Wintrust Financial Corporation ("Wintrust" or "the Company")
(Nasdaq:WTFC) announced net income of $25.6 million or $0.52 per
diluted common share for the second quarter of 2012 compared to net
income of $23.2 million or $0.50 per diluted common share for the
first quarter of 2012 and $11.8 million or $0.25 per diluted common
share for the second quarter of 2011.
Highlights Compared With the First Quarter of
2012:
- 18% annualized growth in average total loans, excluding covered
loans and loans held for sale
- 12% annualized growth in total deposits
- 12 basis point decline in net overhead ratio, based on pre-tax
adjusted earnings, to 1.46% down from 1.58%
- 61.38% efficiency ratio, based on pre-tax adjusted earnings, an
improvement from 62.31%
- Pre-tax adjusted earnings increased by 8% to $68.8 million
- Total non-performing assets as a percentage of total assets
remained unchanged at 1.17%
- Completed the acquisition of Macquarie Premium Funding Inc.,
the Canadian insurance premium funding business of Macquarie Group
- Net interest income increased $2.4 million while the net
interest margin declined by 4 basis points
The Company's total assets of $16.6 billion at June 30, 2012
increased $2.0 billion from June 30, 2011. Total deposits as
of June 30, 2012 were $13.1 billion, an increase of $1.8 billion
from June 30, 2011. Noninterest bearing deposits increased by $650
million or 47% since June 30, 2011, while NOW, wealth management,
money market and savings deposits increased $1.0 billion or 21%
during the same time period. Total time certificates of deposit at
June 30, 2012 increased $109.4 million or 2% compared to June 30,
2011. Total loans, including loans held for sale but excluding
covered loans, were $11.7 billion as of June 30, 2012, an increase
of $1.7 billion over June 30, 2011.
Edward J. Wehmer, President and Chief Executive Officer,
commented, "Our reported second quarter net income of $25.6 million
represents a 10% increase over the $23.2 million of net income
reported in the first quarter of 2012 and a 118% increase over the
$11.8 million of net income reported in the second quarter of 2011.
On a year-to-date basis, our reported net income increased to $48.8
million in 2012, a 73% increase over the $28.2 million of reported
net income in 2011. The second quarter of 2012 was highlighted by
strong loan and deposit growth, continued improvement in expense
control and stable credit quality measures. Improvements in two of
our most important measures, pre-tax adjusted earnings and net
income, reflect our efforts to grow the franchise and enhance
profitability."
Mr. Wehmer continued, "Total loans outstanding, excluding
covered loans and loans held for sale, increased $485 million in
the second quarter, including growth attributable to our
Canadian insurance premium funding business. Loan growth for the
quarter was strong in the commercial, commercial real-estate and
commercial premium finance receivables portfolios. Commercial loans
increased $129 million, commercial real-estate loans increased $81
million and commercial premium finance receivables increased $317
million in the second quarter. Funding of this loan growth was
primarily through growth in deposits which increased $392 million
in the second quarter."
Mr. Wehmer further commented, "Pre-tax adjusted earnings
continue to grow, increasing to $69 million in the second quarter
of 2012, an 8% increase over the first quarter of 2012 and a 30%
increase over the second quarter of 2011. The improvement in
pre-tax adjusted earnings reflects continued expense management
efforts and growth of net interest income. Our net overhead and
efficiency ratios calculated on a pre-tax adjusted earnings basis
both continued to improve in the second quarter. These are
important expense control measures for the
Company. Improvement in both of these ratios reflects our
ability to leverage our existing infrastructure. Net interest
income increased during the second quarter as growth in average
earning assets offset a small decline in the net interest margin.
The decline in the net interest margin was primarily attributable
to current economic conditions creating an interest rate
environment that is not favorable for loan pricing in the banking
industry."
Commenting on credit quality, Mr. Wehmer noted, "The Company's
credit quality metrics exhibited some of the bumpiness that we have
been describing that could occur. One large credit, which should be
removed from non-performing status shortly, accounted for
approximately $13 million of the new non-performing loan inflows
this quarter. Overall, the ratio of non-performing assets to
total assets remained the same as the end of the first quarter of
2012 at 1.17%. Our credit workout teams continue to make good
progress on addressing total non-performing assets as we wind our
way through this credit cycle."
Turning to the future, Mr. Wehmer noted, "Our loan pipeline for
internal loan growth remains very strong. Growth in net
interest income should be positively impacted by this anticipated
loan growth, incorporation of a full quarter of the Canadian
commercial premium finance business, paying off our securitization
in the middle of the third quarter and further deposit re-pricing
opportunities on the funding side. The continued low asset yields
as a result of the rate and economic environment will be a bit of a
headwind."
In closing, Mr. Wehmer added, "We continue to see opportunities
across all facets of our franchise both organically and through
acquisitions. Continued discipline in our approach to growth
will allow us to expand where it makes the most sense. Growing
franchise value while increasing profitability remains our main
objective."
The graphs below illustrate the growth in total assets, total
loans excluding covered loans and loans held for sale, total
deposits and tangible common book value per share over the most
recent five quarters.
Graphs accompanying this release are available at:
http://media.globenewswire.com/cache/11955/file/14605.pdf
The graphs below depict trends in net income, pre-tax adjusted
earnings, efficiency ratio based on pre-tax adjusted earnings and
net overhead ratio based on pre-tax adjusted earnings over the most
recent five quarters. See "Supplement Financial
Measures/Ratios" for additional information on these performance
measures/ratios.
Graphs accompanying this release are available at:
http://media.globenewswire.com/cache/11955/file/14606.pdf
Wintrust's key operating measures and growth rates for the
second 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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June 30, |
March 31, |
June 30, |
1st Quarter |
2nd Quarter |
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2012 |
2012 |
2011 |
2012 |
2011 |
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|
| Net income |
$ 25,595 |
$ 23,210 |
$ 11,750 |
10% |
118% |
| Net income per common share –
diluted |
$ 0.52 |
$ 0.50 |
$ 0.25 |
4% |
108% |
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| Pre-tax adjusted earnings (2) |
$ 68,841 |
$ 63,688 |
$ 52,860 |
8% |
30% |
| Net revenue (1) |
$ 179,205 |
$ 172,918 |
$ 145,358 |
4% |
23% |
| Net interest income |
$ 128,270 |
$ 125,895 |
$ 108,706 |
2% |
18% |
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| Net interest margin (2) |
3.51% |
3.55% |
3.40% |
(4) bp |
11 bp |
| Net overhead ratio (2) (3) |
1.63% |
1.80% |
1.72% |
(17) bp |
(9) bp |
| Net overhead ratio, based on pre-tax adjusted
earnings (2) (3) |
1.46% |
1.58% |
1.59% |
(12) bp |
(13) bp |
| Return on average assets |
0.63% |
0.59% |
0.33% |
4 bp |
30 bp |
| Return on average common equity |
6.08% |
5.90% |
3.05% |
18 bp |
303 bp |
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| At end of period |
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| Total assets |
$ 16,576,282 |
$ 16,172,018 |
$ 14,615,897 |
10% |
13% |
| Total loans, excluding loans held-for-sale,
excluding covered loans |
$ 11,202,842 |
$ 10,717,384 |
$ 9,925,077 |
18% |
13% |
| Total loans, including loans held-for-sale,
excluding covered loans |
$ 11,728,946 |
$ 11,067,712 |
$ 10,064,041 |
24% |
17% |
| Total deposits |
$ 13,057,581 |
$ 12,665,853 |
$ 11,259,260 |
12% |
16% |
| Total shareholders' equity |
$ 1,722,074 |
$ 1,687,921 |
$ 1,473,386 |
8% |
17% |
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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 Information."
Items Impacting Comparative Financial
Results: Acquisitions and Capital
Acquisitions - completed in the past twelve
months
On June 8, 2012, the Company, through its wholly-owned
subsidiary Lake Forest Bank and Trust Company ("Lake Forest Bank"),
completed its previously announced acquisition of Macquarie Premium
Funding Inc., the Canadian insurance premium funding business of
Macquarie Group. Through this transaction, Lake Forest Bank
acquired approximately $213 million of gross premium finance
receivables outstanding. The Company recorded goodwill of
approximately $22 million on the acquisition.
On April 13, 2012, the Company's wholly-owned subsidiary bank,
Old Plank Trail Community Bank, N.A. ("Old Plank Trail Bank"),
completed its previously announced acquisition of a branch of
Suburban Bank & Trust Company ("Suburban") located in Orland
Park, Illinois. Through this transaction, Old Plank Trail Bank
acquired approximately $52 million of deposits and $3 million of
loans. The Company recorded goodwill of $1.5 million on the branch
acquisition.
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. 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".
Summary of FDIC-assisted transactions in the past twelve
months
- 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 $785,000 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.
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.
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.
Capital Ratios
As of June 30, 2012, the Company's estimated capital ratios were
13.5% for total risk-based capital, 12.4% for tier 1 risk-based
capital and 10.2% for leverage, above the well capitalized
guidelines. Additionally, the Company's tangible common equity
ratio was 7.4% at June 30, 2012. Assuming full conversion of
preferred stock, the tangible common equity ratio was 8.4% at June
30, 2012.
Financial Performance Overview – Second Quarter
2012
For the second quarter of 2012, net interest income totaled
$128.3 million, an increase of $2.4 million as compared to the
first quarter of 2012 and $19.6 million as compared to the second
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 and loan growth positively impacted
net interest income in the second quarter of 2012 as compared to
the first quarter of 2012 and second quarter of 2011.
- Average earning assets for the second quarter of 2012 increased
by $1.9 billion compared to the second quarter of 2011. Average
earning asset growth over the past 12 months was primarily a result
of the $1.4 billion increase in average loans, excluding covered
loans, $241.7 million of average covered loan growth from the
FDIC-assisted bank acquisitions and a $192.2 million increase in
average liquidity management and other earning assets. Growth in
average loans included a $563.7 million increase in commercial
loans as a result of the Company's commercial banking initiative
and the Elgin State Bank acquisition completed at the end of the
third quarter of 2011. Additionally, increases totaling $343.6
million in average residential real loans, which includes mortgages
held for sale, were the result of higher residential originations
in the current quarter as a result of lower mortgage interest
rates. Average commercial insurance premium finance loans increased
$245.7 million in the second quarter of 2012. The last significant
category of average loans which had an increase was the commercial
real estate loan portfolio, which increased $230.1
million. These increases were partially offset by a decrease
in average home equity loans of $57.8 million. The average earning
asset growth of $1.9 billion over the past 12 months was primarily
funded by a $1.3 billion increase in the average balances of
interest-bearing deposits and an increase in the average balance of
net free funds of $588.8 million.
- During the second quarter of 2012, the Company repurchased an
additional $67.2 million of the $600 million Class A notes issued
in the third quarter of 2009 as part of its loan securitization. As
of June 30, 2012, the Company has repurchased a total of $239.2
million of the $600 million Class A notes.
The net interest margin for the second quarter of 2012 was 3.51%
compared to 3.55% in the first quarter of 2012 and 3.40% in the
second quarter of 2011. The changes in net interest margin on both
a linked and sequential quarter basis are the result of:
- The four basis point decrease in net interest margin in the
second quarter of 2012 compared to the first quarter of 2012
resulted from lower yields on liquidity management assets and loans
and lower market yields on mortgages held for sale partially offset
by the positive re-pricing of retail interest-bearing deposits
along with a more favorable deposit mix.
- The 11 basis point increase in the second quarter of 2012
compared to the second quarter of 2011 was primarily attributable
to a 31 basis point decline in the cost of interest-bearing
deposits and a 95 basis point decline in the cost of wholesale
borrowings over the last 12 months. Offsetting this was a 41 basis
point decline in our yield on total loans as a result of an
interest rate environment that has not been favorable for loan
pricing in the banking industry.
Non-interest income totaled $50.9 million in the second quarter
of 2012, increasing $3.9 million, or 8.3%, compared to the first
quarter of 2012 and increasing $14.3 million, or 39%, compared to
the second quarter of 2011. The increase in the second quarter of
2012 compared to the first quarter of 2012 is primarily
attributable to higher mortgage banking revenues and wealth
management revenues, partially offset by trading losses, less
income from investment partnerships and no acquisition-related
bargain purchase gains as gains were recorded during the first
quarter of 2012 as a result of the Charter National FDIC-assisted
transaction. The increase in the second quarter of 2012 compared to
the second quarter of 2011 was primarily attributable to higher
mortgage banking revenues and wealth management revenues, partially
offset by a decrease in bargain purchase gains and trading losses.
Mortgage banking revenue increased $7.1 million when compared to
the first quarter of 2012 and increased $12.8 million when compared
to the second quarter of 2011. The increase in mortgage banking
revenue in the current quarter as compared to the second 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 partially offset by lower mortgage servicing rights
("MSR") valuations. Loans sold to the secondary market were
$854 million in the second quarter of 2012 compared to $715 million
in the first quarter of 2012 and $459 million in the second quarter
of 2011 (see "Non-Interest Income" section later in this release
for further detail).
Non-interest expense totaled $117.2 million in the second
quarter of 2012, decreasing $573,000 compared to the first quarter
of 2012 and increasing $20.0 million, or 21%, compared to the
second quarter of 2011. The increase compared to the second quarter
of 2011 was primarily attributable to a $15.1 million increase in
salaries and employee benefits. Salaries and employee benefits
expense increased primarily as a result of a $5.2 million increase
in salaries caused by the addition of employees from the various
acquisitions and larger staffing as the Company grows, an $8.7
million increase in bonus and commissions primarily attributable to
the increase in variable pay based revenue and the Company's
long-term incentive program and a $1.2 million increase from
employee benefits (primarily health plan and payroll taxes
related).
Financial Performance Overview – First Six Months of
2012
The net interest margin for the first six months of 2012 was
3.53% compared to 3.44% in the first six months of 2011. Average
earnings assets for the first six months of 2012 totaled $14.5
billion, an increase of $1.7 billion compared to the prior year
period. This average earning asset growth is primarily a result of
the $1.2 billion increase in average loans, excluding covered
loans, $290.9 million of average covered loan growth from the
FDIC-assisted bank acquisitions and a $162.7 million increase in
liquidity management and other earning assets. The majority of the
increase in average loans was comprised of increases of $528.2
million in commercial loans, $204.8 million in commercial real
estate loans, $310.1 million in premium finance receivables and
$200.4 million in residential real estate loans, partially offset
by a $23.9 million decrease in home equity and all other loans. The
average earning asset growth of $1.7 billion in the first six
months of 2012 compared to the prior year period was primarily
funded by a $1.1 billion increase in the average balances of
interest-bearing deposits and an increase in the average balance of
net free funds of $461.3 million.
Non-interest income totaled $98.0 million in the first six
months of 2012, increasing $20.4 million, or 26%, compared to the
first six months of 2011. The change is primarily attributable to
higher mortgage banking revenues and wealth management revenues,
partially offset by lower bargain purchase gains recorded during
the current period relating to FDIC-assisted acquisitions than
during the comparable period. Mortgage banking revenue increased
$19.7 million when compared to the first six months of 2011. The
increase in the first six months of 2012 results primarily from an
increase in gains on sales of loans, which was driven by higher
origination volumes due to a favorable mortgage interest rate
environment in 2012. Loans sold to the secondary market were $1.6
billion in the first six months of 2012 compared to $1.0 billion in
the first six months of 2011.
Non-interest expense totaled $234.9 million in the first six
months of 2012, increasing $39.6 million compared to the first six
months of 2011. The increase compared to the first six months of
2011 was primarily attributable to a $28.0 million increase in
salaries and employee benefits. Salaries and employee benefits
expense increased primarily as a result of a $10.0 million increase
in salaries caused by the addition of employees from the various
acquisitions and larger staffing as the Company grows, a $14.7
million increase in bonus and commissions primarily attributable to
the increase in variable pay based revenue and the Company's
long-term incentive program and a $3.3 million increase from
employee benefits (primarily health plan and payroll taxes
related).
Financial Performance Overview – Credit
Quality
The ratio of non-performing assets to total assets remained the
same at June 30, 2012 compared to the first quarter of 2012.
Non-performing assets, excluding covered assets, totaled $193.5
million, or 1.17% of total assets at June 30, 2012, compared to
$189.9 million, or 1.17% of total assets, at March 31, 2012 and
$238.8 million, or 1.57% of total assets, at June 30, 2011.
Non-performing loans, excluding covered loans, totaled $120.9
million, or 1.08% of total loans, at June 30, 2012, compared to
$113.6 million, or 1.06% of total loans, at March 31, 2012 and
$156.1 million, or 1.57% of total loans, at June 30, 2011. The
increase in commercial non-performing loans was primarily related
to one credit relationship totaling approximately $13 million.
OREO, excluding covered OREO, of $72.6 million at June 30, 2012,
decreased $3.7 million compared to $76.2 million at March 31, 2012
and decreased $10.2 million compared to $82.8 million at June 30,
2011.
The provision for credit losses, excluding the provision for
covered loan losses, totaled $18.4 million for the second quarter
of 2012 compared to $15.2 million for the first quarter of 2012 and
$28.7 million in the second quarter of 2011. Net charge-offs as a
percentage of loans, excluding covered loans, for the second
quarter of 2012 totaled 62 basis points on an annualized basis
compared to 53 basis points on an annualized basis in the first
quarter of 2012 and 106 basis points on an annualized basis in the
second quarter of 2011.
Excluding the allowance for covered loan losses, the allowance
for credit losses at June 30, 2012 totaled $124.8 million, or 1.11%
of total loans, compared to $124.1 million, or 1.16% of total
loans, at March 31, 2012 and $119.7 million, or 1.21% of total
loans, at June 30, 2011.
