Wintrust Financial Corporation ("Wintrust" or "the Company")
(Nasdaq:WTFC) announced net income of $34.3 million or $0.69 per
diluted common share for the second quarter of 2013 compared to net
income of $32.1 million or $0.65 per diluted common share for the
first quarter of 2013 and $25.6 million or $0.52 per diluted common
share for the second quarter of 2012.
Highlights compared with the First Quarter of
2013*:
- Net income increased by $2.2 million
- Net interest margin increased by nine basis points to 3.50%
from 3.41%
- Total loans, excluding covered loans and loans held-for-sale,
increased $617 million
- Non-performing loans as a percent of total loans, excluding
covered loans and loans held-for-sale, decreased to 0.97%, the
lowest level since the third quarter of 2007
- Pre-tax adjusted earnings continues to grow, increasing $2.7
million
- Mortgage banking revenue increased by $1.6 million as a result
of an 8% increase in originations
- $3.7 million increase in trading gains primarily related to the
mark-to-market valuation of interest rate caps
- OREO expense increased $3.9 million due to lower valuation
adjustments on and higher gains on sales of OREO properties in the
previous quarter
- Effective expense management evidenced by an $888,000 decline
in non-interest expense, excluding OREO expense, variable
compensation and expenses associated with the First Lansing
acquisition
- Completed the acquisition of First Lansing Bancorp, Inc., the
parent company of First National Bank of Illinois.
* See "Supplemental Financial Measures/Ratios"
on page 13/14 for more information on non-GAAP measures.
The Company's total assets of $17.6 billion at June 30, 2013
increased $1.0 billion from June 30, 2012. Total deposits as of
June 30, 2013 were $14.4 billion, an increase of $1.3 billion from
June 30, 2012. Non-interest bearing deposits increased by $403
million, or 20%, since June 30, 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 $1.5 billion, or 26%, during the
same time period. Total loans, excluding covered loans and loans
held for sale, were $12.5 billion as of June 30, 2013, an increase
of $1.3 billion, or 12%, over June 30, 2012.
Edward J. Wehmer, President and Chief Executive Officer,
commented, "Wintrust reported record levels of net income for a
quarterly and six month period. The second quarter of 2013 was
highlighted by solid loan growth, increased net interest margin,
improved utilization of liquidity and another strong quarter of
mortgage banking and wealth management results."
Mr. Wehmer stated, "We continue to be asset driven utilizing a
portion of our liquidity to fund continued strong loan growth
particularly in our commercial and commercial real-estate
portfolios. Our loan pipelines continue to exhibit strength. The
increase in net interest margin in the second quarter compared to
the first quarter of this year is a direct result of our effective
use of our liquidity position during the current quarter. Over the
past five quarters, the Company has strategically purchased
interest rate caps to position itself for the potential rise in
interest rates. In the second quarter, long term interest rates
rose resulting in increased valuations of the interest rate caps
which were recorded as trading gains."
Mr. Wehmer further commented, "Pre-tax adjusted earnings
improved by $2.7 million over the previous quarter. The improvement
in pre-tax adjusted earnings reflects continued growth of net
interest income, wealth management revenue and another strong
quarter of mortgage banking revenue, partially offset by increased
variable compensation expenses. In the current interest rate
environment, the Company's mortgage operation has taken advantage
of an improving new home purchase market and an active mortgage
refinance market. As the housing market continues to improve and as
interest rates increase we anticipate the purchase business will
remain active. Although our pipeline for mortgage refinance
business has softened recently with higher interest rates, the
mortgage pipeline for home purchase business remains very strong
and we expect mortgage revenue to remain relatively strong in the
third quarter."
Commenting on credit quality, Mr. Wehmer noted, "The bumpiness
exhibited in credit quality metrics in the first quarter of 2013
was just that, as the Company's credit quality metrics improved in
the second quarter of 2013. The ratio of non-performing loans to
total loans, excluding covered loans and loans held for sale, at
the end of the second quarter improved to 0.97% down from 1.08% at
the end of the first quarter. Our credit workout teams continue to
make good progress on addressing non-performing assets."
Turning to the future, Mr. Wehmer stated, "We are excited about
the addition of First National Bank of Illinois to the Wintrust
family. Strategic acquisitions of this nature and organic branch
growth will continue to be an important piece of our long-term
strategy. During the second half of 2013, we expect our organic
branch growth to include approximately five new locations. Our
pipelines for both internal growth and external growth remain
consistently strong. Growing franchise value, increasing
profitability, leveraging our expense infrastructure and increasing
shareholder value continue to be our main objectives."
The graphs below illustrate certain highlights of the second
quarter of 2013 including, increased net income, continued loan
growth, changes in the deposit mix and improvement in the
ratio of non-performing loans to total loans, excluding covered
loans and loans held-for-sale.
Graphs accompanying this release are available at
http://media.globenewswire.com/cache/11955/file/20868.pdf
Wintrust's key operating measures and growth rates for the
second quarter of 2013, as compared to the sequential and linked
quarters are shown in the table below:
| |
|
|
|
| |
|
% or(5) basis point
(bp) change from |
% or basis point
(bp) change from |
| |
Three Months
Ended |
1st Quarter |
2nd Quarter |
| (Dollars in thousands) |
June 30, 2013 |
March 31, 2013 |
June 30, 2012 |
2013 |
2012 |
| Net income |
$34,307 |
$32,052 |
$25,595 |
7% |
34% |
| Net income per common share – diluted |
$0.69 |
$0.65 |
$0.52 |
6% |
33% |
| Pre-tax adjusted earnings (2) |
$70,920 |
$68,263 |
$68,928 |
4% |
3% |
| Net revenue (1) |
$199,819 |
$188,092 |
$179,205 |
6% |
12% |
| Net interest income |
$135,824 |
$130,713 |
$128,270 |
4% |
6% |
| Net interest margin (2) |
3.50% |
3.41% |
3.51% |
9bp |
(1)bp |
| Net overhead ratio (2) (3) |
1.49% |
1.47% |
1.63% |
2bp |
(14)bp |
| Net overhead ratio, based on pre-tax adjusted
earnings (2) (3) |
1.51% |
1.47% |
1.46% |
4bp |
5bp |
| |
|
|
|
|
|
| Efficiency ratio (2) (4) |
63.97% |
63.78% |
65.63% |
19bp |
(166)bp |
| Efficiency ratio, based on pre-tax adjusted
earnings (2) (4) |
63.78% |
63.46% |
61.35% |
32bp |
243bp |
| |
|
|
|
|
|
| Return on average assets |
0.80% |
0.75% |
0.63% |
5bp |
17bp |
| Return on average common equity |
7.55% |
7.27% |
6.08% |
28bp |
147bp |
| Return on average tangible common
equity |
9.70% |
9.35% |
7.80% |
35bp |
190bp |
| At end of period |
|
|
|
|
|
| Total assets |
$17,613,546 |
$17,074,247 |
$16,576,282 |
13% |
6% |
| Total loans, excluding loans held-for-sale,
excluding covered loans |
$12,516,892 |
$11,900,312 |
$11,202,842 |
21% |
12% |
| Total loans, including loans held-for-sale,
excluding covered loans |
$13,054,883 |
$12,281,234 |
$11,728,946 |
25% |
11% |
| Total deposits |
$14,365,854 |
$13,962,757 |
$13,057,581 |
12% |
10% |
| Total shareholders' equity |
$1,836,660 |
$1,825,688 |
$1,722,074 |
2% |
7% |
| |
| (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 – Second Quarter
2013
For the second quarter of 2013, net interest income totaled
$135.8 million, an increase of $5.1 million as compared to the
first quarter of 2013 and an increase of $7.6 million as compared
to the second 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 increased $5.1 million in the second
quarter of 2013 compared to the first quarter of 2013, due
to:
- A seven basis point increase in the yield on earning assets,
one additional day in the current quarter, and a $13.8 million
increase in average earning assets resulted in an increase in total
interest income of $4.3 million in the second quarter of 2013
compared to the first quarter of 2013.
- A three basis point decline in the rate paid on total
interest-bearing liabilities along with a reduction in average
interest bearing liabilities of $96.2 million were partially
offset by one additional day in the current quarter, creating a
$778,000 reduction in interest expense in the second quarter of
2013 compared to the first quarter of 2013.
- Combined, the increase in interest income of $4.3 million and
the reduction of interest expense by $778,000 created the $5.1
million increase in net interest income in the second quarter of
2013 compared to the first quarter of 2013.
- Net interest income increased $7.6 million in the second
quarter of 2013 compared to the second quarter of 2012, due
to:
- Average earning assets for the second quarter of 2013 increased
by $851.5 million compared to the second quarter of 2012. This
was comprised of average loan growth, excluding covered loans, of
$1.2 billion partially offset by a decrease of $226.6 million in
the average balance of liquidity management and other assets and a
decrease of $168.2 million in the average balance of covered
loans. The growth in average total loans, excluding covered
loans, included an increase of $364.3 million in commercial loans,
$453.6 million in commercial real-estate loans, $229.2 million in
U.S.-originated commercial premium finance receivables, $193.1
million in Canadian-originated commercial premium finance
receivables and $106.8 million in life premium finance receivables,
partially offset by a decrease of $35.8 million in mortgage loans
held-for-sale and $61.5 million in home equity and other
loans.
- The average earning asset growth of $851.5 million in the
second quarter of 2013 compared to the second quarter of 2012 was
partially offset by a 21 basis point decline in the yield on
earning assets, creating an increase in total interest income of
$1.0 million in the second quarter of 2013 compared to the prior
year quarter.
- Funding for the average earning asset growth of $851.5
million was provided by an increase in total average interest
bearing liabilities of $304.7 million (an increase in
interest-bearing deposits of $951.4 million partially offset by a
decrease of $646.7 million of wholesale funding) and an increase of
$546.8 million in the average balance of net free funds.
- A 24 basis point decline in the rate paid on total
interest-bearing liabilities more than offset the increase in
average balance, creating a $6.6 million reduction in interest
expense in the second quarter of 2013 compared to the second
quarter of 2012.
- Combined, the increase in interest income of $1.0 million and
the reduction of interest expense by $6.6 million created the $7.6
million increase in net interest income in the second quarter of
2013 compared to the second quarter of 2012.
The net interest margin, on a fully taxable equivalent basis,
for the second quarter of 2013 was 3.50% compared to 3.41% in the
first quarter of 2013 and 3.51% in the second 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 second quarter of 2013 increased
by nine basis points when compared to the first quarter of 2013,
due to:
- The yield on total average earning assets increased seven basis
points while the rate on total average interest-bearing liabilities
decreased three basis points.
- The contribution from net free funds declined by one basis
point.
- The net interest margin in the second quarter of 2013 declined
by 1 basis point when compared to the second quarter of 2012, due
to:
- The yield on total average earning assets declined 21 basis
points while the rate on total average interest-bearing liabilities
decreased 24 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 more than offset the lower loan
portfolio yields.
- The contribution from net free funds declined by four basis
points.
Non-interest income totaled $64.0 million in the second quarter
of 2013, increasing $6.6 million or 12%, compared to the first
quarter of 2013 and increasing $13.1 million, or 26%, compared to
the second quarter of 2012. The increase in non-interest income in
the second quarter of 2013 compared to the first quarter of 2013 is
primarily attributable to higher trading gains resulting primarily
from an increase in the valuation of interest rate cap derivatives
along with higher mortgage banking revenues and wealth management
revenues, partially offset by a decrease in fees from covered call
options. The increase in non-interest income in the second
quarter of 2013 compared to the second quarter of 2012 was
primarily attributable to higher mortgage banking revenues,
increased trading gains and higher wealth management revenues,
partially offset by a decrease in fees from covered call options
and fewer gains on available-for-sale securities. Mortgage
banking revenue increased $1.6 million when compared to the first
quarter of 2013 and increased $6.1 million when compared to the
second quarter of 2012. The increases in mortgage banking revenue
from the first quarter of 2013 and the second quarter of 2012
resulted primarily from increased loan originations. Loans
originated and sold to the secondary market were $1.1 billion in
the second quarter of 2013 compared to $974.4 million in the first
quarter of 2013 and $853.6 million in the second quarter of 2012
(see "Non-Interest Income" section later in this release for
further detail).
Non-interest expense totaled $128.2 million in the second
quarter of 2013, increasing $8.1 million or 7%, compared to the
first quarter of 2013 and increasing $11.0 million, or 9%, compared
to the second quarter of 2012. The increase in the current
quarter compared to the first quarter of 2013 can be attributed to
$1.2 million in expenses recorded at First Lansing as well as the
following changes which exclude First Lansing balances, a $3.9
million increase in OREO expense due to lower valuation adjustments
and higher gains on sales of OREO properties in the first quarter
of 2013, a $3.9 million increase in bonus and commission expense
primarily driven by higher revenues in the mortgage banking and
wealth management businesses, a $932,000 increase in professional
fees, mostly comprised of legal fees, partially offset by a $2.1
million reduction in benefits resulting primarily from decreased
payroll taxes. The increase in the second quarter of 2013
compared to the second quarter of 2012 was primarily attributable
to higher salary and employee benefit costs and increased equipment
and occupancy expenses, partially offset by a decrease in OREO
expenses (see "Non-Interest Expense" section later in this release
for further detail).
Financial Performance Overview – First Six Months of
2013
Net interest income increased $12.4 million in the first six
months of 2013 compared to the first six months of 2012, due
to:
- Average earning assets for the first six months of 2013
increased by $1.1 billion compared to the first six months of
2012. This was comprised of average loan growth, excluding
covered loans, of $1.3 billion partially offset by a decrease of
$149.7 million in the average balance of covered loans and a
decrease of $96.9 million in the average balance of liquidity
management and other assets. The growth in average total
loans, excluding covered loans, included an increase of $381.3
million in commercial loans, $416.3 million in commercial
real-estate loans, $255.6 million in U.S.-originated commercial
premium finance receivables, $220.9 million in Canadian-originated
commercial premium finance receivables, $77.5 million in life
premium finance receivables and $39.3 million in mortgage loans
held-for-sale, partially offset by a decrease of $63.0 million in
home equity and other loans.
- The average earning asset growth of $1.1 billion in the first
six months of 2013 compared to the first six months of 2012 was
more than offset by a 33 basis point decline in the yield on
earning assets, creating a decrease in total interest income of
$3.2 million in the first six months of 2013 compared to the prior
year period.
- Funding for the average earning asset growth of $1.1 billion
was provided by an increase in total average interest bearing
liabilities of $440.0 million (an increase in interest-bearing
deposits of $1.2 billion partially offset by a decrease of $723.3
million of wholesale funding) and an increase of $639.7 million in
the average balance of net free funds.
- A 27 basis point decline in the rate paid on total
interest-bearing liabilities more than offset the increase in
average balance, creating a $15.6 million reduction in interest
expense in the first six months of 2013 compared to the first six
months of 2012.
- Combined, the reduction of interest expense by $15.6 million
and the decline in interest income of $3.2 million, created the
$12.4 million increase in net interest income in the first six
months of 2013 compared to the first six months of 2012.
The net interest margin, on a fully taxable equivalent basis,
for the first six months of 2013 was 3.46% compared to 3.53% in the
first six months of 2012, a decrease of seven basis points,
due to:
- The yield on total average earning assets decreased 33
basis points while the rate on total average interest-bearing
liabilities decreased 27 basis points.
- The contribution from net free funds declined by one basis
point.
Non-interest income totaled $121.4 million in the first six
months of 2013, increasing $23.4 million, or 24%, compared to the
first six months of 2012. The change is primarily attributable to
higher mortgage banking revenues, wealth management revenues and
trading gains, partially offset by lower fees from covered call
options and fewer gains on available for sale securities. Mortgage
banking revenue increased $17.7 million when compared to the first
six months of 2012. The increase in the first six months of 2013
resulted primarily from an increase in gains on sales of loans,
which was driven by higher origination volumes primarily due to
increased home purchase activity resulting from improvements in the
housing market. Loans sold to the secondary market were $2.0
billion in the first six months of 2013 compared to $1.6 billion in
the first six months of 2012.
Non-interest expense totaled $248.3 million in the first six
months of 2013, increasing $13.4 million compared to the first six
months of 2012. The increase compared to the first six months of
2012 was primarily attributable to a $19.6 million increase in
salaries and employee benefits, as well as increases of $1.8
million in occupancy expenses, $1.7 million in equipment expenses
and $1.5 million in data processing expenses, partially offset by a
$12.4 million decline in OREO expenses.
Financial Performance Overview – Credit
Quality
The ratio of non-performing assets to total assets was 1.02% as
of June 30, 2013, compared to 1.11% at March 31, 2013 and 1.17% at
June 30, 2012. Non-performing assets, excluding covered
assets, totaled $179.5 million at June 30, 2013, compared to $189.1
million at March 31, 2013 and $193.5 million at June 30, 2012.
Non-performing loans, excluding covered loans, totaled $121.5
million, or 0.97% of total loans, at June 30, 2013, compared to
$128.6 million, or 1.08% of total loans, at March 31, 2013 and
$120.9 million, or 1.08% of total loans, at June 30,
2012. OREO, excluding covered OREO, of $57.0 million at June
30, 2013 increased slightly compared to $56.2 million at March 31,
2013 and decreased $15.5 million compared to $72.6 million at June
30, 2012.
The provision for credit losses, excluding the provision for
covered loan losses, totaled $15.1 million for the second quarter
of 2013 compared to $15.4 million for the first quarter of 2013 and
$18.4 million in the second quarter of 2012. Net charge-offs
as a percentage of loans, excluding covered loans, for the second
quarter of 2013 totaled 59 basis points on an annualized basis
compared to 39 basis points on an annualized basis in the first
quarter of 2013 and 62 basis points on an annualized basis in the
second quarter of 2012. Net charge-offs increased in the
second quarter of 2013 compared to the first quarter of 2013
primarily as a result of an $11.4 million increase in net
charge-offs within the commercial real estate loan portfolio,
offset by a $3.4 million decrease within the commercial loan
portfolio and a $1.2 million decrease within the residential real
estate loan portfolio. The increased level of net charge-offs in
the second quarter of 2013 compared to the first quarter of 2013
resulted in a $2.7 million decrease in ASC 310 reserves (specific
reserves) for the period.
Excluding the allowance for covered loan losses, the allowance
for credit losses at June 30, 2013 totaled $110.4 million, or 0.88%
of total loans, compared to $125.6 million, or 1.06% of total loans
at March 31, 2013 and $124.8 million, or 1.11% of total loans at
June 30, 2012. The decrease in the allowance for credit
losses, excluding the allowance for covered loan losses, was
primarily attributable to a decrease in the allowance for unfunded
lending-related commitments during the period. As of June 30, 2013,
the allowance for unfunded lending-related commitments totaled $3.6
million compared to $15.3 million as of March 31, 2013 and $12.9
million as of June 30, 2012. The decrease when comparing both
periods was the result of the funding of a letter of credit in the
second quarter of 2013, which individually resulted in a decrease
of $11.7 million in the allowance for unfunded lending-related
commitments.
