-	$	62,779
Total Commercial		$	1,023,791	$	1,512,967	$	1,087,316	$	664,297	$	319,313	$	623,397	$	381,138	$	222	$	5,612,441
Consumer
Residential Mortgage
Pass		$	213,211	$	811,601	$	1,272,073	$	1,003,636	$	311,321	$	1,108,419	$	-	$	-	$	4,720,261
Classified			-		-		-		-		-		1,715		-		-		1,715
Total Residential Mortgage		$	213,211	$	811,601	$	1,272,073	$	1,003,636	$	311,321	$	1,110,134	$	-	$	-	$	4,721,976
Home Equity
Pass		$	-	$	-	$	-	$	-	$	-	$	45	$	2,235,915	$	39,738	$	2,275,698
Classified			-		-		-		-		-		-		1,168		1,239		2,407
Total Home Equity		$	-	$	-	$	-	$	-	$	-	$	45	$	2,237,083	$	40,977	$	2,278,105
Automobile
Pass		$	158,785	$	351,850	$	180,380	$	82,119	$	64,406	$	40,650	$	-	$	-	$	878,190
Classified			-		94		93		114		199		77		-		-		577
Total Automobile		$	158,785	$	351,944	$	180,473	$	82,233	$	64,605	$	40,727	$	-	$	-	$	878,767
Other1
Pass		$	68,369	$	160,685	$	108,394	$	20,822	$	25,708	$	38,104	$	884	$	-	$	422,966
Classified			-		153		154		13		146		168		-		-		634
Total Other		$	68,369	$	160,838	$	108,548	$	20,835	$	25,854	$	38,272	$	884	$	-	$	423,600
Total Consumer		$	440,365	$	1,324,383	$	1,561,094	$	1,106,704	$	401,780	$	1,189,178	$	2,237,967	$	40,977	$	8,302,448
Total Loans and Leases		$	1,464,156	$	2,837,350	$	2,648,410	$	1,771,001	$	721,093	$	1,812,575	$	2,619,105	$	41,199	$	13,914,889

1.Comprised of other revolving credit, installment, and lease financing.

2.Loans reported as Special Mention or Classified in the 2023 column represent renewal of loans that originated in an earlier period.

For the six months ended June 30, 2023, $5.3 million of revolving loans were converted to term loans.

The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of December 31, 2022.

		Term Loans by Origination Year
(dollars in thousands)	2022			2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
December 31, 2022
Commercial
Commercial and Industrial
Pass		$	360,748	$	348,300	$	224,264	$	59,127	$	46,799	$	71,906	$	257,349	$	155	$	1,368,648
Special Mention			273		-		-		-		96		92		1,357		-		1,818
Classified			7,295		91		1,030		-		1,644		6,267		2,252		21		18,600
Total Commercial and Industrial		$	368,316	$	348,391	$	225,294	$	59,127	$	48,539	$	78,265	$	260,958	$	176	$	1,389,066
Paycheck Protection Program
Pass		$	-	$	5,359	$	14,220	$	-	$	-	$	-	$	-	$	-	$	19,579
Total Paycheck Protection Program		$	-	$	5,359	$	14,220	$	-	$	-	$	-	$	-	$	-	$	19,579
Commercial Mortgage
Pass		$	1,182,831	$	771,375	$	691,054	$	283,553	$	131,055	$	494,924	$	48,771	$	-	$	3,603,563
Special Mention			29,707		37,657		28,105		-		1,482		5,014		-		-		101,965
Classified			182		1,964		8,545		624		-		8,699		-		-		20,014
Total Commercial Mortgage		$	1,212,720	$	810,996	$	727,704	$	284,177	$	132,537	$	508,637	$	48,771	$	-	$	3,725,542
Construction
Pass		$	124,507	$	69,992	$	37,133	$	16,838	$	-	$	297	$	12,058	$	-	$	260,825
Total Construction		$	124,507	$	69,992	$	37,133	$	16,838	$	-	$	297	$	12,058	$	-	$	260,825
Lease Financing
Pass		$	16,959	$	17,823	$	11,408	$	9,768	$	6,379	$	6,444	$	-	$	-	$	68,781
Classified			-		-		-		-		710		-		-		-		710
Total Lease Financing		$	16,959	$	17,823	$	11,408	$	9,768	$	7,089	$	6,444	$	-	$	-	$	69,491
Total Commercial		$	1,722,502	$	1,252,561	$	1,015,759	$	369,910	$	188,165	$	593,643	$	321,787	$	176	$	5,464,503
Consumer
Residential Mortgage
Pass		$	827,909	$	1,304,831	$	1,035,285	$	321,208	$	138,214	$	1,023,841	$	-	$	-	$	4,651,288
Classified			-		-		-		-		552		1,232		-		-		1,784
Total Residential Mortgage		$	827,909	$	1,304,831	$	1,035,285	$	321,208	$	138,766	$	1,025,073	$	-	$	-	$	4,653,072
Home Equity
Pass		$	-	$	-	$	-	$	-	$	-	$	890	$	2,186,598	$	36,114	$	2,223,602
Classified			-		-		-		-		-		25		1,105		1,218		2,348
Total Home Equity		$	-	$	-	$	-	$	-	$	-	$	915	$	2,187,703	$	37,332	$	2,225,950
Automobile
Pass		$	405,440	$	216,039	$	100,608	$	84,052	$	45,301	$	18,366	$	-	$	-	$	869,806
Classified			121		260		23		43		92		51		-		-		590
Total Automobile		$	405,561	$	216,299	$	100,631	$	84,095	$	45,393	$	18,417	$	-	$	-	$	870,396
Other1
Pass		$	185,347	$	124,759	$	31,343	$	39,902	$	16,364	$	9,853	$	23,228	$	1,020	$	431,816
Classified			117		114		70		148		129		24		59		22		683
Total Other		$	185,464	$	124,873	$	31,413	$	40,050	$	16,493	$	9,877	$	23,287	$	1,042	$	432,499
Total Consumer		$	1,418,934	$	1,646,003	$	1,167,329	$	445,353	$	200,652	$	1,054,282	$	2,210,990	$	38,374	$	8,181,917
Total Loans and Leases		$	3,141,436	$	2,898,564	$	2,183,088	$	815,263	$	388,817	$	1,647,925	$	2,532,777	$	38,550	$	13,646,420

1.Comprised of other revolving credit, installment, and lease financing.

For the year ended December 31, 2022, $6.2 million of revolving loans were converted to term loans.

Aging Analysis

Loans and leases are considered to be past due once becoming 30 days delinquent. For the consumer portfolio, this generally represents two missed monthly payments. The following presents by class, an aging analysis of the Company’s loan and lease portfolio as of June 30, 2023, and December 31, 2022.

(dollars in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Past Due 90 Days or More		Non- Accrual		Total Past Due and Non- Accrual		Current		Total Loans and Leases		Non- Accrual Loans and Leases that are Current 2
As of June 30, 2023
Commercial
Commercial and Industrial	$	202	$	252	$	—	$	17	$	471	$	1,502,205	$	1,502,676	$	17
Paycheck Protection Program		—		—		—		—		—		13,789		13,789		—
Commercial Mortgage		—		—		—		3,107		3,107		3,793,662		3,796,769		3,107
Construction		—		—		—		—		—		236,428		236,428		—
Lease Financing		—		—		—		—		—		62,779		62,779		—
Total Commercial		202		252		—		3,124		3,578		5,608,863		5,612,441		3,124
Consumer
Residential Mortgage		2,173		1,882		3,560		3,504		11,119		4,710,857		4,721,976		884
Home Equity		2,464		1,826		2,022		3,809		10,121		2,267,984		2,278,105		751
Automobile		10,830		1,668		577		—		13,075		865,692		878,767		—
Other 1		2,169		748		633		—		3,550		420,050		423,600		—
Total Consumer		17,636		6,124		6,792		7,313		37,865		8,264,583		8,302,448		1,635
Total	$	17,838	$	6,376	$	6,792	$	10,437	$	41,443	$	13,873,446	$	13,914,889	$	4,759
As of December 31, 2022
Commercial
Commercial and Industrial	$	252	$	9	$	—	$	37	$	298	$	1,388,768	$	1,389,066	$	37
Paycheck Protection Program		—		—		—		—		—		19,579		19,579		—
Commercial Mortgage		—		—		—		3,309		3,309		3,722,233		3,725,542		3,309
Construction		—		—		—		—		—		260,825		260,825		—
Lease Financing		—		—		—		—		—		69,491		69,491		—
Total Commercial		252		9		—		3,346		3,607		5,460,896		5,464,503		3,346
Consumer
Residential Mortgage		3,016		721		2,429		4,239		10,405		4,642,667		4,653,072		1,729
Home Equity		1,639		960		1,673		4,022		8,294		2,217,656		2,225,950		664
Automobile		13,293		1,988		589		—		15,870		854,526		870,396		—
Other 1		2,318		1,302		683		—		4,303		428,196		432,499		—
Total Consumer		20,266		4,971		5,374		8,261		38,872		8,143,045		8,181,917		2,393
Total	$	20,518	$	4,980	$	5,374	$	11,607	$	42,479	$	13,603,941	$	13,646,420	$	5,739

1.Comprised of other revolving credit, installment, and lease financing.

2.Represents non-accrual loans that are not past due 30 days or more; however, full payment of principal and interest is still not expected.

Non-Accrual Loans and Leases

The following presents the non-accrual loans and leases as of June 30, 2023, and December 31, 2022.

	June 30, 2023						December 31, 2022
(dollars in thousands)	Non-accrual loans with a related ACL		Non-accrual loans without a related ACL		Total Non- accrual loans		Non-accrual loans with a related ACL		Non-accrual loans without a related ACL		Total Non- accrual loans
Commercial
Commercial and Industrial	$	17	$	—	$	17	$	37	$	—	$	37
Commercial Mortgage		—		3,107		3,107		—		3,309		3,309
Total Commercial		17		3,107		3,124		37		3,309		3,346
Consumer
Residential Mortgage		3,504		—		3,504		4,239		—		4,239
Home Equity		3,809		—		3,809		4,022		—		4,022
Total Consumer		7,313		—		7,313		8,261		—		8,261
Total	$	7,330	$	3,107	$	10,437	$	8,298	$	3,309	$	11,607

All payments received while on non-accrual status are applied against the principal balance of the loan or lease. The Company does not recognize interest income while loans or leases are on non-accrual status.

Loan Modifications to Borrowers Experiencing Financial Difficulty

Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. The following illustrates the most common loan modifications by loan classes offered by the Company that are required to be disclosed pursuant to the requirements of ASU 2022-02:

Loan Classes	Modification Types
Commercial:	Term extension, interest rate reductions, payment delay, or combination thereof. These modifications extend the term of the loan, lower the payment amount, or otherwise delay payments during a defined period for the purpose of providing borrowers additional time to return to compliance with the original loan term.
Residential Mortgage/ Home Equity:	Forbearance period greater than six months. These modifications require reduced or no payments during the forbearance period for the purpose of providing borrowers additional time to return to compliance with the original loan term.
Residential Mortgage/ Home Equity:	Term extension and rate adjustment. These modifications extend the term of the loan and provides for an adjustment to the interest rate, which reduces the monthly payment requirement.
Automobile/ Direct Installment:	Term extension greater than three months. These modifications extend the term of the loan, which reduces the monthly payment requirement.

The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during three and six months ended June 30, 2023.

									%
					Payment				of
					Delay				Total
			Interest		and				Class of
	Term		Rate		Term				Loans and
(dollars in thousands)	Extension		Reduction		Extension		Total		Leases
Three Months Ended June 30, 2023
Commercial
Commercial and Industrial	$	91	$	—	$	—	$	91		0.01	%
Commercial Mortgage		—		952		—		952		0.03	%
Total Commercial		91		952		—		1,043		0.02	%
Consumer
Residential Mortgage		—		—		—		—		0.00	%
Home Equity		—		—		—		—		0.00	%
Automobile		2,654		—		—		2,654		0.30	%
Other1		215		—		—		215		0.05	%
Total Consumer		2,869		—		—		2,869		0.03	%
Total Loans and Leases	$	2,960	$	952	$	—	$	3,912		0.03	%
Six Months Ended June 30, 2023
Commercial
Commercial and Industrial	$	91	$	—	$	6,695	$	6,786		0.45	%
Commercial Mortgage		—		952		—		952		0.03	%
Total Commercial		91		952		6,695		7,738		0.14	%
Consumer
Residential Mortgage		134		—		—		134		0.00	%
Home Equity		139		—		—		139		0.01	%
Automobile		4,411		—		—		4,411		0.50	%
Other1		384		—		—		384		0.09	%
Total Consumer		5,068		—		—		5,068		0.06	%
Total Loans and Leases	$	5,159	$	952	$	6,695	$	12,806		0.09	%

1 Comprised of other revolving credit, installment and lease financing.

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2023.

	Weighted-Average		Weighted-Average		Weighted-Average
	Months of		Payment		Interest Rate
(dollars in thousands)	Term Extension		Deferral		Reduction
Three Months Ended June 30, 2023
Commercial
Commercial Mortgage		—	$	—		2.50	%
Consumer
Automobile		23		—		—
Other1		22		—		—
Six Months Ended June 30, 2023
Commercial
Commercial and Industrial		6	$	1,159		—	%
Commercial Mortgage		—		—		2.50
Consumer
Residential Mortgage		58		—		—
Home Equity		64		—		—
Automobile		23		—		—
Other1		22		—		—

1 Comprised of other revolving credit, installment and lease financing.

The following table presents the loan modifications made to borrowers experiencing financial difficulty that defaulted during the three and six months ended June 30, 2023.

	Term
(dollars in thousands)	Extension		Total
Three Months Ended June 30, 2023
Consumer
Automobile		23		23
Other1		15		15
Total Consumer		38		38
Total Loans and Leases	$	38	$	76
Six Months Ended June 30, 2023
Consumer
Automobile		23		23
Other1		15		15
Total Consumer		38		38
Total Loans and Leases	$	38	$	76

1 Comprised of other revolving credit, installment and lease financing.

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty as of June 30, 2023.

(dollars in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		Past Due 90 Days or More		Non- Accrual		Total
As of June 30, 2023
Commercial
Commercial and Industrial	$	6,786	$	—	$	—	$	—	$	—	$	6,786
Commercial Mortgage		952		—		—		—		—		952
Total Commercial		7,738		—		—		—		—		7,738
Consumer
Residential Mortgage		—		—		—		—		134		134
Home Equity		139		—		—		—		—		139
Automobile		4,061		327		—		23		—		4,411
Other1		333		36		15		—		—		384
Total Consumer		4,533		363		15		23		134		5,068
Total Loans and Leases		12,271	$	363	$	15	$	23	$	134	$	12,806

1 Comprised of other revolving credit, installment and lease financing.

The following table presents by loan class and year of origination, the gross charge-offs recorded during the three and six months ended June 30, 2023.

(dollars in thousands)	2023		2022		2021		2020		2019		Prior		Total
Three Months Ended June 30, 2023
Commercial
Commercial and Industrial	$	185	$	—	$	—	$	—	$	—	$	18	$	203
Total Commercial		185		—		—		—		—		18		203
Consumer
Residential Mortgage		—		—		—		—		—		6		6
Home Equity		—		—		—		—		—		5		5
Automobile		—		558		238		107		173		217		1,293
Other1		358		512		446		82		318		288		2,004
Total Consumer		358		1,070		684		189		491		516		3,308
Total	$	543	$	1,070	$	684	$	189	$	491	$	534	$	3,511
Six Months Ended June 30, 2023
Commercial
Commercial and Industrial	$	185	$	188	$	—	$	—	$	—	$	91	$	464
Total Commercial		185		188		—		—		—		91		464
Consumer
Residential Mortgage		—		—		—		—		—		6		6
Home Equity		—		—		—		—		—		55		55
Automobile		—		872		745		335		364		640		2,956
Other 1		358		1,333		1,011		202		713		722		4,339
Total Consumer		358		2,205		1,756		537		1,077		1,423		7,356
Total	$	543	$	2,393	$	1,756	$	537	$	1,077	$	1,514	$	7,820

1 Comprised of other revolving credit, installment and lease financing.

Foreclosure Proceedings

Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $5.4 million as of June 30, 2023.

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Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2023

Transfers and Servicing of Financial Assets [Abstract]

Mortgage Servicing Rights

Note 5. Mortgage Servicing Rights

The Company’s portfolio of residential mortgage loans serviced for third parties was $2.6 billion as of June 30, 2023, and $2.6 billion as of December 31, 2022. Substantially all of these loans were originated by the Company and sold to third parties on a non-recourse basis with servicing rights retained. These retained servicing rights are recorded as a servicing asset and are initially recorded at fair value (see Note 13 Fair Value of Assets and Liabilities for more information). Changes to the balance of mortgage servicing rights are recorded in mortgage banking income in the Company’s consolidated statements of income.

The Company’s mortgage servicing activities include collecting principal, interest, and escrow payments from borrowers; making tax and insurance payments on behalf of borrowers; monitoring delinquencies and executing foreclosure proceedings; and accounting for and remitting principal and interest payments to investors. Servicing income, including late and ancillary fees, was $1.4 million and $1.5 million for the three months ended June 30, 2023, and June 30, 2022, respectively, and $2.8 million and $3.0 million for the six months ended June 30, 2023, and June 30, 2022, respectively. Servicing income is recorded in mortgage banking income in the Company’s consolidated statements of income. The Company’s residential mortgage investor loan servicing portfolio is primarily comprised of fixed rate loans concentrated in Hawaii.

For the three and six months ended June 30, 2023, and June 30, 2022, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2023			2022			2023			2022
Balance at Beginning of Period	$	707		$	781		$	717		$	800
Change in Fair Value Due to Payoffs		(12	)		(34	)		(22	)		(53	)
Balance at End of Period	$	695		$	747		$	695		$	747

For the three months and six months ended June 30, 2023, and June 30, 2022, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2023			2022			2023			2022
Balance at Beginning of Period	$	21,395		$	23,187		$	21,902		$	21,451
Servicing Rights that Resulted From Asset Transfers		110			205			176			956
Amortization		(574	)		(599	)		(1,147	)		(1,443	)
Valuation Allowance Recovery (Provision)		—			—			—			1,829
Balance at End of Period	$	20,931		$	22,793		$	20,931		$	22,793
Valuation Allowance:
Balance at Beginning of Period	$	—		$	—		$	—		$	(1,829	)
Valuation Allowance Recovery (Provision)		—			—			—			1,829
Balance at End of Period	$	—		$	—		$	—		$	—
Fair Value of Mortgage Servicing Rights Accounted for    Under the Amortization Method
Beginning of Period	$	26,456		$	26,088		$	27,323		$	21,451
End of Period	$	26,327		$	28,314		$	26,327		$	28,314

The key data and assumptions used in estimating the fair value of the Company’s mortgage servicing rights as of June 30, 2023, and December 31, 2022, were as follows:

	June 30, 2023			December 31, 2022
Weighted-Average Constant Prepayment Rate 1		3.93	%		4.02	%
Weighted-Average Life (in years)		9.61			9.64
Weighted-Average Note Rate		3.62	%		3.60	%
Weighted-Average Discount Rate 2		9.71	%		9.93	%

1.Represents annualized loan prepayment rate assumption.

2.Derived from multiple interest rate scenarios that incorporate a spread to a market yield curve and market volatilities.

A sensitivity analysis of the Company’s fair value of mortgage servicing rights to changes in certain key assumptions as of June 30, 2023, and December 31, 2022, is presented in the following table.

(dollars in thousands)	June 30, 2023			December 31, 2022
Constant Prepayment Rate
Decrease in fair value from 25 basis points (“bps”) adverse change	$	(335	)	$	(346	)
Decrease in fair value from 50 bps adverse change		(663	)		(686	)
Discount Rate
Decrease in fair value from 25 bps adverse change		(306	)		(316	)
Decrease in fair value from 50 bps adverse change		(606	)		(626	)

This analysis generally cannot be extrapolated because the relationship of a change in one key assumption to the change in the fair value of the Company’s mortgage servicing rights usually is not linear. Also, the effect of changing one key assumption without changing other assumptions is not realistic.

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Affordable Housing Projects Tax Credit Partnerships

6 Months Ended

Jun. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Affordable Housing Projects Tax Credit Partnerships

Note 6. Affordable Housing Projects Tax Credit Partnerships

The Company makes equity investments in various limited partnerships or limited liability companies that sponsor affordable housing projects utilizing the Low Income Housing Tax Credit (“LIHTC”) pursuant to Section 42 of the Internal Revenue Code. The purpose of these investments is to achieve a satisfactory return on capital, to facilitate the sale of affordable housing product offerings, and to assist in achieving goals associated with the Community Reinvestment Act. The primary activities of these entities include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants. Generally, these types of investments are funded through a combination of debt and equity.

The Company is a limited partner or non-managing member in each LIHTC limited partnership or limited liability company, respectively. Each of these entities is managed by an unrelated third-party general partner or managing member who exercises significant control over the affairs of the entity. The general partner or managing member has all the rights, powers and authority granted or permitted to be granted to a general partner of a limited partnership or managing member of a limited liability company. Duties entrusted to the general partner or managing member include, but are not limited to: investment in operating companies, company expenditures, investment of excess funds, borrowing funds, employment of agents, disposition of fund property, prepayment and refinancing of liabilities, votes and consents, contract authority, disbursement of funds, accounting methods, tax elections, bank accounts, insurance, litigation, cash reserve, and use of working capital reserve funds. Except for limited rights granted to the limited partner(s) or non-managing member(s) relating to the approval of certain transactions, the limited partner(s) and non-managing member(s) may not participate in the operation, management, or control of the entity’s business, transact any business in the entity’s name or have any power to sign documents for or otherwise bind the entity. In addition, the general partner or managing member may only be removed by the limited partner(s) or managing member(s) in the event of a failure to comply with the terms of the agreement or negligence in performing its duties.

The general partner or managing member of each entity has both the power to direct the activities which most significantly affect the performance of each entity and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. Therefore, the Company has determined that it is not the primary beneficiary of any LIHTC entity. The Company uses the effective yield method to account for its pre-2015 investments in these entities. Beginning January 1, 2015, any new investments that meet the requirements of the proportional amortization method are recognized using the proportional amortization method. The Company’s net affordable housing tax credit investments including the related unfunded commitments were $183.2 million and $174.5 million as of June 30, 2023, and December 31, 2022, respectively, and are included in other assets in the consolidated statements of condition.

Unfunded Commitments

As of June 30, 2023, the expected payments for unfunded affordable housing commitments were as follows:

(dollars in thousands)	Amount
2023	$	22,653
2024		24,731
2025		24,115
2026		156
2027		133
Thereafter		12,721
Total Unfunded Commitments	$	84,509

The following table presents tax credits and other tax benefits recognized and amortization expense related to affordable housing for the three and six months ended June 30, 2023, and June 30, 2022.

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2023		2022		2023		2022
Effective Yield Method
Tax Credits and Other Tax Benefits Recognized	$	1,457	$	1,528	$	2,915	$	3,066
Amortization Expense in Provision for Income Taxes		1,333		1,296		2,666		2,593
Proportional Amortization Method
Tax Credits and Other Tax Benefits Recognized	$	5,438	$	3,794	$	10,876	$	7,579
Amortization Expense in Provision for Income Taxes		4,713		3,265		9,426		6,529

There were no impairment losses related to LIHTC investments during the six months ended June 30, 2023, and June 30, 2022.

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Securities Sold Under Agreements to Repurchase

6 Months Ended

Jun. 30, 2023

Securities Sold under Agreements to Repurchase [Abstract]

Securities Sold Under Agreements to Repurchase

Note 7. Securities Sold Under Agreements to Repurchase

The following table presents the remaining contractual maturities of the Company’s repurchase agreements as of June 30, 2023, and December 31, 2022, disaggregated by the class of collateral pledged.

	Remaining Contractual Maturity of Repurchase Agreements
(dollars in thousands)	Up to  90 days		91-365 days		1-3 Years		After 3 Years		Total
June 30, 2023
Class of Collateral Pledged:
Debt Securities Issued by States and Political Subdivisions	$	—	$	—	$	490	$	—	$	490
Mortgage-Backed Securities:
Residential - Government Agencies		—		—		34,014		—		34,014
Residential - U.S. Government-Sponsored Enterprises		—		—		390,986		300,000		690,986
Total	$	—	$	—	$	425,490	$	300,000	$	725,490
December 31, 2022
Class of Collateral Pledged:
Debt Securities Issued by States and Political Subdivisions	$	—	$	—	$	—	$	490	$	490
Mortgage-Backed Securities:
Residential - Government Agencies		—		—		28,673		—		28,673
Residential - U.S. Government-Sponsored Enterprises		—		—		396,327		300,000		696,327
Total	$	—	$	—	$	425,000	$	300,490	$	725,490

The following table presents the assets and liabilities subject to an enforceable master netting arrangement, or repurchase agreements as of June 30, 2023, and December 31, 2022. The swap agreements the Company has with our commercial banking customers are not subject to an enforceable master netting arrangement, and therefore, are excluded from this table. Centrally cleared swap agreements between the Company and institutional counterparties are also excluded from this table. See Note 11 Derivative Financial Instruments for more information on swap agreements.

	(i)		(ii)		(iii) = (i)-(ii)		(iv)				(v) = (iii)-(iv)
							Gross Amounts Not Offset in the Statements of Condition
(dollars in thousands)	Gross Amounts Recognized in the Statements  of Condition		Gross Amounts Offset in the Statements of Condition		Net Amounts Presented in the Statements  of Condition		Netting Adjustments per Master Netting Arrangements		Fair Value of Collateral Pledged/ Received 1		Net Amount
June 30, 2023
Assets:
Interest Rate Swap Agreements:
Institutional Counterparties	$	157,910	$	—	$	157,910	$	157,910	$	—	$	—
Liabilities:
Interest Rate Swap Agreements:
Institutional Counterparties		4,230		—	$	4,230		4,230		—		—
Repurchase Agreements:
Private Institutions		725,000		—		725,000		—		725,000		—
Government Entities		490		—		490		—		490		—
Total Repurchase Agreements	$	725,490	$	—	$	725,490	$	—	$	725,490	$	—
December 31, 2022
Assets:
Interest Rate Swap Agreements:
Institutional Counterparties	$	42,339	$	—	$	42,339	$	42,339	$	—	$	—
Liabilities:
Interest Rate Swap Agreements:
Institutional Counterparties		3,554		—		3,554		3,554		—		—
Repurchase Agreements:
Private Institutions		725,000		—		725,000		—		725,000		—
Government Entities		490		—		490		—		490		—
Total Repurchase Agreements	$	725,490	$	—	$	725,490	$	—	$	725,490	$	—

1.The application of collateral cannot reduce the net amount below zero. Therefore, excess collateral is not reflected in this table. For interest rate swap agreements, the fair value of investment securities pledged was $3.5 million and $34.8 million as of June 30, 2023, and December 31, 2022, respectively. For repurchase agreements with private institutions, the fair value of investment securities pledged was $763.3 million and $755.9 million as of June 30, 2023, and December 31, 2022, respectively. For repurchase agreements with government entities, the fair value of investment securities pledged was $0.8 million as of June 30, 2023, and December 31, 2022.

