ROSEMONT, Ill., April 18, 2017 (GLOBE NEWSWIRE)
-- Wintrust Financial Corporation (“Wintrust” or “the Company”)
(Nasdaq:WTFC) announced net income of $58.4 million or $1.00 per
diluted common share for the first quarter of 2017 compared to net
income of $54.6 million or $0.94 per diluted common share for the
fourth quarter of 2016 and $49.1 million or $0.90 per diluted
common share for the first quarter of 2016.
Highlights of the First Quarter of 2017*:
- Net interest margin increased substantially as a result of the
recent rate increase in December 2016 and better utilization of
excess liquidity in the first quarter of 2017. Net interest income
increased $1.8 million from the prior quarter as the improvement in
net interest margin more than offset two less days in the
quarter.
- Return on average assets increased to 0.94% from 0.85% in the
fourth quarter of 2016. Return on average common equity increased
to 8.93% from 8.32% in the fourth quarter of 2016.
- Net charge-offs, excluding covered loans, decreased to $1.6
million. Net charge-offs as a percentage of average total loans,
excluding covered loans, decreased to three basis points, the
lowest ratio since the second quarter of 2004.
- Non-performing loans as a percentage of total loans, excluding
covered loans, decreased to 0.40% from 0.44% in the fourth quarter
of 2016 and the allowance for loan losses as a percentage of total
non-performing loans, excluding covered loans, increased to 159%
from 140% in the prior quarter.
- Total loans, excluding covered loans, mortgage loans
held-for-sale and mortgage warehouse lines of credit, increased by
$278 million from the prior quarter.
- Total assets increased by $110 million from the prior quarter
and now total $25.8 billion.
- Reduced operating expenses by $12.3 million from the prior
quarter to $168.1 million.
- Acquired American Homestead Mortgage, LLC ("AHM") located in
Montana's Flathead Valley, which will supplement our existing
mortgage banking operations in the Rocky Mountain region and
continue to diversify our current product mix.
* See "Supplemental Financial
Measures/Ratios" on pages 10-11 for more information on
non-GAAP measures.
Edward J. Wehmer, President and Chief Executive
Officer, commented, “Wintrust reported record net income of $58.4
million for the first quarter of 2017. These results were driven by
our momentum from 2016 carrying into 2017 with continued steady
loan growth in the first quarter. The first quarter of 2017 was
also characterized by our increased net interest margin, improved
credit quality metrics and reduced operating costs, while
offsetting an expected decrease in mortgage banking revenue. As we
saw in the first quarter, the structure of our balance sheet is
well positioned to take advantage of higher interest rates, and is
designed to provide an internal hedge to offset lower earnings from
our mortgage banking operations and from reduced revenue from our
covered call option program."
Mr. Wehmer continued, “Excluding covered loans,
mortgage loans held-for-sale and mortgage warehouse lines of
credit, we grew our loan portfolio by $278 million during the first
quarter, which was driven by steady growth in the commercial
portfolio and life insurance premium finance receivables portfolio.
The substantial improvement in net interest margin during the
period was primarily attributable to the increase in interest rates
by the Federal Reserve Bank in December, which added eight basis
points. We remain well positioned for the March interest rate
increase and expected rising rates in the future. The net interest
margin was also positively impacted by six basis points in the
first quarter of 2017 from investing excess liquidity held at
year-end. The increased loan volumes and improved net interest
margin along with the continued momentum from loan growth at the
very end of 2016 resulted in an increase in net interest income of
$1.8 million despite two less days in the quarter. Our loan
pipelines remain consistently strong."
Commenting on credit quality, Mr. Wehmer noted,
“During the first quarter of 2017, the Company continued its
practice of timely addressing and resolving non-performing credits.
Excluding covered loans, low net charge-offs continued in the
current quarter with net charge-offs totaling $1.6 million in the
first quarter of 2017 compared to $2.8 million in the prior
quarter. Additionally, net charge-offs as a percentage of average
total loans decreased to 0.03% from 0.06% in the fourth quarter.
Total non-performing assets, excluding covered assets, as a
percentage of total assets decreased to 0.46% compared to 0.50% as
of the prior quarter-end. Excluding covered loans, non-performing
loans as a percentage of total loans decreased to 0.40% at the end
of first quarter of 2017 compared to 0.44% at the end of the fourth
quarter of 2016. As a percentage of non-performing loans, the
allowance for loan losses, excluding covered loans, remained strong
at 159%. We believe that the Company's reserves remain
appropriate."
Mr. Wehmer further commented, “Mortgage banking
revenue in the first quarter of 2017 totaled $21.9 million, a
decrease of $13.6 million compared to the fourth quarter of 2016
and a slight increase of $203,000 compared to the first quarter of
2016. The decreased revenue from the fourth quarter of 2016
resulted from origination volumes declining to $722 million from
$1.2 billion as a result of the recent rise in interest rates and
typical seasonality in January and February. Our mortgage pipeline
strengthened in March and is expected to continue to strengthen in
the second quarter. We continue to look for opportunities to
further enhance the mortgage banking business both organically and
through acquisitions. To that end, in the first quarter, we added
to our mortgage banking business with the acquisition of AHM."
Turning to the future, Mr. Wehmer stated, “Our
growth engine continued its momentum into 2017 and we anticipate
the positive momentum realized in the first quarter to continue in
all areas of our business for the remainder of 2017. Loan growth at
the end of the current quarter should add to this momentum as
period-end loan balances, excluding covered loans, mortgage loans
held-for-sale and mortgage warehouse lines of credit, exceeded the
first quarter average balances by approximately $240 million.
Wintrust continues to take a steady and measured approach to
achieve our main objectives of growing franchise value, increasing
profitability, leveraging our expense infrastructure and increasing
shareholder value. Evaluating strategic acquisitions and organic
branch growth will continue to be a part of our overall growth
strategy with the goal of becoming Chicago’s bank and Wisconsin’s
bank. Our opportunities for both internal growth and external
growth remain consistently strong."
The graphs below illustrate certain highlights
of the first quarter of 2017.
http://www.globenewswire.com/NewsRoom/AttachmentNg/32dff03e-6e37-407b-aee8-ba4cd9878c75
Wintrust’s key operating measures and growth
rates for the first quarter of 2017, as compared to the
sequential and linked quarters, are shown in the table below:
|
|
|
|
|
|
|
|
% or(4)
basis point (bp)change from
4th Quarter
2016 |
|
% or
basis point (bp)
change from
1st Quarter
2016 |
|
|
Three Months Ended |
|
|
(Dollars in thousands) |
|
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
|
|
Net income |
|
$ |
58,378 |
|
|
$ |
54,608 |
|
|
$ |
49,111 |
|
|
7 |
|
% |
|
19 |
|
% |
Net income per common
share – diluted |
|
$ |
1.00 |
|
|
$ |
0.94 |
|
|
$ |
0.90 |
|
|
6 |
|
% |
|
11 |
|
% |
Net revenue
(1) |
|
$ |
261,345 |
|
|
$ |
276,053 |
|
|
$ |
240,261 |
|
|
(5 |
) |
% |
|
9 |
|
% |
Net interest
income |
|
$ |
192,580 |
|
|
$ |
190,778 |
|
|
$ |
171,509 |
|
|
1 |
|
% |
|
12 |
|
% |
Net interest
margin |
|
3.36 |
% |
|
3.21 |
% |
|
3.29 |
% |
|
15 |
|
bp |
|
7 |
|
bp |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
|
3.39 |
% |
|
3.23 |
% |
|
3.32 |
% |
|
16 |
|
bp |
|
7 |
|
bp |
Net overhead ratio
(3) |
|
1.60 |
% |
|
1.48 |
% |
|
1.49 |
% |
|
12 |
|
bp |
|
11 |
|
bp |
Return on average
assets |
|
0.94 |
% |
|
0.85 |
% |
|
0.86 |
% |
|
9 |
|
bp |
|
8 |
|
bp |
Return on average
common equity |
|
8.93 |
% |
|
8.32 |
% |
|
8.55 |
% |
|
61 |
|
bp |
|
38 |
|
bp |
Return on
average tangible common equity (non-GAAP) (2) |
|
11.44 |
% |
|
10.68 |
% |
|
11.33 |
% |
|
76 |
|
bp |
|
11 |
|
bp |
At end of
period |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
25,778,893 |
|
|
$ |
25,668,553 |
|
|
$ |
23,488,168 |
|
|
2 |
|
% |
|
10 |
|
% |
Total loans, excluding
loans held-for-sale, excluding covered loans |
|
19,931,058 |
|
|
19,703,172 |
|
|
17,446,413 |
|
|
5 |
|
% |
|
14 |
|
% |
Total loans, including
loans held-for-sale, excluding covered loans |
|
20,220,022 |
|
|
20,121,546 |
|
|
17,760,967 |
|
|
2 |
|
% |
|
14 |
|
% |
Total deposits |
|
21,730,441 |
|
|
21,658,632 |
|
|
19,217,071 |
|
|
1 |
|
% |
|
13 |
|
% |
Total
shareholders’ equity |
|
2,764,983 |
|
|
2,695,617 |
|
|
2,418,442 |
|
|
10 |
|
% |
|
14 |
|
% |
(1) Net revenue is net interest income plus non-interest
income.
(2) See "Supplemental Financial Measures/Ratios" for
additional information on this performance measure/ratio.
(3) The net overhead ratio is calculated by netting total
non-interest expense and total non-interest income, annualizing
this amount, and dividing by that period's average total assets. A
lower ratio indicates a higher degree of efficiency.
(4) Period-end balance sheet percentage changes are
annualized.
Certain returns, yields, performance ratios, or
quarterly growth rates are “annualized” in this presentation to
represent an annual time period. This is done for analytical
purposes to better discern for decision-making purposes underlying
performance trends when compared to full-year or year-over-year
amounts. For example, a 5% growth rate for a quarter would
represent an annualized 20% growth rate. Additional supplemental
financial information showing quarterly trends can be found on the
Company’s website at www.wintrust.com by
choosing “Financial Reports” under the “Investor Relations”
heading, and then choosing “Financial Highlights.”
WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights
|
|
Three Months Ended |
(Dollars in thousands, except per
share data) |
|
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
Selected
Financial Condition Data (at end of period): |
|
|
|
|
|
|
Total assets |
|
$ |
25,778,893 |
|
|
$ |
25,668,553 |
|
|
$ |
23,488,168 |
|
Total loans, excluding
loans held-for-sale and covered loans |
|
19,931,058 |
|
|
19,703,172 |
|
|
17,446,413 |
|
Total deposits |
|
21,730,441 |
|
|
21,658,632 |
|
|
19,217,071 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Total shareholders’
equity |
|
2,764,983 |
|
|
2,695,617 |
|
|
2,418,442 |
|
Selected
Statements of Income Data: |
|
|
|
|
|
|
Net interest
income |
|
$ |
192,580 |
|
|
$ |
190,778 |
|
|
$ |
171,509 |
|
Net revenue
(1) |
|
261,345 |
|
|
276,053 |
|
|
240,261 |
|
Net income |
|
58,378 |
|
|
54,608 |
|
|
49,111 |
|
Net income per common
share – Basic |
|
$ |
1.05 |
|
|
$ |
0.98 |
|
|
$ |
0.94 |
|
Net income per common
share – Diluted |
|
$ |
1.00 |
|
|
$ |
0.94 |
|
|
$ |
0.90 |
|
Selected
Financial Ratios and Other Data: |
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
Net interest
margin |
|
3.36 |
% |
|
3.21 |
% |
|
3.29 |
% |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
|
3.39 |
% |
|
3.23 |
% |
|
3.32 |
% |
Non-interest income to
average assets |
|
1.11 |
% |
|
1.32 |
% |
|
1.21 |
% |
Non-interest expense to
average assets |
|
2.70 |
% |
|
2.80 |
% |
|
2.70 |
% |
Net overhead ratio
(3) |
|
1.60 |
% |
|
1.48 |
% |
|
1.49 |
% |
Return on average
assets |
|
0.94 |
% |
|
0.85 |
% |
|
0.86 |
% |
Return on average
common equity |
|
8.93 |
% |
|
8.32 |
% |
|
8.55 |
% |
Return on average
tangible common equity (non-GAAP) (2) |
|
11.44 |
% |
|
10.68 |
% |
|
11.33 |
% |
Average total
assets |
|
$ |
25,207,348 |
|
|
$ |
25,611,060 |
|
|
$ |
22,902,913 |
|
Average total
shareholders’ equity |
|
2,739,050 |
|
|
2,689,876 |
|
|
2,389,770 |
|
Average loans to
average deposits ratio (excluding loans held-for-sale, excluding
covered loans) |
|
92.5 |
% |
|
89.6 |
% |
|
92.2 |
% |
Average loans to
average deposits ratio (excluding loans held-for-sale, including
covered loans) |
|
92.7 |
% |
|
89.9 |
% |
|
93.0 |
% |
Common Share Data
at end of period: |
|
|
|
|
|
|
Market price per common
share |
|
$ |
69.12 |
|
|
$ |
72.57 |
|
|
$ |
44.34 |
|
Book value per common
share (2) |
|
$ |
47.88 |
|
|
$ |
47.12 |
|
|
$ |
44.67 |
|
Tangible common book
value per share (2) |
|
$ |
37.97 |
|
|
$ |
37.08 |
|
|
$ |
34.20 |
|
Common shares
outstanding |
|
52,503,663 |
|
|
51,880,540 |
|
|
48,518,998 |
|
Other Data at end
of period:(6) |
|
|
|
|
|
|
Leverage Ratio
(4) |
|
9.3 |
% |
|
8.9 |
% |
|
8.7 |
% |
Tier 1 capital to
risk-weighted assets (4) |
|
9.9 |
% |
|
9.7 |
% |
|
9.6 |
% |
Common equity Tier 1
capital to risk-weighted assets (4) |
|
8.9 |
% |
|
8.6 |
% |
|
8.4 |
% |
Total capital to
risk-weighted assets (4) |
|
12.1 |
% |
|
11.9 |
% |
|
12.1 |
% |
Allowance for credit
losses (5) |
|
$ |
127,630 |
|
|
$ |
123,964 |
|
|
$ |
111,201 |
|
Non-performing
loans |
|
78,979 |
|
|
87,454 |
|
|
89,499 |
|
Allowance for credit
losses to total loans (5) |
|
0.64 |
% |
|
0.63 |
% |
|
0.64 |
% |
Non-performing loans to
total loans |
|
0.40 |
% |
|
0.44 |
% |
|
0.51 |
% |
Number of: |
|
|
|
|
|
|
Bank
subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
Banking
offices |
|
155 |
|
|
155 |
|
|
153 |
|
(1) Net revenue includes net interest income and
non-interest income.
(2) See “Supplemental Financial Measures/Ratios” for
additional information on this performance measure/ratio.
(3) The net overhead ratio is calculated by netting total
non-interest expense and total non-interest income, annualizing
this amount, and dividing by that period’s total average assets. A
lower ratio indicates a higher degree of efficiency.
(4) Capital ratios for current quarter-end are
estimated. As of January 1, 2015 capital ratios are
calculated under the requirements of Basel III.
(5) The allowance for credit losses includes both the
allowance for loan losses and the allowance for unfunded
lending-related commitments, but excludes the allowance for covered
loan losses.
(6) Asset quality ratios exclude covered loans.
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
|
|
(Unaudited) |
|
|
|
(Unaudited) |
(In thousands) |
|
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
Assets |
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
214,102 |
|
|
$ |
267,194 |
|
|
$ |
208,480 |
|
Federal funds sold and
securities purchased under resale agreements |
|
3,046 |
|
|
2,851 |
|
|
3,820 |
|
Interest bearing
deposits with banks |
|
1,007,468 |
|
|
980,457 |
|
|
817,013 |
|
Available-for-sale
securities, at fair value |
|
1,803,733 |
|
|
1,724,667 |
|
|
770,983 |
|
Held-to-maturity
securities, at amortized cost |
|
667,764 |
|
|
635,705 |
|
|
911,715 |
|
Trading account
securities |
|
714 |
|
|
1,989 |
|
|
2,116 |
|
Federal Home Loan Bank
and Federal Reserve Bank stock |
|
78,904 |
|
|
133,494 |
|
|
113,222 |
|
Brokerage customer
receivables |
|
23,171 |
|
|
25,181 |
|
|
28,266 |
|
Mortgage loans
held-for-sale |
|
288,964 |
|
|
418,374 |
|
|
314,554 |
|
Loans, net of unearned
income, excluding covered loans |
|
19,931,058 |
|
|
19,703,172 |
|
|
17,446,413 |
|
Covered loans |
|
52,359 |
|
|
58,145 |
|
|
138,848 |
|
Total
loans |
|
19,983,417 |
|
|
19,761,317 |
|
|
17,585,261 |
|
Allowance
for loan losses |
|
(125,819 |
) |
|
(122,291 |
) |
|
(110,171 |
) |
Allowance
for covered loan losses |
|
(1,319 |
) |
|
(1,322 |
) |
|
(2,507 |
) |
Net
loans |
|
19,856,279 |
|
|
19,637,704 |
|
|
17,472,583 |
|
Premises and equipment,
net |
|
598,746 |
|
|
597,301 |
|
|
591,608 |
|
Lease investments,
net |
|
155,233 |
|
|
129,402 |
|
|
89,337 |
|
Accrued interest
receivable and other assets |
|
560,741 |
|
|
593,796 |
|
|
647,853 |
|
Trade date securities
receivable |
|
— |
|
|
— |
|
|
1,008,613 |
|
Goodwill |
|
499,341 |
|
|
498,587 |
|
|
484,280 |
|
Other intangible
assets |
|
20,687 |
|
|
21,851 |
|
|
23,725 |
|
Total assets |
|
$ |
25,778,893 |
|
|
$ |
25,668,553 |
|
|
$ |
23,488,168 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,790,579 |
|
|
$ |
5,927,377 |
|
|
$ |
5,205,410 |
|
Interest
bearing |
|
15,939,862 |
|
|
15,731,255 |
|
|
14,011,661 |
|
Total deposits |
|
21,730,441 |
|
|
21,658,632 |
|
|
19,217,071 |
|
Federal Home Loan Bank
advances |
|
227,585 |
|
|
153,831 |
|
|
799,482 |
|
Other borrowings |
|
238,787 |
|
|
262,486 |
|
|
253,126 |
|
Subordinated notes |
|
138,993 |
|
|
138,971 |
|
|
138,888 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Accrued interest
payable and other liabilities |
|
424,538 |
|
|
505,450 |
|
|
407,593 |
|
Total liabilities |
|
23,013,910 |
|
|
22,972,936 |
|
|
21,069,726 |
|
Shareholders’
Equity: |
|
|
|
|
|
|
Preferred
stock |
|
251,257 |
|
|
251,257 |
|
|
251,257 |
|
Common
stock |
|
52,605 |
|
|
51,978 |
|
|
48,608 |
|
Surplus |
|
1,381,886 |
|
|
1,365,781 |
|
|
1,194,750 |
|
Treasury
stock |
|
(4,884 |
) |
|
(4,589 |
) |
|
(4,145 |
) |
Retained
earnings |
|
1,143,943 |
|
|
1,096,518 |
|
|
967,882 |
|
Accumulated other comprehensive loss |
|
(59,824 |
) |
|
(65,328 |
) |
|
(39,910 |
) |
Total shareholders’ equity |
|
2,764,983 |
|
|
2,695,617 |
|
|
2,418,442 |
|
Total liabilities and shareholders’
equity |
|
$ |
25,778,893 |
|
|
$ |
25,668,553 |
|
|
$ |
23,488,168 |
|
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|
Three Months Ended |
(In thousands, except per share
data) |
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
Interest
income |
|
|
|
|
|
Interest
and fees on loans |
$ |
199,314 |
|
|
$ |
199,155 |
|
|
$ |
173,127 |
|
Interest
bearing deposits with banks |
1,623 |
|
|
1,541 |
|
|
746 |
|
Federal
funds sold and securities purchased under resale agreements |
1 |
|
|
1 |
|
|
1 |
|
Investment securities |
13,573 |
|
|
12,954 |
|
|
17,190 |
|
Trading
account securities |
11 |
|
|
32 |
|
|
11 |
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
1,070 |
|
|
1,144 |
|
|
937 |
|
Brokerage
customer receivables |
167 |
|
|
186 |
|
|
219 |
|
Total interest income |
215,759 |
|
|
215,013 |
|
|
192,231 |
|
Interest
expense |
|
|
|
|
|
Interest
on deposits |
16,270 |
|
|
16,413 |
|
|
12,781 |
|
Interest
on Federal Home Loan Bank advances |
1,590 |
|
|
2,439 |
|
|
2,886 |
|
Interest
on other borrowings |
1,139 |
|
|
1,074 |
|
|
1,058 |
|
Interest
on subordinated notes |
1,772 |
|
|
1,779 |
|
|
1,777 |
|
Interest
on junior subordinated debentures |
2,408 |
|
|
2,530 |
|
|
2,220 |
|
Total interest expense |
23,179 |
|
|
24,235 |
|
|
20,722 |
|
Net interest
income |
192,580 |
|
|
190,778 |
|
|
171,509 |
|
Provision for credit
losses |
5,209 |
|
|
7,350 |
|
|
8,034 |
|
Net interest income
after provision for credit losses |
187,371 |
|
|
183,428 |
|
|
163,475 |
|
Non-interest
income |
|
|
|
|
|
Wealth
management |
20,148 |
|
|
19,512 |
|
|
18,320 |
|
Mortgage
banking |
21,938 |
|
|
35,489 |
|
|
21,735 |
|
Service
charges on deposit accounts |
8,265 |
|
|
8,054 |
|
|
7,406 |
|
(Losses)
gains on investment securities, net |
(55 |
) |
|
1,575 |
|
|
1,325 |
|
Fees from
covered call options |
759 |
|
|
1,476 |
|
|
1,712 |
|
Trading
(losses) gains, net |
(320 |
) |
|
1,007 |
|
|
(168 |
) |
Operating
lease income, net |
5,782 |
|
|
5,171 |
|
|
2,806 |
|
Other |
12,248 |
|
|
12,991 |
|
|
15,616 |
|
Total non-interest income |
68,765 |
|
|
85,275 |
|
|
68,752 |
|
Non-interest
expense |
|
|
|
|
|
Salaries
and employee benefits |
99,316 |
|
|
104,735 |
|
|
95,811 |
|
Equipment |
9,002 |
|
|
9,532 |
|
|
8,767 |
|
Operating
lease equipment depreciation |
4,636 |
|
|
4,219 |
|
|
2,050 |
|
Occupancy, net |
13,101 |
|
|
14,254 |
|
|
11,948 |
|
Data
processing |
7,925 |
|
|
7,687 |
|
|
6,519 |
|
Advertising and marketing |
5,150 |
|
|
6,691 |
|
|
3,779 |
|
Professional fees |
4,660 |
|
|
5,425 |
|
|
4,059 |
|
Amortization of other intangible assets |
1,164 |
|
|
1,158 |
|
|
1,298 |
|
FDIC
insurance |
4,156 |
|
|
4,726 |
|
|
3,613 |
|
OREO
expense, net |
1,665 |
|
|
1,843 |
|
|
560 |
|
Other |
17,343 |
|
|
20,101 |
|
|
15,326 |
|
Total non-interest expense |
168,118 |
|
|
180,371 |
|
|
153,730 |
|
Income before
taxes |
88,018 |
|
|
88,332 |
|
|
78,497 |
|
Income tax expense |
29,640 |
|
|
33,724 |
|
|
29,386 |
|
Net
income |
$ |
58,378 |
|
|
$ |
54,608 |
|
|
$ |
49,111 |
|
Preferred stock
dividends |
3,628 |
|
|
3,629 |
|
|
3,628 |
|
Net income
applicable to common shares |
$ |
54,750 |
|
|
$ |
50,979 |
|
|
$ |
45,483 |
|
Net income per
common share - Basic |
$ |
1.05 |
|
|
$ |
0.98 |
|
|
$ |
0.94 |
|
Net income per
common share - Diluted |
$ |
1.00 |
|
|
$ |
0.94 |
|
|
$ |
0.90 |
|
Cash dividends
declared per common share |
$ |
0.14 |
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
Weighted average common
shares outstanding |
52,267 |
|
|
51,812 |
|
|
48,448 |
|
Dilutive potential
common shares |
4,160 |
|
|
4,152 |
|
|
3,820 |
|
Average common shares
and dilutive common shares |
56,427 |
|
|
55,964 |
|
|
52,268 |
|
EARNINGS PER SHARE
The following table shows the computation of
basic and diluted earnings per share for the periods indicated:
|
|
|
Three Months Ended |
(In thousands, except per share
data) |
|
|
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
Net income |
|
|
$ |
58,378 |
|
|
$ |
54,608 |
|
|
$ |
49,111 |
|
Less: Preferred stock
dividends |
|
|
3,628 |
|
|
3,629 |
|
|
3,628 |
|
Net income applicable
to common shares—Basic |
(A) |
|
54,750 |
|
|
50,979 |
|
|
45,483 |
|
Add: Dividends on
convertible preferred stock, if dilutive |
|
|
1,578 |
|
|
1,578 |
|
|
1,578 |
|
Net income applicable
to common shares—Diluted |
(B) |
|
56,328 |
|
|
52,557 |
|
|
47,061 |
|
Weighted average common
shares outstanding |
(C) |
|
52,267 |
|
|
51,812 |
|
|
48,448 |
|
Effect of dilutive
potential common shares: |
|
|
|
|
|
|
|
Common
stock equivalents |
|
|
1,060 |
|
|
1,052 |
|
|
750 |
|
Convertible preferred stock, if dilutive |
|
|
3,100 |
|
|
3,100 |
|
|
3,070 |
|
Weighted average common
shares and effect of dilutive potential common shares |
(D) |
|
56,427 |
|
|
55,964 |
|
|
52,268 |
|
Net income per common
share: |
|
|
|
|
|
|
|
Basic |
(A/C) |
|
$ |
1.05 |
|
|
$ |
0.98 |
|
|
$ |
0.94 |
|
Diluted |
(B/D) |
|
$ |
1.00 |
|
|
$ |
0.94 |
|
|
$ |
0.90 |
|
Potentially dilutive common shares can result
from stock options, restricted stock unit awards, stock warrants,
the Company’s convertible preferred stock and shares to be issued
under the Employee Stock Purchase Plan and the Directors Deferred
Fee and Stock Plan, being treated as if they had been either
exercised or issued, computed by application of the treasury stock
method. While potentially dilutive common shares are typically
included in the computation of diluted earnings per share,
potentially dilutive common shares are excluded from this
computation in periods in which the effect would reduce the loss
per share or increase the income per share. For diluted earnings
per share, net income applicable to common shares can be affected
by the conversion of the Company’s convertible preferred stock.