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| WINTRUST FINANCIAL
CORPORATION |
Three Months
Ended |
Six Months
Ended |
| Selected Financial
Highlights |
June
30, |
June
30, |
| |
2012 |
2011 |
2012 |
2011 |
| Selected Financial Condition Data (at
end of period): |
|
|
|
|
| Total assets |
$ 16,576,282 |
$ 14,615,897 |
|
|
| Total loans, excluding covered loans |
11,202,842 |
9,925,077 |
|
|
| Total deposits |
13,057,581 |
11,259,260 |
|
|
| Junior subordinated debentures |
249,493 |
249,493 |
|
|
| Total shareholders' equity |
1,722,074 |
1,473,386 |
|
|
| Selected Statements of
Income Data: |
|
| Net interest income |
$ 128,270 |
$ 108,706 |
$ 254,165 |
$ 218,320 |
| Net revenue (1) |
179,205 |
145,358 |
352,123 |
295,859 |
| Pre-tax adjusted earnings (2) |
68,841 |
52,860 |
132,529 |
103,892 |
| Net income |
25,595 |
11,750 |
48,805 |
28,152 |
| Net income per common share – Basic |
$ 0.63 |
$ 0.31 |
$ 1.24 |
$ 0.75 |
| Net income per common share –
Diluted |
$ 0.52 |
$ 0.25 |
$ 1.02 |
$ 0.60 |
| Selected Financial Ratios
and Other Data: |
|
| Performance Ratios: |
|
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| Net interest margin (2) |
3.51% |
3.40% |
3.53% |
3.44% |
| Non-interest income to average assets |
1.26% |
1.04% |
1.23% |
1.11% |
| Non-interest expense to average
assets |
2.89% |
2.76% |
2.94% |
2.80% |
| Net overhead ratio (2) (3) |
1.63% |
1.72% |
1.71% |
1.69% |
| Net overhead ratio, based on pre-tax adjusted
earnings (2) (3) |
1.46% |
1.59% |
1.44% |
1.29% |
| Efficiency ratio (2) (4) |
65.63% |
67.22% |
66.91% |
66.11% |
| Efficiency ratio, based on pre-tax adjusted
earnings (2) (4) |
61.38% |
62.81% |
61.83% |
63.18% |
| Return on average assets |
0.63% |
0.33% |
0.61% |
0.40% |
| Return on average common equity |
6.08% |
3.05% |
5.99% |
3.76% |
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| Average total assets |
$ 16,319,207 |
$ 14,105,136 |
$ 16,077,279 |
$ 14,059,339 |
| Average total shareholders' equity |
1,695,440 |
1,460,071 |
1,630,051 |
1,449,031 |
| Average loans to average deposits ratio
(excluding covered loans) |
88.2% |
90.9% |
88.2% |
91.1% |
| Average loans to average deposits ratio
(including covered loans) |
93.4% |
94.8% |
93.4% |
94.5% |
| Common Share Data at end
of period: |
| Market price per common share |
$ 35.50 |
$ 32.18 |
|
|
| Book value per common share (2) |
$ 35.86 |
$ 33.63 |
|
|
| Tangible common book value per share (2) |
$ 27.69 |
$ 26.67 |
|
|
| Common shares outstanding |
36,340,843 |
34,988,125 |
|
|
| |
|
|
|
|
| Other Data at end of period:(8) |
|
|
|
|
| Leverage Ratio (5) |
10.2% |
10.3% |
|
|
| Tier 1 capital to risk-weighted assets
(5) |
12.4% |
12.3% |
|
|
| Total capital to risk-weighted assets
(5) |
13.5% |
13.5% |
|
|
| Tangible common equity ratio (TCE)
(2)(7) |
7.4% |
7.9% |
|
|
| Tangible common equity ratio, assuming full
conversion of preferred stock (2) (7) |
8.4% |
8.2% |
|
|
| Allowance for credit losses (6) |
$ 124,823 |
$ 119,697 |
|
|
| Non-performing loans |
$ 120,920 |
$ 156,072 |
|
|
| Allowance for credit losses to total loans
(6) |
1.11% |
1.21% |
|
|
| Non-performing loans to total loans |
1.08% |
1.57% |
|
|
| Number of: |
|
|
|
|
| Bank subsidiaries |
15 |
15 |
|
|
| Non-bank subsidiaries |
8 |
7 |
|
|
| Banking offices |
100 |
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) |
| |
June 30, |
December 31, |
June 30, |
| (In thousands) |
2012 |
2011 |
2011 |
| Assets |
|
|
|
| Cash and due from banks |
$ 176,529 |
$ 148,012 |
$ 140,434 |
| Federal funds sold and securities purchased
under resale agreements |
15,227 |
21,692 |
43,634 |
| Interest-bearing deposits with other
banks |
1,117,888 |
749,287 |
990,308 |
| Available-for-sale securities, at fair
value |
1,196,702 |
1,291,797 |
1,456,426 |
| Trading account securities |
608 |
2,490 |
509 |
| Federal Home Loan Bank and Federal Reserve
Bank stock, at cost |
92,792 |
100,434 |
86,761 |
| Brokerage customer receivables |
31,448 |
27,925 |
29,736 |
| Mortgage loans held-for-sale, at fair
value |
511,566 |
306,838 |
133,083 |
| Mortgage loans held-for-sale, at lower of
cost or market |
14,538 |
13,686 |
5,881 |
| Loans, net of unearned income, excluding
covered loans |
11,202,842 |
10,521,377 |
9,925,077 |
| Covered loans |
614,062 |
651,368 |
408,669 |
| Total loans |
11,816,904 |
11,172,745 |
10,333,746 |
| Less: Allowance for loan losses |
111,920 |
110,381 |
117,362 |
|
Less: Allowance for covered loan losses |
20,560 |
12,977 |
7,443 |
| Net loans |
11,684,424 |
11,049,387 |
10,208,941 |
| Premises and equipment, net |
449,608 |
431,512 |
403,577 |
| FDIC indemnification asset |
222,568 |
344,251 |
110,049 |
| Accrued interest receivable and other
assets |
710,275 |
444,912 |
389,634 |
| Trade date securities receivable |
-- |
634,047 |
322,091 |
| Goodwill |
330,896 |
305,468 |
283,301 |
| Other intangible assets |
21,213 |
22,070 |
11,532 |
| Total
assets |
$ 16,576,282 |
$ 15,893,808 |
$ 14,615,897 |
| |
|
|
|
| Liabilities and
Shareholders' Equity |
|
|
| Deposits: |
|
|
|
| Non-interest bearing |
$ 2,047,715 |
$ 1,785,433 |
1,397,433 |
| Interest bearing |
11,009,866 |
10,521,834 |
9,861,827 |
| Total deposits |
13,057,581 |
12,307,267 |
11,259,260 |
| Notes payable |
2,457 |
52,822 |
1,000 |
| Federal Home Loan Bank
advances |
564,301 |
474,481 |
423,500 |
| Other borrowings |
375,523 |
443,753 |
432,706 |
| Secured borrowings - owed to
securitization investors |
360,825 |
600,000 |
600,000 |
| Subordinated notes |
15,000 |
35,000 |
40,000 |
| Junior subordinated
debentures |
249,493 |
249,493 |
249,493 |
| Trade date securities
payable |
19,025 |
47 |
2,243 |
| Accrued interest payable
and other liabilities |
210,003 |
187,412 |
134,309 |
| Total liabilities |
14,854,208 |
14,350,275 |
13,142,511 |
| |
|
|
|
| Shareholders' Equity: |
|
|
|
| Preferred stock |
176,337 |
49,768 |
49,704 |
| Common stock |
36,573 |
35,982 |
34,988 |
| Surplus |
1,013,428 |
1,001,316 |
969,315 |
| Treasury stock |
(7,374) |
(112) |
(50) |
| Retained earnings |
501,139 |
459,457 |
415,297 |
| Accumulated other
comprehensive income (loss) |
1,971 |
(2,878) |
4,132 |
| Total shareholders'
equity |
1,722,074 |
1,543,533 |
1,473,386 |
| Total liabilities
and shareholders' equity |
$ 16,576,282 |
$ 15,893,808 |
$ 14,615,897 |
| |
| |
| WINTRUST FINANCIAL
CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS
OF INCOME (UNAUDITED) |
| |
|
|
|
|
| |
Three Months Ended |
Six Months Ended |
| |
June 30, |
June 30, |
| (In thousands, except per share
data) |
2012 |
2011 |
2012 |
2011 |
| Interest income |
|
|
|
|
| Interest and fees on loans |
$ 144,100 |
$ 132,338 |
$ 287,655 |
$ 268,881 |
| Interest bearing deposits with
banks |
203 |
870 |
451 |
1,806 |
| Federal funds sold and
securities purchased under resale agreements |
6 |
23 |
18 |
55 |
| Securities |
10,510 |
11,438 |
22,357 |
20,978 |
| Trading account securities |
10 |
10 |
19 |
23 |
| Federal Home Loan Bank and
Federal Reserve Bank stock |
641 |
572 |
1,245 |
1,122 |
| Brokerage customer
receivables |
221 |
194 |
432 |
360 |
| Total interest
income |
155,691 |
145,445 |
312,177 |
293,225 |
| Interest expense |
|
|
|
|
| Interest on deposits |
17,273 |
22,404 |
35,303 |
46,360 |
| Interest on Federal Home Loan
Bank advances |
2,867 |
4,010 |
6,451 |
7,968 |
| Interest on notes payable and
other borrowings |
2,274 |
2,715 |
5,376 |
5,345 |
| Interest on secured borrowings
- owed to securitization investors |
1,743 |
2,994 |
4,292 |
6,034 |
| Interest on subordinated
notes |
126 |
194 |
295 |
406 |
| Interest on junior
subordinated debentures |
3,138 |
4,422 |
6,295 |
8,792 |
| Total interest
expense |
27,421 |
36,739 |
58,012 |
74,905 |
| Net interest income |
128,270 |
108,706 |
254,165 |
218,320 |
| Provision for credit losses |
20,691 |
29,187 |
38,091 |
54,531 |
| Net interest income after
provision for credit losses |
107,579 |
79,519 |
216,074 |
163,789 |
| Non-interest income |
|
|
|
|
| Wealth management |
13,393 |
10,601 |
25,794 |
20,837 |
| Mortgage banking |
25,607 |
12,817 |
44,141 |
24,448 |
| Service charges on deposit
accounts |
3,994 |
3,594 |
8,202 |
6,905 |
| Gains on available-for-sale
securities, net |
1,109 |
1,152 |
1,925 |
1,258 |
| Gain on bargain purchases,
net |
(55) |
746 |
785 |
10,584 |
| Trading losses, net |
(928) |
(30) |
(782) |
(470) |
| Other |
7,815 |
7,772 |
17,893 |
13,977 |
| Total non-interest
income |
50,935 |
36,652 |
97,958 |
77,539 |
| Non-interest expense |
|
|
|
|
| Salaries and employee
benefits |
68,139 |
53,079 |
137,169 |
109,178 |
| Equipment |
5,466 |
4,409 |
10,866 |
8,673 |
| Occupancy, net |
7,728 |
6,772 |
15,790 |
13,277 |
| Data processing |
3,840 |
3,147 |
7,458 |
6,670 |
| Advertising and marketing |
2,179 |
1,440 |
4,185 |
3,054 |
| Professional fees |
3,847 |
4,533 |
7,451 |
8,079 |
| Amortization of other
intangible assets |
1,089 |
704 |
2,138 |
1,393 |
| FDIC insurance |
3,477 |
3,281 |
6,834 |
7,799 |
| OREO expenses, net |
5,848 |
6,577 |
13,026 |
12,385 |
| Other |
15,572 |
13,264 |
30,027 |
24,807 |
| Total non-interest
expense |
117,185 |
97,206 |
234,944 |
195,315 |
| Income before taxes |
41,329 |
18,965 |
79,088 |
46,013 |
| Income tax expense |
15,734 |
7,215 |
30,283 |
17,861 |
| Net income |
$ 25,595 |
$ 11,750 |
$ 48,805 |
$ 28,152 |
| Preferred stock dividends and discount
accretion |
$ 2,644 |
$ 1,033 |
$ 3,890 |
$ 2,064 |
| Net income applicable to common
shares |
$ 22,951 |
$ 10,717 |
$ 44,915 |
$ 26,088 |
| Net income per common share -
Basic |
$ 0.63 |
$ 0.31 |
$ 1.24 |
$ 0.75 |
| Net income per common share -
Diluted |
$ 0.52 |
$ 0.25 |
$ 1.02 |
$ 0.60 |
| Cash dividends declared per
common share |
$ -- |
$ -- |
$ 0.09 |
$ 0.09 |
| Weighted average common shares
outstanding |
36,329 |
34,971 |
36,266 |
34,950 |
| Dilutive potential common shares |
7,770 |
8,438 |
7,723 |
8,437 |
| Average common shares and dilutive
common shares |
44,099 |
43,409 |
43,989 |
43,387 |
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 or adding back losses on
investment partnerships, bargain purchase, trading and
available-for-sale securities activity.