Financial Performance Overview – Capital
As of June 30, 2013, the Company's estimated capital ratios
were 12.8% for total risk-based capital, 12.0% for tier 1
risk-based capital and 10.4% for leverage, all above the well
capitalized guidelines. Additionally, the Company's tangible
common equity ratio was 7.4% at June 30, 2013. Assuming
full conversion of both classes of preferred stock, the tangible
common equity ratio was 8.5% at June 30, 2013.
In July 2013, the Federal Reserve Bank, the Office of the
Comptroller of the Currency and the Federal Deposit Insurance
Corporation (the "Agencies") published final Basel III Capital
rules for U.S. banking organizations. The Company had
estimated that it would have been "well-capitalized" if the
fully-phased in capital requirements of the original proposal were
adopted and believes it will be "well-capitalized" under fully
implemented final rules. However, until all the final rules
are analyzed, the impact cannot be fully calculated with a high
degree of accuracy.
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 June 30, |
Six Months
Ended June 30, |
| (In thousands, except per share data) |
|
2013 |
2012 |
2013 |
2012 |
| Net income |
|
$34,307 |
$25,595 |
$66,359 |
$48,805 |
| Less: Preferred stock dividends and discount
accretion |
|
2,617 |
2,644 |
5,233 |
3,890 |
| Net income applicable to common
shares—Basic |
(A) |
31,690 |
22,951 |
61,126 |
44,915 |
| Add: Dividends on convertible preferred
stock, if dilutive |
|
2,581 |
— |
5,162 |
— |
| Net income applicable to common
shares—Diluted |
(B) |
34,271 |
22,951 |
66,288 |
44,915 |
| Weighted average common shares
outstanding |
(C) |
37,486 |
36,329 |
37,231 |
36,266 |
| Effect of dilutive potential common
shares: |
|
|
|
|
|
| Common stock equivalents |
|
7,334 |
7,770 |
7,343 |
7,723 |
| Convertible preferred stock, if
dilutive |
|
5,020 |
— |
5,020 |
— |
| Weighted average common shares and effect of
dilutive potential common shares |
(D) |
49,840 |
44,099 |
49,594 |
43,989 |
| Net income per common share: |
|
|
|
|
|
| Basic |
(A/C) |
$0.85 |
$0.63 |
$1.64 |
$1.24 |
| Diluted |
(B/D) |
$0.69 |
$0.52 |
$1.34 |
$1.02 |
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 June 30, |
Six Months Ended
June 30, |
| (Dollars in thousands, except per share
data) |
2013 |
2012 |
2013 |
2012 |
| Selected Financial Condition Data (at
end of period): |
|
|
|
|
| Total assets |
$17,613,546 |
$16,576,282 |
|
|
| Total loans, excluding covered loans |
12,516,892 |
11,202,842 |
|
|
| Total deposits |
14,365,854 |
13,057,581 |
|
|
| Junior subordinated debentures |
249,943 |
249,493 |
|
|
| Total shareholders' equity |
1,836,660 |
1,722,074 |
|
|
| Selected Statements of Income
Data: |
|
|
|
|
| Net interest income |
$135,824 |
$128,270 |
$226,537 |
254,165 |
| Net revenue (1) |
199,819 |
179,205 |
387,911 |
352,123 |
| Pre-tax adjusted earnings (2) |
70,920 |
68,928 |
139,183 |
132,995 |
| Net income |
34,307 |
25,595 |
66,359 |
48,805 |
| Net income per common share – Basic |
$0.85 |
$0.63 |
$1.64 |
$1.24 |
| Net income per common share – Diluted |
$0.69 |
$0.52 |
$1.34 |
$1.02 |
| Selected Financial Ratios and Other
Data: |
|
|
|
|
| Performance Ratios: |
|
|
|
|
| Net interest margin (2) |
3.50% |
3.51% |
3.46% |
3.53% |
| Non-interest income to average assets |
1.49% |
1.26% |
1.42% |
1.23% |
| Non-interest expense to average assets |
2.97% |
2.89% |
2.90% |
2.94% |
| Net overhead ratio (2) (3) |
1.49% |
1.63% |
1.48% |
1.71% |
| Net overhead ratio, based on pre-tax adjusted
earnings (2) (3) |
1.51% |
1.46% |
1.49% |
1.52% |
| Efficiency ratio (2) (4) |
63.97% |
65.63% |
63.88% |
66.91% |
| Efficiency ratio, based on pre-tax adjusted
earnings (2) (4) |
63.78% |
61.35% |
63.63% |
61.75% |
| Return on average assets |
0.80% |
0.63% |
0.77% |
0.61% |
| Return on average common equity |
7.55% |
6.08% |
7.42% |
5.99% |
| Return on average tangible common equity
(2) |
9.70% |
7.80% |
9.53% |
7.68% |
| Average total assets |
$17,283,985 |
$16,319,207 |
$17,270,489 |
$16,077,279 |
| Average total shareholders' equity |
1,859,265 |
1,695,440 |
1,838,810 |
1,630,051 |
| Average loans to average deposits ratio
(excluding covered loans) |
88.7% |
88.2% |
87.7% |
88.2% |
| Average loans to average deposits ratio
(including covered loans) |
92.2% |
93.4% |
91.3% |
93.4% |
| Common Share Data at end of
period: |
|
|
|
|
| Market price per common share |
$38.28 |
$35.50 |
|
|
| Book value per common share (2) |
$37.84 |
$35.86 |
|
|
| Tangible common book value per share (2) |
$29.25 |
$27.69 |
|
|
| Common shares outstanding |
37,725,143 |
36,340,843 |
|
|
| Other Data at end of
period:(8) |
|
|
|
|
| Leverage Ratio (5) |
10.4% |
10.2% |
|
|
| Tier 1 capital to risk-weighted assets
(5) |
12.0% |
12.2% |
|
|
| Total capital to risk-weighted assets
(5) |
12.8% |
13.4% |
|
|
| Tangible common equity ratio (TCE)
(2)(7) |
7.4% |
7.4% |
|
|
| Tangible common equity ratio, assuming full
conversion of preferred stock (2) (7) |
8.5% |
8.4% |
|
|
| Allowance for credit losses (6) |
$110,405 |
$124,823 |
|
|
| Non-performing loans |
$121,485 |
$120,920 |
|
|
| Allowance for credit losses to total loans
(6) |
0.88% |
1.11% |
|
|
| Non-performing loans to total loans |
0.97% |
1.08% |
|
|
| Number of: |
|
|
|
|
| Bank subsidiaries |
15 |
15 |
|
|
| Non-bank subsidiaries |
8 |
8 |
|
|
| Banking offices |
117 |
100 |
|
|
| |
|
|
|
|
| (1) Net revenue includes net
interest income and non-interest income |
| (2) See "Supplemental Financial
Measures/Ratios" for additional information on this performance
measure/ratio. |
| (3) The net overhead ratio is
calculated by netting total non-interest expense and total
non-interest income, annualizing this amount, and dividing by that
period's total average assets. A lower ratio indicates a higher
degree of efficiency. |
| (4) The efficiency ratio is
calculated by dividing total non-interest expense by tax-equivalent
net revenue (less securities gains or losses). A lower ratio
indicates more efficient revenue generation. |
| (5) Capital ratios for current
quarter-end are estimated. |
| (6) The allowance for credit
losses includes both the allowance for loan losses and the
allowance for unfunded lending-related commitments, but excludes
the allowance for covered loan losses. |
| (7) Total shareholders' equity
minus preferred stock and total intangible assets divided by total
assets minus total intangible assets. |
| (8) Asset quality ratios exclude
covered loans. |
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
| |
(Unaudited) |
|
(Unaudited) |
| |
June 30, |
December 31, |
June 30, |
| (In thousands) |
2013 |
2012 |
2012 |
| Assets |
|
|
|
| Cash and due from banks |
$ 224,286 |
$ 284,731 |
$ 176,529 |
| Federal funds sold and securities purchased
under resale agreements |
9,013 |
30,297 |
15,227 |
| Interest-bearing deposits with other
banks |
440,656 |
1,035,743 |
1,117,888 |
| Available-for-sale securities, at fair
value |
1,843,824 |
1,796,076 |
1,196,702 |
| Trading account securities |
659 |
583 |
608 |
| Federal Home Loan Bank and Federal Reserve
Bank stock, at cost |
79,354 |
79,564 |
92,792 |
| Brokerage customer receivables |
26,214 |
24,864 |
31,448 |
| Mortgage loans held-for-sale, at fair
value |
525,027 |
385,033 |
511,566 |
| Mortgage loans held-for-sale, at lower of
cost or market |
12,964 |
27,167 |
14,538 |
| Loans, net of unearned income, excluding
covered loans |
12,516,892 |
11,828,943 |
11,202,842 |
| Covered loans |
454,602 |
560,087 |
614,062 |
| Total loans |
12,971,494 |
12,389,030 |
11,816,904 |
| Less: Allowance for loan losses |
106,842 |
107,351 |
111,920 |
| Less: Allowance for covered loan
losses |
14,429 |
13,454 |
20,560 |
| Net loans |
12,850,223 |
12,268,225 |
11,684,424 |
| Premises and equipment, net |
512,928 |
501,205 |
449,608 |
| FDIC indemnification asset |
137,681 |
208,160 |
222,568 |
| Accrued interest receivable and other
assets |
573,709 |
511,617 |
710,275 |
| Trade date securities receivable |
— |
— |
— |
| Goodwill |
356,871 |
345,401 |
330,896 |
| Other intangible assets |
20,137 |
20,947 |
21,213 |
| Total assets |
$17,613,546 |
$17,519,613 |
$16,576,282 |
| Liabilities and Shareholders'
Equity |
|
|
|
| Deposits: |
|
|
|
| Non-interest bearing |
$ 2,450,659 |
$ 2,396,264 |
$ 2,047,715 |
| Interest bearing |
11,915,195 |
12,032,280 |
11,009,866 |
| Total deposits |
14,365,854 |
14,428,544 |
13,057,581 |
| Notes payable |
1,729 |
2,093 |
2,457 |
| Federal Home Loan Bank advances |
585,942 |
414,122 |
564,301 |
| Other borrowings |
252,776 |
274,411 |
375,523 |
| Secured borrowings - owed to securitization
investors |
— |
— |
360,825 |
| Subordinated notes |
10,000 |
15,000 |
15,000 |
| Junior subordinated debentures |
249,493 |
249,493 |
249,493 |
| Trade date securities payable |
577 |
— |
19,025 |
| Accrued interest payable and other
liabilities |
310,515 |
331,245 |
210,003 |
| Total liabilities |
15,776,886 |
15,714,908 |
14,854,208 |
| Shareholders' Equity: |
|
|
|
| Preferred stock |
176,476 |
176,406 |
176,337 |
| Common stock |
37,985 |
37,108 |
36,573 |
| Surplus |
1,066,796 |
1,036,295 |
1,013,428 |
| Treasury stock |
(8,214) |
(7,838) |
(7,374) |
| Retained earnings |
612,821 |
555,023 |
501,139 |
| Accumulated other comprehensive (loss)
income |
(49,204) |
7,711 |
1,971 |
| Total shareholders' equity |
1,836,660 |
1,804,705 |
1,722,074 |
| Total liabilities and
shareholders' equity |
$17,613,546 |
$17,519,613 |
$16,576,282 |
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
| |
|
Three Months
Ended June 30, |
Six months ended
June 30, |
| (In thousands, except per share data) |
|
2013 |
2012 |
2013 |
2012 |
| Interest income |
|
|
|
|
|
| Interest and fees on loans |
|
$ 145,983 |
$ 144,100 |
$ 288,097 |
$ 287,655 |
| Interest bearing deposits with banks |
|
411 |
203 |
980 |
451 |
| Federal funds sold and securities
purchased under resale agreements |
|
4 |
6 |
19 |
18 |
| Securities |
|
9,359 |
10,510 |
18,111 |
22,357 |
| Trading account securities |
|
8 |
10 |
13 |
19 |
| Federal Home Loan Bank and Federal
Reserve Bank stock |
|
693 |
641 |
1,377 |
1,245 |
| Brokerage customer receivables |
|
188 |
221 |
362 |
432 |
| Total interest income |
|
156,646 |
155,691 |
308,959 |
312,177 |
| Interest expense |
|
|
|
|
|
| Interest on deposits |
|
13,675 |
17,273 |
28,179 |
35,303 |
| Interest on Federal Home Loan Bank
advances |
|
2,821 |
2,867 |
5,585 |
6,451 |
| Interest on notes payable and other
borrowings |
|
1,132 |
2,274 |
2,286 |
5,376 |
| Interest on secured borrowings - owed to
securitization investors |
|
— |
1,743 |
— |
4,292 |
| Interest on subordinated notes |
|
52 |
126 |
111 |
295 |
| Interest on junior subordinated
debentures |
|
3,142 |
3,138 |
6,261 |
6,295 |
| Total interest expense |
|
20,822 |
27,421 |
42,422 |
58,012 |
| Net interest income |
|
135,824 |
128,270 |
266,537 |
254,165 |
| Provision for credit losses |
|
15,382 |
20,691 |
31,069 |
38,091 |
| Net interest income after provision for
credit losses |
|
120,442 |
107,579 |
235,468 |
216,074 |
| Non-interest income |
|
|
|
|
|
| Wealth management |
|
15,892 |
13,393 |
30,720 |
25,794 |
| Mortgage banking |
|
31,734 |
25,607 |
61,879 |
44,141 |
| Service charges on deposit accounts |
|
5,035 |
3,994 |
9,828 |
8,202 |
| Gains on available-for-sale securities,
net |
|
2 |
1,109 |
253 |
1,925 |
| Fees from covered call options |
|
993 |
3,114 |
2,632 |
6,237 |
| Gain on bargain purchases, net |
|
— |
(55) |
— |
785 |
| Trading gains (losses), net |
|
3,260 |
(928) |
2,825 |
(782) |
| Other |
|
7,079 |
4,701 |
13,237 |
11,656 |
| Total non-interest income |
|
63,995 |
50,935 |
121,374 |
97,958 |
| Non-interest expense |
|
|
|
|
|
| Salaries and employee benefits |
|
79,225 |
68,139 |
156,738 |
137,169 |
| Equipment |
|
6,413 |
5,466 |
12,597 |
10,866 |
| Occupancy, net |
|
8,707 |
7,728 |
17,560 |
15,790 |
| Data processing |
|
4,358 |
3,840 |
8,957 |
7,458 |
| Advertising and marketing |
|
2,722 |
2,179 |
4,762 |
4,185 |
| Professional fees |
|
4,191 |
3,847 |
7,412 |
7,451 |
| Amortization of other intangible
assets |
|
1,164 |
1,089 |
2,284 |
2,138 |
| FDIC insurance |
|
3,003 |
3,477 |
6,447 |
6,834 |
| OREO expense, net |
|
2,284 |
5,848 |
664 |
13,026 |
| Other |
|
16,120 |
15,572 |
30,885 |
30,027 |
| Total non-interest expense |
|
128,187 |
117,185 |
248,306 |
234,944 |
| Income before taxes |
|
56,250 |
41,329 |
108,536 |
79,088 |
| Income tax expense |
|
21,943 |
15,734 |
42,177 |
30,283 |
| Net income |
|
$ 34,307 |
$ 25,595 |
$ 66,359 |
$ 48,805 |
| Preferred stock dividends and discount
accretion |
|
$ 2,617 |
$ 2,644 |
$ 5,233 |
$ 3,890 |
| Net income applicable to common
shares |
|
$ 31,690 |
$ 22,951 |
$ 61,126 |
$ 44,915 |
| Net income per common share -
Basic |
|
$ 0.85 |
$ 0.63 |
$ 1.64 |
$ 1.24 |
| Net income per common share -
Diluted |
|
$ 0.69 |
$ 0.52 |
$ 1.34 |
$ 1.02 |
| Cash dividends declared per common
share |
|
— |
— |
$ 0.09 |
$ 0.09 |
| Weighted average common shares
outstanding |
|
37,486 |
36,329 |
37,231 |
36,266 |
| Dilutive potential common shares |
|
12,354 |
7,770 |
12,363 |
7,723 |
| Average common shares and dilutive common
shares |
|
49,840 |
44,099 |
49,594 |
43,989 |
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 |
Six Months
Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
June 30, |
| (Dollars and shares in thousands) |
2013 |
2013 |
2012 |
2012 |
2012 |
2013 |
2012 |
| Calculation of Net Interest Margin
and Efficiency Ratio |
|
|
|
|
|
|
|
| (A) Interest Income
(GAAP) |
$ 156,646 |
$ 152,313 |
$ 156,643 |
$ 158,201 |
$ 155,691 |
$ 308,959 |
$ 312,177 |
| Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
| - Loans |
225 |
150 |
159 |
148 |
135 |
375 |
269 |
| - Liquidity Management Assets |
356 |
343 |
349 |
352 |
333 |
699 |
662 |
| - Other Earning Assets |
4 |
1 |
1 |
1 |
3 |
5 |
6 |
| Interest Income - FTE |
$ 157,231 |
$ 152,807 |
$ 157,152 |
$ 158,702 |
$ 156,162 |
$ 310,038 |
$ 313,114 |
| (B) Interest Expense
(GAAP) |
20,822 |
21,600 |
23,867 |
25,626 |
27,421 |
42,422 |
58,012 |
| Net interest income - FTE |
$ 136,409 |
$ 131,207 |
$ 133,285 |
$ 133,076 |
$ 128,741 |
$ 267,616 |
$ 255,102 |
| (C) Net Interest Income (GAAP) (A
minus B) |
$ 135,824 |
$ 130,713 |
$ 132,776 |
$ 132,575 |
$ 128,270 |
$ 266,537 |
$ 254,165 |
| (D) Net interest margin
(GAAP) |
3.49% |
3.40% |
3.39% |
3.49% |
3.49% |
3.44% |
3.52% |
| Net interest margin - FTE |
3.50% |
3.41% |
3.40% |
3.50% |
3.51% |
3.46% |
3.53% |
| (E) Efficiency ratio
(GAAP) |
64.15% |
63.95% |
66.30% |
63.83% |
65.80% |
64.05% |
67.09% |
| Efficiency ratio -
FTE |
63.97% |
63.78% |
66.13% |
63.67% |
65.63% |
63.88% |
66.91% |
| Efficiency ratio - Based on
