Wintrust Financial Corporation ("Wintrust" or "the Company")
(Nasdaq:WTFC) announced net income of $32.1 million or $0.65 per
diluted common share for the first quarter of 2013 compared to net
income of $30.1 million or $0.61 per diluted common share for the
fourth quarter of 2012 and $23.2 million or $0.50 per
diluted common share for the first quarter of 2012.
Highlights compared with the Fourth Quarter of
2012*:
- Net income increased by $2.0 million
- Stable net interest margin, increasing by one basis point
- Effective expense management as evidenced by a net overhead
ratio, based on pre-tax adjusted earnings, of 1.47%
- $13.1 million decrease, or 52%, in net charge-offs to $11.9
million, the lowest level since the first quarter of 2009
- $3.9 million decrease in provision for credit losses
- $6.9 million improvement in OREO expenses primarily related to
lower valuation adjustments of properties held in OREO and higher
gains recognized on the sale of covered OREO
- 2% increase in tangible common book value per share to $29.74,
up from $29.28
- Increase in tangible common equity ratio, assuming conversion
of preferred stock, to 8.8%, up from 8.4%
- Effectively managed the balance sheet through reduction of
excess liquidity
- Completed the divestiture of the deposits and the current
banking operations of Second Federal Savings and Loan Association
of Chicago
- Signed a definitive agreement to acquire First Lansing Bancorp,
Inc., the parent company of First National Bank of Illinois
* See "Supplemental Financial Measures/Ratios"
on page 12/13 for more information on non-GAAP measures.
The Company's total assets of $17.1 billion at March 31, 2013
increased $902 million from March 31, 2012. Total deposits as of
March 31, 2013 were $14.0 billion, an increase of $1.3 billion from
March 31, 2012. Non-interest bearing deposits increased by $342
million, or 18%, since March 31, 2012, primarily due to demand
deposits from new relationships generated by the Company's
commercial lending initiative. NOW, wealth management, money market
and savings deposits increased $1.1 billion, or 19%, during the
same time period. Total loans, excluding covered loans and loans
held for sale, were $11.9 billion as of March 31, 2013, an increase
of $1.2 billion, or 11%, over March 31, 2012.
Edward J. Wehmer, President and Chief Executive Officer,
commented, "Our reported first quarter net income of $32.1 million
represents a 7% increase over the $30.1 million of net income
reported in the fourth quarter of 2012 and a 38% increase over the
$23.2 million of net income reported in the first quarter of 2012.
The first quarter of 2013 was highlighted by lower levels of net
loan charge-offs, lower net OREO costs, improved utilization of
liquidity, stable net interest margin and solid loan growth."
Mr. Wehmer continued, "The balance sheet was managed during the
first quarter to minimize the impact of a large liquidity position
that existed at the end of the year. The sale of Second Federal
locations and deposits utilized approximately $144 million of
liquidity. Additionally, the Company reduced its excess liquidity
through the planned reductions in certain wholesale wealth
management deposits and brokered CDs of approximately $250 million.
Total loan growth in the first quarter was essentially funded by
reduced levels of loans held for sale and covered assets. Total
loans outstanding, excluding covered loans and loans held for sale,
increased $71 million in the first quarter of 2013 compared to the
fourth quarter of 2012. Loan growth for the quarter was strong in
the commercial and commercial real-estate portfolios, increasing
$167 million, excluding a reduction in our mortgage warehouse lines
of credit of $83 million. Strong loan growth right near the end of
the year contributed to a larger increase in the average balance of
total loans in the first quarter of 2013 when compared to the
change in period-end balances."
Mr. Wehmer further commented, "Pre-tax adjusted earnings
decreased by $4.2 million compared to the previous quarter. The
decrease is primarily attributable to a reduction in net interest
income based on two fewer days of net interest income of $2.9
million in the current quarter in addition to lower mortgage
banking revenue. The $4.6 million decline in mortgage banking
revenue in the first quarter resulted from a drop in loan volume
associated with a slight increase in mortgage rates in the current
period as well as the related tightening of pricing and secondary
marketing gains. We expect origination volumes in the second
quarter to remain relatively steady as we anticipate that a slight
increase in loan volume from the traditional spring purchase market
and a strong internal mortgage loan pipeline, may be potentially
offset by a negative impact on the refinance market from
anticipated interest rate increases."
Commenting on credit quality, Mr. Wehmer noted, "The Company's
credit quality metrics exhibited some of the minor bumpiness that
we have been describing could occur. Our ratio of non-performing
loans to total loans, excluding covered loans and loans held for
sale, increased to 1.08% at March 31, 2013, up from 1.00% at
December 31, 2012. The ratio at the end of last year was the lowest
reported level since the end of the third quarter in 2007. We do
not expect the slight increase in non-performing assets in the
first quarter of 2013 to continue during the remainder of the year
as evidenced by the near-term past due levels."
Turning to the future, Mr. Wehmer stated, "Our pipelines for
both internal growth and external growth remain very strong.
Discipline with loan pricing will continue to be challenging as
competition intensifies in the current low interest rate
environment. Growing franchise value, increasing profitability,
maximizing capital usage and increasing shareholder value continue
to be our main objectives."
The graphs below illustrate certain highlights of the first
quarter of 2013 including, increased net income and tangible common
book value, continued loan growth, decreased net charge-offs and
liquidity management.
Graphs accompanying this release are available at
http://media.globenewswire.com/cache/11955/file/19112.pdf
Wintrust's key operating measures and growth rates for the first
quarter of 2013, as compared to the sequential and linked quarters
are shown in the table below:
|
|
|
|
% or(5) |
% or |
|
|
|
|
basis point
(bp) |
basis point
(bp) |
|
|
|
|
change |
change |
|
|
|
|
from |
from |
|
Three Months
Ended |
4th Quarter |
1st Quarter |
(Dollars in thousands) |
March 31, 2013 |
December 31, 2012 |
March 31, 2012 |
2012 |
2012 |
Net income |
$ 32,052 |
$ 30,089 |
$ 23,210 |
7% |
38% |
Net income per common share – diluted |
$ 0.65 |
$ 0.61 |
$ 0.50 |
7% |
30% |
Pre-tax adjusted earnings (2) |
$ 68,263 |
$ 72,441 |
$ 64,067 |
(6)% |
7% |
Net revenue (1) |
$ 188,092 |
$ 197,965 |
$ 172,918 |
(5)% |
9% |
Net interest income |
$ 130,713 |
$ 132,776 |
$ 125,895 |
(2)% |
4% |
Net interest margin (2) |
3.41% |
3.40% |
3.55% |
1 bp |
(14) bp |
Net overhead ratio (2) (3) |
1.47% |
1.48% |
1.80% |
(1) bp |
(33) bp |
Net overhead ratio, based on pre-tax adjusted
earnings (2) (3) |
1.47% |
1.39% |
1.57% |
8 bp |
(10) bp |
|
|
|
|
|
|
Efficiency ratio (2) (4) |
63.78% |
66.13% |
68.24% |
(235) bp |
(446) bp |
Efficiency ratio, based on pre-tax adjusted
earnings (2) (4) |
63.46% |
62.62% |
62.17% |
84 bp |
129 bp |
|
|
|
|
|
|
Return on average assets |
0.75% |
0.69% |
0.59% |
6 bp |
16 bp |
Return on average common equity |
7.27% |
6.79% |
5.90% |
48 bp |
137 bp |
Return on average tangible common
equity |
9.35% |
8.71% |
7.55% |
64 bp |
180 bp |
At end of period |
|
|
|
|
|
Total assets |
$ 17,074,247 |
$ 17,519,613 |
$ 16,172,018 |
(10)% |
6% |
Total loans, excluding loans held-for-sale,
excluding covered loans |
$ 11,900,312 |
$ 11,828,943 |
$ 10,717,384 |
2% |
11% |
Total loans, including loans held-for-sale,
excluding covered loans |
$ 12,281,234 |
$ 12,241,143 |
$ 11,067,712 |
1% |
11% |
Total deposits |
$ 13,962,757 |
$ 14,428,544 |
$ 12,665,853 |
(13)% |
10% |
Total shareholders' equity |
$ 1,825,688 |
$ 1,804,705 |
$ 1,687,921 |
5% |
8% |
|
|
|
|
|
|
(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) 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)
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."
Financial Performance Overview – First Quarter
2013
For the first quarter of 2013, net interest income totaled
$130.7 million, a decrease of $2.1 million as compared to the
fourth quarter of 2012 and an increase of $4.8 million as compared
to the first quarter of 2012. The changes in net interest
income on both a sequential and linked quarter basis are the result
of the following:
- Net interest income decreased $2.1 million in the first quarter
of 2013 compared to the fourth quarter of 2012, due to:
- A four basis point decline in the yield on earning assets and
two fewer days in the current quarter were partially offset by a $6
million increase in average earning assets, resulting in a decrease
in total interest income of $4.3 million in the first quarter of
2013 compared to the fourth quarter of
2012.
- A six basis point decline in the rate paid on total
interest-bearing liabilities along with two fewer days in the
current quarter were partially offset by a $47 million increase in
average interest bearing liabilities, creating a $2.3 million
reduction in interest expense in the first quarter of 2013 compared
to the fourth quarter of 2012.
- Combined, the reduction of interest expense by $2.3 million and
the decrease in interest income of $4.3 million created the $2.1
million decrease in net interest income in the first quarter of
2013 compared to the fourth quarter of 2012.
- Net interest income increased $4.8 million in the first quarter
of 2013 compared to the first quarter of 2012, due to:
- Average earning assets for the first quarter of 2013 increased
by $1.3 billion compared to the first quarter of 2012. This
was comprised of average loan growth, excluding covered loans, of
$1.4 billion and an increase of $34 million in the average balance
of liquidity management and other assets partially offset by a
decrease of $131 million in the average balance of covered loans.
The growth in average total loans, excluding covered loans,
included an increase of $398 million in commercial loans, $378
million in commercial real-estate loans, $282 million in
U.S.-originated commercial premium finance receivables, $249
million in Canadian-originated commercial premium finance
receivables, $48 million in life premium finance receivables and
$114 million in mortgage loans held-for-sale, offset by a decrease
of $64 million in home equity and other loans.
- The average earning asset growth of $1.3 billion in the first
quarter of 2013 compared to the first quarter of 2012 did not fully
offset a 44 basis point decline in the yield on earning assets,
creating a decrease in total interest income of $4.2 million in the
first quarter of 2013 compared to the prior year quarter.
- Funding for the average earning asset growth of $1.3 billion
was provided by an increase in total average interest bearing
liabilities of $576 million (an increase in interest-bearing
deposits of $1.4 billion partially offset by a decrease of $800
million of wholesale funding) and an increase of $732 million in
the average balance of net free funds.
- A 32 basis point decline in the rate paid on total
interest-bearing liabilities more than offset the increase in
average balance, creating a $9.0 million reduction in interest
expense in the first quarter of 2013 compared to the first quarter
of 2012.
- Combined, the reduction of interest expense by $9.0 million and
the decrease in interest income of $4.2 million created the $4.8
million increase in net interest income in the first quarter of
2013 compared to the first quarter of 2012.
The net interest margin for the first quarter of 2013 was 3.41%
compared to 3.40% in the fourth quarter of 2012 and 3.55% in the
first quarter of 2012. The changes in net interest margin on
both a sequential and linked quarter basis are the result of the
following:
- The net interest margin in the first quarter of 2013 increased
by one basis point when compared to the fourth quarter of 2012, due
to:
- The yield on total average earning assets declined four basis
points while the rate on total average interest-bearing liabilities
decreased six basis points.
- The contribution from net free funds declined by one basis
point.
- The net interest margin in the first quarter of 2013 declined
by 14 basis points when compared to the first quarter of 2012, due
to:
- The yield on total average earning assets declined 44 basis
points while the rate on total average interest-bearing liabilities
decreased 32 basis points.
- Competitive and economic pricing pressures have negatively
impacted the yield on our non-covered loan portfolio. Additionally,
the Company has also experienced lower yields on the covered loan
portfolio. Positive repricing of retail interest-bearing
deposits partially offset the lower loan portfolio yields.
- The contribution from net free funds declined by two basis
points.
- Combined, this caused the net interest margin to decrease by 14
basis points in the first quarter of 2013 when compared to the
first quarter of 2012.
The contribution from re-pricing retail deposits and maturing
wholesale funding has diminished when compared to previous
quarters. Pressure on the net interest margin will be applied more
from the pricing/re-pricing of loan volumes as the low rate
environment prohibits further declines in interest-bearing deposits
of the same magnitude.
Non-interest income totaled $57.4 million in the first quarter
of 2013, decreasing $7.8 million compared to the fourth quarter of
2012 and increasing $10.4 million, or 22%, compared to the first
quarter of 2012. The decrease in non-interest income in the first
quarter of 2013 compared to the fourth quarter of 2012 is primarily
attributable to lower mortgage banking revenues, lower gains on
available-for-sale securities and increased FDIC indemnification
asset amortization, partially offset by an increase in wealth
management revenue. The increase in non-interest income in the
first quarter of 2013 compared to the first quarter of 2012 was
primarily attributable to higher mortgage banking and wealth
management revenues, partially offset by a decrease in fees from
covered call options. Mortgage banking revenue decreased $4.6
million when compared to the fourth quarter of 2012 and increased
$11.6 million when compared to the first quarter of 2012. The
decrease in mortgage banking revenue from the fourth quarter of
2012 resulted primarily from a drop in loan volume, associated with
a slight increase in mortgage rates in the current quarter and the
related tightening of pricing and secondary marketing gains,
partially offset by a recovery of $755,000 in recourse reserves
based on analysis of historical claims and payments. Loans
originated and sold to the secondary market were $974 million in
the first quarter of 2013 compared to $1.2 billion in the fourth
quarter of 2012 and $715 million in the first quarter of 2012 (see
"Non-Interest Income" section later in this release for further
detail).
Non-interest expense totaled $120.1 million in the first quarter
of 2013, decreasing $9.4 million compared to the fourth quarter of
2012 and increasing $2.4 million, or 2%, compared to the first
quarter of 2012. The decrease in the current quarter compared to
the fourth quarter of 2012 was primarily attributable to a $6.9
million decrease in OREO expense primarily related to fewer
negative valuation adjustments on properties held in OREO and
higher gains recognized on the sale of covered OREO, and a decrease
in miscellaneous non-interest expense primarily related to $2.1
million of fees paid in the fourth quarter of 2012 on the
termination of longer-term, higher rate repurchase
agreements.
Financial Performance Overview – Credit
Quality
The ratio of non-performing assets to total assets was 1.11% as
of March 31, 2013, compared to 1.03% at December 31, 2012 and 1.17%
at March 31, 2012. Non-performing assets, excluding covered
assets, totaled $189.1 million at March 31, 2013, compared to
$181.0 million at December 31, 2012 and $189.9 million at March 31,
2012.
Non-performing loans, excluding covered loans, totaled $128.6
million, or 1.08% of total loans, at March 31, 2013, compared to
$118.1 million, or 1.00% of total loans, at December 31, 2012 and
$113.6 million, or 1.06% of total loans, at March 31, 2012. OREO,
excluding covered OREO, of $56.2 million at March 31, 2013
decreased $6.7 million compared to $62.9 million at December 31,
2012 and decreased $20.0 million compared to $76.2 million at March
31, 2012.
The provision for credit losses, excluding the provision for
covered loan losses, totaled $15.4 million for the first quarter of
2013 compared to $20.7 million for the fourth quarter of 2012 and
$15.2 million in the first quarter of 2012. Net charge-offs as a
percentage of loans, excluding covered loans, for the first quarter
of 2013 totaled 39 basis points on an annualized basis compared to
83 basis points on an annualized basis in the fourth quarter of
2012 and 53 basis points on an annualized basis in the first
quarter of 2012. The improvement in net charge-offs was
primarily the result of decreases in net charge-offs within the
commercial real estate portfolio during the current period.
Excluding the allowance for covered loan losses, the allowance
for credit losses at March 31, 2013 totaled $125.6 million, or
1.06% of total loans, compared to $122.0 million, or 1.03% of total
loans at December 31, 2012 and $124.1 million, or 1.16% of total
loans at March 31, 2012.
Financial Performance Overview – Capital
Stock Offerings
In March 2012, the Company issued and sold 126,500 shares, or
$126,500,000 aggregate liquidation preference, of Non-Cumulative
Perpetual Convertible Preferred Stock, Series C ("Preferred Stock")
in an equity offering.
Capital Ratios
As of March 31, 2013, the Company's estimated capital
ratios were 13.4% for total risk-based capital, 12.3% 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 7.7% at March 31, 2013. Assuming full
conversion of both classes of preferred stock, the tangible common
equity ratio was 8.8% at March 31, 2013.
In June 2012, the U.S. banking regulators released notices of
proposed rulemaking (the "NPRs") that would substantially revise
the current risk-based capital standards to reflect the
requirements of the Dodd-Frank Wall Street Reform and Consumer
Protection Act as well as the Basel III international capital
standards. It is generally expected that once the proposed
rulemakings are finalized, U.S. banks will be required to hold
higher amounts of capital, especially common equity, relative to
their risk-weighed assets. Under the current proposal, the
calculations of risk-weighted assets would
change. Risk-weighted assets would be calculated using new and
expanded risk-weighting categories, applying a more risk sensitive
treatment to certain "high volatility" commercial real estate
loans, residential mortgage loans, past due and nonaccrual loans
and unfunded commitments of less than one year. In addition, if
adopted as proposed, the NPRs would change the capital requirements
by, among other things, establishing a new capital standard
consisting of common tier 1 capital, increasing the minimum capital
ratios for certain existing capital categories and adding a
required capital conservation buffer. Additionally, trust preferred
securities are phased out as a component of Tier 1 Capital as
required under the Dodd Frank Act. The Company has estimated
that it would be "well-capitalized" if the fully phased-in capital
requirements as proposed in the NPRs were adopted today. Until
the proposals are finalized and the final implementation dates are
determined, however, the impact of the final rules cannot be fully
calculated with a high degree of certainty.
Financial Performance Overview – Earnings Per
Share
The following table shows the computation of basic and diluted
earnings per share for the periods indicated:
|
|
Three Months
Ended |
|
|
March
31, |
(In thousands, except per share data) |
|
2013 |
2012 |
Net income |
|
$ 32,052 |
$ 23,210 |
Less: Preferred stock dividends and discount
accretion |
|
2,616 |
1,246 |
Net income applicable to common
shares—Basic |
(A) |
29,436 |
21,964 |
Add: Dividends on convertible preferred
stock, if dilutive |
|
2,581 |
— |
Net income applicable to common
shares—Diluted |
(B) |
32,017 |
21,964 |
Weighted average common shares
outstanding |
(C) |
36,976 |
36,207 |
Effect of dilutive potential common
shares: |
|
|
|
Common stock equivalents |
|
7,443 |
7,530 |
Convertible preferred stock, if dilutive |
|
5,020 |
— |
Weighted average common shares and effect of
dilutive potential common shares |
(D) |
49,439 |
43,737 |
Net income per common share: |
|
|
|
Basic |
(A/C) |
$ 0.80 |
$ 0.61 |
Diluted |
(B/D) |
$ 0.65 |
$ 0.50 |
Potentially dilutive common shares can result from stock
options, restricted stock unit awards, stock warrants, the
Company's convertible preferred stock, tangible equity unit shares
and shares to be issued under the Employee Stock Purchase Plan and
the Directors Deferred Fee and Stock Plan, being treated as if they
had been either exercised or issued, computed by application of the
treasury stock method. While potentially dilutive common shares are
typically included in the computation of diluted earnings per
share, potentially dilutive common shares are excluded from this
computation in periods in which the effect would reduce the loss
per share or increase the income per share. For diluted earnings
per share, net income applicable to common shares can be affected
by the conversion of the Company's convertible preferred stock.