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 |
Six Months
Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
June
30, |
| (Dollars and shares in thousands) |
2012 |
2012 |
2011 |
2011 |
2011 |
2012 |
2011 |
| Calculation of Net Interest Margin
and Efficiency Ratio |
|
|
|
|
|
|
|
| (A) Interest Income
(GAAP) |
$ 155,691 |
$ 156,486 |
$ 157,617 |
$ 154,951 |
$ 145,445 |
$ 312,177 |
$ 293,225 |
| Taxable-equivalent
adjustment: |
|
|
|
|
|
|
|
| - Loans |
135 |
134 |
132 |
100 |
110 |
269 |
226 |
| - Liquidity management
assets |
333 |
329 |
320 |
313 |
296 |
662 |
591 |
| - Other earning assets |
3 |
3 |
2 |
6 |
2 |
6 |
5 |
| Interest Income - FTE |
$ 156,162 |
$ 156,952 |
$ 158,071 |
$ 155,370 |
$ 145,853 |
$ 313,114 |
$ 294,047 |
| (B) Interest Expense
(GAAP) |
27,421 |
30,591 |
32,970 |
36,541 |
36,739 |
58,012 |
74,905 |
| Net interest income - FTE |
$ 128,741 |
$ 126,361 |
$ 125,101 |
$ 118,829 |
$ 109,114 |
$ 255,102 |
$ 219,142 |
| (C) Net Interest Income (GAAP) (A
minus B) |
$ 128,270 |
$ 125,895 |
$ 124,647 |
$ 118,410 |
$ 108,706 |
$ 254,165 |
$ 218,320 |
| |
|
|
|
|
|
|
|
| (D) Net interest margin
(GAAP) |
3.49% |
3.54% |
3.44% |
3.36% |
3.38% |
3.52% |
3.42% |
| Net interest margin - FTE |
3.51% |
3.55% |
3.45% |
3.37% |
3.40% |
3.53% |
3.44% |
| |
|
|
|
|
|
|
|
| (E) Efficiency ratio
(GAAP) |
65.80% |
68.42% |
70.17% |
57.34% |
67.41% |
67.09% |
66.30% |
| Efficiency ratio -
FTE |
65.63% |
68.24% |
69.99% |
57.21% |
67.22% |
66.91% |
66.11% |
| Efficiency ratio -
Based on pre-tax adjusted earnings |
61.38% |
62.31% |
64.76% |
63.69% |
62.81% |
61.83% |
63.18% |
| |
|
|
|
|
|
|
|
| (F) Net Overhead Ratio
(GAAP) |
1.63% |
1.80% |
1.83% |
1.00% |
1.72% |
1.71% |
1.69% |
| Net Overhead ratio -
Based on pre-tax adjusted earnings |
1.46% |
1.58% |
1.62% |
1.56% |
1.59% |
1.44% |
1.29% |
| |
|
|
|
|
|
|
|
| Calculation of Tangible Common Equity
ratio (at period end) |
|
|
|
|
|
|
|
| Total shareholders' equity |
$ 1,722,074 |
$ 1,687,921 |
$ 1,543,533 |
$ 1,528,187 |
$ 1,473,386 |
|
|
| (G) Less: Preferred stock |
(176,337) |
(176,302) |
(49,768) |
(49,736) |
(49,704) |
|
|
| Less: Intangible assets |
(352,109) |
(329,396) |
(327,538) |
(324,782) |
(294,833) |
|
|
| (H) Total tangible common shareholders'
equity |
$ 1,193,628 |
$ 1,182,223 |
$ 1,166,227 |
$ 1,153,669 |
$ 1,128,849 |
|
|
| |
|
|
|
|
|
|
|
| Total assets |
$ 16,576,282 |
$ 16,172,018 |
$ 15,893,808 |
$ 15,914,804 |
$ 14,615,897 |
|
|
| Less: Intangible assets |
(352,109) |
(329,396) |
(327,538) |
(324,782) |
(294,833) |
|
|
| (I) Total tangible assets |
$ 16,224,173 |
$ 15,842,622 |
$ 15,566,270 |
$ 15,590,022 |
$ 14,321,064 |
|
|
| |
|
|
|
|
|
|
|
| Tangible common equity ratio
(H/I) |
7.4% |
7.5% |
7.5% |
7.4% |
7.9% |
|
|
| Tangible common equity ratio,
assuming full |
|
|
|
|
|
|
|
| conversion of preferred
stock ((H-G)/I) |
8.4% |
8.6% |
7.8% |
7.7% |
8.2% |
|
|
| |
|
|
|
|
|
|
|
| Calculation of Pre-Tax Adjusted
Earnings |
|
|
|
|
|
|
|
| Income before taxes |
$ 41,329 |
$ 37,759 |
$ 31,974 |
$ 50,046 |
$ 18,965 |
$ 79,088 |
$ 46,013 |
| Add: Provision for credit losses |
20,691 |
17,400 |
18,817 |
29,290 |
29,187 |
38,091 |
54,531 |
| Add: OREO expenses, net |
5,848 |
7,178 |
8,821 |
5,134 |
6,577 |
13,026 |
12,385 |
| Add: Recourse obligation on loans previously
sold |
(36) |
36 |
986 |
266 |
(916) |
-- |
(813) |
| Add: Covered loan collection expense |
1,323 |
1,399 |
944 |
336 |
806 |
2,722 |
1,551 |
| Add: Defeasance cost |
148 |
848 |
-- |
-- |
-- |
996 |
-- |
| Add: Seasonal payroll tax fluctuation |
(271) |
2,265 |
(932) |
(781) |
(131) |
1,994 |
1,713 |
| Less: (Gain) loss from investment
partnerships |
(65) |
(1,395) |
(723) |
1,439 |
240 |
(1,460) |
(116) |
| Less: Gain on bargain purchases, net |
55 |
(840) |
-- |
(27,390) |
(746) |
(785) |
(10,584) |
| Less: Trading (gains) losses |
928 |
(146) |
(216) |
(591) |
30 |
782 |
470 |
| Less: Gains on available-for-sale securities,
net |
(1,109) |
(816) |
(309) |
(225) |
(1,152) |
(1,925) |
(1,258) |
| Pre-tax adjusted
earnings |
$ 68,841 |
$ 63,688 |
$ 59,362 |
$ 57,524 |
$ 52,860 |
$ 132,529 |
$ 103,892 |
| |
|
|
|
|
|
|
|
| Calculation of book value per
share |
|
|
|
|
|
|
|
| Total shareholders' equity |
$ 1,722,074 |
$ 1,687,921 |
$ 1,543,533 |
$ 1,528,187 |
$ 1,473,386 |
|
|
| Less: Preferred stock |
(176,337) |
(176,302) |
(49,768) |
(49,736) |
(49,704) |
|
|
| (J) Total common equity |
$ 1,545,737 |
$ 1,511,619 |
$ 1,493,765 |
$ 1,478,451 |
$ 1,423,682 |
|
|
| |
|
|
|
|
|
|
|
| Actual common shares outstanding |
36,341 |
36,289 |
35,978 |
35,924 |
34,988 |
|
|
| Add: TEU conversion shares |
6,760 |
6,593 |
7,666 |
7,666 |
7,342 |
|
|
| (K) Common shares used for book value
calculation |
43,101 |
42,882 |
43,644 |
43,590 |
42,330 |
|
|
| |
|
|
|
|
|
|
|
| Book value per share
(J/K) |
$ 35.86 |
$ 35.25 |
$ 34.23 |
$ 33.92 |
$ 33.63 |
|
|
| Tangible common book value per share
(H/K) |
$ 27.69 |
$ 27.57 |
$ 26.72 |
$ 26.47 |
$ 26.67 |
|
|
| |
|
|
|
|
|
| LOANS |
|
|
|
|
|
| Loan Portfolio Mix and
Growth Rates |
|
|
% Growth |
| |
|
|
|
From (1) |
From |
| |
June 30, |
December 31, |
June 30, |
December 31, |
June 30, |
| (Dollars in thousands) |
2012 |
2011 |
2011 |
2011 |
2011 |
| Balance: |
|
|
|
|
|
| Commercial |
$ 2,673,181 |
$ 2,498,313 |
$ 2,132,436 |
14% |
25% |
| Commercial real-estate |
3,666,519 |
3,514,261 |
3,374,668 |
9 |
9 |
| Home equity |
820,991 |
862,345 |
880,702 |
(10) |
(7) |
| Residential real-estate |
375,494 |
350,289 |
329,381 |
14 |
14 |
| Premium finance receivables -
commercial |
1,830,044 |
1,412,454 |
1,429,436 |
59 |
28 |
| Premium finance receivables -
life insurance |
1,656,200 |
1,695,225 |
1,619,668 |
(5) |
2 |
| Indirect consumer (2) |
72,482 |
64,545 |
57,718 |
25 |
26 |
| Consumer and other |
107,931 |
123,945 |
101,068 |
(26) |
7 |
| Total loans, net of
unearned income, excluding covered loans |
$ 11,202,842 |
$ 10,521,377 |
$ 9,925,077 |
13% |
13% |
| Covered loans |
614,062 |
651,368 |
408,669 |
(12) |
50 |
| Total loans, net of unearned
income |
$ 11,816,904 |
$ 11,172,745 |
$ 10,333,746 |
12% |
14% |
| |
|
|
|
|
|
| Mix: |
|
|
|
|
|
| Commercial |
23% |
22% |
20% |
|
|
| Commercial real-estate |
31 |
31 |
33 |
|
|
| Home equity |
7 |
8 |
8 |
|
|
| Residential real-estate |
3 |
3 |
3 |
|
|
| Premium finance receivables -
commercial |
15 |
13 |
14 |
|
|
| Premium finance receivables -
life insurance |
14 |
15 |
16 |
|
|
| Indirect consumer (2) |
1 |
1 |
1 |
|
|
| Consumer and other |
1 |
1 |
1 |
|
|
| Total loans, net of unearned
income, excluding covered loans |
95% |
94% |
96% |
|
|
| Covered loans |
5 |
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 June 30, 2012 |
|
% of |
|
Past Due |
For Loan |
| |
|
Total |
|
and Still |
Losses |
| (Dollars in thousands) |
Balance |
Balance |
Nonaccrual |
Accruing |
Allocation |
| Commercial: |
|
|
|
|
|
| Commercial and industrial |
$ 1,621,061 |
25.6% |
$ 27,911 |
$ -- |
$ 17,477 |
| Franchise |
178,619 |
2.8 |
1,792 |
-- |
1,764 |
| Mortgage warehouse lines of
credit |
123,804 |
2.0 |
-- |
-- |
913 |
| Community Advantage - homeowner
associations |
73,289 |
1.2 |
-- |
-- |
183 |
| Aircraft |
22,803 |
0.4 |
428 |
-- |
151 |
| Asset-based lending |
489,207 |
7.7 |
342 |
-- |
5,457 |
| Municipal |
79,708 |
1.3 |
-- |
-- |
784 |
| Leases |
77,806 |
1.2 |
-- |
-- |
241 |
| Other |
1,842 |
-- |
-- |
-- |
13 |
| Purchased non-covered
commercial loans (1) |
5,042 |
0.1 |
-- |
486 |
-- |
| Total
commercial |
$ 2,673,181 |
42.3% |
$ 30,473 |
$ 486 |
$ 26,983 |
| |
|
|
|
|
|
| Commercial Real-Estate: |
|
|
|
|
|
| Residential construction |
$ 44,726 |
0.7% |
$ 892 |
$ -- |
$ 1,215 |
| Commercial construction |
156,695 |
2.5 |
3,011 |
-- |
3,666 |
| Land |
165,269 |
2.6 |
13,459 |
-- |
6,848 |
| Office |
570,434 |
9.0 |
4,796 |
-- |
6,176 |
| Industrial |
598,217 |
9.4 |
1,820 |
-- |
5,721 |
| Retail |
562,783 |
8.9 |
8,158 |
-- |
5,940 |
| Multi-family |
337,781 |
5.3 |
3,312 |
-- |
9,624 |
| Mixed use and other |
1,179,152 |
18.5 |
20,629 |
-- |
14,611 |
| Purchased non-covered
commercial real-estate (1) |
51,462 |
0.8 |
-- |
2,232 |
-- |
| Total commercial
real-estate |
$ 3,666,519 |
57.7% |
$ 56,077 |
$ 2,232 |
$ 53,801 |
| Total commercial and
commercial real-estate |
$ 6,339,700 |
100.0% |
$ 86,550 |
$ 2,718 |
$ 80,784 |
| |
|
|
|
|
|
| Commercial real-estate - collateral location
by state: |
|
|
|
|
|
| Illinois |
$ 3,015,007 |
82.2% |
|
|
|
| Wisconsin |
337,186 |
9.2 |
|
|
|
| Total primary
markets |
$ 3,352,193 |
91.4% |
|
|
|
| Florida |
56,479 |
1.5 |
|
|
|
| Arizona |
39,219 |
1.1 |
|
|
|
| Indiana |
48,682 |
1.3 |
|
|
|
| Other (no individual state
greater than 0.5%) |
169,946 |
4.7 |
|
|
|
| Total |
$ 3,666,519 |
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 |
| |
|
June 30, |
December 31, |
June 30, |
December 31, |
June 30, |
| (Dollars in thousands) |
|
2012 |
2011 |
2011 |
2011 |
2011 |
| Balance: |
|
|
|
|
|
|
| Non-interest bearing |
|
$ 2,047,715 |
$ 1,785,433 |
$ 1,397,433 |
30% |
47% |
| NOW |
|
1,780,872 |
1,698,778 |
1,530,068 |
10 |
16 |
| Wealth Management deposits
(2) |
|
954,319 |
788,311 |
737,428 |
42 |
29 |
| Money Market |
|
2,335,238 |
2,263,253 |
1,985,661 |
6 |
18 |
| Savings |
|
958,295 |
888,592 |
736,974 |
16 |
30 |
| Time certificates of
deposit |
|
4,981,142 |
4,882,900 |
4,871,696 |
4 |
2 |
| Total deposits |
|
$ 13,057,581 |
$ 12,307,267 |
$ 11,259,260 |
12% |
16% |
| |
|
|
|
|
|
|
| Mix: |
|
|
|
|
|
|
| Non-interest bearing |
|
16% |
15% |
12% |
|
|
| NOW |
|
14 |
14 |
14 |
|
|
| Wealth Management deposits
(2) |
|
7 |
6 |
6 |
|
|
| Money Market |
|
18 |
18 |
18 |
|
|
| Savings |
|
7 |
7 |
7 |
|
|
| Time certificates of
deposit |
|
38 |
40 |
43 |
|
|
| 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 June 30, 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 |
$ 46,296 |
$ 65,049 |
$ 166,307 |
$ 772,536 |
$ 1,050,188 |
1.03% |
| 4-6 months |
5,877 |
45,408 |
-- |
720,289 |
771,574 |
0.90% |
| 7-9 months |
117,397 |
32,061 |
-- |
557,303 |
706,761 |
0.90% |
| 10-12 months |
140,672 |
34,344 |
-- |
641,434 |
816,450 |
0.73% |
| 13-18 months |
126,096 |
35,429 |
-- |
498,882 |
660,407 |
1.16% |
| 19-24 months |
42,050 |
17,929 |
-- |
261,878 |
321,857 |
1.21% |
| 24+ months |
111,879 |
25,074 |
-- |
516,952 |
653,905 |
2.08% |
| Total |
$ 590,267 |
$ 255,294 |
$ 166,307 |
$ 3,969,274 |
4,981,142 |
1.11% |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| (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 second quarter
of 2012 compared to the second quarter of 2011 (linked
quarters):
| |
|
|
| |
For the Three
Months Ended |
For the Three Months
Ended |
| |
June 30,
2012 |
June 30, 2011 |
| (Dollars in thousands) |
Average |
Interest |
Rate |
Average |
Interest |
Rate |
| |
|
|
|
|
|
|
| Liquidity management assets (1) (2)
(7) |
$ 2,781,730 |
$ 11,693 |
1.69% |
$ 2,591,398 |
$ 13,198 |
2.04% |
| Other earning assets (2) (3) (7) |
30,761 |
233 |
3.04 |
28,886 |
208 |
2.89 |
| Loans, net of unearned income (2) (4)
(7) |
11,300,395 |
130,293 |
4.64 |
9,859,789 |
124,047 |
5.05 |
| Covered loans |
659,783 |
13,943 |
8.50 |
418,129 |
8,400 |
8.06 |
| Total earning assets (7) |
$ 14,772,669 |
$ 156,162 |
4.25% |
$ 12,898,202 |
$ 145,853 |
4.54% |
| Allowance for loan and covered loan
losses |
(134,077) |
|
|
(125,537) |
|
|
| Cash and due from banks |
152,118 |
|
|
135,670 |
|
|
| Other assets |
1,528,497 |
|
|
1,196,801 |
|
|
| Total assets |
$ 16,319,207 |
|
|
$ 14,105,136 |
|
|
| |
|
|
|
|
|
|
| Interest-bearing deposits |
$ 10,815,018 |
$ 17,273 |
0.64% |
$ 9,491,778 |
$ 22,404 |
0.95% |
| Federal Home Loan Bank advances |
514,513 |
2,867 |
2.24 |
421,502 |
4,010 |
3.82 |
| Notes payable and other
borrowings |
422,146 |
2,274 |
2.17 |
338,304 |
2,715 |
3.22 |
| Secured borrowings - owed to
securitization investors |
407,259 |
1,743 |
1.72 |
600,000 |
2,994 |
2.00 |
| Subordinated notes |
23,791 |
126 |
2.10 |
45,440 |
194 |
1.69 |
| Junior subordinated notes |
249,493 |
3,138 |
4.97 |
249,493 |
4,422 |
7.01 |
| Total interest-bearing
liabilities |
$ 12,432,220 |
$ 27,421 |
0.89% |
$ 11,146,517 |
$ 36,739 |
1.32% |
| Non-interest bearing deposits |
1,993,880 |
|
|
1,349,549 |
|
|
| Other liabilities |
197,667 |
|
|
148,999 |
|
|
| Equity |
1,695,440 |
|
|
1,460,071 |
|
|
| Total liabilities and
shareholders' equity |
$ 16,319,207 |
|
|
$ 14,105,136 |
|
|
| |
|
|
|
|
|
|
| Interest rate spread (5) (7) |
|
|
3.36% |
|
|
3.22% |
| Net free funds/contribution (6) |
$ 2,340,449 |
|
0.15% |
$ 1,751,685 |
|
0.18% |
| Net interest income/Net
interest margin (7) |
$ 128,741 |
3.51% |
|
$ 109,114 |
3.40% |
| |
|
|
|
|
|
|
| (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
June 30, 2012 and 2011 were $471,000 and $408,000,
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 11 basis point increase in the second quarter of 2012
compared to the second quarter of 2011 was primarily attributable
to a 31 basis point decline in the cost of interest-bearing
deposits and a 95 basis point decline in the cost of wholesale
borrowings over the last 12 months. Offsetting this was a 41
basis point decline in our yield on total loans as a result of an
interest rate environment that has not been favorable for loan
pricing in the banking industry.
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 second quarter
of 2012 compared to the first quarter of 2012 (sequential
quarters):
| |
|
|
|
|
|
|
| |
|
|
| |
For the Three Months
Ended |
For the Three Months Ended |
| |
June 30,
2012 |
March 31, 2012 |
| (Dollars in thousands) |
Average |
Interest |
Rate |
Average |
Interest |
Rate |
| |
|
|
|
|
|
|
| Liquidity management assets (1) (2)
(7) |
$ 2,781,730 |
$ 11,693 |
1.69% |
$ 2,756,833 |
$ 13,040 |
1.90% |
| Other earning assets (2) (3) (7) |
30,761 |
233 |
3.04 |
30,499 |
224 |
2.96 |
| Loans, net of unearned income (2) (4)
(7) |
11,300,395 |
130,293 |
4.64 |
10,848,016 |
128,784 |
4.77 |
| Covered loans |
659,783 |
13,943 |
8.50 |
667,242 |
14,904 |
8.98 |
| Total earning assets (7) |
$ 14,772,669 |
$ 156,162 |
4.25% |
$ 14,302,590 |
$ 156,952 |
4.41% |
| Allowance for loan and covered loan
losses |
(134,077) |
|
|
(131,769) |
|
|
| Cash and due from banks |
152,118 |
|
|
143,869 |
|
|
| Other assets |
1,528,497 |
|
|
1,520,660 |
|
|
| Total assets |
$ 16,319,207 |
|
|
$ 15,835,350 |
|
|
| |
|
|
|
|
|
|
| Interest-bearing deposits |
$ 10,815,018 |
$ 17,273 |
0.64% |
$ 10,481,822 |
$ 18,030 |
0.69% |
| Federal Home Loan Bank advances |
514,513 |
2,867 |
2.24 |
470,345 |
3,584 |
3.06 |
| Notes payable and other
borrowings |
422,146 |
2,274 |
2.17 |
505,814 |
3,102 |
2.47 |
| Secured borrowings - owed to
securitization investors |
407,259 |
1,743 |
1.72 |
514,923 |
2,549 |
1.99 |
| Subordinated notes |
23,791 |
126 |
2.10 |
35,000 |
169 |
1.91 |
| Junior subordinated notes |
249,493 |
3,138 |
4.97 |
249,493 |
3,157 |
5.01 |
| Total interest-bearing
liabilities |
$ 12,432,220 |
$ 27,421 |
0.89% |
$ 12,257,397 |
$ 30,591 |
1.00% |
| Non-interest bearing deposits |
1,993,880 |
|
|
1,832,627 |
|
|
| Other liabilities |
197,667 |
|
|
180,664 |
|
|
| Equity |
1,695,440 |
|
|
1,564,662 |
|
|
| Total liabilities and
shareholders' equity |
$ 16,319,207 |
|
|
$ 15,835,350 |
|
|
| |
|
|
|
|
|
|
| Interest rate spread (5) (7) |
|
|
3.36% |
|
|
3.41% |
| Net free funds/contribution (6) |
$ 2,340,449 |
|
0.15% |
$ 2,045,193 |
|
0.14% |
| Net interest income/Net interest
margin (7) |
|
$ 128,741 |
3.51% |
|
$ 126,361 |
3.55% |
| |
|
|
|
|
|
|
| (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
June 30, 2012 was $471,000 and for the three months ended March 31,
2012 was $466,000. |
| (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 four basis point decrease in net interest margin in the
second quarter of 2012 compared to the first quarter of 2012
resulted from lower yields on liquidity management assets and loans
partially offset by the positive re-pricing of retail
interest-bearing deposits along with a more favorable deposit
mix.