pre-tax adjusted earnings |
63.78% |
63.46% |
62.62% |
63.31% |
61.35% |
63.63% |
61.75% |
| (F) Net Overhead Ratio
(GAAP) |
1.49% |
1.47% |
1.48% |
1.47% |
1.63% |
1.48% |
1.71% |
| Net Overhead ratio - Based on
pre-tax adjusted earnings |
1.51% |
1.47% |
1.39% |
1.50% |
1.46% |
1.49% |
1.52% |
| Calculation of Tangible Common Equity
ratio (at period end) |
|
|
|
|
|
|
|
| Total shareholders' equity |
$ 1,836,660 |
$ 1,825,688 |
$ 1,804,705 |
$ 1,761,300 |
$ 1,722,074 |
|
|
| (G) Less: Preferred stock |
(176,476) |
(176,441) |
(176,406) |
(176,371) |
(176,337) |
|
|
| Less: Intangible assets |
(377,008) |
(363,142) |
(366,348) |
(354,039) |
(352,109) |
|
|
| (H) Total tangible common shareholders'
equity |
$ 1,283,176 |
$ 1,286,105 |
$ 1,261,951 |
$ 1,230,890 |
$ 1,193,628 |
|
|
| Total assets |
$ 17,613,546 |
$ 17,074,247 |
$ 17,519,613 |
$ 17,018,592 |
$ 16,576,282 |
|
|
| Less: Intangible assets |
(377,008) |
(363,142) |
(366,348) |
(354,039) |
(352,109) |
|
|
| (I) Total tangible assets |
$ 17,236,538 |
$ 16,711,105 |
$ 17,153,265 |
$ 16,664,553 |
$ 16,224,173 |
|
|
| Tangible common equity ratio
(H/I) |
7.4% |
7.7% |
7.4% |
7.4% |
7.4% |
|
|
| Tangible common equity ratio,
assuming full conversion of preferred stock ((H-G)/I) |
8.5% |
8.8% |
8.4% |
8.4% |
8.4% |
|
|
| Calculation of Pre-Tax Adjusted
Earnings |
|
|
|
|
|
|
|
| Income before taxes |
$ 56,250 |
$ 52,286 |
$ 48,871 |
$ 52,173 |
$ 41,329 |
$ 108,536 |
$ 79,088 |
| Add: Provision for credit losses |
15,382 |
15,687 |
19,546 |
18,799 |
20,691 |
31,069 |
38,091 |
| Add: OREO expense (income), net |
2,284 |
(1,620) |
5,269 |
3,808 |
5,848 |
664 |
13,026 |
| Add: Recourse obligation on loans previously
sold |
815 |
(755) |
— |
— |
(36) |
60 |
— |
| Add: Covered loan collection expense |
276 |
699 |
836 |
1,201 |
1,323 |
975 |
2,722 |
| Add: Defeasance cost |
— |
— |
— |
— |
148 |
— |
996 |
| Add: Seasonal payroll tax fluctuation |
(312) |
1,610 |
(873) |
(1,121) |
(271) |
1,298 |
1,994 |
| Add: FDIC Indemnification Asset
Amortization |
16 |
1,208 |
407 |
513 |
87 |
1,224 |
466 |
| Add: Loss (gain) on foreign currency
remeasurement |
33 |
22 |
(826) |
825 |
— |
55 |
— |
| Add: Fees for Termination of Repurchase
Agreements |
— |
— |
2,110 |
— |
— |
— |
— |
| Less: Gain from investment partnerships |
(562) |
(1,058) |
(373) |
(718) |
(65) |
(1,620) |
(1,460) |
| Less: Gain on bargain purchases, net |
— |
— |
(85) |
(6,633) |
55 |
— |
(785) |
| Less: Trading (gains) losses, net |
(3,260) |
435 |
120 |
998 |
928 |
(2,825) |
782 |
| Less: Gains on available-for-sale securities,
net |
(2) |
(251) |
(2,561) |
(409) |
(1,109) |
(253) |
(1,925) |
| Pre-tax adjusted
earnings |
$ 70,920 |
$ 68,263 |
$ 72,441 |
$ 69,436 |
$ 68,928 |
$ 139,183 |
$ 132,995 |
| Calculation of book value per
share |
|
|
|
|
|
|
|
| Total shareholders' equity |
$ 1,836,660 |
$ 1,825,688 |
$ 1,804,705 |
$ 1,761,300 |
$ 1,722,074 |
|
|
| Less: Preferred stock |
(176,476) |
(176,441) |
(176,406) |
(176,371) |
(176,337) |
|
|
| (J) Total common equity |
$ 1,660,184 |
$ 1,649,247 |
$ 1,628,299 |
$ 1,584,929 |
$ 1,545,737 |
|
|
| Actual common shares outstanding |
37,725 |
37,014 |
36,862 |
36,411 |
36,341 |
|
|
| Add: TEU conversion shares |
6,145 |
6,238 |
6,241 |
6,133 |
6,760 |
|
|
| (K) Common shares used for book value
calculation |
43,870 |
43,252 |
43,103 |
42,544 |
43,101 |
|
|
| Book value per share
(J/K) |
$ 37.84 |
$ 38.13 |
$ 37.78 |
$ 37.25 |
$ 35.86 |
|
|
| Tangible common book value per share
(H/K) |
$ 29.25 |
$ 29.74 |
$ 29.28 |
$ 28.93 |
$ 27.69 |
|
|
| Calculation of return on average
common equity |
|
|
|
|
|
|
|
| (L) Net income applicable to common
shares |
31,690 |
29,436 |
27,473 |
29,686 |
22,951 |
61,126 |
44,915 |
| Total average shareholders' equity |
1,859,265 |
1,818,127 |
1,786,824 |
1,736,740 |
1,695,440 |
1,838,810 |
1,630,051 |
| Less: Average preferred stock |
(176,454) |
(176,422) |
(176,383) |
(176,349) |
(176,314) |
(176,438) |
(122,083) |
| (M) Total average common shareholders'
equity |
1,682,811 |
1,641,705 |
1,610,441 |
1,560,391 |
1,519,126 |
1,662,372 |
1,507,968 |
| Less: Average intangible assets |
(372,796) |
(365,505) |
(356,320) |
(352,779) |
(335,327) |
(369,171) |
(331,261) |
| (N) Total average tangible common
shareholders' equity |
1,310,015 |
1,276,200 |
1,254,121 |
1,207,612 |
1,183,799 |
1,293,201 |
1,176,707 |
| Return on average common equity,
annualized (L/M) |
7.55% |
7.27% |
6.79% |
7.57% |
6.08% |
7.42% |
5.99% |
| Return on average tangible common
equity, annualized (L/N) |
9.70% |
9.35% |
8.71% |
9.78% |
7.80% |
9.53% |
7.68% |
LOANS
Loan Portfolio Mix and Growth Rates
| |
|
|
|
% Growth |
| (Dollars in thousands) |
June 30, 2013 |
December 31, 2012 |
June 30, 2012 |
From (1) December 31, 2012 |
From June 30, 2012 |
| Balance: |
|
|
|
|
|
| Commercial |
$3,120,576 |
$2,914,798 |
$2,673,181 |
14% |
17% |
| Commercial real-estate |
4,093,983 |
3,864,118 |
3,666,519 |
12 |
12 |
| Home equity |
758,260 |
788,474 |
820,991 |
(8) |
(8) |
| Residential real-estate |
384,961 |
367,213 |
375,494 |
10 |
3 |
| Premium finance receivables -
commercial |
2,165,734 |
1,987,856 |
1,830,044 |
18 |
18 |
| Premium finance receivables - life
insurance |
1,821,147 |
1,725,166 |
1,656,200 |
11 |
10 |
| Indirect consumer (2) |
64,521 |
77,333 |
72,482 |
(33) |
(11) |
| Consumer and other |
107,710 |
103,985 |
107,931 |
7 |
— |
| Total loans, net of unearned
income, excluding covered loans |
$12,516,892 |
$11,828,943 |
$11,202,842 |
12% |
12% |
| Covered loans |
454,602 |
560,087 |
614,062 |
(38) |
(26) |
| Total loans, net of unearned income |
$12,971,494 |
$12,389,030 |
$11,816,904 |
9% |
10% |
| Mix: |
|
|
|
|
|
| Commercial |
24% |
24% |
23% |
|
|
| Commercial real-estate |
31 |
31 |
31 |
|
|
| Home equity |
6 |
6 |
7 |
|
|
| Residential real-estate |
3 |
3 |
3 |
|
|
| Premium finance receivables -
commercial |
16 |
16 |
15 |
|
|
| Premium finance receivables - life
insurance |
14 |
14 |
14 |
|
|
| Indirect consumer (2) |
1 |
1 |
1 |
|
|
| Consumer and other |
1 |
1 |
1 |
|
|
| Total loans, net of unearned
income, excluding covered loans |
96% |
96% |
95% |
|
|
| Covered loans |
4 |
4 |
5 |
|
|
| Total loans, net of unearned income |
100% |
100% |
100% |
|
|
| |
| (1) Annualized |
| (2) Includes autos, boats,
snowmobiles and other indirect consumer loans. |
| As of June 30, 2013
(Dollars in thousands) |
Balance |
% of
Total Balance |
Nonaccrual |
> 90 Days Past Due
and Still Accruing |
Allowance
For Loan Losses
Allocation |
| Commercial: |
|
|
|
|
|
| Commercial and industrial |
$1,452,128 |
20.1% |
$15,432 |
$— |
$15,955 |
| Franchise |
202,240 |
2.8 |
— |
— |
1,647 |
| Mortgage warehouse lines of credit |
174,422 |
2.4 |
— |
— |
1,571 |
| Community Advantage - homeowner
associations |
83,003 |
1.2 |
— |
— |
208 |
| Aircraft |
13,174 |
0.2 |
— |
— |
33 |
| Asset-based lending |
930,454 |
12.9 |
1,816 |
100 |
7,834 |
| Municipal |
151,492 |
2.1 |
— |
— |
1,233 |
| Leases |
102,409 |
1.4 |
— |
— |
255 |
| Other |
98 |
— |
— |
— |
1 |
| Purchased non-covered commercial loans
(1) |
11,156 |
0.2 |
— |
190 |
— |
| Total commercial |
$3,120,576 |
43.3% |
$17,248 |
$290 |
$28,737 |
| Commercial Real-Estate: |
|
|
|
|
|
| Residential construction |
$39,299 |
0.5% |
$2,659 |
$3,263 |
$1,220 |
| Commercial construction |
138,043 |
1.9 |
7,857 |
— |
2,053 |
| Land |
116,853 |
1.6 |
5,742 |
— |
3,525 |
| Office |
597,757 |
8.3 |
6,324 |
— |
6,030 |
| Industrial |
615,501 |
8.5 |
5,773 |
— |
6,064 |
| Retail |
607,391 |
8.4 |
7,471 |
— |
5,418 |
| Multi-family |
533,568 |
7.4 |
3,337 |
— |
11,738 |
| Mixed use and other |
1,378,160 |
19.2 |
15,662 |
— |
15,701 |
| Purchased non-covered commercial
real-estate (1) |
67,411 |
0.9 |
— |
6,466 |
201 |
| Total commercial
real-estate |
$4,093,983 |
56.7% |
$54,825 |
$9,729 |
$51,950 |
| Total commercial and commercial
real-estate |
$7,214,559 |
100.0% |
$72,073 |
$10,019 |
$80,687 |
| |
|
|
|
|
|
| Commercial real-estate - collateral location
by state: |
|
|
|
|
|
| Illinois |
$3,460,398 |
84.5% |
|
|
|
| Wisconsin |
346,230 |
8.5 |
|
|
|
| Total primary
markets |
$3,806,628 |
93.0% |
|
|
|
| Florida |
65,928 |
1.6 |
|
|
|
| Arizona |
17,927 |
0.4 |
|
|
|
| Indiana |
78,871 |
1.9 |
|
|
|
| Other (no individual state greater than
0.5%) |
124,629 |
3.1 |
|
|
|
| Total |
$4,093,983 |
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 |
| (Dollars in thousands) |
June 30,
2013 |
December 31, 2012 |
June 30, 2012 |
From (1) December 31, 2012 |
From June 30, 2012 |
| Balance: |
|
|
|
|
|
| Non-interest bearing |
$2,450,659 |
$2,396,264 |
$2,047,715 |
5% |
20% |
| NOW |
2,147,004 |
2,022,957 |
1,780,872 |
12 |
21 |
| Wealth Management deposits (2) |
1,083,897 |
991,902 |
954,319 |
19 |
14 |
| Money Market |
3,037,354 |
2,761,498 |
2,335,238 |
20 |
30 |
| Savings |
1,304,619 |
1,275,012 |
958,295 |
5 |
36 |
| Time certificates of deposit |
4,342,321 |
4,980,911 |
4,981,142 |
(26) |
(13) |
| Total deposits |
$14,365,854 |
$14,428,544 |
$13,057,581 |
(1)% |
10% |
| Mix: |
|
|
|
|
|
| Non-interest bearing |
17% |
17% |
16% |
|
|
| NOW |
15 |
14 |
14 |
|
|
| Wealth Management deposits (2) |
8 |
7 |
7 |
|
|
| Money Market |
21 |
19 |
18 |
|
|
| Savings |
9 |
9 |
7 |
|
|
| Time certificates of deposit |
30 |
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
June 30, 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 |
$105,323 |
$68,812 |
$159,196 |
$714,055 |
$1,047,386 |
0.67% |
| 4-6 months |
4,667 |
60,954 |
— |
611,410 |
677,031 |
0.67% |
| 7-9 months |
40,000 |
53,837 |
— |
613,219 |
707,056 |
0.80% |
| 10-12 months |
4,952 |
24,894 |
— |
514,234 |
544,080 |
0.70% |
| 13-18 months |
16,444 |
32,638 |
— |
428,685 |
477,767 |
1.03% |
| 19-24 months |
131,649 |
9,973 |
— |
226,145 |
367,767 |
1.69% |
| 24+ months |
20,000 |
24,974 |
— |
476,260 |
521,234 |
1.49% |
| Total |
$323,035 |
$276,082 |
$159,196 |
$3,584,008 |
$4,342,321 |
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 second quarter
of 2013 compared to the second quarter of 2012 (linked
quarters):
| |
Three months
ended June 30, 2013 |
Three months ended June
30, 2012 |
| (Dollars in thousands) |
Average |
Interest |
Rate |
Average |
Interest |
Rate |
| Liquidity management assets (1) (2)
(7) |
$2,560,118 |
$10,823 |
1.70% |
$2,781,730 |
$11,693 |
1.69% |
| Other earning assets (2) (3) (7) |
25,775 |
201 |
3.13 |
30,761 |
233 |
3.04 |
| Loans, net of unearned income (2) (4)
(7) |
12,546,676 |
137,139 |
4.38 |
11,300,395 |
130,293 |
4.64 |
| Covered loans |
491,603 |
9,068 |
7.40 |
659,783 |
13,943 |
8.50 |
| Total earning assets (7) |
$15,624,172 |
$157,231 |
4.04% |
$14,772,669 |
$156,162 |
4.25% |
| Allowance for loan and covered loan
losses |
(126,455) |
|
|
(134,077) |
|
|
| Cash and due from banks |
225,712 |
|
|
152,118 |
|
|
| Other assets |
1,560,556 |
|
|
1,528,497 |
|
|
| Total assets |
$17,283,985 |
|
|
$16,319,207 |
|
|
| |
|
|
|
|
|
|
| Interest-bearing deposits |
$11,766,422 |
$13,675 |
0.47% |
$10,815,018 |
$17,273 |
0.64% |
| Federal Home Loan Bank advances |
434,572 |
2,821 |
2.60 |
514,513 |
2,867 |
2.24 |
| Notes payable and other borrowings |
273,255 |
1,132 |
1.66 |
422,146 |
2,274 |
2.17 |
| Secured borrowings - owed to securitization
investors |
— |
— |
— |
407,259 |
1,743 |
1.72 |
| Subordinated notes |
13,187 |
52 |
1.58 |
23,791 |
126 |
2.10 |
| Junior subordinated notes |
249,493 |
3,142 |
4.98 |
249,493 |
3,138 |
4.97 |
| Total interest-bearing liabilities |
$12,736,929 |
$20,822 |
0.65% |
$12,432,220 |
$27,421 |
0.89% |
| Non-interest bearing deposits |
2,379,315 |
|
|
1,993,880 |
|
|
| Other liabilities |
308,476 |
|
|
197,667 |
|
|
| Equity |
1,859,265 |
|
|
1,695,440 |
|
|
| Total liabilities and shareholders'
equity |
$17,283,985 |
|
|
$16,319,207 |
|
|
| Interest rate spread (5) (7) |
|
|
3.39% |
|
|
3.36% |
| Net free funds/contribution (6) |
$2,887,243 |
|
0.11% |
$2,340,449 |
|
0.15% |
| Net interest income/Net interest margin
(7) |
|
$136,409 |
3.50% |
|
$128,741 |
3.51% |
(1) Liquidity management assets include
available-for-sale securities, interest earning deposits with
banks, federal funds sold and securities purchased under resale
agreements.
(2) Interest income on tax-advantaged
loans, trading securities and securities reflects a tax-equivalent
adjustment based on a marginal federal corporate tax rate of 35%.
The total adjustments for the three months ended June 30, 2013
and 2012 were $585,000 and $471,000, 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 second quarter
of 2013 compared to the first quarter of 2013 (sequential
quarters):
| |
Three months
ended June 30, 2013 |
Three months ended March
31, 2013 |
| (Dollars in thousands) |
Average |
Interest |
Rate |
Average |
Interest |
Rate |
| Liquidity management assets (1) (2)
(7) |
$2,560,118 |
$10,823 |
1.70% |
$2,797,310 |
$10,363 |
1.50% |
| Other earning assets (2) (3) (7) |
25,775 |
201 |
3.13 |
24,205 |
180 |
3.02 |
| Loans, net of unearned income (2) (4)
(7) |
12,546,676 |
137,139 |
4.38 |
12,252,558 |
131,740 |
4.36 |
| Covered loans |
491,603 |
9,068 |
7.40 |
536,284 |
10,524 |
7.96 |
| Total earning assets (7) |
$15,624,172 |
$157,231 |
4.04% |
$15,610,357 |
$152,807 |
3.97% |
| Allowance for loan and covered loan
losses |
(126,455) |
|
|
(125,221) |
|
|
| Cash and due from banks |
225,712 |
|
|
217,345 |
|
|
| Other assets |
1,560,556 |
|
|
1,554,362 |
|
|
| Total assets |
$17,283,985 |
|
|
$17,256,843 |
|
|
| |
|
|
|
|
|
|
| Interest-bearing deposits |
$11,766,422 |
$13,675 |
0.47% |
$11,857,400 |
$14,504 |
0.50% |
| Federal Home Loan Bank advances |
434,572 |
2,821 |
2.60 |
414,092 |
2,764 |
2.71 |
| Notes payable and other borrowings |
273,255 |
1,132 |
1.66 |
297,151 |
1,154 |
1.57 |
| Secured borrowings - owed to securitization
investors |
— |
— |
— |
— |
— |
— |
| Subordinated notes |
13,187 |
52 |
1.58 |
15,000 |
59 |
1.56 |
| Junior subordinated notes |
249,493 |
3,142 |
4.98 |
249,493 |
3,119 |
5.00 |
| Total interest-bearing liabilities |
$12,736,929 |
$20,822 |
0.65% |
$12,833,136 |
$21,600 |
0.68% |
| Non-interest bearing deposits |
2,379,315 |
|
|
2,290,725 |
|
|
| Other liabilities |
308,476 |
|
|
314,855 |
|
|
| Equity |
1,859,265 |
|
|
1,818,127 |
|
|
| Total liabilities and shareholders'
equity |
$17,283,985 |
|
|
$17,256,843 |
|
|
| Interest rate spread (5) (7) |
|
|
3.39% |
|
|
3.29% |
| Net free funds/contribution (6) |
$2,887,243 |
|
0.11% |
$2,777,221 |
|
0.12% |
| Net interest income/Net interest margin
(7) |
|
$136,409 |
3.50% |
|
$131,207 |
3.41% |
(1) Liquidity management assets include
available-for-sale securities, interest earning deposits with
banks, federal funds sold and securities purchased under resale
agreements.