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2023

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 8. Accumulated Other Comprehensive Income (Loss)

The following table presents the components of other comprehensive income (loss) for the three and six months ended June 30, 2023, and June 30, 2022:

(dollars in thousands)	Before Tax			Tax Effect			Net of Tax
Three Months Ended June 30, 2023
Net Unrealized Gains (Losses) on Investment Securities:
Net Unrealized Gains (Losses) Arising During the Period	$	(31,586	)	$	(8,371	)	$	(23,215	)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)    that (Increase) Decrease Net Income:
Amortization of Unrealized Holding (Gains) Losses on Held-to-    Maturity Securities 1		6,801			1,803			4,998
Net Unrealized Gains (Losses) on Investment Securities		(24,785	)		(6,568	)		(18,217	)
Defined Benefit Plans:
Amortization of Net Actuarial Losses (Gains)		177			46			131
Amortization of Prior Service Credit		(62	)		(15	)		(47	)
Defined Benefit Plans, Net		115			31			84
Other Comprehensive Income (Loss)	$	(24,670	)	$	(6,537	)	$	(18,133	)
Three Months Ended June 30, 2022
Net Unrealized Gains (Losses) on Investment Securities:
Net Unrealized Gains (Losses) Arising During the Period	$	(166,878	)	$	(44,233	)	$	(122,645	)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)    that (Increase) Decrease Net Income:
Amortization of Unrealized Holding (Gains) Losses on Held-to-    Maturity Securities 1		(3	)		(1	)		(2	)
Net Unrealized Gains (Losses) on Investment Securities		(166,881	)		(44,234	)		(122,647	)
Defined Benefit Plans:
Amortization of Net Actuarial Losses (Gains)		542			145			397
Amortization of Prior Service Credit		(61	)		(16	)		(45	)
Defined Benefit Plans, Net		481			129			352
Other Comprehensive Income (Loss)	$	(166,400	)	$	(44,105	)	$	(122,295	)
Six Months Ended June 30, 2023
Net Unrealized Gains (Losses) on Investment Securities:
Net Unrealized Gains (Losses) Arising During the Period	$	1,332		$	352		$	980
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)    that (Increase) Decrease Net Income:
Amortization of Unrealized Holding (Gains) Losses on Held-to-    Maturity Securities 1		13,714			3,635			10,079
Net Unrealized Gains (Losses) on Investment Securities		15,046			3,987			11,059
Defined Benefit Plans:
Amortization of Net Actuarial Losses (Gains)		352			93			259
Amortization of Prior Service Credit		(123	)		(32	)		(91	)
Defined Benefit Plans, Net		229			61			168
Other Comprehensive Income (Loss)	$	15,275		$	4,048		$	11,227
Six Months Ended June 30, 2022
Net Unrealized Gains (Losses) on Investment Securities:
Net Unrealized Gains (Losses) Arising During the Period	$	(412,026	)	$	(109,208	)	$	(302,818	)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)    that (Increase) Decrease Net Income:
Amortization of Unrealized Holding (Gains) Losses on Held-to-    Maturity Securities 1		63			16			47
Net Unrealized Gains (Losses) on Investment Securities		(411,963	)		(109,192	)		(302,771	)
Defined Benefit Plans:
Amortization of Net Actuarial Losses (Gains)		1,084			288			796
Amortization of Prior Service Credit		(123	)		(32	)		(91	)
Defined Benefit Plans, Net		961			256			705
Other Comprehensive Income (Loss)	$	(411,002	)	$	(108,936	)	$	(302,066	)

1These amount relates to the amortization/accretion of unrealized net gains and losses related to the Company’s reclassification of available-for-sale investment securities to the held-to-maturity category. The unrealized net gains/losses will be amortized/accreted over the remaining life of the investment securities as an adjustment of yield.

The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the three and six months ended June 30, 2023, and June 30, 2022:

(dollars in thousands)	Investment Securities- Available- for-Sale			Investment Securities- Held-to-Maturity			Defined Benefit Plans			Accumulated Other Comprehensive Income (Loss)
Three Months Ended June 30, 2023
Balance at Beginning of Period	$	(216,588	)	$	(163,716	)	$	(24,994	)	$	(405,298	)
Other Comprehensive Income (Loss) Before Reclassifications		(23,215	)		—			—			(23,215	)
Amounts Reclassified from Accumulated Other    Comprehensive Income (Loss)		—			4,998			84			5,082
Total Other Comprehensive Income (Loss)		(23,215	)		4,998			84			(18,133	)
Balance at End of Period	$	(239,803	)	$	(158,718	)	$	(24,910	)	$	(423,431	)
Three Months Ended June 30, 2022
Balance at Beginning of Period	$	(213,113	)	$	103		$	(33,143	)		(246,153	)
Other Comprehensive Income (Loss) Before Reclassifications		(122,645	)		—			—			(122,645	)
Amounts Reclassified from Accumulated Other    Comprehensive Income (Loss)		—			(2	)		352			350
Total Other Comprehensive Income (Loss)		(122,645	)		(2	)		352			(122,295	)
Balance at End of Period	$	(335,758	)	$	101		$	(32,791	)	$	(368,448	)
Six Months Ended June 30, 2023
Balance at Beginning of Period	$	(240,783	)	$	(168,797	)	$	(25,078	)	$	(434,658	)
Other Comprehensive Income (Loss) Before Reclassifications		980			—			—			980
Amounts Reclassified from Accumulated Other    Comprehensive Income (Loss)		—			10,079			168			10,247
Total Other Comprehensive Income (Loss)		980			10,079			168			11,227
Balance at End of Period	$	(239,803	)	$	(158,718	)	$	(24,910	)	$	(423,431	)
Six Months Ended June 30, 2022
Balance at Beginning of Period	$	(32,940	)	$	54		$	(33,496	)		(66,382	)
Other Comprehensive Income (Loss) Before Reclassifications		(302,818	)		—			—			(302,818	)
Amounts Reclassified from Accumulated Other    Comprehensive Income (Loss)		—			47			705			752
Total Other Comprehensive Income (Loss)		(302,818	)		47			705			(302,066	)
Balance at End of Period	$	(335,758	)	$	101		$	(32,791	)	$	(368,448	)

The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2023, and June 30, 2022:

Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)1						Affected Line Item in the Statement Where Net Income Is Presented
	Three Months Ended June 30,
(dollars in thousands)	2023			2022
Amortization of Unrealized Holding Gains (Losses) on    Investment Securities Held-to-Maturity	$	(6,801	)	$	3		Interest Income
		1,803			(1	)	Provision for Income Tax
		(4,998	)		2		Net of Tax
Amortization of Defined Benefit Plan Items
Prior Service Credit 2		62			61
Net Actuarial Losses 2		(177	)		(542	)
		(115	)		(481	)	Total Before Tax
		31			129		Provision for Income Tax
		(84	)		(352	)	Net of Tax
Total Reclassifications for the Period	$	(5,082	)	$	(350	)	Net of Tax
Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)1						Affected Line Item in the Statement Where Net Income Is Presented
	Six Months Ended June 30,
(dollars in thousands)	2023			2022
Amortization of Unrealized Holding Gains (Losses) on    Investment Securities Held-to-Maturity	$	(13,714	)	$	(63	)	Interest Income
		3,635			16		Provision for Income Tax
		(10,079	)		(47	)	Net of Tax
Amortization of Defined Benefit Plan Items
Prior Service Credit 2		123			123
Net Actuarial Losses 2		(352	)		(1,084	)
		(229	)		(961	)	Total Before Tax
		61			256		Provision for Income Tax
		(168	)		(705	)	Net of Tax
Total Reclassifications for the Period	$	(10,247	)	$	(752	)	Net of Tax

1.Amounts in parentheses indicate reductions to net income.

2.These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost and are included in other noninterest expense on the consolidated statements of income.

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Earnings Per Common Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Common Share

Note 9. Earnings Per Common Share

Earnings per common share is computed using the two-class method. The following is a reconciliation of the weighted average number of common shares used in the calculation of basic and diluted earnings per common share and antidilutive stock options and restricted stock outstanding for the three and six months ended June 30, 2023, and June 30, 2022:

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands, except shares and per share amounts)	2023		2022		2023		2022
Numerator:
Net Income Available to Common Shareholders	$	44,092	$	54,893	$	88,965	$	107,758
Denominator:
Weighted Average Common Shares Outstanding - Basic		39,241,559		39,693,593		39,259,279		39,722,985
Dilutive Effect of Equity Based Awards		75,962		149,015		123,080		173,715
Weighted Average Common Shares Outstanding - Diluted		39,317,521		39,842,608		39,382,359		39,896,700
Earnings Per Common Share:
Basic	$	1.12	$	1.38	$	2.27	$	2.71
Diluted	$	1.12	$	1.38	$	2.26	$	2.70
Antidilutive Stock Options and Restricted Stock Outstanding		411,640		201,422		226,646		160,670

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Business Segments

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Business Segments

Note 10. Business Segments

The Company’s business segments are defined as Consumer Banking, Commercial Banking, and Treasury and Other. The Company’s internal management accounting process measures the performance of these business segments. This process, which is not necessarily comparable with the process used by 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. Previously reported results have been reclassified to conform to the current reporting structure.

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. However, the other business segments have some latitude to retain certain interest rate exposures related to customer pricing decisions within guidelines.

The provision for credit losses for the Consumer Banking and Commercial Banking business segments reflects the actual net charge-offs of those business segments. The amount of the consolidated provision for loan and lease losses is based on the methodology that the Company used to estimate our consolidated Allowance. The residual provision for credit losses to arrive at the consolidated provision for credit losses is included in Treasury and Other.

Noninterest income and expense includes allocations from support units to business units. These allocations are based on actual usage where practicably calculated or by management’s estimate of such usage.

The provision for income taxes is allocated to business segments using a 26% effective income tax rate. However, the provision for income taxes for our Commercial Leasing portfolio (included in the Commercial Banking segment) and Auto Leasing portfolio and Pacific Century Life Insurance business unit (both included in the Consumer Banking segment) are assigned their actual effective income tax rates due to the unique relationship that income taxes have with their products. The residual income tax expense or benefit to arrive at the consolidated effective tax rate is included in Treasury and Other.

Consumer Banking

Consumer Banking offers a broad range of financial products and services, including loan, deposit and insurance products; private banking and international client banking services; trust services; investment management; and institutional investment advisory services. Consumer Banking also provides a full service brokerage offering equities, mutual funds, life insurance, and annuity products. Loan and lease products include residential mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, small business loans and leases, and credit cards. Deposit products include checking, savings, and time deposit accounts. Private banking and personal trust groups assist individuals and families in building and preserving their wealth by providing investment, credit, and trust services to high-net-worth individuals. The investment management group manages portfolios utilizing a variety of investment products. Also within Consumer Banking, institutional client services offer investment advice to corporations, government entities, and foundations. Products and services from Consumer Banking are delivered to customers through 51 branch locations and 320 ATMs throughout Hawaii and the Pacific Islands, e-Bankoh (online banking service), a customer service center, and a mobile banking service.

Commercial Banking

Commercial Banking offers products including corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. Commercial lending and deposit products are offered to middle-market and large companies in Hawaii and the Pacific Islands. In addition, Commercial Banking offers deposit products to government entities in Hawaii. Commercial real estate mortgages focus on customers that include investors, developers, and builders predominantly domiciled in Hawaii. Commercial Banking also includes international banking and provides merchant services to its customers.

Treasury and Other

Treasury consists of corporate asset and liability management activities, including interest rate risk management and a foreign currency exchange business. This segment’s assets and liabilities (and related interest income and expense) consist of interest-bearing deposits, investment securities, federal funds sold and purchased, and short and long-term borrowings. The primary sources of noninterest income are from bank-owned life insurance, net gains from the sale of investment securities, and foreign exchange income related to customer-driven currency requests from merchants and island visitors. 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, Marketing, Human Resources, Finance, Credit and Risk Management, 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.

Selected business segment financial information as of and for the three and six months ended June 30, 2023, and June 30, 2022, were as follows:

(dollars in thousands)	Consumer Banking			Commercial Banking			Treasury and Other			Consolidated Total
Three Months Ended June 30, 2023
Net Interest Income (Loss)	$	99,814		$	53,673		$	(29,139	)	$	124,348
Provision for Credit Losses		1,392			(15	)		1,123			2,500
Net Interest Income (Loss) After Provision for Credit Losses		98,422			53,688			(30,262	)		121,848
Noninterest Income		31,944			7,939			3,372			43,255
Noninterest Expense		(81,275	)		(19,302	)		(3,459	)		(104,036	)
Income (Loss) Before Provision for Income Taxes		49,091			42,325			(30,349	)		61,067
Provision for Income Taxes		(12,645	)		(10,710	)		8,349			(15,006	)
Net Income (Loss)	$	36,446		$	31,615		$	(22,000	)	$	46,061
Total Assets as of June 30, 2023	$	8,739,294		$	5,714,929		$	10,493,713		$	24,947,936
Three Months Ended June 30, 2022 1
Net Interest Income	$	76,872		$	49,791		$	6,239		$	132,902
Provision for Credit Losses		632			(1	)		(3,131	)		(2,500	)
Net Interest Income After Provision for Credit Losses		76,240			49,792			9,370			135,402
Noninterest Income		31,868			8,363			1,927			42,158
Noninterest Expense		(82,856	)		(17,014	)		(3,069	)		(102,939	)
Income Before Provision for Income Taxes		25,252			41,141			8,228			74,621
Provision for Income Taxes		(6,339	)		(10,252	)		(1,168	)		(17,759	)
Net Income	$	18,913		$	30,889		$	7,060		$	56,862
Total Assets as of June 30, 2022 1	$	8,205,352		$	5,339,224		$	9,688,123		$	23,232,699
Six Months Ended June 30, 2023
Net Interest Income (Loss)	$	197,822		$	110,378		$	(47,897	)	$	260,303
Provision for Credit Losses		4,061			(16	)		455			4,500
Net Interest Income (Loss) After Provision for Credit Losses		193,761			110,394			(48,352	)		255,803
Noninterest Income		63,098			16,588			4,306			83,992
Noninterest Expense		(166,348	)		(39,591	)		(10,016	)		(215,955	)
Income (Loss) Before Provision for Income Taxes		90,511			87,391			(54,062	)		123,840
Provision for Income Taxes		(23,268	)		(21,503	)		13,834			(30,937	)
Net Income (Loss)	$	67,243		$	65,888		$	(40,228	)	$	92,903
Total Assets as of June 30, 2023	$	8,739,294		$	5,714,929		$	10,493,713		$	24,947,936
Six Months Ended June 30, 2022 1
Net Interest Income	$	147,233		$	96,140		$	14,792		$	258,165
Provision for Credit Losses		2,315			(198	)		(10,117	)		(8,000	)
Net Interest Income After Provision for Credit Losses		144,918			96,338			24,909			266,165
Noninterest Income		63,837			18,561			3,311			85,709
Noninterest Expense		(164,666	)		(35,683	)		(6,464	)		(206,813	)
Income Before Provision for Income Taxes		44,089			79,216			21,756			145,061
Provision for Income Taxes		(11,053	)		(19,449	)		(2,863	)		(33,365	)
Net Income	$	33,036		$	59,767		$	18,893		$	111,696
Total Assets as of June 30, 2022 1	$	8,205,352		$	5,339,224		$	9,688,123		$	23,232,699
1  Certain prior period information has been reclassified to conform to current presentation.

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 11. Derivative Financial Instruments

The Company uses derivative instruments to manage its exposure to market risks, including interest rate risk, and to assist customers with their risk management objectives. The Company designates certain derivatives as hedging instruments in a qualifying hedge accounting relationship, while other derivatives serve as economic hedges that do not qualify for hedge accounting.

The notional amount and fair value of the Company’s derivative financial instruments as of June 30, 2023, and December 31, 2022, were as follows:

	June 30, 2023					December 31, 2022
(dollars in thousands)	Notional Amount		Fair Value			Notional Amount		Fair Value
Derivatives designated as hedging instruments
Interest Rate Swap Agreements	$	200,000	$	434		$	—	$	—
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments		11,353		225			3,860		58
Forward Commitments		11,531		32			3,256		6
Interest Rate Swap Agreements
Receive Fixed/Pay Variable Swaps		1,911,911		(154,136	)		1,821,433		(160,914	)
Pay Fixed/Receive Variable Swaps		1,911,911		153,680			1,821,433		38,785
Foreign Exchange Contracts		349		1			52,065		1,745
Conversion Rate Swap Agreement 1		141,804		—			124,752	NA

1The conversation rate swap agreements were valued at zero as further reductions to the conversion rate were deemed neither probable nor reasonable estimable.

The following table presents the Company’s derivative financial instruments, their fair values, and their location in the consolidated statements of condition as of June 30, 2023, and December 31, 2022:

	June 30, 2023				December 31, 2022
	Asset		Liability		Asset		Liability
(dollars in thousands)	Derivatives		Derivatives		Derivatives		Derivatives
Derivatives designated as hedging instruments
Interest Rate Swap Agreements	$	434	$	—	$	—	$	—
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments		225		—	$	64	$	6
Forward Commitments		33		1		10		4
Interest Rate Swap Agreements		162,060		162,516		45,831		167,960
Foreign Exchange Contracts		1		—		1,812		67
Total	$	162,753	$	162,517	$	47,717	$	168,037

1Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the consolidated statements of condition. The Company’s free-standing derivative financial instruments are required to be carried at their fair value on the Company’s consolidated statements of condition.

The following table presents the Company’s derivative financial instruments and the amount and location of the net gains or losses recognized in the consolidated statements of income for the three and six months ended June 30, 2023, and June 30, 2022:

	Location of
	Net Gains (Losses)	Three Months Ended					Six Months Ended
	Recognized in the	June 30,					June 30,
(dollars in thousands)	Statements of Income	2023			2022		2023			2022
Derivatives designated as hedging instruments
Recognized on Interest Rate Swap Agreements	Interest and Fees on Loans and Leases	$	434		$	—	$	434		$	—
Recognized on Hedged Item	Interest and Fees on Loans and Leases		(435	)	$	—		(435	)	$	—
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments	Mortgage Banking		274			66		478			(1,013	)
Forward Commitments	Mortgage Banking		92			314		61			2,221
Interest Rate Swap Agreements	Other Noninterest Income		(2	)		23		(18	)		17
Foreign Exchange Contracts	Other Noninterest Income		802			232		1,643			506
Total		$	1,165		$	635	$	2,163		$	1,731

The following amounts were recorded on the consolidated statement of financial condition related to the cumulative basis adjustment for fair value hedges as of June 30, 2023:

Derivative Financial Instruments
Designated as Hedging Instruments
Line Item in the Consolidated Statement of Condition	Carrying Amount of the Hedged Assets			Cumulative Amount of Fair Value Hedging Adjustment Included In the Carrying Amount of the Hedged Assets
(dollars in thousands)	June 30, 2023			June 30, 2023
Loans and Leases1	$	(435	)	$	(435	)

1 These amounts were included in the amortized cost basis of closed portfolios of loans used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At June 30, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $3.3 billion.

Derivatives Not Designated as Hedging Instruments
Interest Rate Swap Agreements

The Company enters into interest rate swap agreements to facilitate the risk management strategies of a small number of commercial banking customers. The Company mitigates the risk of entering into these agreements by entering into equal and offsetting interest rate swap agreements with highly rated third party financial institutions. The interest rate swap agreements are free-standing derivatives and are recorded at fair value in the Company’s consolidated statements of condition (asset positions are included in other assets and liability positions are included in other liabilities). 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 master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of marketable securities, is posted by the party (i.e., the Company or the financial institution counterparty) with net liability positions in accordance with contract thresholds. The Company had net asset positions with its financial institution counterparties totaling $153.7 million and $38.8 million as of June 30, 2023, and December 31, 2022, respectively.

Conversion Rate Swap Agreements

As certain sales of Visa Class B restricted shares were completed, the Company entered into a conversion rate swap agreement with the buyer that requires payment to the buyer in the event Visa further reduces the conversion ratio of Class B into Class A unrestricted common shares. In the event of Visa increasing the conversion ratio, the buyer would be required to make payment to the Company. As of June 30, 2023, and December 31, 2022, the conversion rate swap agreement was valued at zero (i.e., no contingent liability recorded) as further reductions to the conversion ratio were deemed neither probable nor reasonably estimable by management.

Derivatives Designated as Hedging Instruments
Fair Value Hedges

The Company is exposed to changes in the fair value of fixed-rate assets due to changes in benchmark interest rates. The Company entered into pay-fixed and receive-floating interest rate swaps to manage its exposure to changes in fair value of its fixed rate loans. These interest rate swaps are designated as fair value hedges using the portfolio layer method. The Company receives variable-rate interest payments in exchange for making fixed-rate payments over the lives of the contracts without exchanging the notional amounts. The fair value hedges are recorded as components of other assets and other liabilities in the Company’s consolidated statements of financial condition. The gain or loss on these derivatives, as well as the offsetting loss or gain on the hedged items attributable to the hedged risk are recognized in interest income in the Company’s consolidated statements of income.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 12. Commitments and Contingencies

The Company’s credit commitments as of June 30, 2023, and December 31, 2022, were as follows:

(dollars in thousands)	June 30, 2023		December 31, 2022
Unfunded Commitments to Extend Credit	$	3,597,648	$	3,592,872
Standby Letters of Credit		100,495		129,512
Commercial Letters of Credit		20,687		24,030
Total Credit Commitments	$	3,718,830	$	3,746,414

Unfunded Commitments to Extend Credit

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of the terms or conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since commitments may expire without being drawn, the total commitment amount does not necessarily represent future cash requirements.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. Standby letters of credit generally become payable upon the failure of the customer to perform according to the terms of the underlying contract with the third-party, while commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and a third party. The contractual amount of these letters of credit represents the maximum potential future payments guaranteed by the Company. The Company has recourse against the customer for any amount it is required to pay to a third-party under a standby letter of credit, and generally holds cash or deposits as collateral on those standby letters of credit for which collateral is deemed necessary. Assets valued at $75.7 million secured certain specifically identified standby letters of credit as of June 30, 2023. As of June 30, 2023, the standby and commercial letters of credit had remaining terms ranging from 1 to 13 months.

Contingencies

The Company is subject to various pending and threatened legal proceedings arising out of the normal course of business or operations. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal proceedings using the most recent information available. On a case-by-case basis, reserves are established for those legal claims for which it is probable that a loss will be incurred and the amount of such loss can be reasonably estimated. Based on information currently available, management believes that the eventual outcome of any claims against the Company will not be materially in excess of such amounts reserved by the Company. However, in the event of unexpected future developments, it is possible that the ultimate resolution of these matters may result in a loss that materially exceeds the reserves established by the Company.

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Fair Value of Assets and Liabilities

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

Note 13. Fair Value of Assets and Liabilities

Fair Value Hierarchy

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels:

Level 1:	Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and is used to measure fair value whenever available. A contractually binding sales price also provides reliable evidence of fair value.
Level 2:	Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that utilize model-based techniques for which all significant assumptions are observable in the market.
Level 3:	Inputs to the valuation methodology are unobservable and significant to the fair value measurement; inputs to the valuation methodology that utilize model-based techniques for which significant assumptions are not observable in the market; or inputs to the valuation methodology that require significant management judgment or estimation, some of which may be internally developed.

In some instances, an instrument may fall into multiple levels of the fair value hierarchy. In such instances, the instrument’s level within the fair value hierarchy is based on the lowest of the three levels (with Level 3 being the lowest) that is significant to the fair value measurement. Our assessment of the significance of an input requires judgment and considers factors specific to the instrument.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Investment Securities Available-for-Sale

Level 1 investment securities are comprised of debt securities issued by the U.S. Treasury, as quoted prices were available, unadjusted, for identical securities in active markets. Level 2 investment securities were primarily comprised of debt securities issued by the Small Business Administration, states and municipalities, corporations, as well as mortgage-backed securities issued by government agencies and government-sponsored enterprises. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models. In cases where there may be limited or less transparent information provided by the Company’s third party pricing service, fair value may be estimated by the use of secondary pricing services or through the use of non-binding third party broker quotes.

Loans Held for Sale

The fair value of the Company’s residential mortgage loans held for sale was determined based on quoted prices for similar loans in active markets, and therefore, is classified as a Level 2 measurement.

Mortgage Servicing Rights

The Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company stratifies its mortgage servicing portfolio on the basis of loan type. The assumptions used in the discounted cash flow model are those that the Company believes market participants would use in estimating future net servicing income. Significant assumptions in the valuation of mortgage servicing rights include estimated loan repayment rates, the discount rate, servicing costs, and the timing of cash flows, among other factors. Mortgage servicing rights are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation.

Other Assets

Other assets recorded at fair value on a recurring basis are primarily comprised of investments related to deferred compensation arrangements. Quoted prices for these investments, primarily in mutual funds, are available in active markets. Thus, the Company’s investments related to deferred compensation arrangements are classified as Level 1 measurements in the fair value hierarchy.

Derivative Financial Instruments

Derivative financial instruments recorded at fair value on a recurring basis are comprised of interest rate lock commitments (“IRLCs”), forward commitments, interest rate swap agreements, foreign exchange contracts, and Visa Class B to Class A shares conversion rate swap agreements. The fair values of IRLCs are calculated based on the value of the underlying loan held for sale, which in turn is based on quoted prices for similar loans in the secondary market. However, this value is adjusted by a factor which considers the likelihood that the loan in a locked position will ultimately close. This factor, the closing ratio, is derived from the Bank’s internal data and is adjusted using significant management judgment. As such, IRLCs are classified as Level 3 measurements. Forward commitments are classified as Level 2 measurements as they are primarily based on quoted prices from the secondary market based on the settlement date of the contracts, interpolated or extrapolated, if necessary, to estimate a fair value as of the end of the reporting period.

The fair values of interest rate swap agreements are calculated using a discounted cash flow approach and utilize Level 2 observable inputs such as a market yield curve, effective date, maturity date, notional amount, and stated interest rate. The valuation methodology for interest rate swaps with financial institution counterparties (and the related customer interest rate swaps) is based on the Secured Overnight Financing Rate ("SOFR"). In addition, the Company includes in its fair value calculation a credit factor adjustment which is based primarily on management judgment. Thus, interest rate swap agreements are classified as a Level 3 measurement. The fair values of foreign exchange contracts are calculated using the Bank’s multi-currency accounting system which utilizes contract specific information such as currency, maturity date, contractual amount, and strike price, along with market data information such as the spot rates of specific currency and yield curves. Foreign exchange contracts are classified as Level 2 measurements because while they are valued using the Bank’s multi-currency accounting system, significant management judgment or estimation is not required. The fair value of the Visa Class B restricted shares to Class A unrestricted common shares conversion rate swap agreements represent the amount owed by the Company to the buyer of the Visa Class B shares as a result of a reduction of the conversion ratio subsequent to the sales date. As of June 30, 2023, and December 31, 2022, the conversion rate swap agreements were valued at zero as reductions to the conversion ratio were neither probable nor reasonably estimable by management. See Note 11 Derivative Financial Instruments for more information.

The Company is exposed to credit risk if borrowers or counterparties fail to perform. The Company seeks to minimize credit risk through credit approvals, limits, monitoring procedures, and collateral requirements. The Company generally enters into transactions with borrowers of high credit quality and counterparties that carry high quality credit ratings. Credit risk associated with borrowers or counterparties as well as the Company’s non-performance risk is factored into the determination of the fair value of derivative financial instruments.

The Table below presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2023, and December 31, 2022.

	Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
(dollars in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
June 30, 2023
Assets:
Investment Securities Available-for-Sale
Debt Securities Issued by the U.S. Treasury and Government    Agencies	$	142,478	$	78,603	$	—	$	221,081
Debt Securities Issued by States and Political Subdivisions		—		96,540		—		96,540
Debt Securities Issued by U.S. Government-Sponsored    Enterprises		—		1,637		—		1,637
Debt Securities Issued by Corporations		—		788,754		—		788,754
Mortgage-Backed Securities:
Residential - Government Agencies		—		675,204		—		675,204
Residential - U.S. Government-Sponsored Enterprises		—		744,714		—		744,714
Commercial - Government Agencies		—		138,793		—		138,793
Total Mortgage-Backed Securities		—		1,558,711		—		1,558,711
Total Investment Securities Available-for-Sale		142,478		2,524,245		—		2,666,723
Loans Held for Sale		—		3,359		—		3,359
Mortgage Servicing Rights		—		—		695		695
Other Assets		53,202		—		—		53,202
Derivatives 1		—		34		162,719		162,753
Total Assets Measured at Fair Value on a Recurring Basis as of    June 30, 2023	$	195,680	$	2,527,638	$	163,414	$	2,886,732
Liabilities:
Derivatives 1	$	—	$	—	$	162,517	$	162,517
Total Liabilities Measured at Fair Value on a Recurring Basis as of   June 30, 2023	$	—	$	—	$	162,517	$	162,517
December 31, 2022
Assets:
Investment Securities Available-for-Sale
Debt Securities Issued by the U.S. Treasury    and Government Agencies	$	141,944	$	91,962	$	—	$	233,906
Debt Securities Issued by States and Political Subdivisions		—		95,265		—		95,265
Debt Securities Issued by    U.S. Government-Sponsored Enterprises		—		48,628		—		48,628
Debt Securities Issued by Corporations		—		794,658		—		794,658
Mortgage-Backed Securities:
Residential - Government Agencies		—		732,828		—		732,828
Residential - U.S. Government-Sponsored Enterprises		—		793,871		—		793,871
Commercial - Government Agencies or Sponsored Agencies		—		145,667		—		145,667
Total Mortgage-Backed Securities		—		1,672,366		—		1,672,366
Total Investment Securities Available-for-Sale		141,944		2,702,879		—		2,844,823
Loans Held for Sale		—		1,035		—		1,035
Mortgage Servicing Rights		—		—		717		717
Other Assets		47,755		—		—		47,755
Derivatives 1		—		1,822		45,895		47,717
Total Assets Measured at Fair Value on a    Recurring Basis as of December 31, 2022	$	189,699	$	2,705,736	$	46,612	$	2,942,047
Liabilities:
Derivatives 1	$	—	$	70	$	167,967	$	168,037
Total Liabilities Measured at Fair Value on a    Recurring Basis as of December 31, 2022	$	—	$	70	$	167,967	$	168,037

1 The fair value of each class of derivatives is shown in Note 11 Derivative Financial Instruments.

For the three and six months ended June 30, 2023, and June 30, 2022, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows:

(dollars in thousands)	Mortgage Servicing Rights 1			Net Derivative Assets and Liabilities 2
Three Months Ended June 30, 2023
Balance as of April 1, 2023	$	707		$	(52,838	)
Realized and Unrealized Net Gains (Losses):
Included in Net Income		(12	)		272
Transfers to Loans Held for Sale		—			(223	)
Variation Margin Payments		—			52,991
Balance as of June 30, 2023	$	695		$	202
Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of June 30, 2023	$	—		$	272
Three Months Ended June 30, 2022
Balance as of April 1, 2022	$	781		$	(50,429	)
Realized and Unrealized Net Gains (Losses):
Included in Net Income3		(34	)		90
Transfers to Loans Held for Sale		—			58
Variation Margin Payments		—			(32,667	)
Balance as of June 30, 2022	$	747		$	(82,948	)
Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of June 30, 2022	$	—		$	89
Six Months Ended June 30, 2023
Balance as of January 1, 2023	$	717			(122,071	)
Realized and Unrealized Net Gains (Losses):
Included in Net Income		(22	)		460
Transfers to Loans Held for Sale		—			(311	)
Variation Margin Payments		—			122,124
Balance as of June 30, 2023	$	695			202
Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of June 30, 2023	$	—		$	460
Six Months Ended June 30, 2022
Balance as of January 1, 2023	$	800		$	23,904
Realized and Unrealized Net Gains (Losses):
Included in Net Income		(53	)		(996	)
Transfers to Loans Held for Sale		—			172
Variation Margin Payments		—			(106,028	)
Balance as of June 30, 2022	$	747		$	(82,948	)
Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of June 30, 2022	$	—		$	(996	)

1 Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of mortgage banking income in the Company’s consolidated statements of income.

2 Realized and unrealized gains and losses related to interest rate lock commitments are reported as a component of mortgage banking income in the Company’s consolidated statements of income. Realized and unrealized gains and losses related to interest rate swap agreements are reported as a component of other noninterest income in the Company’s consolidated statements of income.

For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of June 30, 2023, and December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:

(dollars in thousands)	Valuation  Technique	Description	Range						Weighted Average1			Fair Value
June 30, 2023
Mortgage Servicing Rights	Discounted Cash Flow	Constant Prepayment Rate		3.05	%	-	11.06	%		3.93	%	$	27,022
		Discount Rate		9.22	%	-	10.92	%		9.71	%	$	—
Net Derivative Assets and Liabilities:
Interest Rate Lock Commitments	Pricing Model	Closing Ratio		84.10	%	-	99.00	%		92.30	%	$	225
Interest Rate Swap Agreements	Discounted Cash Flow	Credit Factor		0.00	%	-	4.03	%		0.01	%	$	(23	)
December 31, 2022
Mortgage Servicing Rights	Discounted Cash Flow	Constant Prepayment Rate		2.81	%	-	10.63	%		4.02	%	$	28,040
		Discount Rate		8.70	%	-	10.40	%		9.93	%	$	—
Net Derivative Assets and Liabilities:
Interest Rate Lock Commitments	Pricing Model	Closing Ratio		84.10	%	-	99.00	%		92.86	%	$	58
Interest Rate Swap Agreements	Discounted Cash Flow	Credit Factor		0.00	%	-	0.49	%		0.01	%	$	(122,129	)

1 Unobservable inputs for mortgage servicing rights and interest rate lock commitments were weighted by loan amount. Unobservable inputs for interest rate swap agreements were weighted by fair value.

Significant increases (decreases) in any of those inputs in isolation could result in a significantly lower (higher) fair value measurement. Although the constant prepayment rate and the discount rate are not directly interrelated, they generally move in opposite directions of each other.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The Company may be required periodically to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower-of-cost-or-fair value accounting or impairment write-downs of individual assets. The following table represents the assets measured at fair value on a nonrecurring basis as of June 30, 2023, and December 31, 2022.

(dollars in thousands)	Fair Value Hierarchy	Net Carrying Amount		Valuation Allowance
June 30, 2023
Mortgage Servicing Rights - amortization method	Level 3	$	20,931	$	—
December 31, 2022
Mortgage Servicing Rights - amortization method	Level 3	$	21,902	$	—

As previously mentioned, all of the Company's mortgage servicing rights are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation.

Fair Value Option

The following table reflects the difference between the aggregate fair value and the aggregate unpaid principal balance of the Company’s residential mortgage loans held for sale as of June 30, 2023, and December 31, 2022.

(dollars in thousands)	Aggregate Fair Value		Aggregate Unpaid Principal		Aggregate Fair Value Less Aggregate Unpaid Principal
June 30, 2023
Loans Held for Sale	$	3,359	$	3,348	$	11
December 31, 2022
Loans Held for Sale	$	1,035	$	1,016	$	19

Changes in the estimated fair value of residential mortgage loans held for sale are reported as a component of mortgage banking income in the Company’s consolidated statements of income. For the three and six months ended June 30, 2023, and year ended December 31, 2022, the net gains or losses from the change in fair value of the Company’s residential mortgage loans held for sale were not material.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments not recorded at fair value on a recurring basis as of June 30, 2023, and December 31, 2022. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For non-marketable equity securities such as Federal Home Loan Bank of Des Moines and Federal Reserve Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity.

					Fair Value Measurements
	Carrying				Quoted Prices  in Active  Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
(dollars in thousands)	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2023
Financial Instruments - Assets
Investment Securities Held-to-Maturity	$	5,202,698	$	4,411,003	$	114,012	$	4,296,991	$	—
Loans		13,652,102		12,640,810		—		—		12,640,810
Financial Instruments - Liabilities
Time Deposits		2,664,679		2,628,658		—		2,628,658		—
Securities Sold Under Agreements to Repurchase		725,490		716,935		—		716,935		—
Other Debt 1		1,750,000		1,731,736		—		1,731,736		—
December 31, 2022
Financial Instruments – Assets
Investment Securities Held-to-Maturity	$	5,414,139	$	4,615,393	$	113,417	$	4,501,976	$	—
Loans		13,371,226		12,386,615		—		—		12,386,615
Financial Instruments – Liabilities
Time Deposits		1,705,737		1,679,777		—		1,679,777		—
Securities Sold Under Agreements to Repurchase		725,490		718,614		—		718,614		—
Other Debt 1		400,000		402,877		—		402,877		—

1 Excludes finance lease obligations.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Bank of Hawaii Corporation (the “Parent”) is a Delaware corporation and a bank holding company headquartered in Honolulu, Hawaii. Bank of Hawai‘i Corporation is a trade name of Bank of Hawaii Corporation, and along with its subsidiaries (collectively, the “Company”), provides a broad range of financial products and services to businesses, consumers and governments in Hawaii and the West Pacific. The majority of the Company’s operations consist of customary commercial and consumer banking services including, but not limited to, lending, leasing, deposit services, trust and investment activities, brokerage services, and trade financing. The accompanying consolidated financial statements include the accounts of the Parent and its subsidiaries. The Parent’s principal operating subsidiary is Bank of Hawaii (the “Bank”), doing business as Bank of Hawai‘i.

The consolidated financial statements in this report have not been audited by an independent registered public accounting firm, but, in the opinion of management, reflect all adjustments necessary for a fair presentation of the results for the interim periods. All such adjustments are of a normal recurring nature. Intercompany accounts and transactions have been eliminated in consolidation. Certain prior period information has been reclassified to conform to the current period presentation. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for the full fiscal year or any future period.

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements and should be read in conjunction with the 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. Significant changes to accounting policies from those disclosed in our audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K are presented below.

In January 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a prospective basis. Upon adoption of this guidance, the Company no longer establishes a specific reserve for modifications made on January 1, 2023 and forward to borrowers experiencing financial difficulty. Instead, these modifications are included in their respective cohort and a historical loss rate is applied to the current loan balance to arrive at the quantitative baseline portion of the Allowance for Credit Losses.

Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral.

Accounting Standard Pending Adoption

Accounting Standard Pending Adoption

In March 2023, the FASB issued ASU 2023-02, “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” ASU 2023-02 permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. ASU 2023-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. ASU 2023-02 is not expected to have a material impact on the Company’s consolidated financial statements.

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Cash and Cash Equivalents (Tables)

6 Months Ended

Jun. 30, 2023

Cash and Cash Equivalents [Abstract]

Schedule of Reconciliation of Cash and Cash Equivalents

The following table provides a reconciliation of cash and cash equivalents reported within the consolidated statement of condition:

(dollars in thousands)	June 30, 2023
Interest-Bearing Deposits in Other Banks	$	2,261
Funds Sold		1,273,109
Cash and Due From Banks		398,072
Total Cash and Cash Equivalents	$	1,673,442

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities as of June 30, 2023, and December 31, 2022, were as follows:

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2023
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	235,178	$	472	$	(14,569	)	$	221,081
Debt Securities Issued by States and Political Subdivisions		107,621		142		(11,223	)		96,540
Debt Securities Issued by U.S. Government-Sponsored Enterprises		1,757		—		(120	)		1,637
Debt Securities Issued by Corporations		844,587		552		(56,385	)		788,754
Mortgage-Backed Securities:
Residential - Government Agencies		771,006		174		(95,976	)		675,204
Residential - U.S. Government-Sponsored Enterprises		869,381		—		(124,667	)		744,714
Commercial - Government Agencies or Sponsored Agencies		163,474		—		(24,681	)		138,793
Total Mortgage-Backed Securities		1,803,861		174		(245,324	)		1,558,711
Total	$	2,993,004	$	1,340	$	(327,621	)	$	2,666,723
Held-to-Maturity:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	131,678	$	—	$	(17,666	)	$	114,012
Debt Securities Issued by Corporations		12,094		—		(2,174	)		9,920
Mortgage-Backed Securities:
Residential - Government Agencies		1,761,490		11		(290,874	)		1,470,627
Residential - U.S. Government-Sponsored Enterprises		2,856,709		7		(387,659	)		2,469,057
Commercial - Government Agencies or Sponsored Agencies		440,727		—		(93,340	)		347,387
Total Mortgage-Backed Securities		5,058,926		18		(771,873	)		4,287,071
Total	$	5,202,698	$	18	$	(791,713	)	$	4,411,003
December 31, 2022
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	248,335	$	638	$	(15,067	)	$	233,906
Debt Securities Issued by States and Political Subdivisions		107,689		158		(12,582	)		95,265
Debt Securities Issued by U.S. Government-Sponsored Enterprises		48,807		—		(179	)		48,628
Debt Securities Issued by Corporations		850,585		809		(56,736	)		794,658
Mortgage-Backed Securities:
Residential - Government Agencies		828,798		245		(96,215	)		732,828
Residential - U.S. Government-Sponsored Enterprises		919,980		1		(126,110	)		793,871
Commercial - Government Agencies or Sponsored Agencies		168,242		—		(22,575	)		145,667
Total Mortgage-Backed Securities		1,917,020		246		(244,900	)		1,672,366
Total	$	3,172,436	$	1,851	$	(329,464	)	$	2,844,823
Held-to-Maturity:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	131,619	$	—	$	(18,202	)	$	113,417
Debt Securities Issued by Corporations		17,014		—		(2,534	)		14,480
Mortgage-Backed Securities:
Residential - Government Agencies		1,848,239		35		(294,047	)		1,554,227
Residential - U.S. Government-Sponsored Enterprises		2,968,322		8		(397,055	)		2,571,275
Commercial - Government Agencies or Sponsored Agencies		448,945		—		(86,951	)		361,994
Total Mortgage-Backed Securities		5,265,506		43		(778,053	)		4,487,496
Total	$	5,414,139	$	43	$	(798,789	)	$	4,615,393

Analysis of the Contractual Maturities of Investment Securities

The table below presents an analysis of the contractual maturities of the Company’s investment securities as of June 30, 2023. Debt securities issued by government agencies (Small Business Administration securities) and mortgage-backed securities are disclosed separately in the table below as these investment securities may prepay prior to their scheduled contractual maturity dates.

(dollars in thousands)	Amortized Cost		Fair Value
Available-for-Sale:
Due in One Year or Less	$	9,012	$	8,980
Due After One Year Through Five Years		443,955		419,503
Due After Five Years Through Ten Years		651,597		595,753
Due After Ten Years		6,380		5,172
		1,110,944		1,029,408
Debt Securities Issued by Government Agencies		78,199		78,604
Mortgage-Backed Securities:
Residential - Government Agencies		771,006		675,204
Residential - U.S. Government-Sponsored Enterprises		869,381		744,714
Commercial - Government Agencies or Sponsored Agencies		163,474		138,793
Total Mortgage-Backed Securities		1,803,861		1,558,711
Total	$	2,993,004	$	2,666,723
Held-to-Maturity:
Due After One Year Through Five Years		83,436		73,401
Due After Five Year Through Ten Years		49,448		41,783
Due After Ten Years		10,888		8,748
		143,772		123,932
Mortgage-Backed Securities:
Residential - Government Agencies		1,761,490		1,470,627
Residential - U.S. Government-Sponsored Enterprises		2,856,709		2,469,057
Commercial - Government Agencies or Sponsored Agencies		440,727		347,387
Total Mortgage-Backed Securities		5,058,926		4,287,071
Total	$	5,202,698	$	4,411,003

Schedule of Losses on Sales of Investment Securities

The table below presents the losses from the sales of investment securities for the three and six months ended June 30, 2023, and June 30, 2022:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2023			2022			2023			2022
Total Losses on Sales of Investment Securities	$	(1,310	)	$	(1,295	)	$	(3,102	)	$	(2,840	)

Schedule of AFS Debt Securities in an Unrealized Loss Position

The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses was not deemed necessary, aggregated by major security type and length of time in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or Longer					Total
(dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
June 30, 2023
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury    and Government Agencies	$	13,669	$	(54	)	$	145,838	$	(14,515	)	$	159,507	$	(14,569	)
Debt Securities Issued by States    and Political Subdivisions		25,209		(126	)		62,113		(11,097	)		87,322		(11,223	)
Debt Securities Issued by U.S. Government-    Sponsored Enterprises		—		—			1,636		(120	)		1,636		(120	)
Debt Securities Issued by Corporations		376,871		(2,133	)		368,538		(54,252	)		745,409		(56,385	)
Mortgage-Backed Securities:
Residential - Government Agencies		53,525		(1,939	)		617,092		(94,037	)		670,617		(95,976	)
Residential - U.S. Government-Sponsored Enterprises		10,064		(468	)		734,650		(124,199	)		744,714		(124,667	)
Commercial - Government Agencies or Sponsored Agencies		734		(33	)		138,059		(24,648	)		138,793		(24,681	)
Total Mortgage-Backed Securities		64,323		(2,440	)		1,489,801		(242,884	)		1,554,124		(245,324	)
Total	$	480,072	$	(4,753	)	$	2,067,926	$	(322,868	)	$	2,547,998	$	(327,621	)
December 31, 2022
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury    and Government Agencies	$	28,574	$	(1,118	)	$	127,841	$	(13,949	)	$	156,415	$	(15,067	)
Debt Securities Issued by States    and Political Subdivisions		11,341		(1,240	)		49,985		(11,342	)		61,326		(12,582	)
Debt Securities Issued by U.S. Government-    Sponsored Enterprises		47,825		(108	)		803		(71	)		48,628		(179	)
Debt Securities Issued by Corporations		438,225		(7,995	)		284,350		(48,741	)		722,575		(56,736	)
Mortgage-Backed Securities:
Residential - Government Agencies		386,809		(30,492	)		340,824		(65,723	)		727,633		(96,215	)
Residential - U.S. Government-Sponsored Enterprises		194,684		(22,294	)		598,986		(103,816	)		793,670		(126,110	)
Commercial - Government Agencies or Sponsored Agencies		98,694		(13,247	)		46,973		(9,328	)		145,667		(22,575	)
Total Mortgage-Backed Securities		680,187		(66,033	)		986,783		(178,867	)		1,666,970		(244,900	)
Total	$	1,206,152	$	(76,494	)	$	1,449,762	$	(252,970	)	$	2,655,914	$	(329,464	)

Schedule of Interest Income from Taxable and Non-taxable Investment Securities

Interest income from taxable and non-taxable investment securities for the three and six months ended June 30, 2023, and June 30, 2022, were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2023		2022		2023		2022
Taxable	$	46,593	$	36,809	$	94,350	$	72,599
Non-Taxable		83		12		167		23
Total Interest Income from Investment Securities	$	46,676	$	36,821	$	94,517	$	72,622

Schedule of Carrying Value of Federal Home Loan Bank of Des Moines Stock and Federal Reserve Bank Stock

As of June 30, 2023, and December 31, 2022, the carrying value of the Company’s Federal Home Loan Bank of Des Moines stock and Federal Reserve Bank stock was as follows:

(dollars in thousands)	June 30, 2023		December 31, 2022
Federal Home Loan Bank of Des Moines Stock	$	80,000	$	26,000
Federal Reserve Bank Stock		27,277		27,065
Total	$	107,277	$	53,065

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Loans and Leases and the Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2023

Loans And Leases And Allowance For Loan And Lease Losses [Abstract]

Schedule of Loan and Lease Portfolio

The Company’s loan and lease portfolio was comprised of the following as of June 30, 2023, and December 31, 2022:

(dollars in thousands)	June 30, 2023		December 31, 2022
Commercial
Commercial and Industrial	$	1,502,676	$	1,389,066
Paycheck Protection Program		13,789		19,579
Commercial Mortgage		3,796,769		3,725,542
Construction		236,428		260,825
Lease Financing		62,779		69,491
Total Commercial		5,612,441		5,464,503
Consumer
Residential Mortgage		4,721,976		4,653,072
Home Equity		2,278,105		2,225,950
Automobile		878,767		870,396
Other 2		423,600		432,499
Total Consumer		8,302,448		8,181,917
Total Loans and Leases	$	13,914,889	$	13,646,420

1.Comprised of other revolving credit, installment, and lease financing.

Schedule of Activity in Allowance by Portfolio Segment

The following presents by portfolio segment, the activity in the Allowance for the three and six months ended June 30, 2023, and June 30, 2022.

(dollars in thousands)	Commercial			Consumer			Total
Three Months Ended June 30, 2023
Allowance for Credit Losses:
Balance at Beginning of Period	$	58,771		$	84,806		$	143,577
Loans and Leases Charged-Off		(203	)		(3,308	)		(3,511	)
Recoveries on Loans and Leases Previously Charged-Off		103			2,031			2,134
Net Loans and Leases Recovered (Charged-Off)		(100	)		(1,277	)		(1,377	)
Provision for Credit Losses		5,270			(2,103	)		3,167
Balance at End of Period	$	63,941		$	81,426		$	145,367
Six Months Ended June 30, 2023
Allowance for Credit Losses:
Balance at Beginning of Period	$	63,900		$	80,539		$	144,439
Loans and Leases Charged-Off		(464	)		(7,356	)		(7,820	)
Recoveries on Loans and Leases Previously Charged-Off		153			3,622			3,775
Net Loans and Leases Recovered (Charged-Off)		(311	)		(3,734	)		(4,045	)
Provision for Credit Losses		352			4,621			4,973
Balance at End of Period	$	63,941		$	81,426		$	145,367
Three Months Ended June 30, 2022
Allowance for Credit Losses:
Balance at Beginning of Period	$	62,093		$	89,935		$	152,028
Loans and Leases Charged-Off		(233	)		(3,113	)		(3,346	)
Recoveries on Loans and Leases Previously Charged-Off		51			2,664			2,715
Net Loans and Leases Recovered (Charged-Off)		(182	)		(449	)		(631	)
Provision for Credit Losses		(85	)		(2,800	)		(2,885	)
Balance at End of Period	$	61,826		$	86,686		$	148,512
Six Months Ended June 30, 2022
Allowance for Credit Losses:
Balance at Beginning of Period	$	64,950		$	92,871		$	157,821
Loans and Leases Charged-Off		(582	)		(6,672	)		(7,254	)
Recoveries on Loans and Leases Previously Charged-Off		420			4,717			5,137
Net Loans and Leases Recovered (Charged-Off)		(162	)		(1,955	)		(2,117	)
Provision for Credit Losses		(2,962	)		(4,230	)		(7,192	)
Balance at End of Period	$	61,826		$	86,686		$	148,512

Schedule of Recorded Investment in Loans and Leases by Class and Credit Quality Indicator

The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of June 30, 2023.

		Term Loans by Origination Year
(dollars in thousands)	2023 2			2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
June 30, 2023
Commercial
Commercial and Industrial
Pass		$	289,456	$	295,319	$	250,845	$	159,176	$	44,914	$	86,713	$	330,831	$	205	$	1,457,459
Special Mention			551		11,617		2,354		49		-		-		1,763		-		16,334
Classified			83		2,532		5,847		6,731		11		8,486		5,176		17		28,883
Total Commercial and Industrial		$	290,090	$	309,468	$	259,046	$	165,956	$	44,925	$	95,199	$	337,770	$	222	$	1,502,676
Paycheck Protection Program
Pass		$	-	$	-	$	2,692	$	11,097	$	-	$	-	$	-	$	-	$	13,789
Total Paycheck Protection Program		$	-	$	-	$	2,692	$	11,097	$	-	$	-	$	-	$	-	$	13,789
Commercial Mortgage
Pass		$	675,565	$	997,296	$	725,699	$	460,847	$	250,447	$	491,306	$	42,928	$	-	$	3,644,088
Special Mention			30,482		61,921		6,249		-		-		19,399		-		-		118,051
Classified			3,220		4,313		6,351		13,593		234		6,919		-		-		34,630
Total Commercial Mortgage		$	709,267	$	1,063,530	$	738,299	$	474,440	$	250,681	$	517,624	$	42,928	$	-	$	3,796,769
Construction
Pass		$	19,496	$	125,499	$	71,654	$	2,859	$	16,184	$	296	$	440	$	-	$	236,428
Total Construction		$	19,496	$	125,499	$	71,654	$	2,859	$	16,184	$	296	$	440	$	-	$	236,428
Lease Financing
Pass		$	4,938	$	14,413	$	15,495	$	9,838	$	7,523	$	9,756	$	-	$	-	$	61,963
Classified			-		57		130		107		-		522		-		-		816
Total Lease Financing		$	4,938	$	14,470	$	15,625	$	9,945	$	7,523	$	10,278	$	-	$	-	$	62,779
Total Commercial		$	1,023,791	$	1,512,967	$	1,087,316	$	664,297	$	319,313	$	623,397	$	381,138	$	222	$	5,612,441
Consumer
Residential Mortgage
Pass		$	213,211	$	811,601	$	1,272,073	$	1,003,636	$	311,321	$	1,108,419	$	-	$	-	$	4,720,261
Classified			-		-		-		-		-		1,715		-		-		1,715
Total Residential Mortgage		$	213,211	$	811,601	$	1,272,073	$	1,003,636	$	311,321	$	1,110,134	$	-	$	-	$	4,721,976
Home Equity
Pass		$	-	$	-	$	-	$	-	$	-	$	45	$	2,235,915	$	39,738	$	2,275,698
Classified			-		-		-		-		-		-		1,168		1,239		2,407
Total Home Equity		$	-	$	-	$	-	$	-	$	-	$	45	$	2,237,083	$	40,977	$	2,278,105
Automobile
Pass		$	158,785	$	351,850	$	180,380	$	82,119	$	64,406	$	40,650	$	-	$	-	$	878,190
Classified			-		94		93		114		199		77		-		-		577
Total Automobile		$	158,785	$	351,944	$	180,473	$	82,233	$	64,605	$	40,727	$	-	$	-	$	878,767
Other1
Pass		$	68,369	$	160,685	$	108,394	$	20,822	$	25,708	$	38,104	$	884	$	-	$	422,966
Classified			-		153		154		13		146		168		-		-		634
Total Other		$	68,369	$	160,838	$	108,548	$	20,835	$	25,854	$	38,272	$	884	$	-	$	423,600
Total Consumer		$	440,365	$	1,324,383	$	1,561,094	$	1,106,704	$	401,780	$	1,189,178	$	2,237,967	$	40,977	$	8,302,448
Total Loans and Leases		$	1,464,156	$	2,837,350	$	2,648,410	$	1,771,001	$	721,093	$	1,812,575	$	2,619,105	$	41,199	$	13,914,889

1.Comprised of other revolving credit, installment, and lease financing.

2.Loans reported as Special Mention or Classified in the 2023 column represent renewal of loans that originated in an earlier period.

For the six months ended June 30, 2023, $5.3 million of revolving loans were converted to term loans.

The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of December 31, 2022.