Where the effect of this conversion would reduce the loss per share
or increase the income per share for a period, net income
applicable to common shares is not adjusted by the associated
preferred dividends. On April 17, 2017, the Company delivered
notice to the holders of the outstanding 5.00% Non-Cumulative
Perpetual Convertible Preferred Stock, Series C (“Series C
Preferred Stock”) that the Series C Preferred Stock will
mandatorily convert on April 27, 2017 (the “Mandatory Conversion
Date”). On the Mandatory Conversion Date, 126,257 shares of
Series C Preferred Stock will be converted to shares of the
Company’s common stock, no par value (“Common Stock”).
Holders of the Series C Preferred Stock will receive 24.72 shares
of Common Stock for each share of Series C Preferred Stock
converted. Cash (computed to the nearest cent) will be paid
in lieu of fractional shares of Common Stock. The last
dividend with respect to the Series C Preferred Stock was paid on
April 17, 2017 to holders of record on April 1, 2017.
SUPPLEMENTAL FINANCIAL MEASURES/RATIOS
The accounting and reporting policies of
Wintrust conform to generally accepted accounting principles
(“GAAP”) in the United States and prevailing practices in the
banking industry. However, certain non-GAAP performance measures
and ratios are used by management to evaluate and measure the
Company’s performance. These include taxable-equivalent net
interest income (including its individual components),
taxable-equivalent net interest margin (including its individual
components), the taxable-equivalent efficiency ratio, tangible
common equity ratio, tangible common book value per share and
return on average tangible common equity. Management believes that
these measures and ratios provide users of the Company’s financial
information a more meaningful view of the performance of the
Company's interest-earning assets and interest-bearing liabilities
and of the Company’s operating efficiency. Other financial holding
companies may define or calculate these measures and ratios
differently.
Management reviews yields on certain asset
categories and the net interest margin of the Company and its
banking subsidiaries on a fully taxable-equivalent (“FTE”) basis.
In this non-GAAP presentation, net interest income is adjusted to
reflect tax-exempt interest income on an equivalent before-tax
basis. This measure ensures comparability of net interest income
arising from both taxable and tax-exempt sources. Net interest
income on a FTE basis is also used in the calculation of the
Company’s efficiency ratio. The efficiency ratio, which is
calculated by dividing non-interest expense by total
taxable-equivalent net revenue (less securities gains or losses),
measures how much it costs to produce one dollar of revenue.
Securities gains or losses are excluded from this calculation to
better match revenue from daily operations to operational expenses.
Management considers the tangible common equity ratio and tangible
book value per common share as useful measurements of the Company’s
equity. The Company references the return on average tangible
common equity as a measurement of profitability.
The following table presents a reconciliation of
certain non-GAAP performance measures and ratios used by the
Company to evaluate and measure the Company’s performance to the
most directly comparable GAAP financial measures for the last five
quarters.
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars and shares in
thousands) |
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
Calculation of
Net Interest Margin and Efficiency Ratio |
|
|
|
|
|
|
|
|
|
(A) Interest
Income (GAAP) |
$ |
215,759 |
|
|
$ |
215,013 |
|
|
$ |
208,149 |
|
|
$ |
197,064 |
|
|
$ |
192,231 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
-
Loans |
790 |
|
|
666 |
|
|
584 |
|
|
523 |
|
|
509 |
|
-
Liquidity Management Assets |
907 |
|
|
815 |
|
|
963 |
|
|
932 |
|
|
920 |
|
- Other
Earning Assets |
5 |
|
|
17 |
|
|
9 |
|
|
8 |
|
|
6 |
|
(B) Interest
Income - FTE |
$ |
217,461 |
|
|
$ |
216,511 |
|
|
$ |
209,705 |
|
|
$ |
198,527 |
|
|
$ |
193,666 |
|
(C) Interest
Expense (GAAP) |
23,179 |
|
|
24,235 |
|
|
23,513 |
|
|
21,794 |
|
|
20,722 |
|
(D) Net
Interest Income - FTE (B minus C) |
$ |
194,282 |
|
|
$ |
192,276 |
|
|
$ |
186,192 |
|
|
$ |
176,733 |
|
|
$ |
172,944 |
|
(E) Net
Interest Income (GAAP) (A minus C) |
$ |
192,580 |
|
|
$ |
190,778 |
|
|
$ |
184,636 |
|
|
$ |
175,270 |
|
|
$ |
171,509 |
|
Net interest
margin (GAAP-derived) |
3.36 |
% |
|
3.21 |
% |
|
3.21 |
% |
|
3.24 |
% |
|
3.29 |
% |
Net
interest margin - FTE |
3.39 |
% |
|
3.23 |
% |
|
3.24 |
% |
|
3.27 |
% |
|
3.32 |
% |
(F) Non-interest
income |
$ |
68,765 |
|
|
$ |
85,275 |
|
|
$ |
86,604 |
|
|
$ |
84,799 |
|
|
$ |
68,752 |
|
(G) Gains (losses) on
investment securities, net |
(55 |
) |
|
1,575 |
|
|
3,305 |
|
|
1,440 |
|
|
1,325 |
|
(H) Non-interest
expense |
168,118 |
|
|
180,371 |
|
|
176,615 |
|
|
170,969 |
|
|
153,730 |
|
Efficiency
ratio (H/(E+F-G)) |
64.31 |
% |
|
65.71 |
% |
|
65.92 |
% |
|
66.11 |
% |
|
64.34 |
% |
Efficiency
ratio - FTE (H/(D+F-G)) |
63.90 |
% |
|
65.36 |
% |
|
65.54 |
% |
|
65.73 |
% |
|
63.96 |
% |
Calculation of
Tangible Common Equity ratio (at period end) |
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
2,764,983 |
|
|
$ |
2,695,617 |
|
|
$ |
2,674,474 |
|
|
$ |
2,623,595 |
|
|
$ |
2,418,442 |
|
(I) Less: Convertible
preferred stock |
(126,257 |
) |
|
(126,257 |
) |
|
(126,257 |
) |
|
(126,257 |
) |
|
(126,257 |
) |
Less:
Non-convertible preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
Less: Intangible
assets |
(520,028 |
) |
|
(520,438 |
) |
|
(506,674 |
) |
|
(507,916 |
) |
|
(508,005 |
) |
(J) Total tangible
common shareholders’ equity |
$ |
1,993,698 |
|
|
$ |
1,923,922 |
|
|
$ |
1,916,543 |
|
|
$ |
1,864,422 |
|
|
$ |
1,659,180 |
|
Total assets |
$ |
25,778,893 |
|
|
$ |
25,668,553 |
|
|
$ |
25,321,759 |
|
|
$ |
24,420,616 |
|
|
$ |
23,488,168 |
|
Less: Intangible
assets |
(520,028 |
) |
|
(520,438 |
) |
|
(506,674 |
) |
|
(507,916 |
) |
|
(508,005 |
) |
(K) Total tangible
assets |
$ |
25,258,865 |
|
|
$ |
25,148,115 |
|
|
$ |
24,815,085 |
|
|
$ |
23,912,700 |
|
|
$ |
22,980,163 |
|
Tangible common
equity ratio (J/K) |
7.9 |
% |
|
7.7 |
% |
|
7.7 |
% |
|
7.8 |
% |
|
7.2 |
% |
Tangible common
equity ratio, assuming full conversion of convertible preferred
stock ((J-I)/K) |
8.4 |
% |
|
8.2 |
% |
|
8.2 |
% |
|
8.3 |
% |
|
7.8 |
% |
Calculation of
book value per share |
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
2,764,983 |
|
|
$ |
2,695,617 |
|
|
$ |
2,674,474 |
|
|
$ |
2,623,595 |
|
|
$ |
2,418,442 |
|
Less: Preferred
stock |
(251,257 |
) |
|
(251,257 |
) |
|
(251,257 |
) |
|
(251,257 |
) |
|
(251,257 |
) |
(L) Total common
equity |
$ |
2,513,726 |
|
|
$ |
2,444,360 |
|
|
$ |
2,423,217 |
|
|
$ |
2,372,338 |
|
|
$ |
2,167,185 |
|
(M) Actual common
shares outstanding |
52,504 |
|
|
51,881 |
|
|
51,715 |
|
|
51,619 |
|
|
48,519 |
|
Book value per
common share (L/M) |
$ |
47.88 |
|
|
$ |
47.12 |
|
|
$ |
46.86 |
|
|
$ |
45.96 |
|
|
$ |
44.67 |
|
Tangible common
book value per share (J/M) |
$ |
37.97 |
|
|
$ |
37.08 |
|
|
$ |
37.06 |
|
|
$ |
36.12 |
|
|
$ |
34.20 |
|
|
|
|
|
|
|
|
|
|
|
Calculation of
return on average common equity |
|
|
|
|
|
|
|
|
|
(N) Net income
applicable to common shares |
54,750 |
|
|
50,979 |
|
|
49,487 |
|
|
46,413 |
|
|
45,483 |
|
Add: After-tax
intangible asset amortization |
771 |
|
|
716 |
|
|
677 |
|
|
781 |
|
|
812 |
|
(O) Tangible net income
applicable to common shares |
55,521 |
|
|
51,695 |
|
|
50,164 |
|
|
47,194 |
|
|
46,295 |
|
Total average
shareholders' equity |
2,739,050 |
|
|
2,689,876 |
|
|
2,651,684 |
|
|
2,465,732 |
|
|
2,389,770 |
|
Less: Average preferred
stock |
(251,257 |
) |
|
(251,257 |
) |
|
(251,257 |
) |
|
(251,257 |
) |
|
(251,262 |
) |
(P) Total average
common shareholders' equity |
2,487,793 |
|
|
2,438,619 |
|
|
2,400,427 |
|
|
2,214,475 |
|
|
2,138,508 |
|
Less: Average
intangible assets |
(520,346 |
) |
|
(513,017 |
) |
|
(508,812 |
) |
|
(507,439 |
) |
|
(495,594 |
) |
(Q) Total average
tangible common shareholders’ equity |
1,967,447 |
|
|
1,925,602 |
|
|
1,891,615 |
|
|
1,707,036 |
|
|
1,642,914 |
|
Return on
average common equity, annualized (N/P) |
8.93 |
% |
|
8.32 |
% |
|
8.20 |
% |
|
8.43 |
% |
|
8.55 |
% |
Return on
average tangible common equity, annualized (O/Q) |
11.44 |
% |
|
10.68 |
% |
|
10.55 |
% |
|
11.12 |
% |
|
11.33 |
% |
BUSINESS UNIT SUMMARY
Community Banking
Through its community banking franchise, the
Company provides banking and financial services primarily to
individuals, small to mid-sized businesses, local governmental
units and institutional clients residing primarily in the local
areas the Company services. In the first quarter of 2017,
profitability within this franchise was primarily driven by
increased net interest income due to a higher net interest margin,
partially offset by lower revenue from the mortgage banking
business. The net interest margin increased in the first quarter of
2017 compared to the fourth quarter of 2016 primarily as a result
of higher yields on the commercial (excluding lease loans) and
commercial real-estate loan portfolios as well as liquidity
management assets, and an improved funding mix related to the
Company's interest-bearing liabilities. The increased net interest
margin was offset by a $13.6 million decrease in mortgage banking
revenue in the first quarter of 2017 compared to the fourth quarter
of 2016. The lower revenue was due to originations during the
current period decreasing to $722.5 million from $1.2 billion in
the fourth quarter of 2016 due to typical seasonality in the first
quarter, as well as rising interest rates in the market. The
Company's gross commercial and commercial real estate loan
pipelines remain strong. Before the impact of scheduled payments
and prepayments, at March 31, 2017, gross commercial and commercial
real estate loan pipelines totaled $1.5 billion, or $934 million
when adjusted for the probability of closing, compared to $1.4
billion, or $895 million when adjusted for the probability of
closing, at December 31, 2016.
Specialty Finance
Through its specialty finance unit, the Company
offers financing of insurance premiums for businesses and
individuals, accounts receivable financing, value-added,
out-sourced administrative services, and other specialty finance
businesses. In the first quarter of 2017, the specialty finance
unit experienced higher revenue as a result of increased volumes
and higher yields within its insurance premium financing
receivables portfolio. Originations of $1.6 billion during the
first quarter of 2017 resulted in a $214 million increase in
average balance and $1.4 million increase in interest income
attributed to this portfolio. The Company's leasing business
continued to grow during the first quarter of 2017, increasing its
portfolio of assets, including capital leases, loans and equipment
on operating leases, by $64 million since the end of the fourth
quarter of 2016. Revenues from the Company's out-sourced
administrative services business remained steady, totaling $1.0
million and $1.1 million in the first quarter of 2017 and fourth
quarter of 2016, respectively.
Wealth Management
Through its wealth management unit, the Company
offers a full range of wealth management services through three
separate subsidiaries: trust and investment services, asset
management, securities brokerage services and 401(k) and retirement
plan services. At March 31, 2017, the Company’s wealth management
subsidiaries had approximately $22.9 billion of assets under
administration, which includes $2.5 billion of assets owned by the
Company and its subsidiary banks, representing a $978 million
increase from the $21.9 billion of assets under administration at
December 31, 2016.
LOANS
Loan Portfolio Mix and Growth Rates
|
|
|
|
|
|
|
|
% Growth |
(Dollars in thousands) |
|
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
|
From (1) December 31,
2016 |
|
From
March 31,
2016 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
6,081,489 |
|
|
$ |
6,005,422 |
|
|
$ |
4,890,246 |
|
|
5 |
% |
|
24 |
% |
Commercial real estate |
|
6,261,682 |
|
|
6,196,087 |
|
|
5,737,959 |
|
|
4 |
|
|
9 |
|
Home
equity |
|
708,258 |
|
|
725,793 |
|
|
774,342 |
|
|
(10 |
) |
|
(9 |
) |
Residential real estate |
|
720,608 |
|
|
705,221 |
|
|
626,043 |
|
|
9 |
|
|
15 |
|
Premium
finance receivables - commercial |
|
2,446,946 |
|
|
2,478,581 |
|
|
2,320,987 |
|
|
(5 |
) |
|
5 |
|
Premium
finance receivables - life insurance |
|
3,593,563 |
|
|
3,470,027 |
|
|
2,976,934 |
|
|
14 |
|
|
21 |
|
Consumer
and other |
|
118,512 |
|
|
122,041 |
|
|
119,902 |
|
|
(12 |
) |
|
(1 |
) |
Total
loans, net of unearned income, excluding covered loans |
|
$ |
19,931,058 |
|
|
$ |
19,703,172 |
|
|
$ |
17,446,413 |
|
|
5 |
% |
|
14 |
% |
Covered
loans |
|
52,359 |
|
|
58,145 |
|
|
138,848 |
|
|
(40 |
) |
|
(62 |
) |
Total
loans, net of unearned income |
|
$ |
19,983,417 |
|
|
$ |
19,761,317 |
|
|
$ |
17,585,261 |
|
|
5 |
% |
|
14 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
30 |
% |
|
30 |
% |
|
28 |
% |
|
|
|
|
Commercial real estate |
|
31 |
|
|
31 |
|
|
32 |
|
|
|
|
|
Home
equity |
|
4 |
|
|
4 |
|
|
4 |
|
|
|
|
|
Residential real estate |
|
4 |
|
|
4 |
|
|
4 |
|
|
|
|
|
Premium
finance receivables - commercial |
|
12 |
|
|
12 |
|
|
13 |
|
|
|
|
|
Premium
finance receivables - life insurance |
|
18 |
|
|
18 |
|
|
17 |
|
|
|
|
|
Consumer
and other |
|
1 |
|
|
1 |
|
|
1 |
|
|
|
|
|
Total
loans, net of unearned income, excluding covered loans |
|
100 |
% |
|
100 |
% |
|
99 |
% |
|
|
|
|
Covered
loans |
|
— |
|
|
— |
|
|
1 |
|
|
|
|
|
Total
loans, net of unearned income |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
(1) Annualized
Commercial and Commercial Real Estate Loan
Portfolios
|
|
As of March 31, 2017 |
|
|
|
|
% of
Total
Balance |
|
Nonaccrual |
|
> 90 Days
Past Due
and Still
Accruing |
|
Allowance
For Loan
Losses
Allocation |
|
|
|
|
(Dollars in thousands) |
|
Balance |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
Commercial, industrial and other |
|
$ |
3,891,075 |
|
|
31.5 |
% |
|
$ |
12,036 |
|
|
$ |
100 |
|
|
$ |
31,693 |
|
Franchise |
|
823,734 |
|
|
6.7 |
|
|
323 |
|
|
— |
|
|
4,675 |
|
Mortgage
warehouse lines of credit |
|
154,180 |
|
|
1.3 |
|
|
— |
|
|
— |
|
|
1,178 |
|
Asset-based lending |
|
881,004 |
|
|
7.1 |
|
|
1,378 |
|
|
— |
|
|
7,262 |
|
Leases |
|
320,010 |
|
|
2.6 |
|
|
570 |
|
|
— |
|
|
1,132 |
|
PCI -
commercial loans (1) |
|
11,486 |
|
|
0.1 |
|
|
— |
|
|
1,368 |
|
|
642 |
|
Total commercial |
|
$ |
6,081,489 |
|
|
49.3 |
% |
|
$ |
14,307 |
|
|
$ |
1,468 |
|
|
$ |
46,582 |
|
Commercial Real
Estate: |
|
|
|
|
|
|
|
|
|
|
Construction |
|
$ |
655,333 |
|
|
5.3 |
% |
|
$ |
2,408 |
|
|
$ |
— |
|
|
$ |
7,908 |
|
Land |
|
105,079 |
|
|
0.8 |
|
|
350 |
|
|
— |
|
|
3,658 |
|
Office |
|
870,666 |
|
|
7.1 |
|
|
3,513 |
|
|
— |
|
|
5,822 |
|
Industrial |
|
792,962 |
|
|
6.4 |
|
|
7,004 |
|
|
— |
|
|
6,728 |
|
Retail |
|
911,786 |
|
|
7.4 |
|
|
589 |
|
|
— |
|
|
5,981 |
|
Multi-family |
|
804,776 |
|
|
6.5 |
|
|
668 |
|
|
— |
|
|
8,101 |
|
Mixed use
and other |
|
1,963,744 |
|
|
15.9 |
|
|
6,277 |
|
|
— |
|
|
14,375 |
|
PCI -
commercial real estate (1) |
|
157,336 |
|
|
1.3 |
|
|
— |
|
|
12,559 |
|
|
60 |
|
Total commercial real estate |
|
$ |
6,261,682 |
|
|
50.7 |
% |
|
$ |
20,809 |
|
|
$ |
12,559 |
|
|
$ |
52,633 |
|
Total commercial and commercial real estate |
|
$ |
12,343,171 |
|
|
100.0 |
% |
|
$ |
35,116 |
|
|
$ |
14,027 |
|
|
$ |
99,215 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
- collateral location by state: |
|
|
|
|
|
|
|
|
|
|
Illinois |
|
$ |
4,943,266 |
|
|
79.0 |
% |
|
|
|
|
|
|
Wisconsin |
|
670,936 |
|
|
10.7 |
|
|
|
|
|
|
|
Total primary markets |
|
$ |
5,614,202 |
|
|
89.7 |
% |
|
|
|
|
|
|
Indiana |
|
125,233 |
|
|
2.0 |
|
|
|
|
|
|
|
Florida |
|
79,554 |
|
|
1.2 |
|
|
|
|
|
|
|
Arizona |
|
55,069 |
|
|
0.9 |
|
|
|
|
|
|
|
California |
|
41,989 |
|
|
0.7 |
|
|
|
|
|
|
|
Other (no
individual state greater than 0.7%) |
|
345,635 |
|
|
5.5 |
|
|
|
|
|
|
|
Total |
|
$ |
6,261,682 |
|
|
100.0 |
% |
|
|
|
|
|
|
(1) Purchased credit impaired ("PCI") loans
represent loans acquired with evidence of credit quality
deterioration since origination, in accordance with ASC 310-30.
