ROSEMONT, Ill., July 17, 2018 (GLOBE NEWSWIRE)
-- Wintrust Financial Corporation (“Wintrust” or “the Company”)
(Nasdaq:WTFC) announced net income of $89.6 million or $1.53 per
diluted common share for the second quarter of 2018 compared to net
income of $82.0 million or $1.40 per diluted common share for the
first quarter of 2018 and $64.9 million or $1.11 per diluted common
share for the second quarter of 2017. The Company recorded net
income of $171.6 million or $2.93 per diluted common share for the
first six months of 2018 compared to net income of $123.3 million
or $2.11 per diluted common share for the same period of 2017.
Highlights of the Second Quarter of 2018
*:
- Total assets increased by $1.0 billion from the prior quarter
and now total $29.5 billion.
- Total deposits increased $1.1 billion from the prior quarter to
$24.4 billion with non-interest bearing deposit accounts comprising
27% of total deposits.
- Total loans increased by $548 million from the prior
quarter.
- Non-performing loans as a percentage of total loans decreased
to 0.37% from 0.41% at the end of the prior quarter.
- Allowance for loan losses as a percentage of total
non-performing loans remained strong, increasing to 172%.
- Net charge-offs decreased to $1.1 million, or two basis points
of average total loans for the period.
- Provision for credit losses totaled $5.0 million in the second
quarter compared to $8.3 million in the prior quarter.
- Net interest margin increased seven basis points and net
interest income increased $13.1 million over the prior
quarter.
- Return on average assets increased to 1.26% from 1.20% in the
first quarter. Return on average common equity increased to
11.94% from 11.29% in the first quarter.
- Mortgage banking revenue increased to $39.8 million, up
$8.9 million over the first quarter of 2018 due to higher
originations during the traditional spring purchase market and a
full quarter's impact from the iFreedom Direct Corporation DBA
Veterans First Mortgage ("Veterans First") acquisition, offset by
lower production margins and smaller positive fair market value
adjustment to mortgage servicing rights.
- Salaries and employee benefits increased $9.2 million from the
most recent quarter due to a full quarter impact from the Veterans
First acquisition as well as higher incentive compensation on
variable pay based arrangements, commissions on mortgage
originations and salaries due to the Company's growth.
- Opened five new branches, including three locations in Illinois
and two locations in Wisconsin.
* See "Supplemental Financial
Measures/Ratios" on pages 11-12 for more information on
non-GAAP measures.
Edward J. Wehmer, President and Chief Executive
Officer, commented, "Wintrust reported net income of $89.6 million
for the second quarter of 2018, the tenth consecutive quarter of
record net income, and net income of $171.6 million for the first
six months of 2018. These results were driven by strong loan and
deposit growth and an increased net interest margin as we continue
to benefit from rising interest rates. The second quarter of
2018 was also characterized by good credit quality metrics and
increased mortgage banking revenue."
Mr. Wehmer continued, "We experienced strong loan growth within the
commercial portfolio and premium finance receivables portfolios
during the period. The commercial real estate portfolio remained
relatively flat during the second quarter as elevated payoffs
and paydowns offset new loan growth within the portfolio. We
continue to take a measured approach in evaluating new commercial
real estate loan opportunities due to supply and demand issues in
the market place, pricing competition and easing of underwriting
standards by some competitors. Overall, we grew our loan portfolio
by $548 million during the second quarter of 2018. Our loan
pipelines improved to the highest levels since the second quarter
of 2017. The increased loan volume, continued improvement in net
interest margin from rising interest rates and an additional day in
the second quarter compared to the first quarter helped net
interest income increase by $13.1 million in the second quarter of
2018. Deposit growth was strong in the second quarter of 2018 as
deposits increased $1.1 billion and exceeded $24 billion as of the
end of the quarter. Our deposit growth was primarily the result of
growth in money market accounts and retail certificate of deposit
accounts as active marketing campaigns began to take effect. Five
branches added during the second quarter of 2018 contributed $134
million of retail deposit balances to this growth."
Commenting on credit quality, Mr. Wehmer noted,
"During the second quarter of 2018, the Company continued its
practice of addressing and resolving non-performing credits in a
timely fashion. Net charge-offs totaled $1.1 million in the current
quarter, decreasing $5.6 million from the first quarter of 2018.
Additionally, net charge-offs as a percentage of average total
loans decreased to two basis points from 13 basis points in the
first quarter. Total non-performing assets decreased $7.5 million
during the second quarter of 2018 resulting in non-performing
assets as a percentage of total assets dropping from 0.44% to 0.40%
during the period. Total non-performing loans decreased $6.4
million in the second quarter of 2018 and now total $83.3 million,
or 0.37% of total loans. As a percentage of non-performing loans,
the allowance for loan losses increased to 172% at the end of the
second quarter of 2018 from 156% at the end of the first quarter of
2018. We believe that the Company's reserves remain
appropriate."
Mr. Wehmer further commented, "Mortgage banking
revenue in the second quarter of 2018 totaled $39.8 million, an
increase of $8.9 million compared to the first quarter of 2018.
Mortgage loan origination volumes in the second quarter of 2018
increased to $1.1 billion from $779 million in the first quarter of
2018 as a result of higher purchase originations during the
traditional spring purchase market and a full quarter's impact from
the Veterans First acquisition. The increase in mortgage banking
revenue from higher originations was tempered by lower production
margins and smaller positive fair market value adjustment to
mortgage servicing rights as interest rates increased less during
the second quarter of 2018 when compared to the first quarter of
2018. Home purchases activity represented 80% of the volume for the
second quarter of 2018 compared to 73% in the first quarter of
2018. Our mortgage pipeline remains relatively strong. With respect
to production margin, we anticipate that it will decline slightly
in the third quarter with stabilization in future periods. We
continue to focus on efficiencies in our delivery channels
and operating costs in our mortgage banking area."
Turning to the future, Mr. Wehmer stated, "Our
growth engine continued its momentum into the second quarter of
2018 and we expect that to continue for the second half of the
year. Loan growth at the end of the second quarter of 2018 should
add to this momentum as period-end loan balances exceeded the
second quarter average balance by $327 million. Wintrust continues
to take a steady and measured approach to achieving our main
objectives of growing franchise value, increasing profitability,
leveraging our expense infrastructure and continuing to increase
shareholder value. As our growth engine continues its momentum, we
expect continued organic growth while still focusing on expense
control. We remain well-positioned for a rising interest rate
environment in the future, which, coupled with this loan growth,
should continue to grow net interest income. Evaluating strategic
acquisitions and organic branch growth will also be a part of our
overall growth strategy with the goal of becoming Chicago’s bank
and Wisconsin’s bank. To that end, the Company opened five new
branches in the second quarter of 2018 and will continue to
evaluate future locations in our market area including four
expected branch openings in the third quarter of 2018. Our
opportunities for both internal growth and external growth remain
consistently strong."
The graphs below illustrate certain highlights
of the second quarter of 2018.
http://resource.globenewswire.com/Resource/Download/67e63205-bcc4-4010-9f95-adb4dbc564db
Wintrust’s key operating measures and growth
rates for the second quarter of 2018, as compared to the
sequential and linked quarters, are shown in the table below:
|
|
|
|
|
|
|
|
% or(4)
basis point (bp) change from
1st Quarter
2018 |
|
% or
basis point (bp)
change from
2nd Quarter
2017 |
|
|
Three Months Ended |
|
|
(Dollars in
thousands) |
|
June 30,
2018 |
|
March 31,
2018 |
|
June 30,
2017 |
|
|
Net income |
|
$ |
89,580 |
|
|
$ |
81,981 |
|
|
$ |
64,897 |
|
|
9 |
|
% |
|
38 |
|
% |
Net income per common
share – diluted |
|
$ |
1.53 |
|
|
$ |
1.40 |
|
|
$ |
1.11 |
|
|
9 |
|
% |
|
38 |
|
% |
Net revenue
(1) |
|
$ |
333,403 |
|
|
$ |
310,761 |
|
|
$ |
294,381 |
|
|
7 |
|
% |
|
13 |
|
% |
Net interest
income |
|
238,170 |
|
|
225,082 |
|
|
204,409 |
|
|
6 |
|
% |
|
17 |
|
% |
Net interest
margin |
|
3.61 |
% |
|
3.54 |
% |
|
3.41 |
% |
|
7 |
|
bp |
|
20 |
|
bp |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
|
3.63 |
% |
|
3.56 |
% |
|
3.43 |
% |
|
7 |
|
bp |
|
20 |
|
bp |
Net overhead ratio
(3) |
|
1.57 |
% |
|
1.58 |
% |
|
1.44 |
% |
|
(1 |
) |
bp |
|
13 |
|
bp |
Return on average
assets |
|
1.26 |
% |
|
1.20 |
% |
|
1.00 |
% |
|
6 |
|
bp |
|
26 |
|
bp |
Return on average
common equity |
|
11.94 |
% |
|
11.29 |
% |
|
9.55 |
% |
|
65 |
|
bp |
|
239 |
|
bp |
Return on
average tangible common equity (non-GAAP) (2) |
|
14.72 |
% |
|
14.02 |
% |
|
12.02 |
% |
|
70 |
|
bp |
|
270 |
|
bp |
At end of
period |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
|
$ |
26,929,265 |
|
|
14 |
|
% |
|
9 |
|
% |
Total loans, excluding
covered loans |
|
22,610,560 |
|
|
22,062,134 |
|
|
20,743,332 |
|
|
10 |
|
% |
|
9 |
|
% |
Total deposits |
|
24,365,479 |
|
|
23,279,327 |
|
|
22,605,692 |
|
|
19 |
|
% |
|
8 |
|
% |
Total
shareholders’ equity |
|
3,106,871 |
|
|
3,031,250 |
|
|
2,839,458 |
|
|
10 |
|
% |
|
9 |
|
% |
- Net revenue is net interest income plus non-interest
income.
- See "Supplemental Financial Measures/Ratios" for additional
information on this performance measure/ratio.
- 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.
- 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 |
|
Six Months Ended |
(Dollars in
thousands, except per share data) |
|
June 30,
2018 |
|
March 31,
2018 |
|
June 30,
2017 |
|
June 30,
2018 |
|
June 30,
2017 |
Selected
Financial Condition Data (at end of period): |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
|
$ |
26,929,265 |
|
|
|
|
|
Total loans, excluding
covered loans |
|
22,610,560 |
|
|
22,062,134 |
|
|
20,743,332 |
|
|
|
|
|
Total deposits |
|
24,365,479 |
|
|
23,279,327 |
|
|
22,605,692 |
|
|
|
|
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
|
|
|
Total shareholders’
equity |
|
3,106,871 |
|
|
3,031,250 |
|
|
2,839,458 |
|
|
|
|
|
Selected
Statements of Income Data: |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
238,170 |
|
|
$ |
225,082 |
|
|
$ |
204,409 |
|
|
$ |
463,252 |
|
|
$ |
396,989 |
|
Net revenue
(1) |
|
333,403 |
|
|
310,761 |
|
|
294,381 |
|
|
644,164 |
|
|
555,726 |
|
Net income |
|
89,580 |
|
|
81,981 |
|
|
64,897 |
|
|
171,561 |
|
|
123,275 |
|
Net income per common
share – Basic |
|
$ |
1.55 |
|
|
$ |
1.42 |
|
|
$ |
1.15 |
|
|
$ |
2.98 |
|
|
$ |
2.20 |
|
Net income per common
share – Diluted |
|
$ |
1.53 |
|
|
$ |
1.40 |
|
|
$ |
1.11 |
|
|
$ |
2.93 |
|
|
$ |
2.11 |
|
Selected
Financial Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
3.61 |
% |
|
3.54 |
% |
|
3.41 |
% |
|
3.58 |
% |
|
3.38 |
% |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
|
3.63 |
% |
|
3.56 |
% |
|
3.43 |
% |
|
3.60 |
% |
|
3.41 |
% |
Non-interest income to
average assets |
|
1.34 |
% |
|
1.25 |
% |
|
1.39 |
% |
|
1.29 |
% |
|
1.25 |
% |
Non-interest expense to
average assets |
|
2.90 |
% |
|
2.83 |
% |
|
2.83 |
% |
|
2.87 |
% |
|
2.77 |
% |
Net overhead ratio
(3) |
|
1.57 |
% |
|
1.58 |
% |
|
1.44 |
% |
|
1.58 |
% |
|
1.52 |
% |
Return on average
assets |
|
1.26 |
% |
|
1.20 |
% |
|
1.00 |
% |
|
1.23 |
% |
|
0.97 |
% |
Return on average
common equity |
|
11.94 |
% |
|
11.29 |
% |
|
9.55 |
% |
|
11.62 |
% |
|
9.24 |
% |
Return on average
tangible common equity (non-GAAP) (2) |
|
14.72 |
% |
|
14.02 |
% |
|
12.02 |
% |
|
14.38 |
% |
|
11.74 |
% |
Average total
assets |
|
$ |
28,567,579 |
|
|
$ |
27,809,597 |
|
|
$ |
26,050,949 |
|
|
$ |
28,190,683 |
|
|
$ |
25,632,004 |
|
Average total
shareholders’ equity |
|
3,064,154 |
|
|
2,995,592 |
|
|
2,800,905 |
|
|
3,030,062 |
|
|
2,771,768 |
|
Average loans to
average deposits ratio (excluding covered loans) |
|
95.5 |
% |
|
95.2 |
% |
|
94.1 |
% |
|
95.3 |
% |
|
93.3 |
% |
Period-end loans to
deposits ratio (excluding covered loans) |
|
92.8 |
% |
|
94.8 |
% |
|
91.8 |
% |
|
|
|
|
Common Share Data
at end of period: |
|
|
|
|
|
|
|
|
|
|
Market price per common
share |
|
$ |
87.05 |
|
|
$ |
86.05 |
|
|
$ |
76.44 |
|
|
|
|
|
Book value per common
share (2) |
|
$ |
52.94 |
|
|
$ |
51.66 |
|
|
$ |
48.73 |
|
|
|
|
|
Tangible common book
value per share (2) |
|
$ |
43.50 |
|
|
$ |
42.17 |
|
|
$ |
39.40 |
|
|
|
|
|
Common shares
outstanding |
|
56,329,276 |
|
|
56,256,498 |
|
|
55,699,927 |
|
|
|
|
|
Other Data at end
of period:(6) |
|
|
|
|
|
|
|
|
|
|
Leverage Ratio
(4) |
|
9.4 |
% |
|
9.3 |
% |
|
9.2 |
% |
|
|
|
|
Tier 1 capital to
risk-weighted assets (4) |
|
10.0 |
% |
|
10.0 |
% |
|
9.8 |
% |
|
|
|
|
Common equity Tier 1
capital to risk-weighted assets (4) |
|
9.5 |
% |
|
9.5 |
% |
|
9.3 |
% |
|
|
|
|
Total capital to
risk-weighted assets (4) |
|
12.0 |
% |
|
12.0 |
% |
|
12.0 |
% |
|
|
|
|
Allowance for credit
losses (5) |
|
$ |
144,645 |
|
|
$ |
140,746 |
|
|
$ |
131,296 |
|
|
|
|
|
Non-performing
loans |
|
83,282 |
|
|
89,690 |
|
|
69,050 |
|
|
|
|
|
Allowance for credit
losses to total loans (5) |
|
0.64 |
% |
|
0.64 |
% |
|
0.63 |
% |
|
|
|
|
Non-performing loans to
total loans |
|
0.37 |
% |
|
0.41 |
% |
|
0.33 |
% |
|
|
|
|
Number of: |
|
|
|
|
|
|
|
|
|
|
Bank
subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
|
|
|
Banking
offices |
|
162 |
|
|
157 |
|
|
153 |
|
|
|
|
|
- Net revenue includes net interest income and non-interest
income.
- See “Supplemental Financial Measures/Ratios” for additional
information on this performance measure/ratio.
- 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.
- Capital ratios for current quarter-end are
estimated.
- 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.
- Asset quality ratios exclude covered loans.
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
|
|
(Unaudited) |
|
|
|
(Unaudited) |
(In
thousands) |
|
June 30,
2018 |
|
December 31,
2017 |
|
June 30,
2017 |
Assets |
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
304,580 |
|
|
$ |
277,534 |
|
|
$ |
296,105 |
|
Federal funds sold and
securities purchased under resale agreements |
|
62 |
|
|
57 |
|
|
56 |
|
Interest bearing
deposits with banks |
|
1,221,407 |
|
|
1,063,242 |
|
|
1,011,635 |
|
Available-for-sale
securities, at fair value |
|
1,940,787 |
|
|
1,803,666 |
|
|
1,649,636 |
|
Held-to-maturity
securities, at amortized cost |
|
890,834 |
|
|
826,449 |
|
|
793,376 |
|
Trading account
securities |
|
862 |
|
|
995 |
|
|
1,987 |
|
Equity securities with
readily determinable fair value |
|
37,839 |
|
|
— |
|
|
— |
|
Federal Home Loan Bank
and Federal Reserve Bank stock |
|
96,699 |
|
|
89,989 |
|
|
80,812 |
|
Brokerage customer
receivables |
|
16,649 |
|
|
26,431 |
|
|
23,281 |
|
Mortgage loans
held-for-sale |
|
455,712 |
|
|
313,592 |
|
|
382,837 |
|
Loans, net of unearned
income, excluding covered loans |
|
22,610,560 |
|
|
21,640,797 |
|
|
20,743,332 |
|
Covered loans |
|
— |
|
|
— |
|
|
50,119 |
|
Total
loans |
|
22,610,560 |
|
|
21,640,797 |
|
|
20,793,451 |
|
Allowance
for loan losses |
|
(143,402 |
) |
|
(137,905 |
) |
|
(129,591 |
) |
Allowance
for covered loan losses |
|
— |
|
|
— |
|
|
(1,074 |
) |
Net
loans |
|
22,467,158 |
|
|
21,502,892 |
|
|
20,662,786 |
|
Premises and equipment,
net |
|
639,345 |
|
|
621,895 |
|
|
605,211 |
|
Lease investments,
net |
|
194,160 |
|
|
212,335 |
|
|
191,248 |
|
Accrued interest
receivable and other assets |
|
666,673 |
|
|
567,374 |
|
|
577,359 |
|
Trade date securities
receivable |
|
450 |
|
|
90,014 |
|
|
133,130 |
|
Goodwill |
|
509,957 |
|
|
501,884 |
|
|
500,260 |
|
Other intangible
assets |
|
21,414 |
|
|
17,621 |
|
|
19,546 |
|
Total
assets |
|
$ |
29,464,588 |
|
|
$ |
27,915,970 |
|
|
$ |
26,929,265 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Non-interest bearing |
|
$ |
6,520,724 |
|
|
$ |
6,792,497 |
|
|
$ |
6,294,052 |
|
Interest
bearing |
|
17,844,755 |
|
|
16,390,850 |
|
|
16,311,640 |
|
Total deposits |
|
24,365,479 |
|
|
23,183,347 |
|
|
22,605,692 |
|
Federal Home Loan Bank
advances |
|
667,000 |
|
|
559,663 |
|
|
318,270 |
|
Other borrowings |
|
255,701 |
|
|
266,123 |
|
|
277,710 |
|
Subordinated notes |
|
139,148 |
|
|
139,088 |
|
|
139,029 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Trade date securities
payable |
|
— |
|
|
— |
|
|
5,151 |
|
Accrued interest
payable and other liabilities |
|
676,823 |
|
|
537,244 |
|
|
490,389 |
|
Total liabilities |
|
26,357,717 |
|
|
24,939,031 |
|
|
24,089,807 |
|
Shareholders’
Equity: |
|
|
|
|
|
|
Preferred
stock |
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
Common
stock |
|
56,437 |
|
|
56,068 |
|
|
55,802 |
|
Surplus |
|
1,547,511 |
|
|
1,529,035 |
|
|
1,511,080 |
|
Treasury
stock |
|
(5,355 |
) |
|
(4,986 |
) |
|
(4,884 |
) |
Retained
earnings |
|
