Wintrust Financial Corporation ("Wintrust" or "the Company")
(Nasdaq:WTFC) announced net income of $16.0 million or $0.41 per
diluted common share for the quarter ended March 31, 2010. This
compares with earnings of $6.4 million ($0.06 per diluted common
share) for the first quarter of 2009 and $28.2 million ($0.90 per
diluted common share) for the fourth quarter of 2009.
Edward J. Wehmer, President and Chief Executive Officer,
commented, "We are pleased to report net income for the first
quarter of 2010 of $16.0 million and stability in the level of
non-performing loans since the end of the year. Our Company
has recently had many positive developments, including expansion of
the net interest margin, a slight decrease in the percentage of
non-performing loans to total loans, good growth in our core
customer deposit base, a strong pipeline of potential new lending
relationships, a successful capital offering which improved our
capital ratios and the recent acquisition of two banking operations
in new, desirable markets through FDIC-assisted transactions."
Mr. Wehmer noted, "The Company's net interest margin for the
quarter increased to 3.38% from 3.10% in the fourth quarter of
2009, reflecting the positive results from deposit re-pricing and
improved loan pricing. The increase in our net interest margin
was accomplished despite a large amount of liquidity currently
residing on our balance sheet which generates relatively little
income. As we identify opportunities to re-deploy low yielding
short-term liquidity assets into higher yielding loans we will do
so, which could further enhance our net interest margin."
Commenting on credit, Mr. Wehmer said, "For the third
consecutive quarter, total non-performing loans as a percentage of
total loans declined and represented only 1.55% of the total loan
portfolio at March 31, 2010. This level of non-performing
loans compares very favorably to our local peer group. Other
real estate owned increased $9 million as we took control of $20
million of properties and sold $11 million of properties since the
end of the year. During the first quarter, we recorded a
provision for credit losses of $29 million and net charge-offs of
$27 million. Our allowance for loan losses increased to $102
million or 1.13% of total loans. Adding our reserve for unfunded
lending-related commitments and credit-related discounts on
purchased loans brings the Company's total credit reserves to $140
million or 1.54% of total loans."
Mr. Wehmer summarized, "We completed a very successful capital
raise during the first quarter, netting $210 million in proceeds to
the Company. This additional capital brings our total
risk-based capital ratio to just under 15% at March 31,
2010. Strong capital ratios coupled with high levels of
liquidity position Wintrust to resume growth of our community
banking franchise and to continue to capitalize on the dislocation
of assets and people in the marketplace. Our continued focus
on increasing core earnings and clearing our balance sheet of
problem assets will allow us to continue to participate in
FDIC-assisted acquisitions as well as unassisted acquisitions of
banks or other earning asset portfolios. These opportunities will
all be evaluated for their long-term strategic value to the Company
and done with a disciplined approach."
The Company's total assets of $12.9 billion at March 31, 2010
increased $624 million from December 31, 2009 and $2.0 billion from
March 31, 2009. Total deposits as of March 31, 2010 were $9.7
billion, a decrease of $192 million from December 31, 2009 and an
increase of $1.1 billion from March 31, 2009. Total loans,
including loans held for sale, were $9.2 billion as of March 31,
2010, an increase of $539 million over the $8.7 billion balance as
of December 31, 2009 and an increase of $1.2 billion over March 31,
2009. See "Acquisitions" and "Securitizations" later in this
document for additional explanations of loan balance changes
between comparable periods. The Company's loan portfolio is
diversified amongst a wide variety of loan types. Please see
the tables included in the remainder of this release for additional
disclosures regarding the components of the commercial and
commercial real estate portfolio, the allowance for credit losses
and loan portfolio aging statistics.
Total shareholders' equity was $1.4 billion, or a book value of
$34.76 per common share, at March 31, 2010, compared to $1.1
billion, or a book value of $32.64 per common share, at March 31,
2009.
Wintrust's key operating measures and growth rates for the first
quarter of 2010 as compared to the sequential and linked quarters
are shown in the table below:
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
December 31,
|
March 31,
|
% or (4) basis point (bp) change from
4th Quarter
|
% or basis point (bp) change from 1st
Quarter
|
|
|
2010
|
2009
|
2009
|
2009
|
2009
|
|
|
|
|
|
|
|
|
Net income
|
$ 16,017
|
$ 28,167
|
$ 6,358
|
(43)%
|
152%
|
|
Net income per common share – diluted
|
$ 0.41
|
$ 0.90
|
$ 0.06
|
(54)%
|
583%
|
|
|
|
|
|
|
|
|
Net revenue (1)
|
$ 138,472
|
$ 172,022
|
$ 101,209
|
(20)%
|
37%
|
|
Net interest income
|
$ 95,865
|
$ 86,934
|
$ 64,782
|
10%
|
48%
|
|
|
|
|
|
|
|
|
Net interest margin (2)
|
3.38%
|
3.10%
|
2.71%
|
28%
|
67%
|
|
Net overhead ratio (3)
|
1.33%
|
0.17%
|
1.53%
|
116%
|
(20)%
|
|
Return on average assets
|
0.52%
|
0.92%
|
0.24%
|
(40)%
|
28%
|
|
Return on average common equity
|
4.93%
|
10.97%
|
0.71%
|
(604)%
|
422%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At end of period
|
|
|
|
|
|
|
Total assets
|
$ 12,839,978
|
$ 12,215,620
|
$ 10,818,941
|
21%
|
19%
|
|
Total loans
|
$ 9,070,562
|
$ 8,411,771
|
$ 7,841,447
|
32%
|
16%
|
|
Total loans, including loans held-for-sale
|
$ 9,226,611
|
$ 8,687,486
|
$ 8,060,154
|
25%
|
14%
|
|
Total deposits
|
$ 9,724,870
|
$ 9,917,074
|
$ 8,625,977
|
(8)%
|
13%
|
|
Total shareholders' equity
|
$ 1,364,832
|
$ 1,138,639
|
$ 1,063,227
|
81%
|
28%
|
|
|
|
|
|
|
|
|
(1) Net revenue is net interest income plus
non-interest income.
|
|
|
|
|
(2) See "Supplemental Financial Measures/Ratios"
for additional information on this performance measure/ratio.
|
|
(3) The net overhead ratio is calculated by
netting total non-interest expense and total non-interest income,
annualizing this amount, and dividing by that period's average
total assets. A lower ratio indicates a higher degree of
efficiency.
|
|
(4) Period-end balance sheet percentage changes are
annualized.
|
|
|
|
Certain returns, yields, performance ratios, or quarterly growth
rates are "annualized" in this presentation to represent an annual
time period. This is done for analytical purposes to better
discern for decision-making purposes underlying performance trends
when compared to full-year or year-over-year amounts. For
example, a 5% growth rate for a quarter would represent an
annualized 20% growth rate. Additional supplemental financial
information showing quarterly trends can be found on the Company's
web site at www.wintrust.com by choosing "Financial Reports" and
then choosing "Supplemental Financial Info."
Items Impacting Comparative Financial
Results: Acquisitions, Securitization and
Stock Offerings/Regulatory Capital
Acquisitions
On April 23, 2010, subsequent to quarter-end, the Company
announced that two of its wholly-owned subsidiary banks, Northbrook
Bank & Trust Company ("Northbrook") and Wheaton Bank &
Trust Company ("Wheaton"), in two FDIC-assisted transactions, had
respectively acquired certain assets and liabilities and the
banking operations of Lincoln Park Savings Bank ("Lincoln Park")
and Wheatland Bank ("Wheatland"). Lincoln Park operates four
locations in Chicago, Illinois. Wheatland has one location in
Naperville, Illinois. In summary:
-
Northbrook assumed the outstanding deposits of Lincoln Park for
a premium of approximately 0.4% and acquired approximately $190
million of assets (subject to final adjustments) at a discount of
approximately 10.7%. The acquired assets are subject to
loss-sharing agreements with the FDIC, whereby Northbrook will
share in losses and the FDIC will cover 80% of the losses of
certain loans and foreclosed real estate at Lincoln Park.
-
Wheaton assumed the majority of the outstanding deposits of
Wheatland for a premium of approximately 0.4% and acquired
approximately $380 million of assets (subject to final adjustments)
at a discount of approximately 16.0%. The acquired assets are
subject to loss-sharing agreements with the FDIC, whereby Wheaton
will share in losses and the FDIC will cover 80% of the losses of
certain loans and foreclosed real estate at Wheatland.
On July 28, 2009, the Company announced that its indirect,
wholly-owned subsidiary, First Insurance Funding Corp. ("FIFC")
completed the purchase of a majority of the U.S. life insurance
premium finance assets of A.I. Credit Corp. and A.I. Credit
Consumer Discount Company ("the seller"), subsidiaries of American
International Group, Inc. In doing so, FIFC acquired one of
the largest life insurance premium finance portfolios in the
industry, as well as certain other assets related to the life
insurance premium finance business and assumed certain related
liabilities. An aggregate unpaid principal balance of $949.3
million was purchased for $685.3 million in cash. At closing,
a portion of the portfolio with an aggregate purchase price of
approximately $230 million was placed in escrow, pending the
receipt of required third party consents. During the first
quarter of 2010, based upon receipt of consents, the escrow was
terminated and remaining funds released to the seller and
FIFC.
Also, as a part of this purchase, $84.4 million of
additional life insurance premium finance assets were available for
future purchase by FIFC subject to satisfying certain
conditions. On October 2, 2009, the conditions were satisfied
in relation to the majority of the additional life insurance
premium finance assets that were available for purchase and FIFC
purchased $83.4 million of the $84.4 million of life insurance
premium finance assets available for an aggregate purchase price of
$60.5 million.
Both purchases were accounted for as a single business
combination as required by Accounting Standards Codification (ASC)
805 Business Combinations ("ASC 805"), which became effective for
the Company beginning on January 1, 2009. Under ASC 805 a gain
is recorded equal to the amount by which the fair value of net
assets purchased exceeded the purchase price.
The Company recognized a $10.9 million gain in the first quarter
of 2010, a $43.0 million gain in the fourth quarter of 2009 and a
$113.1 million gain in the third quarter of 2009, relating to the
loans it acquired for which required third party consents were
obtained. As of March 31, 2010, the full amount of bargain
purchase gain has been recognized into income. This gain is
shown as a component of non-interest income on our statement of
income.
The difference between the fair value of the loans acquired and
the outstanding principal balance of these loans at the date of
purchase represented a discount of $121.8 million and is comprised
of two components, an accretable component totaling $80.5 million
and a non-accretable component totaling $41.3 million. The
accretable component will be recognized into interest income using
the effective yield method over the estimated remaining life of the
loans. The non-accretable portion will be evaluated each
quarter and if the loans' credit related conditions improve, a
portion will be transferred to the accretable component and
accreted over future periods. In the event a specific loan
prepays in whole, any remaining accretable and non-accretable
discount is recognized in income immediately. If credit
related conditions deteriorate, an allowance related to these loans
will be established as part of our provision for loan
losses. The impact related to this transaction is
included in Wintrust's consolidated financial results only since
the effective date of acquisition. The "Purchased Loan
Portfolio – Summary of Acquisitions" table in the Non-Interest
Income section presented later in this document displays the status
of the remaining discounts as of March 31, 2010.
On April 20, 2009, Wayne Hummer Asset Management Company
completed its purchase and assumption of certain assets and
liabilities of Advanced Investment Partners, LLC ("AIP"). AIP
is an investment management firm specializing in the active
management of domestic equity investment strategies. The
impact related to the AIP transaction is included in Wintrust's
consolidated financial results only since the effective date of
acquisition.
Securitization
Sale of
Loans
On September 11, 2009, Wintrust's indirect, wholly-owned
subsidiary, FIFC Premium Funding I, LLC (the "Issuer"), sold
$600,000,000 aggregate principal amount of its Series 2009-A
Premium Finance Asset Backed Notes, Class A (the "Notes"). The
Notes were issued in a securitization transaction sponsored by
First Insurance Funding Corp. At the time of closing, the
securitization was an off-balance sheet financing transaction for
the Company.
The Notes bear interest at an annual rate equal to one-month
LIBOR plus 1.45% and have an expected average term of
2.93 years; provided, however, that the entire unpaid balance
of the Notes shall be due and payable in full on February 17,
2014. At the time of issuance, the Notes were eligible collateral
under the Federal Reserve Bank of New York's Term Asset-Backed
Securities Loan Facility ("TALF"). The Notes are rated Aaa by
Moody's and AAA by Standard & Poor's. The Issuer's obligations
under the Notes are secured by revolving loans made to buyers of
property and casualty insurance policies to finance the related
premiums payable by the buyers to the insurance companies for the
policies. The premium finance loans will be transferred from time
to time by FIFC to FIFC Funding I, LLC (the "Depositor") and by the
Depositor to the Issuer.
Change in Accounting Treatment
At March 31, 2009, prior to the existence of the securitization
facility, all premium finance loans held by the Company were
reflected as loans on its balance sheet. At December 31,
2009, with the securitization facility in place, approximately $594
million of commercial premium finance loans were held in the
securitization facility and were not reflected on the Company's
balance sheet. In accordance with newly applicable accounting
guidance, and as anticipated by the Company, effective January 1,
2010 the securitization facility was recorded on the balance sheet
of the Company as a secured borrowing. As a result of this new
guidance, the Company's balance sheet at March 31, 2010 reflects
all loans currently outstanding in the securitization facility
(approximately $567 million), the $600 million of secured borrowing
notes issued to the securitization investors and the
over-collateralization and retained interest components (primarily
cash equivalents).
Stock Offerings/Regulatory Capital
On March 9, 2010, the Company announced the closing of its
public offering of 5.8 million shares of common stock at $33.25 per
share. The Company received net proceeds of approximately $182.9
million, after deducting underwriting discounts and commissions and
estimated offering expenses. On March 16, 2010, the Company's
underwriters, who were granted a 30-day option to purchase up to an
additional 870,000 shares at $33.25 per share to cover
over-allotments, fully exercised this option for additional net
proceeds of approximately $27.5 million, after deducting
underwriting discounts and commissions and estimated offering
expenses. In total, the Company sold 6.67 million shares for
net proceeds of approximately $210.3 million. As of March 31,
2010, the Company's estimated capital ratios improved to 14.9% for
total risk-based capital, 13.3% for tier 1 capital and 10.8% for
leverage. Additionally, the Company's tangible common
equity ratio improved to 6.3% at March 31, 2010.
Financial Performance Overview – First Quarter of
2010
For the first quarter of 2010, net interest income totaled $95.9
million, an increase of $31.1 million as compared to the first
quarter of 2009 and an increase of $8.9 million as compared to the
fourth quarter of 2009. Average earning assets for the first
quarter of 2010 increased by $1.8 billion compared to the first
quarter of 2009. Earning asset growth over the past 12 months
was primarily a result of the $1.2 billion increase in average
loans and $545 million increase in liquidity management
assets. The acquisition of a life insurance premium finance
portfolio and subsequent growth in this product accounted for $1.1
billion of the total loan growth over the past 12 months. The
average earning asset growth of $1.8 billion over the past 12
months was funded by a $844 million increase in the average
balances of savings, NOW, MMA and Wealth Management deposits, an
increase in the average balance of net free funds of $197 million,
an increase in the average balance of retail certificates of
deposit of $220 million, an increase of $600 million due to the
secured borrowing notes to the securitization investors and an
increase in the average balance of brokered certificates of deposit
of $8 million, offset by a decrease in the average balance of other
wholesale borrowings of $93 million. The net interest margin
for the first quarter of 2010 was 3.38%, compared to 2.71% in the
first quarter of 2009 and 3.10% in the fourth quarter of
2009. The increase in net interest margin in the first quarter
of 2010 compared to the first quarter of 2009 is primarily
attributable to the acquisition of the life insurance premium
finance portfolio and lower costs of interest-bearing
deposits. The increase in net interest margin in the first
quarter of 2010 compared to the fourth quarter of 2009 is primarily
attributable to the impact of the loan securitization facility
being reflected on the Company's books as a secured borrowing
beginning January 1, 2010 coupled with continued lower costs of
interest-bearing deposits. In the first quarter of 2010, the
yield on loans increased 11 basis points (five basis points
excluding the impact of the loan securitization) and the rate on
interest-bearing deposits decreased 19 basis points compared to the
fourth quarter of 2009. Management believes opportunities
continue for increasing credit spreads in commercial and commercial
real estate loan portfolios and for lower rates from the re-pricing
of maturing retail certificates of deposits, both of which should
contribute to net interest margin expansion during the remainder of
2010.
Non-interest income totaled $42.6 million in the first quarter
of 2010, increasing $6.2 million, or 17%, compared to the first
quarter of 2009. The change was primarily attributable to the
bargain purchase gain recorded relating to the acquisition of the
premium finance assets as described earlier under "Acquisitions".
In addition, wealth management revenue contributed $2.7
million to the increase as improvements in the equity markets
overall has lead to a 46% increase in wealth management revenue
compared to the first quarter of 2009. Also, mortgage banking
revenue decreased $6.5 million when compared to the first quarter
of 2009 as loans originated and sold to the secondary market
declined to $687 million in the first quarter of 2010
compared to $1.2 billion in the first quarter of 2009 and $953
million in the fourth quarter of 2009, directly reducing gains
recognized on these sales. Additionally, expenses recognized
for the liability associated with mortgage loans sold with recourse
to the secondary market increased in the first quarter of 2010 due
to investors attempting to push back claims to the originators of
loans in default.