Loan agings are based upon contractually required
payments.
DEPOSITS
Deposit Portfolio Mix and Growth Rates
|
|
|
|
|
|
|
|
% Growth |
(Dollars in thousands) |
|
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
|
From (1) December 31,
2016 |
|
From
March 31,
2016 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,790,579 |
|
|
$ |
5,927,377 |
|
|
$ |
5,205,410 |
|
|
(9 |
)% |
|
11 |
% |
NOW and
interest bearing demand deposits |
|
2,484,676 |
|
|
2,624,442 |
|
|
2,369,474 |
|
|
(22 |
) |
|
5 |
|
Wealth
management deposits (2) |
|
2,390,464 |
|
|
2,209,617 |
|
|
1,761,710 |
|
|
33 |
|
|
36 |
|
Money
market |
|
4,555,752 |
|
|
4,441,811 |
|
|
4,157,083 |
|
|
10 |
|
|
10 |
|
Savings |
|
2,287,958 |
|
|
2,180,482 |
|
|
1,766,552 |
|
|
20 |
|
|
30 |
|
Time
certificates of deposit |
|
4,221,012 |
|
|
4,274,903 |
|
|
3,956,842 |
|
|
(5 |
) |
|
7 |
|
Total
deposits |
|
$ |
21,730,441 |
|
|
$ |
21,658,632 |
|
|
$ |
19,217,071 |
|
|
1 |
% |
|
13 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
27 |
% |
|
27 |
% |
|
27 |
% |
|
|
|
|
NOW and
interest bearing demand deposits |
|
11 |
|
|
12 |
|
|
12 |
|
|
|
|
|
Wealth
management deposits (2) |
|
11 |
|
|
10 |
|
|
9 |
|
|
|
|
|
Money
market |
|
21 |
|
|
21 |
|
|
22 |
|
|
|
|
|
Savings |
|
11 |
|
|
10 |
|
|
9 |
|
|
|
|
|
Time
certificates of deposit |
|
19 |
|
|
20 |
|
|
21 |
|
|
|
|
|
Total
deposits |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
(1) Annualized
(2) Represents deposit balances of the Company’s subsidiary
banks from brokerage customers of Wayne Hummer Investments, trust
and asset management customers of the Company and brokerage
customers from unaffiliated companies which have been placed into
deposit accounts.
Time Certificates of Deposit
Maturity/Re-pricing Analysis
As of March 31, 2017
(Dollars in thousands) |
|
CDARs &
Brokered
Certificates
of Deposit (1) |
|
MaxSafe
Certificates
of Deposit (1) |
|
Variable Rate
Certificates
of Deposit (2) |
|
Other Fixed
Rate
Certificates
of Deposit (1) |
|
Total Time
Certificates of
Deposit |
|
Weighted-
Average Rate of
Maturing Time
Certificates of Deposit
(3) |
1-3 months |
|
$ |
43,578 |
|
|
$ |
47,371 |
|
|
$ |
132,858 |
|
|
$ |
673,994 |
|
|
$ |
897,801 |
|
|
0.62 |
% |
4-6 months |
|
535 |
|
|
30,294 |
|
|
— |
|
|
597,665 |
|
|
628,494 |
|
|
0.76 |
% |
7-9 months |
|
1,252 |
|
|
19,845 |
|
|
— |
|
|
701,548 |
|
|
722,645 |
|
|
0.94 |
% |
10-12 months |
|
1,494 |
|
|
19,652 |
|
|
— |
|
|
709,879 |
|
|
731,025 |
|
|
0.97 |
% |
13-18 months |
|
3,034 |
|
|
14,025 |
|
|
— |
|
|
797,334 |
|
|
814,393 |
|
|
1.08 |
% |
19-24 months |
|
— |
|
|
8,905 |
|
|
— |
|
|
126,543 |
|
|
135,448 |
|
|
0.99 |
% |
24+ months |
|
1,249 |
|
|
20,362 |
|
|
— |
|
|
269,595 |
|
|
291,206 |
|
|
1.36 |
% |
Total |
|
$ |
51,142 |
|
|
$ |
160,454 |
|
|
$ |
132,858 |
|
|
$ |
3,876,558 |
|
|
$ |
4,221,012 |
|
|
0.91 |
% |
(1) This category of certificates of deposit is shown by
contractual maturity date.
(2) This category includes variable rate certificates of
deposit and savings certificates with the majority repricing on at
least a monthly basis.
(3) Weighted-average rate excludes the impact of purchase
accounting fair value adjustments.
NET INTEREST INCOME
The following table presents a summary of
Wintrust’s average balances, net interest income and related net
interest margins, calculated on a fully tax-equivalent basis, for
the first quarter of 2017 compared to the fourth quarter of 2016
(sequential quarters) and first quarter of 2016 (linked quarters),
respectively:
|
Average Balance
for three months ended, |
|
Interest
for three months ended, |
|
Yield/Rate
for three months ended, |
(Dollars in thousands) |
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
|
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
|
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
Liquidity management
assets(1)(2)(7) |
$ |
3,270,467 |
|
|
$ |
3,860,616 |
|
|
$ |
3,300,138 |
|
|
$ |
17,174 |
|
|
$ |
16,455 |
|
|
$ |
19,794 |
|
|
2.13 |
% |
|
1.70 |
% |
|
2.41 |
% |
Other earning
assets(2)(3)(7) |
25,236 |
|
|
27,608 |
|
|
28,731 |
|
|
183 |
|
|
235 |
|
|
236 |
|
|
2.95 |
|
|
3.37 |
|
|
3.31 |
|
Loans, net of unearned
income(2)(4)(7) |
19,923,606 |
|
|
19,711,504 |
|
|
17,508,593 |
|
|
199,186 |
|
|
198,861 |
|
|
171,625 |
|
|
4.05 |
|
|
4.01 |
|
|
3.94 |
|
Covered loans |
56,872 |
|
|
59,827 |
|
|
141,351 |
|
|
918 |
|
|
960 |
|
|
2,011 |
|
|
6.55 |
|
|
6.38 |
|
|
5.72 |
|
Total
earning assets(7) |
$ |
23,276,181 |
|
|
$ |
23,659,555 |
|
|
$ |
20,978,813 |
|
|
$ |
217,461 |
|
|
$ |
216,511 |
|
|
$ |
193,666 |
|
|
3.79 |
% |
|
3.64 |
% |
|
3.71 |
% |
Allowance for loan and
covered loan losses |
(127,425 |
) |
|
(122,665 |
) |
|
(112,028 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
229,588 |
|
|
221,892 |
|
|
259,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
1,829,004 |
|
|
1,852,278 |
|
|
1,776,785 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
25,207,348 |
|
|
$ |
25,611,060 |
|
|
$ |
22,902,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
$ |
15,466,670 |
|
|
$ |
15,567,263 |
|
|
$ |
13,717,333 |
|
|
$ |
16,270 |
|
|
$ |
16,413 |
|
|
$ |
12,781 |
|
|
0.43 |
% |
|
0.42 |
% |
|
0.37 |
% |
Federal Home Loan Bank
advances |
181,338 |
|
|
388,780 |
|
|
825,104 |
|
|
1,590 |
|
|
2,439 |
|
|
2,886 |
|
|
3.55 |
|
|
2.50 |
|
|
1.41 |
|
Other borrowings |
255,012 |
|
|
240,174 |
|
|
257,384 |
|
|
1,139 |
|
|
1,074 |
|
|
1,058 |
|
|
1.81 |
|
|
1.78 |
|
|
1.65 |
|
Subordinated notes |
138,980 |
|
|
138,953 |
|
|
138,870 |
|
|
1,772 |
|
|
1,779 |
|
|
1,777 |
|
|
5.10 |
|
|
5.12 |
|
|
5.12 |
|
Junior subordinated
debentures |
253,566 |
|
|
253,566 |
|
|
257,687 |
|
|
2,408 |
|
|
2,530 |
|
|
2,220 |
|
|
3.80 |
|
|
3.90 |
|
|
3.41 |
|
Total
interest-bearing liabilities |
$ |
16,295,566 |
|
|
$ |
16,588,736 |
|
|
$ |
15,196,378 |
|
|
$ |
23,179 |
|
|
$ |
24,235 |
|
|
$ |
20,722 |
|
|
0.58 |
% |
|
0.58 |
% |
|
0.55 |
% |
Non-interest bearing
deposits |
5,787,034 |
|
|
5,902,439 |
|
|
4,939,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
385,698 |
|
|
430,009 |
|
|
377,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
2,739,050 |
|
|
2,689,876 |
|
|
2,389,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders’ equity |
$ |
25,207,348 |
|
|
$ |
25,611,060 |
|
|
$ |
22,902,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread(5)(7) |
|
|
|
|
|
|
|
|
|
|
|
|
3.21 |
% |
|
3.06 |
% |
|
3.16 |
% |
Less: Fully
tax-equivalent adjustment |
|
|
|
|
|
|
(1,702 |
) |
|
(1,498 |
) |
|
(1,435 |
) |
|
(0.03 |
) |
|
(0.02 |
) |
|
(0.03 |
) |
Net free funds/
contribution(6) |
$ |
6,980,615 |
|
|
$ |
7,070,819 |
|
|
$ |
5,782,435 |
|
|
|
|
|
|
|
|
0.18 |
|
|
0.17 |
|
|
0.16 |
|
Net interest income/
margin(7) (GAAP) |
|
|
|
|
|
|
$ |
192,580 |
|
|
$ |
190,778 |
|
|
$ |
171,509 |
|
|
3.36 |
% |
|
3.21 |
% |
|
3.29 |
% |
Fully tax-equivalent
adjustment |
|
|
|
|
|
|
1,702 |
|
|
1,498 |
|
|
1,435 |
|
|
0.03 |
|
|
0.02 |
|
|
0.03 |
|
Net interest income/
margin - FTE (7) |
|
|
|
|
|
|
$ |
194,282 |
|
|
$ |
192,276 |
|
|
$ |
172,944 |
|
|
3.39 |
% |
|
3.23 |
% |
|
3.32 |
% |
(1) Liquidity management assets include available-for-sale
and held-to-maturity securities, interest earning deposits with
banks, federal funds sold and securities purchased under resale
agreements.
(2) Interest income on tax-advantaged loans, trading
securities and investment securities reflects a tax-equivalent
adjustment based on a marginal federal corporate tax rate of 35%.
The total adjustments for the three months ended March 31,
2017, December 31, 2016 and March 31, 2016 were $1.7 million,
$1.5 million and $1.4 million, respectively.
(3) Other earning assets include brokerage customer
receivables and trading account securities.
(4) Loans, net of unearned income, include loans
held-for-sale and non-accrual loans.
(5) Interest rate spread is the difference between the yield
earned on earning assets and the rate paid on interest-bearing
liabilities.
(6) Net free funds are the difference between total average
earning assets and total average interest-bearing liabilities. The
estimated contribution to net interest margin from net free funds
is calculated using the rate paid for total interest-bearing
liabilities.
(7) See “Supplemental Financial Measures/Ratios” for
additional information on this performance ratio.
For the first quarter of 2017, net interest
income totaled $192.6 million, an increase of $1.8 million as
compared to the fourth quarter of 2016 and an increase of $21.1
million as compared to the first quarter of 2016. Net interest
margin was 3.36% (3.39% on a fully tax-equivalent basis) during the
first quarter of 2017 compared to 3.21% (3.23% on a fully
tax-equivalent basis) during the fourth quarter of 2016 and 3.29%
(3.32% on a fully tax-equivalent basis) during the first quarter of
2016.
Interest Rate Sensitivity
As an ongoing part of its financial strategy,
the Company attempts to manage the impact of fluctuations in market
interest rates on net interest income. Management measures its
exposure to changes in interest rates by modeling many different
interest rate scenarios.
The following interest rate scenarios display
the percentage change in net interest income over a one-year time
horizon assuming increases of 100 and 200 basis points and a
decrease of 100 basis points. The Static Shock Scenario results
incorporate actual cash flows and repricing characteristics for
balance sheet instruments following an instantaneous, parallel
change in market rates based upon a static (i.e. no growth or
constant) balance sheet. Conversely, the Ramp Scenario results
incorporate management’s projections of future volume and pricing
of each of the product lines following a gradual, parallel change
in market rates over twelve months. Actual results may differ
from these simulated results due to timing, magnitude, and
frequency of interest rate changes as well as changes in market
conditions and management strategies. The interest rate sensitivity
for both the Static Shock and Ramp Scenario at March 31,
2017, December 31, 2016 and March 31, 2016 is as
follows:
|
|
|
|
|
|
Static Shock Scenario |
|
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
March 31,
2017 |
|
17.7 |
% |
|
9.3 |
% |
|
(13.2 |
)% |
December 31, 2016 |
|
18.5 |
% |
|
9.6 |
% |
|
(13.2 |
)% |
March 31, 2016 |
|
16.4 |
% |
|
8.9 |
% |
|
(8.7 |
)% |
Ramp Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
March 31,
2017 |
7.3 |
% |
|
3.9 |
% |
|
(4.8 |
)% |
December 31, 2016 |
7.6 |
% |
|
4.0 |
% |
|
(5.0 |
)% |
March 31, 2016 |
7.5 |
% |
|
3.7 |
% |
|
(3.7 |
)% |
These results indicate that the Company has
positioned its balance sheet to benefit from a rise in interest
rates. This analysis also indicates that the Company would
benefit to a greater magnitude should a rise in interest rates be
significant (i.e., 200 basis points) and immediate (Static Shock
Scenario).
Maturities and Sensitivities of Loans to
Changes in Interest Rates
The following table classifies the loan
portfolio, excluding covered loans, at March 31, 2017 by date
at which the loans reprice or mature, and the type of rate
exposure:
As of March 31,
2017 |
One year or less |
|
From one to five
years |
|
Over five years |
|
|
(Dollars in thousands) |
|
|
|
Total |
Commercial |
|
|
|
|
|
|
|
Fixed
rate |
$ |
103,508 |
|
|
$ |
700,701 |
|
|
$ |
477,141 |
|
|
$ |
1,281,350 |
|
Variable
rate |
4,788,750 |
|
|
9,426 |
|
|
1,963 |
|
|
4,800,139 |
|
Total
commercial |
$ |
4,892,258 |
|
|
$ |
710,127 |
|
|
$ |
479,104 |
|
|
$ |
6,081,489 |
|
Commercial real
estate |
|
|
|
|
|
|
|
Fixed
rate |
386,082 |
|
|
1,706,877 |
|
|
272,040 |
|
|
2,364,999 |
|
Variable
rate |
3,862,571 |
|
|
32,513 |
|
|
1,599 |
|
|
3,896,683 |
|
Total
commercial real estate |
$ |
4,248,653 |
|
|
$ |
1,739,390 |
|
|
$ |
273,639 |
|
|
$ |
6,261,682 |
|
Home Equity |
|
|
|
|
|
|
|
Fixed
rate |
4,803 |
|
|
3,284 |
|
|
66,264 |
|
|
74,351 |
|
Variable
rate |
633,439 |
|
|
75 |
|
|
393 |
|
|
633,907 |
|
Total
home equity |
$ |
638,242 |
|
|
$ |
3,359 |
|
|
$ |
66,657 |
|
|
$ |
708,258 |
|
Residential real
estate |
|
|
|
|
|
|
|
Fixed
rate |
47,885 |
|
|
41,106 |
|
|
140,076 |
|
|
229,067 |
|
Variable
rate |
60,869 |
|
|
177,311 |
|
|
253,361 |
|
|
491,541 |
|
Total
residential real estate |
$ |
108,754 |
|
|
$ |
218,417 |
|
|
$ |
393,437 |
|
|
$ |
720,608 |
|
Premium finance
receivables - commercial |
|
|
|
|
|
|
|
Fixed
rate |
2,364,859 |
|
|
82,087 |
|
|
— |
|
|
2,446,946 |
|
Variable
rate |
— |
|
|
— |
|
|
— |
|
|
— |
|
Total
premium finance receivables - commercial |
$ |
2,364,859 |
|
|
$ |
82,087 |
|
|
$ |
— |
|
|
$ |
2,446,946 |
|
Premium finance
receivables - life insurance |
|
|
|
|
|
|
|
Fixed
rate |
14,387 |
|
|
36,404 |
|
|
1,377 |
|
|
52,168 |
|
Variable
rate |
3,541,395 |
|
|
— |
|
|
— |
|
|
3,541,395 |
|
Total
premium finance receivables - life insurance |
$ |
3,555,782 |
|
|
$ |
36,404 |
|
|
$ |
1,377 |
|
|
$ |
3,593,563 |
|
Consumer and other |
|
|
|
|
|
|
|
Fixed
rate |
59,400 |
|
|
12,480 |
|
|
3,321 |
|
|
75,201 |
|
Variable
rate |
43,311 |
|
|
— |
|
|
— |
|
|
43,311 |
|
Total
consumer and other |
$ |
102,711 |
|
|
$ |
12,480 |
|
|
$ |
3,321 |
|
|
$ |
118,512 |
|
Total per category |
|
|
|
|
|
|
|
Fixed
rate |
2,980,924 |
|
|
2,582,939 |
|
|
960,219 |
|
|
6,524,082 |
|
Variable
rate |
12,930,335 |
|
|
219,325 |
|
|
257,316 |
|
|
13,406,976 |
|
Total
loans, net of unearned income, excluding covered loans |
$ |
15,911,259 |
|
|
$ |
2,802,264 |
|
|
$ |
1,217,535 |
|
|
$ |
19,931,058 |
|
Variable Rate Loan Pricing by
Index: |
|
|
|
|
|
|
|
Prime |
$ |
2,999,998 |
|
|
|
|
|
|
|
One-
month LIBOR |
6,104,386 |
|
|
|
|
|
|
|
Three-
month LIBOR |
522,109 |
|
|
|
|
|
|
|
Twelve-
month LIBOR |
3,341,513 |
|
|
|
|
|
|
|
Other |
438,970 |
|
|
|
|
|
|
|
Total
variable rate |
$ |
13,406,976 |
|
|
|
|
|
|
|
NON-INTEREST INCOME
The following table presents non-interest income by category for
the periods presented:
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
Q1 2017 compared to
Q4 2016 |
|
Q1 2017 compared to
Q1 2016 |
(Dollars in thousands) |
|
2017 |
|
2016 |
|
2016 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
|
$ |
6,220 |
|
|
$ |
6,408 |
|
|
$ |
6,057 |
|
|
$ |
(188 |
) |
|
(3 |
)% |
|
$ |
163 |
|
|
3 |
% |
Trust and asset
management |
|
13,928 |
|
|
13,104 |
|
|
12,263 |
|
|
824 |
|
|
6 |
|
|
1,665 |
|
|
14 |
|
Total
wealth management |
|
20,148 |
|
|
19,512 |
|
|
18,320 |
|
|
636 |
|
|
3 |
|
|
1,828 |
|
|
10 |
|
Mortgage banking |
|
21,938 |
|
|
35,489 |
|
|
21,735 |
|
|
(13,551 |
) |
|
(38 |
) |
|
203 |
|
|
1 |
|
Service charges on
deposit accounts |
|
8,265 |
|
|
8,054 |
|
|
7,406 |
|
|
211 |
|
|
3 |
|
|
859 |
|
|
12 |
|
(Losses) gains on
investment securities, net |
|
(55 |
) |
|
1,575 |
|
|
1,325 |
|
|
(1,630 |
) |
|
NM |
|
|
(1,380 |
) |
|
NM |
|
Fees from covered call
options |
|
759 |
|
|
1,476 |
|
|
1,712 |
|
|
(717 |
) |
|
(49 |
) |
|
(953 |
) |
|
(56 |
) |
Trading (losses) gains,
net |
|
(320 |
) |
|
1,007 |
|
|
(168 |
) |
|
(1,327 |
) |
|
NM |
|
|
(152 |
) |
|
90 |
|
Operating lease income,
net |
|
5,782 |
|
|
5,171 |
|
|
2,806 |
|
|
611 |
|
|
12 |
|
|
2,976 |
|
|
NM |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
rate swap fees |
|
1,433 |
|
|
2,870 |
|
|
4,438 |
|
|
(1,437 |
) |
|
(50 |
) |
|
(3,005 |
) |
|
(68 |
) |
BOLI |
|
985 |
|
|
981 |
|
|
472 |
|
|
4 |
|
|
— |
|
|
513 |
|
|
NM |
|
Administrative services |
|
1,024 |
|
|
1,115 |
|
|
1,069 |
|
|
(91 |
) |
|
(8 |
) |
|
(45 |
) |
|
(4 |
) |
(Loss)
gain on extinguishment of debt |
|
— |
|
|
(717 |
) |
|
4,305 |
|
|
717 |
|
|
NM |
|
|
(4,305 |
) |
|
NM |
|
Early
pay-offs of leases |
|
1,211 |
|
|
728 |
|
|
— |
|
|
483 |
|
|
66 |
|
|
1,211 |
|
|
NM |
|
Miscellaneous |
|
7,595 |
|
|
8,014 |
|
|
5,332 |
|
|
(419 |
) |
|
(5 |
) |
|
2,263 |
|
|
42 |
|
Total
Other |
|
12,248 |
|
|
12,991 |
|
|
15,616 |
|
|
(743 |
) |
|
(6 |
) |
|
(3,368 |
) |
|
(22 |
) |
Total Non-Interest
Income |
|
$ |
68,765 |
|
|
$ |
85,275 |
|
|
$ |
68,752 |
|
|
$ |
(16,510 |
) |
|
(19 |
)% |
|
$ |
13 |
|
|
— |
% |
NM - Not Meaningful
Notable contributions to the change in
non-interest income are as follows:
The increase in wealth management revenue during
the current period as compared to the fourth quarter of 2016 and
first quarter of 2016 is primarily attributable to growth in assets
under management due to new customers. Wealth management
revenue is comprised of the trust and asset management revenue of
The Chicago Trust Company and Great Lakes Advisors and the
brokerage commissions, managed money fees and insurance product
commissions at Wayne Hummer Investments.
