ROSEMONT, Ill., Oct. 14, 2015 (GLOBE NEWSWIRE) --
Wintrust Financial Corporation (“Wintrust” or “the Company”)
(Nasdaq:WTFC) announced net income of $38.4 million or $0.69 per
diluted common share for the third quarter of 2015 compared to net
income of $43.8 million or $0.85 per diluted common share for the
second quarter of 2015 and $40.2 million or $0.79 per diluted
common share for the third quarter of 2014. The Company recorded
net income of $121.2 million or $2.29 per diluted common share for
the first nine months of 2015 compared to net income of $113.3
million or $2.23 per diluted common share for the same period of
2014. Operating net income was $41.8 million or $0.75 per diluted
common share for the third quarter of 2015 compared to $44.5
million or $0.86 per diluted common share in the second quarter of
2015. Operating net income excludes acquisition related charges
totaling $5.7 million and $1.1 million in the third quarter of 2015
and second quarter of 2015, respectively. A table reconciling net
income as reported to operating net income is set forth below and
additional detail is shown in the "Supplemental Financial
Measures/Ratios" section.
Highlights compared with the Second Quarter of
2015*:
- Total loans, excluding covered loans and mortgage loans
held-for-sale, increased by $803 million, or 21% on annualized
basis, to $16.3 billion, which included $455 million of loans
acquired in relation to the bank acquisitions during the
period
- Total assets increased by 24% on an annualized basis to $22.0
billion
- Total deposits increased by $1.1 billion, or 27% on an
annualized basis, to $18.2 billion, which included $802 million
assumed from the bank acquisitions during the period
- Demand deposits comprise 26% of total deposits, increasing from
23% in the second quarter of 2015
- Net interest margin decreased 8 basis points primarily as a
result of lower yields on earning assets due to pricing pressure
and the low rate environment
- Maintained strong capital ratios with a tangible common equity
ratio, assuming full conversion of convertible preferred stock, of
8.0%
- Dividend on Series D preferred stock, issued in June 2015,
reduced earnings per diluted common share by $0.04 per
share
- Completed the acquisitions of North Bank, Suburban Illinois
Bancorp, Inc. and Community Financial Shares, Inc.
- Acquisition-related charges totaled $5.7 million, reducing
earnings per diluted common share by $0.06 per share
- Opened new banking location in Aurora, Illinois along with the
locations acquired, increasing our total banking locations to 160
locations
|
|
Three Months Ended, |
|
|
Nine Months
Ended, |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
|
September 30, |
(Dollars in thousands, except per
share data) |
|
2015 |
|
2015 |
|
2015 |
|
|
2015 |
Key Operating
Measures, Adjusted for Acquisition Related Charges |
|
|
|
|
|
|
|
|
|
Net income per common
share – diluted |
|
$ |
0.75 |
|
|
$ |
0.86 |
|
|
$ |
0.77 |
|
|
|
$ |
2.38 |
|
Net overhead ratio |
|
1.63 |
% |
|
1.51 |
% |
|
1.68 |
% |
|
|
1.61 |
% |
Efficiency ratio |
|
66.67 |
% |
|
65.16 |
% |
|
67.56 |
% |
|
|
66.43 |
% |
Return on average
assets |
|
0.76 |
% |
|
0.88 |
% |
|
0.81 |
% |
|
|
0.82 |
% |
Return on average common
equity |
|
7.26 |
% |
|
8.52 |
% |
|
7.73 |
% |
|
|
7.82 |
% |
Return on average tangible
common equity |
|
9.73 |
% |
|
11.03 |
% |
|
10.07 |
% |
|
|
10.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as
reported |
|
$ |
38,355 |
|
|
$ |
43,831 |
|
|
$ |
39,052 |
|
|
|
$ |
121,238 |
|
Acquisition
Related Charges |
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
1,355 |
|
|
$ |
— |
|
|
$ |
12 |
|
|
|
$ |
1,367 |
|
Commissions
and incentive compensation |
|
264 |
|
|
— |
|
|
3 |
|
|
|
267 |
|
Benefits |
|
107 |
|
|
— |
|
|
— |
|
|
|
107 |
|
Total
salaries and employee benefits |
|
1,726 |
|
|
— |
|
|
15 |
|
|
|
1,741 |
|
Equipment |
|
36 |
|
|
32 |
|
|
— |
|
|
|
68 |
|
Occupancy, net |
|
201 |
|
|
— |
|
|
16 |
|
|
|
217 |
|
Data processing |
|
2,692 |
|
|
653 |
|
|
130 |
|
|
|
3,475 |
|
Advertising and
marketing |
|
1 |
|
|
— |
|
|
5 |
|
|
|
6 |
|
Professional fees |
|
335 |
|
|
417 |
|
|
568 |
|
|
|
1,320 |
|
Other expense |
|
5 |
|
|
21 |
|
|
4 |
|
|
|
30 |
|
Other income |
|
(674 |
) |
|
— |
|
|
— |
|
|
|
(674 |
) |
Total Acquisition Related Charges |
|
$ |
5,670 |
|
|
$ |
1,123 |
|
|
$ |
738 |
|
|
|
$ |
7,531 |
|
Income tax expense on
acquisition related charges |
|
$ |
2,225 |
|
|
$ |
441 |
|
|
$ |
290 |
|
|
|
$ |
2,956 |
|
Acquisition related
charges, net of tax |
|
$ |
3,445 |
|
|
$ |
682 |
|
|
$ |
448 |
|
|
|
$ |
4,575 |
|
Operating net income |
|
$ |
41,800 |
|
|
$ |
44,513 |
|
|
$ |
39,500 |
|
|
|
$ |
125,813 |
|
* See "Supplemental Financial
Measures/Ratios" on pages 16-18 for more information
on non-GAAP measures.
Edward J. Wehmer, President and Chief Executive
Officer, commented, “Wintrust reported operating net income of
$41.8 million for the third quarter of 2015 and operating net
income of $125.8 million on a year-to-date basis. The third quarter
of 2015 was characterized by continued strong loan and deposit
growth coupled with compression in our net interest margin, stable
credit quality metrics, decreased mortgage banking revenue, the
acquisitions of North Bank, Suburban Illinois Bancorp, Inc. and
Community Financial Shares, Inc. and the costs related to these
acquisitions."
Mr. Wehmer continued, “Excluding covered loans
and mortgage loans held-for-sale, we grew our loan portfolio by
$803 million in the third quarter, which included $455 million of
loans acquired in relation to the three bank acquisitions. This
increase in loan volume helped offset the impact on net interest
income from net interest margin compression experienced during the
quarter from competitive pricing pressures and the continued low
rate environment. Our average loan to deposit ratio declined to
91.9% in the third quarter of 2015 compared to 92.8% in the second
quarter of 2015 as the three acquisitions combined had a loan to
deposit ratio of only 56.7%. Our loan pipelines remain consistently
strong. Deposits in the third quarter of 2015 increased $1.1
billion, which included $802 million assumed from the bank
acquisitions during the period. Demand deposits increased $796
million and now comprise 26% of our overall deposit base compared
to 23% at the end of the second quarter of 2015."
Commenting on credit quality, Mr. Wehmer noted,
“Total non-performing assets increased by $19.2 million. This
increase was comprised of $4.6 million of OREO related to the three
acquisitions completed in July, $7.3 million transferring from
covered OREO as the loss sharing period expired, a single customer
relationship totaling $9.3 million being placed in nonaccrual
status at quarter-end, and other activities. Excluding
covered loans, non-performing loans as a percentage of total loans
was 0.53% at the end of the third quarter. The allowance for loan
losses as a percentage of non-performing loans, excluding covered
loans, remained strong at 120%, exhibiting sufficient coverage for
non-performing credits. We believe that the Company's reserves
remain appropriate."
Mr. Wehmer further commented, “Mortgage banking
revenue in the third quarter totaled $27.9 million, a decrease of
$8.1 million compared to the second quarter of 2015 and an increase
of $1.2 million compared to the third quarter of 2014. The decrease
from the second quarter to the third quarter of 2015 resulted from
origination volumes declining to $973.7 million from $1.2 billion
and unfavorable changes in product and channel mix, both combined
with more competitive pricing. Our mortgage banking business
remains well positioned for growth both organically and through
acquisitions."
Turning to the future, Mr. Wehmer stated, “We
anticipate approximately $4 million in additional
charges related to the three previously announced acquisitions
in July over the next two quarters as the conversions and
integrations are completed. This is in addition to the $5.7 million
of various charges incurred in the third quarter related to these
acquisitions. The cost savings from these transactions have
exceeded our initial expectations. We believe we have
achieved approximately two-thirds of our expected annual cost
savings to date and expect to realize additional annual cost
savings of approximately $5 million by the end of the first quarter
of 2016. We remain on track to realize cost savings opportunities
in the future from our existing infrastructure as additional
acquisition opportunities exist in all areas of our business lines.
Evaluating strategic acquisitions and organic branch growth will
continue to be a part of our overall growth strategy with the goal
of becoming Chicago’s bank and Wisconsin’s bank. Our opportunities
for both internal growth and external growth remain consistently
strong. We continue to take a steady and measured approach to
achieve our main objectives of growing franchise value, increasing
profitability, leveraging our expense infrastructure and increasing
shareholder value."
Graphs accompanying this release are available at http://www.globenewswire.com/NewsRoom/AttachmentNg/673e6825-ff7f-48d9-9801-a6bf5134cb26
Wintrust’s key operating measures and growth rates for the third
quarter of 2015, as compared to the sequential and linked
quarters, are shown in the table below:
|
|
|
|
|
|
|
|
% or(5)
basis point (bp)
change from
2nd Quarter
2015 |
|
% or
basis point (bp)
change from
3rd Quarter
2014 |
|
|
Three Months Ended |
|
|
(Dollars in thousands) |
|
September 30,
2015 |
|
June 30,
2015 |
|
September 30,
2014 |
|
|
Net income |
|
$ |
38,355 |
|
|
$ |
43,831 |
|
|
$ |
40,224 |
|
|
(12 |
) |
% |
|
(5 |
) |
% |
Net income per common
share – diluted |
|
$ |
0.69 |
|
|
$ |
0.85 |
|
|
$ |
0.79 |
|
|
(19 |
) |
% |
|
(13 |
) |
% |
Net revenue
(1) |
|
$ |
230,493 |
|
|
$ |
233,905 |
|
|
$ |
209,622 |
|
|
(1 |
) |
% |
|
10 |
|
% |
Net interest income |
|
$ |
165,540 |
|
|
$ |
156,892 |
|
|
$ |
151,670 |
|
|
6 |
|
% |
|
9 |
|
% |
Net interest margin
(2) |
|
3.33 |
% |
|
3.41 |
% |
|
3.46 |
% |
|
(8 |
) |
bp |
|
(13 |
) |
bp |
Net overhead ratio
(2) (3) |
|
1.74 |
% |
|
1.53 |
% |
|
1.67 |
% |
|
21 |
|
bp |
|
7 |
|
bp |
Efficiency ratio (2)
(4) |
|
69.02 |
% |
|
65.64 |
% |
|
65.76 |
% |
|
338 |
|
bp |
|
326 |
|
bp |
Return on average
assets |
|
0.70 |
% |
|
0.87 |
% |
|
0.83 |
% |
|
(17 |
) |
bp |
|
(13 |
) |
bp |
Return on average common
equity |
|
6.60 |
% |
|
8.38 |
% |
|
8.09 |
% |
|
(178 |
) |
bp |
|
(149 |
) |
bp |
Return on average tangible common equity |
|
8.88 |
% |
|
10.86 |
% |
|
10.59 |
% |
|
(198 |
) |
bp |
|
(171 |
) |
bp |
At end of
period |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
22,043,930 |
|
|
$ |
20,799,924 |
|
|
$ |
19,169,345 |
|
|
24 |
|
% |
|
15 |
|
% |
Total loans, excluding
loans held-for-sale, excluding covered loans |
|
$ |
16,316,211 |
|
|
$ |
15,513,650 |
|
|
$ |
14,052,059 |
|
|
21 |
|
% |
|
16 |
|
% |
Total loans, including
loans held-for-sale, excluding covered loans |
|
$ |
16,663,216 |
|
|
$ |
16,010,933 |
|
|
$ |
14,415,362 |
|
|
16 |
|
% |
|
16 |
|
% |
Total deposits |
|
$ |
18,228,469 |
|
|
$ |
17,082,418 |
|
|
$ |
16,065,246 |
|
|
27 |
|
% |
|
13 |
|
% |
Total shareholders’ equity |
|
$ |
2,335,736 |
|
|
$ |
2,264,982 |
|
|
$ |
2,028,508 |
|
|
12 |
|
% |
|
15 |
|
% |
(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 “Financial Highlights.”
Financial Performance Overview
– Third Quarter 2015
For the third quarter of 2015, net interest
income totaled $165.5 million, an increase of $8.6 million as
compared to the second quarter of 2015 and an increase of $13.9
million as compared to the third quarter of 2014. The changes
in net interest income on both a sequential and linked quarter
basis are the result of the following:
- Net interest income increased $8.6 million in the third quarter
of 2015 compared to the second quarter of 2015, due to:
- An increase in total interest income of $10.1 million resulting
primarily from loan growth during the period and one additional day
of interest, partially offset by a reduction in yield on earning
assets.