Non-interest expense totaled $83.9 million in the first quarter
of 2010, increasing $7.0 million, or 9%, compared to the first
quarter of 2009 and decreasing $6.4 million compared to the fourth
quarter of 2009. The increase compared to the first quarter of
2009 was primarily attributable to a $4.3 million increase in
salaries and employee benefits, a $2.3 million increase in other
expenses (primarily loan expenses related to problem loans prior to
foreclosure) offset by a $1.0 million decrease in expenses related
to other real estate owned, or OREO. The decline in
non-interest expense in the first quarter of 2010 compared to the
fourth quarter of 2009 is primarily attributable to lower total
OREO expenses incurred.
Financial Performance Overview – Credit
Quality
Non-performing loans totaled $141.0 million, or 1.55% of total
loans, at March 31, 2010, compared to $131.8 million, or 1.57% of
total loans, at December 31, 2009 and $175.9 million, or 2.24% of
total loans, at March 31, 2009. OREO of $89.0 million at March
31, 2010 was up $8.8 million compared to December 31, 2009 and
increased $47.5 million compared to March 31, 2009. See "Other
Real Estate Owned" later in this document for more detail. The
increase of $9.2 million in total non-performing loan balances from
December 31, 2009 is primarily attributable to approximately $7
million of premium finance receivables in the loan securitization
facility that are either non-accrual or greater than 90 days past
due and still accruing that are reflected on the Company's balance
sheet effective January 1, 2010.
During the latter half of 2009, management focused on
significantly lowering the Company's level of non-performing loans.
This was accomplished through a focus on gaining control or
obtaining possession of collateral from borrowers whose loans were
in non-accrual status. Progress towards this goal enabled a
number of these properties to be transferred to OREO. The
properties the Company obtains via foreclosure or via deed in lieu
of foreclosure are aggressively marketed for
sale. Additionally, beginning in the fourth quarter of 2009,
management has worked with financially distressed borrowers to
restructure current loans. These actions help distressed
borrowers maintain their homes or businesses and keep these loans
in an accruing status for the Company. As of March 31, 2010, a
total of $69.4 million of outstanding loan balances qualified as
restructured loans, with $65.3 million of these modified loans in
an accruing status.
The provision for credit losses totaled $29.0 million for the
first quarter of 2010 compared to $38.6 million for the fourth
quarter of 2009 and $14.5 million in the first quarter of
2009. Net charge-offs for the first quarter of 2010 totaled
119 basis points on an annualized basis compared to 161 basis
points on an annualized basis in the fourth quarter of 2009 and 51
basis points on an annualized basis in the first quarter of
2009.
The allowance for credit losses at March 31, 2010 totaled $106.1
million, or 1.17% of total loans compared to $101.8 million, or
1.21% of total loans at December 31, 2009 and $75.8 million, or
0.97% of total loans at March 31, 2009. In addition, at March
31, 2010, there are $34.0 million of non-accretable credit-related
discounts on the purchased life insurance premium finance
receivables. The Company's total credit-related reserves,
including the reserve for unfunded lending-related commitments and
non-accretable credit-related discounts on the purchased premium
finance receivables, were $140.0 million, or 1.54% of total loans,
as of March 31, 2010, compared to $139.2 million or 1.65% of total
loans at December 31, 2009.
|
WINTRUST FINANCIAL CORPORATION
|
Three Months Ended
|
|
Selected Financial Highlights
|
March 31,
|
|
|
2010
|
2009
|
|
Selected Financial Condition Data (at end of
period):
|
|
|
|
Total assets
|
$ 12,839,978
|
$ 10,818,941
|
|
Total loans
|
9,070,562
|
7,841,447
|
|
Total deposits
|
9,724,870
|
8,625,977
|
|
Junior subordinated debentures
|
249,493
|
249,502
|
|
Total shareholders' equity
|
1,364,832
|
1,063,227
|
|
Selected Statements of Income Data:
|
|
|
|
Net interest income
|
$ 95,865
|
$ 64,782
|
|
Net revenue (1)
|
138,472
|
101,209
|
|
Income before taxes
|
25,490
|
9,774
|
|
Net income
|
16,017
|
6,358
|
|
Net income per common share – Basic
|
$ 0.43
|
$ 0.06
|
|
Net income per common share – Diluted
|
$ 0.41
|
$ 0.06
|
|
Selected Financial Ratios and Other Data:
|
|
|
|
Performance Ratios:
|
|
|
|
Net interest margin (2)
|
3.38%
|
2.71%
|
|
Non-interest income to average assets
|
1.37%
|
1.38%
|
|
Non-interest expense to average assets
|
2.70%
|
2.91%
|
|
Net overhead ratio (3)
|
1.33%
|
1.53%
|
|
Efficiency ratio (2) (4)
|
60.59%
|
74.10%
|
|
Return on average assets
|
0.52%
|
0.24%
|
|
Return on average common equity
|
4.93%
|
0.71%
|
|
|
|
|
|
Average total assets
|
$ 12,590,817
|
$ 10,724,966
|
|
Average total shareholders' equity
|
1,196,191
|
1,061,654
|
|
Average loans to average deposits ratio
|
94.6%
|
93.4%
|
|
Common Share Data at end of
period:
|
|
|
|
Market price per common share
|
$ 37.21
|
$ 12.30
|
|
Book value per common share
|
$ 34.76
|
$ 32.64
|
|
Common shares outstanding
|
31,044,449
|
23,910,983
|
|
|
|
|
|
Other Data at end of period:
|
|
|
|
Leverage Ratio (5)
|
10.8%
|
9.9%
|
|
Tier 1 capital to risk-weighted assets (5)
|
13.3%
|
11.2%
|
|
Total capital to risk-weighted assets (5)
|
14.9%
|
12.6%
|
|
Tangible common equity ratio (TCE) (9)
|
6.3%
|
4.7%
|
|
Allowance for credit losses (6)
|
$ 106,050
|
$ 75,834
|
|
Credit discounts on purchased loans (7)
|
$ 33,990
|
$ --
|
|
Total credit-related reserves (8)
|
$ 140,040
|
$ 75,834
|
|
Non-performing loans
|
$ 140,960
|
$ 175,866
|
|
Allowance for credit losses to total loans (6)
|
1.17%
|
0.97%
|
|
Total credit-related reserves to total loans (8)
|
1.54%
|
0.97%
|
|
Non-performing loans to total loans
|
1.55%
|
2.24%
|
|
Number of:
|
|
|
|
Bank subsidiaries
|
15
|
15
|
|
Non-bank subsidiaries
|
8
|
7
|
|
Banking offices
|
78
|
79
|
|
(1) Net revenue includes net interest income and
non-interest income
|
|
|
|
(2) See "Supplemental Financial Measures/Ratios" for
additional information on this performance measure/ratio.
|
|
|
(3) The net overhead ratio is calculated by netting
total non-interest expense and total non-interest income,
annualizing this amount, and dividing by that period's total
average assets. A lower ratio indicates a higher degree of
efficiency.
|
|
(4) The efficiency ratio is calculated by dividing
total non-interest expense by tax-equivalent net revenue (less
securities gains or losses). A lower ratio indicates more efficient
revenue generation.
|
|
(5) Capital ratios for current quarter-end are
estimated.
|
|
|
|
(6) The allowance for credit losses includes both the
allowance for loan losses and the allowance for unfunded
lending-related commitments.
|
|
(7) Represents the credit discounts on purchased life
insurance premium finance loans.
|
|
|
|
(8) The sum of the allowance for credit losses and
credit discounts on purchased life insurance premium finance loans
divided by total loans outstanding plus the credit discounts on
purchased life insurance premium finance loans.
|
|
|
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF
CONDITION
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
March 31,
|
December 31,
|
March 31,
|
|
(In thousands)
|
2010
|
2009
|
2009
|
|
Assets
|
|
|
|
|
Cash and due from banks
|
$ 106,501
|
$ 135,133
|
$ 122,207
|
|
Federal funds sold and securities purchased under resale
agreements
|
15,393
|
23,483
|
98,454
|
|
Interest-bearing deposits with other banks
|
1,222,323
|
1,025,663
|
266,512
|
|
Available-for-sale securities, at fair value
|
1,279,920
|
1,328,815
|
1,413,576
|
|
Trading account securities
|
39,938
|
33,774
|
13,815
|
|
Brokerage customer receivables
|
20,978
|
20,871
|
15,850
|
|
Loans held-for-sale
|
156,049
|
275,715
|
218,707
|
|
Loans, net of unearned income
|
9,070,562
|
8,411,771
|
7,841,447
|
|
Less: Allowance for loan losses
|
102,397
|
98,277
|
74,248
|
|
Net loans
|
8,968,165
|
8,313,494
|
7,767,199
|
|
Premises and equipment, net
|
348,182
|
350,345
|
349,245
|
|
Accrued interest receivable and other assets
|
363,676
|
416,678
|
263,145
|
|
Trade date securities receivable
|
27,850
|
--
|
--
|
|
Goodwill
|
278,025
|
278,025
|
276,310
|
|
Other intangible assets
|
12,978
|
13,624
|
13,921
|
|
Total assets
|
$ 12,839,978
|
$ 12,215,620
|
$ 10,818,941
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
Deposits:
|
|
|
|
|
Non-interest bearing
|
$ 871,830
|
$ 864,306
|
$ 745,194
|
|
Interest bearing
|
8,853,040
|
9,052,768
|
7,880,783
|
|
Total deposits
|
9,724,870
|
9,917,074
|
8,625,977
|
|
Notes payable
|
1,000
|
1,000
|
1,000
|
|
Federal Home Loan Bank advances
|
421,775
|
430,987
|
435,981
|
|
Other borrowings
|
218,079
|
247,437
|
250,488
|
|
Secured borrowings - owed to securitization investors
|
600,000
|
--
|
--
|
|
Subordinated notes
|
60,000
|
60,000
|
70,000
|
|
Junior subordinated debentures
|
249,493
|
249,493
|
249,502
|
|
Trade date securities payable
|
62,017
|
--
|
7,170
|
|
Accrued interest payable and other liabilities
|
137,912
|
170,990
|
115,596
|
|
Total liabilities
|
11,475,146
|
11,076,981
|
9,755,714
|
|
|
|
|
|
|
Shareholders' Equity:
|
|
|
|
|
Preferred stock
|
285,642
|
284,824
|
282,662
|
|
Common stock
|
31,044
|
27,079
|
26,766
|
|
Surplus
|
677,090
|
589,939
|
575,166
|
|
Treasury stock
|
--
|
(122,733)
|
(122,302)
|
|
Retained earnings
|
373,903
|
366,152
|
315,855
|
|
Accumulated other comprehensive loss
|
(2,847)
|
(6,622)
|
(14,920)
|
|
Total shareholders' equity
|
1,364,832
|
1,138,639
|
1,063,227
|
|
Total liabilities and shareholders' equity
|
$ 12,839,978
|
$ 12,215,620
|
$ 10,818,941
|
|
|
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
(In thousands, except per share data)
|
2010
|
2009
|
|
Interest income
|
|
|
|
Interest and fees on loans
|
$ 129,542
|
$ 106,887
|
|
Interest bearing deposits with banks
|
1,274
|
660
|
|
Federal funds sold and securities purchased under resale
agreements
|
49
|
61
|
|
Securities
|
11,471
|
14,327
|
|
Trading account securities
|
21
|
24
|
|
Brokerage customer receivables
|
139
|
120
|
|
Total interest income
|
142,496
|
122,079
|
|
Interest expense
|
|
|
|
Interest on deposits
|
33,212
|
45,953
|
|
Interest on Federal Home Loan Bank advances
|
4,346
|
4,453
|
|
Interest on notes payable and other borrowings
|
1,462
|
1,870
|
|
Interest on secured borrowings - owed to securitization
investors
|
2,995
|
--
|
|
Interest on subordinated notes
|
241
|
580
|
|
Interest on junior subordinated debentures
|
4,375
|
4,441
|
|
Total interest expense
|
46,631
|
57,297
|
|
Net interest income
|
95,865
|
64,782
|
|
Provision for credit losses
|
29,044
|
14,473
|
|
Net interest income after provision for credit losses
|
66,821
|
50,309
|
|
Non-interest income
|
|
|
|
Wealth management
|
8,667
|
5,926
|
|
Mortgage banking
|
9,727
|
16,232
|
|
Service charges on deposit accounts
|
3,332
|
2,970
|
|
Gain on sales of commercial premium finance receivables
|
--
|
322
|
|
Gains (losses) on available-for-sale securities, net
|
392
|
(2,038)
|
|
Gain on bargain purchase
|
10,894
|
--
|
|
Trading income
|
5,973
|
8,744
|
|
Other
|
3,622
|
4,271
|
|
Total non-interest income
|
42,607
|
36,427
|
|
Non-interest expense
|
|
|
|
Salaries and employee benefits
|
49,072
|
44,820
|
|
Equipment
|
3,896
|
3,938
|
|
Occupancy, net
|
6,230
|
6,190
|
|
Data processing
|
3,407
|
3,136
|
|
Advertising and marketing
|
1,314
|
1,095
|
|
Professional fees
|
3,107
|
2,883
|
|
Amortization of other intangible assets
|
645
|
687
|
|
FDIC insurance
|
3,809
|
3,013
|
|
OREO expenses, net
|
1,337
|
2,356
|
|
Other
|
11,121
|
8,844
|
|
Total non-interest expense
|
83,938
|
76,962
|
|
Income before taxes
|
25,490
|
9,774
|
|
Income tax expense
|
9,473
|
3,416
|
|
Net income
|
$ 16,017
|
$ 6,358
|
|
Preferred stock dividends and discount accretion
|
$ 4,943
|
$ 5,000
|
|
Net income applicable to common shares
|
$ 11,074
|
$ 1,358
|
|
Net income per common share - Basic
|
$ 0.43
|
$ 0.06
|
|
Net income per common share - Diluted
|
$ 0.41
|
$ 0.06
|
|
Cash dividends declared per common share
|
$ 0.09
|
$ 0.18
|
|
Weighted average common shares outstanding
|
25,942
|
23,855
|
|
Dilutive potential common shares
|
1,139
|
221
|
|
Average common shares and dilutive common shares
|
27,081
|
24,076
|
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), net interest margin
(including its individual components) and the efficiency
ratio. Management believes that these measures and ratios
provide users of the Company's financial information a more
meaningful view of the performance of the interest-earning and
interest-bearing liabilities and of the Company's operating
efficiency. Other financial holding companies may define or
calculate these measures and ratios differently.
Management reviews yields on certain asset categories and the
net interest margin of the Company and its banking subsidiaries on
a fully taxable-equivalent ("FTE") basis. In this non-GAAP
presentation, net interest income is adjusted to reflect tax-exempt
interest income on an equivalent before-tax basis. This
measure ensures comparability of net interest income arising from
both taxable and tax-exempt sources. Net interest income on a
FTE basis is also used in the calculation of the Company's
efficiency ratio. The efficiency ratio, which is calculated by
dividing non-interest expense by total taxable-equivalent net
revenue (less securities gains or losses), measures how much it
costs to produce one dollar of revenue. Securities gains or
losses are excluded from this calculation to better match revenue
from daily operations to operational expenses.
