EX-99.1 6 a2230674zex-99_1.htm EX-99.1

Exhibit 99.1

FIRST HAWAIIAN, INC.

Unaudited Consolidated and Combined Financial Data

Financial Highlights |

|  | For the Three Months Ended |  | For the Year Ended |
|  | December 31, |  | September 30, |  | December 31, |  | December 31, |
(dollars in thousands except per share data) |  | 2016 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Operating Results: |  |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 131,250 |  | $ | 122,683 |  | $ | 116,222 |  | $ | 491,672 |  | $ | 461,325 |
Provision for loan and lease losses |  | 3,900 |  | 2,100 |  | 2,500 |  | 8,600 |  | 9,900 |
Noninterest income |  | 49,021 |  | 48,690 |  | 47,188 |  | 217,601 |  | 211,403 |
Noninterest expense |  | 82,503 |  | 82,804 |  | 80,294 |  | 328,844 |  | 319,601 |
Net income |  | 56,552 |  | 53,235 |  | 50,211 |  | 230,178 |  | 213,780 |
Basic earnings per share |  | 0.41 |  | 0.38 |  | 0.36 |  | 1.65 |  | 1.53 |
Diluted earnings per share |  | 0.41 |  | 0.38 |  | 0.36 |  | 1.65 |  | 1.53 |
Dividends declared per share |  | 0.20 |  | 0.20 |  | N/A |  | 0.62 |  | N/A |
Dividend payout ratio |  | 49.35 | % | 52.39 | % | N/A |  | 37.27 | % | N/A |
Supplemental Income Statement Data (non-GAAP): |  |  |  |  |  |  |  |  |  |  |
Core net interest income |  | $ | 131,250 |  | $ | 122,683 |  | $ | 116,222 |  | $ | 491,672 |  | $ | 456,489 |
Core noninterest income |  | 47,505 |  | 48,690 |  | 46,582 |  | 190,357 |  | 188,197 |
Core noninterest expense |  | 81,920 |  | 79,714 |  | 80,294 |  | 322,624 |  | 319,601 |
Core net income |  | 56,001 |  | 55,177 |  | 49,834 |  | 217,111 |  | 196,315 |
Core basic earnings per share |  | $ | 0.40 |  | $ | 0.40 |  | $ | 0.36 |  | $ | 1.56 |  | $ | 1.41 |
Core diluted earnings per share |  | $ | 0.40 |  | $ | 0.40 |  | $ | 0.36 |  | $ | 1.56 |  | $ | 1.41 |
Performance Ratio: |  |  |  |  |  |  |  |  |  |  |
Net interest margin |  | 2.99 | % | 2.87 | % | 2.71 | % | 2.88 | % | 2.78 | %
Core net interest margin (non-GAAP) |  | 2.99 | % | 2.87 | % | 2.71 | % | 2.88 | % | 2.75 | %
Efficiency ratio |  | 45.76 | % | 48.31 | % | 49.13 | % | 46.36 | % | 47.50 | %
Core efficiency ratio (non-GAAP) |  | 45.82 | % | 46.51 | % | 49.32 | % | 47.30 | % | 49.57 | %
Return on average total assets |  | 1.14 | % | 1.10 | % | 1.04 | % | 1.19 | % | 1.14 | %
Core return on average total assets (non-GAAP) |  | 1.13 | % | 1.14 | % | 1.03 | % | 1.12 | % | 1.05 | %
Return on average tangible assets |  | 1.20 | % | 1.16 | % | 1.09 | % | 1.26 | % | 1.20 | %
Core return on average tangible assets (non-GAAP) |  | 1.19 | % | 1.20 | % | 1.09 | % | 1.18 | % | 1.10 | %
Return on average total stockholders’ equity |  | 8.97 | % | 8.45 | % | 7.23 | % | 8.96 | % | 7.81 | %
Core return on average total stockholders’ equity (non-GAAP) |  | 8.88 | % | 8.76 | % | 7.17 | % | 8.45 | % | 7.18 | %
Return on average tangible stockholders’ equity |  | 14.88 | % | 14.02 | % | 11.31 | % | 14.64 | % | 12.28 | %
Core return on average tangible stockholders’ equity (non-GAAP) |  | 14.73 | % | 14.53 | % | 11.22 | % | 13.80 | % | 11.28 | %
Average Balances: |  |  |  |  |  |  |  |  |  |  |
Average loans and leases |  | $ | 11,531,684 |  | $ | 11,261,710 |  | $ | 10,613,863 |  | $ | 11,175,213 |  | $ | 10,297,834 |
Average earning assets |  | 17,482,648 |  | 17,028,930 |  | 17,047,767 |  | 17,093,114 |  | 16,619,854 |
Average assets |  | 19,778,918 |  | 19,314,668 |  | 19,208,603 |  | 19,334,653 |  | 18,785,701 |
Average deposits |  | 16,861,525 |  | 16,392,125 |  | 15,795,021 |  | 16,275,811 |  | 15,319,238 |
Average shareholders’ equity |  | 2,507,514 |  | 2,506,099 |  | 2,756,977 |  | 2,568,219 |  | 2,735,786 |
Per Share of Common Stock: |  |  |  |  |  |  |  |  |  |  |
Book value |  | $ | 17.75 |  | $ | 18.09 |  | $ | 19.63 |  | $ | 17.75 |  | $ | 19.63 |
Tangible book value |  | 10.61 |  | 10.96 |  | 12.49 |  | 10.62 |  | 12.49 |
Market Value |  |  |  |  |  |  |  |  |  |  |
Closing |  | 34.82 |  | 26.86 |  | N/A |  | 34.82 |  | N/A |
High |  | 35.47 |  | 27.97 |  | N/A |  | 35.47 |  | N/A |
Low |  | 25.80 |  | 24.25 |  | N/A |  | 24.25 |  | N/A |

