Wintrust Financial Corporation ("Wintrust" or "the Company")
(Nasdaq:WTFC) announced net income of $23.2 million or $0.50 per
diluted common share for the first quarter of 2012 compared to net
income of $19.2 million or $0.41 per diluted common share for the
fourth quarter of 2011 and $16.4 million or $0.36 per diluted
common share for the first quarter of 2011.
Highlights Compared with the 2011 Fourth
Quarter:
- 3.55% net interest margin, up ten basis
points
- 7% annualized growth in average total loans, excluding
covered loans
- 5% decline in non-performing loans to 1.06% of total
loans, excluding covered loans, down from 1.14%
- 42% decline in net charge-offs to an annualized 0.53%
of average total loans, excluding covered loans, down from
0.93%
- Improvement in allowance for loan losses to 97.7% of
total non-performing loans, excluding covered loans, up from
91.9%
- 3% increase in tangible common book value per share to
$27.57, up from $26.72
- Increase in tangible common equity ratio, assuming
conversion of preferred stock, to 8.6%, up from 7.8%
- 4 basis point decline in net overhead ratio to 1.58%,
based on pre-tax adjusted earnings, down from 1.62%
- 62.31% efficiency ratio, based on pre-tax adjusted
earnings, an improvement from 64.76%
- Completed two acquisitions and a convertible preferred
stock issuance
- Debt defeasance of approximately one-third of the
secured borrowings owed to securitization investors
- Debt defeasance costs in the first quarter of
approximately $848,000 were effectively offset by $816,000 of net
gains on available for sale securities
The Company's total assets of $16.2 billion at March 31, 2012
increased $2.1 billion from March 31, 2011. Total deposits as of
March 31, 2012 were $12.7 billion, an increase of $1.8 billion from
March 31, 2011. Noninterest bearing deposits increased by $622
million or 49% since March 31, 2011, while NOW, wealth management,
money market and savings deposits increased $1.2 billion or 24%
during the same time period. Total time certificates of deposit
remained essentially unchanged at March 31, 2012 compared to March
31, 2011. Total loans, including loans held for sale but excluding
covered loans, were $11.1 billion as of March 31, 2012, an increase
of $1.4 billion over March 31, 2011.
Edward J. Wehmer, President and Chief Executive Officer,
commented, "Our reported first quarter net income of $23.2 million
represents a 21% increase over the $19.2 million of net income
reported in the fourth quarter of 2011 and a 42% increase over the
$16.4 million of net income reported in the first quarter of 2011.
The first quarter of 2012 was highlighted by continued solid loan
growth, favorable shifting in the mix of the deposit funding base,
improvement in net interest margin, credit quality and expense
management. Other highlights included a successful convertible
preferred stock issuance, franchise expansion and a favorable
environment for both wealth management and mortgage banking
revenue."
Mr. Wehmer continued, "Total loans outstanding at March 31,
2012, including loans held for sale but excluding covered loans,
increased $226 million from December 31, 2011. This growth was
primarily comprised of $118 million of commercial and commercial
real-estate and $100 million of commercial premium finance
receivables. Loan growth funding was supported by continued growth
in the deposit base, as total deposits increased $359 million since
December 31, 2011. Our mix of deposits continued to improve as
certificates of deposit at March 31, 2012 make up only 38% of total
deposits, down from 40% at December 31, 2011 and 44% at March 31,
2011. Additionally, non-interest bearing demand deposits now
comprise 15% of total deposits, up from 14% at December 31, 2011
and 12% at March 31, 2011."
Mr. Wehmer further commented, "Net interest income increased in
the first quarter by $1 million over the fourth quarter of 2011 and
$16 million over the first quarter of 2011. The Company's net
interest margin improved to 3.55% for the first quarter of 2012,
compared to 3.45% in the previous quarter and 3.48% in the first
quarter of 2011. The growth in net interest income in the first
quarter of 2012 contributed to an improvement in pre-tax adjusted
earnings, one of our principal internal measurements of
profitability. Also contributing to the improvement in pre-tax
adjusted earnings were expense management and a solid quarter for
both wealth management and mortgage banking revenue. Excluding the
seasonal employment tax expense increase, costs related to other
real estate owned, the collection of covered loans and debt
defeasance, total non-interest expense decreased by $3.9 million or
3.5% from the fourth quarter of 2011. Wealth management revenue
benefited from improved market conditions throughout the first
quarter while our mortgage banking division continued to experience
heavy demand as mortgage interest rates remained low."
Commenting on credit quality, Mr. Wehmer noted, "The Company's
credit quality metrics improved during the quarter as
non-performing loans as a percent of total loans decreased to
1.06%, down from 1.14% at December 31, 2011 and 1.63% at March 31,
2011. Total non-performing loans decreased to $114 million at March
31, 2012, down from $120 million at December 31, 2011 and down from
$155 million at March 31, 2011. Non-performing loan inflows during
the first quarter of 2012 declined to $18 million, the lowest
amount in the past nine quarters and down from $25 million in the
fourth quarter of 2011 and $56 million in the first quarter of
2011. Total allowance for loan losses as a percentage of
non-performing loans rose to 98% at March 31, 2012, up from 92% at
December 31, 2011 and 74% at March 31, 2011, the highest level
since September 30, 2007. Total non-performing assets, which
includes other real estate owned, declined to $190 million, down
from $207 million at December 31, 2011 and $241 million at March
31, 2011. During the first quarter of 2012, excluding the provision
for covered loan losses, the Company recorded a provision for loan
losses of $15 million, net charge-offs of $14 million and other
real-estate owned operating charges of $7 million."
Turning to franchise expansion, Mr. Wehmer noted, "During the
first quarter of 2012 we completed and announced four separate
transactions that we believe will have a positive impact on our
franchise. We announced plans to expand our premium finance
business into the Canadian marketplace by entering into an
agreement to acquire Macquarie Premium Funding Inc. We expect this
transaction to close in the second quarter of 2012 and add
approximately $230 million of outstanding receivables to the
Company's balance sheet. We completed our seventh FDIC-assisted
transaction in February, acquiring the banking operations of
Charter National Bank and Trust, adding two new locations. As part
of two separate agreements with Suburban Bank and Trust, in late
March, we completed the acquisition of their trust business, and in
early April, completed the acquisition of their Orland Park,
Illinois banking location. These two transactions added $160
million in assets under administration, additional land trust
accounts and approximately $52 million in deposits and $3 million
in performing loans. We also filed an application with Illinois
banking regulators to open a retail banking office at 70 W. Madison
St. in downtown Chicago. If approved, this location would be our
first-ever downtown Chicago retail branch."
In closing, Mr. Wehmer added, "We are pleased with the results
of the first quarter and believe we are well positioned to continue
the growth in earnings and the growth in the franchise value.
Strong earning asset growth at the end of the first quarter should
bode well for higher average earning assets and net interest income
in the second quarter of the year. Additionally, our loan pipelines
remain strong and we are optimistic about our ability to execute on
closing a substantial portion of the existing pipeline. We also
expect to close on the acquisition of the previously announced
pending acquisition of the Canadian insurance premium finance
company in the second quarter which should further boost our
earning assets and net income potential. We will continue to be
disciplined in our approach to growth but we believe we are back to
an asset driven mode of operation which should allow us to be more
aggressive in growing deposits in our markets and increasing the
franchise value of our Company."
The graphs below depict changes in the level of non-performing
loans, excluding covered loans ("NPLs"), over the last five
quarters. The following metrics, for the last five quarters, are
diagrammed below: total non-performing loans, non-performing loans
as a percent of total loans, non-performing loan inflows and
allowance for loan losses ("ALL") as a percent of total
non-performing loans.
Graphs accompanying this release are available at
http://media.globenewswire.com/cache/11955/file/13354.pdf
The graph below displays the trend of period-end and quarterly
average balances of total earning assets and trade date securities
receivables. During the quarter ended March 31, 2012,
average total earning assets and trade date securities receivables
were lower than period-end balances as the Company experienced most
of the increase in the period-end balance near the end of the
quarter. Average earning assets and trade date securities
receivables in the second quarter of 2012 are expected to be
positively impacted based on the higher beginning balances at the
start of the quarter.
Total Earning Assets and
Trade Date Securities Receivable (Dollars in billions)
Graphs accompanying this release are available
at http://media.globenewswire.com/cache/11955/file/13355.pdf
Wintrust's key operating measures and growth rates for the first
quarter of 2012, as compared to the sequential and linked quarters
are shown in the table below:
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% or (4) |
% or |
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basis point (bp) |
basis point (bp) |
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change |
change |
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Three Months
Ended |
from |
from |
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March 31, |
December 31, |
March 31, |
4th Quarter |
1st Quarter |
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2012 |
2011 |
2011 |
2011 |
2011 |
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| Net income |
$ 23,210 |
$ 19,221 |
$ 16,402 |
21% |
42% |
| Net income per common share –
diluted |
$ 0.50 |
$ 0.41 |
$ 0.36 |
22% |
39% |
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| Pre-tax adjusted earnings (2) |
$ 63,688 |
$ 59,362 |
$ 51,032 |
7% |
25% |
| Net revenue (1) |
$ 172,918 |
$ 169,559 |
$ 150,501 |
2% |
15% |
| Net interest income |
$ 125,895 |
$ 124,647 |
$ 109,614 |
1% |
15% |
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| Net interest margin (2) |
3.55% |
3.45% |
3.48% |
10 bp |
7 bp |
| Net overhead ratio (2) (3) |
1.80% |
1.83% |
1.66% |
(3) bp |
14 bp |
| Net overhead ratio, based on pre-tax adjusted
earnings (2) (3) |
1.58% |
1.62% |
1.69% |
(4) bp |
(11) bp |
| Return on average assets |
0.59% |
0.48% |
0.47% |
11 bp |
12 bp |
| Return on average common equity |
5.90% |
4.87% |
4.49% |
103 bp |
141 bp |
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| At end of period |
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| Total assets |
$ 16,172,018 |
$ 15,893,808 |
$ 14,094,294 |
7% |
15% |
| Total loans, excluding loans held-for-sale,
excluding covered loans |
$ 10,717,384 |
$ 10,521,377 |
$ 9,561,802 |
7% |
12% |
| Total loans, including loans held-for-sale,
excluding covered loans |
$ 11,067,712 |
$ 10,841,901 |
$ 9,656,288 |
8% |
15% |
| Total deposits |
$ 12,665,853 |
$ 12,307,267 |
$ 10,915,169 |
12% |
16% |
| Total shareholders' equity |
$ 1,687,921 |
$ 1,543,533 |
$ 1,453,253 |
38% |
16% |
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| (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" under the
"Investor Relations" heading, and then choosing "Supplemental
Financial Info."
Items Impacting Comparative Financial Results:
Acquisitions and Capital
Acquisitions – Completed Acquisitions
On March 30, 2012, the Company's wholly-owned subsidiary, The
Chicago Trust Company, N.A. ("CTC"), completed its previously
announced acquisition of the trust operations of Suburban Bank
& Trust Company ("Suburban"). Through this transaction, CTC
acquired trust accounts having assets under administration of
approximately $160 million, in addition to land trust accounts and
various other assets. The Company recorded goodwill of $1.8 million
on the acquisition.
On February 10, 2012, the Company announced that its
wholly-owned subsidiary bank, Barrington Bank and Trust Company,
N.A. ("Barrington"), acquired certain assets and liabilities and
the banking operations of Charter National Bank and Trust ("Charter
National") in an FDIC-assisted transaction. Charter National
operated two locations: one in Hoffman Estates and one in Hanover
Park.
On September 30, 2011, the Company completed its acquisition of
Elgin State Bancorp, Inc. ("ESBI"). ESBI was the parent company of
Elgin State Bank, which operated three banking locations in Elgin,
Illinois. As part of the transaction, Elgin State Bank merged into
the Company's wholly-owned subsidiary bank, St. Charles Bank &
Trust Company ("St. Charles"), and the three acquired banking
locations are operating as branches of St. Charles under the brand
name Elgin State Bank. Elgin State Bank had approximately $262
million in assets and $240 million in deposits as of the
acquisition date, prior to purchase accounting adjustments. The
Company recorded goodwill of approximately $5.0 million on the
acquisition.
On July 8, 2011, the Company announced that its wholly-owned
subsidiary bank, Northbrook Bank & Trust Company
("Northbrook"), acquired certain assets and liabilities and the
banking operations of First Chicago Bank & Trust ("First
Chicago") in an FDIC-assisted transaction. First Chicago operated
seven locations in Illinois: three in Chicago and one each in
Bloomingdale, Itasca, Norridge and Park Ridge.
On July 1, 2011, the Company completed its acquisition of Great
Lakes Advisors, Inc. ("Great Lakes Advisors"), a Chicago-based
investment manager with approximately $2.4 billion in assets under
management. The Company recorded goodwill of $15.7 million on the
acquisition. Great Lakes Advisors merged with Wintrust's existing
asset management business, Wintrust Capital Management, LLC and
operates as "Great Lakes Advisors, LLC, a Wintrust Wealth
Management Company".
On April 13, 2011, the Company announced the acquisition of
certain assets and the assumption of certain liabilities of the
mortgage banking business of River City Mortgage, LLC ("River
City") of Bloomington, Minnesota. With offices in Minnesota,
Nebraska and North Dakota, River City originated nearly $500
million in mortgage loans in 2010.
On March 25, 2011, the Company announced that its wholly-owned
subsidiary bank, Advantage National Bank Group ("Advantage")
acquired certain assets and liabilities and the banking operations
of The Bank of Commerce ("TBOC") in an FDIC-assisted transaction.
TBOC operated one location in Wood Dale, Illinois. Advantage
subsequently changed its name to Schaumburg Bank and Trust Company,
N.A. ("Schaumburg").
On February 4, 2011, the Company announced that its wholly-owned
subsidiary bank, Northbrook, acquired certain assets and
liabilities and the banking operations of Community First
Bank-Chicago ("CFBC") in an FDIC-assisted transaction. CFBC
operated one location in Chicago, Illinois.
On February 3, 2011, the Company announced the acquisition of
certain assets and the assumption of certain liabilities of the
mortgage banking business of Woodfield Planning Corporation
("Woodfield") of Rolling Meadows, Illinois. With offices in Rolling
Meadows, Illinois and Crystal Lake, Illinois, Woodfield originated
approximately $180 million in mortgage loans in 2010.
Summary of FDIC-assisted Transactions
- Barrington assumed approximately $89 million of the outstanding
deposits and approximately $94 million of assets of Charter
National on February 10, 2012, prior to purchase accounting
adjustments. A bargain purchase gain of $840,000 was recognized on
this transaction.
- Northbrook assumed approximately $887 million of the
outstanding deposits and approximately $959 million of assets of
First Chicago on July 8, 2011, prior to purchase accounting
adjustments. A bargain purchase gain of $27.4 million was
recognized on this transaction.
- Schaumburg assumed approximately $161 million of the
outstanding deposits and approximately $163 million of assets of
TBOC on March 25, 2011, prior to purchase accounting adjustments. A
bargain purchase gain of $8.6 million was recognized on this
transaction.
- Northbrook assumed approximately $50 million of the outstanding
deposits and approximately $51 million of assets of CFBC on
February 4, 2011, prior to purchase accounting adjustments. A
bargain purchase gain of $2.0 million was recognized on this
transaction.
Loans comprise the majority of the assets acquired in the
FDIC-assisted transactions and are subject to loss sharing
agreements with the FDIC where the FDIC has agreed to reimburse the
Company for 80% of losses incurred on the purchased loans.
Additionally, the loss share agreements with the FDIC require the
Company to reimburse the FDIC in the event that actual losses on
covered assets are lower than the original loss estimates agreed
upon with the FDIC with respect to such assets in the loss share
agreements. We refer to the loans subject to these loss-sharing
agreements as "covered loans." We use the term "covered assets" to
refer to the total of covered loans, covered OREO and certain other
covered assets. The agreements with the FDIC require that the
Company follow certain servicing procedures or risk losing FDIC
reimbursement of losses related to covered assets.
Acquisitions – Announced Acquisitions
On February 14, 2012, the Company announced plans to expand its
premium finance business into the Canadian marketplace by entering
into an agreement, through its wholly-owned subsidiary Lake Forest
Bank and Trust Company, to purchase Macquarie Premium Funding Inc.,
the Canadian insurance premium funding unit of Macquarie Group. The
business to be acquired had approximately $230 million of premium
finance receivables outstanding as of December 31, 2011. The
transaction is expected to be completed in the second quarter of
2012, subject to regulatory approval and certain closing
conditions.
On January 13, 2012, the Company's wholly-owned subsidiary bank,
Old Plank Trail Community Bank, N.A. ("Old Plank Trail Bank"),
entered into a definitive agreement to acquire a branch of Suburban
that is located in Orland Park, Illinois. Through this transaction,
subject to final adjustments, Old Plank Trail Bank acquired
approximately $52 million of deposits, approximately $3 million of
performing loans, the property, bank facility and various other
assets on April 13, 2012.
Stock Offerings
On March 14, 2012, the Company announced the pricing of 110,000
shares, or $110,000,000 aggregate liquidation preference, of
Non-Cumulative Perpetual Convertible Preferred Stock, Series C
("Preferred Stock"). On March 15, 2012, the Company's underwriters
exercised their option to purchase 16,500, or $16,500,000 aggregate
liquidation preference, of Preferred Stock. After giving effect to
the exercise of the overallotment option, the underwriters
purchased an aggregate of 126,500 shares or $126,500,000 aggregate
liquidation preference, of Preferred Stock in the offering.
Wintrust intends to use the net proceeds for general corporate
purposes, which may include, without limitation, investments at the
holding company level, providing capital to support our growth,
acquisitions or other business combinations, including
FDIC-assisted acquisitions, and reducing or refinancing existing
debt.
Dividends will be payable on the Preferred Stock when, as, and
if, declared by Wintrust's Board of Directors on a non-cumulative
basis quarterly in arrears on January 15, April 15, July 15 and
October 15 of each year, beginning on April 15, 2012 at a rate of
5.00% per year on the liquidation preference of $1,000 per
share.
The holders of the Preferred Stock will have the right at any
time to convert each share of Preferred Stock into 24.3132 shares
of the Wintrust common stock, which represents an initial
conversion price of $41.13 per share of Wintrust common stock, plus
cash in lieu of fractional shares. The initial conversion price
represents a 17.5% conversion premium to the volume-weighted
average price of Wintrust common stock on March 13, 2012 of
approximately $35.00 per share. The conversion rate, and thus the
conversion price, will be subject to adjustment under certain
circumstances. On or after April 15, 2017, Wintrust will have the
right under certain circumstances to cause the Preferred Stock to
be converted into shares of Wintrust common stock, plus cash in
lieu of fractional shares.
Capital Ratios
As of March 31, 2012, the Company's estimated capital ratios
were 14.2% for total risk-based capital, 13.0% for tier 1
risk-based capital and 10.5% for leverage, above the well
capitalized guidelines. Additionally, the Company's tangible common
equity ratio was 7.5% at March 31, 2012. Assuming conversion of
preferred stock, the tangible common equity ratio was 8.6% at March
31, 2012.
Financial Performance Overview – First Quarter
2012
For the first quarter of 2012, net interest income totaled
$125.9 million, an increase of $1.2 million as compared to the
fourth quarter of 2011 and $16.3 million as compared to the first
quarter of 2011. The increases in net interest income on both a
sequential and linked quarter basis are the result of:
- The change in deposit mix, growth of higher yielding loans and
a decrease in liquidity management assets, positively impacted net
interest income in the first quarter of 2012 as compared to the
first quarter of 2011. During the first quarter of 2012, the
Company repurchased $172 million of the $600 million outstanding
Class A notes issued in the third quarter of 2009 as part of its
loan securitization. This defeasance of debt effectively reduced
the outstanding "secured borrowings – owed to securitization
investors" shown on the Company's balance sheet by $85.1 million,
based on average balance, in the first quarter of 2012.
Additionally, growth in average loans was due to a $95.7 million
increase in commercial and commercial real estate loans and a $94.7
million increase in life insurance and commercial premium finance
loans.