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
is shown below:
|
|
Three Months Ended
|
|
|
March 31,
|
|
(Dollars in thousands)
|
2010
|
2009
|
|
(A) Interest Income (GAAP)
|
$ 142,496
|
$ 122,079
|
|
Taxable-equivalent adjustment:
|
|
|
|
- Loans
|
80
|
158
|
|
- Liquidity management assets
|
361
|
451
|
|
- Other earning assets
|
5
|
11
|
|
Interest Income - FTE
|
$ 142,942
|
$ 122,699
|
|
(B) Interest Expense (GAAP)
|
$ 46,631
|
$ 57,297
|
|
Net interest income - FTE
|
96,311
|
65,402
|
|
(C) Net Interest Income (GAAP) (A minus B)
|
$ 95,865
|
$ 64,782
|
|
(D) Net interest margin (GAAP)
|
3.36%
|
2.68%
|
|
Net interest margin - FTE
|
3.38%
|
2.71%
|
|
(E) Efficiency ratio (GAAP)
|
60.79%
|
74.54%
|
|
Efficiency ratio - FTE
|
60.59%
|
74.10%
|
|
LOANS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio Mix and Growth
Rates
|
|
|
|
% Growth
|
|
|
|
|
|
|
|
|
|
March 31,
|
December 31,
|
March 31,
|
From (1) December 31,
|
From March 31,
|
|
(Dollars in thousands)
|
2010
|
2009
|
2009
|
2009
|
2009
|
|
Balance:
|
|
|
|
|
|
|
Commercial and commercial real-estate
|
$ 5,083,052
|
$ 5,039,906
|
$ 4,933,355
|
3%
|
3%
|
|
Home equity
|
924,993
|
930,482
|
920,412
|
(2)
|
--
|
|
Residential real-estate
|
322,984
|
306,296
|
280,808
|
22
|
15
|
|
Premium finance receivables - commercial
|
1,317,822
|
730,144
|
1,287,261
|
NM
|
2
|
|
Premium finance receivables - life insurance
|
1,233,573
|
1,197,893
|
130,895
|
12
|
NM
|
|
Indirect consumer (2)
|
83,136
|
98,134
|
154,257
|
(62)
|
(46)
|
|
Consumer and other
|
105,002
|
108,916
|
134,459
|
(15)
|
(22)
|
|
Total loans, net of unearned income
|
$ 9,070,562
|
$ 8,411,771
|
$ 7,841,447
|
32%
|
16%
|
|
|
|
|
|
|
|
|
Mix:
|
|
|
|
|
|
|
Commercial and commercial real-estate
|
56%
|
60%
|
63%
|
|
|
|
Home equity
|
10
|
11
|
12
|
|
|
|
Residential real-estate
|
4
|
4
|
4
|
|
|
|
Premium finance receivables - commercial
|
14
|
9
|
16
|
|
|
|
Premium finance receivables - life insurance
|
14
|
14
|
2
|
|
|
|
Indirect consumer (2)
|
1
|
1
|
2
|
|
|
|
Consumer and other
|
1
|
1
|
1
|
|
|
|
Total loans, net of unearned income
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized
|
|
|
|
|
|
|
(2) Includes autos, boats, snowmobiles and other
indirect consumer loans.
|
|
|
|
|
|
|
NM = Not Meaningful
|
|
|
|
|
|
|
Commercial and Commercial Real-Estate
Loans
|
|
|
|
> 90 Days
|
Allowance
|
|
As of March 31, 2010
|
|
% of
|
|
Past Due
|
For Credit
|
|
|
|
Total
|
|
and Still
|
Losses
|
|
(Dollars in thousands)
|
Balance
|
Loans
|
Nonaccrual
|
Accruing
|
Allocation
|
|
Commercial:
|
|
|
|
|
|
|
|
Commercial and industrial
|
$ 1,403,702
|
15.5%
|
$ 14,218
|
$ --
|
$ 23,689
|
|
|
Franchise
|
131,555
|
1.5
|
--
|
--
|
2,097
|
|
|
Mortgage warehouse lines of credit
|
89,813
|
1.0
|
--
|
--
|
1,216
|
|
|
Community Advantage - homeowner associations
|
66,590
|
0.7
|
--
|
--
|
161
|
|
|
Aircraft
|
41,148
|
0.4
|
--
|
--
|
170
|
|
|
Other
|
17,234
|
0.2
|
1,113
|
--
|
1,077
|
|
|
Total commercial
|
$ 1,750,042
|
19.3%
|
$ 15,331
|
$ --
|
$ 28,410
|
|
|
|
|
|
|
|
|
|
|
Commercial Real-Estate:
|
|
|
|
|
|
|
|
Residential construction
|
146,351
|
1.6%
|
$ 13,240
|
$ --
|
$ 3,783
|
|
|
Commercial construction
|
298,313
|
3.3
|
16,916
|
--
|
11,185
|
|
|
Land
|
315,483
|
3.5
|
32,423
|
--
|
10,749
|
|
|
Office
|
489,066
|
5.4
|
2,559
|
1,195
|
5,477
|
|
|
Industrial
|
455,155
|
5.0
|
2,143
|
--
|
5,139
|
|
|
Retail
|
456,712
|
5.0
|
2,310
|
--
|
5,085
|
|
|
Multi-family
|
249,596
|
2.8
|
3,555
|
--
|
2,026
|
|
|
Mixed use and other
|
922,334
|
10.2
|
9,243
|
--
|
10,461
|
|
|
Total commercial
real-estate
|
$ 3,333,010
|
36.8%
|
$ 82,389
|
$ 1,195
|
$ 53,905
|
|
|
Total commercial and commercial
real-estate
|
$ 5,083,052
|
56.1%
|
$ 97,720
|
$ 1,195
|
$ 82,315
|
|
|
|
|
|
|
|
|
|
|
Commercial real-estate - collateral location by state:
|
|
|
|
|
|
|
|
Illinois
|
$ 2,677,819
|
80.3%
|
|
|
|
|
|
Wisconsin
|
374,707
|
11.2
|
|
|
|
|
|
Total primary markets
|
$ 3,052,526
|
91.5%
|
|
|
|
|
|
Arizona
|
48,499
|
1.5
|
|
|
|
|
|
Indiana
|
43,104
|
1.3
|
|
|
|
|
|
Florida
|
67,754
|
2.0
|
|
|
|
|
|
Other (no individual state greater than 0.9%)
|
121,127
|
3.7
|
|
|
|
|
|
Total
|
$ 3,333,010
|
100.0%
|
|
|
|
|
|
DEPOSITS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit Portfolio Mix and Growth
Rates
|
|
|
|
% Growth
|
|
|
|
|
|
|
|
|
|
March 31,
|
December 31,
|
March 31,
|
From (1) December 31,
|
From
March 31,
|
|
(Dollars in thousands)
|
2010
|
2009
|
2009
|
2009
|
2009
|
|
Balance:
|
|
|
|
|
|
|
Non-interest bearing
|
$ 871,830
|
$ 864,306
|
$ 745,194
|
4%
|
17%
|
|
NOW
|
1,448,857
|
1,415,856
|
1,064,663
|
9
|
36
|
|
Wealth Management deposits (2)
|
690,919
|
971,113
|
833,291
|
(117)
|
(17)
|
|
Money Market
|
1,586,830
|
1,534,632
|
1,313,157
|
14
|
21
|
|
Savings
|
558,770
|
561,916
|
406,376
|
(2)
|
38
|
|
Time certificates of deposit
|
4,567,664
|
4,569,251
|
4,263,296
|
--
|
7
|
|
Total deposits
|
$ 9,724,870
|
$ 9,917,074
|
$ 8,625,977
|
(8)%
|
13%
|
|
|
|
|
|
|
|
|
Mix:
|
|
|
|
|
|
|
Non-interest bearing
|
9%
|
9%
|
9%
|
|
|
|
NOW
|
15
|
14
|
12
|
|
|
|
Wealth Management deposits (2)
|
7
|
10
|
10
|
|
|
|
Money Market
|
16
|
15
|
15
|
|
|
|
Savings
|
6
|
6
|
5
|
|
|
|
Time certificates of deposit
|
47
|
46
|
49
|
|
|
|
Total deposits
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized
|
|
|
|
|
|
|
(2) Represents deposit balances of the Company's
subsidiary banks from brokerage customers of Wayne Hummer
Investments, trust and asset management customers of Wayne Hummer
Trust Company and brokerage customers from unaffiliated companies
which have been placed into deposit accounts of the Banks.
|
|
Deposit Maturity Analysis
|
|
|
|
|
|
|
|
As of March 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
Non-Interest Bearing and NOW (1)
|
Savings and Money Market (1)
|
Wealth Mgt (1) (2)
|
Time Certificates of Deposit
|
Total Deposits
|
Weighted--Average Rate of Maturing Time Certificates of
Deposit
|
|
1-3 months
|
$ 2,320,687
|
$ 2,145,600
|
$ 596,919
|
$ 1,148,766
|
$ 6,211,972
|
2.04%
|
|
4-6 months
|
--
|
--
|
--
|
760,235
|
760,235
|
2.04
|
|
7-9 months
|
--
|
--
|
94,000
|
707,475
|
801,475
|
2.00
|
|
10-12 months
|
--
|
--
|
--
|
568,085
|
568,085
|
1.98
|
|
13-18 months
|
--
|
--
|
--
|
567,267
|
567,267
|
2.55
|
|
19-24 months
|
--
|
--
|
--
|
245,221
|
245,221
|
2.55
|
|
24+ months
|
--
|
--
|
--
|
570,615
|
570,615
|
2.80
|
|
Total deposits
|
$ 2,320,687
|
$ 2,145,600
|
$ 690,919
|
$ 4,567,664
|
$ 9,724,870
|
2.22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Balances of non-contractual maturity deposits are
shown as maturing in the earliest time frame. These deposits
do not have contractual maturities and re-price in varying degrees
to changes in interest rates.
|
|
(2) Wealth management deposit balances from
unaffiliated companies are shown maturing in the period in which
the current contractual obligation to hold these funds
matures.
|
NET INTEREST INCOME
The following table presents a summary of Wintrust's average
balances, net interest income and related net interest margins,
calculated on a fully tax-equivalent basis, for the first quarter
of 2010 compared to the first quarter of 2009 (linked
quarters):
|
|
|
For the Three Months Ended
|
For the Three Months Ended
|
|
|
|
March 31, 2010
|
March 31, 2009
|
|
(Dollars in thousands)
|
Average
|
Interest
|
Rate
|
Average
|
Interest
|
Rate
|
|
|
|
|
|
|
|
|
|
|
Liquidity management assets (1) (2) (7)
|
$ 2,384,122
|
$ 13,155
|
2.24%
|
$ 1,839,161
|
$ 15,499
|
3.42%
|
|
Other earning assets (2) (3) (7)
|
26,269
|
164
|
2.53
|
22,128
|
155
|
2.85
|
|
Loans, net of unearned income (2) (4) (7)
|
9,150,078
|
129,623
|
5.75
|
7,924,849
|
107,045
|
5.48
|
|
Total earning assets (7)
|
$ 11,560,469
|
$ 142,942
|
5.01%
|
$ 9,786,138
|
$ 122,699
|
5.08%
|
|
Allowance for loan losses
|
(107,257)
|
|
|
(72,044)
|
|
|
|
Cash and due from banks
|
113,514
|
|
|
107,550
|
|
|
|
Other assets
|
1,024,091
|
|
|
903,322
|
|
|
|
Total assets
|
$ 12,590,817
|
|
|
$ 10,724,966
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
|
$ 8,818,012
|
$ 33,212
|
1.53%
|
$ 7,747,879
|
$ 45,953
|
2.41%
|
|
Federal Home Loan Bank advances
|
429,195
|
4,346
|
4.11
|
435,982
|
4,453
|
4.14
|
|
Notes payable and other borrowings
|
225,919
|
1,462
|
2.63
|
301,894
|
1,870
|
2.51
|
|
Secured borrowings - owed to securitization investors
|
600,000
|
2,995
|
2.02
|
--
|
--
|
--
|
|
Subordinated notes
|
60,000
|
241
|
1.60
|
70,000
|
580
|
3.31
|
|
Junior subordinated notes
|
249,493
|
4,375
|
7.01
|
249,506
|
4,441
|
7.12
|
|
Total interest-bearing liabilities
|
$ 10,382,619
|
$ 46,631
|
1.82%
|
$ 8,805,261
|
$ 57,297
|
2.64%
|
|
Non-interest bearing liabilities
|
858,875
|
|
|
733,911
|
|
|
|
Other liabilities
|
153,132
|
|
|
124,140
|
|
|
|
Equity
|
1,196,191
|
|
|
1,061,654
|
|
|
|
Total liabilities and shareholders' equity
|
$ 12,590,817
|
|
|
$ 10,724,966
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread (5) (7)
|
|
|
3.19%
|
|
|
2.44%
|
|
Net free funds/contribution (6)
|
$ 1,177,850
|
|
0.19%
|
$ 980,877
|
|
0.27%
|
|
Net interest income/Net interest margin (7)
|
|
$ 96,311
|
3.38%
|
|
$ 65,402
|
2.71%
|
|
|
|
|
|
|
|
|
|
|
(1) Liquidity management assets include available-for-sale
securities, interest earning deposits with banks, federal funds
sold and securities purchased under resale agreements.
|
|
(2) Interest income on tax-advantaged loans, trading securities
and securities reflects a tax-equivalent adjustment based on a
marginal federal corporate tax rate of 35%. The total
adjustments for the three months ended March 31, 2010 and 2009 were
$446,000 and $620,000, respectively.
|
|
(3) Other earning assets include brokerage customer receivables
and trading account securities.
|
|
|
|
|
(4) Loans, net of unearned income, include loans held-for-sale
and non-accrual loans.
|
|
|
|
|
|
(5) Interest rate spread is the difference between the
yield earned on earning assets and the rate paid on
interest-bearing liabilities.
|
|
|
(6) Net free funds are the difference between total average
earning assets and total average interest-bearing
liabilities. The estimated contribution to net interest margin
from net free funds is calculated using the rate paid for total
interest-bearing liabilities.
|
|
(7) See "Supplemental Financial Measures/Ratios" for additional
information on this performance ratio.
|
|
|
The higher level of net interest income recorded in the first
quarter of 2010 compared to the first quarter of 2009 was primarily
attributable to the impact of the acquisition of the life insurance
premium finance assets in the second half of 2009 and lower retail
deposit costs. Approximately $1.1 billion of the increase in
average total loans is attributable to life insurance premium
finance loans including those purchased in the transaction or
originated by the Company.
In the first quarter of 2010, the yield on earning assets
decreased seven basis points and the rate on interest-bearing
liabilities decreased 82 basis points compared to the first quarter
of 2009. Retail deposit re-pricing opportunities over the past
12 months, due to a sustained low interest rate environment and
more stable financial markets, contributed to the majority of this
decreased cost. The rate paid on interest-bearing deposits
decreased 88 basis points when compared to the first quarter of
2009.
The following table presents a summary of Wintrust's average
balances, net interest income and related net interest margins,
calculated on a fully tax-equivalent basis, for the first quarter
of 2010 compared to the fourth quarter of 2009 (sequential
quarters):
|
|
For the Three Months Ended
|
For the Three Months Ended
|
|
|
March 31, 2010
|
December 31, 2009
|
|
(Dollars in thousands)
|
Average
|
Interest
|
Rate
|
Average
|
Interest
|
Rate
|
|
|
|
|
|
|
|
|
|
Liquidity management assets (1) (2) (7)
|
$ 2,384,122
|
$ 13,155
|
2.24%
|
$ 2,569,584
|
$ 14,932
|
2.31%
|
|
Other earning assets (2) (3) (7)
|
26,269
|
164
|
2.53
|
26,167
|
171
|
2.59
|
|
Loans, net of unearned income (2) (4) (7)
|
9,150,078
|
129,623
|
5.75
|
8,604,006
|
122,240
|
5.64
|
|
Total earning assets (7)
|
$ 11,560,469
|
$ 142,942
|
5.01%
|
$ 11,199,757
|
$ 137,343
|
4.87%
|
|
Allowance for loan losses
|
(107,257)
|
|
|
(97,269)
|
|
|
|
Cash and due from banks
|
113,514
|
|
|
124,219
|
|
|
|
Other assets
|
1,024,091
|
|
|
962,389
|
|
|
|
Total assets
|
$ 12,590,817
|
|
|
$ 12,189,096
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
|
$ 8,818,012
|
$ 33,212
|
1.53%
|
$ 9,016,863
|
$ 38,998
|
1.72%
|
|
Federal Home Loan Bank advances
|
429,195
|
4,346
|
4.11
|
432,028
|
4,510
|
4.14
|
|
Notes payable and other borrowings
|
225,919
|
1,462
|
2.63
|
234,754
|
1,663
|
2.81
|
|
Secured borrowings - owed to securitization investors
|
600,000
|
2,995
|
2.02
|
--
|
--
|
--
|
|
Subordinated notes
|
60,000
|
241
|
1.60
|
63,261
|
286
|
1.77
|
|
Junior subordinated notes
|
249,493
|
4,375
|
7.01
|
249,493
|
4,438
|
6.96
|
|
Total interest-bearing liabilities
|
$ 10,382,619
|
$ 46,631
|
1.82%
|
$ 9,996,399
|
$ 49,895
|
1.98%
|
|
Non-interest bearing liabilities
|
858,875
|
|
|
886,988
|
|
|
|
Other liabilities
|
153,132
|
|
|
179,115
|
|
|
|
Equity
|
1,196,191
|
|
|
1,126,594
|
|
|
|
Total liabilities and shareholders' equity
|
$ 12,590,817
|
|
|
$ 12,189,096
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread (5) (7)
|
|
|
3.19%
|
|
|
2.89%
|
|
Net free funds/contribution (6)
|
$ 1,177,850
|
|
0.19%
|
$ 1,203,358
|
|
0.21%
|
|
Net interest income/Net interest margin (7)
|
|
$ 96,311
|
3.38%
|
|
$ 87,448
|
3.10%
|
|
|
|
|
|
|
|
|
|
(1) Liquidity management assets include available-for-sale
securities, interest earning deposits with banks, federal funds
sold and securities purchased under resale agreements.
|
|
(2) Interest income on tax-advantaged loans, trading securities
and securities reflects a tax-equivalent adjustment based on a
marginal federal corporate tax rate of 35%. The total
adjustments for the three months ended March 31, 2010 was $446,000
and for the three months ended December 31, 2009 was $513,000.
|
|
(3) Other earning assets include brokerage customer receivables
and trading account securities.
|
|
(4) Loans, net of unearned income, include loans held-for-sale
and non-accrual loans.
|
|
(5) Interest rate spread is the difference between the
yield earned on earning assets and the rate paid on
interest-bearing liabilities.
|
|
(6) Net free funds are the difference between total average
earning assets and total average interest-bearing
liabilities. The estimated contribution to net interest margin
from net free funds is calculated using he rate paid for total
interest-bearing liabilities.
|
|
(7) See "Supplemental Financial Measures/Ratios" for additional
information on this performance ratio.
|
|
|
|
|
Approximately $6.6 million of the $8.9 million increase in net
interest income recorded in the first quarter of 2010 compared to
the fourth quarter of 2009 was attributable to the impact of the
loan securitization being reflected on the Company's balance sheet
beginning January 1, 2010. The remaining $2.3 million of the
increase in net interest income can be primarily attributed to
lower retail deposit costs.