|  | As of |  | As of |  | As of |
|  | December 31, |  | September 30, |  | December 31, |
|  | 2016 |  | 2016 |  | 2015 |
Balance Sheet Data: |  |  |  |  |  |  |
Loans and leases |  | $ | 11,520,378 |  | $ | 11,396,555 |  | $ | 10,722,030 |
Total assets |  | 19,661,829 |  | 19,892,693 |  | 19,352,681 |
Total deposits |  | 16,794,532 |  | 16,965,527 |  | 16,061,924 |
Total stockholders’ equity |  | 2,476,485 |  | 2,523,963 |  | 2,736,941 |
Asset Quality Ratios: |  |  |  |  |  |  |
Non-accrual loans and leases / total loans and leases |  | 0.08 | % | 0.08 | % | 0.16 | %
Allowance for loan and lease losses / total loans and leases |  | 1.18 | % | 1.18 | % | 1.26 | %
Capital Ratios: |  |  |  |  |  |  |
Common Equity Tier 1 Capital Ratio |  | 12.75 | % | 12.48 | % | 15.31 | %
Tier 1 Capital Ratio |  | 12.75 | % | 12.48 | % | 15.31 | %
Total Capital Ratio |  | 13.85 | % | 13.59 | % | 16.48 | %
Tier 1 Leverage Ratio |  | 8.36 | % | 8.41 | % | 9.84 | %
Total stockholders’ equity to total assets |  | 12.60 | % | 12.69 | % | 14.14 | %
Tangible stockholders’ equity to tangible assets (non-GAAP) |  | 7.93 | % | 8.09 | % | 9.49 | %
Non-Financial Data: |  |  |  |  |  |  |
Number of branches |  | 62 |  | 62 |  | 62 |
Number of ATMs |  | 311 |  | 312 |  | 311 |
Number of Full-Time Equivalent Employees |  | 2,179 |  | 2,197 |  | 2,157 |