- Average earning assets for the first quarter of 2012 increased
by $1.5 billion compared to the first quarter of 2011. Average
earning asset growth over the past 12 months was primarily a result
of the $998.7 million increase in average loans, $340.7 million of
average covered loan growth from the FDIC-assisted bank
acquisitions and a $127.6 million increase in average liquidity
management and other earning assets. The $998.7 million increase in
average loans was, in turn, comprised of a $430.9 million increase
in commercial loans, a $179.7 million increase in commercial real
estate loans, a $147.4 million increase in life insurance premium
finance loans and a $145.1 million increase in commercial insurance
premium finance loans, an increase in mortgage warehouse lending of
$62.1 million and an increase in mortgages held for sale of $48.3
million, partially offset by a net decrease in all other loans of
$14.8 million. The decrease in all other loans was primarily
related to home equity loans. The shift in growth over the past 12
months toward commercial and industrial loans is a reflection of
the commercial initiatives the Company has implemented. The average
earning asset growth of $1.5 billion over the past 12 months was
primarily funded by a $939.2 million increase in the average
balances of interest-bearing deposits, an increase in the average
balance of net free funds of $334.1 million and an increase in
wholesale funding of $193.7 million.
The net interest margin for the first quarter of 2012 was 3.55%
compared to 3.45% in the fourth quarter of 2011 and 3.48% in the
first quarter of 2011. The changes in net interest margin on
both a linked and sequential quarter basis are the result of:
- The ten basis point increase in net interest margin in the
first quarter of 2012 compared to the fourth quarter of 2011
resulted from positive re-pricing of retail interest-bearing
deposits along with a more favorable deposit mix, higher yields on
our premium finance loans and the positive impact from the debt
defeasance.
- The seven basis point increase in the first quarter of 2012
compared to the first quarter of 2011 was primarily attributable to
a 33 basis point decline in the cost of interest-bearing deposits
and an 80 basis point decline in the cost of wholesale borrowings
over the last 12 months. Offsetting this was the negative impact of
both competitive and economic pricing pressures on the commercial
and industrial and commercial premium finance portfolios during the
past 12 months and a decrease in accretable discount recognized as
interest income on the purchased life insurance premium portfolio
as prepayments declined, causing the yield on total loans to
decline by 57 basis points.
Non-interest income totaled $47.0 million in the first quarter
of 2012, increasing $2.1 million, or 5%, compared to the fourth
quarter of 2011 and increasing $6.1 million, or 15%, compared to
the first quarter of 2011. The increase in the first quarter of
2012 compared to the fourth quarter of 2011 is primarily
attributable to higher wealth management revenues, bargain purchase
gains recorded during the first quarter of 2012 as a result of the
Charter National FDIC-assisted transaction and higher swap fee
revenue, partially offset by lower fees from covered call options.
The increase in the first quarter of 2012 compared to the first
quarter of 2011 was primarily attributable to higher mortgage
banking revenues, wealth management revenues and swap fee revenues,
partially offset by a decrease in bargain purchase gains. Mortgage
banking revenue increased $510,000 when compared to the fourth
quarter of 2011 and increased $6.9 million when compared to the
first quarter of 2011. The increase in the current quarter as
compared to the first quarter of 2011 resulted primarily from an
increase in gains on sales of loans, which was driven by higher
origination volumes in the current quarter due to a favorable
mortgage interest rate environment. Loans sold to the secondary
market were $714.7 million in the first quarter of 2012 compared to
$883.0 million in the fourth quarter of 2011 and $562.1 million in
the first quarter of 2011 (see "Non-Interest Income" section later
in this document for further detail).
Non-interest expense totaled $117.8 million in the first quarter
of 2012, decreasing $1.0 million compared to the fourth quarter of
2011 and increasing $19.6 million, or 20%, compared to the first
quarter of 2011. The increase compared to the first quarter of 2011
was primarily attributable to a $12.9 million increase in salaries
and employee benefits. Salaries and employee benefits expense
increased primarily as a result of a $4.8 million increase in
salaries caused by the addition of employees from the various
acquisitions and larger staffing as the Company grows, a $6.1
million increase in bonus and commissions primarily attributable to
the increase in variable pay based revenue and the Company's
long-term incentive program approved by the Compensation Committee
of the Board of Directors in August 2011 and a $2.0 million
increase from employee benefits (primarily health plan and payroll
taxes related). In addition, the Company incurred debt
defeasance costs of approximately $848,000 in the first quarter of
2012.
Financial Performance Overview – Credit
Quality
Non-performing loans, excluding covered loans, totaled $113.6
million, or 1.06% of total loans, at March 31, 2012, compared to
$120.1 million, or 1.14% of total loans, at December 31, 2011 and
$155.4 million, or 1.63% of total loans, at March 31, 2011. OREO,
excluding covered OREO, of $76.2 million at March 31, 2012,
decreased $10.3 million compared to $86.5 million at December 31,
2011 and decreased $9.1 million compared to $85.3 million at March
31, 2011.
The provision for credit losses, excluding the provision for
covered loan losses, totaled $15.2 million for the first quarter of
2012 compared to $16.6 million for the fourth quarter of 2011 and
$24.4 million in the first quarter of 2011. Net charge-offs as a
percentage of loans, excluding covered loans, for the first quarter
of 2012 totaled 53 basis points on an annualized basis compared to
93 basis points on an annualized basis in the fourth quarter of
2011 and 104 basis points on an annualized basis in the first
quarter of 2011.
Excluding the allowance for covered loan losses, the allowance
for credit losses at March 31, 2012 totaled $124.1 million, or
1.16% of total loans, compared to $123.6 million, or 1.17% of total
loans, at December 31, 2011 and $117.1 million, or 1.22% of total
loans, at March 31, 2011.
The lower level of provision for credit losses, reflects the
improvements in credit quality metrics for the first quarter of
2012. The graphs on pages four and five highlight the level of
total non-performing loans, the improvement seen in the reduced
levels of inflows to non-performing loans and the improvement in
the allowance for loan loss coverage of non-performing loans.
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| WINTRUST FINANCIAL
CORPORATION |
Three Months
Ended |
| Selected Financial
Highlights |
March
31, |
| |
2012 |
2011 |
| Selected Financial Condition Data (at
end of period): |
|
|
| Total assets |
$ 16,172,018 |
$ 14,094,294 |
| Total loans, excluding covered loans |
10,717,384 |
9,561,802 |
| Total deposits |
12,665,853 |
10,915,169 |
| Junior subordinated debentures |
249,493 |
249,493 |
| Total shareholders' equity |
1,687,921 |
1,453,253 |
| Selected Statements of Income
Data: |
|
|
| Net interest income |
$ 125,895 |
$ 109,614 |
| Net revenue (1) |
172,918 |
150,501 |
| Pre-tax adjusted earnings (2) |
63,688 |
51,032 |
| Net income |
23,210 |
16,402 |
| Net income per common share – Basic |
$ 0.61 |
$ 0.44 |
| Net income per common share –
Diluted |
$ 0.50 |
$ 0.36 |
| Selected Financial Ratios and Other
Data: |
|
|
| Performance Ratios: |
|
|
| Net interest margin (2) |
3.55% |
3.48% |
| Non-interest income to average assets |
1.19% |
1.18% |
| Non-interest expense to average
assets |
2.99% |
2.84% |
| Net overhead ratio (2) (3) |
1.80% |
1.66% |
| Net overhead ratio, based on pre-tax adjusted
earnings (2) (3) |
1.58% |
1.69% |
| Efficiency ratio (2) (4) |
68.24% |
65.05% |
| Efficiency ratio, based on pre-tax adjusted
earnings (2) (4) |
62.31% |
63.56% |
| Return on average assets |
0.59% |
0.47% |
| Return on average common equity |
5.90% |
4.49% |
| |
|
|
| Average total assets |
$ 15,835,350 |
$ 14,018,525 |
| Average total shareholders' equity |
1,564,662 |
1,437,869 |
| Average loans to average deposits ratio
(excluding covered loans) |
88.1% |
91.2% |
| Average loans to average deposits ratio
(including covered loans) |
93.5% |
94.2% |
| Common Share Data at end of
period: |
|
|
| Market price per common share |
$ 35.79 |
$ 36.75 |
| Book value per common share (2) |
$ 35.25 |
$ 33.70 |
| Tangible common book value per share (2) |
$ 27.57 |
$ 26.65 |
| Common shares outstanding |
36,289,380 |
34,947,251 |
| |
|
|
| Other Data at end of period:(8) |
|
|
| Leverage Ratio (5) |
10.5% |
10.3% |
| Tier 1 capital to risk-weighted assets
(5) |
13.0% |
12.7% |
| Total capital to risk-weighted assets
(5) |
14.2% |
14.1% |
| Tangible common equity ratio (TCE)
(2)(7) |
7.5% |
8.0% |
| Tangible common equity ratio, assuming full
conversion of preferred stock (2) (7) |
8.6% |
8.4% |
| Allowance for credit losses (6) |
$ 124,101 |
$ 117,067 |
| Non-performing loans |
$ 113,621 |
$ 155,387 |
| Allowance for credit losses to total loans
(6) |
1.16% |
1.22% |
| Non-performing loans to total loans |
1.06% |
1.63% |
| Number of: |
|
|
| Bank subsidiaries |
15 |
15 |
| Non-bank subsidiaries |
7 |
8 |
| Banking offices |
98 |
88 |
| (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, but excludes
the allowance for covered loan losses. |
| (7) Total shareholders' equity
minus preferred stock and total intangible assets divided by total
assets minus total intangible assets. |
| (8) Asset quality ratios exclude
covered loans. |
| |
| |
| WINTRUST FINANCIAL
CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS
OF CONDITION |
| |
|
|
|
| |
(Unaudited) |
|
(Unaudited) |
| |
March 31, |
December 31, |
March 31, |
| (In thousands) |
2012 |
2011 |
2011 |
| Assets |
|
|
|
| Cash and due from banks |
$ 146,014 |
$ 148,012 |
$ 140,919 |
| Federal funds sold and securities purchased
under resale agreements |
14,588 |
21,692 |
33,575 |
| Interest-bearing deposits with other
banks |
900,755 |
749,287 |
946,193 |
| Available-for-sale securities, at fair
value |
1,869,344 |
1,291,797 |
1,710,321 |
| Trading account securities |
1,140 |
2,490 |
2,229 |
| Federal Home Loan Bank and Federal Reserve
Bank stock, at cost |
88,216 |
100,434 |
85,144 |
| Brokerage customer receivables |
31,085 |
27,925 |
25,361 |
| Mortgage loans held-for-sale, at fair
value |
339,600 |
306,838 |
92,151 |
| Mortgage loans held-for-sale, at lower of
cost or market |
10,728 |
13,686 |
2,335 |
| Loans, net of unearned income, excluding
covered loans |
10,717,384 |
10,521,377 |
9,561,802 |
| Covered loans |
691,220 |
651,368 |
431,299 |
| Total loans |
11,408,604 |
11,172,745 |
9,993,101 |
| Less: Allowance for loan
losses |
111,023 |
110,381 |
115,049 |
| Less: Allowance for
covered loan losses |
17,735 |
12,977 |
4,844 |
| Net loans |
11,279,846 |
11,049,387 |
9,873,208 |
| Premises and equipment, net |
434,700 |
431,512 |
369,785 |
| FDIC indemnification asset |
263,212 |
344,251 |
124,785 |
| Accrued interest receivable and other
assets |
463,394 |
444,912 |
394,292 |
| Trade date securities receivable |
-- |
634,047 |
-- |
| Goodwill |
307,295 |
305,468 |
281,940 |
| Other intangible assets |
22,101 |
22,070 |
12,056 |
| Total
assets |
$ 16,172,018 |
$ 15,893,808 |
$ 14,094,294 |
| |
|
|
|
| Liabilities and Shareholders'
Equity |
|
|
|
| Deposits: |
|
|
|
| Non-interest bearing |
$ 1,901,753 |
$ 1,785,433 |
1,279,256 |
| Interest bearing |
10,764,100 |
10,521,834 |
9,635,913 |
| Total deposits |
12,665,853 |
12,307,267 |
10,915,169 |
| Notes payable |
52,639 |
52,822 |
1,000 |
| Federal Home Loan Bank
advances |
466,391 |
474,481 |
423,500 |
| Other borrowings |
411,037 |
443,753 |
250,032 |
| Secured borrowings - owed to
securitization investors |
428,000 |
600,000 |
600,000 |
| Subordinated notes |
35,000 |
35,000 |
50,000 |
| Junior subordinated
debentures |
249,493 |
249,493 |
249,493 |
| Trade date securities
payable |
-- |
47 |
10,000 |
| Accrued interest payable
and other liabilities |
175,684 |
187,412 |
141,847 |
| Total liabilities |
14,484,097 |
14,350,275 |
12,641,041 |
| |
|
|
|
| Shareholders' Equity: |
|
|
|
| Preferred stock |
176,302 |
49,768 |
49,672 |
| Common stock |
36,522 |
35,982 |
34,947 |
| Surplus |
1,008,326 |
1,001,316 |
967,587 |
| Treasury stock |
(6,559) |
(112) |
(74) |
| Retained earnings |
478,160 |
459,457 |
404,580 |
| Accumulated other
comprehensive loss |
(4,830) |
(2,878) |
(3,459) |
| Total shareholders'
equity |
1,687,921 |
1,543,533 |
1,453,253 |
| Total liabilities
and shareholders' equity |
$ 16,172,018 |
$ 15,893,808 |
$ 14,094,294 |
| |
| |
| WINTRUST FINANCIAL
CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS
OF INCOME (UNAUDITED) |
| |
|
|
| |
Three Months Ended |
| |
March 31, |
| (In thousands, except per share
data) |
2012 |
2011 |
| Interest income |
|
|
| Interest and fees on loans |
$ 143,555 |
$ 136,543 |
| Interest bearing deposits with
banks |
248 |
936 |
| Federal funds sold and
securities purchased under resale agreements |
12 |
32 |
| Securities |
11,847 |
9,540 |
| Trading account securities |
9 |
13 |
| Federal Home Loan Bank and
Federal Reserve Bank stock |
604 |
550 |
| Brokerage customer
receivables |
211 |
166 |
| Total interest
income |
156,486 |
147,780 |
| Interest expense |
|
|
| Interest on deposits |
18,030 |
23,956 |
| Interest on Federal Home Loan
Bank advances |
3,584 |
3,958 |
| Interest on notes payable and
other borrowings |
3,102 |
2,630 |
| Interest on secured borrowings
- owed to securitization investors |
2,549 |
3,040 |
| Interest on subordinated
notes |
169 |
212 |
| Interest on junior
subordinated debentures |
3,157 |
4,370 |
| Total interest
expense |
30,591 |
38,166 |
| Net interest income |
125,895 |
109,614 |
| Provision for credit losses |
17,400 |
25,344 |
| Net interest income after provision for
credit losses |
108,495 |
84,270 |
| Non-interest income |
|
|
| Wealth management |
12,401 |
10,236 |
| Mortgage banking |
18,534 |
11,631 |
| Service charges on deposit
accounts |
4,208 |
3,311 |
| Gains on available-for-sale
securities, net |
816 |
106 |
| Gain on bargain purchases |
840 |
9,838 |
| Trading gains (losses) |
146 |
(440) |
| Other |
10,078 |
6,205 |
| Total non-interest
income |
47,023 |
40,887 |
| Non-interest expense |
|
|
| Salaries and employee
benefits |
69,030 |
56,099 |
| Equipment |
5,400 |
4,264 |
| Occupancy, net |
8,062 |
6,505 |
| Data processing |
3,618 |
3,523 |
| Advertising and marketing |
2,006 |
1,614 |
| Professional fees |
3,604 |
3,546 |
| Amortization of other
intangible assets |
1,049 |
689 |
| FDIC insurance |
3,357 |
4,518 |
| OREO expenses, net |
7,178 |
5,808 |
| Other |
14,455 |
11,543 |
| Total non-interest
expense |
117,759 |
98,109 |
| Income before taxes |
37,759 |
27,048 |
| Income tax expense |
14,549 |
10,646 |
| Net income |
$ 23,210 |
$ 16,402 |
| Preferred stock dividends and discount
accretion |
$ 1,246 |
$ 1,031 |
| Net income applicable to common
shares |
$ 21,964 |
$ 15,371 |
| Net income per common share -
Basic |
$ 0.61 |
$ 0.44 |
| Net income per common share -
Diluted |
$ 0.50 |
$ 0.36 |
| Cash dividends declared per
common share |
$ 0.09 |
$ 0.09 |
| Weighted average common shares
outstanding |
36,207 |
34,928 |
| Dilutive potential common shares |
7,530 |
7,794 |
| Average common shares and dilutive
common shares |
43,737 |
42,722 |
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), the efficiency ratio,
tangible common equity ratio, tangible common book value per share
and pre-tax adjusted earnings. 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 assets and interest-bearing liabilities and of the
Company's operating efficiency. Other financial holding
companies may define or calculate these measures and ratios
differently.
Management reviews yields on certain asset categories and the
net interest margin of the Company and its banking subsidiaries on
a fully taxable-equivalent ("FTE") basis. In this non-GAAP
presentation, net interest income is adjusted to reflect tax-exempt
interest income on an equivalent before-tax basis. This
measure ensures comparability of net interest income arising from
both taxable and tax-exempt sources. Net interest income on a
FTE basis is also used in the calculation of the Company's
efficiency ratio. The efficiency ratio, which is calculated by
dividing non-interest expense by total taxable-equivalent net
revenue (less securities gains or losses), measures how much it
costs to produce one dollar of revenue. Securities gains or
losses are excluded from this calculation to better match revenue
from daily operations to operational expenses. Management
considers the tangible common equity ratio and tangible book value
per common share as useful measurements of the Company's equity.
Pre-tax adjusted earnings is a significant metric in assessing the
Company's operating performance. Pre-tax adjusted earnings
is calculated by adjusting income before taxes to exclude the
provision for credit losses and certain significant items.
The net overhead ratio and the efficiency ratio are primarily
reviewed by the Company based on pre-tax adjusted
earnings. The Company believes that these measures provide a
more meaningful view of the Company's operating efficiency and
expense management. The net overhead ratio, based on pre-tax
adjusted earnings, is calculated by netting total adjusted
non-interest expense and total adjusted non-interest income,
annualizing this amount, and dividing it by total average
assets. Adjusted non-interest expense is calculated by
subtracting OREO expenses, covered loan collection expense,
defeasance cost and seasonal payroll tax fluctuation. Adjusted
non-interest income is calculated by adding back the recourse
obligation on loans previously sold and subtracting gains on
investment partnerships, gain on bargain purchases, trading gains
and gains on available-for-sale securities.
The efficiency ratio, based on pre-tax adjusted earnings, is
calculated by dividing adjusted non-interest expense by adjusted
taxable-equivalent net revenue. Adjusted taxable-equivalent
net revenue is comprised of fully taxable equivalent net interest
income and adjusted non-interest income.