(2) Interest income on tax-advantaged
loans, trading securities and securities reflects a tax-equivalent
adjustment based on a marginal federal corporate tax rate of 35%.
The total adjustments for the three months ended June 30, 2013
was $585,000 and for the three months ended March 31, 2013 was
$494,000.
(3) Other earning assets include
brokerage customer receivables and trading account securities.
(4) Loans, net of unearned income,
include loans held-for-sale and non-accrual loans.
(5) Interest rate spread is the
difference between the yield earned on earning assets and the rate
paid on interest-bearing liabilities.
(6) Net free funds are the difference
between total average earning assets and total average
interest-bearing liabilities. The estimated contribution to net
interest margin from net free funds is calculated using the rate
paid for total interest-bearing liabilities.
(7) See "Supplemental Financial
Measures/Ratios" for additional information on this performance
ratio.
The following table presents a summary of Wintrust's average
balances, net interest income and related net interest margins,
calculated on a fully tax-equivalent basis, for the six months
ended June 30, 2013 compared to the six months ended June, 30
2012:
| |
Six months ended
June 30, 2013 |
Six months ended June 30,
2012 |
| (Dollars in thousands) |
Average |
Interest |
Rate |
Average |
Interest |
Rate |
| Liquidity management assets (1) (2)
(7) |
$2,678,059 |
$21,186 |
1.60% |
$2,769,282 |
$24,733 |
1.80% |
| Other earning assets (2) (3) (7) |
24,995 |
381 |
3.07 |
30,631 |
457 |
3.00 |
| Loans, net of unearned income (2) (4)
(7) |
12,400,429 |
268,879 |
4.37 |
11,074,205 |
259,077 |
4.70 |
| Covered loans |
513,820 |
19,592 |
7.69 |
663,512 |
28,847 |
8.74 |
| Total earning assets (7) |
$15,617,303 |
$310,038 |
4.00% |
$14,537,630 |
$313,114 |
4.33% |
| Allowance for loan and covered loan
losses |
(125,841) |
|
|
(132,923) |
|
|
| Cash and due from banks |
221,552 |
|
|
147,993 |
|
|
| Other assets |
1,557,475 |
|
|
1,524,579 |
|
|
| Total assets |
$17,270,489 |
|
|
$16,077,279 |
|
|
| |
|
|
|
|
|
|
| Interest-bearing deposits |
$11,811,659 |
$28,179 |
0.48% |
$10,648,420 |
$35,303 |
0.67% |
| Federal Home Loan Bank advances |
424,389 |
5,585 |
2.65 |
492,429 |
6,451 |
2.63 |
| Notes payable and other borrowings |
285,137 |
2,286 |
1.62 |
463,980 |
5,376 |
2.33 |
| Secured borrowings - owed to securitization
investors |
— |
— |
— |
461,091 |
4,292 |
1.87 |
| Subordinated notes |
14,088 |
111 |
1.57 |
29,396 |
295 |
1.98 |
| Junior subordinated notes |
249,493 |
6,261 |
4.99 |
249,493 |
6,295 |
4.99 |
| Total interest-bearing liabilities |
$12,784,766 |
$42,422 |
0.67% |
$12,344,809 |
$58,012 |
0.94% |
| Non-interest bearing deposits |
2,335,265 |
|
|
1,913,253 |
|
|
| Other liabilities |
311,648 |
|
|
189,166 |
|
|
| Equity |
1,838,810 |
|
|
1,630,051 |
|
|
| Total liabilities and shareholders'
equity |
$17,270,489 |
|
|
$16,077,279 |
|
|
| Interest rate spread (5) (7) |
|
|
3.33% |
|
|
3.39% |
| Net free funds/contribution (6) |
$2,832,537 |
|
0.13% |
$2,192,821 |
|
0.14% |
| Net interest income/Net interest margin
(7) |
|
$267,616 |
3.46% |
|
$255,102 |
3.53% |
(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 six months ended June 30, 2013
was $1.1 million and for the six months ended June 30, 2012 was
$937,000.
(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 second quarter of 2013, non-interest income totaled
$64.0 million, an increase of $13.1 million, or 26%, compared to
the second quarter of 2012. The increase was primarily
attributable to higher mortgage banking revenues, increased trading
gains and higher wealth management revenues, partially offset by a
decrease in fees from covered call options and fewer gains on
available-for-sale securities.
The following table presents non-interest income by category for
the periods presented:
| |
Three months
ended June 30, |
$ |
% |
| (Dollars in thousands) |
2013 |
2012 |
Change |
Change |
| Brokerage |
$7,426 |
$6,396 |
$1,030 |
16 |
| Trust and asset management |
8,466 |
6,997 |
1,469 |
21 |
| Total wealth management |
15,892 |
13,393 |
2,499 |
19 |
| Mortgage banking |
31,734 |
25,607 |
6,127 |
24 |
| Service charges on deposit accounts |
5,035 |
3,994 |
1,041 |
26 |
| Gains on available-for-sale securities,
net |
2 |
1,109 |
(1,107) |
(100) |
| Fees from covered call options |
993 |
3,114 |
(2,121) |
(68) |
| Gain on bargain purchases, net |
— |
(55) |
55 |
(100) |
| Trading gains (losses), net |
3,260 |
(928) |
4,188 |
NM |
| Other: |
|
|
|
|
| Interest rate swap fees |
1,638 |
2,337 |
(699) |
(30) |
| Bank Owned Life Insurance |
902 |
505 |
397 |
79 |
| Administrative services |
832 |
823 |
9 |
1 |
| Miscellaneous |
3,707 |
1,036 |
2,671 |
NM |
| Total Other |
7,079 |
4,701 |
2,378 |
51 |
| Total Non-Interest Income |
$63,995 |
$50,935 |
$13,060 |
26 |
| |
|
|
|
|
| |
Six months ended
June 30, |
$ |
% |
| (Dollars in thousands) |
2013 |
2012 |
Change |
Change |
| Brokerage |
$14,692 |
$12,718 |
$1,974 |
16 |
| Trust and asset management |
16,028 |
13,076 |
2,952 |
23 |
| Total wealth management |
30,720 |
25,794 |
4,926 |
19 |
| Mortgage banking |
61,879 |
44,141 |
17,738 |
40 |
| Service charges on deposit accounts |
9,828 |
8,202 |
1,626 |
20 |
| Gains on available-for-sale securities,
net |
253 |
1,925 |
(1,672) |
(87) |
| Fees from covered call options |
2,632 |
6,237 |
(3,605) |
(58) |
| Gain on bargain purchases, net |
— |
785 |
(785) |
(100) |
| Trading gains (losses), net |
2,825 |
(782) |
3,607 |
NM |
| Other: |
|
|
|
|
| Interest rate swap fees |
3,909 |
4,848 |
(939) |
(19) |
| Bank Owned Life Insurance |
1,747 |
1,424 |
323 |
23 |
| Administrative services |
1,569 |
1,589 |
(20) |
(1) |
| Miscellaneous |
6,012 |
3,795 |
2,217 |
58 |
| Total Other |
13,237 |
11,656 |
1,581 |
14 |
| Total Non-Interest Income |
$121,374 |
$97,958 |
$23,416 |
24 |
NM - Not Meaningful
The significant changes in non-interest income for the quarter
ended June 30, 2013 compared to the quarter ended
June 30, 2012 are discussed below.
Wealth management revenue totaled $15.9 million in the second
quarter of 2013 compared to $13.4 million in the second quarter of
2012, an increase of 19%. The increase is mostly attributable
to growth in assets from new customers and new financial advisors,
as well as an increase in existing customer activity and market
appreciation. Wealth management revenue is comprised of the trust
and asset management revenue of The Chicago Trust Company and Great
Lakes Advisors and the brokerage commissions, money managed fees
and insurance product commissions at Wayne Hummer Investments.
For the quarter ended June 30, 2013, mortgage banking
revenue totaled $31.7 million, an increase of $6.1 million or 24%,
when compared to the second quarter of 2012. The increase in
mortgage banking revenue in the second quarter of 2013 as compared
to the second quarter of 2012 resulted primarily from higher
origination volumes from both new home purchases, due to the
general improvement in the overall economy (increased housing
starts, home sales and median price of homes) and a continued
active refinance market. Mortgage loan originations were
$1.1 billion in the second quarter of 2013 as compared to $853.6
million million in the prior year quarter. In addition to
higher origination volume, pricing also improved creating higher
margins in the current period. 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 |
Six Months
Ended |
| (Dollars in thousands) |
June 30,
2013 |
March 31, 2013 |
June 30, 2012 |
June 30, 2013 |
June 30, 2012 |
| Mortgage loans originated and sold |
$1,050,799 |
$974,432 |
$853,585 |
$2,025,231 |
$1,568,240 |
| Mortgage loans serviced for others |
996,621 |
1,016,191 |
980,534 |
|
|
| Fair value of mortgage servicing rights
(MSRs) |
8,636 |
7,344 |
6,647 |
|
|
| MSRs as a percentage of loans serviced |
0.87% |
0.72% |
0.68% |
|
|
Services charges on deposit accounts totaled $5.0 million in the
second quarter of 2013, an increase of $1.0 million compared to the
prior year quarter. The increase in the current quarter is
primarily a result of higher account analysis fees on deposit
accounts which have increased as a result of the Company's
commercial banking initiative as well as additional service charges
on deposit accounts from acquired institutions.
The Company recognized $2,000 in gains on available-for-sale
securities in the second quarter of 2013 compared to gains of $1.1
million in the second quarter of 2012. The decrease in the
current period was due to fewer security sales in the current
quarter as compared to the prior year quarter.
The Company recognized $3.3 million in trading gains in the
second quarter of 2013 compared to trading losses of $928,000 in
the second quarter of 2012. The increase in trading gains
resulted primarily from fair value adjustments related to interest
rate derivatives not designated as hedges, primarily interest rate
cap instruments that the Company uses to manage interest rate risk,
specifically in the event of future increases in short-term
interest rates. The change in value of the cap derivatives
reflects the present value of expected cash flows over the
remaining life of the caps. These expected cash flows are
derived from the expected path for and a measure of volatility for
short-term interest rates.
Fees from covered call option transactions decreased by $2.1
million in the second 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 second quarter of 2013 compared to the second
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 second quarter of 2013 totaled
$7.1 million, an increase of $2.4 million compared to the second
quarter of 2012. Miscellaneous income increased in the second
quarter of 2013 compared to the prior year quarter primarily as a
result of higher net gains on CRA and investment partnerships
in the current quarter.
NON-INTEREST EXPENSE
Non-interest expense for the second quarter of 2013 totaled
$128.2 million and increased approximately $11.0 million, or 9%,
compared to the second quarter of 2012. The increase was
primarily attributable to higher salary and employee benefit costs
and increased equipment and occupancy 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 June 30, |
$ |
% |
| (Dollars in thousands) |
2013 |
2012 |
Change |
Change |
| Salaries and employee benefits: |
|
|
|
|
| Salaries |
$41,671 |
$37,237 |
4,434 |
12 |
| Commissions and bonus |
25,143 |
19,388 |
5,755 |
30 |
| Benefits |
12,411 |
11,514 |
897 |
8 |
| Total salaries and employee benefits |
79,225 |
68,139 |
11,086 |
16 |
| Equipment |
6,413 |
5,466 |
947 |
17 |
| Occupancy, net |
8,707 |
7,728 |
979 |
13 |
| Data processing |
4,358 |
3,840 |
518 |
13 |
| Advertising and marketing |
2,722 |
2,179 |
543 |
25 |
| Professional fees |
4,191 |
3,847 |
344 |
9 |
| Amortization of other intangible assets |
1,164 |
1,089 |
75 |
7 |
| FDIC insurance |
3,003 |
3,477 |
(474) |
(14) |
| OREO expense, net |
2,284 |
5,848 |
(3,564) |
(61) |
| Other: |
|
|
|
|
| Commissions - 3rd party brokers |
1,128 |
1,069 |
59 |
6 |
| Postage |
1,464 |
1,330 |
134 |
10 |
| Stationery and supplies |
887 |
1,035 |
(148) |
(14) |
| Miscellaneous |
12,641 |
12,138 |
503 |
4 |
| Total other |
16,120 |
15,572 |
548 |
4 |
| Total Non-Interest
Expense |
$128,187 |
$117,185 |
$11,002 |
9 |
| |
|
|
|
| |
Six months ended
June 30, |
$ |
% |
| (Dollars in thousands) |
2013 |
2012 |
Change |
Change |
| Salaries and employee benefits: |
|
|
|
|
| Salaries |
$83,502 |
$75,170 |
8,332 |
11 |
| Commissions and bonus |
46,419 |
36,190 |
10,229 |
28 |
| Benefits |
26,817 |
25,809 |
1,008 |
4 |
| Total salaries and employee benefits |
156,738 |
137,169 |
19,569 |
14 |
| Equipment |
12,597 |
10,866 |
1,731 |
16 |
| Occupancy, net |
17,560 |
15,790 |
1,770 |
11 |
| Data processing |
8,957 |
7,458 |
1,499 |
20 |
| Advertising and marketing |
4,762 |
4,185 |
577 |
14 |
| Professional fees |
7,412 |
7,451 |
(39) |
(1) |
| Amortization of other intangible assets |
2,284 |
2,138 |
146 |
7 |
| FDIC insurance |
6,447 |
6,834 |
(387) |
(6) |
| OREO expense, net |
664 |
13,026 |
(12,362) |
(95) |
| Other: |
|
|
|
|
| Commissions - 3rd party brokers |
2,362 |
2,090 |
272 |
13 |
| Postage |
2,713 |
2,753 |
(40) |
(1) |
| Stationery and supplies |
1,821 |
1,954 |
(133) |
(7) |
| Miscellaneous |
23,989 |
23,230 |
759 |
3 |
| Total other |
30,885 |
30,027 |
858 |
3 |
| Total Non-Interest
Expense |
$248,306 |
$234,944 |
$13,362 |
6 |
NM - Not Meaningful
The significant changes in non-interest expense for the quarter
ended June 30, 2013 compared to the quarter ended
June 30, 2012 are discussed below.
Salaries and employee benefits expense increased $11.1 million,
or 16%, in the second quarter of 2013 compared to the second
quarter of 2012 primarily as a result of a $5.8 million increase in
bonus and commissions primarily attributable to the increase in
variable pay based revenue and the Company's long-term incentive
program, a $4.4 million increase in salaries caused by the addition
of employees from the various acquisitions and larger staffing as
the Company grows and an $897,000 increase in employee
benefits.
Equipment expense totaled $6.4 million for the second quarter of
2013, an increase of $947,000 compared to the second 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 second quarter of 2013 was $8.7
million, an increase of $979,000, or 13%, compared to the same
period in 2012. The increase is primarily the result of
depreciation and maintenance and repairs on owned locations
including those obtained in the Company's acquisitions as well as
increased property taxes, partially offset by increased rental
income. 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 $518,000 in the second
quarter of 2013 totaling $4.4 million compared to $3.8 million
recorded in the second 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 expense totaled $2.3 million in the second quarter of 2013
compared to OREO expense of $5.8 million recorded in the second
quarter of 2012. OREO expense was lower in the current quarter
as compared to the second quarter of 2012 due to 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 second quarter of 2013 increased
$503,000, or 4%, 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 63.78% for the second quarter of 2013, compared to
61.35% in the second quarter of 2012. The net overhead ratio,
based on pre-tax adjusted earnings, was 1.51% for the second
quarter of 2013, compared to 1.46% in the second quarter of
2012. Both of these ratios, which have increased slightly
in the current quarter as compared to the prior year quarter, are
influenced by the increase in mortgage banking and wealth
management businesses which typically have higher efficiency and
overhead ratios than our other business lines.
ASSET QUALITY
Allowance for Credit Losses, excluding covered loans
| |
Three Months
Ended June 30, |
Six Months
Ended June 30, |
| (Dollars in thousands) |
2013 |
2012 |
2013 |
2012 |
| Allowance for loan losses at
beginning of period |
$110,348 |
$111,023 |
$107,351 |
$110,381 |
| Provision for credit
losses |
15,133 |
18,394 |
30,500 |
33,548 |
| Other adjustments |
(309) |
(272) |
(538) |
(510) |
| Reclassification from/(to) allowance
for unfunded lending-related commitments |
65 |
175 |
(148) |
327 |
| Charge-offs: |
|
|
|
|
| Commercial |
1,093 |
6,046 |
5,633 |
9,308 |
| Commercial real estate |
14,947 |
9,226 |
18,246 |
17,455 |
| Home equity |
1,785 |
1,732 |
4,182 |
4,322 |
| Residential real estate |
517 |
388 |
2,245 |
563 |
| Premium finance receivables -
commercial |
1,306 |
744 |
2,374 |
1,581 |
| Premium finance receivables - life
insurance |
— |
3 |
— |
16 |
| Indirect consumer |
16 |
33 |
48 |
84 |
| Consumer and other |
112 |
51 |
209 |
361 |
| Total charge-offs |
19,776 |
18,223 |
32,937 |
33,690 |
| Recoveries: |
|
|
|
|
| Commercial |
268 |
246 |
563 |
503 |
| Commercial real estate |
584 |
174 |
952 |
305 |
| Home equity |
171 |
171 |
333 |
333 |
| Residential real estate |
18 |
3 |
23 |
5 |
| Premium finance receivables -
commercial |
279 |
153 |
564 |
430 |
| Premium finance receivables - life
insurance |
— |
18 |
9 |
39 |
| Indirect consumer |
17 |
21 |
32 |
51 |
| Consumer and other |
44 |
37 |
138 |
198 |
| Total recoveries |
1,381 |
823 |
2,614 |
1,864 |
| Net charge-offs |
(18,395) |
(17,400) |
(30,323) |
(31,826) |
| Allowance for loan losses at
period end |
$106,842 |
$111,920 |
$106,842 |
$111,920 |
| Allowance for unfunded
lending-related commitments at period end |
3,563 |
12,903 |
3,563 |
12,903 |
| Allowance for credit losses at
period end |
$110,405 |
$124,823 |
$110,405 |
$124,823 |
| Annualized net charge-offs by
category as a percentage of its own respective
category's average: |
|
|
|
|
| Commercial |
0.11% |
0.91% |
0.35% |
0.71% |
| Commercial real estate |
1.42 |
1.01 |
0.87 |
0.97 |
| Home equity |
0.85 |
0.76 |
1.01 |
0.95 |
| Residential real estate |
0.26 |
0.20 |
0.59 |
0.16 |
| Premium finance receivables -
commercial |
0.20 |
0.14 |
0.18 |
0.15 |
| Premium finance receivables - life
insurance |
— |
— |
— |
— |
| Indirect consumer |
(0.01) |
0.07 |
0.05 |
0.10 |
| Consumer and other |
0.24 |
0.05 |
0.12 |
0.27 |
| Total loans, net of unearned income,
excluding covered loans |
0.59% |
0.62% |
0.49% |
0.58% |
| Net charge-offs as a percentage
of the provision for credit losses |
121.57% |
94.60% |
99.42% |
94.87% |
| Loans at period-end |
|
|
$12,516,892 |
$11,202,842 |
| Allowance for loan losses as a
percentage of loans at period end |
|
|
0.85% |
1.00% |
| Allowance for credit losses as a
percentage of loans at period end |
|
|
0.88% |
1.11% |
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 $15.1 million for the second quarter
of 2013, $15.4 million for the first quarter of 2013 and $18.4
million for the second quarter of 2012. For the quarter ended
June 30, 2013, net charge-offs, excluding covered loans,
totaled $18.4 million compared to $11.9 million in the first
quarter of 2013 and $17.4 million recorded in the second quarter of
2012. Annualized net charge-offs as a percentage of average loans,
excluding covered loans, were 0.59% in the second quarter of 2013,
0.39% in the first quarter of 2013 and 0.62% in the second quarter
of 2012. Net charge-offs increased in the second quarter of 2013
compared to the first quarter of 2013 primarily as a result of an
$11.4 million increase in net charge-offs within the commercial
real estate loan portfolio, offset by a $3.4 million decrease
within the commercial loan portfolio and a $1.2 million decrease
within the residential real estate loan portfolio. The increased
level of net charge-offs in the second quarter of 2013 compared to
the first quarter of 2013 resulted in a $2.7 million decrease in
ASC 310 reserves (specific reserves) for the period.