1,464,494 |
|
|
1,313,657 |
|
|
1,198,997 |
|
Accumulated other comprehensive loss |
|
(81,216 |
) |
|
(41,835 |
) |
|
(46,537 |
) |
Total shareholders’ equity |
|
3,106,871 |
|
|
2,976,939 |
|
|
2,839,458 |
|
Total liabilities
and shareholders’ equity |
|
$ |
29,464,588 |
|
|
$ |
27,915,970 |
|
|
$ |
26,929,265 |
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|
Three Months Ended |
|
Six Months Ended |
(In thousands,
except per share data) |
June 30,
2018 |
|
March 31,
2018 |
|
June 30,
2017 |
|
June 30,
2018 |
|
June 30,
2017 |
Interest
income |
|
|
|
|
|
|
|
|
|
Interest
and fees on loans |
255,063 |
|
|
234,994 |
|
|
209,289 |
|
|
490,057 |
|
|
406,205 |
|
Mortgage loans held-for-sale |
4,226 |
|
|
2,818 |
|
|
3,420 |
|
|
7,044 |
|
|
5,818 |
|
Interest
bearing deposits with banks |
3,243 |
|
|
2,796 |
|
|
1,634 |
|
|
6,039 |
|
|
3,257 |
|
Federal
funds sold and securities purchased under resale agreements |
1 |
|
|
— |
|
|
1 |
|
|
1 |
|
|
2 |
|
Investment securities |
19,888 |
|
|
19,128 |
|
|
15,524 |
|
|
39,016 |
|
|
29,097 |
|
Trading
account securities |
4 |
|
|
14 |
|
|
4 |
|
|
18 |
|
|
15 |
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
1,455 |
|
|
1,298 |
|
|
1,153 |
|
|
2,753 |
|
|
2,223 |
|
Brokerage
customer receivables |
167 |
|
|
157 |
|
|
156 |
|
|
324 |
|
|
323 |
|
Total interest income |
284,047 |
|
|
261,205 |
|
|
231,181 |
|
|
545,252 |
|
|
446,940 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
Interest
on deposits |
35,293 |
|
|
26,549 |
|
|
18,471 |
|
|
61,842 |
|
|
34,741 |
|
Interest
on Federal Home Loan Bank advances |
4,263 |
|
|
3,639 |
|
|
2,933 |
|
|
7,902 |
|
|
4,523 |
|
Interest
on other borrowings |
1,698 |
|
|
1,699 |
|
|
1,149 |
|
|
3,397 |
|
|
2,288 |
|
Interest
on subordinated notes |
1,787 |
|
|
1,773 |
|
|
1,786 |
|
|
3,560 |
|
|
3,558 |
|
Interest
on junior subordinated debentures |
2,836 |
|
|
2,463 |
|
|
2,433 |
|
|
5,299 |
|
|
4,841 |
|
Total interest expense |
45,877 |
|
|
36,123 |
|
|
26,772 |
|
|
82,000 |
|
|
49,951 |
|
Net interest
income |
238,170 |
|
|
225,082 |
|
|
204,409 |
|
|
463,252 |
|
|
396,989 |
|
Provision for credit
losses |
5,043 |
|
|
8,346 |
|
|
8,891 |
|
|
13,389 |
|
|
14,100 |
|
Net interest income
after provision for credit losses |
233,127 |
|
|
216,736 |
|
|
195,518 |
|
|
449,863 |
|
|
382,889 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
Wealth
management |
22,617 |
|
|
22,986 |
|
|
19,905 |
|
|
45,603 |
|
|
40,053 |
|
Mortgage
banking |
39,834 |
|
|
30,960 |
|
|
35,939 |
|
|
70,794 |
|
|
57,877 |
|
Service
charges on deposit accounts |
9,151 |
|
|
8,857 |
|
|
8,696 |
|
|
18,008 |
|
|
16,961 |
|
Gains
(losses) on investment securities, net |
12 |
|
|
(351 |
) |
|
47 |
|
|
(339 |
) |
|
(8 |
) |
Fees from
covered call options |
669 |
|
|
1,597 |
|
|
890 |
|
|
2,266 |
|
|
1,649 |
|
Trading
gains (losses), net |
124 |
|
|
103 |
|
|
(420 |
) |
|
227 |
|
|
(740 |
) |
Operating
lease income, net |
8,746 |
|
|
9,691 |
|
|
6,805 |
|
|
18,437 |
|
|
12,587 |
|
Other |
14,080 |
|
|
11,836 |
|
|
18,110 |
|
|
25,916 |
|
|
30,358 |
|
Total non-interest income |
95,233 |
|
|
85,679 |
|
|
89,972 |
|
|
180,912 |
|
|
158,737 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
121,675 |
|
|
112,436 |
|
|
106,502 |
|
|
234,111 |
|
|
205,818 |
|
Equipment |
10,527 |
|
|
10,072 |
|
|
9,909 |
|
|
20,599 |
|
|
18,911 |
|
Operating
lease equipment depreciation |
6,940 |
|
|
6,533 |
|
|
5,662 |
|
|
13,473 |
|
|
10,298 |
|
Occupancy, net |
13,663 |
|
|
13,767 |
|
|
12,586 |
|
|
27,430 |
|
|
25,687 |
|
Data
processing |
8,752 |
|
|
8,493 |
|
|
7,804 |
|
|
17,245 |
|
|
15,729 |
|
Advertising and marketing |
11,782 |
|
|
8,824 |
|
|
8,726 |
|
|
20,606 |
|
|
13,876 |
|
Professional fees |
6,484 |
|
|
6,649 |
|
|
7,510 |
|
|
13,133 |
|
|
12,170 |
|
Amortization of other intangible assets |
997 |
|
|
1,004 |
|
|
1,141 |
|
|
2,001 |
|
|
2,305 |
|
FDIC
insurance |
4,598 |
|
|
4,362 |
|
|
3,874 |
|
|
8,960 |
|
|
8,030 |
|
OREO
expense, net |
980 |
|
|
2,926 |
|
|
739 |
|
|
3,906 |
|
|
2,404 |
|
Other |
20,371 |
|
|
19,283 |
|
|
19,091 |
|
|
39,654 |
|
|
36,434 |
|
Total non-interest expense |
206,769 |
|
|
194,349 |
|
|
183,544 |
|
|
401,118 |
|
|
351,662 |
|
Income before
taxes |
121,591 |
|
|
108,066 |
|
|
101,946 |
|
|
229,657 |
|
|
189,964 |
|
Income tax expense |
32,011 |
|
|
26,085 |
|
|
37,049 |
|
|
58,096 |
|
|
66,689 |
|
Net
income |
$ |
89,580 |
|
|
$ |
81,981 |
|
|
$ |
64,897 |
|
|
$ |
171,561 |
|
|
$ |
123,275 |
|
Preferred stock
dividends |
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
4,100 |
|
|
5,678 |
|
Net income
applicable to common shares |
$ |
87,530 |
|
|
$ |
79,931 |
|
|
$ |
62,847 |
|
|
$ |
167,461 |
|
|
$ |
117,597 |
|
Net income per
common share - Basic |
$ |
1.55 |
|
|
$ |
1.42 |
|
|
$ |
1.15 |
|
|
$ |
2.98 |
|
|
$ |
2.20 |
|
Net income per
common share - Diluted |
$ |
1.53 |
|
|
$ |
1.40 |
|
|
$ |
1.11 |
|
|
$ |
2.93 |
|
|
$ |
2.11 |
|
Cash dividends
declared per common share |
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
0.14 |
|
|
$ |
0.38 |
|
|
$ |
0.28 |
|
Weighted average common
shares outstanding |
56,299 |
|
|
56,137 |
|
|
54,775 |
|
|
56,218 |
|
|
53,528 |
|
Dilutive potential
common shares |
928 |
|
|
888 |
|
|
1,812 |
|
|
909 |
|
|
2,981 |
|
Average common shares
and dilutive common shares |
57,227 |
|
|
57,025 |
|
|
56,587 |
|
|
57,127 |
|
|
56,509 |
|
EARNINGS PER SHARE
The following table shows the computation of
basic and diluted earnings per share for the periods indicated:
|
|
|
Three Months Ended |
|
Six Months Ended |
(In thousands,
except per share data) |
|
|
June 30,
2018 |
|
March 31,
2018 |
|
June 30,
2017 |
|
June 30,
2018 |
|
June 30,
2017 |
Net income |
|
|
$ |
89,580 |
|
|
$ |
81,981 |
|
|
$ |
64,897 |
|
|
$ |
171,561 |
|
|
$ |
123,275 |
|
Less: Preferred stock
dividends |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
4,100 |
|
|
5,678 |
|
Net income applicable
to common shares—Basic |
(A) |
|
87,530 |
|
|
79,931 |
|
|
62,847 |
|
|
167,461 |
|
|
117,597 |
|
Add: Dividends on
convertible preferred stock, if dilutive |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,578 |
|
Net income applicable
to common shares—Diluted |
(B) |
|
87,530 |
|
|
79,931 |
|
|
62,847 |
|
|
167,461 |
|
|
119,175 |
|
Weighted average common
shares outstanding |
(C) |
|
56,299 |
|
|
56,137 |
|
|
54,775 |
|
|
56,218 |
|
|
53,528 |
|
Effect of dilutive
potential common shares: |
|
|
|
|
|
|
|
|
|
|
|
Common
stock equivalents |
|
|
928 |
|
|
888 |
|
|
927 |
|
|
909 |
|
|
994 |
|
Convertible preferred stock, if dilutive |
|
|
— |
|
|
— |
|
|
885 |
|
|
— |
|
|
1,987 |
|
Weighted average common
shares and effect of dilutive potential common shares |
(D) |
|
57,227 |
|
|
57,025 |
|
|
56,587 |
|
|
57,127 |
|
|
56,509 |
|
Net income per common
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
(A/C) |
|
$ |
1.55 |
|
|
$ |
1.42 |
|
|
$ |
1.15 |
|
|
$ |
2.98 |
|
|
$ |
2.20 |
|
Diluted |
(B/D) |
|
$ |
1.53 |
|
|
$ |
1.40 |
|
|
$ |
1.11 |
|
|
$ |
2.93 |
|
|
$ |
2.11 |
|
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 25, 2017, 2,073 shares of the Series
C Preferred Stock were converted at the option of the respective
holder into 51,244 shares of the Company's common stock, pursuant
to the terms of the Series C Preferred Stock. On April 27,
2017, the Company caused a mandatory conversion of its outstanding
124,184 shares of Series C Preferred Stock into 3,069,828 shares of
the Company's common stock at a conversion rate of 24.72 shares of
common stock per share of Series C Preferred Stock. Cash was
paid in lieu of fractional shares for an amount considered
insignificant.
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 using tax rates effective as of the end of the period. 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 |
|
Six Months Ended |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
June 30, |
|
June 30, |
(Dollars and shares
in thousands) |
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
|
2018 |
|
2017 |
Calculation of
Net Interest Margin and Efficiency Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Interest
Income (GAAP) |
$ |
284,047 |
|
|
$ |
261,205 |
|
|
$ |
251,840 |
|
|
$ |
247,688 |
|
|
$ |
231,181 |
|
|
$ |
545,252 |
|
|
$ |
446,940 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Loans |
812 |
|
|
670 |
|
|
1,106 |
|
|
1,033 |
|
|
831 |
|
|
1,482 |
|
|
1,621 |
|
-
Liquidity Management Assets |
566 |
|
|
531 |
|
|
1,019 |
|
|
921 |
|
|
866 |
|
|
1,097 |
|
|
1,773 |
|
-
Other Earning Assets |
1 |
|
|
3 |
|
|
2 |
|
|
5 |
|
|
2 |
|
|
4 |
|
|
7 |
|
(B) Interest
Income - FTE |
$ |
285,426 |
|
|
$ |
262,409 |
|
|
$ |
253,967 |
|
|
$ |
249,647 |
|
|
$ |
232,880 |
|
|
$ |
547,835 |
|
|
$ |
450,341 |
|
(C) Interest
Expense (GAAP) |
45,877 |
|
|
36,123 |
|
|
32,741 |
|
|
31,700 |
|
|
26,772 |
|
|
82,000 |
|
|
49,951 |
|
(D) Net
Interest Income - FTE (B minus C) |
$ |
239,549 |
|
|
$ |
226,286 |
|
|
$ |
221,226 |
|
|
$ |
217,947 |
|
|
$ |
206,108 |
|
|
$ |
465,835 |
|
|
$ |
400,390 |
|
(E) Net
Interest Income (GAAP) (A minus C) |
$ |
238,170 |
|
|
$ |
225,082 |
|
|
$ |
219,099 |
|
|
$ |
215,988 |
|
|
$ |
204,409 |
|
|
$ |
463,252 |
|
|
$ |
396,989 |
|
Net interest
margin (GAAP-derived) |
3.61 |
% |
|
3.54 |
% |
|
3.45 |
% |
|
3.43 |
% |
|
3.41 |
% |
|
3.58 |
% |
|
3.38 |
% |
Net
interest margin - FTE |
3.63 |
% |
|
3.56 |
% |
|
3.49 |
% |
|
3.46 |
% |
|
3.43 |
% |
|
3.60 |
% |
|
3.41 |
% |
(F) Non-interest
income |
$ |
95,233 |
|
|
$ |
85,679 |
|
|
$ |
81,038 |
|
|
$ |
79,731 |
|
|
$ |
89,972 |
|
|
$ |
180,912 |
|
|
$ |
158,737 |
|
(G) Gains (losses) on
investment securities, net |
12 |
|
|
(351 |
) |
|
14 |
|
|
39 |
|
|
47 |
|
|
(339 |
) |
|
(8 |
) |
(H) Non-interest
expense |
206,769 |
|
|
194,349 |
|
|
196,580 |
|
|
183,575 |
|
|
183,544 |
|
|
401,118 |
|
|
351,662 |
|
Efficiency
ratio (H/(E+F-G)) |
62.02 |
% |
|
62.47 |
% |
|
65.50 |
% |
|
62.09 |
% |
|
62.36 |
% |
|
62.24 |
% |
|
63.28 |
% |
Efficiency
ratio - FTE (H/(D+F-G)) |
61.76 |
% |
|
62.23 |
% |
|
65.04 |
% |
|
61.68 |
% |
|
62.00 |
% |
|
61.99 |
% |
|
62.89 |
% |
Calculation of
Tangible Common Equity ratio (at period end) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
3,106,871 |
|
|
$ |
3,031,250 |
|
|
$ |
2,976,939 |
|
|
$ |
2,908,925 |
|
|
$ |
2,839,458 |
|
|
|
|
|
Less: Non-convertible
preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
|
|
|
Less: Intangible
assets |
(531,371 |
) |
|
(533,910 |
) |
|
(519,505 |
) |
|
(520,672 |
) |
|
(519,806 |
) |
|
|
|
|
(I) Total tangible
common shareholders’ equity |
$ |
2,450,500 |
|
|
$ |
2,372,340 |
|
|
$ |
2,332,434 |
|
|
$ |
2,263,253 |
|
|
$ |
2,194,652 |
|
|
|
|
|
Total assets |
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
|
$ |
27,915,970 |
|
|
$ |
27,358,162 |
|
|
$ |
26,929,265 |
|
|
|
|
|
Less: Intangible
assets |
(531,371 |
) |
|
(533,910 |
) |
|
(519,505 |
) |
|
(520,672 |
) |
|
(519,806 |
) |
|
|
|
|
(J) Total tangible
assets |
$ |
28,933,217 |
|
|
$ |
27,922,862 |
|
|
$ |
27,396,465 |
|
|
$ |
26,837,490 |
|
|
$ |
26,409,459 |
|
|
|
|
|
Tangible common
equity ratio (I/J) |
8.5 |
% |
|
8.5 |
% |
|
8.5 |
% |
|
8.4 |
% |
|
8.3 |
% |
|
|
|
|
Calculation of
book value per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
3,106,871 |
|
|
$ |
3,031,250 |
|
|
$ |
2,976,939 |
|
|
$ |
2,908,925 |
|
|
$ |
2,839,458 |
|
|
|
|
|
Less: Preferred
stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
|
|
|
(K) Total common
equity |
$ |
2,981,871 |
|
|
$ |
2,906,250 |
|
|
$ |
2,851,939 |
|
|
$ |
2,783,925 |
|
|
$ |
2,714,458 |
|
|
|
|
|
(L) Actual common
shares outstanding |
56,329 |
|
|
56,256 |
|
|
55,965 |
|
|
55,838 |
|
|
55,700 |
|
|
|
|
|
Book value per
common share (K/L) |
$ |
52.94 |
|
|
$ |
51.66 |
|
|
$ |
50.96 |
|
|
$ |
49.86 |
|
|
$ |
48.73 |
|
|
|
|
|
Tangible common
book value per share (I/L) |
$ |
43.50 |
|
|
$ |
42.17 |
|
|
$ |
41.68 |
|
|
$ |
40.53 |
|
|
$ |
39.40 |
|
|
|
|
|
Calculation of
return on average common equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
(M) Net income
applicable to common shares |
$ |
87,530 |
|
|
$ |
79,931 |
|
|
$ |
66,731 |
|
|
$ |
63,576 |
|
|
$ |
62,847 |
|
|
$ |
167,461 |
|
|
$ |
117,597 |
|
Add: After-tax
intangible asset amortization |
734 |
|
|
761 |
|
|
738 |
|
|
672 |
|
|
726 |
|
|
1,495 |
|
|
1,497 |
|
(N) Tangible net income
applicable to common shares |
$ |
88,264 |
|
|
$ |
80,692 |
|
|
$ |
67,469 |
|
|
$ |
64,248 |
|
|
$ |
63,573 |
|
|
$ |
168,956 |
|
|
$ |
119,094 |
|
Total average
shareholders' equity |
$ |
3,064,154 |
|
|
$ |
2,995,592 |
|
|
$ |
2,942,999 |
|
|
$ |
2,882,682 |
|
|
$ |
2,800,905 |
|
|
$ |
3,030,062 |
|
|
$ |
2,771,768 |
|
Less: Average preferred
stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(161,028 |
) |
|
(125,000 |
) |
|
(205,893 |
) |
(O) Total average
common shareholders' equity |
$ |
2,939,154 |
|
|
$ |
2,870,592 |
|
|
$ |
2,817,999 |
|
|
$ |
2,757,682 |
|
|
$ |
2,639,877 |
|
|
$ |
2,905,062 |
|
|
$ |
2,565,875 |
|
Less: Average
intangible assets |
(533,496 |
) |
|
(536,676 |
) |
|
(519,626 |
) |
|
(520,333 |
) |
|
(519,340 |
) |
|
(535,077 |
) |
|
(519,840 |
) |
(P) Total average
tangible common shareholders’ equity |
$ |
2,405,658 |
|
|
$ |
2,333,916 |
|
|
$ |
2,298,373 |
|
|
$ |
2,237,349 |
|
|
$ |
2,120,537 |
|
|
$ |
2,369,985 |
|
|
$ |
2,046,035 |
|
Return on
average common equity, annualized (M/O) |
11.94 |
% |
|
11.29 |
% |
|
9.39 |
% |
|
9.15 |
% |
|
9.55 |
% |
|
11.62 |
% |
|
9.24 |
% |
Return on
average tangible common equity, annualized (N/P) |
14.72 |
% |
|
14.02 |
% |
|
11.65 |
% |
|
11.39 |
% |
|
12.02 |
% |
|
14.38 |
% |
|
11.74 |
% |
BUSINESS UNIT SUMMARY
Community Banking
Through its community banking unit, 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 second quarter of 2018, revenue within
this unit was primarily driven by increased net interest income due
to a higher net interest margin, increased earning assets and one
additional day in the second quarter. The net interest margin
increased in the second quarter of 2018 compared to the first
quarter of 2018 primarily as a result of higher yields on the
commercial and commercial real estate loan portfolios (excluding
lease loans) and the liquidity management assets portfolio,
partially offset by higher rates on interest-bearing liabilities.
Mortgage banking revenue increased by $8.9 million from $31.0
million for the first quarter of 2018 to $39.8 million for the
second quarter of 2018. The higher revenue was primarily due to
originations during the current period increasing to $1.1 billion
from $778.9 million in the first quarter of 2018 as a result of
typical seasonality in our primary markets and one full quarter's
impact of Veterans First. Home purchases represented 80% of loan
origination volume for the second quarter of 2018. The increase in
revenue from higher originations was tempered by lower production
margins and smaller positive fair market value adjustment to
mortgage servicing rights as interest rates increased less during
the second quarter of 2018 when compared to the first quarter of
2018. The Company's gross commercial and commercial real estate
loan pipelines remain strong. Before the impact of scheduled
payments and prepayments, at June 30, 2018, gross commercial
and commercial real estate loan pipelines totaled $1.3 billion, or
$847.4 million when adjusted for the probability of closing,
compared to $1.1 billion, or $688.4 million when adjusted for the
probability of closing, at March 31, 2018.
Specialty Finance
Through its specialty finance unit, the Company
offers financing of insurance premiums for businesses and
individuals, equipment financing through structured loans and lease
products to customers in a variety of industries and accounts
receivable financing, value-added, out-sourced administrative
services, and other services. In the second quarter of 2018, 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 $2.1 billion
during the second quarter of 2018 resulted in a $232.2 million
increase in average balances. The increase in average balances
along with higher yields on these loans resulted in a $5.3 million
increase in interest income attributed to this portfolio. The
Company's leasing business remained steady during the second
quarter of 2018, with its portfolio of assets, including capital
leases, loans and equipment on operating leases, totaling $1.0
billion at the end of the second quarter of 2018. Revenues from the
Company's out-sourced administrative services business remained
steady, totaling approximately $1.2 million in the second quarter
of 2018 and $1.1 million in the first quarter of 2018.
Wealth Management
Through three separate subsidiaries within its
wealth management unit, the Company offers a full range of wealth
management services, including trust and investment services, asset
management, securities brokerage services and 401(k) and retirement
plan services. Wealth management revenue slightly decreased in the
second quarter of 2018 to $22.6 million from $23.0 million in the
first quarter of 2018. The decrease in revenue was primarily due to
a decrease in brokerage fees due to a reduction in trading activity
during the period. At June 30, 2018, the Company’s wealth
management subsidiaries had approximately $24.6 billion of assets
under administration, which includes $2.9 billion of assets owned
by the Company and its subsidiary banks, representing a $299.0
million increase from the $24.3 billion of assets under
administration at March 31, 2018. This increase in assets
under administration was primarily driven by new customers and
market appreciation. Starting in August, our brokerage services
subsidiary, Wayne Hummer Investments, LLC, will be renamed to
Wintrust Investments, LLC to better align with our Wintrust
brand.