Where the effect of this conversion would reduce the loss per share
or increase the income per share, net income applicable to common
shares is not adjusted by the associated preferred dividends.
|
|
|
WINTRUST FINANCIAL
CORPORATION |
|
|
Selected Financial
Highlights |
|
|
|
|
|
|
Three Months
Ended March 31, |
(Dollars in thousands, except per share
data) |
2013 |
2012 |
Selected Financial Condition Data (at
end of period): |
|
|
Total assets |
$ 17,074,247 |
$ 16,172,018 |
Total loans, excluding covered loans |
11,900,312 |
10,717,384 |
Total deposits |
13,962,757 |
12,665,853 |
Junior subordinated debentures |
249,493 |
249,493 |
Total shareholders' equity |
1,825,688 |
1,687,921 |
Selected Statements of Income
Data: |
|
|
Net interest income |
$ 130,713 |
$ 125,895 |
Net revenue (1) |
188,092 |
172,918 |
Pre-tax adjusted earnings (2) |
68,263 |
64,067 |
Net income |
32,052 |
23,210 |
Net income per common share – Basic |
$ 0.80 |
$ 0.61 |
Net income per common share – Diluted |
$ 0.65 |
$ 0.50 |
Selected Financial Ratios and Other
Data: |
|
|
Performance Ratios: |
|
|
Net interest margin (2) |
3.41% |
3.55% |
Non-interest income to average assets |
1.35% |
1.19% |
Non-interest expense to average assets |
2.82% |
2.99% |
Net overhead ratio (2) (3) |
1.47% |
1.80% |
Net overhead ratio, based on pre-tax adjusted
earnings (2) (3) |
1.47% |
1.57% |
Efficiency ratio (2) (4) |
63.78% |
68.24% |
Efficiency ratio, based on pre-tax adjusted
earnings (2) (4) |
63.46% |
62.17% |
Return on average assets |
0.75% |
0.59% |
Return on average common equity |
7.27% |
5.90% |
Return on average tangible common equity
(2) |
9.35% |
7.55% |
Average total assets |
$ 17,256,843 |
$ 15,835,350 |
Average total shareholders' equity |
1,818,127 |
1,564,662 |
Average loans to average deposits ratio
(excluding covered loans) |
86.6% |
88.1% |
Average loans to average deposits ratio
(including covered loans) |
90.4% |
93.5% |
Common Share Data at end of
period: |
|
|
Market price per common share |
$ 37.04 |
$ 35.79 |
Book value per common share (2) |
$ 38.13 |
$ 35.25 |
Tangible common book value per share (2) |
$ 29.74 |
$ 27.57 |
Common shares outstanding |
37,013,707 |
36,289,380 |
Other Data at end of
period:(8) |
|
|
Leverage Ratio (5) |
10.2% |
10.5% |
Tier 1 capital to risk-weighted assets
(5) |
12.3% |
12.7% |
Total capital to risk-weighted assets
(5) |
13.4% |
13.9% |
Tangible common equity ratio (TCE)
(2)(7) |
7.7% |
7.5% |
Tangible common equity ratio, assuming full
conversion of preferred stock (2) (7) |
8.8% |
8.6% |
Allowance for credit losses (6) |
$ 125,635 |
$ 124,101 |
Non-performing loans |
$ 128,633 |
$ 113,621 |
Allowance for credit losses to total loans
(6) |
1.06% |
1.16% |
Non-performing loans to total loans |
1.08% |
1.06% |
Number of: |
|
|
Bank subsidiaries |
15 |
15 |
Non-bank subsidiaries |
8 |
7 |
Banking offices |
108 |
98 |
|
|
|
(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 |
|
(In thousands) |
(Unaudited)
March 31, 2013 |
December 31, 2012 |
(Unaudited) March 31, 2012 |
Assets |
|
|
|
Cash and due from banks |
$ 199,575 |
$ 284,731 |
$ 146,014 |
Federal funds sold and securities purchased
under resale agreements |
13,626 |
30,297 |
14,588 |
Interest-bearing deposits with other
banks |
685,302 |
1,035,743 |
900,755 |
Available-for-sale securities, at fair
value |
1,870,831 |
1,796,076 |
1,869,344 |
Trading account securities |
1,036 |
583 |
1,140 |
Federal Home Loan Bank and Federal Reserve
Bank stock, at cost |
76,601 |
79,564 |
88,216 |
Brokerage customer receivables |
25,614 |
24,864 |
31,085 |
Mortgage loans held-for-sale, at fair
value |
370,570 |
385,033 |
339,600 |
Mortgage loans held-for-sale, at lower of
cost or market |
10,352 |
27,167 |
10,728 |
Loans, net of unearned income, excluding
covered loans |
11,900,312 |
11,828,943 |
10,717,384 |
Covered loans |
518,661 |
560,087 |
691,220 |
Total loans |
12,418,973 |
12,389,030 |
11,408,604 |
Less: Allowance for loan
losses |
110,348 |
107,351 |
111,023 |
Less: Allowance for covered
loan losses |
12,272 |
13,454 |
17,735 |
Net loans |
12,296,353 |
12,268,225 |
11,279,846 |
Premises and equipment, net |
504,803 |
501,205 |
434,700 |
FDIC indemnification asset |
170,696 |
208,160 |
263,212 |
Accrued interest receivable and other
assets |
485,746 |
511,617 |
463,394 |
Trade date securities receivable |
— |
— |
— |
Goodwill |
343,632 |
345,401 |
307,295 |
Other intangible assets |
19,510 |
20,947 |
22,101 |
Total
assets |
$ 17,074,247 |
$ 17,519,613 |
$ 16,172,018 |
Liabilities and Shareholders'
Equity |
|
|
|
Deposits: |
|
|
|
Non-interest bearing |
$ 2,243,440 |
$ 2,396,264 |
$ 1,901,753 |
Interest bearing |
11,719,317 |
12,032,280 |
10,764,100 |
Total deposits |
13,962,757 |
14,428,544 |
12,665,853 |
Notes payable |
31,911 |
2,093 |
52,639 |
Federal Home Loan Bank advances |
414,032 |
414,122 |
466,391 |
Other borrowings |
256,244 |
274,411 |
411,037 |
Secured borrowings - owed to securitization
investors |
— |
— |
428,000 |
Subordinated notes |
15,000 |
15,000 |
35,000 |
Junior subordinated debentures |
249,493 |
249,493 |
249,493 |
Trade date securities payable |
1,250 |
— |
— |
Accrued interest payable and other
liabilities |
317,872 |
331,245 |
175,684 |
Total liabilities |
15,248,559 |
15,714,908 |
14,484,097 |
Shareholders' Equity: |
|
|
|
Preferred stock |
176,441 |
176,406 |
176,302 |
Common stock |
37,272 |
37,108 |
36,522 |
Surplus |
1,040,098 |
1,036,295 |
1,008,326 |
Treasury stock |
(8,187) |
(7,838) |
(6,559) |
Retained earnings |
581,131 |
555,023 |
478,160 |
Accumulated other comprehensive
(loss) income |
(1,067) |
7,711 |
(4,830) |
Total shareholders' equity |
1,825,688 |
1,804,705 |
1,687,921 |
Total liabilities and
shareholders' equity |
$ 17,074,247 |
$ 17,519,613 |
$ 16,172,018 |
|
WINTRUST FINANCIAL
CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS
OF INCOME (UNAUDITED) |
|
|
Three Months
Ended March 31, |
|
2013 |
2012 |
(In thousands, except per share data) |
|
|
Interest income |
|
|
Interest and fees on loans |
$ 142,114 |
$ 143,555 |
Interest bearing deposits with
banks |
569 |
248 |
Federal funds sold and
securities purchased under resale agreements |
15 |
12 |
Securities |
8,752 |
11,847 |
Trading account securities |
5 |
9 |
Federal Home Loan Bank and
Federal Reserve Bank stock |
684 |
604 |
Brokerage customer
receivables |
174 |
211 |
Total interest income |
152,313 |
156,486 |
Interest expense |
|
|
Interest on deposits |
14,504 |
18,030 |
Interest on Federal Home Loan
Bank advances |
2,764 |
3,584 |
Interest on notes payable and
other borrowings |
1,154 |
3,102 |
Interest on secured borrowings
- owed to securitization investors |
— |
2,549 |
Interest on subordinated
notes |
59 |
169 |
Interest on junior subordinated
debentures |
3,119 |
3,157 |
Total interest expense |
21,600 |
30,591 |
Net interest income |
130,713 |
125,895 |
Provision for credit losses |
15,687 |
17,400 |
Net interest income after provision for
credit losses |
115,026 |
108,495 |
Non-interest income |
|
|
Wealth management |
14,828 |
12,401 |
Mortgage banking |
30,145 |
18,534 |
Service charges on deposit
accounts |
4,793 |
4,208 |
Gains on available-for-sale
securities, net |
251 |
816 |
Fees from covered call
options |
1,639 |
3,123 |
Gain on bargain purchases,
net |
— |
840 |
Trading (losses) gains,
net |
(435) |
146 |
Other |
6,158 |
6,955 |
Total non-interest income |
57,379 |
47,023 |
Non-interest expense |
|
|
Salaries and employee
benefits |
77,513 |
69,030 |
Equipment |
6,184 |
5,400 |
Occupancy, net |
8,853 |
8,062 |
Data processing |
4,599 |
3,618 |
Advertising and marketing |
2,040 |
2,006 |
Professional fees |
3,221 |
3,604 |
Amortization of other
intangible assets |
1,120 |
1,049 |
FDIC insurance |
3,444 |
3,357 |
OREO (income) expense, net |
(1,620) |
7,178 |
Other |
14,765 |
14,455 |
Total non-interest expense |
120,119 |
117,759 |
Income before taxes |
52,286 |
37,759 |
Income tax expense |
20,234 |
14,549 |
Net income |
$ 32,052 |
$ 23,210 |
Preferred stock dividends and discount
accretion |
$ 2,616 |
$ 1,246 |
Net income applicable to common
shares |
$ 29,436 |
$ 21,964 |
Net income per common share -
Basic |
$ 0.80 |
$ 0.61 |
Net income per common share -
Diluted |
$ 0.65 |
$ 0.50 |
Cash dividends declared per common
share |
$ 0.09 |
$ 0.09 |
Weighted average common shares
outstanding |
36,976 |
36,207 |
Dilutive potential common shares |
12,463 |
7,530 |
Average common shares and dilutive common
shares |
49,439 |
43,737 |
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, return on
average tangible common equity 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. The Company references
the return on average tangible common equity as a measurement of
profitability. 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, seasonal payroll tax fluctuation and fees
to terminate repurchase agreements. Adjusted non-interest income is
calculated by adding back the recourse obligation on loans
previously sold and subtracting gains or adding back losses on FDIC
indemnification asset accretion, foreign currency remeasurement,
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 |
|
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
(Dollars and shares in thousands) |
2013 |
2012 |
2012 |
2012 |
2012 |
Calculation of Net Interest Margin
and Efficiency Ratio |
|
|
|
|
|
(A) Interest Income
(GAAP) |
$152,313 |
$156,643 |
$158,201 |
$155,691 |
$156,486 |
Taxable-equivalent
adjustment: |
|
|
|
|
|
- Loans |
150 |
159 |
148 |
135 |
134 |
- Liquidity Management
Assets |
343 |
349 |
352 |
333 |
329 |
- Other Earning Assets |
1 |
1 |
1 |
3 |
3 |
Interest Income - FTE |
$152,807 |
$157,152 |
$158,702 |
$156,162 |
$156,952 |
(B) Interest Expense
(GAAP) |
21,600 |
23,867 |
25,626 |
27,421 |
30,591 |
Net interest income - FTE |
$131,207 |
$133,285 |
$133,076 |
$128,741 |
$126,361 |
(C) Net Interest Income (GAAP) (A
minus B) |
$130,713 |
$132,776 |
$132,575 |
$128,270 |
$125,895 |
(D) Net interest margin
(GAAP) |
3.40% |
3.39% |
3.49% |
3.49% |
3.54% |
Net interest margin - FTE |
3.41% |
3.40% |
3.50% |
3.51% |
3.55% |
(E) Efficiency ratio
(GAAP) |
63.95% |
66.30% |
63.83% |
65.80% |
68.42% |
Efficiency ratio -
FTE |
63.78% |
66.13% |
63.67% |
65.63% |
68.24% |
Efficiency ratio -
Based on pre-tax adjusted earnings |
63.46% |
62.62% |
63.31% |
61.35% |
62.17% |
(F) Net Overhead Ratio
(GAAP) |
1.47% |
1.48% |
1.47% |
1.63% |
1.80% |
Net Overhead ratio -
Based on pre-tax adjusted earnings |
1.47% |
1.39% |
1.50% |
1.46% |
1.57% |
Calculation of Tangible Common Equity
ratio (at period end) |
|
|
|
|
|
Total shareholders' equity |
$1,825,688 |
$1,804,705 |
$1,761,300 |
$1,722,074 |
$1,687,921 |
(G) Less: Preferred stock |
(176,441) |
(176,406) |
(176,371) |
(176,337) |
(176,302) |
Less: Intangible assets |
(363,142) |
(366,348) |
(354,039) |
(352,109) |
(329,396) |
(H) Total tangible common shareholders'
equity |
$1,286,105 |
$1,261,951 |
$1,230,890 |
$1,193,628 |
$1,182,223 |
Total assets |
$17,074,247 |
$17,519,613 |
$17,018,592 |
$16,576,282 |
$16,172,018 |
Less: Intangible assets |
(363,142) |
(366,348) |
(354,039) |
(352,109) |
(329,396) |
(I) Total tangible assets |
$16,711,105 |
$17,153,265 |
$16,664,553 |
$16,224,173 |
$15,842,622 |
Tangible common equity ratio
(H/I) |
7.7% |
7.4% |
7.4% |
7.4% |
7.5% |
Tangible common equity ratio,
assuming full conversion of preferred stock ((H-G)/I) |
8.8% |
8.4% |
8.4% |
8.4% |
8.6% |
Calculation of Pre-Tax Adjusted
Earnings |
|
|
|
|
|
Income before taxes |
$52,286 |
$48,871 |
$52,173 |
$41,329 |
$37,759 |
Add: Provision for credit losses |
15,687 |
19,546 |
18,799 |
20,691 |
17,400 |
Add: OREO (income) expense, net |
(1,620) |
5,269 |
3,808 |
5,848 |
7,178 |
Add: Recourse obligation on loans previously
sold |
(755) |
— |
— |
(36) |
36 |
Add: Covered loan collection expense |
699 |
836 |
1,201 |
1,323 |
1,399 |
Add: Defeasance cost |
— |
— |
— |
148 |
848 |
Add: Seasonal payroll tax fluctuation |
1,610 |
(873) |
(1,121) |
(271) |
2,265 |
Add: FDIC Indemnification Asset
Amortization |
1,208 |
407 |
513 |
87 |
379 |
Add: Loss (gain) on foreign currency
remeasurement |
22 |
(826) |
825 |
— |
— |
Add: Fees for Termination of Repurchase
Agreements |
— |
2,110 |
— |
— |
— |
Less: Gain from investment partnerships |
(1,058) |
(373) |
(718) |
(65) |
(1,395) |
Less: Gain on bargain purchases, net |
— |
(85) |
(6,633) |
55 |
(840) |
Less: Trading losses (gains), net |
435 |
120 |
998 |
928 |
(146) |
Less: Gains on available-for-sale securities,
net |
(251) |
(2,561) |
(409) |
(1,109) |
(816) |
Pre-tax adjusted
earnings |
$68,263 |
$72,441 |
$69,436 |
$68,928 |
$64,067 |
Calculation of book value per
share |
|
|
|
|
|
Total shareholders' equity |
$1,825,688 |
$1,804,705 |
$1,761,300 |
$1,722,074 |
$1,687,921 |
Less: Preferred stock |
(176,441) |
(176,406) |
(176,371) |
(176,337) |
(176,302) |
(J) Total common equity |
$1,649,247 |
$1,628,299 |
$1,584,929 |
$1,545,737 |
$1,511,619 |
Actual common shares outstanding |
37,014 |
36,862 |
36,411 |
36,341 |
36,289 |
Add: TEU conversion shares |
6,238 |
6,241 |
6,133 |
6,760 |
6,593 |
(K) Common shares used for book value
calculation |
43,252 |
43,103 |
42,544 |
43,101 |
42,882 |
Book value per share
(J/K) |
$38.13 |
$37.78 |
$37.25 |
$35.86 |
$35.25 |
Tangible common book value per share
(H/K) |
$29.74 |
$29.28 |
$28.93 |
$27.69 |
$27.57 |
Calculation of return on average
common equity |
|
|
|
|
|
(L) Net income applicable to common
shares |
29,436 |
27,473 |
29,686 |
22,951 |
21,964 |
Total average shareholders' equity |
1,818,127 |
1,786,824 |
1,736,740 |
1,695,440 |
1,564,662 |
Less: Average preferred stock |
(176,422) |
(176,383) |
(176,349) |
(176,314) |
(67,852) |
(M) Total average common shareholders'
equity |
1,641,705 |
1,610,441 |
1,560,391 |
1,519,126 |
1,496,810 |
Less: Average intangible assets |
(365,505) |
(356,320) |
(352,779) |
(335,327) |
(327,195) |
(N) Total average tangible common
shareholders' equity |
1,276,200 |
1,254,121 |
1,207,612 |
1,183,799 |
1,169,615 |
Return on average common equity,
annualized (L/M) |
7.27% |
6.79% |
7.57% |
6.08% |
5.90% |
Return on average tangible common
equity, annualized (L/N) |
9.35% |
8.71% |
9.78% |
7.80% |
7.55% |
|
|
|
|
|
|
LOANS |
|
|
|
|
|
Loan Portfolio Mix and Growth
Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Growth |
(Dollars in thousands) |
|
|
|
From (1) |
From |
Balance: |
March 31, 2013 |
December 31, 2012 |
March 31, 2012 |
December 31, 2012 |
March 31, 2012 |
Commercial |
$2,872,695 |
$2,914,798 |
$2,544,456 |
(6)% |
13% |
Commercial real-estate |
3,990,465 |
3,864,118 |
3,585,760 |
13 |
11 |
Home equity |
759,218 |
788,474 |
840,364 |
(15) |
(10) |
Residential real-estate |
360,652 |
367,213 |
361,327 |
(7) |
— |
Premium finance receivables -
commercial |
1,997,160 |
1,987,856 |
1,512,630 |
2 |
32 |
Premium finance receivables -
life insurance |
1,753,512 |
1,725,166 |
1,693,763 |
7 |
4 |
Indirect consumer (2) |
69,245 |
77,333 |
67,445 |
(42) |
3 |
Consumer and other |
97,365 |
103,985 |
111,639 |
(26) |
(13) |
Total loans, net of unearned
income, excluding covered loans |
$11,900,312 |
$11,828,943 |
$10,717,384 |
2% |
11% |
Covered loans |
518,661 |
560,087 |
691,220 |
(30) |
(25) |
Total loans, net of unearned
income |
$12,418,973 |
$12,389,030 |
$11,408,604 |
1% |
9% |
Mix: |
|
|
|
|
|
Commercial |
23% |
24% |
22% |
|
|
Commercial real-estate |
32 |
31 |
32 |
|
|
Home equity |
6 |
6 |
7 |
|
|
Residential real-estate |
3 |
3 |
3 |
|
|
Premium finance receivables -
commercial |
16 |
16 |
13 |
|
|
Premium finance receivables -
life insurance |
14 |
14 |
15 |
|
|
Indirect consumer (2) |
1 |
1 |
1 |
|
|
Consumer and other |
1 |
1 |
1 |
|
|
Total loans, net of unearned
income, excluding covered loans |
96% |
96% |
94% |
|
|
Covered loans |
4 |
4 |
6 |
|
|