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 six months
ended June 30, 2012 compared to the six months ended June 30,
2011:
| |
|
|
|
|
|
|
| |
|
|
| |
For the Six Months
Ended |
For the Six Months Ended |
| |
June 30,
2012 |
June 30, 2011 |
| (Dollars in thousands) |
Average |
Interest |
Rate |
Average |
Interest |
Rate |
| |
|
|
|
|
|
|
| Liquidity management assets (1) (2)
(7) |
$ 2,769,282 |
$ 24,733 |
1.80% |
$ 2,608,863 |
$ 24,552 |
1.90% |
| Other earning assets (2) (3) (7) |
30,631 |
457 |
3.00 |
28,305 |
389 |
2.77 |
| Loans, net of unearned income (2) (4)
(7) |
11,074,205 |
259,077 |
4.70 |
9,854,578 |
253,634 |
5.19 |
| Covered loans |
663,512 |
28,847 |
8.74 |
372,608 |
15,472 |
8.37 |
| Total earning assets (7) |
$ 14,537,630 |
$ 313,114 |
4.33% |
$ 12,864,354 |
$ 294,047 |
4.61% |
| Allowance for loan and covered loan
losses |
(132,923) |
|
|
(122,093) |
|
|
| Cash and due from banks |
147,993 |
|
|
143,921 |
|
|
| Other assets |
1,524,579 |
|
|
1,173,157 |
|
|
| Total assets |
$ 16,077,279 |
|
|
$ 14,059,339 |
|
|
| |
|
|
|
|
|
|
| Interest-bearing deposits |
$ 10,648,420 |
$ 35,303 |
0.67% |
$ 9,514,337 |
$ 46,360 |
0.98% |
| Federal Home Loan Bank advances |
492,429 |
6,451 |
2.63 |
418,777 |
7,968 |
3.84 |
| Notes payable and other
borrowings |
463,980 |
5,376 |
2.33 |
302,540 |
5,345 |
3.56 |
| Secured borrowings - owed to
securitization investors |
461,091 |
4,292 |
1.87 |
600,000 |
6,034 |
2.03 |
| Subordinated notes |
29,396 |
295 |
1.98 |
47,707 |
406 |
1.69 |
| Junior subordinated notes |
249,493 |
6,295 |
4.99 |
249,493 |
8,792 |
7.01 |
| Total interest-bearing
liabilities |
$ 12,344,809 |
$ 58,012 |
0.94% |
$ 11,132,854 |
$ 74,905 |
1.35% |
| Non-interest bearing deposits |
1,913,253 |
|
|
1,305,705 |
|
|
| Other liabilities |
189,166 |
|
|
171,749 |
|
|
| Equity |
1,630,051 |
|
|
1,449,031 |
|
|
| Total liabilities and
shareholders' equity |
$ 16,077,279 |
|
|
$ 14,059,339 |
|
|
| |
|
|
|
|
|
|
| Interest rate spread (5) (7) |
|
|
3.39% |
|
|
3.26% |
| Net free funds/contribution (6) |
$ 2,192,821 |
|
0.14% |
$ 1,731,500 |
|
0.18% |
| Net interest income/Net interest
margin (7) |
|
$ 255,102 |
3.53% |
|
$ 219,142 |
3.44% |
| |
|
|
|
|
|
|
| (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 both of the six months
ended June 30, 2012 and 2011 were $937,000 and $822,000,
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 net interest margin for the first six months of 2012 was
3.53% compared to 3.44% in the first six months of
2011. Average earnings assets for the first six months of 2012
totaled $14.5 billion, an increase of $1.7 billion compared to the
prior year period. This average earning asset growth is primarily a
result of the $1.2 billion increase in average loans, excluding
covered loans, $290.9 million of average covered loan growth from
the FDIC-assisted bank acquisitions and a $162.7 million increase
in liquidity management and other earning assets. The majority of
the increase in average loans was comprised of increases of $528.2
million in commercial loans, $204.8 million in commercial real
estate loans, $310.1 million in premium finance receivables and
$200.4 million in residential real estate loans, partially offset
by a $23.9 million decrease in home equity and all other loans. The
average earning asset growth of $1.7 billion in the first six
months of 2012 compared to the prior year period was primarily
funded by a $1.1 billion increase in the average balances of
interest-bearing deposits and an increase in the average balance of
net free funds of $461.3 million.
NON-INTEREST INCOME
For the second quarter of 2012, non-interest income totaled
$50.9 million, an increase of $14.3 million, or 39%, compared to
the second quarter of 2011. The increase was primarily
attributable to higher mortgage banking revenues and wealth
management revenues, partially offset by a decrease in bargain
purchase gains and trading losses. On a year-to-date basis,
non-interest income for the first six months of 2012 totaled $98.0
million and increased $20.4 million, or 26%, compared to the same
period in 2011.
The following table presents non-interest income by category for
the periods presented:
| |
|
|
|
| |
Three Months Ended |
|
|
| |
June 30, |
$ |
% |
| (Dollars in thousands) |
2012 |
2011 |
Change |
Change |
| Brokerage |
$ 6,396 |
$ 6,208 |
$ 188 |
3 |
| Trust and asset management |
6,997 |
4,393 |
2,604 |
59 |
| Total wealth management |
13,393 |
10,601 |
2,792 |
26 |
| Mortgage banking |
25,607 |
12,817 |
12,790 |
100 |
| Service charges on deposit
accounts |
3,994 |
3,594 |
400 |
11 |
| Gains on available-for-sale
securities, net |
1,109 |
1,152 |
(43) |
(4) |
| Gain on bargain purchases, net |
(55) |
746 |
(801) |
NM |
| Trading losses, net |
(928) |
(30) |
(898) |
NM |
| Other: |
|
|
|
|
| Fees from covered call
options |
3,114 |
2,287 |
827 |
36 |
| Bank Owned Life Insurance |
505 |
661 |
(156) |
(24) |
| Administrative services |
823 |
781 |
42 |
5 |
| Miscellaneous |
3,373 |
4,043 |
(670) |
(17) |
| Total Other |
7,815 |
7,772 |
43 |
1 |
| |
|
|
|
|
| Total Non-Interest
Income |
$ 50,935 |
$ 36,652 |
$ 14,283 |
39 |
| |
|
|
|
|
| NM - Not Meaningful |
|
|
|
| |
|
|
|
|
| |
Six Months Ended |
|
|
| |
June 30, |
$ |
% |
| (Dollars in thousands) |
2012 |
2011 |
Change |
Change |
| Brokerage |
$ 12,718 |
$ 12,533 |
$ 185 |
1 |
| Trust and asset management |
13,076 |
8,304 |
4,772 |
57 |
| Total wealth management |
25,794 |
20,837 |
4,957 |
24 |
| Mortgage banking |
44,141 |
24,448 |
19,693 |
81 |
| Service charges on deposit
accounts |
8,202 |
6,905 |
1,297 |
19 |
| Gains on available-for-sale
securities, net |
1,925 |
1,258 |
667 |
53 |
| Gain on bargain purchases, net |
785 |
10,584 |
(9,799) |
(93) |
| Trading losses, net |
(782) |
(470) |
(312) |
66 |
| Other: |
|
|
|
|
| Fees from covered call
options |
6,237 |
4,757 |
1,480 |
31 |
| Bank Owned Life Insurance |
1,424 |
1,537 |
(113) |
(7) |
| Administrative services |
1,589 |
1,498 |
91 |
6 |
| Miscellaneous |
8,643 |
6,185 |
2,458 |
40 |
| Total Other |
17,893 |
13,977 |
3,916 |
28 |
| |
|
|
|
|
| Total Non-Interest
Income |
$ 97,958 |
$ 77,539 |
$ 20,419 |
26 |
| |
|
|
|
|
| NM - Not Meaningful |
|
|
|
The significant changes in non-interest income for the quarter
ended June 30, 2012 compared to the quarter ended June 30, 2011 are
discussed below.
Wealth management revenue totaled $13.4 million in the second
quarter of 2012 and $10.6 million in the second quarter of
2011, an increase of 26%. The increase is mostly attributable to
additional revenues resulting from the acquisition of Great Lakes
Advisors in the third quarter of 2011 and the acquisition of a
community bank trust operation on March 30, 2012. 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.
For the quarter ended June 30, 2012, mortgage banking revenue
totaled $25.6 million, an increase of $12.8 million when compared
to the second quarter of 2011. The increase in mortgage banking
revenue in the second quarter of 2012 as compared to the second
quarter of 2011 resulted primarily from an increase in gain on
sales of loans, which were driven by higher origination volumes due
to a favorable mortgage interest rate environment in 2012 and
better pricing in the current quarter. Mortgage banking revenue
includes revenue from activities related to originating, selling
and servicing residential real estate loans for the secondary
market.
A summary of mortgage banking components is shown below:
| Mortgage banking
revenue |
|
|
|
|
| |
|
|
|
|
|
| |
Three Months
Ended |
Six Months Ended |
| |
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
| (Dollars in thousands) |
2012 |
2012 |
2011 |
2012 |
2011 |
| |
|
|
|
|
|
| Mortgage loans originated and
sold |
$ 853,585 |
$ 714,655 |
$ 458,538 |
$ 1,568,240 |
$ 1,020,626 |
| |
|
|
|
|
|
| Mortgage loans serviced for
others |
$ 980,534 |
$ 963,514 |
$ 943,542 |
|
|
| Fair value of mortgage servicing
rights (MSRs) |
$ 6,647 |
$ 7,201 |
$ 8,762 |
|
|
| MSRs as a percentage of loans
serviced |
0.68% |
0.75% |
0.93% |
|
|
| |
|
|
|
|
|
Increased originations in the current quarter as compared to the
second quarter of 2011 were primarily the result of a favorable
mortgage banking interest rate environment.
The Company recognized $928,000 in trading losses in the second
quarter of 2012 compared to trading losses of $30,000 in the second
quarter of 2011. The increase in trading losses resulted
primarily from fair value adjustments related to interest rate
derivatives not designated as hedges, primarily an interest rate
cap that the Company uses to manage interest rate risk associated
with rising rates on various fixed rate, longer term earning
assets.
Other non-interest income for the second quarter of 2012 totaled
$7.8 million, essentially unchanged from the second quarter of
2011. Fees from certain covered call option transactions increased
by $827,000 in the second 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 decreased in the second
quarter of 2012 compared to the prior year quarter as a result of
decreased income from accretion and adjustments to the FDIC loss
share assets, a loss on sale of property, and decreased ATM fees,
partially offset by increased swap fee revenue. The swap fee
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 second quarter of 2012 totaled
$117.2 million and increased approximately $20.0 million, or 21%,
compared to the second quarter of 2011. On a year-to-date
basis, non-interest expense for the first six months of 2012
totaled $234.9 million and increased $39.6 million, or 20%,
compared to the same period in 2011.
The following table presents non-interest expense by category
for the periods presented:
| |
|
|
|
| |
Three Months Ended |
|
|
| |
June 30, |
$ |
% |
| (Dollars in thousands) |
2012 |
2011 |
Change |
Change |
| Salaries and employee benefits: |
|
|
|
|
| Salaries |
$ 37,237 |
$ 32,008 |
5,229 |
16 |
| Commissions and bonus |
19,388 |
10,760 |
8,628 |
80 |
| Benefits |
11,514 |
10,311 |
1,203 |
12 |
| Total salaries and employee
benefits |
68,139 |
53,079 |
15,060 |
28 |
| Equipment |
5,466 |
4,409 |
1,057 |
24 |
| Occupancy, net |
7,728 |
6,772 |
956 |
14 |
| Data processing |
3,840 |
3,147 |
693 |
22 |
| Advertising and marketing |
2,179 |
1,440 |
739 |
51 |
| Professional fees |
3,847 |
4,533 |
(686) |
(15) |
| Amortization of other intangible
assets |
1,089 |
704 |
385 |
55 |
| FDIC insurance |
3,477 |
3,281 |
196 |
6 |
| OREO expenses, net |
5,848 |
6,577 |
(729) |
(11) |
| Other: |
|
|
|
|
| Commissions - 3rd party
brokers |
1,069 |
991 |
78 |
8 |
| Postage |
1,330 |
1,170 |
160 |
14 |
| Stationery and supplies |
1,035 |
888 |
147 |
17 |
| Miscellaneous |
12,138 |
10,215 |
1,923 |
19 |
| Total other |
15,572 |
13,264 |
2,308 |
17 |
| |
|
|
|
|
| Total Non-Interest
Expense |
$ 117,185 |
$ 97,206 |
$ 19,979 |
21 |
| |
|
|
|
|
| |
|
|
|
|
| |
Six Months Ended |
|
|
| |
June 30, |
$ |
% |
| (Dollars in thousands) |
2012 |
2011 |
Change |
Change |
| Salaries and employee benefits: |
|
|
|
|
| Salaries |
$ 75,170 |
$ 65,143 |
10,027 |
15 |
| Commissions and bonus |
36,190 |
21,474 |
14,716 |
69 |
| Benefits |
25,809 |
22,561 |
3,248 |
14 |
| Total salaries and employee
benefits |
137,169 |
109,178 |
27,991 |
26 |
| Equipment |
10,866 |
8,673 |
2,193 |
25 |
| Occupancy, net |
15,790 |
13,277 |
2,513 |
19 |
| Data processing |
7,458 |
6,670 |
788 |
12 |
| Advertising and marketing |
4,185 |
3,054 |
1,131 |
37 |
| Professional fees |
7,451 |
8,079 |
(628) |
(8) |
| Amortization of other intangible
assets |
2,138 |
1,393 |
745 |
53 |
| FDIC insurance |
6,834 |
7,799 |
(965) |
(12) |
| OREO expenses, net |
13,026 |
12,385 |
641 |
5 |
| Other: |
|
|
|
|
| Commissions - 3rd party
brokers |
2,090 |
2,021 |
69 |
3 |
| Postage |
2,753 |
2,248 |
505 |
22 |
| Stationery and supplies |
1,954 |
1,728 |
226 |
13 |
| Miscellaneous |
23,230 |
18,810 |
4,420 |
23 |
| Total other |
30,027 |
24,807 |
5,220 |
21 |
| |
|
|
|
|
| Total Non-Interest
Expense |
$ 234,944 |
$ 195,315 |
$ 39,629 |
20 |
|
|
|
|
|
|
The significant changes in non-interest expense for the quarter
ended June 30, 2012 compared to the quarter ended June 30, 2011 are
discussed below.
Salaries and employee benefits comprised 58% of total
non-interest expense in the second quarter of 2012 as compared to
55% in the second quarter of 2011. Salaries and employee benefits
expense increased $15.1 million, or 28%, in the second quarter of
2012 compared to the second quarter of 2011 primarily as a result
of a $5.2 million increase in salaries caused by the addition of
employees from the various acquisitions and larger staffing as the
Company grows, an $8.7 million increase in bonus and commissions
primarily attributable to the increase in variable pay based
revenue and the Company's long-term incentive program and a $1.2
million increase from employee benefits (primarily health plan and
payroll taxes related).
Equipment expense totaled $5.5 million for the second quarter of
2012, an increase of $1.1 million compared to the second 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. Equipment expense includes depreciation on equipment,
maintenance and repairs, equipment rental and software license
fees.
Occupancy expense for the second quarter of 2012 was $7.7
million, an increase of $1.0 million, or 14%, 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. Occupancy expense includes depreciation on
premises, real estate taxes, utilities and maintenance of premises,
as well as net rent expense for leased premises.
OREO expense totaled $5.8 million in the second quarter of 2012,
a decrease of $729,000 compared to $6.6 million in the second
quarter of 2011. The decrease in total OREO expenses is primarily
related to decreased OREO costs partially offset by higher
valuation adjustments of properties held in OREO in the second
quarter of 2012 as compared to the second quarter of 2011. OREO
costs include all costs related to obtaining, maintaining and
selling other real estate owned
properties.
Miscellaneous expenses in the second quarter of 2012 increased
$1.9 million, or 19% compared to the same period in the prior year.
The increase in the second 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 second quarter of 2012.
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.
As previously discussed in this release, 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 61.38% for the second quarter of 2012, compared to
62.81% in the second quarter of 2011. The net overhead ratio, based
on pre-tax adjusted earnings, was 1.46% in the second quarter of
2012, compared to 1.59% in the second quarter of 2011. These lower
ratios indicate a higher degree of efficiency in the second quarter
of 2012 as compared to the prior year quarter as the Company has
leveraged its existing infrastructure.