- Interest expense increased $1.5 million primarily as a result
of an increase in the average balance of interest-bearing
liabilities, a two basis point increase in the rate on average
interest bearing liabilities and one additional day in the
quarter.
- Combined, the increase in interest income of $10.1 million and
the increase in interest expense of $1.5 million created the $8.6
million increase in net interest income.
- Net interest income increased $13.9 million in the third
quarter of 2015 compared to the third quarter of 2014, due to:
- Average loans, excluding covered loans, increased by $2.1
billion. The growth in average loans, excluding covered
loans, was partially offset by a 17 basis point decline in the
yield on earning assets, resulting in an increase in total interest
income of $14.7 million.
- An increase in interest bearing deposits, an increase in
borrowings under the Company's term credit facility at the end of
the second quarter of 2015 and the completion of the Canadian
secured borrowing transaction at the end of the fourth quarter of
2014 resulted in a $834,000 increase in interest expense.
- Combined, the increase in interest income of $14.7 million and
the increase in interest expense of $834,000 created the $13.9
million increase in net interest income.
The net interest margin, on a fully taxable
equivalent basis, for the third quarter of 2015 was 3.33% compared
to 3.41% for the second quarter of 2015 and 3.46% for the third
quarter of 2014. The reduction in net interest margin, on a
fully taxable equivalent basis, compared to the second quarter of
2015 and third quarter of 2014 is primarily the result of a decline
in yields on loans and other earning assets (see "Net Interest
Income" section later in this release for further detail).
Non-interest income totaled $65.0 million in the
third quarter of 2015, decreasing $12.1 million, or 16%, compared
to the second quarter of 2015 and increasing $7.0 million, or 12%,
compared to the third quarter of 2014. The decrease in non-interest
income in the third quarter of 2015 compared to the second quarter
of 2015 is primarily attributable to lower mortgage banking
revenue, the recognition of a $1.5 million bank owned life
insurance ("BOLI") death benefit in the second quarter of 2015 and
lower fees from covered call option contracts, partially offset by
increased service charges on deposits. The increase in
non-interest income in the third quarter of 2015 compared to the
third quarter of 2014 was primarily attributable to an increase in
mortgage banking revenues, fees from covered call options, higher
customer interest rate swap fees and an increase in service charges
on deposits (see "Non-Interest Income" section later in this
release for further detail).
Non-interest expense totaled $160.0 million in
the third quarter of 2015, increasing $5.7 million, or 4%, compared
to the second quarter of 2015 and increasing $21.5 million, or 16%,
compared to the third quarter of 2014. The increase in the
current quarter compared to the second quarter of 2015 can be
primarily attributed to an increase in acquisition related charges,
higher salary and employee benefit costs caused by the addition of
employees from the various acquisitions and higher staffing levels
as the Company grows, increased data processing expenses, partially
offset by a decrease in OREO expenses. The increase in the
third quarter of 2015 compared to the third quarter of 2014 was
primarily attributable to acquisition related charges in the
current quarter, higher salary and employee benefit costs caused by
the addition of employees from the various acquisitions and higher
staffing levels as the Company grows as well as higher commissions
and incentive compensation, increased equipment and occupancy, data
processing and professional fees, and higher marketing 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 Nine Months of 2015
For the first nine months of 2015, net interest
income totaled $474.3 million, an increase of $29.5 million as
compared to the first nine months of 2014 as a result of the
following:
- Average earning assets increased by $2.1 billion, primarily
comprised of average loan growth, excluding covered loans, of $1.9
billion and an increase of $216.9 million in the average balance of
liquidity management assets, partially offset by a decrease of
$96.3 million in the average balance of covered loans. The growth
in average total loans, excluding covered loans, included an
increase of $691.0 million in commercial loans, $523.3 million in
commercial real estate loans, $463.2 million in life insurance
premium finance receivables, $99.3 million in mortgage loans
held-for-sale, $88.6 million in commercial premium finance
receivables and $78.1 million in home equity and other loans.
- The average earning asset growth of $2.1 billion, partially
offset by a 20 basis point decrease in yield on earning assets,
resulted in an increase in total interest income of $32.4
million.
- Funding mix remained relatively consistent as average demand
deposits increased $982.2 million, average interest bearing
deposits increased $789.3 million and average wholesale borrowings
increased $125.2 million. The increase in average interest bearing
liabilities, partially offset by a one basis point decline in rate
during the current period, resulted in a $2.9 million increase in
interest expense.
- Combined, the increase in interest income of $32.4 million and
the increase in interest expense of $2.9 million created the $29.5
million increase in net interest income.
The net interest margin, on a fully taxable
equivalent basis, for the first nine months of 2015 was 3.39%
compared to 3.56% for the first nine months of 2014 (see "Net
Interest Income" section later in this release for further
detail).
Non-interest income totaled $206.5 million in
the first nine months of 2015, increasing $48.9 million, or 31%,
compared to the first nine months of 2014. The increase in
non-interest income in the first nine months of 2015 compared to
the first nine months of 2014 is primarily attributable to an
increase in mortgage banking and wealth management revenues, fees
from covered call options, the recognition of a $1.5 million BOLI
death benefit, increased service charges and higher fees on
customer interest rate swap transactions (see "Non-Interest Income"
section later in this release for further detail).
Non-interest expense totaled $461.6 million in
the first nine months of 2015, increasing $58.2 million, or 14%,
compared to the first nine months of 2014. The increase in
the first nine months of 2015 compared to the first nine months of
2014 was primarily attributable to acquisition related charges
during the current year, higher salary and employee benefit costs
caused by the addition of employees from the various acquisitions
and larger staffing as the Company grows as well as higher
commissions and incentive compensation, and increased equipment,
occupancy, data processing and professional fees, and increased
marketing expenses, partially offset by a decrease in OREO expenses
(see "Non-Interest Expense" section later in this release for
further detail).
Financial Performance Overview
– Credit Quality
The ratio of non-performing assets to total
assets was 0.63% as of September 30, 2015, compared to 0.57%
at June 30, 2015, and 0.69% at September 30, 2014.
Non-performing assets, excluding covered assets, totaled $138.0
million at September 30, 2015, compared to $118.9 million at
June 30, 2015 and $131.7 million at September 30,
2014.
Non-performing loans, excluding covered loans,
totaled $86.0 million, or 0.53% of total loans, at
September 30, 2015, compared to $76.6 million, or 0.49% of
total loans, at June 30, 2015 and $81.1 million, or 0.58% of
total loans, at September 30, 2014. The increase in
non-performing loans, excluding covered loans, compared to
June 30, 2015 is primarily the result of a single customer
relationship totaling $9.3 million being placed in nonaccrual
status at quarter-end. Compared to September 30, 2014, the
increase is primarily the result of a $2.7 million increase in the
home equity loan portfolio, a $1.6 million increase in the
commercial loan portfolio and a $1.3 million increase in the
commercial real-estate portfolio. OREO, excluding covered OREO, of
$51.9 million at September 30, 2015 increased $9.8 million
compared to $42.1 million at June 30, 2015 and decreased $1.5
million compared to $50.4 million at September 30, 2014. The
increase in OREO, excluding covered OREO, compared to June 30,
2015 is primarily the result of the addition of properties from
acquisitions and properties transferring from covered OREO as the
loss sharing period expired during the period.
The provision for credit losses, excluding the
provision for covered loan losses, totaled $8.7 million for the
third quarter of 2015 compared to $9.7 million for the second
quarter of 2015 and $6.0 million for the third quarter of 2014. The
higher provision for credit losses in the third quarter of 2015
compared to the same period of 2014 was partly due to loan growth
since the prior period.
Net charge-offs as a percentage of loans,
excluding covered loans, for the third quarter of 2015 totaled 14
basis points on an annualized basis compared to ten basis points on
an annualized basis in the second quarter of 2015 and 19 basis
points on an annualized basis in the third quarter of 2014.
Net charge-offs totaled $5.7 million in the third quarter of 2015,
a $1.8 million increase from $3.9 million in the second quarter of
2015 and a $1.3 million decrease from $7.0 million in the third
quarter of 2014.
Excluding the allowance for covered loan losses,
the allowance for credit losses at September 30, 2015 totaled
$103.9 million, or 0.64% of total loans, compared to $101.1
million, or 0.65% of total loans, at June 30, 2015 and $91.8
million, or 0.65% of total loans, at September 30, 2014.
The allowance for unfunded lending-related commitments totaled
$926,000 as of September 30, 2015 compared to $884,000 as of
June 30, 2015 and $822,000 as of September 30,
2014.
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 |
|
Nine Months Ended |
(In thousands, except per share
data) |
|
|
September 30,
2015 |
|
June 30,
2015 |
|
September 30,
2014 |
|
September 30,
2015 |
|
September 30,
2014 |
Net income |
|
|
$ |
38,355 |
|
|
$ |
43,831 |
|
|
$ |
40,224 |
|
|
$ |
121,238 |
|
|
$ |
113,265 |
|
Less: Preferred stock
dividends and discount accretion |
|
|
4,079 |
|
|
1,580 |
|
|
1,581 |
|
|
7,240 |
|
|
4,743 |
|
Net income applicable to
common shares—Basic |
(A) |
|
34,276 |
|
|
42,251 |
|
|
38,643 |
|
|
113,998 |
|
|
108,522 |
|
Add: Dividends on
convertible preferred stock, if dilutive |
|
|
1,579 |
|
|
1,580 |
|
|
1,581 |
|
|
4,740 |
|
|
4,743 |
|
Net income applicable to
common shares—Diluted |
(B) |
|
35,855 |
|
|
43,831 |
|
|
40,224 |
|
|
118,738 |
|
|
113,265 |
|
Weighted average common
shares outstanding |
(C) |
|
48,158 |
|
|
47,567 |
|
|
46,639 |
|
|
47,658 |
|
|
46,453 |
|
Effect of dilutive
potential common shares: |
|
|
|
|
|
|
|
|
|
|
|
Common stock equivalents |
|
|
978 |
|
|
1,085 |
|
|
1,166 |
|
|
1,070 |
|
|
1,274 |
|
Convertible preferred stock, if
dilutive |
|
|
3,071 |
|
|
3,071 |
|
|
3,075 |
|
|
3,071 |
|
|
3,075 |
|
Weighted average common
shares and effect of dilutive potential common shares |
(D) |
|
52,207 |
|
|
51,723 |
|
|
50,880 |
|
|
51,799 |
|
|
50,802 |
|
Net income per common
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
(A/C) |
|
$ |
0.71 |
|
|
$ |
0.89 |
|
|
$ |
0.83 |
|
|
$ |
2.39 |
|
|
$ |
2.34 |
|
Diluted |
(B/D) |
|
$ |
0.69 |
|
|
$ |
0.85 |
|
|
$ |
0.79 |
|
|
$ |
2.29 |
|
|
$ |
2.23 |
|
Potentially dilutive common shares can result from stock options,
restricted stock unit awards, stock warrants, the Company’s
convertible preferred stock 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. Due to weighted average
share differences, when stated on a quarter and year-to-date basis,
the earnings per share for the year ended September 30, 2015 does
not equal the sum of the respective earnings per share for the
three quarters then ended.