The decrease in mortgage banking revenue in the
current quarter as compared to the most recent quarter resulted
primarily from lower origination volumes in the current quarter.
The lower origination volume was a result of typical seasonality in
the first quarter and a higher interest rate environment. Mortgage
loans originated or purchased for sale decreased during the current
quarter, totaling $722.5 million in the first quarter of 2017 as
compared to $1.2 billion in the fourth quarter of 2016 and $736.6
million in the first quarter of 2016. Mortgage banking revenue
includes revenue from activities related to originating, selling
and servicing residential real estate loans for the secondary
market. Mortgage revenue is also impacted by changes in the fair
value of MSRs as the Company does not hedge this change in fair
value. The Company typically originates mortgage loans
held-for-sale with associated MSRs either retained or released. The
Company records MSRs at fair value on a recurring basis.
The table below presents additional selected
information regarding mortgage banking revenue for the respective
periods.
|
|
Three Months Ended |
(Dollars in thousands) |
|
March 31,
2017 |
|
December 31,
2016 |
|
March 31,
2016 |
Retail
originations |
|
$ |
624,971 |
|
|
1,042,145 |
|
|
$ |
704,990 |
|
Correspondent
originations |
|
97,496 |
|
|
135,726 |
|
|
31,658 |
|
(A) Total
originations |
|
$ |
722,467 |
|
|
1,177,871 |
|
|
$ |
736,648 |
|
|
|
|
|
|
|
|
Purchases as a
percentage of originations |
|
66 |
% |
|
52 |
% |
|
56 |
% |
Refinances as a
percentage of originations |
|
34 |
|
|
48 |
|
|
44 |
|
Total |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
(B) Production revenue
(1) |
|
$ |
17,677 |
|
|
$ |
28,320 |
|
|
$ |
19,930 |
|
Production margin (B /
A) |
|
2.45 |
% |
|
2.40 |
% |
|
2.71 |
% |
|
|
|
|
|
|
|
Loans serviced for
others (C) |
|
$ |
1,972,592 |
|
|
$ |
1,784,760 |
|
|
$ |
1,044,745 |
|
MSRs, at fair value
(D) |
|
21,596 |
|
|
19,103 |
|
|
10,128 |
|
Percentage of mortgage
servicing rights to loans serviced for others (D/C) |
|
1.09 |
% |
|
1.07 |
% |
|
0.97 |
% |
(1) Production revenue represents revenue earned from the
origination and subsequent sale of mortgages, including gains on
loans sold and fees from originations, processing and other related
activities, and excludes servicing fees, changes in the fair value
of servicing rights and changes to the mortgage recourse
obligation.
The Company has typically written call options
with terms of less than three months against certain U.S. Treasury
and agency securities held in its portfolio for liquidity and other
purposes. Management has effectively entered into these
transactions with the goal of economically hedging security
positions and enhancing its overall return on its investment
portfolio by using fees generated from these options to compensate
for net interest margin compression. These option transactions are
designed to mitigate overall interest rate risk and do not qualify
as hedges pursuant to accounting guidance. Fees from covered call
options decreased in the current quarter compared to the fourth
quarter of 2016 primarily as a result of selling call options
against a smaller value of underlying securities resulting in lower
premiums received by the Company. There were no outstanding call
option contracts at March 31, 2017, December 31, 2016 and
March 31, 2016.
The Company recognized $320,000 of trading
losses in the first quarter of 2017 compared to trading gains of
$1.0 million in the fourth quarter of 2016 and trading losses of
$168,000 in the first quarter of 2016. Trading gains and losses
recorded by the Company primarily result from fair value
adjustments related to interest rate derivatives not designated as
hedges.
The increase in operating lease income in the
current quarter compared to the prior period quarters is primarily
related to growth in business from the Company's leasing divisions
during the first quarter of 2017.
The decrease in other non-interest income in the
current quarter as compared to the fourth quarter of 2016 is
primarily due to lower swap fee revenues resulting from interest
rate hedging transactions related to both customer-based trades and
the related matched trades with inter-bank dealer counterparties,
partially offset by the loss on extinguishment of debt recognized
in previous quarter.
NON-INTEREST EXPENSE
The following table presents non-interest expense by category
for the periods present:
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
Q1 2017 compared to
Q4 2016 |
|
Q1 2017 compared to
Q1 2016 |
(Dollars in thousands) |
|
2017 |
|
2016 |
|
2016 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
55,008 |
|
|
$ |
53,108 |
|
|
$ |
50,282 |
|
|
$ |
1,900 |
|
|
4 |
% |
|
$ |
4,726 |
|
|
9 |
% |
Commissions and incentive compensation |
|
26,643 |
|
|
35,744 |
|
|
26,375 |
|
|
(9,101 |
) |
|
(25 |
) |
|
268 |
|
|
1 |
|
Benefits |
|
17,665 |
|
|
15,883 |
|
|
19,154 |
|
|
1,782 |
|
|
11 |
|
|
(1,489 |
) |
|
(8 |
) |
Total
salaries and employee benefits |
|
99,316 |
|
|
104,735 |
|
|
95,811 |
|
|
(5,419 |
) |
|
(5 |
) |
|
3,505 |
|
|
4 |
|
Equipment |
|
9,002 |
|
|
9,532 |
|
|
8,767 |
|
|
(530 |
) |
|
(6 |
) |
|
235 |
|
|
3 |
|
Operating lease
equipment depreciation |
|
4,636 |
|
|
4,219 |
|
|
2,050 |
|
|
417 |
|
|
10 |
|
|
2,586 |
|
|
NM |
|
Occupancy, net |
|
13,101 |
|
|
14,254 |
|
|
11,948 |
|
|
(1,153 |
) |
|
(8 |
) |
|
1,153 |
|
|
10 |
|
Data processing |
|
7,925 |
|
|
7,687 |
|
|
6,519 |
|
|
238 |
|
|
3 |
|
|
1,406 |
|
|
22 |
|
Advertising and
marketing |
|
5,150 |
|
|
6,691 |
|
|
3,779 |
|
|
(1,541 |
) |
|
(23 |
) |
|
1,371 |
|
|
36 |
|
Professional fees |
|
4,660 |
|
|
5,425 |
|
|
4,059 |
|
|
(765 |
) |
|
(14 |
) |
|
601 |
|
|
15 |
|
Amortization of other
intangible assets |
|
1,164 |
|
|
1,158 |
|
|
1,298 |
|
|
6 |
|
|
1 |
|
|
(134 |
) |
|
(10 |
) |
FDIC insurance |
|
4,156 |
|
|
4,726 |
|
|
3,613 |
|
|
(570 |
) |
|
(12 |
) |
|
543 |
|
|
15 |
|
OREO expense, net |
|
1,665 |
|
|
1,843 |
|
|
560 |
|
|
(178 |
) |
|
(10 |
) |
|
1,105 |
|
|
NM |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
1,098 |
|
|
1,165 |
|
|
1,310 |
|
|
(67 |
) |
|
(6 |
) |
|
(212 |
) |
|
(16 |
) |
Postage |
|
1,442 |
|
|
1,955 |
|
|
1,302 |
|
|
(513 |
) |
|
(26 |
) |
|
140 |
|
|
11 |
|
Miscellaneous |
|
14,803 |
|
|
16,981 |
|
|
12,714 |
|
|
(2,178 |
) |
|
(13 |
) |
|
2,089 |
|
|
16 |
|
Total
other |
|
17,343 |
|
|
20,101 |
|
|
15,326 |
|
|
(2,758 |
) |
|
(14 |
) |
|
2,017 |
|
|
13 |
|
Total Non-Interest Expense |
|
$ |
168,118 |
|
|
$ |
180,371 |
|
|
$ |
153,730 |
|
|
$ |
(12,253 |
) |
|
(7 |
)% |
|
$ |
14,388 |
|
|
9 |
% |
NM - Not Meaningful
Notable contributions to the change in
non-interest expense are as follows:
Salaries and employee benefits expense decreased
in the current quarter compared to the fourth quarter of 2016
primarily as a result of lower incentive compensation on variable
pay based arrangements (including mortgage banking commissions),
partially offset by higher salaries and benefits.
Occupancy expense decreased in the current
quarter compared to the fourth quarter of 2016 due to lower net
rent expense on leased properties as well as lower maintenance and
repair costs. Occupancy expense includes depreciation on premises,
real estate taxes, utilities and maintenance of premises, as well
as net rent expense for lease premises.
The decrease in advertising and marketing
expenses during the current quarter compared to the fourth quarter
of 2016 is primarily related to the lower expenses for mass market
media promotions and printing costs. Marketing costs are incurred
to promote the Company's brand, commercial banking capabilities,
the Company's various products, to attract loans and deposits and
to announce new branch openings as well as the expansion of the
company's non-bank businesses. The level of marketing expenditures
depends on the type of marketing programs utilized which are
determined based on the market area, targeted audience, competition
and various other factors.
The decrease in miscellaneous expenses during
the current quarter compared to the fourth quarter of 2016 is
primarily a result of lower travel and entertainment expenses.
Miscellaneous expense includes ATM expenses, correspondent bank
charges, directors' fees, telephone, travel and entertainment,
corporate insurance, dues and subscriptions, problem loan expenses,
operating losses and lending origination costs that are not
deferred.
INCOME TAXES
The Company recorded income tax expense of $29.6
million in the first quarter of 2017 compared to $33.7 million in
the fourth quarter of 2016. The effective tax rates were 33.67% in
first quarter of 2017 and 38.18% in the fourth quarter of 2016. The
lower effective tax rate in the first quarter of 2017 was primarily
a result of recording $3.4 million of excess tax benefits related
to the adoption of new accounting rules over income taxes
attributed to share-based compensation that became effective on
January 1, 2017. These excess tax benefits are expected to be
higher in the first quarter when the majority of the Company's
share-based awards vest, and will fluctuate throughout the year
based on the Company's stock price and timing of employee stock
option exercises and vesting of other share-based awards.
ASSET QUALITY
Allowance for Credit Losses,
excluding covered loans
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
2017 |
|
2016 |
|
2016 |
Allowance for
loan losses at beginning of period |
|
$ |
122,291 |
|
|
$ |
117,693 |
|
|
$ |
105,400 |
|
Provision for
credit losses |
|
5,316 |
|
|
7,357 |
|
|
8,423 |
|
Other
adjustments |
|
(56 |
) |
|
33 |
|
|
(78 |
) |
Reclassification (to) from allowance for unfunded
lending-related commitments |
|
(138 |
) |
|
(25 |
) |
|
(81 |
) |
Charge-offs: |
|
|
|
|
|
|
Commercial |
|
641 |
|
|
3,054 |
|
|
671 |
|
Commercial real estate |
|
261 |
|
|
375 |
|
|
671 |
|
Home
equity |
|
625 |
|
|
326 |
|
|
1,052 |
|
Residential real estate |
|
329 |
|
|
410 |
|
|
493 |
|
Premium
finance receivables - commercial |
|
1,427 |
|
|
1,843 |
|
|
2,480 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
134 |
|
|
205 |
|
|
107 |
|
Total
charge-offs |
|
3,417 |
|
|
6,213 |
|
|
5,474 |
|
Recoveries: |
|
|
|
|
|
|
Commercial |
|
273 |
|
|
668 |
|
|
629 |
|
Commercial real estate |
|
554 |
|
|
1,916 |
|
|
369 |
|
Home
equity |
|
65 |
|
|
300 |
|
|
48 |
|
Residential real estate |
|
178 |
|
|
21 |
|
|
112 |
|
Premium
finance receivables - commercial |
|
612 |
|
|
498 |
|
|
787 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
141 |
|
|
43 |
|
|
36 |
|
Total
recoveries |
|
1,823 |
|
|
3,446 |
|
|
1,981 |
|
Net charge-offs |
|
(1,594 |
) |
|
(2,767 |
) |
|
(3,493 |
) |
Allowance for loan losses at period end |
|
$ |
125,819 |
|
|
$ |
122,291 |
|
|
$ |
110,171 |
|
Allowance for unfunded lending-related commitments at
period end |
|
1,811 |
|
|
1,673 |
|
|
1,030 |
|
Allowance for credit losses at period end |
|
$ |
127,630 |
|
|
$ |
123,964 |
|
|
$ |
111,201 |
|
Annualized net charge-offs (recoveries) by category as a
percentage of its own respective
category’s average: |
|
|
|
|
|
|
Commercial |
|
0.03 |
% |
|
0.16 |
% |
|
0.00 |
% |
Commercial real estate |
|
(0.02 |
) |
|
(0.10 |
) |
|
0.02 |
|
Home
equity |
|
0.32 |
|
|
0.01 |
|
|
0.52 |
|
Residential real estate |
|
0.06 |
|
|
0.13 |
|
|
0.17 |
|
Premium
finance receivables - commercial |
|
0.13 |
|
|
0.22 |
|
|
0.29 |
|
Premium
finance receivables - life insurance |
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
Consumer
and other |
|
(0.02 |
) |
|
0.47 |
|
|
0.20 |
|
Total
loans, net of unearned income, excluding covered loans |
|
0.03 |
% |
|
0.06 |
% |
|
0.08 |
% |
Net charge-offs as a percentage of the provision for
credit losses |
|
29.98 |
% |
|
37.61 |
% |
|
41.47 |
% |
Loans at period-end, excluding covered loans |
|
$ |
19,931,058 |
|
|
$ |
19,703,172 |
|
|
$ |
17,446,413 |
|
Allowance for loan losses as a percentage of loans at
period end |
|
0.63 |
% |
|
0.62 |
% |
|
0.63 |
% |
Allowance for credit losses as a percentage of loans at
period end |
|
0.64 |
% |
|
0.63 |
% |
|
0.64 |
% |
The allowance for credit losses, excluding the
allowance for covered loan losses, is comprised of the allowance
for loan losses and the allowance for unfunded lending-related
commitments. The allowance for loan losses is a reserve against
loan amounts that are actually funded and outstanding while the
allowance for unfunded lending-related commitments (separate
liability account) relates to certain amounts that Wintrust is
committed to lend but for which funds have not yet been disbursed.
The provision for credit losses, excluding the provision for
covered loan losses, may contain both a component related to funded
loans (provision for loan losses) and a component related to
lending-related commitments (provision for unfunded loan
commitments and letters of credit).
Net charge-offs as a percentage of loans,
excluding covered loans, for the first quarter of 2017 totaled
three basis points on an annualized basis compared to six basis
points on an annualized basis in the fourth quarter of 2016 and
eight basis points on an annualized basis in the first quarter of
2016. Net charge-offs totaled $1.6 million in the first
quarter of 2017, a $1.2 million decrease from $2.8 million in the
fourth quarter of 2016 and a $1.9 million decrease from $3.5
million in the first quarter of 2016. The provision for credit
losses, excluding the provision for covered loan losses, totaled
$5.3 million for the first quarter of 2017 compared to $7.4 million
for the fourth quarter of 2016 and $8.4 million for the first
quarter of 2016.
Management believes the allowance for credit
losses is appropriate to provide for inherent losses in the
portfolio. There can be no assurances however, that future losses
will not exceed the amounts provided for, thereby affecting future
results of operations. The amount of future additions to the
allowance for credit losses will be dependent upon management’s
assessment of the appropriateness of the allowance based on its
evaluation of economic conditions, changes in real estate values,
interest rates, the regulatory environment, the level of past-due
and non-performing loans and other factors.
The Company also provides a provision for
covered loan losses on covered loans and maintains an allowance for
covered loan losses on covered loans. Please see “Covered Assets”
later in this document for more detail.
The following table presents the provision for
credit losses and allowance for credit losses by component for the
periods presented:
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
2017 |
|
2016 |
|
2016 |
Provision for loan
losses |
|
$ |
5,178 |
|
|
$ |
7,332 |
|
|
$ |
8,342 |
|
Provision for unfunded
lending-related commitments |
|
138 |
|
|
25 |
|
|
81 |
|
Provision for covered
loan losses |
|
(107 |
) |
|
(7 |
) |
|
(389 |
) |
Provision for credit
losses |
|
$ |
5,209 |
|
|
$ |
7,350 |
|
|
$ |
8,034 |
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2017 |
|
2016 |
|
2016 |
Allowance for loan
losses |
|
$ |
125,819 |
|
|
$ |
122,291 |
|
|
$ |
110,171 |
|
Allowance for unfunded
lending-related commitments |
|
1,811 |
|
|
1,673 |
|
|
1,030 |
|
Allowance for covered
loan losses |
|
1,319 |
|
|
1,322 |
|
|
2,507 |
|
Allowance for credit
losses |
|
$ |
128,949 |
|
|
$ |
125,286 |
|
|
$ |
113,708 |
|
The tables below summarize the calculation of
allowance for loan losses for the Company’s core loan portfolio and
consumer, niche and purchased loan portfolio, excluding covered
loans, as of March 31, 2017 and December 31, 2016.
|
|
As of March 31, 2017 |
|
|
Recorded |
|
Calculated |
|
As a percentage
of its own respective |
(Dollars in thousands) |
|
Investment |
|
Allowance |
|
category’s balance |
Commercial:(1) |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
3,396,191 |
|
|
$ |
29,088 |
|
|
0.86 |
% |
Asset-based lending |
|
875,403 |
|
|
7,262 |
|
|
0.83 |
|
Tax
exempt |
|
315,487 |
|
|
2,206 |
|
|
0.70 |
|
Leases |
|
318,943 |
|
|
1,132 |
|
|
0.35 |
|
Commercial real
estate:(1) |
|
|
|
|
|
|
Residential construction |
|
46,956 |
|
|
1,091 |
|
|
2.32 |
|
Commercial construction |
|
607,507 |
|
|
6,817 |
|
|
1.12 |
|
Land |
|
100,056 |
|
|
3,655 |
|
|
3.65 |
|
Office |
|
817,239 |
|
|
5,810 |
|
|
0.71 |
|
Industrial |
|
742,844 |
|
|
6,711 |
|
|
0.90 |
|
Retail |
|
863,804 |
|
|
5,963 |
|
|
0.69 |
|
Multi-family |
|
765,933 |
|
|
8,082 |
|
|
1.06 |
|
Mixed use
and other |
|
1,835,745 |
|
|
14,302 |
|
|
0.78 |
|
Home
equity(1) |
|
639,399 |
|
|
12,194 |
|
|
1.91 |
|
Residential real
estate(1) |
|
678,978 |
|
|
5,461 |
|
|
0.80 |
|
Total core loan portfolio |
|
$ |
12,004,485 |
|
|
$ |
109,774 |
|
|
0.91 |
% |
Commercial: |
|
|
|
|
|
|
Franchise |
|
$ |
560,532 |
|
|
$ |
4,595 |
|
|
0.82 |
% |
Mortgage
warehouse lines of credit |
|
154,180 |
|
|
1,178 |
|
|
0.76 |
|
Community
Advantage - homeowner associations |
|
145,233 |
|
|
363 |
|
|
0.25 |
|
Aircraft |
|
3,250 |
|
|
17 |
|
|
0.52 |
|
Purchased
non-covered commercial loans (2) |
|
312,270 |
|
|
741 |
|
|
0.24 |
|
Commercial real
estate: |
|
|
|
|
|
|
Purchased
non-covered commercial real estate (2) |
|
481,598 |
|
|
202 |
|
|
0.04 |
|
Purchased non-covered
home equity (2) |
|
68,859 |
|
|
9 |
|
|
0.01 |
|
Purchased non-covered
residential real estate (2) |
|
41,630 |
|
|
69 |
|
|
0.17 |
|
Premium finance
receivables |
|
|
|
|
|
|
U.S.
commercial insurance loans |
|
2,167,524 |
|
|
5,389 |
|
|
0.25 |
|
Canada
commercial insurance loans (2) |
|
279,422 |
|
|
572 |
|
|
0.20 |
|
Life
insurance loans (1) |
|
3,352,857 |
|
|
1,598 |
|
|
0.05 |
|
Purchased
life insurance loans (2) |
|
240,706 |
|
|
— |
|
|
— |
|
Consumer and other
(1) |
|
115,710 |
|
|
1,310 |
|
|
1.13 |
|
Purchased non-covered
consumer and other (2) |
|
2,802 |
|
|
2 |
|
|
0.07 |
|
Total consumer, niche and purchased loan
portfolio |
|
$ |
7,926,573 |
|
|
$ |
16,045 |
|
|
0.20 |
% |
Total loans, net of unearned income, excluding covered
loans |
|
$ |
19,931,058 |
|
|
$ |
125,819 |
|
|
0.63 |
% |
Non-accretable credit
discounts on purchased loans reported in accordance with ASC
310-30, excluding covered loans |
|
|
|
$ |
8,315 |
|
|
|
Total allowance for loan losses and non-accretable credit
discounts on purchased loans, excluding covered loans |
|
|
|
$ |
134,134 |
|
|
0.67 |
% |
(1) Excludes purchased loans reported in
accordance with ASC 310-20 and ASC 310-30.