ASSET QUALITY
Allowance for Credit Losses, excluding covered loans
|
|
|
|
|
|
| |
Three Months
Ended |
Six Months
Ended |
| |
June
30, |
June
30, |
| (Dollars in thousands) |
2012 |
2011 |
2012 |
2011 |
| |
|
|
|
|
| Allowance for loan losses at
beginning of period |
$ 111,023 |
$ 115,049 |
$ 110,381 |
$ 113,903 |
| Provision for credit
losses |
18,394 |
28,666 |
33,548 |
53,042 |
| Other
adjustments |
(272) |
-- |
(510) |
-- |
| Reclassification from/(to)
allowance for unfunded |
|
|
|
|
| lending-related
commitments |
175 |
(317) |
327 |
1,799 |
| |
|
|
|
|
| Charge-offs: |
|
|
|
|
| Commercial |
6,046 |
7,583 |
9,308 |
16,723 |
| Commercial real estate |
9,226 |
20,691 |
17,455 |
34,033 |
| Home equity |
1,732 |
1,300 |
4,322 |
2,073 |
| Residential real estate |
388 |
282 |
563 |
1,557 |
| Premium finance receivables -
commercial |
744 |
1,893 |
1,581 |
3,400 |
| Premium finance receivables -
life insurance |
3 |
214 |
16 |
244 |
| Indirect consumer |
33 |
44 |
84 |
164 |
| Consumer and other |
51 |
266 |
361 |
426 |
| Total charge-offs |
18,223 |
32,273 |
33,690 |
58,620 |
| |
|
|
|
|
| Recoveries: |
|
|
|
|
| Commercial |
246 |
301 |
503 |
567 |
| Commercial real estate |
174 |
463 |
305 |
801 |
| Home equity |
171 |
19 |
333 |
27 |
| Residential real estate |
3 |
3 |
5 |
5 |
| Premium finance receivables -
commercial |
153 |
5,375 |
430 |
5,643 |
| Premium finance receivables -
life insurance |
18 |
12 |
39 |
12 |
| Indirect consumer |
21 |
42 |
51 |
108 |
| Consumer and other |
37 |
22 |
198 |
75 |
| Total recoveries |
823 |
6,237 |
1,864 |
7,238 |
| Net
charge-offs |
(17,400) |
(26,036) |
(31,826) |
(51,382) |
| |
|
|
|
|
| Allowance for loan
losses at period end |
$ 111,920 |
$ 117,362 |
$ 111,920 |
$ 117,362 |
| |
|
|
|
|
| Allowance for unfunded
lending-related |
|
|
|
|
| commitments at period
end |
12,903 |
2,335 |
12,903 |
2,335 |
| |
|
|
|
|
| Allowance for credit
losses at period end |
$ 124,823 |
$ 119,697 |
$ 124,823 |
$ 119,697 |
| |
|
|
|
|
| Annualized net
charge-offs by category as a |
|
|
|
|
| percentage of its own
respective category's |
|
|
|
|
| average: |
|
|
|
|
| Commercial |
0.91% |
1.45% |
0.71% |
1.65% |
| Commercial real estate |
1.01 |
2.40 |
0.97 |
1.99 |
| Home equity |
0.76 |
0.58 |
0.95 |
0.46 |
| Residential real estate |
0.20 |
0.25 |
0.16 |
0.62 |
| Premium finance receivables -
commercial |
0.14 |
(0.99) |
0.15 |
(0.33) |
| Premium finance receivables -
life insurance |
-- |
0.05 |
-- |
0.03 |
| Indirect consumer |
0.07 |
0.02 |
0.10 |
0.21 |
| Consumer and other |
0.05 |
0.98 |
0.27 |
0.69 |
| Total loans, net of unearned
income, excluding covered loans |
0.62% |
1.06% |
0.58% |
1.05% |
| |
|
|
|
|
| Net charge-offs as a
percentage of the |
|
|
|
|
| provision for credit
losses |
94.60% |
90.83% |
94.87% |
96.87% |
| |
|
|
|
|
| Loans at
period-end |
|
|
$ 11,202,842 |
$ 9,925,077 |
| Allowance for loan
losses as a percentage of loans at period end |
|
|
1.00% |
1.18% |
| Allowance for unfunded
lending-related commitments as a |
|
|
|
|
| percentage of loans at
period end |
|
|
0.11 |
0.03 |
| Allowance for credit
losses as a percentage of loans at period end |
|
|
1.11% |
1.21% |
| |
|
|
|
|
The table below summarizes the calculation of allowance for loan
losses for the Company's core loan portfolio and niche and
purchased loan portfolio as of June 30, 2012.
| |
|
|
| |
As of June 30,
2012 |
| |
|
|
As a percentage |
| |
Recorded |
Calculated |
of its own respective |
| (Dollars in thousands) |
Investment |
Allowance |
category's
balance |
| |
|
|
|
| Commercial: |
|
|
|
| Commercial and industrial
(1) |
$ 1,612,527 |
$ 17,477 |
1.08% |
| Asset-based lending (1) |
487,830 |
5,457 |
1.12 |
| Municipal |
79,708 |
784 |
0.98 |
| Leases |
77,806 |
241 |
0.31 |
| Other |
1,842 |
13 |
0.71 |
| Commercial real-estate: |
|
|
|
| Residential construction |
44,726 |
1,215 |
2.72 |
| Commercial construction
(1) |
156,150 |
3,666 |
2.35 |
| Land |
165,269 |
6,848 |
4.14 |
| Office (1) |
555,968 |
6,176 |
1.11 |
| Industrial (1) |
593,033 |
5,721 |
0.96 |
| Retail (1) |
556,958 |
5,940 |
1.07 |
| Multi-family (1) |
336,565 |
9,624 |
2.86 |
| Mixed use and other (1) |
1,152,100 |
14,611 |
1.27 |
| Home equity (1) |
811,571 |
13,878 |
1.71 |
| Residential real-estate (1) |
372,450 |
6,724 |
1.81 |
| Total core loan
portfolio |
$ 7,004,503 |
$ 98,375 |
1.40% |
| |
|
|
|
| Commercial: |
|
|
|
| Franchise |
$ 178,619 |
$ 1,764 |
0.99% |
| Mortgage warehouse lines of
credit |
123,804 |
913 |
0.74 |
| Community Advantage - homeowner
associations |
73,289 |
183 |
0.25 |
| Aircraft |
22,803 |
151 |
0.66 |
| Purchased non-covered
commercial loans (2) |
14,953 |
-- |
-- |
| Commercial real-estate: |
|
|
|
| Purchased non-covered
commercial real-estate (2) |
105,750 |
-- |
-- |
| Purchased non-covered home equity (2) |
9,420 |
-- |
-- |
| Purchased non-covered residential real-estate
(2) |
3,044 |
-- |
-- |
| Premium finance receivables |
|
|
|
| Commercial insurance loans |
1,830,044 |
7,410 |
0.40 |
| Life insurance loans (1) |
1,111,237 |
1,112 |
0.10 |
| Purchased life insurance loans
(2) |
544,963 |
-- |
-- |
| Indirect consumer |
72,482 |
640 |
0.88 |
| Consumer and other (1) |
105,946 |
1,372 |
1.29 |
| Purchased non-covered consumer and other
(2) |
1,985 |
-- |
-- |
| Total niche and
purchased loan portfolio |
$ 4,198,339 |
$ 13,545 |
0.32% |
| |
|
|
|
| Total loans, net of
unearned income, excluding covered loans |
$ 11,202,842 |
$ 111,920 |
1.00% |
| |
|
|
|
| (1) Excludes purchased loans
reported in accordance with ASC 310-20 and ASC 310-30. |
| (2) Purchased loans represent
loans reported in accordance with ASC 310-20 and ASC 310-30. |
| |
| |
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 $18.4 million for the second quarter
of 2012, $15.2 million for the first quarter of 2012 and $28.7
million for the second quarter of 2011. For the quarter ended
June 30, 2012, net charge-offs, excluding covered loans, totaled
$17.4 million compared to $14.4 million in the first quarter of
2012 and $26.0 million recorded in the second quarter of
2011. Annualized net charge-offs as a percentage of average
loans, excluding covered loans, were 0.62% in the second quarter of
2012, 0.53% in the first quarter of 2012 and 1.06% in the second
quarter of 2011. The lower level of provision for credit
losses and the allowance for credit losses in 2012, reflect the
improvements in credit quality metrics compared to
2011.
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.
As part of a quarterly review performed by management to
determine if the Company's allowance for loan losses is
appropriate, an analysis is prepared on the loan portfolio based
upon a breakout of core loans and niche loans. A summary of
the allowance for loan losses calculated for the loan components in
both the core loan portfolio and the niche loan portfolio is shown
on the previous page. The allowance for loan losses to core
loans was 1.40% at June 30, 2012 compared to 0.32% for niche loans
and 1.00% for the entire loan portfolio. Outstanding core
loans at June 30, 2012 represent 63% of all loans outstanding while
the calculated allowance for loan losses on core loans represents
88% of the total allowance for loan losses. A key component of
calculating the allowance for loan losses and determining the
appropriateness of the allowance for loan losses at quarter-end is
historical net charge-offs. Over the past three years, 89% of
all net charge-offs have occurred in the core loan portfolio.
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 June 30, 2012:
| |
|
90+ days |
60-89 |
30-59 |
|
|
| As of June 30, 2012 |
|
and still |
days past |
days past |
|
|
| (Dollars in thousands) |
Nonaccrual |
accruing |
due |
due |
Current |
Total Loans |
| Loan Balances: |
|
|
|
|
|
|
| Commercial |
|
|
|
|
|
|
| Commercial and industrial |
$ 27,911 |
$ -- |
$ 5,557 |
$ 17,227 |
$ 1,570,366 |
$ 1,621,061 |
| Franchise |
1,792 |
-- |
-- |
-- |
176,827 |
178,619 |
| Mortgage warehouse lines of
credit |
-- |
-- |
-- |
-- |
123,804 |
123,804 |
| Community Advantage -
homeowners association |
-- |
-- |
-- |
-- |
73,289 |
73,289 |
| Aircraft |
428 |
-- |
-- |
170 |
22,205 |
22,803 |
| Asset-based lending |
342 |
-- |
172 |
1,074 |
487,619 |
489,207 |
| Municipal |
-- |
-- |
-- |
-- |
79,708 |
79,708 |
| Leases |
-- |
-- |
-- |
1 |
77,805 |
77,806 |
| Other |
-- |
-- |
-- |
-- |
1,842 |
1,842 |
| Purchased non-covered
commercial (1) |
-- |
486 |
-- |
57 |
4,499 |
5,042 |
| Total commercial |
30,473 |
486 |
5,729 |
18,529 |
2,617,964 |
2,673,181 |
| Commercial real-estate: |
|
|
|
|
|
|
| Residential construction |
892 |
-- |
6,041 |
5,773 |
32,020 |
44,726 |
| Commercial construction |
3,011 |
-- |
13,131 |
330 |
140,223 |
156,695 |
| Land |
13,459 |
-- |
3,276 |
6,044 |
142,490 |
165,269 |
| Office |
4,796 |
-- |
891 |
1,868 |
562,879 |
570,434 |
| Industrial |
1,820 |
-- |
3,158 |
1,320 |
591,919 |
598,217 |
| Retail |
8,158 |
-- |
1,351 |
6,657 |
546,617 |
562,783 |
| Multi-family |
3,312 |
-- |
151 |
1,447 |
332,871 |
337,781 |
| Mixed use and other |
20,629 |
-- |
15,530 |
16,063 |
1,126,930 |
1,179,152 |
| Purchased non-covered
commercial real-estate (1) |
-- |
2,232 |
2,352 |
1,057 |
45,821 |
51,462 |
| Total commercial
real-estate |
56,077 |
2,232 |
45,881 |
40,559 |
3,521,770 |
3,666,519 |
| Home equity |
10,583 |
-- |
2,182 |
3,195 |
805,031 |
820,991 |
| Residential real estate |
9,387 |
-- |
3,765 |
1,558 |
360,128 |
374,838 |
| Purchased non-covered residential real estate
(1) |
-- |
-- |
-- |
-- |
656 |
656 |
| Premium finance receivables |
|
|
|
|
|
|
| Commercial insurance loans |
7,404 |
5,184 |
4,796 |
7,965 |
1,804,695 |
1,830,044 |
| Life insurance loans |
-- |
-- |
-- |
30 |
1,111,207 |
1,111,237 |
| Purchased life insurance loans
(1) |
-- |
-- |
-- |
-- |
544,963 |
544,963 |
| Indirect consumer |
132 |
234 |
51 |
312 |
71,753 |
72,482 |
| Consumer and other |
1,446 |
-- |
483 |
265 |
105,669 |
107,863 |
| Purchased non-covered consumer and other
(1) |
-- |
-- |
-- |
-- |
68 |
68 |
| Total loans, net of unearned
income, excluding covered loans |
$ 115,502 |
$ 8,136 |
$ 62,887 |
$ 72,413 |
$ 10,943,904 |
$ 11,202,842 |
| Covered loans |
-- |
145,115 |
14,658 |
7,503 |
446,786 |
614,062 |
| Total loans, net of unearned
income |
$ 115,502 |
$ 153,251 |
$ 77,545 |
$ 79,916 |
$ 11,390,690 |
$ 11,816,904 |
| |
|
|
|
|
|
|
| (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 |
1.7% |
-- % |
0.3% |
1.1% |
96.9% |
100.0% |
| Franchise |
1.0 |
-- |
-- |
-- |
99.0 |
100.0 |
| Mortgage warehouse lines of
credit |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Community Advantage -
homeowners association |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Aircraft |
1.9 |
-- |
-- |
0.7 |
97.4 |
100.0 |
| Asset-based lending |
0.1 |
-- |
-- |
0.2 |
99.7 |
100.0 |
| Municipal |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Leases |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Other |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Purchased non-covered
commercial (1) |
-- |
9.6 |
-- |
1.1 |
89.3 |
100.0 |
| Total commercial |
1.1 |
-- |
0.2 |
0.7 |
98.0 |
100.0 |
| Commercial real-estate |
|
|
|
|
|
|
| Residential construction |
2.0 |
-- |
13.5 |
12.9 |
71.6 |
100.0 |
| Commercial construction |
1.9 |
-- |
8.4 |
0.2 |
89.5 |
100.0 |
| Land |
8.1 |
-- |
2.0 |
3.7 |
86.2 |
100.0 |
| Office |
0.8 |
-- |
0.2 |
0.3 |
98.7 |
100.0 |
| Industrial |
0.3 |
-- |
0.5 |
0.2 |
99.0 |
100.0 |
| Retail |
1.4 |
-- |
0.2 |
1.2 |
97.2 |
100.0 |
| Multi-family |
1.0 |
-- |
-- |
0.4 |
98.6 |
100.0 |
| Mixed use and other |
1.7 |
-- |
1.3 |
1.4 |
95.6 |
100.0 |
| Purchased non-covered
commercial real-estate (1) |
-- |
4.3 |
4.6 |
2.1 |
89.0 |
100.0 |
| Total commercial
real-estate |
1.5 |
0.1 |
1.3 |
1.1 |
96.0 |
100.0 |
| Home equity |
1.3 |
-- |
0.3 |
0.4 |
98.0 |
100.0 |
| Residential real estate |
2.5 |
-- |
1.0 |
0.4 |
96.1 |
100.0 |
| Purchased non-covered residential real estate
(1) |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Premium finance receivables |
|
|
|
|
|
|
| Commercial insurance loans |
0.4 |
0.3 |
0.3 |
0.4 |
98.6 |
100.0 |
| Life insurance loans |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Purchased life insurance loans
(1) |
-- |
-- |
-- |
-- |
100.0 |
100.0 |
| Indirect consumer |
0.2 |
0.3 |
0.1 |
0.4 |
99.0 |
100.0 |
| Consumer and other |
1.3 |
-- |
0.4 |
0.2 |
98.1 |
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 |
0.6 |
0.6 |
97.7% |
100.0% |
| Covered loans |
-- |
23.6 |
2.4 |
1.2 |
72.8 |
100.0 |
| Total loans, net of unearned
income |
1.0 |
1.3 |
0.7 |
0.7 |
96.3% |
100.0% |
As of June 30, 2012, $62.9 million of all loans, excluding
covered loans, or 0.6%, were 60 to 89 days past due and $72.4
million, or 0.6%, were 30 to 59 days (or one payment) past due. 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. 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 June 30, 2012 that are current with regard to the contractual
terms of the loan agreement represent 98.0% of the total home
equity portfolio. Residential real estate loans at June 30,
2012 that are current with regards to the contractual terms of the
loan agreements comprise 96.1% 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 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% |
Non-performing Assets, excluding covered 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.
| |
| |
June 30, |
March 31, |
June 30, |
| (Dollars in thousands) |
2012 |
2012 |
2011 |
| |
|
|
|
| Loans past due greater than 90 days
and still accruing: |
|
|
|
| Commercial |
$ -- |
$ -- |
$ -- |
| Commercial real-estate |
-- |
73 |
-- |
| Home equity |
-- |
-- |
-- |
| Residential real-estate |
-- |
-- |
-- |
| Premium finance receivables -
commercial |
5,184 |
4,619 |
4,446 |
| Premium finance receivables -
life insurance |
-- |
-- |
324 |
| Indirect consumer |
234 |
257 |
284 |
| Consumer and other |
-- |
-- |
-- |
| Total loans past due greater
than 90 days and still accruing |
5,418 |
4,949 |
5,054 |
| |
|
|
|
| Non-accrual loans: |
|
|
|
| Commercial |
30,473 |
19,835 |
26,168 |
| Commercial real-estate |
56,077 |
62,704 |
89,793 |
| Home equity |
10,583 |
12,881 |
15,853 |
| Residential real-estate |
9,387 |
5,329 |
7,379 |
| Premium finance receivables -
commercial |
7,404 |
7,650 |
10,309 |
| Premium finance receivables -
life insurance |
-- |
-- |
670 |
| Indirect consumer |
132 |
152 |
89 |
| Consumer and other |
1,446 |
121 |
757 |
| Total non-accrual loans |
115,502 |
108,672 |
151,018 |
| |
|
|
|
| Total non-performing
loans: |
|
|
|
| Commercial |
30,473 |
19,835 |
26,168 |
| Commercial real-estate |
56,077 |
62,777 |
89,793 |
| Home equity |
10,583 |
12,881 |
15,853 |
| Residential real-estate |
9,387 |
5,329 |
7,379 |
| Premium finance receivables -
commercial |
12,588 |
12,269 |
14,755 |
| Premium finance receivables -
life insurance |
-- |
-- |
994 |
| Indirect consumer |
366 |
409 |
373 |
| Consumer and other |
1,446 |
121 |
757 |
| Total non-performing loans |
$ 120,920 |
$ 113,621 |
$ 156,072 |
| Other real estate owned |
66,532 |
69,575 |
82,772 |
| Other real estate owned -
obtained in acquisition |
6,021 |
6,661 |
-- |
| Total non-performing
assets |
$ 193,473 |
$ 189,857 |
$ 238,844 |
| |
|
|
|
| Total non-performing
loans by category as a percent of its own respective category's
period-end balance: |
|
|
|
| Commercial |
1.14% |
0.78% |
1.23% |
| Commercial real-estate |
1.53 |
1.75 |
2.66 |
| Home equity |
1.29 |
1.53 |
1.80 |
| Residential real-estate |
2.50 |
1.47 |
2.24 |
| Premium finance receivables -
commercial |
0.69 |
0.81 |
1.03 |
| Premium finance receivables -
life insurance |
-- |
-- |
0.06 |
| Indirect consumer |
0.51 |
0.61 |
0.65 |
| Consumer and other |
1.34 |
0.11 |
0.75 |
| Total loans, net of unearned
income |
1.08% |
1.06% |
1.57% |
| |
|
|
|
| Total non-performing
assets as a percentage of total assets |
1.17% |
1.17% |
1.63% |
| |
|
|
|
| Allowance for loan
losses as a percentage of total non-performing loans |
92.56% |
97.71% |
75.20% |
| |
Non-performing Commercial and Commercial Real Estate
Commercial non-performing loans totaled $30.5 million as of June
30, 2012 compared to $19.8 million as of March 31, 2012 and $26.2
million as of June 30, 2011. The increase in commercial
non-performing loans was primarily related to one credit
relationship totaling $13 million which should be removed from
non-performing status shortly. Commercial real estate
non-performing loans totaled $56.1 million as of June 30, 2012
compared to $62.8 million as of March 31, 2012 and $89.8 million as
of June 30, 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 $20.0 million as of June 30, 2012. The balance
increased $1.8 million from March 31, 2012 and decreased $3.3
million from June 30, 2011. The June 30, 2012 non-performing
balance is comprised of $9.4 million of residential real estate (44
individual credits) and $10.6 million of home equity loans (38
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 June 30, 2012 and
2011, and the amount of net charge-offs for the quarters then
ended.