The following table presents a reconciliation of certain
non-GAAP performance measures and ratios used by the Company to
evaluate and measure the Company's performance to the most directly
comparable GAAP financial measures for the last 5 quarters:
|
|
|
|
|
|
|
| |
Three Months
Ended |
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
| (Dollars and shares in thousands) |
2012 |
2011 |
2011 |
2011 |
2011 |
| Calculation of Net Interest Margin
and Efficiency Ratio |
|
|
|
|
|
| (A) Interest Income
(GAAP) |
$ 156,486 |
$ 157,617 |
$ 154,951 |
$ 145,445 |
$ 147,780 |
| Taxable-equivalent
adjustment: |
|
|
|
|
|
| - Loans |
134 |
132 |
100 |
110 |
116 |
| - Liquidity management
assets |
329 |
320 |
313 |
296 |
295 |
| - Other earning assets |
3 |
2 |
6 |
2 |
3 |
| Interest Income - FTE |
$ 156,952 |
$ 158,071 |
$ 155,370 |
$ 145,853 |
$ 148,194 |
| (B) Interest Expense
(GAAP) |
30,591 |
32,970 |
36,541 |
36,739 |
38,166 |
| Net interest income - FTE |
$ 126,361 |
$ 125,101 |
$ 118,829 |
$ 109,114 |
$ 110,028 |
| (C) Net Interest Income (GAAP) (A
minus B) |
$ 125,895 |
$ 124,647 |
$ 118,410 |
$ 108,706 |
$ 109,614 |
| |
|
|
|
|
|
| (D) Net interest margin
(GAAP) |
3.54% |
3.44% |
3.36% |
3.38% |
3.46% |
| Net interest margin - FTE |
3.55% |
3.45% |
3.37% |
3.40% |
3.48% |
| |
|
|
|
|
|
| (E) Efficiency ratio
(GAAP) |
68.42% |
70.17% |
57.34% |
67.41% |
65.23% |
| Efficiency ratio -
FTE |
68.24% |
69.99% |
57.21% |
67.22% |
65.05% |
| Efficiency ratio -
Based on pre-tax adjusted earnings |
62.31% |
64.76% |
63.69% |
62.81% |
63.56% |
| |
|
|
|
|
|
| (F) Net Overhead Ratio
(GAAP) |
1.80% |
1.83% |
1.00% |
1.72% |
1.66% |
| Net Overhead ratio -
Based on pre-tax adjusted earnings |
1.58% |
1.62% |
1.56% |
1.59% |
1.69% |
| |
|
|
|
|
|
| Calculation of Tangible Common Equity
ratio (at period end) |
|
|
|
|
|
| Total shareholders' equity |
$ 1,687,921 |
$ 1,543,533 |
$ 1,528,187 |
$ 1,473,386 |
$ 1,453,253 |
| (G) Less: Preferred stock |
(176,302) |
(49,768) |
(49,736) |
(49,704) |
(49,672) |
| Less: Intangible assets |
(329,396) |
(327,538) |
(324,782) |
(294,833) |
(293,996) |
| (H) Total tangible common shareholders'
equity |
$ 1,182,223 |
$ 1,166,227 |
$ 1,153,669 |
$ 1,128,849 |
$ 1,109,585 |
| |
|
|
|
|
|
| Total assets |
$ 16,172,018 |
$ 15,893,808 |
$ 15,914,804 |
$ 14,615,897 |
$ 14,094,294 |
| Less: Intangible assets |
(329,396) |
(327,538) |
(324,782) |
(294,833) |
(293,996) |
| (I) Total tangible assets |
$ 15,842,622 |
$ 15,566,270 |
$ 15,590,022 |
$ 14,321,064 |
$ 13,800,298 |
| |
|
|
|
|
|
| Tangible common equity ratio
(H/I) |
7.5% |
7.5% |
7.4% |
7.9% |
8.0% |
| Tangible common equity ratio,
assuming full conversion of prefered stock
((H-G)/I) |
8.6% |
7.8% |
7.7% |
8.2% |
8.4% |
| |
|
|
|
|
|
| Calculation of Pre-Tax Adjusted
Earnings |
|
|
|
|
|
| Income before taxes |
$ 37,759 |
$ 31,974 |
$ 50,046 |
$ 18,965 |
$ 27,048 |
| Add: Provision for credit losses |
17,400 |
18,817 |
29,290 |
29,187 |
25,344 |
| Add: OREO expenses, net |
7,178 |
8,821 |
5,134 |
6,577 |
5,808 |
| Add: Recourse obligation on loans previously
sold |
36 |
986 |
266 |
(916) |
103 |
| Add: Covered loan collection expense |
1,399 |
944 |
336 |
806 |
745 |
| Add: Defeasance cost |
848 |
-- |
-- |
-- |
-- |
| Add: Seasonal payroll tax fluctuation |
2,265 |
(932) |
(781) |
(131) |
1,844 |
| Less: (Gain) loss from investment
partnerships |
(1,395) |
(723) |
1,439 |
240 |
(356) |
| Less: Gain on bargain purchases |
(840) |
-- |
(27,390) |
(746) |
(9,838) |
| Less: Trading (gains) losses |
(146) |
(216) |
(591) |
30 |
440 |
| Less: Gains on available-for-sale securities,
net |
(816) |
(309) |
(225) |
(1,152) |
(106) |
| Pre-tax adjusted
earnings |
$ 63,688 |
$ 59,362 |
$ 57,524 |
$ 52,860 |
$ 51,032 |
| |
|
|
|
|
|
| Calculation of book value per
share |
|
|
|
|
|
| Total shareholders' equity |
$ 1,687,921 |
$ 1,543,533 |
$ 1,528,187 |
$ 1,473,386 |
$ 1,453,253 |
| Less: Preferred stock |
(176,302) |
(49,768) |
(49,736) |
(49,704) |
(49,672) |
| (J) Total common equity |
$ 1,511,619 |
$ 1,493,765 |
$ 1,478,451 |
$ 1,423,682 |
$ 1,403,581 |
| |
|
|
|
|
|
| Actual common shares outstanding |
36,289 |
35,978 |
35,924 |
34,988 |
34,947 |
| Add: TEU conversion shares |
6,593 |
7,666 |
7,666 |
7,342 |
6,696 |
| (K) Common shares used for book value
calculation |
42,882 |
43,644 |
43,590 |
42,330 |
41,643 |
| |
|
|
|
|
|
| Book value per share
(J/K) |
$ 35.25 |
$ 34.23 |
$ 33.92 |
$ 33.63 |
$ 33.70 |
| Tangible common book value per share
(H/K) |
$ 27.57 |
$ 26.72 |
$ 26.47 |
$ 26.67 |
$ 26.65 |
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| LOANS |
|
|
|
|
|
| Loan Portfolio Mix and Growth Rates |
|
|
|
% Growth |
| |
|
|
|
From (1) |
From |
| |
March 31, |
December 31, |
March 31, |
December 31, |
March 31, |
| (Dollars in thousands) |
2012 |
2011 |
2011 |
2011 |
2011 |
| Balance: |
|
|
|
|
|
| Commercial |
$ 2,544,456 |
$ 2,498,313 |
$ 1,937,561 |
7% |
31% |
| Commercial real-estate |
3,585,760 |
3,514,261 |
3,356,562 |
8 |
7 |
| Home equity |
840,364 |
862,345 |
891,332 |
(10) |
(6) |
| Residential real-estate |
361,327 |
350,289 |
344,909 |
13 |
5 |
| Premium finance receivables -
commercial |
1,512,630 |
1,412,454 |
1,337,851 |
29 |
13 |
| Premium finance receivables -
life insurance |
1,693,763 |
1,695,225 |
1,539,521 |
-- |
10 |
| Indirect consumer (2) |
67,445 |
64,545 |
52,379 |
18 |
29 |
| Consumer and other |
111,639 |
123,945 |
101,687 |
(40) |
10 |
| Total loans, net of unearned
income, excluding covered loans |
$ 10,717,384 |
$ 10,521,377 |
$ 9,561,802 |
7% |
12% |
| Covered loans |
691,220 |
651,368 |
431,299 |
25 |
60 |
| Total loans, net of unearned
income |
$ 11,408,604 |
$ 11,172,745 |
$ 9,993,101 |
8% |
14% |
| |
|
|
|
|
|
| Mix: |
|
|
|
|
|
| Commercial |
22% |
22% |
19% |
|
|
| Commercial real-estate |
32 |
31 |
34 |
|
|
| Home equity |
7 |
8 |
9 |
|
|
| Residential real-estate |
3 |
3 |
4 |
|
|
| Premium finance receivables -
commercial |
13 |
13 |
13 |
|
|
| Premium finance receivables -
life insurance |
15 |
15 |
15 |
|
|
| Indirect consumer (2) |
1 |
1 |
1 |
|
|
| Consumer and other |
1 |
1 |
1 |
|
|
| Total loans, net of unearned
income, excluding covered loans |
94% |
94% |
96% |
|
|
| Covered loans |
6 |
6 |
4 |
|
|
| Total loans, net of unearned
income |
100% |
100% |
100% |
|
|
| |
|
|
|
|
|
| (1) Annualized |
|
|
|
|
|
| (2) Includes autos, boats,
snowmobiles and other indirect consumer loans. |
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
> 90 Days |
Allowance |
| As of March 31, 2012 |
|
% of |
|
Past Due |
For Loan |
| |
|
Total |
|
and Still |
Losses |
| (Dollars in thousands) |
Balance |
Balance |
Nonaccrual |
Accruing |
Allocation |
| Commercial: |
|
|
|
|
|
| Commercial and industrial |
$ 1,506,019 |
24.6% |
$ 17,392 |
$ -- |
$ 20,849 |
| Franchise |
169,277 |
2.8 |
1,792 |
-- |
1,876 |
| Mortgage warehouse lines of
credit |
136,438 |
2.2 |
-- |
-- |
1,146 |
| Community Advantage - homeowner
associations |
75,786 |
1.2 |
-- |
-- |
190 |
| Aircraft |
19,891 |
0.3 |
260 |
-- |
103 |
| Asset-based lending |
474,811 |
7.7 |
391 |
-- |
7,704 |
| Municipal |
76,885 |
1.3 |
-- |
-- |
1,031 |
| Leases |
77,671 |
1.3 |
-- |
-- |
306 |
| Other |
1,733 |
-- |
-- |
-- |
14 |
| Purchased non-covered
commercial loans (1) |
5,945 |
0.1 |
-- |
424 |
-- |
| Total
commercial |
$ 2,544,456 |
41.5% |
$ 19,835 |
$ 424 |
$ 33,219 |
| |
|
|
|
|
|
| Commercial Real-Estate: |
|
|
|
|
|
| Residential construction |
$ 56,111 |
0.9% |
$ 1,807 |
$ -- |
$ 1,744 |
| Commercial construction |
164,719 |
2.7 |
2,389 |
-- |
4,167 |
| Land |
184,042 |
3.0 |
25,306 |
-- |
10,606 |
| Office |
560,708 |
9.1 |
8,534 |
-- |
6,418 |
| Industrial |
590,903 |
9.6 |
1,864 |
-- |
5,475 |
| Retail |
528,077 |
8.6 |
7,323 |
73 |
4,561 |
| Multi-family |
324,938 |
5.3 |
3,708 |
-- |
8,400 |
| Mixed use and other |
1,123,940 |
18.4 |
11,773 |
-- |
12,581 |
| Purchased non-covered
commercial real-estate (1) |
52,322 |
0.9 |
-- |
2,959 |
-- |
| Total commercial
real-estate |
$ 3,585,760 |
58.5% |
$ 62,704 |
$ 3,032 |
$ 53,952 |
| Total commercial and
commercial real-estate |
$ 6,130,216 |
100.0% |
$ 82,539 |
$ 3,456 |
$ 87,171 |
| |
|
|
|
|
|
| Commercial real-estate - collateral location
by state: |
|
|
|
|
|
| Illinois |
$ 2,990,714 |
83.4% |
|
|
|
| Wisconsin |
331,901 |
9.3 |
|
|
|
| Total primary
markets |
$ 3,322,615 |
92.7% |
|
|
|
| Florida |
56,969 |
1.6 |
|
|
|
| Arizona |
39,329 |
1.1 |
|
|
|
| Indiana |
41,222 |
1.1 |
|
|
|
| Other (no individual state
greater than 0.5%) |
125,625 |
3.5 |
|
|
|
| Total |
$ 3,585,760 |
100.0% |
|
|
|
| (1) Purchased loans represent
loans acquired with evidence of credit quality deterioration since
origination, in accordance with ASC 310-30. Loan agings are
based upon contractually required payments. |
| |
|
|
|
|
|
| |
|
|
|
|
|
|
DEPOSITS |
|
|
|
|
|
| Deposit Portfolio Mix and Growth
Rates |
|
|
|
% Growth |
| |
|
|
|
From (1) |
From |
| |
March 31, |
December 31, |
March 31, |
December 31, |
March 31, |
| (Dollars in thousands) |
2012 |
2011 |
2011 |
2011 |
2011 |
| Balance: |
|
|
|
|
|
| Non-interest bearing |
$ 1,901,753 |
$ 1,785,433 |
$ 1,279,256 |
26% |
49% |
| NOW |
1,756,313 |
1,698,778 |
1,526,955 |
14 |
15 |
| Wealth Management deposits
(2) |
933,609 |
788,311 |
659,194 |
74 |
42 |
| Money Market |
2,306,726 |
2,263,253 |
1,844,416 |
8 |
25 |
| Savings |
943,066 |
888,592 |
749,681 |
25 |
26 |
| Time certificates of
deposit |
4,824,386 |
4,882,900 |
4,855,667 |
(5) |
(1) |
| Total deposits |
$ 12,665,853 |
$ 12,307,267 |
$ 10,915,169 |
12% |
16% |
| |
|
|
|
|
|
| Mix: |
|
|
|
|
|
| Non-interest bearing |
15% |
15% |
12% |
|
|
| NOW |
14 |
14 |
14 |
|
|
| Wealth Management deposits
(2) |
7 |
6 |
6 |
|
|
| Money Market |
18 |
18 |
17 |
|
|
| Savings |
8 |
7 |
7 |
|
|
| Time certificates of
deposit |
38 |
40 |
44 |
|
|
| Total deposits |
100% |
100% |
100% |
|
|
| |
|
|
|
|
|
| (1) Annualized |
|
|
|
|
|
| (2) Represents deposit balances
of the Company's subsidiary banks from brokerage customers of Wayne
Hummer Investments, trust and asset management customers of The
Chicago Trust Company and brokerage customers from unaffiliated
companies which have been placed into deposit accounts of the
Banks. |
| |
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Time Certificates of
Deposit |
|
|
|
|
|
|
| Maturity/Re-pricing
Analysis |
|
|
|
|
|
|
| As of March 31,
2012 |
CDARs & |
|
|
|
|
Weighted-Average |
| |
Brokered |
MaxSafe |
Variable Rate |
Other Fixed |
Total Time |
Rate of Maturing |
| |
Certificates |
Certificates |
Certificates |
Rate Certificates |
Certificates
of |
Time Certificates |
| (Dollars in thousands) |
of Deposit (1) |
of Deposit (1) |
of Deposit (2) |
of Deposit (1) |
Deposits |
of Deposit (3) |
| 1-3 months |
$ 106,166 |
$ 51,535 |
$ 175,188 |
$ 780,101 |
$ 1,112,990 |
0.93% |
| 4-6 months |
46,150 |
53,920 |
1,814 |
742,678 |
844,562 |
1.23% |
| 7-9 months |
4,794 |
23,235 |
1,164 |
625,928 |
655,121 |
0.96% |
| 10-12 months |
117,446 |
23,750 |
375 |
489,450 |
631,021 |
0.97% |
| 13-18 months |
176,879 |
22,279 |
-- |
456,366 |
655,524 |
1.24% |
| 19-24 months |
41,209 |
30,142 |
-- |
233,208 |
304,559 |
1.35% |
| 24+ months |
111,874 |
23,450 |
-- |
485,285 |
620,609 |
2.13% |
| Total |
$ 604,518 |
$ 228,311 |
$ 178,541 |
$ 3,813,016 |
$ 4,824,386 |
1.22% |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| (1) This category of certificates
of deposit is shown by contractual maturity date. |
| (2) This category includes
variable rate certificates of deposit and savings certificates with
the majority repricing on at least a monthly basis. |
| (3) Weighted-average rate
excludes the impact of purchase accounting fair value
adjustments. |
| |
|
|
|
|
|
|
NET INTEREST INCOME
The following table presents a summary of Wintrust's average
balances, net interest income and related net interest margins,
calculated on a fully tax-equivalent basis, for the first quarter
of 2012 compared to the first quarter of 2011 (linked
quarters):
| |
|
|
|
|
|
|
| |
For the Three Months
Ended |
For the Three Months Ended |
| |
March 31,
2012 |
March 31, 2011 |
| (Dollars in thousands) |
Average |
Interest |
Rate |
Average |
Interest |
Rate |
| |
|
|
|
|
|
|
| Liquidity management assets (1) (2) (7) |
$ 2,756,833 |
$ 13,040 |
1.90% |
$ 2,632,012 |
$ 11,354 |
1.75% |
| Other earning assets (2) (3) (7) |
30,499 |
224 |
2.96 |
27,718 |
181 |
2.65 |
| Loans, net of unearned income (2) (4)
(7) |
10,848,016 |
128,784 |
4.77 |
9,849,309 |
129,587 |
5.34 |
| Covered loans |
667,242 |
14,904 |
8.98 |
326,571 |
7,072 |
8.78 |
| Total earning assets (7) |
$ 14,302,590 |
$ 156,952 |
4.41% |
$ 12,835,610 |
$ 148,194 |
4.68% |
| Allowance for loan losses |
(131,769) |
|
|
(118,610) |
|
|
| Cash and due from banks |
143,869 |
|
|
152,264 |
|
|
| Other assets |
1,520,660 |
|
|
1,149,261 |
|
|
| Total assets |
$ 15,835,350 |
|
|
$ 14,018,525 |
|
|
| |
|
|
|
|
|
|
| Interest-bearing deposits |
$ 10,481,822 |
$ 18,030 |
0.69% |
$ 9,542,637 |
$ 23,956 |
1.02% |
| Federal Home Loan Bank advances |
470,345 |
3,584 |
3.06 |
416,021 |
3,958 |
3.86 |
| Notes payable and other borrowings |
505,814 |
3,102 |
2.47 |
266,379 |
2,630 |
4.00 |
| Secured borrowings - owed to securitization
investors |
514,923 |
2,549 |
1.99 |
600,000 |
3,040 |
2.05 |
| Subordinated notes |
35,000 |
169 |
1.91 |
50,000 |
212 |
1.69 |
| Junior subordinated notes |
249,493 |
3,157 |
5.01 |
249,493 |
4,370 |
7.01 |
| Total interest-bearing liabilities |
$ 12,257,397 |
$ 30,591 |
1.00% |
$ 11,124,530 |
$ 38,166 |
1.39% |
| Non-interest bearing deposits |
1,832,627 |
|
|
1,261,374 |
|
|
| Other liabilities |
180,664 |
|
|
194,752 |
|
|
| Equity |
1,564,662 |
|
|
1,437,869 |
|
|
| Total liabilities and shareholders'
equity |
$ 15,835,350 |
|
|
$ 14,018,525 |
|
|
| |
|
|
|
|
|
|
| Interest rate spread (5) (7) |
|
|
3.41% |
|
|
3.29% |
| Net free funds/contribution (6) |
$ 2,045,193 |
|
0.14% |
$ 1,711,080 |
|
0.19% |
| Net interest income/Net interest margin
(7) |
|
$ 126,361 |
3.55% |
|
$ 110,028 |
3.48% |
| |
|
|
|
|
|
|
| (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, 2012 and 2011 were $466,000 and $414,000,
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 7 basis point increase in net interest margin in the first
quarter of 2012 compared to the first quarter of 2011 was primarily
attributable to a 33 basis point decline in the cost of
interest-bearing deposits, an 80 basis point decline in the cost of
wholesale borrowings over the last 12 months and the positive
impact from the defeasance of a portion of the secured borrowings
owed to securitization investors. Offsetting this was the negative
impact of both competitive and economic pricing pressures on the
commercial and industrial and commercial premium finance portfolios
during the past 12 months and a decrease in accretable discount
recognized as interest income on the purchased life insurance
premium portfolio as prepayments declined, causing the yield on
total loans, excluding covered loans, to decline by 57 basis
points.
The majority of covered loans are accounted for in accordance
with ASC 310-30. As such, the yield on these loans at the
acquisition date represents a fair value loan yield. In
periods subsequent to the quarter of acquisition, the Company has
experienced cash collections generally better than estimated for
the initial valuation. Overall, expected losses have decreased
and expected estimated lives have increased, which together have
led to generally higher effective yields as estimated cash flows on
the pools of loans have improved.