In the first quarter of 2010, the yield on loans increased 11
basis points (five basis points excluding the impact of the loan
securitization) and the rate on interest-bearing deposits decreased
19 basis points compared to the fourth quarter of
2009. Management believes opportunities continue for
increasing credit spreads in commercial and commercial real estate
loan portfolios and for lower rates from the re-pricing of maturing
retail certificates of deposits, both of which should contribute to
net interest margin expansion during the remainder of
2010. Additionally, opportunities exist for further net
interest margin expansion if the Company can re-deploy low yielding
liquidity management assets into higher yielding outstanding loan
balances.
NON-INTEREST INCOME
For the first quarter of 2010, non-interest income totaled $42.6
million, an increase of $6.2 million compared to the first quarter
of 2009. The increase was primarily attributable to the
bargain purchase gain related to the life insurance premium finance
loan acquisition and higher wealth management revenues, partially
offset by a decrease in mortgage banking revenue and trading
income.
The following table presents non-interest income by category for
the periods presented:
|
|
Three Months Ended
|
|
|
|
|
March 31
|
|
|
|
(Dollars in thousands)
|
2010
|
2009
|
$ Change
|
% Change
|
|
Brokerage
|
$ 5,554
|
$ 3,819
|
$ 1,735
|
45
|
|
Trust and asset management
|
3,113
|
2,107
|
1,006
|
48
|
|
Total wealth management
|
8,667
|
5,926
|
2,741
|
46
|
|
Mortgage banking
|
9,727
|
16,232
|
(6,505)
|
(40)
|
|
Service charges on deposit accounts
|
3,332
|
2,970
|
362
|
12
|
|
Gains on sales of premium finance receivables
|
--
|
322
|
(322)
|
(100)
|
|
Gains (losses) on available-for-sale securities
|
392
|
(2,038)
|
2,430
|
(119)
|
|
Gain on bargain purchase
|
10,894
|
--
|
10,894
|
NM
|
|
Trading income
|
5,973
|
8,744
|
(2,771)
|
(32)
|
|
Other:
|
|
|
|
|
|
Fees from covered call options
|
289
|
1,998
|
(1,709)
|
(86)
|
|
Bank Owned Life Insurance
|
623
|
286
|
337
|
118
|
|
Administrative services
|
582
|
482
|
100
|
21
|
|
Miscellaneous
|
2,128
|
1,505
|
623
|
41
|
|
Total Other
|
3,622
|
4,271
|
(649)
|
(15)
|
|
|
|
|
|
|
|
Total Non-Interest Income
|
$ 42,607
|
$ 36,427
|
$ 6,180
|
17
|
NM = Not Meaningful
Wealth management revenue is comprised of the trust and asset
management revenue of Wayne Hummer Trust Company and the asset
management fees, brokerage commissions, trading commissions and
insurance product commissions at Wayne Hummer Investments and Wayne
Hummer Asset Management Company. Wealth management
revenue totaled $8.7 million in the first quarter of 2010 and $5.9
million in the first quarter of 2009. Increased asset
valuations due to equity market improvements have helped revenue
growth from trust and asset management
activities. Additionally, the improvement in the equity
markets overall have lead to the increase of the brokerage
component of wealth management revenue as customer trading activity
has increased.
Mortgage banking revenue includes revenue from activities
related to originating, selling and servicing residential real
estate loans for the secondary market. For the quarter ended
March 31, 2010, this revenue source totaled $9.7 million, a
decrease of $6.5 million when compared to the first quarter of
2009. Mortgages originated and sold totaled $687 million in
the first quarter of 2010 compared to $953 million in the fourth
quarter of 2009 and $1.2 billion in the first quarter of
2009. The decrease in mortgage banking revenue resulted
primarily from a decrease in loan originations and an increase in
loss indemnification claims by purchasers of the Company's loans.
Quickly falling mortgage interest rates at the end of 2008 spurred
refinancing activity during the first half of 2009. Interest
rates for residential mortgage loans are not as favorable for
customers in the first quarter of 2010 as they were in 2009
resulting in decreased demand for loan originations. The
decrease in loan originations directly causes lower gains on sales
of loans to the secondary market to be recorded by the
Company. In addition, the Company enters into residential
mortgage loan sale agreements with investors in the normal course
of business. On occasion, investors have requested the Company
to indemnify them against losses on certain loans or to repurchase
loans which the investors believe do not comply with applicable
representations. The increase in the velocity of loss
indemnification has negatively impacted mortgage banking revenue as
additional recourse expense was recorded over the past two
quarters. This liability on loans expected to be repurchased
from loans sold to investors is based on trends in repurchase and
indemnification requests, actual loss experience, known and
inherent risks in the loans, and current economic
conditions.
A summary of the mortgage banking revenue components is shown
below:
|
Mortgage banking revenue
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
March 31,
|
December 31,
|
March 31,
|
|
(Dollars in thousands)
|
2010
|
2009
|
2009
|
|
|
|
|
|
|
|
|
Mortgage loans originated and sold
|
$ 686,679
|
$ 952,624
|
$ 1,245,129
|
|
|
|
|
|
|
|
|
Mortgage loans serviced
|
$ 744,152
|
$ 732,573
|
$ 579,667
|
|
|
Fair value of mortgage servicing rights
(MSRs)
|
$ 6,602
|
$ 6,745
|
$ 4,163
|
|
|
MSRs as a percentage of loans serviced
|
0.89%
|
0.92%
|
0.72%
|
|
|
|
|
|
|
|
|
Gain on sales of loans
|
$ 13,478
|
$ 18,067
|
$ 19,403
|
|
|
Derivative/Fair value, net
|
239
|
101
|
(710)
|
|
|
Mortgage servicing rights
|
(538)
|
26
|
(1,659)
|
|
|
Recourse obligation on loans sold
|
(3,452)
|
(1,699)
|
(802)
|
|
|
Total mortgage banking revenue
|
$ 9,727
|
$ 16,495
|
$ 16,232
|
|
|
|
|
|
|
|
|
Gain on sales of loans as a percentage of loans
sold
|
1.96%
|
1.89%
|
1.56%
|
|
All mortgage loan servicing by the Company is performed by four
of its subsidiary banks. All loans originated and sold into
the secondary market by its mortgage subsidiary Wintrust Mortgage
Company have been sold with mortgage servicing rights released
(sold to the investors). Mortgage servicing rights are carried
on the balance sheet at fair value.
Service charges on deposit accounts totaled $3.3 million for the
first quarter of 2010, an increase of $362,000, or 12%, when
compared to the same quarter of 2009. The majority of deposit
service charges relates to customary fees on overdrawn accounts and
returned items. The level of service charges received is
substantially below peer group levels, as management believes in
the philosophy of providing high quality service without
encumbering that service with numerous activity charges.
As a result of the new accounting requirements beginning January
1, 2010 that now require loans sold and transferred into the
securitization facility be accounted for as secured borrowings with
the securitization investors, the Company no longer recognizes
gains on sales of premium finance receivables. During the
fourth quarter of 2009, as a result of pay-downs of loans in the
revolving securitization facility, the Company transferred $357
million of property and casualty premium finance receivables to the
securitization facility during the fourth quarter of 2009 and
recognized $4.4 million of gains (see "Securitization - Sale of
Loans").
Net gains on the sale of available-for-sale securities by
Company were $392,000 in the first quarter of 2010 compared to net
losses of $2.0 million of net losses in the first quarter of
2009. In the first quarter of 2009, this amount included $2.1
million of non-cash other-than-temporary ("OTTI") charges on
certain corporate debt investment securities.
The gain on bargain purchase of $10.9 million recognized in the
first quarter of 2010 related to the acquisition of the life
insurance premium finance receivable portfolio. In the first
quarter of 2010, third party consents were received and all
remaining funds held in escrow were released, resulting in
recognition of the remaining deferred bargain purchase
gain. See "Acquisitions" for a complete discussion of the
transaction.
The following table summarizes the components of this
transaction:
|
Purchased Loan Portfolio
|
|
|
|
|
Summary of Acquisition
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
Bargain
purchase gain
|
Accretable discounts
|
Credit discounts -
non-accretable discounts
|
|
|
|
|
|
|
Balances at December 31, 2009
|
$ (10,894)
|
$ (65,026)
|
$ (37,323)
|
|
|
|
|
|
|
- Bargain purchase gain recognized as accounts clear escrow
(1)
|
10,894
|
|
|
|
- Accretion (effective yield method)
|
|
5,418
|
|
|
|
|
|
|
|
- Accretion recognized as accounts prepay
|
|
1,427
|
2,289
|
|
- Discount used for loans written off
|
|
144
|
1,044
|
|
Balances at March 31, 2010
|
$ --
|
$ (58,037)
|
$ (33,990)
|
|
|
|
|
|
|
(1) Third party consents were received and funds were
released from escrow.
|
|
|
Trading income of $6.0 million was recognized by the Company in
the first quarter of 2010 compared to income of $8.7 million in the
first quarter of 2009. Lower trading income in 2010 resulted
primarily from a smaller increase in market value of certain
collateralized mortgage obligations held in trading in the first
quarter of 2010 as compared to the same period in the prior
year. The Company purchased these securities at a significant
discount in the first quarter of 2009. These securities have
increased in value since their purchase due to market spreads
tightening, increased mortgage prepayments due to the favorable
mortgage rate environment and lower than projected default
rates.
Other non-interest income for the first quarter of 2010 totaled
$3.6 million, compared to $4.3 million in the first quarter of
2009. Fees from certain covered call option transactions
decreased by $1.7 million in the first quarter of 2010 as compared
to the same period in the prior year. Historically,
compression in the net interest margin was effectively offset, as
has consistently been the case, by the Company's covered call
strategy. In the first quarter of 2010 management chose to
engage in limited covered call option activity resulting in revenue
of $289,000. An illustration of the past effectiveness of this
strategy is shown in the Supplemental Financial Information section
(see page titled "Net Interest Margin (Including Call Option
Income)").
NON-INTEREST EXPENSE
Non-interest expense for the first quarter of 2010 totaled $84.0
million and increased approximately $7.0 million, or 9%, from the
first quarter 2009 total of $77.0 million.
The following table presents non-interest expense by category
for the periods presented:
|
|
|
|
|
|
|
Three Months Ended
March 31
|
|
|
|
(Dollars in thousands)
|
2010
|
2009
|
$ Change
|
% Change
|
|
Salaries and employee benefits
|
$ 49,072
|
$ 44,820
|
$ 4,252
|
9
|
|
Equipment
|
3,896
|
3,938
|
(42)
|
(1)
|
|
Occupancy, net
|
6,230
|
6,190
|
40
|
1
|
|
Data processing
|
3,407
|
3,136
|
271
|
9
|
|
Advertising and marketing
|
1,314
|
1,095
|
219
|
20
|
|
Professional fees
|
3,107
|
2,883
|
224
|
8
|
|
Amortization of other intangible assets
|
645
|
687
|
(42)
|
(6)
|
|
FDIC insurance
|
3,809
|
3,013
|
796
|
26
|
|
OREO expenses, net
|
1,337
|
2,356
|
(1,019)
|
(43)
|
|
Other:
|
|
|
|
|
|
Commissions - 3rd party brokers
|
962
|
704
|
258
|
37
|
|
Postage
|
1,110
|
1,180
|
(70)
|
(6)
|
|
Stationery and supplies
|
732
|
768
|
(36)
|
(5)
|
|
Miscellaneous
|
8,317
|
6,192
|
2,125
|
34
|
|
Total other
|
11,121
|
8,844
|
2,277
|
26
|
|
|
|
|
|
|
|
Total Non-Interest Expense
|
$ 83,938
|
$ 76,962
|
$ 6,976
|
9
|
Salaries and employee benefits comprised 58% of total
non-interest expense in the first quarter of 2010 and
2009. Salaries and employee benefits expense
increased $4.3 million, or 9%, in the first quarter of 2010
compared to the first quarter of 2009 primarily as a result of the
growth in the commercial lending staff throughout the Company, the
salaries and benefits related to the staff associated with the life
insurance premium finance portfolio acquired in the third quarter
of 2009 and increases in base compensation, partially offset by
lower commission and incentive compensation expenses related to
mortgage banking activities as a result of lower mortgage loan
origination volumes.
Professional fees include legal, audit and tax fees, external
loan review costs and normal regulatory exam
assessments. Professional fees for the first quarter of 2010
were $3.1 million, an increase of $224,000, or 8%, compared to the
same period in 2009. These increases are primarily a result of
increased legal costs related to non-performing assets.
FDIC insurance totaled $3.8 million in the first quarter of
2010, an increase of $796,000 compared to $3.0 million in the first
quarter of 2009. The increase in FDIC insurance rates is the
result of growth in the assessable deposit base.
Additionally, on December 30, 2009, FDIC insured institutions were
required to prepay 13 quarters of estimated deposit insurance
premiums. Therefore, the Company prepaid approximately $59.8
million of estimated deposit insurance premiums and recorded this
amount as an asset on its Consolidated Statement of
Condition. This prepayment is being expensed over the three
year assessment period.
OREO expenses include all costs related with obtaining,
maintaining and selling of other real estate owned
properties. This expense totaled $1.3 million in the first
quarter of 2010, a decrease of $1.0 million compared to $2.4
million in the first quarter of 2009. The decrease in OREO
expenses primarily related to lower valuation adjustments and
losses on the sale of properties in the first quarter of 2010 as
compared to the prior year. In the first quarter of 2010,
$445,000 of net losses on sales and valuation adjustments were
recognized as compared to $2.0 million of net losses on sales and
valuation adjustments in the first quarter of 2009.
Miscellaneous expense includes expenses such as ATM expenses,
correspondent bank charges, directors' fees, telephone, travel and
entertainment, corporate insurance, dues and subscriptions, problem
loan expenses and lending origination costs that are not
deferred. Miscellaneous expenses in the first quarter of 2010
increased $2.1 million, or 34%, compared to the same period in the
prior year. The increase in the first quarter of 2010 compared
to the same period in the prior year is primarily attributable to a
higher level of problem loan expenses and the general growth in the
Company's business.
ASSET QUALITY
|
Allowance for Credit Losses
|
Three Months Ended
|
|
|
March 31,
|
|
(Dollars in thousands)
|
2010
|
2009
|
|
|
|
|
|
Allowance for loan losses at beginning of
period
|
$ 98,277
|
$ 69,767
|
|
Provision for credit losses
|
29,044
|
14,473
|
|
Other adjustments
|
1,943
|
--
|
|
Reclassification to allowance for unfunded
lending-related commitments
|
(99)
|
--
|
|
|
|
|
|
Charge-offs:
|
|
|
|
Commercial and commercial real estate
|
24,919
|
7,890
|
|
Home equity
|
281
|
511
|
|
Residential real estate
|
406
|
152
|
|
Premium finance receivables - commercial
|
1,933
|
1,351
|
|
Premium finance receivables - life insurance
|
--
|
--
|
|
Indirect consumer
|
274
|
361
|
|
Consumer and other
|
179
|
121
|
|
Total charge-offs
|
27,992
|
10,386
|
|
Recoveries:
|
|
|
|
Commercial and commercial real estate
|
885
|
208
|
|
Home equity
|
8
|
1
|
|
Residential real estate
|
5
|
--
|
|
Premium finance receivables - commercial
|
229
|
141
|
|
Premium finance receivables - life insurance
|
--
|
--
|
|
Indirect consumer
|
50
|
29
|
|
Consumer and other
|
47
|
15
|
|
Total recoveries
|
1,224
|
394
|
|
Net charge-offs
|
(26,768)
|
(9,992)
|
|
|
|
|
|
Allowance for loan losses at period end
|
$ 102,397
|
$ 74,248
|
|
|
|
|
|
Allowance for unfunded lending-related commitments
at period end
|
$ 3,653
|
$ 1,586
|
|
|
|
|
|
Allowance for credit losses at period end
|
$ 106,050
|
$ 75,834
|
|
|
|
|
|
Credit-related discounts on purchased loans
|
33,990
|
--
|
|
Total credit reserves
|
$ 140,040
|
$ 75,834
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs by category as a percentage
of its own respective category's average:
|
|
|
|
Commercial and commercial real estate
|
1.94%
|
0.65%
|
|
Home equity
|
0.12
|
0.23
|
|
Residential real estate
|
0.32
|
0.14
|
|
Premium finance receivables - commercial
|
0.54
|
0.37
|
|
Premium finance receivables - life insurance
|
--
|
--
|
|
Indirect consumer
|
1.00
|
0.81
|
|
Consumer and other
|
0.48
|
0.27
|
|
Total loans, net of unearned income
|
1.19%
|
0.51%
|
|
|
|
|
|
|
|
|
|
Net charge-offs as a percentage of the provision
for credit losses
|
92.48%
|
69.04%
|
|
|
|
|
|
Loans at period-end
|
$ 9,070,562
|
$ 7,841,447
|
|
Allowance for loan losses as a percentage of loans at
period-end
|
1.13
|
0.95%
|
|
Allowance for credit losses as a percentage of loans at
period-end
|
1.17
|
0.97%
|
|
Total credit reserves as a percentage of loans (net of
discounts) at period-end
|
1.54
|
0.97%
|
The allowance for credit losses is comprised of the allowance
for loan losses and the allowance for lending-related
commitments. The allowance for loan losses is a reserve
against loan amounts that are actually funded and outstanding while
the allowance for lending-related commitments relates to certain
amounts that Wintrust is committed to lend but for which funds have
not yet been disbursed. The allowance for lending-related
commitments (separate liability account) represents the portion of
the provision for credit losses that was associated with unfunded
lending-related commitments. The provision for credit 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). Total credit-related reserves include the credit
discounts on the purchased life insurance premium finance
receivables which are netted with the loan
balance. Additionally, on January 1, 2010, in conjunction with
recording the securitization facility on its balance sheet, the
Company established an allowance for loan losses totaling $1.9
million. This addition to the allowance for loan losses is
shown as an other adjustment to the allowance for loan losses.