|
|
| |
June 30, |
June 30, |
| (Dollars in thousands) |
2012 |
2011 |
| Non-performing premium finance receivables -
commercial |
$ 12,588 |
$ 14,755 |
| - as a percent of premium
finance receivables - commercial outstanding |
0.69% |
1.03% |
| |
|
|
| Net charge-offs (recoveries) of premium
finance receivables - commercial |
$ 591 |
$ (3,482) |
| - annualized as a percent of
average premium finance receivables - commercial |
0.14% |
(0.99)% |
| |
|
|
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 and
six month periods ending June 30, 2012 and 2011:
| |
| |
Three Months
Ended |
Six Months
Ended |
| |
June 30, |
June 30, |
June 30, |
June 30, |
| (Dollars in thousands) |
2012 |
2011 |
2012 |
2011 |
| Balance at beginning of period |
$ 113,621 |
$ 155,387 |
$ 120,084 |
$ 142,132 |
| Additions, net |
35,860 |
45,742 |
53,727 |
101,910 |
| Return to performing
status |
(1,116) |
(2,193) |
(2,038) |
(3,368) |
| Payments received |
(9,823) |
(12,553) |
(14,463) |
(14,142) |
| Transfer to OREO |
(6,555) |
(12,926) |
(13,156) |
(35,351) |
| Charge-offs |
(11,637) |
(17,611) |
(22,944) |
(31,711) |
| Net change for niche loans
(1) |
570 |
226 |
(290) |
(3,398) |
| Balance at end of
period |
$ 120,920 |
$ 156,072 |
$ 120,920 |
$ 156,072 |
| |
|
|
|
|
| (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:
| |
| |
June 30, |
March 31, |
June 30, |
| (Dollars in thousands) |
2012 |
2012 |
2011 |
| Accruing: |
|
|
|
| Commercial |
$ 21,478 |
$ 9,324 |
$ 12,396 |
| Commercial real estate |
128,662 |
134,516 |
72,363 |
| Residential real estate and
other |
6,450 |
7,176 |
1,079 |
| Total accrual |
$ 156,590 |
$ 151,016 |
$ 85,838 |
| |
|
|
|
| Non-accrual: (1) |
|
|
|
| Commercial |
$ 1,562 |
$ 1,465 |
$ 3,587 |
| Commercial real estate |
13,215 |
11,805 |
12,308 |
| Residential real estate and
other |
939 |
760 |
1,311 |
| Total non-accrual |
$ 15,716 |
$ 14,030 |
$ 17,206 |
| |
|
|
|
| Total restructured
loans: |
|
|
|
| Commercial |
$ 23,040 |
$ 10,789 |
$ 15,983 |
| Commercial real estate |
141,877 |
146,321 |
84,671 |
| Residential real estate and
other |
7,389 |
7,936 |
2,390 |
| Total restructured loans |
$ 172,306 |
$ 165,046 |
$ 103,044 |
| |
|
|
|
| (1) Included in total
non-performing loans. |
| |
At June 30, 2012, the Company had $172.3 million in loans with
modified terms representing 185 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
June 30, 2012 and June 30, 2011, and shows the changes in the
balance during the periods presented:
| Three Months Ended June 30,
2012 |
|
|
Residential |
|
| |
|
Commercial |
Real Estate |
|
| (Dollars in
thousands) |
Commercial |
Real Estate |
and Other |
Total |
| |
|
|
|
|
| Balance at beginning of period |
$ 10,789 |
$ 146,321 |
$ 7,936 |
$ 165,046 |
| Additions during the period |
12,765 |
7,860 |
29 |
20,654 |
| Reductions: |
|
|
|
|
| Charge-offs |
(161) |
(1,316) |
(294) |
(1,771) |
| Transferred to OREO |
-- |
-- |
-- |
-- |
| Removal of restructured loan
status (1) |
(200) |
(1,414) |
(273) |
(1,887) |
| Payments received |
(153) |
(9,574) |
(9) |
(9,736) |
| |
|
|
|
|
| Balance at period end |
$ 23,040 |
$ 141,877 |
$ 7,389 |
$ 172,306 |
| |
|
|
|
|
| |
|
|
|
|
| Three Months Ended June 30,
2011 |
|
|
Residential |
|
| |
|
Commercial |
Real Estate |
|
| (Dollars in
thousands) |
Commercial |
Real Estate |
and Other |
Total |
| |
|
|
|
|
| Balance at beginning of period |
$ 18,202 |
$ 76,376 |
$ 1,991 |
$ 96,569 |
| Additions during the period |
277 |
32,459 |
409 |
33,145 |
| Reductions: |
|
|
|
|
| Charge-offs |
(1,533) |
(8,766) |
(4) |
(10,303) |
| Transferred to OREO |
-- |
(4,952) |
-- |
(4,952) |
| Removal of restructured loan
status (1) |
-- |
(926) |
-- |
(926) |
| Payments received |
(963) |
(9,520) |
(6) |
(10,489) |
| |
|
|
|
|
| Balance at period end |
$ 15,983 |
$ 84,671 |
$ 2,390 |
$ 103,044 |
| |
|
|
|
|
| (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. |
| |
|
|
|
|
| Six Months Ended June 30,
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 |
12,883 |
46,379 |
1,089 |
60,351 |
| Reductions: |
|
|
|
|
| Charge-offs |
(161) |
(2,658) |
(294) |
(3,113) |
| Transferred to OREO |
-- |
(2,129) |
-- |
(2,129) |
| Removal of restructured loan
status (1) |
(200) |
(1,877) |
(273) |
(2,350) |
| Payments received |
(316) |
(10,634) |
(21) |
(10,971) |
| |
|
|
|
|
| Balance at period end |
$ 23,040 |
$ 141,877 |
$ 7,389 |
$ 172,306 |
| |
|
|
|
|
| |
|
|
|
|
| Six Months Ended June 30,
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 |
1,962 |
39,946 |
604 |
42,512 |
| Reductions: |
|
|
|
|
| Charge-offs |
(2,533) |
(10,964) |
(4) |
(13,501) |
| Transferred to OREO |
-- |
(6,743) |
-- |
(6,743) |
| Removal of restructured loan
status (1) |
(244) |
(5,596) |
-- |
(5,840) |
| Payments received |
(1,230) |
(13,338) |
(6) |
(14,574) |
| |
|
|
|
|
| Balance at period end |
$ 15,983 |
$ 84,671 |
$ 2,390 |
$ 103,044 |
| |
|
|
|
|
| (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 June 30,
2012 and approximately $3.4 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 June 30, 2012 and
shows the activity for the respective period and the balance for
each property type:
| |
| |
Three Months Ended |
| |
June 30, |
March 31, |
June 30, |
| (Dollars in
thousands) |
2012 |
2012 |
2011 |
| Balance at beginning of period |
$ 76,236 |
$ 86,523 |
$ 85,290 |
| Disposals/resolved |
(7,523) |
(11,681) |
(8,253) |
| Transfers in at fair value,
less costs to sell |
8,850 |
6,876 |
10,190 |
| Additions from acquisition |
-- |
-- |
-- |
| Fair value adjustments |
(5,010) |
(5,482) |
(4,455) |
| Balance at end of period |
$ 72,553 |
$ 76,236 |
$ 82,772 |
| |
|
|
|
| |
Period
End |
| |
June 30, |
March 31, |
June 30, |
| Balance by Property
Type |
2012 |
2012 |
2011 |
| Residential real estate |
$ 7,830 |
$ 6,647 |
$ 7,196 |
| Residential real estate
development |
13,464 |
14,764 |
16,591 |
| Commercial real estate |
51,259 |
54,825 |
58,985 |
| Total |
$ 72,553 |
$ 76,236 |
$ 82,772 |
| |
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.
| |
| |
June 30, |
March 31, |
June 30, |
| (Dollars in thousands) |
2012 |
2012 |
2011 |
| |
|
|
|
| Period End Balances: |
|
|
|
| Loans |
$ 614,062 |
$ 691,220 |
$ 408,669 |
| Other real estate owned |
34,860 |
40,851 |
31,053 |
| Other assets |
916 |
-- |
-- |
| FDIC Indemnification asset |
222,568 |
263,212 |
110,049 |
| Total covered assets |
$ 872,406 |
$ 995,283 |
$ 549,771 |
| |
|
|
|
| Allowance for Covered Loan Losses
Rollforward: |
|
|
|
| Balance at beginning of
quarter |
$ 17,735 |
$ 12,977 |
$ 4,844 |
| Provision for covered loan
losses before benefit attributable to FDIC loss share
agreements |
11,591 |
11,229 |
2,599 |
| Benefit attributable to FDIC
loss share agreements |
(9,294) |
(8,983) |
(2,078) |
| Net provision for covered loan
losses |
2,297 |
2,246 |
521 |
| Increase in FDIC
indemnification asset |
9,294 |
8,983 |
2,076 |
| Loans charged-off |
(8,793) |
(6,523) |
-- |
| Recoveries of loans
charged-off |
27 |
52 |
2 |
| Net charge-offs |
(8,766) |
(6,471) |
2 |
| Balance at end of quarter |
$ 20,560 |
$ 17,735 |
$ 7,443 |
| |
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 |
| |
June 30,
2012 |
June 30, 2011 |
| |
|
Life Insurance |
|
Life Insurance |
| |
Bank |
Premium |
Bank |
Premium |
| (Dollars in thousands) |
Acquisitions |
Finance Loans |
Acquisitions |
Finance Loans |
| |
|
|
|
|
| Accretable yield, beginning balance |
$ 182,222 |
$ 15,848 |
$ 91,332 |
$ 25,543 |
| Acquisitions |
-- |
-- |
(2,005) |
-- |
| Accretable yield amortized to interest
income |
(13,387) |
(2,749) |
(7,977) |
(5,122) |
| Accretable yield amortized to indemnification
asset(1) |
(18,063) |
-- |
(5,591) |
-- |
| Reclassification from non-accretable
difference(2) |
7,590 |
1,145 |
1,831 |
3,673 |
| Increases in interest cash flows due to
payments and changes in interest rates |
13,439 |
382 |
3,158 |
797 |
| Accretable yield, ending balance (3) |
$ 171,801 |
$ 14,626 |
$ 80,748 |
$ 24,891 |
| |
|
|
|
|
| |
|
|
|
|
| |
Six Months
Ended |
Six Months Ended |
| |
June 30,
2012 |
June 30, 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 |
-- |
5,102 |
-- |
| Accretable yield amortized to interest
income |
(28,279) |
(6,486) |
(15,049) |
(14,174) |
| Accretable yield amortized to indemnification
asset(1) |
(39,440) |
-- |
(12,678) |
-- |
| Reclassification from non-accretable
difference(2) |
49,191 |
1,145 |
50,675 |
3,857 |
| Increases in interest cash flows due to
payments and changes in interest rates |
14,921 |
1,106 |
12,889 |
1,893 |
| Accretable yield, ending balance (3) |
$ 171,801 |
$ 14,626 |
$ 80,748 |
$ 24,891 |
| |
|
|
|
|
| (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. |
| (3) As of June 30, 2012, the
Company estimates that the remaining accretable yield balance to be
amortized to the indemnification asset for the bank acquisitions is
$88.2 million. The remainder of the accretable yield related
to bank acquisitions is expected to be amortized to interest
income. |
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, Orland
Park, 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 business
units:
- First Insurance Funding Corporation, one of the largest
insurance premium finance companies operating in the United States,
serves commercial and life insurance loan customers throughout the
country.
- First Insurance Funding of Canada serves commercial insurance
loan customers throughout Canada
- Tricom, Inc. of Milwaukee provides high-yielding, short-term
accounts receivable financing and value-added out-sourced
administrative services, such as data processing of payrolls,
billing and cash management services, to temporary staffing service
clients located throughout the United States.
- Wintrust Mortgage, a division of Barrington Bank & Trust
Company, engages primarily in the origination and purchase of
residential mortgages for sale into the secondary market through
origination offices located throughout the United
States. Loans are also originated nationwide through
relationships with wholesale and correspondent offices.
- Wayne Hummer Investments, LLC is a broker-dealer providing a
full range of private client and brokerage services to clients and
correspondent banks located primarily in the Midwest.