Consolidated Statements of Income |

|  | Three Months Ended |  | For the Year Ended |
|  | December 31, |  | September 30, |  | December 31, |  | December 31, |
(dollars in thousands except per share amounts) |  | 2016 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Interest income |  |  |  |  |  |  |  |  |  |  |
Loans and lease financing |  | $ | 111,461 |  | $ | 106,900 |  | $ | 102,108 |  | $ | 428,419 |  | $ | 405,702 |
Available-for-sale securities |  | 25,884 |  | 21,123 |  | 18,549 |  | 83,019 |  | 73,615 |
Other |  | 968 |  | 1,311 |  | 1,450 |  | 7,082 |  | 4,529 |
Total interest income |  | 138,313 |  | 129,334 |  | 122,107 |  | 518,520 |  | 483,846 |
Interest expense |  |  |  |  |  |  |  |  |  |  |
Deposits |  | 7,048 |  | 6,632 |  | 5,844 |  | 26,650 |  | 22,314 |
Short-term borrowings and long-term debt |  | 15 |  | 19 |  | 41 |  | 198 |  | 207 |
Total interest expense |  | 7,063 |  | 6,651 |  | 5,885 |  | 26,848 |  | 22,521 |
Net interest income |  | 131,250 |  | 122,683 |  | 116,222 |  | 491,672 |  | 461,325 |
Provision for loan and lease losses |  | 3,900 |  | 2,100 |  | 2,500 |  | 8,600 |  | 9,900 |
Net interest income after provision for loan and lease losses |  | 127,350 |  | 120,583 |  | 113,722 |  | 483,072 |  | 451,425 |
Noninterest income |  |  |  |  |  |  |  |  |  |  |
Service charges on deposit accounts |  | 9,388 |  | 9,575 |  | 10,194 |  | 38,147 |  | 40,850 |
Credit and debit card fees |  | 14,339 |  | 14,103 |  | 14,783 |  | 56,071 |  | 56,416 |
Other service charges and fees |  | 8,446 |  | 8,768 |  | 8,990 |  | 35,355 |  | 38,641 |
Trust and investment services income |  | 7,204 |  | 7,508 |  | 7,061 |  | 29,440 |  | 29,671 |
Bank-owned life insurance |  | 1,758 |  | 7,115 |  | 2,679 |  | 15,021 |  | 9,976 |
Investment securities gains (losses) net |  | 1,516 |  | 30 |  | (2,672 | ) | 27,277 |  | 12,321 |
Other |  | 6,370 |  | 1,591 |  | 6,153 |  | 16,290 |  | 23,528 |
Total noninterest income |  | 49,021 |  | 48,690 |  | 47,188 |  | 217,601 |  | 211,403 |
Noninterest expense |  |  |  |  |  |  |  |  |  |  |
Salaries and employee benefits |  | 40,471 |  | 42,106 |  | 43,243 |  | 169,233 |  | 170,233 |
Contracted services and professional fees |  | 12,221 |  | 10,430 |  | 10,467 |  | 45,345 |  | 42,663 |
Occupancy |  | 5,125 |  | 4,870 |  | 2,649 |  | 20,116 |  | 16,975 |
Equipment |  | 4,777 |  | 4,192 |  | 4,850 |  | 16,912 |  | 15,836 |
Regulatory assessment and fees |  | 4,103 |  | 3,546 |  | 2,366 |  | 12,972 |  | 9,490 |
Advertising and marketing |  | 1,309 |  | 1,769 |  | 1,444 |  | 6,127 |  | 5,472 |
Card rewards program |  | 4,770 |  | 4,512 |  | 5,773 |  | 15,513 |  | 17,687 |
Other |  | 9,727 |  | 11,379 |  | 9,502 |  | 42,626 |  | 41,245 |
Total noninterest expense |  | 82,503 |  | 82,804 |  | 80,294 |  | 328,844 |  | 319,601 |
Income before provision for income taxes |  | 93,868 |  | 86,469 |  | 80,616 |  | 371,829 |  | 343,227 |
Provision for income taxes |  | 37,316 |  | 33,234 |  | 30,405 |  | 141,651 |  | 129,447 |
Net income |  | $ | 56,552 |  | $ | 53,235 |  | $ | 50,211 |  | $ | 230,178 |  | $ | 213,780 |
Basic earnings per share |  | $ | 0.41 |  | $ | 0.38 |  | $ | 0.36 |  | $ | 1.65 |  | $ | 1.53 |
Diluted earnings per share |  | $ | 0.41 |  | $ | 0.38 |  | $ | 0.36 |  | $ | 1.65 |  | $ | 1.53 |
Dividends declared per share |  | $ | 0.20 |  | $ | 0.20 |  | $ | — |  | $ | 0.62 |  | $ | — |
Basic weighted-average outstanding shares |  | 139,530,654 |  | 139,500,542 |  | 139,459,620 |  | 139,487,762 |  | 139,459,620 |
Diluted weighted-average outstanding shares |  | 139,546,875 |  | 139,503,558 |  | 139,459,620 |  | 139,492,608 |  | 139,459,620 |