The provision for credit losses totaled $29.0 million for the
first quarter of 2010, $38.6 million in the fourth quarter of 2009
and $14.5 million for the first quarter of 2009. For the
quarter ended March 31, 2010, net charge-offs totaled $26.8 million
compared to $34.9 million in the fourth quarter of 2009 and $10.0
million recorded in the first quarter of 2009. On a ratio
basis, annualized net charge-offs as a percentage of average loans
were 1.19% in the first quarter of 2010, 1.61% in the fourth
quarter of 2009, and 0.51% in the first quarter of
2009. During the third and fourth quarters of 2009, the
Company committed to resolving problem credits as quickly as
possible. Actions taken during this time increased OREO, net
charge-offs and the provision for loan losses expenses required to
maintain an adequate level of reserves. The first quarter of
2010 amounts recorded for both net charge-offs and provision for
credit losses reflect a continuation of the Company's commitment to
maintain a low level of non-performing assets.
Management believes the allowance for loan losses is adequate 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 loan losses will be dependent upon management's assessment of
the adequacy 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 increase from the end of the
prior quarter reflects the continued economic weaknesses in the
Company's markets and is the result of an individual review of a
significant number of individual credits as well as the overall
risk factors impacting certain types of credits, specifically
credits with residential development collateral valuation
exposure.
The tables below show the aging of the Company's loan portfolio
at March 31, 2010 and December 31, 2009:
|
As of March 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
Nonaccrual
|
Greater than 90 days and still accruing
|
60-89 days past due
|
30-59 days past due
|
Current
|
Total Loans
|
|
Loan Balances:
|
|
|
|
|
|
|
|
Commercial
|
$ 15,331
|
$ --
|
$ 6,114
|
$ 22,106
|
$ 1,706,491
|
$ 1,750,042
|
|
Commercial real-estate:
|
|
|
|
|
|
|
|
Residential construction
|
13,240
|
--
|
3,298
|
1,726
|
128,087
|
146,351
|
|
Commercial construction
|
16,916
|
--
|
1,101
|
3,911
|
276,385
|
298,313
|
|
Land
|
32,423
|
--
|
4,421
|
7,389
|
271,250
|
315,483
|
|
Office
|
2,559
|
1,195
|
2,960
|
2,566
|
479,786
|
489,066
|
|
Industrial
|
2,143
|
--
|
530
|
4,990
|
447,492
|
455,155
|
|
Retail
|
2,310
|
--
|
4,783
|
6,772
|
442,847
|
456,712
|
|
Multi-family
|
3,555
|
--
|
1,546
|
10,591
|
233,904
|
249,596
|
|
Mixed use and other
|
9,243
|
--
|
8,409
|
14,168
|
890,514
|
922,334
|
|
Total commercial real-estate
|
82,389
|
1,195
|
27,048
|
52,113
|
3,170,265
|
3,333,010
|
|
Total commercial and commercial real-estate
|
97,720
|
1,195
|
33,162
|
74,219
|
4,876,756
|
5,083,052
|
|
Home equity
|
7,730
|
21
|
2,019
|
2,925
|
912,298
|
924,993
|
|
Residential real estate
|
5,460
|
--
|
178
|
5,541
|
311,805
|
322,984
|
|
Premium finance receivables - commercial
|
14,106
|
7,479
|
5,109
|
15,870
|
1,275,258
|
1,317,822
|
|
Premium finance receivables - life insurance
|
73
|
5,450
|
--
|
2,076
|
1,225,974
|
1,233,573
|
|
Indirect consumer
|
615
|
665
|
425
|
1,203
|
80,228
|
83,136
|
|
Consumer and other
|
426
|
20
|
751
|
298
|
103,507
|
105,002
|
|
Total loans, net of unearned income
|
$ 126,130
|
$ 14,830
|
$ 41,644
|
$ 102,132
|
$ 8,785,826
|
$ 9,070,562
|
|
|
|
|
|
|
|
|
|
Aging as a % of Loan Balance:
|
|
|
|
|
|
|
|
Commercial
|
0.9%
|
--%
|
0.3%
|
1.3%
|
97.5%
|
100.0%
|
|
Commercial real-estate:
|
|
|
|
|
|
|
|
Residential construction
|
9.0
|
--
|
2.3
|
1.2
|
87.5
|
100.0
|
|
Commercial construction
|
5.7
|
--
|
0.4
|
1.3
|
92.6
|
100.0
|
|
Land
|
10.3
|
--
|
1.4
|
2.3
|
86.0
|
100.0
|
|
Office
|
0.5
|
0.2
|
0.6
|
0.5
|
98.2
|
100.0
|
|
Industrial
|
0.5
|
--
|
0.1
|
1.1
|
98.3
|
100.0
|
|
Retail
|
0.5
|
--
|
1.0
|
1.5
|
97.0
|
100.0
|
|
Multi-family
|
1.4
|
--
|
0.6
|
4.2
|
93.8
|
100.0
|
|
Mixed use and other
|
1.0
|
--
|
0.9
|
1.5
|
96.6
|
100.0
|
|
Total commercial real-estate
|
2.5
|
--
|
0.8
|
1.6
|
95.1
|
100.0
|
|
Total commercial and commercial real-estate
|
1.9
|
--
|
0.7
|
1.5
|
95.9
|
100.0
|
|
Home equity
|
0.8
|
--
|
0.2
|
0.3
|
98.7
|
100.0
|
|
Residential real estate
|
1.7
|
--
|
0.1
|
1.7
|
96.5
|
100.0
|
|
Premium finance receivables - commercial
|
1.0
|
0.6
|
0.4
|
1.2
|
96.8
|
100.0
|
|
Premium finance receivables - life insurance
|
--
|
0.4
|
--
|
0.2
|
99.4
|
100.0
|
|
Indirect consumer
|
0.7
|
0.8
|
0.5
|
1.5
|
96.5
|
100.0
|
|
Consumer and other
|
0.4
|
--
|
0.7
|
0.3
|
98.6
|
100.0
|
|
Total loans, net of unearned income
|
1.4%
|
0.2%
|
0.5%
|
1.1%
|
96.8%
|
100.0%
|
The amounts shown in the non-accrual and the 90+ days and still
accruing columns represent the Company's total reported
non-performing loans balance. As of March 31, 2010, only $42
million of all loans, or 0.5%, were 60 to 89 days past due and $102
million, or 1.1%, were 30 to 59 days (or one payment) past due.
As of December 31, 2009, only $37 million of all loans, or
0.4%, were 60 to 89 days past due and only $64 million, or 0.8%,
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. Near-term delinquencies (30 to 59 days past due)
increased $38.4 million since December 31, 2009. However, the three
categories of commercial real-estate loans (residential
construction, commercial construction and land) that have comprised
the largest portion of non-performing loans and ultimately net
charge-offs, declined by $10.9 million since December 31, 2009.
The Company's home equity and residential loan portfolios
continue to exhibit low delinquency ratios. Home equity loans
at March 31, 2010 that are current with regard to the contractual
terms of the loan agreement represent 98.7% of the total home
equity portfolio. Residential real estate loans at March 31,
2010 that are current with regards to the contractual terms of the
loan agreements comprise 96.5% of total residential real estate
loans outstanding.
|
As of December 31, 2010
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
Nonaccrual
|
Greater than 90 days and still accruing
|
60-89 days past due
|
30-59 days past due
|
Current
|
Total Loans
|
|
Loan Balances:
|
|
|
|
|
|
|
|
Commercial
|
$ 16,509
|
$ 561
|
$ 6,747
|
$ 3,168
|
$ 1,716,224
|
$ 1,743,209
|
|
Commercial real-estate:
|
|
|
|
|
|
|
|
Residential construction
|
14,064
|
--
|
1,877
|
5,070
|
153,412
|
174,423
|
|
Commercial construction
|
5,232
|
--
|
--
|
16,333
|
287,015
|
308,580
|
|
Land
|
41,297
|
--
|
8,548
|
2,468
|
274,407
|
326,720
|
|
Office
|
2,675
|
--
|
--
|
1,324
|
463,588
|
467,587
|
|
Industrial
|
3,753
|
--
|
--
|
1,141
|
439,997
|
444,891
|
|
Retail
|
431
|
--
|
2,978
|
1,050
|
448,301
|
452,760
|
|
Multi-family
|
288
|
--
|
626
|
9,371
|
231,425
|
241,710
|
|
Mixed use and other
|
12,899
|
--
|
4,517
|
4,464
|
858,146
|
880,026
|
|
Total commercial real-estate
|
80,639
|
--
|
18,546
|
41,221
|
3,156,291
|
3,296,697
|
|
Total commercial and commercial real-estate
|
97,148
|
561
|
25,293
|
44,389
|
4,872,515
|
5,039,906
|
|
Home equity
|
8,883
|
--
|
894
|
2,107
|
918,598
|
930,482
|
|
Residential real estate
|
3,779
|
412
|
406
|
3,043
|
298,656
|
306,296
|
|
Premium finance receivables - commercial
|
11,878
|
6,271
|
3,975
|
9,639
|
698,381
|
730,144
|
|
Premium finance receivables - life insurance
|
704
|
--
|
5,385
|
1,854
|
1,189,950
|
1,197,893
|
|
Indirect consumer
|
995
|
461
|
614
|
2,143
|
93,921
|
98,134
|
|
Consumer and other
|
617
|
95
|
511
|
537
|
107,156
|
108,916
|
|
Total loans, net of unearned income
|
$ 124,004
|
$ 7,800
|
$ 37,078
|
$ 63,712
|
$ 8,179,177
|
$ 8,411,771
|
|
|
|
|
|
|
|
|
|
Aging as a % of Loan Balance:
|
|
|
|
|
|
|
|
Commercial
|
0.9%
|
--%
|
0.4%
|
0.2%
|
98.5%
|
100.0%
|
|
Commercial real-estate:
|
|
|
|
|
|
|
|
Residential construction
|
8.1
|
--
|
1.1
|
2.9
|
87.9
|
100.0
|
|
Commercial construction
|
1.7
|
--
|
--
|
5.3
|
93.0
|
100.0
|
|
Land
|
12.6
|
--
|
2.6
|
0.8
|
84.0
|
100.0
|
|
Office
|
0.6
|
--
|
--
|
0.3
|
99.1
|
100.0
|
|
Industrial
|
0.8
|
--
|
--
|
0.3
|
98.9
|
100.0
|
|
Retail
|
0.1
|
--
|
0.7
|
0.2
|
99.0
|
100.0
|
|
Multi-family
|
0.1
|
--
|
0.3
|
3.9
|
95.7
|
100.0
|
|
Mixed use and other
|
1.5
|
--
|
0.5
|
0.5
|
97.5
|
100.0
|
|
Total commercial real-estate
|
2.4
|
--
|
0.6
|
1.3
|
95.7
|
100.0
|
|
Total commercial and commercial real-estate
|
1.9
|
--
|
0.5
|
0.9
|
96.7
|
100.0
|
|
Home equity
|
1.0
|
--
|
0.1
|
0.2
|
98.7
|
100.0
|
|
Residential real estate
|
1.2
|
0.1
|
0.1
|
1.0
|
97.6
|
100.0
|
|
Premium finance receivables - commercial
|
1.6
|
0.9
|
0.5
|
1.3
|
95.7
|
100.0
|
|
Premium finance receivables - life insurance
|
0.1
|
--
|
0.4
|
0.2
|
99.3
|
100.0
|
|
Indirect consumer
|
1.0
|
0.5
|
0.6
|
2.2
|
95.7
|
100.0
|
|
Consumer and other
|
0.6
|
0.1
|
0.5
|
0.5
|
98.3
|
100.0
|
|
Total loans, net of unearned income
|
1.5%
|
0.1%
|
0.4%
|
0.8%
|
97.2%
|
100.0%
|
The ratio of non-performing commercial premium finance
receivables fluctuates throughout the year due to the nature and
timing of canceled account collections from insurance
carriers. Due to the nature of collateral for commercial
premium finance receivables, it customarily takes 60-150 days to
convert the collateral into cash. Accordingly, the level of
non-performing commercial premium finance receivables is not
necessarily indicative of the loss inherent in the
portfolio. In the event of default, Wintrust has the power to
cancel the insurance policy and collect the unearned portion of the
premium from the insurance carrier. In the event of
cancellation, the cash returned in payment of the unearned premium
by the insurer should generally be sufficient to cover the
receivable balance, the interest and other charges due. Due to
notification requirements and processing time by most insurance
carriers, many receivables will become delinquent beyond 90 days
while the insurer is processing the return of the unearned
premium. Management continues to accrue interest until
maturity as the unearned premium is ordinarily sufficient to
pay-off the outstanding balance and contractual interest due.
Non-performing Loans
The following table sets forth Wintrust's non-performing loans
at the dates indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
December 31,
|
September 30,
|
March 31,
|
|
(Dollars in thousands)
|
2010
|
2009
|
2009
|
2009
|
|
|
|
|
|
|
|
Loans past due greater than 90 days and still
accruing:
|
|
|
|
|
|
Commercial and commercial real-estate
|
$ 1,195
|
$ 561
|
$ 23,377
|
$ 4,677
|
|
Home equity
|
21
|
--
|
100
|
726
|
|
Residential real-estate
|
--
|
412
|
1,172
|
--
|
|
Premium finance receivables - commercial
|
7,479
|
6,271
|
11,714
|
9,722
|
|
Premium finance receivables - life insurance
|
5,450
|
--
|
--
|
--
|
|
Indirect consumer
|
665
|
461
|
549
|
1,076
|
|
Consumer and other
|
20
|
95
|
25
|
281
|
|
Total past due greater than 90 days and still accruing
|
14,830
|
7,800
|
36,937
|
16,482
|
|
|
|
|
|
|
|
Non-accrual loans:
|
|
|
|
|
|
Commercial and commercial real-estate
|
97,720
|
97,148
|
166,726
|
136,306
|
|
Home equity
|
7,730
|
8,883
|
6,808
|
4,250
|
|
Residential real-estate
|
5,460
|
3,779
|
4,077
|
4,959
|
|
Premium finance receivables - commercial
|
14,106
|
11,878
|
16,093
|
12,694
|
|
Premium finance receivables - life insurance
|
73
|
704
|
--
|
--
|
|
Indirect consumer
|
615
|
995
|
736
|
1,084
|
|
Consumer and other
|
426
|
617
|
282
|
91
|
|
Total non-accrual
|
126,130
|
124,004
|
194,722
|
159,384
|
|
|
|
|
|
|
|
Total non-performing loans:
|
|
|
|
|
|
Commercial and commercial real-estate
|
98,915
|
97,709
|
190,103
|
140,983
|
|
Home equity
|
7,751
|
8,883
|
6,908
|
4,976
|
|
Residential real-estate
|
5,460
|
4,191
|
5,249
|
4,959
|
|
Premium finance receivables - commercial
|
21,585
|
18,149
|
27,807
|
22,416
|
|
Premium finance receivables - life insurance
|
5,523
|
704
|
--
|
--
|
|
Indirect consumer
|
1,280
|
1,456
|
1,285
|
2,160
|
|
Consumer and other
|
446
|
712
|
307
|
372
|
|
Total non-performing
|
$ 140,960
|
$ 131,804
|
$ 231,659
|
$ 175,866
|
|
|
|
|
|
|
|
Total non-performing loans by category as a percent of
its own respective category's period-end balance:
|
|
|
|
|
|
Commercial and commercial real-estate
|
1.95%
|
1.94%
|
3.77%
|
2.86%
|
|
Home equity
|
0.84
|
0.95
|
0.74
|
0.54
|
|
Residential real-estate
|
1.69
|
1.37
|
1.87
|
1.77
|
|
Premium finance receivables - commercial
|
1.64
|
2.49
|
3.70
|
1.74
|
|
Premium finance receivables - life insurance
|
0.45
|
0.06
|
--
|
--
|
|
Indirect consumer
|
1.54
|
1.48
|
1.11
|
1.40
|
|
Consumer and other
|
0.42
|
0.65
|
0.26
|
0.28
|
|
Total loans, net of unearned income
|
1.55%
|
1.57%
|
2.80%
|
2.24%
|
|
|
|
|
|
|
|
Allowance for loan losses as a percentage
total-nonperforming loans
|
72.64%
|
74.56%
|
41.05%
|
42.22%
|
Non-performing Commercial and Commercial Real-Estate
The commercial and commercial real estate non-performing loan
category totaled $98.9 million as of March 31, 2010 compared to
$97.7 million as of December 31, 2009 and $141.0 million as of
March 31, 2009.
Management is pursuing the resolution of all credits in this
category. At this time,management believes reserves are
adequate to absorb inherent losses that may occur upon the ultimate
resolution of these credits.