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 2012 compared to the fourth quarter of 2011 (sequential
quarters):
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
For the Three Months
Ended |
For the Three Months Ended |
| |
March 31,
2012 |
December 31, 2011 |
| (Dollars in thousands) |
Average |
Interest |
Rate |
Average |
Interest |
Rate |
| |
|
|
|
|
|
|
| Liquidity management assets (1) (2) (7) |
$ 2,756,833 |
$ 13,040 |
1.90% |
$ 3,051,850 |
$ 14,215 |
1.85% |
| Other earning assets (2) (3) (7) |
30,499 |
224 |
2.96 |
28,828 |
210 |
2.90 |
| Loans, net of unearned income (2) (4)
(7) |
10,848,016 |
128,784 |
4.77 |
10,662,516 |
128,518 |
4.78 |
| Covered loans |
667,242 |
14,904 |
8.98 |
652,157 |
15,128 |
9.20 |
| Total earning assets (7) |
$ 14,302,590 |
$ 156,952 |
4.41% |
$ 14,395,351 |
$ 158,071 |
4.36% |
| Allowance for loan losses |
(131,769) |
|
|
(137,423) |
|
|
| Cash and due from banks |
143,869 |
|
|
130,437 |
|
|
| Other assets |
1,520,660 |
|
|
1,625,844 |
|
|
| Total assets |
$ 15,835,350 |
|
|
$ 16,014,209 |
|
|
| |
|
|
|
|
|
|
| Interest-bearing deposits |
$ 10,481,822 |
$ 18,030 |
0.69% |
$ 10,563,090 |
$ 19,685 |
0.74% |
| Federal Home Loan Bank advances |
470,345 |
3,584 |
3.06 |
474,549 |
4,186 |
3.50 |
| Notes payable and other borrowings |
505,814 |
3,102 |
2.47 |
468,139 |
2,804 |
2.38 |
| Secured borrowings - owed to securitization
investors |
514,923 |
2,549 |
1.99 |
600,000 |
3,076 |
2.03 |
| Subordinated notes |
35,000 |
169 |
1.91 |
38,370 |
176 |
1.79 |
| Junior subordinated notes |
249,493 |
3,157 |
5.01 |
249,493 |
3,043 |
4.77 |
| Total interest-bearing
liabilities |
$ 12,257,397 |
$ 30,591 |
1.00% |
$ 12,393,641 |
$ 32,970 |
1.05% |
| Non-interest bearing deposits |
1,832,627 |
|
|
1,755,446 |
|
|
| Other liabilities |
180,664 |
|
|
333,186 |
|
|
| Equity |
1,564,662 |
|
|
1,531,936 |
|
|
| Total liabilities and
shareholders' equity |
$ 15,835,350 |
|
|
$ 16,014,209 |
|
|
| |
|
|
|
|
|
|
| Interest rate spread (5) (7) |
|
|
3.41% |
|
|
3.31% |
| Net free funds/contribution (6) |
$ 2,045,193 |
|
0.14% |
$ 2,001,710 |
|
0.14% |
| Net interest income/Net interest margin
(7) |
|
$ 126,361 |
3.55% |
|
$ 125,101 |
3.45% |
| |
|
|
|
|
|
|
| (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, 2012 was $466,000 and for the three months ended December
31, 2011 was $454,000. |
| (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 the
rate paid for total interest-bearing liabilities. |
| (7) See "Supplemental Financial
Measures/Ratios" for additional information on this performance
ratio. |
| |
The 10 basis point increase in net interest margin in the first
quarter of 2012 compared to the fourth quarter of 2011 resulted
from positive re-pricing of retail interest-bearing deposits along
with a more favorable deposit mix, higher yields on our premium
finance loans and the positive impact from the defeasance of a
portion of the secured borrowings owed to securitization
investors.
NON-INTEREST INCOME
For the first quarter of 2012, non-interest income totaled $47.0
million, an increase of $6.1 million, or 15%, compared to the first
quarter of 2011. The increase was primarily attributable to
higher mortgage banking revenues, wealth management revenues and
miscellaneous revenue, partially offset by a decrease in bargain
purchase gains.
The following table presents non-interest income by category for
the periods presented:
| |
|
|
|
| |
Three Months Ended |
|
|
| |
March 31, |
$ |
% |
| (Dollars in thousands) |
2012 |
2011 |
Change |
Change |
| Brokerage |
$ 6,322 |
$ 6,325 |
$ (3) |
-- |
| Trust and asset management |
6,079 |
3,911 |
2,168 |
55 |
| Total wealth management |
12,401 |
10,236 |
2,165 |
21 |
| Mortgage banking |
18,534 |
11,631 |
6,903 |
59 |
| Service charges on deposit accounts |
4,208 |
3,311 |
897 |
27 |
| Gains on available-for-sale securities |
816 |
106 |
710 |
NM |
| Gain on bargain purchases |
840 |
9,838 |
(8,998) |
(91) |
| Trading gains (losses) |
146 |
(440) |
586 |
NM |
| Other: |
|
|
|
|
| Fees from covered call
options |
3,123 |
2,470 |
653 |
26 |
| Bank Owned Life Insurance |
919 |
876 |
43 |
5 |
| Administrative services |
766 |
717 |
49 |
7 |
| Miscellaneous |
5,270 |
2,142 |
3,128 |
146 |
| Total Other |
10,078 |
6,205 |
3,873 |
62 |
| |
|
|
|
|
| Total Non-Interest
Income |
$ 47,023 |
$ 40,887 |
$ 6,136 |
15 |
| |
|
|
|
|
| NM - Not Meaningful |
|
|
|
|
The significant changes in non-interest income for the quarter
ended March 31, 2012 compared to the quarter ended March 31, 2011
are discussed below.
Wealth management revenue is comprised of the trust and asset
management revenue of The Chicago Trust Company and Great Lakes
Advisors and the brokerage commissions, money managed fees and
insurance product commissions at Wayne Hummer Investments. Wealth
management revenue totaled $12.4 million in the first quarter of
2012 and $10.2 million in the first quarter of 2011, an
increase of 21%. The increase is mostly attributable to additional
revenues resulting from the acquisition of Great Lakes Advisors in
the third quarter of 2011.
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, 2012, this revenue totaled $18.5 million, an increase of $6.9
million when compared to the first quarter of 2011. The increase in
mortgage banking revenue in the first quarter of 2012 as compared
to the first quarter of 2011 resulted primarily from an increase in
gain on sales of loans, which were driven by higher origination
volumes and better pricing in the current quarter.
A summary of mortgage banking components is shown below:
| |
|
|
|
| Mortgage banking
revenue |
|
|
|
| |
|
|
|
| |
Three Months Ended |
| |
March 31, |
December 31, |
March 31, |
| (Dollars in thousands) |
2012 |
2011 |
2011 |
| |
|
|
|
| Mortgage loans originated and
sold |
$ 714,655 |
$ 883,017 |
$ 562,088 |
| |
|
|
|
| Mortgage loans serviced for
others |
$ 963,514 |
$ 958,749 |
$ 943,074 |
| Fair value of mortgage servicing
rights (MSRs) |
$ 7,201 |
$ 6,700 |
$ 9,448 |
| MSRs as a percentage of loans
serviced |
0.75% |
0.70% |
1.00% |
| |
|
|
|
Increased originations in the current quarter as compared to the
first quarter of 2011 were primarily the result of originations
from River City which was acquired in April 2011, and a favorable
mortgage banking interest rate environment.
Gain on bargain purchases of $840,000 was recognized in the
first quarter of 2012 related to the FDIC-assisted acquisition of
Charter National. Gain on bargain purchases in the current quarter
decreased compared to the $9.8 million recorded in the first
quarter of 2011 as a result of the FDIC-assisted acquisitions of
TBOC and CFBC.
Other non-interest income for the first quarter of 2012 totaled
$10.1 million, compared to $6.2 million in the first quarter of
2011. Fees from certain covered call option transactions increased
by $653,000 in the first quarter of 2012 as compared to the same
period in the prior year. Historically, compression in the net
interest margin was effectively offset by the Company's covered
call strategy. 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)"). Miscellaneous income is primarily comprised of
gains from investment partnerships and revenues from interest rate
hedging transactions related to both customer-based trades and the
related matched trades with inter-bank dealer counterparties. The
Company recorded gains on investment partnerships of $1.4 million
in the first quarter of 2012 as compared to $356,000 in the first
quarter of 2011. The Company recognized $2.5 million of swap fee
revenue in the first quarter of 2012 compared to $951,000 in the
first quarter of 2011. The revenue recognized on this
customer-based activity is a function of the pace of organic loan
growth, the shape of the LIBOR curve and the customers'
expectations of interest rates.
NON-INTEREST EXPENSE
Non-interest expense for the first quarter of 2012 totaled
$117.8 million and increased approximately $19.6 million, or 20%,
compared to the first quarter of 2011.
The following table presents non-interest expense by category
for the periods presented:
| |
|
|
|
| |
Three Months Ended |
|
|
| |
March 31, |
$ |
% |
| (Dollars in thousands) |
2012 |
2011 |
Change |
Change |
| Salaries and employee benefits: |
|
|
|
|
| Salaries |
$ 37,933 |
$ 33,135 |
4,798 |
14 |
| Commissions and bonus |
16,802 |
10,714 |
6,088 |
57 |
| Benefits |
14,295 |
12,250 |
2,045 |
17 |
| Total salaries and employee
benefits |
69,030 |
56,099 |
12,931 |
23 |
| Equipment |
5,400 |
4,264 |
1,136 |
27 |
| Occupancy, net |
8,062 |
6,505 |
1,557 |
24 |
| Data processing |
3,618 |
3,523 |
95 |
3 |
| Advertising and marketing |
2,006 |
1,614 |
392 |
24 |
| Professional fees |
3,604 |
3,546 |
58 |
2 |
| Amortization of other intangible assets |
1,049 |
689 |
360 |
52 |
| FDIC insurance |
3,357 |
4,518 |
(1,161) |
(26) |
| OREO expenses, net |
7,178 |
5,808 |
1,370 |
24 |
| Other: |
|
|
|
|
| Commissions - 3rd party
brokers |
1,021 |
1,030 |
(9) |
(1) |
| Postage |
1,423 |
1,078 |
345 |
32 |
| Stationery and supplies |
919 |
840 |
79 |
9 |
| Miscellaneous |
11,092 |
8,595 |
2,497 |
29 |
| Total other |
14,455 |
11,543 |
2,912 |
25 |
| |
|
|
|
|
| Total Non-Interest
Expense |
$ 117,759 |
$ 98,109 |
$ 19,650 |
20 |
|
|
|
|
|
|
The significant changes in non-interest expense for the quarter
ended March 31, 2012 compared to the quarter ended March 31, 2011
are discussed below.
Salaries and employee benefits comprised 59% of total
non-interest expense in the first quarter of 2012 as compared to
57% in the first quarter of 2011. Salaries and employee benefits
expense increased $12.9 million, or 23%, in the first quarter of
2012 compared to the first quarter of 2011 primarily as a result of
a $4.8 million increase in salaries caused by the addition of
employees from the various acquisitions and larger staffing as the
Company grows, a $6.1 million increase in bonus and commissions
primarily attributable to the increase in variable pay based
revenue and the Company's long-term incentive program approved by
the Compensation Committee of the Board of Directors in August 2011
and a $2.0 million increase from employee benefits (primarily
health plan and payroll taxes related).
Equipment expense includes depreciation on equipment,
maintenance and repairs, equipment rental and software license
fees. Equipment expense totaled $5.4 million for the first quarter
of 2012, an increase of $1.1 million compared to the first quarter
of 2011. The increase is primarily the result of additional
equipment depreciation as well as maintenance and repair costs
associated with the increasing number of facilities due to
acquisition activity.
Occupancy expense includes depreciation on premises, real estate
taxes, utilities and maintenance of premises, as well as net rent
expense for leased premises. Occupancy expense for the first
quarter of 2012 was $8.1 million, an increase of $1.6 million, or
24%, compared to the same period in 2011. The increase is primarily
the result of rent expense on additional leased premises and
depreciation and property taxes on owned locations which were
obtained in the FDIC-assisted acquisitions.
FDIC insurance expense for the first quarter of 2012 was $3.4
million, a decrease of $1.2 million, or 26%, compared to the same
period in 2011. Effective April 1, 2011, standards applied in FDIC
assessments set forth in the Federal Deposit Insurance Act were
revised by the Dodd-Frank Wall Street Reform and Consumer
Protection Act. These revisions modified definitions of a
company's insurance assessment base and assessment rates which led
to the Company's decreased FDIC expense in the first quarter of
2012 as compared to the first quarter of 2011.
OREO expenses include all costs related to obtaining,
maintaining and selling other real estate owned properties. This
expense totaled $7.2 million in the first quarter of 2012, an
increase of $1.4 million compared to $5.8 million in the first
quarter of 2011. The increase in OREO expenses is primarily related
to higher valuation adjustments of properties held in OREO in the
first quarter of 2012 as compared to the first quarter of
2011.
Miscellaneous expense includes 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 2012 increased $2.5 million, or
29% compared to the same period in the prior year. The increase in
the first quarter of 2012 compared to the same period in the prior
year is attributable to increased expenses related to covered
loans, general growth in the Company's business and costs incurred
for defeasance of secured borrowings owed to securitization
investors in the first quarter of 2012.
As previously discussed in this document, the accounting and
reporting policies of Wintrust conform to 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. One significant
metric that is used by the Company in assessing operating
performance is pre-tax adjusted earnings. Pre-tax adjusted earnings
is calculated by adjusting income before taxes to exclude the
provision for credit losses and certain significant items. Two
ratios the Company uses to measure expense management are the
efficiency ratio and the net overhead ratio. The efficiency ratio,
which is calculated by dividing non-interest expense by total
taxable-equivalent net revenue (less securities gains and losses),
measures how much it costs to produce one dollar of revenue. The
net overhead ratio is calculated by netting total non-interest
expense and total non-interest income and dividing by total average
assets. In both cases, a lower ratio indicates a higher degree of
efficiency. See "Supplemental Financial Measures/Ratios" section
earlier in this document for further detail on these non-GAAP
measures/ratios.
The efficiency ratio and net overhead ratio are primarily
reviewed by the Company based on pre-tax adjusted
earnings. The Company believes that these measures provide a
more meaningful view of the Company's operating efficiency and
expense management. The efficiency ratio, based on pre-tax adjusted
earnings, was 62.31% for the first quarter of 2012, compared to
63.56% in the first quarter of 2011. The net overhead ratio,
based on pre-tax adjusted earnings, was 1.58% in the first quarter
of 2012, compared to 1.69% in the first quarter of 2011. These
lower ratios indicate a higher degree of efficiency in the first
quarter of 2012 as compared to the prior year quarter.
| |
| ASSET
QUALITY |
| Allowance for Credit
Losses, excluding covered loans |
| |
|
|
| |
Three Months
Ended |
| |
March
31, |
| (Dollars in thousands) |
2012 |
2011 |
| |
|
|
| Allowance for loan losses at
beginning of period |
$ 110,381 |
$ 113,903 |
| Provision for credit
losses |
15,154 |
24,376 |
| Other adjustments |
(238) |
-- |
| Reclassification from/(to) allowance
for unfunded lending-related commitments |
152 |
2,116 |
| |
|
|
| Charge-offs: |
|
|
| Commercial |
3,262 |
9,140 |
| Commercial real estate |
8,229 |
13,342 |
| Home equity |
2,590 |
773 |
| Residential real estate |
175 |
1,275 |
| Premium finance receivables -
commercial |
837 |
1,507 |
| Premium finance receivables -
life insurance |
13 |
30 |
| Indirect consumer |
51 |
120 |
| Consumer and other |
310 |
160 |
| Total charge-offs |
15,467 |
26,347 |
| |
|
|
| Recoveries: |
|
|
| Commercial |
257 |
266 |
| Commercial real estate |
131 |
338 |
| Home equity |
162 |
8 |
| Residential real estate |
2 |
2 |
| Premium finance receivables -
commercial |
277 |
268 |
| Premium finance receivables -
life insurance |
21 |
-- |
| Indirect consumer |
30 |
66 |
| Consumer and other |
161 |
53 |
| Total recoveries |
1,041 |
1,001 |
| Net
charge-offs |
(14,426) |
(25,346) |
| |
|
|
| Allowance for loan
losses at period end |
$ 111,023 |
$ 115,049 |
| |
|
|
| Allowance for unfunded
lending-related commitments at period end |
13,078 |
2,018 |
| |
|
|
| Allowance for credit
losses at period end |
$ 124,101 |
$ 117,067 |
| |
|
|
| Annualized
net charge-offs by category as a percentage of its own respective
category's average: |
| Commercial |
0.49% |
1.85% |
| Commercial real estate |
0.92 |
1.57 |
| Home equity |
1.15 |
0.34 |
| Residential real estate |
0.11 |
0.91 |
| Premium finance receivables -
commercial |
0.15 |
0.37 |
| Premium finance receivables -
life insurance |
-- |
0.01 |
| Indirect consumer |
0.13 |
0.41 |
| Consumer and other |
0.49 |
0.42 |
| Total loans, net of unearned
income, excluding covered loans |
0.53% |
1.04% |
| |
|
|
| Net charge-offs as a
percentage of the provision for credit losses |
95.20% |
103.98% |
| |
|
|
| Loans at
period-end |
$ 10,717,384 |
$ 9,561,802 |
| Allowance for loan
losses as a percentage of loans at period end |
1.04% |
1.20% |
| Allowance for credit
losses as a percentage of loans at period end |
1.16% |
1.22% |
| |
|
|
The allowance for credit losses, excluding the allowance for
covered loan losses, is comprised of the allowance for loan losses
and the allowance for unfunded lending-related commitments. The
allowance for loan losses is a reserve against loan amounts that
are actually funded and outstanding while the allowance for
unfunded lending-related commitments (separate liability account)
relates to certain amounts that Wintrust is committed to lend but
for which funds have not yet been disbursed. The provision for
credit losses, excluding the provision for covered loan losses, may
contain both a component related to funded loans (provision for
loan losses) and a component related to lending-related commitments
(provision for unfunded loan commitments and letters of
credit). Total credit-related reserves also include the credit
discounts on the purchased life insurance premium finance
receivables which are netted with the loan balance.
The provision for credit losses, excluding the provision for
covered loan losses, totaled $15.2 million for the first quarter of
2012, $16.6 million for the fourth quarter of 2011 and $24.4
million for the first quarter of 2011. For the quarter ended
March 31, 2012, net charge-offs, excluding covered loans, totaled
$14.4 million compared to $25.1 million in the fourth quarter of
2011 and $25.3 million recorded in the first quarter of
2011. Annualized net charge-offs as a percentage of average
loans, excluding covered loans, were 0.53% in the first quarter of
2012, 0.93% in the fourth quarter of 2011 and 1.04% in the first
quarter of 2011. The lower level of provision for credit
losses and the allowance for credit losses, reflect the
improvements in credit quality metrics for the first quarter of
2012. The graphs on pages four and five of this press release
highlight the level of total non-performing loans, the improvement
seen in the reduced levels of inflows to non-performing loans and
the improvement in the allowance for loan loss coverage of
non-performing loans.
Management believes the allowance for credit losses is
appropriate to provide for inherent losses in the
portfolio. There can be no assurances however, that future
losses will not exceed the amounts provided for, thereby affecting
future results of operations. The amount of future additions
to the allowance for credit losses will be dependent upon
management's assessment of the appropriateness of the allowance
based on its evaluation of economic conditions, changes in real
estate values, interest rates, the regulatory environment, the
level of past-due and non-performing loans, and other
factors. The increase in the allowance for credit losses from
the end of the prior quarter reflects the continued changes in real
estate values on certain types of credits, specifically credits
with residential development collateral valuation exposure and loan
growth.
The Company also provides a provision for covered loan losses on
covered loans and an allowance for covered loan losses on covered
loans. Please see "Covered Assets" later in this document for
more detail.