WINTRUST FINANCIAL CORPORATION |
Selected Financial
Highlights
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
(Dollars in thousands, except per
share data) |
|
September 30,
2015 |
|
June 30,
2015 |
|
September 30,
2014 |
|
September 30,
2015 |
|
September 30,
2014 |
Selected Financial
Condition Data (at end of period): |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
22,043,930 |
|
|
$ |
20,799,924 |
|
|
$ |
19,169,345 |
|
|
|
|
|
Total loans, excluding
loans held-for-sale and covered loans |
|
16,316,211 |
|
|
15,513,650 |
|
|
14,052,059 |
|
|
|
|
|
Total deposits |
|
18,228,469 |
|
|
17,082,418 |
|
|
16,065,246 |
|
|
|
|
|
Junior subordinated
debentures |
|
268,566 |
|
|
249,493 |
|
|
249,493 |
|
|
|
|
|
Total shareholders’
equity |
|
2,335,736 |
|
|
2,264,982 |
|
|
2,028,508 |
|
|
|
|
|
Selected
Statements of Income Data: |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
165,540 |
|
|
$ |
156,892 |
|
|
$ |
151,670 |
|
|
$ |
474,323 |
|
|
444,856 |
|
Net revenue
(1) |
|
230,493 |
|
|
233,905 |
|
|
209,622 |
|
|
680,830 |
|
|
602,439 |
|
Net income |
|
38,355 |
|
|
43,831 |
|
|
40,224 |
|
|
121,238 |
|
|
113,265 |
|
Net income per common
share – Basic |
|
$ |
0.71 |
|
|
$ |
0.89 |
|
|
$ |
0.83 |
|
|
$ |
2.39 |
|
|
$ |
2.34 |
|
Net income per common
share – Diluted |
|
$ |
0.69 |
|
|
$ |
0.85 |
|
|
$ |
0.79 |
|
|
$ |
2.29 |
|
|
$ |
2.23 |
|
Selected Financial
Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest margin
(2) |
|
3.33 |
% |
|
3.41 |
% |
|
3.46 |
% |
|
3.39 |
% |
|
3.56 |
% |
Non-interest income to
average assets |
|
1.19 |
% |
|
1.52 |
% |
|
1.20 |
% |
|
1.34 |
% |
|
1.14 |
% |
Non-interest expense to
average assets |
|
2.93 |
% |
|
3.06 |
% |
|
2.87 |
% |
|
3.00 |
% |
|
2.92 |
% |
Net overhead ratio
(2) (3) |
|
1.74 |
% |
|
1.53 |
% |
|
1.67 |
% |
|
1.66 |
% |
|
1.78 |
% |
Efficiency ratio
(2) (4) |
|
69.02 |
% |
|
65.64 |
% |
|
65.76 |
% |
|
67.50 |
% |
|
66.65 |
% |
Return on average
assets |
|
0.70 |
% |
|
0.87 |
% |
|
0.83 |
% |
|
0.79 |
% |
|
0.82 |
% |
Return on average common
equity |
|
6.60 |
% |
|
8.38 |
% |
|
8.09 |
% |
|
7.53 |
% |
|
7.86 |
% |
Return on average tangible
common equity (2) |
|
8.88 |
% |
|
10.86 |
% |
|
10.59 |
% |
|
9.90 |
% |
|
10.25 |
% |
Average total assets |
|
$ |
21,688,450 |
|
|
$ |
20,256,996 |
|
|
$ |
19,127,346 |
|
|
$ |
20,597,383 |
|
|
$ |
18,474,609 |
|
Average total
shareholders’ equity |
|
2,310,511 |
|
|
2,156,128 |
|
|
2,020,903 |
|
|
2,194,384 |
|
|
1,972,425 |
|
Average loans to average
deposits ratio (excluding covered loans) |
|
91.9 |
% |
|
92.8 |
% |
|
90.1 |
% |
|
92.0 |
% |
|
90.0 |
% |
Average loans to average
deposits ratio (including covered loans) |
|
92.9 |
% |
|
94.0 |
% |
|
91.8 |
% |
|
93.2 |
% |
|
91.9 |
% |
Common Share Data at
end of period: |
|
|
|
|
|
|
|
|
|
|
Market price per common
share |
|
$ |
53.43 |
|
|
$ |
53.38 |
|
|
$ |
44.67 |
|
|
|
|
|
Book value per common
share (2) |
|
$ |
43.12 |
|
|
$ |
42.24 |
|
|
$ |
40.74 |
|
|
|
|
|
Tangible common book
value per share (2) |
|
$ |
32.83 |
|
|
$ |
33.02 |
|
|
$ |
31.60 |
|
|
|
|
|
Common shares
outstanding |
|
48,336,870 |
|
|
47,677,257 |
|
|
46,691,047 |
|
|
|
|
|
Other Data at end
of period:(8) |
|
|
|
|
|
|
|
|
|
|
Leverage Ratio
(5) |
|
9.4 |
% |
|
9.8 |
% |
|
10.0 |
% |
|
|
|
|
Tier 1 capital to
risk-weighted assets (5) |
|
10.4 |
% |
|
10.7 |
% |
|
11.7 |
% |
|
|
|
|
Common equity Tier 1
capital to risk-weighted assets (5) |
|
8.8 |
% |
|
9.0 |
% |
|
N/A |
|
|
|
|
Total capital to
risk-weighted assets (5) |
|
12.7 |
% |
|
13.1 |
% |
|
13.1 |
% |
|
|
|
|
Tangible common equity
ratio (TCE) (2)(7) |
|
7.4 |
% |
|
7.7 |
% |
|
7.9 |
% |
|
|
|
|
Tangible common equity
ratio, assuming full conversion of convertible preferred stock
(2) (7) |
|
8.0 |
% |
|
8.4 |
% |
|
8.6 |
% |
|
|
|
|
Allowance for credit
losses (6) |
|
$ |
103,922 |
|
|
$ |
101,088 |
|
|
$ |
91,841 |
|
|
|
|
|
Non-performing loans |
|
$ |
85,976 |
|
|
$ |
76,554 |
|
|
$ |
81,070 |
|
|
|
|
|
Allowance for credit
losses to total loans (6) |
|
0.64 |
% |
|
0.65 |
% |
|
0.65 |
% |
|
|
|
|
Non-performing loans to
total loans |
|
0.53 |
% |
|
0.49 |
% |
|
0.58 |
% |
|
|
|
|
Number of: |
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
|
|
|
Banking offices |
|
160 |
|
|
147 |
|
|
139 |
|
|
|
|
|
(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. As of January 1, 2015 capital ratios are
calculated under the requirements of Basel III.
(6) The allowance for credit losses includes both the
allowance for loan losses and the allowance for unfunded
lending-related commitments, but excludes the allowance for covered
loan losses.
(7) Total shareholders’ equity minus preferred stock and
total intangible assets divided by total assets minus total
intangible assets.
(8) Asset quality ratios exclude covered loans.
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CONDITION
|
|
(In thousands) |
|
(Unaudited)
September 30,
2015 |
|
December 31,
2014 |
|
(Unaudited)
September 30,
2014 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
247,341 |
|
|
$ |
225,136 |
|
|
$ |
260,694 |
|
Federal funds sold and
securities purchased under resale agreements |
|
3,314 |
|
|
5,571 |
|
|
26,722 |
|
Interest bearing deposits
with banks |
|
701,106 |
|
|
998,437 |
|
|
620,370 |
|
Available-for-sale
securities, at fair value |
|
2,214,281 |
|
|
1,792,078 |
|
|
1,782,648 |
|
Trading account
securities |
|
3,312 |
|
|
1,206 |
|
|
6,015 |
|
Federal Home Loan Bank and
Federal Reserve Bank stock |
|
90,308 |
|
|
91,582 |
|
|
80,951 |
|
Brokerage customer
receivables |
|
28,293 |
|
|
24,221 |
|
|
26,624 |
|
Mortgage loans
held-for-sale |
|
347,005 |
|
|
351,290 |
|
|
363,303 |
|
Loans, net of unearned
income, excluding covered loans |
|
16,316,211 |
|
|
14,409,398 |
|
|
14,052,059 |
|
Covered loans |
|
168,609 |
|
|
226,709 |
|
|
254,605 |
|
Total loans |
|
16,484,820 |
|
|
14,636,107 |
|
|
14,306,664 |
|
Less: Allowance for loan
losses |
|
102,996 |
|
|
91,705 |
|
|
91,019 |
|
Less: Allowance for covered loan
losses |
|
2,918 |
|
|
2,131 |
|
|
2,655 |
|
Net loans |
|
16,378,906 |
|
|
14,542,271 |
|
|
14,212,990 |
|
Premises and equipment,
net |
|
587,348 |
|
|
555,228 |
|
|
555,241 |
|
FDIC indemnification
asset |
|
— |
|
|
11,846 |
|
|
27,359 |
|
Accrued interest
receivable and other assets |
|
667,036 |
|
|
501,882 |
|
|
494,213 |
|
Trade date securities
receivable |
|
277,981 |
|
|
485,534 |
|
|
285,627 |
|
Goodwill |
|
472,166 |
|
|
405,634 |
|
|
406,604 |
|
Other intangible
assets |
|
25,533 |
|
|
18,811 |
|
|
19,984 |
|
Total assets |
|
$ |
22,043,930 |
|
|
$ |
20,010,727 |
|
|
$ |
19,169,345 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Non-interest bearing |
|
$ |
4,705,994 |
|
|
$ |
3,518,685 |
|
|
$ |
3,253,477 |
|
Interest bearing |
|
13,522,475 |
|
|
12,763,159 |
|
|
12,811,769 |
|
Total deposits |
|
18,228,469 |
|
|
16,281,844 |
|
|
16,065,246 |
|
Federal Home Loan Bank
advances |
|
451,330 |
|
|
733,050 |
|
|
347,500 |
|
Other borrowings |
|
259,978 |
|
|
196,465 |
|
|
51,483 |
|
Subordinated notes |
|
140,000 |
|
|
140,000 |
|
|
140,000 |
|
Junior subordinated
debentures |
|
268,566 |
|
|
249,493 |
|
|
249,493 |
|
Trade date securities
payable |
|
617 |
|
|
3,828 |
|
|
— |
|
Accrued interest payable
and other liabilities |
|
359,234 |
|
|
336,225 |
|
|
287,115 |
|
Total liabilities |
|
19,708,194 |
|
|
17,940,905 |
|
|
17,140,837 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
Preferred stock |
|
251,312 |
|
|
126,467 |
|
|
126,467 |
|
Common stock |
|
48,422 |
|
|
46,881 |
|
|
46,766 |
|
Surplus |
|
1,187,407 |
|
|
1,133,955 |
|
|
1,129,975 |
|
Treasury stock |
|
(3,964 |
) |
|
(3,549 |
) |
|
(3,519 |
) |
Retained earnings |
|
901,652 |
|
|
803,400 |
|
|
771,519 |
|
Accumulated other
comprehensive loss |
|
(49,093 |
) |
|
(37,332 |
) |
|
(42,700 |
) |
Total shareholders’ equity |
|
2,335,736 |
|
|
2,069,822 |
|
|
2,028,508 |
|
Total liabilities and
shareholders’ equity |
|
$ |
22,043,930 |
|
|
$ |
20,010,727 |
|
|
$ |
19,169,345 |
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED) |
|
|
Three Months Ended |
|
Nine Months Ended |
(In thousands, except per share
data) |
September 30,
2015 |
|
June 30,
2015 |
|
September 30,
2014 |
|
September 30,
2015 |
|
September 30,
2014 |
Interest
income |
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
167,831 |
|
|
$ |
159,823 |
|
|
$ |
156,534 |
|
|
$ |
482,330 |
|
|
$ |
455,548 |
|
Interest bearing deposits with
banks |
372 |
|
|
305 |
|
|
409 |
|
|
993 |
|
|
977 |
|
Federal funds sold and securities
purchased under resale agreements |
1 |
|
|
1 |
|
|
12 |
|
|
4 |
|
|
22 |
|
Available-for-sale securities |
16,130 |
|
|
14,071 |
|
|
12,767 |
|
|
44,601 |
|
|
39,190 |
|
Trading account securities |
19 |
|
|
51 |
|
|
20 |
|
|
83 |
|
|
34 |
|
Federal Home Loan Bank and Federal
Reserve Bank stock |
821 |
|
|
785 |
|
|
733 |
|
|
2,375 |
|
|
2,171 |
|
Brokerage customer receivables |
205 |
|
|
205 |
|
|
201 |
|
|
591 |
|
|
610 |
|
Total interest income |
185,379 |
|
|
175,241 |
|
|
170,676 |
|
|
530,977 |
|
|
498,552 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
Interest on deposits |
12,436 |
|
|
11,996 |
|
|
12,298 |
|
|
36,246 |
|
|
35,980 |
|
Interest on Federal Home Loan Bank
advances |
2,458 |
|
|
1,812 |
|
|
2,641 |
|
|
6,426 |
|
|
7,989 |
|
Interest on other borrowings |
1,045 |
|
|
787 |
|
|
200 |
|
|
2,620 |
|
|
1,460 |
|
Interest on subordinated notes |
1,776 |
|
|
1,777 |
|
|
1,776 |
|
|
5,328 |
|
|
2,130 |
|
Interest on junior subordinated
debentures |
2,124 |
|
|
1,977 |
|
|
2,091 |
|
|
6,034 |
|
|
6,137 |
|
Total interest expense |
19,839 |
|
|
18,349 |
|
|
19,006 |
|
|
56,654 |
|
|
53,696 |