(2) Purchased loans represent loans reported in
accordance with ASC 310-20 and ASC 310-30.
|
|
As of December 31, 2016 |
|
|
Recorded |
|
Calculated |
|
As a percentage
of its own respective |
(Dollars in thousands) |
|
Investment |
|
Allowance |
|
category’s balance |
Commercial:(1) |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
3,234,629 |
|
|
$ |
27,112 |
|
|
0.84 |
% |
Asset-based lending |
|
867,697 |
|
|
6,859 |
|
|
0.79 |
|
Tax
exempt |
|
327,694 |
|
|
2,299 |
|
|
0.70 |
|
Leases |
|
294,124 |
|
|
858 |
|
|
0.29 |
|
Commercial real
estate:(1) |
|
|
|
|
|
|
Residential construction |
|
46,235 |
|
|
1,045 |
|
|
2.26 |
|
Commercial construction |
|
563,001 |
|
|
6,259 |
|
|
1.11 |
|
Land |
|
99,194 |
|
|
3,677 |
|
|
3.71 |
|
Office |
|
808,322 |
|
|
5,757 |
|
|
0.71 |
|
Industrial |
|
716,480 |
|
|
6,643 |
|
|
0.93 |
|
Retail |
|
855,787 |
|
|
5,928 |
|
|
0.69 |
|
Multi-family |
|
766,146 |
|
|
8,052 |
|
|
1.05 |
|
Mixed use
and other |
|
1,815,573 |
|
|
13,867 |
|
|
0.76 |
|
Home
equity(1) |
|
649,129 |
|
|
11,767 |
|
|
1.81 |
|
Residential real
estate(1) |
|
658,487 |
|
|
5,634 |
|
|
0.86 |
|
Total core loan portfolio |
|
$ |
11,702,498 |
|
|
$ |
105,757 |
|
|
0.90 |
% |
Commercial: |
|
|
|
|
|
|
Franchise |
|
$ |
565,588 |
|
|
$ |
4,744 |
|
|
0.84 |
% |
Mortgage
warehouse lines of credit |
|
204,225 |
|
|
1,548 |
|
|
0.76 |
|
Community
Advantage - homeowner associations |
|
145,717 |
|
|
365 |
|
|
0.25 |
|
Aircraft |
|
3,356 |
|
|
42 |
|
|
1.25 |
|
Purchased
non-covered commercial loans (2) |
|
362,392 |
|
|
666 |
|
|
0.18 |
|
Commercial real
estate: |
|
|
|
|
|
|
Purchased
non-covered commercial real estate (2) |
|
525,349 |
|
|
194 |
|
|
0.04 |
|
Purchased non-covered
home equity (2) |
|
76,664 |
|
|
7 |
|
|
0.01 |
|
Purchased non-covered
residential real estate (2) |
|
46,734 |
|
|
80 |
|
|
0.17 |
|
Premium finance
receivables |
|
|
|
|
|
|
U.S.
commercial insurance loans |
|
2,170,844 |
|
|
5,521 |
|
|
0.25 |
|
Canada
commercial insurance loans (2) |
|
307,737 |
|
|
604 |
|
|
0.20 |
|
Life
insurance loans (1) |
|
3,220,370 |
|
|
1,500 |
|
|
0.05 |
|
Purchased
life insurance loans (2) |
|
249,657 |
|
|
— |
|
|
— |
|
Consumer and other
(1) |
|
119,073 |
|
|
1,261 |
|
|
1.06 |
|
Purchased non-covered
consumer and other (2) |
|
2,968 |
|
|
2 |
|
|
0.07 |
|
Total consumer, niche and purchased loan
portfolio |
|
$ |
8,000,674 |
|
|
$ |
16,534 |
|
|
0.21 |
% |
Total loans, net of unearned income, excluding covered
loans |
|
$ |
19,703,172 |
|
|
$ |
122,291 |
|
|
0.62 |
% |
Non-accretable credit
discounts on purchased loans reported in accordance with ASC
310-30, excluding covered loans |
|
|
|
$ |
12,324 |
|
|
|
Total allowance for loan losses and non-accretable credit
discounts on purchased loans, excluding covered loans |
|
|
|
$ |
134,615 |
|
|
0.68 |
% |
(1) Excludes purchased loans reported in
accordance with ASC 310-20 and ASC 310-30.
(2) Purchased loans represent loans reported in
accordance with ASC 310-20 and ASC 310-30.
As part of the regular quarterly review
performed by management to determine if the Company’s allowance for
loan losses is appropriate, an analysis is prepared on the loan
portfolio based upon a breakout of core loans and consumer, niche
and purchased loans. A summary of the allowance for loan losses
calculated for the loan components in both the core loan portfolio
and the consumer, niche and purchased loan portfolio was shown on
the preceding tables as of March 31, 2017 and
December 31, 2016.
The increase in the allowance for loan losses to
core loans in the first quarter of 2017 compared to the fourth
quarter of 2016 was primarily attributable to higher ASC 310
reserves (specific reserves) on the core portfolio as of March 31,
2017.
Purchased loans acquired in a business
combination are recorded at estimated fair value on their purchase
date. In accordance with accounting guidance, credit deterioration
on purchased loans is recorded as a credit discount at the time of
purchase instead of as an increase to the allowance for loan
losses. For analysis purposes, the Company has combined the
non-accretable credit discounts recorded on purchased loans with
the total allowance for loan losses in the previous tables to
present the total credit reserves available on its loan portfolio.
The total allowance for loan losses and non-accretable credit
discounts on purchased loans was 0.67% of the total loan portfolio
as of March 31, 2017 and 0.68% of the total loan portfolio as
of December 31, 2016.
The tables below show the aging of the Company’s
loan portfolio at March 31, 2017 and December 31,
2016:
|
|
|
|
90+ days |
|
60-89 |
|
30-59 |
|
|
|
|
As of March 31,
2017 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
(1) |
|
$ |
14,307 |
|
|
$ |
1,468 |
|
|
$ |
19 |
|
|
$ |
39,440 |
|
|
$ |
6,026,255 |
|
|
$ |
6,081,489 |
|
Commercial real estate
(1) |
|
20,809 |
|
|
12,559 |
|
|
5,426 |
|
|
56,712 |
|
|
6,166,176 |
|
|
6,261,682 |
|
Home equity |
|
11,722 |
|
|
— |
|
|
430 |
|
|
4,884 |
|
|
691,222 |
|
|
708,258 |
|
Residential real estate
(1) |
|
11,943 |
|
|
900 |
|
|
3,410 |
|
|
5,262 |
|
|
699,093 |
|
|
720,608 |
|
Premium finance
receivables - commercial |
|
12,629 |
|
|
4,991 |
|
|
6,383 |
|
|
23,775 |
|
|
2,399,168 |
|
|
2,446,946 |
|
Premium finance
receivables - life insurance (1) |
|
— |
|
|
2,024 |
|
|
2,535 |
|
|
32,208 |
|
|
3,556,796 |
|
|
3,593,563 |
|
Consumer and other
(1) |
|
350 |
|
|
167 |
|
|
323 |
|
|
543 |
|
|
117,129 |
|
|
118,512 |
|
Total
loans, net of unearned income, excluding covered loans |
|
$ |
71,760 |
|
|
$ |
22,109 |
|
|
$ |
18,526 |
|
|
$ |
162,824 |
|
|
$ |
19,655,839 |
|
|
$ |
19,931,058 |
|
Covered loans |
|
1,592 |
|
|
2,808 |
|
|
268 |
|
|
1,570 |
|
|
46,121 |
|
|
52,359 |
|
Total
loans, net of unearned income |
|
$ |
73,352 |
|
|
$ |
24,917 |
|
|
$ |
18,794 |
|
|
$ |
164,394 |
|
|
$ |
19,701,960 |
|
|
$ |
19,983,417 |
|
As of March 31,
2017
|
|
Nonaccrual |
|
90+ days
and still
accruing |
|
60-89
days past
due |
|
30-59
days past
due |
|
Current |
|
Total Loans |
Aging as a % of Loan
Balance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
(1) |
|
0.2 |
% |
|
— |
% |
|
— |
% |
|
0.6 |
% |
|
99.2 |
% |
|
100.0 |
% |
Commercial real estate
(1) |
|
0.3 |
|
|
0.2 |
|
|
0.1 |
|
|
0.9 |
|
|
98.5 |
|
|
100.0 |
|
Home equity |
|
1.7 |
|
|
— |
|
|
0.1 |
|
|
0.7 |
|
|
97.5 |
|
|
100.0 |
|
Residential real estate
(1) |
|
1.7 |
|
|
0.1 |
|
|
0.5 |
|
|
0.7 |
|
|
97.0 |
|
|
100.0 |
|
Premium finance
receivables - commercial |
|
0.5 |
|
|
0.2 |
|
|
0.3 |
|
|
1.0 |
|
|
98.0 |
|
|
100.0 |
|
Premium finance
receivables - life insurance (1) |
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
0.9 |
|
|
98.9 |
|
|
100.0 |
|
Consumer and other
(1) |
|
0.3 |
|
|
0.1 |
|
|
0.3 |
|
|
0.5 |
|
|
98.8 |
|
|
100.0 |
|
Total
loans, net of unearned income, excluding covered loans |
|
0.4 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.8 |
% |
|
98.6 |
% |
|
100.0 |
% |
Covered loans |
|
3.0 |
|
|
5.4 |
|
|
0.5 |
|
|
3.0 |
|
|
88.1 |
|
|
100.0 |
|
Total
loans, net of unearned income |
|
0.4 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.8 |
% |
|
98.6 |
% |
|
100.0 |
% |
(1) Including PCI loans. PCI loans represent loans acquired
with evidence of credit quality deterioration since origination, in
accordance with ASC 310-30. Loan agings are based upon
contractually required payments.
|
|
|
|
90+ days |
|
60-89 |
|
30-59 |
|
|
|
|
As of December
31, 2016 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
(1) |
|
$ |
15,875 |
|
|
$ |
1,863 |
|
|
$ |
2,576 |
|
|
$ |
17,640 |
|
|
$ |
5,967,468 |
|
|
$ |
6,005,422 |
|
Commercial real estate
(1) |
|
21,924 |
|
|
16,188 |
|
|
15,253 |
|
|
31,723 |
|
|
6,110,999 |
|
|
6,196,087 |
|
Home equity |
|
9,761 |
|
|
— |
|
|
1,630 |
|
|
6,515 |
|
|
707,887 |
|
|
725,793 |
|
Residential real estate
(1) |
|
12,749 |
|
|
1,309 |
|
|
936 |
|
|
8,271 |
|
|
681,956 |
|
|
705,221 |
|
Premium finance
receivables - commercial |
|
14,709 |
|
|
7,962 |
|
|
5,646 |
|
|
14,580 |
|
|
2,435,684 |
|
|
2,478,581 |
|
Premium finance
receivables - life insurance (1) |
|
— |
|
|
3,717 |
|
|
17,514 |
|
|
16,204 |
|
|
3,432,592 |
|
|
3,470,027 |
|
Consumer and other
(1) |
|
439 |
|
|
207 |
|
|
100 |
|
|
887 |
|
|
120,408 |
|
|
122,041 |
|
Total
loans, net of unearned income, excluding covered loans |
|
$ |
75,457 |
|
|
$ |
31,246 |
|
|
$ |
43,655 |
|
|
$ |
95,820 |
|
|
$ |
19,456,994 |
|
|
$ |
19,703,172 |
|
Covered loans |
|
2,121 |
|
|
2,492 |
|
|
225 |
|
|
1,553 |
|
|
51,754 |
|
|
58,145 |
|
Total
loans, net of unearned income |
|
$ |
77,578 |
|
|
$ |
33,738 |
|
|
$ |
43,880 |
|
|
$ |
97,373 |
|
|
$ |
19,508,748 |
|
|
$ |
19,761,317 |
|
As of December
31, 2016
|
|
Nonaccrual |
|
90+ days
and still
accruing |
|
60-89
days past
due |
|
30-59
days past
due |
|
Current |
|
Total Loans |
Aging as a % of Loan
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
(1) |
|
0.3 |
% |
|
— |
% |
|
— |
% |
|
0.3 |
% |
|
99.4 |
% |
|
100.0 |
% |
Commercial real estate
(1) |
|
0.4 |
|
|
0.3 |
|
|
0.2 |
|
|
0.5 |
|
|
98.6 |
|
|
100.0 |
|
Home equity |
|
1.3 |
|
|
— |
|
|
0.2 |
|
|
0.9 |
|
|
97.6 |
|
|
100.0 |
|
Residential real estate
(1) |
|
1.8 |
|
|
0.2 |
|
|
0.1 |
|
|
1.2 |
|
|
96.7 |
|
|
100.0 |
|
Premium finance
receivables - commercial |
|
0.6 |
|
|
0.3 |
|
|
0.2 |
|
|
0.6 |
|
|
98.3 |
|
|
100.0 |
|
Premium finance
receivables - life insurance (1) |
|
— |
|
|
0.1 |
|
|
0.5 |
|
|
0.5 |
|
|
98.9 |
|
|
100.0 |
|
Consumer and other
(1) |
|
0.4 |
|
|
0.2 |
|
|
0.1 |
|
|
0.7 |
|
|
98.6 |
|
|
100.0 |
|
Total
loans, net of unearned income, excluding covered loans |
|
0.4 |
% |
|
0.2 |
% |
|
0.2 |
% |
|
0.5 |
% |
|
98.7 |
% |
|
100.0 |
% |
Covered loans |
|
3.6 |
|
|
4.3 |
|
|
0.4 |
|
|
2.7 |
|
|
89.0 |
|
|
100.0 |
|
Total
loans, net of unearned income |
|
0.4 |
% |
|
0.2 |
% |
|
0.2 |
% |
|
0.5 |
% |
|
98.7 |
% |
|
100.0 |
% |
(1) Including PCI loans. PCI loans represent loans acquired
with evidence of credit quality deterioration since origination, in
accordance with ASC 310-30. Loan agings are based upon
contractually required payments.
As of March 31, 2017, $18.5 million of all
loans, excluding covered loans, or 0.1%, were 60 to 89 days past
due and $162.8 million, or 0.8%, were 30 to 59 days (or one
payment) past due. As of December 31, 2016, $43.7 million of
all loans, excluding covered loans, or 0.2%, were 60 to 89 days
past due and $95.8 million, or 0.5%, were 30 to 59 days (or one
payment) past due. The majority of the commercial and commercial
real estate loans shown as 60 to 89 days and 30 to 59 days past due
are included on the Company’s internal problem loan reporting
system. Loans on this system are closely monitored by management on
a monthly basis.
The Company’s home equity and residential loan
portfolios continue to exhibit low delinquency ratios. Home equity
loans at March 31, 2017 that are current with regard to the
contractual terms of the loan agreement represent 97.5% of the
total home equity portfolio. Residential real estate loans at
March 31, 2017 that are current with regards to the
contractual terms of the loan agreements comprise 97.0% of total
residential real estate loans outstanding.
Non-performing Assets, excluding
covered assets
The following table sets forth Wintrust’s
non-performing assets and troubled debt restructurings ("TDRs")
performing under the contractual terms of the loan agreement,
excluding covered assets and non-covered PCI loans, at the dates
indicated.
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
2017 |
|
2016 |
|
2016 |
Loans past due
greater than 90 days and still
accruing(1): |
|
|
|
|
|
|
Commercial |
|
$ |
100 |
|
|
$ |
174 |
|
|
$ |
338 |
|
Commercial real estate |
|
— |
|
|
— |
|
|
1,260 |
|
Home
equity |
|
— |
|
|
— |
|
|
— |
|
Residential real estate |
|
— |
|
|
— |
|
|
— |
|
Premium
finance receivables - commercial |
|
4,991 |
|
|
7,962 |
|
|
9,548 |
|
Premium
finance receivables - life insurance |
|
2,024 |
|
|
3,717 |
|
|
1,641 |
|
Consumer
and other |
|
104 |
|
|
144 |
|
|
180 |
|
Total
loans past due greater than 90 days and still accruing |
|
7,219 |
|
|
11,997 |
|
|
12,967 |
|
Non-accrual
loans (2): |
|
|
|
|
|
|
Commercial |
|
14,307 |
|
|
15,875 |
|
|
12,373 |
|
Commercial real estate |
|
20,809 |
|
|
21,924 |
|
|
26,996 |
|
Home
equity |
|
11,722 |
|
|
9,761 |
|
|
9,365 |
|
Residential real estate |
|
11,943 |
|
|
12,749 |
|
|
11,964 |
|
Premium
finance receivables - commercial |
|
12,629 |
|
|
14,709 |
|
|
15,350 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
350 |
|
|
439 |
|
|
484 |
|
Total
non-accrual loans |
|
71,760 |
|
|
75,457 |
|
|
76,532 |
|
Total
non-performing loans: |
|
|
|
|
|
|
Commercial |
|
14,407 |
|
|
16,049 |
|
|
12,711 |
|
Commercial real estate |
|
20,809 |
|
|
21,924 |
|
|
28,256 |
|
Home
equity |
|
11,722 |
|
|
9,761 |
|
|
9,365 |
|
Residential real estate |
|
11,943 |
|
|
12,749 |
|
|
11,964 |
|
Premium
finance receivables - commercial |
|
17,620 |
|
|
22,671 |
|
|
24,898 |
|
Premium
finance receivables - life insurance |
|
2,024 |
|
|
3,717 |
|
|
1,641 |
|
Consumer
and other |
|
454 |
|
|
583 |
|
|
664 |
|
Total
non-performing loans |
|
$ |
78,979 |
|
|
$ |
87,454 |
|
|
$ |
89,499 |
|
Other
real estate owned |
|
17,090 |
|
|
17,699 |
|
|
24,022 |
|
Other
real estate owned - from acquisitions |
|
22,774 |
|
|
22,583 |
|
|
16,980 |
|
Other
repossessed assets |
|
544 |
|
|
581 |
|
|
171 |
|
Total
non-performing assets |
|
$ |
119,387 |
|
|
$ |
128,317 |
|
|
$ |
130,672 |
|
TDRs
performing under the contractual terms of the loan agreement |
|
$ |
28,392 |
|
|
$ |
29,911 |
|
|
$ |
34,949 |
|
Total
non-performing loans by category as a percent of its own
respective category’s period-end balance: |
|
|
|
|
|
|
Commercial |
|
0.24 |
% |
|
0.27 |
% |
|
0.26 |
% |
Commercial real estate |
|
0.33 |
|
|
0.35 |
|
|
0.49 |
|
Home
equity |
|
1.66 |
|
|
1.34 |
|
|
1.21 |
|
Residential real estate |
|
1.66 |
|
|
1.81 |
|
|
1.91 |
|
Premium
finance receivables - commercial |
|
0.72 |
|
|
0.91 |
|
|
1.07 |
|
Premium
finance receivables - life insurance |
|
0.06 |
|
|
0.11 |
|
|
0.06 |
|
Consumer
and other |
|
0.38 |
|
|
0.48 |
|
|
0.55 |
|
Total
loans, net of unearned income |
|
0.40 |
% |
|
0.44 |
% |
|
0.51 |
% |
Total
non-performing assets as a percentage of total
assets |
|
0.46 |
% |
|
0.50 |
% |
|
0.56 |
% |
Allowance for
loan losses as a percentage of total non-performing
loans |
|
159.31 |
% |
|
139.83 |
% |
|
123.10 |
% |
(1) As of the dates shown, no TDRs were past
due greater than 90 days and still accruing interest.
(2) Non-accrual loans included
TDRs totaling $11.3 million, $11.8 million and $17.6 million as of
March 31, 2017, December 31, 2016 and March 31, 2016,
respectively.
The ratio of non-performing assets to total
assets was 0.46% as of March 31, 2017, compared to 0.50% at
December 31, 2016, and 0.56% at March 31, 2016.
Non-performing assets, excluding covered assets and non-covered PCI
loans, totaled $119.4 million at March 31, 2017, compared to
$128.3 million at December 31, 2016 and $130.7 million at
March 31, 2016. Non-performing loans, excluding covered loans
and non-covered PCI loans, totaled $79.0 million, or 0.40% of total
loans, at March 31, 2017 compared to $87.5 million, or 0.44%
of total loans, at December 31, 2016 and $89.5 million, or
0.51% of total loans, at March 31, 2016. The decrease in
non-performing loans, excluding covered loans and non-covered PCI
loans, compared to December 31, 2016 is primarily the result
of a $5.1 million decrease in the commercial premium finance
receivable portfolio, a $1.7 million decrease in the life premium
finance receivable portfolio and a $1.6 million decrease in the
commercial portfolio, partially offset by a $2.0 million
increase in the home equity portfolio. OREO, excluding covered
OREO, of $39.9 million at March 31, 2017 decreased $418,000
compared to $40.3 million at December 31, 2016 and decreased
$1.1 million compared to $41.0 million at March 31, 2016.
Management is pursuing the resolution of all
credits in this category. At this time, management believes
reserves are appropriate to absorb inherent losses that are
expected upon the ultimate resolution of these credits.
Nonperforming Loans Rollforward
The table below presents a summary of the
changes in the balance of non-performing loans, excluding covered
loans, for the periods presented:
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
2017 |
|
2016 |
|
2016 |
Balance at beginning of
period |
|
$ |
87,454 |
|
|
$ |
83,128 |
|
|
$ |
84,057 |
|
Additions, net |
|
8,609 |
|
|
10,969 |
|
|
12,166 |
|
Return to
performing status |
|
(1,592 |
) |
|
(150 |
) |
|
(2,006 |
) |
Payments
received |
|
(5,614 |
) |
|
(6,623 |
) |
|
(3,308 |
) |
Transfer
to OREO and other repossessed assets |
|
(1,661 |
) |
|
(878 |
) |
|
(2,080 |
) |
Charge-offs |
|
(1,280 |
) |
|
(3,494 |
) |
|
(533 |
) |
Net
change for niche loans (1) |
|
(6,937 |
) |
|
4,502 |
|
|
1,203 |
|
Balance at end
of period |
|
$ |
78,979 |
|
|
$ |
87,454 |
|
|
$ |
89,499 |
|
(1) This includes activity for premium finance
receivables and indirect consumer loans.