The table below shows the aging of the Company's loan portfolio,
excluding covered loans, at March 31, 2012:
| |
|
90+ days |
60-89 |
30-59 |
|
|
| As of March 31, 2012 |
|
and still |
days past |
days past |
|
|
| (Dollars in thousands) |
Nonaccrual |
accruing |
due |
due |
Current |
Total Loans |
| Loan
Balances: |
|
|
|
|
|
|
| Commercial |
|
|
|
|
|
|
| Commercial and industrial |
$ 17,392 |
$ -- |
$ 9,210 |
$ 24,634 |
$ 1,454,783 |
$ 1,506,019 |
| Franchise |
1,792 |
-- |
-- |
100 |
167,385 |
169,277 |
| Mortgage warehouse lines of
credit |
-- |
-- |
-- |
-- |
136,438 |
136,438 |
| Community Advantage -
homeowners association |
-- |
-- |
-- |
-- |
75,786 |
75,786 |
| Aircraft |
260 |
-- |
428 |
1,189 |
18,014 |
19,891 |
| Asset-based lending |
391 |
-- |
926 |
970 |
472,524 |
474,811 |
| Municipal |
-- |
-- |
-- |
-- |
76,885 |
76,885 |
| Leases |
-- |
-- |
-- |
11 |
77,660 |
77,671 |
| Other |
-- |
-- |
-- |
-- |
1,733 |
1,733 |
| Purchased non-covered
commercial (1) |
-- |
424 |
1,063 |
-- |
4,458 |
5,945 |
| Total commercial |
19,835 |
424 |
11,627 |
26,904 |
2,485,666 |
2,544,456 |
| Commercial real-estate: |
|
|
|
|
|
|
| Residential construction |
1,807 |
-- |
-- |
4,469 |
49,835 |
56,111 |
| Commercial construction |
2,389 |
-- |
3,100 |
-- |
159,230 |
164,719 |
| Land |
25,306 |
-- |
6,606 |
6,833 |
145,297 |
184,042 |
| Office |
8,534 |
-- |
4,310 |
5,471 |
542,393 |
560,708 |
| Industrial |
1,864 |
-- |
6,683 |
10,101 |
572,255 |
590,903 |
| Retail |
7,323 |
73 |
-- |
8,797 |
511,884 |
528,077 |
| Multi-family |
3,708 |
-- |
1,496 |
4,691 |
315,043 |
324,938 |
| Mixed use and other |
11,773 |
-- |
17,745 |
30,689 |
1,063,733 |
1,123,940 |
| Purchased non-covered
commercial real-estate (1) |
-- |
2,959 |
301 |
1,601 |
47,461 |
52,322 |
| Total commercial
real-estate |
62,704 |
3,032 |
40,241 |
72,652 |
3,407,131 |
3,585,760 |
| Home equity |
12,881 |
-- |
2,049 |
6,576 |
818,858 |
840,364 |
| Residential real estate |
5,329 |
-- |
453 |
13,530 |
341,358 |
360,670 |
| Purchased non-covered residential real estate
(1) |
-- |
-- |
-- |
-- |
657 |
657 |
| Premium finance receivables |
|
|
|
|
|
|
| Commercial insurance loans |
7,650 |
4,619 |
3,360 |
17,612 |
1,479,389 |
1,512,630 |
| Life insurance loans |
-- |
-- |
-- |
389 |
1,132,970 |
1,133,359 |
| Purchased life insurance loans
(1) |
-- |
-- |
-- |
-- |
560,404 |
560,404 |
| Indirect consumer |
152 |
257 |
53 |
317 |
66,666 |
67,445 |
| Consumer and other |
121 |
-- |
20 |
1,601 |
109,723 |
111,465 |
| Purchased non-covered consumer and other
(1) |
-- |
-- |
-- |
-- |
174 |
174 |
| Total loans, net of unearned
income, excluding covered loans |
$ 108,672 |
$ 8,332 |
$ 57,803 |
$ 139,581 |
$ 10,402,996 |
$ 10,717,384 |
| Covered loans |
-- |
182,011 |
20,254 |
28,249 |
460,706 |
691,220 |
| Total loans, net of unearned
income |
$ 108,672 |
$ 190,343 |
$ 78,057 |
$ 167,830 |
$ 10,863,702 |
$ 11,408,604 |
| |
|
|
|
|
|
|
| (1) Purchased loans
represent loans acquired with evidence of credit quality
deterioration since origination, in accordance with ASC 310-30.
Loan agings are based upon contractually required payments. |
| |
| Aging as a % of Loan
Balance: |
|
90+ days |
60-89 |
30-59 |
|
|
| |
|
and still |
days past |
days past |
|
|
| |
Nonaccrual |
accruing |
due |
due |
Current |
Total Loans |
| Commercial |
|
|
|
|
|
|
| Commercial and industrial |
1.2% |
--% |
0.6% |
1.6% |
96.6% |
100.0% |
| Franchise |
1.1 |
-- |
-- |
0.1 |
98.8 |
100.0 |
| Mortgage warehouse lines of
credit |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Community Advantage -
homeowners association |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Aircraft |
1.3 |
-- |
2.2 |
6.0 |
90.5 |
100.0 |
| Asset-based lending |
0.1 |
-- |
0.2 |
0.2 |
99.5 |
100.0 |
| Municipal |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Leases |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Other |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Purchased non-covered
commercial (1) |
-- |
7.1 |
17.9 |
-- |
75.0 |
100.0 |
| Total commercial |
0.8 |
-- |
0.5 |
1.1 |
97.6 |
100.0 |
| Commercial real-estate |
|
|
|
|
|
|
| Residential construction |
3.2 |
-- |
-- |
8.0 |
88.8 |
100.0 |
| Commercial construction |
1.5 |
-- |
1.9 |
-- |
96.6 |
100.0 |
| Land |
13.8 |
-- |
3.6 |
3.7 |
78.9 |
100.0 |
| Office |
1.5 |
-- |
0.8 |
1.0 |
96.7 |
100.0 |
| Industrial |
0.3 |
-- |
1.1 |
1.7 |
96.9 |
100.0 |
| Retail |
1.4 |
-- |
-- |
1.7 |
96.9 |
100.0 |
| Multi-family |
1.1 |
-- |
0.5 |
1.4 |
97.0 |
100.0 |
| Mixed use and other |
1.0 |
-- |
1.6 |
2.7 |
94.7 |
100.0 |
| Purchased non-covered
commercial real-estate (1) |
-- |
5.7 |
0.6 |
3.1 |
90.6 |
100.0 |
| Total commercial
real-estate |
1.7 |
0.1 |
1.1 |
2.0 |
95.1 |
100.0 |
| Home equity |
1.5 |
-- |
0.2 |
0.8 |
97.5 |
100.0 |
| Residential real estate |
1.5 |
-- |
0.1 |
3.8 |
94.6 |
100.0 |
| Purchased non-covered residential real estate
(1) |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Premium finance receivables |
|
|
|
|
|
|
| Commercial insurance loans |
0.5 |
0.3 |
0.2 |
1.2 |
97.8 |
100.0 |
| Life insurance loans |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Purchased life insurance loans
(1) |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Indirect consumer |
0.2 |
0.4 |
0.1 |
0.5 |
98.8 |
100.0 |
| Consumer and other |
0.1 |
-- |
-- |
1.4 |
98.5 |
100.0 |
| Purchased non-covered consumer and other
(1) |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Total loans, net of unearned
income, excluding covered loans |
1.0% |
0.1% |
0.5% |
1.3% |
97.1% |
100.0% |
| Covered loans |
-- |
26.3 |
2.9 |
4.1 |
66.7 |
100.0 |
| Total loans, net of unearned
income |
1.0% |
1.7% |
0.7% |
1.5% |
95.1% |
100.0% |
As of March 31, 2012, $57.8 million of all loans, excluding
covered loans, or 0.5%, were 60 to 89 days past due and $139.6
million, or 1.3%, were 30 to 59 days (or one payment) past due.
As of December 31, 2011, $45.4 million of all loans,
excluding covered loans, or 0.4%, were 60 to 89 days past due and
$94.1 million, or 0.9%, were 30 to 59 days (or one payment) past
due. The majority of the commercial and commercial real estate
loans shown as 60 to 89 days and 30 to 59 days past due are
included on the Company's internal problem loan reporting
system. Loans on this system are closely monitored by
management on a monthly basis.
The Company's home equity and residential loan portfolios
continue to exhibit low delinquency ratios. Home equity loans
at March 31, 2012 that are current with regard to the contractual
terms of the loan agreement represent 97.5% of the total home
equity portfolio. Residential real estate loans at March 31,
2012 that are current with regards to the contractual terms of the
loan agreements comprise 94.7% of total residential real estate
loans outstanding, which includes purchased non-covered residential
real-estate.
The table below shows the aging of the Company's loan portfolio,
excluding covered loans, at December 31, 2011:
| |
|
90+ days |
60-89 |
30-59 |
|
|
| As of December 31, 2011 |
|
and still |
days past |
days past |
|
|
| (Dollars in thousands) |
Nonaccrual |
accruing |
due |
due |
Current |
Total Loans |
| Loan
Balances: |
|
|
|
|
|
|
| Commercial |
|
|
|
|
|
|
| Commercial and industrial |
$ 16,154 |
$ -- |
$ 7,496 |
$ 15,797 |
$ 1,411,004 |
$ 1,450,451 |
| Franchise |
1,792 |
-- |
-- |
-- |
140,983 |
142,775 |
| Mortgage warehouse lines of
credit |
-- |
-- |
-- |
-- |
180,450 |
180,450 |
| Community Advantage -
homeowners association |
-- |
-- |
-- |
-- |
77,504 |
77,504 |
| Aircraft |
-- |
-- |
709 |
170 |
19,518 |
20,397 |
| Asset-based lending |
1,072 |
-- |
749 |
11,026 |
452,890 |
465,737 |
| Municipal |
-- |
-- |
-- |
-- |
78,319 |
78,319 |
| Leases |
-- |
-- |
-- |
431 |
71,703 |
72,134 |
| Other |
-- |
-- |
-- |
-- |
2,125 |
2,125 |
| Purchased non-covered
commercial (1) |
-- |
589 |
74 |
-- |
7,758 |
8,421 |
| Total commercial |
19,018 |
589 |
9,028 |
27,424 |
2,442,254 |
2,498,313 |
| Commercial real-estate: |
|
|
|
|
|
|
| Residential construction |
1,993 |
-- |
4,982 |
1,721 |
57,115 |
65,811 |
| Commercial construction |
2,158 |
-- |
-- |
150 |
167,568 |
169,876 |
| Land |
31,547 |
-- |
4,100 |
6,772 |
136,112 |
178,531 |
| Office |
10,614 |
-- |
2,622 |
930 |
540,280 |
554,446 |
| Industrial |
2,002 |
-- |
508 |
4,863 |
548,429 |
555,802 |
| Retail |
5,366 |
-- |
5,268 |
8,651 |
517,444 |
536,729 |
| Multi-family |
4,736 |
-- |
3,880 |
347 |
305,594 |
314,557 |
| Mixed use and other |
8,092 |
-- |
7,163 |
20,814 |
1,050,585 |
1,086,654 |
| Purchased non-covered
commercial real-estate (1) |
-- |
2,198 |
-- |
252 |
49,405 |
51,855 |
| Total commercial
real-estate |
66,508 |
2,198 |
28,523 |
44,500 |
3,372,532 |
3,514,261 |
| Home equity |
14,164 |
-- |
1,351 |
3,262 |
843,568 |
862,345 |
| Residential real estate |
6,619 |
-- |
2,343 |
3,112 |
337,522 |
349,596 |
| Purchased non-covered residential real estate
(1) |
-- |
-- |
-- |
-- |
693 |
693 |
| Premium finance receivables |
|
|
|
|
|
|
| Commercial insurance loans |
7,755 |
5,281 |
3,850 |
13,787 |
1,381,781 |
1,412,454 |
| Life insurance loans |
54 |
-- |
-- |
423 |
1,096,285 |
1,096,762 |
| Purchased life insurance loans
(1) |
-- |
-- |
-- |
-- |
598,463 |
598,463 |
| Indirect consumer |
138 |
314 |
113 |
551 |
63,429 |
64,545 |
| Consumer and other |
233 |
-- |
170 |
1,070 |
122,393 |
123,866 |
| Purchased non-covered consumer and other
(1) |
-- |
-- |
-- |
2 |
77 |
79 |
| Total loans, net of unearned
income, excluding covered loans |
$ 114,489 |
$ 8,382 |
$ 45,378 |
$ 94,131 |
$ 10,258,997 |
$ 10,521,377 |
| Covered loans |
-- |
174,727 |
25,507 |
24,799 |
426,335 |
651,368 |
| Total loans, net of unearned
income |
$ 114,489 |
$ 183,109 |
$ 70,885 |
$ 118,930 |
$ 10,685,332 |
$ 11,172,745 |
| |
|
|
|
|
|
|
| (1) Purchased loans
represent loans acquired with evidence of credit quality
deterioration since origination, in accordance with ASC 310-30.
Loan agings are based upon contractually required payments. |
| |
| Aging as a % of Loan
Balance: |
|
90+ days |
60-89 |
30-59 |
|
|
| |
|
and still |
days past |
days past |
|
|
| |
Nonaccrual |
accruing |
due |
due |
Current |
Total Loans |
| Commercial |
|
|
|
|
|
|
| Commercial and industrial |
1.1% |
--% |
0.5% |
1.1% |
97.3% |
100.0% |
| Franchise |
1.3 |
-- |
-- |
-- |
98.7 |
100.0 |
| Mortgage warehouse lines of
credit |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Community Advantage -
homeowners association |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Aircraft |
-- |
-- |
3.5 |
0.8 |
95.7 |
100.0 |
| Asset-based lending |
0.2 |
-- |
0.2 |
2.4 |
97.2 |
100.0 |
| Municipal |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Leases |
-- |
-- |
-- |
0.6 |
99.4 |
100.0 |
| Other |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Purchased non-covered
commercial (1) |
-- |
7.0 |
0.9 |
-- |
92.1 |
100.0 |
| Total commercial |
0.8 |
0.0 |
0.4 |
1.1 |
97.7 |
100.0 |
| Commercial real-estate |
|
|
|
|
|
|
| Residential construction |
3.0 |
-- |
7.6 |
2.6 |
86.8 |
100.0 |
| Commercial construction |
1.3 |
-- |
-- |
0.1 |
98.6 |
100.0 |
| Land |
17.7 |
-- |
2.3 |
3.8 |
76.2 |
100.0 |
| Office |
1.9 |
-- |
0.5 |
0.2 |
97.4 |
100.0 |
| Industrial |
0.4 |
-- |
0.1 |
0.9 |
98.6 |
100.0 |
| Retail |
1.0 |
-- |
1.0 |
1.6 |
96.4 |
100.0 |
| Multi-family |
1.5 |
-- |
1.2 |
0.1 |
97.2 |
100.0 |
| Mixed use and other |
0.7 |
-- |
0.7 |
1.9 |
96.7 |
100.0 |
| Purchased non-covered
commercial real-estate (1) |
-- |
4.2 |
-- |
0.5 |
95.3 |
100.0 |
| Total commercial
real-estate |
1.9 |
0.1 |
0.8 |
1.3 |
95.9 |
100.0 |
| Home equity |
1.6 |
-- |
0.2 |
0.4 |
97.8 |
100.0 |
| Residential real estate |
1.9 |
-- |
0.7 |
0.9 |
96.5 |
100.0 |
| Purchased non-covered residential real estate
(1) |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Premium finance receivables |
|
|
|
|
|
|
| Commercial insurance loans |
0.5 |
0.4 |
0.3 |
1.0 |
97.8 |
100.0 |
| Life insurance loans |
0.0 |
-- |
-- |
0.0 |
100.0 |
100.0 |
| Purchased life insurance loans
(1) |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Indirect consumer |
0.2 |
0.5 |
0.2 |
0.9 |
98.2 |
100.0 |
| Consumer and other |
0.2 |
-- |
0.1 |
0.9 |
98.8 |
100.0 |
| Purchased non-covered consumer and other
(1) |
-- |
-- |
-- |
2.5 |
97.5 |
100.0 |
| Total loans, net of unearned
income, excluding covered loans |
1.1% |
0.1% |
0.4% |
0.9% |
97.5% |
100.0% |
| Covered loans |
-- |
26.8 |
3.9 |
3.8 |
65.5 |
100.0 |
| Total loans, net of unearned
income |
1.0% |
1.6% |
0.6% |
1.1% |
95.7% |
100.0% |
Non-performing Assets
The following table sets forth Wintrust's non-performing assets,
excluding covered assets and purchased non-covered loans acquired
with evidence of credit quality deterioration since origination, at
the dates indicated.
| |
| |
March 31, |
December 31, |
March 31, |
| (Dollars in thousands) |
2012 |
2011 |
2011 |
| |
|
|
|
| Loans past due greater than 90 days
and still accruing: |
|
|
|
| Commercial |
$ -- |
$ -- |
$ 150 |
| Commercial real-estate |
73 |
-- |
1,997 |
| Home equity |
-- |
-- |
-- |
| Residential real-estate |
-- |
-- |
-- |
| Premium finance receivables -
commercial |
4,619 |
5,281 |
6,319 |
| Premium finance receivables -
life insurance |
-- |
-- |
-- |
| Indirect consumer |
257 |
314 |
310 |
| Consumer and other |
-- |
-- |
1 |
| Total loans past due greater
than 90 days and still accruing |
4,949 |
5,595 |
8,777 |
| |
|
|
|
| Non-accrual loans: |
|
|
|
| Commercial |
19,835 |
19,018 |
26,157 |
| Commercial real-estate |
62,704 |
66,508 |
94,001 |
| Home equity |
12,881 |
14,164 |
11,184 |
| Residential real-estate |
5,329 |
6,619 |
4,909 |
| Premium finance receivables -
commercial |
7,650 |
7,755 |
9,550 |
| Premium finance receivables -
life insurance |
-- |
54 |
342 |
| Indirect consumer |
152 |
138 |
320 |
| Consumer and other |
121 |
233 |
147 |
| Total non-accrual loans |
108,672 |
114,489 |
146,610 |
| |
|
|
|
| Total non-performing
loans: |
|
|
|
| Commercial |
19,835 |
19,018 |
26,307 |
| Commercial real-estate |
62,777 |
66,508 |
95,998 |
| Home equity |
12,881 |
14,164 |
11,184 |
| Residential real-estate |
5,329 |
6,619 |
4,909 |
| Premium finance receivables -
commercial |
12,269 |
13,036 |
15,869 |
| Premium finance receivables -
life insurance |
-- |
54 |
342 |
| Indirect consumer |
409 |
452 |
630 |
| Consumer and other |
121 |
233 |
148 |
| Total non-performing loans |
$ 113,621 |
$ 120,084 |
$ 155,387 |
| Other real estate owned |
69,575 |
79,093 |
85,290 |
| Other real estate owned -
obtained in acquisition |
6,661 |
7,430 |
-- |
| Total non-performing
assets |
$ 189,857 |
$ 206,607 |
$ 240,677 |
| |
|
|
|
| Total non-performing
loans by category as a percent of its own respective category's
period-end balance: |
| Commercial |
0.78% |
0.76% |
1.36% |
| Commercial real-estate |
1.75 |
1.89 |
2.86 |
| Home equity |
1.53 |
1.64 |
1.25 |
| Residential real-estate |
1.47 |
1.89 |
1.42 |
| Premium finance receivables -
commercial |
0.81 |
0.92 |
1.19 |
| Premium finance receivables -
life insurance |
-- |
-- |
0.02 |
| Indirect consumer |
0.61 |
0.70 |
1.20 |
| Consumer and other |
0.11 |
0.19 |
0.15 |
| Total loans, net of unearned
income |
1.06% |
1.14% |
1.63% |
| |
|
|
|
| Total non-performing
assets as a percentage of total assets |
1.17% |
1.30% |
1.71% |
| |
|
|
|
| Allowance for loan
losses as a percentage of total non-performing loans |
97.71% |
91.92% |
74.04% |
| |
Non-performing Commercial and Commercial Real Estate
Commercial non-performing loans totaled $19.8 million as of
March 31, 2012 compared to $19.0 million as of December 31, 2011
and $26.3 million as of March 31, 2011. Commercial real estate
non-performing loans totaled $62.8 million as of March 31, 2012
compared to $66.5 million as of December 31, 2011 and $96.0 million
as of March 31, 2011.
Management is pursuing the resolution of all credits in this
category. At this time,management believes reserves are appropriate
to absorb inherent losses that are expected to occur upon the
ultimate resolution of these credits.
Non-performing Residential Real Estate and Home Equity
Non-performing home equity and residential real estate loans
totaled $18.2 million as of March 31, 2012. The balance
decreased $2.6 million from December 31, 2011 and increased $2.1
million from March 31, 2011. The March 31, 2012 non-performing
balance is comprised of $5.3 million of residential real estate (35
individual credits) and $12.9 million of home equity loans (42
individual credits). On average, this is approximately 5
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 Insurance Premium Finance
Receivables
The table below presents the level of non-performing property
and casualty premium finance receivables as of March 31, 2012 and
2011, and the amount of net charge-offs for the quarters then
ended.
|
|
| |
March 31, |
March 31, |
| (Dollars in thousands) |
2012 |
2011 |
| Non-performing premium finance receivables -
commercial |
$ 12,269 |
$ 15,869 |
| - as a percent of premium
finance receivables - commercial outstanding |
0.81% |
1.19% |
| |
|
|
| Net charge-offs of premium finance
receivables - commercial |
$ 560 |
$ 1,239 |
| - annualized as a percent of
average premium finance receivables - commercial |
0.15% |
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.
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.