The allowance for unfunded lending-related commitments totaled
$3.6 million as of June 30, 2013 compared to $15.3 million as of
March 31, 2013 and $12.9 million as of June 30, 2012. The
decrease since both periods was primarily attributable to the
funding in the second quarter of 2013 of a letter of credit, which
individually resulted in a decrease of $11.7 million in the
allowance for unfunded lending-related commitments. The lower
level of the allowance for credit losses in 2013, reflects 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 summarize the calculation of allowance for loan
losses for the Company's core loan portfolio and consumer, niche
and purchased loan portfolio as of June 30, 2013 and
March 31, 2013.
| |
As of June 30,
2013 |
| |
Recorded |
Calculated |
As a percentage
of its own respective |
| (Dollars in thousands) |
Investment |
Allowance |
category's
balance |
| Commercial: |
|
|
|
| Commercial and industrial (1) |
$1,422,688 |
$15,871 |
1.12% |
| Asset-based lending (1) |
919,212 |
7,811 |
0.85 |
| Municipal (1) |
151,008 |
1,233 |
0.82 |
| Leases (1) |
101,807 |
255 |
0.25 |
| Other (1) |
98 |
1 |
1.02 |
| Commercial real-estate: |
|
|
|
| Residential construction (1) |
38,885 |
1,219 |
3.13 |
| Commercial construction (1) |
137,518 |
2,102 |
1.53 |
| Land (1) |
115,452 |
3,603 |
3.12 |
| Office (1) |
578,984 |
6,055 |
1.05 |
| Industrial (1) |
609,211 |
6,065 |
1.00 |
| Retail (1) |
589,845 |
5,459 |
0.93 |
| Multi-family (1) |
495,484 |
11,697 |
2.36 |
| Mixed use and other (1) |
1,276,746 |
15,135 |
1.19 |
| Home equity (1) |
733,777 |
14,173 |
1.93 |
| Residential real-estate (1) |
367,573 |
4,813 |
1.31 |
| Total core loan
portfolio |
$7,538,288 |
$95,492 |
1.27% |
| Commercial: |
|
|
|
| Franchise |
$202,240 |
$1,647 |
0.81% |
| Mortgage warehouse lines of credit |
174,422 |
1,571 |
0.90 |
| Community Advantage - homeowner
associations |
83,003 |
208 |
0.25 |
| Aircraft |
13,174 |
33 |
0.25 |
| Purchased non-covered commercial loans
(2) |
52,924 |
107 |
0.20 |
| Commercial real-estate: |
|
|
|
| Purchased non-covered commercial
real-estate (2) |
251,858 |
615 |
0.24 |
| Purchased non-covered home equity (2) |
24,483 |
32 |
0.13 |
| Purchased non-covered residential real-estate
(2) |
17,388 |
12 |
0.07 |
| Premium finance receivables |
|
|
|
| U.S. commercial insurance loans |
1,900,889 |
4,632 |
0.24 |
| Canada commercial insurance loans
(2) |
264,845 |
200 |
0.08 |
| Life insurance loans (1) |
1,346,697 |
436 |
0.03 |
| Purchased life insurance loans (2) |
474,450 |
— |
— |
| Indirect consumer |
64,521 |
263 |
0.41 |
| Consumer and other (1) |
98,830 |
1,580 |
1.60 |
| Purchased non-covered consumer and other
(2) |
8,880 |
14 |
0.16 |
| Total consumer, niche and
purchased loan portfolio |
$4,978,604 |
$11,350 |
0.23% |
| Total loans, net of unearned
income, excluding covered loans |
$12,516,892 |
$106,842 |
0.85% |
(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 March 31,
2013 |
| |
Recorded |
Calculated |
As a percentage
of its own respective |
| (Dollars in thousands) |
Investment |
Allowance |
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 (1) |
89,508 |
880 |
0.98 |
| Leases (1) |
97,337 |
261 |
0.27 |
| Other (1) |
127 |
1 |
0.79 |
| Commercial real-estate: |
|
|
|
| Residential construction (1) |
36,669 |
1,200 |
3.27 |
| Commercial construction (1) |
161,828 |
2,749 |
1.70 |
| Land (1) |
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 consumer, 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 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 consumer, niche and
purchased loans. A summary of the allowance for loan losses
calculated for the loan components in both the core loan portfolio
and the consumer, niche and purchased loan portfolio was
shown on the previous pages as of June 30, 2013 and
March 31, 2013. The allowance for loan losses to core loans
was 1.27% compared to 0.23% for consumer, niche
and purchased loans and 0.85% for the entire loan
portfolio as of June 30, 2013. As of March 31, 2013, the
allowance for loan losses to core loans was 1.35% compared to 0.25%
for consumer, niche and purchased loans and 0.93% for the
entire loan portfolio.
The decrease in the total allowance for loan losses to total
loans and the allowance for loan losses to core loans in the second
quarter of 2013 compared to the first quarter of 2013 was primarily
attributable to a $2.7 million decrease in ASC 310 reserves
(specific reserves) on the core portfolio.
ASC 450 reserve (general reserves) as a percentage of core loans
was 1.14% at June 30, 2013 and 1.19% at March 31, 2013. This
decrease was attributable to a slight decrease in the ASC 450
reserve factors, which are influenced by declining historical
charge-offs.
The table below shows the aging of the Company's loan portfolio
at June 30, 2013:
| |
|
90+ days |
60-89 |
30-59 |
|
|
| As of June 30, 2013 |
|
and still |
days past |
days past |
|
|
| (Dollars in thousands) |
Nonaccrual |
accruing |
due |
due |
Current |
Total Loans |
| Loan Balances: |
|
|
|
|
|
|
| Commercial |
|
|
|
|
|
|
| Commercial and industrial |
$15,432 |
$— |
$2,940 |
$9,933 |
$1,423,823 |
$1,452,128 |
| Franchise |
— |
— |
— |
450 |
201,790 |
202,240 |
| Mortgage warehouse lines of credit |
— |
— |
— |
— |
174,422 |
174,422 |
| Community Advantage - homeowners
association |
— |
— |
— |
— |
83,003 |
83,003 |
| Aircraft |
— |
— |
— |
— |
13,174 |
13,174 |
| Asset-based lending |
1,816 |
100 |
2,305 |
7,127 |
919,106 |
930,454 |
| Municipal |
— |
— |
— |
— |
151,492 |
151,492 |
| Leases |
— |
— |
— |
— |
102,409 |
102,409 |
| Other |
— |
— |
— |
— |
98 |
98 |
| Purchased non-covered commercial (1) |
— |
190 |
— |
1,632 |
9,334 |
11,156 |
| Total commercial |
17,248 |
290 |
5,245 |
19,142 |
3,078,651 |
3,120,576 |
| Commercial real-estate |
|
|
|
|
|
|
| Residential construction |
2,659 |
3,263 |
379 |
— |
32,998 |
39,299 |
| Commercial construction |
7,857 |
— |
1,271 |
70 |
128,845 |
138,043 |
| Land |
5,742 |
— |
330 |
4,141 |
106,640 |
116,853 |
| Office |
6,324 |
— |
4,210 |
2,720 |
584,503 |
597,757 |
| Industrial |
5,773 |
— |
4,597 |
4,984 |
600,147 |
615,501 |
| Retail |
7,471 |
— |
1,760 |
2,031 |
596,129 |
607,391 |
| Multi-family |
3,337 |
— |
401 |
3,149 |
526,681 |
533,568 |
| Mixed use and other |
15,662 |
— |
2,183 |
10,379 |
1,349,936 |
1,378,160 |
| Purchased non-covered commercial
real-estate (1) |
— |
6,466 |
3,430 |
6,226 |
51,289 |
67,411 |
| Total commercial real-estate |
54,825 |
9,729 |
18,561 |
33,700 |
3,977,168 |
4,093,983 |
| Home equity |
12,322 |
25 |
2,085 |
5,821 |
738,007 |
758,260 |
| Residential real estate |
10,213 |
— |
1,896 |
1,836 |
368,696 |
382,641 |
| Purchased non-covered residential real estate
(1) |
— |
— |
46 |
260 |
2,014 |
2,320 |
| Premium finance receivables |
|
|
|
|
|
|
| Commercial insurance loans |
13,605 |
6,671 |
6,592 |
11,386 |
2,127,480 |
2,165,734 |
| Life insurance loans |
16 |
1,212 |
7,896 |
— |
1,337,573 |
1,346,697 |
| Purchased life insurance loans (1) |
— |
— |
— |
— |
474,450 |
474,450 |
| Indirect consumer |
91 |
217 |
28 |
428 |
63,757 |
64,521 |
| Consumer and other |
1,677 |
— |
484 |
156 |
105,055 |
107,372 |
| Purchased non-covered consumer and other
(1) |
— |
28 |
— |
— |
310 |
338 |
| Total loans, net of unearned income,
excluding covered loans |
$109,997 |
$18,172 |
$42,833 |
$72,729 |
$12,273,161 |
$12,516,892 |
| Covered loans |
3,982 |
97,000 |
10,568 |
4,852 |
338,200 |
454,602 |
| Total loans, net of unearned income |
$113,979 |
$115,172 |
$53,401 |
$77,581 |
$12,611,361 |
$12,971,494 |
(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% |
—% |
0.2% |
0.7% |
98.0% |
100.0% |
| Franchise |
— |
— |
— |
0.2 |
99.8 |
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 |
0.2 |
— |
0.2 |
0.8 |
98.8 |
100.0 |
| Municipal |
— |
— |
— |
— |
100.0 |
100.0 |
| Leases |
— |
— |
— |
— |
100.0 |
100.0 |
| Other |
— |
— |
— |
— |
100.0 |
100.0 |
| Purchased non-covered commercial(1) |
— |
1.7 |
— |
14.6 |
83.7 |
100.0 |
| Total commercial |
0.6 |
— |
0.2 |
0.6 |
98.6 |
100.0 |
| Commercial real-estate |
|
|
|
|
|
|
| Residential construction |
6.8 |
8.3 |
1.0 |
— |
83.9 |
100.0 |
| Commercial construction |
5.7 |
— |
0.9 |
0.1 |
93.3 |
100.0 |
| Land |
4.9 |
— |
0.3 |
3.5 |
91.3 |
100.0 |
| Office |
1.1 |
— |
0.7 |
0.5 |
97.7 |
100.0 |
| Industrial |
0.9 |
— |
0.7 |
0.8 |
97.6 |
100.0 |
| Retail |
1.2 |
— |
0.3 |
0.3 |
98.2 |
100.0 |
| Multi-family |
0.6 |
— |
0.1 |
0.6 |
98.7 |
100.0 |
| Mixed use and other |
1.1 |
— |
0.2 |
0.8 |
97.9 |
100.0 |
| Purchased non-covered commercial
real-estate (1) |
— |
9.6 |
5.1 |
9.2 |
76.1 |
100.0 |
| Total commercial real-estate |
1.3 |
0.2 |
0.5 |
0.8 |
97.2 |
100.0 |
| Home equity |
1.6 |
— |
0.3 |
0.8 |
97.3 |
100.0 |
| Residential real estate |
2.7 |
— |
0.5 |
0.5 |
96.3 |
100.0 |
| Purchased non-covered residential real
estate(1) |
— |
— |
2.0 |
11.2 |
86.8 |
100.0 |
| Premium finance receivables |
|
|
|
|
|
|
| Commercial insurance loans |
0.6 |
0.3 |
0.3 |
0.5 |
98.3 |
100.0 |
| Life insurance loans |
— |
0.1 |
0.6 |
— |
99.3 |
100.0 |
| Purchased life insurance loans (1) |
— |
— |
— |
— |
100.0 |
100.0 |
| Indirect consumer |
0.1 |
0.3 |
— |
0.7 |
98.9 |
100.0 |
| Consumer and other |
1.6 |
— |
0.5 |
0.1 |
97.8 |
100.0 |
| Purchased non-covered consumer and
other(1) |
— |
8.3 |
— |
— |
91.7 |
100.0 |
| Total loans, net of unearned income,
excluding covered loans |
0.9% |
0.1% |
0.3% |
0.6% |
98.1% |
100.0% |
| Covered loans |
0.9 |
21.3 |
2.3 |
1.1 |
74.4 |
100.0 |
| Total loans, net of unearned income |
0.9% |
0.9% |
0.4% |
0.6% |
97.2% |
100.0% |
As of June 30, 2013, $42.8 million of all loans, excluding
covered loans, or 0.3%, were 60 to 89 days past due and $72.7
million, or 0.6%, were 30 to 59 days (or one payment) past due. 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. The
majority of the commercial and commercial real estate loans shown
as 60 to 89 days and 30 to 59 days past due are included on the
Company's internal problem loan reporting system. Loans on this
system are closely monitored by management on a monthly basis.
The Company's home equity and residential loan portfolios
continue to exhibit low delinquency ratios. Home equity loans at
June 30, 2013 that are current with regard to the contractual
terms of the loan agreement represent 97.3% of the total home
equity portfolio. Residential real estate loans at June 30,
2013 that are current with regards to the contractual terms of the
loan agreements comprise 96.3% 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
at March 31, 2013:
| |
|
90+ days |
60-89 |
30-59 |
|
|
| As of March 31, 2013 |
|
and still |
days past |
days past |
|
|
| (Dollars in thousands) |
Nonaccrual |
accruing |
due |
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% |
Non-performing Assets, excluding covered assets
The following table sets forth Wintrust's non-performing assets
and troubled debt restructurings ("TDRs") performing under the
contractual terms of the loan agreement, excluding covered assets
and purchased non-covered loans acquired with evidence of credit
quality deterioration since origination, at the dates
indicated.
| |
June 30, |
March 31, |
June 30, |
| (Dollars in thousands) |
2013 |
2013 |
2012 |
| Loans past due greater than 90 days
and still accruing(1): |
|
|
|
| Commercial |
$100 |
$— |
$— |
| Commercial real-estate |
3,263 |
— |
— |
| Home equity |
25 |
— |
— |
| Residential real-estate |
— |
— |
— |
| Premium finance receivables -
commercial |
6,671 |
7,677 |
5,184 |
| Premium finance receivables - life
insurance |
1,212 |
2,256 |
— |
| Indirect consumer |
217 |
145 |
234 |
| Consumer and other |
— |
— |
— |
| Total loans past due greater than 90 days
and still accruing |
11,488 |
10,078 |
5,418 |
| Non-accrual loans(2): |
|
|
|
| Commercial |
17,248 |
18,373 |
30,473 |
| Commercial real-estate |
54,825 |
61,807 |
56,077 |
| Home equity |
12,322 |
14,891 |
10,583 |
| Residential real-estate |
10,213 |
9,606 |
9,387 |
| Premium finance receivables -
commercial |
13,605 |
12,068 |
7,404 |
| Premium finance receivables - life
insurance |
16 |
20 |
— |
| Indirect consumer |
91 |
95 |
132 |
| Consumer and other |
1,677 |
1,695 |
1,446 |
| Total non-accrual loans |
109,997 |
118,555 |
115,502 |
| Total non-performing
loans: |
|
|
|
| Commercial |
17,348 |
18,373 |
30,473 |
| Commercial real-estate |
58,088 |
61,807 |
56,077 |
| Home equity |
12,347 |
14,891 |
10,583 |
| Residential real-estate |
10,213 |
9,606 |
9,387 |
| Premium finance receivables -
commercial |
20,276 |
19,745 |
12,588 |
| Premium finance receivables - life
insurance |
1,228 |
2,276 |
— |
| Indirect consumer |
308 |
240 |
366 |
| Consumer and other |
1,677 |
1,695 |
1,446 |
| Total non-performing loans |
$121,485 |
$128,633 |
$120,920 |
| Other real estate owned |
46,169 |
50,593 |
66,532 |
| Other real estate owned - obtained in
acquisition |
10,856 |
5,584 |
6,021 |
| Other repossessed assets |
1,032 |
4,315 |
— |
| Total non-performing assets |
$179,542 |
$189,125 |
$193,473 |
| TDRs performing under the contractual
terms of the loan agreement |
93,810 |
97,122 |
156,590 |
| Total non-performing loans by
category as a percent of its own respective category's
period-end balance: |
|
|
|
| Commercial |
0.56% |
0.64% |
1.14% |
| Commercial real-estate |
1.42 |
1.55 |
1.53 |
| Home equity |
1.63 |
1.96 |
1.29 |
| Residential real-estate |
2.65 |
2.66 |
2.50 |
| Premium finance receivables -
commercial |
0.94 |
0.99 |
0.69 |
| Premium finance receivables - life
insurance |
0.07 |
0.13 |
— |
| Indirect consumer |
0.48 |
0.35 |
0.51 |
| Consumer and other |
1.56 |
1.74 |
1.34 |
| Total loans, net of unearned income |
0.97% |
1.08% |
1.08% |
| Total non-performing assets as a
percentage of total assets |
1.02% |
1.11% |
1.17% |
| Allowance for loan losses as a
percentage of total non-performing loans |
87.95% |
85.79% |
92.56% |
(1) As of the dates shown, no TDRs were past due greater
than 90 days and still accruing interest.
(2) Non-accrual loans included TDRs totaling $32.4 million,
$19.2 million, and $15.7 million as of June 30, 2013, March
31, 2013, and June 30, 2012, respectively.
Non-performing Commercial and Commercial Real Estate
Commercial non-performing loans totaled $17.3 million as of
June 30, 2013 compared to $18.4 million as of March 31,
2013 and $30.5 million as of June 30, 2012. Commercial real
estate non-performing loans totaled $58.1 million as of
June 30, 2013 compared to $61.8 million as of March 31,
2013 and $56.1 million as of June 30, 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 $22.6 million as of June 30, 2013. The balance
decreased $1.9 million from March 31, 2013 and increased $2.6
million from June 30, 2012. The June 30, 2013
non-performing balance is comprised of $10.2 million of residential
real estate (56 individual credits) and $12.3 million of home
equity loans (59 individual credits). On average, this is
approximately 8 non-performing residential real estate loans and
home equity loans per chartered bank within the Company. The
Company believes control and collection of these loans is very
manageable. At this time, management believes reserves are adequate
to absorb inherent losses that may occur upon the ultimate
resolution of these credits.