TDRs
The table below presents a summary of TDRs as of
the respective date, presented by loan category and accrual
status:
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
2017 |
|
2016 |
|
2016 |
Accruing
TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
4,607 |
|
|
$ |
4,643 |
|
|
$ |
5,143 |
|
Commercial real estate |
|
18,923 |
|
|
19,993 |
|
|
25,548 |
|
Residential real estate and other |
|
4,862 |
|
|
5,275 |
|
|
4,258 |
|
Total
accrual |
|
$ |
28,392 |
|
|
$ |
29,911 |
|
|
$ |
34,949 |
|
Non-accrual
TDRs: (1) |
|
|
|
|
|
|
Commercial |
|
$ |
1,424 |
|
|
$ |
1,487 |
|
|
$ |
82 |
|
Commercial real estate |
|
7,338 |
|
|
8,153 |
|
|
14,340 |
|
Residential real estate and other |
|
2,515 |
|
|
2,157 |
|
|
3,184 |
|
Total
non-accrual |
|
$ |
11,277 |
|
|
$ |
11,797 |
|
|
$ |
17,606 |
|
Total
TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
6,031 |
|
|
$ |
6,130 |
|
|
$ |
5,225 |
|
Commercial real estate |
|
26,261 |
|
|
28,146 |
|
|
39,888 |
|
Residential real estate and other |
|
7,377 |
|
|
7,432 |
|
|
7,442 |
|
Total
TDRs |
|
$ |
39,669 |
|
|
$ |
41,708 |
|
|
$ |
52,555 |
|
Weighted-average contractual interest rate of
TDRs |
|
4.37 |
% |
|
4.33 |
% |
|
4.35 |
% |
(1) Included in total non-performing
loans.
Other Real Estate Owned
The table below presents a summary of other real
estate owned, excluding covered other real estate owned, as of
March 31, 2017, December 31, 2016 and March 31,
2016, and shows the activity for the respective period and the
balance for each property type:
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
2017 |
|
2016 |
|
2016 |
Balance at beginning of
period |
|
$ |
40,282 |
|
|
$ |
35,050 |
|
|
$ |
43,945 |
|
Disposals/resolved |
|
(2,644 |
) |
|
(5,850 |
) |
|
(6,766 |
) |
Transfers
in at fair value, less costs to sell |
|
2,268 |
|
|
667 |
|
|
3,291 |
|
Transfers
in from covered OREO subsequent to loss share expiration |
|
760 |
|
|
4,213 |
|
|
— |
|
Additions
from acquisition |
|
— |
|
|
7,230 |
|
|
1,064 |
|
Fair
value adjustments |
|
(802 |
) |
|
(1,028 |
) |
|
(532 |
) |
Balance at end of
period |
|
$ |
39,864 |
|
|
$ |
40,282 |
|
|
$ |
41,002 |
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
March 31, |
|
December 31, |
|
March 31, |
Balance by
Property Type |
|
2017 |
|
2016 |
|
2016 |
Residential real
estate |
|
$ |
7,597 |
|
|
$ |
8,063 |
|
|
$ |
11,006 |
|
Residential real estate
development |
|
1,240 |
|
|
1,349 |
|
|
2,320 |
|
Commercial real
estate |
|
31,027 |
|
|
30,870 |
|
|
27,676 |
|
Total |
|
$ |
39,864 |
|
|
$ |
40,282 |
|
|
$ |
41,002 |
|
Items Impacting Comparative
Financial Results:
Acquisitions
On February 14, 2017, the Company acquired
certain assets and assumed certain liabilities of the mortgage
banking business of AHM. AHM is located in Montana's Flathead
Valley and originated approximately $55 million of residential
mortgage loans in 2016.
On November 18, 2016, the Company completed its
acquisition of First Community Financial Corporation ("FCFC"). FCFC
was the parent company of First Community Bank. Through this
transaction, the Company acquired First Community Bank's two
banking locations in Elgin, Illinois, approximately $187 million in
assets and approximately $150 million in
deposits.
On August 19, 2016, the Company, through its wholly-owned
subsidiary Lake Forest Bank & Trust Company, completed its
acquisition of approximately $561 million in select performing
loans and related relationships from an affiliate of GE Capital
Franchise Finance. The loans are to franchise operators (primarily
quick service restaurant concepts) in the Midwest and in the
Western portion of the United States.
On March 31, 2016, the Company completed its
acquisition of Generations Bancorp. Inc. ("Generations").
Generations was the parent company of Foundations Bank
("Foundations"). Through this transaction, the Company
acquired Foundations' banking location in Pewaukee, Wisconsin,
approximately $134 million in assets and approximately $100 million
in deposits.
WINTRUST SUBSIDIARIES AND LOCATIONS
Wintrust is a financial holding company whose
common stock is traded on the Nasdaq Global Select Market (Nasdaq:
WTFC). Its 15 community bank subsidiaries are: Lake Forest
Bank & Trust Company, Hinsdale Bank & Trust
Company, Wintrust Bank in Chicago, Libertyville Bank &
Trust Company, Barrington Bank & Trust Company, N.A.,
Crystal Lake Bank & Trust Company, N.A., Northbrook
Bank & Trust Company, Schaumburg Bank & Trust
Company, N.A., Village Bank & Trust in Arlington Heights,
Beverly Bank & Trust Company, N.A. in Chicago, Wheaton
Bank & Trust Company, State Bank of The Lakes in Antioch,
Old Plank Trail Community Bank, N.A. in New Lenox, St. Charles
Bank & Trust Company and Town Bank in Hartland,
Wisconsin.
The banks also operate facilities in Illinois in
Algonquin, Aurora, Bloomingdale, Buffalo Grove, Cary, Clarendon
Hills, Crete, Deerfield, Des Plaines, Downers Grove, Elgin, Elk
Grove Village, Elmhurst, Evergreen Park, Frankfort, Geneva, Glen
Ellyn, Glencoe, Glenview, Gurnee, Grayslake, Hanover Park, Highland
Park, Highwood, Hoffman Estates, Island Lake, Itasca, Joliet, Lake
Bluff, Lake Villa, Lansing, Lemont, Lindenhurst, Lynwood, Markham,
McHenry, Mokena, Mount Prospect, Mundelein, Naperville, North
Chicago, Northfield, Norridge, Oak Lawn, Orland Park, Palatine,
Park Ridge, Prospect Heights, Ravinia, Riverside, Rogers Park,
Roselle, Round Lake Beach, Shorewood, Skokie, South Holland, Spring
Grove, Steger, Stone Park, Vernon Hills, Wauconda, Western Springs,
Willowbrook, Wilmette, Winnetka and Wood Dale and in Albany,
Burlington, Clinton, Darlington, Delafield, Delavan, Elm Grove,
Genoa City, Kenosha, Lake Geneva, Madison, Menomenee Falls,
Milwaukee, Monroe, Pewaukee, Sharon, Wales, Walworth and Wind Lake,
Wisconsin and Dyer, Indiana.
Additionally, the Company operates various non-bank business
units:
- First Insurance Funding Corporation, one of the largest
insurance premium finance companies operating in the United States,
serves commercial and life insurance loan customers throughout the
country.
- First Insurance Funding of Canada serves commercial insurance
loan customers throughout Canada.
- Tricom, Inc. of Milwaukee provides high-yielding, short-term
accounts receivable financing and value-added out-sourced
administrative services, such as data processing of payrolls,
billing and cash management services, to temporary staffing service
clients located throughout the United States.
- Wintrust Mortgage, a division of Barrington Bank &
Trust Company, engages primarily in the origination and purchase of
residential mortgages for sale into the secondary market through
origination offices located throughout the United States. Loans are
also originated nationwide through relationships with wholesale and
correspondent offices.
- Wayne Hummer Investments, LLC is a broker-dealer providing a
full range of private client and brokerage services to clients and
correspondent banks located primarily in the Midwest.
- Great Lakes Advisors LLC provides money management services and
advisory services to individual accounts.
- The Chicago Trust Company, a trust subsidiary, allows Wintrust
to service customers’ trust and investment needs at each banking
location.
- Wintrust Asset Finance which offers direct leasing
opportunities.
FORWARD-LOOKING STATEMENTS
This document contains forward-looking
statements within the meaning of federal securities laws.
Forward-looking information can be identified through the use of
words such as “intend,” “plan,” “project,” “expect,” “anticipate,”
“believe,” “estimate,” “contemplate,” “possible,” “point,” “will,”
“may,” “should,” “would” and “could.” Forward-looking statements
and information are not historical facts, are premised on many
factors and assumptions, and represent only management’s
expectations, estimates and projections regarding future events.
Similarly, these statements are not guarantees of future
performance and involve certain risks and uncertainties that are
difficult to predict, which may include, but are not limited to,
those listed below and the Risk Factors discussed under
Item 1A of the Company’s 2016 Annual Report on Form 10-K and
in any of the Company’s subsequent SEC filings. The Company intends
such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995, and is including this
statement for purposes of invoking these safe harbor provisions.
Such forward-looking statements may be deemed to include, among
other things, statements relating to the Company’s future financial
performance, the performance of its loan portfolio, the expected
amount of future credit reserves and charge-offs, delinquency
trends, growth plans, regulatory developments, securities that the
Company may offer from time to time, and management’s long-term
performance goals, as well as statements relating to the
anticipated effects on financial condition and results of
operations from expected developments or events, the Company’s
business and growth strategies, including future acquisitions of
banks, specialty finance or wealth management businesses, internal
growth and plans to form additional de novo banks or branch
offices. Actual results could differ materially from those
addressed in the forward-looking statements as a result of numerous
factors, including the following:
- negative economic conditions that adversely affect the economy,
housing prices, the job market and other factors that may affect
the Company’s liquidity and the performance of its loan portfolios,
particularly in the markets in which it operates;
- the extent of defaults and losses on the Company’s loan
portfolio, which may require further increases in its allowance for
credit losses;
- estimates of fair value of certain of the Company’s assets and
liabilities, which could change in value significantly from period
to period;
- the financial success and economic viability of the borrowers
of our commercial loans;
- commercial real estate market conditions in the Chicago
metropolitan area and southern Wisconsin;
- the extent of commercial and consumer delinquencies and
declines in real estate values, which may require further increases
in the Company’s allowance for loan and lease losses;
- inaccurate assumptions in our analytical and forecasting models
used to calculate our projected revenue and losses, and manage our
loan portfolio;
- changes in the level and volatility of interest rates, the
capital markets and other market indices that may affect, among
other things, the Company’s liquidity and the value of its assets
and liabilities;
- competitive pressures in the financial services business which
may affect the pricing of the Company’s loan and deposit products
as well as its services (including wealth management services),
which may result in loss of market share and reduced income from
deposits, loans, advisory fees and income from other products;
- failure to identify and complete favorable acquisitions in the
future or unexpected difficulties or developments related to the
integration of the Company’s recent or future acquisitions;
- unexpected difficulties and losses related to FDIC-assisted
acquisitions, including those resulting from our loss-sharing
arrangements with the FDIC;
- any negative perception of the Company’s reputation or
financial strength;
- ability of the Company to raise additional capital on
acceptable terms when needed;
- disruption in capital markets, which may lower fair values for
the Company’s investment portfolio;
- failure or circumvention of our controls and procedures;
- ability of the Company to use technology to provide products
and services that will satisfy customer demands and create
efficiencies in operations and to manage risks associated
therewith;
- adverse effects on our information technology systems resulting
from failures, human error or cyberattack, any of which could
result in an information or security breach, the disclosure or
misuse of confidential or proprietary information, significant
legal and financial losses and reputational harm;
- adverse effects of failures by our vendors to provide agreed
upon services in the manner and at the cost agreed, particularly
our information technology vendors;
- increased costs as a result of protecting our customers from
the impact of stolen debit card information;
- accuracy and completeness of information the Company receives
about customers and counterparties to make credit decisions;
- ability of the Company to attract and retain senior management
experienced in the banking and financial services industries;
- environmental liability risk associated with lending
activities;
- the impact of any claims or legal actions to which the Company
is subject, including any effect on our reputation;
- losses incurred in connection with repurchases and
indemnification payments related to mortgages and increases in
reserves associated therewith;
- the loss of customers as a result of technological changes
allowing consumers to complete their financial transactions without
the use of a bank;
- the soundness of other financial institutions;
- the expenses and delayed returns inherent in opening new
branches and de novo banks;
- examinations and challenges by tax authorities;
- changes in accounting standards, rules and interpretations and
the impact on the Company’s financial statements;
- the ability of the Company to receive dividends from its
subsidiaries;
- anti-takeover provisions could negatively impact our
shareholders;
- a decrease in the Company’s regulatory capital ratios,
including as a result of further declines in the value of its loan
portfolios, or otherwise;
- legislative or regulatory changes, particularly changes in
regulation of financial services companies and/or the products and
services offered by financial services companies, including those
resulting from the Dodd-Frank Act;
- a lowering of our credit rating;
- changes in U.S. monetary policy;
- uncertainty regarding future legislative and regulatory
actions, which could be disruptive to our operations;
- restrictions upon our ability to market our products to
consumers and limitations on our ability to profitably operate our
mortgage business resulting from the Dodd-Frank Act;
- increased costs of compliance, heightened regulatory capital
requirements and other risks associated with changes in regulation
and the current regulatory environment, including the Dodd-Frank
Act;
- the impact of heightened capital requirements;
- increases in the Company’s FDIC insurance premiums, or the
collection of special assessments by the FDIC;
- non-compliance with the USA PATRIOT Act, Bank Secrecy Act or
other laws or regulations could result in fines and sanctions;
- delinquencies or fraud with respect to the Company’s premium
finance business;
- credit downgrades among commercial and life insurance providers
that could negatively affect the value of collateral securing the
Company’s premium finance loans;
- the Company’s ability to comply with covenants under its credit
facility; and
- fluctuations in the stock market, which may have an adverse
impact on the Company’s wealth management business and brokerage
operation.
Therefore, there can be no assurances that
future actual results will correspond to these forward-looking
statements. The reader is cautioned not to place undue reliance on
any forward-looking statement made by the Company. Any such
statement speaks only as of the date the statement was made or as
of such date that may be referenced within the statement. The
Company undertakes no obligation to update any forward-looking
statement to reflect the impact of circumstances or events after
the date of the press release. Persons are advised, however, to
consult further disclosures management makes on related subjects in
its reports filed with the Securities and Exchange Commission and
in its press releases.
CONFERENCE CALL, WEB CAST AND
REPLAY
The Company will hold a conference call at 2:30
p.m. (CT) Wednesday, April 19, 2017 regarding first quarter 2017
results. Individuals interested in listening should call
(877) 363-5049 and enter Conference ID #99783626. A
simultaneous audio-only web cast and replay of the conference call
may be accessed via the Company’s website at (http://www.wintrust.com),
Investor Relations, Investor News and Events,
Presentations & Conference Calls. The text of the first
quarter 2017 earnings press release will be available on the home
page of the Company’s website at (http://www.wintrust.com) and at
the Investor Relations, Investor News and Events, Press Releases
link on its website.
WINTRUST FINANCIAL
CORPORATION
Supplemental Financial
Information
5 Quarter Trends
WINTRUST FINANCIAL CORPORATION -
Supplemental Financial Information
Selected Financial Highlights - 5 Quarter
Trends
(Dollars in thousands, except per share data)
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
Selected
Financial Condition Data (at end of period): |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
25,778,893 |
|
|
$ |
25,668,553 |
|
|
$ |
25,321,759 |
|
|
$ |
24,420,616 |
|
|
$ |
23,488,168 |
|
Total loans, excluding
loans held-for-sale and covered loans |
|
19,931,058 |
|
|
19,703,172 |
|
|
19,101,261 |
|
|
18,174,655 |
|
|
17,446,413 |
|
Total deposits |
|
21,730,441 |
|
|
21,658,632 |
|
|
21,147,655 |
|
|
20,041,750 |
|
|
19,217,071 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Total shareholders’
equity |
|
2,764,983 |
|
|
2,695,617 |
|
|
2,674,474 |
|
|
2,623,595 |
|
|
2,418,442 |
|
Selected
Statements of Income Data: |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
192,580 |
|
|
190,778 |
|
|
184,636 |
|
|
175,270 |
|
|
171,509 |
|
Net revenue
(1) |
|
261,345 |
|
|
276,053 |
|
|
271,240 |
|
|
260,069 |
|
|
240,261 |
|
Net income |
|
58,378 |
|
|
54,608 |
|
|
53,115 |
|
|
50,041 |
|
|
49,111 |
|
Net income per common
share – Basic |
|
$ |
1.05 |
|
|
$ |
0.98 |
|
|
$ |
0.96 |
|
|
$ |
0.94 |
|
|
$ |
0.94 |
|
Net income per common
share – Diluted |
|
$ |
1.00 |
|
|
$ |
0.94 |
|
|
$ |
0.92 |
|
|
$ |
0.90 |
|
|
$ |
0.90 |
|
Selected
Financial Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
3.36 |
% |
|
3.21 |
% |
|
3.21 |
% |
|
3.24 |
% |
|
3.29 |
% |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
|
3.39 |
% |
|
3.23 |
% |
|
3.24 |
% |
|
3.27 |
% |
|
3.32 |
% |
Non-interest income to
average assets |
|
1.11 |
% |
|
1.32 |
% |
|
1.38 |
% |
|
1.44 |
% |
|
1.21 |
% |
Non-interest expense to
average assets |
|
2.70 |
% |
|
2.80 |
% |
|
2.82 |
% |
|
2.89 |
% |
|
2.70 |
% |
Net overhead ratio
(3) |
|
1.60 |
% |
|
1.48 |
% |
|
1.44 |
% |
|
1.46 |
% |
|
1.49 |
% |
Return on average
assets |
|
0.94 |
% |
|
0.85 |
% |
|
0.85 |
% |
|
0.85 |
% |
|
0.86 |
% |
Return on average
common equity |
|
8.93 |
% |
|
8.32 |
% |
|
8.20 |
% |
|
8.43 |
% |
|
8.55 |
% |
Return on average
tangible common equity (non-GAAP) (2) |
|
11.44 |
% |
|
10.68 |
% |
|
10.55 |
% |
|
11.12 |
% |
|
11.33 |
% |
Average total
assets |
|
$ |
25,207,348 |
|
|
$ |
25,611,060 |
|
|
$ |
24,879,252 |
|
|
$ |
23,754,755 |
|
|
$ |
22,902,913 |
|
Average total
shareholders’ equity |
|
2,739,050 |
|
|
2,689,876 |
|
|
2,651,684 |
|
|
2,465,732 |
|
|
2,389,770 |
|
Average loans to
average deposits ratio (excluding loans held-for-sale, excluding
covered loans) |
|
92.5 |
% |
|
89.6 |
% |
|
89.8 |
% |
|
92.4 |
% |
|
92.2 |
% |
Average loans to
average deposits ratio (excluding loans held-for-sale, including
covered loans) |
|
92.7 |
|
|
89.9 |
|
|
90.3 |
|
|
92.9 |
|
|
93.0 |
|
Common Share Data
at end of period: |
|
|
|
|
|
|
|
|
|
|
Market price per common
share |
|
$ |
69.12 |
|
|
$ |
72.57 |
|
|
$ |
55.57 |
|
|
$ |
51.00 |
|
|
$ |
44.34 |
|
Book value per common
share (2) |
|
$ |
47.88 |
|
|
$ |
47.12 |
|
|
$ |
46.86 |
|
|
$ |
45.96 |
|
|
$ |
44.67 |
|
Tangible common book
value per share (2) |
|
$ |
37.97 |
|
|
$ |
37.08 |
|
|
$ |
37.06 |
|
|
$ |
36.12 |
|
|
$ |
34.20 |
|
Common shares
outstanding |
|
52,503,663 |
|
|
51,880,540 |
|
|
51,714,683 |
|
|
51,619,155 |
|
|
48,518,998 |
|
Other Data at end
of period:(6) |
|
|
|
|
|
|
|
|
|
|
Leverage
Ratio(4) |
|
9.3 |
% |
|
8.9 |
% |
|
9.0 |
% |
|
9.2 |
% |
|
8.7 |
% |
Tier 1 Capital to
risk-weighted assets (4) |
|
9.9 |
% |
|
9.7 |
% |
|
9.8 |
% |
|
10.1 |
% |
|
9.6 |
% |
Common equity Tier 1
capital to risk-weighted assets (4) |
|
8.9 |
% |
|
8.6 |
% |
|
8.7 |
% |
|
8.9 |
% |
|
8.4 |
% |
Total capital to
risk-weighted assets (4) |
|
12.1 |
% |
|
11.9 |
% |
|
12.1 |
% |
|
12.4 |
% |
|
12.1 |
% |
Allowance for credit
losses (5) |
|
$ |
127,630 |
|
|
$ |
123,964 |
|
|
$ |
119,341 |
|
|
$ |
115,426 |
|
|
$ |
111,201 |
|
Non-performing
loans |
|
78,979 |
|
|
87,454 |
|
|
83,128 |
|
|
88,119 |
|
|
89,499 |
|
Allowance for credit
losses to total loans (5) |
|
0.64 |
% |
|
0.63 |
% |
|
0.62 |
% |
|
0.64 |
% |
|
0.64 |
% |
Non-performing loans to
total loans |
|
0.40 |
% |
|
0.44 |
% |
|
0.44 |
% |
|
0.48 |
% |
|
0.51 |
% |
Number of: |
|
|
|
|
|
|
|
|
|
|
Bank
subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
Banking
offices |
|
155 |
|
|
155 |
|
|
152 |
|
|
153 |
|
|
153 |
|
(1) Net revenue includes net interest income and
non-interest income.
(2) See “Supplemental Financial Measures/Ratios” for
additional information on this performance measure/ratio.
(3) The net overhead ratio is calculated by netting total
non-interest expense and total non-interest income, annualizing
this amount, and dividing by that period’s total average assets. A
lower ratio indicates a higher degree of efficiency.
(4) Capital ratios for current quarter-end are estimated. As
of January 1, 2015 capital ratios are calculated under the
requirements of Basel III.
(5) The allowance for credit losses includes both the
allowance for loan losses and the allowance for unfunded
lending-related commitments, but excluding the allowance for
covered loan losses.
(6) Asset quality ratios exclude covered loans.