		Term Loans by Origination Year
(dollars in thousands)	2022			2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
December 31, 2022
Commercial
Commercial and Industrial
Pass		$	360,748	$	348,300	$	224,264	$	59,127	$	46,799	$	71,906	$	257,349	$	155	$	1,368,648
Special Mention			273		-		-		-		96		92		1,357		-		1,818
Classified			7,295		91		1,030		-		1,644		6,267		2,252		21		18,600
Total Commercial and Industrial		$	368,316	$	348,391	$	225,294	$	59,127	$	48,539	$	78,265	$	260,958	$	176	$	1,389,066
Paycheck Protection Program
Pass		$	-	$	5,359	$	14,220	$	-	$	-	$	-	$	-	$	-	$	19,579
Total Paycheck Protection Program		$	-	$	5,359	$	14,220	$	-	$	-	$	-	$	-	$	-	$	19,579
Commercial Mortgage
Pass		$	1,182,831	$	771,375	$	691,054	$	283,553	$	131,055	$	494,924	$	48,771	$	-	$	3,603,563
Special Mention			29,707		37,657		28,105		-		1,482		5,014		-		-		101,965
Classified			182		1,964		8,545		624		-		8,699		-		-		20,014
Total Commercial Mortgage		$	1,212,720	$	810,996	$	727,704	$	284,177	$	132,537	$	508,637	$	48,771	$	-	$	3,725,542
Construction
Pass		$	124,507	$	69,992	$	37,133	$	16,838	$	-	$	297	$	12,058	$	-	$	260,825
Total Construction		$	124,507	$	69,992	$	37,133	$	16,838	$	-	$	297	$	12,058	$	-	$	260,825
Lease Financing
Pass		$	16,959	$	17,823	$	11,408	$	9,768	$	6,379	$	6,444	$	-	$	-	$	68,781
Classified			-		-		-		-		710		-		-		-		710
Total Lease Financing		$	16,959	$	17,823	$	11,408	$	9,768	$	7,089	$	6,444	$	-	$	-	$	69,491
Total Commercial		$	1,722,502	$	1,252,561	$	1,015,759	$	369,910	$	188,165	$	593,643	$	321,787	$	176	$	5,464,503
Consumer
Residential Mortgage
Pass		$	827,909	$	1,304,831	$	1,035,285	$	321,208	$	138,214	$	1,023,841	$	-	$	-	$	4,651,288
Classified			-		-		-		-		552		1,232		-		-		1,784
Total Residential Mortgage		$	827,909	$	1,304,831	$	1,035,285	$	321,208	$	138,766	$	1,025,073	$	-	$	-	$	4,653,072
Home Equity
Pass		$	-	$	-	$	-	$	-	$	-	$	890	$	2,186,598	$	36,114	$	2,223,602
Classified			-		-		-		-		-		25		1,105		1,218		2,348
Total Home Equity		$	-	$	-	$	-	$	-	$	-	$	915	$	2,187,703	$	37,332	$	2,225,950
Automobile
Pass		$	405,440	$	216,039	$	100,608	$	84,052	$	45,301	$	18,366	$	-	$	-	$	869,806
Classified			121		260		23		43		92		51		-		-		590
Total Automobile		$	405,561	$	216,299	$	100,631	$	84,095	$	45,393	$	18,417	$	-	$	-	$	870,396
Other1
Pass		$	185,347	$	124,759	$	31,343	$	39,902	$	16,364	$	9,853	$	23,228	$	1,020	$	431,816
Classified			117		114		70		148		129		24		59		22		683
Total Other		$	185,464	$	124,873	$	31,413	$	40,050	$	16,493	$	9,877	$	23,287	$	1,042	$	432,499
Total Consumer		$	1,418,934	$	1,646,003	$	1,167,329	$	445,353	$	200,652	$	1,054,282	$	2,210,990	$	38,374	$	8,181,917
Total Loans and Leases		$	3,141,436	$	2,898,564	$	2,183,088	$	815,263	$	388,817	$	1,647,925	$	2,532,777	$	38,550	$	13,646,420

1.Comprised of other revolving credit, installment, and lease financing.

Schedule of Aging Analysis by Class of Loan and Lease Portfolio

The following presents by class, an aging analysis of the Company’s loan and lease portfolio as of June 30, 2023, and December 31, 2022.

(dollars in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Past Due 90 Days or More		Non- Accrual		Total Past Due and Non- Accrual		Current		Total Loans and Leases		Non- Accrual Loans and Leases that are Current 2
As of June 30, 2023
Commercial
Commercial and Industrial	$	202	$	252	$	—	$	17	$	471	$	1,502,205	$	1,502,676	$	17
Paycheck Protection Program		—		—		—		—		—		13,789		13,789		—
Commercial Mortgage		—		—		—		3,107		3,107		3,793,662		3,796,769		3,107
Construction		—		—		—		—		—		236,428		236,428		—
Lease Financing		—		—		—		—		—		62,779		62,779		—
Total Commercial		202		252		—		3,124		3,578		5,608,863		5,612,441		3,124
Consumer
Residential Mortgage		2,173		1,882		3,560		3,504		11,119		4,710,857		4,721,976		884
Home Equity		2,464		1,826		2,022		3,809		10,121		2,267,984		2,278,105		751
Automobile		10,830		1,668		577		—		13,075		865,692		878,767		—
Other 1		2,169		748		633		—		3,550		420,050		423,600		—
Total Consumer		17,636		6,124		6,792		7,313		37,865		8,264,583		8,302,448		1,635
Total	$	17,838	$	6,376	$	6,792	$	10,437	$	41,443	$	13,873,446	$	13,914,889	$	4,759
As of December 31, 2022
Commercial
Commercial and Industrial	$	252	$	9	$	—	$	37	$	298	$	1,388,768	$	1,389,066	$	37
Paycheck Protection Program		—		—		—		—		—		19,579		19,579		—
Commercial Mortgage		—		—		—		3,309		3,309		3,722,233		3,725,542		3,309
Construction		—		—		—		—		—		260,825		260,825		—
Lease Financing		—		—		—		—		—		69,491		69,491		—
Total Commercial		252		9		—		3,346		3,607		5,460,896		5,464,503		3,346
Consumer
Residential Mortgage		3,016		721		2,429		4,239		10,405		4,642,667		4,653,072		1,729
Home Equity		1,639		960		1,673		4,022		8,294		2,217,656		2,225,950		664
Automobile		13,293		1,988		589		—		15,870		854,526		870,396		—
Other 1		2,318		1,302		683		—		4,303		428,196		432,499		—
Total Consumer		20,266		4,971		5,374		8,261		38,872		8,143,045		8,181,917		2,393
Total	$	20,518	$	4,980	$	5,374	$	11,607	$	42,479	$	13,603,941	$	13,646,420	$	5,739

1.Comprised of other revolving credit, installment, and lease financing.

2.Represents non-accrual loans that are not past due 30 days or more; however, full payment of principal and interest is still not expected.

Schedule of Non-Accrual Loans and Leases

The following presents the non-accrual loans and leases as of June 30, 2023, and December 31, 2022.

	June 30, 2023						December 31, 2022
(dollars in thousands)	Non-accrual loans with a related ACL		Non-accrual loans without a related ACL		Total Non- accrual loans		Non-accrual loans with a related ACL		Non-accrual loans without a related ACL		Total Non- accrual loans
Commercial
Commercial and Industrial	$	17	$	—	$	17	$	37	$	—	$	37
Commercial Mortgage		—		3,107		3,107		—		3,309		3,309
Total Commercial		17		3,107		3,124		37		3,309		3,346
Consumer
Residential Mortgage		3,504		—		3,504		4,239		—		4,239
Home Equity		3,809		—		3,809		4,022		—		4,022
Total Consumer		7,313		—		7,313		8,261		—		8,261
Total	$	7,330	$	3,107	$	10,437	$	8,298	$	3,309	$	11,607

Schedule of Amortized Cost Basis and Financial Effect of Loan Modifications to Borrowers Experiencing Financial Difficulty

The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during three and six months ended June 30, 2023.

									%
					Payment				of
					Delay				Total
			Interest		and				Class of
	Term		Rate		Term				Loans and
(dollars in thousands)	Extension		Reduction		Extension		Total		Leases
Three Months Ended June 30, 2023
Commercial
Commercial and Industrial	$	91	$	—	$	—	$	91		0.01	%
Commercial Mortgage		—		952		—		952		0.03	%
Total Commercial		91		952		—		1,043		0.02	%
Consumer
Residential Mortgage		—		—		—		—		0.00	%
Home Equity		—		—		—		—		0.00	%
Automobile		2,654		—		—		2,654		0.30	%
Other1		215		—		—		215		0.05	%
Total Consumer		2,869		—		—		2,869		0.03	%
Total Loans and Leases	$	2,960	$	952	$	—	$	3,912		0.03	%
Six Months Ended June 30, 2023
Commercial
Commercial and Industrial	$	91	$	—	$	6,695	$	6,786		0.45	%
Commercial Mortgage		—		952		—		952		0.03	%
Total Commercial		91		952		6,695		7,738		0.14	%
Consumer
Residential Mortgage		134		—		—		134		0.00	%
Home Equity		139		—		—		139		0.01	%
Automobile		4,411		—		—		4,411		0.50	%
Other1		384		—		—		384		0.09	%
Total Consumer		5,068		—		—		5,068		0.06	%
Total Loans and Leases	$	5,159	$	952	$	6,695	$	12,806		0.09	%

1 Comprised of other revolving credit, installment and lease financing.

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2023.

	Weighted-Average		Weighted-Average		Weighted-Average
	Months of		Payment		Interest Rate
(dollars in thousands)	Term Extension		Deferral		Reduction
Three Months Ended June 30, 2023
Commercial
Commercial Mortgage		—	$	—		2.50	%
Consumer
Automobile		23		—		—
Other1		22		—		—
Six Months Ended June 30, 2023
Commercial
Commercial and Industrial		6	$	1,159		—	%
Commercial Mortgage		—		—		2.50
Consumer
Residential Mortgage		58		—		—
Home Equity		64		—		—
Automobile		23		—		—
Other1		22		—		—

1 Comprised of other revolving credit, installment and lease financing.

The following table presents the loan modifications made to borrowers experiencing financial difficulty that defaulted during the three and six months ended June 30, 2023.

	Term
(dollars in thousands)	Extension		Total
Three Months Ended June 30, 2023
Consumer
Automobile		23		23
Other1		15		15
Total Consumer		38		38
Total Loans and Leases	$	38	$	76
Six Months Ended June 30, 2023
Consumer
Automobile		23		23
Other1		15		15
Total Consumer		38		38
Total Loans and Leases	$	38	$	76

1 Comprised of other revolving credit, installment and lease financing.

Schedule of Aging Analysis of Loan Modifications Made to Borrowers Experiencing Financial Difficulty

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty as of June 30, 2023.

(dollars in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		Past Due 90 Days or More		Non- Accrual		Total
As of June 30, 2023
Commercial
Commercial and Industrial	$	6,786	$	—	$	—	$	—	$	—	$	6,786
Commercial Mortgage		952		—		—		—		—		952
Total Commercial		7,738		—		—		—		—		7,738
Consumer
Residential Mortgage		—		—		—		—		134		134
Home Equity		139		—		—		—		—		139
Automobile		4,061		327		—		23		—		4,411
Other1		333		36		15		—		—		384
Total Consumer		4,533		363		15		23		134		5,068
Total Loans and Leases		12,271	$	363	$	15	$	23	$	134	$	12,806

1 Comprised of other revolving credit, installment and lease financing.

Schedule of Loan Class and Year of Origination, Gross Charge-offs Recorded

The following table presents by loan class and year of origination, the gross charge-offs recorded during the three and six months ended June 30, 2023.

(dollars in thousands)	2023		2022		2021		2020		2019		Prior		Total
Three Months Ended June 30, 2023
Commercial
Commercial and Industrial	$	185	$	—	$	—	$	—	$	—	$	18	$	203
Total Commercial		185		—		—		—		—		18		203
Consumer
Residential Mortgage		—		—		—		—		—		6		6
Home Equity		—		—		—		—		—		5		5
Automobile		—		558		238		107		173		217		1,293
Other1		358		512		446		82		318		288		2,004
Total Consumer		358		1,070		684		189		491		516		3,308
Total	$	543	$	1,070	$	684	$	189	$	491	$	534	$	3,511
Six Months Ended June 30, 2023
Commercial
Commercial and Industrial	$	185	$	188	$	—	$	—	$	—	$	91	$	464
Total Commercial		185		188		—		—		—		91		464
Consumer
Residential Mortgage		—		—		—		—		—		6		6
Home Equity		—		—		—		—		—		55		55
Automobile		—		872		745		335		364		640		2,956
Other 1		358		1,333		1,011		202		713		722		4,339
Total Consumer		358		2,205		1,756		537		1,077		1,423		7,356
Total	$	543	$	2,393	$	1,756	$	537	$	1,077	$	1,514	$	7,820

1 Comprised of other revolving credit, installment and lease financing.

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Mortgage Servicing Rights (Tables)

6 Months Ended

Jun. 30, 2023

Transfers and Servicing of Financial Assets [Abstract]

Summary of Carrying Value Under the Fair Value Measurement Method

For the three and six months ended June 30, 2023, and June 30, 2022, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2023			2022			2023			2022
Balance at Beginning of Period	$	707		$	781		$	717		$	800
Change in Fair Value Due to Payoffs		(12	)		(34	)		(22	)		(53	)
Balance at End of Period	$	695		$	747		$	695		$	747

Summary of Carrying Value Under the Amortization Method

For the three months and six months ended June 30, 2023, and June 30, 2022, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2023			2022			2023			2022
Balance at Beginning of Period	$	21,395		$	23,187		$	21,902		$	21,451
Servicing Rights that Resulted From Asset Transfers		110			205			176			956
Amortization		(574	)		(599	)		(1,147	)		(1,443	)
Valuation Allowance Recovery (Provision)		—			—			—			1,829
Balance at End of Period	$	20,931		$	22,793		$	20,931		$	22,793
Valuation Allowance:
Balance at Beginning of Period	$	—		$	—		$	—		$	(1,829	)
Valuation Allowance Recovery (Provision)		—			—			—			1,829
Balance at End of Period	$	—		$	—		$	—		$	—
Fair Value of Mortgage Servicing Rights Accounted for    Under the Amortization Method
Beginning of Period	$	26,456		$	26,088		$	27,323		$	21,451
End of Period	$	26,327		$	28,314		$	26,327		$	28,314

Schedule of Key Data and Assumptions Used in Estimating the Fair Value

The key data and assumptions used in estimating the fair value of the Company’s mortgage servicing rights as of June 30, 2023, and December 31, 2022, were as follows:

	June 30, 2023			December 31, 2022
Weighted-Average Constant Prepayment Rate 1		3.93	%		4.02	%
Weighted-Average Life (in years)		9.61			9.64
Weighted-Average Note Rate		3.62	%		3.60	%
Weighted-Average Discount Rate 2		9.71	%		9.93	%

1.Represents annualized loan prepayment rate assumption.

2.Derived from multiple interest rate scenarios that incorporate a spread to a market yield curve and market volatilities.

Schedule of Sensitivity Analysis of the Fair Value

A sensitivity analysis of the Company’s fair value of mortgage servicing rights to changes in certain key assumptions as of June 30, 2023, and December 31, 2022, is presented in the following table.

(dollars in thousands)	June 30, 2023			December 31, 2022
Constant Prepayment Rate
Decrease in fair value from 25 basis points (“bps”) adverse change	$	(335	)	$	(346	)
Decrease in fair value from 50 bps adverse change		(663	)		(686	)
Discount Rate
Decrease in fair value from 25 bps adverse change		(306	)		(316	)
Decrease in fair value from 50 bps adverse change		(606	)		(626	)

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Affordable Housing Projects Tax Credit Partnerships (Tables)

6 Months Ended

Jun. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Expected Payments for Unfunded Affordable Housing Commitments

As of June 30, 2023, the expected payments for unfunded affordable housing commitments were as follows:

(dollars in thousands)	Amount
2023	$	22,653
2024		24,731
2025		24,115
2026		156
2027		133
Thereafter		12,721
Total Unfunded Commitments	$	84,509

Schedule of Tax Credits and Other Tax Benefits Recognized and Amortization Expense Related to Affordable Housing

The following table presents tax credits and other tax benefits recognized and amortization expense related to affordable housing for the three and six months ended June 30, 2023, and June 30, 2022.

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2023		2022		2023		2022
Effective Yield Method
Tax Credits and Other Tax Benefits Recognized	$	1,457	$	1,528	$	2,915	$	3,066
Amortization Expense in Provision for Income Taxes		1,333		1,296		2,666		2,593
Proportional Amortization Method
Tax Credits and Other Tax Benefits Recognized	$	5,438	$	3,794	$	10,876	$	7,579
Amortization Expense in Provision for Income Taxes		4,713		3,265		9,426		6,529

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Securities Sold Under Agreements to Repurchase (Tables)

6 Months Ended

Jun. 30, 2023

Securities Sold under Agreements to Repurchase [Abstract]

Remaining Contractual Maturities of Repurchase Agreements by Class of Collateral Pledged

The following table presents the remaining contractual maturities of the Company’s repurchase agreements as of June 30, 2023, and December 31, 2022, disaggregated by the class of collateral pledged.

	Remaining Contractual Maturity of Repurchase Agreements
(dollars in thousands)	Up to  90 days		91-365 days		1-3 Years		After 3 Years		Total
June 30, 2023
Class of Collateral Pledged:
Debt Securities Issued by States and Political Subdivisions	$	—	$	—	$	490	$	—	$	490
Mortgage-Backed Securities:
Residential - Government Agencies		—		—		34,014		—		34,014
Residential - U.S. Government-Sponsored Enterprises		—		—		390,986		300,000		690,986
Total	$	—	$	—	$	425,490	$	300,000	$	725,490
December 31, 2022
Class of Collateral Pledged:
Debt Securities Issued by States and Political Subdivisions	$	—	$	—	$	—	$	490	$	490
Mortgage-Backed Securities:
Residential - Government Agencies		—		—		28,673		—		28,673
Residential - U.S. Government-Sponsored Enterprises		—		—		396,327		300,000		696,327
Total	$	—	$	—	$	425,000	$	300,490	$	725,490

Schedule of Assets and Liabilities Subject to an Enforceable Master Netting Arrangement or Repurchase Agreements

The following table presents the assets and liabilities subject to an enforceable master netting arrangement, or repurchase agreements as of June 30, 2023, and December 31, 2022. The swap agreements the Company has with our commercial banking customers are not subject to an enforceable master netting arrangement, and therefore, are excluded from this table. Centrally cleared swap agreements between the Company and institutional counterparties are also excluded from this table. See Note 11 Derivative Financial Instruments for more information on swap agreements.

	(i)		(ii)		(iii) = (i)-(ii)		(iv)				(v) = (iii)-(iv)
							Gross Amounts Not Offset in the Statements of Condition
(dollars in thousands)	Gross Amounts Recognized in the Statements  of Condition		Gross Amounts Offset in the Statements of Condition		Net Amounts Presented in the Statements  of Condition		Netting Adjustments per Master Netting Arrangements		Fair Value of Collateral Pledged/ Received 1		Net Amount
June 30, 2023
Assets:
Interest Rate Swap Agreements:
Institutional Counterparties	$	157,910	$	—	$	157,910	$	157,910	$	—	$	—
Liabilities:
Interest Rate Swap Agreements:
Institutional Counterparties		4,230		—	$	4,230		4,230		—		—
Repurchase Agreements:
Private Institutions		725,000		—		725,000		—		725,000		—
Government Entities		490		—		490		—		490		—
Total Repurchase Agreements	$	725,490	$	—	$	725,490	$	—	$	725,490	$	—
December 31, 2022
Assets:
Interest Rate Swap Agreements:
Institutional Counterparties	$	42,339	$	—	$	42,339	$	42,339	$	—	$	—
Liabilities:
Interest Rate Swap Agreements:
Institutional Counterparties		3,554		—		3,554		3,554		—		—
Repurchase Agreements:
Private Institutions		725,000		—		725,000		—		725,000		—
Government Entities		490		—		490		—		490		—
Total Repurchase Agreements	$	725,490	$	—	$	725,490	$	—	$	725,490	$	—

1.The application of collateral cannot reduce the net amount below zero. Therefore, excess collateral is not reflected in this table. For interest rate swap agreements, the fair value of investment securities pledged was $3.5 million and $34.8 million as of June 30, 2023, and December 31, 2022, respectively. For repurchase agreements with private institutions, the fair value of investment securities pledged was $763.3 million and $755.9 million as of June 30, 2023, and December 31, 2022, respectively. For repurchase agreements with government entities, the fair value of investment securities pledged was $0.8 million as of June 30, 2023, and December 31, 2022.

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2023

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Components of Other Comprehensive Income

The following table presents the components of other comprehensive income (loss) for the three and six months ended June 30, 2023, and June 30, 2022:

(dollars in thousands)	Before Tax			Tax Effect			Net of Tax
Three Months Ended June 30, 2023
Net Unrealized Gains (Losses) on Investment Securities:
Net Unrealized Gains (Losses) Arising During the Period	$	(31,586	)	$	(8,371	)	$	(23,215	)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)    that (Increase) Decrease Net Income:
Amortization of Unrealized Holding (Gains) Losses on Held-to-    Maturity Securities 1		6,801			1,803			4,998
Net Unrealized Gains (Losses) on Investment Securities		(24,785	)		(6,568	)		(18,217	)
Defined Benefit Plans:
Amortization of Net Actuarial Losses (Gains)		177			46			131
Amortization of Prior Service Credit		(62	)		(15	)		(47	)
Defined Benefit Plans, Net		115			31			84
Other Comprehensive Income (Loss)	$	(24,670	)	$	(6,537	)	$	(18,133	)
Three Months Ended June 30, 2022
Net Unrealized Gains (Losses) on Investment Securities:
Net Unrealized Gains (Losses) Arising During the Period	$	(166,878	)	$	(44,233	)	$	(122,645	)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)    that (Increase) Decrease Net Income:
Amortization of Unrealized Holding (Gains) Losses on Held-to-    Maturity Securities 1		(3	)		(1	)		(2	)
Net Unrealized Gains (Losses) on Investment Securities		(166,881	)		(44,234	)		(122,647	)
Defined Benefit Plans:
Amortization of Net Actuarial Losses (Gains)		542			145			397
Amortization of Prior Service Credit		(61	)		(16	)		(45	)
Defined Benefit Plans, Net		481			129			352
Other Comprehensive Income (Loss)	$	(166,400	)	$	(44,105	)	$	(122,295	)
Six Months Ended June 30, 2023
Net Unrealized Gains (Losses) on Investment Securities:
Net Unrealized Gains (Losses) Arising During the Period	$	1,332		$	352		$	980
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)    that (Increase) Decrease Net Income:
Amortization of Unrealized Holding (Gains) Losses on Held-to-    Maturity Securities 1		13,714			3,635			10,079
Net Unrealized Gains (Losses) on Investment Securities		15,046			3,987			11,059
Defined Benefit Plans:
Amortization of Net Actuarial Losses (Gains)		352			93			259
Amortization of Prior Service Credit		(123	)		(32	)		(91	)
Defined Benefit Plans, Net		229			61			168
Other Comprehensive Income (Loss)	$	15,275		$	4,048		$	11,227
Six Months Ended June 30, 2022
Net Unrealized Gains (Losses) on Investment Securities:
Net Unrealized Gains (Losses) Arising During the Period	$	(412,026	)	$	(109,208	)	$	(302,818	)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)    that (Increase) Decrease Net Income:
Amortization of Unrealized Holding (Gains) Losses on Held-to-    Maturity Securities 1		63			16			47
Net Unrealized Gains (Losses) on Investment Securities		(411,963	)		(109,192	)		(302,771	)
Defined Benefit Plans:
Amortization of Net Actuarial Losses (Gains)		1,084			288			796
Amortization of Prior Service Credit		(123	)		(32	)		(91	)
Defined Benefit Plans, Net		961			256			705
Other Comprehensive Income (Loss)	$	(411,002	)	$	(108,936	)	$	(302,066	)

1These amount relates to the amortization/accretion of unrealized net gains and losses related to the Company’s reclassification of available-for-sale investment securities to the held-to-maturity category. The unrealized net gains/losses will be amortized/accreted over the remaining life of the investment securities as an adjustment of yield.

Schedule of Accumulated Other Comprehensive Income (Loss)

he following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the three and six months ended June 30, 2023, and June 30, 2022:

(dollars in thousands)	Investment Securities- Available- for-Sale			Investment Securities- Held-to-Maturity			Defined Benefit Plans			Accumulated Other Comprehensive Income (Loss)
Three Months Ended June 30, 2023
Balance at Beginning of Period	$	(216,588	)	$	(163,716	)	$	(24,994	)	$	(405,298	)
Other Comprehensive Income (Loss) Before Reclassifications		(23,215	)		—			—			(23,215	)
Amounts Reclassified from Accumulated Other    Comprehensive Income (Loss)		—			4,998			84			5,082
Total Other Comprehensive Income (Loss)		(23,215	)		4,998			84			(18,133	)
Balance at End of Period	$	(239,803	)	$	(158,718	)	$	(24,910	)	$	(423,431	)
Three Months Ended June 30, 2022
Balance at Beginning of Period	$	(213,113	)	$	103		$	(33,143	)		(246,153	)
Other Comprehensive Income (Loss) Before Reclassifications		(122,645	)		—			—			(122,645	)
Amounts Reclassified from Accumulated Other    Comprehensive Income (Loss)		—			(2	)		352			350
Total Other Comprehensive Income (Loss)		(122,645	)		(2	)		352			(122,295	)
Balance at End of Period	$	(335,758	)	$	101		$	(32,791	)	$	(368,448	)
Six Months Ended June 30, 2023
Balance at Beginning of Period	$	(240,783	)	$	(168,797	)	$	(25,078	)	$	(434,658	)
Other Comprehensive Income (Loss) Before Reclassifications		980			—			—			980
Amounts Reclassified from Accumulated Other    Comprehensive Income (Loss)		—			10,079			168			10,247
Total Other Comprehensive Income (Loss)		980			10,079			168			11,227
Balance at End of Period	$	(239,803	)	$	(158,718	)	$	(24,910	)	$	(423,431	)
Six Months Ended June 30, 2022
Balance at Beginning of Period	$	(32,940	)	$	54		$	(33,496	)		(66,382	)
Other Comprehensive Income (Loss) Before Reclassifications		(302,818	)		—			—			(302,818	)
Amounts Reclassified from Accumulated Other    Comprehensive Income (Loss)		—			47			705			752
Total Other Comprehensive Income (Loss)		(302,818	)		47			705			(302,066	)
Balance at End of Period	$	(335,758	)	$	101		$	(32,791	)	$	(368,448	)

Reclassification out of Accumulated Other Comprehensive Income

he following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2023, and June 30, 2022:

Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)1						Affected Line Item in the Statement Where Net Income Is Presented
	Three Months Ended June 30,
(dollars in thousands)	2023			2022
Amortization of Unrealized Holding Gains (Losses) on    Investment Securities Held-to-Maturity	$	(6,801	)	$	3		Interest Income
		1,803			(1	)	Provision for Income Tax
		(4,998	)		2		Net of Tax
Amortization of Defined Benefit Plan Items
Prior Service Credit 2		62			61
Net Actuarial Losses 2		(177	)		(542	)
		(115	)		(481	)	Total Before Tax
		31			129		Provision for Income Tax
		(84	)		(352	)	Net of Tax
Total Reclassifications for the Period	$	(5,082	)	$	(350	)	Net of Tax
Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)1						Affected Line Item in the Statement Where Net Income Is Presented
	Six Months Ended June 30,
(dollars in thousands)	2023			2022
Amortization of Unrealized Holding Gains (Losses) on    Investment Securities Held-to-Maturity	$	(13,714	)	$	(63	)	Interest Income
		3,635			16		Provision for Income Tax
		(10,079	)		(47	)	Net of Tax
Amortization of Defined Benefit Plan Items
Prior Service Credit 2		123			123
Net Actuarial Losses 2		(352	)		(1,084	)
		(229	)		(961	)	Total Before Tax
		61			256		Provision for Income Tax
		(168	)		(705	)	Net of Tax
Total Reclassifications for the Period	$	(10,247	)	$	(752	)	Net of Tax

1.Amounts in parentheses indicate reductions to net income.

2.These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost and are included in other noninterest expense on the consolidated statements of income.