Nonperforming Loans Rollforward
The table below presents a summary of the changes in the balance
of non-performing loans, excluding covered loans, for the three
month periods ending March 31, 2012 and 2011:
| |
| |
Three Months
Ended |
| |
March 31, |
March 31, |
| (Dollars in thousands) |
2012 |
2011 |
| Balance at beginning of period |
$ 120,084 |
$ 142,132 |
| Additions, net |
17,867 |
56,168 |
| Return to performing
status |
(922) |
(1,175) |
| Payments received |
(4,640) |
(1,589) |
| Transfer to OREO |
(6,601) |
(22,425) |
| Charge-offs |
(11,307) |
(14,100) |
| Net change for niche loans
(1) |
(860) |
(3,624) |
| Balance at end of
period |
$ 113,621 |
$ 155,387 |
| |
|
|
| (1) This includes activity for
premium finance receivables and indirect consumer loans. |
| |
Restructured Loans
The table below presents a summary of restructured loans for the
respective period, presented by loan category and accrual
status:
| |
| |
March 31, |
December 31, |
March 31, |
| (Dollars in thousands) |
2012 |
2011 |
2011 |
| Accruing: |
|
|
|
| Commercial |
$ 9,324 |
$ 9,270 |
$ 12,620 |
| Commercial real estate |
134,516 |
104,864 |
55,202 |
| Residential real estate and
other |
7,176 |
5,786 |
1,560 |
| Total accrual |
$ 151,016 |
$ 119,920 |
$ 69,382 |
| |
|
|
|
| Non-accrual: (1) |
|
|
|
| Commercial |
$ 1,465 |
$ 1,564 |
$ 5,582 |
| Commercial real estate |
11,805 |
7,932 |
21,174 |
| Residential real estate and
other |
760 |
1,102 |
431 |
| Total non-accrual |
$ 14,030 |
$ 10,598 |
$ 27,187 |
| |
|
|
|
| Total restructured
loans: |
|
|
|
| Commercial |
$ 10,789 |
$ 10,834 |
$ 18,202 |
| Commercial real estate |
146,321 |
112,796 |
76,376 |
| Residential real estate and
other |
7,936 |
6,888 |
1,991 |
| Total restructured loans |
$ 165,046 |
$ 130,518 |
$ 96,569 |
| |
|
|
|
| (1) Included in total
non-performing loans. |
| |
At March 31, 2012, the Company had $165.0 million in loans with
modified terms representing 182 credits in which economic
concessions were granted to certain borrowers to better align the
terms of their loans with their current ability to pay.
The table below presents a summary of restructured loans as of
March 31, 2012 and March 31, 2011, and shows the changes in the
balance during those periods:
| Quarter Ended March 31,
2012 |
|
|
Residential |
|
| |
|
Commercial |
Real-estate |
|
| (Dollars in
thousands) |
Commercial |
Real-estate |
and Other |
Total |
| |
|
|
|
|
| Balance at beginning of period |
$ 10,834 |
$ 112,796 |
$ 6,888 |
$ 130,518 |
| Additions during the period |
118 |
38,519 |
1,060 |
39,697 |
| Reductions: |
|
|
|
|
| Charge-offs |
-- |
(1,342) |
-- |
(1,342) |
| Transferred to OREO |
-- |
(2,129) |
-- |
(2,129) |
| Removal of restructured loan
status (1) |
-- |
(463) |
-- |
(463) |
| Payments received |
(163) |
(1,060) |
(12) |
(1,235) |
| |
|
|
|
|
| Balance at period end |
$ 10,789 |
$ 146,321 |
$ 7,936 |
$ 165,046 |
| |
|
|
|
|
| Quarter Ended March 31,
2011 |
|
|
Residential |
|
| |
|
Commercial |
Real-estate |
|
| (Dollars in
thousands) |
Commercial |
Real-estate |
and Other |
Total |
| |
|
|
|
|
| Balance at beginning of period |
$ 18,028 |
$ 81,366 |
$ 1,796 |
$ 101,190 |
| Additions during the period |
1,685 |
7,487 |
195 |
9,367 |
| Reductions: |
|
|
|
|
| Charge-offs |
(1,000) |
(2,198) |
-- |
(3,198) |
| Transferred to OREO |
-- |
(1,791) |
-- |
(1,791) |
| Removal of restructured loan
status (1) |
(244) |
(4,670) |
-- |
(4,914) |
| Payments received |
(267) |
(3,818) |
-- |
(4,085) |
| |
|
|
|
|
| Balance at period end |
$ 18,202 |
$ 76,376 |
$ 1,991 |
$ 96,569 |
| |
|
|
|
|
| (1) Loan was previously
classified as a troubled debt restructuring and subsequently
performed in compliance with the loan's modified terms for a period
of six months (including over a calendar year-end) at a modified
interest rate which represented a market rate at the time of
restructuring. Per our TDR policy, the TDR classification is
removed. |
The Company's approach to restructuring loans is built on its
credit risk rating system which requires credit management
personnel to assign a credit risk rating to each loan. In each
case, the loan officer is responsible for recommending a credit
risk rating for each loan and ensuring the credit risk ratings are
appropriate. These credit risk ratings are then reviewed and
approved by the bank's chief credit officer or the director's loan
committee. Credit risk ratings are determined by evaluating a
number of factors including a borrower's financial strength, cash
flow coverage, collateral protection and guarantees. The Company's
credit risk rating scale is one through ten with higher scores
indicating higher risk. In the case of loans rated six or worse
following modification, the Company's Managed Assets Division
evaluates the loan and the credit risk rating and determines that
the loan has been restructured to be reasonably assured of
repayment and of performance according to the modified terms and is
supported by a current, well-documented credit assessment of the
borrower's financial condition and prospects for repayment under
the revised terms.
A modification of a loan with an existing credit risk rating of
six or worse or a modification of any other credit, which will
result in a restructured credit risk rating of six or worse must be
reviewed for troubled debt restructuring ("TDR") classification. In
that event, our Managed Assets Division conducts an overall credit
and collateral review. A modification of a loan is considered to be
a TDR if both (1) the borrower is experiencing financial difficulty
and (2) for economic or legal reasons, the bank grants a concession
to a borrower that it would not otherwise consider. The
modification of a loan where the credit risk rating is five or
better both before and after such modification are not reviewed for
TDR status. Based on the Company's credit risk rating system, it
considers that borrowers whose credit risk rating is five or better
are not experiencing financial difficulties and therefore, are not
considered TDRs.
TDRs are reviewed at the time of modification and on a quarterly
basis to determine if a specific reserve is needed. The
carrying amount of the loan is compared to the expected payments to
be received, discounted at the loan's original rate, or for
collateral dependent loans, to the fair value of the collateral.
Any shortfall is recorded as a specific reserve.
All credits determined to be a TDR will continue to be
classified as a TDR in all subsequent periods, unless the borrower
has been in compliance with the loan's modified terms for a period
of six months (including over a calendar year-end) and the modified
interest rate represented a market rate at the time of a
restructuring. The Managed Assets Division, in consultation with
the respective loan officer, determines whether the modified
interest rate represented a current market rate at the time of
restructuring. Using knowledge of current market conditions and
rates, competitive pricing on recent loan originations, and an
assessment of various characteristics of the modified loan
(including collateral position and payment history), an appropriate
market rate for a new borrower with similar risk is
determined. If the modified interest rate meets or exceeds
this market rate for a new borrower with similar risk, the modified
interest rate represents a market rate at the time of
restructuring. Additionally, before removing a loan from TDR
classification, a review of the current or previously measured
impairment on the loan and any concerns related to future
performance by the borrower is conducted. If concerns exist about
the future ability of the borrower to meet its obligations under
the loans based on a credit review by the Managed Assets Division,
the TDR classification is not removed from the loan.
Each restructured loan was reviewed for impairment at March 31,
2012 and approximately $2.7 million of impairment was present and
appropriately reserved for through the Company's normal reserving
methodology in the Company's allowance for loan losses.
Other Real Estate Owned
The table below presents a summary of other real estate owned,
excluding covered other real estate owned, as of March 31, 2012 and
shows the activity for the respective period and the balance for
each property type:
| |
| |
Three Months Ended |
| |
March 31, |
December 31, |
March 31, |
| (Dollars in thousands) |
2012 |
2011 |
2011 |
| Balance at beginning of period |
$ 86,523 |
$ 96,924 |
$ 71,214 |
| Disposals/resolved |
(11,681) |
(7,722) |
(11,515) |
| Transfers in at fair value,
less costs to sell |
6,876 |
6,084 |
28,865 |
| Additions from acquisition |
-- |
-- |
-- |
| Fair value adjustments |
(5,482) |
(8,763) |
(3,274) |
| Balance at end of period |
$ 76,236 |
$ 86,523 |
$ 85,290 |
| |
|
|
|
| |
Period
End |
| |
March 31, |
December 31, |
March 31, |
| Balance by Property Type |
2012 |
2011 |
2011 |
| Residential real estate |
$ 6,647 |
$ 7,327 |
$ 10,570 |
| Residential real estate development |
14,764 |
19,923 |
17,808 |
| Commercial real estate |
54,825 |
59,273 |
56,912 |
| Total |
$ 76,236 |
$ 86,523 |
$ 85,290 |
| |
Covered Assets
In conjunction with FDIC-assisted transactions, the Company
entered into loss share agreements with the FDIC. These agreements
cover realized losses on loans, foreclosed real estate and certain
other assets. These loss share assets are measured separately from
the loan portfolios because they are not contractually embedded in
the loans and are not transferable with the loans should the
Company choose to dispose of them. Fair values at the acquisition
dates were estimated based on projected cash flows available for
loss-share based on the credit adjustments estimated for each loan
pool and the loss share percentages. The loss share assets are also
separately measured from the related loans and foreclosed real
estate and recorded separately on the Consolidated Statements of
Condition. Subsequent to the acquisition date, reimbursements
received from the FDIC for actual incurred losses will reduce the
loss share assets. Additional expected losses, to the extent such
expected losses result in the recognition of an allowance for loan
losses, will increase the loss share assets. The loss share
agreements with the FDIC require the Company to reimburse the FDIC
in the event that actual losses on covered assets are lower than
the original loss estimates agreed upon with the FDIC with respect
of such assets in the loss share agreements. The allowance for loan
losses for loans acquired in FDIC-assisted transactions is
determined without giving consideration to the amounts recoverable
through loss share agreements (since the loss share agreements are
separately accounted for and thus presented "gross" on the balance
sheet). On the Consolidated Statements of Income, the provision for
credit losses is reported net of changes in the amount recoverable
under the loss share agreements. Reductions to expected losses, to
the extent such reductions to expected losses are the result of an
improvement to the actual or expected cash flows from the covered
assets, will reduce the loss share assets. The increases in cash
flows for the purchased loans are recognized as interest income
prospectively.
The following table provides a comparative analysis for the
period end balances of the covered asset components and any changes
in the allowance for covered loan losses.
| |
| |
March 31, |
December 31, |
March 31, |
| (Dollars in thousands) |
2012 |
2011 |
2011 |
| |
|
|
|
| Period End Balances: |
|
|
|
| Loans |
$ 691,220 |
$ 651,368 |
$ 431,299 |
| Other real estate owned and
other assets |
40,851 |
47,459 |
36,296 |
| FDIC Indemnification asset |
263,212 |
344,251 |
124,785 |
| Total covered assets |
$ 995,283 |
$ 1,043,078 |
$ 592,380 |
| |
|
|
|
| Allowance for Covered Loan Losses
Rollforward: |
|
|
|
| Balance at beginning of
quarter |
$ 12,977 |
$ 12,496 |
$ -- |
| Provision for covered loan
losses before benefit attributable to FDIC loss share
agreements |
11,229 |
10,693 |
4,844 |
| Benefit attributable to FDIC
loss share agreements |
(8,983) |
(8,554) |
(3,876) |
| Net provision for covered loan
losses |
2,246 |
2,139 |
968 |
| Increase in FDIC
indemnification asset |
8,983 |
8,554 |
3,876 |
| Loans charged-off |
(6,523) |
(10,212) |
-- |
| Recoveries of loans
charged-off |
52 |
-- |
-- |
| Net charge-offs |
(6,471) |
(10,212) |
-- |
| Balance at end of quarter |
$ 17,735 |
$ 12,977 |
$ 4,844 |
| |
Changes in Accretable Yield
The excess of cash flows expected to be collected over the
carrying value of loans accounted for under ASC 310-30 is referred
to as the accretable yield and is recognized in interest income
using an effective yield method over the remaining life of the
loan, or pool of loans. The accretable yield is affected by:
- Changes in interest rate indices for variable rate loans
accounted for under ASC 310-30 – Expected future cash flows are
based on the variable rates in effect at the time of the regular
evaluations of cash flows expected to be collected;
- Changes in prepayment assumptions – Prepayments affect the
estimated life of loans accounted for under ASC 310-30 which may
change the amount of interest income, and possibly principal,
expected to be collected; and
- Changes in the expected principal and interest payments over
the estimated life – Updates to expected cash flows are driven by
the credit outlook and actions taken with borrowers. Changes in
expected future cash flows from loan modifications are included in
the regular evaluations of cash flows expected to be
collected.
The following table provides activity for the accretable yield
of loans accounted for under ASC 310-30.
| |
Three Months
Ended |
Three Months
Ended |
| |
March 31,
2012 |
March 31,
2011 |
| |
|
Life Insurance |
|
Life Insurance |
| |
Bank |
Premium |
Bank |
Premium |
| (Dollars in thousands) |
Acquisitions |
Finance Loans |
Acquisitions |
Finance Loans |
| |
|
|
|
|
| Accretable yield, beginning balance |
$ 173,120 |
$ 18,861 |
$ 39,809 |
$ 33,315 |
| Acquisitions |
2,288 |
-- |
7,107 |
-- |
| Accretable yield amortized to interest
income |
(14,892) |
(3,737) |
(7,072) |
(9,052) |
| Accretable yield amortized to indemnification
asset(1) |
(21,377) |
-- |
(7,087) |
-- |
| Reclassification from non-accretable
difference(2) |
41,601 |
-- |
48,844 |
184 |
| Increases in interest cash flows due to
payments and changes in interest rates |
1,482 |
724 |
9,731 |
1,096 |
| Accretable yield, ending balance |
$ 182,222 |
$ 15,848 |
$ 91,332 |
$ 25,543 |
| |
|
|
|
|
| (1) Represents the portion of the
current period accreted yield, resulting from lower expected
losses, applied to reduce the loss share indemnification asset |
| (2) Reclassification is the
result of subsequent increases in expected principal cash
flows. |
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,
Schaumburg Bank & Trust Company, N.A., 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, Elgin, Frankfort, Geneva, Glencoe,
Glen Ellyn, Gurnee, Grayslake, Hanover Park, Highland Park,
Highwood, Hoffman Estates, Island Lake, Itasca, Lake Bluff, Lake
Villa, Lincoln Park, Lindenhurst, McHenry, Mokena, Mount Prospect,
Mundelein, Naperville, North Chicago, Northfield, Norridge,
Palatine, Park Ridge, Prospect Heights, Ravenswood, Ravinia,
Riverside, Rogers Park, Roselle, Sauganash, Skokie, Spring Grove,
Vernon Hills, Wauconda, Western Springs, Willowbrook, Winnetka and
Wood Dale and in Delafield, Elm Grove, Madison, 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, a division of Barrington Bank &
Trust Company, engages primarily in the origination and purchase of
residential mortgages for sale into the secondary market through
origination offices located throughout the United
States. Loans are also originated nationwide through
relationships with wholesale and correspondent offices. Wayne
Hummer Investments, LLC is a broker-dealer providing a full range
of private client and brokerage services to clients and
correspondent banks located primarily in the Midwest. Great Lakes
Advisors 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. The Chicago 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 2010
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, organic
growth and plans to form additional de novo banks or branch
offices. Actual results could differ materially from those
addressed in the forward-looking statements as a result of numerous
factors, including the following:
- negative economic conditions that adversely affect the economy,
housing prices, the job market and other factors that may affect
the Company's liquidity and the performance of its loan portfolios,
particularly in the markets in which it operates;
- the extent of defaults and losses on the Company's loan
portfolio, which may require further increases in its allowance for
credit losses;
- estimates of fair value of certain of the Company's assets and
liabilities, which could change in value significantly from period
to period;
- the financial success and economic viability of the borrowers
of our commercial loans;
- the extent of commercial and consumer delinquencies and
declines in real estate values, which may require further increases
in the Company's allowance for loan and lease losses;
- changes in the level and volatility of interest rates, the
capital markets and other market indices that may affect, among
other things, the Company's liquidity and the value of its assets
and liabilities;
- competitive pressures in the financial services business which
may affect the pricing of the Company's loan and deposit products
as well as its services (including wealth management services);
- failure to identify and complete favorable acquisitions in the
future or unexpected difficulties or developments related to the
integration of recent or future acquisitions;
- unexpected difficulties and losses related to FDIC-assisted
acquisitions, including those resulting from our loss- sharing
arrangements with the FDIC;
- any negative perception of the Company's reputation or
financial strength;
- ability to raise capital on acceptable terms when needed;
- disruption in capital markets, which may lower fair values for
the Company's investment portfolio;
- ability to use technology to provide products and services that
will satisfy customer demands and create efficiencies in
operations;
- adverse effects on our information technology systems resulting
from failures, human error or tampering;
- accuracy and completeness of information the Company receives
about customers and counterparties to make credit decisions;
- the ability of the Company to attract and retain senior
management experienced in the banking and financial services
industries;
- environmental liability risk associated with lending
activities;
- losses incurred in connection with repurchases and
indemnification payments related to mortgages;
- the loss of customers as a result of technological changes
allowing consumers to complete their financial transactions without
the use of a bank;
- the soundness of other financial institutions;
- the possibility that certain European Union member states will
default on their debt obligations, which may affect the Company's
liquidity, financial conditions and results of operations;
- 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, startup phase of generating deposits and the
time lag typically involved in redeploying deposits into
attractively priced loans and other higher yielding earning assets;
- examinations and challenges by tax authorities;
- changes in accounting standards, rules and interpretations and
the impact on the Company's financial statements;
- the ability of the Company to receive dividends from its
subsidiaries;
- a decrease in the Company's regulatory capital ratios,
including as a result of further declines in the value of
its loan portfolios, or otherwise;
- legislative or regulatory changes, particularly changes in
regulation of financial services companies and/or the products and
services offered by financial services companies, including those
resulting from the Dodd-Frank Act;
- restrictions upon our ability to market our products to
consumers and limitations on our ability to profitably operate our
mortgage business resulting from the Dodd-Frank Act;
- increased costs of compliance, heightened regulatory capital
requirements and other risks associated with changes in regulation
and the current regulatory environment, including the Dodd-Frank
Act;
- changes in capital requirements resulting from Basel II and III
initiatives;
- increases in the Company's FDIC insurance premiums, or the
collection of special assessments by the FDIC;
- delinquencies or fraud with respect to the Company's premium
finance business;
- credit downgrades among commercial and life insurance providers
that could negatively affect the value of collateral securing the
Company's premium finance loans;
- the Company's ability to comply with covenants under its
securitization facility and credit facility;
- fluctuations in the stock market, which may have an adverse
impact on the Company's wealth management business and brokerage
operation; and
- significant litigation involving the Company.
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)
Thursday, April 19, 2012 regarding first quarter 2012 results.
Individuals interested in listening should call (877) 363-5049 and
enter Conference ID #71502300. 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 Relations, Investor
News and Events, Presentations & Conference Calls. The text of
the first quarter 2012 earnings press release will be available on
the home page of the Company's website at (http://www.wintrust.com)
and at the Investor Relations, Investor News and Events, Press
Releases link on its website.