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Consolidated Statements of Condition - 5 Quarter
Trends
|
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands) |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
214,102 |
|
|
$ |
267,194 |
|
|
$ |
242,825 |
|
|
$ |
267,551 |
|
|
$ |
208,480 |
|
Federal funds sold and
securities purchased under resale agreements |
|
3,046 |
|
|
2,851 |
|
|
4,122 |
|
|
4,024 |
|
|
3,820 |
|
Interest bearing
deposits with banks |
|
1,007,468 |
|
|
980,457 |
|
|
816,104 |
|
|
693,269 |
|
|
817,013 |
|
Available-for-sale
securities, at fair value |
|
1,803,733 |
|
|
1,724,667 |
|
|
1,650,096 |
|
|
637,663 |
|
|
770,983 |
|
Held-to-maturity
securities, at amortized cost |
|
667,764 |
|
|
635,705 |
|
|
932,767 |
|
|
992,211 |
|
|
911,715 |
|
Trading account
securities |
|
714 |
|
|
1,989 |
|
|
1,092 |
|
|
3,613 |
|
|
2,116 |
|
Federal Home Loan Bank
and Federal Reserve Bank stock |
|
78,904 |
|
|
133,494 |
|
|
129,630 |
|
|
121,319 |
|
|
113,222 |
|
Brokerage customer
receivables |
|
23,171 |
|
|
25,181 |
|
|
25,511 |
|
|
26,866 |
|
|
28,266 |
|
Mortgage loans
held-for-sale |
|
288,964 |
|
|
418,374 |
|
|
559,634 |
|
|
554,256 |
|
|
314,554 |
|
Loans, net of unearned
income, excluding covered loans |
|
19,931,058 |
|
|
19,703,172 |
|
|
19,101,261 |
|
|
18,174,655 |
|
|
17,446,413 |
|
Covered loans |
|
52,359 |
|
|
58,145 |
|
|
95,940 |
|
|
105,248 |
|
|
138,848 |
|
Total
loans |
|
19,983,417 |
|
|
19,761,317 |
|
|
19,197,201 |
|
|
18,279,903 |
|
|
17,585,261 |
|
Allowance
for loan losses |
|
(125,819 |
) |
|
(122,291 |
) |
|
(117,693 |
) |
|
(114,356 |
) |
|
(110,171 |
) |
Allowance
for covered loan losses |
|
(1,319 |
) |
|
(1,322 |
) |
|
(1,422 |
) |
|
(2,412 |
) |
|
(2,507 |
) |
Net
loans |
|
19,856,279 |
|
|
19,637,704 |
|
|
19,078,086 |
|
|
18,163,135 |
|
|
17,472,583 |
|
Premises and equipment,
net |
|
598,746 |
|
|
597,301 |
|
|
597,263 |
|
|
595,792 |
|
|
591,608 |
|
Lease investments,
net |
|
155,233 |
|
|
129,402 |
|
|
116,355 |
|
|
103,749 |
|
|
89,337 |
|
Accrued interest
receivable and other assets |
|
560,741 |
|
|
593,796 |
|
|
660,923 |
|
|
670,014 |
|
|
647,853 |
|
Trade date securities
receivable |
|
— |
|
|
— |
|
|
677 |
|
|
1,079,238 |
|
|
1,008,613 |
|
Goodwill |
|
499,341 |
|
|
498,587 |
|
|
485,938 |
|
|
486,095 |
|
|
484,280 |
|
Other intangible
assets |
|
20,687 |
|
|
21,851 |
|
|
20,736 |
|
|
21,821 |
|
|
23,725 |
|
Total assets |
|
$ |
25,778,893 |
|
|
$ |
25,668,553 |
|
|
$ |
25,321,759 |
|
|
$ |
24,420,616 |
|
|
$ |
23,488,168 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,790,579 |
|
|
$ |
5,927,377 |
|
|
$ |
5,711,042 |
|
|
$ |
5,367,672 |
|
|
$ |
5,205,410 |
|
Interest
bearing |
|
15,939,862 |
|
|
15,731,255 |
|
|
15,436,613 |
|
|
14,674,078 |
|
|
14,011,661 |
|
Total
deposits |
|
21,730,441 |
|
|
21,658,632 |
|
|
21,147,655 |
|
|
20,041,750 |
|
|
19,217,071 |
|
Federal Home Loan Bank
advances |
|
227,585 |
|
|
153,831 |
|
|
419,632 |
|
|
588,055 |
|
|
799,482 |
|
Other borrowings |
|
238,787 |
|
|
262,486 |
|
|
241,366 |
|
|
252,611 |
|
|
253,126 |
|
Subordinated notes |
|
138,993 |
|
|
138,971 |
|
|
138,943 |
|
|
138,915 |
|
|
138,888 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Trade date securities
payable |
|
— |
|
|
— |
|
|
— |
|
|
40,000 |
|
|
— |
|
Accrued interest
payable and other liabilities |
|
424,538 |
|
|
505,450 |
|
|
446,123 |
|
|
482,124 |
|
|
407,593 |
|
Total
liabilities |
|
23,013,910 |
|
|
22,972,936 |
|
|
22,647,285 |
|
|
21,797,021 |
|
|
21,069,726 |
|
Shareholders’
Equity: |
|
|
|
|
|
|
|
|
|
|
Preferred
stock |
|
251,257 |
|
|
251,257 |
|
|
251,257 |
|
|
251,257 |
|
|
251,257 |
|
Common
stock |
|
52,605 |
|
|
51,978 |
|
|
51,811 |
|
|
51,708 |
|
|
48,608 |
|
Surplus |
|
1,381,886 |
|
|
1,365,781 |
|
|
1,356,759 |
|
|
1,350,751 |
|
|
1,194,750 |
|
Treasury
stock |
|
(4,884 |
) |
|
(4,589 |
) |
|
(4,522 |
) |
|
(4,145 |
) |
|
(4,145 |
) |
Retained
earnings |
|
1,143,943 |
|
|
1,096,518 |
|
|
1,051,748 |
|
|
1,008,464 |
|
|
967,882 |
|
Accumulated other comprehensive loss |
|
(59,824 |
) |
|
(65,328 |
) |
|
(32,579 |
) |
|
(34,440 |
) |
|
(39,910 |
) |
Total
shareholders’ equity |
|
2,764,983 |
|
|
2,695,617 |
|
|
2,674,474 |
|
|
2,623,595 |
|
|
2,418,442 |
|
Total liabilities and shareholders’ equity |
|
$ |
25,778,893 |
|
|
$ |
25,668,553 |
|
|
$ |
25,321,759 |
|
|
$ |
24,420,616 |
|
|
$ |
23,488,168 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Consolidated Statements of Income (Unaudited) - 5 Quarter
Trends
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands, except per share
data) |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
Interest
income |
|
|
|
|
|
|
|
|
|
|
Interest
and fees on loans |
|
$ |
199,314 |
|
|
$ |
199,155 |
|
|
$ |
190,189 |
|
|
$ |
178,530 |
|
|
$ |
173,127 |
|
Interest
bearing deposits with banks |
|
1,623 |
|
|
1,541 |
|
|
1,156 |
|
|
793 |
|
|
746 |
|
Federal
funds sold and securities purchased under resale agreements |
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
Investment securities |
|
13,573 |
|
|
12,954 |
|
|
15,496 |
|
|
16,398 |
|
|
17,190 |
|
Trading
account securities |
|
11 |
|
|
32 |
|
|
18 |
|
|
14 |
|
|
11 |
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
|
1,070 |
|
|
1,144 |
|
|
1,094 |
|
|
1,112 |
|
|
937 |
|
Brokerage
customer receivables |
|
167 |
|
|
186 |
|
|
195 |
|
|
216 |
|
|
219 |
|
Total
interest income |
|
215,759 |
|
|
215,013 |
|
|
208,149 |
|
|
197,064 |
|
|
192,231 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
Interest
on deposits |
|
16,270 |
|
|
16,413 |
|
|
15,621 |
|
|
13,594 |
|
|
12,781 |
|
Interest
on Federal Home Loan Bank advances |
|
1,590 |
|
|
2,439 |
|
|
2,577 |
|
|
2,984 |
|
|
2,886 |
|
Interest
on other borrowings |
|
1,139 |
|
|
1,074 |
|
|
1,137 |
|
|
1,086 |
|
|
1,058 |
|
Interest
on subordinated notes |
|
1,772 |
|
|
1,779 |
|
|
1,778 |
|
|
1,777 |
|
|
1,777 |
|
Interest
on junior subordinated debentures |
|
2,408 |
|
|
2,530 |
|
|
2,400 |
|
|
2,353 |
|
|
2,220 |
|
Total
interest expense |
|
23,179 |
|
|
24,235 |
|
|
23,513 |
|
|
21,794 |
|
|
20,722 |
|
Net interest
income |
|
192,580 |
|
|
190,778 |
|
|
184,636 |
|
|
175,270 |
|
|
171,509 |
|
Provision for credit
losses |
|
5,209 |
|
|
7,350 |
|
|
9,571 |
|
|
9,129 |
|
|
8,034 |
|
Net interest income
after provision for credit losses |
|
187,371 |
|
|
183,428 |
|
|
175,065 |
|
|
166,141 |
|
|
163,475 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
|
Wealth
management |
|
20,148 |
|
|
19,512 |
|
|
19,334 |
|
|
18,852 |
|
|
18,320 |
|
Mortgage
banking |
|
21,938 |
|
|
35,489 |
|
|
34,712 |
|
|
36,807 |
|
|
21,735 |
|
Service
charges on deposit accounts |
|
8,265 |
|
|
8,054 |
|
|
8,024 |
|
|
7,726 |
|
|
7,406 |
|
(Losses)
gains on investment securities, net |
|
(55 |
) |
|
1,575 |
|
|
3,305 |
|
|
1,440 |
|
|
1,325 |
|
Fees from
covered call options |
|
759 |
|
|
1,476 |
|
|
3,633 |
|
|
4,649 |
|
|
1,712 |
|
Trading
(losses) gains, net |
|
(320 |
) |
|
1,007 |
|
|
(432 |
) |
|
(316 |
) |
|
(168 |
) |
Operating
lease income, net |
|
5,782 |
|
|
5,171 |
|
|
4,459 |
|
|
4,005 |
|
|
2,806 |
|
Other |
|
12,248 |
|
|
12,991 |
|
|
13,569 |
|
|
11,636 |
|
|
15,616 |
|
Total
non-interest income |
|
68,765 |
|
|
85,275 |
|
|
86,604 |
|
|
84,799 |
|
|
68,752 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
99,316 |
|
|
104,735 |
|
|
103,718 |
|
|
100,894 |
|
|
95,811 |
|
Equipment |
|
9,002 |
|
|
9,532 |
|
|
9,449 |
|
|
9,307 |
|
|
8,767 |
|
Operating
lease equipment depreciation |
|
4,636 |
|
|
4,219 |
|
|
3,605 |
|
|
3,385 |
|
|
2,050 |
|
Occupancy, net |
|
13,101 |
|
|
14,254 |
|
|
12,767 |
|
|
11,943 |
|
|
11,948 |
|
Data
processing |
|
7,925 |
|
|
7,687 |
|
|
7,432 |
|
|
7,138 |
|
|
6,519 |
|
Advertising and marketing |
|
5,150 |
|
|
6,691 |
|
|
7,365 |
|
|
6,941 |
|
|
3,779 |
|
Professional fees |
|
4,660 |
|
|
5,425 |
|
|
5,508 |
|
|
5,419 |
|
|
4,059 |
|
Amortization of other intangible assets |
|
1,164 |
|
|
1,158 |
|
|
1,085 |
|
|
1,248 |
|
|
1,298 |
|
FDIC
insurance |
|
4,156 |
|
|
4,726 |
|
|
3,686 |
|
|
4,040 |
|
|
3,613 |
|
OREO
expense, net |
|
1,665 |
|
|
1,843 |
|
|
1,436 |
|
|
1,348 |
|
|
560 |
|
Other |
|
17,343 |
|
|
20,101 |
|
|
20,564 |
|
|
19,306 |
|
|
15,326 |
|
Total
non-interest expense |
|
168,118 |
|
|
180,371 |
|
|
176,615 |
|
|
170,969 |
|
|
153,730 |
|
Income before
taxes |
|
88,018 |
|
|
88,332 |
|
|
85,054 |
|
|
79,971 |
|
|
78,497 |
|
Income tax expense |
|
29,640 |
|
|
33,724 |
|
|
31,939 |
|
|
29,930 |
|
|
29,386 |
|
Net
income |
|
$ |
58,378 |
|
|
$ |
54,608 |
|
|
$ |
53,115 |
|
|
$ |
50,041 |
|
|
$ |
49,111 |
|
Preferred stock
dividends |
|
3,628 |
|
|
3,629 |
|
|
3,628 |
|
|
3,628 |
|
|
3,628 |
|
Net income
applicable to common shares |
|
$ |
54,750 |
|
|
$ |
50,979 |
|
|
$ |
49,487 |
|
|
$ |
46,413 |
|
|
$ |
45,483 |
|
Net income per
common share - Basic |
|
$ |
1.05 |
|
|
$ |
0.98 |
|
|
$ |
0.96 |
|
|
$ |
0.94 |
|
|
$ |
0.94 |
|
Net income per
common share - Diluted |
|
$ |
1.00 |
|
|
$ |
0.94 |
|
|
$ |
0.92 |
|
|
$ |
0.90 |
|
|
$ |
0.90 |
|
Cash dividends
declared per common share |
|
$ |
0.14 |
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
Weighted average common
shares outstanding |
|
52,267 |
|
|
51,812 |
|
|
51,679 |
|
|
49,140 |
|
|
48,448 |
|
Dilutive potential
common shares |
|
4,160 |
|
|
4,152 |
|
|
4,047 |
|
|
3,965 |
|
|
3,820 |
|
Average common shares
and dilutive common shares |
|
56,427 |
|
|
55,964 |
|
|
55,726 |
|
|
53,105 |
|
|
52,268 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Period End Loan Balances - 5 Quarter Trends
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in thousands) |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
6,081,489 |
|
|
$ |
6,005,422 |
|
|
$ |
5,951,544 |
|
|
$ |
5,144,533 |
|
|
$ |
4,890,246 |
|
Commercial real estate |
|
6,261,682 |
|
|
6,196,087 |
|
|
5,908,684 |
|
|
5,848,334 |
|
|
5,737,959 |
|
Home
equity |
|
708,258 |
|
|
725,793 |
|
|
742,868 |
|
|
760,904 |
|
|
774,342 |
|
Residential real estate |
|
720,608 |
|
|
705,221 |
|
|
663,598 |
|
|
653,664 |
|
|
626,043 |
|
Premium
finance receivables - commercial |
|
2,446,946 |
|
|
2,478,581 |
|
|
2,430,233 |
|
|
2,478,280 |
|
|
2,320,987 |
|
Premium
finance receivables - life insurance |
|
3,593,563 |
|
|
3,470,027 |
|
|
3,283,359 |
|
|
3,161,562 |
|
|
2,976,934 |
|
Consumer
and other |
|
118,512 |
|
|
122,041 |
|
|
120,975 |
|
|
127,378 |
|
|
119,902 |
|
Total
loans, net of unearned income, excluding covered loans |
|
$ |
19,931,058 |
|
|
$ |
19,703,172 |
|
|
$ |
19,101,261 |
|
|
$ |
18,174,655 |
|
|
$ |
17,446,413 |
|
Covered
loans |
|
52,359 |
|
|
58,145 |
|
|
95,940 |
|
|
105,248 |
|
|
138,848 |
|
Total
loans, net of unearned income |
|
$ |
19,983,417 |
|
|
$ |
19,761,317 |
|
|
$ |
19,197,201 |
|
|
$ |
18,279,903 |
|
|
$ |
17,585,261 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
30 |
% |
|
30 |
% |
|
31 |
% |
|
28 |
% |
|
28 |
% |
Commercial real estate |
|
31 |
|
|
31 |
|
|
31 |
|
|
31 |
|
|
32 |
|
Home
equity |
|
4 |
|
|
4 |
|
|
4 |
|
|
4 |
|
|
4 |
|
Residential real estate |
|
4 |
|
|
4 |
|
|
3 |
|
|
4 |
|
|
4 |
|
Premium
finance receivables - commercial |
|
12 |
|
|
12 |
|
|
13 |
|
|
14 |
|
|
13 |
|
Premium
finance receivables - life insurance |
|
18 |
|
|
18 |
|
|
17 |
|
|
17 |
|
|
17 |
|
Consumer
and other |
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
Total
loans, net of unearned income, excluding covered loans |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
99 |
% |
|
99 |
% |
Covered
loans |
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
1 |
|
Total
loans, net of unearned income |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Period End Deposits Balances - 5 Quarter
Trends
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in thousands) |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,790,579 |
|
|
$ |
5,927,377 |
|
|
$ |
5,711,042 |
|
|
$ |
5,367,672 |
|
|
$ |
5,205,410 |
|
NOW and
interest bearing demand deposits |
|
2,484,676 |
|
|
2,624,442 |
|
|
2,552,611 |
|
|
2,450,710 |
|
|
2,369,474 |
|
Wealth
management deposits (1) |
|
2,390,464 |
|
|
2,209,617 |
|
|
2,283,233 |
|
|
1,904,121 |
|
|
1,761,710 |
|
Money
market |
|
4,555,752 |
|
|
4,441,811 |
|
|
4,421,631 |
|
|
4,384,134 |
|
|
4,157,083 |
|
Savings |
|
2,287,958 |
|
|
2,180,482 |
|
|
1,977,661 |
|
|
1,851,863 |
|
|
1,766,552 |
|
Time
certificates of deposit |
|
4,221,012 |
|
|
4,274,903 |
|
|
4,201,477 |
|
|
4,083,250 |
|
|
3,956,842 |
|
Total
deposits |
|
$ |
21,730,441 |
|
|
$ |
21,658,632 |
|
|
$ |
21,147,655 |
|
|
$ |
20,041,750 |
|
|
$ |
19,217,071 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
27 |
% |
|
27 |
% |
|
27 |
% |
|
27 |
% |
|
27 |
% |
NOW and
interest bearing demand deposits |
|
11 |
|
|
12 |
|
|
12 |
|
|
12 |
|
|
12 |
|
Wealth
management deposits (1) |
|
11 |
|
|
10 |
|
|
11 |
|
|
10 |
|
|
9 |
|
Money
market |
|
21 |
|
|
21 |
|
|
21 |
|
|
22 |
|
|
22 |
|
Savings |
|
11 |
|
|
10 |
|
|
9 |
|
|
9 |
|
|
9 |
|
Time
certificates of deposit |
|
19 |
|
|
20 |
|
|
20 |
|
|
20 |
|
|
21 |
|
Total
deposits |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
(1) Represents deposit balances of the Company’s subsidiary
banks from brokerage customers of Wayne Hummer Investments, trust
and asset management customers of the Company and brokerage
customers from unaffiliated companies which have been placed into
deposit accounts of the Banks.