Non-performing Commercial Insurance Premium Finance
Receivables
The table below presents the level of non-performing property
and casualty premium finance receivables as of June 30, 2013
and 2012, and the amount of net charge-offs for the quarters then
ended.
| |
June 30, |
June 30, |
| (Dollars in thousands) |
2013 |
2012 |
| Non-performing premium finance
receivables -- commercial |
$20,276 |
$12,588 |
| - as a percent of premium
finance receivables - commercial outstanding |
0.94% |
0.69% |
| Net charge-offs of premium finance
receivables - commercial |
$1,027 |
$591 |
| - annualized as a percent of
average premium finance receivables - commercial |
0.20% |
0.14% |
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 June 30, 2013 and 2012:
| |
Three Months
Ended |
Six Months
Ended |
| |
June 30, |
June 30, |
June 30, |
June 30, |
| (Dollars in thousands) |
2013 |
2012 |
2013 |
2012 |
| Balance at beginning of period |
$128,633 |
$113,621 |
$118,083 |
$120,084 |
| Additions, net |
21,348 |
35,860 |
49,378 |
53,727 |
| Return to performing status |
(817) |
(1,116) |
(817) |
(2,038) |
| Payments received |
(10,552) |
(9,823) |
(14,673) |
(14,463) |
| Transfer to OREO and other repossessed
assets |
(5,271) |
(6,555) |
(12,161) |
(13,156) |
| Charge-offs |
(11,325) |
(11,637) |
(20,473) |
(22,944) |
| Net change for niche loans (1) |
(531) |
570 |
2,148 |
(290) |
| Balance at end of
period |
$121,485 |
$120,920 |
$121,485 |
$120,920 |
(1) This includes activity for premium
finance receivables and indirect consumer loans.
TDRs
The table below presents a summary of TDRs for the respective
period, presented by loan category and accrual status:
| |
June 30, |
March 31, |
June 30, |
| (Dollars in thousands) |
2013 |
2013 |
2012 |
| Accruing TDRs: |
|
|
|
| Commercial |
$7,316 |
$9,073 |
$21,478 |
| Commercial real estate |
82,072 |
83,396 |
128,662 |
| Residential real estate and other |
4,422 |
4,653 |
6,450 |
| Total accrual |
$93,810 |
$97,122 |
$156,590 |
| Non-accrual TDRs: (1) |
|
|
|
| Commercial |
$1,904 |
$2,764 |
$1,562 |
| Commercial real estate |
28,552 |
14,907 |
13,215 |
| Residential real estate and other |
1,930 |
1,552 |
939 |
| Total non-accrual |
$32,386 |
$19,223 |
$15,716 |
| Total TDRs: |
|
|
|
| Commercial |
$9,220 |
$11,837 |
$23,040 |
| Commercial real estate |
110,624 |
98,303 |
141,877 |
| Residential real estate and other |
6,352 |
6,205 |
7,389 |
| Total TDRs |
$126,196 |
$116,345 |
$172,306 |
| Weighted-average contractual interest
rate of TDRs |
4.06% |
4.14% |
4.19% |
(1) Included in total non-performing
loans.
At June 30, 2013, the Company had $126.2 million in loans
modified in TDRs. The $126.2 million in TDRs represents 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 increased from $116.3
million representing 167 credits at March 31, 2013 and decreased
from $172.3 million representing 185 credits at June 30,
2012. The $9.9 million increase in the second quarter of 2013
compared to the first quarter of 2013 was primarily attributable to
two credit relationships totaling $12.6 million determined to be
non-accrual TDRs during the period.
The table below presents a summary of TDRs as of June 30,
2013 and June 30, 2012, and shows the changes in the balance
during the periods presented:
Three Months Ended June 30, 2013
| (Dollars in thousands) |
Commercial |
Commercial
Real Estate |
Residential Real Estate and
Other |
Total |
| Balance at beginning of period |
$11,837 |
$98,303 |
$6,205 |
$116,345 |
| Additions during the period |
— |
14,067 |
401 |
14,468 |
| Reductions: |
|
|
|
|
| Charge-offs |
(27) |
(371) |
(240) |
(638) |
| Transferred to OREO and other repossessed
assets |
— |
(670) |
— |
(670) |
| Removal of TDR loan status (1) |
(2,231) |
— |
— |
(2,231) |
| Payments received |
(359) |
(705) |
(14) |
(1,078) |
| Balance at period end |
$9,220 |
$110,624 |
$6,352 |
$126,196 |
Three Months Ended June 30, 2012
| (Dollars in thousands) |
Commercial |
Commercial Real Estate |
Residential
Real Estate and Other |
Total |
| Balance at beginning of period |
$10,789 |
$146,321 |
$7,936 |
$165,046 |
| Additions during the period |
12,765 |
7,860 |
29 |
20,654 |
| Reductions: |
|
|
|
|
| Charge-offs |
(161) |
(1,316) |
(294) |
(1,771) |
| Transferred to OREO and other repossessed
assets |
— |
— |
— |
— |
| Removal of TDR loan status (1) |
(200) |
(1,414) |
(273) |
(1,887) |
| Payments received |
(153) |
(9,574) |
(9) |
(9,736) |
| Balance at period end |
$23,040 |
$141,877 |
$7,389 |
$172,306 |
(1) Loan was previously classified as a
troubled debt restructuring and subsequently performed in
compliance with the loan's modified terms for a period of six
months (including over a calendar year-end) at a modified interest
rate which represented a market rate at the time of restructuring.
Per our TDR policy, the TDR classification is removed.
Six Months Ended June 30, 2013
| (Dollars in thousands) |
Commercial |
Commercial Real Estate |
Residential
Real Estate and Other |
Total |
| Balance at beginning of period |
$17,995 |
$102,415 |
$6,063 |
$126,473 |
| Additions during the period |
708 |
15,259 |
778 |
16,745 |
| Reductions: |
|
|
|
|
| Charge-offs |
(2,169) |
(1,743) |
(257) |
(4,169) |
| Transferred to OREO and other repossessed
assets |
(3,800) |
(837) |
(103) |
(4,740) |
| Removal of TDR loan status (1) |
(2,840) |
— |
— |
(2,840) |
| Payments received |
(674) |
(4,470) |
(129) |
(5,273) |
| Balance at period end |
$9,220 |
$110,624 |
$6,352 |
$126,196 |
Six Months Ended June 30, 2012
| (Dollars in thousands) |
Commercial |
Commercial Real Estate |
Residential
Real Estate and Other |
Total |
| Balance at beginning of period |
$10,834 |
$112,796 |
$6,888 |
$130,518 |
| Additions during the period |
12,883 |
46,379 |
1,089 |
60,351 |
| Reductions: |
|
|
|
|
| Charge-offs |
(161) |
(2,658) |
(294) |
(3,113) |
| Transferred to OREO and other repossessed
assets |
— |
(2,129) |
— |
(2,129) |
| Removal of TDR loan status (1) |
(200) |
(1,877) |
(273) |
(2,350) |
| Payments received |
(316) |
(10,634) |
(21) |
(10,971) |
| Balance at period end |
$23,040 |
$141,877 |
$7,389 |
$172,306 |
(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, excluding those
acquired with evidence of credit quality deterioration since
origination, is built on its credit risk rating system which
requires credit management personnel to assign a credit risk rating
to each loan at the time of each modification. 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 and/or concurrence credit officer.
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, excluding those acquired with evidence
of credit quality deterioration since origination, 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 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, excluding those acquired with
evidence of credit quality deterioration since origination, where
the credit risk rating is five or better both before and after such
modification is not considered to be a TDR. 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.
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. Loans classified as TDRs that are
re-modified subsequent to the initial determination will continue
to be classified as TDRs following the re-modification, unless the
requirements for removal from TDR classification discussed above
are satisfied at the time of the re-modification.
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. The Company, in accordance with
ASC 310-10, continues to individually measure impairment of these
loans after the TDR classification is removed.
Each TDR was reviewed for impairment at June 30, 2013 and
approximately $4.0 million of impairment was present and
appropriately reserved for through the Company's normal reserving
methodology in the Company's allowance for loan losses. For
TDRs in which impairment is calculated by the present value of
future cash flows, the Company records interest income representing
the decrease in impairment resulting from the passage of time
during the respective period, which differs from interest income
from contractually required interest on these specific loans. For
the three months ended June 30, 2013 and 2012, the Company recorded
$296,000 and $272,000, respectively, in interest income
representing this decrease in impairment. For the six months ended
June 30, 2013 and 2012, the Company recorded $522,000 and $510,000,
respectively, in interest income representing this decrease in
impairment.
Other Real Estate Owned
The table below presents a summary of other real estate owned,
excluding covered other real estate owned, as of June 30, 2013 and
shows the activity for the respective period and the balance for
each property type:
| |
Three Months Ended |
| |
June 30, |
March 31, |
June 30, |
| (Dollars in thousands) |
2013 |
2013 |
2012 |
| Balance at beginning of period |
$56,177 |
$62,891 |
$76,236 |
| Disposals/resolved |
(9,488) |
(7,498) |
(7,523) |
| Transfers in at fair value, less costs to
sell |
7,262 |
2,128 |
8,850 |
| Additions from acquisition |
6,818 |
— |
— |
| Fair value adjustments |
(3,744) |
(1,344) |
(5,010) |
| Balance at end of period |
$57,025 |
$56,177 |
$72,553 |
| |
|
|
|
| |
Period End |
| |
June 30, |
March 31, |
June 30, |
| Balance by Property Type |
2013 |
2013 |
2012 |
| Residential real estate |
$7,327 |
$7,312 |
$7,830 |
| Residential real estate development |
6,950 |
10,133 |
13,464 |
| Commercial real estate |
42,748 |
38,732 |
51,259 |
| Total |
$57,025 |
$56,177 |
$72,553 |
Other Repossessed Assets
At June 30, 2013, the Company had $1.0 million of other
repossessed assets compared to $4.3 million as of March 31, 2013.
The decrease in other repossessed assets during the period was
primarily attributable to the sale in the second quarter of 2013 of
an airplane repossessed at a fair value of $3.8 million in the
first quarter of 2013.
Covered Assets
In conjunction with FDIC-assisted transactions, the Company
entered into loss share agreements with the FDIC. These agreements
cover realized losses on loans, foreclosed real estate and certain
other assets. These loss share assets are measured separately from
the loan portfolios because they are not contractually embedded in
the loans and are not transferable with the loans should the
Company choose to dispose of them. Fair values at the acquisition
dates were estimated based on projected cash flows available for
loss-share based on the credit adjustments estimated for each loan
pool and the loss share percentages. The loss share assets are also
separately measured from the related loans and foreclosed real
estate and recorded separately on the Consolidated Statements of
Condition. Subsequent to the acquisition date, reimbursements
received from the FDIC for actual incurred losses will reduce the
loss share assets. Additional expected losses, to the extent such
expected losses result in the recognition of an allowance for loan
losses, will increase the loss share assets. The loss share
agreements with the FDIC require the Company to reimburse the FDIC
in the event that actual losses on covered assets are lower than
the original loss estimates agreed upon with the FDIC with respect
of such assets in the loss share agreements. The allowance for loan
losses for loans acquired in FDIC-assisted transactions is
determined without giving consideration to the amounts recoverable
through loss share agreements (since the loss share agreements are
separately accounted for and thus presented "gross" on the balance
sheet). On the Consolidated Statements of Income, the provision for
credit losses is reported net of changes in the amount recoverable
under the loss share agreements. Reductions to expected losses, to
the extent such reductions to expected losses are the result of an
improvement to the actual or expected cash flows from the covered
assets, will reduce the loss share assets. The increases in cash
flows for the purchased loans are recognized as interest income
prospectively.
The following table provides a comparative analysis for the
period end balances of the covered asset components and any changes
in the allowance for covered loan losses.
| |
June 30, |
March 31, |
June 30, |
| (Dollars in thousands) |
2013 |
2013 |
2012 |
| Period End Balances: |
|
|
|
| Loans |
$454,602 |
$518,661 |
$614,062 |
| Other real estate owned |
95,476 |
72,240 |
34,860 |
| Other assets |
2,272 |
681 |
916 |
| FDIC Indemnification asset |
137,681 |
170,696 |
222,568 |
| Total covered assets |
$690,031 |
$762,278 |
$872,406 |
| Allowance for Covered Loan Losses
Rollforward: |
|
|
|
| Balance at beginning of quarter: |
$12,272 |
$13,454 |
$17,735 |
| Provision for covered loan losses before
benefit attributable to FDIC loss share agreements |
1,246 |
1,600 |
11,591 |
| Benefit attributable to FDIC loss share
agreements |
(997) |
(1,280) |
(9,294) |
| Net provision for covered loan
losses |
249 |
320 |
2,297 |
| Increase (decrease) in FDIC
indemnification asset |
997 |
1,280 |
9,294 |
| Loans charged-off |
(2,266) |
(2,791) |
(8,793) |
| Recoveries of loans charged-off |
3,177 |
9 |
27 |
| Net charge-offs |
911 |
(2,782) |
(8,766) |
| Balance at end of quarter |
$14,429 |
$12,272 |
$20,560 |
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 June 30, 2013 |
Three Months Ended June
30, 2012 |
| |
Bank |
Life Insurance Premium |
Bank |
Life Insurance
Premium |
| (Dollars in thousands) |
Acquisitions |
Finance Loans |
Acquisitions |
Finance Loans |
| Accretable yield, beginning balance |
$121,725 |
$11,218 |
$182,222 |
$15,848 |
| Acquisitions |
2,055 |
— |
— |
— |
| Accretable yield amortized to interest
income |
(9,347) |
(2,254) |
(13,387) |
(2,749) |
| Accretable yield amortized to indemnification
asset(1) |
(11,906) |
— |
(18,063) |
— |
| Reclassification from non-accretable
difference(2) |
30,792 |
1,007 |
7,590 |
1,145 |
| (Decreases) increases in interest cash flows
due to payments and changes in interest rates |
(2,463) |
316 |
13,439 |
382 |
| Accretable yield, ending balance (3) |
$130,856 |
$10,287 |
$171,801 |
$14,626 |
| |
|
|
| |
Six Months
Ended June 30, 2013 |
Six Months Ended June 30,
2012 |
| |
Bank |
Life Insurance Premium |
Bank |
Life Insurance
Premium |
| (Dollars in thousands) |
Acquisitions |
Finance Loans |
Acquisitions |
Finance Loans |
| Accretable yield, beginning balance |
$143,224 |
$13,055 |
$173,120 |
$18,861 |
| Acquisitions |
1,977 |
— |
2,288 |
— |
| Accretable yield amortized to interest
income |
(18,924) |
(4,273) |
(28,279) |
(6,486) |
| Accretable yield amortized to indemnification
asset(1) |
(20,612) |
— |
(39,440) |
— |
| Reclassification from non-accretable
difference(2) |
36,204 |
1,007 |
49,191 |
1,145 |
| (Decreases) increases in interest cash flows
due to payments and changes in interest rates |
(11,013) |
498 |
14,921 |
1,106 |
| Accretable yield, ending balance (3) |
$130,856 |
$10,287 |
$171,801 |
$14,626 |
(1) Represents the portion of the
current period accreted yield, resulting from lower expected
losses, applied to reduce the loss share indemnification
asset.
(2) Reclassification is the result of
subsequent increases in expected principal cash flows.
(3) As of June 30, 2013, the
Company estimates that the remaining accretable yield balance to be
amortized to the indemnification asset for the bank acquisitions is
$52.2 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
On May 1, 2013, the Company completed its acquisition
of First Lansing Bancorp, Inc. ("FLB"). FLB was the
parent company of First National Bank of Illinois
("FNBI"). FNBI is headquartered in Lansing, Illinois and
operates seven banking locations in the south and southwest suburbs
of Chicago, as well as one location in northwest Indiana. As part
of the transaction, First Lansing Bancorp merged into the Company's
wholly-owned subsidiary bank, Old Plank Trail Community Bank, N.A.
("Old Plank Trail Bank"), and the seven banking locations acquired
are operating as branches of Old Plank Trail Bank. FNBI had
approximately $365 million in assets and approximately $323 million
in deposits as of the acquisition date, prior to purchase
accounting adjustments.
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" page 43 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.
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, Joliet, Lake Bluff, Lake
Villa, Lansing, Lindenhurst, Lynwood, McHenry, Mokena, Mount
Prospect, Mundelein, Naperville, North Chicago, Northfield,
Norridge, Orland Park, Palatine, Park Ridge, Plainfield, Prospect
Heights, Ravinia, Riverside, Rogers Park, Roselle, Shorewood,
Skokie, South Holland, Spring Grove, Steger, Vernon Hills,
Wauconda, Western Springs, Willowbrook, Winnetka and Wood Dale and
in Delafield, Elm Grove, Madison, Menomenee Falls and Wales,
Wisconsin and Dyer, Indiana.
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 10:00 a.m. (CT)
Wednesday, July 17, 2013 regarding second quarter 2013 results.