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Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Reconciliation of Weighted Average Number of Common Shares Used in the Calculation of Basic and Diluted Earnings Per Common Share and Antidilutive Stock Options and Restricted Stock Outstanding

Earnings per common share is computed using the two-class method. The following is a reconciliation of the weighted average number of common shares used in the calculation of basic and diluted earnings per common share and antidilutive stock options and restricted stock outstanding for the three and six months ended June 30, 2023, and June 30, 2022:

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands, except shares and per share amounts)	2023		2022		2023		2022
Numerator:
Net Income Available to Common Shareholders	$	44,092	$	54,893	$	88,965	$	107,758
Denominator:
Weighted Average Common Shares Outstanding - Basic		39,241,559		39,693,593		39,259,279		39,722,985
Dilutive Effect of Equity Based Awards		75,962		149,015		123,080		173,715
Weighted Average Common Shares Outstanding - Diluted		39,317,521		39,842,608		39,382,359		39,896,700
Earnings Per Common Share:
Basic	$	1.12	$	1.38	$	2.27	$	2.71
Diluted	$	1.12	$	1.38	$	2.26	$	2.70
Antidilutive Stock Options and Restricted Stock Outstanding		411,640		201,422		226,646		160,670

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Business Segments (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Selected Business Segment Financial Information

Selected business segment financial information as of and for the three and six months ended June 30, 2023, and June 30, 2022, were as follows:

(dollars in thousands)	Consumer Banking			Commercial Banking			Treasury and Other			Consolidated Total
Three Months Ended June 30, 2023
Net Interest Income (Loss)	$	99,814		$	53,673		$	(29,139	)	$	124,348
Provision for Credit Losses		1,392			(15	)		1,123			2,500
Net Interest Income (Loss) After Provision for Credit Losses		98,422			53,688			(30,262	)		121,848
Noninterest Income		31,944			7,939			3,372			43,255
Noninterest Expense		(81,275	)		(19,302	)		(3,459	)		(104,036	)
Income (Loss) Before Provision for Income Taxes		49,091			42,325			(30,349	)		61,067
Provision for Income Taxes		(12,645	)		(10,710	)		8,349			(15,006	)
Net Income (Loss)	$	36,446		$	31,615		$	(22,000	)	$	46,061
Total Assets as of June 30, 2023	$	8,739,294		$	5,714,929		$	10,493,713		$	24,947,936
Three Months Ended June 30, 2022 1
Net Interest Income	$	76,872		$	49,791		$	6,239		$	132,902
Provision for Credit Losses		632			(1	)		(3,131	)		(2,500	)
Net Interest Income After Provision for Credit Losses		76,240			49,792			9,370			135,402
Noninterest Income		31,868			8,363			1,927			42,158
Noninterest Expense		(82,856	)		(17,014	)		(3,069	)		(102,939	)
Income Before Provision for Income Taxes		25,252			41,141			8,228			74,621
Provision for Income Taxes		(6,339	)		(10,252	)		(1,168	)		(17,759	)
Net Income	$	18,913		$	30,889		$	7,060		$	56,862
Total Assets as of June 30, 2022 1	$	8,205,352		$	5,339,224		$	9,688,123		$	23,232,699
Six Months Ended June 30, 2023
Net Interest Income (Loss)	$	197,822		$	110,378		$	(47,897	)	$	260,303
Provision for Credit Losses		4,061			(16	)		455			4,500
Net Interest Income (Loss) After Provision for Credit Losses		193,761			110,394			(48,352	)		255,803
Noninterest Income		63,098			16,588			4,306			83,992
Noninterest Expense		(166,348	)		(39,591	)		(10,016	)		(215,955	)
Income (Loss) Before Provision for Income Taxes		90,511			87,391			(54,062	)		123,840
Provision for Income Taxes		(23,268	)		(21,503	)		13,834			(30,937	)
Net Income (Loss)	$	67,243		$	65,888		$	(40,228	)	$	92,903
Total Assets as of June 30, 2023	$	8,739,294		$	5,714,929		$	10,493,713		$	24,947,936
Six Months Ended June 30, 2022 1
Net Interest Income	$	147,233		$	96,140		$	14,792		$	258,165
Provision for Credit Losses		2,315			(198	)		(10,117	)		(8,000	)
Net Interest Income After Provision for Credit Losses		144,918			96,338			24,909			266,165
Noninterest Income		63,837			18,561			3,311			85,709
Noninterest Expense		(164,666	)		(35,683	)		(6,464	)		(206,813	)
Income Before Provision for Income Taxes		44,089			79,216			21,756			145,061
Provision for Income Taxes		(11,053	)		(19,449	)		(2,863	)		(33,365	)
Net Income	$	33,036		$	59,767		$	18,893		$	111,696
Total Assets as of June 30, 2022 1	$	8,205,352		$	5,339,224		$	9,688,123		$	23,232,699
1  Certain prior period information has been reclassified to conform to current presentation.

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of the Notional Amount and Fair Value of the Derivative Financial Instruments

The notional amount and fair value of the Company’s derivative financial instruments as of June 30, 2023, and December 31, 2022, were as follows:

	June 30, 2023					December 31, 2022
(dollars in thousands)	Notional Amount		Fair Value			Notional Amount		Fair Value
Derivatives designated as hedging instruments
Interest Rate Swap Agreements	$	200,000	$	434		$	—	$	—
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments		11,353		225			3,860		58
Forward Commitments		11,531		32			3,256		6
Interest Rate Swap Agreements
Receive Fixed/Pay Variable Swaps		1,911,911		(154,136	)		1,821,433		(160,914	)
Pay Fixed/Receive Variable Swaps		1,911,911		153,680			1,821,433		38,785
Foreign Exchange Contracts		349		1			52,065		1,745
Conversion Rate Swap Agreement 1		141,804		—			124,752	NA

1The conversation rate swap agreements were valued at zero as further reductions to the conversion rate were deemed neither probable nor reasonable estimable.

Derivative Financial Instruments, their Fair Values, and Balance Sheet Location

The following table presents the Company’s derivative financial instruments, their fair values, and their location in the consolidated statements of condition as of June 30, 2023, and December 31, 2022:

	June 30, 2023				December 31, 2022
	Asset		Liability		Asset		Liability
(dollars in thousands)	Derivatives		Derivatives		Derivatives		Derivatives
Derivatives designated as hedging instruments
Interest Rate Swap Agreements	$	434	$	—	$	—	$	—
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments		225		—	$	64	$	6
Forward Commitments		33		1		10		4
Interest Rate Swap Agreements		162,060		162,516		45,831		167,960
Foreign Exchange Contracts		1		—		1,812		67
Total	$	162,753	$	162,517	$	47,717	$	168,037

1Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the consolidated statements of condition. The Company’s free-standing derivative financial instruments are required to be carried at their fair value on the Company’s consolidated statements of condition.

Derivative Financial Instruments and the Amount and Location of the Net Gains or Losses Recognized in the Statements of Income

The following table presents the Company’s derivative financial instruments and the amount and location of the net gains or losses recognized in the consolidated statements of income for the three and six months ended June 30, 2023, and June 30, 2022:

	Location of
	Net Gains (Losses)	Three Months Ended					Six Months Ended
	Recognized in the	June 30,					June 30,
(dollars in thousands)	Statements of Income	2023			2022		2023			2022
Derivatives designated as hedging instruments
Recognized on Interest Rate Swap Agreements	Interest and Fees on Loans and Leases	$	434		$	—	$	434		$	—
Recognized on Hedged Item	Interest and Fees on Loans and Leases		(435	)	$	—		(435	)	$	—
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments	Mortgage Banking		274			66		478			(1,013	)
Forward Commitments	Mortgage Banking		92			314		61			2,221
Interest Rate Swap Agreements	Other Noninterest Income		(2	)		23		(18	)		17
Foreign Exchange Contracts	Other Noninterest Income		802			232		1,643			506
Total		$	1,165		$	635	$	2,163		$	1,731

Schedule of derivative instruments in statement of financial position related to cumulative basis adjustment for fair value hedges

The following amounts were recorded on the consolidated statement of financial condition related to the cumulative basis adjustment for fair value hedges as of June 30, 2023:

Derivative Financial Instruments
Designated as Hedging Instruments
Line Item in the Consolidated Statement of Condition	Carrying Amount of the Hedged Assets			Cumulative Amount of Fair Value Hedging Adjustment Included In the Carrying Amount of the Hedged Assets
(dollars in thousands)	June 30, 2023			June 30, 2023
Loans and Leases1	$	(435	)	$	(435	)

1 These amounts were included in the amortized cost basis of closed portfolios of loans used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At June 30, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $3.3 billion.

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Credit Commitments

The Company’s credit commitments as of June 30, 2023, and December 31, 2022, were as follows:

(dollars in thousands)	June 30, 2023		December 31, 2022
Unfunded Commitments to Extend Credit	$	3,597,648	$	3,592,872
Standby Letters of Credit		100,495		129,512
Commercial Letters of Credit		20,687		24,030
Total Credit Commitments	$	3,718,830	$	3,746,414

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Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis

The Table below presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2023, and December 31, 2022.

	Quoted Prices in Active Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
(dollars in thousands)	(Level 1)		(Level 2)		(Level 3)		Total
June 30, 2023
Assets:
Investment Securities Available-for-Sale
Debt Securities Issued by the U.S. Treasury and Government    Agencies	$	142,478	$	78,603	$	—	$	221,081
Debt Securities Issued by States and Political Subdivisions		—		96,540		—		96,540
Debt Securities Issued by U.S. Government-Sponsored    Enterprises		—		1,637		—		1,637
Debt Securities Issued by Corporations		—		788,754		—		788,754
Mortgage-Backed Securities:
Residential - Government Agencies		—		675,204		—		675,204
Residential - U.S. Government-Sponsored Enterprises		—		744,714		—		744,714
Commercial - Government Agencies		—		138,793		—		138,793
Total Mortgage-Backed Securities		—		1,558,711		—		1,558,711
Total Investment Securities Available-for-Sale		142,478		2,524,245		—		2,666,723
Loans Held for Sale		—		3,359		—		3,359
Mortgage Servicing Rights		—		—		695		695
Other Assets		53,202		—		—		53,202
Derivatives 1		—		34		162,719		162,753
Total Assets Measured at Fair Value on a Recurring Basis as of    June 30, 2023	$	195,680	$	2,527,638	$	163,414	$	2,886,732
Liabilities:
Derivatives 1	$	—	$	—	$	162,517	$	162,517
Total Liabilities Measured at Fair Value on a Recurring Basis as of   June 30, 2023	$	—	$	—	$	162,517	$	162,517
December 31, 2022
Assets:
Investment Securities Available-for-Sale
Debt Securities Issued by the U.S. Treasury    and Government Agencies	$	141,944	$	91,962	$	—	$	233,906
Debt Securities Issued by States and Political Subdivisions		—		95,265		—		95,265
Debt Securities Issued by    U.S. Government-Sponsored Enterprises		—		48,628		—		48,628
Debt Securities Issued by Corporations		—		794,658		—		794,658
Mortgage-Backed Securities:
Residential - Government Agencies		—		732,828		—		732,828
Residential - U.S. Government-Sponsored Enterprises		—		793,871		—		793,871
Commercial - Government Agencies or Sponsored Agencies		—		145,667		—		145,667
Total Mortgage-Backed Securities		—		1,672,366		—		1,672,366
Total Investment Securities Available-for-Sale		141,944		2,702,879		—		2,844,823
Loans Held for Sale		—		1,035		—		1,035
Mortgage Servicing Rights		—		—		717		717
Other Assets		47,755		—		—		47,755
Derivatives 1		—		1,822		45,895		47,717
Total Assets Measured at Fair Value on a    Recurring Basis as of December 31, 2022	$	189,699	$	2,705,736	$	46,612	$	2,942,047
Liabilities:
Derivatives 1	$	—	$	70	$	167,967	$	168,037
Total Liabilities Measured at Fair Value on a    Recurring Basis as of December 31, 2022	$	—	$	70	$	167,967	$	168,037

1 The fair value of each class of derivatives is shown in Note 11 Derivative Financial Instruments.

Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis

For the three and six months ended June 30, 2023, and June 30, 2022, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis were as follows:

(dollars in thousands)	Mortgage Servicing Rights 1			Net Derivative Assets and Liabilities 2
Three Months Ended June 30, 2023
Balance as of April 1, 2023	$	707		$	(52,838	)
Realized and Unrealized Net Gains (Losses):
Included in Net Income		(12	)		272
Transfers to Loans Held for Sale		—			(223	)
Variation Margin Payments		—			52,991
Balance as of June 30, 2023	$	695		$	202
Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of June 30, 2023	$	—		$	272
Three Months Ended June 30, 2022
Balance as of April 1, 2022	$	781		$	(50,429	)
Realized and Unrealized Net Gains (Losses):
Included in Net Income3		(34	)		90
Transfers to Loans Held for Sale		—			58
Variation Margin Payments		—			(32,667	)
Balance as of June 30, 2022	$	747		$	(82,948	)
Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of June 30, 2022	$	—		$	89
Six Months Ended June 30, 2023
Balance as of January 1, 2023	$	717			(122,071	)
Realized and Unrealized Net Gains (Losses):
Included in Net Income		(22	)		460
Transfers to Loans Held for Sale		—			(311	)
Variation Margin Payments		—			122,124
Balance as of June 30, 2023	$	695			202
Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of June 30, 2023	$	—		$	460
Six Months Ended June 30, 2022
Balance as of January 1, 2023	$	800		$	23,904
Realized and Unrealized Net Gains (Losses):
Included in Net Income		(53	)		(996	)
Transfers to Loans Held for Sale		—			172
Variation Margin Payments		—			(106,028	)
Balance as of June 30, 2022	$	747		$	(82,948	)
Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held as of June 30, 2022	$	—		$	(996	)

1 Realized and unrealized gains and losses related to mortgage servicing rights are reported as a component of mortgage banking income in the Company’s consolidated statements of income.

2 Realized and unrealized gains and losses related to interest rate lock commitments are reported as a component of mortgage banking income in the Company’s consolidated statements of income. Realized and unrealized gains and losses related to interest rate swap agreements are reported as a component of other noninterest income in the Company’s consolidated statements of income.

Summary of the Significant Unobservable Inputs

For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of June 30, 2023, and December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:

(dollars in thousands)	Valuation  Technique	Description	Range						Weighted Average1			Fair Value
June 30, 2023
Mortgage Servicing Rights	Discounted Cash Flow	Constant Prepayment Rate		3.05	%	-	11.06	%		3.93	%	$	27,022
		Discount Rate		9.22	%	-	10.92	%		9.71	%	$	—
Net Derivative Assets and Liabilities:
Interest Rate Lock Commitments	Pricing Model	Closing Ratio		84.10	%	-	99.00	%		92.30	%	$	225
Interest Rate Swap Agreements	Discounted Cash Flow	Credit Factor		0.00	%	-	4.03	%		0.01	%	$	(23	)
December 31, 2022
Mortgage Servicing Rights	Discounted Cash Flow	Constant Prepayment Rate		2.81	%	-	10.63	%		4.02	%	$	28,040
		Discount Rate		8.70	%	-	10.40	%		9.93	%	$	—
Net Derivative Assets and Liabilities:
Interest Rate Lock Commitments	Pricing Model	Closing Ratio		84.10	%	-	99.00	%		92.86	%	$	58
Interest Rate Swap Agreements	Discounted Cash Flow	Credit Factor		0.00	%	-	0.49	%		0.01	%	$	(122,129	)

1 Unobservable inputs for mortgage servicing rights and interest rate lock commitments were weighted by loan amount. Unobservable inputs for interest rate swap agreements were weighted by fair value.

Schedule of Assets Measured at Fair Value on Nonrecurring Basis

The Company may be required periodically to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower-of-cost-or-fair value accounting or impairment write-downs of individual assets. The following table represents the assets measured at fair value on a nonrecurring basis as of June 30, 2023, and December 31, 2022.

(dollars in thousands)	Fair Value Hierarchy	Net Carrying Amount		Valuation Allowance
June 30, 2023
Mortgage Servicing Rights - amortization method	Level 3	$	20,931	$	—
December 31, 2022
Mortgage Servicing Rights - amortization method	Level 3	$	21,902	$	—

Schedule of Difference between Aggregate Fair Value and Aggregate Unpaid Principal Balance

The following table reflects the difference between the aggregate fair value and the aggregate unpaid principal balance of the Company’s residential mortgage loans held for sale as of June 30, 2023, and December 31, 2022.

(dollars in thousands)	Aggregate Fair Value		Aggregate Unpaid Principal		Aggregate Fair Value Less Aggregate Unpaid Principal
June 30, 2023
Loans Held for Sale	$	3,359	$	3,348	$	11
December 31, 2022
Loans Held for Sale	$	1,035	$	1,016	$	19

Schedule of Carrying Amount, Fair Value, and Fair Value Hierarchy of Financial Instruments

The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments not recorded at fair value on a recurring basis as of June 30, 2023, and December 31, 2022. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For non-marketable equity securities such as Federal Home Loan Bank of Des Moines and Federal Reserve Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only to the respective issuing government supported institution or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity.

					Fair Value Measurements
	Carrying				Quoted Prices  in Active  Markets for Identical Assets or Liabilities		Significant Other Observable Inputs		Significant Unobservable Inputs
(dollars in thousands)	Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2023
Financial Instruments - Assets
Investment Securities Held-to-Maturity	$	5,202,698	$	4,411,003	$	114,012	$	4,296,991	$	—
Loans		13,652,102		12,640,810		—		—		12,640,810
Financial Instruments - Liabilities
Time Deposits		2,664,679		2,628,658		—		2,628,658		—
Securities Sold Under Agreements to Repurchase		725,490		716,935		—		716,935		—
Other Debt 1		1,750,000		1,731,736		—		1,731,736		—
December 31, 2022
Financial Instruments – Assets
Investment Securities Held-to-Maturity	$	5,414,139	$	4,615,393	$	113,417	$	4,501,976	$	—
Loans		13,371,226		12,386,615		—		—		12,386,615
Financial Instruments – Liabilities
Time Deposits		1,705,737		1,679,777		—		1,679,777		—
Securities Sold Under Agreements to Repurchase		725,490		718,614		—		718,614		—
Other Debt 1		400,000		402,877		—		402,877		—

1 Excludes finance lease obligations.

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Summary of Significant Accounting Policies - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023
Summary Of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adoption date	Jan. 31, 2023
Change in accounting principle, accounting standards update, adopted [true false]	true
Accounting standards update [extensible enumeration]	ASU 2022-02

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Cash and Cash Equivalents - Schedule of Reconciliation of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Cash and Cash Equivalents [Abstract]
Interest-Bearing Deposits in Other Banks	$ 2,261	$ 3,724
Funds Sold	1,273,109	81,364
Cash and Due From Banks	398,072	$ 316,679
Total Cash and Cash Equivalents	$ 1,673,442

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Investment Securities - Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Available-for-Sale:
Available-for-Sale: Amortized Cost	$ 2,993,004	$ 3,172,436
Available-for-Sale: Gross Unrealized Gains	1,340	1,851
Available-for-Sale: Gross Unrealized Losses	(327,621)	(329,464)
Available-for-Sale: Fair Value	2,666,723	2,844,823
Held-to-Maturity:
Held-to-Maturity: Amortized Cost	5,202,698	5,414,139
Held-to-Maturity: Gross Unrealized Gains	18	43
Held-to-Maturity: Gross Unrealized Losses	(791,713)	(798,789)
Held-to-Maturity: Fair Value	4,411,003	4,615,393
Debt Securities Issued by the U.S. Treasury and Government Agencies
Available-for-Sale:
Available-for-Sale: Amortized Cost	235,178	248,335
Available-for-Sale: Gross Unrealized Gains	472	638
Available-for-Sale: Gross Unrealized Losses	(14,569)	(15,067)
Available-for-Sale: Fair Value	221,081	233,906
Held-to-Maturity:
Held-to-Maturity: Amortized Cost	131,678	131,619
Held-to-Maturity: Gross Unrealized Losses	(17,666)	(18,202)
Held-to-Maturity: Fair Value	114,012	113,417
Debt Securities Issued by States and Political Subdivisions
Available-for-Sale:
Available-for-Sale: Amortized Cost	107,621	107,689
Available-for-Sale: Gross Unrealized Gains	142	158
Available-for-Sale: Gross Unrealized Losses	(11,223)	(12,582)
Available-for-Sale: Fair Value	96,540	95,265
Debt Securities Issued by Government-Sponsored Enterprises
Available-for-Sale:
Available-for-Sale: Amortized Cost	1,757	48,807
Available-for-Sale: Gross Unrealized Losses	(120)	(179)
Available-for-Sale: Fair Value	1,637	48,628
Debt Securities Issued by Corporations
Available-for-Sale:
Available-for-Sale: Amortized Cost	844,587	850,585
Available-for-Sale: Gross Unrealized Gains	552	809
Available-for-Sale: Gross Unrealized Losses	(56,385)	(56,736)
Available-for-Sale: Fair Value	788,754	794,658
Held-to-Maturity:
Held-to-Maturity: Amortized Cost	12,094	17,014
Held-to-Maturity: Gross Unrealized Losses	(2,174)	(2,534)
Held-to-Maturity: Fair Value	9,920	14,480
Residential - Government Agencies
Available-for-Sale:
Available-for-Sale: Amortized Cost	771,006	828,798
Available-for-Sale: Gross Unrealized Gains	174	245
Available-for-Sale: Gross Unrealized Losses	(95,976)	(96,215)
Available-for-Sale: Fair Value	675,204	732,828
Held-to-Maturity:
Held-to-Maturity: Amortized Cost	1,761,490	1,848,239
Held-to-Maturity: Gross Unrealized Gains	11	35
Held-to-Maturity: Gross Unrealized Losses	(290,874)	(294,047)
Held-to-Maturity: Fair Value	1,470,627	1,554,227
Residential - U.S. Government-Sponsored Enterprises
Available-for-Sale:
Available-for-Sale: Amortized Cost	869,381	919,980
Available-for-Sale: Gross Unrealized Gains		1
Available-for-Sale: Gross Unrealized Losses	(124,667)	(126,110)
Available-for-Sale: Fair Value	744,714	793,871
Held-to-Maturity:
Held-to-Maturity: Amortized Cost	2,856,709	2,968,322
Held-to-Maturity: Gross Unrealized Gains	7	8
Held-to-Maturity: Gross Unrealized Losses	(387,659)	(397,055)
Held-to-Maturity: Fair Value	2,469,057	2,571,275
Commercial - Government Agencies or Sponsored Agencies
Available-for-Sale:
Available-for-Sale: Amortized Cost	163,474	168,242
Available-for-Sale: Gross Unrealized Losses	(24,681)	(22,575)
Available-for-Sale: Fair Value	138,793	145,667
Held-to-Maturity:
Held-to-Maturity: Amortized Cost	440,727	448,945
Held-to-Maturity: Gross Unrealized Losses	(93,340)	(86,951)
Held-to-Maturity: Fair Value	347,387	361,994
Mortgage-Backed Securities
Available-for-Sale:
Available-for-Sale: Amortized Cost	1,803,861	1,917,020
Available-for-Sale: Gross Unrealized Gains	174	246
Available-for-Sale: Gross Unrealized Losses	(245,324)	(244,900)
Available-for-Sale: Fair Value	1,558,711	1,672,366
Held-to-Maturity:
Held-to-Maturity: Amortized Cost	5,058,926	5,265,506
Held-to-Maturity: Gross Unrealized Gains	18	43
Held-to-Maturity: Gross Unrealized Losses	(771,873)	(778,053)
Held-to-Maturity: Fair Value	$ 4,287,071	$ 4,487,496

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Investment Securities - Additional Information (Details) $ in Thousands	Jun. 30, 2023 USD ($) Security	Dec. 31, 2022 USD ($)
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items]
Accrued interest receivable	$ 64,720	$ 61,002
Carrying Value Of Investment Securities Pledged	$ 7,700,000	4,100,000
Number of available for sale debt securities in unrealized loss positions | Security	405
Available-for-sale Securities
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items]
Accrued interest receivable	$ 11,400	11,700
Held-to-maturity Securities
Other Than Temporary Impairment Credit Losses Recognized In Earnings [Line Items]
Accrued interest receivable	$ 10,100	$ 9,200

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Investment Securities - Analysis of the Contractual Maturities of Investment Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis Rolling Maturity[Abstract]
Due in One Year or Less	$ 9,012
Due After One Year Through Five Years	443,955
Due After Five Years Through Ten Years	651,597
Due After Ten Years	6,380
Amortized Cost, Total	1,110,944
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract]
Available-for-Sale: Amortized Cost	2,993,004	$ 3,172,436
Due in One Year or Less	8,980
Due After One Year Through Five Years	419,503
Due After Five Years Through Ten Years	595,753
Due After Ten Years	5,172
Fair Value, Total	1,029,408
Available-for-Sale: Fair Value	2,666,723	2,844,823
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis, Rolling Maturities (Abstract]
Due After One Year Through Five Years	83,436
Due After Five Year Through Ten Years	49,448
Due After Ten Years	10,888
Amortized Cost, Total	143,772
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract]
Due After One Year Through Five Years	73,401
Due After Five Year Through Ten Years	41,783
Due After Ten Years	8,748
Fair Value, Total	123,932
Held-to-Maturity: Amortized Cost	5,202,698
Held-to-Maturity: Fair Value	4,411,003	4,615,393
Debt Securities Issued by Government Agencies
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract]
Available-for-sale Securities: Amortized Cost	78,199
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value	78,604
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract]
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value	78,604
Residential - Government Agencies
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract]
Available-for-sale Securities: Amortized Cost	771,006
Available-for-Sale: Amortized Cost	771,006	828,798
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value	675,204
Available-for-Sale: Fair Value	675,204	732,828
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract]
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost	1,761,490
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost	1,761,490
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value	675,204
Held-to-Maturity: Mortgage-Backed Securities: Fair Value	1,470,627
Held-to-Maturity: Fair Value	1,470,627	1,554,227
Residential - U.S. Government-Sponsored Enterprises
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract]
Available-for-sale Securities: Amortized Cost	869,381
Available-for-Sale: Amortized Cost	869,381	919,980
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value	744,714
Available-for-Sale: Fair Value	744,714	793,871
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract]
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost	2,856,709
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost	2,856,709
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value	744,714
Held-to-Maturity: Mortgage-Backed Securities: Fair Value	2,469,057
Held-to-Maturity: Fair Value	2,469,057	2,571,275
Commercial - Government Agencies or Sponsored Agencies
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract]
Available-for-sale Securities: Amortized Cost	163,474
Available-for-Sale: Amortized Cost	163,474	168,242
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value	138,793
Available-for-Sale: Fair Value	138,793	145,667
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract]
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost	440,727
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost	440,727
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value	138,793
Held-to-Maturity: Mortgage-Backed Securities: Fair Value	347,387
Held-to-Maturity: Fair Value	347,387	361,994
Mortgage-Backed Securities
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Rolling Maturities [Abstract]
Available-for-sale Securities: Amortized Cost	1,803,861
Available-for-Sale: Amortized Cost	1,803,861	1,917,020
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value	1,558,711
Available-for-Sale: Fair Value	1,558,711	1,672,366
Held-to-Maturity Securities, Debt Maturities, Single Maturity Date, Fair Value, Rolling Maturities [Abstract]
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost	5,058,926
Held-to-Maturity: Mortgage-Backed Securities: Amortized Cost	5,058,926
Available-for-sale Securities, Debt Securities Issued by Government Agencies and Mortgage-Backed Securities: Fair Value	1,558,711
Held-to-Maturity: Mortgage-Backed Securities: Fair Value	4,287,071
Held-to-Maturity: Fair Value	$ 4,287,071	$ 4,487,496

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Investment Securities - Schedule of Losses From Sales of Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Total Losses on Sales of Investment Securities	$ (1,310)	$ (1,295)	$ (3,102)	$ (2,840)