Consolidated Balance Sheets |

|  | December 31, |  | September 30, |  | December 31, |
(dollars in thousands) |  | 2016 |  | 2016 |  | 2015 |
Assets |  |  |  |  |  |  |
Cash and due from banks |  | $ | 253,827 |  | $ | 371,622 |  | $ | 300,096 |
Interest-bearing deposits in other banks |  | 798,231 |  | 804,198 |  | 2,350,099 |
Investment securities |  | 5,077,514 |  | 5,363,696 |  | 4,027,265 |
Loans and leases |  | 11,520,378 |  | 11,396,555 |  | 10,722,030 |
Less: allowance for loan and lease losses |  | 135,494 |  | 135,025 |  | 135,484 |
Net loans and leases |  | 11,384,884 |  | 11,261,530 |  | 10,586,546 |
Premises and equipment, net |  | 300,788 |  | 302,059 |  | 305,104 |
Other real estate owned and repossessed personal property |  | 329 |  | 854 |  | 154 |
Accrued interest receivable |  | 41,971 |  | 37,107 |  | 34,215 |
Bank-owned life insurance |  | 429,209 |  | 432,031 |  | 424,545 |
Goodwill |  | 995,492 |  | 995,492 |  | 995,492 |
Other intangible assets |  | 16,809 |  | 17,554 |  | 21,435 |
Other assets |  | 362,775 |  | 306,550 |  | 307,730 |
Total assets |  | $ | 19,661,829 |  | $ | 19,892,693 |  | $ | 19,352,681 |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |
Interest-bearing |  | $ | 10,801,915 |  | $ | 11,164,989 |  | $ | 10,730,095 |
Noninterest-bearing |  | 5,992,617 |  | 5,800,538 |  | 5,331,829 |
Total deposits |  | 16,794,532 |  | 16,965,527 |  | 16,061,924 |
Short-term borrowings |  | 9,151 |  | 9,151 |  | 216,151 |
Long-term debt |  | 41 |  | 41 |  | 48 |
Retirement benefits payable |  | 132,904 |  | 139,567 |  | 133,910 |
Other liabilities |  | 248,716 |  | 254,444 |  | 203,707 |
Total liabilities |  | 17,185,344 |  | 17,368,730 |  | 16,615,740 |
Stockholders’ equity |  |  |  |  |  |  |
Net investment |  | — |  | — |  | 2,788,200 |
Common stock ($0.01 par value; authorized 300,000,000 shares; issued and outstanding 139,530,654 shares as of both December 31, 2016 and September 30, 2016 and 139,459,620 shares as of December 31, 2015) |  | 1,395 |  | 1,395 |  | — |
Additional paid-in capital |  | 2,484,251 |  | 2,482,679 |  | — |
Retained earnings |  | 78,850 |  | 50,204 |  | — |
Accumulated other comprehensive loss, net |  | (88,011 | ) | (10,315 | ) | (51,259 | )
Total stockholders’ equity |  | 2,476,485 |  | 2,523,963 |  | 2,736,941 |
Total liabilities and stockholders’ equity |  | $ | 19,661,829 |  | $ | 19,892,693 |  | $ | 19,352,681 |

Use of Non-GAAP Financial Measures

We present net interest income, noninterest income, noninterest expense, net income, earnings per share and the related ratios described below, on an adjusted, or ‘‘core,’’ basis, each a non-GAAP financial measure. These core measures exclude from the corresponding GAAP measure the impact of certain items that we do not believe are representative of our financial results. We believe that the presentation of these non-GAAP financial measures helps identify underlying trends in our business from period to period that could otherwise be distorted by the effect of certain expenses, gains and other items included in our operating results. We believe that these core measures provide useful information about our operating results and enhance the overall understanding of our past performance and future performance. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition.

Core net interest margin, core return on average total assets and core return on average total stockholders’ equity are non-GAAP financial measures. We compute our core net interest margin as the ratio of core net interest income to average earning assets. We compute our core return on average total assets as the ratio of core net income to average total assets. We compute our core return on average total stockholders’ equity as the ratio of core net income to average stockholders’ equity.