Individuals interested in listening should call (877) 363-5049
and enter Conference ID #12571968. A simultaneous audio-only web
cast and replay of the conference call may be accessed via the
Company's web site at (http://www.wintrust.com), Investor
Relations, Investor News and Events, Presentations &
Conference Calls. The text of the second quarter 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 |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| |
2013 |
2013 |
2012 |
2012 |
2012 |
| Selected Financial Condition Data (at
end of period): |
|
|
|
|
|
| Total assets |
$17,613,546 |
$17,074,247 |
$17,519,613 |
$17,018,592 |
$16,576,282 |
| Total loans, excluding covered loans |
12,516,892 |
11,900,312 |
11,828,943 |
11,489,900 |
11,202,842 |
| Total deposits |
14,365,854 |
13,962,757 |
14,428,544 |
13,847,965 |
13,057,581 |
| Junior subordinated debentures |
249,943 |
249,493 |
249,493 |
249,493 |
249,493 |
| Total shareholders' equity |
1,836,660 |
1,825,688 |
1,804,705 |
1,761,300 |
1,722,074 |
| Selected Statements of Income
Data: |
|
|
|
|
|
| Net interest income |
135,824 |
130,713 |
132,776 |
132,575 |
128,270 |
| Net revenue (1) |
199,819 |
188,092 |
197,965 |
195,520 |
179,205 |
| Pre-tax adjusted earnings (2) |
70,920 |
68,263 |
72,441 |
69,436 |
68,928 |
| Net income |
34,307 |
32,052 |
30,089 |
32,302 |
25,595 |
| Net income per common share – Basic |
$0.85 |
$0.80 |
$0.75 |
$0.82 |
$0.63 |
| Net income per common share – Diluted |
$0.69 |
$0.65 |
$0.61 |
$0.66 |
$0.52 |
| Selected Financial Ratios and Other
Data: |
|
|
|
|
|
| Performance Ratios: |
|
|
|
|
|
| Net interest margin (2) |
3.50% |
3.41% |
3.40% |
3.50% |
3.51% |
| Non-interest income to average assets |
1.49% |
1.35% |
1.50% |
1.50% |
1.26% |
| Non-interest expense to average assets |
2.97% |
2.82% |
2.99% |
2.97% |
2.89% |
| Net overhead ratio (2) (3) |
1.49% |
1.47% |
1.48% |
1.47% |
1.63% |
| Net overhead ratio - pre-tax adjusted
earnings (2) (3) |
1.51% |
1.47% |
1.39% |
1.50% |
1.46% |
| Efficiency ratio - FTE (2) (4) |
63.97% |
63.78% |
66.13% |
63.67% |
65.63% |
| Efficiency ratio - pre-tax adjusted earnings
(2) (4) |
63.78% |
63.46% |
62.62% |
63.31% |
61.35% |
| Return on average assets |
0.80% |
0.75% |
0.69% |
0.77% |
0.63% |
| Return on average common equity |
7.55% |
7.27% |
6.79% |
7.57% |
6.08% |
| Return on average tangible common equity |
9.70% |
9.35% |
8.71% |
9.78% |
7.80% |
| Average total assets |
$17,283,985 |
$17,256,843 |
$17,248,650 |
$16,705,429 |
$16,319,207 |
| Average total shareholders' equity |
1,859,265 |
1,818,127 |
1,786,824 |
1,736,740 |
1,695,440 |
| Average loans to average deposits ratio |
88.7% |
86.6% |
85.6% |
89.3% |
88.2% |
| Average loans to average deposits ratio
(including covered loans) |
92.2 |
90.4 |
90.0 |
93.8 |
93.4 |
| Common Share Data at end of
period: |
|
|
|
|
|
| Market price per common share |
$38.28 |
$37.04 |
$36.70 |
$37.57 |
$35.50 |
| Book value per common share (2) |
$37.84 |
$38.13 |
$37.78 |
$37.25 |
$35.86 |
| Tangible common book value per share (2) |
$29.25 |
$29.74 |
$29.28 |
$28.93 |
$27.69 |
| Common shares outstanding |
37,725,143 |
37,013,707 |
36,861,956 |
36,411,382 |
36,340,843 |
| Other Data at end of period:(8) |
|
|
|
|
|
| Leverage Ratio(5) |
10.4% |
10.2% |
10.0% |
10.2% |
10.2% |
| Tier 1 Capital to risk-weighted assets
(5) |
12.0% |
12.4% |
12.1% |
12.2% |
12.2% |
| Total capital to risk-weighted assets
(5) |
12.8% |
13.5% |
13.1% |
13.3% |
13.4% |
| Tangible common equity ratio (TCE) (2)
(7) |
7.4% |
7.7% |
7.4% |
7.4% |
7.4% |
| Tangible common equity ratio, assuming full
conversion of preferred stock (2) (7) |
8.5% |
8.8% |
8.4% |
8.4% |
8.4% |
| Allowance for credit losses (6) |
$110,405 |
$125,635 |
$121,988 |
$124,914 |
$124,823 |
| Non-performing loans |
121,485 |
128,633 |
118,083 |
117,891 |
120,920 |
| Allowance for credit losses to total loans
(6) |
0.88% |
1.06% |
1.03% |
1.09% |
1.11% |
| Non-performing loans to total loans |
0.97% |
1.08% |
1.00% |
1.03% |
1.08% |
| Number of: |
|
|
|
|
|
| Bank subsidiaries |
15 |
15 |
15 |
15 |
15 |
| Non-bank subsidiaries |
8 |
8 |
8 |
8 |
8 |
| Banking offices |
117 |
108 |
111 |
109 |
100 |
| |
|
|
|
|
|
| (1) Net revenue includes net
interest income and non-interest income |
| (2) See "Supplemental Financial
Measures/Ratios" for additional information on this performance
measure/ratio. |
| (3) The net overhead ratio is
calculated by netting total non-interest expense and total
non-interest income, annualizing this amount, and dividing by that
period's total average assets. A lower ratio indicates a higher
degree of efficiency. |
| (4) The efficiency ratio is
calculated by dividing total non-interest expense by tax-equivalent
net revenue (less securities gains or losses). A lower ratio
indicates more efficient revenue generation. |
| (5) Capital ratios for current
quarter-end are estimated. |
| (6) The allowance for credit
losses includes both the allowance for loan losses and the
allowance for unfunded lending-related commitments, but excluding
the allowance for covered loan losses. |
| (7) Total shareholders' equity
minus preferred stock and total intangible assets divided by total
assets minus total intangible assets |
| (8) Asset quality ratios exclude
covered loans. |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Consolidated Statements
of Condition - 5 Quarter Trends |
| |
|
|
|
|
|
| |
(Unaudited) |
(Unaudited) |
|
(Unaudited) |
(Unaudited) |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (In thousands) |
2013 |
2013 |
2012 |
2012 |
2012 |
| Assets |
|
|
|
|
|
| Cash and due from banks |
$224,286 |
$199,575 |
$284,731 |
$186,752 |
$176,529 |
| Federal funds sold and securities purchased
under resale agreements |
9,013 |
13,626 |
30,297 |
26,062 |
15,227 |
| Interest-bearing deposits with other
banks |
440,656 |
685,302 |
1,035,743 |
934,430 |
1,117,888 |
| Available-for-sale securities, at fair
value |
1,843,824 |
1,870,831 |
1,796,076 |
1,256,768 |
1,196,702 |
| Trading account securities |
659 |
1,036 |
583 |
635 |
608 |
| Federal Home Loan Bank and Federal Reserve
Bank stock, at cost |
79,354 |
76,601 |
79,564 |
80,687 |
92,792 |
| Brokerage customer receivables |
26,214 |
25,614 |
24,864 |
30,633 |
31,448 |
| Mortgage loans held-for-sale, at fair
value |
525,027 |
370,570 |
385,033 |
548,300 |
511,566 |
| Mortgage loans held-for-sale, at lower of
cost or market |
12,964 |
10,352 |
27,167 |
21,685 |
14,538 |
| Loans, net of unearned income, excluding
covered loans |
12,516,892 |
11,900,312 |
11,828,943 |
11,489,900 |
11,202,842 |
| Covered loans |
454,602 |
518,661 |
560,087 |
657,525 |
614,062 |
| Total loans |
12,971,494 |
12,418,973 |
12,389,030 |
12,147,425 |
11,816,904 |
| Less: Allowance for loan
losses |
106,842 |
110,348 |
107,351 |
112,287 |
111,920 |
| Less: Allowance for covered
loan losses |
14,429 |
12,272 |
13,454 |
21,926 |
20,560 |
| Net loans |
12,850,223 |
12,296,353 |
12,268,225 |
12,013,212 |
11,684,424 |
| Premises and equipment, net |
512,928 |
504,803 |
501,205 |
461,905 |
449,608 |
| FDIC indemnification asset |
137,681 |
170,696 |
208,160 |
238,305 |
222,568 |
| Accrued interest receivable and other
assets |
573,709 |
485,746 |
511,617 |
557,884 |
710,275 |
| Trade date securities receivable |
— |
— |
— |
307,295 |
— |
| Goodwill |
356,871 |
343,632 |
345,401 |
331,634 |
330,896 |
| Other intangible assets |
20,137 |
19,510 |
20,947 |
22,405 |
21,213 |
| Total assets |
$17,613,546 |
$17,074,247 |
$17,519,613 |
$17,018,592 |
$16,576,282 |
| Liabilities and Shareholders'
Equity |
|
|
|
|
|
| Deposits: |
|
|
|
|
|
| Non-interest bearing |
$2,450,659 |
$2,243,440 |
$2,396,264 |
$2,162,215 |
$2,047,715 |
| Interest bearing |
11,915,195 |
11,719,317 |
12,032,280 |
11,685,750 |
11,009,866 |
| Total deposits |
14,365,854 |
13,962,757 |
14,428,544 |
13,847,965 |
13,057,581 |
| Notes payable |
1,729 |
31,911 |
2,093 |
2,275 |
2,457 |
| Federal Home Loan Bank advances |
585,942 |
414,032 |
414,122 |
414,211 |
564,301 |
| Other borrowings |
252,776 |
256,244 |
274,411 |
377,229 |
375,523 |
| Secured borrowings - owed to securitization
investors |
— |
— |
— |
— |
360,825 |
| Subordinated notes |
10,000 |
15,000 |
15,000 |
15,000 |
15,000 |
| Junior subordinated debentures |
249,493 |
249,493 |
249,493 |
249,493 |
249,493 |
| Trade date securities payable |
577 |
1,250 |
— |
412 |
19,025 |
| Accrued interest payable and other
liabilities |
310,515 |
317,872 |
331,245 |
350,707 |
210,003 |
| Total liabilities |
15,776,886 |
15,248,559 |
15,714,908 |
15,257,292 |
14,854,208 |
| Shareholders' Equity: |
|
|
|
|
|
| Preferred stock |
176,476 |
176,441 |
176,406 |
176,371 |
176,337 |
| Common stock |
37,985 |
37,272 |
37,108 |
36,647 |
36,573 |
| Surplus |
1,066,796 |
1,040,098 |
1,036,295 |
1,018,417 |
1,013,428 |
| Treasury stock |
(8,214) |
(8,187) |
(7,838) |
(7,490) |
(7,374) |
| Retained earnings |
612,821 |
581,131 |
555,023 |
527,550 |
501,139 |
| Accumulated other comprehensive
(loss) income |
(49,204) |
(1,067) |
7,711 |
9,805 |
1,971 |
| Total shareholders' equity |
1,836,660 |
1,825,688 |
1,804,705 |
1,761,300 |
1,722,074 |
| Total liabilities and
shareholders' equity |
$17,613,546 |
$17,074,247 |
$17,519,613 |
$17,018,592 |
$16,576,282 |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Consolidated Statements
of Income (Unaudited) - 5 Quarter Trends |
| |
|
|
|
|
|
| |
Three Months Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (In thousands, except per share data) |
2013 |
2013 |
2012 |
2012 |
2012 |
| Interest income |
|
|
|
|
|
| Interest and fees on loans |
$145,983 |
$142,114 |
$146,946 |
$149,271 |
$144,100 |
| Interest bearing deposits with banks |
411 |
569 |
739 |
362 |
203 |
| Federal funds sold and securities
purchased under resale agreements |
4 |
15 |
13 |
7 |
6 |
| Securities |
9,359 |
8,752 |
8,086 |
7,691 |
10,510 |
| Trading account securities |
8 |
5 |
6 |
3 |
10 |
| Federal Home Loan Bank and Federal
Reserve Bank stock |
693 |
684 |
656 |
649 |
641 |
| Brokerage customer receivables |
188 |
174 |
197 |
218 |
221 |
| Total interest income |
156,646 |
152,313 |
156,643 |
158,201 |
155,691 |
| Interest expense |
|
|
|
|
|
| Interest on deposits |
13,675 |
14,504 |
16,208 |
16,794 |
17,273 |
| Interest on Federal Home Loan Bank
advances |
2,821 |
2,764 |
2,835 |
2,817 |
2,867 |
| Interest on notes payable and other
borrowings |
1,132 |
1,154 |
1,566 |
2,024 |
2,274 |
| Interest on secured borrowings - owed to
securitization investors |
— |
— |
— |
795 |
1,743 |
| Interest on subordinated notes |
52 |
59 |
66 |
67 |
126 |
| Interest on junior subordinated
debentures |
3,142 |
3,119 |
3,192 |
3,129 |
3,138 |
| Total interest expense |
20,822 |
21,600 |
23,867 |
25,626 |
27,421 |
| Net interest income |
135,824 |
130,713 |
132,776 |
132,575 |
128,270 |
| Provision for credit losses |
15,382 |
15,687 |
19,546 |
18,799 |
20,691 |
| Net interest income after provision for
credit losses |
120,442 |
115,026 |
113,230 |
113,776 |
107,579 |
| Non-interest income |
|
|
|
|
|
| Wealth management |
15,892 |
14,828 |
13,634 |
13,252 |
13,393 |
| Mortgage banking |
31,734 |
30,145 |
34,702 |
31,127 |
25,607 |
| Service charges on deposit accounts |
5,035 |
4,793 |
4,534 |
4,235 |
3,994 |
| Gains on available-for-sale securities,
net |
2 |
251 |
2,561 |
409 |
1,109 |
| Fees from covered call options |
993 |
1,639 |
2,156 |
2,083 |
3,114 |
| Gain on bargain purchases, net |
— |
— |
85 |
6,633 |
(55) |
| Trading gains (losses), net |
3,260 |
(435) |
(120) |
(998) |
(928) |
| Other |
7,079 |
6,158 |
7,637 |
6,204 |
4,701 |
| Total non-interest income |
63,995 |
57,379 |
65,189 |
62,945 |
50,935 |
| Non-interest expense |
|
|
|
|
|
| Salaries and employee benefits |
79,225 |
77,513 |
76,140 |
75,280 |
68,139 |
| Equipment |
6,413 |
6,184 |
6,468 |
5,888 |
5,466 |
| Occupancy, net |
8,707 |
8,853 |
8,480 |
8,024 |
7,728 |
| Data processing |
4,358 |
4,599 |
4,178 |
4,103 |
3,840 |
| Advertising and marketing |
2,722 |
2,040 |
2,725 |
2,528 |
2,179 |
| Professional fees |
4,191 |
3,221 |
3,158 |
4,653 |
3,847 |
| Amortization of other intangible
assets |
1,164 |
1,120 |
1,108 |
1,078 |
1,089 |
| FDIC insurance |
3,003 |
3,444 |
3,039 |
3,549 |
3,477 |
| OREO expense (income), net |
2,284 |
(1,620) |
5,269 |
3,808 |
5,848 |
| Other |
16,120 |
14,765 |
18,983 |
15,637 |
15,572 |
| Total non-interest expense |
128,187 |
120,119 |
129,548 |
124,548 |
117,185 |
| Income before taxes |
56,250 |
52,286 |
48,871 |
52,173 |
41,329 |
| Income tax expense |
21,943 |
20,234 |
18,782 |
19,871 |
15,734 |
| Net income |
$34,307 |
$32,052 |
$30,089 |
$32,302 |
$25,595 |
| Preferred stock dividends and discount
accretion |
$2,617 |
$2,616 |
$2,616 |
$2,616 |
$2,644 |
| Net income applicable to common
shares |
$31,690 |
$29,436 |
$27,473 |
$29,686 |
$22,951 |
| Net income per common share -
Basic |
$0.85 |
$0.80 |
$0.75 |
$0.82 |
$0.63 |
| Net income per common share -
Diluted |
$0.69 |
$0.65 |
$0.61 |
$0.66 |
$0.52 |
| Cash dividends declared per common
share |
$— |
$0.09 |
$— |
$0.09 |
$— |
| Weighted average common shares
outstanding |
37,486 |
36,976 |
36,543 |
36,381 |
36,329 |
| Dilutive potential common shares |
12,354 |
12,463 |
12,458 |
12,295 |
7,770 |
| Average common shares and dilutive common
shares |
49,840 |
49,439 |
49,001 |
48,676 |
44,099 |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Period End Loan Balances
- 5 Quarter Trends |
| |
|
|
|
|
|
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (Dollars in thousands) |
2013 |
2013 |
2012 |
2012 |
2012 |
| Balance: |
|
|
|
|
|
| Commercial |
$3,120,576 |
$2,872,695 |
$2,914,798 |
$2,771,053 |
$2,673,181 |
| Commercial real estate |
4,093,983 |
3,990,465 |
3,864,118 |
3,699,712 |
3,666,519 |
| Home equity |
758,260 |
759,218 |
788,474 |
807,592 |
820,991 |
| Residential real-estate |
384,961 |
360,652 |
367,213 |
376,678 |
375,494 |
| Premium finance receivables -
commercial |
2,165,734 |
1,997,160 |
1,987,856 |
1,982,945 |
1,830,044 |
| Premium finance receivables - life
insurance |
1,821,147 |
1,753,512 |
1,725,166 |
1,665,620 |
1,656,200 |
| Indirect consumer (1) |
64,521 |
69,245 |
77,333 |
77,378 |
72,482 |
| Consumer and other |
107,710 |
97,365 |
103,985 |
108,922 |
107,931 |
| Total loans, net of unearned income,
excluding covered loans |
$12,516,892 |
$11,900,312 |
$11,828,943 |
$11,489,900 |
$11,202,842 |
| Covered loans |
454,602 |
518,661 |
560,087 |
657,525 |
614,062 |
| Total loans, net of unearned income |
$12,971,494 |
$12,418,973 |
$12,389,030 |
$12,147,425 |
$11,816,904 |
| Mix: |
|
|
|
|
|
| Commercial |
24% |
23% |
24% |
23% |
23% |
| Commercial real estate |
31 |
32 |
31 |
30 |
31 |
| Home equity |
6 |
6 |
6 |
7 |
7 |
| Residential real-estate |
3 |
3 |
3 |
3 |
3 |
| Premium finance receivables -
commercial |
16 |
16 |
16 |
16 |
15 |
| Premium finance receivables - life
insurance |
14 |
14 |
14 |
14 |
14 |
| 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% |
96% |
95% |
95% |
| Covered loans |
4 |
4 |
4 |
5 |
5 |
| Total loans, net of unearned income |
100% |
100% |
100% |
100% |
100% |
| |
|
|
|
|
|
| (1) Includes autos, boats,
snowmobiles and other indirect consumer loans. |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Period End Deposits
Balances - 5 Quarter Trends |
| |
|
|
|
|
|
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (Dollars in thousands) |
2013 |
2013 |
2012 |
2012 |
2012 |
| Balance: |
|
|
|
|
|
| Non-interest bearing |
$2,450,659 |
$2,243,440 |
$2,396,264 |
$2,162,215 |
$2,047,715 |
| NOW |
2,147,004 |
2,043,227 |
2,022,957 |
1,841,743 |
1,780,872 |
| Wealth Management deposits
(1) |
1,083,897 |
868,119 |
991,902 |
979,306 |
954,319 |
| Money Market |
3,037,354 |
2,879,636 |
2,761,498 |
2,596,702 |
2,335,238 |
| Savings |
1,304,619 |