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Investment Securities - Schedule of AFS Debt Securities in an Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Schedule Of Available For Sale Securities [Line Items]
Less Than 12 Months, Fair Value	$ 480,072	$ 1,206,152
Less Than 12 Months, Gross Unrealized Losses	(4,753)	(76,494)
12 Months or Longer, Fair Value	2,067,926	1,449,762
12 Months or Longer, Gross Unrealized Losses	(322,868)	(252,970)
Total Fair Value	2,547,998	2,655,914
Total Gross Unrealized Losses	(327,621)	(329,464)
Debt Securities Issued by the U.S. Treasury and Government Agencies
Schedule Of Available For Sale Securities [Line Items]
Less Than 12 Months, Fair Value	13,669	28,574
Less Than 12 Months, Gross Unrealized Losses	(54)	(1,118)
12 Months or Longer, Fair Value	145,838	127,841
12 Months or Longer, Gross Unrealized Losses	(14,515)	(13,949)
Total Fair Value	159,507	156,415
Total Gross Unrealized Losses	(14,569)	(15,067)
Debt Securities Issued by States and Political Subdivisions
Schedule Of Available For Sale Securities [Line Items]
Less Than 12 Months, Fair Value	25,209	11,341
Less Than 12 Months, Gross Unrealized Losses	(126)	(1,240)
12 Months or Longer, Fair Value	62,113	49,985
12 Months or Longer, Gross Unrealized Losses	(11,097)	(11,342)
Total Fair Value	87,322	61,326
Total Gross Unrealized Losses	(11,223)	(12,582)
Debt Securities Issued by Government-Sponsored Enterprises
Schedule Of Available For Sale Securities [Line Items]
Less Than 12 Months, Fair Value	0	47,825
Less Than 12 Months, Gross Unrealized Losses	0	(108)
12 Months or Longer, Fair Value	1,636	803
12 Months or Longer, Gross Unrealized Losses	(120)	(71)
Total Fair Value	1,636	48,628
Total Gross Unrealized Losses	(120)	(179)
Debt Securities Issued by Corporations
Schedule Of Available For Sale Securities [Line Items]
Less Than 12 Months, Fair Value	376,871	438,225
Less Than 12 Months, Gross Unrealized Losses	(2,133)	(7,995)
12 Months or Longer, Fair Value	368,538	284,350
12 Months or Longer, Gross Unrealized Losses	(54,252)	(48,741)
Total Fair Value	745,409	722,575
Total Gross Unrealized Losses	(56,385)	(56,736)
Residential - Government Agencies
Schedule Of Available For Sale Securities [Line Items]
Less Than 12 Months, Fair Value	53,525	386,809
Less Than 12 Months, Gross Unrealized Losses	(1,939)	(30,492)
12 Months or Longer, Fair Value	617,092	340,824
12 Months or Longer, Gross Unrealized Losses	(94,037)	(65,723)
Total Fair Value	670,617	727,633
Total Gross Unrealized Losses	(95,976)	(96,215)
Residential - U.S. Government-Sponsored Enterprises
Schedule Of Available For Sale Securities [Line Items]
Less Than 12 Months, Fair Value	10,064	194,684
Less Than 12 Months, Gross Unrealized Losses	(468)	(22,294)
12 Months or Longer, Fair Value	734,650	598,986
12 Months or Longer, Gross Unrealized Losses	(124,199)	(103,816)
Total Fair Value	744,714	793,670
Total Gross Unrealized Losses	(124,667)	(126,110)
Commercial - Government Agencies or Sponsored Agencies
Schedule Of Available For Sale Securities [Line Items]
Less Than 12 Months, Fair Value	734	98,694
Less Than 12 Months, Gross Unrealized Losses	(33)	(13,247)
12 Months or Longer, Fair Value	138,059	46,973
12 Months or Longer, Gross Unrealized Losses	(24,648)	(9,328)
Total Fair Value	138,793	145,667
Total Gross Unrealized Losses	(24,681)	(22,575)
Mortgage-Backed Securities
Schedule Of Available For Sale Securities [Line Items]
Less Than 12 Months, Fair Value	64,323	680,187
Less Than 12 Months, Gross Unrealized Losses	(2,440)	(66,033)
12 Months or Longer, Fair Value	1,489,801	986,783
12 Months or Longer, Gross Unrealized Losses	(242,884)	(178,867)
Total Fair Value	1,554,124	1,666,970
Total Gross Unrealized Losses	$ (245,324)	$ (244,900)

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Investment Securities - Schedule of Interest Income From Taxable and Non-Taxable Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Taxable	$ 46,593	$ 36,809	$ 94,350	$ 72,599
Non-Taxable	83	12	167	23
Total Interest Income from Investment Securities	$ 46,676	$ 36,821	$ 94,517	$ 72,622

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Investment Securities - Schedule of Carrying Value of Federal Home Loan Bank of Des Moines Stock and Federal Reserve Bank Stock (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Federal Home Loan Bank of Des Moines Stock	$ 80,000	$ 26,000
Federal Reserve Bank Stock	27,277	27,065
Total	$ 107,277	$ 53,065

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Loans and Leases and the Allowance for Credit Losses - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Accounts Notes And Loans Receivable [Line Items]
Net gains (loss) related to sales of residential mortgage loans	$ (200)	$ 200	$ 300	$ 200
Accrued interest receivable	64,720		64,720		$ 61,002
Revolving loans, converted to term loan during the period			$ 5,300		6,200
Number of days non-accrual loans are not past due			30 days
Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure	5,400		$ 5,400
Pass | Residential Mortgage
Accounts Notes And Loans Receivable [Line Items]
Number of days past due for loans and leases in classified credit quality indicator			90 days
Maximum current loan-to-value ratio for residential mortgage and home equity loans to be considered as pass (as a percent)			60.00%
Pass | Home Equity
Accounts Notes And Loans Receivable [Line Items]
Number of days past due for loans and leases in classified credit quality indicator			90 days
Maximum current loan-to-value ratio for residential mortgage and home equity loans to be considered as pass (as a percent)			60.00%
Maximum current combined loan-to-value ratio for residential mortgage and home equity loans to be considered as pass (as a percent)			60.00%
Accrued Interest Receivable
Accounts Notes And Loans Receivable [Line Items]
Accrued interest receivable	$ 42,900		$ 42,900		$ 40,100
Consumer | Classified
Accounts Notes And Loans Receivable [Line Items]
Number of days past due for loans and leases in classified credit quality indicator			90 days

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Loans and Leases and the Allowance for Credit Losses - Schedule of Loan and Lease Portfolio (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accounts Notes And Loans Receivable [Line Items]
Loans and Leases	$ 13,914,889	$ 13,646,420
Commercial
Accounts Notes And Loans Receivable [Line Items]
Loans and Leases	5,612,441	5,464,503
Commercial | Commercial and Industrial
Accounts Notes And Loans Receivable [Line Items]
Loans and Leases	1,502,676	1,389,066
Commercial | Commercial Mortgage
Accounts Notes And Loans Receivable [Line Items]
Loans and Leases	3,796,769	3,725,542
Commercial | Construction
Accounts Notes And Loans Receivable [Line Items]
Loans and Leases	236,428	260,825
Commercial | Paycheck Protection Program
Accounts Notes And Loans Receivable [Line Items]
Loans and Leases	13,789	19,579
Commercial | Lease Financing
Accounts Notes And Loans Receivable [Line Items]
Loans and Leases	62,779	69,491
Consumer
Accounts Notes And Loans Receivable [Line Items]
Loans and Leases	8,302,448	8,181,917
Consumer | Residential Mortgage
Accounts Notes And Loans Receivable [Line Items]
Loans and Leases	4,721,976	4,653,072
Consumer | Home Equity
Accounts Notes And Loans Receivable [Line Items]
Loans and Leases	2,278,105	2,225,950
Consumer | Automobile
Accounts Notes And Loans Receivable [Line Items]
Loans and Leases	878,767	870,396
Consumer | Other
Accounts Notes And Loans Receivable [Line Items]
Loans and Leases	$ 423,600	$ 432,499

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Loans and Leases and the Allowance for Credit Losses - Schedule of Activity in Allowance by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Allowance for Credit Losses:
Balance at Beginning of Period	$ 143,577	$ 152,028	$ 144,439	$ 157,821
Loans and Leases Charged-Off	(3,511)	(3,346)	(7,820)	(7,254)
Recoveries on Loans and Leases Previously Charged-Off	2,134	2,715	3,775	5,137
Net Loans and Leases Recovered (Charged-Off)	(1,377)	(631)	(4,045)	(2,117)
Provision for Credit Losses	3,167	(2,885)	4,973	(7,192)
Balance at End of Period	145,367	148,512	145,367	148,512
Commercial
Allowance for Credit Losses:
Balance at Beginning of Period	58,771	62,093	63,900	64,950
Loans and Leases Charged-Off	(203)	(233)	(464)	(582)
Recoveries on Loans and Leases Previously Charged-Off	103	51	153	420
Net Loans and Leases Recovered (Charged-Off)	(100)	(182)	(311)	(162)
Provision for Credit Losses	5,270	(85)	352	(2,962)
Balance at End of Period	63,941	61,826	63,941	61,826
Consumer
Allowance for Credit Losses:
Balance at Beginning of Period	84,806	89,935	80,539	92,871
Loans and Leases Charged-Off	(3,308)	(3,113)	(7,356)	(6,672)
Recoveries on Loans and Leases Previously Charged-Off	2,031	2,664	3,622	4,717
Net Loans and Leases Recovered (Charged-Off)	(1,277)	(449)	(3,734)	(1,955)
Provision for Credit Losses	(2,103)	(2,800)	4,621	(4,230)
Balance at End of Period	$ 81,426	$ 86,686	$ 81,426	$ 86,686

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Loans and Leases and the Allowance for Credit Losses - Schedule of Amortized Cost Basis of Loans and Leases by Credit Quality Indicator, Loan Class, and Year of Origination (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	$ 1,464,156	$ 3,141,436
Fiscal Year Before Latest Fiscal Year	2,837,350	2,898,564
Two Years Before Latest Fiscal Year	2,648,410	2,183,088
Three Years Before Latest Fiscal Year	1,771,001	815,263
Four Years Before Latest Fiscal Year	721,093	388,817
Prior	1,812,575	1,647,925
Revolving Loans	2,619,105	2,532,777
Revolving Loans Converted to Term Loans	41,199	38,550
Total Loans and Leases	13,914,889	13,646,420
Commercial
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	1,023,791	1,722,502
Fiscal Year Before Latest Fiscal Year	1,512,967	1,252,561
Two Years Before Latest Fiscal Year	1,087,316	1,015,759
Three Years Before Latest Fiscal Year	664,297	369,910
Four Years Before Latest Fiscal Year	319,313	188,165
Prior	623,397	593,643
Revolving Loans	381,138	321,787
Revolving Loans Converted to Term Loans	222	176
Total Loans and Leases	5,612,441	5,464,503
Commercial | Commercial and Industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	290,090	368,316
Fiscal Year Before Latest Fiscal Year	309,468	348,391
Two Years Before Latest Fiscal Year	259,046	225,294
Three Years Before Latest Fiscal Year	165,956	59,127
Four Years Before Latest Fiscal Year	44,925	48,539
Prior	95,199	78,265
Revolving Loans	337,770	260,958
Revolving Loans Converted to Term Loans	222	176
Total Loans and Leases	1,502,676	1,389,066
Commercial | Commercial and Industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	289,456	360,748
Fiscal Year Before Latest Fiscal Year	295,319	348,300
Two Years Before Latest Fiscal Year	250,845	224,264
Three Years Before Latest Fiscal Year	159,176	59,127
Four Years Before Latest Fiscal Year	44,914	46,799
Prior	86,713	71,906
Revolving Loans	330,831	257,349
Revolving Loans Converted to Term Loans	205	155
Total Loans and Leases	1,457,459	1,368,648
Commercial | Commercial and Industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	551	273
Fiscal Year Before Latest Fiscal Year	11,617	0
Two Years Before Latest Fiscal Year	2,354	0
Three Years Before Latest Fiscal Year	49	0
Four Years Before Latest Fiscal Year	0	96
Prior	0	92
Revolving Loans	1,763	1,357
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	16,334	1,818
Commercial | Commercial and Industrial | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	83	7,295
Fiscal Year Before Latest Fiscal Year	2,532	91
Two Years Before Latest Fiscal Year	5,847	1,030
Three Years Before Latest Fiscal Year	6,731	0
Four Years Before Latest Fiscal Year	11	1,644
Prior	8,486	6,267
Revolving Loans	5,176	2,252
Revolving Loans Converted to Term Loans	17	21
Total Loans and Leases	28,883	18,600
Commercial | Paycheck Protection Program
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	0	0
Fiscal Year Before Latest Fiscal Year	0	5,359
Two Years Before Latest Fiscal Year	2,692	14,220
Three Years Before Latest Fiscal Year	11,097	0
Four Years Before Latest Fiscal Year	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	13,789	19,579
Commercial | Paycheck Protection Program | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	0	0
Fiscal Year Before Latest Fiscal Year	0	5,359
Two Years Before Latest Fiscal Year	2,692	14,220
Three Years Before Latest Fiscal Year	11,097	0
Four Years Before Latest Fiscal Year	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	13,789	19,579
Commercial | Commercial Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	709,267	1,212,720
Fiscal Year Before Latest Fiscal Year	1,063,530	810,996
Two Years Before Latest Fiscal Year	738,299	727,704
Three Years Before Latest Fiscal Year	474,440	284,177
Four Years Before Latest Fiscal Year	250,681	132,537
Prior	517,624	508,637
Revolving Loans	42,928	48,771
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	3,796,769	3,725,542
Commercial | Commercial Mortgage | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	675,565	1,182,831
Fiscal Year Before Latest Fiscal Year	997,296	771,375
Two Years Before Latest Fiscal Year	725,699	691,054
Three Years Before Latest Fiscal Year	460,847	283,553
Four Years Before Latest Fiscal Year	250,447	131,055
Prior	491,306	494,924
Revolving Loans	42,928	48,771
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	3,644,088	3,603,563
Commercial | Commercial Mortgage | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	30,482	29,707
Fiscal Year Before Latest Fiscal Year	61,921	37,657
Two Years Before Latest Fiscal Year	6,249	28,105
Three Years Before Latest Fiscal Year	0	0
Four Years Before Latest Fiscal Year	0	1,482
Prior	19,399	5,014
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	118,051	101,965
Commercial | Commercial Mortgage | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	3,220	182
Fiscal Year Before Latest Fiscal Year	4,313	1,964
Two Years Before Latest Fiscal Year	6,351	8,545
Three Years Before Latest Fiscal Year	13,593	624
Four Years Before Latest Fiscal Year	234	0
Prior	6,919	8,699
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	34,630	20,014
Commercial | Construction
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	19,496	124,507
Fiscal Year Before Latest Fiscal Year	125,499	69,992
Two Years Before Latest Fiscal Year	71,654	37,133
Three Years Before Latest Fiscal Year	2,859	16,838
Four Years Before Latest Fiscal Year	16,184	0
Prior	296	297
Revolving Loans	440	12,058
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	236,428	260,825
Commercial | Construction | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	19,496	124,507
Fiscal Year Before Latest Fiscal Year	125,499	69,992
Two Years Before Latest Fiscal Year	71,654	37,133
Three Years Before Latest Fiscal Year	2,859	16,838
Four Years Before Latest Fiscal Year	16,184	0
Prior	296	297
Revolving Loans	440	12,058
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	236,428	260,825
Commercial | Lease Financing
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	4,938	16,959
Fiscal Year Before Latest Fiscal Year	14,470	17,823
Two Years Before Latest Fiscal Year	15,625	11,408
Three Years Before Latest Fiscal Year	9,945	9,768
Four Years Before Latest Fiscal Year	7,523	7,089
Prior	10,278	6,444
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	62,779	69,491
Commercial | Lease Financing | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	4,938	16,959
Fiscal Year Before Latest Fiscal Year	14,413	17,823
Two Years Before Latest Fiscal Year	15,495	11,408
Three Years Before Latest Fiscal Year	9,838	9,768
Four Years Before Latest Fiscal Year	7,523	6,379
Prior	9,756	6,444
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	61,963	68,781
Commercial | Lease Financing | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	0	0
Fiscal Year Before Latest Fiscal Year	57	0
Two Years Before Latest Fiscal Year	130	0
Three Years Before Latest Fiscal Year	107	0
Four Years Before Latest Fiscal Year	0	710
Prior	522	0
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	816	710
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	440,365	1,418,934
Fiscal Year Before Latest Fiscal Year	1,324,383	1,646,003
Two Years Before Latest Fiscal Year	1,561,094	1,167,329
Three Years Before Latest Fiscal Year	1,106,704	445,353
Four Years Before Latest Fiscal Year	401,780	200,652
Prior	1,189,178	1,054,282
Revolving Loans	2,237,967	2,210,990
Revolving Loans Converted to Term Loans	40,977	38,374
Total Loans and Leases	8,302,448	8,181,917
Consumer | Residential Mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	213,211	827,909
Fiscal Year Before Latest Fiscal Year	811,601	1,304,831
Two Years Before Latest Fiscal Year	1,272,073	1,035,285
Three Years Before Latest Fiscal Year	1,003,636	321,208
Four Years Before Latest Fiscal Year	311,321	138,766
Prior	1,110,134	1,025,073
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	4,721,976	4,653,072
Consumer | Residential Mortgage | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	213,211	827,909
Fiscal Year Before Latest Fiscal Year	811,601	1,304,831
Two Years Before Latest Fiscal Year	1,272,073	1,035,285
Three Years Before Latest Fiscal Year	1,003,636	321,208
Four Years Before Latest Fiscal Year	311,321	138,214
Prior	1,108,419	1,023,841
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	4,720,261	4,651,288
Consumer | Residential Mortgage | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	0	0
Fiscal Year Before Latest Fiscal Year	0	0
Two Years Before Latest Fiscal Year	0	0
Three Years Before Latest Fiscal Year	0	0
Four Years Before Latest Fiscal Year	0	552
Prior	1,715	1,232
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	1,715	1,784
Consumer | Home Equity Loan
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	0	0
Fiscal Year Before Latest Fiscal Year	0	0
Two Years Before Latest Fiscal Year	0	0
Three Years Before Latest Fiscal Year	0	0
Four Years Before Latest Fiscal Year	0	0
Prior	45	915
Revolving Loans	2,237,083	2,187,703
Revolving Loans Converted to Term Loans	40,977	37,332
Total Loans and Leases	2,278,105	2,225,950
Consumer | Home Equity Loan | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	0	0
Fiscal Year Before Latest Fiscal Year	0	0
Two Years Before Latest Fiscal Year	0	0
Three Years Before Latest Fiscal Year	0	0
Four Years Before Latest Fiscal Year	0	0
Prior	45	890
Revolving Loans	2,235,915	2,186,598
Revolving Loans Converted to Term Loans	39,738	36,114
Total Loans and Leases	2,275,698	2,223,602
Consumer | Home Equity Loan | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	0	0
Fiscal Year Before Latest Fiscal Year	0	0
Two Years Before Latest Fiscal Year	0	0
Three Years Before Latest Fiscal Year	0	0
Four Years Before Latest Fiscal Year	0	0
Prior	0	25
Revolving Loans	1,168	1,105
Revolving Loans Converted to Term Loans	1,239	1,218
Total Loans and Leases	2,407	2,348
Consumer | Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	158,785	405,561
Fiscal Year Before Latest Fiscal Year	351,944	216,299
Two Years Before Latest Fiscal Year	180,473	100,631
Three Years Before Latest Fiscal Year	82,233	84,095
Four Years Before Latest Fiscal Year	64,605	45,393
Prior	40,727	18,417
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	878,767	870,396
Consumer | Automobile | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	158,785	405,440
Fiscal Year Before Latest Fiscal Year	351,850	216,039
Two Years Before Latest Fiscal Year	180,380	100,608
Three Years Before Latest Fiscal Year	82,119	84,052
Four Years Before Latest Fiscal Year	64,406	45,301
Prior	40,650	18,366
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	878,190	869,806
Consumer | Automobile | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	0	121
Fiscal Year Before Latest Fiscal Year	94	260
Two Years Before Latest Fiscal Year	93	23
Three Years Before Latest Fiscal Year	114	43
Four Years Before Latest Fiscal Year	199	92
Prior	77	51
Revolving Loans	0	0
Revolving Loans Converted to Term Loans	0	0
Total Loans and Leases	577	590
Consumer | Other Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	68,369	185,464
Fiscal Year Before Latest Fiscal Year	160,838	124,873
Two Years Before Latest Fiscal Year	108,548	31,413
Three Years Before Latest Fiscal Year	20,835	40,050
Four Years Before Latest Fiscal Year	25,854	16,493
Prior	38,272	9,877
Revolving Loans	884	23,287
Revolving Loans Converted to Term Loans	0	1,042
Total Loans and Leases	423,600	432,499
Consumer | Other Loans | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	68,369	185,347
Fiscal Year Before Latest Fiscal Year	160,685	124,759
Two Years Before Latest Fiscal Year	108,394	31,343
Three Years Before Latest Fiscal Year	20,822	39,902
Four Years Before Latest Fiscal Year	25,708	16,364
Prior	38,104	9,853
Revolving Loans	884	23,228
Revolving Loans Converted to Term Loans	0	1,020
Total Loans and Leases	422,966	431,816
Consumer | Other Loans | Classified
Financing Receivable, Credit Quality Indicator [Line Items]
Current Fiscal Year	0	117
Fiscal Year Before Latest Fiscal Year	153	114
Two Years Before Latest Fiscal Year	154	70
Three Years Before Latest Fiscal Year	13	148
Four Years Before Latest Fiscal Year	146	129
Prior	168	24
Revolving Loans	0	59
Revolving Loans Converted to Term Loans	0	22
Total Loans and Leases	$ 634	$ 683

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Loans and Leases and the Allowance for Credit Losses - Schedule of Aging Analysis by Class of Loan and Lease Portfolio (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	$ 13,914,889	$ 13,646,420
Non-Accrual	10,437	11,607
Total Past Due and Non-Accrual	41,443	42,479
Total Loans and Leases	13,914,889	13,646,420
Non-Accrual Loans and Leases that are Current	4,759	5,739
Commercial
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	5,612,441	5,464,503
Non-Accrual	3,124	3,346
Total Past Due and Non-Accrual	3,578	3,607
Total Loans and Leases	5,612,441	5,464,503
Non-Accrual Loans and Leases that are Current	3,124	3,346
Commercial | Commercial and Industrial
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	1,502,676	1,389,066
Non-Accrual	17	37
Total Past Due and Non-Accrual	471	298
Total Loans and Leases	1,502,676	1,389,066
Non-Accrual Loans and Leases that are Current	17	37
Commercial | Paycheck Protection Program
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	13,789	19,579
Non-Accrual	0	0
Total Past Due and Non-Accrual	0	0
Total Loans and Leases	13,789	19,579
Non-Accrual Loans and Leases that are Current	0	0
Commercial | Commercial Mortgage
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	3,796,769	3,725,542
Non-Accrual	3,107	3,309
Total Past Due and Non-Accrual	3,107	3,309
Total Loans and Leases	3,796,769	3,725,542
Non-Accrual Loans and Leases that are Current	3,107	3,309
Commercial | Construction
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	236,428	260,825
Non-Accrual	0	0
Total Past Due and Non-Accrual	0	0
Total Loans and Leases	236,428	260,825
Non-Accrual Loans and Leases that are Current	0	0
Commercial | Lease Financing
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	62,779	69,491
Non-Accrual	0	0
Total Past Due and Non-Accrual	0	0
Total Loans and Leases	62,779	69,491
Non-Accrual Loans and Leases that are Current	0	0
Consumer
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	8,302,448	8,181,917
Non-Accrual	7,313	8,261
Total Past Due and Non-Accrual	37,865	38,872
Total Loans and Leases	8,302,448	8,181,917
Non-Accrual Loans and Leases that are Current	1,635	2,393
Consumer | Residential Mortgage
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	4,721,976	4,653,072
Non-Accrual	3,504	4,239
Total Past Due and Non-Accrual	11,119	10,405
Total Loans and Leases	4,721,976	4,653,072
Non-Accrual Loans and Leases that are Current	884	1,729
Consumer | Home Equity
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Non-Accrual	3,809	4,022
Total Past Due and Non-Accrual	10,121	8,294
Total Loans and Leases	2,278,105	2,225,950
Non-Accrual Loans and Leases that are Current	751	664
Consumer | Automobile
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	878,767	870,396
Non-Accrual	0	0
Total Past Due and Non-Accrual	13,075	15,870
Total Loans and Leases	878,767	870,396
Non-Accrual Loans and Leases that are Current	0	0
Consumer | Other
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Non-Accrual	0	0
Total Past Due and Non-Accrual	3,550	4,303
Total Loans and Leases	423,600	432,499
Non-Accrual Loans and Leases that are Current	0	0
30 - 59 Days Past Due
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	17,838	20,518
30 - 59 Days Past Due | Commercial
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	202	252
30 - 59 Days Past Due | Commercial | Commercial and Industrial
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	202	252
30 - 59 Days Past Due | Commercial | Paycheck Protection Program
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	0	0
30 - 59 Days Past Due | Commercial | Commercial Mortgage
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	0	0
30 - 59 Days Past Due | Commercial | Construction
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	0	0
30 - 59 Days Past Due | Commercial | Lease Financing
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	0	0
30 - 59 Days Past Due | Consumer
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	17,636	20,266
30 - 59 Days Past Due | Consumer | Residential Mortgage
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	2,173	3,016
30 - 59 Days Past Due | Consumer | Home Equity
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	2,464	1,639
30 - 59 Days Past Due | Consumer | Automobile
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	10,830	13,293
30 - 59 Days Past Due | Consumer | Other
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	2,169	2,318
60 - 89 Days Past Due
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	6,376	4,980
60 - 89 Days Past Due | Commercial
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	252	9
60 - 89 Days Past Due | Commercial | Commercial and Industrial
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	252	9
60 - 89 Days Past Due | Commercial | Paycheck Protection Program
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	0	0
60 - 89 Days Past Due | Commercial | Commercial Mortgage
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	0	0
60 - 89 Days Past Due | Commercial | Construction
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	0	0
60 - 89 Days Past Due | Commercial | Lease Financing
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	0	0
60 - 89 Days Past Due | Consumer
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	6,124	4,971
60 - 89 Days Past Due | Consumer | Residential Mortgage
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	1,882	721
60 - 89 Days Past Due | Consumer | Home Equity
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	1,826	960
60 - 89 Days Past Due | Consumer | Automobile
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	1,668	1,988
60 - 89 Days Past Due | Consumer | Other
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	748	1,302
Past Due 90 Days or More
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	6,792	5,374
Past Due 90 Days or More | Commercial
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	0	0
Past Due 90 Days or More | Commercial | Commercial and Industrial
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	0	0
Past Due 90 Days or More | Commercial | Paycheck Protection Program
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	0	0
Past Due 90 Days or More | Commercial | Commercial Mortgage
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	0	0
Past Due 90 Days or More | Commercial | Construction
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	0	0
Past Due 90 Days or More | Commercial | Lease Financing
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	0	0
Past Due 90 Days or More | Consumer
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	6,792	5,374
Past Due 90 Days or More | Consumer | Residential Mortgage
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	3,560	2,429
Past Due 90 Days or More | Consumer | Home Equity
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	2,022	1,673
Past Due 90 Days or More | Consumer | Automobile
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	577	589
Past Due 90 Days or More | Consumer | Other
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	633	683
Current
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	13,873,446	13,603,941
Current | Commercial
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	5,608,863	5,460,896
Current | Commercial | Commercial and Industrial
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	1,502,205	1,388,768
Current | Commercial | Paycheck Protection Program
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	13,789	19,579
Current | Commercial | Commercial Mortgage
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	3,793,662	3,722,233
Current | Commercial | Construction
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	236,428	260,825
Current | Commercial | Lease Financing
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	62,779	69,491
Current | Consumer
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	8,264,583	8,143,045
Current | Consumer | Residential Mortgage
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	4,710,857	4,642,667
Current | Consumer | Home Equity
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	2,267,984	2,217,656
Current | Consumer | Automobile
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	865,692	854,526
Current | Consumer | Other
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Days Past Due	$ 420,050	$ 428,196