|
Net interest
income |
165,540 |
|
|
156,892 |
|
|
151,670 |
|
|
474,323 |
|
|
444,856 |
|
Provision for credit
losses |
8,322 |
|
|
9,482 |
|
|
5,864 |
|
|
23,883 |
|
|
14,404 |
|
Net interest income after
provision for credit losses |
157,218 |
|
|
147,410 |
|
|
145,806 |
|
|
450,440 |
|
|
430,452 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
Wealth management |
18,243 |
|
|
18,476 |
|
|
17,659 |
|
|
54,819 |
|
|
52,694 |
|
Mortgage banking |
27,887 |
|
|
36,007 |
|
|
26,691 |
|
|
91,694 |
|
|
66,923 |
|
Service charges on deposit
accounts |
7,403 |
|
|
6,474 |
|
|
6,084 |
|
|
20,174 |
|
|
17,118 |
|
(Losses) gains on
available-for-sale securities, net |
(98 |
) |
|
(24 |
) |
|
(153 |
) |
|
402 |
|
|
(522 |
) |
Fees from covered call options |
2,810 |
|
|
4,565 |
|
|
2,107 |
|
|
11,735 |
|
|
4,893 |
|
Trading (losses) gains, net |
(135 |
) |
|
160 |
|
|
293 |
|
|
(452 |
) |
|
(1,102 |
) |
Other |
8,843 |
|
|
11,355 |
|
|
5,271 |
|
|
28,135 |
|
|
17,579 |
|
Total non-interest income |
64,953 |
|
|
77,013 |
|
|
57,952 |
|
|
206,507 |
|
|
157,583 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
97,749 |
|
|
94,421 |
|
|
85,976 |
|
|
282,300 |
|
|
247,873 |
|
Equipment |
8,887 |
|
|
7,914 |
|
|
7,570 |
|
|
24,637 |
|
|
22,196 |
|
Occupancy, net |
12,066 |
|
|
11,401 |
|
|
10,446 |
|
|
35,818 |
|
|
31,289 |
|
Data processing |
8,127 |
|
|
6,081 |
|
|
4,765 |
|
|
19,656 |
|
|
14,023 |
|
Advertising and marketing |
6,237 |
|
|
6,406 |
|
|
3,528 |
|
|
16,550 |
|
|
9,902 |
|
Professional fees |
4,100 |
|
|
5,074 |
|
|
4,035 |
|
|
13,838 |
|
|
11,535 |
|
Amortization of other intangible
assets |
1,350 |
|
|
934 |
|
|
1,202 |
|
|
3,297 |
|
|
3,521 |
|
FDIC insurance |
3,035 |
|
|
3,047 |
|
|
3,211 |
|
|
9,069 |
|
|
9,358 |
|
OREO expense, net |
(367 |
) |
|
841 |
|
|
581 |
|
|
1,885 |
|
|
7,047 |
|
Other |
18,790 |
|
|
18,178 |
|
|
17,186 |
|
|
54,539 |
|
|
46,662 |
|
Total non-interest expense |
159,974 |
|
|
154,297 |
|
|
138,500 |
|
|
461,589 |
|
|
403,406 |
|
Income before taxes |
62,197 |
|
|
70,126 |
|
|
65,258 |
|
|
195,358 |
|
|
184,629 |
|
Income tax expense |
23,842 |
|
|
26,295 |
|
|
25,034 |
|
|
74,120 |
|
|
71,364 |
|
Net
income |
$ |
38,355 |
|
|
$ |
43,831 |
|
|
$ |
40,224 |
|
|
$ |
121,238 |
|
|
$ |
113,265 |
|
Preferred stock dividends
and discount accretion |
4,079 |
|
|
1,580 |
|
|
1,581 |
|
|
7,240 |
|
|
4,743 |
|
Net income
applicable to common shares |
$ |
34,276 |
|
|
$ |
42,251 |
|
|
$ |
38,643 |
|
|
$ |
113,998 |
|
|
$ |
108,522 |
|
Net income per
common share - Basic |
$ |
0.71 |
|
|
$ |
0.89 |
|
|
$ |
0.83 |
|
|
$ |
2.39 |
|
|
$ |
2.34 |
|
Net income per
common share - Diluted |
$ |
0.69 |
|
|
$ |
0.85 |
|
|
$ |
0.79 |
|
|
$ |
2.29 |
|
|
$ |
2.23 |
|
Cash dividends
declared per common share |
$ |
0.11 |
|
|
$ |
0.11 |
|
|
$ |
0.10 |
|
|
$ |
0.33 |
|
|
$ |
0.30 |
|
Weighted average common
shares outstanding |
48,158 |
|
|
47,567 |
|
|
46,639 |
|
|
47,658 |
|
|
46,453 |
|
Dilutive potential common
shares |
4,049 |
|
|
4,156 |
|
|
4,241 |
|
|
4,141 |
|
|
4,349 |
|
Average common shares and
dilutive common shares |
52,207 |
|
|
51,723 |
|
|
50,880 |
|
|
51,799 |
|
|
50,802 |
|
SUPPLEMENTAL FINANCIAL MEASURES/RATIOS
The accounting and reporting policies of
Wintrust conform to generally accepted accounting principles
(“GAAP”) in the United States and prevailing practices in the
banking industry. However, certain non-GAAP performance measures
and ratios are used by management to evaluate and measure the
Company’s performance. These include taxable-equivalent net
interest income (including its individual components), net interest
margin (including its individual components), the efficiency ratio,
tangible common equity ratio, tangible common book value per share
and return on average tangible common equity. In addition, certain
operating measures and ratios are adjusted for acquisition related
charges. These operating measures and ratios include operating net
income, the efficiency ratio, the net overhead ratio, return on
average assets, return on average common equity, return on average
tangible common equity and net income per diluted common share.
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. Management
considers operating net income, which is reported net income
excluding acquisition related charges, as a useful measure of
operating performance. Acquisition related charges are
specific costs incurred by the Company as a result of an
acquisition that are not expected to continue in subsequent
periods. The Company excludes acquisition related charges from
reported net income as well as certain operating measures and
ratios noted above to provide better comparability between
periods.
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 five quarters.
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
September 30, |
|
September 30, |
(Dollars and shares in
thousands) |
2015 |
|
2015 |
|
2015 |
|
2014 |
|
2014 |
|
2015 |
|
2014 |
Calculation of Net
Interest Margin and Efficiency Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Interest
Income (GAAP) |
$ |
185,379 |
|
|
$ |
175,241 |
|
|
$ |
170,357 |
|
|
$ |
172,715 |
|
|
$ |
170,676 |
|
|
$ |
530,977 |
|
|
$ |
498,552 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
- Loans |
346 |
|
|
328 |
|
|
327 |
|
|
301 |
|
|
315 |
|
|
1,001 |
|
|
827 |
|
- Liquidity Management
Assets |
841 |
|
|
787 |
|
|
727 |
|
|
555 |
|
|
502 |
|
|
2,355 |
|
|
1,445 |
|
- Other Earning Assets |
10 |
|
|
27 |
|
|
7 |
|
|
24 |
|
|
11 |
|
|
44 |
|
|
17 |
|
Interest Income - FTE |
$ |
186,576 |
|
|
$ |
176,383 |
|
|
$ |
171,418 |
|
|
$ |
173,595 |
|
|
$ |
171,504 |
|
|
$ |
534,377 |
|
|
$ |
500,841 |
|
(B) Interest
Expense (GAAP) |
19,839 |
|
|
18,349 |
|
|
18,466 |
|
|
18,996 |
|
|
19,006 |
|
|
56,654 |
|
|
53,696 |
|
Net interest income - FTE |
$ |
166,737 |
|
|
$ |
158,034 |
|
|
$ |
152,952 |
|
|
$ |
154,599 |
|
|
$ |
152,498 |
|
|
$ |
477,723 |
|
|
$ |
447,145 |
|
(C) Net Interest
Income (GAAP) (A minus B) |
$ |
165,540 |
|
|
$ |
156,892 |
|
|
$ |
151,891 |
|
|
$ |
153,719 |
|
|
$ |
151,670 |
|
|
$ |
474,323 |
|
|
$ |
444,856 |
|
(D) Net interest
margin (GAAP) |
3.31 |
% |
|
3.39 |
% |
|
3.40 |
% |
|
3.44 |
% |
|
3.45 |
% |
|
3.36 |
% |
|
3.54 |
% |
Net interest margin - FTE |
3.33 |
% |
|
3.41 |
% |
|
3.42 |
% |
|
3.46 |
% |
|
3.46 |
% |
|
3.39 |
% |
|
3.56 |
% |
(E) Efficiency
ratio (GAAP) |
69.38 |
% |
|
65.96 |
% |
|
68.23 |
% |
|
67.87 |
% |
|
66.02 |
% |
|
67.84 |
% |
|
66.90 |
% |
Efficiency ratio - FTE |
69.02 |
% |
|
65.64 |
% |
|
67.90 |
% |
|
67.59 |
% |
|
65.76 |
% |
|
67.50 |
% |
|
66.65 |
% |
Efficiency ratio - Adjusted for
acquisition related charges |
66.67 |
% |
|
65.16 |
% |
|
67.56 |
% |
|
67.59 |
% |
|
65.76 |
% |
|
66.43 |
% |
|
66.65 |
% |
(F) Net Overhead
Ratio (GAAP) |
1.74 |
% |
|
1.53 |
% |
|
1.69 |
% |
|
1.76 |
% |
|
1.67 |
% |
|
1.66 |
% |
|
1.78 |
% |
Net Overhead Ratio - Adjusted for
acquisition related charges |
1.63 |
% |
|
1.51 |
% |
|
1.68 |
% |
|
1.76 |
% |
|
1.67 |
% |
|
1.61 |
% |
|
1.78 |
% |
Calculation of Tangible Common Equity
ratio (at period end) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
2,335,736 |
|
|
$ |
2,264,982 |
|
|
$ |
2,131,074 |
|
|
$ |
2,069,822 |
|
|
$ |
2,028,508 |
|
|
|
|
|
(G) Less: Convertible
preferred stock |
(126,312 |
) |
|
(126,312 |
) |
|
(126,427 |
) |
|
(126,467 |
) |
|
(126,467 |
) |
|
|
|
|
Less:
Non-convertible preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
Less: Intangible
assets |
(497,699 |
) |
|
(439,570 |
) |
|
(439,055 |
) |
|
(424,445 |
) |
|
(426,588 |
) |
|
|
|
|
(H) Total tangible common
shareholders’ equity |
$ |
1,586,725 |
|
|
$ |
1,574,100 |
|
|
$ |
1,565,592 |
|
|
$ |
1,518,910 |
|
|
$ |
1,475,453 |
|
|
|
|
|
Total assets |
$ |
22,043,930 |
|
|
$ |
20,799,924 |
|
|
$ |
20,382,271 |
|
|
$ |
20,010,727 |
|
|
$ |
19,169,345 |
|
|
|
|
|
Less: Intangible
assets |
(497,699 |
) |
|
(439,570 |
) |
|
(439,055 |
) |
|
(424,445 |
) |
|
(426,588 |
) |
|
|
|
|
(I) Total tangible
assets |
$ |
21,546,231 |
|
|
$ |
20,360,354 |
|
|
$ |
19,943,216 |
|
|
$ |
19,586,282 |
|
|
$ |
18,742,757 |
|
|
|
|
|
Tangible common
equity ratio (H/I) |
7.4 |
% |
|
7.7 |
% |
|
7.9 |
% |
|
7.8 |
% |
|
7.9 |
% |
|
|
|
|
Tangible common
equity ratio, assuming full conversion of convertible preferred
stock ((H-G)/I) |
8.0 |
% |
|
8.4 |
% |
|
8.5 |
% |
|
8.4 |
% |
|
8.6 |
% |
|
|
|
|
Calculation of
book value per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
2,335,736 |
|
|
$ |
2,264,982 |
|
|
$ |
2,131,074 |
|
|
$ |
2,069,822 |
|
|
$ |
2,028,508 |
|
|
|
|
|
Less: Preferred stock |
(251,312 |
) |
|
(251,312 |
) |
|
(126,427 |
) |
|
(126,467 |
) |
|
(126,467 |
) |
|
|
|
|
(J) Total common
equity |
$ |
2,084,424 |
|
|
$ |
2,013,670 |
|
|
$ |
2,004,647 |
|
|
$ |
1,943,355 |
|
|
$ |
1,902,041 |
|
|
|
|
|
(K) Actual common shares
outstanding |
48,337 |
|
|
47,677 |
|
|
47,390 |
|
|
46,805 |
|
|
46,691 |
|
|
|
|
|
Book value per
common share (J/K) |
$ |
43.12 |
|
|
$ |
42.24 |
|
|
$ |
42.30 |
|
|
$ |
41.52 |
|
|
$ |
40.74 |
|
|
|
|
|
Tangible common
book value per share (H/K) |
$ |
32.83 |
|
|
$ |
33.02 |
|
|
$ |
33.04 |
|
|
$ |
32.45 |
|
|
$ |
31.60 |
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
September 30, |
|
September 30, |
(Dollars and shares in
thousands) |
2015 |
|
2015 |
|
2015 |
|
2014 |
|
2014 |
|
2015 |
|
2014 |
Calculation of
return on average assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
(L) Net income |
$ |
38,355 |
|
|
$ |
43,831 |
|
|
$ |
39,052 |
|
|
$ |
38,133 |
|
|
$ |
40,224 |
|
|
$ |
121,238 |
|
|
$ |
113,265 |
|
Add: Acquisition related
charges, net of tax |
3,445 |
|
|
682 |
|
|
448 |
|
|