Return on average tangible stockholders’ equity, core return on average tangible stockholders’ equity, return on average tangible assets, core return on average tangible assets and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our core return on average tangible stockholders’ equity as the ratio of core net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our core return on average tangible assets as the ratio of core net income to average tangible assets. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP.

The following tables provide a reconciliation of these non-GAAP financial measures with their most closely related GAAP measures.

GAAP to Non-GAAP Reconciliation |

|  | As of and for the Three Months Ended |  | As of and for the Year Ended |
|  | December 31, |  | September 30, |  | December 31, |  | December 31, |
(dollars in thousands, except per share data) |  | 2016 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Net income |  | $ | 56,552 |  | $ | 53,235 |  | $ | 50,211 |  | $ | 230,178 |  | $ | 213,780 |
Average total stockholders’ equity |  | $ | 2,507,514 |  | $ | 2,506,099 |  | $ | 2,756,977 |  | $ | 2,568,219 |  | $ | 2,735,786 |
Less: average goodwill |  | 995,492 |  | 995,492 |  | 995,492 |  | 995,492 |  | 995,492 |
Average tangible stockholders’ equity |  | $ | 1,512,022 |  | $ | 1,510,607 |  | $ | 1,761,485 |  | $ | 1,572,727 |  | $ | 1,740,294 |
Total stockholders’ equity |  | $ | 2,476,485 |  | $ | 2,523,963 |  | $ | 2,736,941 |  | $ | 2,476,485 |  | $ | 2,736,941 |
Less: goodwill |  | 995,492 |  | 995,492 |  | 995,492 |  | 995,492 |  | 995,492 |
Tangible stockholders’ equity |  | $ | 1,480,993 |  | $ | 1,528,471 |  | $ | 1,741,449 |  | $ | 1,480,993 |  | $ | 1,741,449 |
Average total assets |  | $ | 19,778,918 |  | $ | 19,314,668 |  | $ | 19,208,603 |  | $ | 19,334,653 |  | $ | 18,785,701 |
Less: average goodwill |  | 995,492 |  | 995,492 |  | 995,492 |  | 995,492 |  | 995,492 |
Average tangible assets |  | $ | 18,783,426 |  | $ | 18,319,176 |  | $ | 18,213,111 |  | $ | 18,339,161 |  | $ | 17,790,209 |
Total assets |  | $ | 19,661,829 |  | $ | 19,892,693 |  | $ | 19,352,681 |  | $ | 19,661,829 |  | $ | 19,352,681 |
Less: goodwill |  | 995,492 |  | 995,492 |  | 995,492 |  | 995,492 |  | 995,492 |
Tangible assets |  | $ | 18,666,337 |  | $ | 18,897,201 |  | $ | 18,357,189 |  | $ | 18,666,337 |  | $ | 18,357,189 |
Basic weighted-average shares outstanding |  | 139,530,654 |  | 139,500,542 |  | 139,459,620 |  | 139,487,762 |  | 139,459,620 |
Diluted weighted-average shares outstanding |  | 139,546,875 |  | 139,503,558 |  | 139,459,620 |  | 139,492,608 |  | 139,459,620 |
Return on average total stockholders’ equity(a) |  | 8.97 | % | 8.45 | % | 7.23 | % | 8.96 | % | 7.81 | %
Return on average tangible stockholders’ equity (non-GAAP)(a) |  | 14.88 | % | 14.02 | % | 11.31 | % | 14.64 | % | 12.28 | %
Return on average total assets(a) |  | 1.14 | % | 1.10 | % | 1.04 | % | 1.19 | % | 1.14 | %
Return on average tangible assets (non-GAAP)(a) |  | 1.20 | % | 1.16 | % | 1.09 | % | 1.26 | % | 1.20 | %
Total stockholders’ equity to total assets |  | 12.60 | % | 12.69 | % | 14.14 | % | 12.60 | % | 14.14 | %
Tangible stockholders’ equity to tangible assets (non-GAAP) |  | 7.93 | % | 8.09 | % | 9.49 | % | 7.93 | % | 9.49 | %
Average stockholders’ equity to average assets |  | 12.68 | % | 12.98 | % | 14.35 | % | 13.28 | % | 14.56 | %
Tangible average stockholders’ equity to tangible average assets (non-GAAP) |  | 8.05 | % | 8.25 | % | 9.67 | % | 8.58 | % | 9.78 | %
Book value per share |  | $ | 17.75 |  | $ | 18.09 |  | $ | 19.63 |  | $ | 17.75 |  | $ | 19.63 |
Tangible book value per share (non-GAAP) |  | $ | 10.61 |  | $ | 10.96 |  | $ | 12.49 |  | $ | 10.62 |  | $ | 12.49 |

(a) Annualized for the three months ended December 31, 2016, September 30, 2016 and December 31, 2015.