Total loans, net of unearned
income |
100% |
100% |
100% |
|
|
|
|
|
|
|
|
(1) Annualized |
|
|
|
|
|
(2) Includes autos, boats,
snowmobiles and other indirect consumer loans |
|
|
|
|
|
|
|
|
|
|
As of March 31, 2013 |
|
|
|
> 90 Days |
Allowance |
|
|
% of |
|
Past Due |
For Loan |
|
|
Total |
|
and Still |
Losses |
(Dollars in thousands) |
Balance |
Balance |
Nonaccrual |
Accruing |
Allocation |
Commercial: |
|
|
|
|
|
Commercial and industrial |
$1,569,576 |
22.9% |
$17,717 |
$— |
$18,279 |
Franchise |
194,511 |
2.8 |
125 |
— |
1,655 |
Mortgage warehouse lines of
credit |
131,970 |
1.9 |
— |
— |
1,288 |
Community Advantage - homeowner
associations |
82,763 |
1.2 |
— |
— |
207 |
Aircraft |
14,112 |
0.2 |
— |
— |
74 |
Asset-based lending |
687,255 |
10.0 |
531 |
— |
6,307 |
Municipal |
89,508 |
1.3 |
— |
— |
880 |
Leases |
98,030 |
1.4 |
— |
— |
261 |
Other |
127 |
— |
— |
— |
1 |
Purchased non-covered
commercial loans (1) |
4,843 |
— |
— |
449 |
— |
Total
commercial |
$2,872,695 |
41.7% |
$18,373 |
$449 |
$28,952 |
Commercial Real-Estate: |
|
|
|
|
|
Residential construction |
$37,083 |
0.5% |
$3,094 |
$— |
$1,200 |
Commercial construction |
162,358 |
2.4 |
1,086 |
— |
2,749 |
Land |
133,578 |
2.0 |
17,976 |
— |
5,198 |
Office |
584,684 |
8.5 |
3,564 |
— |
5,634 |
Industrial |
595,525 |
8.7 |
7,137 |
— |
6,602 |
Retail |
586,801 |
8.6 |
7,915 |
— |
5,592 |
Multi-family |
512,785 |
7.5 |
2,088 |
— |
12,778 |
Mixed use and other |
1,322,834 |
19.3 |
18,947 |
— |
16,655 |
Purchased non-covered commercial
real-estate (1) |
54,817 |
0.8 |
— |
1,866 |
— |
Total commercial
real-estate |
$3,990,465 |
58.3% |
$61,807 |
$1,866 |
$56,408 |
Total commercial and
commercial real-estate |
$6,863,160 |
100.0% |
$80,180 |
$2,315 |
$85,360 |
|
|
|
|
|
|
Commercial real-estate - collateral location
by state: |
|
|
|
|
|
Illinois |
$3,359,815 |
84.2% |
|
|
|
Wisconsin |
334,333 |
8.4 |
|
|
|
Total primary
markets |
$3,694,148 |
92.6% |
|
|
|
Florida |
64,999 |
1.6 |
|
|
|
Arizona |
39,442 |
1.0 |
|
|
|
Indiana |
53,401 |
1.3 |
|
|
|
Other (no individual state
greater than 0.5%) |
138,475 |
3.5 |
|
|
|
Total |
$3,990,465 |
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 |
(Dollars in thousands) |
March 31,
2013 |
December 31, 2012 |
March 31, 2012 |
From (1) December 31, 2012 |
March 31, 2012 |
Balance: |
|
|
|
|
|
Non-interest bearing |
$2,243,440 |
$2,396,264 |
$1,901,753 |
(26)% |
18% |
NOW |
2,043,227 |
2,022,957 |
1,756,313 |
4 |
16 |
Wealth Management deposits
(2) |
868,119 |
991,902 |
933,609 |
(51) |
(7) |
Money Market |
2,879,636 |
2,761,498 |
2,306,726 |
17 |
25 |
Savings |
1,258,682 |
1,275,012 |
943,066 |
(5) |
33 |
Time certificates of
deposit |
4,669,653 |
4,980,911 |
4,824,386 |
(25) |
(3) |
Total deposits |
$13,962,757 |
$14,428,544 |
$12,665,853 |
(13)% |
10% |
Mix: |
|
|
|
|
|
Non-interest bearing |
16% |
17% |
15% |
|
|
NOW |
15 |
14 |
14 |
|
|
Wealth Management deposits
(2) |
6 |
7 |
7 |
|
|
Money Market |
21 |
19 |
18 |
|
|
Savings |
9 |
9 |
8 |
|
|
Time certificates of
deposit |
33 |
34 |
38 |
|
|
Total deposits |
100% |
100% |
100% |
|
|
|
|
|
|
|
|
(1) Annualized |
|
|
|
|
|
(2)
Represents deposit balances of the Company's subsidiary banks from
brokerage customers of Wayne Hummer Investments, trust and asset
management customers of The Chicago Trust Company and brokerage
customers from unaffiliated companies which have been placed into
deposit accounts of the Banks. |
|
Time Certificates of
Deposit |
Maturity/Re-pricing
Analysis |
As of March 31,
2013 |
(Dollars in thousands) |
CDARs & Brokered
Certificates of Deposit (1) |
MaxSafe Certificates
of Deposit (1) |
Variable Rate Certificates
of Deposit (2) |
Other Fixed Rate Certificates
of Deposit (1) |
Total Time
Certificates of Deposit |
Weighted- Average Rate of
Maturing Time Certificates of Deposit (3) |
1-3 months |
$146,322 |
$61,916 |
$161,566 |
$817,366 |
$1,187,170 |
0.58% |
4-6 months |
125,277 |
45,658 |
— |
667,345 |
838,280 |
0.79% |
7-9 months |
4,465 |
51,234 |
— |
533,132 |
588,831 |
0.72% |
10-12 months |
40,012 |
46,938 |
— |
584,053 |
671,003 |
0.82% |
13-18 months |
18,370 |
35,645 |
— |
491,918 |
545,933 |
1.02% |
19-24 months |
95,661 |
13,554 |
— |
211,650 |
320,865 |
1.77% |
24+ months |
— |
23,790 |
— |
493,781 |
517,571 |
1.66% |
Total |
$430,107 |
$278,735 |
$161,566 |
$3,799,245 |
$ 4,669,653 |
0.92% |
|
|
|
|
|
|
|
(1) This
category of certificates of deposit is shown by contractual
maturity date. |
(2) This
category includes variable rate certificates of deposit and savings
certificates with the majority repricing on at least a monthly
basis. |
(3)
Weighted-average rate excludes the impact of purchase accounting
fair value adjustments. |
NET INTEREST INCOME
The following table presents a summary of Wintrust's average
balances, net interest income and related net interest margins,
calculated on a fully tax-equivalent basis, for the first quarter
of 2013 compared to the first quarter of 2012 (linked
quarters):
|
Three months
ended March 31, 2013 |
Three months ended March
31, 2012 |
(Dollars in thousands) |
Average |
Interest |
Rate |
Average |
Interest |
Rate |
Liquidity management assets (1) (2)
(7) |
$2,797,310 |
$10,363 |
1.50% |
$2,756,833 |
$13,040 |
1.90% |
Other earning assets (2) (3) (7) |
24,205 |
180 |
3.02 |
30,499 |
224 |
2.96 |
Loans, net of unearned income
(2) (4) (7) |
12,252,558 |
131,740 |
4.36 |
10,848,016 |
128,784 |
4.77 |
Covered loans |
536,284 |
10,524 |
7.96 |
667,242 |
14,904 |
8.98 |
Total earning assets (7) |
$15,610,357 |
$152,807 |
3.97% |
$14,302,590 |
$156,952 |
4.41% |
Allowance for loan and covered loan
losses |
(125,221) |
|
|
(131,769) |
|
|
Cash and due from banks |
217,345 |
|
|
143,869 |
|
|
Other assets |
1,554,362 |
|
|
1,520,660 |
|
|
Total assets |
$17,256,843 |
|
|
$15,835,350 |
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$11,857,400 |
$14,504 |
0.50% |
$10,481,822 |
$18,030 |
0.69% |
Federal Home Loan Bank advances |
414,092 |
2,764 |
2.71 |
470,345 |
3,584 |
3.06 |
Notes payable and other borrowings |
297,151 |
1,154 |
1.57 |
505,814 |
3,102 |
2.47 |
Secured borrowings - owed to securitization
investors |
— |
— |
— |
514,923 |
2,549 |
1.99 |
Subordinated notes |
15,000 |
59 |
1.56 |
35,000 |
169 |
1.91 |
Junior subordinated notes |
249,493 |
3,119 |
5.00 |
249,493 |
3,157 |
5.01 |
Total interest-bearing
liabilities |
$12,833,136 |
$21,600 |
0.68% |
$12,257,397 |
$30,591 |
1.00% |
Non-interest bearing deposits |
2,290,725 |
|
|
1,832,627 |
|
|
Other liabilities |
314,855 |
|
|
180,664 |
|
|
Equity |
1,818,127 |
|
|
1,564,662 |
|
|
Total liabilities and
shareholders' equity |
$17,256,843 |
|
|
$15,835,350 |
|
|
Interest rate spread (5) (7) |
|
|
3.29% |
|
|
3.41% |
Net free funds/contribution (6) |
$2,777,221 |
|
0.12% |
$2,045,193 |
|
0.14% |
Net interest income/Net interest margin
(7) |
|
$131,207 |
3.41% |
|
$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 March 31, 2013 and 2012 were $494,000 and
$466,000, 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 following table presents a summary of Wintrust's average
balances, net interest income and related net interest margins,
calculated on a fully tax-equivalent basis, for the first quarter
of 2013 compared to the fourth quarter of 2012 (sequential
quarters):
|
Three months
ended March 31, 2013 |
Three months ended
December 31, 2012 |
(Dollars in thousands) |
Average |
Interest |
Rate |
Average |
Interest |
Rate |
Liquidity management assets (1) (2)
(7) |
$2,797,310 |
$10,363 |
1.50% |
$2,949,034 |
$9,844 |
1.33% |
Other earning assets (2) (3) (7) |
24,205 |
180 |
3.02 |
27,482 |
203 |
2.95 |
Loans, net of unearned income
(2) (4) (7) |
12,252,558 |
131,740 |
4.36 |
12,001,433 |
134,347 |
4.45 |
Covered loans |
536,284 |
10,524 |
7.96 |
626,449 |
12,758 |
8.10 |
Total earning assets (7) |
$15,610,357 |
$152,807 |
3.97% |
$15,604,398 |
$157,152 |
4.01% |
Allowance for loan and covered loan
losses |
(125,221) |
|
|
(135,156) |
|
|
Cash and due from banks |
217,345 |
|
|
206,914 |
|
|
Other assets |
1,554,362 |
|
|
1,572,494 |
|
|
Total assets |
$17,256,843 |
|
|
$17,248,650 |
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$11,857,400 |
$14,504 |
0.50% |
$11,709,058 |
$16,209 |
0.55% |
Federal Home Loan Bank advances |
414,092 |
2,764 |
2.71 |
414,289 |
2,835 |
2.72 |
Notes payable and other borrowings |
297,151 |
1,154 |
1.57 |
397,807 |
1,565 |
1.57 |
Secured borrowings - owed to securitization
investors |
— |
— |
— |
— |
— |
— |
Subordinated notes |
15,000 |
59 |
1.56 |
15,000 |
66 |
1.72 |
Junior subordinated notes |
249,493 |
3,119 |
5.00 |
249,493 |
3,192 |
5.01 |
Total interest-bearing
liabilities |
$12,833,136 |
$21,600 |
0.68% |
$12,785,647 |
$23,867 |
0.74% |
Non-interest bearing deposits |
2,290,725 |
|
|
2,314,935 |
|
|
Other liabilities |
314,855 |
|
|
361,244 |
|
|
Equity |
1,818,127 |
|
|
1,786,824 |
|
|
Total liabilities and
shareholders' equity |
$17,256,843 |
|
|
$17,248,650 |
|
|
Interest rate spread (5) (7) |
|
|
3.29% |
|
|
3.27% |
Net free funds/contribution (6) |
$2,777,221 |
|
0.12% |
$2,818,751 |
|
0.13% |
Net interest income/Net interest margin
(7) |
|
$131,207 |
3.41% |
|
$133,285 |
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 March 31, 2013 was $494,000 and for the three
months ended December 31, 2012 was $509,000. |
(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. |
NON-INTEREST INCOME
For the first quarter of 2013, non-interest income totaled $57.4
million, an increase of $10.4 million, or 22%, compared to the
first quarter of 2012. The increase was primarily attributable
to higher mortgage banking and wealth management revenues,
partially offset by a decrease in fees from covered call
options.
The following table presents non-interest income by category for
the periods presented:
|
Three months
ended March 31, |
$ |
% |
(Dollars in thousands) |
2013 |
2012 |
Change |
Change |
Brokerage |
$7,267 |
$6,322 |
$945 |
15 |
Trust and asset management |
7,561 |
6,079 |
1,482 |
24 |
Total wealth management |
14,828 |
12,401 |
2,427 |
20 |
Mortgage banking |
30,145 |
18,534 |
11,611 |
63 |
Service charges on deposit accounts |
4,793 |
4,208 |
585 |
14 |
Gains on available-for-sale securities,
net |
251 |
816 |
(565) |
(69) |
Fees from covered call options |
1,639 |
3,123 |
(1,484) |
(48) |
Gain on bargain purchases, net |
— |
840 |
(840) |
(100) |
Trading (losses) gains, net |
(435) |
146 |
(581) |
NM |
Other: |
|
|
|
|
Interest rate swap fees |
2,270 |
2,511 |
(241) |
(10) |
Bank Owned Life Insurance |
846 |
919 |
(73) |
(8) |
Administrative services |
738 |
766 |
(28) |
(4) |
Miscellaneous |
2,304 |
2,759 |
(455) |
(16) |
Total Other |
6,158 |
6,955 |
(797) |
(11) |
Total Non-Interest Income |
$57,379 |
$47,023 |
$10,356 |
22 |
NM - Not Meaningful |
|
|
|
|
The significant changes in non-interest income for the quarter
ended March 31, 2013 compared to the quarter ended
March 31, 2012 are discussed below.
Wealth management revenue totaled $14.8 million in the first
quarter of 2013 compared to $12.4 million in the first quarter of
2012, an increase of 20%. The increase is mostly attributable
to additional revenues resulting from the acquisition of a
community bank trust operation on March 30, 2012 as well as
continued growth within the existing business. 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 March 31, 2013, mortgage banking
revenue totaled $30.1 million, an increase of $11.6 million when
compared to the first quarter of 2012. The increase in
mortgage banking revenue in the first quarter of 2013 as compared
to the first quarter of 2012 resulted primarily from higher
origination volumes due to the continuation of the late 2012
refinance market into 2013 as well as the general improvement in
the overall economy (increased housing starts, home sales and
median price of homes). Mortgage loan originations were $974.4
million in the first quarter of 2013 as compared to $714.7 million
in the prior year quarter. In addition to higher origination
volume, improved pricing, secondary market gains and a positive
adjustment to the recourse reserve contributed to the current
period increase in mortgage banking revenue. 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:
|
Three Months
Ended |
(Dollars in thousands) |
March 31,
2013 |
December 31, 2012 |
March 31, 2012 |
Mortgage loans originated and sold |
$974,432 |
$1,178,010 |
$714,655 |
Mortgage loans serviced for others |
1,016,191 |
1,005,372 |
963,514 |
Fair value of mortgage servicing rights
(MSRs) |
7,344 |
6,750 |
7,201 |
MSRs as a percentage of loans serviced |
0.72% |
0.67% |
0.75% |
Fees from covered call option transactions decreased by $1.5
million in the first quarter of 2013 as compared to the same period
in the prior year. Fees from covered call options decreased
primarily as a result of fewer option transactions entered in the
first quarter of 2013 compared to the first quarter of 2012
resulting in lower premiums received by the Company. The Company
has typically written call options with terms of less than three
months against certain U.S. Treasury and agency securities held in
its portfolio for liquidity and other purposes. Historically,
the Company has effectively entered into these transactions with
the goal of enhancing its overall return on its investment
portfolio by using fees generated from these options to compensate
for net interest margin compression. These option transactions
are designed to increase the total return associated with holding
certain investment securities that do not qualify as hedges
pursuant to accounting guidance. 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)").
Other non-interest income for the first quarter of 2013 totaled
$6.2 million, a decrease of $797,000 compared to the first quarter
of 2012. Miscellaneous income decreased in the first quarter
of 2013 compared to the prior year quarter primarily as a result of
increased FDIC indemnification asset amortization, primarily
related to additional clawback expense related to a covered OREO
sale during the quarter.
NON-INTEREST EXPENSE
Non-interest expense for the first quarter of 2013 totaled
$120.1 million and increased approximately $2.4 million, or 2%,
compared to the first quarter of 2012. The increase was
primarily attributable to higher salaries and employee benefit
costs and increased equipment, occupancy and data processing
expenses, partially offset by a decrease in OREO
expenses.
The following table presents non-interest expense by category
for the periods presented:
|
Three months
ended March 31, |
$ |
% |
(Dollars in thousands) |
2013 |
2012 |
Change |
Change |
Salaries and employee benefits: |
|
|
|
|
Salaries |
$41,831 |
$37,933 |
3,898 |
10 |
Commissions and bonus |
21,276 |
16,802 |
4,474 |
27 |
Benefits |
14,406 |
14,295 |
111 |
1 |
Total salaries and employee
benefits |
77,513 |
69,030 |
8,483 |
12 |
Equipment |
6,184 |
5,400 |
784 |
15 |
Occupancy, net |
8,853 |
8,062 |
791 |
10 |
Data processing |
4,599 |
3,618 |
981 |
27 |
Advertising and marketing |
2,040 |
2,006 |
34 |
2 |
Professional fees |
3,221 |
3,604 |
(383) |
(11) |
Amortization of other intangible assets |
1,120 |
1,049 |
71 |
7 |
FDIC insurance |
3,444 |
3,357 |
87 |
3 |
OREO (income) expense, net |
(1,620) |
7,178 |
(8,798) |
NM |
Other: |
|
|
|
|
Commissions - 3rd party
brokers |
1,233 |
1,021 |
212 |
21 |
Postage |
1,249 |
1,423 |
(174) |
(12) |
Stationery and supplies |
934 |
919 |
15 |
2 |
Miscellaneous |
11,349 |
11,092 |
257 |
2 |
Total other |
14,765 |
14,455 |
310 |
2 |
Total Non-Interest
Expense |
$120,119 |
$117,759 |
$2,360 |
2 |
NM - Not Meaningful |
|
|
|
|
The significant changes in non-interest expense for the quarter
ended March 31, 2013 compared to the quarter ended
March 31, 2012 are discussed below.