— |
|
|
— |
|
|
4,575 |
|
|
— |
|
(M) Operating net
income |
41,800 |
|
|
44,513 |
|
|
39,500 |
|
|
38,133 |
|
|
40,224 |
|
|
125,813 |
|
|
113,265 |
|
(N) Total average
assets |
21,688,450 |
|
|
20,256,996 |
|
|
19,826,240 |
|
|
19,366,670 |
|
|
19,127,346 |
|
|
20,597,383 |
|
|
18,474,609 |
|
Return on average
assets, annualized (L/N) |
0.70 |
% |
|
0.87 |
% |
|
0.80 |
% |
|
0.78 |
% |
|
0.83 |
% |
|
0.79 |
% |
|
0.82 |
% |
Return on average
assets, adjusted for acquisition related charges, annualized
(M/N) |
0.76 |
% |
|
0.88 |
% |
|
0.81 |
% |
|
0.78 |
% |
|
0.83 |
% |
|
0.82 |
% |
|
0.82 |
% |
Calculation of
return on average common equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
(O) Net income applicable
to common shares |
34,276 |
|
|
42,251 |
|
|
37,471 |
|
|
36,553 |
|
|
38,643 |
|
|
113,998 |
|
|
108,522 |
|
(P) Add: Acquisition
related charges, net of tax |
3,445 |
|
|
682 |
|
|
448 |
|
|
— |
|
|
— |
|
|
4,575 |
|
|
— |
|
(Q) Add: After-tax
intangible asset amortization |
833 |
|
|
597 |
|
|
615 |
|
|
722 |
|
|
739 |
|
|
2,046 |
|
|
2,159 |
|
(R) Tangible operating net
income applicable to common shares |
38,554 |
|
|
43,530 |
|
|
38,534 |
|
|
37,275 |
|
|
39,382 |
|
|
120,619 |
|
|
110,681 |
|
Total average
shareholders' equity |
2,310,511 |
|
|
2,156,128 |
|
|
2,114,356 |
|
|
2,057,855 |
|
|
2,020,903 |
|
|
2,194,384 |
|
|
1,972,425 |
|
Less: Average preferred
stock |
(251,312 |
) |
|
(134,586 |
) |
|
(126,445 |
) |
|
(126,467 |
) |
|
(126,467 |
) |
|
(171,238 |
) |
|
(126,472 |
) |
(S) Total average common
shareholders' equity |
2,059,199 |
|
|
2,021,542 |
|
|
1,987,911 |
|
|
1,931,388 |
|
|
1,894,436 |
|
|
2,023,146 |
|
|
1,845,953 |
|
Less: Average intangible
assets |
(490,583 |
) |
|
(439,455 |
) |
|
(436,456 |
) |
|
(425,834 |
) |
|
(419,125 |
) |
|
(455,787 |
) |
|
(402,848 |
) |
(T) Total average tangible
common shareholders’ equity |
1,568,616 |
|
|
1,582,087 |
|
|
1,551,455 |
|
|
1,505,554 |
|
|
1,475,311 |
|
|
1,567,359 |
|
|
1,443,105 |
|
Return on average
common equity, annualized (O/S) |
6.60 |
% |
|
8.38 |
% |
|
7.64 |
% |
|
7.51 |
% |
|
8.09 |
% |
|
7.53 |
% |
|
7.86 |
% |
Return on average
common equity, adjusted for acquisition related charges,
annualized ((O+P)/S) |
7.26 |
% |
|
8.52 |
% |
|
7.73 |
% |
|
7.51 |
% |
|
8.09 |
% |
|
7.82 |
% |
|
7.86 |
% |
Return on average
tangible common equity, annualized ((O+Q)/T) |
8.88 |
% |
|
10.86 |
% |
|
9.96 |
% |
|
9.82 |
% |
|
10.59 |
% |
|
9.90 |
% |
|
10.25 |
% |
Return on average
tangible common equity, adjusted for acquisition related charges,
annualized (R/T) |
9.73 |
% |
|
11.03 |
% |
|
10.07 |
% |
|
9.82 |
% |
|
10.59 |
% |
|
10.26 |
% |
|
10.25 |
% |
Calculation of net
income per common share - diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
(U) Net income applicable
to common shares - Diluted |
35,855 |
|
|
43,831 |
|
|
39,052 |
|
|
38,133 |
|
|
40,224 |
|
|
118,738 |
|
|
113,265 |
|
Add: Acquisition related
charges, net of tax |
3,445 |
|
|
682 |
|
|
448 |
|
|
— |
|
|
— |
|
|
4,575 |
|
|
— |
|
(V) Net income applicable
to common shares - Diluted, adjusted for acquisition related
charges |
39,300 |
|
|
44,513 |
|
|
39,500 |
|
|
38,133 |
|
|
40,224 |
|
|
123,313 |
|
|
113,265 |
|
Weighted average common
shares and effect of dilutive potential common shares (W) |
52,207 |
|
|
51,723 |
|
|
51,472 |
|
|
50,977 |
|
|
50,880 |
|
|
51,799 |
|
|
50,802 |
|
Net income per
common share - Diluted (U/W) |
0.69 |
|
|
0.85 |
|
|
0.76 |
|
|
0.75 |
|
|
0.79 |
|
|
2.29 |
|
|
2.23 |
|
Net income per
common share - Diluted, adjusted for acquisition related charges
(V/W) |
0.75 |
|
|
0.86 |
|
|
0.77 |
|
|
0.75 |
|
|
0.79 |
|
|
2.38 |
|
|
2.23 |
|
LOANS |
Loan Portfolio Mix and Growth Rates |
|
|
|
|
|
|
|
|
% Growth |
(Dollars in thousands) |
|
September 30,
2015 |
|
December 31,
2014 |
|
September 30,
2014 |
|
From (1)
December 31,
2014 |
|
From
September 30,
2014 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
4,400,185 |
|
|
$ |
3,924,394 |
|
|
$ |
3,689,671 |
|
|
16 |
% |
|
19 |
% |
Commercial real-estate |
|
5,307,566 |
|
|
4,505,753 |
|
|
4,510,375 |
|
|
24 |
|
|
18 |
|
Home equity |
|
797,465 |
|
|
716,293 |
|
|
720,058 |
|
|
15 |
|
|
11 |
|
Residential real-estate |
|
571,743 |
|
|
483,542 |
|
|
470,319 |
|
|
24 |
|
|
22 |
|
Premium finance receivables -
commercial |
|
2,407,075 |
|
|
2,350,833 |
|
|
2,377,892 |
|
|
3 |
|
|
1 |
|
Premium finance receivables - life
insurance |
|
2,700,275 |
|
|
2,277,571 |
|
|
2,134,405 |
|
|
25 |
|
|
27 |
|
Consumer and
other(2) |
|
131,902 |
|
|
151,012 |
|
|
149,339 |
|
|
(17 |
) |
|
(12 |
) |
Total loans, net of unearned
income, excluding covered loans |
|
$ |
16,316,211 |
|
|
$ |
14,409,398 |
|
|
$ |
14,052,059 |
|
|
18 |
% |
|
16 |
% |
Covered loans |
|
168,609 |
|
|
226,709 |
|
|
254,605 |
|
|
(34 |
) |
|
(34 |
) |
Total loans, net of unearned
income |
|
$ |
16,484,820 |
|
|
$ |
14,636,107 |
|
|
$ |
14,306,664 |
|
|
17 |
% |
|
15 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
27 |
% |
|
26 |
% |
|
26 |
% |
|
|
|
|
Commercial real-estate |
|
32 |
|
|
31 |
|
|
31 |
|
|
|
|
|
Home equity |
|
5 |
|
|
5 |
|
|
5 |
|
|
|
|
|
Residential real-estate |
|
3 |
|
|
3 |
|
|
3 |
|
|
|
|
|
Premium finance receivables -
commercial |
|
15 |
|
|
16 |
|
|
17 |
|
|
|
|
|
Premium finance receivables - life
insurance |
|
16 |
|
|
16 |
|
|
15 |
|
|
|
|
|
Consumer and
other(2) |
|
1 |
|
|
1 |
|
|
1 |
|
|
|
|
|
Total loans, net of unearned
income, excluding covered loans |
|
99 |
% |
|
98 |
% |
|
98 |
% |
|
|
|
|
Covered loans |
|
1 |
|
|
2 |
|
|
2 |
|
|
|
|
|
Total loans, net of unearned
income |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
(1) Annualized
(2) Includes autos, boats, snowmobiles and other
indirect consumer loans as well as short-term accounts receivable
financing.
|
|
|
|
|
|
|
|
|
|
|
As of September
30, 2015 |
|
|
|
% of
Total
Balance |
|
Nonaccrual |
|
> 90 Days
Past Due
and Still
Accruing |
|
Allowance
For Loan
Losses
Allocation |
|
|
|
|
(Dollars in thousands) |
|
Balance |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
2,646,275 |
|
|
27.3 |
% |
|
$ |
12,006 |
|
|
$ |
— |
|
|
$ |
21,880 |
|
Franchise |
|
222,001 |
|
|
2.3 |
|
|
— |
|
|
— |
|
|
3,145 |
|
Mortgage warehouse lines of
credit |
|
136,614 |
|
|
1.4 |
|
|
— |
|
|
— |
|
|
1,022 |
|
Community Advantage - homeowner
associations |
|
123,209 |
|
|
1.3 |
|
|
— |
|
|
— |
|
|
3 |
|
Aircraft |
|
6,371 |
|
|
0.1 |
|
|
— |
|
|
— |
|
|
8 |
|
Asset-based lending |
|
802,370 |
|
|
8.3 |
|
|
12 |
|
|
— |
|
|
6,282 |
|
Tax exempt |
|
232,667 |
|
|
2.4 |
|
|
— |
|
|
— |
|
|
1,303 |
|
Leases |
|
205,786 |
|
|
2.1 |
|
|
— |
|
|
— |
|
|
169 |
|
Other |
|
1,953 |
|
|
— |
|
|
— |
|
|
— |
|
|
12 |
|
PCI - commercial loans
(1) |
|
22,939 |
|
|
0.2 |
|
|
— |
|
|
217 |
|
|
166 |
|
Total
commercial |
|
$ |
4,400,185 |
|
|
45.4 |
% |
|
$ |
12,018 |
|
|
$ |
217 |
|
|
$ |
33,990 |
|
Commercial
Real-Estate: |
|
|
|
|
|
|
|
|
|
|
Residential construction |
|
$ |
61,271 |
|
|
0.6 |
% |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
753 |
|
Commercial construction |
|
285,963 |
|
|
2.9 |
|
|
31 |
|
|
— |
|
|
2,995 |
|
Land |
|
79,076 |
|
|
0.8 |
|
|
1,756 |
|
|
— |
|
|
2,550 |
|
Office |
|
790,311 |
|
|
8.1 |
|
|
4,045 |
|
|
— |
|
|
7,156 |
|
Industrial |
|
636,124 |
|
|
6.6 |
|
|
11,637 |
|
|
— |
|
|
5,521 |
|
Retail |
|
785,842 |
|
|
8.1 |
|
|
2,022 |
|
|
— |
|
|
5,254 |
|
Multi-family |
|
687,659 |
|
|
7.1 |
|
|
1,525 |
|
|
— |
|
|
6,959 |
|
Mixed use and other |
|
1,820,328 |
|
|
18.7 |
|
|
7,601 |
|
|
— |
|
|
12,079 |
|
PCI - commercial real-estate
(1) |
|
160,992 |
|
|
1.7 |
|
|
— |
|
|
13,547 |
|
|
794 |
|
Total commercial
real-estate |
|
$ |
5,307,566 |
|
|
54.6 |
% |
|
$ |
28,617 |
|
|
$ |
13,547 |
|
|
$ |
44,061 |
|
Total commercial and
commercial real-estate |
|
$ |
9,707,751 |
|
|
100.0 |
% |
|
$ |
40,635 |
|
|
$ |
13,764 |
|
|
$ |
78,051 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real-estate -
collateral location by state: |
|
|
|
|
|
|
|
|
|
|
Illinois |
|
$ |
4,053,531 |
|
|
76.4 |
% |
|
|
|
|
|
|
Wisconsin |
|
577,231 |
|
|
10.9 |
|
|
|
|
|
|
|
Total primary
markets |
|
$ |
4,630,762 |
|
|
87.3 |
% |
|
|
|
|
|
|
Florida |
|
56,020 |
|
|
1.1 |
|
|
|
|
|
|
|
Arizona |
|
9,677 |
|
|
0.2 |
|
|
|
|
|
|
|
Indiana |
|
106,591 |
|
|
2.0 |
|
|
|
|
|
|
|
Other (no individual state greater
than 0.6%) |
|
504,516 |
|
|
9.4 |
|
|
|
|
|
|
|
Total |
|
$ |
5,307,566 |
|
|
100.0 |
% |
|
|
|
|
|
|
(1) Purchased credit impaired ("PCI") 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) |
|
September 30,
2015 |
|
December 31,
2014 |
|
September 30,
2014 |
|
From (1)
December 31,
2014 |
|
From
September 30,
2014 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
4,705,994 |
|
|
$ |
3,518,685 |
|
|
$ |
3,253,477 |
|
|
45 |
% |
|
45 |
% |
NOW and interest bearing demand
deposits |
|
2,231,258 |
|
|
2,236,089 |
|
|
2,086,099 |
|
|
— |
|
|
7 |
|
Wealth management deposits
(2) |
|
1,469,920 |
|
|
1,226,916 |
|
|
1,212,317 |
|
|
26 |
|
|
21 |
|
Money market |
|
4,001,518 |
|
|
3,651,467 |
|
|
3,744,682 |
|
|
13 |
|
|
7 |
|
Savings |
|
1,684,007 |
|
|
1,508,877 |
|
|
1,465,250 |
|
|
16 |
|
|
15 |
|
Time certificates of deposit |
|
4,135,772 |
|
|
4,139,810 |
|
|
4,303,421 |
|
|
— |
|
|
(4 |
) |
Total deposits |
|
$ |
18,228,469 |
|
|
$ |
16,281,844 |
|
|
$ |
16,065,246 |
|
|
16 |
% |
|
13 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
26 |
% |
|
22 |
% |
|
20 |
% |
|
|
|
|
NOW and interest bearing demand
deposits |
|
12 |
|
|
14 |
|
|
13 |
|
|
|
|
|
Wealth management deposits
(2) |
|
8 |
|
|
8 |
|
|
8 |
|
|
|
|
|
Money market |
|
22 |
|
|
22 |
|
|
23 |
|
|
|
|
|
Savings |
|
9 |
|
|
9 |