GAAP to Non-GAAP Reconciliation |

|  | For the Three Months Ended |  | For the Year Ended |
|  | December 31, |  | September 30, |  | December 31, |  | December 31, |
(dollars in thousands, except per share data) |  | 2016 |  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Net interest income |  | $ | 131,250 |  | $ | 122,683 |  | $ | 116,222 |  | $ | 491,672 |  | $ | 461,325 |
Early loan termination(a) |  | — |  | — |  | — |  | — |  | (4,836 | )
Core net interest income (non-GAAP) |  | $ | 131,250 |  | $ | 122,683 |  | $ | 116,222 |  | $ | 491,672 |  | $ | 456,489 |
Noninterest income |  | $ | 49,021 |  | $ | 48,690 |  | $ | 47,188 |  | $ | 217,601 |  | $ | 211,403 |
Gain on sale of securities |  | (1,516 | ) | — |  | 4,737 |  | (4,566 | ) | (7,737 | )
Gain on sale of stock (Visa/MasterCard) |  | — |  | — |  | (2,065 | ) | (22,678 | ) | (4,584 | )
Gain on sale of other assets |  | — |  | — |  | (1,287 | ) | — |  | (3,414 | )
Other adjustments(a),(b) |  | — |  | — |  | (1,991 | ) | — |  | (7,471 | )
Core noninterest income (non-GAAP) |  | $ | 47,505 |  | $ | 48,690 |  | $ | 46,582 |  | $ | 190,357 |  | $ | 188,197 |
Noninterest expense |  | $ | 82,503 |  | $ | 82,804 |  | $ | 80,294 |  | $ | 328,844 |  | $ | 319,601 |
One-time items(c) |  | (583 | ) | (3,090 | ) | — |  | (6,220 | ) | — |
Core noninterest expense (non-GAAP) |  | $ | 81,920 |  | $ | 79,714 |  | $ | 80,294 |  | 322,624 |  | $ | 319,601 |
Net income |  | $ | 56,552 |  | $ | 53,235 |  | $ | 50,211 |  | $ | 230,178 |  | $ | 213,780 |
Early loan termination |  | — |  | — |  | — |  | — |  | (4,836 | )
Gain on sale of securities |  | (1,516 | ) | — |  | 4,737 |  | (4,566 | ) | (7,737 | )
Gain on sale of stock (Visa/MasterCard) |  | — |  | — |  | (2,065 | ) | (22,678 | ) | (4,584 | )
Gain on sale of other assets |  | — |  | — |  | (1,287 | ) | — |  | (3,414 | )
Other adjustments(b) |  | — |  | — |  | (1,991 | ) | — |  | (7,471 | )
One-time items(c) |  | 583 |  | 3,090 |  | — |  | 6,220 |  | — |
Tax adjustments (d) |  | 382 |  | (1,148 | ) | 229 |  | 7,957 |  | 10,577 |
Total core adjustments |  | (551 | ) | 1,942 |  | (377 | ) | (13,067 | ) | (17,465 | )
Core net income (non-GAAP) |  | $ | 56,001 |  | $ | 55,177 |  | $ | 49,834 |  | $ | 217,111 |  | $ | 196,315 |
Core basic earnings per share (non-GAAP) |  | $ | 0.40 |  | $ | 0.40 |  | $ | 0.36 |  | $ | 1.56 |  | $ | 1.41 |
Core diluted earnings per share (non-GAAP) |  | $ | 0.40 |  | $ | 0.40 |  | $ | 0.36 |  | $ | 1.56 |  | $ | 1.41 |

(a) Adjustments that are not material to our financial results have not been presented for certain periods.

(b) Other adjustments include a one-time MasterCard signing bonus and a recovery of an investment that was previously written down.

(c) One-time items include initial public offering related costs.

(d) Represents the adjustments to net income, tax effected at the Company’s effective tax rate for the respective period.