XML

Loans and Leases and the Allowance for Credit Losses - Schedule of Aging Analysis by Class of Loan and Lease Portfolio (Parenthetical) (Details)	6 Months Ended
	Jun. 30, 2023
Loans And Leases And Allowance For Loan And Lease Losses [Abstract]
Number of days non-accrual loans and leases are not past due	30 days

XML

Loans and Leases and the Allowance for Credit Losses - Schedule of Non-Accrual Loans and Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable Nonaccrual Status [Line Items]
Non-accrual loans with a related ACL	$ 7,330	$ 8,298
Non-accrual loans without a related ACL	3,107	3,309
Total Non-accrual loans	10,437	11,607
Commercial
Financing Receivable Nonaccrual Status [Line Items]
Non-accrual loans with a related ACL	17	37
Non-accrual loans without a related ACL	3,107	3,309
Total Non-accrual loans	3,124	3,346
Commercial | Commercial and Industrial
Financing Receivable Nonaccrual Status [Line Items]
Non-accrual loans with a related ACL	17	37
Non-accrual loans without a related ACL	0	0
Total Non-accrual loans	17	37
Commercial | Commercial Mortgage
Financing Receivable Nonaccrual Status [Line Items]
Non-accrual loans with a related ACL	0	0
Non-accrual loans without a related ACL	3,107	3,309
Total Non-accrual loans	3,107	3,309
Consumer
Financing Receivable Nonaccrual Status [Line Items]
Non-accrual loans with a related ACL	7,313	8,261
Non-accrual loans without a related ACL	0	0
Total Non-accrual loans	7,313	8,261
Consumer | Residential Mortgage
Financing Receivable Nonaccrual Status [Line Items]
Non-accrual loans with a related ACL	3,504	4,239
Non-accrual loans without a related ACL	0	0
Total Non-accrual loans	3,504	4,239
Consumer | Home Equity
Financing Receivable Nonaccrual Status [Line Items]
Non-accrual loans with a related ACL	3,809	4,022
Non-accrual loans without a related ACL	0	0
Total Non-accrual loans	$ 3,809	$ 4,022

XML

Loans and Leases and the Allowance for Credit Losses - Schedule of Amortized Cost Basis of Loan Modifications to Borrowers Experiencing Financial Difficulty (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 3,912	$ 12,806
Percentage of total class of loans and leases	0.03%	0.09%
Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 2,960	$ 5,159
Payment Delay and Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	0	6,695
Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	952	952
Commercial
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 1,043	$ 7,738
Percentage of total class of loans and leases	0.02%	0.14%
Commercial | Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 91	$ 91
Commercial | Payment Delay and Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	0	6,695
Commercial | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	952	952
Commercial | Commercial and Industrial
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 91	$ 6,786
Percentage of total class of loans and leases	0.01%	0.45%
Commercial | Commercial and Industrial | Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 91	$ 91
Commercial | Commercial and Industrial | Payment Delay and Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	0	6,695
Commercial | Commercial and Industrial | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	0	0
Commercial | Commercial Mortgage
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 952	$ 952
Percentage of total class of loans and leases	0.03%	0.03%
Commercial | Commercial Mortgage | Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 0	$ 0
Commercial | Commercial Mortgage | Payment Delay and Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	0	0
Commercial | Commercial Mortgage | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	952	952
Consumer
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 2,869	$ 5,068
Percentage of total class of loans and leases	0.03%	0.06%
Consumer | Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 2,869	$ 5,068
Consumer | Payment Delay and Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	0	0
Consumer | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	0	0
Consumer | Other
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 215	$ 384
Percentage of total class of loans and leases	0.05%	0.09%
Consumer | Other | Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 215	$ 384
Consumer | Other | Payment Delay and Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	0	0
Consumer | Other | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	0	0
Consumer | Residential Mortgage
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 0	$ 134
Percentage of total class of loans and leases	0.00%	0.00%
Consumer | Residential Mortgage | Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 0	$ 134
Consumer | Residential Mortgage | Payment Delay and Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	0	0
Consumer | Residential Mortgage | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	0	0
Consumer | Home Equity
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 0	$ 139
Percentage of total class of loans and leases	0.00%	0.01%
Consumer | Home Equity | Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 0	$ 139
Consumer | Home Equity | Payment Delay and Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	0	0
Consumer | Home Equity | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	0	0
Consumer | Automobile
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 2,654	$ 4,411
Percentage of total class of loans and leases	0.30%	0.50%
Consumer | Automobile | Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 2,654	$ 4,411
Consumer | Automobile | Payment Delay and Term Extension
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	0	0
Consumer | Automobile | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Amortized cost basis of loan modifications	$ 0	$ 0

XML

Loans and Leases and the Allowance for Credit Losses - Schedule of Financial Effect of Loan Modifications to Borrowers Experiencing Financial Difficulty (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	$ 3,912	$ 12,806
Months of Term Extension
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	2,960	5,159
Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	952	952
Commercial
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	1,043	7,738
Commercial | Months of Term Extension
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	91	91
Commercial | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	952	952
Commercial | Commercial and Industrial
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	91	6,786
Commercial | Commercial and Industrial | Months of Term Extension
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	91	91
Commercial | Commercial and Industrial | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	0
Commercial | Commercial and Industrial | Weighted-Average | Months of Term Extension
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications		0
Commercial | Commercial and Industrial | Weighted-Average | Payment Deferral
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications		1,159
Commercial | Commercial and Industrial | Weighted-Average | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications		0
Commercial | Commercial Mortgage
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	952	952
Commercial | Commercial Mortgage | Months of Term Extension
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	0
Commercial | Commercial Mortgage | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	952	952
Commercial | Commercial Mortgage | Weighted-Average | Months of Term Extension
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	0
Commercial | Commercial Mortgage | Weighted-Average | Payment Deferral
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	0
Commercial | Commercial Mortgage | Weighted-Average | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	0
Consumer
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	2,869	5,068
Consumer | Months of Term Extension
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	2,869	5,068
Consumer | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	0
Consumer | Other
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	215	384
Consumer | Other | Months of Term Extension
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	215	384
Consumer | Other | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	0
Consumer | Other | Weighted-Average | Months of Term Extension
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	22	22
Consumer | Other | Weighted-Average | Payment Deferral
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	0
Consumer | Other | Weighted-Average | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	0
Consumer | Residential Mortgage
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	134
Consumer | Residential Mortgage | Months of Term Extension
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	134
Consumer | Residential Mortgage | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	0
Consumer | Residential Mortgage | Weighted-Average | Months of Term Extension
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications		58
Consumer | Residential Mortgage | Weighted-Average | Payment Deferral
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications		0
Consumer | Residential Mortgage | Weighted-Average | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications		0
Consumer | Home Equity
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	139
Consumer | Home Equity | Months of Term Extension
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	139
Consumer | Home Equity | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	0
Consumer | Home Equity | Weighted-Average | Months of Term Extension
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications		64
Consumer | Home Equity | Weighted-Average | Payment Deferral
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications		0
Consumer | Home Equity | Weighted-Average | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications		0
Consumer | Automobile
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	2,654	4,411
Consumer | Automobile | Months of Term Extension
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	2,654	4,411
Consumer | Automobile | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	0
Consumer | Automobile | Weighted-Average | Months of Term Extension
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	23	23
Consumer | Automobile | Weighted-Average | Payment Deferral
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	0	0
Consumer | Automobile | Weighted-Average | Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Financial effect of loan modifications	$ 0	$ 0

XML

Loans and Leases and the Allowance for Credit Losses - Schedule of Financial Effect of Loan Modifications to Borrowers Experiencing Financial Difficulty that Subsequently Defaulted (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Financing Receivable, Modified [Line Items]
Financing Receivable, Modified, Subsequent Default	$ 76	$ 76
Term Extension
Financing Receivable, Modified [Line Items]
Financing Receivable, Modified, Subsequent Default	38	38
Consumer
Financing Receivable, Modified [Line Items]
Financing Receivable, Modified, Subsequent Default	38	38
Consumer | Term Extension
Financing Receivable, Modified [Line Items]
Financing Receivable, Modified, Subsequent Default	38	38
Consumer | Other
Financing Receivable, Modified [Line Items]
Financing Receivable, Modified, Subsequent Default	15	15
Consumer | Other | Term Extension
Financing Receivable, Modified [Line Items]
Financing Receivable, Modified, Subsequent Default	15	15
Consumer | Automobile
Financing Receivable, Modified [Line Items]
Financing Receivable, Modified, Subsequent Default	23	23
Consumer | Automobile | Term Extension
Financing Receivable, Modified [Line Items]
Financing Receivable, Modified, Subsequent Default	$ 23	$ 23

XML

Loans and Leases and the Allowance for Credit Losses - Schedule of Aging Analysis of Loan Modifications Made to Borrowers Experiencing Financial Difficulty (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	$ 12,806
Current
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	12,271
30 - 59 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	363
60 - 89 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	15
Past Due 90 Days or More
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	23
Non-Accural
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	134
Commercial
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	7,738
Commercial | Current
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	7,738
Commercial | 30 - 59 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Commercial | 60 - 89 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Commercial | Past Due 90 Days or More
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Commercial | Non-Accural
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Commercial | Commercial and Industrial
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	6,786
Commercial | Commercial and Industrial | Current
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	6,786
Commercial | Commercial and Industrial | 30 - 59 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Commercial | Commercial and Industrial | 60 - 89 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Commercial | Commercial and Industrial | Past Due 90 Days or More
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Commercial | Commercial and Industrial | Non-Accural
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Commercial | Commercial Mortgage
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	952
Commercial | Commercial Mortgage | Current
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	952
Commercial | Commercial Mortgage | 30 - 59 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Commercial | Commercial Mortgage | 60 - 89 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Commercial | Commercial Mortgage | Past Due 90 Days or More
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Commercial | Commercial Mortgage | Non-Accural
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Consumer
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	5,068
Consumer | Current
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	4,533
Consumer | 30 - 59 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	363
Consumer | 60 - 89 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	15
Consumer | Past Due 90 Days or More
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	23
Consumer | Non-Accural
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	134
Consumer | Other
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	384
Consumer | Other | Current
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	333
Consumer | Other | 30 - 59 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	36
Consumer | Other | 60 - 89 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	15
Consumer | Other | Past Due 90 Days or More
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Consumer | Other | Non-Accural
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Consumer | Residential Mortgage
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	134
Consumer | Residential Mortgage | Current
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Consumer | Residential Mortgage | 30 - 59 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Consumer | Residential Mortgage | 60 - 89 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Consumer | Residential Mortgage | Past Due 90 Days or More
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Consumer | Residential Mortgage | Non-Accural
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	134
Consumer | Home Equity
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	139
Consumer | Home Equity | Current
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	139
Consumer | Home Equity | 30 - 59 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Consumer | Home Equity | 60 - 89 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Consumer | Home Equity | Past Due 90 Days or More
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Consumer | Home Equity | Non-Accural
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Consumer | Automobile
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	4,411
Consumer | Automobile | Current
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	4,061
Consumer | Automobile | 30 - 59 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	327
Consumer | Automobile | 60 - 89 Days Past Due
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	0
Consumer | Automobile | Past Due 90 Days or More
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	23
Consumer | Automobile | Non-Accural
Financing Receivable, Modified [Line Items]
Loan modifications made to borrowers experiencing financial difficulty	$ 0

XML

Loans and Leases and the Allowance for Credit Losses - Schedule of Loan Class and Year of Origination, Gross Charge-offs Recorded (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Financing Receivable, Modified [Line Items]
Gross charge-offs, 2023	$ 543		$ 543
Gross charge-offs, 2022	1,070		2,393
Gross charge-offs, 2021	684		1,756
Gross charge-offs, 2020	189		537
Gross charge-offs, 2019	491		1,077
Gross charge-offs, Prior	534		1,514
Total Loans and Leases	3,511	$ 3,346	7,820	$ 7,254
Commercial
Financing Receivable, Modified [Line Items]
Gross charge-offs, 2023	185		185
Gross charge-offs, 2022	0		188
Gross charge-offs, 2021	0		0
Gross charge-offs, 2020	0		0
Gross charge-offs, 2019	0		0
Gross charge-offs, Prior	18		91
Total Loans and Leases	203	233	464	582
Commercial | Commercial and Industrial
Financing Receivable, Modified [Line Items]
Gross charge-offs, 2023	185		185
Gross charge-offs, 2022			188
Gross charge-offs, 2021	0		0
Gross charge-offs, 2020	0		0
Gross charge-offs, 2019	0		0
Gross charge-offs, Prior	18		91
Total Loans and Leases	203		464
Consumer
Financing Receivable, Modified [Line Items]
Gross charge-offs, 2023	358		358
Gross charge-offs, 2022	1,070		2,205
Gross charge-offs, 2021	684		1,756
Gross charge-offs, 2020	189		537
Gross charge-offs, 2019	491		1,077
Gross charge-offs, Prior	516		1,423
Total Loans and Leases	3,308	$ 3,113	7,356	$ 6,672
Consumer | Other
Financing Receivable, Modified [Line Items]
Gross charge-offs, 2023	358		358
Gross charge-offs, 2022	512		1,333
Gross charge-offs, 2021	446		1,011
Gross charge-offs, 2020	82		202
Gross charge-offs, 2019	318		713
Gross charge-offs, Prior	288		722
Total Loans and Leases	2,004		4,339
Consumer | Residential Mortgage
Financing Receivable, Modified [Line Items]
Gross charge-offs, 2023	0		0
Gross charge-offs, 2022	0		0
Gross charge-offs, 2021	0		0
Gross charge-offs, 2020	0		0
Gross charge-offs, 2019	0		0
Gross charge-offs, Prior	6		6
Total Loans and Leases	6		6
Consumer | Home Equity
Financing Receivable, Modified [Line Items]
Gross charge-offs, 2023	0		0
Gross charge-offs, 2022	0		0
Gross charge-offs, 2021	0		0
Gross charge-offs, 2020	0
Gross charge-offs, 2019	0		0
Gross charge-offs, Prior	5		55
Total Loans and Leases	5		55
Consumer | Automobile
Financing Receivable, Modified [Line Items]
Gross charge-offs, 2023	0		0
Gross charge-offs, 2022	558		872
Gross charge-offs, 2021	238		745
Gross charge-offs, 2020	107		335
Gross charge-offs, 2019	173		364
Gross charge-offs, Prior	217		640
Total Loans and Leases	$ 1,293		$ 2,956

XML

Mortgage Servicing Rights - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Transfers and Servicing of Financial Assets [Abstract]
Residential mortgage loans serviced for third parties	$ 2,600.0		$ 2,600.0		$ 2,600.0
Servicing income, including late and ancillary fees	$ 1.4	$ 1.5	$ 2.8	$ 3.0

XML

Mortgage Servicing Rights - Summary of Carrying Value Under the Fair Value Measurement Method (Details) - Mortgage Servicing Rights - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Servicing Assets At Fair Value [Line Items]
Balance at Beginning of Period	$ 707	$ 781	$ 717	$ 800
Change in Fair Value Due to Payoffs	(12)	(34)	(22)	(53)
Balance at End of Period	$ 695	$ 747	$ 695	$ 747

XML

Mortgage Servicing Rights - Summary of Carrying Value Under the Amortization Method (Details) - Mortgage Servicing Rights - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Mortgage Servicing Rights Accounted for Under the Amortization Method (Rollforward)
Balance at Beginning of Period	$ 21,395	$ 23,187	$ 21,902	$ 21,451
Servicing Rights that Resulted From Asset Transfers	110	205	176	956
Amortization	(574)	(599)	(1,147)	(1,443)
Valuation Allowance Recovery (Provision)				1,829
Balance at End of Period	20,931	22,793	20,931	22,793
Valuation Allowance:
Balance at Beginning of Period				(1,829)
Valuation Allowance Recovery (Provision)				1,829
Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization Method
Beginning of Period	26,456	26,088	27,323	21,451
End of Period	$ 26,327	$ 28,314	$ 26,327	$ 28,314

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Mortgage Servicing Rights - Schedule of Key Data and Assumptions Used in Estimating the Fair Value (Details) - Mortgage Servicing Rights	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Assumption For Fair Value As Of Balance Sheet Date Of Interests Continued To Be Held By Transferor Servicing Assets Or Liabilities [Line Items]
Weighted-Average Constant Prepayment Rate (as a percent)	3.93%	4.02%
Weighted-Average Life (in years)	9 years 7 months 9 days	9 years 7 months 20 days
Weighted-Average Note Rate (as a percent)	3.62%	3.60%
Weighted-Average Discount Rate (as a percent)	9.71%	9.93%

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Mortgage Servicing Rights - Schedule of Sensitivity Analysis of the Fair Value (Details) - Mortgage Servicing Rights - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Constant Prepayment Rate
Decrease in fair value from 25 basis points (“bps”) adverse change	$ (335)	$ (346)
Decrease in fair value from 50 bps adverse change	(663)	(686)
Discount Rate
Decrease in fair value from 25 bps adverse change	(306)	(316)
Decrease in fair value from 50 bps adverse change	$ (606)	$ (626)

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Affordable Housing Projects Tax Credit Partnerships - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
Net affordable housing tax credit investments including the related unfunded commitments	$ 183,200,000		$ 174,500,000
Write down from impairment of LIHTC Investments	$ 0	$ 0

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Affordable Housing Projects Tax Credit Partnerships - Expected Payments for Unfunded Affordable Housing Commitments (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Affordable Housing Tax Credit Investments, Unfunded Commitment [Abstract]
2023	$ 22,653
2024	24,731
2025	24,115
2026	156
2027	133
Thereafter	12,721
Total Unfunded Commitments	$ 84,509

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Affordable Housing Projects Tax Credit Partnerships - Tax Credits and Other Tax Benefits Recognized and Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Effective Yield Method
Tax Credits and Other Tax Benefits Recognized	$ 1,457	$ 1,528	$ 2,915	$ 3,066
Amortization Expense in Provision for Income Taxes	1,333	1,296	2,666	2,593
Proportional Amortization Method
Tax Credits and Other Tax Benefits Recognized	5,438	3,794	10,876	7,579
Amortization Expense in Provision for Income Taxes	$ 4,713	$ 3,265	$ 9,426	$ 6,529

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Securities Sold Under Agreements to Repurchase - Remaining Contractual Maturities of Repurchase Agreements by Class of Collateral Pledged (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	$ 725,490	$ 725,490
Debt Securities Issued by States and Political Subdivisions
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	490	490
Residential - Government Agencies
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	34,014	28,673
Residential - U.S. Government-Sponsored Enterprises
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	690,986	696,327
Maturity Up To 90 Days
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	0	0
Maturity Up To 90 Days | Debt Securities Issued by States and Political Subdivisions
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	0	0
Maturity Up To 90 Days | Residential - Government Agencies
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	0	0
Maturity Up To 90 Days | Residential - U.S. Government-Sponsored Enterprises
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	0	0
Maturity 91 To 365 Days
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	0	0
Maturity 91 To 365 Days | Debt Securities Issued by States and Political Subdivisions
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	0	0
Maturity 91 To 365 Days | Residential - Government Agencies
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	0	0
Maturity 91 To 365 Days | Residential - U.S. Government-Sponsored Enterprises
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	0	0
Maturity 1 To 3 Years
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	425,490	425,000
Maturity 1 To 3 Years | Debt Securities Issued by States and Political Subdivisions
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	490	0
Maturity 1 To 3 Years | Residential - Government Agencies
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	34,014	28,673
Maturity 1 To 3 Years | Residential - U.S. Government-Sponsored Enterprises
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	390,986	396,327
Maturity After 3 Years
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	300,000	300,490
Maturity After 3 Years | Debt Securities Issued by States and Political Subdivisions
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	0	490
Maturity After 3 Years | Residential - Government Agencies
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	0	0
Maturity After 3 Years | Residential - U.S. Government-Sponsored Enterprises
Assets Sold Under Agreements To Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	$ 300,000	$ 300,000

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Securities Sold Under Agreements to Repurchase - Schedule of Assets and Liabilities Subject to an Enforceable Master Netting Arrangement or Repurchase Agreements (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets:
Gross Amounts of Recognized Assets	$ 162,753	$ 47,717
Liabilities:
Gross Amounts of Recognized Liabilities	162,517	168,037
Repurchase Agreements, Gross Amounts of Recognized Liabilities	725,490	725,490
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition	0	0
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition	725,490	725,490
Securities Sold under Agreements to Repurchase, Net Amount Offset Against Collateral	0	0
Repurchase Agreements, Fair Value of Collateral Pledged	725,490	725,490
Private Institutions
Liabilities:
Repurchase Agreements, Gross Amounts of Recognized Liabilities	725,000	725,000
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition	0	0
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition	725,000	725,000
Securities Sold under Agreements to Repurchase, Net Amount Offset Against Collateral	0	0
Repurchase Agreements, Fair Value of Collateral Pledged	725,000	725,000
Government Entities
Liabilities:
Repurchase Agreements, Gross Amounts of Recognized Liabilities	490	490
Repurchase Agreements, Gross Amounts Offset in the Statements of Condition	0	0
Repurchase Agreements, Net Amounts of Liabilities Presented in the Statements of Condition	490	490
Securities Sold under Agreements to Repurchase, Net Amount Offset Against Collateral	0	0
Repurchase Agreements, Fair Value of Collateral Pledged	490	490
Interest Rate Swap Agreements | Institutional Counterparties
Assets:
Gross Amounts of Recognized Assets	157,910	42,339
Gross Amounts Offset in the Statements of Condition	0	0
Net Amounts of Assets Presented in the Statements of Condition	157,910	42,339
Netting Adjustments per Master Netting Arrangements	157,910	42,339
Gross Amounts Not Offset in the Statements of Condition - FV of collateral pledged	0	0
Derivative Assets, Net Amount	0	0
Liabilities:
Gross Amounts of Recognized Liabilities	4,230	3,554
Gross Amounts Offset in the Statements of Condition	0	0
Net Amounts of Liabilities Presented in the Statements of Condition	4,230	3,554
Derivative Liability, Netting Adjustments per Master Netting Arrangements	4,230	3,554
Derivative, Collateral, Right to Reclaim Securities	0	0
Derivative Liabilities, Net Amount	$ 0	$ 0

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Securities Sold Under Agreements to Repurchase - Schedule of Assets and Liabilities Subject to an Enforceable Master Netting Arrangement or Repurchase Agreements (Parenthetical) (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Interest Rate Swap Agreements
Offsetting Assets And Liabilities [Line Items]
Fair value of investment securities pledged	$ 3.5	$ 34.8
Private Institutions
Offsetting Assets And Liabilities [Line Items]
Fair value of investment securities pledged	763.3	755.9
Government Entities
Offsetting Assets And Liabilities [Line Items]
Fair value of investment securities pledged	$ 0.8	$ 0.8

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Accumulated Other Comprehensive Income (Loss) - AOCI Components Pre Post & Tax Effect (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Other Comprehensive Income (Loss), Before Tax:
Net Unrealized Gains (Losses) Arising During the Period	$ (31,586)		$ (166,878)		$ 1,332	$ (412,026)
Amortization of Unrealized Holding (Gains) Losses on HTM Securities	6,801		(3)		13,714	63
Net Unrealized Gains (Losses) on Investment Securities	(24,785)		(166,881)		15,046	(411,963)
Amortization of Net Actuarial Losses (Gains)	177		542		352	1,084
Amortization of Prior Service Credit	(62)		(61)		(123)	(123)
Defined Benefit Plans, Net	115		481		229	961
Other Comprehensive Income (Loss)	(24,670)		(166,400)		15,275	(411,002)
Other Comprehensive Income (Loss), Tax Effect:
Net Unrealized Gains (Losses) Arising During the Period	(8,371)		(44,233)		352	(109,208)
Amortization of Unrealized Holding (Gains) Losses on HTM Securities	1,803		(1)		3,635	16
Net Unrealized Gains (Losses) on Investment Securities	(6,568)		(44,234)		3,987	(109,192)
Amortization of Net Actuarial Losses (Gains)	46		145		93	288
Amortization of Prior Service Credit	(15)		(16)		(32)	(32)
Defined Benefit Plans, Net	31		129		61	256
Other Comprehensive Income (Loss)	(6,537)		(44,105)		4,048	(108,936)
Other Comprehensive Income (Loss), Net of Tax:
Net Unrealized Gains (Losses) Arising During the Period	(23,215)		(122,645)		980	(302,818)
Amortization of Unrealized Holding (Gains) Losses on HTM Securities	4,998		(2)		10,079	47
Net Unrealized Gains (Losses) on Investment Securities	(18,217)		(122,647)		11,059	(302,771)
Amortization of Net Actuarial Losses (Gains)	131		397		259	796
Amortization of Prior Service Credit	(47)		(45)		(91)	(91)
Defined Benefit Plans, Net	84		352		168	705
Total Other Comprehensive Income (Loss)	$ (18,133)	$ 29,360	$ (122,295)	$ (179,771)	$ 11,227	$ (302,066)

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Accumulated Other Comprehensive Income (Loss) - Change in AOCI Components Net of Tax (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at Beginning of Period	$ 1,354,430	$ 1,316,995	$ 1,448,885	$ 1,611,611	$ 1,316,995	$ 1,611,611
Total Other Comprehensive Income (Loss)	(18,133)	29,360	(122,295)	(179,771)	11,227	(302,066)
Balance at End of Period	1,358,279	1,354,430	1,348,746	1,448,885	1,358,279	1,348,746
Unrealized Gains and Losses on Net Investment Securities | Available-for-sale Securities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at Beginning of Period	(216,588)	(240,783)	(213,113)	(32,940)	(240,783)	(32,940)
Other Comprehensive Income (Loss) Before Reclassifications	(23,215)		(122,645)		980	(302,818)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)	0		0		0	0
Total Other Comprehensive Income (Loss)	(23,215)		(122,645)		980	(302,818)
Balance at End of Period	(239,803)	(216,588)	(335,758)	(213,113)	(239,803)	(335,758)
Unrealized Gains and Losses on Net Investment Securities | Held-to-maturity Securities
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at Beginning of Period	(163,716)	(168,797)	103	54	(168,797)	54
Other Comprehensive Income (Loss) Before Reclassifications	0		0		0	0
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)	4,998		(2)		10,079	47
Total Other Comprehensive Income (Loss)	4,998		(2)		10,079	47
Balance at End of Period	(158,718)	(163,716)	101	103	(158,718)	101
Defined Benefit Plans
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at Beginning of Period	(24,994)	(25,078)	(33,143)	(33,496)	(25,078)	(33,496)
Other Comprehensive Income (Loss) Before Reclassifications	0		0		0	0
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)	84		352		168	705
Total Other Comprehensive Income (Loss)	84		352		168	705
Balance at End of Period	(24,910)	(24,994)	(32,791)	(33,143)	(24,910)	(32,791)
Accum.Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance at Beginning of Period	(405,298)	(434,658)	(246,153)	(66,382)	(434,658)	(66,382)
Other Comprehensive Income (Loss) Before Reclassifications	(23,215)		(122,645)		980	(302,818)
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)	5,082		350		10,247	752
Total Other Comprehensive Income (Loss)	(18,133)	29,360	(122,295)	(179,771)	11,227	(302,066)
Balance at End of Period	$ (423,431)	$ (405,298)	$ (368,448)	$ (246,153)	$ (423,431)	$ (368,448)