Non-performing Residential Real Estate and Home
Equity
The non-performing residential real estate and home equity loans
totaled $13.2 million as of March 31, 2010. The balance increased
$137,000 from December 31, 2009 and increased $3.3 million from
March 31, 2009. The March 31, 2010 non-performing balance is
comprised of $5.5 million of residential real estate (21 individual
credits) and $7.8 million of home equity loans (18 individual
credits). On average, this is approximately three
non-performing residential real estate loans and home equity loans
per chartered bank within the Company. The Company believes
control and collection of these loans is very manageable. At
this time, management believes reserves are adequate to absorb
inherent losses that may occur upon the ultimate resolution of
these credits.
Non-performing Commercial Premium Finance Receivables
The table below presents the level of non-performing property
and casualty premium finance receivables as of March 31, 2010 and
2009, and the amount of net charge-offs for the quarters then
ended.
|
|
March 31,
|
March 31,
|
|
|
(Dollars in thousands)
|
2010
|
2009
|
|
|
Non-performing premium finance receivables - commercial
|
$ 21,585
|
$ 22,416
|
|
|
- as a percent of premium finance receivables - commercial
outstanding
|
1.64%
|
1.74%
|
|
|
|
|
|
|
|
Net charge-offs of premium finance receivables - commercial
|
$ 1,704
|
$ 1,210
|
|
|
- annualized as a percent of average premium finance receivables
- commercial
|
0.54%
|
0.37%
|
|
Fluctuations in this category may occur due to timing and nature
of account collections from insurance carriers. The Company's
underwriting standards, regardless of the condition of the economy,
have remained consistent. We anticipate that net charge-offs
and non-performing asset levels in the near term will continue to
be at levels that are within acceptable operating ranges for this
category of loans. Management is comfortable with
administering the collections at this level of non-performing
property and casualty premium finance receivables and believes
reserves are adequate to absorb inherent losses that may occur upon
the ultimate resolution of these credits.
Non-performing Indirect Consumer Loans
Total non-performing indirect consumer loans were $1.3 million
at March 31, 2010, compared to $1.5 million at December 31, 2009
and $2.2 million at March 31, 2009. The ratio of these
non-performing loans to total indirect consumer loans was 1.54% at
March 31, 2010 compared to 1.48% at December 31, 2009 and 1.40% at
March 31, 2009. As noted in the Allowance for Credit Losses
table, net charge-offs as a percent of total indirect consumer
loans were 1.00% for the quarter ended March 31, 2010 compared to
0.81% in the same period in 2009. The indirect consumer loan
portfolio has decreased 46% since March 31, 2009 to a balance of
$83.1 million at March 31, 2010.
At the beginning of the third quarter of 2008, the Company
ceased the origination of indirect automobile loans. This
niche business served the Company well over the past 12 years in
helping de novo banks quickly, and profitably, grow into their
physical structures. Competitive pricing pressures
significantly reduced the long-term potential profitably of this
niche business. Given the current economic environment and the
retirement of the founder of this niche business, exiting the
origination of this business was deemed to be in the best interest
of the Company. The Company continues to service its existing
portfolio during the duration of the credits.
Restructured Loans
Restructured loans represent loans in which economic concessions
have been granted to borrowers to better align the terms of the
loan with their current ability to pay. At March 31, 2010,
$69.4 million in loans have modified terms with $65.3 million of
these modified loans in accruing status. These actions helped
financially distressed borrowers maintain their homes or businesses
and kept these loans in an accruing status for the Company.
Other Real Estate Owned
The table below presents a summary of OREO as of March 31, 2010
and shows the changes in the balance from December 31, 2009 for
each property type:
|
|
Residential
Real Estate
|
Residential
Real Estate
Development
|
Commercial
Real Estate
|
Total
Balance
|
|
(Dollars in thousands)
|
$
|
R
|
$
|
R
|
$
|
R
|
$
|
R
|
|
Balance at December 31, 2009
|
$ 5,889
|
6
|
$ 41,992
|
18
|
$ 32,282
|
26
|
$ 80,163
|
50
|
|
Transfers in at fair value less estimated costs to sell
|
4,081
|
12
|
420
|
2
|
15,651
|
18
|
20,152
|
32
|
|
Fair value adjustments
|
--
|
--
|
--
|
--
|
(312)
|
--
|
(312)
|
--
|
|
Resolved
|
(494)
|
(2)
|
(8,020)
|
(3)
|
(2,480)
|
(2)
|
(10,994)
|
(7)
|
|
Balance at March 31, 2010
|
$ 9,476
|
16
|
$ 34,392
|
17
|
$ 45,141
|
42
|
$ 89,009
|
75
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2009
|
|
|
|
|
|
|
$ 41,517
|
25
|
|
|
|
|
|
|
|
|
|
|
|
$ - balance
|
|
|
|
|
|
|
|
|
|
R - number of relationships
|
|
|
|
|
|
|
|
|
WINTRUST SUBSIDIARIES AND LOCATIONS
Wintrust is a financial holding company whose common stock is
traded on the Nasdaq Global Select Market (Nasdaq: WTFC). Its
15 community bank subsidiaries are: Lake Forest Bank &
Trust Company, Hinsdale Bank & Trust Company, North Shore
Community Bank & Trust Company in Wilmette, Libertyville Bank
& Trust Company, Barrington Bank & Trust Company, Crystal
Lake Bank & Trust Company, Northbrook Bank & Trust Company,
Advantage National Bank in Elk Grove Village, Village Bank &
Trust in Arlington Heights, Beverly Bank & Trust Company in
Chicago, Wheaton Bank & Trust Company, State Bank of The Lakes
in Antioch, Old Plank Trail Community Bank, N.A. in New Lenox, St.
Charles Bank & Trust Company and Town Bank in Hartland,
Wisconsin. The banks also operate facilities in Illinois in
Algonquin, Bloomingdale, Buffalo Grove, Cary, Chicago, Clarendon
Hills, Deerfield, Downers Grove, Frankfort, Geneva, Glencoe, Glen
Ellyn, Gurnee, Grayslake, Highland Park, Highwood, Hoffman Estates,
Island Lake, Lake Bluff, Lake Villa, Lincoln Park, Lindenhurst,
McHenry, Mokena, Mundelein, Naperville, North Chicago, Northfield,
Palatine, Prospect Heights, Ravinia, Riverside, Roselle, Sauganash,
Skokie, Spring Grove, Vernon Hills, Wauconda, Western Springs,
Willowbrook and Winnetka, and in Delafield, Elm Grove, Madison and
Wales, Wisconsin.
Additionally, the Company operates various non-bank
subsidiaries. First Insurance Funding Corporation, one of the
largest insurance premium finance companies operating in the United
States, serves commercial and life insurance loan customers
throughout the country. 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 Corporation (formerly known as
WestAmerica Mortgage Company) engages primarily in the origination
and purchase of residential mortgages for sale into the secondary
market through origination offices located throughout the United
States. Loans are also originated nationwide through
relationships with wholesale and correspondent offices. Wayne
Hummer Investments, LLC is a broker-dealer providing a full range
of private client and brokerage services to clients and
correspondent banks located primarily in the Midwest. Wayne
Hummer Asset Management Company provides money management services
and advisory services to individual accounts. Advanced
Investment Partners, LLC is an investment management firm
specializing in the active management of domestic equity investment
strategies. Wayne Hummer Trust Company, a trust subsidiary,
allows Wintrust to service customers' trust and investment needs at
each banking location. Wintrust Information Technology
Services Company provides information technology support, item
capture and statement preparation services to the Wintrust
subsidiaries.
FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements within the
meaning of federal securities laws. Forward-looking information can
be identified through the use of words such as "intend," "plan,"
"project," "expect," "anticipate," "believe," "estimate,"
"contemplate," "possible," "point," "will," "may," "should,"
"would" and "could." Forward-looking statements and information are
not historical facts, are premised on many factors and assumptions,
and represent only management's expectations, estimates and
projections regarding future events. Similarly, these
statements are not guarantees of future performance and involve
certain risks and uncertainties that are difficult to predict,
which may include, but are not limited to, those listed below and
the Risk Factors discussed under Item 1A of the Company's 2009
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;
-
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;
-
a decrease in the Company's regulatory capital ratios, including
as a result of further declines in the value of its loan
portfolios, or otherwise;
-
effects resulting from the Company's participation in the
Capital Purchase Program, including restrictions on dividends and
executive compensation practices, as well as any future
restrictions that may become applicable to the
Company;
-
legislative or regulatory changes, particularly changes in
regulation of financial services companies and/or the products and
services offered by financial services companies;
-
increases in the Company's FDIC insurance premiums, or the
collection of special assessments by the FDIC;
-
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);
-
delinquencies or fraud with respect to the Company's premium
finance business;
-
the Company's ability to comply with covenants under its
securitization facility and credit facility;
-
credit downgrades among commercial and life insurance providers
that could negatively affect the value of collateral securing the
Company's premium finance loans;
-
any negative perception of the Company's reputation or financial
strength;
-
the loss of customers as a result of technological changes
allowing consumers to complete their financial transactions without
the use of a
bank;
-
the ability of the Company to attract and retain senior
management experienced in the banking and financial services
industries;
-
failure to identify and complete favorable acquisitions in the
future, or unexpected difficulties or developments related to the
integration of recent acquisitions, including with respect to any
FDIC-assisted
acquisitions;
-
unexpected difficulties or unanticipated developments related to
the Company's strategy of de novo bank formations and openings,
which typically require over 13 months of operations before
becoming profitable due to the impact of organizational and
overhead expenses, the startup phase of generating deposits and the
time lag typically involved in redeploying deposits into
attractively priced loans and other higher yielding earning
assets;
-
changes in accounting standards, rules and interpretations and
the impact on the Corporation's financial
statements;
-
significant litigation involving the Company;
and
-
the ability of the Company to receive dividends from its
subsidiaries.
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 or on behalf of
Wintrust. 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 release
revisions to these forward-looking statements or reflect events or
circumstances after the date of this 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 1:00 p.m. (CT)
Wednesday, April 28, 2010 regarding first quarter 2010
results. Individuals interested in listening should call (877)
363-1279 and enter Conference ID #69475431. A simultaneous
audio-only web cast and replay of the conference call may be
accessed via the Company's web site at (http://www.wintrust.com),
Investor News and Events, Presentations & Conference
Calls. The text of the first quarter 2010 earnings press
release will be available on the home page of the Company's web
site at (http://www.wintrust.com) and at the Investor News and
Events, Press Releases link on its website.
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
|
|
|
|
|
|
Selected Financial Highlights - 5 Quarter
Trends
|
|
|
|
|
|
|
(Dollars in thousands, except per share
data)
|
Three Months Ended
|
|
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
|
|
2010
|
2009
|
2009
|
2009
|
2009
|
|
Selected Financial Condition Data (at end of
period):
|
|
|
|
|
|
|
Total assets
|
$ 12,839,978
|
$ 12,215,620
|
$ 12,136,021
|
$ 11,359,536
|
$ 10,818,941
|
|
Total loans
|
9,070,562
|
8,411,771
|
8,275,257
|
7,595,476
|
7,841,447
|
|
Total deposits
|
9,724,870
|
9,917,074
|
9,847,163
|
9,191,332
|
8,625,977
|
|
Junior subordinated debentures
|
249,493
|
249,493
|
249,493
|
249,493
|
249,502
|
|
Total shareholders' equity
|
1,364,832
|
1,138,639
|
1,106,082
|
1,065,076
|
1,063,227
|
|
Selected Statements of Income Data:
|
|
|
|
|
|
|
Net interest income
|
95,865
|
86,934
|
87,663
|
72,497
|
64,782
|
|
Net revenue (1)
|
138,472
|
172,022
|
238,343
|
117,949
|
101,209
|
|
Income before taxes
|
25,490
|
43,102
|
54,587
|
10,041
|
9,774
|
|
Net income
|
16,017
|
28,167
|
31,995
|
6,549
|
6,358
|
|
Net income per common share – Basic
|
$ 0.43
|
$ 0.96
|
$ 1.14
|
$ 0.06
|
$ 0.06
|
|
Net income per common share – Diluted
|
$ 0.41
|
$ 0.90
|
$ 1.07
|
$ 0.06
|
$ 0.06
|
|
Selected Financial Ratios and Other Data:
|
|
|
|
|
|
|
Performance Ratios:
|
|
|
|
|
|
|
Net interest margin (2)
|
3.38%
|
3.10%
|
3.25%
|
2.91%
|
2.71%
|
|
Non-interest income to average assets
|
1.37%
|
2.77%
|
5.07%
|
1.65%
|
1.38%
|
|
Non-interest expense to average assets
|
2.70%
|
2.94%
|
3.11%
|
3.06%
|
2.91%
|
|
Net overhead ratio (3)
|
1.33%
|
0.17%
|
(1.95)%
|
1.41%
|
1.53%
|
|
Efficiency ratio (2) (4)
|
60.59%
|
52.54%
|
38.69%
|
72.02%
|
74.10%
|
|
Return on average assets
|
0.52%
|
0.92%
|
1.08%
|
0.24%
|
0.24%
|
|
Return on average common equity
|
4.93%
|
10.97%
|
13.79%
|
0.79%
|
0.71%
|
|
|
|
|
|
|
|
|
Average total assets
|
$ 12,590,817
|
$ 12,189,096
|
$ 11,797,520
|
$ 11,037,468
|
$ 10,724,966
|
|
Average total shareholders' equity
|
1,196,191
|
1,126,594
|
1,070,095
|
1,067,395
|
1,061,654
|
|
Average loans to average deposits ratio
|
94.6%
|
86.9%
|
90.5%
|
92.8%
|
93.4%
|
|
Common Share Data at end of
period:
|
|
|
|
|
|
|
Market price per common share
|
$ 37.21
|
$ 30.79
|
$ 27.96
|
$ 16.08
|
$ 12.30
|
|
Book value per common share
|
$ 34.76
|
$ 35.27
|
$ 34.10
|
$ 32.59
|
$ 32.64
|
|
Common shares outstanding
|
31,044,449
|
24,206,819
|
24,103,068
|
23,979,804
|
23,910,983
|
|
|
|
|
|
|
|
|
Other Data at end of period:
|
|
|
|
|
|
|
Leverage Ratio (5)
|
10.8%
|
9.3%
|
9.3%
|
9.7%
|
9.9%
|
|
Tier 1 Capital to risk-weighted assets (5)
|
13.3%
|
11.2%
|
10.8%
|
10.9%
|
11.2%
|
|
Total capital to risk-weighted assets (5)
|
14.9%
|
12.7%
|
12.3%
|
12.4%
|
12.6%
|
|
Tangible Common Equity ratio (TCE) (9)
|
6.3%
|
4.7%
|
4.5%
|
4.4%
|
4.7%
|
|
Allowance for credit losses (6)
|
$ 106,050
|
$ 101,831
|
$ 98,225
|
$ 86,699
|
$ 75,834
|
|
Credit discounts on purchased loans (7)
|
33,990
|
37,323
|
36,195
|
--
|
--
|
|
Total credit-related reserves (8)
|
140,040
|
139,154
|
134,420
|
86,699
|
75,834
|
|
Non-performing loans
|
140,960
|
131,804
|
231,659
|
238,219
|
175,866
|
|
Allowance for credit losses to total loans (6)
|
1.17%
|
1.21%
|
1.19%
|
1.14%
|
0.97%
|
|
Total credit-related reserves to total loans (8)
|
1.54%
|
1.65%
|
1.62%
|
1.14%
|
0.97%
|
|
Non-performing loans to total loans
|
1.55%
|
1.57%
|
2.80%
|
3.14%
|
2.24%
|
|
Number of:
|
|
|
|
|
|
|
Bank subsidiaries
|
15
|
15
|
15
|
15
|
15
|
|
Non-bank subsidiaries
|
8
|
8
|
8
|
8
|
7
|
|
Banking offices
|
78
|
78
|
78
|
79
|
79
|
|
(1) Net revenue includes net interest income and
non-interest income
|
|
|
|
|
|
|
(2) See "Supplemental Financial Measures/Ratios" for
additional information on this performance measure/ratio.
|
|
|
|
|
(3) The net overhead ratio is calculated by netting
total non-interest expense and total non-interest income,
annualizing this amount, and dividing by that period's total
average assets. A lower ratio indicates a higher degree of
efficiency.
|
|
(4) The efficiency ratio is calculated by dividing
total non-interest expense by tax-equivalent net revenue (less
securities gains or losses). A lower ratio indicates more
efficient revenue generation.
|
|
(5) Capital ratios for current quarter-end are
estimated.
|
|
|
|
|
|
|
(6) The allowance for credit losses includes both the
allowance for loan losses and the allowance for unfunded
lending-related commitments.
|
|
|
|
(7) Represents the credit discounts on purchased life
insurance premium finance loans.
|
|
|
|
|
|
|
(8) The sum of the allowance for credit losses and
credit discounts on purchased life insurance premium finance loans
divided by total loans outstanding plus the credit discounts on
purchased life insurance premium finance loans.