LOANS
Loan Portfolio Mix and Growth Rates
|
|
|
|
|
|
|
|
% Growth |
(Dollars in
thousands) |
|
June 30,
2018 |
|
December 31,
2017 |
|
June 30,
2017 |
|
From (1) December 31,
2017 |
|
From
June 30,
2017 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
7,289,060 |
|
|
$ |
6,787,677 |
|
|
$ |
6,406,289 |
|
|
15 |
% |
|
14 |
% |
Commercial real estate |
|
6,575,084 |
|
|
6,580,618 |
|
|
6,402,494 |
|
|
— |
|
|
3 |
|
Home
equity |
|
593,500 |
|
|
663,045 |
|
|
689,483 |
|
|
(21 |
) |
|
(14 |
) |
Residential real estate |
|
895,470 |
|
|
832,120 |
|
|
762,810 |
|
|
15 |
|
|
17 |
|
Premium
finance receivables - commercial |
|
2,833,452 |
|
|
2,634,565 |
|
|
2,648,386 |
|
|
15 |
|
|
7 |
|
Premium
finance receivables - life insurance |
|
4,302,288 |
|
|
4,035,059 |
|
|
3,719,043 |
|
|
13 |
|
|
16 |
|
Consumer
and other |
|
121,706 |
|
|
107,713 |
|
|
114,827 |
|
|
26 |
|
|
6 |
|
Total loans, net of unearned
income, excluding covered loans |
|
$ |
22,610,560 |
|
|
$ |
21,640,797 |
|
|
$ |
20,743,332 |
|
|
9 |
% |
|
9 |
% |
Covered
loans |
|
— |
|
|
— |
|
|
50,119 |
|
|
— |
|
|
(100 |
) |
Total loans, net of unearned income |
|
$ |
22,610,560 |
|
|
$ |
21,640,797 |
|
|
$ |
20,793,451 |
|
|
9 |
% |
|
9 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
32 |
% |
|
31 |
% |
|
31 |
% |
|
|
|
|
Commercial real estate |
|
29 |
|
|
30 |
|
|
31 |
|
|
|
|
|
Home
equity |
|
3 |
|
|
3 |
|
|
3 |
|
|
|
|
|
Residential real estate |
|
4 |
|
|
4 |
|
|
3 |
|
|
|
|
|
Premium
finance receivables - commercial |
|
12 |
|
|
12 |
|
|
13 |
|
|
|
|
|
Premium
finance receivables - life insurance |
|
19 |
|
|
19 |
|
|
18 |
|
|
|
|
|
Consumer
and other |
|
1 |
|
|
1 |
|
|
1 |
|
|
|
|
|
Total loans, net of unearned
income, excluding covered loans |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
Covered
loans |
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
Total loans, net of unearned income |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
(1) Annualized
Commercial and Commercial Real Estate Loan
Portfolios
|
|
As of June 30, 2018 |
|
|
|
|
% 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 |
|
$ |
4,621,789 |
|
|
33.2 |
% |
|
$ |
13,543 |
|
|
$ |
— |
|
|
$ |
39,704 |
|
Franchise |
|
957,339 |
|
|
6.9 |
|
|
2,438 |
|
|
— |
|
|
8,743 |
|
Mortgage
warehouse lines of credit |
|
200,060 |
|
|
1.4 |
|
|
— |
|
|
— |
|
|
1,598 |
|
Asset-based lending |
|
1,042,755 |
|
|
7.5 |
|
|
2,158 |
|
|
— |
|
|
8,958 |
|
Leases |
|
458,614 |
|
|
3.3 |
|
|
249 |
|
|
— |
|
|
1,237 |
|
PCI -
commercial loans (1) |
|
8,503 |
|
|
0.1 |
|
|
— |
|
|
882 |
|
|
487 |
|
Total commercial |
|
$ |
7,289,060 |
|
|
52.4 |
% |
|
$ |
18,388 |
|
|
$ |
882 |
|
|
$ |
60,727 |
|
Commercial Real
Estate: |
|
|
|
|
|
|
|
|
|
|
Construction |
|
$ |
807,235 |
|
|
5.8 |
% |
|
$ |
1,554 |
|
|
$ |
— |
|
|
$ |
9,337 |
|
Land |
|
115,357 |
|
|
0.8 |
|
|
228 |
|
|
— |
|
|
3,716 |
|
Office |
|
894,349 |
|
|
6.5 |
|
|
1,333 |
|
|
— |
|
|
5,971 |
|
Industrial |
|
882,525 |
|
|
6.4 |
|
|
185 |
|
|
— |
|
|
5,902 |
|
Retail |
|
867,639 |
|
|
6.3 |
|
|
11,540 |
|
|
— |
|
|
8,085 |
|
Multi-family |
|
952,048 |
|
|
6.9 |
|
|
342 |
|
|
— |
|
|
9,688 |
|
Mixed use
and other |
|
1,949,242 |
|
|
14.1 |
|
|
4,013 |
|
|
— |
|
|
14,859 |
|
PCI -
commercial real estate (1) |
|
106,689 |
|
|
0.8 |
|
|
— |
|
|
3,194 |
|
|
102 |
|
Total commercial real
estate |
|
$ |
6,575,084 |
|
|
47.6 |
% |
|
$ |
19,195 |
|
|
$ |
3,194 |
|
|
$ |
57,660 |
|
Total commercial and commercial
real estate |
|
$ |
13,864,144 |
|
|
100.0 |
% |
|
$ |
37,583 |
|
|
$ |
4,076 |
|
|
$ |
118,387 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
- collateral location by state: |
|
|
|
|
|
|
|
|
|
|
Illinois |
|
$ |
5,100,132 |
|
|
77.6 |
% |
|
|
|
|
|
|
Wisconsin |
|
726,874 |
|
|
11.1 |
|
|
|
|
|
|
|
Total primary
markets |
|
$ |
5,827,006 |
|
|
88.7 |
% |
|
|
|
|
|
|
Indiana |
|
153,807 |
|
|
2.3 |
|
|
|
|
|
|
|
Florida |
|
51,143 |
|
|
0.8 |
|
|
|
|
|
|
|
Arizona |
|
55,171 |
|
|
0.8 |
|
|
|
|
|
|
|
Michigan |
|
45,670 |
|
|
0.7 |
|
|
|
|
|
|
|
California |
|
68,459 |
|
|
1.0 |
|
|
|
|
|
|
|
Other (no
individual state greater than 0.6%) |
|
373,828 |
|
|
5.7 |
|
|
|
|
|
|
|
Total |
|
$ |
6,575,084 |
|
|
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) |
|
June 30,
2018 |
|
December 31,
2017 |
|
June 30,
2017 |
|
From (1) December 31,
2017 |
|
From
June 30,
2017 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
6,520,724 |
|
|
$ |
6,792,497 |
|
|
$ |
6,294,052 |
|
|
(8 |
)% |
|
4 |
% |
NOW and
interest bearing demand deposits |
|
2,452,474 |
|
|
2,315,055 |
|
|
2,459,238 |
|
|
12 |
|
|
— |
|
Wealth
management deposits (2) |
|
2,523,572 |
|
|
2,323,699 |
|
|
2,464,162 |
|
|
17 |
|
|
2 |
|
Money
market |
|
5,205,678 |
|
|
4,515,353 |
|
|
4,449,385 |
|
|
31 |
|
|
17 |
|
Savings |
|
2,763,062 |
|
|
2,829,373 |
|
|
2,419,463 |
|
|
(5 |
) |
|
14 |
|
Time
certificates of deposit |
|
4,899,969 |
|
|
4,407,370 |
|
|
4,519,392 |
|
|
23 |
|
|
8 |
|
Total deposits |
|
$ |
24,365,479 |
|
|
$ |
23,183,347 |
|
|
$ |
22,605,692 |
|
|
10 |
% |
|
8 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
27 |
% |
|
29 |
% |
|
28 |
% |
|
|
|
|
NOW and
interest bearing demand deposits |
|
10 |
|
|
10 |
|
|
11 |
|
|
|
|
|
Wealth
management deposits (2) |
|
11 |
|
|
10 |
|
|
11 |
|
|
|
|
|
Money
market |
|
21 |
|
|
20 |
|
|
19 |
|
|
|
|
|
Savings |
|
11 |
|
|
12 |
|
|
11 |
|
|
|
|
|
Time
certificates of deposit |
|
20 |
|
|
19 |
|
|
20 |
|
|
|
|
|
Total deposits |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
- Annualized
- 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 June 30, 2018
(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 |
|
$ |
— |
|
|
$ |
36,755 |
|
|
$ |
112,055 |
|
|
$ |
698,040 |
|
|
$ |
846,850 |
|
|
1.02 |
% |
4-6 months |
|
75,008 |
|
|
25,935 |
|
|
— |
|
|
735,477 |
|
|
836,420 |
|
|
1.31 |
% |
7-9 months |
|
— |
|
|
16,035 |
|
|
— |
|
|
715,993 |
|
|
732,028 |
|
|
1.40 |
% |
10-12 months |
|
249 |
|
|
21,114 |
|
|
— |
|
|
761,277 |
|
|
782,640 |
|
|
1.59 |
% |
13-18 months |
|
— |
|
|
22,937 |
|
|
— |
|
|
706,818 |
|
|
729,755 |
|
|
1.61 |
% |
19-24 months |
|
— |
|
|
13,810 |
|
|
— |
|
|
631,437 |
|
|
645,247 |
|
|
2.18 |
% |
24+ months |
|
1,000 |
|
|
9,124 |
|
|
— |
|
|
316,905 |
|
|
327,029 |
|
|
1.87 |
% |
Total |
|
$ |
76,257 |
|
|
$ |
145,710 |
|
|
$ |
112,055 |
|
|
$ |
4,565,947 |
|
|
$ |
4,899,969 |
|
|
1.52 |
% |
- This category of certificates of deposit is shown by
contractual maturity date.
- This category includes variable rate certificates of
deposit and savings certificates with the majority repricing on at
least a monthly basis.
- 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 second quarter of 2018 compared to the first quarter of 2018
(sequential quarters) and second quarter of 2017 (linked quarters),
respectively:
|
Average Balance for three months
ended, |
|
Interest for three months
ended, |
|
Yield/Rate for three months
ended, |
(Dollars in
thousands) |
June 30,
2018 |
|
March 31,
2018 |
|
June 30,
2017 |
|
June 30,
2018 |
|
March 31,
2018 |
|
June 30,
2017 |
|
June 30,
2018 |
|
March 31,
2018 |
|
June 30,
2017 |
Interest-bearing
deposits with banks and cash equivalents(1) |
$ |
759,425 |
|
|
$ |
749,973 |
|
|
$ |
722,349 |
|
|
$ |
3,244 |
|
|
$ |
2,796 |
|
|
$ |
1,635 |
|
|
1.71 |
% |
|
1.51 |
% |
|
0.91 |
% |
Investment
securities(2) |
2,890,828 |
|
|
2,892,617 |
|
|
2,572,619 |
|
|
20,454 |
|
|
19,659 |
|
|
16,390 |
|
|
2.84 |
|
|
2.76 |
|
|
2.55 |
|
FHLB and FRB stock |
115,119 |
|
|
105,414 |
|
|
99,438 |
|
|
1,455 |
|
|
1,298 |
|
|
1,153 |
|
|
5.07 |
% |
|
4.99 |
|
|
4.66 |
|
Liquidity management
assets(3)(8) |
$ |
3,765,372 |
|
|
$ |
3,748,004 |
|
|
$ |
3,394,406 |
|
|
$ |
25,153 |
|
|
$ |
23,753 |
|
|
$ |
19,178 |
|
|
2.68 |
% |
|
2.57 |
% |
|
2.27 |
% |
Other earning
assets(3)(4)(8) |
21,244 |
|
|
27,571 |
|
|
25,749 |
|
|
172 |
|
|
174 |
|
|
162 |
|
|
3.24 |
|
|
2.56 |
|
|
2.53 |
|
Mortgage loans
held-for-sale |
403,967 |
|
|
281,181 |
|
|
334,843 |
|
|
4,226 |
|
|
2,818 |
|
|
3,420 |
|
|
4.20 |
|
|
4.06 |
|
|
4.10 |
|
Loans, net of
unearned
income(3)(5)(8) |
22,283,541 |
|
|
21,711,342 |
|
|
20,264,875 |
|
|
255,875 |
|
|
235,664 |
|
|
209,472 |
|
|
4.61 |
|
|
4.40 |
|
|
4.15 |
|
Covered loans |
— |
|
|
— |
|
|
51,823 |
|
|
— |
|
|
— |
|
|
648 |
|
|
— |
|
|
— |
|
|
5.01 |
|
Total
earning assets(8) |
$ |
26,474,124 |
|
|
$ |
25,768,098 |
|
|
$ |
24,071,696 |
|
|
$ |
285,426 |
|
|
$ |
262,409 |
|
|
$ |
232,880 |
|
|
4.32 |
% |
|
4.13 |
% |
|
3.88 |
% |
Allowance for loan and
covered loan losses |
(147,192 |
) |
|
(143,108 |
) |
|
(132,053 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
270,240 |
|
|
254,489 |
|
|
242,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
1,970,407 |
|
|
1,930,118 |
|
|
1,868,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
28,567,579 |
|
|
$ |
27,809,597 |
|
|
$ |
26,050,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest
bearing demand deposits |
$ |
2,295,268 |
|
|
$ |
2,255,692 |
|
|
$ |
2,470,130 |
|
|
$ |
1,901 |
|
|
$ |
1,386 |
|
|
$ |
1,214 |
|
|
0.33 |
% |
|
0.25 |
% |
|
0.20 |
% |
Wealth management
deposits |
2,365,191 |
|
|
2,250,139 |
|
|
2,091,251 |
|
|
6,992 |
|
|
5,441 |
|
|
2,867 |
|
|
1.19 |
|
|
0.98 |
|
|
0.55 |
|
Money market
accounts |
4,883,645 |
|
|
4,520,620 |
|
|
4,435,670 |
|
|
8,111 |
|
|
4,667 |
|
|
2,707 |
|
|
0.67 |
|
|
0.42 |
|
|
0.24 |
|
Savings accounts |
2,702,665 |
|
|
2,813,772 |
|
|
2,329,195 |
|
|
2,709 |
|
|
2,732 |
|
|
1,508 |
|
|
0.40 |
|
|
0.39 |
|
|
0.26 |
|
Time deposits |
4,557,187 |
|
|
4,322,111 |
|
|
4,295,428 |
|
|
15,580 |
|
|
12,323 |
|
|
10,175 |
|
|
1.37 |
|
|
1.16 |
|
|
0.95 |
|
Interest-bearing
deposits |
$ |
16,803,956 |
|
|
$ |
16,162,334 |
|
|
$ |
15,621,674 |
|
|
$ |
35,293 |
|
|
$ |
26,549 |
|
|
$ |
18,471 |
|
|
0.84 |
% |
|
0.67 |
% |
|
0.47 |
% |
Federal Home Loan Bank
advances |
1,006,407 |
|
|
872,811 |
|
|
689,600 |
|
|
4,263 |
|
|
3,639 |
|
|
2,933 |
|
|
1.70 |
|
|
1.69 |
|
|
1.71 |
|
Other borrowings |
240,066 |
|
|
263,125 |
|
|
240,547 |
|
|
1,698 |
|
|
1,699 |
|
|
1,149 |
|
|
2.84 |
|
|
2.62 |
|
|
1.92 |
|
Subordinated notes |
139,125 |
|
|
139,094 |
|
|
139,007 |
|
|
1,787 |
|
|
1,773 |
|
|
1,786 |
|
|
5.14 |
|
|
5.10 |
|
|
5.14 |
|
Junior subordinated
debentures |
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
2,836 |
|
|
2,463 |
|
|
2,433 |
|
|
4.42 |
|
|
3.89 |
|
|
3.80 |
|
Total
interest-bearing liabilities |
$ |
18,443,120 |
|
|
$ |
17,690,930 |
|
|
$ |
16,944,394 |
|
|
$ |
45,877 |
|
|
$ |
36,123 |
|
|
$ |
26,772 |
|
|
1.00 |
% |
|
0.83 |
% |
|
0.63 |
% |
Non-interest bearing
deposits |
6,539,731 |
|
|
6,639,845 |
|
|
5,904,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
520,574 |
|
|
483,230 |
|
|
400,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
3,064,154 |
|
|
2,995,592 |
|
|
2,800,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders’ equity |
$ |
28,567,579 |
|
|
$ |
27,809,597 |
|
|
$ |
26,050,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread(6)(8) |
|
|
|
|
|
|
|
|
|
|
|
|
3.32 |
% |
|
3.30 |
% |
|
3.25 |
% |
Less: Fully
tax-equivalent adjustment |
|
|
|
|
|
|
(1,379 |
) |
|
(1,204 |
) |
|
(1,699 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
Net free
funds/contribution(7) |
$ |
8,031,004 |
|
|
$ |
8,077,168 |
|
|
$ |
7,127,302 |
|
|
|
|
|
|
|
|
0.31 |
|
|
0.26 |
|
|
0.18 |
|
Net interest income/
margin(8) (GAAP) |
|
|
|
|
|
|
$ |
238,170 |
|
|
$ |
225,082 |
|
|
$ |
204,409 |
|
|
3.61 |
% |
|
3.54 |
% |
|
3.41 |
% |
Fully tax-equivalent
adjustment |
|
|
|
|
|
|
1,379 |
|
|
1,204 |
|
|
1,699 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
Net interest income/
margin - FTE (8) |
|
|
|
|
|
|
$ |
239,549 |
|
|
$ |
226,286 |
|
|
$ |
206,108 |
|
|
3.63 |
% |
|
3.56 |
% |
|
3.43 |
% |
- Includes interest-bearing deposits from banks, federal
funds sold and securities purchased under resale
agreements.
- Investment securities includes investment securities
classified as available-for-sale and held-to-maturity, and equity
securities with readily determinable fair values. Equity securities
without readily determinable fair values are included within other
assets.
- Interest income on tax-advantaged loans, trading securities
and investment securities reflects a tax-equivalent adjustment
based on the marginal federal corporate tax rate in effect as of
the applicable period. The total adjustments for the three months
ended June 30, 2018, March 31, 2018 and June 30, 2017
were $1.4 million, $1.2 million and $1.7 million,
respectively.
- Other earning assets include brokerage customer receivables
and trading account securities.
- Loans, net of unearned income, include non-accrual
loans.
- Interest rate spread is the difference between the yield
earned on earning assets and the rate paid on interest-bearing
liabilities.
- 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.
- See “Supplemental Financial Measures/Ratios” for additional
information on this performance ratio.
For the second quarter of 2018, net interest
income totaled $238.2 million, an increase of $13.1 million as
compared to the first quarter of 2018 and an increase of $33.8
million as compared to the second quarter of 2017. Net interest
margin was 3.61% (3.63% on a fully tax-equivalent basis) during the
second quarter of 2018 compared to 3.54% (3.56% on a fully
tax-equivalent basis) during the first quarter of 2018 and 3.41%
(3.43% on a fully tax-equivalent basis) during the second quarter
of 2017. The $13.1 million increase in net interest income in the
second quarter of 2018 compared to the first quarter of 2018 was
attributable to a $6.2 million increase from higher levels of
earning assets, a $4.4 million increase from rising rates and a
$2.5 million increase due to one more day in the quarter.
The following table presents a summary of
Wintrust's average balances, net interest income and related
interest margins, calculated on a fully tax-equivalent basis, for
six months ended June 30, 2018 compared to six months ended
June 30, 2017:
|
Average Balance for six months
ended, |
|
Interest for six months
ended, |
|
Yield/Rate for six months
ended, |
(Dollars in
thousands) |
June 30,
2018 |
|
June 30,
2017 |
|
June 30,
2018 |
|
June 30,
2017 |
|
June 30,
2018 |
|
June 30,
2017 |
Interest-bearing
deposits with banks and cash equivalents (1) |
$ |
754,725 |
|
|
$ |
751,389 |
|
|
$ |
6,040 |
|
|
$ |
3,259 |
|
|
1.61 |
% |
|
0.87 |
% |
Investment securities
(2) |
2,891,718 |
|
|
2,484,611 |
|
|
40,113 |
|
|
30,870 |
|
|
2.80 |
|
|
2.51 |
|
FHLB and FRB stock |
110,293 |
|
|
96,779 |
|
|
2,753 |
|
|
2,223 |
|
|
5.04 |
|
|
4.64 |
|
Liquidity management
assets(3)(8) |
$ |
3,756,736 |
|
|
$ |
3,332,779 |
|
|
$ |
48,906 |
|
|
$ |
36,352 |
|
|
2.63 |
% |
|
2.20 |
% |
Other earning
assets(3)(4)(8) |
24,390 |
|
|
25,494 |
|
|
346 |
|
|
345 |
|
|
2.86 |
|
|
2.73 |
|
Mortgage loans
held-for-sale |
342,914 |
|
|
302,021 |
|
|
7,044 |
|
|
5,818 |
|
|
4.14 |
|
|
3.88 |
|
Loans, net of unearned
income(3)(5)(8) |
21,999,022 |
|
|
19,961,821 |
|
|
491,539 |
|
|
406,260 |
|
|
4.51 |
|
|
4.10 |
|
Covered loans |
— |
|
|
54,505 |
|
|
— |
|
|
1,566 |
|
|
— |
|
|
5.79 |
|
Total
earning assets(8) |
$ |
26,123,062 |
|
|
$ |
23,676,620 |
|
|
$ |
547,835 |
|
|
$ |
450,341 |
|
|
4.23 |
% |
|
3.84 |
% |
Allowance for loan and
covered loan losses |
(145,161 |
) |
|
(129,751 |
) |
|
|
|
|
|
|
|
|
Cash and due from
banks |
262,408 |
|
|
236,077 |
|
|
|
|
|
|
|
|
|
Other assets |
1,950,374 |
|
|
1,849,058 |
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
28,190,683 |
|
|
$ |
25,632,004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest
bearing demand deposits |
$ |
2,275,589 |
|
|
$ |
2,491,247 |
|
|
$ |
3,286 |
|
|
$ |
2,307 |
|
|
0.29 |
% |
|
0.19 |
% |
Wealth management
deposits |
2,307,983 |
|
|
2,086,793 |
|
|
12,433 |
|
|
5,179 |
|
|
1.09 |
|
|
0.50 |
|
Money market
accounts |
4,703,135 |
|
|
4,421,863 |
|
|
12,778 |
|
|
4,928 |
|
|
0.55 |
|
|
0.22 |
|
Savings accounts |
2,757,911 |
|
|
2,278,392 |
|
|
5,440 |
|
|
2,837 |
|
|
0.40 |
|
|
0.25 |
|
Time deposits |
4,440,299 |
|
|
4,266,308 |
|
|
27,905 |
|
|
19,490 |
|
|
1.27 |
|
|
0.92 |
|
Interest-bearing
deposits |
$ |
16,484,917 |
|
|
$ |
15,544,603 |
|
|
$ |
61,842 |
|
|
$ |
34,741 |
|
|
0.76 |
% |
|
0.45 |
% |
Federal Home Loan Bank
advances |
939,978 |
|
|
436,873 |
|
|
7,902 |
|
|
4,523 |
|
|
1.70 |
|
|
2.09 |
|
Other borrowings |
251,532 |
|
|
247,740 |
|
|
3,397 |
|
|
2,288 |
|
|
2.72 |
|
|
1.86 |
|
Subordinated notes |
139,110 |
|
|
138,994 |
|
|
3,560 |
|
|
3,558 |
|
|
5.12 |
|
|
5.12 |
|
Junior subordinated
debentures |
253,566 |
|
|
253,566 |
|
|
5,299 |
|
|
4,841 |
|
|
4.16 |
|
|
3.80 |
|
Total
interest-bearing liabilities |
$ |
18,069,103 |
|
|
$ |
16,621,776 |
|
|
$ |
82,000 |
|
|
$ |
49,951 |
|
|
0.91 |
% |
|
0.60 |
% |
Non-interest bearing
deposits |
6,589,511 |
|
|
5,845,083 |
|
|
|
|
|
|
|
|
|
Other liabilities |
502,007 |
|
|
393,377 |
|
|
|
|
|
|
|
|
|
Equity |
3,030,062 |
|
|
2,771,768 |
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders’ equity |
$ |
28,190,683 |
|
|
$ |
25,632,004 |
|
|
|
|
|
|
|
|
|
Interest rate
spread(6)(8) |
|
|
|
|
|
|
|
|
3.32 |
% |
|
3.24 |
% |
Less: Fully
tax-equivalent adjustment |
|
|
|
|
(2,583 |
) |
|
(3,401 |
) |
|
(0.02 |
) |
|
(0.03 |
) |
Net free
funds/contribution(7) |
$ |
8,053,959 |
|
|
$ |
7,054,844 |
|
|
|
|
|
|
0.28 |
|
|
0.17 |
|
Net interest income/
margin(8) (GAAP) |
|
|
|
|
$ |
463,252 |
|
|
$ |
396,989 |
|
|
3.58 |
% |
|
3.38 |
% |
Fully tax-equivalent
adjustment |
|
|
|
|
2,583 |
|
|
3,401 |
|
|
0.02 |
|
|
0.03 |
|
Net interest income/
margin - FTE (8) |
|
|
|
|
$ |
465,835 |
|
|
$ |
400,390 |
|
|
3.60 |
% |
|
3.41 |
% |
- Includes interest-bearing deposits from banks, federal
funds sold and securities purchased under resale
agreements.
- Investment securities includes investment securities
classified as available-for-sale and held-to-maturity, and equity
securities with readily determinable fair values. Equity securities
without readily determinable fair values are included within other
assets.
- Interest income on tax-advantaged loans, trading securities
and investment securities reflects a tax-equivalent adjustment
based on a marginal federal corporate tax rate in effect as of the
applicable period. The total adjustments for the six months ended
June 30, 2018 and 2017 were $2.6 million and $3.4 million
respectively.
- Other earning assets include brokerage customer receivables
and trading account securities.
- Loans, net of unearned income, include non-accrual
loans.
- Interest rate spread is the difference between the yield
earned on earning assets and the rate paid on interest-bearing
liabilities.
- 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.
- See “Supplemental Financial Measures/Ratios” for additional
information on this performance ratio.