|
|
9 |
|
|
|
|
|
Time certificates of deposit |
|
23 |
|
|
25 |
|
|
27 |
|
|
|
|
|
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 September 30, 2015
|
|
(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 |
|
$ |
2,177 |
|
|
$ |
79,330 |
|
|
$ |
144,798 |
|
|
$ |
631,780 |
|
|
$ |
858,085 |
|
|
0.53 |
% |
4-6 months |
|
— |
|
|
40,240 |
|
|
— |
|
|
671,299 |
|
|
711,539 |
|
|
0.69 |
% |
7-9 months |
|
36,504 |
|
|
27,980 |
|
|
— |
|
|
511,261 |
|
|
575,745 |
|
|
0.63 |
% |
10-12 months |
|
165,615 |
|
|
28,909 |
|
|
— |
|
|
524,389 |
|
|
718,913 |
|
|
0.79 |
% |
13-18 months |
|
— |
|
|
23,819 |
|
|
— |
|
|
613,561 |
|
|
637,380 |
|
|
0.96 |
% |
19-24 months |
|
44,063 |
|
|
5,877 |
|
|
— |
|
|
263,783 |
|
|
313,723 |
|
|
1.02 |
% |
24+ months |
|
3,432 |
|
|
14,395 |
|
|
— |
|
|
302,560 |
|
|
320,387 |
|
|
1.23 |
% |
Total |
|
$ |
251,791 |
|
|
$ |
220,550 |
|
|
$ |
144,798 |
|
|
$ |
3,518,633 |
|
|
$ |
4,135,772 |
|
|
0.77 |
% |
(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 third quarter of 2015 compared to the second quarter of 2015
(sequential quarters) and third quarter of 2014 (linked quarters),
respectively:
|
Average
Balance
for three months ended, |
|
Interest
for three months ended, |
|
Yield/Rate
for three months ended, |
(Dollars in thousands) |
September
30,
2015 |
|
June 30,
2015 |
|
September 30,
2014 |
|
September
30,
2015 |
|
June 30,
2015 |
|
September 30,
2014 |
|
|
September
30,
2015
|
|
June 30,
2015 |
|
September 30,
2014 |
Liquidity management
assets(1)(2)(7) |
$ |
3,140,782 |
|
|
$ |
2,709,176 |
|
|
$ |
2,814,720 |
|
|
$ |
18,165 |
|
|
$ |
15,949 |
|
|
$ |
14,423 |
|
|
2.29 |
% |
|
2.36 |
% |
|
2.03 |
% |
Other earning
assets(2)(3)(7) |
30,990 |
|
|
32,115 |
|
|
28,702 |
|
|
234 |
|
|
283 |
|
|
232 |
|
|
3.00 |
|
|
3.54 |
|
|
3.21 |
|
Loans, net of unearned
income(2)(4)(7) |
16,509,001 |
|
|
15,632,875 |
|
|
14,359,467 |
|
|
165,572 |
|
|
156,970 |
|
|
151,540 |
|
|
3.98 |
|
|
4.03 |
|
|
4.19 |
|
Covered loans |
174,768 |
|
|
202,663 |
|
|
262,310 |
|
|
2,605 |
|
|
3,181 |
|
|
5,309 |
|
|
5.91 |
|
|
6.30 |
|
|
8.03 |
|
Total earning
assets(7) |
$ |
19,855,541 |
|
|
$ |
18,576,829 |
|
|
$ |
17,465,199 |
|
|
$ |
186,576 |
|
|
$ |
176,383 |
|
|
$ |
171,504 |
|
|
3.73 |
% |
|
3.81 |
% |
|
3.90 |
% |
Allowance for loan and
covered loan losses |
(106,091 |
) |
|
(101,211 |
) |
|
(96,463 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
251,289 |
|
|
236,242 |
|
|
237,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
1,687,711 |
|
|
1,545,136 |
|
|
1,521,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
21,688,450 |
|
|
$ |
20,256,996 |
|
|
$ |
19,127,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
$ |
13,489,651 |
|
|
$ |
13,115,453 |
|
|
$ |
12,695,780 |
|
|
$ |
12,436 |
|
|
$ |
11,996 |
|
|
$ |
12,298 |
|
|
0.37 |
% |
|
0.37 |
% |
|
0.38 |
% |
Federal Home Loan Bank
advances |
402,646 |
|
|
347,656 |
|
|
380,083 |
|
|
2,458 |
|
|
1,812 |
|
|
2,641 |
|
|
2.42 |
|
|
2.09 |
|
|
2.76 |
|
Other borrowings |
272,782 |
|
|
193,660 |
|
|
54,653 |
|
|
1,045 |
|
|
787 |
|
|
200 |
|
|
1.52 |
|
|
1.63 |
|
|
1.45 |
|
Subordinated notes |
140,000 |
|
|
140,000 |
|
|
140,000 |
|
|
1,776 |
|
|
1,777 |
|
|
1,776 |
|
|
5.08 |
|
|
5.07 |
|
|
5.07 |
|
Junior subordinated
debentures |
264,974 |
|
|
249,493 |
|
|
249,493 |
|
|
2,124 |
|
|
1,977 |
|
|
2,091 |
|
|
3.14 |
|
|
3.13 |
|
|
3.28 |
|
Total interest-bearing
liabilities |
$ |
14,570,053 |
|
|
$ |
14,046,262 |
|
|
$ |
13,520,009 |
|
|
$ |
19,839 |
|
|
$ |
18,349 |
|
|
$ |
19,006 |
|
|
0.54 |
% |
|
0.52 |
% |
|
0.56 |
% |
Non-interest bearing
deposits |
4,473,632 |
|
|
3,725,728 |
|
|
3,233,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
334,254 |
|
|
328,878 |
|
|
352,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
2,310,511 |
|
|
2,156,128 |
|
|
2,020,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’
equity |
$ |
21,688,450 |
|
|
$ |
20,256,996 |
|
|
$ |
19,127,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread(5)(7) |
|
|
|
|
|
|
|
|
|
|
|
|
3.19 |
% |
|
3.29 |
% |
|
3.34 |
% |
Net free
funds/contribution(6) |
$ |
5,285,488 |
|
|
$ |
4,530,567 |
|
|
$ |
3,945,190 |
|
|
|
|
|
|
|
|
0.14 |
% |
|
0.12 |
% |
|
0.12 |
% |
Net interest income/
margin(7) |
|
|
|
|
|
|
$ |
166,737 |
|
|
$ |
158,034 |
|
|
$ |
152,498 |
|
|
3.33 |
% |
|
3.41 |
% |
|
3.46 |
% |
(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 available-for-sale securities reflects a tax-equivalent
adjustment based on a marginal federal corporate tax rate of 35%.
The total adjustments for the three months ended September 30,
2015, June 30, 2015 and September 30, 2014 were $1.2 million,
$1.1 million and $828,000, 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 nine months ended September 30, 2015 compared to the nine
months ended September 30, 2014:
|
Average Balance
for nine months ended, |
|
Interest
for nine months ended, |
|
Yield/Rate
for nine months ended, |
(Dollars in thousands) |
September 30,
2015 |
|
September 30,
2014 |
|
September 30,
2015 |
|
September 30,
2014 |
|
September 30,
2015 |
|
September 30,
2014 |
Liquidity management
assets(1)(2)(7) |
$ |
2,907,284 |
|
|
$ |
2,690,422 |
|
|
$ |
50,328 |
|
|
$ |
43,805 |
|
|
2.31 |
% |
|
2.18 |
% |
Other earning
assets(2)(3)(7) |
30,286 |
|
|
28,363 |
|
|
718 |
|
|
661 |
|
|
3.17 |
|
|
3.12 |
|
Loans, net of unearned
income(2)(4)(7) |
15,730,009 |
|
|
13,786,669 |
|
|
473,857 |
|
|
437,030 |
|
|
4.03 |
|
|
4.24 |
|
Covered loans |
197,069 |
|
|
293,349 |
|
|
9,474 |
|
|
19,345 |
|
|
6.43 |
|
|
8.82 |
|
Total earning
assets(7) |
$ |
18,864,648 |
|
|
$ |
16,798,803 |
|
|
$ |
534,377 |
|
|
$ |
500,841 |
|
|
3.79 |
% |
|
3.99 |
% |
Allowance for loan and
covered loan losses |
(101,440 |
) |
|
(101,624 |
) |
|
|
|
|
|
|
|
|
Cash and due from
banks |
245,745 |
|
|
231,199 |
|
|
|
|
|
|
|
|
|
Other assets |
1,588,430 |
|
|
1,546,231 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
20,597,383 |
|
|
$ |
18,474,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
$ |
13,158,498 |
|
|
$ |
12,369,241 |
|
|
$ |
36,246 |
|
|
$ |
35,980 |
|
|
0.37 |
% |
|
0.39 |
% |
Federal Home Loan Bank
advances |
369,443 |
|
|
405,246 |
|
|
6,426 |
|
|
7,989 |
|
|
2.33 |
|
|
2.64 |
|
Other borrowings |
220,763 |
|
|
148,549 |
|
|
2,620 |
|
|
1,460 |
|
|
1.59 |
|
|
1.31 |
|
Subordinated notes |
140,000 |
|
|
56,410 |
|
|
5,328 |
|
|
2,130 |
|
|
5.07 |
|
|
5.03 |
|
Junior subordinated
debentures |
254,710 |
|
|
249,493 |
|
|
6,034 |
|
|
6,137 |
|
|
3.12 |
|
|
3.24 |
|
Total interest-bearing
liabilities |
$ |
14,143,414 |
|
|
$ |
13,228,939 |
|
|
$ |
56,654 |
|
|
$ |
53,696 |
|
|
0.53 |
% |
|
0.54 |
% |
Non-interest bearing
deposits |
3,931,194 |
|
|
2,948,961 |
|
|
|
|
|
|
|
|
|
Other liabilities |
328,391 |
|
|
324,284 |
|
|
|
|
|
|
|
|
|
Equity |
2,194,384 |
|
|
1,972,425 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’
equity |
$ |
20,597,383 |
|
|
$ |
18,474,609 |
|
|
|
|
|
|
|
|
|
Interest rate
spread(5)(7) |
|
|
|
|
|
|
|
|
3.26 |
% |
|
3.45 |
% |
Net free
funds/contribution(6) |
$ |
4,721,234 |
|
|
$ |
3,569,864 |
|
|
|
|
|
|
0.13 |
% |
|
0.11 |
% |
Net interest income/
margin(7) |
|
|
|
|
$ |
477,723 |
|
|
$ |
447,145 |
|
|
3.39 |
% |
|
3.56 |
% |
(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 available-for-sale securities reflects a tax-equivalent
adjustment based on a marginal federal corporate tax
rate of 35%. The total adjustments for the nine months ended
September 30, 2015, and September 30, 2014 were $3.4 million and
$2.3 million, 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
Interest Rate Sensitivity
As an ongoing part of its financial strategy,
the Company attempts to manage the impact of fluctuations in market
interest rates on net interest income. Management measures
its exposure to changes in interest rates by modeling many
different interest rate scenarios.
The following interest rate scenarios display
the percentage change in net interest income over a one-year time
horizon assuming increases of 100 and 200 basis points and a
decrease of 100 basis points. The Static Shock Scenario results
incorporate actual cash flows and repricing characteristics for
balance sheet instruments following an instantaneous, parallel
change in market rates based upon a static (i.e. no growth or
constant) balance sheet. Conversely, the Ramp Scenario
results incorporate management’s projections of future volume and
pricing of each of the product lines following a gradual, parallel
change in market rates over twelve months. Actual results may
differ from these simulated results due to timing, magnitude, and
frequency of interest rate changes as well as changes in market
conditions and management strategies. The interest rate sensitivity
for both the Static Shock and Ramp Scenario at September 30,
2015, June 30, 2015 and September 30, 2014 is as
follows:
|
|
|
|
|
|
Static Shock Scenario |
|
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
September 30,
2015 |
|
15.6 |
% |
|
8.0 |
% |
|
(11.1 |
)% |
June 30, 2015 |
|
14.8 |
% |
|
7.3 |
% |
|
(10.5 |
)% |
September 30, 2014 |
|
13.7 |
% |
|
6.2 |
% |
|
(11.1 |
)% |
Ramp Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
September 30,
2015 |
6.7 |
% |
|
3.6 |
% |
|
(4.0 |
)% |
June 30, 2015 |
6.4 |
% |
|
3.3 |
% |
|
(4.0 |
)% |
September 30, 2014 |
5.0 |
% |
|
2.6 |
% |
|
(5.0 |
)% |
These results indicate that the Company has positioned its balance
sheet to benefit from a rise in interest rates. This analysis
also indicates that the Company would benefit to a greater
magnitude should a rise in interest rates be significant (i.e., 200
basis points) and immediate (Static Shock Scenario).