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Accumulated Other Comprehensive Income (Loss) - AOCI Reclass to IS (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]
Salaries and Benefits	$ (56,175)		$ (57,769)		$ (121,263)	$ (117,693)
Provision for Income Tax	(15,006)		(17,759)		(30,937)	(33,365)
Net Income (Loss)	46,061	$ 46,842	56,862	$ 54,834	92,903	111,696
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]
Net Income (Loss)	(5,082)		(350)		(10,247)	(752)
Reclassification out of Accumulated Other Comprehensive Income | Amortization of Unrealized Gains(Losses) of Investment Securities Transferred from AFS to HTM
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]
Interest Income	(6,801)		3		(13,714)	(63)
Provision for Income Tax	1,803		(1)		3,635	16
Net Income (Loss)	(4,998)		2		(10,079)	(47)
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]
Salaries and Benefits	62		61		123	123
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]
Salaries and Benefits	(177)		(542)		(352)	(1,084)
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment Attributable to Parent
Reclassification Out of Accumulated Other Comprehensive Income [Line Items]
Salaries and Benefits	(115)		(481)		(229)	(961)
Provision for Income Tax	31		129		61	256
Net Income (Loss)	$ (84)		$ (352)		$ (168)	$ (705)

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Earnings Per Common Share - Schedule of Reconciliation of Weighted Average Number of Common Shares Used in the Calculation of Basic and Diluted Earnings Per Common Share and Antidilutive Stock Options and Restricted Stock Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net Income Available to Common Shareholders	$ 44,092	$ 54,893	$ 88,965	$ 107,758
Denominator:
Weighted Average Common Shares Outstanding - Basic	39,241,559	39,693,593	39,259,279	39,722,985
Dilutive Effect of Equity Based Awards (in shares)	75,962	149,015	123,080	173,715
Weighted Average Common Shares Outstanding - Diluted	39,317,521	39,842,608	39,382,359	39,896,700
Earnings Per Common Share:
Basic	$ 1.12	$ 1.38	$ 2.27	$ 2.71
Diluted	$ 1.12	$ 1.38	$ 2.26	$ 2.7
Antidilutive Stock Options and Restricted Stock Outstanding (in shares)	411,640	201,422	226,646	160,670

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Business Segments - Additional Information (Details)	6 Months Ended
	Jun. 30, 2023 Branch Atms
Business segment financial information
Federal and state effective tax rate used for segment reporting	26.00%
Consumer Banking
Business segment financial information
Number of branch locations through which products and services are delivered to customers | Branch	51
Number of ATM's through which products and services are delivered to customers | Atms	320

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Business Segments - Selected Business Segment Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Business segment financial information
Net Interest Income	$ 124,348		$ 132,902		$ 260,303	$ 258,165
Provision for Credit Losses	2,500		(2,500)		4,500	(8,000)
Net Interest Income (Loss) After Provision for Credit Losses	121,848		135,402		255,803	266,165
Noninterest Income	43,255		42,158		83,992	85,709
Noninterest Expense	(104,036)		(102,939)		(215,955)	(206,813)
Income (Loss) Before Provision for Income Taxes	61,067		74,621		123,840	145,061
Provision for Income Taxes	(15,006)		(17,759)		(30,937)	(33,365)
Net Income (Loss)	46,061	$ 46,842	56,862	$ 54,834	92,903	111,696
Total Assets	24,947,936		23,232,699		24,947,936	23,232,699	$ 23,606,877
Consumer Banking
Business segment financial information
Net Interest Income	99,814		76,872		197,822	147,233
Provision for Credit Losses	1,392		632		4,061	2,315
Net Interest Income (Loss) After Provision for Credit Losses	98,422		76,240		193,761	144,918
Noninterest Income	31,944		31,868		63,098	63,837
Noninterest Expense	(81,275)		(82,856)		(166,348)	(164,666)
Income (Loss) Before Provision for Income Taxes	49,091		25,252		90,511	44,089
Provision for Income Taxes	(12,645)		(6,339)		(23,268)	(11,053)
Net Income (Loss)	36,446		18,913		67,243	33,036
Total Assets	8,739,294		8,205,352		8,739,294	8,205,352
Commercial Banking
Business segment financial information
Net Interest Income	53,673		49,791		110,378	96,140
Provision for Credit Losses	(15)		(1)		(16)	(198)
Net Interest Income (Loss) After Provision for Credit Losses	53,688		49,792		110,394	96,338
Noninterest Income	7,939		8,363		16,588	18,561
Noninterest Expense	(19,302)		(17,014)		(39,591)	(35,683)
Income (Loss) Before Provision for Income Taxes	42,325		41,141		87,391	79,216
Provision for Income Taxes	(10,710)		(10,252)		(21,503)	(19,449)
Net Income (Loss)	31,615		30,889		65,888	59,767
Total Assets	5,714,929		5,339,224		5,714,929	5,339,224
Treasury and Other
Business segment financial information
Net Interest Income	(29,139)		6,239		(47,897)	14,792
Provision for Credit Losses	1,123		(3,131)		455	(10,117)
Net Interest Income (Loss) After Provision for Credit Losses	(30,262)		9,370		(48,352)	24,909
Noninterest Income	3,372		1,927		4,306	3,311
Noninterest Expense	(3,459)		(3,069)		(10,016)	(6,464)
Income (Loss) Before Provision for Income Taxes	(30,349)		8,228		(54,062)	21,756
Provision for Income Taxes	8,349		(1,168)		13,834	(2,863)
Net Income (Loss)	(22,000)		7,060		(40,228)	18,893
Total Assets	$ 10,493,713		$ 9,688,123		$ 10,493,713	$ 9,688,123

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Derivative Financial Instruments - Schedule of the Notional Amount and Fair Value of the Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Derivatives designated as hedging instruments | Interest Rate Swap Agreements
Derivative [Line Items]
Notional Amount	$ 200,000	$ 0
Fair Value	434	0
Derivatives not designated as hedging instruments | Interest Rate Lock Commitments
Derivative [Line Items]
Notional Amount	11,353	3,860
Fair Value	225	58
Derivatives not designated as hedging instruments | Forward Commitments
Derivative [Line Items]
Notional Amount	11,531	3,256
Fair Value	32	6
Derivatives not designated as hedging instruments | Receive Fixed / Pay Variable Swap
Derivative [Line Items]
Notional Amount	1,911,911	1,821,433
Fair Value	(154,136)	(160,914)
Derivatives not designated as hedging instruments | Pay Fixed / Receive Variable Swap
Derivative [Line Items]
Notional Amount	1,911,911	1,821,433
Fair Value	153,680	38,785
Derivatives not designated as hedging instruments | Foreign Exchange Contracts
Derivative [Line Items]
Notional Amount	349	52,065
Fair Value	1	1,745
Derivatives not designated as hedging instruments | Visa Conversion Rate Swap Agreement
Derivative [Line Items]
Notional Amount	141,804	$ 124,752
Fair Value	$ 0

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Derivative Financial Instruments - Derivative Financial Instruments, their Fair Values, and Balance Sheet Location (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Derivatives Fair Value [Line Items]
Asset Derivatives	$ 162,753	$ 47,717
Liability Derivatives	162,517	168,037
Derivatives designated as hedging instruments | Interest Rate Swap Agreements
Derivatives Fair Value [Line Items]
Asset Derivatives	434	0
Liability Derivatives	0	0
Derivatives not designated as hedging instruments | Interest Rate Lock Commitments
Derivatives Fair Value [Line Items]
Asset Derivatives	225	64
Liability Derivatives	0	6
Derivatives not designated as hedging instruments | Forward Commitments
Derivatives Fair Value [Line Items]
Asset Derivatives	33	10
Liability Derivatives	1	4
Derivatives not designated as hedging instruments | Interest Rate Swap Agreements
Derivatives Fair Value [Line Items]
Asset Derivatives	162,060	45,831
Liability Derivatives	162,516	167,960
Derivatives not designated as hedging instruments | Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Asset Derivatives	1	1,812
Liability Derivatives	$ 0	$ 67

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Derivative Financial Instruments - Derivative Financial Instruments and the Amount and Location of the Net Gains or Losses Recognized in the Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative Instruments Gain Loss [Line Items]
Net gains (losses) recognized in the statements of income	$ 1,165	$ 635	$ 2,163	$ 1,731
Derivatives designated as hedging instruments
Derivative Instruments Gain Loss [Line Items]
Net gains (losses) recognized in the statements of income	$ (435)	$ 0	$ (435)	$ 0
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest And Fee Income For Loans And Leases	Interest And Fee Income For Loans And Leases	Interest And Fee Income For Loans And Leases	Interest And Fee Income For Loans And Leases
Derivatives designated as hedging instruments | Interest Rate Swap Agreements
Derivative Instruments Gain Loss [Line Items]
Net gains (losses) recognized in the statements of income	$ 434	$ 0	$ 434	$ 0
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest And Fee Income For Loans And Leases	Interest And Fee Income For Loans And Leases	Interest And Fee Income For Loans And Leases	Interest And Fee Income For Loans And Leases
Derivatives not designated as hedging instruments | Interest Rate Lock Commitments
Derivative Instruments Gain Loss [Line Items]
Net gains (losses) recognized in the statements of income	$ 274	$ 66	$ 478	$ (1,013)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Mortgage Banking Income	Mortgage Banking Income	Mortgage Banking Income	Mortgage Banking Income
Derivatives not designated as hedging instruments | Forward Commitments
Derivative Instruments Gain Loss [Line Items]
Net gains (losses) recognized in the statements of income	$ 92	$ 314	$ 61	$ 2,221
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Mortgage Banking Income	Mortgage Banking Income	Mortgage Banking Income	Mortgage Banking Income
Derivatives not designated as hedging instruments | Interest Rate Swap Agreements
Derivative Instruments Gain Loss [Line Items]
Net gains (losses) recognized in the statements of income	$ (2)	$ 23	$ (18)	$ 17
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
Derivatives not designated as hedging instruments | Foreign Exchange Contracts
Derivative Instruments Gain Loss [Line Items]
Net gains (losses) recognized in the statements of income	$ 802	$ 232	$ 1,643	$ 506
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

XML

Derivative Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position Related to Cumulative Basis Adjustment for Fair Value Hedges (Details) - Designated as Hedging Instruments $ in Thousands	Jun. 30, 2023 USD ($)
Fair value hedges [line items]
Carrying Amount of the Hedged Assets	$ (435)	[1]
Cummulative Amount of Fair Value Hedging Adjustment Included In the Carrying Amount of the Hedged Assets	$ (435)	[1]
Hedged Asset, Statement of Financial Position [Extensible Enumeration]	Loans and Leases Receivable, Net of Deferred Income

[1] These amounts were included in the amortized cost basis of closed portfolios of loans used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At June 30, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $3.3 billion.

XML

Derivative Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position Related to Cumulative Basis Adjustment for Fair Value Hedges (Parenthetical) (Details) $ in Billions	Jun. 30, 2023 USD ($)
Derivative Instruments, Fair Value Hedges [Line items]
Amortized Cost of closed portfolio	$ 3.3

XML

Derivative Financial Instruments - Additional Information (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Derivative [Line Items]
Amortized Cost of closed portfolio	$ 3,300,000,000
Interest Rate Swap
Derivative [Line Items]
Net asset positions, aggregate fair value	153,700,000	$ 38,800,000
Interest Rate Swap | Designated as Hedging Instruments
Derivative [Line Items]
Notional Amount	200,000,000	0
Visa Class B Restricted Securities
Derivative [Line Items]
Liability derivatives	$ 0	$ 0

XML

Commitments and Contingencies - Credit Commitments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Credit Commitments [Line Items]
Credit Commitments	$ 3,718,830	$ 3,746,414
Unfunded Commitments to Extend Credit
Credit Commitments [Line Items]
Credit Commitments	3,597,648	3,592,872
Standby Letters of Credit
Credit Commitments [Line Items]
Credit Commitments	100,495	129,512
Commercial Letters of Credit
Credit Commitments [Line Items]
Credit Commitments	$ 20,687	$ 24,030

XML

Commitments and Contingencies - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Standby Letters of Credit
Representations and warranties [Line Items]
Assets secured for standby letters of credit	$ 75.7
Standby and Commercial Letters Of Credit | Minimum
Representations and warranties [Line Items]
Standby and commercial letters of credit remaining term	1 month
Standby and Commercial Letters Of Credit | Maximum
Representations and warranties [Line Items]
Standby and commercial letters of credit remaining term	13 months

XML

Fair Value of Assets and Liabilities - Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Assets:
Available-for-Sale: Fair Value	$ 2,666,723	$ 2,844,823
Loans Held for Sale	3,359	1,035
Debt Securities Issued by States and Political Subdivisions
Assets:
Available-for-Sale: Fair Value	96,540	95,265
Debt Securities Issued by Government-Sponsored Enterprises
Assets:
Available-for-Sale: Fair Value	1,637	48,628
Debt Securities Issued by Corporations
Assets:
Available-for-Sale: Fair Value	788,754	794,658
Residential - Government Agencies
Assets:
Available-for-Sale: Fair Value	675,204	732,828
Residential - U.S. Government-Sponsored Enterprises
Assets:
Available-for-Sale: Fair Value	744,714	793,871
Mortgage-Backed Securities
Assets:
Available-for-Sale: Fair Value	1,558,711	1,672,366
Commercial - Government Agencies or Sponsored Agencies
Assets:
Available-for-Sale: Fair Value	138,793	145,667
Fair Value, Measurements, Recurring
Assets:
Available-for-Sale: Fair Value	2,666,723	2,844,823
Loans Held for Sale	3,359	1,035
Mortgage Servicing Rights	695	717
Other Assets	53,202	47,755
Derivatives	162,753	47,717
Total Assets Measured at Fair Value on a Recurring Basis	2,886,732	2,942,047
Liabilities:
Derivatives	$ 162,517	$ 168,037
Derivative Liability Statement Of Financial Position [ExtensibleEnumeration]	Other Liabilities	Other Liabilities
Total Liabilities Measured at Fair Value on a Recurring Basis	$ 162,517	$ 168,037
Fair Value, Measurements, Recurring | Debt Securities Issued by the U.S. Treasury and Government Agencies
Assets:
Available-for-Sale: Fair Value	221,081	233,906
Fair Value, Measurements, Recurring | Debt Securities Issued by States and Political Subdivisions
Assets:
Available-for-Sale: Fair Value	96,540	95,265
Fair Value, Measurements, Recurring | Debt Securities Issued by Government-Sponsored Enterprises
Assets:
Available-for-Sale: Fair Value	1,637	48,628
Fair Value, Measurements, Recurring | Debt Securities Issued by Corporations
Assets:
Available-for-Sale: Fair Value	788,754	794,658
Fair Value, Measurements, Recurring | Residential - Government Agencies
Assets:
Available-for-Sale: Fair Value	675,204	732,828
Fair Value, Measurements, Recurring | Residential - U.S. Government-Sponsored Enterprises
Assets:
Available-for-Sale: Fair Value	744,714	793,871
Fair Value, Measurements, Recurring | Commercial - Government Agencies
Assets:
Available-for-Sale: Fair Value	138,793
Fair Value, Measurements, Recurring | Mortgage-Backed Securities
Assets:
Available-for-Sale: Fair Value	1,558,711	1,672,366
Fair Value, Measurements, Recurring | Commercial - Government Agencies or Sponsored Agencies
Assets:
Available-for-Sale: Fair Value		145,667
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)
Assets:
Available-for-Sale: Fair Value	142,478	141,944
Loans Held for Sale	0	0
Mortgage Servicing Rights	0	0
Other Assets	53,202	47,755
Derivatives	0	0
Total Assets Measured at Fair Value on a Recurring Basis	195,680	189,699
Liabilities:
Derivatives	$ 0	$ 0
Derivative Liability Statement Of Financial Position [ExtensibleEnumeration]	Other Liabilities	Other Liabilities
Total Liabilities Measured at Fair Value on a Recurring Basis	$ 0	$ 0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Debt Securities Issued by the U.S. Treasury and Government Agencies
Assets:
Available-for-Sale: Fair Value	142,478	141,944
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Debt Securities Issued by States and Political Subdivisions
Assets:
Available-for-Sale: Fair Value	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Debt Securities Issued by Government-Sponsored Enterprises
Assets:
Available-for-Sale: Fair Value	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Debt Securities Issued by Corporations
Assets:
Available-for-Sale: Fair Value	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Residential - Government Agencies
Assets:
Available-for-Sale: Fair Value	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Residential - U.S. Government-Sponsored Enterprises
Assets:
Available-for-Sale: Fair Value	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Commercial - Government Agencies
Assets:
Available-for-Sale: Fair Value	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Mortgage-Backed Securities
Assets:
Available-for-Sale: Fair Value	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Commercial - Government Agencies or Sponsored Agencies
Assets:
Available-for-Sale: Fair Value		0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Assets:
Available-for-Sale: Fair Value	2,524,245	2,702,879
Loans Held for Sale	3,359	1,035
Mortgage Servicing Rights	0	0
Other Assets	0	0
Derivatives	34	1,822
Total Assets Measured at Fair Value on a Recurring Basis	2,527,638	2,705,736
Liabilities:
Derivatives	$ 0	$ 70
Derivative Liability Statement Of Financial Position [ExtensibleEnumeration]	Other Liabilities	Other Liabilities
Total Liabilities Measured at Fair Value on a Recurring Basis	$ 0	$ 70
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by the U.S. Treasury and Government Agencies
Assets:
Available-for-Sale: Fair Value	78,603	91,962
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by States and Political Subdivisions
Assets:
Available-for-Sale: Fair Value	96,540	95,265
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by Government-Sponsored Enterprises
Assets:
Available-for-Sale: Fair Value	1,637	48,628
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities Issued by Corporations
Assets:
Available-for-Sale: Fair Value	788,754	794,658
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential - Government Agencies
Assets:
Available-for-Sale: Fair Value	675,204	732,828
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential - U.S. Government-Sponsored Enterprises
Assets:
Available-for-Sale: Fair Value	744,714	793,871
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial - Government Agencies
Assets:
Available-for-Sale: Fair Value	138,793
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-Backed Securities
Assets:
Available-for-Sale: Fair Value	1,558,711	1,672,366
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3)
Assets:
Available-for-Sale: Fair Value	0	0
Loans Held for Sale	0	0
Mortgage Servicing Rights	695	717
Other Assets	0	0
Derivatives	162,719	45,895
Total Assets Measured at Fair Value on a Recurring Basis	163,414	46,612
Liabilities:
Derivatives	$ 162,517	$ 167,967
Derivative Liability Statement Of Financial Position [ExtensibleEnumeration]	Other Liabilities	Other Liabilities
Total Liabilities Measured at Fair Value on a Recurring Basis	$ 162,517	$ 167,967
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Debt Securities Issued by the U.S. Treasury and Government Agencies
Assets:
Available-for-Sale: Fair Value	0	0
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Debt Securities Issued by States and Political Subdivisions
Assets:
Available-for-Sale: Fair Value	0	0
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Debt Securities Issued by Government-Sponsored Enterprises
Assets:
Available-for-Sale: Fair Value	0	0
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Debt Securities Issued by Corporations
Assets:
Available-for-Sale: Fair Value	0	0
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Residential - Government Agencies
Assets:
Available-for-Sale: Fair Value	0	0
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Residential - U.S. Government-Sponsored Enterprises
Assets:
Available-for-Sale: Fair Value	0	0
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Commercial - Government Agencies
Assets:
Available-for-Sale: Fair Value	0
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Mortgage-Backed Securities
Assets:
Available-for-Sale: Fair Value	$ 0	0
Fair Value, Measurements, Recurring | Significant Other Unobservable Inputs (Level 3) | Commercial - Government Agencies or Sponsored Agencies
Assets:
Available-for-Sale: Fair Value		$ 0

XML

Fair Value of Assets and Liabilities - Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation Calculation Roll Forward
Fair Value, Mortgage Servicing Rights, Beginning Balance	$ 707	$ 781	$ 717	$ 800
Fair Value, Mortgage Servicing Rights, Realized and Unrealized Net Gains (Losses) Included in Net Income	$ (12)	$ (34)	$ (22)	$ (53)
Fair Value Recurring Basis Unobservable Input Reconciliation Asset Gain Loss Statement Of Income Extensible List	Net Interest Income	Net Interest Income	Net Interest Income	Net Interest Income
Fair Value, Mortgage Servicing Rights, Ending Balance	$ 695	$ 747	$ 695	$ 747
Fair Value, Mortgage Service Rights, Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held	0	0	0	0
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation Roll Forward
Fair Value, Net Derivative Assets and Liabilities, Beginning Balance	(52,838)	(50,429)	(122,071)	23,904
Fair Value, Net Derivative Assets and Liabilities, Realized and Unrealized Net Gains (Losses) Included in Net Income	$ 272	$ 90	$ 460	$ (996)
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Net Interest Income	Net Interest Income	Net Interest Income	Net Interest Income
Fair Value, Net Derivative Assets and Liabilities, Transfers to Loans Held for Sale	$ (223)	$ 58	$ (311)	$ 172
Variation margin payments for swap liabilities	52,991	(32,667)	122,124	(106,028)
Fair Value, Net Derivative Assets and Liabilities, Ending Balance	202	(82,948)	202	(82,948)
Fair Value, Net Derivative Assets and Liabilities,Total Unrealized Net Gains (Losses) Included in Net Income Related to Assets Still Held	$ 272	$ 89	$ 460	$ (996)

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Fair Value of Assets and Liabilities - Summary of the Significant Unobservable Inputs (Details) - Significant Other Unobservable Inputs (Level 3) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Discounted Cash Flow | Interest Rate Swap
Level3 Assets And Liabilities Fair Value And Fair Value Unobservable Inputs [Line Items]
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net	$ (23)	$ (122,129)
Discounted Cash Flow | Weighted Average Constant Prepayment Rate (as a percent)
Level3 Assets And Liabilities Fair Value And Fair Value Unobservable Inputs [Line Items]
Mortgage Servicing Rights, Fair Value Inputs	0.0971	0.0993
Discounted Cash Flow | Weighted Average Credit Factor (as a percent) | Interest Rate Swap
Level3 Assets And Liabilities Fair Value And Fair Value Unobservable Inputs [Line Items]
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Fair Value Inputs	0.0001	0.0001
Discounted Cash Flow | Mortgage Servicing Rights
Level3 Assets And Liabilities Fair Value And Fair Value Unobservable Inputs [Line Items]
Mortgage Servicing Rights, at Fair Value	$ 27,022	$ 28,040
Discounted Cash Flow | Mortgage Servicing Rights | Weighted Average Constant Prepayment Rate (as a percent)
Level3 Assets And Liabilities Fair Value And Fair Value Unobservable Inputs [Line Items]
Mortgage Servicing Rights, Fair Value Inputs	0.0393	0.0402
Pricing Model | Interest Rate Lock Commitments
Level3 Assets And Liabilities Fair Value And Fair Value Unobservable Inputs [Line Items]
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net	$ 225	$ 58
Pricing Model | Weighted Average Closing Ratio (as a percent) | Interest Rate Lock Commitments
Level3 Assets And Liabilities Fair Value And Fair Value Unobservable Inputs [Line Items]
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Fair Value Inputs	0.923	0.9286
Minimum [Member] | Discounted Cash Flow | Weighted Average Constant Prepayment Rate (as a percent)
Level3 Assets And Liabilities Fair Value And Fair Value Unobservable Inputs [Line Items]
Mortgage Servicing Rights, Fair Value Inputs	0.0922	0.087
Minimum [Member] | Discounted Cash Flow | Weighted Average Credit Factor (as a percent) | Interest Rate Swap
Level3 Assets And Liabilities Fair Value And Fair Value Unobservable Inputs [Line Items]
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Fair Value Inputs	0	0
Minimum [Member] | Discounted Cash Flow | Mortgage Servicing Rights
Level3 Assets And Liabilities Fair Value And Fair Value Unobservable Inputs [Line Items]
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities, Discount Rate	3.05%	2.81%
Minimum [Member] | Pricing Model | Weighted Average Closing Ratio (as a percent) | Interest Rate Lock Commitments
Level3 Assets And Liabilities Fair Value And Fair Value Unobservable Inputs [Line Items]
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Fair Value Inputs	0.841	0.841
Maximum | Discounted Cash Flow | Weighted Average Constant Prepayment Rate (as a percent)
Level3 Assets And Liabilities Fair Value And Fair Value Unobservable Inputs [Line Items]
Mortgage Servicing Rights, Fair Value Inputs	0.1092	0.104
Maximum | Discounted Cash Flow | Weighted Average Credit Factor (as a percent) | Interest Rate Swap
Level3 Assets And Liabilities Fair Value And Fair Value Unobservable Inputs [Line Items]
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Fair Value Inputs	0.0403	0.0049
Maximum | Discounted Cash Flow | Mortgage Servicing Rights
Level3 Assets And Liabilities Fair Value And Fair Value Unobservable Inputs [Line Items]
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities, Discount Rate	11.06%	10.63%
Maximum | Pricing Model | Weighted Average Closing Ratio (as a percent) | Interest Rate Lock Commitments
Level3 Assets And Liabilities Fair Value And Fair Value Unobservable Inputs [Line Items]
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Fair Value Inputs	0.99	0.99

XML

Fair Value of Assets and Liabilities - Schedule of Assets Measured at Fair Value on Nonrecurring Basis (Details) - Significant Other Unobservable Inputs (Level 3) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net Carrying Amount	$ 20,931	$ 21,902
Valuation Allowance	$ 0	$ 0

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Fair Value of Assets and Liabilities - Schedule of Difference between Aggregate Fair Value and Aggregate Unpaid Principal Balance (Details) - Residential Mortgage Loans Held For Sale - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value Option Quantitative Disclosures [Line Items]
Aggregate Fair Value	$ 3,359	$ 1,035
Aggregate Unpaid Principal	3,348	1,016
Aggregate Fair Value Less Aggregate Unpaid Principal	$ 11	$ 19

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Fair Value of Assets and Liabilities - Schedule of Carrying Amount, Fair Value, and Fair Value Hierarchy of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financial Instruments - Assets
Held-to-Maturity: Fair Value	$ 4,411,003	$ 4,615,393
Carrying Amount
Financial Instruments - Assets
Held-to-Maturity: Fair Value	5,202,698	5,414,139
Loans	13,652,102	13,371,226
Financial Instruments - Liabilities
Time Deposits	2,664,679	1,705,737
Securities Sold Under Agreements to Repurchase	725,490	725,490
Other Debt	1,750,000	400,000
Fair Value
Financial Instruments - Assets
Held-to-Maturity: Fair Value	4,411,003	4,615,393
Loans	12,640,810	12,386,615
Financial Instruments - Liabilities
Time Deposits	2,628,658	1,679,777
Securities Sold Under Agreements to Repurchase	716,935	718,614
Other Debt	1,731,736	402,877
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) | Fair Value
Financial Instruments - Assets
Held-to-Maturity: Fair Value	114,012	113,417
Loans	0	0
Financial Instruments - Liabilities
Time Deposits	0	0
Securities Sold Under Agreements to Repurchase	0	0
Other Debt	0	0
Significant Other Observable Inputs (Level 2) | Fair Value
Financial Instruments - Assets
Held-to-Maturity: Fair Value	4,296,991	4,501,976
Loans	0	0
Financial Instruments - Liabilities
Time Deposits	2,628,658	1,679,777
Securities Sold Under Agreements to Repurchase	716,935	718,614
Other Debt	1,731,736	402,877
Significant Other Unobservable Inputs (Level 3) | Fair Value
Financial Instruments - Assets
Held-to-Maturity: Fair Value	0	0
Loans	12,640,810	12,386,615
Financial Instruments - Liabilities
Time Deposits	0	0
Securities Sold Under Agreements to Repurchase	$ 0	0
Other Debt		$ 0