Salaries and employee benefits expense increased $8.5 million,
or 12%, in the first quarter of 2013 compared to the first quarter
of 2012 primarily as a result of a $4.5 million increase in bonus
and commissions primarily attributable to the increase in variable
pay based revenue, a $3.9 million increase in salaries caused by
the addition of employees from the various acquisitions and larger
staffing as the Company grows and the Company's long-term incentive
program and a $111,000 increase in employee benefits.
Equipment expense totaled $6.2 million for the first quarter of
2013, an increase of $784,000 compared to the first quarter of
2012. The increase is primarily related to additional
equipment depreciation as a result of acquisitions as well as
increased software license fees. Equipment expense includes
depreciation on equipment, maintenance and repairs, equipment
rental and software license fees.
Occupancy expense for the first quarter of 2013 was $8.9
million, an increase of $791,000, or 10%, compared to the same
period in 2012. The increase is primarily the result of
depreciation and maintenance and repairs on owned locations which
were obtained in the Company's acquisitions. Occupancy expense
includes depreciation on premises, real estate taxes, utilities and
maintenance of premises, as well as net rent expense for leased
premises.
Data processing expenses increased $981,000 in the first quarter
of 2013 totaling $4.6 million compared to $3.6 million recorded in
the first quarter of 2012. The amount of data processing
expenses incurred fluctuates based on the overall growth of loan
and deposit accounts as well as additional expenses recorded
related to bank acquisition transactions. Data processing
expenses increased in the current quarter compared to the previous
year quarter primarily due to growth in the Company.
OREO income totaled $1.6 million in the first quarter of 2013
compared to OREO expense of $7.2 million recorded in the first
quarter of 2012. The OREO income recorded in the current
quarter is primarily related to a $3.4 million gain recognized on a
covered OREO property sale as well as fewer negative valuation
adjustments on properties held in OREO. OREO costs include all
costs related to obtaining, maintaining and selling other real
estate owned properties.
Miscellaneous expenses in the first quarter of 2013 increased
$257,000, or 2%, compared to the same period in the prior
year. 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 63.46% for the first quarter of 2013, compared to
62.17% in the first quarter of 2012. The net overhead ratio,
based on pre-tax adjusted earnings, was 1.47% for the first quarter
of 2013, compared to 1.57% in the first quarter of 2012.
ASSET QUALITY |
|
|
Allowance for Credit Losses, excluding
covered loans |
|
|
|
|
|
|
Three months
ended |
|
March
31, |
(Dollars in thousands) |
2013 |
2012 |
Allowance for loan losses at
beginning of period |
$107,351 |
$110,381 |
Provision for credit
losses |
15,367 |
15,154 |
Other adjustments |
(229) |
(238) |
Reclassification (to)/from allowance
for unfunded lending-related commitments |
(213) |
152 |
Charge-offs: |
|
|
Commercial |
4,540 |
3,262 |
Commercial real estate |
3,299 |
8,229 |
Home equity |
2,397 |
2,590 |
Residential real estate |
1,728 |
175 |
Premium finance receivables -
commercial |
1,068 |
837 |
Premium finance receivables -
life insurance |
— |
13 |
Indirect consumer |
32 |
51 |
Consumer and other |
97 |
310 |
Total charge-offs |
13,161 |
15,467 |
Recoveries: |
|
|
Commercial |
295 |
257 |
Commercial real estate |
368 |
131 |
Home equity |
162 |
162 |
Residential real estate |
5 |
2 |
Premium finance receivables -
commercial |
285 |
277 |
Premium finance receivables -
life insurance |
9 |
21 |
Indirect consumer |
15 |
30 |
Consumer and other |
94 |
161 |
Total recoveries |
1,233 |
1,041 |
Net charge-offs |
(11,928) |
(14,426) |
Allowance for loan losses at
period end |
$110,348 |
$111,023 |
Allowance for unfunded
lending-related commitments at period end |
15,287 |
13,078 |
Allowance for credit losses at
period end |
$125,635 |
$124,101 |
Annualized net charge-offs by
category as a percentage of its own respective
category's average: |
|
|
Commercial |
0.61% |
0.49% |
Commercial real estate |
0.30 |
0.92 |
Home equity |
1.17 |
1.15 |
Residential real estate |
0.93 |
0.11 |
Premium finance receivables -
commercial |
0.16 |
0.15 |
Premium finance receivables - life
insurance |
— |
— |
Indirect consumer |
0.09 |
0.13 |
Consumer and other |
0.01 |
0.49 |
Total loans, net of unearned
income, excluding covered loans |
0.39% |
0.53% |
Net charge-offs as a percentage
of the provision for credit losses |
77.62% |
95.20% |
Loans at period-end |
$11,900,312 |
$ 10,717,384 |
Allowance for loan losses as a
percentage of loans at period end |
0.93% |
1.04% |
Allowance for credit losses as a
percentage of loans at period end |
1.06% |
1.16% |
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).
The provision for credit losses, excluding the provision for
covered loan losses, totaled $15.4 million for the first quarter of
2013, $20.7 million for the fourth quarter of 2012 and $15.2
million for the first quarter of 2012. For the quarter ended
March 31, 2013, net charge-offs, excluding covered loans,
totaled $11.9 million compared to $25.1 million in the fourth
quarter of 2012 and $14.4 million recorded in the first quarter of
2012. Annualized net charge-offs as a percentage of average loans,
excluding covered loans, were 0.39% in the first quarter of 2013,
0.83% in the fourth quarter of 2012 and 0.53% in the first quarter
of 2012. The lower level of the allowance for credit losses in
2013, reflect the improvements in credit quality metrics compared
to 2012.
Management believes the allowance for credit losses is
appropriate to provide for inherent losses in the portfolio. There
can be no assurances however, that future losses will not exceed
the amounts provided for, thereby affecting future results of
operations. The amount of future additions to the allowance for
credit losses will be dependent upon management's assessment of the
appropriateness of the allowance based on its evaluation of
economic conditions, changes in real estate values, interest rates,
the regulatory environment, the level of past-due and
non-performing loans, and other factors.
The Company also provides a provision for covered loan losses on
covered loans and maintains an allowance for covered loan losses on
covered loans. Please see "Covered Assets" later in this document
for more detail.
The tables below summarizes the calculation of allowance for
loan losses for the Company's core loan portfolio and niche and
purchased loan portfolio as of March 31, 2013 and
December 31, 2012.
|
As of March 31,
2013 |
(Dollars in thousands) |
Recorded
Investment |
Calculated
Allowance |
As a percentage
of its own respective category's
balance |
Commercial: |
|
|
|
Commercial and industrial
(1) |
$1,555,054 |
$18,229 |
1.17% |
Asset-based lending (1) |
684,327 |
6,307 |
0.92 |
Municipal |
89,508 |
880 |
0.98 |
Leases (1) |
97,337 |
261 |
0.27 |
Other (1) |
127 |
1 |
0.79 |
Commercial real-estate: |
|
|
|
Residential construction |
36,669 |
1,200 |
3.27 |
Commercial construction
(1) |
161,828 |
2,749 |
1.70 |
Land |
132,166 |
5,198 |
3.93 |
Office (1) |
564,713 |
5,634 |
1.00 |
Industrial (1) |
589,467 |
6,602 |
1.12 |
Retail (1) |
572,559 |
5,592 |
0.98 |
Multi-family (1) |
475,743 |
12,778 |
2.69 |
Mixed use and other (1) |
1,261,710 |
16,239 |
1.29 |
Home equity (1) |
745,970 |
12,102 |
1.62 |
Residential real-estate (1) |
354,699 |
5,133 |
1.45 |
Total core loan
portfolio |
$7,321,877 |
$98,905 |
1.35% |
Commercial: |
|
|
|
Franchise |
$194,511 |
$1,655 |
0.85% |
Mortgage warehouse lines of
credit |
131,970 |
1,288 |
0.98 |
Community Advantage - homeowner
associations |
82,763 |
207 |
0.25 |
Aircraft |
14,112 |
74 |
0.52 |
Purchased non-covered
commercial loans (2) |
22,986 |
50 |
0.22 |
Commercial real-estate: |
|
|
|
Purchased non-covered
commercial real-estate (2) |
195,610 |
416 |
0.21 |
Purchased non-covered home equity (2) |
13,248 |
20 |
0.15 |
Purchased non-covered residential real-estate
(2) |
5,953 |
7 |
0.12 |
Premium finance receivables |
|
|
|
U.S. commercial insurance
loans |
1,755,064 |
5,402 |
0.31 |
Canada commercial insurance
loans (2) |
242,096 |
167 |
0.07 |
Life insurance loans (1) |
1,253,781 |
502 |
0.04 |
Purchased life insurance loans
(2) |
499,731 |
— |
— |
Indirect consumer |
69,245 |
277 |
0.40 |
Consumer and other (1) |
91,322 |
1,369 |
1.50 |
Purchased non-covered consumer and other
(2) |
6,043 |
9 |
0.15 |
Total niche and
purchased loan portfolio |
$4,578,435 |
$11,443 |
0.25% |
Total loans, net of
unearned income, excluding covered loans |
$11,900,312 |
$110,348 |
0.93% |
|
|
|
|
(1) Excludes
purchased loans reported in accordance with ASC 310-20 and ASC
310-30. |
(2) Purchased
loans represent loans reported in accordance with ASC 310-20 and
ASC 310-30. |
|
|
|
As of December
31, 2012 |
(Dollars in thousands) |
|
Recorded
Investment |
Calculated
Allowance |
As a percentage
of its own respective category's
balance |
Commercial: |
|
|
|
|
Commercial and industrial
(1) |
|
$1,616,045 |
$17,040 |
1.05% |
Asset-based lending (1) |
|
571,009 |
5,066 |
0.89 |
Municipal |
|
91,824 |
1,041 |
1.13 |
Leases |
|
89,674 |
248 |
0.28 |
Other |
|
16,246 |
137 |
0.84 |
Commercial real-estate: |
|
|
|
|
Residential construction |
|
40,401 |
1,301 |
3.22 |
Commercial construction
(1) |
|
169,922 |
3,194 |
1.88 |
Land |
|
134,197 |
4,829 |
3.60 |
Office (1) |
|
557,520 |
5,446 |
0.98 |
Industrial (1) |
|
571,455 |
5,516 |
0.97 |
Retail (1) |
|
562,480 |
5,292 |
0.94 |
Multi-family (1) |
|
392,289 |
10,644 |
2.71 |
Mixed use and other (1) |
|
1,232,592 |
15,913 |
1.29 |
Home equity (1) |
|
773,525 |
12,734 |
1.65 |
Residential real-estate (1) |
|
361,089 |
5,560 |
1.54 |
Total core loan
portfolio |
|
$7,180,268 |
$93,961 |
1.31% |
Commercial: |
|
|
|
|
Franchise |
|
$196,395 |
$2,880 |
1.47% |
Mortgage warehouse lines of
credit |
|
215,076 |
2,134 |
0.99 |
Community Advantage
- homeowner associations |
81,496 |
204 |
0.25 |
Aircraft |
|
17,364 |
44 |
0.25 |
Purchased
non-covered commercial loans (2) |
19,669 |
— |
— |
Commercial real-estate: |
|
|
|
|
Purchased
non-covered commercial real-estate (2) |
203,262 |
— |
— |
Purchased non-covered home equity
(2) |
14,949 |
— |
— |
Purchased non-covered residential
real-estate (2) |
6,124 |
— |
— |
Premium finance receivables |
|
|
|
|
U.S. commercial insurance
loans |
|
1,737,613 |
5,402 |
0.31 |
Canada commercial
insurance loans (2) |
250,243 |
128 |
0.05 |
Life insurance loans (1) |
|
1,188,134 |
566 |
0.05 |
Purchased life insurance loans
(2) |
|
537,032 |
— |
— |
Indirect consumer |
|
77,333 |
267 |
0.35 |
Consumer and other (1) |
|
97,731 |
1,639 |
1.68 |
Purchased non-covered consumer
and other (2) |
6,254 |
126 |
2.01 |
Total niche
and purchased loan portfolio |
$4,648,675 |
$13,390 |
0.29% |
Total
loans, net of unearned income, excluding covered
loans |
$11,828,943 |
$107,351 |
0.91% |
|
|
|
|
|
(1) Excludes
purchased loans reported in accordance with ASC 310-20 and ASC
310-30. |
(2) Purchased
loans represent loans reported in accordance with ASC 310-20 and
ASC 310-30. |
As part of 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 was shown
on the previous pages as of March 31, 2013 and
December 31, 2012. The allowance for loan losses to core loans
was 1.35% compared to 0.25% for niche loans and 0.93% for the
entire loan portfolio as of March 31, 2013. As of
December 31, 2012, the allowance for loan losses to core loans
was 1.31% compared to 0.29% for niche loans and 0.91% for the
entire loan portfolio.
The increase in the total allowance for loan losses to total
loans, and the increase in the allowance for loan losses to core
loans in the first quarter of 2013 compared to the fourth quarter
of 2012 was attributable to a $2.3 million increase in ASC 310
reserves (specific reserves on impaired loans) on the core
portfolio.
ASC 450 reserve (general reserves) as a percentage of core loans
was 1.19% at March 31, 2013 and 1.17% at December 31,
2012. This increase was attributable to a slight increase in
the ASC 450 reserve factors, which are driven by historical
charge-offs.
The table below shows the aging of the Company's loan portfolio,
excluding covered loans, at March 31, 2013:
As of March 31, 2013 |
|
|
|
|
|
|
(Dollars in thousands) |
Nonaccrual |
90+ days and still
accruing |
60-89 days past
due |
30-59 days past
due |
Current |
Total Loans |
Loan Balances: |
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
Commercial and industrial |
$17,717 |
$— |
$1,150 |
$16,710 |
$1,533,999 |
$1,569,576 |
Franchise |
125 |
— |
— |
76 |
194,310 |
194,511 |
Mortgage warehouse lines of
credit |
— |
— |
— |
— |
131,970 |
131,970 |
Community Advantage -
homeowners association |
— |
— |
— |
— |
82,763 |
82,763 |
Aircraft |
— |
— |
— |
— |
14,112 |
14,112 |
Asset-based lending |
531 |
— |
483 |
5,518 |
680,723 |
687,255 |
Municipal |
— |
— |
— |
— |
89,508 |
89,508 |
Leases |
— |
— |
— |
844 |
97,186 |
98,030 |
Other |
— |
— |
— |
— |
127 |
127 |
Purchased
non-covered commercial (1) |
— |
449 |
— |
— |
4,394 |
4,843 |
Total commercial |
18,373 |
449 |
1,633 |
23,148 |
2,829,092 |
2,872,695 |
Commercial real-estate |
|
|
|
|
|
|
Residential construction |
3,094 |
— |
945 |
— |
33,044 |
37,083 |
Commercial construction |
1,086 |
— |
9,521 |
— |
151,751 |
162,358 |
Land |
17,976 |
— |
— |
11,563 |
104,039 |
133,578 |
Office |
3,564 |
— |
8,990 |
4,797 |
567,333 |
584,684 |
Industrial |
7,137 |
— |
— |
986 |
587,402 |
595,525 |
Retail |
7,915 |
— |
6,970 |
5,953 |
565,963 |
586,801 |
Multi-family |
2,088 |
— |
1,036 |
4,315 |
505,346 |
512,785 |
Mixed use and other |
18,947 |
— |
1,573 |
13,560 |
1,288,754 |
1,322,834 |
Purchased non-covered commercial
real-estate (1) |
— |
1,866 |
251 |
3,333 |
49,367 |
54,817 |
Total commercial
real-estate |
61,807 |
1,866 |
29,286 |
44,507 |
3,852,999 |
3,990,465 |
Home equity |
14,891 |
— |
1,370 |
4,324 |
738,633 |
759,218 |
Residential real estate |
9,606 |
— |
782 |
8,680 |
340,751 |
359,819 |
Purchased non-covered residential real estate
(1) |
— |
— |
198 |
— |
635 |
833 |
Premium finance receivables |
|
|
|
|
|
|
Commercial insurance loans |
12,068 |
7,677 |
4,647 |
19,323 |
1,953,445 |
1,997,160 |
Life insurance loans |
20 |
2,256 |
— |
1,340 |
1,250,165 |
1,253,781 |
Purchased life insurance loans (1) |
— |
— |
— |
— |
499,731 |
499,731 |
Indirect consumer |
95 |
145 |
127 |
221 |
68,657 |
69,245 |
Consumer and other |
1,695 |
— |
160 |
493 |
92,379 |
94,727 |
Purchased non-covered consumer and other
(1) |
— |
— |
— |
20 |
2,618 |
2,638 |
Total loans, net of unearned
income, excluding covered loans |
$118,555 |
$12,393 |
$38,203 |
$102,056 |
$11,629,105 |
$11,900,312 |
Covered loans |
1,820 |
115,482 |
1,454 |
12,268 |
387,637 |
518,661 |
Total loans, net of unearned income |
$120,375 |
$127,875 |
$39,657 |
$114,324 |
$12,016,742 |
$12,418,973 |
|
|
|
|
|
|
|
(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: |
Nonaccrual |
90+ days and still
accruing |
60-89 days past
due |
30-59 days past
due |
Current |
Total Loans |
Commercial |
|
|
|
|
|
|
Commercial and industrial |
1.1% |
—% |
0.1% |
1.1% |
97.7% |
100.0% |
Franchise |
0.1 |
— |
— |
— |
99.9 |
100.0 |
Mortgage warehouse lines of
credit |
— |
— |
— |
— |
100.0 |
100.0 |
Community Advantage -
homeowners association |
— |
— |
— |
— |
100.0 |
100.0 |
Aircraft |
— |
— |
— |
— |
100.0 |
100.0 |
Asset-based lending |
0.1 |
— |
0.1 |
0.8 |
99.0 |
100.0 |
Municipal |
— |
— |
— |
— |
100.0 |
100.0 |
Leases |
— |
— |
— |
0.9 |
99.1 |
100.0 |
Other |
— |
— |
— |
— |
100.0 |
100.0 |
Purchased non-covered commercial(1) |
— |
9.3 |
— |
— |
90.7 |
100.0 |
Total commercial |
0.6 |
— |
0.1 |
0.8 |
98.5 |
100.0 |
Commercial real-estate |
|
|
|
|
|
|
Residential construction |
8.3 |
— |
2.6 |
— |
89.1 |
100.0 |
Commercial construction |
0.7 |
— |
5.9 |
— |
93.4 |
100.0 |
Land |
13.5 |
— |
— |
8.7 |
77.8 |
100.0 |
Office |
0.6 |
— |
1.5 |
0.8 |
97.1 |
100.0 |
Industrial |
1.2 |
— |
— |
0.2 |
98.6 |
100.0 |
Retail |
1.4 |
— |
1.2 |
1.0 |
96.4 |
100.0 |
Multi-family |
0.4 |
— |
0.2 |
0.8 |
98.6 |
100.0 |
Mixed use and other |
1.4 |
— |
0.1 |
1.0 |
97.5 |
100.0 |
Purchased non-covered commercial
real-estate (1) |
— |
3.4 |
0.5 |
6.1 |
90.0 |
100.0 |
Total commercial
real-estate |
1.6 |
0.1 |
0.7 |
1.1 |
96.5 |
100.0 |
Home equity |
2.0 |
— |
0.2 |
0.6 |
97.2 |
100.0 |
Residential real estate |
2.7 |
— |
0.2 |
2.4 |
94.7 |
100.0 |
Purchased non-covered residential real
estate(1) |
— |
— |
23.8 |
— |
76.2 |
100.0 |
Premium finance receivables |
|
|
|
|
|
|
Commercial insurance loans |
0.6 |
0.4 |
0.2 |
1.0 |
97.8 |
100.0 |
Life insurance loans |
— |
0.2 |
— |
0.1 |
99.7 |
100.0 |
Purchased life insurance loans (1) |
— |
— |
— |
— |
100.0 |
100.0 |
Indirect consumer |
0.1 |
0.2 |
0.2 |
0.3 |
99.2 |
100.0 |
Consumer and other |
1.8 |
— |
0.2 |
0.5 |
97.5 |
100.0 |
Purchased non-covered consumer and
other(1) |
— |
— |
— |
0.8 |
99.2 |
100.0 |
Total loans, net of unearned
income, excluding covered loans |
1.0% |
0.1% |
0.3% |
0.9% |
97.7% |
100.0% |
Covered loans |
0.4 |
22.3 |
0.3 |
2.4 |
74.6 |
100.0 |
Total loans, net of unearned
income |
1.0% |
1.0% |
0.3% |
0.9% |
96.8% |
100.0% |
As of March 31, 2013, $38.2 million of all loans, excluding
covered loans, or 0.3%, were 60 to 89 days past due and $102.1
million, or 0.9%, were 30 to 59 days (or one payment) past due. As
of December 31, 2012, $42.9 million of all loans, excluding
covered loans, or 0.4%, were 60 to 89 days past due and $97.5
million, or 0.8%, were 30 to 59 days (or one payment) past due. The
majority of the commercial and commercial real estate loans shown
as 60 to 89 days and 30 to 59 days past due are included on the
Company's internal problem loan reporting system. Loans on this
system are closely monitored by management on a monthly basis.