For the first six months of 2018 net interest
income totaled $463.3 million, an increase of $66.3 million as
compared to the first six months of 2017. Net interest margin was
3.58% (3.60% on a fully tax-equivalent basis) for the first six
months of 2018 compared to 3.38% (3.41% on a fully tax-equivalent
basis) for the first six months of 2017. The $66.3 million increase
in net interest income in the first six months of 2018 compared to
the same period of 2017 was attributable to a $39.0 million
increase from higher levels of earning assets and a $27.3 million
increase from rising rates.
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 June 30,
2018, March 31, 2018 and June 30, 2017 is as
follows:
|
|
|
|
|
|
Static Shock
Scenario |
|
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
June 30,
2018 |
|
19.3 |
% |
|
9.7 |
% |
|
(10.7 |
)% |
March 31, 2018 |
|
18.8 |
% |
|
9.7 |
% |
|
(11.6 |
)% |
June 30, 2017 |
|
19.3 |
% |
|
10.4 |
% |
|
(13.5 |
)% |
Ramp
Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
June 30,
2018 |
8.7 |
% |
|
4.5 |
% |
|
(4.4 |
)% |
March 31, 2018 |
9.0 |
% |
|
4.6 |
% |
|
(4.8 |
)% |
June 30, 2017 |
7.8 |
% |
|
4.0 |
% |
|
(4.6 |
)% |
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 at June 30, 2018 by date at which the loans reprice
or mature, and the type of rate exposure:
As of June 30,
2018 |
One year or less |
|
From one to five
years |
|
Over five years |
|
|
(Dollars in
thousands) |
|
|
|
Total |
Commercial |
|
|
|
|
|
|
|
Fixed
rate |
$ |
146,138 |
|
|
$ |
919,964 |
|
|
$ |
611,043 |
|
|
$ |
1,677,145 |
|
Variable
rate |
5,608,722 |
|
|
3,193 |
|
|
— |
|
|
5,611,915 |
|
Total
commercial |
$ |
5,754,860 |
|
|
$ |
923,157 |
|
|
$ |
611,043 |
|
|
$ |
7,289,060 |
|
Commercial real
estate |
|
|
|
|
|
|
|
Fixed
rate |
391,292 |
|
|
1,793,231 |
|
|
267,142 |
|
|
2,451,665 |
|
Variable
rate |
4,093,746 |
|
|
29,522 |
|
|
151 |
|
|
4,123,419 |
|
Total
commercial real estate |
$ |
4,485,038 |
|
|
$ |
1,822,753 |
|
|
$ |
267,293 |
|
|
$ |
6,575,084 |
|
Home equity |
|
|
|
|
|
|
|
Fixed
rate |
10,778 |
|
|
7,900 |
|
|
25,751 |
|
|
44,429 |
|
Variable
rate |
549,071 |
|
|
— |
|
|
— |
|
|
549,071 |
|
Total
home equity |
$ |
559,849 |
|
|
$ |
7,900 |
|
|
$ |
25,751 |
|
|
$ |
593,500 |
|
Residential real
estate |
|
|
|
|
|
|
|
Fixed
rate |
39,358 |
|
|
26,430 |
|
|
197,436 |
|
|
263,224 |
|
Variable
rate |
62,023 |
|
|
246,611 |
|
|
323,612 |
|
|
632,246 |
|
Total
residential real estate |
$ |
101,381 |
|
|
$ |
273,041 |
|
|
$ |
521,048 |
|
|
$ |
895,470 |
|
Premium finance
receivables - commercial |
|
|
|
|
|
|
|
Fixed
rate |
2,755,795 |
|
|
77,657 |
|
|
— |
|
|
2,833,452 |
|
Variable
rate |
— |
|
|
— |
|
|
— |
|
|
— |
|
Total
premium finance receivables - commercial |
$ |
2,755,795 |
|
|
$ |
77,657 |
|
|
$ |
— |
|
|
$ |
2,833,452 |
|
Premium finance
receivables - life insurance |
|
|
|
|
|
|
|
Fixed
rate |
12,778 |
|
|
2,855 |
|
|
3,937 |
|
|
19,570 |
|
Variable
rate |
4,282,718 |
|
|
— |
|
|
— |
|
|
4,282,718 |
|
Total
premium finance receivables - life insurance |
$ |
4,295,496 |
|
|
$ |
2,855 |
|
|
$ |
3,937 |
|
|
$ |
4,302,288 |
|
Consumer and other |
|
|
|
|
|
|
|
Fixed
rate |
68,038 |
|
|
11,498 |
|
|
2,496 |
|
|
82,032 |
|
Variable
rate |
39,674 |
|
|
— |
|
|
— |
|
|
39,674 |
|
Total
consumer and other |
$ |
107,712 |
|
|
$ |
11,498 |
|
|
$ |
2,496 |
|
|
$ |
121,706 |
|
Total per category |
|
|
|
|
|
|
|
Fixed
rate |
3,424,177 |
|
|
2,839,535 |
|
|
1,107,805 |
|
|
7,371,517 |
|
Variable
rate |
14,635,954 |
|
|
279,326 |
|
|
323,763 |
|
|
15,239,043 |
|
Total loans, net of unearned income |
$ |
18,060,131 |
|
|
$ |
3,118,861 |
|
|
$ |
1,431,568 |
|
|
$ |
22,610,560 |
|
Variable
Rate Loan Pricing by Index: |
|
|
|
|
|
|
|
Prime |
$ |
2,596,588 |
|
|
|
|
|
|
|
One-
month LIBOR |
7,538,044 |
|
|
|
|
|
|
|
Three-
month LIBOR |
482,723 |
|
|
|
|
|
|
|
Twelve-
month LIBOR |
4,384,194 |
|
|
|
|
|
|
|
Other |
237,494 |
|
|
|
|
|
|
|
Total variable rate |
$ |
15,239,043 |
|
|
|
|
|
|
|
http://resource.globenewswire.com/Resource/Download/3da6161d-7cc3-4410-a2cd-6b0d8c6821bf
Source: Bloomberg
As noted in the table on the previous page, the
majority of the Company’s portfolio is tied to LIBOR indices which,
as shown in the table above, do not mirror the same increases as
the Prime rate when the Federal Reserve raises interest
rates. Specifically, the Company has $7.5 billion of variable
rate loans tied to one-month LIBOR and $4.4 billion of variable
rate loans tied to twelve-month LIBOR. The above chart shows:
|
|
Changes in |
|
|
Prime |
|
1-month
LIBOR |
|
12-month
LIBOR |
Third Quarter 2017 |
|
0
bps |
|
+1
bps |
|
+4
bps |
Fourth Quarter
2017 |
|
+25
bps |
|
+33
bps |
|
+33
bps |
First Quarter 2018 |
|
+25
bps |
|
+32
bps |
|
+55
bps |
Second Quarter
2018 |
|
+25
bps |
|
+21
bps |
|
+10
bps |
NON-INTEREST INCOME
The following table presents non-interest income by category for
the periods presented:
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
Q2 2018 compared to
Q1 2018 |
|
Q2 2018 compared to
Q2 2017 |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
|
$ |
5,784 |
|
|
$ |
6,031 |
|
|
$ |
5,449 |
|
|
$ |
(247 |
) |
|
(4 |
)% |
|
$ |
335 |
|
|
6 |
% |
Trust and asset
management |
|
16,833 |
|
|
16,955 |
|
|
14,456 |
|
|
(122 |
) |
|
(1 |
) |
|
2,377 |
|
|
16 |
|
Total
wealth management |
|
22,617 |
|
|
22,986 |
|
|
19,905 |
|
|
(369 |
) |
|
(2 |
) |
|
2,712 |
|
|
14 |
|
Mortgage banking |
|
39,834 |
|
|
30,960 |
|
|
35,939 |
|
|
8,874 |
|
|
29 |
|
|
3,895 |
|
|
11 |
|
Service charges on
deposit accounts |
|
9,151 |
|
|
8,857 |
|
|
8,696 |
|
|
294 |
|
|
3 |
|
|
455 |
|
|
5 |
|
Gains (losses) on
investment securities, net |
|
12 |
|
|
(351 |
) |
|
47 |
|
|
363 |
|
|
NM |
|
(35 |
) |
|
(74 |
) |
Fees from covered call
options |
|
669 |
|
|
1,597 |
|
|
890 |
|
|
(928 |
) |
|
(58 |
) |
|
(221 |
) |
|
(25 |
) |
Trading gains (losses),
net |
|
124 |
|
|
103 |
|
|
(420 |
) |
|
21 |
|
|
20 |
|
|
544 |
|
|
NM |
Operating lease income,
net |
|
8,746 |
|
|
9,691 |
|
|
6,805 |
|
|
(945 |
) |
|
(10 |
) |
|
1,941 |
|
|
29 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
rate swap fees |
|
3,829 |
|
|
2,237 |
|
|
2,221 |
|
|
1,592 |
|
|
71 |
|
|
1,608 |
|
|
72 |
|
BOLI |
|
1,544 |
|
|
714 |
|
|
888 |
|
|
830 |
|
|
NM |
|
656 |
|
|
74 |
|
Administrative services |
|
1,205 |
|
|
1,061 |
|
|
986 |
|
|
144 |
|
|
14 |
|
|
219 |
|
|
22 |
|
Early
pay-offs of capital leases |
|
554 |
|
|
33 |
|
|
10 |
|
|
521 |
|
|
NM |
|
544 |
|
|
NM |
Miscellaneous |
|
6,948 |
|
|
7,791 |
|
|
14,005 |
|
|
(843 |
) |
|
(11 |
) |
|
(7,057 |
) |
|
(50 |
) |
Total
Other |
|
14,080 |
|
|
11,836 |
|
|
18,110 |
|
|
2,244 |
|
|
19 |
|
|
(4,030 |
) |
|
(22 |
) |
Total Non-Interest
Income |
|
$ |
95,233 |
|
|
$ |
85,679 |
|
|
$ |
89,972 |
|
|
$ |
9,554 |
|
|
11 |
% |
|
$ |
5,261 |
|
|
6 |
% |
|
|
Six Months Ended |
|
|
|
|
|
|
June 30, |
|
June 30, |
|
$ |
|
% |
(Dollars in
thousands) |
|
2018 |
|
2017 |
|
Change |
|
Change |
Brokerage |
|
11,815 |
|
|
11,669 |
|
|
$ |
146 |
|
|
1 |
% |
Trust and asset
management |
|
33,788 |
|
|
28,384 |
|
|
5,404 |
|
|
19 |
|
Total
wealth management |
|
45,603 |
|
|
40,053 |
|
|
5,550 |
|
|
14 |
|
Mortgage banking |
|
70,794 |
|
|
57,877 |
|
|
12,917 |
|
|
22 |
|
Service charges on
deposit accounts |
|
18,008 |
|
|
16,961 |
|
|
1,047 |
|
|
6 |
|
Losses on investment
securities, net |
|
(339 |
) |
|
(8 |
) |
|
(331 |
) |
|
NM |
Fees from covered call
options |
|
2,266 |
|
|
1,649 |
|
|
617 |
|
|
37 |
|
Trading gains (losses),
net |
|
227 |
|
|
(740 |
) |
|
967 |
|
|
NM |
Operating lease income,
net |
|
18,437 |
|
|
12,587 |
|
|
5,850 |
|
|
46 |
|
Other: |
|
|
|
|
|
|
|
|
Interest
rate swap fees |
|
6,066 |
|
|
3,654 |
|
|
2,412 |
|
|
66 |
|
BOLI |
|
2,258 |
|
|
1,873 |
|
|
385 |
|
|
21 |
|
Administrative services |
|
2,266 |
|
|
2,010 |
|
|
256 |
|
|
13 |
|
Early
pay-offs of capital leases |
|
587 |
|
|
1,221 |
|
|
(634 |
) |
|
(52 |
) |
Miscellaneous |
|
14,739 |
|
|
21,600 |
|
|
(6,861 |
) |
|
(32 |
) |
Total
Other |
|
25,916 |
|
|
30,358 |
|
|
(4,442 |
) |
|
(15 |
) |
Total Non-Interest
Income |
|
180,912 |
|
|
158,737 |
|
|
$ |
22,175 |
|
|
14 |
% |
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 same period of 2017 is
primarily attributable to growth in assets under management along
with market appreciation related to managed money accounts with
fees based on assets under management. 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 increase in mortgage banking revenue in the
current quarter as compared to the first quarter of 2018 resulted
primarily from higher origination volumes as a result of typical
seasonality in our primary markets and one full quarter's impact of
Veterans First. Mortgage loans originated or purchased for sale
totaled $1.1 billion in the second quarter of 2018 as compared to
$778.9 million in the first quarter of 2018 and $1.1 billion in the
second quarter of 2017. The increase from higher originations was
tempered by lower production margins and smaller positive fair
market value adjustment to mortgage servicing rights as interest
rates increased less during the second quarter of 2018 when
compared to the first quarter of 2018. 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 mortgage servicing rights as the Company does not hedge
this change in fair value. The Company typically originates
mortgage loans held-for-sale with associated mortgage servicing
rights ("MSRs") retained or released. Additionally, through the
acquisition of Veterans First, the Company acquired approximately
$13.8 million of MSRs in the first quarter of 2018. 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 |
|
Six Months Ended |
(Dollars in
thousands) |
|
|
June 30,
2018 |
|
March 31,
2018 |
|
June 30,
2017 |
|
June 30,
2018 |
|
June 30,
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
originations |
|
|
$ |
769,279 |
|
|
539,911 |
|
|
$ |
963,396 |
|
|
$ |
1,309,190 |
|
|
$ |
1,588,367 |
|
Correspondent
originations |
|
|
122,986 |
|
|
126,464 |
|
|
170,862 |
|
|
249,450 |
|
|
268,358 |
|
Veterans First
originations |
|
|
204,108 |
|
|
112,477 |
|
|
— |
|
|
316,585 |
|
|
— |
|
Total
originations (A) |
|
|
$ |
1,096,373 |
|
|
778,852 |
|
|
$ |
1,134,258 |
|
|
$ |
1,875,225 |
|
|
$ |
1,856,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases as a
percentage of originations |
|
|
80 |
% |
|
73 |
% |
|
84 |
% |
|
77 |
% |
|
77 |
% |
Refinances as a
percentage of originations |
|
|
20 |
|
|
27 |
|
|
16 |
|
|
23 |
|
|
23 |
|
Total |
|
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Production
Margin: |
|
|
|
|
|
|
|
|
|
|
|
Production revenue (B)
(1) |
|
|
$ |
27,814 |
|
|
$ |
20,526 |
|
|
$ |
28,140 |
|
|
$ |
48,340 |
|
|
$ |
45,817 |
|
Production margin (B /
A) |
|
|
2.54 |
% |
|
2.64 |
% |
|
2.48 |
% |
|
2.58 |
% |
|
2.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Servicing: |
|
|
|
|
|
|
|
|
|
|
|
Loans serviced for
others (C) |
|
|
$ |
5,228,699 |
|
|
$ |
4,795,335 |
|
|
$ |
2,303,435 |
|
|
|
|
|
MSRs, at fair value
(D) |
|
|
63,194 |
|
|
54,572 |
|
|
27,307 |
|
|
|
|
|
Percentage of MSRs to
loans serviced for others (D / C) |
|
|
1.21 |
% |
|
1.14 |
% |
|
1.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of
Mortgage Banking Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Production revenue |
|
|
$ |
27,814 |
|
|
$ |
20,526 |
|
|
$ |
28,140 |
|
|
$ |
48,340 |
|
|
$ |
45,817 |
|
MSR capitalization, net
of payoffs and paydowns |
|
|
6,525 |
|
|
2,957 |
|
|
4,886 |
|
|
9,482 |
|
|
7,223 |
|
MSR fair value
adjustments |
|
|
2,097 |
|
|
4,133 |
|
|
825 |
|
|
6,230 |
|
|
981 |
|
Servicing income |
|
|
3,505 |
|
|
2,905 |
|
|
1,457 |
|
|
6,410 |
|
|
2,773 |
|
Other |
|
|
(107 |
) |
|
439 |
|
|
631 |
|
|
332 |
|
|
1,083 |
|
Total
mortgage banking revenue |
|
|
$ |
39,834 |
|
|
$ |
30,960 |
|
|
$ |
35,939 |
|
|
$ |
70,794 |
|
|
$ |
57,877 |
|
- 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 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 primarily as a result of selling call options
against a smaller value of underlying securities resulting in lower
premiums received by Company. There were no outstanding call option
contracts at June 30, 2018, March 31, 2018 or
June 30, 2017.
The decrease in operating lease income in the
current quarter compared to the first quarter of 2018 is primarily
related to a $1.1 million gain realized in the prior quarter from
the sale of certain equipment held on operating leases.
NON-INTEREST EXPENSE
The following table presents non-interest expense by category
for the periods presented:
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
Q2 2018 compared to
Q1 2018 |
|
Q2 2018 compared to
Q2 2017 |
Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
66,976 |
|
|
$ |
61,986 |
|
|
$ |
55,215 |
|
|
$ |
4,990 |
|
|
8 |
% |
|
$ |
11,761 |
|
|
21 |
% |
Commissions and incentive compensation |
|
35,907 |
|
|
31,949 |
|
|
34,050 |
|
|
3,958 |
|
|
12 |
|
|
1,857 |
|
|
5 |
|
Benefits |
|
18,792 |
|
|
18,501 |
|
|
17,237 |
|
|
291 |
|
|
2 |
|
|
1,555 |
|
|
9 |
|
Total
salaries and employee benefits |
|
121,675 |
|
|
112,436 |
|
|
106,502 |
|
|
9,239 |
|
|
8 |
|
|
15,173 |
|
|
14 |
|
Equipment |
|
10,527 |
|
|
10,072 |
|
|
9,909 |
|
|
455 |
|
|
5 |
|
|
618 |
|
|
6 |
|
Operating lease
equipment depreciation |
|
6,940 |
|
|
6,533 |
|
|
5,662 |
|
|
407 |
|
|
6 |
|
|
1,278 |
|
|
23 |
|
Occupancy, net |
|
13,663 |
|
|
13,767 |
|
|
12,586 |
|
|
(104 |
) |
|
(1 |
) |
|
1,077 |
|
|
9 |
|
Data processing |
|
8,752 |
|
|
8,493 |
|
|
7,804 |
|
|
259 |
|
|
3 |
|
|
948 |
|
|
12 |
|
Advertising and
marketing |
|
11,782 |
|
|
8,824 |
|
|
8,726 |
|
|
2,958 |
|
|
34 |
|
|
3,056 |
|
|
35 |
|
Professional fees |
|
6,484 |
|
|
6,649 |
|
|
7,510 |
|
|
(165 |
) |
|
(2 |
) |
|
(1,026 |
) |
|
(14 |
) |
Amortization of other
intangible assets |
|
997 |
|
|
1,004 |
|
|
1,141 |
|
|
(7 |
) |
|
(1 |
) |
|
(144 |
) |
|
(13 |
) |
FDIC insurance |
|
4,598 |
|
|
4,362 |
|
|
3,874 |
|
|
236 |
|
|
5 |
|
|
724 |
|
|
19 |
|
OREO expense, net |
|
980 |
|
|
2,926 |
|
|
739 |
|
|
(1,946 |
) |
|
(67 |
) |
|
241 |
|
|
33 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
1,174 |
|
|
1,252 |
|
|
1,033 |
|
|
(78 |
) |
|
(6 |
) |
|
141 |
|
|
14 |
|
Postage |
|
2,567 |
|
|
1,866 |
|
|
2,080 |
|
|
701 |
|
|
38 |
|
|
487 |
|
|
23 |
|
Miscellaneous |
|
16,630 |
|
|
16,165 |
|
|
15,978 |
|
|
465 |
|
|
3 |
|
|
652 |
|
|
4 |
|
Total
other |
|
20,371 |
|
|
19,283 |
|
|
19,091 |
|
|
1,088 |
|
|
6 |
|
|
1,280 |
|
|
7 |
|
Total Non-Interest
Expense |
|
$ |
206,769 |
|
|
$ |
194,349 |
|
|
$ |
183,544 |
|
|
$ |
12,420 |
|
|
6 |
% |
|
$ |
23,225 |
|
|
13 |
% |
|
|
Six Months Ended |
|
|
|
|
|
|
June 30, |
|
June 30, |
|
$ |
|
% |
(Dollars in
thousands) |
|
2018 |
|
2017 |
|
Change |
|
Change |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
Salaries |
|
$ |
128,962 |
|
|
$ |
110,223 |
|
|
$ |
18,739 |
|
|
17 |
% |
Commissions and incentive compensation |
|
67,856 |
|
|
60,693 |
|
|
7,163 |
|
|
12 |
|
Benefits |
|
37,293 |
|
|
34,902 |
|
|
2,391 |
|
|
7 |
|
Total
salaries and employee benefits |
|
234,111 |
|
|
205,818 |
|
|
28,293 |
|
|
14 |
|
Equipment |
|
20,599 |
|
|
18,911 |
|
|
1,688 |
|
|
9 |
|
Operating lease
equipment depreciation |
|
13,473 |
|
|
10,298 |
|
|
3,175 |
|
|
31 |
|
Occupancy, net |
|
27,430 |
|
|
25,687 |
|
|
1,743 |
|
|
7 |
|
Data processing |
|
17,245 |
|
|
15,729 |
|
|
1,516 |
|
|
10 |
|
Advertising and
marketing |
|
20,606 |
|
|
13,876 |
|
|
6,730 |
|
|
49 |
|
Professional fees |
|
13,133 |
|
|
12,170 |
|
|
963 |
|
|
8 |
|
Amortization of other
intangible assets |
|
2,001 |
|
|
2,305 |
|
|
(304 |
) |
|
(13 |
) |
FDIC insurance |
|
8,960 |
|
|
8,030 |
|
|
930 |
|
|
12 |
|
OREO expense, net |
|
3,906 |
|
|
2,404 |
|
|
1,502 |
|
|
62 |
|
Other: |
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
2,426 |
|
|
2,131 |
|
|
295 |
|
|
14 |
|
Postage |
|
4,433 |
|
|
3,522 |
|
|
911 |
|
|
26 |
|
Miscellaneous |
|
32,795 |
|
|
30,781 |
|
|
2,014 |
|
|
7 |
|
Total
other |
|
39,654 |
|
|
36,434 |
|
|
3,220 |
|
|
9 |
|
Total Non-Interest
Expense |
|
$ |
401,118 |
|
|
$ |
351,662 |
|
|
$ |
49,456 |
|
|
14 |
% |
NM - Not meaningful
Notable contributions to the change in
non-interest expense are as follows:
Salaries and employee benefits expense increased
in the current quarter compared to the first quarter of 2018
primarily as a result of higher salaries and commissions and
incentive compensation. The increase in salaries is primarily due
to additional salaries from the Veterans First acquisition as well
as increases from merit-based salary increases for current
employees effective in February and an increase of the minimum wage
for eligible hourly employees effective in March. The increase in
commissions and incentive compensation is the result of higher
commissions due to increased production in mortgage banking and an
increase in bonus and long-term performance-based incentive
compensation recognized in the second quarter of 2018 due to higher
earnings.