- Great Lakes Advisors 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 2011
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, July 19, 2012 regarding second quarter 2012
results. Individuals interested in listening should call (877)
363-5049 and enter Conference ID #11619767. 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 second 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 |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| |
2012 |
2012 |
2011 |
2011 |
2011 |
| Selected Financial Condition Data (at
end of period): |
|
|
|
|
|
| Total assets |
$ 16,576,282 |
$ 16,172,018 |
$ 15,893,808 |
$ 15,914,804 |
$ 14,615,897 |
| Total loans, excluding covered loans |
11,202,842 |
10,717,384 |
10,521,377 |
10,272,711 |
9,925,077 |
| Total deposits |
13,057,581 |
12,665,853 |
12,307,267 |
12,306,008 |
11,259,260 |
| Junior subordinated debentures |
249,493 |
249,493 |
249,493 |
249,493 |
249,493 |
| Total shareholders' equity |
1,722,074 |
1,687,921 |
1,543,533 |
1,528,187 |
1,473,386 |
| Selected Statements of Income
Data: |
|
|
|
|
|
| Net interest income |
128,270 |
125,895 |
124,647 |
118,410 |
108,706 |
| Net revenue (1) |
179,205 |
172,918 |
169,559 |
185,657 |
145,358 |
| Pre-tax adjusted earnings (2) |
68,841 |
63,688 |
59,362 |
57,524 |
52,860 |
| Net income |
25,595 |
23,210 |
19,221 |
30,202 |
11,750 |
| Net income per common share – Basic |
$ 0.63 |
$ 0.61 |
$ 0.51 |
$ 0.82 |
$ 0.31 |
| Net income per common share –
Diluted |
$ 0.52 |
$ 0.50 |
$ 0.41 |
$ 0.65 |
$ 0.25 |
| Selected Financial Ratios and Other
Data: |
|
|
|
|
|
| Performance Ratios: |
|
|
|
|
|
| Net interest margin (2) |
3.51% |
3.55% |
3.45% |
3.37% |
3.40% |
| Non-interest income to average assets |
1.26% |
1.19% |
1.11% |
1.72% |
1.04% |
| Non-interest expense to average
assets |
2.89% |
2.99% |
2.94% |
2.72% |
2.76% |
| Net overhead ratio (2) (3) |
1.63% |
1.80% |
1.83% |
1.00% |
1.72% |
| Net overhead ratio - pre-tax adjusted
earnings (2) (3) |
1.46% |
1.58% |
1.62% |
1.56% |
1.59% |
| Efficiency ratio - FTE (2) (4) |
65.63% |
68.24% |
69.99% |
57.21% |
67.22% |
| Efficiency ratio - pre-tax adjusted earnings
(2) (4) |
61.38% |
62.31% |
64.76% |
63.69% |
62.81% |
| Return on average assets |
0.63% |
0.59% |
0.48% |
0.77% |
0.33% |
| Return on average common equity |
6.08% |
5.90% |
4.87% |
7.94% |
3.05% |
| Average total assets |
$ 16,319,207 |
$ 15,835,350 |
$ 16,014,209 |
$ 15,526,427 |
$ 14,105,136 |
| Average total shareholders' equity |
1,695,440 |
1,564,662 |
1,531,936 |
1,507,717 |
1,460,071 |
| Average loans to average deposits ratio |
88.2% |
88.1% |
86.6% |
85.0% |
90.9% |
| Average loans to average deposits ratio
(including covered loans) |
93.4 |
93.5 |
91.9 |
90.7 |
94.8 |
| Common Share Data at end of
period: |
|
|
|
|
|
| Market price per common share |
$ 35.50 |
$ 35.79 |
$ 28.05 |
$ 25.81 |
$ 32.18 |
| Book value per common share (2) |
$ 35.86 |
$ 35.25 |
$ 34.23 |
$ 33.92 |
$ 33.63 |
| Tangible common book value per share (2) |
$ 27.69 |
$ 27.57 |
$ 26.72 |
$ 26.47 |
$ 26.67 |
| Common shares outstanding |
36,340,843 |
36,289,380 |
35,978,349 |
35,924,066 |
34,988,125 |
| Other Data at end of period:(8) |
|
|
|
|
|
| Leverage Ratio (5) |
10.2% |
10.5% |
9.4% |
9.6% |
10.3% |
| Tier 1 Capital to risk-weighted assets
(5) |
12.4% |
12.7% |
11.8% |
12.0% |
12.3% |
| Total capital to risk-weighted assets
(5) |
13.5% |
13.9% |
13.0% |
13.3% |
13.5% |
| Tangible common equity ratio (TCE) (2)
(7) |
7.4% |
7.5% |
7.5% |
7.4% |
7.9% |
| Tangible common equity ratio, assuming full
conversion of preferred stock (2) (7) |
8.4% |
8.6% |
7.8% |
7.7% |
8.2% |
| Allowance for credit losses (6) |
$ 124,823 |
$ 124,101 |
$ 123,612 |
$ 132,051 |
$ 119,697 |
| Non-performing loans |
120,920 |
113,621 |
120,084 |
133,976 |
156,072 |
| Allowance for credit losses to total loans
(6) |
1.11% |
1.16% |
1.17% |
1.29% |
1.21% |
| Non-performing loans to total loans |
1.08% |
1.06% |
1.14% |
1.30% |
1.57% |
| Number of: |
|
|
|
|
|
| Bank subsidiaries |
15 |
15 |
15 |
15 |
15 |
| Non-bank subsidiaries |
8 |
7 |
7 |
7 |
7 |
| Banking offices |
100 |
98 |
99 |
99 |
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) |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (In thousands) |
2012 |
2012 |
2011 |
2011 |
2011 |
| Assets |
|
|
|
|
|
| Cash and due from banks |
$ 176,529 |
$ 146,014 |
$ 148,012 |
$ 147,270 |
$ 140,434 |
| Federal funds sold and securities purchased
under resale agreements |
15,227 |
14,588 |
21,692 |
13,452 |
43,634 |
| Interest-bearing deposits with other
banks |
1,117,888 |
900,755 |
749,287 |
1,101,353 |
990,308 |
| Available-for-sale securities, at fair
value |
1,196,702 |
1,869,344 |
1,291,797 |
1,267,682 |
1,456,426 |
| Trading account securities |
608 |
1,140 |
2,490 |
297 |
509 |
| Federal Home Loan Bank and Federal Reserve
Bank stock, at cost |
92,792 |
88,216 |
100,434 |
99,749 |
86,761 |
| Brokerage customer receivables |
31,448 |
31,085 |
27,925 |
27,935 |
29,736 |
| Mortgage loans held-for-sale, at fair
value |
511,566 |
339,600 |
306,838 |
204,081 |
133,083 |
| Mortgage loans held-for-sale, at lower of
cost or market |
14,538 |
10,728 |
13,686 |
8,955 |
5,881 |
| Loans, net of unearned income, excluding
covered loans |
11,202,842 |
10,717,384 |
10,521,377 |
10,272,711 |
9,925,077 |
| Covered loans |
614,062 |
691,220 |
651,368 |
680,075 |
408,669 |
| Total loans |
11,816,904 |
11,408,604 |
11,172,745 |
10,952,786 |
10,333,746 |
| Less: Allowance for loan losses |
111,920 |
111,023 |
110,381 |
118,649 |
117,362 |
|
Less: Allowance for covered loan losses |
20,560 |
17,735 |
12,977 |
12,496 |
7,443 |
| Net loans |
11,684,424 |
11,279,846 |
11,049,387 |
10,821,641 |
10,208,941 |
| Premises and equipment, net |
449,608 |
434,700 |
431,512 |
412,478 |
403,577 |
| FDIC indemnification asset |
222,568 |
263,212 |
344,251 |
379,306 |
110,049 |
| Accrued interest receivable and other
assets |
710,275 |
463,394 |
444,912 |
468,711 |
389,634 |
| Trade date securities receivable |
-- |
-- |
634,047 |
637,112 |
322,091 |
| Goodwill |
330,896 |
307,295 |
305,468 |
302,369 |
283,301 |
| Other intangible assets |
21,213 |
22,101 |
22,070 |
22,413 |
11,532 |
| Total
assets |
$ 16,576,282 |
$ 16,172,018 |
$ 15,893,808 |
$ 15,914,804 |
$ 14,615,897 |
| |
|
|
|
|
|
| Liabilities and Shareholders'
Equity |
|
|
|
|
|
| Deposits: |
|
|
|
|
|
| Non-interest bearing |
$ 2,047,715 |
$ 1,901,753 |
$ 1,785,433 |
$ 1,631,709 |
$ 1,397,433 |
| Interest
bearing |
11,009,866 |
10,764,100 |
10,521,834 |
10,674,299 |
9,861,827 |
| Total deposits |
13,057,581 |
12,665,853 |
12,307,267 |
12,306,008 |
11,259,260 |
| Notes payable |
2,457 |
52,639 |
52,822 |
3,004 |
1,000 |
| Federal Home Loan Bank advances |
564,301 |
466,391 |
474,481 |
474,570 |
423,500 |
| Other borrowings |
375,523 |
411,037 |
443,753 |
448,082 |
432,706 |
| Secured borrowings - owed to
securitization investors |
360,825 |
428,000 |
600,000 |
600,000 |
600,000 |
| Subordinated notes |
15,000 |
35,000 |
35,000 |
40,000 |
40,000 |
| Junior subordinated debentures |
249,493 |
249,493 |
249,493 |
249,493 |
249,493 |
| Trade date securities payable |
19,025 |
-- |
47 |
73,874 |
2,243 |
| Accrued interest payable
and other liabilities |
210,003 |
175,684 |
187,412 |
191,586 |
134,309 |
| Total liabilities |
14,854,208 |
14,484,097 |
14,350,275 |
14,386,617 |
13,142,511 |
| |
|
|
|
|
|
| Shareholders' Equity: |
|
|
|
|
|
| Preferred stock |
176,337 |
176,302 |
49,768 |
49,736 |
49,704 |
| Common stock |
36,573 |
36,522 |
35,982 |
35,926 |
34,988 |
| Surplus |
1,013,428 |
1,008,326 |
1,001,316 |
997,854 |
969,315 |
| Treasury stock |
(7,374) |
(6,559) |
(112) |
(68) |
(50) |
| Retained earnings |
501,139 |
478,160 |
459,457 |
441,268 |
415,297 |
| Accumulated other
comprehensive income (loss) |
1,971 |
(4,830) |
(2,878) |
3,471 |
4,132 |
| Total shareholders'
equity |
1,722,074 |
1,687,921 |
1,543,533 |
1,528,187 |
1,473,386 |
| Total liabilities
and shareholders' equity |
$ 16,576,282 |
$ 16,172,018 |
$ 15,893,808 |
$ 15,914,804 |
$ 14,615,897 |
| |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Consolidated Statements
of Income (Unaudited) - 5 Quarter Trends |
| |
|
|
|
|
|
| |
Three Months Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (In thousands, except per share
data) |
2012 |
2012 |
2011 |
2011 |
2011 |
| Interest income |
|
|
|
|
|
| Interest and fees on loans |
$ 144,100 |
$ 143,555 |
$ 143,514 |
$ 140,543 |
$ 132,338 |
| Interest bearing deposits with banks |
203 |
248 |
696 |
917 |
870 |
| Federal funds sold and securities
purchased under resale agreements |
6 |
12 |
33 |
28 |
23 |
| Securities |
10,510 |
11,847 |
12,574 |
12,667 |
11,438 |
| Trading account securities |
10 |
9 |
6 |
15 |
10 |
| Federal Home Loan Bank and Federal
Reserve Bank stock |
641 |
604 |
591 |
584 |
572 |
| Brokerage customer
receivables |
221 |
211 |
203 |
197 |
194 |
| Total interest
income |
155,691 |
156,486 |
157,617 |
154,951 |
145,445 |
| Interest expense |
|
|
|
|
|
| Interest on deposits |
17,273 |
18,030 |
19,685 |
21,893 |
22,404 |
| Interest on Federal Home Loan Bank
advances |
2,867 |
3,584 |
4,186 |
4,166 |
4,010 |
| Interest on notes payable and other
borrowings |
2,274 |
3,102 |
2,804 |
2,874 |
2,715 |
| Interest on secured borrowings - owed to
securitization investors |
1,743 |
2,549 |
3,076 |
3,003 |
2,994 |
| Interest on subordinated notes |
126 |
169 |
176 |
168 |
194 |
| Interest on junior
subordinated debentures |
3,138 |
3,157 |
3,043 |
4,437 |
4,422 |
| Total interest
expense |
27,421 |
30,591 |
32,970 |
36,541 |
36,739 |
| Net interest income |
128,270 |
125,895 |
124,647 |
118,410 |
108,706 |
| Provision for credit losses |
20,691 |
17,400 |
18,817 |
29,290 |
29,187 |
| Net interest income after provision for
credit losses |
107,579 |
108,495 |
105,830 |
89,120 |
79,519 |
| Non-interest income |
|
|
|
|
|
| Wealth management |
13,393 |
12,401 |
11,686 |
11,994 |
10,601 |
| Mortgage banking |
25,607 |
18,534 |
18,025 |
14,469 |
12,817 |
| Service charges on deposit accounts |
3,994 |
4,208 |
3,973 |
4,085 |
3,594 |
| Gains on available-for-sale securities,
net |
1,109 |
816 |
309 |
225 |
1,152 |
| Gain on bargain purchases, net |
(55) |
840 |
-- |
27,390 |
746 |
| Trading (losses) gains |
(928) |
146 |
216 |
591 |
(30) |
| Other |
7,815 |
10,078 |
10,703 |
8,493 |
7,772 |
| Total non-interest
income |
50,935 |
47,023 |
44,912 |
67,247 |
36,652 |
| Non-interest expense |
|
|
|
|
|
| Salaries and employee benefits |
68,139 |
69,030 |
66,744 |
61,863 |
53,079 |
| Equipment |
5,466 |
5,400 |
5,093 |
4,501 |
4,409 |
| Occupancy, net |
7,728 |
8,062 |
7,975 |
7,512 |
6,772 |
| Data processing |
3,840 |
3,618 |
4,062 |
3,836 |
3,147 |
| Advertising and marketing |
2,179 |
2,006 |
3,207 |
2,119 |
1,440 |
| Professional fees |
3,847 |
3,604 |
3,710 |
5,085 |
4,533 |
| Amortization of other intangible
assets |
1,089 |
1,049 |
1,062 |
970 |
704 |
| FDIC insurance |
3,477 |
3,357 |
3,244 |
3,100 |
3,281 |
| OREO expenses, net |
5,848 |
7,178 |
8,821 |
5,134 |
6,577 |
| Other |
15,572 |
14,455 |
14,850 |
12,201 |
13,264 |
| Total non-interest
expense |
117,185 |
117,759 |
118,768 |
106,321 |
97,206 |
| Income before taxes |
41,329 |
37,759 |
31,974 |
50,046 |
18,965 |
| Income tax expense |
15,734 |
14,549 |
12,753 |
19,844 |
7,215 |
| Net income |
$ 25,595 |
$ 23,210 |
$ 19,221 |
$ 30,202 |
$ 11,750 |
| Preferred stock dividends and discount
accretion |
$ 2,644 |
$ 1,246 |
$ 1,032 |
$ 1,032 |
$ 1,033 |
| Net income applicable to common
shares |
$ 22,951 |
$ 21,964 |
$ 18,189 |
$ 29,170 |
$ 10,717 |
| Net income per common share -
Basic |
$ 0.63 |
$ 0.61 |
$ 0.51 |
$ 0.82 |
$ 0.31 |
| Net income per common share -
Diluted |
$ 0.52 |
$ 0.50 |
$ 0.41 |
$ 0.65 |
$ 0.25 |
| Cash dividends declared per
common share |
$ -- |
$ 0.09 |
$ -- |
$ 0.09 |
$ -- |
| Weighted average common shares
outstanding |
36,329 |
36,207 |
35,958 |
35,550 |
34,971 |
| Dilutive potential common shares |
7,770 |
7,530 |
8,480 |
10,551 |
8,438 |
| Average common shares and dilutive
common shares |
44,099 |
43,737 |
44,438 |
46,101 |
43,409 |
| |
|
|
|
|
|
| |
|
|
|
|
|
| WINTRUST FINANCIAL CORPORATION -
SUPPLEMENTAL FINANCIAL INFORMATION |
|
|
|
|
|
| Period End Loan Balances - 5 Quarter
Trends |
|
|
|
|
|
| |
|
|
|
|
|
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (Dollars in thousands) |
2012 |
2012 |
2011 |
2011 |
2011 |
| Balance: |
|
|
|
|
|
| Commercial |
$ 2,673,181 |
$ 2,544,456 |
$ 2,498,313 |
$ 2,337,098 |
$ 2,132,436 |
| Commercial real estate |
3,666,519 |
3,585,760 |
3,514,261 |
3,465,321 |
3,374,668 |
| Home equity |
820,991 |
840,364 |
862,345 |
879,180 |
880,702 |
| Residential real-estate |
375,494 |
361,327 |
350,289 |
326,207 |
329,381 |
| Premium finance receivables -
commercial |
1,830,044 |
1,512,630 |
1,412,454 |
1,417,572 |
1,429,436 |
| Premium finance receivables - life
insurance |
1,656,200 |
1,693,763 |
1,695,225 |
1,671,443 |
1,619,668 |
| Indirect consumer (1) |
72,482 |
67,445 |
64,545 |
62,452 |
57,718 |
| Consumer and other |
107,931 |
111,639 |
123,945 |
113,438 |
101,068 |
| Total loans, net of unearned
income, excluding covered loans |
$ 11,202,842 |
$ 10,717,384 |
$ 10,521,377 |
$ 10,272,711 |
$ 9,925,077 |
| Covered loans |
614,062 |
691,220 |
651,368 |
680,075 |
408,669 |
| Total loans, net of unearned income |
$ 11,816,904 |
$ 11,408,604 |
$ 11,172,745 |
$ 10,952,786 |
$ 10,333,746 |
| |
|
|
|
|
|
| Mix: |
|
|
|
|
|
| Commercial |
23% |
22% |
22% |
21% |
20% |
| Commercial real estate |
31 |
32 |
31 |
32 |
33 |
| Home equity |
7 |
7 |
8 |
8 |
8 |
| Residential real-estate |
3 |
3 |
3 |
3 |
3 |
| Premium finance receivables -
commercial |
15 |
13 |
13 |
13 |
14 |
| Premium finance receivables - life
insurance |
14 |
15 |
15 |
15 |
16 |
| 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 |
95% |
94% |
94% |
94% |
96% |
| Covered loans |
5 |
6 |
6 |
6 |
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 |
|
|
|
|
|
| |
|
|
|
|
|
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (Dollars in thousands) |
2012 |
2012 |
2011 |
2011 |
2011 |
| Balance: |
|
|
|
|
|
| Non-interest bearing |
$ 2,047,715 |
$ 1,901,753 |
$ 1,785,433 |
$ 1,631,709 |
$ 1,397,433 |
| NOW |
1,780,872 |
1,756,313 |
1,698,778 |
1,633,752 |
1,530,068 |
| Wealth Management deposits (1) |
954,319 |
933,609 |
788,311 |
730,315 |
737,428 |
| Money Market |
2,335,238 |
2,306,726 |
2,263,253 |
2,190,117 |
1,985,661 |
| Savings |
958,295 |
943,066 |
888,592 |
867,483 |
736,974 |
| Time certificates of deposit |
4,981,142 |
4,824,386 |
4,882,900 |
5,252,632 |
4,871,696 |
| Total deposits |
$ 13,057,581 |
$ 12,665,853 |
$ 12,307,267 |
$ 12,306,008 |
$ 11,259,260 |
| |
|
|
|
|
|
| Mix: |
|
|
|
|
|
| Non-interest bearing |
16% |
15% |
15% |
13% |
12% |
| NOW |
14 |
14 |
14 |
13 |
14 |
| Wealth Management deposits (1) |
7 |
7 |
6 |
6 |
6 |
| Money Market |
18 |
18 |
18 |
18 |
18 |
| Savings |
7 |
8 |
7 |
7 |
7 |
| Time certificates of deposit |