The Company's home equity and residential loan portfolios
continue to exhibit low delinquency ratios. Home equity loans at
March 31, 2013 that are current with regard to the contractual
terms of the loan agreement represent 97.2% of the total home
equity portfolio. Residential real estate loans at March 31,
2013 that are current with regards to the contractual terms of the
loan agreements comprise 94.7% of total residential real estate
loans outstanding, which includes purchased non-covered residential
real-estate.
The table below shows the aging of the Company's loan portfolio,
excluding covered loans, at December 31, 2012.
As of December 31, 2012 |
|
|
|
|
|
|
(Dollars in thousands) |
Nonaccrual |
90+ days and still
accruing |
60-89 days past
due |
30-59 days past
due |
Current |
Total Loans |
Loan Balances: |
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
Commercial and industrial |
$19,409 |
$— |
$5,520 |
$15,410 |
$1,587,864 |
$1,628,203 |
Franchise |
1,792 |
— |
— |
— |
194,603 |
196,395 |
Mortgage warehouse lines of
credit |
— |
— |
— |
— |
215,076 |
215,076 |
Community Advantage -
homeowners association |
— |
— |
— |
— |
81,496 |
81,496 |
Aircraft |
— |
— |
148 |
— |
17,216 |
17,364 |
Asset-based lending |
536 |
— |
1,126 |
6,622 |
564,154 |
572,438 |
Municipal |
— |
— |
— |
— |
91,824 |
91,824 |
Leases |
— |
— |
— |
896 |
89,547 |
90,443 |
Other |
— |
— |
— |
— |
16,549 |
16,549 |
Purchased
non-covered commercial(1) |
— |
496 |
432 |
7 |
4,075 |
5,010 |
Total commercial |
21,737 |
496 |
7,226 |
22,935 |
2,862,404 |
2,914,798 |
Commercial real-estate |
|
|
|
|
|
|
Residential construction |
3,110 |
— |
4 |
41 |
37,246 |
40,401 |
Commercial construction |
2,159 |
— |
885 |
386 |
167,525 |
170,955 |
Land |
11,299 |
— |
632 |
9,014 |
113,252 |
134,197 |
Office |
4,196 |
— |
1,889 |
3,280 |
560,346 |
569,711 |
Industrial |
2,089 |
— |
6,042 |
4,512 |
565,294 |
577,937 |
Retail |
7,792 |
— |
1,372 |
998 |
558,734 |
568,896 |
Multi-family |
2,586 |
— |
3,949 |
1,040 |
389,116 |
396,691 |
Mixed use and other |
16,742 |
— |
6,660 |
13,349 |
1,312,503 |
1,349,254 |
Purchased
non-covered commercial real-estate (1) |
— |
749 |
2,663 |
2,508 |
50,156 |
56,076 |
Total commercial
real-estate |
49,973 |
749 |
24,096 |
35,128 |
3,754,172 |
3,864,118 |
Home equity |
13,423 |
100 |
1,592 |
5,043 |
768,316 |
788,474 |
Residential real estate |
11,728 |
— |
2,763 |
8,250 |
343,616 |
366,357 |
Purchased non-covered
residential real estate (1) |
— |
— |
200 |
— |
656 |
856 |
Premium finance receivables |
|
|
|
|
|
|
Commercial insurance loans |
9,302 |
10,008 |
6,729 |
19,597 |
1,942,220 |
1,987,856 |
Life insurance loans |
25 |
— |
— |
5,531 |
1,205,151 |
1,210,707 |
Purchased life insurance loans
(1) |
— |
— |
— |
— |
514,459 |
514,459 |
Indirect consumer |
55 |
189 |
51 |
442 |
76,596 |
77,333 |
Consumer and other |
1,511 |
32 |
167 |
433 |
99,010 |
101,153 |
Purchased non-covered
consumer and other (1) |
— |
66 |
32 |
101 |
2,633 |
2,832 |
Total loans, net of unearned
income, excluding covered loans |
$107,754 |
$11,640 |
$42,856 |
$97,460 |
$11,569,233 |
$11,828,943 |
Covered loans |
1,988 |
122,350 |
16,108 |
7,999 |
411,642 |
560,087 |
Total loans, net of unearned income |
$109,742 |
$133,990 |
$58,964 |
$105,459 |
$11,980,875 |
$12,389,030 |
|
|
|
|
|
|
|
(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: |
Nonaccrual |
90+ days and still
accruing |
60-89 days past
due |
30-59 days past
due |
Current |
Total Loans |
Commercial |
|
|
|
|
|
|
Commercial and industrial |
1.2% |
—% |
0.3% |
1.0% |
97.5% |
100.0% |
Franchise |
0.9 |
— |
— |
— |
99.1 |
100.0 |
Mortgage warehouse lines of
credit |
— |
— |
— |
— |
100.0 |
100.0 |
Community Advantage -
homeowners association |
— |
— |
— |
— |
100.0 |
100.0 |
Aircraft |
— |
— |
0.9 |
— |
99.1 |
100.0 |
Asset-based lending |
0.1 |
— |
0.2 |
1.2 |
98.5 |
100.0 |
Municipal |
— |
— |
— |
— |
100.0 |
100.0 |
Leases |
— |
— |
— |
1.0 |
99.0 |
100.0 |
Other |
— |
— |
— |
— |
100.0 |
100.0 |
Purchased non-covered
commercial(1) |
— |
9.9 |
8.6 |
0.1 |
81.4 |
100.0 |
Total commercial |
0.8 |
— |
0.3 |
0.8 |
98.1 |
100.0 |
Commercial real-estate |
|
|
|
|
|
|
Residential construction |
7.7 |
— |
— |
0.1 |
92.2 |
100.0 |
Commercial construction |
1.3 |
— |
0.5 |
0.2 |
98.0 |
100.0 |
Land |
8.4 |
— |
0.5 |
6.7 |
84.4 |
100.0 |
Office |
0.7 |
— |
0.3 |
0.6 |
98.4 |
100.0 |
Industrial |
0.4 |
— |
1.1 |
0.8 |
97.7 |
100.0 |
Retail |
1.4 |
— |
0.2 |
0.2 |
98.2 |
100.0 |
Multi-family |
0.7 |
— |
1.0 |
0.3 |
98.0 |
100.0 |
Mixed use and other |
1.2 |
— |
0.5 |
1.0 |
97.3 |
100.0 |
Purchased non-covered
commercial real-estate (1) |
— |
1.3 |
4.8 |
4.5 |
89.4 |
100.0 |
Total commercial
real-estate |
1.3 |
— |
0.6 |
0.9 |
97.2 |
100.0 |
Home equity |
1.7 |
— |
0.2 |
0.6 |
97.5 |
100.0 |
Residential real estate |
3.2 |
— |
0.8 |
2.3 |
93.7 |
100.0 |
Purchased non-covered residential real estate
(1) |
— |
— |
23.4 |
— |
76.6 |
100.0 |
Premium finance receivables |
|
|
|
|
|
|
Commercial insurance loans |
0.5 |
0.5 |
0.3 |
1.0 |
97.7 |
100.0 |
Life insurance loans |
— |
— |
— |
0.5 |
99.5 |
100.0 |
Purchased life insurance
loans (1) |
— |
— |
— |
— |
100.0 |
100.0 |
Indirect consumer |
0.1 |
0.2 |
0.1 |
0.6 |
99.0 |
100.0 |
Consumer and other |
1.5 |
— |
0.2 |
0.4 |
97.9 |
100.0 |
Purchased non-covered consumer and other
(1) |
— |
2.3 |
1.1 |
3.6 |
93.0 |
100.0 |
Total loans, net of unearned
income, excluding covered loans |
0.9% |
0.1% |
0.4% |
0.8% |
97.8% |
100.0% |
Covered loans |
0.4 |
21.8 |
2.9 |
1.4 |
73.5 |
100.0 |
Total loans, net of unearned income |
0.9% |
1.1% |
0.5% |
0.9% |
96.6% |
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.
|
March 31, |
December 31, |
March 31, |
(Dollars in thousands) |
2013 |
2012 |
2012 |
Loans past due greater than 90 days
and still accruing: |
|
|
|
Commercial |
$— |
$— |
$— |
Commercial real-estate |
— |
— |
73 |
Home equity |
— |
100 |
— |
Residential real-estate |
— |
— |
— |
Premium finance receivables -
commercial |
7,677 |
10,008 |
4,619 |
Premium finance receivables -
life insurance |
2,256 |
— |
— |
Indirect consumer |
145 |
189 |
257 |
Consumer and other |
— |
32 |
— |
Total loans past due greater
than 90 days and still accruing |
10,078 |
10,329 |
4,949 |
Non-accrual loans: |
|
|
|
Commercial |
18,373 |
21,737 |
19,835 |
Commercial real-estate |
61,807 |
49,973 |
62,704 |
Home equity |
14,891 |
13,423 |
12,881 |
Residential real-estate |
9,606 |
11,728 |
5,329 |
Premium finance receivables -
commercial |
12,068 |
9,302 |
7,650 |
Premium finance receivables -
life insurance |
20 |
25 |
— |
Indirect consumer |
95 |
55 |
152 |
Consumer and other |
1,695 |
1,511 |
121 |
Total non-accrual loans |
118,555 |
107,754 |
108,672 |
Total non-performing
loans: |
|
|
|
Commercial |
18,373 |
21,737 |
19,835 |
Commercial real-estate |
61,807 |
49,973 |
62,777 |
Home equity |
14,891 |
13,523 |
12,881 |
Residential real-estate |
9,606 |
11,728 |
5,329 |
Premium finance receivables -
commercial |
19,745 |
19,310 |
12,269 |
Premium finance receivables -
life insurance |
2,276 |
25 |
— |
Indirect consumer |
240 |
244 |
409 |
Consumer and other |
1,695 |
1,543 |
121 |
Total non-performing loans |
$128,633 |
$118,083 |
$113,621 |
Other real estate owned |
50,593 |
56,174 |
69,575 |
Other real estate owned -
obtained in acquisition |
5,584 |
6,717 |
6,661 |
Other repossessed assets |
4,315 |
— |
— |
Total non-performing
assets |
$189,125 |
$180,974 |
$189,857 |
Total non-performing
loans by category as a percent of its own respective
category's period-end balance: |
|
|
|
Commercial |
0.64% |
0.75% |
0.78% |
Commercial real-estate |
1.55 |
1.29 |
1.75 |
Home equity |
1.96 |
1.72 |
1.53 |
Residential real-estate |
2.66 |
3.19 |
1.47 |
Premium finance receivables -
commercial |
0.99 |
0.97 |
0.81 |
Premium finance receivables -
life insurance |
0.13 |
— |
— |
Indirect consumer |
0.35 |
0.32 |
0.61 |
Consumer and other |
1.74 |
1.48 |
0.11 |
Total loans, net of unearned
income |
1.08% |
1.00% |
1.06% |
Total non-performing
assets as a percentage of total assets |
1.11% |
1.03% |
1.17% |
Allowance for loan
losses as a percentage of total non-performing
loans |
85.79% |
90.91% |
97.71% |
Non-performing Commercial and Commercial Real Estate
Commercial non-performing loans totaled $18.4 million as of
March 31, 2013 compared to $21.7 million as of
December 31, 2012 and $19.8 million as of March 31, 2012.
Commercial real estate non-performing loans totaled $61.8 million
as of March 31, 2013 compared to $50.0 million as of
December 31, 2012 and $62.8 million as of March 31,
2012.
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 $24.5 million as of March 31, 2013. The balance
decreased $754,000 from December 31, 2012 and increased $6.3
million from March 31, 2012. The March 31, 2013
non-performing balance is comprised of $9.6 million of residential
real estate (50 individual credits) and $14.9 million of home
equity loans (53 individual credits). On average, this is
approximately 7 non-performing residential real estate loans and
home equity loans per chartered bank within the Company. The
Company believes control and collection of these loans is very
manageable. At this time, management believes reserves are adequate
to absorb inherent losses that may occur upon the ultimate
resolution of these credits.
Non-performing Commercial Insurance Premium Finance
Receivables
The table below presents the level of non-performing property
and casualty premium finance receivables as of March 31, 2013
and 2012, and the amount of net charge-offs for the quarters then
ended.
|
|
March 31, |
March 31, |
(Dollars in thousands) |
2013 |
2012 |
Non-performing premium finance
receivables -- commercial |
$19,745 |
$12,269 |
- as a percent of premium
finance receivables - commercial outstanding |
0.99% |
0.81% |
Net charge-offs of premium
finance receivables - commercial |
$783 |
$560 |
- annualized as a percent of
average premium finance receivables - commercial |
0.16% |
0.15% |
Fluctuations in this category may occur due to timing and nature
of account collections from insurance carriers. The Company's
underwriting standards, regardless of the condition of the economy,
have remained consistent. We anticipate that net charge-offs and
non-performing asset levels in the near term will continue to be at
levels that are within acceptable operating ranges for this
category of loans. Management is comfortable with administering the
collections at this level of non-performing property and casualty
premium finance receivables and believes reserves are adequate to
absorb inherent losses that may occur upon the ultimate resolution
of these credits.
Due to the nature of collateral for commercial premium finance
receivables, it customarily takes 60-150 days to convert the
collateral into cash. Accordingly, the level of non-performing
commercial premium finance receivables is not necessarily
indicative of the loss inherent in the portfolio. In the event of
default, Wintrust has the power to cancel the insurance policy and
collect the unearned portion of the premium from the insurance
carrier. In the event of cancellation, the cash returned in payment
of the unearned premium by the insurer should generally be
sufficient to cover the receivable balance, the interest and other
charges due. Due to notification requirements and processing time
by most insurance carriers, many receivables will become delinquent
beyond 90 days while the insurer is processing the return of the
unearned premium. Management continues to accrue interest until
maturity as the unearned premium is ordinarily sufficient to
pay-off the outstanding balance and contractual interest
due.
Nonperforming Loans Rollforward
The table below presents a summary of the changes in the balance
of non-performing loans, excluding covered loans, for the three
month periods ending March 31, 2013 and 2012:
|
Three Months
Ended |
|
March 31, |
March 31, |
(Dollars in thousands) |
2013 |
2012 |
Balance at beginning of period |
$
118,083 |
$ 120,084 |
Additions, net |
28,030 |
17,867 |
Return to performing
status |
— |
(922) |
Payments received |
(4,121) |
(4,640) |
Transfer to OREO and other
repossessed assets |
(6,890) |
(6,601) |
Charge-offs |
(9,148) |
(11,307) |
Net change for niche loans
(1) |
2,679 |
(860) |
Balance at end of
period |
$
128,633 |
$ 113,621 |
|
|
|
(1) This
includes activity for premium finance receivables and indirect
consumer loans. |
Restructured Loans
The table below presents a summary of restructured loans for the
respective period, presented by loan category and accrual
status:
|
March 31, |
December 31, |
March 31, |
(Dollars in thousands) |
2013 |
2012 |
2012 |
Accruing: |
|
|
|
Commercial |
$ 9,073 |
$ 11,871 |
$ 9,324 |
Commercial real estate |
83,396 |
89,906 |
134,516 |
Residential real estate and
other |
4,653 |
4,342 |
7,176 |
Total accrual |
$
97,122 |
$ 106,119 |
$ 151,016 |
Non-accrual: (1) |
|
|
|
Commercial |
$ 2,764 |
$ 6,124 |
$ 1,465 |
Commercial real estate |
14,907 |
12,509 |
11,805 |
Residential real estate and
other |
1,552 |
1,721 |
760 |
Total non-accrual |
$
19,223 |
$ 20,354 |
$ 14,030 |
Total restructured
loans: |
|
|
|
Commercial |
$ 11,837 |
$ 17,995 |
$ 10,789 |
Commercial real estate |
98,303 |
102,415 |
146,321 |
Residential real estate and
other |
6,205 |
6,063 |
7,936 |
Total restructured loans |
$
116,345 |
$ 126,473 |
$ 165,046 |
Weighted-average contractual interest
rate of restructured loans |
4.14% |
4.11% |
4.12% |
|
|
|
|
(1) Included
in total non-performing loans. |
At March 31, 2013, the Company had $116.3 million in loans
with modified terms representing 167 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
balance decreased from $126.5 million representing 165 credits at
December 31, 2012 and $165.0 million representing 182 credits at
March 31, 2012.