The increase in advertising and marketing
expenses during the current quarter compared to the first quarter
of 2018 and the second quarter of 2017 is primarily related to
higher corporate sponsorship costs, which are typically higher in
the spring and summer due to our marketing efforts with the Chicago
Cubs and Chicago White Sox, as well as increased spending related
to deposit generation and brand awareness to grow our loan and
deposit portfolios. 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
timing of sponsorship programs and type of marketing programs
utilized which are determined based on the market area, targeted
audience, competition and various other factors.
The decrease in OREO expense in the current
quarter compared to the first quarter of 2018 was primarily the
result of negative valuation adjustments and realized losses on the
sale of certain OREO properties recognized in the previous quarter
from our continuing efforts to address and resolve non-performing
assets in a timely fashion. OREO expenses include all costs
associated with obtaining, maintaining and selling other real
estate owned properties as well as valuation adjustments.
INCOME TAXES
The Company recorded income tax expense of $32.0
million in the second quarter of 2018 compared to $26.1 million in
the first quarter of 2018 and $37.0 million in the second quarter
of 2017. The effective tax rates were 26.33% in the second quarter
of 2018, 24.14% in the first quarter of 2018 and 36.34% in the
second quarter of 2017. During the six months ended June 30, 2018,
the Company recorded income tax expense of $58.1 million (25.30%
effective tax rate) compared to $66.7 million (35.11% effective tax
rate) for the same period of 2017. The lower effective tax rates
for the 2018 quarterly and year-to-date periods as compared to 2017
were primarily due to the reduction of the federal corporate income
tax rate effective in 2018 as a result of the enactment of the Tax
Cuts and Jobs Act on December 22, 2017. The Company recorded
$712,000 of excess tax benefits in the second quarter of 2018
related to share-based compensation and $2.6 million in the first
quarter of 2018, compared to $456,000 in the second quarter of 2017
and $3.4 million in the first quarter of 2017. 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 |
|
Six Months Ended |
(Dollars in
thousands) |
|
June 30,
2018 |
|
March 31,
2018 |
|
June 30,
2017 |
|
June 30,
2018 |
|
June 30,
2017 |
Allowance for
loan losses at beginning of period |
|
$ |
139,503 |
|
|
$ |
137,905 |
|
|
$ |
125,819 |
|
|
$ |
137,905 |
|
|
$ |
122,291 |
|
Provision for
credit losses |
|
5,043 |
|
|
8,346 |
|
|
8,952 |
|
|
13,389 |
|
|
14,268 |
|
Other
adjustments (1) |
|
(44 |
) |
|
(40 |
) |
|
(30 |
) |
|
(84 |
) |
|
(86 |
) |
Reclassification (to) from allowance for unfunded
lending-related commitments |
|
— |
|
|
26 |
|
|
106 |
|
|
26 |
|
|
(32 |
) |
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
2,210 |
|
|
2,687 |
|
|
913 |
|
|
4,897 |
|
|
1,554 |
|
Commercial real estate |
|
155 |
|
|
813 |
|
|
1,985 |
|
|
968 |
|
|
2,246 |
|
Home
equity |
|
612 |
|
|
357 |
|
|
1,631 |
|
|
969 |
|
|
2,256 |
|
Residential real estate |
|
180 |
|
|
571 |
|
|
146 |
|
|
751 |
|
|
475 |
|
Premium
finance receivables - commercial |
|
3,254 |
|
|
4,721 |
|
|
1,878 |
|
|
7,975 |
|
|
3,305 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
459 |
|
|
129 |
|
|
175 |
|
|
588 |
|
|
309 |
|
Total
charge-offs |
|
6,870 |
|
|
9,278 |
|
|
6,728 |
|
|
16,148 |
|
|
10,145 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
666 |
|
|
262 |
|
|
561 |
|
|
928 |
|
|
834 |
|
Commercial real estate |
|
2,387 |
|
|
1,687 |
|
|
276 |
|
|
4,074 |
|
|
830 |
|
Home
equity |
|
171 |
|
|
123 |
|
|
144 |
|
|
294 |
|
|
209 |
|
Residential real estate |
|
1,522 |
|
|
40 |
|
|
54 |
|
|
1,562 |
|
|
232 |
|
Premium
finance receivables - commercial |
|
975 |
|
|
385 |
|
|
404 |
|
|
1,360 |
|
|
1,016 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
49 |
|
|
47 |
|
|
33 |
|
|
96 |
|
|
174 |
|
Total
recoveries |
|
5,770 |
|
|
2,544 |
|
|
1,472 |
|
|
8,314 |
|
|
3,295 |
|
Net charge-offs |
|
(1,100 |
) |
|
(6,734 |
) |
|
(5,256 |
) |
|
(7,834 |
) |
|
(6,850 |
) |
Allowance for loan losses at period end |
|
$ |
143,402 |
|
|
$ |
139,503 |
|
|
$ |
129,591 |
|
|
$ |
143,402 |
|
|
$ |
129,591 |
|
Allowance for unfunded lending-related commitments at
period end |
|
1,243 |
|
|
1,243 |
|
|
1,705 |
|
|
1,243 |
|
|
1,705 |
|
Allowance for credit losses at period end |
|
$ |
144,645 |
|
|
$ |
140,746 |
|
|
$ |
131,296 |
|
|
$ |
144,645 |
|
|
$ |
131,296 |
|
Annualized net charge-offs (recoveries) by category as a
percentage of its own respective
category’s average: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
0.09 |
% |
|
0.14 |
% |
|
0.02 |
% |
|
0.11 |
% |
|
0.02 |
% |
Commercial real estate |
|
(0.14 |
) |
|
(0.05 |
) |
|
0.11 |
|
|
(0.09 |
) |
|
0.05 |
|
Home
equity |
|
0.29 |
|
|
0.15 |
|
|
0.85 |
|
|
0.22 |
|
|
0.58 |
|
Residential real estate |
|
(0.64 |
) |
|
0.26 |
|
|
0.05 |
|
|
(0.20 |
) |
|
0.07 |
|
Premium
finance receivables - commercial |
|
0.34 |
|
|
0.68 |
|
|
0.23 |
|
|
0.51 |
|
|
0.19 |
|
Premium
finance receivables - life insurance |
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
Consumer
and other |
|
1.21 |
|
|
0.26 |
|
|
0.45 |
|
|
0.76 |
|
|
0.22 |
|
Total
loans, net of unearned income, excluding covered loans |
|
0.02 |
% |
|
0.13 |
% |
|
0.10 |
% |
|
0.07 |
% |
|
0.07 |
% |
Net charge-offs as a percentage of the provision for
credit losses |
|
21.80 |
% |
|
80.69 |
% |
|
58.71 |
% |
|
58.51 |
% |
|
48.01 |
% |
Loans at period-end, excluding covered loans |
|
$ |
22,610,560 |
|
|
$ |
22,062,134 |
|
|
$ |
20,743,332 |
|
|
|
|
|
Allowance for loan losses as a percentage of loans at
period end |
|
0.63 |
% |
|
0.63 |
% |
|
0.62 |
% |
|
|
|
|
Allowance for credit losses as a percentage of loans at
period end |
|
0.64 |
% |
|
0.64 |
% |
|
0.63 |
% |
|
|
|
|
- Includes $742,000 of allowance for covered loan losses
reclassified as a result of the termination of all existing loss
share agreements with the FDIC during the fourth quarter of
2017.
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 second quarter of 2018 totaled two
basis points on an annualized basis compared to 13 basis points on
an annualized basis in the first quarter of 2018 and 10 basis
points on an annualized basis in the second quarter of 2017.
Net charge-offs totaled $1.1 million in the second quarter of 2018,
a $5.6 million decrease from $6.7 million in the first quarter of
2018 and a $4.2 million decrease from $5.3 million in the second
quarter of 2017. The decrease in the second quarter of 2018
compared to first quarter of 2018 is primarily the result of
decreased net charge-offs within the commercial real estate,
residential real estate and commercial insurance premium finance
receivables portfolios. The decrease in the second quarter of 2018
compared to second quarter of 2017 is primarily the result of
decreased net charge-offs within the commercial real estate and
residential real estate portfolios. The provision for credit
losses, excluding the provision for covered loan losses, totaled
$5.0 million for the second quarter of 2018 compared to $8.3
million for the first quarter of 2018 and $9.0 million for the
second quarter of 2017.
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 provided a provision for
covered loan losses on covered loans when applicable.
The following table presents the provision for
credit losses and allowance for credit losses by component for the
periods presented, including covered loans:
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Provision for loan
losses |
|
$ |
5,043 |
|
|
$ |
8,372 |
|
|
$ |
9,058 |
|
|
$ |
13,415 |
|
|
$ |
14,236 |
|
Provision for unfunded
lending-related commitments |
|
— |
|
|
(26 |
) |
|
(106 |
) |
|
(26 |
) |
|
32 |
|
Provision for covered
loan losses |
|
— |
|
|
— |
|
|
(61 |
) |
|
— |
|
|
(168 |
) |
Provision for credit
losses |
|
$ |
5,043 |
|
|
$ |
8,346 |
|
|
$ |
8,891 |
|
|
$ |
13,389 |
|
|
$ |
14,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
|
|
|
2018 |
|
2018 |
|
2017 |
Allowance for loan
losses |
|
|
|
|
|
$ |
143,402 |
|
|
$ |
139,503 |
|
|
$ |
129,591 |
|
Allowance for unfunded
lending-related commitments |
|
|
|
|
|
1,243 |
|
|
1,243 |
|
|
1,705 |
|
Allowance for covered
loan losses |
|
|
|
|
|
— |
|
|
— |
|
|
1,074 |
|
Allowance for credit
losses |
|
|
|
|
|
$ |
144,645 |
|
|
$ |
140,746 |
|
|
$ |
132,370 |
|
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 June 30, 2018 and March 31, 2018.
|
|
As of June 30, 2018 |
|
|
Recorded |
|
Calculated |
|
As a percentage
of its own respective |
(Dollars in
thousands) |
|
Investment |
|
Allowance |
|
category’s balance |
Commercial:(1) |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
4,000,272 |
|
|
$ |
36,381 |
|
|
0.91 |
% |
Asset-based lending |
|
1,041,894 |
|
|
8,957 |
|
|
0.86 |
|
Tax
exempt |
|
432,435 |
|
|
2,856 |
|
|
0.66 |
|
Leases |
|
456,906 |
|
|
1,237 |
|
|
0.27 |
|
Commercial real
estate:(1) |
|
|
|
|
|
|
Residential construction |
|
34,350 |
|
|
709 |
|
|
2.06 |
|
Commercial construction |
|
770,314 |
|
|
8,606 |
|
|
1.12 |
|
Land |
|
113,937 |
|
|
3,714 |
|
|
3.26 |
|
Office |
|
863,448 |
|
|
5,967 |
|
|
0.69 |
|
Industrial |
|
851,584 |
|
|
5,896 |
|
|
0.69 |
|
Retail |
|
836,901 |
|
|
8,047 |
|
|
0.96 |
|
Multi-family |
|
926,475 |
|
|
9,679 |
|
|
1.04 |
|
Mixed use
and other |
|
1,876,807 |
|
|
14,811 |
|
|
0.79 |
|
Home
equity(1) |
|
547,836 |
|
|
9,437 |
|
|
1.72 |
|
Residential real
estate(1) |
|
854,176 |
|
|
6,199 |
|
|
0.73 |
|
Total core loan portfolio |
|
$ |
13,607,335 |
|
|
$ |
122,496 |
|
|
0.90 |
% |
Commercial: |
|
|
|
|
|
|
Franchise |
|
$ |
881,921 |
|
|
$ |
8,661 |
|
|
0.98 |
% |
Mortgage
warehouse lines of credit |
|
200,060 |
|
|
1,598 |
|
|
0.80 |
|
Community
Advantage - homeowner associations |
|
169,443 |
|
|
424 |
|
|
0.25 |
|
Aircraft |
|
2,586 |
|
|
3 |
|
|
0.12 |
|
Purchased
non-covered commercial loans (2) |
|
103,543 |
|
|
610 |
|
|
0.59 |
|
Commercial real
estate: |
|
|
|
|
|
|
Purchased
non-covered commercial real estate (2) |
|
301,268 |
|
|
231 |
|
|
0.08 |
|
Purchased non-covered
home equity (2) |
|
45,664 |
|
|
114 |
|
|
0.25 |
|
Purchased non-covered
residential real estate (2) |
|
41,294 |
|
|
137 |
|
|
0.33 |
|
Premium finance
receivables |
|
|
|
|
|
|
U.S.
commercial insurance loans |
|
2,487,886 |
|
|
5,759 |
|
|
0.23 |
|
Canada
commercial insurance loans (2) |
|
345,566 |
|
|
513 |
|
|
0.15 |
|
Life
insurance loans (1) |
|
4,118,666 |
|
|
1,462 |
|
|
0.04 |
|
Purchased
life insurance loans (2) |
|
183,622 |
|
|
— |
|
|
— |
|
Consumer and other
(1) |
|
119,143 |
|
|
1,390 |
|
|
1.17 |
|
Purchased non-covered
consumer and other (2) |
|
2,563 |
|
|
4 |
|
|
0.14 |
|
Total consumer, niche and purchased loan
portfolio |
|
$ |
9,003,225 |
|
|
$ |
20,906 |
|
|
0.23 |
% |
Total loans, net of unearned income, excluding covered
loans |
|
$ |
22,610,560 |
|
|
$ |
143,402 |
|
|
0.63 |
% |
- Excludes purchased loans reported in accordance with ASC
310-20 and ASC 310-30.
- Purchased loans represent loans reported in accordance with
ASC 310-20 and ASC 310-30.
|
|
As of March 31, 2018 |
|
|
Recorded |
|
Calculated |
|
As a percentage
of its own respective |
(Dollars in
thousands) |
|
Investment |
|
Allowance |
|
category’s balance |
Commercial:(1) |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
3,989,211 |
|
$ |
36,092 |
|
0.90 |
% |
Asset-based lending |
|
977,063 |
|
8,315 |
|
0.85 |
|
Tax
exempt |
|
380,264 |
|
2,602 |
|
0.68 |
|
Leases |
|
412,786 |
|
1,222 |
|
0.30 |
|
Commercial real
estate:(1) |
|
|
|
|
|
|
Residential construction |
|
44,328 |
|
860 |
|
1.94 |
|
Commercial construction |
|
769,330 |
|
8,723 |
|
1.13 |
|
Land |
|
121,005 |
|
3,988 |
|
3.30 |
|
Office |
|
853,839 |
|
5,795 |
|
0.68 |
|
Industrial |
|
872,761 |
|
5,895 |
|
0.68 |
|
Retail |
|
861,249 |
|
8,101 |
|
0.94 |
|
Multi-family |
|
903,778 |
|
9,599 |
|
1.06 |
|
Mixed use
and other |
|
1,866,691 |
|
14,319 |
|
0.77 |
|
Home
equity(1) |
|
571,925 |
|
9,719 |
|
1.70 |
|
Residential real
estate(1) |
|
823,322 |
|
6,073 |
|
0.74 |
|
Total core loan portfolio |
|
$ |
13,447,552 |
|
$ |
121,303 |
|
0.90 |
% |
Commercial: |
|
|
|
|
|
|
Franchise |
|
$ |
852,166 |
|
$ |
7,032 |
|
0.83 |
% |
Mortgage
warehouse lines of credit |
|
163,470 |
|
1,297 |
|
0.79 |
|
Community
Advantage - homeowner associations |
|
168,656 |
|
422 |
|
0.25 |
|
Aircraft |
|
2,904 |
|
42 |
|
1.45 |
|
Purchased
non-covered commercial loans (2) |
|
114,351 |
|
612 |
|
0.54 |
|
Commercial real
estate: |
|
|
|
|
|
|
Purchased
non-covered commercial real estate (2) |
|
340,539 |
|
201 |
|
0.06 |
|
Purchased non-covered
home equity (2) |
|
54,622 |
|
141 |
|
0.26 |
|
Purchased non-covered
residential real estate (2) |
|
45,782 |
|
205 |
|
0.45 |
|
Premium finance
receivables |
|
|
|
|
|
|
U.S.
commercial insurance loans |
|
2,263,019 |
|
5,415 |
|
0.24 |
|
Canada
commercial insurance loans (2) |
|
313,131 |
|
491 |
|
0.16 |
|
Life
insurance loans (1) |
|
4,002,726 |
|
1,427 |
|
0.04 |
|
Purchased
life insurance loans (2) |
|
187,235 |
|
— |
|
— |
|
Consumer and other
(1) |
|
103,312 |
|
911 |
|
0.88 |
|
Purchased non-covered
consumer and other (2) |
|
2,669 |
|
4 |
|
0.15 |
|
Total consumer, niche and purchased loan
portfolio |
|
$ |
8,614,582 |
|
$ |
18,200 |
|
0.21 |
% |
Total loans, net of unearned income, excluding covered
loans |
|
$ |
22,062,134 |
|
$ |
139,503 |
|
0.63 |
% |
- Excludes purchased loans reported in accordance with ASC
310-20 and ASC 310-30.
- 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 June 30, 2018 and March 31,
2018.
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.
In addition to the $143.4 million of allowance
for loan losses, there is $2.9 million of non-accretable credit
discount on purchased loans reported in accordance with ASC 310-30
that is available to absorb credit losses.
The tables below show the aging of the Company’s
loan portfolio at June 30, 2018 and March 31, 2018:
|
|
|
|
90+ days |
|
60-89 |
|
30-59 |
|
|
|
|
As of June 30,
2018 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in
thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan
Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
(1) |
|
$ |
18,388 |
|
|
$ |
882 |
|
|
$ |
3,064 |
|
|
$ |
15,923 |
|
|
$ |
7,250,803 |
|
|
$ |
7,289,060 |
|
Commercial real estate
(1) |
|
19,195 |
|
|
3,194 |
|
|
4,119 |
|
|
27,682 |
|
|
6,520,894 |
|
|
6,575,084 |
|
Home equity |
|
9,096 |
|
|
— |
|
|
— |
|
|
3,226 |
|
|
581,178 |
|
|
593,500 |
|
Residential real estate
(1) |
|
15,825 |
|
|
1,472 |
|
|
3,637 |
|
|
1,534 |
|
|
873,002 |
|
|
895,470 |
|
Premium finance
receivables - commercial |
|
14,832 |
|
|
5,159 |
|
|
8,848 |
|
|
10,535 |
|
|
2,794,078 |
|
|
2,833,452 |
|
Premium finance
receivables - life insurance (1) |
|
— |
|
|
— |
|
|
26,770 |
|
|
17,211 |
|
|
4,258,307 |
|
|
4,302,288 |
|
Consumer and other
(1) |
|
563 |
|
|
286 |
|
|
150 |
|
|
310 |
|
|
120,397 |
|
|
121,706 |
|
Total
loans, net of unearned income |
|
$ |
77,899 |
|
|
$ |
10,993 |
|
|
$ |
46,588 |
|
|
$ |
76,421 |
|
|
$ |
22,398,659 |
|
|
$ |
22,610,560 |
|
As of June 30,
2018
Aging as a % of Loan Balance |
|
Nonaccrual |
|
90+ days
and still
accruing |
|
60-89
days past
due |
|
30-59
days past
due |
|
Current |
|
Total Loans |
Commercial
(1) |
|
0.3 |
% |
|
— |
% |
|
— |
% |
|
0.2 |
% |
|
99.5 |
% |
|
100.0 |
% |
Commercial real estate
(1) |
|
0.3 |
|
|
— |
|
|
0.1 |
|
|
0.4 |
|
|
99.2 |
|
|
100.0 |
|
Home equity |
|
1.5 |
|
|
— |
|
|
— |
|
|
0.5 |
|
|
98.0 |
|
|
100.0 |
|
Residential real estate
(1) |
|
1.8 |
|
|
0.2 |
|
|
0.4 |
|
|
0.2 |
|
|
97.4 |
|
|
100.0 |
|
Premium finance
receivables - commercial |
|
0.5 |
|
|
0.2 |
|
|
0.3 |
|
|
0.4 |
|
|
98.6 |
|
|
100.0 |
|
Premium finance
receivables - life insurance (1) |
|
— |
|
|
— |
|
|
0.6 |
|
|
0.4 |
|
|
99.0 |
|
|
100.0 |
|
Consumer and other
(1) |
|
0.5 |
|
|
0.2 |
|
|
0.1 |
|
|
0.3 |
|
|
98.9 |
|
|
100.0 |
|
Total
loans, net of unearned income |
|
0.3 |
% |
|
— |
% |
|
0.2 |
% |
|
0.3 |
% |
|
99.2 |
% |
|
100.0 |
% |
- 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 March 31,
2018 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in
thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan
Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
(1) |
|
$ |
14,007 |
|
|
$ |
856 |
|
|
$ |
771 |
|
|
$ |
54,233 |
|
|
$ |
6,991,004 |
|
|
$ |
7,060,871 |
|
Commercial real estate
(1) |
|
21,825 |
|
|
3,107 |
|
|
3,563 |
|
|
58,469 |
|
|
6,546,556 |
|
|
6,633,520 |
|
Home equity |
|
9,828 |
|
|
— |
|
|
1,505 |
|
|
4,033 |
|
|
611,181 |
|
|
626,547 |
|
Residential real estate
(1) |
|
17,214 |
|
|
1,437 |
|
|
229 |
|
|
8,808 |
|
|
841,416 |
|
|
869,104 |
|
Premium finance
receivables - commercial |
|
17,342 |
|
|
8,547 |
|
|
6,543 |
|
|
17,756 |
|
|
2,525,962 |
|
|
2,576,150 |
|
Premium finance
receivables - life insurance (1) |
|
— |
|
|
— |
|
|
5,125 |
|
|
11,420 |
|
|
4,173,416 |
|
|
4,189,961 |
|
Consumer and other
(1) |
|
720 |
|
|
269 |
|
|
216 |
|
|
291 |
|
|
104,485 |
|
|
105,981 |
|
Total
loans, net of unearned income |
|
$ |
80,936 |
|
|
$ |
14,216 |
|
|
$ |
17,952 |
|
|
$ |
155,010 |
|
|
$ |
21,794,020 |
|
|
$ |
22,062,134 |
|
As of March 31,
2018
Aging as a % of Loan Balance: |
|
Nonaccrual |
|
90+ days
and still
accruing |
|
60-89
days past
due |
|
30-59
days past
due |
|
Current |
|
Total Loans |
Commercial
(1) |
|
0.2 |
% |
|
— |
% |
|
— |
% |
|
0.8 |
% |
|
99.0 |
% |
|
100.0 |
% |
Commercial real estate
(1) |
|
0.3 |
|
|
— |
|
|
0.1 |
|
|
0.9 |
|
|
98.7 |
|
|
100.0 |
|
Home equity |
|
1.6 |
|
|
— |
|
|
0.2 |
|
|
0.6 |
|
|
97.6 |
|
|
100.0 |
|
Residential real estate
(1) |
|
2.0 |
|
|
0.2 |
|
|
— |
|
|
1.0 |
|
|
96.8 |
|
|
100.0 |
|
Premium finance
receivables - commercial |
|
0.7 |
|
|
0.3 |
|
|
0.3 |
|
|
0.7 |
|
|
98.0 |
|
|
100.0 |
|
Premium finance
receivables - life insurance (1) |
|
— |
|
|
— |
|
|
0.1 |
|
|
0.3 |
|
|
99.6 |
|
|
100.0 |
|
Consumer and other
(1) |
|
0.7 |
|
|
0.3 |
|
|
0.2 |
|
|
0.3 |
|
|
98.5 |
|
|
100.0 |
|
Total
loans, net of unearned income |
|
0.4 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.7 |
% |
|
98.7 |
% |
|
100.0 |
% |
- 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 June 30, 2018, $46.6 million of all
loans, or 0.2%, were 60 to 89 days past due and $76.4 million, or
0.3%, were 30 to 59 days (or one payment) past due. As of
March 31, 2018, $18.0 million of all loans, or 0.1%, were 60
to 89 days past due and $155.0 million, or 0.7%, 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. All loans within the life insurance
premium financing portfolio shown as 60 to 89 days and 30 to 59
days past due (four and nine credits, respectively) remain fully
secured.