38 |
38 |
40 |
43 |
43 |
| 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 |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (Dollars in thousands) |
2012 |
2012 |
2011 |
2011 |
2011 |
| |
|
|
|
|
|
| Net interest income |
$ 128,741 |
$ 126,361 |
$ 125,101 |
$ 118,828 |
$ 109,114 |
| Call option income |
3,114 |
3,123 |
5,377 |
3,436 |
2,287 |
| Net interest income including call option
income |
$ 131,855 |
$ 129,484 |
$ 130,478 |
$ 122,264 |
$ 111,401 |
| |
|
|
|
|
|
| Yield on earning assets |
4.25% |
4.41% |
4.36% |
4.41% |
4.54% |
| Rate on interest-bearing liabilities |
0.89 |
1.00 |
1.05 |
1.18 |
1.32 |
| Rate spread |
3.36% |
3.41% |
3.31% |
3.23% |
3.22% |
| Net free funds contribution |
0.15 |
0.14 |
0.14 |
0.14 |
0.18 |
| Net interest margin |
3.51 |
3.55 |
3.45 |
3.37 |
3.40 |
| Call option income |
0.08 |
0.09 |
0.15 |
0.10 |
0.07 |
| Net interest margin including call option
income |
3.59% |
3.64% |
3.60% |
3.47% |
3.47% |
| |
| |
|
|
|
|
|
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Net Interest Margin
(Including Call Option Income - YTD Trends) |
| |
|
|
| |
Six Months Ended |
Years Ended |
| |
June 30, |
December 31, |
| (Dollars in thousands) |
2012 |
2011 |
2010 |
2009 |
2008 |
| |
|
|
|
|
|
| Net interest income |
$ 255,102 |
$ 463,071 |
$ 417,564 |
$ 314,096 |
$ 247,054 |
| Call option income |
6,237 |
13,570 |
2,235 |
1,998 |
29,024 |
| Net interest income including call option
income |
$ 261,339 |
$ 476,641 |
$ 419,799 |
$ 316,094 |
$ 276,078 |
| |
|
|
|
|
|
| Yield on earning assets |
4.33% |
4.49% |
4.80% |
5.07% |
5.88% |
| Rate on interest-bearing liabilities |
0.94 |
1.23 |
1.61 |
2.29 |
3.31 |
| Rate spread |
3.39% |
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 |
3.53 |
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 |
3.62% |
3.52% |
3.39% |
3.03% |
3.14% |
| |
| |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Quarterly Average
Balances - 5 Quarter Trends |
| |
| |
Three Months Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (In thousands) |
2012 |
2012 |
2011 |
2011 |
2011 |
| Liquidity management assets |
$ 2,781,730 |
$ 2,756,833 |
$ 3,051,850 |
$ 3,083,508 |
$ 2,591,398 |
| Other earning assets |
30,761 |
30,499 |
28,828 |
28,834 |
28,886 |
| Loans, net of unearned income |
11,300,395 |
10,848,016 |
10,662,516 |
10,200,733 |
9,859,789 |
| Covered loans |
659,783 |
667,242 |
652,157 |
680,003 |
418,129 |
| Total earning assets |
$ 14,772,669 |
$ 14,302,590 |
$ 14,395,351 |
$ 13,993,078 |
$ 12,898,202 |
| Allowance for loan losses |
(134,077) |
(131,769) |
(137,423) |
(128,848) |
(125,537) |
| Cash and due from banks |
152,118 |
143,869 |
130,437 |
140,010 |
135,670 |
| Other assets |
1,528,497 |
1,520,660 |
1,625,844 |
1,522,187 |
1,196,801 |
| Total assets |
$ 16,319,207 |
$ 15,835,350 |
$ 16,014,209 |
$ 15,526,427 |
$ 14,105,136 |
| |
|
|
|
|
|
| Interest-bearing deposits |
$ 10,815,018 |
$ 10,481,822 |
$ 10,563,090 |
$ 10,442,886 |
$ 9,491,778 |
| Federal Home Loan Bank advances |
514,513 |
470,345 |
474,549 |
486,379 |
421,502 |
| Notes payable and other borrowings |
422,146 |
505,814 |
468,139 |
461,141 |
338,304 |
| Secured borrowings - owed to securitization
investors |
407,259 |
514,923 |
600,000 |
600,000 |
600,000 |
| Subordinated notes |
23,791 |
35,000 |
38,370 |
40,000 |
45,440 |
| Junior subordinated notes |
249,493 |
249,493 |
249,493 |
249,493 |
249,493 |
| Total interest-bearing liabilities |
$ 12,432,220 |
$ 12,257,397 |
$ 12,393,641 |
$ 12,279,899 |
$ 11,146,517 |
| Non-interest bearing deposits |
1,993,880 |
1,832,627 |
1,755,446 |
1,553,769 |
1,349,549 |
| Other liabilities |
197,667 |
180,664 |
333,186 |
185,042 |
148,999 |
| Equity |
1,695,440 |
1,564,662 |
1,531,936 |
1,507,717 |
1,460,071 |
| Total liabilities and shareholders'
equity |
$ 16,319,207 |
$ 15,835,350 |
$ 16,014,209 |
$ 15,526,427 |
$ 14,105,136 |
| |
| |
|
|
|
|
|
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Net Interest Margin - 5
Quarter Trends |
| |
Three Months Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| |
2012 |
2012 |
2011 |
2011 |
2011 |
| Yield earned on: |
|
|
|
|
|
| Liquidity management assets |
1.69% |
1.90% |
1.85% |
1.87% |
2.04% |
| Other earning assets |
3.04 |
2.96 |
2.90 |
2.98 |
2.89 |
| Loans, net of unearned income |
4.64 |
4.77 |
4.78 |
4.97 |
5.05 |
| Covered loans |
8.50 |
8.98 |
9.20 |
7.54 |
8.06 |
| Total earning assets |
4.25% |
4.41% |
4.36% |
4.41% |
4.54% |
| Rate paid on: |
|
|
|
|
|
| Interest-bearing deposits |
0.64% |
0.69% |
0.74% |
0.83% |
0.95% |
| Federal Home Loan Bank advances |
2.24 |
3.06 |
3.50 |
3.40 |
3.82 |
| Notes payable and other borrowings |
2.17 |
2.47 |
2.38 |
2.47 |
3.22 |
| Secured borrowings - owed to securitization
investors |
1.72 |
1.99 |
2.03 |
1.99 |
2.00 |
| Subordinated notes |
2.10 |
1.91 |
1.79 |
1.65 |
1.69 |
| Junior subordinated notes |
4.97 |
5.01 |
4.77 |
6.96 |
7.01 |
| Total interest-bearing liabilities |
0.89% |
1.00% |
1.05% |
1.18% |
1.32% |
| |
|
|
|
|
|
| Interest rate spread |
3.36% |
3.41% |
3.31% |
3.23% |
3.22% |
| Net free funds/contribution |
0.15 |
0.14 |
0.14 |
0.14 |
0.18 |
| Net interest income/Net interest margin |
3.51% |
3.55% |
3.45% |
3.37% |
3.40% |
| |
| |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Non-Interest Income - 5
Quarter Trends |
| |
|
|
|
|
|
| |
Three Months Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (In thousands) |
2012 |
2012 |
2011 |
2011 |
2011 |
| Brokerage |
$ 6,396 |
$ 6,322 |
$ 5,960 |
$ 6,108 |
$ 6,208 |
| Trust and asset management |
6,997 |
6,079 |
5,726 |
5,886 |
4,393 |
| Total wealth management |
13,393 |
12,401 |
11,686 |
11,994 |
10,601 |
| Mortgage banking |
25,607 |
18,534 |
18,025 |
14,469 |
12,817 |
| Service charges on deposit accounts |
3,994 |
4,208 |
3,973 |
4,085 |
3,594 |
| Gains on available-for-sale securities |
1,109 |
816 |
309 |
225 |
1,152 |
| Gain on bargain purchases |
(55) |
840 |
-- |
27,390 |
746 |
| Trading gains (losses) |
(928) |
146 |
216 |
591 |
(30) |
| Other: |
|
|
|
|
|
| Fees from covered call options |
3,114 |
3,123 |
5,377 |
3,436 |
2,287 |
| Bank Owned Life Insurance |
505 |
919 |
681 |
351 |
661 |
| Administrative services |
823 |
766 |
789 |
784 |
781 |
| Miscellaneous |
3,373 |
5,270 |
3,856 |
3,922 |
4,043 |
| Total other income |
7,815 |
10,078 |
10,703 |
8,493 |
7,772 |
| |
|
|
|
|
|
| Total Non-Interest
Income |
$ 50,935 |
$ 47,023 |
$ 44,912 |
$ 67,247 |
$ 36,652 |
| |
| |
|
|
|
|
|
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Non-Interest Expense - 5
Quarter Trends |
| |
|
|
|
|
|
| |
Three Months Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (In thousands) |
2012 |
2012 |
2011 |
2011 |
2011 |
| Salaries and employee benefits: |
|
|
|
|
|
| Salaries |
$ 37,237 |
$ 37,933 |
$ 36,676 |
$ 36,633 |
$ 32,008 |
| Commissions and bonus |
19,388 |
16,802 |
19,263 |
14,984 |
10,760 |
| Benefits |
11,514 |
14,295 |
10,805 |
10,246 |
10,311 |
| Total salaries and employee benefits |
68,139 |
69,030 |
66,744 |
61,863 |
53,079 |
| Equipment |
5,466 |
5,400 |
5,093 |
4,501 |
4,409 |
| Occupancy, net |
7,728 |
8,062 |
7,975 |
7,512 |
6,772 |
| Data processing |
3,840 |
3,618 |
4,062 |
3,836 |
3,147 |
| Advertising and marketing |
2,179 |
2,006 |
3,207 |
2,119 |
1,440 |
| Professional fees |
3,847 |
3,604 |
3,710 |
5,085 |
4,533 |
| Amortization of other intangible assets |
1,089 |
1,049 |
1,062 |
970 |
704 |
| FDIC insurance |
3,477 |
3,357 |
3,244 |
3,100 |
3,281 |
| OREO expenses, net |
5,848 |
7,178 |
8,821 |
5,134 |
6,577 |
| Other: |
|
|
|
|
|
| Commissions - 3rd party brokers |
1,069 |
1,021 |
872 |
936 |
991 |
| Postage |
1,330 |
1,423 |
1,322 |
1,102 |
1,170 |
| Stationery and supplies |
1,035 |
919 |
1,186 |
904 |
888 |
| Miscellaneous |
12,138 |
11,092 |
11,470 |
9,259 |
10,215 |
| Total other expense |
15,572 |
14,455 |
14,850 |
12,201 |
13,264 |
| |
|
|
|
|
|
| Total Non-Interest
Expense |
$ 117,185 |
$ 117,759 |
$ 118,768 |
$ 106,321 |
$ 97,206 |
| |
| |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Allowance for Credit
Losses, excluding covered loans - 5 Quarter Trends |
| |
|
|
|
|
|
| |
Three Months Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (Dollars in thousands) |
2012 |
2012 |
2011 |
2011 |
2011 |
| |
|
|
|
|
|
| Allowance for loan losses at
beginning of period |
$ 111,023 |
$ 110,381 |
$ 118,649 |
$ 117,362 |
$ 115,049 |
| Provision for credit
losses |
18,394 |
15,154 |
16,615 |
28,263 |
28,666 |
| Other adjustments |
(272) |
(238) |
-- |
-- |
-- |
| Reclassification from/(to) allowance
for unfunded lending-related commitments |
175 |
152 |
171 |
(66) |
(317) |
| |
|
|
|
|
|
| Charge-offs: |
|
|
|
|
|
| Commercial |
6,046 |
3,262 |
6,377 |
8,851 |
7,583 |
| Commercial real estate |
9,226 |
8,229 |
13,931 |
14,734 |
20,691 |
| Home equity |
1,732 |
2,590 |
1,876 |
1,071 |
1,300 |
| Residential real estate |
388 |
175 |
1,632 |
926 |
282 |
| Premium finance receivables -
commercial |
744 |
837 |
1,479 |
1,738 |
1,893 |
| Premium finance receivables - life
insurance |
3 |
13 |
-- |
31 |
214 |
| Indirect consumer |
33 |
51 |
56 |
24 |
44 |
| Consumer and other |
51 |
310 |
824 |
282 |
266 |
| Total charge-offs |
18,223 |
15,467 |
26,175 |
27,657 |
32,273 |
| |
|
|
|
|
|
| Recoveries: |
|
|
|
|
|
| Commercial |
246 |
257 |
541 |
150 |
301 |
| Commercial real estate |
174 |
131 |
286 |
299 |
463 |
| Home equity |
171 |
162 |
5 |
32 |
19 |
| Residential real estate |
3 |
2 |
2 |
3 |
3 |
| Premium finance receivables -
commercial |
153 |
277 |
204 |
159 |
5,375 |
| Premium finance receivables - life
insurance |
18 |
21 |
-- |
-- |
12 |
| Indirect consumer |
21 |
30 |
37 |
75 |
42 |
| Consumer and other |
37 |
161 |
46 |
29 |
22 |
| Total recoveries |
823 |
1,041 |
1,121 |
747 |
6,237 |
| Net charge-offs |
(17,400) |
(14,426) |
(25,054) |
(26,910) |
(26,036) |
| |
|
|
|
|
|
| Allowance for loan losses at
period end |
$ 111,920 |
$ 111,023 |
$ 110,381 |
$ 118,649 |
$ 117,362 |
| |
|
|
|
|
|
| Allowance for unfunded
lending-related commitments at period end |
12,903 |
13,078 |
13,231 |
13,402 |
2,335 |
| Allowance for credit losses at
period end |
$ 124,823 |
$ 124,101 |
$ 123,612 |
$ 132,051 |
$ 119,697 |
| |
|
|
|
|
|
| Annualized net charge-offs by
category as a percentage of its own respective category's
average: |
|
|
|
|
|
| Commercial |
0.91% |
0.49% |
0.96% |
1.60% |
1.45% |
| Commercial real estate |
1.01 |
0.92 |
1.56 |
1.69 |
2.40 |
| Home equity |
0.76 |
1.15 |
0.85 |
0.47 |
0.58 |
| Residential real estate |
0.20 |
0.11 |
1.07 |
0.80 |
0.25 |
| Premium finance receivables -
commercial |
0.14 |
0.15 |
0.35 |
0.42 |
(0.99) |
| Premium finance receivables - life
insurance |
-- |
-- |
-- |
0.01 |
0.05 |
| Indirect consumer |
0.07 |
0.13 |
0.12 |
(0.33) |
0.02 |
| Consumer and other |
0.05 |
0.49 |
2.35 |
0.84 |
0.98 |
| Total loans, net of unearned income,
excluding covered loans |
0.62% |
0.53% |
0.93% |
1.05% |
1.06% |
| |
|
|
|
|
|
| Net charge-offs as a percentage of
the provision for credit losses |
94.60% |
95.20% |
150.79% |
95.21% |
90.83% |
| |
|
|
|
|
|
| Loans at period-end |
$ 11,202,842 |
$ 10,717,384 |
$ 10,521,377 |
$ 10,272,711 |
$ 9,925,077 |
| Allowance for loan losses as a
percentage of loans at period end |
1.00% |
1.04% |
1.05% |
1.15% |
1.18% |
| Allowance for credit losses as a
percentage of loans at period end |
1.11% |
1.16% |
1.17% |
1.29% |
1.21% |
| |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Non-Performing Assets,
excluding covered assets - 5 Quarter Trends |
| |
|
|
|
|
|
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (Dollars in thousands) |
2012 |
2012 |
2011 |
2011 |
2011 |
| |
|
|
|
|
|
| Loans past due greater than 90 days
and still accruing: |
|
|
|
|
|
| Commercial |
$ -- |
$ -- |
$ -- |
$ -- |
$ -- |
| Commercial real-estate |
-- |
73 |
-- |
1,105 |
-- |
| Home equity |
-- |
-- |
-- |
-- |
-- |
| Residential real-estate |
-- |
-- |
-- |
-- |
-- |
| Premium finance receivables -
commercial |
5,184 |
4,619 |
5,281 |
4,599 |
4,446 |
| Premium finance receivables - life
insurance |
-- |
-- |
-- |
2,413 |
324 |
| Indirect consumer |
234 |
257 |
314 |
292 |
284 |
| Consumer and other |
-- |
-- |
-- |
-- |
-- |
| Total loans past due greater than 90 days
and still accruing |
5,418 |
4,949 |
5,595 |
8,409 |
5,054 |
| |
|
|
|
|
|
| Non-accrual loans: |
|
|
|
|
|
| Commercial |
30,473 |
19,835 |
19,018 |
24,836 |
26,168 |
| Commercial real-estate |
56,077 |
62,704 |
66,508 |
69,669 |
89,793 |
| Home equity |
10,583 |
12,881 |
14,164 |
15,426 |
15,853 |
| Residential real-estate |
9,387 |
5,329 |
6,619 |
7,546 |
7,379 |
| Premium finance receivables -
commercial |
7,404 |
7,650 |
7,755 |
6,942 |
10,309 |
| Premium finance receivables - life
insurance |
-- |
-- |
54 |
349 |
670 |
| Indirect consumer |
132 |
152 |
138 |
146 |
89 |
| Consumer and other |
1,446 |
121 |
233 |
653 |
757 |
| Total non-accrual loans |
115,502 |
108,672 |
114,489 |
125,567 |
151,018 |
| |
|
|
|
|
|
| Total non-performing
loans: |
|
|
|
|
|
| Commercial |
30,473 |
19,835 |
19,018 |
24,836 |
26,168 |
| Commercial real-estate |
56,077 |
62,777 |
66,508 |
70,774 |
89,793 |
| Home equity |
10,583 |
12,881 |
14,164 |
15,426 |
15,853 |
| Residential real-estate |
9,387 |
5,329 |
6,619 |
7,546 |
7,379 |
| Premium finance receivables -
commercial |
12,588 |
12,269 |
13,036 |
11,541 |
14,755 |
| Premium finance receivables - life
insurance |
-- |
-- |
54 |
2,762 |
994 |
| Indirect consumer |
366 |
409 |
452 |
438 |
373 |
| Consumer and other |
1,446 |
121 |
233 |
653 |
757 |
| Total non-performing loans |
$ 120,920 |
$ 113,621 |
$ 120,084 |
$ 133,976 |
$ 156,072 |
| Other real estate owned |
66,532 |
69,575 |
79,093 |
86,622 |
82,772 |
| Other real estate owned - obtained in
acquisition |
6,021 |
6,661 |
7,430 |
10,302 |
-- |
| Total non-performing assets |
$ 193,473 |
$ 189,857 |
$ 206,607 |
$ 230,900 |
$ 238,844 |
| |
|
|
|
|
|
| Total non-performing loans by
category as a percent of its own respective category's period-end
balance: |
|
|
|
|
|
| Commercial |
1.14% |
0.78% |
0.76% |
1.06% |
1.23% |
| Commercial real-estate |
1.53 |
1.75 |
1.89 |
2.04 |
2.66 |
| Home equity |
1.29 |
1.53 |
1.64 |
1.75 |
1.80 |
| Residential real-estate |
2.50 |
1.47 |
1.89 |
2.31 |
2.24 |
| Premium finance receivables -
commercial |
0.69 |
0.81 |
0.92 |
0.81 |
1.03 |
| Premium finance receivables - life
insurance |
-- |
-- |
-- |
0.17 |
0.06 |
| Indirect consumer |
0.51 |
0.61 |
0.70 |
0.70 |
0.65 |
| Consumer and other |
1.34 |
0.11 |
0.19 |
0.58 |
0.75 |
| Total loans, net of unearned income |
1.08% |
1.06% |
1.14% |
1.30% |
1.57% |
| |
|
|
|
|
|
| Total non-performing assets as a
percentage of total assets |
1.17% |
1.17% |
1.30% |
1.45% |
1.63% |
| |
|
|
|
|
|
| Allowance for loan losses as a
percentage of total non-performing loans |
92.56% |
97.71% |
91.92% |
88.56% |
75.20% |
| |
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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