NON-INTEREST INCOME
The following table presents non-interest income by category for
the periods presented:
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
Q3 2015 compared to
Q2 2015 |
|
Q3 2015 compared to
Q3 2014 |
(Dollars in thousands) |
|
2015 |
|
|
2015 |
|
|
2014 |
|
$
Change |
|
% Change |
|
$
Change |
|
% Change |
Brokerage |
|
$ |
6,579 |
|
|
$ |
6,750 |
|
|
$ |
7,185 |
|
|
$ |
(171 |
) |
|
(3 |
)% |
|
$ |
(606 |
) |
|
(8 |
)% |
Trust and asset
management |
|
11,664 |
|
|
11,726 |
|
|
10,474 |
|
|
(62 |
) |
|
(1 |
) |
|
1,190 |
|
|
11 |
|
Total wealth management |
|
18,243 |
|
|
18,476 |
|
|
17,659 |
|
|
(233 |
) |
|
(1 |
) |
|
584 |
|
|
3 |
|
Mortgage banking |
|
27,887 |
|
|
36,007 |
|
|
26,691 |
|
|
(8,120 |
) |
|
(23 |
) |
|
1,196 |
|
|
4 |
|
Service charges on deposit
accounts |
|
7,403 |
|
|
6,474 |
|
|
6,084 |
|
|
929 |
|
|
14 |
|
|
1,319 |
|
|
22 |
|
(Losses) gains on
available-for-sale securities, net |
|
(98 |
) |
|
(24 |
) |
|
(153 |
) |
|
(74 |
) |
|
NM |
|
55 |
|
|
(36 |
) |
Fees from covered call
options |
|
2,810 |
|
|
4,565 |
|
|
2,107 |
|
|
(1,755 |
) |
|
(38 |
) |
|
703 |
|
|
33 |
|
Trading (losses) gains,
net |
|
(135 |
) |
|
160 |
|
|
293 |
|
|
(295 |
) |
|
NM |
|
(428 |
) |
|
NM |
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
2,606 |
|
|
2,347 |
|
|
1,207 |
|
|
259 |
|
|
11 |
|
|
1,399 |
|
|
NM |
BOLI |
|
212 |
|
|
2,180 |
|
|
652 |
|
|
(1,968 |
) |
|
(90 |
) |
|
(440 |
) |
|
(67 |
) |
Administrative services |
|
1,072 |
|
|
1,053 |
|
|
990 |
|
|
19 |
|
|
2 |
|
|
82 |
|
|
8 |
|
Miscellaneous |
|
4,953 |
|
|
5,775 |
|
|
2,422 |
|
|
(822 |
) |
|
(14 |
) |
|
2,531 |
|
|
NM |
Total Other |
|
8,843 |
|
|
11,355 |
|
|
5,271 |
|
|
(2,512 |
) |
|
(22 |
) |
|
3,572 |
|
|
68 |
|
Total Non-Interest
Income |
|
$ |
64,953 |
|
|
$ |
77,013 |
|
|
$ |
57,952 |
|
|
$ |
(12,060 |
) |
|
(16 |
)% |
|
$ |
7,001 |
|
|
12 |
% |
NM - Not Meaningful
|
|
Nine Months Ended |
|
|
|
|
|
|
September 30, |
|
September 30, |
|
Q3 2015 compared to
Q3 2014 |
(Dollars in thousands) |
|
2015 |
|
2014 |
|
$
Change |
|
% Change |
Brokerage |
|
$ |
20,181 |
|
|
$ |
22,546 |
|
|
$ |
(2,365 |
) |
|
(10 |
)% |
Trust and asset
management |
|
34,638 |
|
|
30,148 |
|
|
4,490 |
|
|
15 |
|
Total wealth management |
|
54,819 |
|
|
52,694 |
|
|
2,125 |
|
|
4 |
|
Mortgage banking |
|
91,694 |
|
|
66,923 |
|
|
24,771 |
|
|
37 |
|
Service charges on deposit
accounts |
|
20,174 |
|
|
17,118 |
|
|
3,056 |
|
|
18 |
|
Gains (losses) on
available-for-sale securities, net |
|
402 |
|
|
(522 |
) |
|
924 |
|
|
NM |
Fees from covered call
options |
|
11,735 |
|
|
4,893 |
|
|
6,842 |
|
|
NM |
Trading losses, net |
|
(452 |
) |
|
(1,102 |
) |
|
650 |
|
|
(59 |
) |
Other: |
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
7,144 |
|
|
3,350 |
|
|
3,794 |
|
|
NM |
BOLI |
|
3,158 |
|
|
2,039 |
|
|
1,119 |
|
|
55 |
|
Administrative services |
|
3,151 |
|
|
2,786 |
|
|
365 |
|
|
13 |
|
Miscellaneous |
|
14,682 |
|
|
9,404 |
|
|
5,278 |
|
|
56 |
|
Total Other |
|
28,135 |
|
|
17,579 |
|
|
10,556 |
|
|
60 |
|
Total Non-Interest
Income |
|
$ |
206,507 |
|
|
$ |
157,583 |
|
|
$ |
48,924 |
|
|
31 |
% |
The significant changes in non-interest income
for the quarter ended September 30, 2015 compared to the
quarters ended June 30, 2015 and September 30, 2014 are
discussed below.
Wealth management revenue totaled $18.2 million
in the third quarter of 2015 compared to $18.5 million in the
second quarter of 2015, a decrease of 1%, and $17.7 million in the
third quarter of 2014, an increase of 3%. The decrease during
the current period as compared to the second quarter of 2015 is
primarily attributable to volatile market conditions and lower
customer trading activity in the current quarter. The
increase during the current period as compared to the third quarter
of 2014 is primarily attributable to growth in assets under
management due to new customers. 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, managed money fees and insurance product commissions
at Wayne Hummer Investments.
For the quarter ended September 30, 2015,
mortgage banking revenue totaled $27.9 million, a decrease of $8.1
million, or 23%, when compared to the second quarter of 2015, and
an increase of $1.2 million, or 4%, when compared to the third
quarter of 2014. The decrease in mortgage banking revenue in
the third quarter of 2015 as compared to the second quarter of
2015 resulted primarily from lower origination volumes in the
current quarter. Mortgage loans originated or purchased for sale
were $973.7 million in the current quarter as compared to $1.2
billion in the second quarter of 2015 and $904.8 million in the
third quarter of 2014. Mortgage banking revenue includes revenue
from activities related to originating, selling and servicing
residential real estate loans for the secondary market.
Service charges on deposit accounts totaled $7.4
million in the third quarter of 2015, an increase of $929,000 and
$1.3 million compared to the quarters ended June 30, 2015 and
September 30, 2014, respectively. The increase in the
current quarter is mostly a result of higher account analysis fees
on deposit accounts which have increased as a result of the
Company's commercial banking initiative and recent
acquisitions.
Fees from covered call option transactions
totaled $2.8 million for the third quarter of 2015, compared to
$4.6 million for the second quarter of 2015 and $2.1 million for
the third quarter of 2014. 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. Management has effectively entered into these
transactions with the goal of economically hedging security
positions and 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 mitigate overall interest rate risk and do not qualify
as hedges pursuant to accounting guidance. Fees from covered call
options decreased in the current quarter compared to the second
quarter of 2015 primarily as a result of selling call options
against a smaller value of underlying securities resulting in lower
premiums received by the Company. There were no outstanding call
option contracts at September 30, 2015, June 30, 2015 and September
30, 2014.
The Company recognized $135,000 of trading
losses in the third quarter of 2015 compared to trading gains of
$160,000 in the second quarter of 2015 and trading gains of
$293,000 in the third quarter of 2014. Trading gains and losses
recorded by the Company primarily result from fair value
adjustments related to interest rate derivatives not designated as
accounting 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.
Other non-interest income totaled $8.8 million
in the third quarter of 2015 compared to $11.4 million in the
second quarter of 2015 and $5.3 million in the third quarter of
2014. Other non-interest income decreased in the third
quarter of 2015 as compared to the second quarter of 2015,
primarily due to lower net gains on partnership investments in the
current quarter and from the Company recognizing a $1.5 million
BOLI death benefit in the second quarter of 2015. Other
non-interest income increased in the third quarter of 2015 as
compared to the third quarter of 2014, primarily due to an increase
in swap fee revenues resulting from interest rate hedging
transactions related to both customer-based trades and the related
matched trades with inter-bank dealer counterparties as well as
higher net gains on partnership investments.
NON-INTEREST EXPENSE
The following table presents non-interest expense by category
for the periods present:
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
Q3 2015 compared to
Q2 2015 |
|
Q3 2015 compared to
Q3 2014 |
(Dollars in thousands) |
|
2015 |
|
2015 |
|
2014 |
|
$
Change |
|
%
Change |
|
$
Change |
|
%
Change |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
53,028 |
|
|
$ |
46,617 |
|
|
$ |
45,471 |
|
|
$ |
6,411 |
|
|
14 |
% |
|
$ |
7,557 |
|
|
17 |
% |
Commissions and incentive
compensation |
|
30,035 |
|
|
33,387 |
|
|
27,885 |
|
|
(3,352 |
) |
|
(10 |
) |
|
2,150 |
|
|
8 |
|
Benefits |
|
14,686 |
|
|
14,417 |
|
|
12,620 |
|
|
269 |
|
|
2 |
|
|
2,066 |
|
|
16 |
|
Total salaries and employee
benefits |
|
97,749 |
|
|
94,421 |
|
|
85,976 |
|
|
3,328 |
|
|
4 |
|
|
11,773 |
|
|
14 |
|
Equipment |
|
8,887 |
|
|
7,914 |
|
|
7,570 |
|
|
973 |
|
|
12 |
|
|
1,317 |
|
|
17 |
|
Occupancy, net |
|
12,066 |
|
|
11,401 |
|
|
10,446 |
|
|
665 |
|
|
6 |
|
|
1,620 |
|
|
16 |
|
Data processing |
|
8,127 |
|
|
6,081 |
|
|
4,765 |
|
|
2,046 |
|
|
34 |
|
|
3,362 |
|
|
71 |
|
Advertising and
marketing |
|
6,237 |
|
|
6,406 |
|
|
3,528 |
|
|
(169 |
) |
|
(3 |
) |
|
2,709 |
|
|
77 |
|
Professional fees |
|
4,100 |
|
|
5,074 |
|
|
4,035 |
|
|
(974 |
) |
|
(19 |
) |
|
65 |
|
|
2 |
|
Amortization of other
intangible assets |
|
1,350 |
|
|
934 |
|
|
1,202 |
|
|
416 |
|
|
45 |
|
|
148 |
|
|
12 |
|
FDIC insurance |
|
3,035 |
|
|
3,047 |
|
|
3,211 |
|
|
(12 |
) |
|
— |
|
|
(176 |
) |
|
(5 |
) |
OREO expense, net |
|
(367 |
) |
|
841 |
|
|
581 |
|
|
(1,208 |
) |
|
NM |
|
(948 |
) |
|
NM |
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party
brokers |
|
1,364 |
|
|
1,403 |
|
|
1,621 |
|
|
(39 |
) |
|
(3 |
) |
|
(257 |
) |
|
(16 |
) |
Postage |
|
1,927 |
|
|
1,578 |
|
|
1,427 |
|
|
349 |
|
|
22 |
|
|
500 |
|
|
35 |
|
Miscellaneous |
|
15,499 |
|
|
15,197 |
|
|
14,138 |
|
|
302 |
|
|
2 |
|
|
1,361 |
|
|
10 |
|
Total other |
|
18,790 |
|
|
18,178 |
|
|
17,186 |
|
|
612 |
|
|
3 |
|
|
1,604 |
|
|
9 |
|
Total Non-Interest
Expense |
|
$ |
159,974 |
|
|
$ |
154,297 |
|
|
$ |
138,500 |
|
|
$ |
5,677 |
|
|
4 |
% |
|
$ |
21,474 |
|
|
16 |
% |
|
|
Nine months ended |
|
|
|
|
|
|
September 30, |
|
September 30, |
|
$ |
|
% |
(Dollars in thousands) |
|
2015 |
|
2014 |
|
Change |
|
Change |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
Salaries |
|
$ |
146,493 |
|
|
$ |
132,556 |
|
|
$ |
13,937 |
|
|
11 |
% |
Commissions and incentive
compensation |
|
88,916 |
|
|
74,816 |
|
|
14,100 |
|
|
19 |
|
Benefits |
|
46,891 |
|
|
40,501 |
|
|
6,390 |
|
|
16 |
|
Total salaries and employee
benefits |
|
282,300 |
|
|
247,873 |
|
|
34,427 |
|
|
14 |
|
Equipment |
|
24,637 |
|
|
22,196 |
|
|
2,441 |
|
|
11 |
|
Occupancy, net |
|
35,818 |
|
|
31,289 |
|
|
4,529 |
|
|
14 |
|
Data processing |
|
19,656 |
|
|
14,023 |
|
|
5,633 |
|
|
40 |
|
Advertising and
marketing |
|
16,550 |
|
|
9,902 |
|
|
6,648 |
|
|
67 |
|
Professional fees |
|
13,838 |
|
|
11,535 |
|
|
2,303 |
|
|
20 |
|
Amortization of other
intangible assets |
|
3,297 |
|
|
3,521 |
|
|
(224 |
) |
|
(6 |
) |
FDIC insurance |
|
9,069 |
|
|
9,358 |
|
|
(289 |
) |
|
(3 |
) |
OREO expense, net |
|
1,885 |
|
|
7,047 |
|
|
(5,162 |
) |
|
(73 |
) |
Other: |
|
|
|
|
|
|
|
|
Commissions - 3rd party
brokers |
|
4,153 |
|
|
4,911 |
|
|
(758 |
) |
|
(15 |
) |
Postage |
|
5,138 |
|
|
4,321 |
|
|
817 |
|
|
19 |
|
Miscellaneous |
|
45,248 |
|
|
37,430 |
|
|
7,818 |
|
|
21 |
|
Total other |
|
54,539 |
|
|
46,662 |
|
|
7,877 |
|
|
17 |
|
Total Non-Interest
Expense |
|
$ |
461,589 |
|
|
$ |
403,406 |
|
|
$ |
58,183 |
|
|
14 |
% |
The significant changes in non-interest expense
for the quarter ended September 30, 2015 compared to the
quarters ended June 30, 2015 and September 30, 2014 are
discussed below.