The table below presents a summary of restructured loans as of
March 31, 2013 and March 31, 2012, and shows the changes
in the balance during the periods presented:
Three Months Ended
March 31, 2013 |
|
|
|
|
|
|
|
|
Residential |
|
|
|
Commercial |
Real Estate |
|
(Dollars in thousands) |
Commercial |
Real Estate |
and Other |
Total |
Balance at beginning of period |
$ 17,995 |
$ 102,415 |
$ 6,063 |
$ 126,473 |
Additions during the period |
708 |
1,192 |
377 |
2,277 |
Reductions: |
|
|
|
|
Charge-offs |
(2,142) |
(1,372) |
(17) |
(3,531) |
Transferred to OREO and other
repossessed assets |
(3,800) |
(167) |
(103) |
(4,070) |
Removal of restructured loan
status (1) |
(609) |
— |
— |
(609) |
Payments received |
(315) |
(3,765) |
(115) |
(4,195) |
Balance at period end |
$ 11,837 |
$ 98,303 |
$ 6,205 |
$ 116,345 |
|
|
|
|
|
Three Months Ended
March 31, 2012 |
|
|
|
|
Residential |
|
|
|
Commercial |
Real Estate |
|
(Dollars in thousands) |
Commercial |
Real Estate |
and Other |
Total |
Balance at beginning of period |
$ 10,834 |
$ 112,796 |
$ 6,888 |
$ 130,518 |
Additions during the period |
118 |
38,519 |
1,060 |
39,697 |
Reductions: |
|
|
|
|
Charge-offs |
— |
(1,342) |
— |
(1,342) |
Transferred to OREO and other
repossessed assets |
— |
(2,129) |
— |
(2,129) |
Removal of restructured loan
status (1) |
— |
(463) |
— |
(463) |
Payments received |
(163) |
(1,060) |
(12) |
(1,235) |
Balance at period end |
$ 10,789 |
$ 146,321 |
$ 7,936 |
$ 165,046 |
|
|
|
|
|
(1) Loan was
previously classified as a troubled debt restructuring and
subsequently performed in compliance with the loan's modified terms
for a period of six months (including over a calendar year-end) at
a modified interest rate which represented a market rate at the
time of restructuring. Per our TDR policy, the TDR classification
is removed. |
The Company's approach to restructuring loans is built on its
credit risk rating system which requires credit management
personnel to assign a credit risk rating to each loan. In each
case, the loan officer is responsible for recommending a credit
risk rating for each loan and ensuring the credit risk ratings are
appropriate. These credit risk ratings are then reviewed and
approved by the bank's chief credit officer or the director's loan
committee. Credit risk ratings are determined by evaluating a
number of factors including a borrower's financial strength, cash
flow coverage, collateral protection and guarantees. The Company's
credit risk rating scale is one through ten with higher scores
indicating higher risk. In the case of loans rated six or worse
following modification, the Company's Managed Assets Division
evaluates the loan and the credit risk rating and determines that
the loan has been restructured to be reasonably assured of
repayment and of performance according to the modified terms and is
supported by a current, well-documented credit assessment of the
borrower's financial condition and prospects for repayment under
the revised terms.
A modification of a loan with an existing credit risk rating of
six or worse or a modification of any other credit, which will
result in a restructured credit risk rating of six or worse must be
reviewed for troubled debt restructuring ("TDR") classification. In
that event, our Managed Assets Division conducts an overall credit
and collateral review. A modification of a loan is considered to be
a TDR if both (1) the borrower is experiencing financial
difficulty and (2) for economic or legal reasons, the bank
grants a concession to a borrower that it would not otherwise
consider. The modification of a loan where the credit risk rating
is five or better both before and after such modification are not
reviewed for TDR status. Based on the Company's credit risk rating
system, it considers that borrowers whose credit risk rating is
five or better are not experiencing financial difficulties and
therefore, are not considered TDRs.
TDRs are reviewed at the time of modification and on a quarterly
basis to determine if a specific reserve is needed. The carrying
amount of the loan is compared to the expected payments to be
received, discounted at the loan's original rate, or for collateral
dependent loans, to the fair value of the collateral. Any shortfall
is recorded as a specific reserve.
All credits determined to be a TDR will continue to be
classified as a TDR in all subsequent periods, unless the borrower
has been in compliance with the loan's modified terms for a period
of six months (including over a calendar year-end) and the modified
interest rate represented a market rate at the time of a
restructuring. The Managed Assets Division, in consultation with
the respective loan officer, determines whether the modified
interest rate represented a current market rate at the time of
restructuring. Using knowledge of current market conditions and
rates, competitive pricing on recent loan originations, and an
assessment of various characteristics of the modified loan
(including collateral position and payment history), an appropriate
market rate for a new borrower with similar risk is determined. If
the modified interest rate meets or exceeds this market rate for a
new borrower with similar risk, the modified interest rate
represents a market rate at the time of restructuring.
Additionally, before removing a loan from TDR classification, a
review of the current or previously measured impairment on the loan
and any concerns related to future performance by the borrower is
conducted. If concerns exist about the future ability of the
borrower to meet its obligations under the loans based on a credit
review by the Managed Assets Division, the TDR classification is
not removed from the loan.
Each restructured loan was reviewed for impairment at
March 31, 2013 and approximately $2.6 million of impairment
was present and appropriately reserved for through the Company's
normal reserving methodology in the Company's allowance for loan
losses.
Other Real Estate Owned
The table below presents a summary of other real estate owned,
excluding covered other real estate owned, as of March 31,
2013 and shows the activity for the respective period and the
balance for each property type:
|
Three Months Ended |
|
March 31, |
December 31, |
March 31, |
(Dollars in thousands) |
2013 |
2012 |
2012 |
Balance at beginning of period |
$ 62,891 |
$ 67,377 |
$ 86,523 |
Disposals/resolved |
(7,498) |
(12,516) |
(11,681) |
Transfers in at fair value,
less costs to sell |
2,128 |
8,030 |
6,876 |
Additions from acquisition |
— |
2,923 |
— |
Fair value adjustments |
(1,344) |
(2,923) |
(5,482) |
Balance at end of period |
$
56,177 |
$ 62,891 |
$ 76,236 |
|
|
|
|
|
Period End |
|
March 31, |
December 31, |
March 31, |
Balance by Property Type |
2013 |
2012 |
2012 |
Residential real estate |
$ 7,312 |
$ 9,077 |
$ 6,647 |
Residential real estate development |
10,133 |
12,144 |
14,764 |
Commercial real estate |
38,732 |
41,670 |
54,825 |
Total |
$
56,177 |
$ 62,891 |
$ 76,236 |
Other Repossessed Assets
At March 31, 2013, the Company had $4.3 million of other
repossessed assets. This balance consists primarily of an
airplane, which was repossessed during the first quarter of 2013 at
a fair value of $3.8 million. Repossessed assets also includes
miscellaneous other assets.
Covered Assets
In conjunction with FDIC-assisted transactions, the Company
entered into loss share agreements with the FDIC. These agreements
cover realized losses on loans, foreclosed real estate and certain
other assets. These loss share assets are measured separately from
the loan portfolios because they are not contractually embedded in
the loans and are not transferable with the loans should the
Company choose to dispose of them. Fair values at the acquisition
dates were estimated based on projected cash flows available for
loss-share based on the credit adjustments estimated for each loan
pool and the loss share percentages. The loss share assets are also
separately measured from the related loans and foreclosed real
estate and recorded separately on the Consolidated Statements of
Condition. Subsequent to the acquisition date, reimbursements
received from the FDIC for actual incurred losses will reduce the
loss share assets. Additional expected losses, to the extent such
expected losses result in the recognition of an allowance for loan
losses, will increase the loss share assets. The loss share
agreements with the FDIC require the Company to reimburse the FDIC
in the event that actual losses on covered assets are lower than
the original loss estimates agreed upon with the FDIC with respect
of such assets in the loss share agreements. The allowance for loan
losses for loans acquired in FDIC-assisted transactions is
determined without giving consideration to the amounts recoverable
through loss share agreements (since the loss share agreements are
separately accounted for and thus presented "gross" on the balance
sheet). On the Consolidated Statements of Income, the provision for
credit losses is reported net of changes in the amount recoverable
under the loss share agreements. Reductions to expected losses, to
the extent such reductions to expected losses are the result of an
improvement to the actual or expected cash flows from the covered
assets, will reduce the loss share assets. The increases in cash
flows for the purchased loans are recognized as interest income
prospectively.
The following table provides a comparative analysis for the
period end balances of the covered asset components and any changes
in the allowance for covered loan losses.
|
March 31, |
December 31, |
March 31, |
(Dollars in thousands) |
2013 |
2012 |
2012 |
Period End Balances: |
|
|
|
Loans |
$
518,661 |
$ 560,087 |
$ 691,220 |
Other real estate owned |
72,240 |
82,908 |
40,851 |
Other assets |
681 |
1,097 |
— |
FDIC Indemnification asset |
170,696 |
208,160 |
263,212 |
Total covered assets |
$
762,278 |
$ 852,252 |
$ 995,283 |
Allowance for Covered Loan Losses
Rollforward: |
|
|
|
Balance at beginning of
quarter: |
$ 13,454 |
$ 21,926 |
$ 12,977 |
Provision for covered loan
losses before benefit attributable to FDIC loss share
agreements |
1,600 |
(5,634) |
11,229 |
Benefit attributable to FDIC
loss share agreements |
(1,280) |
4,508 |
(8,983) |
Net provision for covered loan
losses |
320 |
(1,126) |
2,246 |
Increase (decrease) in FDIC
indemnification asset |
1,280 |
(4,508) |
8,983 |
Loans charged-off |
(2,791) |
(2,869) |
(6,523) |
Recoveries of loans
charged-off |
9 |
31 |
52 |
Net charge-offs |
(2,782) |
(2,838) |
(6,471) |
Balance at end of quarter |
$
12,272 |
$ 13,454 |
$ 17,735 |
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 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 March 31, 2013 |
Three Months Ended March
31, 2012 |
|
|
Life Insurance |
|
Life Insurance |
|
Bank |
Premium |
Bank |
Premium |
(Dollars in thousands) |
Acquisitions |
Finance Loans |
Acquisitions |
Finance Loans |
Accretable yield, beginning balance |
$
143,224 |
$ 13,055 |
$ 173,120 |
$ 18,861 |
Acquisitions |
(78) |
— |
2,288 |
— |
Accretable yield amortized to interest
income |
(9,577) |
(2,019) |
(14,892) |
(3,737) |
Accretable yield amortized to indemnification
asset(1) |
(8,706) |
— |
(21,377) |
— |
Reclassification from non-accretable
difference(2) |
5,412 |
— |
41,601 |
— |
(Decreases) increases in interest cash flows
due to payments and changes in interest rates |
(8,550) |
182 |
1,482 |
724 |
Accretable yield, ending balance (3) |
$
121,725 |
$
11,218 |
$ 182,222 |
$ 15,848 |
|
|
|
|
|
(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
March 31, 2013, the Company estimates that the remaining
accretable yield balance to be amortized to the indemnification
asset for the bank acquisitions is $42.9 million. The remainder of
the accretable yield related to bank acquisitions is expected to be
amortized to interest income. |
|
|
|
|
Items Impacting Comparative Financial Results:
Acquisitions
Acquisitions - completed in the past twelve
months
On December 12, 2012, the Company completed its acquisition of
HPK Financial Corporation ("HPK"). HPK was the parent company
of Hyde Park Bank & Trust Company, an Illinois state bank,
("Hyde Park Bank"), which operated two banking locations in the
Hyde Park neighborhood of Chicago, Illinois. As part of the
transaction, Hyde Park Bank merged into the Company's wholly-owned
subsidiary bank, Beverly Bank & Trust Company, N.A. ("Beverly
Bank"), and the two acquired banking locations are operating as
branches of Beverly Bank under the brand name Hyde Park
Bank. HPK had approximately $358 million in assets and $243
million in deposits as of the acquisition date, prior to purchase
accounting adjustments. The Company recorded goodwill of $12.6
million on the acquisition.
On September 28, 2012, the Company's wholly-owned subsidiary
bank Old Plank Trail Community Bank, N.A. ("Old Plank Trail Bank"),
acquired certain assets and liabilities and the banking operations
of First United Bank of Crete, Illinois ("First United Bank") in an
FDIC-assisted transaction. First United Bank operated four
locations in Illinois; one in Crete, two in Frankfort and one in
Steger, as well as one location in St. John, Indiana which was
subsequently closed.
On July 20, 2012, the Company's wholly-owned subsidiary bank,
Hinsdale Bank and Trust Company ("Hinsdale Bank"), assumed the
deposits and banking operations of Second Federal Savings and Loan
Association of Chicago ("Second Federal") in an FDIC-assisted
transaction. Second Federal operated three locations in Illinois;
two in Chicago (Brighton Park and Little Village neighborhoods) and
one in Cicero. The Company subsequently divested the deposits
and banking operations of Second Federal. See "Divestiture of
Previous FDIC-Assisted Acquisition" on page 40 for more
information.
On June 8, 2012, the Company's wholly-owned subsidiary bank Lake
Forest Bank and Trust Company ("Lake Forest Bank"), completed its
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 Bank, completed its 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 bank,
The Chicago Trust Company, N.A. ("CTC"), completed its 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's wholly-owned subsidiary,
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.
Summary of FDIC-assisted transactions in the past twelve
months
- Old Plank Trail Bank assumed approximately $316 million of the
outstanding deposits and approximately $310 million of assets of
First United Bank on September 28, 2012, prior to purchase
accounting adjustments. A bargain purchase gain of $6.7
million was recognized on this transaction.
- Hinsdale Bank assumed approximately $169 million of the
outstanding deposits and approximately $10 million of assets of
Second Federal on July 20, 2012, prior to purchase accounting
adjustments. A bargain purchase gain of $43,000 was recognized
on this transaction.
- 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.
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.
Announced Acquisitions
On January 22, 2013, the Company entered into a definitive
agreement to acquire First Lansing Bancorp, Inc. ("FLB"). FLB
is the parent company of First National Bank of Illinois, which
operates seven banking locations in the south and southwest suburbs
of Chicago, Illinois and one location in northwest
Indiana. Through this transaction, subject to final
adjustments, the Company will acquire approximately $370 million in
assets and assume approximately $325 million in deposits. The
Company expects that this acquisition will be completed in the
second quarter of 2013.
Divestiture of Previous FDIC-Assisted
Acquisition
On February 1, 2013, Hinsdale Bank completed its divestiture of
the deposits and current banking operations of Second Federal,
which were acquired in an FDIC-assisted transaction on July 20,
2012, to Self-Help Federal Credit Union. Through this
transaction, the Company divested approximately $149 million of
related deposits.
WINTRUST SUBSIDIARIES AND LOCATIONS
Wintrust is a financial holding company whose common stock is
traded on the Nasdaq Global Select Market (Nasdaq:WTFC). Its 15
community bank subsidiaries are: Lake Forest Bank & Trust
Company, Hinsdale Bank & Trust Company, 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, Crete,
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,
Lindenhurst, McHenry, Mokena, Mount Prospect, Mundelein,
Naperville, North Chicago, Northfield, Norridge, Orland Park,
Palatine, Park Ridge, Prospect Heights, Ravinia, Riverside, Rogers
Park, Roselle, Skokie, Spring Grove, Steger, Vernon Hills,
Wauconda, Western Springs, Willowbrook, Winnetka and Wood Dale and
in Delafield, Elm Grove, Madison, Menomenee Falls and 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 LLC 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.
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 2012 Annual Report on
Form 10-K and in any of the Company's subsequent SEC filings. The
Company intends such forward-looking statements to be covered by
the safe harbor provisions for forward-looking statements contained
in the Private Securities Litigation Reform Act of 1995, and is
including this statement for purposes of invoking these safe harbor
provisions. Such forward-looking statements may be deemed to
include, among other things, statements relating to the Company's
future financial performance, the performance of its loan
portfolio, the expected amount of future credit reserves and
charge-offs, delinquency trends, growth plans, regulatory
developments, securities that the Company may offer from time to
time, and management's long-term performance goals, as well as
statements relating to the anticipated effects on financial
condition and results of operations from expected developments or
events, the Company's business and growth strategies, including
future acquisitions of banks, specialty finance or wealth
management businesses, internal growth and plans to form additional
de novo banks or branch offices. Actual results could differ
materially from those addressed in the forward-looking statements
as a result of numerous factors, including the following:
- negative economic conditions that adversely affect the economy,
housing prices, the job market and other factors that may affect
the Company's liquidity and the performance of its loan portfolios,
particularly in the markets in which it operates;
- the extent of defaults and losses on the Company's loan
portfolio, which may require further increases in its allowance for
credit losses;
- estimates of fair value of certain of the Company's assets and
liabilities, which could change in value significantly from period
to period;
- the financial success and economic viability of the borrowers
of our commercial loans;
- market conditions in the commercial real estate market in the
Chicago metropolitan area;
- 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 the Company's recent or future acquisitions;
- unexpected difficulties and losses related to FDIC-assisted
acquisitions, including those resulting from our loss- sharing
arrangements with the FDIC;
- any negative perception of the Company's reputation or
financial strength;
- ability to raise additional capital on acceptable terms when
needed;
- disruption in capital markets, which may lower fair values for
the Company's investment portfolio;
- ability 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;
- ability of the Company to attract and retain senior management
experienced in the banking and financial services industries;
- environmental liability risk associated with lending
activities;
- the impact of any claims or legal actions, including any effect
on our reputation;
- 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;
- 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;
- increases in the Company's FDIC insurance premiums, or the
collection of special assessments by the FDIC;
- delinquencies or fraud with respect to the Company's premium
finance business;
- credit downgrades among commercial and life insurance providers
that could negatively affect the value of collateral securing the
Company's premium finance loans;
- the Company's ability to comply with covenants under its credit
facility; and
- fluctuations in the stock market, which may have an adverse
impact on the Company's wealth management business and brokerage
operation.
Therefore, there can be no assurances that future actual results
will correspond to these forward-looking statements. The reader is
cautioned not to place undue reliance on any forward-looking
statement made by the Company. Any such statement speaks only as of
the date the statement was made or as of such date that may be
referenced within the statement. The Company undertakes no
obligation to update any forward-looking statement to reflect the
impact of circumstances after the date of the press release.
Persons are advised, however, to consult further disclosures
management makes on related subjects in its reports filed with the
Securities and Exchange Commission and in its press releases.
CONFERENCE CALL, WEB CAST AND REPLAY
The Company will hold a conference call at 9:00 a.m. (CT)
Thursday, April 18, 2013 regarding first quarter 2013 results.
Individuals interested in listening should call (877) 363-5049
and enter Conference ID #34690958. A simultaneous audio-only web
cast and replay of the conference call may be accessed via the
Company's web site at (http://www.wintrust.com), Investor
Relations, Investor News and Events, Presentations &
Conference Calls. The text of the first quarter 2013 earnings press
release will be available on the home page of the Company's website
at (http://www.wintrust.com) and at the Investor Relations,
Investor News and Events, Press Releases link on its website.