The Company’s home equity and residential loan
portfolios continue to exhibit low delinquency ratios. Home equity
loans at June 30, 2018 that are current with regard to the
contractual terms of the loan agreement represent 98.0% of the
total home equity portfolio. Residential real estate loans at
June 30, 2018 that are current with regards to the contractual
terms of the loan agreements comprise 97.4% 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.
|
June 30, |
March 31, |
June 30, |
(Dollars in
thousands) |
2018 |
2018 |
2017 |
Loans past due
greater than 90 days and still
accruing(1): |
|
|
|
Commercial |
$ |
— |
|
$ |
— |
|
$ |
— |
|
Commercial real estate |
— |
|
— |
|
— |
|
Home
equity |
— |
|
— |
|
— |
|
Residential real estate |
— |
|
— |
|
179 |
|
Premium
finance receivables - commercial |
5,159 |
|
8,547 |
|
5,922 |
|
Premium
finance receivables - life insurance |
— |
|
— |
|
1,046 |
|
Consumer
and other |
224 |
|
207 |
|
63 |
|
Total
loans past due greater than 90 days and still accruing |
5,383 |
|
8,754 |
|
7,210 |
|
Non-accrual
loans(2): |
|
|
|
Commercial |
18,388 |
|
14,007 |
|
10,191 |
|
Commercial real estate |
19,195 |
|
21,825 |
|
16,980 |
|
Home
equity |
9,096 |
|
9,828 |
|
9,482 |
|
Residential real estate |
15,825 |
|
17,214 |
|
14,292 |
|
Premium
finance receivables - commercial |
14,832 |
|
17,342 |
|
10,456 |
|
Premium
finance receivables - life insurance |
— |
|
— |
|
— |
|
Consumer
and other |
563 |
|
720 |
|
439 |
|
Total
non-accrual loans |
77,899 |
|
80,936 |
|
61,840 |
|
Total
non-performing loans: |
|
|
|
Commercial |
18,388 |
|
14,007 |
|
10,191 |
|
Commercial real estate |
19,195 |
|
21,825 |
|
16,980 |
|
Home
equity |
9,096 |
|
9,828 |
|
9,482 |
|
Residential real estate |
15,825 |
|
17,214 |
|
14,471 |
|
Premium
finance receivables - commercial |
19,991 |
|
25,889 |
|
16,378 |
|
Premium
finance receivables - life insurance |
— |
|
— |
|
1,046 |
|
Consumer
and other |
787 |
|
927 |
|
502 |
|
Total
non-performing loans |
$ |
83,282 |
|
$ |
89,690 |
|
$ |
69,050 |
|
Other
real estate owned |
18,925 |
|
18,481 |
|
16,853 |
|
Other
real estate owned - from acquisitions |
16,406 |
|
18,117 |
|
22,508 |
|
Other
repossessed assets |
305 |
|
113 |
|
532 |
|
Total
non-performing assets |
$ |
118,918 |
|
$ |
126,401 |
|
$ |
108,943 |
|
TDRs
performing under the contractual terms of the loan agreement |
$ |
57,249 |
|
$ |
39,562 |
|
$ |
28,008 |
|
Total
non-performing loans by category as a percent of its own
respective category’s period-end balance: |
|
|
|
Commercial |
0.25 |
% |
0.20 |
% |
0.16 |
% |
Commercial real estate |
0.29 |
|
0.33 |
|
0.27 |
|
Home
equity |
1.53 |
|
1.57 |
|
1.38 |
|
Residential real estate |
1.77 |
|
1.98 |
|
1.90 |
|
Premium
finance receivables - commercial |
0.71 |
|
1.00 |
|
0.62 |
|
Premium
finance receivables - life insurance |
— |
|
— |
|
0.03 |
|
Consumer
and other |
0.65 |
|
0.87 |
|
0.44 |
|
Total
loans, net of unearned income |
0.37 |
% |
0.41 |
% |
0.33 |
% |
Total
non-performing assets as a percentage of total
assets |
0.40 |
% |
0.44 |
% |
0.40 |
% |
Allowance for
loan losses as a percentage of total non-performing
loans |
172.19 |
% |
155.54 |
% |
187.68 |
% |
- As of the dates shown, no TDRs were past due greater than
90 days and still accruing interest.
- Non-accrual loans included TDRs totaling $8.1 million, $8.1
million and $5.1 million as of June 30, 2018, March 31,
2018 and June 30, 2017, respectively.
The ratio of non-performing assets to total
assets was 0.40% as of June 30, 2018, compared to 0.44% at
March 31, 2018, and 0.40% at June 30, 2017.
Non-performing assets, excluding covered assets and non-covered PCI
loans, totaled $118.9 million at June 30, 2018, compared to
$126.4 million at March 31, 2018 and $108.9 million at
June 30, 2017. Non-performing loans, excluding covered loans
and non-covered PCI loans, totaled $83.3 million, or 0.37% of total
loans, at June 30, 2018 compared to $89.7 million, or 0.41% of
total loans, at March 31, 2018 and $69.1 million, or 0.33% of
total loans, at June 30, 2017. OREO, excluding covered OREO,
of $35.3 million at June 30, 2018 decreased $1.3 million
compared to $36.6 million at March 31, 2018 and decreased $4.0
million compared to $39.4 million at June 30, 2017.
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 and non-covered PCI loans, for the periods presented:
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Balance at beginning of
period |
|
$ |
89,690 |
|
|
$ |
90,162 |
|
|
$ |
78,979 |
|
|
$ |
90,162 |
|
|
$ |
87,454 |
|
Additions, net, from non-covered portfolio |
|
10,403 |
|
|
6,608 |
|
|
10,888 |
|
|
17,011 |
|
|
19,497 |
|
Return to
performing status |
|
(759 |
) |
|
(3,753 |
) |
|
(975 |
) |
|
(4,512 |
) |
|
(2,567 |
) |
Payments
received |
|
(4,589 |
) |
|
(2,569 |
) |
|
(10,684 |
) |
|
(7,158 |
) |
|
(16,298 |
) |
Transfer
to OREO and other repossessed assets |
|
(3,528 |
) |
|
(1,981 |
) |
|
(2,543 |
) |
|
(5,509 |
) |
|
(4,204 |
) |
Charge-offs |
|
(1,968 |
) |
|
(3,555 |
) |
|
(4,344 |
) |
|
(5,523 |
) |
|
(5,624 |
) |
Net
change for niche loans (1) |
|
(5,967 |
) |
|
4,778 |
|
|
(2,271 |
) |
|
(1,189 |
) |
|
(9,208 |
) |
Balance at end
of period |
|
$ |
83,282 |
|
|
$ |
89,690 |
|
|
$ |
69,050 |
|
|
$ |
83,282 |
|
|
$ |
69,050 |
|
- 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:
|
|
June 30, |
|
March 31, |
|
June 30, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
Accruing
TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
37,560 |
|
|
$ |
19,803 |
|
|
$ |
3,886 |
|
Commercial real estate |
|
15,086 |
|
|
16,087 |
|
|
17,349 |
|
Residential real estate and other |
|
4,603 |
|
|
3,672 |
|
|
6,773 |
|
Total
accrual |
|
$ |
57,249 |
|
|
$ |
39,562 |
|
|
$ |
28,008 |
|
Non-accrual
TDRs: (1) |
|
|
|
|
|
|
Commercial |
|
$ |
1,671 |
|
|
$ |
1,741 |
|
|
$ |
1,110 |
|
Commercial real estate |
|
1,362 |
|
|
1,304 |
|
|
1,839 |
|
Residential real estate and other |
|
5,028 |
|
|
5,069 |
|
|
2,134 |
|
Total
non-accrual |
|
$ |
8,061 |
|
|
$ |
8,114 |
|
|
$ |
5,083 |
|
Total
TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
39,231 |
|
|
$ |
21,544 |
|
|
$ |
4,996 |
|
Commercial real estate |
|
16,448 |
|
|
17,391 |
|
|
19,188 |
|
Residential real estate and other |
|
9,631 |
|
|
8,741 |
|
|
8,907 |
|
Total
TDRs |
|
$ |
65,310 |
|
|
$ |
47,676 |
|
|
$ |
33,091 |
|
Weighted-average contractual interest rate of
TDRs |
|
5.46 |
% |
|
4.84 |
% |
|
4.28 |
% |
- 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
June 30, 2018, March 31, 2018 and June 30, 2017, and
shows the activity for the respective period and the balance for
each property type:
|
|
Three Months Ended |
|
|
June 30, |
|
March 31, |
|
June 30, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
Balance at beginning of
period |
|
$ |
36,598 |
|
|
$ |
40,646 |
|
|
$ |
39,864 |
|
Disposals/resolved |
|
(4,557 |
) |
|
(3,679 |
) |
|
(4,270 |
) |
Transfers
in at fair value, less costs to sell |
|
4,801 |
|
|
1,789 |
|
|
3,965 |
|
Fair
value adjustments |
|
(1,511 |
) |
|
(2,158 |
) |
|
(198 |
) |
Balance at end of
period |
|
$ |
35,331 |
|
|
$ |
36,598 |
|
|
$ |
39,361 |
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
June 30, |
|
March 31, |
|
June 30, |
Balance by
Property Type |
|
2018 |
|
2018 |
|
2017 |
Residential real
estate |
|
$ |
5,155 |
|
|
$ |
6,407 |
|
|
$ |
7,684 |
|
Residential real estate
development |
|
2,205 |
|
|
2,229 |
|
|
755 |
|
Commercial real
estate |
|
27,971 |
|
|
27,962 |
|
|
30,922 |
|
Total |
|
$ |
35,331 |
|
|
$ |
36,598 |
|
|
$ |
39,361 |
|
Items Impacting Comparative Financial
Results:
Acquisitions
On January 4, 2018, the Company acquired certain
assets and assumed certain liabilities of the mortgage banking
business of Veterans First, in a business combination. The Company
also acquired mortgage servicing rights assets from Veterans First
on approximately 10,000 loans, totaling an estimated $1.6 billion
in unpaid principal balance. Veterans First is a consumer direct
lender with three offices, operating two in Salt Lake City and one
in San Diego, and originated in excess of $800 million in loans in
2017.
On February 14, 2017, the Company acquired
certain assets and assumed certain liabilities of the mortgage
banking business of American Homestead Mortgage, LLC ("AHM"), in a
business combination. AHM is located in Montana's Flathead Valley
and originated approximately $55 million of residential mortgage
loans in 2016.
Termination of Loss Share
Agreements
On October 16, 2017, the Company entered in
agreements with the FDIC that terminated all existing loss share
agreements with the FDIC. The loss share agreements were
related to the Company’s acquisition of assets and assumption of
liabilities of eight failed banks through FDIC assisted
transactions in 2010, 2011 and 2012.
Under terms of the agreements, the Company made
a net payment of $15.2 million to the FDIC as consideration for the
early termination of the loss share agreements. The Company
recorded a pre-tax gain of approximately $0.4 million in the fourth
quarter of 2017 to write off the remaining loss share asset,
relieve the claw-back liability and recognize the payment to the
FDIC.
Approximately $0.2 million of the remaining net
indemnification liabilities that were scheduled to be amortized
against future earnings did not occur for the remainder of the
fourth quarter of 2017. Additionally, $0.8 million, $0.8 million
and $0.7 million each year in 2018, 2019 and 2020, respectively, of
previously scheduled amortization will not occur.
The termination of the FDIC loss share
agreements has no effect on yields of the loans that were
previously covered under these agreements. Subsequent to this
transaction, the Company is solely responsible for all future
charge-offs, recoveries, gains, losses and expenses related to the
previously covered assets as the FDIC will no longer share in those
amounts.
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, N.A., 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
Addison, Algonquin, Aurora, Bloomingdale, Buffalo Grove, Cary,
Clarendon Hills, Crete, Deerfield, Des Plaines, Downers Grove,
Elgin, Elk Grove Village, Elmhurst, Evanston, 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, Rolling Meadows, 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, Menomonee Falls,
Milwaukee, Monroe, Pewaukee, Racine, Sharon, Wales, Walworth and
Wind Lake, Wisconsin and Dyer, Indiana.
Additionally, the Company operates various non-bank business
units:
- FIRST Insurance Funding, a division of Lake Forest Bank &
Trust Company, N.A., and Wintrust Life Finance, a division of Lake
Forest Bank & Trust Company, N.A., serve commercial and life
insurance loan customers, respectively, throughout the United
States.
- 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, N.A., 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,” “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 2017
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 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;
- harm to the Company’s reputation;
- any negative perception of the Company’s 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;
- 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;
- failure or breaches of our security systems or infrastructure,
or those of third parties;
- security breaches, including denial of service attacks,
hacking, social engineering attacks, malware intrusion or data
corruption attempts and identity theft;
- adverse effects on our information technology systems resulting
from failures, human error or cyberattacks;
- 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, and any
unanticipated impact of the Tax Act;
- changes in accounting standards, rules and interpretations such
as the new CECL standard, and the impact on the Company’s financial
statements;
- the ability of the Company to receive dividends from its
subsidiaries;
- uncertainty about the future of LIBOR;
- a decrease in the Company’s capital ratios, including as a
result of 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;
- a lowering of our credit rating;
- changes in U.S. monetary policy and changes to the Federal
Reserve’s balance sheet as a result of the end of its program of
quantitative easing or otherwise;
- 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 regulatory environment;
- the impact of heightened capital requirements;
- increases in the Company’s FDIC insurance premiums, or the
collection of special assessments by the FDIC;
- 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 10:00
a.m. (Central Time) on Wednesday, July 18, 2018 regarding second
quarter and year-to-date 2018 results. Individuals interested in
listening should call (877) 363-5049 and enter Conference ID
#2188524. 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
second quarter and year-to-date 2018 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 |
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
Selected
Financial Condition Data (at end of period): |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
|
$ |
27,915,970 |
|
|
$ |
27,358,162 |
|
|
$ |
26,929,265 |
|
Total loans, excluding
covered loans |
|
22,610,560 |
|
|
22,062,134 |
|
|
21,640,797 |
|
|
20,912,781 |
|
|
20,743,332 |
|
Total deposits |
|
24,365,479 |
|
|
23,279,327 |
|
|
23,183,347 |
|
|
22,895,063 |
|
|
22,605,692 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Total shareholders’
equity |
|
3,106,871 |
|
|
3,031,250 |
|
|
2,976,939 |
|
|
2,908,925 |
|
|
2,839,458 |
|
Selected
Statements of Income Data: |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
238,170 |
|
|
225,082 |
|
|
219,099 |
|
|
215,988 |
|
|
204,409 |
|
Net revenue
(1) |
|
333,403 |
|
|
310,761 |
|
|
300,137 |
|
|
295,719 |
|
|
294,381 |
|
Net income |
|
89,580 |
|
|
81,981 |
|
|
68,781 |
|
|
65,626 |
|
|
64,897 |
|
Net income per common
share – Basic |
|
$ |
1.55 |
|
|
$ |
1.42 |
|
|
$ |
1.19 |
|
|
$ |
1.14 |
|
|
$ |
1.15 |
|
Net income per common
share – Diluted |
|
$ |
1.53 |
|
|
$ |
1.40 |
|
|
$ |
1.17 |
|
|
$ |
1.12 |
|
|
$ |
1.11 |
|
Selected
Financial Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
3.61 |
% |
|
3.54 |
% |
|
3.45 |
% |
|
3.43 |
% |
|
3.41 |
% |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
|
3.63 |
% |
|
3.56 |
% |
|
3.49 |
% |
|
3.46 |
% |
|
3.43 |
% |
Non-interest income to
average assets |
|
1.34 |
% |
|
1.25 |
% |
|
1.18 |
% |
|
1.17 |
% |
|
1.39 |
% |
Non-interest expense to
average assets |
|
2.90 |
% |
|
2.83 |
% |
|
2.87 |
% |
|
2.70 |
% |
|
2.83 |
% |
Net overhead ratio
(3) |
|
1.57 |
% |
|
1.58 |
% |
|
1.69 |
% |
|
1.53 |
% |
|
1.44 |
% |
Return on average
assets |
|
1.26 |
% |
|
1.20 |
% |
|
1.00 |
% |
|
0.96 |
% |
|
1.00 |
% |
Return on average
common equity |
|
11.94 |
% |
|
11.29 |
% |
|
9.39 |
% |
|
9.15 |
% |
|
9.55 |
% |
Return on average
tangible common equity (non-GAAP) (2) |
|
14.72 |
% |
|
14.02 |
% |
|
11.65 |
% |
|
11.39 |
% |
|
12.02 |
% |
Average total
assets |
|
$ |
28,567,579 |
|
|
$ |
27,809,597 |
|
|
$ |
27,179,484 |
|
|
$ |
27,012,295 |
|
|
$ |
26,050,949 |
|
Average total
shareholders’ equity |
|
3,064,154 |
|
|
2,995,592 |
|
|
2,942,999 |
|
|
2,882,682 |
|
|
2,800,905 |
|
Average loans to
average deposits ratio (excluding covered loans) |
|
95.5 |
% |
|
95.2 |
% |
|
92.3 |
% |
|
91.8 |
% |
|
94.1 |
% |
Period-end loans to
deposits ratio (excluding covered loans) |
|
92.8 |
|
|
94.8 |
|
|
93.3 |
|
|
91.3 |
|
|
91.8 |
|
Common Share Data
at end of period: |
|
|
|
|
|
|
|
|
|
|
Market price per common
share |
|
$ |
87.05 |
|
|
$ |
86.05 |
|
|
$ |
82.37 |
|
|
$ |
78.31 |
|
|
$ |
76.44 |
|
Book value per common
share (2) |
|
$ |
52.94 |
|
|
$ |
51.66 |
|
|
$ |
50.96 |
|
|
$ |
49.86 |
|
|
$ |
48.73 |
|
Tangible common book
value per share (2) |
|
$ |
43.50 |
|
|
$ |
42.17 |
|
|
$ |
41.68 |
|
|
$ |
40.53 |
|
|
$ |
39.40 |
|
Common shares
outstanding |
|
56,329,276 |
|
|
56,256,498 |
|
|
55,965,207 |
|
|
55,838,063 |
|
|
55,699,927 |
|
Other Data at end
of period:(6) |
|
|
|
|
|
|
|
|
|
|
Leverage
Ratio(4) |
|
9.4 |
% |
|
9.3 |
% |
|
9.3 |
% |
|
9.2 |
% |
|
9.2 |
% |
Tier 1 Capital to
risk-weighted assets (4) |
|
10.0 |
% |
|
10.0 |
% |
|
9.9 |
% |
|
10.0 |
% |
|
9.8 |
% |
Common equity Tier 1
capital to risk-weighted assets (4) |
|
9.5 |
% |
|
9.5 |
% |
|
9.4 |
% |
|
9.5 |
% |
|
9.3 |
% |
Total capital to
risk-weighted assets (4) |
|
12.0 |
% |
|
12.0 |
% |
|
12.0 |
% |
|
12.2 |
% |
|
12.0 |
% |
Allowance for credit
losses (5) |
|
$ |
144,645 |
|
|
$ |
140,746 |
|
|
$ |
139,174 |
|
|
$ |
134,395 |
|
|
$ |
131,296 |
|
Non-performing
loans |
|
83,282 |
|
|
89,690 |
|
|
90,162 |
|
|
77,983 |
|
|
69,050 |
|
Allowance for credit
losses to total loans (5) |
|
0.64 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.63 |
% |
Non-performing loans to
total loans |
|
0.37 |
% |
|
0.41 |
% |
|
0.42 |
% |
|
0.37 |
% |
|
0.33 |
% |
Number of: |
|
|
|
|
|
|
|
|
|
|
Bank
subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
Banking
offices |
|
162 |
|
|
157 |
|
|
157 |
|
|
156 |
|
|
153 |
|
- Net revenue includes net interest income and non-interest
income.
- See “Supplemental Financial Measures/Ratios” for additional
information on this performance measure/ratio.
- 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.
- Capital ratios for current quarter-end are
estimated.
- 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.
- Asset quality ratios exclude covered loans.