WINTRUST FINANCIAL
CORPORATION
Supplemental Financial
Information
5 Quarter Trends
| WINTRUST FINANCIAL
CORPORATION - Supplemental Financial Information |
| Selected Financial Highlights - 5
Quarter Trends |
|
| (Dollars in thousands, except
per share data) |
Three Months Ended |
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
| |
2012 |
2011 |
2011 |
2011 |
2011 |
| Selected Financial Condition Data (at
end of period): |
|
|
|
|
|
| Total assets |
$ 16,172,018 |
$ 15,893,808 |
$ 15,914,804 |
$ 14,615,897 |
$ 14,094,294 |
| Total loans, excluding covered loans |
10,717,384 |
10,521,377 |
10,272,711 |
9,925,077 |
9,561,802 |
| Total deposits |
12,665,853 |
12,307,267 |
12,306,008 |
11,259,260 |
10,915,169 |
| Junior subordinated debentures |
249,493 |
249,493 |
249,493 |
249,493 |
249,493 |
| Total shareholders' equity |
1,687,921 |
1,543,533 |
1,528,187 |
1,473,386 |
1,453,253 |
| Selected Statements of Income
Data: |
|
|
|
|
|
| Net interest income |
125,895 |
124,647 |
118,410 |
108,706 |
109,614 |
| Net revenue (1) |
172,918 |
169,559 |
185,657 |
145,358 |
150,501 |
| Pre-tax adjusted earnings (2) |
63,688 |
59,362 |
57,524 |
52,860 |
51,032 |
| Net income |
23,210 |
19,221 |
30,202 |
11,750 |
16,402 |
| Net income per common share – Basic |
$ 0.61 |
$ 0.51 |
$ 0.82 |
$ 0.31 |
$ 0.44 |
| Net income per common share –
Diluted |
$ 0.50 |
$ 0.41 |
$ 0.65 |
$ 0.25 |
$ 0.36 |
| Selected Financial Ratios and Other
Data: |
|
|
|
|
|
| Performance Ratios: |
|
|
|
|
|
| Net interest margin (2) |
3.55% |
3.45% |
3.37% |
3.40% |
3.48% |
| Non-interest income to average assets |
1.19% |
1.11% |
1.72% |
1.04% |
1.18% |
| Non-interest expense to average
assets |
2.99% |
2.94% |
2.72% |
2.76% |
2.84% |
| Net overhead ratio (2) (3) |
1.80% |
1.83% |
1.00% |
1.72% |
1.66% |
| Net overhead ratio - pre-tax adjusted
earnings (2) (3) |
1.58% |
1.62% |
1.56% |
1.59% |
1.69% |
| Efficiency ratio - FTE (2) (4) |
68.24% |
69.99% |
57.21% |
67.22% |
65.05% |
| Efficiency ratio - pre-tax adjusted earnings
(2) (4) |
62.31% |
64.76% |
63.69% |
62.81% |
63.56% |
| Return on average assets |
0.59% |
0.48% |
0.77% |
0.33% |
0.47% |
| Return on average common equity |
5.90% |
4.87% |
7.94% |
3.05% |
4.49% |
| Average total assets |
$ 15,835,350 |
$ 16,014,209 |
$ 15,526,427 |
$ 14,105,136 |
$ 14,018,525 |
| Average total shareholders' equity |
1,564,662 |
1,531,936 |
1,507,717 |
1,460,071 |
1,437,869 |
| Average loans to average deposits ratio |
88.1% |
86.6% |
85.0% |
90.9% |
91.2% |
| Average loans to average deposits ratio
(including covered loans) |
93.5 |
91.9 |
90.7 |
94.8 |
94.2 |
| Common Share Data at end of
period: |
|
|
|
|
|
| Market price per common share |
$ 35.79 |
$ 28.05 |
$ 25.81 |
$ 32.18 |
$ 36.75 |
| Book value per common share (2) |
$ 35.25 |
$ 34.23 |
$ 33.92 |
$ 33.63 |
$ 33.70 |
| Tangible common book value per share (2) |
$ 27.57 |
$ 26.72 |
$ 26.47 |
$ 26.67 |
$ 26.65 |
| Common shares outstanding |
36,289,380 |
35,978,349 |
35,924,066 |
34,988,125 |
34,947,251 |
| Other Data at end of period:(8) |
|
|
|
|
|
| Leverage Ratio (5) |
10.5% |
9.4% |
9.6% |
10.3% |
10.3% |
| Tier 1 Capital to risk-weighted assets
(5) |
13.0% |
12.0% |
12.0% |
12.3% |
12.7% |
| Total capital to risk-weighted assets
(5) |
14.2% |
13.2% |
13.3% |
13.5% |
14.1% |
| Tangible common equity ratio (TCE) (2)
(7) |
7.5% |
7.5% |
7.4% |
7.9% |
8.0% |
| Tangible common equity ratio, assuming full
conversion of preferred stock (2) (7) |
8.6% |
7.8% |
7.7% |
8.2% |
8.4% |
| Allowance for credit losses (6) |
$ 124,101 |
$ 123,612 |
$ 132,051 |
$ 119,697 |
$ 117,067 |
| Non-performing loans |
113,621 |
120,084 |
133,976 |
156,072 |
155,387 |
| Allowance for credit losses to total loans
(6) |
1.16% |
1.17% |
1.29% |
1.21% |
1.22% |
| Non-performing loans to total loans |
1.06% |
1.14% |
1.30% |
1.57% |
1.63% |
| Number of: |
|
|
|
|
|
| Bank subsidiaries |
15 |
15 |
15 |
15 |
15 |
| Non-bank subsidiaries |
7 |
7 |
7 |
7 |
8 |
| Banking offices |
98 |
99 |
99 |
88 |
88 |
| (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, but excluding
the allowance for covered loan losses. |
| (7) Total shareholders' equity
minus preferred stock and total intangible assets divided by total
assets minus total intangible assets |
| (8) Asset quality ratios exclude
covered loans. |
| |
|
|
|
|
|
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Consolidated Statements
of Condition - 5 Quarter Trends |
| |
|
|
|
|
|
| |
(Unaudited) |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
| (In thousands) |
2012 |
2011 |
2011 |
2011 |
2011 |
| Assets |
|
|
|
|
|
| Cash and due from banks |
$ 146,014 |
$ 148,012 |
$ 147,270 |
$ 140,434 |
$ 140,919 |
| Federal funds sold and securities purchased
under resale agreements |
14,588 |
21,692 |
13,452 |
43,634 |
33,575 |
| Interest-bearing deposits with other
banks |
900,755 |
749,287 |
1,101,353 |
990,308 |
946,193 |
| Available-for-sale securities, at fair
value |
1,869,344 |
1,291,797 |
1,267,682 |
1,456,426 |
1,710,321 |
| Trading account securities |
1,140 |
2,490 |
297 |
509 |
2,229 |
| Federal Home Loan Bank and Federal Reserve
Bank stock, at cost |
88,216 |
100,434 |
99,749 |
86,761 |
85,144 |
| Brokerage customer receivables |
31,085 |
27,925 |
27,935 |
29,736 |
25,361 |
| Mortgage loans held-for-sale, at fair
value |
339,600 |
306,838 |
204,081 |
133,083 |
92,151 |
| Mortgage loans held-for-sale, at lower of
cost or market |
10,728 |
13,686 |
8,955 |
5,881 |
2,335 |
| Loans, net of unearned income, excluding
covered loans |
10,717,384 |
10,521,377 |
10,272,711 |
9,925,077 |
9,561,802 |
| Covered loans |
691,220 |
651,368 |
680,075 |
408,669 |
431,299 |
| Total loans |
11,408,604 |
11,172,745 |
10,952,786 |
10,333,746 |
9,993,101 |
| Less: Allowance for loan
losses |
111,023 |
110,381 |
118,649 |
117,362 |
115,049 |
| Less: Allowance for
covered loan losses |
17,735 |
12,977 |
12,496 |
7,443 |
4,844 |
| Net loans |
11,279,846 |
11,049,387 |
10,821,641 |
10,208,941 |
9,873,208 |
| Premises and equipment, net |
434,700 |
431,512 |
412,478 |
403,577 |
369,785 |
| FDIC indemnification asset |
263,212 |
344,251 |
379,306 |
110,049 |
124,785 |
| Accrued interest receivable and other
assets |
463,394 |
444,912 |
468,711 |
389,634 |
394,292 |
| Trade date securities receivable |
-- |
634,047 |
637,112 |
322,091 |
-- |
| Goodwill |
307,295 |
305,468 |
302,369 |
283,301 |
281,940 |
| Other intangible assets |
22,101 |
22,070 |
22,413 |
11,532 |
12,056 |
| Total
assets |
$ 16,172,018 |
$ 15,893,808 |
$ 15,914,804 |
$ 14,615,897 |
$ 14,094,294 |
| |
|
|
|
|
|
| Liabilities and Shareholders'
Equity |
|
|
|
|
|
| Deposits: |
|
|
|
|
|
| Non-interest bearing |
$ 1,901,753 |
$ 1,785,433 |
$ 1,631,709 |
$ 1,397,433 |
$ 1,279,256 |
| Interest bearing |
10,764,100 |
10,521,834 |
10,674,299 |
9,861,827 |
9,635,913 |
| Total deposits |
12,665,853 |
12,307,267 |
12,306,008 |
11,259,260 |
10,915,169 |
| Notes payable |
52,639 |
52,822 |
3,004 |
1,000 |
1,000 |
| Federal Home Loan Bank
advances |
466,391 |
474,481 |
474,570 |
423,500 |
423,500 |
| Other borrowings |
411,037 |
443,753 |
448,082 |
432,706 |
250,032 |
| Secured borrowings - owed to
securitization investors |
428,000 |
600,000 |
600,000 |
600,000 |
600,000 |
| Subordinated notes |
35,000 |
35,000 |
40,000 |
40,000 |
50,000 |
| Junior subordinated
debentures |
249,493 |
249,493 |
249,493 |
249,493 |
249,493 |
| Trade date securities
payable |
-- |
47 |
73,874 |
2,243 |
10,000 |
| Accrued
interest payable and other liabilities |
175,684 |
187,412 |
191,586 |
134,309 |
141,847 |
| Total liabilities |
14,484,097 |
14,350,275 |
14,386,617 |
13,142,511 |
12,641,041 |
| |
|
|
|
|
|
| Shareholders' Equity: |
|
|
|
|
|
| Preferred stock |
176,302 |
49,768 |
49,736 |
49,704 |
49,672 |
| Common stock |
36,522 |
35,982 |
35,926 |
34,988 |
34,947 |
| Surplus |
1,008,326 |
1,001,316 |
997,854 |
969,315 |
967,587 |
| Treasury stock |
(6,559) |
(112) |
(68) |
(50) |
(74) |
| Retained earnings |
478,160 |
459,457 |
441,268 |
415,297 |
404,580 |
| Accumulated
other comprehensive (loss) income |
(4,830) |
(2,878) |
3,471 |
4,132 |
(3,459) |
| Total shareholders'
equity |
1,687,921 |
1,543,533 |
1,528,187 |
1,473,386 |
1,453,253 |
| Total liabilities
and shareholders' equity |
$ 16,172,018 |
$ 15,893,808 |
$ 15,914,804 |
$ 14,615,897 |
$ 14,094,294 |
| |
|
|
|
|
|
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Consolidated Statements
of Income (Unaudited) - 5 Quarter Trends |
| |
| |
Three Months Ended |
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
| (In thousands, except per share
data) |
2012 |
2011 |
2011 |
2011 |
2011 |
| Interest income |
|
|
|
|
|
| Interest and fees on loans |
$ 143,555 |
$ 143,514 |
$ 140,543 |
$ 132,338 |
$ 136,543 |
| Interest bearing deposits with
banks |
248 |
696 |
917 |
870 |
936 |
| Federal funds sold and
securities purchased under resale agreements |
12 |
33 |
28 |
23 |
32 |
| Securities |
11,847 |
12,574 |
12,667 |
11,438 |
9,540 |
| Trading account securities |
9 |
6 |
15 |
10 |
13 |
| Federal Home Loan Bank and
Federal Reserve Bank stock |
604 |
591 |
584 |
572 |
550 |
| Brokerage
customer receivables |
211 |
203 |
197 |
194 |
166 |
| Total interest
income |
156,486 |
157,617 |
154,951 |
145,445 |
147,780 |
| Interest expense |
|
|
|
|
|
| Interest on deposits |
18,030 |
19,685 |
21,893 |
22,404 |
23,956 |
| Interest on Federal Home Loan
Bank advances |
3,584 |
4,186 |
4,166 |
4,010 |
3,958 |
| Interest on notes payable and
other borrowings |
3,102 |
2,804 |
2,874 |
2,715 |
2,630 |
| Interest on secured borrowings
- owed to securitization investors |
2,549 |
3,076 |
3,003 |
2,994 |
3,040 |
| Interest on subordinated
notes |
169 |
176 |
168 |
194 |
212 |
| Interest on
junior subordinated debentures |
3,157 |
3,043 |
4,437 |
4,422 |
4,370 |
| Total interest
expense |
30,591 |
32,970 |
36,541 |
36,739 |
38,166 |
| Net interest income |
125,895 |
124,647 |
118,410 |
108,706 |
109,614 |
| Provision for credit
losses |
17,400 |
18,817 |
29,290 |
29,187 |
25,344 |
| Net interest income after provision for
credit losses |
108,495 |
105,830 |
89,120 |
79,519 |
84,270 |
| Non-interest income |
|
|
|
|
|
| Wealth management |
12,401 |
11,686 |
11,994 |
10,601 |
10,236 |
| Mortgage banking |
18,534 |
18,025 |
14,469 |
12,817 |
11,631 |
| Service charges on deposit
accounts |
4,208 |
3,973 |
4,085 |
3,594 |
3,311 |
| Gains on available-for-sale
securities, net |
816 |
309 |
225 |
1,152 |
106 |
| Gain on bargain purchases |
840 |
-- |
27,390 |
746 |
9,838 |
| Trading gains (losses) |
146 |
216 |
591 |
(30) |
(440) |
| Other |
10,078 |
10,703 |
8,493 |
7,772 |
6,205 |
| Total non-interest
income |
47,023 |
44,912 |
67,247 |
36,652 |
40,887 |
| Non-interest expense |
|
|
|
|
|
| Salaries and employee
benefits |
69,030 |
66,744 |
61,863 |
53,079 |
56,099 |
| Equipment |
5,400 |
5,093 |
4,501 |
4,409 |
4,264 |
| Occupancy, net |
8,062 |
7,975 |
7,512 |
6,772 |
6,505 |
| Data processing |
3,618 |
4,062 |
3,836 |
3,147 |
3,523 |
| Advertising and marketing |
2,006 |
3,207 |
2,119 |
1,440 |
1,614 |
| Professional fees |
3,604 |
3,710 |
5,085 |
4,533 |
3,546 |
| Amortization of other
intangible assets |
1,049 |
1,062 |
970 |
704 |
689 |
| FDIC insurance |
3,357 |
3,244 |
3,100 |
3,281 |
4,518 |
| OREO expenses, net |
7,178 |
8,821 |
5,134 |
6,577 |
5,808 |
| Other |
14,455 |
14,850 |
12,201 |
13,264 |
11,543 |
| Total non-interest
expense |
117,759 |
118,768 |
106,321 |
97,206 |
98,109 |
| Income before taxes |
37,759 |
31,974 |
50,046 |
18,965 |
27,048 |
| Income tax expense |
14,549 |
12,753 |
19,844 |
7,215 |
10,646 |
| Net income |
$ 23,210 |
$ 19,221 |
$ 30,202 |
$ 11,750 |
$ 16,402 |
| Preferred stock dividends and discount
accretion |
$ 1,246 |
$ 1,032 |
$ 1,032 |
$ 1,033 |
$ 1,031 |
| Net income applicable to common
shares |
$ 21,964 |
$ 18,189 |
$ 29,170 |
$ 10,717 |
$ 15,371 |
| Net income per common share -
Basic |
$ 0.61 |
$ 0.51 |
$ 0.82 |
$ 0.31 |
$ 0.44 |
| Net income per common share -
Diluted |
$ 0.50 |
$ 0.41 |
$ 0.65 |
$ 0.25 |
$ 0.36 |
| Cash dividends declared per
common share |
$ 0.09 |
$ -- |
$ 0.09 |
$ -- |
$ 0.09 |
| Weighted average common shares
outstanding |
36,207 |
35,958 |
35,550 |
34,971 |
34,928 |
| Dilutive potential common
shares |
7,530 |
8,480 |
10,551 |
8,438 |
7,794 |
| Average common shares and dilutive
common shares |
43,737 |
44,438 |
46,101 |
43,409 |
42,722 |
| |
|
|
|
|
|
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Period End Loan Balances
- 5 Quarter Trends |
| |
|
|
|
|
|
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
| (Dollars in thousands) |
2012 |
2011 |
2011 |
2011 |
2011 |
|
Balance: |
|
|
|
|
|
| Commercial |
$ 2,544,456 |
$ 2,498,313 |
$ 2,337,098 |
$ 2,132,436 |
$ 1,937,561 |
| Commercial real estate |
3,585,760 |
3,514,261 |
3,465,321 |
3,374,668 |
3,356,562 |
| Home equity |
840,364 |
862,345 |
879,180 |
880,702 |
891,332 |
| Residential real-estate |
361,327 |
350,289 |
326,207 |
329,381 |
344,909 |
| Premium finance receivables -
commercial |
1,512,630 |
1,412,454 |
1,417,572 |
1,429,436 |
1,337,851 |
| Premium finance receivables -
life insurance |
1,693,763 |
1,695,225 |
1,671,443 |
1,619,668 |
1,539,521 |
| Indirect consumer (1) |
67,445 |
64,545 |
62,452 |
57,718 |
52,379 |
| Consumer and other |
111,639 |
123,945 |
113,438 |
101,068 |
101,687 |
| Total loans, net of unearned
income, excluding covered loans |
$ 10,717,384 |
$ 10,521,377 |
$ 10,272,711 |
$ 9,925,077 |
$ 9,561,802 |
| Covered loans |
691,220 |
651,368 |
680,075 |
408,669 |
431,299 |
| Total loans, net of unearned
income |
$ 11,408,604 |
$ 11,172,745 |
$ 10,952,786 |
$ 10,333,746 |
$ 9,993,101 |
| |
|
|
|
|
|
| Mix: |
|
|
|
|
|
| Commercial |
22% |
22% |
21% |
20% |
19% |
| Commercial real estate |
32 |
31 |
32 |
33 |
34 |
| Home equity |
7 |
8 |
8 |
8 |
9 |
| Residential real-estate |
3 |
3 |
3 |
3 |
4 |
| Premium finance receivables -
commercial |
13 |
13 |
13 |
14 |
13 |
| Premium finance receivables -
life insurance |
15 |
15 |
15 |
16 |
15 |
| Indirect consumer (1) |
1 |
1 |
1 |
1 |
1 |
| Consumer and other |
1 |
1 |
1 |
1 |
1 |
| Total loans, net of unearned
income, excluding covered loans |
94% |
94% |
94% |
96% |
96% |
| Covered loans |
6 |
6 |
6 |
4 |
4 |
| Total loans, net of unearned
income |
100% |
100% |
100% |
100% |
100% |
| |
|
|
|
|
|
| (1) Includes autos, boats,
snowmobiles and other indirect consumer loans. |
| |
| |
|
|
|
|
|
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Period End Deposits
Balances - 5 Quarter Trends |
| |
|
|
|
|
|
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
| (Dollars in thousands) |
2012 |
2011 |
2011 |
2011 |
2011 |
|
Balance: |
|
|
|
|
|
| Non-interest bearing |
$ 1,901,753 |
$ 1,785,433 |
$ 1,631,709 |
$ 1,397,433 |
$ 1,279,256 |
| NOW |
1,756,313 |
1,698,778 |
1,633,752 |
1,530,068 |
1,526,955 |
| Wealth Management deposits
(1) |
933,609 |
788,311 |
730,315 |
737,428 |
659,194 |
| Money Market |
2,306,726 |
2,263,253 |
2,190,117 |
1,985,661 |
1,844,416 |
| Savings |
943,066 |
888,592 |
867,483 |
736,974 |
749,681 |
| Time certificates of
deposit |
4,824,386 |
4,882,900 |
5,252,632 |
4,871,696 |
4,855,667 |
| Total deposits |
$ 12,665,853 |
$ 12,307,267 |
$ 12,306,008 |
$ 11,259,260 |
$ 10,915,169 |
| |
|
|
|
|
|
| Mix: |
|
|
|
|
|
| Non-interest bearing |
15% |
15% |
13% |
12% |
12% |
| NOW |
14 |
14 |
13 |
14 |
14 |
| Wealth Management deposits
(1) |
7 |
6 |
6 |
6 |
6 |
| Money Market |
18 |
18 |
18 |
18 |
17 |
| Savings |
8 |
7 |
7 |
7 |
7 |
| Time certificates of
deposit |