WINTRUST FINANCIAL
CORPORATION
Supplemental Financial
Information
5 Quarter Trends
|
WINTRUST FINANCIAL
CORPORATION - Supplemental Financial Information |
Selected Financial
Highlights - 5 Quarter Trends |
(Dollars in thousands,
except per share data) |
|
|
Three Months Ended |
|
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|
2013 |
2012 |
2012 |
2012 |
2012 |
Selected Financial Condition Data (at
end of period): |
|
|
|
|
|
Total assets |
$17,074,247 |
$17,519,613 |
$17,018,592 |
$16,576,282 |
$16,172,018 |
Total loans, excluding covered loans |
11,900,312 |
11,828,943 |
11,489,900 |
11,202,842 |
10,717,384 |
Total deposits |
13,962,757 |
14,428,544 |
13,847,965 |
13,057,581 |
12,665,853 |
Junior subordinated debentures |
249,493 |
249,493 |
249,493 |
249,493 |
249,493 |
Total shareholders' equity |
1,825,688 |
1,804,705 |
1,761,300 |
1,722,074 |
1,687,921 |
Selected Statements of Income
Data: |
|
|
|
|
|
Net interest income |
130,713 |
132,776 |
132,575 |
128,270 |
125,895 |
Net revenue (1) |
188,092 |
197,965 |
195,520 |
179,205 |
172,918 |
Pre-tax adjusted earnings (2) |
68,263 |
72,441 |
69,436 |
68,928 |
64,067 |
Net income |
32,052 |
30,089 |
32,302 |
25,595 |
23,210 |
Net income per common share – Basic |
$0.80 |
$0.75 |
$0.82 |
$0.63 |
$0.61 |
Net income per common share – Diluted |
$0.65 |
$0.61 |
$0.66 |
$0.52 |
$0.50 |
Selected Financial Ratios and Other
Data: |
|
|
|
|
|
Performance Ratios: |
|
|
|
|
|
Net interest margin (2) |
3.41% |
3.40% |
3.50% |
3.51% |
3.55% |
Non-interest income to average assets |
1.35% |
1.50% |
1.50% |
1.26% |
1.19% |
Non-interest expense to average assets |
2.82% |
2.99% |
2.97% |
2.89% |
2.99% |
Net overhead ratio (2) (3) |
1.47% |
1.48% |
1.47% |
1.63% |
1.80% |
Net overhead ratio - pre-tax adjusted
earnings (2) (3) |
1.47% |
1.39% |
1.50% |
1.46% |
1.57% |
Efficiency ratio - FTE (2) (4) |
63.78% |
66.13% |
63.67% |
65.63% |
68.24% |
Efficiency ratio - pre-tax adjusted earnings
(2) (4) |
63.46% |
62.62% |
63.31% |
61.35% |
62.17% |
Return on average assets |
0.75% |
0.69% |
0.77% |
0.63% |
0.59% |
Return on average common equity |
7.27% |
6.79% |
7.57% |
6.08% |
5.90% |
Return on average tangible common equity |
9.35% |
8.71% |
9.78% |
7.80% |
7.55% |
Average total assets |
$17,256,843 |
$17,248,650 |
$16,705,429 |
$16,319,207 |
$15,835,350 |
Average total shareholders' equity |
1,818,127 |
1,786,824 |
1,736,740 |
1,695,440 |
1,564,662 |
Average loans to average deposits ratio |
86.6% |
85.6% |
89.3% |
88.2% |
88.1% |
Average loans to average deposits ratio
(including covered loans) |
90.4 |
90.0 |
93.8 |
93.4 |
93.5 |
Common Share Data at end of
period: |
|
|
|
|
|
Market price per common share |
$37.04 |
$36.70 |
$37.57 |
$35.50 |
$35.79 |
Book value per common share (2) |
$38.13 |
$37.78 |
$37.25 |
$35.86 |
$35.25 |
Tangible common book value
per share (2) |
$29.74 |
$29.28 |
$28.93 |
$27.69 |
$27.57 |
Common shares outstanding |
37,013,707 |
36,861,956 |
36,411,382 |
36,340,843 |
36,289,380 |
Other Data at end of period:(8) |
|
|
|
|
|
Leverage Ratio(5) |
10.2% |
10.0% |
10.2% |
10.2% |
10.5% |
Tier 1 Capital to risk-weighted assets
(5) |
12.3% |
12.1% |
12.2% |
12.2% |
12.7% |
Total capital to risk-weighted assets
(5) |
13.4% |
13.1% |
13.3% |
13.4% |
13.9% |
Tangible common equity ratio (TCE) (2)
(7) |
7.7% |
7.4% |
7.4% |
7.4% |
7.5% |
Tangible common equity ratio, assuming full
conversion of preferred stock (2) (7) |
8.8% |
8.4% |
8.4% |
8.4% |
8.6% |
Allowance for credit losses
(6) |
$125,635 |
$121,988 |
$124,914 |
$124,823 |
$124,101 |
Non-performing loans |
128,633 |
118,083 |
117,891 |
120,920 |
113,621 |
Allowance for credit losses to total loans
(6) |
1.06% |
1.03% |
1.09% |
1.11% |
1.16% |
Non-performing loans to total loans |
1.08% |
1.00% |
1.03% |
1.08% |
1.06% |
Number of: |
|
|
|
|
|
Bank subsidiaries |
15 |
15 |
15 |
15 |
15 |
Non-bank subsidiaries |
8 |
8 |
8 |
8 |
7 |
Banking offices |
108 |
111 |
109 |
100 |
98 |
|
(1) Net revenue includes net
interest income and non-interest income |
(2) See "Supplemental
Financial Measures/Ratios" for additional information on this
performance measure/ratio. |
(3) The net overhead ratio
is calculated by netting total non-interest expense and total
non-interest income, annualizing this amount, and dividing by that
period's total average assets. A lower ratio indicates a higher
degree of efficiency. |
(4) The efficiency ratio is
calculated by dividing total non-interest expense by tax-equivalent
net revenue (less securities gains or losses). A lower ratio
indicates more efficient revenue generation. |
(5) Capital ratios for
current quarter-end are estimated. |
(6) The allowance for credit
losses includes both the allowance for loan losses and the
allowance for unfunded lending-related commitments, but excluding
the allowance for covered loan losses. |
(7) Total shareholders'
equity minus preferred stock and total intangible assets divided by
total assets minus total intangible assets |
(8) Asset quality ratios
exclude covered loans. |
|
|
WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
Consolidated Statements
of Condition - 5 Quarter Trends |
|
|
(Unaudited) |
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
(In thousands) |
2013 |
2012 |
2012 |
2012 |
2012 |
Assets |
|
|
|
|
|
Cash and due from banks |
$199,575 |
$284,731 |
$186,752 |
$176,529 |
$146,014 |
Federal funds sold and securities purchased
under resale agreements |
13,626 |
30,297 |
26,062 |
15,227 |
14,588 |
Interest-bearing deposits with other
banks |
685,302 |
1,035,743 |
934,430 |
1,117,888 |
900,755 |
Available-for-sale securities, at fair
value |
1,870,831 |
1,796,076 |
1,256,768 |
1,196,702 |
1,869,344 |
Trading account securities |
1,036 |
583 |
635 |
608 |
1,140 |
Federal Home Loan Bank and Federal Reserve
Bank stock, at cost |
76,601 |
79,564 |
80,687 |
92,792 |
88,216 |
Brokerage customer receivables |
25,614 |
24,864 |
30,633 |
31,448 |
31,085 |
Mortgage loans held-for-sale, at fair
value |
370,570 |
385,033 |
548,300 |
511,566 |
339,600 |
Mortgage loans held-for-sale, at lower of
cost or market |
10,352 |
27,167 |
21,685 |
14,538 |
10,728 |
Loans, net of unearned income, excluding
covered loans |
11,900,312 |
11,828,943 |
11,489,900 |
11,202,842 |
10,717,384 |
Covered loans |
518,661 |
560,087 |
657,525 |
614,062 |
691,220 |
Total loans |
12,418,973 |
12,389,030 |
12,147,425 |
11,816,904 |
11,408,604 |
Less: Allowance for loan losses |
110,348 |
107,351 |
112,287 |
111,920 |
111,023 |
Less: Allowance for covered loan
losses |
12,272 |
13,454 |
21,926 |
20,560 |
17,735 |
Net loans |
12,296,353 |
12,268,225 |
12,013,212 |
11,684,424 |
11,279,846 |
Premises and equipment, net |
504,803 |
501,205 |
461,905 |
449,608 |
434,700 |
FDIC indemnification asset |
170,696 |
208,160 |
238,305 |
222,568 |
263,212 |
Accrued interest receivable and other
assets |
485,746 |
511,617 |
557,884 |
710,275 |
463,394 |
Trade date securities receivable |
— |
— |
307,295 |
— |
— |
Goodwill |
343,632 |
345,401 |
331,634 |
330,896 |
307,295 |
Other intangible assets |
19,510 |
20,947 |
22,405 |
21,213 |
22,101 |
Total assets |
$17,074,247 |
$17,519,613 |
$17,018,592 |
$16,576,282 |
$16,172,018 |
Liabilities and Shareholders'
Equity |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Non-interest bearing |
$2,243,440 |
$2,396,264 |
$2,162,215 |
$2,047,715 |
$1,901,753 |
Interest bearing |
11,719,317 |
12,032,280 |
11,685,750 |
11,009,866 |
10,764,100 |
Total deposits |
13,962,757 |
14,428,544 |
13,847,965 |
13,057,581 |
12,665,853 |
Notes payable |
31,911 |
2,093 |
2,275 |
2,457 |
52,639 |
Federal Home Loan Bank advances |
414,032 |
414,122 |
414,211 |
564,301 |
466,391 |
Other borrowings |
256,244 |
274,411 |
377,229 |
375,523 |
411,037 |
Secured borrowings - owed to securitization
investors |
— |
— |
— |
360,825 |
428,000 |
Subordinated notes |
15,000 |
15,000 |
15,000 |
15,000 |
35,000 |
Junior subordinated debentures |
249,493 |
249,493 |
249,493 |
249,493 |
249,493 |
Trade date securities payable |
1,250 |
— |
412 |
19,025 |
— |
Accrued interest payable and other
liabilities |
317,872 |
331,245 |
350,707 |
210,003 |
175,684 |
Total liabilities |
15,248,559 |
15,714,908 |
15,257,292 |
14,854,208 |
14,484,097 |
Shareholders' Equity: |
|
|
|
|
|
Preferred stock |
176,441 |
176,406 |
176,371 |
176,337 |
176,302 |
Common stock |
37,272 |
37,108 |
36,647 |
36,573 |
36,522 |
Surplus |
1,040,098 |
1,036,295 |
1,018,417 |
1,013,428 |
1,008,326 |
Treasury stock |
(8,187) |
(7,838) |
(7,490) |
(7,374) |
(6,559) |
Retained earnings |
581,131 |
555,023 |
527,550 |
501,139 |
478,160 |
Accumulated other comprehensive (loss)
income |
(1,067) |
7,711 |
9,805 |
1,971 |
(4,830) |
Total shareholders' equity |
1,825,688 |
1,804,705 |
1,761,300 |
1,722,074 |
1,687,921 |
Total liabilities and
shareholders' equity |
$17,074,247 |
$17,519,613 |
$17,018,592 |
$16,576,282 |
$16,172,018 |
|
|
WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
Consolidated Statements
of Income (Unaudited) - 5 Quarter Trends |
|
|
Three Months Ended |
|
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
(In thousands, except per share data) |
2013 |
2012 |
2012 |
2012 |
2012 |
Interest income |
|
|
|
|
|
Interest and fees on loans |
$142,114 |
$146,946 |
$149,271 |
$144,100 |
$143,555 |
Interest bearing deposits with banks |
569 |
739 |
362 |
203 |
248 |
Federal funds sold and securities
purchased under resale agreements |
15 |
13 |
7 |
6 |
12 |
Securities |
8,752 |
8,086 |
7,691 |
10,510 |
11,847 |
Trading account securities |
5 |
6 |
3 |
10 |
9 |
Federal Home Loan Bank and Federal
Reserve Bank stock |
684 |
656 |
649 |
641 |
604 |
Brokerage customer receivables |
174 |
197 |
218 |
221 |
211 |
Total interest income |
152,313 |
156,643 |
158,201 |
155,691 |
156,486 |
Interest expense |
|
|
|
|
|
Interest on deposits |
14,504 |
16,208 |
16,794 |
17,273 |
18,030 |
Interest on Federal Home Loan Bank
advances |
2,764 |
2,835 |
2,817 |
2,867 |
3,584 |
Interest on notes payable and other
borrowings |
1,154 |
1,566 |
2,024 |
2,274 |
3,102 |
Interest on secured borrowings - owed to
securitization investors |
— |
— |
795 |
1,743 |
2,549 |
Interest on subordinated notes |
59 |
66 |
67 |
126 |
169 |
Interest on junior subordinated
debentures |
3,119 |
3,192 |
3,129 |
3,138 |
3,157 |
Total interest expense |
21,600 |
23,867 |
25,626 |
27,421 |
30,591 |
Net interest income |
130,713 |
132,776 |
132,575 |
128,270 |
125,895 |
Provision for credit losses |
15,687 |
19,546 |
18,799 |
20,691 |
17,400 |
Net interest income after provision for
credit losses |
115,026 |
113,230 |
113,776 |
107,579 |
108,495 |
Non-interest income |
|
|
|
|
|
Wealth management |
14,828 |
13,634 |
13,252 |
13,393 |
12,401 |
Mortgage banking |
30,145 |
34,702 |
31,127 |
25,607 |
18,534 |
Service charges on deposit accounts |
4,793 |
4,534 |
4,235 |
3,994 |
4,208 |
Gains on available-for-sale securities,
net |
251 |
2,561 |
409 |
1,109 |
816 |
Fees from covered call options |
1,639 |
2,156 |
2,083 |
3,114 |
3,123 |
Gain on bargain purchases, net |
— |
85 |
6,633 |
(55) |
840 |
Trading (losses) gains, net |
(435) |
(120) |
(998) |
(928) |
146 |
Other |
6,158 |
7,637 |
6,204 |
4,701 |
6,955 |
Total non-interest income |
57,379 |
65,189 |
62,945 |
50,935 |
47,023 |
Non-interest expense |
|
|
|
|
|
Salaries and employee benefits |
77,513 |
76,140 |
75,280 |
68,139 |
69,030 |
Equipment |
6,184 |
6,468 |
5,888 |
5,466 |
5,400 |
Occupancy, net |
8,853 |
8,480 |
8,024 |
7,728 |
8,062 |
Data processing |
4,599 |
4,178 |
4,103 |
3,840 |
3,618 |
Advertising and marketing |
2,040 |
2,725 |
2,528 |
2,179 |
2,006 |
Professional fees |
3,221 |
3,158 |
4,653 |
3,847 |
3,604 |
Amortization of other intangible
assets |
1,120 |
1,108 |
1,078 |
1,089 |
1,049 |
FDIC insurance |
3,444 |
3,039 |
3,549 |
3,477 |
3,357 |
OREO (income) expense, net |
(1,620) |
5,269 |
3,808 |
5,848 |
7,178 |
Other |
14,765 |
18,983 |
15,637 |
15,572 |
14,455 |
Total non-interest expense |
120,119 |
129,548 |
124,548 |
117,185 |
117,759 |
Income before taxes |
52,286 |
48,871 |
52,173 |
41,329 |
37,759 |
Income tax expense |
20,234 |
18,782 |
19,871 |
15,734 |
14,549 |
Net income |
$32,052 |
$30,089 |
$32,302 |
$25,595 |
$23,210 |
Preferred stock dividends and discount
accretion |
$2,616 |
$2,616 |
$2,616 |
$2,644 |
$1,246 |
Net income applicable to common
shares |
$29,436 |
$27,473 |
$29,686 |
$22,951 |
$21,964 |
Net income per common share -
Basic |
$0.80 |
$0.75 |
$0.82 |
$0.63 |
$0.61 |
Net income per common share -
Diluted |
$0.65 |
$0.61 |
$0.66 |
$0.52 |
$0.50 |
Cash dividends declared per common
share |
$0.09 |
$— |
$0.09 |
$— |
$0.09 |
Weighted average common shares
outstanding |
36,976 |
36,543 |
36,381 |
36,329 |
36,207 |
Dilutive potential common shares |
12,463 |
12,458 |
12,295 |
7,770 |
7,530 |
Average common shares and dilutive common
shares |
49,439 |
49,001 |
48,676 |
44,099 |
43,737 |
|
|
WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
Period End Loan Balances
- 5 Quarter Trends |
|
|
|
|
|
|
|
|
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|
2013 |
2012 |
2012 |
2012 |
2012 |
(Dollars in thousands) |
|
|
|
|
|
Balance: |
|
|
|
|
|
Commercial |
$ 2,872,695 |
$ 2,914,798 |
$ 2,771,053 |
$ 2,673,181 |
$ 2,544,456 |
Commercial real estate |
3,990,465 |
3,864,118 |
3,699,712 |
3,666,519 |
3,585,760 |
Home equity |
759,218 |
788,474 |
807,592 |
820,991 |
840,364 |
Residential real-estate |
360,652 |
367,213 |
376,678 |
375,494 |
361,327 |
Premium finance receivables -
commercial |
1,997,160 |
1,987,856 |
1,982,945 |
1,830,044 |
1,512,630 |
Premium finance receivables -
life insurance |
1,753,512 |
1,725,166 |
1,665,620 |
1,656,200 |
1,693,763 |
Indirect consumer (1) |
69,245 |
77,333 |
77,378 |
72,482 |
67,445 |
Consumer and other |
97,365 |
103,985 |
108,922 |
107,931 |
111,639 |
Total loans, net of unearned
income, excluding covered loans |
$ 11,900,312 |
$ 11,828,943 |
$ 11,489,900 |
$ 11,202,842 |
$ 10,717,384 |
Covered loans |
518,661 |
560,087 |
657,525 |
614,062 |
691,220 |
Total loans, net of unearned
income |
$ 12,418,973 |
$ 12,389,030 |
$ 12,147,425 |
$ 11,816,904 |
$ 11,408,604 |
Mix: |
|
|
|
|
|
Commercial |
23% |
24% |
23% |
23% |
22% |
Commercial real estate |
32 |
31 |
30 |
31 |
32 |
Home equity |
6 |
6 |
7 |
7 |
7 |
Residential real-estate |
3 |
3 |
3 |
3 |
3 |
Premium finance receivables -
commercial |
16 |
16 |
16 |
15 |
13 |
Premium finance receivables -
life insurance |
14 |
14 |
14 |
14 |
15 |
Indirect consumer (1) |
1 |
1 |
1 |
1 |
1 |
Consumer and other |
1 |
1 |
1 |
1 |
1 |
Total loans, net of unearned
income, excluding covered loans |
96% |
96% |
95% |
95% |
94% |
Covered loans |
4 |
4 |
5 |
5 |
6 |
Total loans, net of unearned
income |
100% |
100% |
100% |
100% |
100% |
|
(1) Includes autos, boats,
snowmobiles and other indirect consumer loans. |
|
|
WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
Period End Deposits
Balances - 5 Quarter Trends |
|
|
|
|
|
|
|
|
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|
2013 |
2012 |
2012 |
2012 |
2012 |
(Dollars in thousands) |
|
|
|
|
|
Balance: |
|
|
|
|
|
Non-interest bearing |
$ 2,243,440 |
$ 2,396,264 |
$ 2,162,215 |
$ 2,047,715 |
$ 1,901,753 |
NOW |
2,043,227 |
2,022,957 |
1,841,743 |
1,780,872 |
1,756,313 |
Wealth Management deposits (1) |
868,119 |
991,902 |
979,306 |
954,319 |
933,609 |
Money Market |
2,879,636 |
2,761,498 |
2,596,702 |
2,335,238 |
2,306,726 |
Savings |
1,258,682 |
1,275,012 |
1,156,466 |
958,295 |
943,066 |