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Consolidated Statements of Condition - 5 Quarter
Trends
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(In
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
304,580 |
|
|
$ |
231,407 |
|
|
$ |
277,534 |
|
|
$ |
251,896 |
|
|
$ |
296,105 |
|
Federal funds sold and
securities purchased under resale agreements |
|
62 |
|
|
57 |
|
|
57 |
|
|
56 |
|
|
56 |
|
Interest bearing
deposits with banks |
|
1,221,407 |
|
|
980,380 |
|
|
1,063,242 |
|
|
1,218,728 |
|
|
1,011,635 |
|
Available-for-sale
securities, at fair value |
|
1,940,787 |
|
|
1,895,688 |
|
|
1,803,666 |
|
|
1,665,903 |
|
|
1,649,636 |
|
Held-to-maturity
securities, at amortized cost |
|
890,834 |
|
|
892,937 |
|
|
826,449 |
|
|
819,340 |
|
|
793,376 |
|
Trading account
securities |
|
862 |
|
|
1,682 |
|
|
995 |
|
|
643 |
|
|
1,987 |
|
Equity securities with
readily determinable fair value |
|
37,839 |
|
|
37,832 |
|
|
— |
|
|
— |
|
|
— |
|
Federal Home Loan Bank
and Federal Reserve Bank stock |
|
96,699 |
|
|
104,956 |
|
|
89,989 |
|
|
87,192 |
|
|
80,812 |
|
Brokerage customer
receivables |
|
16,649 |
|
|
24,531 |
|
|
26,431 |
|
|
23,631 |
|
|
23,281 |
|
Mortgage loans
held-for-sale |
|
455,712 |
|
|
411,505 |
|
|
313,592 |
|
|
370,282 |
|
|
382,837 |
|
Loans, net of unearned
income, excluding covered loans |
|
22,610,560 |
|
|
22,062,134 |
|
|
21,640,797 |
|
|
20,912,781 |
|
|
20,743,332 |
|
Covered loans |
|
— |
|
|
— |
|
|
— |
|
|
46,601 |
|
|
50,119 |
|
Total
loans |
|
22,610,560 |
|
|
22,062,134 |
|
|
21,640,797 |
|
|
20,959,382 |
|
|
20,793,451 |
|
Allowance
for loan losses |
|
(143,402 |
) |
|
(139,503 |
) |
|
(137,905 |
) |
|
(133,119 |
) |
|
(129,591 |
) |
Allowance
for covered loan losses |
|
— |
|
|
— |
|
|
— |
|
|
(758 |
) |
|
(1,074 |
) |
Net
loans |
|
22,467,158 |
|
|
21,922,631 |
|
|
21,502,892 |
|
|
20,825,505 |
|
|
20,662,786 |
|
Premises and equipment,
net |
|
639,345 |
|
|
626,687 |
|
|
621,895 |
|
|
609,978 |
|
|
605,211 |
|
Lease investments,
net |
|
194,160 |
|
|
190,775 |
|
|
212,335 |
|
|
193,828 |
|
|
191,248 |
|
Accrued interest
receivable and other assets |
|
666,673 |
|
|
601,794 |
|
|
567,374 |
|
|
580,612 |
|
|
577,359 |
|
Trade date securities
receivable |
|
450 |
|
|
— |
|
|
90,014 |
|
|
189,896 |
|
|
133,130 |
|
Goodwill |
|
509,957 |
|
|
511,497 |
|
|
501,884 |
|
|
502,021 |
|
|
500,260 |
|
Other intangible
assets |
|
21,414 |
|
|
22,413 |
|
|
17,621 |
|
|
18,651 |
|
|
19,546 |
|
Total assets |
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
|
$ |
27,915,970 |
|
|
$ |
27,358,162 |
|
|
$ |
26,929,265 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
6,520,724 |
|
|
$ |
6,612,319 |
|
|
$ |
6,792,497 |
|
|
$ |
6,502,409 |
|
|
$ |
6,294,052 |
|
Interest
bearing |
|
17,844,755 |
|
|
16,667,008 |
|
|
16,390,850 |
|
|
16,392,654 |
|
|
16,311,640 |
|
Total
deposits |
|
24,365,479 |
|
|
23,279,327 |
|
|
23,183,347 |
|
|
22,895,063 |
|
|
22,605,692 |
|
Federal Home Loan Bank
advances |
|
667,000 |
|
|
915,000 |
|
|
559,663 |
|
|
468,962 |
|
|
318,270 |
|
Other borrowings |
|
255,701 |
|
|
247,092 |
|
|
266,123 |
|
|
251,680 |
|
|
277,710 |
|
Subordinated notes |
|
139,148 |
|
|
139,111 |
|
|
139,088 |
|
|
139,052 |
|
|
139,029 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Trade date securities
payable |
|
— |
|
|
— |
|
|
— |
|
|
880 |
|
|
5,151 |
|
Accrued interest
payable and other liabilities |
|
676,823 |
|
|
591,426 |
|
|
537,244 |
|
|
440,034 |
|
|
490,389 |
|
Total
liabilities |
|
26,357,717 |
|
|
25,425,522 |
|
|
24,939,031 |
|
|
24,449,237 |
|
|
24,089,807 |
|
Shareholders’
Equity: |
|
|
|
|
|
|
|
|
|
|
Preferred
stock |
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
Common
stock |
|
56,437 |
|
|
56,364 |
|
|
56,068 |
|
|
55,940 |
|
|
55,802 |
|
Surplus |
|
1,547,511 |
|
|
1,540,673 |
|
|
1,529,035 |
|
|
1,519,596 |
|
|
1,511,080 |
|
Treasury
stock |
|
(5,355 |
) |
|
(5,355 |
) |
|
(4,986 |
) |
|
(4,884 |
) |
|
(4,884 |
) |
Retained
earnings |
|
1,464,494 |
|
|
1,387,663 |
|
|
1,313,657 |
|
|
1,254,759 |
|
|
1,198,997 |
|
Accumulated other comprehensive loss |
|
(81,216 |
) |
|
(73,095 |
) |
|
(41,835 |
) |
|
(41,486 |
) |
|
(46,537 |
) |
Total
shareholders’ equity |
|
3,106,871 |
|
|
3,031,250 |
|
|
2,976,939 |
|
|
2,908,925 |
|
|
2,839,458 |
|
Total liabilities and shareholders’ equity |
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
|
$ |
27,915,970 |
|
|
$ |
27,358,162 |
|
|
$ |
26,929,265 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Consolidated Statements of Income (Unaudited) - 5 Quarter
Trends
|
|
Three Months Ended |
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(In thousands,
except per share data) |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
Interest
income |
|
|
|
|
|
|
|
|
|
|
Interest
and fees on loans |
|
255,063 |
|
|
234,994 |
|
|
226,447 |
|
|
223,897 |
|
|
209,289 |
|
Mortgage loans
held-for-sale |
|
4,226 |
|
|
2,818 |
|
|
3,291 |
|
|
3,223 |
|
|
3,420 |
|
Interest
bearing deposits with banks |
|
3,243 |
|
|
2,796 |
|
|
2,723 |
|
|
3,272 |
|
|
1,634 |
|
Federal
funds sold and securities purchased under resale agreements |
|
1 |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
Investment securities |
|
19,888 |
|
|
19,128 |
|
|
18,160 |
|
|
16,058 |
|
|
15,524 |
|
Trading
account securities |
|
4 |
|
|
14 |
|
|
2 |
|
|
8 |
|
|
4 |
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
|
1,455 |
|
|
1,298 |
|
|
1,067 |
|
|
1,080 |
|
|
1,153 |
|
Brokerage
customer receivables |
|
167 |
|
|
157 |
|
|
150 |
|
|
150 |
|
|
156 |
|
Total
interest income |
|
284,047 |
|
|
261,205 |
|
|
251,840 |
|
|
247,688 |
|
|
231,181 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
Interest
on deposits |
|
35,293 |
|
|
26,549 |
|
|
24,930 |
|
|
23,655 |
|
|
18,471 |
|
Interest
on Federal Home Loan Bank advances |
|
4,263 |
|
|
3,639 |
|
|
2,124 |
|
|
2,151 |
|
|
2,933 |
|
Interest
on other borrowings |
|
1,698 |
|
|
1,699 |
|
|
1,600 |
|
|
1,482 |
|
|
1,149 |
|
Interest
on subordinated notes |
|
1,787 |
|
|
1,773 |
|
|
1,786 |
|
|
1,772 |
|
|
1,786 |
|
Interest
on junior subordinated debentures |
|
2,836 |
|
|
2,463 |
|
|
2,301 |
|
|
2,640 |
|
|
2,433 |
|
Total
interest expense |
|
45,877 |
|
|
36,123 |
|
|
32,741 |
|
|
31,700 |
|
|
26,772 |
|
Net interest
income |
|
238,170 |
|
|
225,082 |
|
|
219,099 |
|
|
215,988 |
|
|
204,409 |
|
Provision for credit
losses |
|
5,043 |
|
|
8,346 |
|
|
7,772 |
|
|
7,896 |
|
|
8,891 |
|
Net interest income
after provision for credit losses |
|
233,127 |
|
|
216,736 |
|
|
211,327 |
|
|
208,092 |
|
|
195,518 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
|
Wealth
management |
|
22,617 |
|
|
22,986 |
|
|
21,910 |
|
|
19,803 |
|
|
19,905 |
|
Mortgage
banking |
|
39,834 |
|
|
30,960 |
|
|
27,411 |
|
|
28,184 |
|
|
35,939 |
|
Service
charges on deposit accounts |
|
9,151 |
|
|
8,857 |
|
|
8,907 |
|
|
8,645 |
|
|
8,696 |
|
Gains
(losses) on investment securities, net |
|
12 |
|
|
(351 |
) |
|
14 |
|
|
39 |
|
|
47 |
|
Fees from
covered call options |
|
669 |
|
|
1,597 |
|
|
1,610 |
|
|
1,143 |
|
|
890 |
|
Trading
gains (losses), net |
|
124 |
|
|
103 |
|
|
24 |
|
|
(129 |
) |
|
(420 |
) |
Operating
lease income, net |
|
8,746 |
|
|
9,691 |
|
|
8,598 |
|
|
8,461 |
|
|
6,805 |
|
Other |
|
14,080 |
|
|
11,836 |
|
|
12,564 |
|
|
13,585 |
|
|
18,110 |
|
Total
non-interest income |
|
95,233 |
|
|
85,679 |
|
|
81,038 |
|
|
79,731 |
|
|
89,972 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
121,675 |
|
|
112,436 |
|
|
118,009 |
|
|
106,251 |
|
|
106,502 |
|
Equipment |
|
10,527 |
|
|
10,072 |
|
|
9,500 |
|
|
9,947 |
|
|
9,909 |
|
Operating
lease equipment depreciation |
|
6,940 |
|
|
6,533 |
|
|
7,015 |
|
|
6,794 |
|
|
5,662 |
|
Occupancy, net |
|
13,663 |
|
|
13,767 |
|
|
14,154 |
|
|
13,079 |
|
|
12,586 |
|
Data
processing |
|
8,752 |
|
|
8,493 |
|
|
7,915 |
|
|
7,851 |
|
|
7,804 |
|
Advertising and marketing |
|
11,782 |
|
|
8,824 |
|
|
7,382 |
|
|
9,572 |
|
|
8,726 |
|
Professional fees |
|
6,484 |
|
|
6,649 |
|
|
8,879 |
|
|
6,786 |
|
|
7,510 |
|
Amortization of other intangible assets |
|
997 |
|
|
1,004 |
|
|
1,028 |
|
|
1,068 |
|
|
1,141 |
|
FDIC
insurance |
|
4,598 |
|
|
4,362 |
|
|
4,324 |
|
|
3,877 |
|
|
3,874 |
|
OREO
expense, net |
|
980 |
|
|
2,926 |
|
|
599 |
|
|
590 |
|
|
739 |
|
Other |
|
20,371 |
|
|
19,283 |
|
|
17,775 |
|
|
17,760 |
|
|
19,091 |
|
Total
non-interest expense |
|
206,769 |
|
|
194,349 |
|
|
196,580 |
|
|
183,575 |
|
|
183,544 |
|
Income before
taxes |
|
121,591 |
|
|
108,066 |
|
|
95,785 |
|
|
104,248 |
|
|
101,946 |
|
Income tax expense |
|
32,011 |
|
|
26,085 |
|
|
27,004 |
|
|
38,622 |
|
|
37,049 |
|
Net
income |
|
$ |
89,580 |
|
|
$ |
81,981 |
|
|
$ |
68,781 |
|
|
$ |
65,626 |
|
|
$ |
64,897 |
|
Preferred stock
dividends |
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
Net income
applicable to common shares |
|
$ |
87,530 |
|
|
$ |
79,931 |
|
|
$ |
66,731 |
|
|
$ |
63,576 |
|
|
$ |
62,847 |
|
Net income per
common share - Basic |
|
$ |
1.55 |
|
|
$ |
1.42 |
|
|
$ |
1.19 |
|
|
$ |
1.14 |
|
|
$ |
1.15 |
|
Net income per
common share - Diluted |
|
$ |
1.53 |
|
|
$ |
1.40 |
|
|
$ |
1.17 |
|
|
$ |
1.12 |
|
|
$ |
1.11 |
|
Cash dividends
declared per common share |
|
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
0.14 |
|
|
$ |
0.14 |
|
|
$ |
0.14 |
|
Weighted average common
shares outstanding |
|
56,299 |
|
|
56,137 |
|
|
55,924 |
|
|
55,796 |
|
|
54,775 |
|
Dilutive potential
common shares |
|
928 |
|
|
888 |
|
|
1,010 |
|
|
966 |
|
|
1,812 |
|
Average common shares
and dilutive common shares |
|
57,227 |
|
|
57,025 |
|
|
56,934 |
|
|
56,762 |
|
|
56,587 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Period End Loan Balances - 5 Quarter Trends
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
7,289,060 |
|
|
$ |
7,060,871 |
|
|
$ |
6,787,677 |
|
|
$ |
6,456,034 |
|
|
$ |
6,406,289 |
|
Commercial real estate |
|
6,575,084 |
|
|
6,633,520 |
|
|
6,580,618 |
|
|
6,400,781 |
|
|
6,402,494 |
|
Home
equity |
|
593,500 |
|
|
626,547 |
|
|
663,045 |
|
|
672,969 |
|
|
689,483 |
|
Residential real estate |
|
895,470 |
|
|
869,104 |
|
|
832,120 |
|
|
789,499 |
|
|
762,810 |
|
Premium
finance receivables - commercial |
|
2,833,452 |
|
|
2,576,150 |
|
|
2,634,565 |
|
|
2,664,912 |
|
|
2,648,386 |
|
Premium
finance receivables - life insurance |
|
4,302,288 |
|
|
4,189,961 |
|
|
4,035,059 |
|
|
3,795,474 |
|
|
3,719,043 |
|
Consumer
and other |
|
121,706 |
|
|
105,981 |
|
|
107,713 |
|
|
133,112 |
|
|
114,827 |
|
Total
loans, net of unearned income, excluding covered loans |
|
$ |
22,610,560 |
|
|
$ |
22,062,134 |
|
|
$ |
21,640,797 |
|
|
$ |
20,912,781 |
|
|
$ |
20,743,332 |
|
Covered
loans |
|
— |
|
|
— |
|
|
— |
|
|
46,601 |
|
|
50,119 |
|
Total
loans, net of unearned income |
|
$ |
22,610,560 |
|
|
$ |
22,062,134 |
|
|
$ |
21,640,797 |
|
|
$ |
20,959,382 |
|
|
$ |
20,793,451 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
32 |
% |
|
32 |
% |
|
31 |
% |
|
31 |
% |
|
31 |
% |
Commercial real estate |
|
29 |
|
|
30 |
|
|
30 |
|
|
31 |
|
|
31 |
|
Home
equity |
|
3 |
|
|
3 |
|
|
3 |
|
|
3 |
|
|
3 |
|
Residential real estate |
|
4 |
|
|
4 |
|
|
4 |
|
|
3 |
|
|
3 |
|
Premium
finance receivables - commercial |
|
12 |
|
|
12 |
|
|
12 |
|
|
13 |
|
|
13 |
|
Premium
finance receivables - life insurance |
|
19 |
|
|
19 |
|
|
19 |
|
|
18 |
|
|
18 |
|
Consumer
and other |
|
1 |
|
|
— |
|
|
1 |
|
|
1 |
|
|
1 |
|
Total
loans, net of unearned income, excluding covered loans |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
Covered
loans |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total
loans, net of unearned income |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Period End Deposits Balances - 5 Quarter
Trends
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
6,520,724 |
|
|
$ |
6,612,319 |
|
|
$ |
6,792,497 |
|
|
$ |
6,502,409 |
|
|
$ |
6,294,052 |
|
NOW and
interest bearing demand deposits |
|
2,452,474 |
|
|
2,315,122 |
|
|
2,315,055 |
|
|
2,273,025 |
|
|
2,459,238 |
|
Wealth
management deposits (1) |
|
2,523,572 |
|
|
2,495,134 |
|
|
2,323,699 |
|
|
2,171,758 |
|
|
2,464,162 |
|
Money
market |
|
5,205,678 |
|
|
4,617,122 |
|
|
4,515,353 |
|
|
4,607,995 |
|
|
4,449,385 |
|
Savings |
|
2,763,062 |
|
|
2,901,504 |
|
|
2,829,373 |
|
|
2,673,201 |
|
|
2,419,463 |
|
Time
certificates of deposit |
|
4,899,969 |
|
|
4,338,126 |
|
|
4,407,370 |
|
|
4,666,675 |
|
|
4,519,392 |
|
Total
deposits |
|
$ |
24,365,479 |
|
|
$ |
23,279,327 |
|
|
$ |
23,183,347 |
|
|
$ |
22,895,063 |
|
|
$ |
22,605,692 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
27 |
% |
|
28 |
% |
|
29 |
% |
|
28 |
% |
|
28 |
% |
NOW and
interest bearing demand deposits |
|
10 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
11 |
|
Wealth
management deposits (1) |
|
11 |
|
|
11 |
|
|
10 |
|
|
10 |
|
|
11 |
|
Money
market |
|
21 |
|
|
20 |
|
|
20 |
|
|
20 |
|
|
19 |
|
Savings |
|
11 |
|
|
12 |
|
|
12 |
|
|
12 |
|
|
11 |
|
Time
certificates of deposit |
|
20 |
|
|
19 |
|
|
19 |
|
|
20 |
|
|
20 |
|
Total
deposits |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
- 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 |
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
Net interest income -
FTE |
|
$ |
239,549 |
|
|
$ |
226,286 |
|
|
$ |
221,226 |
|
|
$ |
217,947 |
|
|
$ |
206,108 |
|
Call option income |
|
669 |
|
|
1,597 |
|
|
1,610 |
|
|
1,143 |
|
|
890 |
|
Net interest income
including call option income |
|
$ |
240,218 |
|
|
$ |
227,883 |
|
|
$ |
222,836 |
|
|
$ |
219,090 |
|
|
$ |
206,998 |
|
Yield on earning
assets |
|
4.32 |
% |
|
4.13 |
% |
|
4.00 |
% |
|
3.96 |
% |
|
3.88 |
% |
Rate on
interest-bearing liabilities |
|
1.00 |
|
|
0.83 |
|
|
0.75 |
|
|
0.73 |
|
|
0.63 |
|
Rate spread |
|
3.32 |
% |
|
3.30 |
% |
|
3.25 |
% |
|
3.23 |
% |
|
3.25 |
% |
Less: Fully
tax-equivalent adjustment |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.04 |
) |
|
(0.03 |
) |
|
(0.02 |
) |
Net free funds
contribution |
|
0.31 |
|
|
0.26 |
|
|
0.24 |
|
|
0.23 |
|
|
0.18 |
|
Net interest margin
(GAAP-derived) |
|
3.61 |
% |
|
3.54 |
% |
|
3.45 |
% |
|
3.43 |
% |
|
3.41 |
% |
Fully tax-equivalent
adjustment |
|
0.02 |
|
|
0.02 |
|
|
0.04 |
|
|
0.03 |
|
|
0.02 |
|
Net interest margin -
FTE |
|
3.63 |
% |
|
3.56 |
% |
|
3.49 |
% |
|
3.46 |
% |
|
3.43 |
% |
Call option income |
|
0.01 |
|
|
0.03 |
|
|
0.03 |
|
|
0.02 |
|
|
0.01 |
|
Net interest margin -
FTE, including call option income |
|
3.64 |
% |
|
3.59 |
% |
|
3.52 |
% |
|
3.48 |
% |
|
3.44 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Net Interest Margin (Including Call Option Income - YTD
Trends)
|
|
Six Months Ended
June 30, |
|
Years Ended
December 31, |
(Dollars in
thousands) |
|
2018 |
|
2017 |
|
2016 |
|
2015 |
|
2014 |
Net interest income -
FTE |
|
$ |
465,835 |
|
|
$ |
839,563 |
|
|
$ |
728,145 |
|
|
$ |
646,238 |
|
|
$ |
601,744 |
|
Call option income |
|
2,266 |
|
|
4,402 |
|
|
11,470 |
|
|
15,364 |
|
|
7,859 |
|
Net interest income
including call option income |
|
$ |
468,101 |
|
|
$ |
843,965 |
|
|
$ |
739,615 |
|
|
$ |
661,602 |
|
|
$ |
609,603 |
|
Yield on earning
assets |
|
4.23 |
% |
|
3.91 |
% |
|
3.67 |
% |
|
3.76 |
% |
|
3.96 |
% |
Rate on
interest-bearing liabilities |
|
0.91 |
|
|
0.67 |
|
|
0.57 |
|
|
0.54 |
|
|
0.55 |
|
Rate spread |
|
3.32 |
% |
|
3.24 |
% |
|
3.10 |
% |
|
3.22 |
% |
|
3.41 |
% |
Less: Fully
tax-equivalent adjustment |
|
(0.02 |
) |
|
(0.03 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
Net free funds
contribution |
|
0.28 |
|
|
0.20 |
|
|
0.16 |
|
|
0.14 |
|
|
0.12 |
|
Net interest margin
(GAAP-derived) |
|
3.58 |
% |
|
3.41 |
% |
|
3.24 |
% |
|
3.34 |
% |
|
3.51 |
% |
Fully tax-equivalent
adjustment |
|
0.02 |
|
|
0.03 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
Net interest margin -
FTE |
|
3.60 |
% |
|
3.44 |
% |
|
3.26 |
% |
|
3.36 |
% |
|
3.53 |
% |
Call option income |
|
0.02 |
|
|
0.02 |
|
|
0.05 |
|
|
0.08 |
|
|
0.05 |
|
Net interest margin -
FTE, including call option income |
|
3.62 |
% |
|
3.46 |
% |
|
3.31 |
% |
|
3.44 |
% |
|
3.58 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Quarterly Average Balances - 5 Quarter Trends
|
|
Three Months Ended |
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(In
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
Interest-bearing
deposits with banks and cash equivalents |
|
$ |
759,425 |
|
|
$ |
749,973 |
|
|
$ |
914,319 |
|
|
$ |
1,003,572 |
|
|
$ |
722,349 |
|
Investment
securities |
|
2,890,828 |
|
|
2,892,617 |
|
|
2,736,253 |
|
|
2,652,119 |
|
|
2,572,619 |
|
FHLB and FRB stock |
|
115,119 |
|
|
105,414 |
|
|
82,092 |
|
|
81,928 |
|
|
99,438 |
|
Liquidity management
assets |
|
$ |
3,765,372 |
|
|
$ |
3,748,004 |
|
|
$ |
3,732,664 |
|
|
$ |
3,737,619 |
|
|
$ |
3,394,406 |
|
Other earning
assets |
|
21,244 |
|
|
27,571 |
|
|
26,955 |
|
|
25,844 |
|
|
25,749 |
|
Mortgage loans
held-for-sale |
|
403,967 |
|
|
281,181 |
|
|
335,385 |
|
|
336,604 |