|
|
(9) Total shareholders equity minus preferred stock
and total intangible assets divided by total assets minus total
intangible assets
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
|
|
|
|
|
Consolidated Statements of Condition - 5 Quarter
Trends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
(In thousands)
|
March 31, 2010
|
December 31, 2009
|
September 30, 2009
|
June 30, 2009
|
March 31, 2009
|
|
Assets
|
|
|
|
|
|
|
Cash and due from banks
|
$ 106,501
|
$ 135,133
|
$ 128,898
|
$ 122,382
|
$ 122,207
|
|
Federal funds sold and securities purchased under resale
agreements
|
15,393
|
23,483
|
22,863
|
41,450
|
98,454
|
|
Interest-bearing deposits with other banks
|
1,222,323
|
1,025,663
|
1,168,362
|
655,759
|
266,512
|
|
Available-for-sale securities, at fair value
|
1,279,920
|
1,328,815
|
1,434,248
|
1,267,410
|
1,413,576
|
|
Trading account securities
|
39,938
|
33,774
|
29,204
|
22,973
|
13,815
|
|
Brokerage customer receivables
|
20,978
|
20,871
|
19,441
|
17,701
|
15,850
|
|
Loans held-for-sale
|
156,049
|
275,715
|
193,255
|
821,100
|
218,707
|
|
Loans, net of unearned income
|
9,070,562
|
8,411,771
|
8,275,257
|
7,595,476
|
7,841,447
|
|
Less: Allowance for loan losses
|
102,397
|
98,277
|
95,096
|
85,113
|
74,248
|
|
Net Loans
|
8,968,165
|
8,313,494
|
8,180,161
|
7,510,363
|
7,767,199
|
|
Premises and equipment, net
|
348,182
|
350,345
|
352,890
|
350,447
|
349,245
|
|
Accrued interest receivable and other assets
|
363,676
|
416,678
|
315,806
|
260,182
|
263,145
|
|
Trade date securities receivable
|
27,850
|
--
|
--
|
--
|
--
|
|
Goodwill
|
278,025
|
278,025
|
276,525
|
276,525
|
276,310
|
|
Other intangible assets
|
12,978
|
13,624
|
14,368
|
13,244
|
13,921
|
|
Total assets
|
$12,839,978
|
$ 12,215,620
|
$ 12,136,021
|
$ 11,359,536
|
$ 10,818,941
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Non-interest bearing
|
$ 871,830
|
$ 864,306
|
$ 841,668
|
$ 793,173
|
$ 745,194
|
|
Interest bearing
|
8,853,040
|
9,052,768
|
9,005,495
|
8,398,159
|
7,880,783
|
|
Total deposits
|
9,724,870
|
9,917,074
|
9,847,163
|
9,191,332
|
8,625,977
|
|
Notes payable
|
1,000
|
1,000
|
1,000
|
1,000
|
1,000
|
|
Federal Home Loan Bank advances
|
421,775
|
430,987
|
433,983
|
435,980
|
435,981
|
|
Other borrowings
|
218,079
|
247,437
|
252,071
|
244,286
|
250,488
|
|
Secured borrowings - owed to securitization investors
|
600,000
|
--
|
--
|
--
|
--
|
|
Subordinated notes
|
60,000
|
60,000
|
65,000
|
65,000
|
70,000
|
|
Junior subordinated debentures
|
249,493
|
249,493
|
249,493
|
249,493
|
249,502
|
|
Trade date securities payable
|
62,017
|
--
|
--
|
--
|
7,170
|
|
Accrued interest payable and other liabilities
|
137,912
|
170,990
|
181,229
|
107,369
|
115,596
|
|
Total liabilities
|
11,475,146
|
11,076,981
|
11,029,939
|
10,294,460
|
9,755,714
|
|
|
|
|
|
|
|
|
Shareholders' Equity:
|
|
|
|
|
|
|
Preferred stock
|
285,642
|
284,824
|
284,061
|
283,518
|
282,662
|
|
Common stock
|
31,044
|
27,079
|
26,965
|
26,835
|
26,766
|
|
Surplus
|
677,090
|
589,939
|
580,988
|
577,473
|
575,166
|
|
Treasury stock
|
--
|
(122,733)
|
(122,437)
|
(122,302)
|
(122,302)
|
|
Retained earnings
|
373,903
|
366,152
|
342,873
|
317,713
|
315,855
|
|
Accumulated other comprehensive loss
|
(2,847)
|
(6,622)
|
(6,368)
|
(18,161)
|
(14,920)
|
|
Total shareholders' equity
|
1,364,832
|
1,138,639
|
1,106,082
|
1,065,076
|
1,063,227
|
|
Total liabilities and shareholders' equity
|
$12,839,978
|
$ 12,215,620
|
$ 12,136,021
|
$ 11,359,536
|
$ 10,818,941
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
|
|
|
|
|
|
Consolidated Statements of Income (Unaudited) - 5
Quarter Trends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
(In thousands, except per share data)
|
March 31, 2010
|
December 31, 2009
|
September 30, 2009
|
June 30, 2009
|
March 31, 2009
|
|
Interest income
|
|
|
|
|
|
|
Interest and fees on loans
|
$ 129,542
|
$ 122,140
|
$ 126,448
|
$ 110,302
|
$ 106,887
|
|
Interest bearing deposits with banks
|
1,274
|
1,369
|
778
|
767
|
660
|
|
Federal funds sold and securities purchased under resale
agreements
|
49
|
38
|
106
|
66
|
61
|
|
Securities
|
11,471
|
13,119
|
14,106
|
15,819
|
14,327
|
|
Trading account securities
|
21
|
20
|
7
|
55
|
24
|
|
Brokerage customer receivables
|
139
|
143
|
132
|
120
|
120
|
|
Total interest income
|
142,496
|
136,829
|
141,577
|
127,129
|
122,079
|
|
Interest expense
|
|
|
|
|
|
|
Interest on deposits
|
33,212
|
38,998
|
42,806
|
43,502
|
45,953
|
|
Interest on Federal Home Loan Bank advances
|
4,346
|
4,510
|
4,536
|
4,503
|
4,453
|
|
Interest on notes payable and other borrowings
|
1,462
|
1,663
|
1,779
|
1,752
|
1,870
|
|
Interest on secured borrowings - owed to securitization
investors
|
2,995
|
--
|
--
|
--
|
--
|
|
Interest on subordinated notes
|
241
|
286
|
333
|
428
|
580
|
|
Interest on junior subordinated debentures
|
4,375
|
4,438
|
4,460
|
4,447
|
4,441
|
|
Total interest expense
|
46,631
|
49,895
|
53,914
|
54,632
|
57,297
|
|
Net interest income
|
95,865
|
86,934
|
87,663
|
72,497
|
64,782
|
|
Provision for credit losses
|
29,044
|
38,603
|
91,193
|
23,663
|
14,473
|
|
Net interest income after provision for credit losses
|
66,821
|
48,331
|
(3,530)
|
48,834
|
50,309
|
|
Non-interest income
|
|
|
|
|
|
|
Wealth management
|
8,667
|
8,047
|
7,501
|
6,883
|
5,926
|
|
Mortgage banking
|
9,727
|
16,495
|
13,204
|
22,596
|
16,232
|
|
Service charges on deposit accounts
|
3,332
|
3,437
|
3,447
|
3,183
|
2,970
|
|
Gain on sales of commercial premium finance receivables
|
--
|
4,429
|
3,629
|
196
|
322
|
|
Gains (losses) on available-for-sale securities, net
|
392
|
642
|
(412)
|
1,540
|
(2,038)
|
|
Gain on bargain purchase
|
10,894
|
42,951
|
113,062
|
--
|
--
|
|
Trading income
|
5,973
|
4,437
|
6,236
|
8,274
|
8,744
|
|
Other
|
3,622
|
4,650
|
4,013
|
2,780
|
4,271
|
|
Total non-interest income
|
42,607
|
85,088
|
150,680
|
45,452
|
36,427
|
|
Non-interest expense
|
|
|
|
|
|
|
Salaries and employee benefits
|
49,072
|
47,955
|
48,088
|
46,015
|
44,820
|
|
Equipment
|
3,896
|
4,097
|
4,069
|
4,015
|
3,938
|
|
Occupancy, net
|
6,230
|
6,124
|
5,884
|
5,608
|
6,190
|
|
Data processing
|
3,407
|
3,404
|
3,226
|
3,216
|
3,136
|
|
Advertising and marketing
|
1,314
|
1,366
|
1,488
|
1,420
|
1,095
|
|
Professional fees
|
3,107
|
3,556
|
4,089
|
2,871
|
2,883
|
|
Amortization of other intangible assets
|
645
|
744
|
677
|
676
|
687
|
|
FDIC insurance
|
3,809
|
4,731
|
4,334
|
9,121
|
3,013
|
|
OREO expenses, net
|
1,337
|
5,293
|
10,243
|
1,072
|
2,356
|
|
Other
|
11,121
|
13,047
|
10,465
|
10,231
|
8,844
|
|
Total non-interest expense
|
83,938
|
90,317
|
92,563
|
84,245
|
76,962
|
|
Income before taxes
|
25,490
|
43,102
|
54,587
|
10,041
|
9,774
|
|
Income tax expense
|
9,473
|
14,935
|
22,592
|
3,492
|
3,416
|
|
Net income
|
$ 16,017
|
$ 28,167
|
$ 31,995
|
$ 6,549
|
$ 6,358
|
|
Preferred stock dividends and discount accretion
|
$ 4,943
|
$ 4,888
|
$ 4,668
|
$ 5,000
|
$ 5,000
|
|
Net income applicable to common shares
|
$ 11,074
|
$ 23,279
|
$ 27,327
|
$ 1,549
|
$ 1,358
|
|
Net income per common share - Basic
|
$ 0.43
|
$ 0.96
|
$ 1.14
|
$ 0.06
|
$ 0.06
|
|
Net income per common share - Diluted
|
$ 0.41
|
$ 0.90
|
$ 1.07
|
$ 0.06
|
$ 0.06
|
|
Cash dividends declared per common share
|
$ 0.09
|
$ --
|
$ 0.09
|
$ --
|
$ 0.18
|
|
Weighted average common shares outstanding
|
25,942
|
24,166
|
24,052
|
23,964
|
23,855
|
|
Dilutive potential common shares
|
1,139
|
2,845
|
2,493
|
300
|
221
|
|
Average common shares and dilutive common shares
|
27,081
|
27,011
|
26,545
|
24,264
|
24,076
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
|
|
|
|
|
|
|
Period End Loan Balances - 5 Quarter Trends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
March 31, 2010
|
December 31, 2009
|
September 30, 2009
|
June 30, 2009
|
March 31, 2009
|
|
Balance:
|
|
|
|
|
|
|
Commercial and commercial real-estate
|
$ 5,083,052
|
$ 5,039,906
|
$ 5,035,859
|
$ 5,083,917
|
$ 4,933,355
|
|
Home equity
|
924,993
|
930,482
|
928,548
|
912,399
|
920,412
|
|
Residential real-estate
|
322,984
|
306,296
|
281,151
|
279,345
|
280,808
|
|
Premium finance receivables - commercial (2)
|
1,317,822
|
730,144
|
752,032
|
888,115
|
1,287,261
|
|
Premium finance receivables - life insurance
|
1,233,573
|
1,197,893
|
1,045,653
|
182,399
|
130,895
|
|
Indirect consumer (1)
|
83,136
|
98,134
|
115,528
|
133,808
|
154,257
|
|
Consumer and other
|
105,002
|
108,916
|
116,486
|
115,493
|
134,459
|
|
Total loans, net of unearned income
|
$ 9,070,562
|
$ 8,411,771
|
$ 8,275,257
|
$ 7,595,476
|
$ 7,841,447
|
|
|
|
|
|
|
|
|
Mix:
|
|
|
|
|
|
|
Commercial and commercial real-estate
|
56%
|
60%
|
61%
|
67%
|
63%
|
|
Home equity
|
10
|
11
|
11
|
12
|
12
|
|
Residential real-estate
|
4
|
4
|
4
|
3
|
4
|
|
Premium finance receivables - commercial (2)
|
14
|
9
|
9
|
12
|
16
|
|
Premium finance receivables - life insurance
|
14
|
14
|
13
|
2
|
2
|
|
Indirect consumer (1)
|
1
|
1
|
1
|
2
|
2
|
|
Consumer and other
|
1
|
1
|
1
|
2
|
1
|
|
Total loans, net of unearned income
|
100%
|
100%
|
100%
|
100%
|
100%
|
|
(1) Includes autos, boats, snowmobiles and other
indirect consumer loans.
|
|
|
|
|
|
|
(2) Excludes $520 million of property and casualty
premium finance receivables reclassified to held-for-sale in the
second quarter of 2009.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
|
|
|
|
|
|
|
Period End Loan Balances - 5 Quarter Trends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
March 31, 2010
|
December 31, 2009
|
September 30, 2009
|
June 30, 2009
|
March 31, 2009
|
|
Balance:
|
|
|
|
|
|
|
Non-interest bearing
|
$ 871,830
|
$ 864,306
|
$ 841,668
|
$ 793,173
|
$ 745,194
|
|
NOW
|
1,448,857
|
1,415,856
|
1,245,689
|
1,072,255
|
1,064,663
|
|
Wealth Management deposits (1)
|
690,919
|
971,113
|
935,740
|
919,968
|
833,291
|
|
Money Market
|
1,586,830
|
1,534,632
|
1,468,228
|
1,379,164
|
1,313,157
|
|
Savings
|
558,770
|
561,916
|
513,239
|
461,377
|
406,376
|
|
Time certificates of deposit
|
4,567,664
|
4,569,251
|
4,842,599
|
4,565,395
|
4,263,296
|
|
Total deposits
|
$ 9,724,870
|
$ 9,917,074
|
$ 9,847,163
|
$ 9,191,332
|
$ 8,625,977
|
|
|
|
|
|
|
|
|
Mix:
|
|
|
|
|
|
|
Non-interest bearing
|
9%
|
9%
|
9%
|
9%
|
9%
|
|
NOW
|
15
|
14
|
13
|
11
|
12
|
|
Wealth Management deposits (1)
|
7
|
10
|
9
|
10
|
10
|
|
Money Market
|
16
|
15
|
15
|
15
|
15
|
|
Savings
|
6
|
6
|
5
|
5
|
5
|
|
Time certificates of deposit
|
47
|
46
|
49
|
50
|
49
|
|
Total deposits
|
100%
|
100%
|
100%
|
100%
|
100%
|
|
(1) Represents deposit balances of the Company's
subsidiary banks from brokerage customers of Wayne Hummer
Investments, trust and asset management customers of Wayne Hummer
Trust Company and brokerage customers from unaffiliated companies
which have been placed into deposit accounts of the Banks.