Time certificates of
deposit |
4,669,653 |
4,980,911 |
5,111,533 |
4,981,142 |
4,824,386 |
Total deposits |
$ 13,962,757 |
$ 14,428,544 |
$ 13,847,965 |
$ 13,057,581 |
$ 12,665,853 |
Mix: |
|
|
|
|
|
Non-interest bearing |
16% |
17% |
16% |
16% |
15% |
NOW |
15 |
14 |
13 |
14 |
14 |
Wealth Management deposits (1) |
6 |
7 |
7 |
7 |
7 |
Money Market |
21 |
19 |
19 |
18 |
18 |
Savings |
9 |
9 |
8 |
7 |
8 |
Time certificates of
deposit |
33 |
34 |
37 |
38 |
38 |
Total deposits |
100% |
100% |
100% |
100% |
100% |
|
(1) Represents deposit
balances of the Company's subsidiary banks from brokerage customers
of Wayne Hummer Investments, trust and asset management customers
of The Chicago Trust Company and brokerage customers from
unaffiliated companies which have been placed into deposit accounts
of the Banks. |
|
|
WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
Net Interest Margin
(Including Call Option Income) - 5 Quarter Trends
|
|
|
Three Months Ended |
|
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
(Dollars in thousands) |
2013 |
2012 |
2012 |
2012 |
2012 |
Net interest income |
$ 131,207 |
$ 133,285 |
$ 133,076 |
$ 128,741 |
$ 126,361 |
Call option income |
1,639 |
2,156 |
2,083 |
3,114 |
3,123 |
Net interest income including call option
income |
$ 132,846 |
$ 135,441 |
$ 135,159 |
$ 131,855 |
$ 129,484 |
Yield on earning assets |
3.97% |
4.01% |
4.18% |
4.25% |
4.41% |
Rate on interest-bearing liabilities |
0.68 |
0.74 |
0.81 |
0.89 |
1.00 |
Rate spread |
3.29% |
3.27% |
3.37% |
3.36% |
3.41% |
Net free funds contribution |
0.12 |
0.13 |
0.13 |
0.15 |
0.14 |
Net interest margin |
3.41 |
3.40 |
3.50 |
3.51 |
3.55 |
Call option income |
0.04 |
0.05 |
0.05 |
0.08 |
0.09 |
Net interest margin including call option
income |
3.45% |
3.45% |
3.55% |
3.59% |
3.64% |
|
WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
Net Interest Margin
(Including Call Option Income - YTD Trends) |
|
|
Three Months Ended March 31, |
Years Ended December
31, |
(Dollars in thousands) |
2013 |
2012 |
2011 |
2010 |
2009 |
Net interest income |
$
131,207 |
$ 521,463 |
$ 463,071 |
$ 417,564 |
$ 314,096 |
Call option income |
1,639 |
10,476 |
13,570 |
2,235 |
1,998 |
Net interest income including call option
income |
$
132,846 |
$ 531,939 |
$ 476,641 |
$ 419,799 |
$ 316,094 |
Yield on earning assets |
3.97% |
4.21% |
4.49% |
4.80% |
5.07% |
Rate on interest-bearing liabilities |
0.68 |
0.86 |
1.23 |
1.61 |
2.29 |
Rate spread |
3.29% |
3.35% |
3.26% |
3.19% |
2.78% |
Net free funds contribution |
0.12 |
0.14 |
0.16 |
0.18 |
0.23 |
Net interest margin |
3.41 |
3.49 |
3.42 |
3.37 |
3.01 |
Call option income |
0.04 |
0.07 |
0.10 |
0.02 |
0.02 |
Net interest margin including call option
income |
3.45% |
3.56% |
3.52% |
3.39% |
3.03% |
|
WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
Quarterly Average
Balances - 5 Quarter Trends |
|
|
Three Months Ended |
|
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
(In thousands) |
2013 |
2012 |
2012 |
2012 |
2012 |
Liquidity management assets |
$
2,797,310 |
$ 2,949,034 |
$ 2,565,151 |
$ 2,781,730 |
$ 2,756,833 |
Other earning assets |
24,205 |
27,482 |
31,142 |
30,761 |
30,499 |
Loans, net of unearned income |
12,252,558 |
12,001,433 |
11,922,450 |
11,300,395 |
10,848,016 |
Covered loans |
536,284 |
626,449 |
597,518 |
659,783 |
667,242 |
Total earning assets |
$
15,610,357 |
$ 15,604,398 |
$ 15,116,261 |
$ 14,772,669 |
$ 14,302,590 |
Allowance for loan and covered loan
losses |
(125,221) |
(135,156) |
(138,740) |
(134,077) |
(131,769) |
Cash and due from banks |
217,345 |
206,914 |
185,435 |
152,118 |
143,869 |
Other assets |
1,554,362 |
1,572,494 |
1,542,473 |
1,528,497 |
1,520,660 |
Total assets |
$
17,256,843 |
$ 17,248,650 |
$ 16,705,429 |
$ 16,319,207 |
$ 15,835,350 |
Interest-bearing deposits |
$
11,857,400 |
$ 11,709,058 |
$ 11,261,184 |
$ 10,815,018 |
$ 10,481,822 |
Federal Home Loan Bank advances |
414,092 |
414,289 |
441,445 |
514,513 |
470,345 |
Notes payable and other borrowings |
297,151 |
397,807 |
426,716 |
422,146 |
505,814 |
Secured borrowings - owed to securitization
investors |
— |
— |
176,904 |
407,259 |
514,923 |
Subordinated notes |
15,000 |
15,000 |
15,000 |
23,791 |
35,000 |
Junior subordinated notes |
249,493 |
249,493 |
249,493 |
249,493 |
249,493 |
Total interest-bearing
liabilities |
$
12,833,136 |
$ 12,785,647 |
$ 12,570,742 |
$ 12,432,220 |
$ 12,257,397 |
Non-interest bearing deposits |
2,290,725 |
2,314,935 |
2,092,028 |
1,993,880 |
1,832,627 |
Other liabilities |
314,855 |
361,244 |
305,919 |
197,667 |
180,664 |
Equity |
1,818,127 |
1,786,824 |
1,736,740 |
1,695,440 |
1,564,662 |
Total liabilities and
shareholders' equity |
$
17,256,843 |
$ 17,248,650 |
$ 16,705,429 |
$ 16,319,207 |
$ 15,835,350 |
|
WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
Net Interest Margin - 5
Quarter Trends |
|
|
Three Months Ended |
|
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|
2013 |
2012 |
2012 |
2012 |
2012 |
Yield earned on: |
|
|
|
|
|
Liquidity management assets |
1.50% |
1.33% |
1.41% |
1.69% |
1.90% |
Other earning assets |
3.02 |
2.95 |
2.83 |
3.04 |
2.96 |
Loans, net of unearned income |
4.36 |
4.45 |
4.57 |
4.64 |
4.77 |
Covered loans |
7.96 |
8.10 |
8.25 |
8.50 |
8.98 |
Total earning assets |
3.97% |
4.01% |
4.18% |
4.25% |
4.41% |
Rate paid on: |
|
|
|
|
|
Interest-bearing deposits |
0.50% |
0.55% |
0.59% |
0.64% |
0.69% |
Federal Home Loan Bank advances |
2.71 |
2.72 |
2.54 |
2.24 |
3.06 |
Notes payable and other borrowings |
1.57 |
1.57 |
1.89 |
2.17 |
2.47 |
Secured borrowings - owed to securitization
investors |
— |
— |
1.79 |
1.72 |
1.99 |
Subordinated notes |
1.56 |
1.72 |
1.75 |
2.10 |
1.91 |
Junior subordinated notes |
5.00 |
5.01 |
4.91 |
4.97 |
5.01 |
Total interest-bearing
liabilities |
0.68% |
0.74% |
0.81% |
0.89% |
1.00% |
Interest rate spread |
3.29% |
3.27% |
3.37% |
3.36% |
3.41% |
Net free funds/contribution |
0.12 |
0.13 |
0.13 |
0.15 |
0.14 |
Net interest income/Net interest margin |
3.41% |
3.40% |
3.50% |
3.51% |
3.55% |
|
WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
Non-Interest Income - 5
Quarter Trends |
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
(In thousands) |
2013 |
2012 |
2012 |
2012 |
2012 |
Brokerage |
$ 7,267 |
$ 6,404 |
$ 6,355 |
$ 6,396 |
$ 6,322 |
Trust and asset management |
7,561 |
7,230 |
6,897 |
6,997 |
6,079 |
Total wealth management |
14,828 |
13,634 |
13,252 |
13,393 |
12,401 |
Mortgage banking |
30,145 |
34,702 |
31,127 |
25,607 |
18,534 |
Service charges on deposit accounts |
4,793 |
4,534 |
4,235 |
3,994 |
4,208 |
Gains on available-for-sale securities,
net |
251 |
2,561 |
409 |
1,109 |
816 |
Fees from covered call options |
1,639 |
2,156 |
2,083 |
3,114 |
3,123 |
Gain on bargain purchases, net |
— |
85 |
6,633 |
(55) |
840 |
Trading (losses) gains, net |
(435) |
(120) |
(998) |
(928) |
146 |
Other: |
|
|
|
|
|
Interest rate swap fees |
2,270 |
2,178 |
2,355 |
2,337 |
2,511 |
Bank Owned Life Insurance |
846 |
686 |
810 |
505 |
919 |
Administrative services |
738 |
867 |
825 |
823 |
766 |
Miscellaneous |
2,304 |
3,906 |
2,214 |
1,036 |
2,759 |
Total other income |
6,158 |
7,637 |
6,204 |
4,701 |
6,955 |
Total Non-Interest
Income |
$
57,379 |
$ 65,189 |
$ 62,945 |
$ 50,935 |
$ 47,023 |
|
|
|
|
|
|
WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
Non-Interest Expense - 5
Quarter Trends |
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
(In thousands) |
2013 |
2012 |
2012 |
2012 |
2012 |
Salaries and employee benefits: |
|
|
|
|
|
Salaries |
$ 41,831 |
$ 40,457 |
$ 40,173 |
$ 37,237 |
$ 37,933 |
Commissions and bonus |
21,276 |
23,968 |
24,041 |
19,388 |
16,802 |
Benefits |
14,406 |
11,715 |
11,066 |
11,514 |
14,295 |
Total salaries and employee benefits |
77,513 |
76,140 |
75,280 |
68,139 |
69,030 |
Equipment |
6,184 |
6,468 |
5,888 |
5,466 |
5,400 |
Occupancy, net |
8,853 |
8,480 |
8,024 |
7,728 |
8,062 |
Data processing |
4,599 |
4,178 |
4,103 |
3,840 |
3,618 |
Advertising and marketing |
2,040 |
2,725 |
2,528 |
2,179 |
2,006 |
Professional fees |
3,221 |
3,158 |
4,653 |
3,847 |
3,604 |
Amortization of other intangible assets |
1,120 |
1,108 |
1,078 |
1,089 |
1,049 |
FDIC insurance |
3,444 |
3,039 |
3,549 |
3,477 |
3,357 |
OREO (income) expense, net |
(1,620) |
5,269 |
3,808 |
5,848 |
7,178 |
Other: |
|
|
|
|
|
Commissions - 3rd party
brokers |
1,233 |
944 |
1,106 |
1,069 |
1,021 |
Postage |
1,249 |
1,856 |
1,120 |
1,330 |
1,423 |
Stationery and supplies |
934 |
1,095 |
954 |
1,035 |
919 |
Miscellaneous |
11,349 |
15,088 |
12,457 |
12,138 |
11,092 |
Total other expense |
14,765 |
18,983 |
15,637 |
15,572 |
14,455 |
Total Non-Interest
Expense |
$
120,119 |
$ 129,548 |
$ 124,548 |
$ 117,185 |
$ 117,759 |
|
WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
Allowance for Credit
Losses, excluding covered loans - 5 Quarter Trends
|
|
|
Three Months Ended |
|
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
(Dollars in thousands) |
2013 |
2012 |
2012 |
2012 |
2012 |
Allowance for loan losses at
beginning of period |
$
107,351 |
$ 112,287 |
$ 111,920 |
$ 111,023 |
$ 110,381 |
Provision for credit
losses |
15,367 |
20,672 |
18,192 |
18,394 |
15,154 |
Other adjustments |
(229) |
(289) |
(534) |
(272) |
(238) |
Reclassification (to)/from allowance
for unfunded lending-related commitments |
(213) |
(260) |
626 |
175 |
152 |
Charge-offs: |
|
|
|
|
|
Commercial |
4,540 |
9,782 |
3,315 |
6,046 |
3,262 |
Commercial real estate |
3,299 |
9,084 |
17,000 |
9,226 |
8,229 |
Home equity |
2,397 |
3,496 |
1,543 |
1,732 |
2,590 |
Residential real estate |
1,728 |
2,470 |
1,027 |
388 |
175 |
Premium finance receivables -
commercial |
1,068 |
1,284 |
886 |
744 |
837 |
Premium finance receivables -
life insurance |
— |
13 |
— |
3 |
13 |
Indirect consumer |
32 |
64 |
73 |
33 |
51 |
Consumer and other |
97 |
570 |
93 |
51 |
310 |
Total charge-offs |
13,161 |
26,763 |
23,937 |
18,223 |
15,467 |
Recoveries: |
|
|
|
|
|
Commercial |
295 |
368 |
349 |
246 |
257 |
Commercial real estate |
368 |
978 |
5,352 |
174 |
131 |
Home equity |
162 |
43 |
52 |
171 |
162 |
Residential real estate |
5 |
9 |
8 |
3 |
2 |
Premium finance receivables -
commercial |
285 |
250 |
191 |
153 |
277 |
Premium finance receivables -
life insurance |
9 |
15 |
15 |
18 |
21 |
Indirect consumer |
15 |
27 |
25 |
21 |
30 |
Consumer and other |
94 |
14 |
28 |
37 |
161 |
Total recoveries |
1,233 |
1,704 |
6,020 |
823 |
1,041 |
Net
charge-offs |
(11,928) |
(25,059) |
(17,917) |
(17,400) |
(14,426) |
Allowance for loan
losses at period end |
$
110,348 |
$ 107,351 |
$ 112,287 |
$ 111,920 |
$ 111,023 |
Allowance for unfunded
lending-related commitments at period end |
15,287 |
14,647 |
12,627 |
12,903 |
13,078 |
Allowance for credit
losses at period end |
$
125,635 |
$ 121,998 |
$ 124,914 |
$ 124,823 |
$ 124,101 |
Annualized net
charge-offs by category as a percentage of its own respective
category's average: |
|
|
|
|
|
Commercial |
0.61% |
1.35% |
0.44% |
0.91% |
0.49% |
Commercial real estate |
0.30 |
0.86 |
1.27 |
1.01 |
0.92 |
Home equity |
1.17 |
1.72 |
0.73 |
0.76 |
1.15 |
Residential real estate |
0.93 |
1.19 |
0.44 |
0.20 |
0.11 |
Premium finance receivables -
commercial |
0.16 |
0.21 |
0.14 |
0.14 |
0.15 |
Premium finance receivables -
life insurance |
— |
— |
— |
— |
— |
Indirect consumer |
0.09 |
0.19 |
0.25 |
0.07 |
0.13 |
Consumer and other |
0.01 |
1.86 |
0.22 |
0.05 |
0.49 |
Total loans, net of unearned
income, excluding covered loans |
0.39% |
0.83% |
0.60% |
0.62% |
0.53% |
Net charge-offs as a
percentage of the provision for credit losses |
77.62% |
121.22% |
98.49% |
94.60% |
95.20% |
Loans at
period-end |
$
11,900,312 |
$ 11,828,943 |
$ 11,489,900 |
$ 11,202,842 |
$ 10,717,384 |
Allowance for loan
losses as a percentage of loans at period end |
0.93% |
0.91% |
0.98% |
1.00% |
1.04% |
Allowance for credit
losses as a percentage of loans at period end |
1.06% |
1.03% |
1.09% |
1.11% |
1.16% |
|
WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
Non-Performing Assets,
excluding covered assets - 5 Quarter Trends |
|
|
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
(Dollars in thousands) |
2013 |
2012 |
2012 |
2012 |
2012 |
Loans past due greater than 90 days
and still accruing: |
|
|
|
|
|
Commercial |
$ — |
$ — |
$ — |
$ — |
$ — |
Commercial real-estate |
— |
— |
— |
— |
73 |
Home equity |
— |
100 |
— |
— |
— |
Residential real-estate |
— |
— |
— |
— |
— |
Premium finance receivables -
commercial |
7,677 |
10,008 |
5,533 |
5,184 |
4,619 |
Premium finance receivables -
life insurance |
2,256 |
— |
— |
— |
— |
Indirect consumer |
145 |
189 |
215 |
234 |
257 |
Consumer and other |
— |
32 |
— |
— |
— |
Total loans past due greater
than 90 days and still accruing |
10,078 |
10,329 |
5,748 |
5,418 |
4,949 |
Non-accrual loans: |
|
|
|
|
|
Commercial |
18,373 |
21,737 |
17,711 |
30,473 |
19,835 |
Commercial real-estate |
61,807 |
49,973 |
58,461 |
56,077 |
62,704 |
Home equity |
14,891 |
13,423 |
11,504 |
10,583 |
12,881 |
Residential real-estate |
9,606 |
11,728 |
15,393 |
9,387 |
5,329 |
Premium finance receivables -
commercial |
12,068 |
9,302 |
7,488 |
7,404 |
7,650 |
Premium finance receivables -
life insurance |
20 |
25 |
29 |
— |
— |
Indirect consumer |
95 |
55 |
72 |
132 |
152 |
Consumer and other |
1,695 |
1,511 |
1,485 |
1,446 |
121 |
Total non-accrual loans |
118,555 |
107,754 |
112,143 |
115,502 |
108,672 |
Total non-performing
loans: |
|
|
|
|
|
Commercial |
18,373 |
21,737 |
17,711 |
30,473 |
19,835 |
Commercial real-estate |
61,807 |
49,973 |
58,461 |
56,077 |
62,777 |
Home equity |
14,891 |
13,523 |
11,504 |
10,583 |
12,881 |
Residential real-estate |
9,606 |
11,728 |
15,393 |
9,387 |
5,329 |
Premium finance receivables -
commercial |
19,745 |
19,310 |
13,021 |
12,588 |
12,269 |
Premium finance receivables -
life insurance |
2,276 |
25 |
29 |
— |
— |
Indirect consumer |
240 |
244 |
287 |
366 |
409 |
Consumer and other |
1,695 |
1,543 |
1,485 |
1,446 |
121 |
Total non-performing loans |
$
128,633 |
$ 118,083 |
$ 117,891 |
$ 120,920 |
$ 113,621 |
Other real estate owned |
50,593 |
56,174 |
61,897 |
66,532 |
69,575 |
Other real estate owned -
obtained in acquisition |
5,584 |
6,717 |
5,480 |
6,021 |
6,661 |
Other repossessed assets |
4,315 |
— |
— |
— |
— |
Total non-performing
assets |
$
189,125 |
$ 180,974 |
$ 185,268 |
$ 193,473 |
$ 189,857 |
Total non-performing
loans by category as a percent of its own respective category's
period-end balance: |
|
|
|
|
|
Commercial |
0.64% |
0.75% |
0.64% |
1.14% |
0.78% |
Commercial real-estate |
1.55 |
1.29 |
1.58 |
1.53 |
1.75 |
Home equity |
1.96 |
1.72 |
1.42 |
1.29 |
1.53 |
Residential real-estate |
2.66 |
3.19 |
4.09 |
2.50 |
1.47 |
Premium finance receivables -
commercial |
0.99 |
0.97 |
0.66 |
0.69 |
0.81 |
Premium finance receivables -
life insurance |
0.13 |
— |
— |
— |
— |
Indirect consumer |
0.35 |
0.32 |
0.37 |
0.51 |
0.61 |
Consumer and other |
1.74 |
1.48 |
1.36 |
1.34 |
0.11 |
Total loans, net of unearned
income |
1.08% |
1.00% |
1.03% |
1.08% |
1.06% |
Total non-performing
assets as a percentage of total assets |
1.11% |
1.03% |
1.09% |
1.17% |
1.17% |
Allowance for loan
losses as a percentage of total non-performing loans |
85.79% |
90.91% |
95.25% |
92.56% |
97.71% |
CONTACT: Edward J. Wehmer, President & Chief Executive Officer
David A. Dykstra, Senior Executive Vice President &
Chief Operating Officer
(847) 939-9000
Web site address: www.wintrust.com
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