38 |
40 |
43 |
43 |
44 |
| Total deposits |
100% |
100% |
100% |
100% |
100% |
| (1) Represents
deposit balances of the Company's subsidiary banks from brokerage
customers of Wayne Hummer Investments, trust and asset management
customers of The Chicago Trust Company and brokerage customers from
unaffiliated companies which have been placed into deposit accounts
of the Banks. |
| |
|
|
|
|
|
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Net Interest Margin
(Including Call Option Income) - 5 Quarter Trends |
| |
Three Months Ended |
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
| (Dollars in thousands) |
2012 |
2011 |
2011 |
2011 |
2011 |
| |
|
|
|
|
|
| Net interest income |
$ 126,361 |
$ 125,101 |
$ 118,828 |
$ 109,114 |
$ 110,028 |
| Call option income |
3,123 |
5,377 |
3,436 |
2,287 |
2,470 |
| Net interest income including call option
income |
$ 129,484 |
$ 130,478 |
$ 122,264 |
$ 111,401 |
$ 112,498 |
| |
|
|
|
|
|
| Yield on earning assets |
4.41% |
4.36% |
4.41% |
4.54% |
4.68% |
| Rate on interest-bearing liabilities |
1.00 |
1.05 |
1.18 |
1.32 |
1.39 |
| Rate spread |
3.41% |
3.31% |
3.23% |
3.22% |
3.29% |
| Net free funds contribution |
0.14 |
0.14 |
0.14 |
0.18 |
0.19 |
| Net interest margin |
3.55 |
3.45 |
3.37 |
3.40 |
3.48 |
| Call option income |
0.09 |
0.15 |
0.10 |
0.07 |
0.08 |
| Net interest margin including call option
income |
3.64% |
3.60% |
3.47% |
3.47% |
3.56% |
| |
| |
|
|
|
|
|
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Net Interest Margin
(Including Call Option Income - YTD Trends) |
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Three Months Ended |
Years Ended |
| |
March 31, |
December 31, |
| (Dollars in thousands) |
2012 |
2011 |
2010 |
2009 |
2008 |
| |
|
|
|
|
|
| Net interest income |
$ 126,361 |
$ 463,071 |
$ 417,564 |
$ 314,096 |
$ 247,054 |
| Call option income |
3,123 |
13,570 |
2,235 |
1,998 |
29,024 |
| Net interest income including call option
income |
$ 129,484 |
$ 476,641 |
$ 419,799 |
$ 316,094 |
$ 276,078 |
| |
|
|
|
|
|
| Yield on earning assets |
4.41% |
4.49% |
4.80% |
5.07% |
5.88% |
| Rate on interest-bearing liabilities |
1.00 |
1.23 |
1.61 |
2.29 |
3.31 |
| Rate spread |
3.41% |
3.26% |
3.19% |
2.78% |
2.57% |
| Net free funds contribution |
0.14 |
0.16 |
0.18 |
0.23 |
0.24 |
| Net interest margin |
3.55 |
3.42 |
3.37 |
3.01 |
2.81 |
| Call option income |
0.09 |
0.10 |
0.02 |
0.02 |
0.33 |
| Net interest margin including call option
income |
3.64% |
3.52% |
3.39% |
3.03% |
3.14% |
| |
| |
|
|
|
|
|
| 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) |
2012 |
2011 |
2011 |
2011 |
2011 |
| Liquidity management assets |
$ 2,756,833 |
$ 3,051,850 |
$ 3,083,508 |
$ 2,591,398 |
$ 2,632,012 |
| Other earning assets |
30,499 |
28,828 |
28,834 |
28,886 |
27,718 |
| Loans, net of unearned income |
10,848,016 |
10,662,516 |
10,200,733 |
9,859,789 |
9,849,309 |
| Covered loans |
667,242 |
652,157 |
680,003 |
418,129 |
326,571 |
| Total earning assets |
$ 14,302,590 |
$ 14,395,351 |
$ 13,993,078 |
$ 12,898,202 |
$ 12,835,610 |
| Allowance for loan losses |
(131,769) |
(137,423) |
(128,848) |
(125,537) |
(118,610) |
| Cash and due from banks |
143,869 |
130,437 |
140,010 |
135,670 |
152,264 |
| Other assets |
1,520,660 |
1,625,844 |
1,522,187 |
1,196,801 |
1,149,261 |
| Total assets |
$ 15,835,350 |
$ 16,014,209 |
$ 15,526,427 |
$ 14,105,136 |
$ 14,018,525 |
| |
|
|
|
|
|
| Interest-bearing deposits |
$ 10,481,822 |
$ 10,563,090 |
$ 10,442,886 |
$ 9,491,778 |
$ 9,542,637 |
| Federal Home Loan Bank advances |
470,345 |
474,549 |
486,379 |
421,502 |
416,021 |
| Notes payable and other borrowings |
505,814 |
468,139 |
461,141 |
338,304 |
266,379 |
| Secured borrowings - owed to securitization
investors |
514,923 |
600,000 |
600,000 |
600,000 |
600,000 |
| Subordinated notes |
35,000 |
38,370 |
40,000 |
45,440 |
50,000 |
| Junior subordinated notes |
249,493 |
249,493 |
249,493 |
249,493 |
249,493 |
| Total interest-bearing
liabilities |
$ 12,257,397 |
$ 12,393,641 |
$ 12,279,899 |
$ 11,146,517 |
$ 11,124,530 |
| Non-interest bearing deposits |
1,832,627 |
1,755,446 |
1,553,769 |
1,349,549 |
1,261,374 |
| Other liabilities |
180,664 |
333,186 |
185,042 |
148,999 |
194,752 |
| Equity |
1,564,662 |
1,531,936 |
1,507,717 |
1,460,071 |
1,437,869 |
| Total liabilities and
shareholders' equity |
$ 15,835,350 |
$ 16,014,209 |
$ 15,526,427 |
$ 14,105,136 |
$ 14,018,525 |
| |
| |
| 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, |
| |
2012 |
2011 |
2011 |
2011 |
2011 |
| Yield earned on: |
|
|
|
|
|
| Liquidity management assets |
1.90% |
1.85% |
1.87% |
2.04% |
1.75% |
| Other earning assets |
2.96 |
2.90 |
2.98 |
2.89 |
2.65 |
| Loans, net of unearned income |
4.77 |
4.78 |
4.97 |
5.05 |
5.34 |
| Covered loans |
8.98 |
9.20 |
7.54 |
8.06 |
8.78 |
| Total earning assets |
4.41% |
4.36% |
4.41% |
4.54% |
4.68% |
| Rate paid on: |
|
|
|
|
|
| Interest-bearing deposits |
0.69% |
0.74% |
0.83% |
0.95% |
1.02% |
| Federal Home Loan Bank advances |
3.06 |
3.50 |
3.40 |
3.82 |
3.86 |
| Notes payable and other borrowings |
2.47 |
2.38 |
2.47 |
3.22 |
4.00 |
| Secured borrowings - owed to securitization
investors |
1.99 |
2.03 |
1.99 |
2.00 |
2.05 |
| Subordinated notes |
1.91 |
1.79 |
1.65 |
1.69 |
1.69 |
| Junior subordinated notes |
5.01 |
4.77 |
6.96 |
7.01 |
7.01 |
| Total interest-bearing
liabilities |
1.00% |
1.05% |
1.18% |
1.32% |
1.39% |
| |
|
|
|
|
|
| Interest rate spread |
3.41% |
3.31% |
3.23% |
3.22% |
3.29% |
| Net free funds/contribution |
0.14 |
0.14 |
0.14 |
0.18 |
0.19 |
| Net interest income/Net interest margin |
3.55% |
3.45% |
3.37% |
3.40% |
3.48% |
| |
| |
|
|
|
|
|
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Non-Interest Income - 5
Quarter Trends |
| |
|
|
|
|
|
| |
Three Months Ended |
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
| (In thousands) |
2012 |
2011 |
2011 |
2011 |
2011 |
| Brokerage |
$ 6,322 |
$ 5,960 |
$ 6,108 |
$ 6,208 |
$ 6,325 |
| Trust and asset management |
6,079 |
5,726 |
5,886 |
4,393 |
3,911 |
| Total wealth management |
12,401 |
11,686 |
11,994 |
10,601 |
10,236 |
| Mortgage banking |
18,534 |
18,025 |
14,469 |
12,817 |
11,631 |
| Service charges on deposit accounts |
4,208 |
3,973 |
4,085 |
3,594 |
3,311 |
| Gains on available-for-sale securities |
816 |
309 |
225 |
1,152 |
106 |
| Gain on bargain purchases |
840 |
-- |
27,390 |
746 |
9,838 |
| Trading gains (losses) |
146 |
216 |
591 |
(30) |
(440) |
| Other: |
|
|
|
|
|
| Fees from covered call
options |
3,123 |
5,377 |
3,436 |
2,287 |
2,470 |
| Bank Owned Life Insurance |
919 |
681 |
351 |
661 |
876 |
| Administrative services |
766 |
789 |
784 |
781 |
717 |
| Miscellaneous |
5,270 |
3,856 |
3,922 |
4,043 |
2,142 |
| Total other income |
10,078 |
10,703 |
8,493 |
7,772 |
6,205 |
| |
|
|
|
|
|
| Total Non-Interest
Income |
$ 47,023 |
$ 44,912 |
$ 67,247 |
$ 36,652 |
$ 40,887 |
|
|
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Non-Interest Expense - 5
Quarter Trends |
| |
|
|
|
|
|
| |
Three Months Ended |
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
| (In thousands) |
2012 |
2011 |
2011 |
2011 |
2011 |
| Salaries and employee benefits: |
|
|
|
|
|
| Salaries |
$ 37,933 |
$ 36,676 |
$ 36,633 |
$ 32,008 |
$ 33,135 |
| Commissions and bonus |
16,802 |
19,263 |
14,984 |
10,760 |
10,714 |
| Benefits |
14,295 |
10,805 |
10,246 |
10,311 |
12,250 |
| Total salaries and employee
benefits |
69,030 |
66,744 |
61,863 |
53,079 |
56,099 |
| Equipment |
5,400 |
5,093 |
4,501 |
4,409 |
4,264 |
| Occupancy, net |
8,062 |
7,975 |
7,512 |
6,772 |
6,505 |
| Data processing |
3,618 |
4,062 |
3,836 |
3,147 |
3,523 |
| Advertising and marketing |
2,006 |
3,207 |
2,119 |
1,440 |
1,614 |
| Professional fees |
3,604 |
3,710 |
5,085 |
4,533 |
3,546 |
| Amortization of other intangible assets |
1,049 |
1,062 |
970 |
704 |
689 |
| FDIC insurance |
3,357 |
3,244 |
3,100 |
3,281 |
4,518 |
| OREO expenses, net |
7,178 |
8,821 |
5,134 |
6,577 |
5,808 |
| Other: |
|
|
|
|
|
| Commissions - 3rd party
brokers |
1,021 |
872 |
936 |
991 |
1,030 |
| Postage |
1,423 |
1,322 |
1,102 |
1,170 |
1,078 |
| Stationery and supplies |
919 |
1,186 |
904 |
888 |
840 |
| Miscellaneous |
11,092 |
11,470 |
9,259 |
10,215 |
8,595 |
| Total other expense |
14,455 |
14,850 |
12,201 |
13,264 |
11,543 |
| |
|
|
|
|
|
| Total Non-Interest
Expense |
$ 117,759 |
$ 118,768 |
$ 106,321 |
$ 97,206 |
$ 98,109 |
|
|
| |
|
|
|
|
|
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Allowance for Credit
Losses, excluding covered loans - 5 Quarter Trends |
| |
| |
Three Months Ended |
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
| (Dollars in thousands) |
2012 |
2011 |
2011 |
2011 |
2011 |
| |
|
|
|
|
|
| Allowance for loan losses at
beginning of period |
$ 110,381 |
$ 118,649 |
$ 117,362 |
$ 115,049 |
$ 113,903 |
| Provision for credit
losses |
15,154 |
16,615 |
28,263 |
28,666 |
24,376 |
| Other adjustments |
(238) |
-- |
-- |
-- |
-- |
| Reclassification from/(to) allowance
for unfunded lending-related commitments |
152 |
171 |
(66) |
(317) |
2,116 |
| |
|
|
|
|
|
|
Charge-offs: |
|
|
|
|
|
| Commercial |
3,262 |
6,377 |
8,851 |
7,583 |
9,140 |
| Commercial real estate |
8,229 |
13,931 |
14,734 |
20,691 |
13,342 |
| Home equity |
2,590 |
1,876 |
1,071 |
1,300 |
773 |
| Residential real estate |
175 |
1,632 |
926 |
282 |
1,275 |
| Premium finance receivables -
commercial |
837 |
1,479 |
1,738 |
1,893 |
1,507 |
| Premium finance receivables -
life insurance |
13 |
-- |
31 |
214 |
30 |
| Indirect consumer |
51 |
56 |
24 |
44 |
120 |
| Consumer and other |
310 |
824 |
282 |
266 |
160 |
| Total charge-offs |
15,467 |
26,175 |
27,657 |
32,273 |
26,347 |
| |
|
|
|
|
|
|
Recoveries: |
|
|
|
|
|
| Commercial |
257 |
541 |
150 |
301 |
266 |
| Commercial real estate |
131 |
286 |
299 |
463 |
338 |
| Home equity |
162 |
5 |
32 |
19 |
8 |
| Residential real estate |
2 |
2 |
3 |
3 |
2 |
| Premium finance receivables -
commercial |
277 |
204 |
159 |
5,375 |
268 |
| Premium finance receivables -
life insurance |
21 |
-- |
-- |
12 |
-- |
| Indirect consumer |
30 |
37 |
75 |
42 |
66 |
| Consumer and other |
161 |
46 |
29 |
22 |
53 |
| Total recoveries |
1,041 |
1,121 |
747 |
6,237 |
1,001 |
| Net
charge-offs |
(14,426) |
(25,054) |
(26,910) |
(26,036) |
(25,346) |
| Allowance for loan
losses at period end |
$ 111,023 |
$ 110,381 |
$ 118,649 |
$ 117,362 |
$ 115,049 |
| Allowance for unfunded
lending-related commitments at period end |
13,078 |
13,231 |
13,402 |
2,335 |
2,018 |
| Allowance for credit
losses at period end |
$ 124,101 |
$ 123,612 |
$ 132,051 |
$ 119,697 |
$ 117,067 |
| |
|
|
|
|
|
| Annualized net
charge-offs by category as a percentage of its own respective
category's average: |
|
|
|
|
|
| Commercial |
0.49% |
0.96% |
1.60% |
1.45% |
1.85% |
| Commercial real estate |
0.92 |
1.56 |
1.69 |
2.40 |
1.57 |
| Home equity |
1.15 |
0.85 |
0.47 |
0.58 |
0.34 |
| Residential real estate |
0.11 |
1.07 |
0.80 |
0.25 |
0.91 |
| Premium finance receivables -
commercial |
0.15 |
0.35 |
0.42 |
(0.99) |
0.37 |
| Premium finance receivables -
life insurance |
-- |
-- |
0.01 |
0.05 |
0.01 |
| Indirect consumer |
0.13 |
0.12 |
(0.33) |
0.02 |
0.41 |
| Consumer and other |
0.49 |
2.35 |
0.84 |
0.98 |
0.42 |
| Total loans, net of unearned
income, excluding covered loans |
0.53% |
0.93% |
1.05% |
1.06% |
1.04% |
| Net charge-offs as a
percentage of the provision for credit losses |
95.20% |
150.79% |
95.21% |
90.83% |
103.98% |
| |
|
|
|
|
|
| Loans at
period-end |
$ 10,717,384 |
$ 10,521,377 |
$ 10,272,711 |
$ 9,925,077 |
$ 9,561,802 |
| Allowance for loan
losses as a percentage of loans at period end |
1.04% |
1.05% |
1.15% |
1.18% |
1.20% |
| Allowance for credit
losses as a percentage of loans at period end |
1.16% |
1.17% |
1.29% |
1.21% |
1.22% |
| |
| |
|
|
|
|
|
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Non-Performing Assets,
excluding covered assets - 5 Quarter Trends |
| |
|
|
|
|
|
| |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
| (Dollars in thousands) |
2012 |
2011 |
2011 |
2011 |
2011 |
| |
|
|
|
|
|
| Loans past due greater than 90 days
and still accruing: |
|
|
|
|
|
| Commercial |
$ -- |
$ -- |
$ -- |
$ -- |
$ 150 |
| Commercial real-estate |
73 |
-- |
1,105 |
-- |
1,997 |
| Home equity |
-- |
-- |
-- |
-- |
-- |
| Residential real-estate |
-- |
-- |
-- |
-- |
-- |
| Premium finance receivables -
commercial |
4,619 |
5,281 |
4,599 |
4,446 |
6,319 |
| Premium finance receivables -
life insurance |
-- |
-- |
2,413 |
324 |
-- |
| Indirect consumer |
257 |
314 |
292 |
284 |
310 |
| Consumer and other |
-- |
-- |
-- |
-- |
1 |
| Total loans past due greater
than 90 days and still accruing |
4,949 |
5,595 |
8,409 |
5,054 |
8,777 |
| |
|
|
|
|
|
| Non-accrual loans: |
|
|
|
|
|
| Commercial |
19,835 |
19,018 |
24,836 |
26,168 |
26,157 |
| Commercial real-estate |
62,704 |
66,508 |
69,669 |
89,793 |
94,001 |
| Home equity |
12,881 |
14,164 |
15,426 |
15,853 |
11,184 |
| Residential real-estate |
5,329 |
6,619 |
7,546 |
7,379 |
4,909 |
| Premium finance receivables -
commercial |
7,650 |
7,755 |
6,942 |
10,309 |
9,550 |
| Premium finance receivables -
life insurance |
-- |
54 |
349 |
670 |
342 |
| Indirect consumer |
152 |
138 |
146 |
89 |
320 |
| Consumer and other |
121 |
233 |
653 |
757 |
147 |
| Total non-accrual loans |
108,672 |
114,489 |
125,567 |
151,018 |
146,610 |
| |
|
|
|
|
|
| Total non-performing
loans: |
|
|
|
|
|
| Commercial |
19,835 |
19,018 |
24,836 |
26,168 |
26,307 |
| Commercial real-estate |
62,777 |
66,508 |
70,774 |
89,793 |
95,998 |
| Home equity |
12,881 |
14,164 |
15,426 |
15,853 |
11,184 |
| Residential real-estate |
5,329 |
6,619 |
7,546 |
7,379 |
4,909 |
| Premium finance receivables -
commercial |
12,269 |
13,036 |
11,541 |
14,755 |
15,869 |
| Premium finance receivables -
life insurance |
-- |
54 |
2,762 |
994 |
342 |
| Indirect consumer |
409 |
452 |
438 |
373 |
630 |
| Consumer and other |
121 |
233 |
653 |
757 |
148 |
| Total non-performing loans |
$ 113,621 |
$ 120,084 |
$ 133,976 |
$ 156,072 |
$ 155,387 |
| Other real estate owned |
69,575 |
79,093 |
86,622 |
82,772 |
85,290 |
| Other real estate owned -
obtained in acquisition |
6,661 |
7,430 |
10,302 |
-- |
-- |
| Total non-performing
assets |
$ 189,857 |
$ 206,607 |
$ 230,900 |
$ 238,844 |
$ 240,677 |
| |
|
|
|
|
|
| Total non-performing
loans by category as a percent of its own respective category's
period-end balance: |
|
|
|
|
| Commercial |
0.78% |
0.76% |
1.06% |
1.23% |
1.36% |
| Commercial real-estate |
1.75 |
1.89 |
2.04 |
2.66 |
2.86 |
| Home equity |
1.53 |
1.64 |
1.75 |
1.80 |
1.25 |
| Residential real-estate |
1.47 |
1.89 |
2.31 |
2.24 |
1.42 |
| Premium finance receivables -
commercial |
0.81 |
0.92 |
0.81 |
1.03 |
1.19 |
| Premium finance receivables -
life insurance |
-- |
-- |
0.17 |
0.06 |
0.02 |
| Indirect consumer |
0.61 |
0.70 |
0.70 |
0.65 |
1.20 |
| Consumer and other |
0.11 |
0.19 |
0.58 |
0.75 |
0.15 |
| Total loans, net of unearned
income |
1.06% |
1.14% |
1.30% |
1.57% |
1.63% |
| |
|
|
|
|
|
| Total non-performing
assets as a percentage of total assets |
1.17% |
1.30% |
1.45% |
1.63% |
1.71% |
| |
|
|
|
|
|
| Allowance for loan
losses as a percentage of total non-performing loans |
97.71% |
91.92% |
88.56% |
75.20% |
74.04% |
| |
CONTACT: Edward J. Wehmer, President & Chief Executive Officer
David A. Dykstra, Senior Executive Vice President &
Chief Operating Officer
(847) 615-4096
Web site address: www.wintrust.com
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