1,258,682 |
1,275,012 |
1,156,466 |
958,295 |
| Time certificates of
deposit |
4,342,321 |
4,669,653 |
4,980,911 |
5,111,533 |
4,981,142 |
| Total deposits |
$14,365,854 |
$13,962,757 |
$14,428,544 |
$13,847,965 |
$13,057,581 |
| Mix: |
|
|
|
|
|
| Non-interest bearing |
17% |
16% |
17% |
16% |
16% |
| NOW |
15 |
15 |
14 |
13 |
14 |
| Wealth Management deposits
(1) |
8 |
6 |
7 |
7 |
7 |
| Money Market |
21 |
21 |
19 |
19 |
18 |
| Savings |
9 |
9 |
9 |
8 |
7 |
| Time certificates of
deposit |
30 |
33 |
34 |
37 |
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 |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (Dollars in thousands) |
2013 |
2013 |
2012 |
2012 |
2012 |
| Net interest income |
$136,409 |
$131,207 |
$133,285 |
$133,076 |
$128,741 |
| Call option income |
993 |
1,639 |
2,156 |
2,083 |
3,114 |
| Net interest income including call option
income |
$137,402 |
$132,846 |
$135,441 |
$135,159 |
$131,855 |
| Yield on earning assets |
4.04% |
3.97% |
4.01% |
4.18% |
4.25% |
| Rate on interest-bearing liabilities |
0.65 |
0.68 |
0.74 |
0.81 |
0.89 |
| Rate spread |
3.39% |
3.29% |
3.27% |
3.37% |
3.36% |
| Net free funds contribution |
0.11 |
0.12 |
0.13 |
0.13 |
0.15 |
| Net interest margin |
3.50 |
3.41 |
3.40 |
3.50 |
3.51 |
| Call option income |
0.03 |
0.04 |
0.05 |
0.05 |
0.08 |
| Net interest margin including call option
income |
3.53% |
3.45% |
3.45% |
3.55% |
3.59% |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Net Interest Margin
(Including Call Option Income - YTD Trends) |
| |
|
|
|
|
|
| |
Six Months Ended June 30, |
Years Ended December
31, |
| (Dollars in thousands) |
2013 |
2012 |
2011 |
2010 |
2009 |
| Net interest income |
$267,616 |
$521,463 |
$463,071 |
$417,564 |
$314,096 |
| Call option income |
2,632 |
10,476 |
13,570 |
2,235 |
1,998 |
| Net interest income including call option
income |
$270,248 |
$531,939 |
$476,641 |
$419,799 |
$316,094 |
| Yield on earning assets |
4.00% |
4.21% |
4.49% |
4.80% |
5.07% |
| Rate on interest-bearing liabilities |
0.67 |
0.86 |
1.23 |
1.61 |
2.29 |
| Rate spread |
3.33% |
3.35% |
3.26% |
3.19% |
2.78% |
| Net free funds contribution |
0.13 |
0.14 |
0.16 |
0.18 |
0.23 |
| Net interest margin |
3.46 |
3.49 |
3.42 |
3.37 |
3.01 |
| Call option income |
0.03 |
0.07 |
0.10 |
0.02 |
0.02 |
| Net interest margin including call option
income |
3.49% |
3.56% |
3.52% |
3.39% |
3.03% |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Quarterly Average
Balances - 5 Quarter Trends |
| |
|
|
|
|
|
| |
Three Months Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (In thousands) |
2013 |
2013 |
2012 |
2012 |
2012 |
| Liquidity management assets |
$2,560,118 |
$2,797,310 |
$2,949,034 |
$2,565,151 |
$2,781,730 |
| Other earning assets |
25,775 |
24,205 |
27,482 |
31,142 |
30,761 |
| Loans, net of unearned income |
12,546,676 |
12,252,558 |
12,001,433 |
11,922,450 |
11,300,395 |
| Covered loans |
491,603 |
536,284 |
626,449 |
597,518 |
659,783 |
| Total earning assets |
$15,624,172 |
$15,610,357 |
$15,604,398 |
$15,116,261 |
$14,772,669 |
| Allowance for loan and covered loan
losses |
(126,455) |
(125,221) |
(135,156) |
(138,740) |
(134,077) |
| Cash and due from banks |
225,712 |
217,345 |
206,914 |
185,435 |
152,118 |
| Other assets |
1,560,556 |
1,554,362 |
1,572,494 |
1,542,473 |
1,528,497 |
| Total assets |
$17,283,985 |
$17,256,843 |
$17,248,650 |
$16,705,429 |
$16,319,207 |
| Interest-bearing deposits |
$11,766,422 |
$11,857,400 |
$11,709,058 |
$11,261,184 |
$10,815,018 |
| Federal Home Loan Bank advances |
434,572 |
414,092 |
414,289 |
441,445 |
514,513 |
| Notes payable and other borrowings |
273,255 |
297,151 |
397,807 |
426,716 |
422,146 |
| Secured borrowings - owed to securitization
investors |
— |
— |
— |
176,904 |
407,259 |
| Subordinated notes |
13,187 |
15,000 |
15,000 |
15,000 |
23,791 |
| Junior subordinated notes |
249,493 |
249,493 |
249,493 |
249,493 |
249,493 |
| Total interest-bearing liabilities |
$12,736,929 |
$12,833,136 |
$12,785,647 |
$12,570,742 |
$12,432,220 |
| Non-interest bearing deposits |
2,379,315 |
2,290,725 |
2,314,935 |
2,092,028 |
1,993,880 |
| Other liabilities |
308,476 |
314,855 |
361,244 |
305,919 |
197,667 |
| Equity |
1,859,265 |
1,818,127 |
1,786,824 |
1,736,740 |
1,695,440 |
| Total liabilities and shareholders'
equity |
$17,283,985 |
$17,256,843 |
$17,248,650 |
$16,705,429 |
$16,319,207 |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Net Interest Margin - 5
Quarter Trends |
| |
|
|
|
|
|
| |
Three Months Ended |
| |
June 30,
2013 |
March 31, 2013 |
December 31, 2012 |
September 30, 2012 |
June 30, 2012 |
| Yield earned on: |
|
|
|
|
|
| Liquidity management assets |
1.70% |
1.50% |
1.33% |
1.41% |
1.69% |
| Other earning assets |
3.13 |
3.02 |
2.95 |
2.83 |
3.04 |
| Loans, net of unearned income |
4.38 |
4.36 |
4.45 |
4.57 |
4.64 |
| Covered loans |
7.40 |
7.96 |
8.10 |
8.25 |
8.50 |
| Total earning assets |
4.04% |
3.97% |
4.01% |
4.18% |
4.25% |
| Rate paid on: |
|
|
|
|
|
| Interest-bearing deposits |
0.47% |
0.50% |
0.55% |
0.59% |
0.64% |
| Federal Home Loan Bank advances |
2.60 |
2.71 |
2.72 |
2.54 |
2.24 |
| Notes payable and other borrowings |
1.66 |
1.57 |
1.57 |
1.89 |
2.17 |
| Secured borrowings - owed to securitization
investors |
— |
— |
— |
1.79 |
1.72 |
| Subordinated notes |
1.58 |
1.56 |
1.72 |
1.75 |
2.10 |
| Junior subordinated notes |
4.98 |
5.00 |
5.01 |
4.91 |
4.97 |
| Total interest-bearing liabilities |
0.65% |
0.68% |
0.74% |
0.81% |
0.89% |
| Interest rate spread |
3.39% |
3.29% |
3.27% |
3.37% |
3.36% |
| Net free funds/contribution |
0.11 |
0.12 |
0.13 |
0.13 |
0.15 |
| Net interest income/Net interest margin |
3.50% |
3.41% |
3.40% |
3.50% |
3.51% |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Non-Interest Income - 5
Quarter Trends |
| |
|
|
|
|
|
| |
Three Months Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (In thousands) |
2013 |
2013 |
2012 |
2012 |
2012 |
| Brokerage |
$7,426 |
$7,267 |
$6,404 |
$6,355 |
$6,396 |
| Trust and asset management |
8,466 |
7,561 |
7,230 |
6,897 |
6,997 |
| Total wealth management |
15,892 |
14,828 |
13,634 |
13,252 |
13,393 |
| Mortgage banking |
31,734 |
30,145 |
34,702 |
31,127 |
25,607 |
| Service charges on deposit accounts |
5,035 |
4,793 |
4,534 |
4,235 |
3,994 |
| Gains on available-for-sale securities,
net |
2 |
251 |
2,561 |
409 |
1,109 |
| Fees from covered call options |
993 |
1,639 |
2,156 |
2,083 |
3,114 |
| Gain on bargain purchases, net |
— |
— |
85 |
6,633 |
(55) |
| Trading gains (losses), net |
3,260 |
(435) |
(120) |
(998) |
(928) |
| Other: |
|
|
|
|
|
| Interest rate swap fees |
1,638 |
2,270 |
2,178 |
2,355 |
2,337 |
| Bank Owned Life Insurance |
902 |
846 |
686 |
810 |
505 |
| Administrative services |
832 |
738 |
867 |
825 |
823 |
| Miscellaneous |
3,707 |
2,304 |
3,906 |
2,214 |
1,036 |
| Total other income |
7,079 |
6,158 |
7,637 |
6,204 |
4,701 |
| Total Non-Interest
Income |
$63,995 |
$57,379 |
$65,189 |
$62,945 |
$50,935 |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Non-Interest Expense - 5
Quarter Trends |
| |
|
|
|
|
|
| |
Three Months Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (In thousands) |
2013 |
2013 |
2012 |
2012 |
2012 |
| Salaries and employee benefits: |
|
|
|
|
|
| Salaries |
$41,671 |
$41,831 |
$40,457 |
$40,173 |
$37,237 |
| Commissions and bonus |
25,143 |
21,276 |
23,968 |
24,041 |
19,388 |
| Benefits |
12,411 |
14,406 |
11,715 |
11,066 |
11,514 |
| Total salaries and employee benefits |
79,225 |
77,513 |
76,140 |
75,280 |
68,139 |
| Equipment |
6,413 |
6,184 |
6,468 |
5,888 |
5,466 |
| Occupancy, net |
8,707 |
8,853 |
8,480 |
8,024 |
7,728 |
| Data processing |
4,358 |
4,599 |
4,178 |
4,103 |
3,840 |
| Advertising and marketing |
2,722 |
2,040 |
2,725 |
2,528 |
2,179 |
| Professional fees |
4,191 |
3,221 |
3,158 |
4,653 |
3,847 |
| Amortization of other intangible assets |
1,164 |
1,120 |
1,108 |
1,078 |
1,089 |
| FDIC insurance |
3,003 |
3,444 |
3,039 |
3,549 |
3,477 |
| OREO expense (income), net |
2,284 |
(1,620) |
5,269 |
3,808 |
5,848 |
| Other: |
|
|
|
|
|
| Commissions - 3rd party brokers |
1,128 |
1,233 |
944 |
1,106 |
1,069 |
| Postage |
1,464 |
1,249 |
1,856 |
1,120 |
1,330 |
| Stationery and supplies |
887 |
934 |
1,095 |
954 |
1,035 |
| Miscellaneous |
12,641 |
11,349 |
15,088 |
12,457 |
12,138 |
| Total other expense |
16,120 |
14,765 |
18,983 |
15,637 |
15,572 |
| Total Non-Interest
Expense |
$128,187 |
$120,119 |
$129,548 |
$124,548 |
$117,185 |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Allowance for Credit
Losses, excluding covered loans - 5 Quarter Trends |
| |
|
|
|
|
|
| |
Three Months Ended |
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (Dollars in thousands) |
2013 |
2013 |
2012 |
2012 |
2012 |
| Allowance for loan losses at
beginning of period |
$110,348 |
$107,351 |
$112,287 |
$111,920 |
$111,023 |
| Provision for credit
losses |
15,133 |
15,367 |
20,672 |
18,192 |
18,394 |
| Other adjustments |
(309) |
(229) |
(289) |
(534) |
(272) |
| Reclassification from/(to) allowance
for unfunded lending-related commitments |
65 |
(213) |
(260) |
626 |
175 |
| Charge-offs: |
|
|
|
|
|
| Commercial |
1,093 |
4,540 |
9,782 |
3,315 |
6,046 |
| Commercial real estate |
14,947 |
3,299 |
9,084 |
17,000 |
9,226 |
| Home equity |
1,785 |
2,397 |
3,496 |
1,543 |
1,732 |
| Residential real estate |
517 |
1,728 |
2,470 |
1,027 |
388 |
| Premium finance receivables -
commercial |
1,306 |
1,068 |
1,284 |
886 |
744 |
| Premium finance receivables - life
insurance |
— |
— |
13 |
— |
3 |
| Indirect consumer |
16 |
32 |
64 |
73 |
33 |
| Consumer and other |
112 |
97 |
570 |
93 |
51 |
| Total charge-offs |
19,776 |
13,161 |
26,763 |
23,937 |
18,223 |
| Recoveries: |
|
|
|
|
|
| Commercial |
268 |
295 |
368 |
349 |
246 |
| Commercial real estate |
584 |
368 |
978 |
5,352 |
174 |
| Home equity |
171 |
162 |
43 |
52 |
171 |
| Residential real estate |
18 |
5 |
9 |
8 |
3 |
| Premium finance receivables -
commercial |
279 |
285 |
250 |
191 |
153 |
| Premium finance receivables - life
insurance |
— |
9 |
15 |
15 |
18 |
| Indirect consumer |
17 |
15 |
27 |
25 |
21 |
| Consumer and other |
44 |
94 |
14 |
28 |
37 |
| Total recoveries |
1,381 |
1,233 |
1,704 |
6,020 |
823 |
| Net charge-offs |
(18,395) |
(11,928) |
(25,059) |
(17,917) |
(17,400) |
| Allowance for loan losses at
period end |
$106,842 |
$110,348 |
$107,351 |
$112,287 |
$111,920 |
| Allowance for unfunded
lending-related commitments at period end |
3,563 |
15,287 |
14,647 |
12,627 |
12,903 |
| Allowance for credit losses at
period end |
$110,405 |
$125,635 |
$121,998 |
$124,914 |
$124,823 |
| Annualized net charge-offs by
category as a percentage of its own respective category's
average: |
|
|
|
|
|
| Commercial |
0.11% |
0.61% |
1.35% |
0.44% |
0.91% |
| Commercial real estate |
1.42 |
0.30 |
0.86 |
1.27 |
1.01 |
| Home equity |
0.85 |
1.17 |
1.72 |
0.73 |
0.76 |
| Residential real estate |
0.26 |
0.93 |
1.19 |
0.44 |
0.20 |
| Premium finance receivables -
commercial |
0.20 |
0.16 |
0.21 |
0.14 |
0.14 |
| Premium finance receivables - life
insurance |
— |
— |
— |
— |
— |
| Indirect consumer |
(0.01) |
0.09 |
0.19 |
0.25 |
0.07 |
| Consumer and other |
0.24 |
0.01 |
1.86 |
0.22 |
0.05 |
| Total loans, net of unearned income,
excluding covered loans |
0.59% |
0.39% |
0.83% |
0.60% |
0.62% |
| Net charge-offs as a percentage
of the provision for credit losses |
121.57% |
77.62% |
121.22% |
98.49% |
94.60% |
| Loans at period-end |
$12,516,892 |
$11,900,312 |
$11,828,943 |
$11,489,900 |
$11,202,842 |
| Allowance for loan losses as a
percentage of loans at period end |
0.85% |
0.93% |
0.91% |
0.98% |
1.00% |
| Allowance for credit losses as a
percentage of loans at period end |
0.88% |
1.06% |
1.03% |
1.09% |
1.11% |
| |
| WINTRUST FINANCIAL
CORPORATION - SUPPLEMENTAL FINANCIAL INFORMATION |
| Non-Performing Assets,
excluding covered assets - 5 Quarter Trends |
| |
|
|
|
|
|
| |
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
| (Dollars in thousands) |
2013 |
2013 |
2012 |
2012 |
2012 |
| Loans past due greater than 90 days
and still accruing(1): |
|
|
|
|
|
| Commercial |
$100 |
$— |
$— |
$— |
$— |
| Commercial real-estate |
3,263 |
— |
— |
— |
— |
| Home equity |
25 |
— |
100 |
— |
— |
| Residential real-estate |
— |
— |
— |
— |
— |
| Premium finance receivables -
commercial |
6,671 |
7,677 |
10,008 |
5,533 |
5,184 |
| Premium finance receivables - life
insurance |
1,212 |
2,256 |
— |
— |
— |
| Indirect consumer |
217 |
145 |
189 |
215 |
234 |
| Consumer and other |
— |
— |
32 |
— |
— |
| Total loans past due greater than 90 days
and still accruing |
11,488 |
10,078 |
10,329 |
5,748 |
5,418 |
| Non-accrual loans(2): |
|
|
|
|
|
| Commercial |
17,248 |
18,373 |
21,737 |
17,711 |
30,473 |
| Commercial real-estate |
54,825 |
61,807 |
49,973 |
58,461 |
56,077 |
| Home equity |
12,322 |
14,891 |
13,423 |
11,504 |
10,583 |
| Residential real-estate |
10,213 |
9,606 |
11,728 |
15,393 |
9,387 |
| Premium finance receivables -
commercial |
13,605 |
12,068 |
9,302 |
7,488 |
7,404 |
| Premium finance receivables - life
insurance |
16 |
20 |
25 |
29 |
— |
| Indirect consumer |
91 |
95 |
55 |
72 |
132 |
| Consumer and other |
1,677 |
1,695 |
1,511 |
1,485 |
1,446 |
| Total non-accrual loans |
109,997 |
118,555 |
107,754 |
112,143 |
115,502 |
| Total non-performing
loans: |
|
|
|
|
|
| Commercial |
17,348 |
18,373 |
21,737 |
17,711 |
30,473 |
| Commercial real-estate |
58,088 |
61,807 |
49,973 |
58,461 |
56,077 |
| Home equity |
12,347 |
14,891 |
13,523 |
11,504 |
10,583 |
| Residential real-estate |
10,213 |
9,606 |
11,728 |
15,393 |
9,387 |
| Premium finance receivables -
commercial |
20,276 |
19,745 |
19,310 |
13,021 |
12,588 |
| Premium finance receivables - life
insurance |
1,228 |
2,276 |
25 |
29 |
— |
| Indirect consumer |
308 |
240 |
244 |
287 |
366 |
| Consumer and other |
1,677 |
1,695 |
1,543 |
1,485 |
1,446 |
| Total non-performing loans |
$121,485 |
$128,633 |
$118,083 |
$117,891 |
$120,920 |
| Other real estate owned |
46,169 |
50,593 |
56,174 |
61,897 |
66,532 |
| Other real estate owned - obtained in
acquisition |
10,856 |
5,584 |
6,717 |
5,480 |
6,021 |
| Other repossessed assets |
1,032 |
4,315 |
— |
— |
— |
| Total non-performing assets |
$179,542 |
$189,125 |
$180,974 |
$185,268 |
$193,473 |
| TDRs performing under the contractual
terms of the loan agreement |
93,810 |
97,122 |
106,119 |
128,391 |
156,590 |
| Total non-performing loans by
category as a percent of its own respective category's period-end
balance: |
|
|
|
|
|
| Commercial |
0.56% |
0.64% |
0.75% |
0.64% |
1.14% |
| Commercial real-estate |
1.42 |
1.55 |
1.29 |
1.58 |
1.53 |
| Home equity |
1.63 |
1.96 |
1.72 |
1.42 |
1.29 |
| Residential real-estate |
2.65 |
2.66 |
3.19 |
4.09 |
2.50 |
| Premium finance receivables -
commercial |
0.94 |
0.99 |
0.97 |
0.66 |
0.69 |
| Premium finance receivables - life
insurance |
0.07 |
0.13 |
— |
— |
— |
| Indirect consumer |
0.48 |
0.35 |
0.32 |
0.37 |
0.51 |
| Consumer and other |
1.56 |
1.74 |
1.48 |
1.36 |
1.34 |
| Total loans, net of unearned income |
0.97% |
1.08% |
1.00% |
1.03% |
1.08% |
| Total non-performing assets as a
percentage of total assets |
1.02% |
1.11% |
1.03% |
1.09% |
1.17% |
| Allowance for loan losses as a
percentage of total non-performing loans |
87.95% |
85.79% |
90.91% |
95.25% |
92.56% |
| |
|
|
|
|
|
| (1) As of the dates shown,
no TDRs were past due greater than 90 days and still accruing
interest. |
| (2) Non-accrual loans
included TDRs totaling $32.4 million, $19.2 million, $20.4 million,
$18.8 million and $15.7 million as of June 30, 2013, March 31,
2013, December 31, 2012, September 30, 2012 and June 30, 2012,
respectively. |
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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