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
|
|
|
|
Quarterly Average Balances - 5 Quarter
Trends
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
|
(In thousands)
|
2010
|
2009
|
2009
|
2009
|
2009
|
|
Liquidity management assets
|
$ 2,384,122
|
$ 2,569,584
|
$ 2,078,330
|
$ 1,851,179
|
$ 1,839,161
|
|
Other earning assets
|
26,269
|
26,167
|
24,874
|
22,694
|
22,128
|
|
Loans, net of unearned income
|
9,150,078
|
8,604,006
|
8,665,281
|
8,212,572
|
7,924,849
|
|
Total earning assets
|
$ 11,560,469
|
$ 11,199,757
|
$ 10,768,485
|
$ 10,086,445
|
$ 9,786,138
|
|
Allowance for loan losses
|
(107,257)
|
(97,269)
|
(85,300)
|
(72,990)
|
(72,044)
|
|
Cash and due from banks
|
113,514
|
124,219
|
109,645
|
118,402
|
107,550
|
|
Other assets
|
1,024,091
|
962,389
|
1,004,690
|
905,611
|
903,322
|
|
Total assets
|
$ 12,590,817
|
$ 12,189,096
|
$ 11,797,520
|
$ 11,037,468
|
$ 10,724,966
|
|
|
|
|
|
|
|
|
Interest-bearing deposits
|
$ 8,818,012
|
$ 9,016,863
|
$ 8,799,578
|
$ 8,097,096
|
$ 7,747,879
|
|
Federal Home Loan Bank advances
|
429,195
|
432,028
|
434,134
|
435,983
|
435,982
|
|
Notes payable and other borrowings
|
225,919
|
234,754
|
245,352
|
249,123
|
301,894
|
|
Secured borrowings - owed to securitization investors
|
600,000
|
--
|
--
|
--
|
--
|
|
Subordinated notes
|
60,000
|
63,261
|
65,000
|
66,648
|
70,000
|
|
Junior subordinated notes
|
249,493
|
249,493
|
249,493
|
249,494
|
249,506
|
|
Total interest-bearing liabilities
|
$ 10,382,619
|
$ 9,996,399
|
$ 9,793,557
|
$ 9,098,344
|
$ 8,805,261
|
|
Non-interest bearing liabilities
|
858,875
|
886,988
|
775,202
|
754,479
|
733,911
|
|
Other liabilities
|
153,132
|
179,115
|
158,666
|
117,250
|
124,140
|
|
Equity
|
1,196,191
|
1,126,594
|
1,070,095
|
1,067,395
|
1,061,654
|
|
Total liabilities and shareholders' equity
|
$ 12,590,817
|
$ 12,189,096
|
$ 11,797,520
|
$ 11,037,468
|
$ 10,724,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
|
|
|
|
Net Interest Margin - 5 Quarter Trends
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
|
|
2010
|
2009
|
2009
|
2009
|
2009
|
|
Yield earned on:
|
|
|
|
|
|
|
Liquidity management assets
|
2.24%
|
2.31%
|
2.94%
|
3.71%
|
3.42%
|
|
Other earning assets
|
2.53
|
2.59
|
2.36
|
3.27
|
2.85
|
|
Loans, net of unearned income
|
5.75
|
5.64
|
5.79
|
5.39
|
5.48
|
|
|
5.01%
|
4.87%
|
5.24%
|
5.08%
|
5.08%
|
|
Rate paid on:
|
|
|
|
|
|
|
Interest-bearing deposits
|
1.53%
|
1.72%
|
1.93%
|
2.15%
|
2.41%
|
|
Federal Home Loan Bank advances
|
4.11
|
4.14
|
4.14
|
4.14
|
4.14
|
|
Notes payable and other borrowings
|
2.63
|
2.81
|
2.88
|
2.82
|
2.51
|
|
Secured borrowings - owed to securitization investors
|
2.02
|
--
|
--
|
--
|
--
|
|
Subordinated notes
|
1.60
|
1.77
|
2.01
|
2.54
|
3.31
|
|
Junior subordinated notes
|
7.01
|
6.96
|
6.99
|
7.05
|
7.12
|
|
|
1.82%
|
1.98%
|
2.18%
|
2.41%
|
2.64%
|
|
|
|
|
|
|
|
|
Interest rate spread
|
3.19%
|
2.89%
|
3.06%
|
2.67%
|
2.44%
|
|
Net free funds/contribution
|
0.19%
|
0.21%
|
0.19%
|
0.24%
|
0.27%
|
|
Net interest income/Net interest margin
|
3.38%
|
3.10%
|
3.25%
|
2.91%
|
2.71%
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
|
|
|
|
|
Net Interest Margin (Including Call Option Income) - 5
Quarter Trends
|
|
|
|
|
|
|
Three Months Ended
|
|
(Dollars in thousands)
|
March 31, 2010
|
December 31, 2009
|
September 30, 2009
|
June 30, 2009
|
March 31, 2009
|
|
|
|
|
|
|
|
|
Net interest income
|
$ 96,311
|
$ 87,448
|
$ 88,178
|
$ 73,067
|
$ 65,402
|
|
Call option income
|
289
|
--
|
--
|
--
|
1,998
|
|
Net interest income including call option income
|
$ 96,600
|
$ 87,448
|
$ 88,178
|
$ 73,067
|
$ 67,400
|
|
|
|
|
|
|
|
|
Yield on earning assets
|
5.01%
|
4.87%
|
5.24%
|
5.08%
|
5.08%
|
|
Rate on interest-bearing liabilities
|
1.82
|
1.98
|
2.18
|
2.41
|
2.64
|
|
Rate spread
|
3.19%
|
2.89%
|
3.06%
|
2.67%
|
2.44%
|
|
Net free funds contribution
|
0.19
|
0.21
|
0.19
|
0.24
|
0.27
|
|
Net interest margin
|
3.38
|
3.10
|
3.25
|
2.91
|
2.71
|
|
Call option income
|
0.01
|
--
|
--
|
--
|
0.08
|
|
Net interest margin including call option income
|
3.39%
|
3.10%
|
3.25%
|
2.91%
|
2.79%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
|
|
|
|
|
Net Interest Margin (Including Call Option Income) - YTD
Trends
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
Years Ended
December 31,
|
|
(Dollars in thousands)
|
2010
|
2009
|
2008
|
2007
|
2006
|
|
|
|
|
|
|
|
|
Net interest income
|
$ 96,311
|
$ 314,096
|
$ 247,054
|
$ 264,777
|
$ 250,507
|
|
Call option income
|
289
|
1,998
|
29,024
|
2,628
|
3,157
|
|
Net interest income including call option income
|
$ 96,600
|
$ 316,094
|
$ 276,078
|
$ 267,405
|
$ 253,664
|
|
|
|
|
|
|
|
|
Yield on earning assets
|
5.01%
|
5.07%
|
5.88%
|
7.21%
|
6.91%
|
|
Rate on interest-bearing liabilities
|
1.82
|
2.29
|
3.31
|
4.39
|
4.11
|
|
Rate spread
|
3.19%
|
2.78%
|
2.57%
|
2.82%
|
2.80%
|
|
Net free funds contribution
|
0.19
|
0.23
|
0.24
|
0.29
|
0.30
|
|
Net interest margin
|
3.38
|
3.01
|
2.81
|
3.11
|
3.10
|
|
Call option income
|
0.01
|
0.02
|
0.33
|
0.03
|
0.04
|
|
Net interest margin including call option income
|
3.39%
|
3.03%
|
3.14%
|
3.14%
|
3.14%
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
|
|
|
|
Non-Interest Income - 5 Quarter Trends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
(In thousands)
|
March 31, 2010
|
December 31, 2009
|
September 30, 2009
|
June 30, 2009
|
March 31, 2009
|
|
Brokerage
|
$ 5,554
|
$ 5,034
|
$ 4,593
|
$ 4,280
|
$ 3,819
|
|
Trust and asset management
|
3,113
|
3,013
|
2,908
|
2,603
|
2,107
|
|
Total wealth management
|
8,667
|
8,047
|
7,501
|
6,883
|
5,926
|
|
Mortgage banking
|
9,727
|
16,495
|
13,204
|
22,596
|
16,232
|
|
Service charges on deposit accounts
|
3,332
|
3,437
|
3,447
|
3,183
|
2,970
|
|
Gains on sales of premium finance receivables
|
--
|
4,429
|
3,629
|
196
|
322
|
|
Gains (losses) on available-for-sale securities
|
392
|
642
|
(412)
|
1,540
|
(2,038)
|
|
Gain on bargain purchase
|
10,894
|
42,951
|
113,062
|
--
|
--
|
|
Trading income
|
5,973
|
4,437
|
6,236
|
8,274
|
8,744
|
|
Other:
|
|
|
|
|
|
|
Fees from covered call options
|
289
|
--
|
--
|
--
|
1,998
|
|
Bank Owned Life Insurance
|
623
|
642
|
552
|
565
|
286
|
|
Administrative services
|
582
|
511
|
527
|
454
|
482
|
|
Miscellaneous
|
2,128
|
3,497
|
2,934
|
1,761
|
1,505
|
|
Total other income
|
3,622
|
4,650
|
4,013
|
2,780
|
4,271
|
|
|
|
|
|
|
|
|
Total Non-Interest Income
|
$ 42,607
|
$ 85,088
|
$ 150,680
|
$ 45,452
|
$ 36,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
|
|
|
|
Non-Interest Expense - 5 Quarter Trends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
(In thousands)
|
March 31, 2010
|
December 31, 2009
|
September 30, 2009
|
June 30, 2009
|
March 31, 2009
|
|
Salaries and employee benefits
|
$ 49,072
|
$ 47,955
|
$ 48,088
|
$ 46,015
|
$ 44,820
|
|
Equipment
|
3,896
|
4,097
|
4,069
|
4,015
|
3,938
|
|
Occupancy, net
|
6,230
|
6,124
|
5,884
|
5,608
|
6,190
|
|
Data processing
|
3,407
|
3,404
|
3,226
|
3,216
|
3,136
|
|
Advertising and marketing
|
1,314
|
1,366
|
1,488
|
1,420
|
1,095
|
|
Professional fees
|
3,107
|
3,556
|
4,089
|
2,871
|
2,883
|
|
Amortization of other intangibles
|
645
|
744
|
677
|
676
|
687
|
|
FDIC insurance
|
3,809
|
4,731
|
4,334
|
9,121
|
3,013
|
|
OREO expenses, net
|
1,337
|
5,293
|
10,243
|
1,072
|
2,356
|
|
Other:
|
|
|
|
|
|
|
Commissions - 3rd party brokers
|
962
|
757
|
843
|
791
|
704
|
|
Postage
|
1,110
|
1,367
|
1,139
|
1,146
|
1,180
|
|
Stationery and supplies
|
732
|
859
|
769
|
793
|
768
|
|
Miscellaneous
|
8,317
|
10,064
|
7,714
|
7,501
|
6,192
|
|
Total other expense
|
11,121
|
13,047
|
10,465
|
10,231
|
8,844
|
|
|
|
|
|
|
|
|
Total Non-Interest Expense
|
$ 83,938
|
$ 90,317
|
$ 92,563
|
$ 84,245
|
$ 76,962
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
|
|
|
|
|
|
|
Allowance for Credit Losses - 5 Quarter
Trends
|
|
|
|
|
|
|
|
Three Months Ended
|
|
(Dollars in thousands)
|
March 31, 2010
|
December 31, 2009
|
September 30, 2009
|
June 30, 2009
|
March 31, 2009
|
|
|
|
|
|
|
|
|
Allowance for loan losses at beginning of
period
|
$ 98,277
|
$ 95,096
|
$ 85,113
|
$ 74,248
|
$ 69,767
|
|
Provision for credit losses
|
29,044
|
38,603
|
91,193
|
23,663
|
14,473
|
|
Other adjustments
|
1,943
|
--
|
--
|
--
|
--
|
|
Reclassification to allowance for unfunded
lending-related commitments
|
(99)
|
(494)
|
(1,543)
|
--
|
--
|
|
|
|
|
|
|
|
|
Charge-offs:
|
|
|
|
|
|
|
Commercial and commercial real estate
|
24,919
|
31,788
|
74,613
|
9,846
|
7,890
|
|
Home equity
|
281
|
1,572
|
1,727
|
795
|
511
|
|
Residential real estate
|
406
|
385
|
422
|
108
|
152
|
|
Premium finance receivables - commercial
|
1,933
|
2,532
|
2,478
|
1,792
|
1,351
|
|
Premium finance receivables - life insurance
|
--
|
--
|
--
|
--
|
--
|
|
Indirect consumer
|
274
|
427
|
588
|
473
|
361
|
|
Consumer and other
|
179
|
148
|
244
|
130
|
121
|
|
Total charge-offs
|
27,992
|
36,852
|
80,072
|
13,144
|
10,386
|
|
|
|
|
|
|
|
|
Recoveries:
|
|
|
|
|
|
|
Commercial and commercial real estate
|
885
|
789
|
139
|
107
|
208
|
|
Home equity
|
8
|
812
|
1
|
1
|
1
|
|
Residential real estate
|
5
|
--
|
--
|
--
|
--
|
|
Premium finance receivables - commercial
|
229
|
194
|
161
|
155
|
141
|
|
Premium finance receivables - life insurance
|
--
|
--
|
--
|
--
|
--
|
|
Indirect consumer
|
50
|
44
|
62
|
44
|
29
|
|
Consumer and other
|
47
|
85
|
42
|
39
|
15
|
|
Total recoveries
|
1,224
|
1,924
|
405
|
346
|
394
|
|
Net charge-offs
|
(26,768)
|
(34,928)
|
(79,667)
|
(12,798)
|
(9,992)
|
|
|
|
|
|
|
|
|
Allowance for loan losses at period end
|
$ 102,397
|
$ 98,277
|
$ 95,096
|
$ 85,113
|
$ 74,248
|
|
|
|
|
|
|
|
|
Allowance for unfunded lending-related commitments at
period end
|
$ 3,653
|
$ 3,554
|
$ 3,129
|
$ 1,586
|
$ 1,586
|
|
|
|
|
|
|
|
|
Allowance for credit losses at period end
|
$ 106,050
|
$ 101,831
|
$ 98,225
|
$ 86,699
|
$ 75,834
|
|
|
|
|
|
|
|
|
Credit-related discounts on purchased loans
|
33,990
|
37,323
|
36,195
|
--
|
--
|
|
Total credit reserves
|
$ 140,040
|
$ 139,154
|
$ 134,420
|
$ 86,699
|
$ 75,834
|
|
|
|
|
|
|
|
|
Annualized net charge-offs by category as
a percentage of its own respective category's
average:
|
|
|
|
|
|
|
Commercial and commercial real estate
|
1.94%
|
2.42%
|
5.83%
|
0.78%
|
0.65%
|
|
Home equity
|
0.12
|
0.32
|
0.75
|
0.35
|
0.23
|
|
Residential real estate
|
0.32
|
0.28
|
0.33
|
0.09
|
0.14
|
|
Premium finance receivables - commercial
|
0.54
|
1.38
|
0.74
|
0.48
|
0.37
|
|
Premium finance receivables - life insurance
|
--
|
--
|
--
|
--
|
--
|
|
Indirect consumer
|
1.00
|
1.43
|
1.67
|
1.20
|
0.81
|
|
Consumer and other
|
0.48
|
0.22
|
0.71
|
0.25
|
0.27
|
|
Total loans, net of unearned income
|
1.19%
|
1.61%
|
3.65%
|
0.63%
|
0.51%
|
|
|
|
|
|
|
|
|
Net charge-offs as a percentage of the provision for
credit losses
|
92.48%
|
90.48%
|
87.36%
|
54.08%
|
69.04%
|
|
|
|
|
|
|
|
|
Loans at period-end
|
$ 9,070,562
|
$ 8,411,771
|
$ 8,275,257
|
$ 7,595,476
|
$ 7,841,447
|
|
Allowance for loan losses as a percentage of loans at
period-end
|
1.13%
|
1.17%
|
1.15%
|
1.12%
|
0.95%
|
|
Allowance for credit losses as a percentage of loans at
period-end
|
1.17%
|
1.21%
|
1.19%
|
1.14%
|
0.97%
|
|
Total credit reserves as a percentage of loans (net of
discounts) at period-end
|
1.54%
|
1.65%
|
1.62%
|
1.14%
|
0.97%
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
|
|
|
|
|
|
|
Non-Performing Loans - 5 Quarter Trends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
March 31, 2010
|
December 31, 2009
|
September 30, 2009
|
June 30, 2009
|
March 31, 2009
|
|
|
|
|
|
|
|
|
Loans past due greater than 90 days and still
accruing:
|
|
|
|
|
|
|
Commercial and commercial real-estate
|
$ 1,195
|
$ 561
|
$ 23,377
|
$ 7,519
|
$ 4,677
|
|
Home equity
|
21
|
--
|
100
|
--
|
726
|
|
Residential real-estate
|
--
|
412
|
1,172
|
1,447
|
--
|
|
Premium finance receivables - commercial
|
7,479
|
6,271
|
11,714
|
14,301
|
9,722
|
|
Premium finance receivables - life insurance
|
5,450
|
--
|
--
|
--
|
--
|
|
Indirect consumer
|
665
|
461
|
549
|
695
|
1,076
|
|
Consumer and other
|
20
|
95
|
25
|
341
|
281
|
|
Total past due greater than 90 days and still accruing
|
14,830
|
7,800
|
36,937
|
24,303
|
16,482
|
|
|
|
|
|
|
|
|
Non-accrual loans:
|
|
`
|
|
|
|
|
Commercial and commercial real-estate
|
97,720
|
97,148
|
166,726
|
184,722
|
136,306
|
|
Home equity
|
7,730
|
8,883
|
6,808
|
7,133
|
4,250
|
|
Residential real-estate
|
5,460
|
3,779
|
4,077
|
4,792
|
4,959
|
|
Premium finance receivables - commercial
|
14,106
|
11,878
|
16,093
|
15,806
|
12,694
|
|
Premium finance receivables - life insurance
|
73
|
704
|
--
|
--
|
--
|
|
Indirect consumer
|
615
|
995
|
736
|
1,225
|
1,084
|
|
Consumer and other
|
426
|
617
|
282
|
238
|
91
|
|
Total non-accrual
|
126,130
|
124,004
|
194,722
|
213,916
|
159,384
|
|
|
|
|
|
|
|
|
Total non-performing loans:
|
|
|
|
|
|
|
Commercial and commercial real-estate
|
98,915
|
97,709
|
190,103
|
192,241
|
140,983
|
|
Home equity
|
7,751
|
8,883
|
6,908
|
7,133
|
4,976
|
|
Residential real-estate
|
5,460
|
4,191
|
5,249
|
6,239
|
4,959
|
|
Premium finance receivables - commercial
|
21,585
|
18,149
|
27,807
|
30,107
|
22,416
|
|
Premium finance receivables - life insurance
|
5,523
|
704
|
--
|
--
|
--
|
|
Indirect consumer
|
1,280
|
1,456
|
1,285
|
1,920
|
2,160
|
|
Consumer and other
|
446
|
712
|
307
|
579
|
372
|
|
Total non-performing
|
$ 140,960
|
$ 131,804
|
$ 231,659
|
$ 238,219
|
$ 175,866
|
|
|
|
|
|
|
|
|
Total non-performing loans by category as a percent
of its own respective category's period-end
balance:
|
|
|
|
|
|
|
Commercial and commercial real-estate
|
1.95%
|
1.94%
|
3.77%
|
3.78%
|
2.86%
|
|
Home equity
|
0.84
|
0.95
|
0.74
|
0.78
|
0.54
|
|
Residential real-estate
|
1.69
|
1.37
|
1.87
|
2.23
|
1.77
|
|
Premium finance receivables - commercial
|
1.64
|
2.49
|
3.70
|
3.39
|
1.74
|
|
Premium finance receivables - life insurance
|
0.45
|
0.06
|
--
|
--
|
--
|
|
Indirect consumer
|
1.54
|
1.48
|
1.11
|
1.44
|
1.40
|
|
Consumer and other
|
0.42
|
0.65
|
0.26
|
0.50
|
0.28
|
|
Total loans, net of unearned income
|
1.55%
|
1.57%
|
2.80%
|
3.14%
|
2.24%
|
|
|
|
|
|
|
|
|
Allowance for loan losses as a percentage
total-nonperforming loans
|
72.64%
|
74.56%
|
41.05%
|
35.73%
|
42.22%
|
CONTACT: Wintrust Financial Corporation
Edward J. Wehmer, President & Chief Executive Officer
David A. Dykstra, Senior Executive Vice President &
Chief Operating Officer
(847) 615-4096
www.wintrust.com
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