|
|
334,843 |
|
Loans, net of unearned
income |
|
22,283,541 |
|
|
21,711,342 |
|
|
21,080,984 |
|
|
20,858,618 |
|
|
20,264,875 |
|
Covered loans |
|
— |
|
|
— |
|
|
6,025 |
|
|
48,415 |
|
|
51,823 |
|
Total
earning assets |
|
$ |
26,474,124 |
|
|
$ |
25,768,098 |
|
|
$ |
25,182,013 |
|
|
$ |
25,007,100 |
|
|
$ |
24,071,696 |
|
Allowance for loan and
covered loan losses |
|
(147,192 |
) |
|
(143,108 |
) |
|
(138,584 |
) |
|
(135,519 |
) |
|
(132,053 |
) |
Cash and due from
banks |
|
270,240 |
|
|
254,489 |
|
|
244,097 |
|
|
242,186 |
|
|
242,495 |
|
Other assets |
|
1,970,407 |
|
|
1,930,118 |
|
|
1,891,958 |
|
|
1,898,528 |
|
|
1,868,811 |
|
Total
assets |
|
$ |
28,567,579 |
|
|
$ |
27,809,597 |
|
|
$ |
27,179,484 |
|
|
$ |
27,012,295 |
|
|
$ |
26,050,949 |
|
NOW and interest
bearing demand deposits |
|
$ |
2,295,268 |
|
|
$ |
2,255,692 |
|
|
$ |
2,284,576 |
|
|
$ |
2,344,848 |
|
|
$ |
2,470,130 |
|
Wealth management
deposits |
|
2,365,191 |
|
|
2,250,139 |
|
|
2,005,197 |
|
|
2,320,674 |
|
|
2,091,251 |
|
Money market
accounts |
|
4,883,645 |
|
|
4,520,620 |
|
|
4,611,515 |
|
|
4,471,342 |
|
|
4,435,670 |
|
Savings accounts |
|
2,702,665 |
|
|
2,813,772 |
|
|
2,741,621 |
|
|
2,581,946 |
|
|
2,329,195 |
|
Time deposits |
|
4,557,187 |
|
|
4,322,111 |
|
|
4,581,464 |
|
|
4,573,081 |
|
|
4,295,428 |
|
Interest-bearing
deposits |
|
$ |
16,803,956 |
|
|
$ |
16,162,334 |
|
|
$ |
16,224,373 |
|
|
$ |
16,291,891 |
|
|
$ |
15,621,674 |
|
Federal Home Loan Bank
advances |
|
1,006,407 |
|
|
872,811 |
|
|
324,748 |
|
|
324,996 |
|
|
689,600 |
|
Other borrowings |
|
240,066 |
|
|
263,125 |
|
|
255,972 |
|
|
268,850 |
|
|
240,547 |
|
Subordinated notes |
|
139,125 |
|
|
139,094 |
|
|
139,065 |
|
|
139,035 |
|
|
139,007 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Total
interest-bearing liabilities |
|
$ |
18,443,120 |
|
|
$ |
17,690,930 |
|
|
$ |
17,197,724 |
|
|
$ |
17,278,338 |
|
|
$ |
16,944,394 |
|
Non-interest bearing
deposits |
|
6,539,731 |
|
|
6,639,845 |
|
|
6,605,553 |
|
|
6,419,326 |
|
|
5,904,679 |
|
Other liabilities |
|
520,574 |
|
|
483,230 |
|
|
433,208 |
|
|
431,949 |
|
|
400,971 |
|
Equity |
|
3,064,154 |
|
|
2,995,592 |
|
|
2,942,999 |
|
|
2,882,682 |
|
|
2,800,905 |
|
Total
liabilities and shareholders’ equity |
|
$ |
28,567,579 |
|
|
$ |
27,809,597 |
|
|
$ |
27,179,484 |
|
|
$ |
27,012,295 |
|
|
$ |
26,050,949 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Net Interest Margin - 5 Quarter Trends
|
|
Three Months Ended |
|
|
June 30,
2018 |
|
March 31,
2018 |
|
December 31,
2017 |
|
September 30,
2017 |
|
June 30,
2017 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks and cash equivalents |
|
1.71 |
% |
|
1.51 |
% |
|
1.18 |
% |
|
1.29 |
% |
|
0.91 |
% |
Investment
securities |
|
2.84 |
|
|
2.76 |
|
|
2.78 |
|
|
2.54 |
|
|
2.55 |
|
FHLB and FRB stock |
|
5.07 |
|
|
4.99 |
|
|
5.15 |
|
|
5.23 |
|
|
4.66 |
|
Liquidity management
assets |
|
2.68 |
% |
|
2.57 |
% |
|
2.44 |
% |
|
2.26 |
% |
|
2.27 |
% |
Other earning
assets |
|
3.24 |
|
|
2.56 |
|
|
2.27 |
|
|
2.49 |
|
|
2.53 |
|
Mortgage loans
held-for-sale |
|
4.20 |
|
|
4.06 |
|
|
3.89 |
|
|
3.80 |
|
|
4.10 |
|
Loans, net of unearned
income |
|
4.61 |
|
|
4.40 |
|
|
4.28 |
|
|
4.27 |
|
|
4.15 |
|
Covered loans |
|
— |
|
|
— |
|
|
5.66 |
|
|
4.91 |
|
|
5.01 |
|
Total
earning assets |
|
4.32 |
% |
|
4.13 |
% |
|
4.00 |
% |
|
3.96 |
% |
|
3.88 |
% |
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
NOW and interest
bearing demand deposits |
|
0.33 |
% |
|
0.25 |
% |
|
0.24 |
% |
|
0.22 |
% |
|
0.20 |
% |
Wealth management
deposits |
|
1.19 |
|
|
0.98 |
|
|
0.80 |
|
|
0.81 |
|
|
0.55 |
|
Money market
accounts |
|
0.67 |
|
|
0.42 |
|
|
0.36 |
|
|
0.31 |
|
|
0.24 |
|
Savings accounts |
|
0.40 |
|
|
0.39 |
|
|
0.39 |
|
|
0.33 |
|
|
0.26 |
|
Time deposits |
|
1.37 |
|
|
1.16 |
|
|
1.09 |
|
|
1.04 |
|
|
0.95 |
|
Interest-bearing
deposits |
|
0.84 |
% |
|
0.67 |
% |
|
0.61 |
% |
|
0.58 |
% |
|
0.47 |
% |
Federal Home Loan Bank
advances |
|
1.70 |
|
|
1.69 |
|
|
2.59 |
|
|
2.63 |
|
|
1.71 |
|
Other borrowings |
|
2.84 |
|
|
2.62 |
|
|
2.48 |
|
|
2.19 |
|
|
1.92 |
|
Subordinated notes |
|
5.14 |
|
|
5.10 |
|
|
5.14 |
|
|
5.10 |
|
|
5.14 |
|
Junior subordinated
debentures |
|
4.42 |
|
|
3.89 |
|
|
3.55 |
|
|
4.07 |
|
|
3.80 |
|
Total
interest-bearing liabilities |
|
1.00 |
% |
|
0.83 |
% |
|
0.75 |
% |
|
0.73 |
% |
|
0.63 |
% |
Interest rate
spread |
|
3.32 |
% |
|
3.30 |
% |
|
3.25 |
% |
|
3.23 |
% |
|
3.25 |
% |
Less: Fully
tax-equivalent adjustment |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.04 |
) |
|
(0.03 |
) |
|
(0.02 |
) |
Net free
funds/contribution |
|
0.31 |
|
|
0.26 |
|
|
0.24 |
|
|
0.23 |
|
|
0.18 |
|
Net interest margin
(GAAP) |
|
3.61 |
% |
|
3.54 |
% |
|
3.45 |
% |
|
3.43 |
% |
|
3.41 |
% |
Fully tax-equivalent
adjustment |
|
0.02 |
|
|
0.02 |
|
|
0.04 |
|
|
0.03 |
|
|
0.02 |
|
Net interest margin -
FTE |
|
3.63 |
% |
|
3.56 |
% |
|
3.49 |
% |
|
3.46 |
% |
|
3.43 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Interest Income - 5 Quarter Trends
|
|
Three Months Ended |
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(In
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
Brokerage |
|
$ |
5,784 |
|
|
$ |
6,031 |
|
|
$ |
6,067 |
|
|
$ |
5,127 |
|
|
$ |
5,449 |
|
Trust and asset
management |
|
16,833 |
|
|
16,955 |
|
|
15,843 |
|
|
14,676 |
|
|
14,456 |
|
Total
wealth management |
|
22,617 |
|
|
22,986 |
|
|
21,910 |
|
|
19,803 |
|
|
19,905 |
|
Mortgage banking |
|
39,834 |
|
|
30,960 |
|
|
27,411 |
|
|
28,184 |
|
|
35,939 |
|
Service charges on
deposit accounts |
|
9,151 |
|
|
8,857 |
|
|
8,907 |
|
|
8,645 |
|
|
8,696 |
|
Gains (losses) on
investment securities, net |
|
12 |
|
|
(351 |
) |
|
14 |
|
|
39 |
|
|
47 |
|
Fees from covered call
options |
|
669 |
|
|
1,597 |
|
|
1,610 |
|
|
1,143 |
|
|
890 |
|
Trading gains (losses),
net |
|
124 |
|
|
103 |
|
|
24 |
|
|
(129 |
) |
|
(420 |
) |
Operating lease income,
net |
|
8,746 |
|
|
9,691 |
|
|
8,598 |
|
|
8,461 |
|
|
6,805 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
Interest
rate swap fees |
|
3,829 |
|
|
2,237 |
|
|
1,963 |
|
|
1,762 |
|
|
2,221 |
|
BOLI |
|
1,544 |
|
|
714 |
|
|
754 |
|
|
897 |
|
|
888 |
|
Administrative services |
|
1,205 |
|
|
1,061 |
|
|
1,103 |
|
|
1,052 |
|
|
986 |
|
Early
pay-offs of capital leases |
|
554 |
|
|
33 |
|
|
7 |
|
|
— |
|
|
10 |
|
Miscellaneous |
|
6,948 |
|
|
7,791 |
|
|
8,737 |
|
|
9,874 |
|
|
14,005 |
|
Total
other income |
|
14,080 |
|
|
11,836 |
|
|
12,564 |
|
|
13,585 |
|
|
18,110 |
|
Total Non-Interest Income |
|
$ |
95,233 |
|
|
$ |
85,679 |
|
|
$ |
81,038 |
|
|
$ |
79,731 |
|
|
$ |
89,972 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Interest Expense - 5 Quarter Trends
|
|
Three Months Ended |
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(In
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
66,976 |
|
|
$ |
61,986 |
|
|
$ |
58,239 |
|
|
$ |
57,689 |
|
|
$ |
55,215 |
|
Commissions and
incentive compensation |
|
35,907 |
|
|
31,949 |
|
|
40,723 |
|
|
32,095 |
|
|
34,050 |
|
Benefits |
|
18,792 |
|
|
18,501 |
|
|
19,047 |
|
|
16,467 |
|
|
17,237 |
|
Total salaries and
employee benefits |
|
121,675 |
|
|
112,436 |
|
|
118,009 |
|
|
106,251 |
|
|
106,502 |
|
Equipment |
|
10,527 |
|
|
10,072 |
|
|
9,500 |
|
|
9,947 |
|
|
9,909 |
|
Operating lease
equipment depreciation |
|
6,940 |
|
|
6,533 |
|
|
7,015 |
|
|
6,794 |
|
|
5,662 |
|
Occupancy, net |
|
13,663 |
|
|
13,767 |
|
|
14,154 |
|
|
13,079 |
|
|
12,586 |
|
Data processing |
|
8,752 |
|
|
8,493 |
|
|
7,915 |
|
|
7,851 |
|
|
7,804 |
|
Advertising and
marketing |
|
11,782 |
|
|
8,824 |
|
|
7,382 |
|
|
9,572 |
|
|
8,726 |
|
Professional fees |
|
6,484 |
|
|
6,649 |
|
|
8,879 |
|
|
6,786 |
|
|
7,510 |
|
Amortization of other
intangible assets |
|
997 |
|
|
1,004 |
|
|
1,028 |
|
|
1,068 |
|
|
1,141 |
|
FDIC insurance |
|
4,598 |
|
|
4,362 |
|
|
4,324 |
|
|
3,877 |
|
|
3,874 |
|
OREO expense, net |
|
980 |
|
|
2,926 |
|
|
599 |
|
|
590 |
|
|
739 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
1,174 |
|
|
1,252 |
|
|
1,057 |
|
|
990 |
|
|
1,033 |
|
Postage |
|
2,567 |
|
|
1,866 |
|
|
1,427 |
|
|
1,814 |
|
|
2,080 |
|
Miscellaneous |
|
16,630 |
|
|
16,165 |
|
|
15,291 |
|
|
14,956 |
|
|
15,978 |
|
Total
other expense |
|
20,371 |
|
|
19,283 |
|
|
17,775 |
|
|
17,760 |
|
|
19,091 |
|
Total Non-Interest Expense |
|
$ |
206,769 |
|
|
$ |
194,349 |
|
|
$ |
196,580 |
|
|
$ |
183,575 |
|
|
$ |
183,544 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Allowance for Credit Losses, excluding covered loans - 5
Quarter Trends
|
|
Three Months Ended |
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2017 |
Allowance for
loan losses at beginning of period |
|
$ |
139,503 |
|
|
$ |
137,905 |
|
|
$ |
133,119 |
|
|
$ |
129,591 |
|
|
$ |
125,819 |
|
Provision for
credit losses |
|
5,043 |
|
|
8,346 |
|
|
7,772 |
|
|
7,942 |
|
|
8,952 |
|
Other
adjustments (1) |
|
(44 |
) |
|
(40 |
) |
|
698 |
|
|
(39 |
) |
|
(30 |
) |
Reclassification (to) from allowance for unfunded
lending-related commitments |
|
— |
|
|
26 |
|
|
7 |
|
|
94 |
|
|
106 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
2,210 |
|
|
2,687 |
|
|
1,340 |
|
|
2,265 |
|
|
913 |
|
Commercial real estate |
|
155 |
|
|
813 |
|
|
1,001 |
|
|
989 |
|
|
1,985 |
|
Home
equity |
|
612 |
|
|
357 |
|
|
728 |
|
|
968 |
|
|
1,631 |
|
Residential real estate |
|
180 |
|
|
571 |
|
|
542 |
|
|
267 |
|
|
146 |
|
Premium
finance receivables - commercial |
|
3,254 |
|
|
4,721 |
|
|
2,314 |
|
|
1,716 |
|
|
1,878 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
459 |
|
|
129 |
|
|
207 |
|
|
213 |
|
|
175 |
|
Total
charge-offs |
|
6,870 |
|
|
9,278 |
|
|
6,132 |
|
|
6,418 |
|
|
6,728 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
666 |
|
|
262 |
|
|
235 |
|
|
801 |
|
|
561 |
|
Commercial real estate |
|
2,387 |
|
|
1,687 |
|
|
1,037 |
|
|
323 |
|
|
276 |
|
Home
equity |
|
171 |
|
|
123 |
|
|
359 |
|
|
178 |
|
|
144 |
|
Residential real estate |
|
1,522 |
|
|
40 |
|
|
165 |
|
|
55 |
|
|
54 |
|
Premium
finance receivables - commercial |
|
975 |
|
|
385 |
|
|
613 |
|
|
499 |
|
|
404 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
49 |
|
|
47 |
|
|
32 |
|
|
93 |
|
|
33 |
|
Total
recoveries |
|
5,770 |
|
|
2,544 |
|
|
2,441 |
|
|
1,949 |
|
|
1,472 |
|
Net
charge-offs |
|
(1,100 |
) |
|
(6,734 |
) |
|
(3,691 |
) |
|
(4,469 |
) |
|
(5,256 |
) |
Allowance for
loan losses at period end |
|
$ |
143,402 |
|
|
$ |
139,503 |
|
|
$ |
137,905 |
|
|
$ |
133,119 |
|
|
$ |
129,591 |
|
Allowance for
unfunded lending-related commitments at period end |
|
1,243 |
|
|
1,243 |
|
|
1,269 |
|
|
1,276 |
|
|
1,705 |
|
Allowance for
credit losses at period end |
|
$ |
144,645 |
|
|
$ |
140,746 |
|
|
$ |
139,174 |
|
|
$ |
134,395 |
|
|
$ |
131,296 |
|
Annualized net
charge-offs (recoveries) by category as a percentage of its own
respective category’s average: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
0.09 |
% |
|
0.14 |
% |
|
0.07 |
% |
|
0.09 |
% |
|
0.02 |
% |
Commercial real estate |
|
(0.14 |
) |
|
(0.05 |
) |
|
0.00 |
|
|
0.04 |
|
|
0.11 |
|
Home
equity |
|
0.29 |
|
|
0.15 |
|
|
0.22 |
|
|
0.46 |
|
|
0.85 |
|
Residential real estate |
|
(0.64 |
) |
|
0.26 |
|
|
0.18 |
|
|
0.11 |
|
|
0.05 |
|
Premium
finance receivables - commercial |
|
0.34 |
|
|
0.68 |
|
|
0.26 |
|
|
0.18 |
|
|
0.23 |
|
Premium
finance receivables - life insurance |
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
Consumer
and other |
|
1.21 |
|
|
0.26 |
|
|
0.52 |
|
|
0.37 |
|
|
0.45 |
|
Total
loans, net of unearned income, excluding covered loans |
|
0.02 |
% |
|
0.13 |
% |
|
0.07 |
% |
|
0.08 |
% |
|
0.10 |
% |
Net charge-offs
as a percentage of the provision for credit losses |
|
21.81 |
% |
|
80.69 |
% |
|
47.49 |
% |
|
56.27 |
% |
|
58.71 |
% |
Loans at
period-end |
|
$ |
22,610,560 |
|
|
$ |
22,062,134 |
|
|
$ |
21,640,797 |
|
|
$ |
20,912,781 |
|
|
$ |
20,743,332 |
|
Allowance for
loan losses as a percentage of loans at period end |
|
0.63 |
% |
|
0.63 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.62 |
% |
Allowance for
credit losses as a percentage of loans at period end |
|
0.64 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.63 |
% |
- Includes $742,000 of allowance for covered loan losses
reclassified as a result of the termination of all existing loss
share agreements with the FDIC during the fourth quarter of
2017.
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Performing Assets, excluding covered assets - 5 Quarter
Trends
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in
thousands) |
2018 |
|
2018 |
|
2017 (3) |
|
2017 |
|
2017 |
Loans past due
greater than 90 days and still
accruing(1): |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Commercial real estate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Home
equity |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential real estate |
— |
|
|
— |
|
|
3,278 |
|
|
— |
|
|
179 |
|
Premium
finance receivables - commercial |
5,159 |
|
|
8,547 |
|
|
9,242 |
|
|
9,584 |
|
|
5,922 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
6,740 |
|
|
1,046 |
|
Consumer
and other |
224 |
|
|
207 |
|
|
40 |
|
|
159 |
|
|
63 |
|
Total
loans past due greater than 90 days and still accruing |
5,383 |
|
|
8,754 |
|
|
12,560 |
|
|
16,483 |
|
|
7,210 |
|
Non-accrual
loans(2): |
|
|
|
|
|
|
|
|
|
Commercial |
18,388 |
|
|
14,007 |
|
|
15,696 |
|
|
13,931 |
|
|
10,191 |
|
Commercial real estate |
19,195 |
|
|
21,825 |
|
|
22,048 |
|
|
14,878 |
|
|
16,980 |
|
Home
equity |
9,096 |
|
|
9,828 |
|
|
8,978 |
|
|
7,581 |
|
|
9,482 |
|
Residential real estate |
15,825 |
|
|
17,214 |
|
|
17,977 |
|
|
14,743 |
|
|
14,292 |
|
Premium
finance receivables - commercial |
14,832 |
|
|
17,342 |
|
|
12,163 |
|
|
9,827 |
|
|
10,456 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
563 |
|
|
720 |
|
|
740 |
|
|
540 |
|
|
439 |
|
Total
non-accrual loans |
77,899 |
|
|
80,936 |
|
|
77,602 |
|
|
61,500 |
|
|
61,840 |
|
Total
non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
18,388 |
|
|
14,007 |
|
|
15,696 |
|
|
13,931 |
|
|
10,191 |
|
Commercial real estate |
19,195 |
|
|
21,825 |
|
|
22,048 |
|
|
14,878 |
|
|
16,980 |
|
Home
equity |
9,096 |
|
|
9,828 |
|
|
8,978 |
|
|
7,581 |
|
|
9,482 |
|
Residential real estate |
15,825 |
|
|
17,214 |
|
|
21,255 |
|
|
14,743 |
|
|
14,471 |
|
Premium
finance receivables - commercial |
19,991 |
|
|
25,889 |
|
|
21,405 |
|
|
19,411 |
|
|
16,378 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
6,740 |
|
|
1,046 |
|
Consumer
and other |
787 |
|
|
927 |
|
|
780 |
|
|
699 |
|
|
502 |
|
Total
non-performing loans |
$ |
83,282 |
|
|
$ |
89,690 |
|
|
$ |
90,162 |
|
|
$ |
77,983 |
|
|
$ |
69,050 |
|
Other
real estate owned |
18,925 |
|
|
18,481 |
|
|
20,244 |
|
|
17,312 |
|
|
16,853 |
|
Other
real estate owned - from acquisitions |
16,406 |
|
|
18,117 |
|
|
20,402 |
|
|
20,066 |
|
|
22,508 |
|
Other
repossessed assets |
305 |
|
|
113 |
|
|
153 |
|
|
301 |
|
|
532 |
|
Total
non-performing assets |
$ |
118,918 |
|
|
$ |
126,401 |
|
|
$ |
130,961 |
|
|
$ |
115,662 |
|
|
$ |
108,943 |
|
TDRs
performing under the contractual terms of the loan agreement |
$ |
57,249 |
|
|
$ |
39,562 |
|
|
$ |
39,683 |
|
|
$ |
26,972 |
|
|
$ |
28,008 |
|
Total
non-performing loans by category as a percent of its own respective
category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
0.25 |
% |
|
0.20 |
% |
|
0.23 |
% |
|
0.22 |
% |
|
0.16 |
% |
Commercial real estate |
0.29 |
|
|
0.33 |
|
|
0.34 |
|
|
0.23 |
|
|
0.27 |
|
Home
equity |
1.53 |
|
|
1.57 |
|
|
1.35 |
|
|
1.13 |
|
|
1.38 |
|
Residential real estate |
1.77 |
|
|
1.98 |
|
|
2.55 |
|
|
1.87 |
|
|
1.90 |
|
Premium
finance receivables - commercial |
0.71 |
|
|
1.00 |
|
|
0.81 |
|
|
0.73 |
|
|
0.62 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
0.18 |
|
|
0.03 |
|
Consumer
and other |
0.65 |
|
|
0.87 |
|
|
0.72 |
|
|
0.53 |
|
|
0.44 |
|
Total
loans, net of unearned income |
0.37 |
% |
|
0.41 |
% |
|
0.42 |
% |
|
0.37 |
% |
|
0.33 |
% |
Total non-performing assets as a percentage of total
assets |
0.40 |
% |
|
0.44 |
% |
|
0.47 |
% |
|
0.42 |
% |
|
0.40 |
% |
Allowance for loan losses as a percentage of total
non-performing loans |
172.19 |
% |
|
155.54 |
% |
|
152.95 |
% |
|
170.70 |
% |
|
187.68 |
% |
- As of the dates shown, no TDRs were past due greater than
90 days and still accruing interest.
- Non-accrual loans included TDRs totaling $8.1 million, $8.1
million, $10.1 million, $6.2 million and $5.1 million as of
June 30, 2018, March 31, 2018, December 31, 2017,
September 30, 2017 and June 30, 2017, respectively.
- Includes $2.6 million of non-performing loans and $2.9
million of other real estate owned reclassified from covered assets
as a result of the termination of all existing loss share
agreements with the FDIC during the fourth quarter of
2017.
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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