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Net Interest Margin (Including Call Option Income) - 5
Quarter Trends
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in thousands) |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
Net interest income -
FTE |
|
$ |
194,282 |
|
|
$ |
192,276 |
|
|
$ |
186,192 |
|
|
$ |
176,733 |
|
|
$ |
172,944 |
|
Call option income |
|
759 |
|
|
1,476 |
|
|
3,633 |
|
|
4,649 |
|
|
1,712 |
|
Net interest income
including call option income |
|
$ |
195,041 |
|
|
$ |
193,752 |
|
|
$ |
189,825 |
|
|
$ |
181,382 |
|
|
$ |
174,656 |
|
Yield on earning
assets |
|
3.79 |
% |
|
3.64 |
% |
|
3.65 |
% |
|
3.67 |
% |
|
3.71 |
% |
Rate on
interest-bearing liabilities |
|
0.58 |
|
|
0.58 |
|
|
0.58 |
|
|
0.56 |
|
|
0.55 |
|
Rate spread |
|
3.21 |
% |
|
3.06 |
% |
|
3.07 |
% |
|
3.11 |
% |
|
3.16 |
% |
Less: Fully
tax-equivalent adjustment |
|
(0.03 |
) |
|
(0.02 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
Net free funds
contribution |
|
0.18 |
|
|
0.17 |
|
|
0.17 |
|
|
0.16 |
|
|
0.16 |
|
Net interest margin
(GAAP-derived) |
|
3.36 |
% |
|
3.21 |
% |
|
3.21 |
% |
|
3.24 |
% |
|
3.29 |
% |
Fully tax-equivalent
adjustment |
|
0.03 |
|
|
0.02 |
|
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
Net interest margin -
FTE |
|
3.39 |
% |
|
3.23 |
% |
|
3.24 |
% |
|
3.27 |
% |
|
3.32 |
% |
Call option income |
|
0.01 |
|
|
0.02 |
|
|
0.06 |
|
|
0.09 |
|
|
0.03 |
|
Net interest margin -
FTE, including call option income |
|
3.40 |
% |
|
3.25 |
% |
|
3.30 |
% |
|
3.36 |
% |
|
3.35 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Net Interest Margin (Including Call Option Income - YTD
Trends)
|
|
Three Months Ended March 31, |
|
Years Ended
December 31, |
(Dollars in thousands) |
|
2017 |
|
2016 |
|
2015 |
|
2014 |
|
2013 |
Net interest income -
FTE |
|
$ |
194,282 |
|
|
$ |
728,145 |
|
|
$ |
646,238 |
|
|
$ |
601,744 |
|
|
$ |
552,887 |
|
Call option income |
|
759 |
|
|
11,470 |
|
|
15,364 |
|
|
7,859 |
|
|
4,773 |
|
Net interest income
including call option income |
|
$ |
195,041 |
|
|
$ |
739,615 |
|
|
$ |
661,602 |
|
|
$ |
609,603 |
|
|
$ |
557,660 |
|
Yield on earning
assets |
|
3.79 |
% |
|
3.67 |
% |
|
3.76 |
% |
|
3.96 |
% |
|
4.01 |
% |
Rate on
interest-bearing liabilities |
|
0.58 |
|
|
0.57 |
|
|
0.54 |
|
|
0.55 |
|
|
0.63 |
|
Rate spread |
|
3.21 |
% |
|
3.10 |
% |
|
3.22 |
% |
|
3.41 |
% |
|
3.38 |
% |
Less: Fully
tax-equivalent adjustment |
|
(0.03 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.01 |
) |
Net free funds
contribution |
|
0.18 |
|
|
0.16 |
|
|
0.14 |
|
|
0.12 |
|
|
0.12 |
|
Net interest margin
(GAAP-derived) |
|
3.36 |
% |
|
3.24 |
% |
|
3.34 |
% |
|
3.51 |
% |
|
3.49 |
% |
Fully tax-equivalent
adjustment |
|
0.03 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.01 |
|
Net interest margin -
FTE |
|
3.39 |
% |
|
3.26 |
% |
|
3.36 |
% |
|
3.53 |
% |
|
3.50 |
% |
Call option income |
|
0.01 |
|
|
0.05 |
|
|
0.08 |
|
|
0.05 |
|
|
0.03 |
|
Net interest margin -
FTE, including call option income |
|
3.40 |
% |
|
3.31 |
% |
|
3.44 |
% |
|
3.58 |
% |
|
3.53 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Quarterly Average Balances - 5 Quarter Trends
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands) |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
Liquidity management
assets |
|
$ |
3,270,467 |
|
|
$ |
3,860,616 |
|
|
$ |
3,671,577 |
|
|
$ |
3,413,113 |
|
|
$ |
3,300,138 |
|
Other earning
assets |
|
25,236 |
|
|
27,608 |
|
|
29,875 |
|
|
29,759 |
|
|
28,731 |
|
Loans, net of unearned
income |
|
19,923,606 |
|
|
19,711,504 |
|
|
19,071,621 |
|
|
18,204,552 |
|
|
17,508,593 |
|
Covered loans |
|
56,872 |
|
|
59,827 |
|
|
101,570 |
|
|
109,533 |
|
|
141,351 |
|
Total
earning assets |
|
$ |
23,276,181 |
|
|
$ |
23,659,555 |
|
|
$ |
22,874,643 |
|
|
$ |
21,756,957 |
|
|
$ |
20,978,813 |
|
Allowance for loan and
covered loan losses |
|
(127,425 |
) |
|
(122,665 |
) |
|
(121,156 |
) |
|
(116,984 |
) |
|
(112,028 |
) |
Cash and due from
banks |
|
229,588 |
|
|
221,892 |
|
|
240,239 |
|
|
272,935 |
|
|
259,343 |
|
Other assets |
|
1,829,004 |
|
|
1,852,278 |
|
|
1,885,526 |
|
|
1,841,847 |
|
|
1,776,785 |
|
Total
assets |
|
$ |
25,207,348 |
|
|
$ |
25,611,060 |
|
|
$ |
24,879,252 |
|
|
$ |
23,754,755 |
|
|
$ |
22,902,913 |
|
Interest-bearing
deposits |
|
$ |
15,466,670 |
|
|
$ |
15,567,263 |
|
|
$ |
15,117,102 |
|
|
$ |
14,065,995 |
|
|
$ |
13,717,333 |
|
Federal Home Loan Bank
advances |
|
181,338 |
|
|
388,780 |
|
|
459,198 |
|
|
946,081 |
|
|
825,104 |
|
Other borrowings |
|
255,012 |
|
|
240,174 |
|
|
249,307 |
|
|
248,233 |
|
|
257,384 |
|
Subordinated notes |
|
138,980 |
|
|
138,953 |
|
|
138,925 |
|
|
138,898 |
|
|
138,870 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
257,687 |
|
Total
interest-bearing liabilities |
|
$ |
16,295,566 |
|
|
$ |
16,588,736 |
|
|
$ |
16,218,098 |
|
|
$ |
15,652,773 |
|
|
$ |
15,196,378 |
|
Non-interest bearing
deposits |
|
5,787,034 |
|
|
5,902,439 |
|
|
5,566,983 |
|
|
5,223,384 |
|
|
4,939,746 |
|
Other liabilities |
|
385,698 |
|
|
430,009 |
|
|
442,487 |
|
|
412,866 |
|
|
377,019 |
|
Equity |
|
2,739,050 |
|
|
2,689,876 |
|
|
2,651,684 |
|
|
2,465,732 |
|
|
2,389,770 |
|
Total
liabilities and shareholders’ equity |
|
$ |
25,207,348 |
|
|
$ |
25,611,060 |
|
|
$ |
24,879,252 |
|
|
$ |
23,754,755 |
|
|
$ |
22,902,913 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Net Interest Margin - 5 Quarter Trends
|
|
Three Months Ended |
|
|
March 31,
2017 |
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
|
March 31,
2016 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Liquidity management
assets |
|
2.13 |
% |
|
1.70 |
% |
|
2.03 |
% |
|
2.27 |
% |
|
2.41 |
% |
Other earning
assets |
|
2.95 |
% |
|
3.37 |
% |
|
2.96 |
% |
|
3.21 |
% |
|
3.31 |
% |
Loans, net of unearned
income |
|
4.05 |
% |
|
4.01 |
% |
|
3.96 |
% |
|
3.92 |
% |
|
3.94 |
% |
Covered loans |
|
6.55 |
% |
|
6.38 |
% |
|
4.45 |
% |
|
5.44 |
% |
|
5.72 |
% |
Total
earning assets |
|
3.79 |
% |
|
3.64 |
% |
|
3.65 |
% |
|
3.67 |
% |
|
3.71 |
% |
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
|
0.43 |
% |
|
0.42 |
% |
|
0.41 |
% |
|
0.39 |
% |
|
0.37 |
% |
Federal Home Loan Bank
advances |
|
3.55 |
% |
|
2.50 |
% |
|
2.23 |
% |
|
1.27 |
% |
|
1.41 |
% |
Other borrowings |
|
1.81 |
% |
|
1.78 |
% |
|
1.81 |
% |
|
1.76 |
% |
|
1.65 |
% |
Subordinated notes |
|
5.10 |
% |
|
5.12 |
% |
|
5.12 |
% |
|
5.12 |
% |
|
5.12 |
% |
Junior subordinated
debentures |
|
3.80 |
% |
|
3.90 |
% |
|
3.70 |
% |
|
3.67 |
% |
|
3.41 |
% |
Total
interest-bearing liabilities |
|
0.58 |
% |
|
0.58 |
% |
|
0.58 |
% |
|
0.56 |
% |
|
0.55 |
% |
Interest rate
spread |
|
3.21 |
% |
|
3.06 |
% |
|
3.07 |
% |
|
3.11 |
% |
|
3.16 |
% |
Less: Fully
tax-equivalent adjustment |
|
(0.03 |
) |
|
(0.02 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
Net free
funds/contribution |
|
0.18 |
|
|
0.17 |
|
|
0.17 |
|
|
0.16 |
|
|
0.16 |
|
Net interest margin
(GAAP) |
|
3.36 |
% |
|
3.21 |
% |
|
3.21 |
% |
|
3.24 |
% |
|
3.29 |
% |
Fully tax-equivalent
adjustment |
|
0.03 |
|
|
0.02 |
|
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
Net interest margin -
FTE |
|
3.39 |
% |
|
3.23 |
% |
|
3.24 |
% |
|
3.27 |
% |
|
3.32 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Interest Income - 5 Quarter Trends
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands) |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
Brokerage |
|
$ |
6,220 |
|
|
$ |
6,408 |
|
|
$ |
6,752 |
|
|
$ |
6,302 |
|
|
$ |
6,057 |
|
Trust and asset
management |
|
13,928 |
|
|
13,104 |
|
|
12,582 |
|
|
12,550 |
|
|
12,263 |
|
Total
wealth management |
|
20,148 |
|
|
19,512 |
|
|
19,334 |
|
|
18,852 |
|
|
18,320 |
|
Mortgage banking |
|
21,938 |
|
|
35,489 |
|
|
34,712 |
|
|
36,807 |
|
|
21,735 |
|
Service charges on
deposit accounts |
|
8,265 |
|
|
8,054 |
|
|
8,024 |
|
|
7,726 |
|
|
7,406 |
|
(Losses) gains on
investment securities, net |
|
(55 |
) |
|
1,575 |
|
|
3,305 |
|
|
1,440 |
|
|
1,325 |
|
Fees from covered call
options |
|
759 |
|
|
1,476 |
|
|
3,633 |
|
|
4,649 |
|
|
1,712 |
|
Trading (losses) gains,
net |
|
(320 |
) |
|
1,007 |
|
|
(432 |
) |
|
(316 |
) |
|
(168 |
) |
Operating lease income,
net |
|
5,782 |
|
|
5,171 |
|
|
4,459 |
|
|
4,005 |
|
|
2,806 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
Interest
rate swap fees |
|
1,433 |
|
|
2,870 |
|
|
2,881 |
|
|
1,835 |
|
|
4,438 |
|
BOLI |
|
985 |
|
|
981 |
|
|
884 |
|
|
1,257 |
|
|
472 |
|
Administrative services |
|
1,024 |
|
|
1,115 |
|
|
1,151 |
|
|
1,074 |
|
|
1,069 |
|
(Loss)
gain on extinguishment of debt |
|
— |
|
|
(717 |
) |
|
— |
|
|
— |
|
|
4,305 |
|
Early
pay-offs of leases |
|
1,211 |
|
|
728 |
|
|
— |
|
|
— |
|
|
— |
|
Miscellaneous |
|
7,595 |
|
|
8,014 |
|
|
8,653 |
|
|
7,470 |
|
|
5,332 |
|
Total
other income |
|
12,248 |
|
|
12,991 |
|
|
13,569 |
|
|
11,636 |
|
|
15,616 |
|
Total Non-Interest Income |
|
$ |
68,765 |
|
|
$ |
85,275 |
|
|
$ |
86,604 |
|
|
$ |
84,799 |
|
|
$ |
68,752 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Interest Expense - 5 Quarter Trends
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands) |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
55,008 |
|
|
$ |
53,108 |
|
|
$ |
54,309 |
|
|
$ |
52,924 |
|
|
$ |
50,282 |
|
Commissions and
incentive compensation |
|
26,643 |
|
|
35,744 |
|
|
33,740 |
|
|
32,531 |
|
|
26,375 |
|
Benefits |
|
17,665 |
|
|
15,883 |
|
|
15,669 |
|
|
15,439 |
|
|
19,154 |
|
Total salaries and
employee benefits |
|
99,316 |
|
|
104,735 |
|
|
103,718 |
|
|
100,894 |
|
|
95,811 |
|
Equipment |
|
9,002 |
|
|
9,532 |
|
|
9,449 |
|
|
9,307 |
|
|
8,767 |
|
Operating lease
equipment depreciation |
|
4,636 |
|
|
4,219 |
|
|
3,605 |
|
|
3,385 |
|
|
2,050 |
|
Occupancy, net |
|
13,101 |
|
|
14,254 |
|
|
12,767 |
|
|
11,943 |
|
|
11,948 |
|
Data processing |
|
7,925 |
|
|
7,687 |
|
|
7,432 |
|
|
7,138 |
|
|
6,519 |
|
Advertising and
marketing |
|
5,150 |
|
|
6,691 |
|
|
7,365 |
|
|
6,941 |
|
|
3,779 |
|
Professional fees |
|
4,660 |
|
|
5,425 |
|
|
5,508 |
|
|
5,419 |
|
|
4,059 |
|
Amortization of other
intangible assets |
|
1,164 |
|
|
1,158 |
|
|
1,085 |
|
|
1,248 |
|
|
1,298 |
|
FDIC insurance |
|
4,156 |
|
|
4,726 |
|
|
3,686 |
|
|
4,040 |
|
|
3,613 |
|
OREO expense, net |
|
1,665 |
|
|
1,843 |
|
|
1,436 |
|
|
1,348 |
|
|
560 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
1,098 |
|
|
1,165 |
|
|
1,362 |
|
|
1,324 |
|
|
1,310 |
|
Postage |
|
1,442 |
|
|
1,955 |
|
|
1,889 |
|
|
2,038 |
|
|
1,302 |
|
Miscellaneous |
|
14,803 |
|
|
16,981 |
|
|
17,313 |
|
|
15,944 |
|
|
12,714 |
|
Total
other expense |
|
17,343 |
|
|
20,101 |
|
|
20,564 |
|
|
19,306 |
|
|
15,326 |
|
Total Non-Interest Expense |
|
$ |
168,118 |
|
|
$ |
180,371 |
|
|
$ |
176,615 |
|
|
$ |
170,969 |
|
|
$ |
153,730 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Allowance for Credit Losses, excluding covered loans - 5
Quarter Trends
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in thousands) |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
Allowance for
loan losses at beginning of period |
|
$ |
122,291 |
|
|
$ |
117,693 |
|
|
$ |
114,356 |
|
|
$ |
110,171 |
|
|
$ |
105,400 |
|
Provision for
credit losses |
|
5,316 |
|
|
7,357 |
|
|
9,741 |
|
|
9,269 |
|
|
8,423 |
|
Other
adjustments |
|
(56 |
) |
|
33 |
|
|
(112 |
) |
|
(134 |
) |
|
(78 |
) |
Reclassification (to) from allowance for unfunded
lending-related commitments |
|
(138 |
) |
|
(25 |
) |
|
(579 |
) |
|
(40 |
) |
|
(81 |
) |
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
641 |
|
|
3,054 |
|
|
3,469 |
|
|
721 |
|
|
671 |
|
Commercial real estate |
|
261 |
|
|
375 |
|
|
382 |
|
|
502 |
|
|
671 |
|
Home
equity |
|
625 |
|
|
326 |
|
|
574 |
|
|
2,046 |
|
|
1,052 |
|
Residential real estate |
|
329 |
|
|
410 |
|
|
134 |
|
|
693 |
|
|
493 |
|
Premium
finance receivables - commercial |
|
1,427 |
|
|
1,843 |
|
|
1,959 |
|
|
1,911 |
|
|
2,480 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
134 |
|
|
205 |
|
|
389 |
|
|
224 |
|
|
107 |
|
Total
charge-offs |
|
3,417 |
|
|
6,213 |
|
|
6,907 |
|
|
6,097 |
|
|
5,474 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
273 |
|
|
668 |
|
|
176 |
|
|
121 |
|
|
629 |
|
Commercial real estate |
|
554 |
|
|
1,916 |
|
|
364 |
|
|
296 |
|
|
369 |
|
Home
equity |
|
65 |
|
|
300 |
|
|
65 |
|
|
71 |
|
|
48 |
|
Residential real estate |
|
178 |
|
|
21 |
|
|
61 |
|
|
31 |
|
|
112 |
|
Premium
finance receivables - commercial |
|
612 |
|
|
498 |
|
|
456 |
|
|
633 |
|
|
787 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
141 |
|
|
43 |
|
|
72 |
|
|
35 |
|
|
36 |
|
Total
recoveries |
|
1,823 |
|
|
3,446 |
|
|
1,194 |
|
|
1,187 |
|
|
1,981 |
|
Net charge-offs |
|
(1,594 |
) |
|
(2,767 |
) |
|
(5,713 |
) |
|
(4,910 |
) |
|
(3,493 |
) |
Allowance for loan losses at period end |
|
$ |
125,819 |
|
|
$ |
122,291 |
|
|
$ |
117,693 |
|
|
$ |
114,356 |
|
|
$ |
110,171 |
|
Allowance for unfunded lending-related commitments at
period end |
|
1,811 |
|
|
1,673 |
|
|
1,648 |
|
|
1,070 |
|
|
1,030 |
|
Allowance for credit losses at period end |
|
$ |
127,630 |
|
|
$ |
123,964 |
|
|
$ |
119,341 |
|
|
$ |
115,426 |
|
|
$ |
111,201 |
|
Annualized net charge-offs (recoveries) by category as a
percentage of its own respective category’s average: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
0.03 |
% |
|
0.16 |
% |
|
0.24 |
% |
|
0.05 |
% |
|
0.00 |
% |
Commercial real estate |
|
(0.02 |
) |
|
(0.10 |
) |
|
0.00 |
|
|
0.01 |
|
|
0.02 |
|
Home
equity |
|
0.32 |
|
|
0.01 |
|
|
0.27 |
|
|
1.03 |
|
|
0.52 |
|
Residential real estate |
|
0.06 |
|
|
0.13 |
|
|
0.03 |
|
|
0.26 |
|
|
0.17 |
|
Premium
finance receivables - commercial |
|
0.13 |
|
|
0.22 |
|
|
0.24 |
|
|
0.21 |
|
|
0.29 |
|
Premium
finance receivables - life insurance |
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
Consumer
and other |
|
(0.02 |
) |
|
0.47 |
|
|
0.92 |
|
|
0.57 |
|
|
0.20 |
|
Total
loans, net of unearned income, excluding covered loans |
|
0.03 |
% |
|
0.06 |
% |
|
0.12 |
% |
|
0.11 |
% |
|
0.08 |
% |
Net charge-offs as a percentage of the provision for credit
losses |
|
29.98 |
% |
|
37.61 |
% |
|
58.65 |
% |
|
52.97 |
% |
|
41.47 |
% |
Loans at period-end |
|
$ |
19,931,058 |
|
|
$ |
19,703,172 |
|
|
$ |
19,101,261 |
|
|
$ |
18,174,655 |
|
|
$ |
17,446,413 |
|
Allowance for loan losses as a percentage of loans at
period end |
|
0.63 |
% |
|
0.62 |
% |
|
0.62 |
% |
|
0.63 |
% |
|
0.63 |
% |
Allowance for credit losses as a percentage of loans at
period end |
|
0.64 |
% |
|
0.63 |
% |
|
0.62 |
% |
|
0.64 |
% |
|
0.64 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Performing Assets, excluding covered assets - 5 Quarter
Trends
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in thousands) |
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
Loans past due
greater than 90 days and still
accruing(1): |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
100 |
|
|
$ |
174 |
|
|
$ |
— |
|
|
$ |
235 |
|
|
$ |
338 |
|
Commercial real estate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,260 |
|
Home
equity |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential real estate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Premium
finance receivables - commercial |
4,991 |
|
|
7,962 |
|
|
7,754 |
|
|
10,558 |
|
|
9,548 |
|
Premium
finance receivables - life insurance |
2,024 |
|
|
3,717 |
|
|
— |
|
|
— |
|
|
1,641 |
|
Consumer
and other |
104 |
|
|
144 |
|
|
60 |
|
|
163 |
|
|
180 |
|
Total
loans past due greater than 90 days and still accruing |
7,219 |
|
|
11,997 |
|
|
7,814 |
|
|
10,956 |
|
|
12,967 |
|
Non-accrual
loans: |
|
|
|
|
|
|
|
|
|
Commercial |
14,307 |
|
|
15,875 |
|
|
16,418 |
|
|
16,801 |
|
|
12,373 |
|
Commercial real estate |
20,809 |
|
|
21,924 |
|
|
22,625 |
|
|
24,415 |
|
|
26,996 |
|
Home
equity |
11,722 |
|
|
9,761 |
|
|
9,309 |
|
|
8,562 |
|
|
9,365 |
|
Residential real estate |
11,943 |
|
|
12,749 |
|
|
12,205 |
|
|
12,413 |
|
|
11,964 |
|
Premium
finance receivables - commercial |
12,629 |
|
|
14,709 |
|
|
14,214 |
|
|
14,497 |
|
|
15,350 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
350 |
|
|
439 |
|
|
543 |
|
|
475 |
|
|
484 |
|
Total
non-accrual loans |
71,760 |
|
|
75,457 |
|
|
75,314 |
|
|
77,163 |
|
|
76,532 |
|
Total
non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
14,407 |
|
|
16,049 |
|
|
16,418 |
|
|
17,036 |
|
|
12,711 |
|
Commercial real estate |
20,809 |
|
|
21,924 |
|
|
22,625 |
|
|
24,415 |
|
|
28,256 |
|
Home
equity |
11,722 |
|
|
9,761 |
|
|
9,309 |
|
|
8,562 |
|
|
9,365 |
|
Residential real estate |
11,943 |
|
|
12,749 |
|
|
12,205 |
|
|
12,413 |
|
|
11,964 |
|
Premium
finance receivables - commercial |
17,620 |
|
|
22,671 |
|
|
21,968 |
|
|
25,055 |
|
|
24,898 |
|
Premium
finance receivables - life insurance |
2,024 |
|
|
3,717 |
|
|
— |
|
|
— |
|
|
1,641 |
|
Consumer
and other |
454 |
|
|
583 |
|
|
603 |
|
|
638 |
|
|
664 |
|
Total
non-performing loans |
$ |
78,979 |
|
|
$ |
87,454 |
|
|
$ |
83,128 |
|
|
$ |
88,119 |
|
|
$ |
89,499 |
|
Other
real estate owned |
17,090 |
|
|
17,699 |
|
|
19,933 |
|
|
22,154 |
|
|
24,022 |
|
Other
real estate owned - from acquisitions |
22,774 |
|
|
22,583 |
|
|
15,117 |
|
|
15,909 |
|
|
16,980 |
|
Other
repossessed assets |
544 |
|
|
581 |
|
|
428 |
|
|
420 |
|
|
171 |
|
Total
non-performing assets |
$ |
119,387 |
|
|
$ |
128,317 |
|
|
$ |
118,606 |
|
|
$ |
126,602 |
|
|
$ |
130,672 |
|
TDRs
performing under the contractual terms of the loan agreement |
$ |
28,392 |
|
|
$ |
29,911 |
|
|
$ |
29,440 |
|
|
$ |
33,310 |
|
|
$ |
34,949 |
|
Total
non-performing loans by category as a percent of its own respective
category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
0.24 |
% |
|
0.27 |
% |
|
0.28 |
% |
|
0.33 |
% |
|
0.26 |
% |
Commercial real estate |
0.33 |
|
|
0.35 |
|
|
0.38 |
|
|
0.42 |
|
|
0.49 |
|
Home
equity |
1.66 |
|
|
1.34 |
|
|
1.25 |
|
|
1.13 |
|
|
1.21 |
|
Residential real estate |
1.66 |
|
|
1.81 |
|
|
1.84 |
|
|
1.90 |
|
|
1.91 |
|
Premium
finance receivables - commercial |
0.72 |
|
|
0.91 |
|
|
0.90 |
|
|
1.01 |
|
|
1.07 |
|
Premium
finance receivables - life insurance |
0.06 |
|
|
0.11 |
|
|
— |
|
|
— |
|
|
0.06 |
|
Consumer
and other |
0.38 |
|
|
0.48 |
|
|
0.50 |
|
|
0.50 |
|
|
0.55 |
|
Total
loans, net of unearned income |
0.40 |
% |
|
0.44 |
% |
|
0.44 |
% |
|
0.48 |
% |
|
0.51 |
% |
Total non-performing assets as a percentage of total
assets |
0.46 |
% |
|
0.50 |
% |
|
0.47 |
% |
|
0.52 |
% |
|
0.56 |
% |
Allowance for loan losses as a percentage of total
non-performing loans |
159.31 |
% |
|
139.83 |
% |
|
141.58 |
% |
|
129.78 |
% |
|
123.10 |
% |
(1) As of the dates shown, no TDRs were past due greater
than 90 days and still accruing interest.
(2) Non-accrual loans included TDRs totaling $11.3 million,
$11.8 million, $14.8 million, $16.3 million and $17.6 million as of
March 31, 2017, December 31, 2016, September 30, 2016, June 30,
2016 and March 31, 2016, respectively.
FOR MORE INFORMATION CONTACT:
Edward J. Wehmer, President & Chief Executive Officer
David A. Dykstra, Senior Executive Vice President & Chief Operating Officer
(847) 939-9000
Web site address: www.wintrust.com
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