Salaries and employee benefits expense increased
$3.3 million, or 4%, in the third quarter of 2015 compared to the
second quarter of 2015. In addition to acquisition related charges
of $1.7 million, the increase was primarily a result of a $5.1
million increase in salaries as a result of various acquisitions
and additional staffing as the Company grows, partially offset by a
$3.6 million decrease in commissions and incentive compensation
primarily attributable to lower commissions as a result of
decreased mortgage loan origination volume. Salaries and employee
benefits expense increased $11.8 million, or 14%, compared to the
third quarter of 2014 primarily as a result of the $1.7 million in
acquisition related charges during the period as well as an
additional $6.2 million increase in salaries as a result of various
acquisitions and additional staffing as the Company grows, a $1.9
million increase in commissions and incentive compensation
primarily attributable to higher commissions as a result of
increased mortgage loan origination volume, and a $2.0 million
increase in employee benefits resulting from higher insurance
costs.
Equipment expense totaled $8.9 million for the
third quarter of 2015, an increase of $973,000 compared to the
second quarter of 2015 and an increase of $1.3 million compared to
the third quarter of 2014. The increase in the current quarter
compared to the prior year quarter is primarily related to the
impact of the recent acquisitions and increased software license
fees and higher depreciation as a result of equipment
purchases. Equipment expense includes depreciation on
equipment, maintenance and repairs, equipment rental and software
license fees.
Occupancy expense for the third quarter of 2015
was $12.1 million, an increase of $665,000, or 6%, compared to the
second quarter of 2015 and an increase of $1.6 million, or 16%,
compared to the same period in 2014. Occupancy expense
increased in the current quarter compared to the prior quarter due
to property taxes and additional depreciation expenses on owned
locations, including those obtained in the Company's acquisitions.
The increase in the current quarter as compared to the prior year
quarter is primarily the result of increased rent expense on leased
properties as well as additional depreciation expenses on owned
locations including those obtained in the Company's acquisitions.
Occupancy expense includes depreciation on premises, real estate
taxes, utilities and maintenance of premises, as well as net rent
expense for leased premises.
Data processing expenses totaled $8.1 million in
the third quarter of 2015 compared to $6.1 million recorded in the
second quarter of 2015 and $4.8 million recorded in the third
quarter of 2014. The amount of data processing expenses incurred
increased due to $2.7 million and $653,000 of additional expenses
recorded in the third quarter of 2015 and the second quarter of
2015, respectively, related to bank acquisition transactions as
well as overall growth of loan and deposit accounts.
Advertising and marketing expenses totaled $6.2
million in the third quarter of 2015, a decrease of $169,000
compared to the second quarter of 2015 and an increase of $2.7
million compared to the third quarter of 2014. The increase
in the current quarter compared to the prior year quarter relates
primarily to expenses for community-related advertisements and
sponsorships. Marketing costs are incurred to promote the Company's
brand, commercial banking capabilities, the Company's various
products, to attract loans and deposits and to announce new branch
openings as well as the expansion of the Company's non-bank
businesses. The level of marketing expenditures depends on the type
of marketing programs utilized which are determined based on the
market area, targeted audience, competition and various other
factors.
Professional fees for the third quarter of 2015
were $4.1 million, compared to $5.1 million for the second quarter
of 2015 and $4.0 million in the third quarter of 2014. The decrease
in professional fees in the current quarter as compared to the
second quarter of 2015 is due to a decrease in legal expenses,
including legal fees incurred in connection with acquisitions
as well as lower professional tax preparation fees. The majority of
legal work for the acquisitions completed early in the third
quarter of 2015 was performed in prior quarters of 2015.
These acquisition related professional fees totaled $335,000 in the
third quarter of 2015 compared to $417,000 in the second quarter of
2015. Professional fees include legal, audit and tax fees, external
loan review costs and normal regulatory exam assessments.
OREO expense totaled $(367,000) in the third
quarter of 2015 compared to OREO expense of $841,000 recorded in
the second quarter of 2015 and $581,000 recorded in the third
quarter of 2014. OREO expense was lower in the current
quarter compared to the quarter ended June 30, 2015 and
September 30, 2014 primarily due to higher gains recorded
on non-covered OREO sales in the current quarter and lower
expenses to maintain OREO properties. OREO costs include all
costs related to obtaining, maintaining and selling other real
estate owned properties.
Miscellaneous expense in the third quarter of
2015 increased $302,000, or 2%, compared to the quarter ended
June 30, 2015 and increased $1.4 million, or 10%, compared to
the quarter ended September 30, 2014. The increase in
the current quarter as compared to the prior year quarter is
primarily a result of higher travel and entertainment expenses and
increased costs related to insurance and donations. 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.
ASSET QUALITY
Allowance for Credit Losses,
excluding covered loans
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
(Dollars in thousands) |
|
2015 |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Allowance for loan
losses at beginning of period |
|
$ |
100,204 |
|
|
$ |
94,446 |
|
|
$ |
92,253 |
|
|
$ |
91,705 |
|
|
$ |
96,922 |
|
Provision for
credit losses |
|
8,665 |
|
|
9,701 |
|
|
6,028 |
|
|
24,551 |
|
|
16,145 |
|
Other
adjustments |
|
(153 |
) |
|
(93 |
) |
|
(335 |
) |
|
(494 |
) |
|
(588 |
) |
Reclassification
from (to) allowance for unfunded lending-related
commitments |
|
(42 |
) |
|
4 |
|
|
62 |
|
|
(151 |
) |
|
(102 |
) |
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
964 |
|
|
1,243 |
|
|
832 |
|
|
2,884 |
|
|
3,864 |
|
Commercial real estate |
|
1,948 |
|
|
856 |
|
|
4,510 |
|
|
3,809 |
|
|
11,354 |
|
Home equity |
|
1,116 |
|
|
1,847 |
|
|
748 |
|
|
3,547 |
|
|
3,745 |
|
Residential real estate |
|
1,138 |
|
|
923 |
|
|
205 |
|
|
2,692 |
|
|
1,120 |
|
Premium finance receivables -
commercial |
|
1,595 |
|
|
1,526 |
|
|
1,557 |
|
|
4,384 |
|
|
4,259 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
116 |
|
|
115 |
|
|
250 |
|
|
342 |
|
|
636 |
|
Total charge-offs |
|
6,877 |
|
|
6,510 |
|
|
8,102 |
|
|
17,658 |
|
|
24,978 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
462 |
|
|
285 |
|
|
296 |
|
|
1,117 |
|
|
883 |
|
Commercial real estate |
|
213 |
|
|
1,824 |
|
|
275 |
|
|
2,349 |
|
|
762 |
|
Home equity |
|
42 |
|
|
39 |
|
|
99 |
|
|
129 |
|
|
478 |
|
Residential real estate |
|
136 |
|
|
16 |
|
|
111 |
|
|
228 |
|
|
316 |
|
Premium finance receivables -
commercial |
|
278 |
|
|
458 |
|
|
289 |
|
|
1,065 |
|
|
920 |
|
Premium finance receivables - life
insurance |
|
16 |
|
|
— |
|
|
1 |
|
|
16 |
|
|
5 |
|
Consumer and other |
|
52 |
|
|
34 |
|
|
42 |
|
|
139 |
|
|
256 |
|
Total recoveries |
|
1,199 |
|
|
2,656 |
|
|
1,113 |
|
|
5,043 |
|
|
3,620 |
|
Net
charge-offs |
|
(5,678 |
) |
|
(3,854 |
) |
|
(6,989 |
) |
|
(12,615 |
) |
|
(21,358 |
) |
Allowance for loan losses
at period end |
|
$ |
102,996 |
|
|
$ |
100,204 |
|
|
$ |
91,019 |
|
|
$ |
102,996 |
|
|
$ |
91,019 |
|
Allowance for unfunded
lending-related commitments at period end |
|
926 |
|
|
884 |
|
|
822 |
|
|
926 |
|
|
822 |
|
Allowance for credit losses
at period end |
|
$ |
103,922 |
|
|
$ |
101,088 |
|
|
$ |
91,841 |
|
|
$ |
103,922 |
|
|
$ |
91,841 |
|
Annualized net charge-offs
by category as a percentage of its own respective
category’s average: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
0.05 |
% |
|
0.09 |
% |
|
0.06 |
% |
|
0.06 |
% |
|
0.11 |
% |
Commercial real estate |
|
0.13 |
|
|
(0.08 |
) |
|
0.38 |
|
|
0.04 |
|
|
0.33 |
|
Home equity |
|
0.55 |
|
|
1.01 |
|
|
0.36 |
|
|
0.62 |
|
|
0.61 |
|
Residential real estate |
|
0.42 |
|
|
0.39 |
|
|
0.05 |
|
|
0.37 |
|
|
0.15 |
|
Premium finance receivables -
commercial |
|
0.21 |
|
|
0.18 |
|
|
0.20 |
|
|
0.18 |
|
|
0.19 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
0.17 |
|
|
0.23 |
|
|
0.49 |
|
|
0.17 |
|
|
0.30 |
|
Total loans, net of unearned
income, excluding covered loans |
|
0.14 |
% |
|
0.10 |
% |
|
0.19 |
% |
|
0.11 |
% |
|
0.21 |
% |
Net charge-offs as a
percentage of the provision for credit losses |
|
65.53 |
% |
|
39.73 |
% |
|
115.95 |
% |
|
51.39 |
% |
|
132.29 |
% |
Loans at period-end,
excluding covered loans |
|
$ |
16,316,211 |
|
|
$ |
15,513,650 |
|
|
$ |
14,052,059 |
|
|
|
|
|
Allowance for loan losses
as a percentage of loans at period end |
|
0.63 |
% |
|
0.65 |
% |
|
0.65 |
% |
|
|
|
|
Allowance for credit losses
as a percentage of loans at period end |
|
0.64 |
% |
|
0.65 |
% |
|
0.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $8.7 million for the
third quarter of 2015 compared to $9.7 million for the second
quarter of 2015 and $6.0 million for the third quarter of 2014. The
higher provision for credit losses in the third quarter of 2015
compared to the same period of 2014 was primarily due to loan
growth since the prior period.
Net charge-offs as a percentage of loans,
excluding covered loans, for the third quarter of 2015 totaled 14
basis points on an annualized basis compared to ten basis points on
an annualized basis in the second quarter of 2015 and 19 basis
points on an annualized basis in the third quarter of 2014.
Net charge-offs totaled $5.7 million in the third quarter of 2015,
a $1.8 million increase from $3.9 million in the second quarter of
2015 and a $1.3 million decrease from $7.0 million in the third
quarter of 2014.
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 following table presents the provision for
credit losses and allowance for credit losses by component for the
periods presented:
|
|
Three months ended |
|
Nine months ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
(Dollars in thousands) |
|
2015 |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Provision for loan
losses |
|
$ |
8,623 |
|
|
$ |
9,705 |
|
|
$ |
6,090 |
|
|
$ |
24,400 |
|
|
$ |
16,043 |
|
Provision for unfunded
lending-related commitments |
|
42 |
|
|
(4 |
) |
|
(62 |
) |
|
151 |
|
|
102 |
|
Provision for covered loan
losses |
|
(343 |
) |
|
(219 |
) |
|
(164 |
) |
|
(668 |
) |
|
(1,741 |
) |
Provision for credit
losses |
|
$ |
8,322 |
|
|
$ |
9,482 |
|
|
$ |
5,864 |
|
|
$ |
23,883 |
|
|
$ |
14,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
|
|
|
|
|
2015 |
|
2015 |
|
2014 |
Allowance for
loan losses |
|
$ |
102,996 |
|
|
$ |
100,204 |
|
|
$ |
91,019 |
|
Allowance for
unfunded lending-related commitments |
|
926 |
|
|
884 |
|
|
822 |
|
Allowance for
covered loan losses |
|
2,918 |
|
|
2,215 |
|
|
2,655 |
|
Allowance for
credit losses |
|
$ |
106,840 |
|
|
$ |
103,303 |
|
|
$ |
94,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
September 30, 2015 and June 30, 2015.
|
|
As of September 30, 2015 |
|
|
Recorded |
|
Calculated |
|
As a percentage
of its own respective |
(Dollars in thousands) |
|
Investment |
|
Allowance |
|
category’s balance |
Commercial:(1) |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
2,579,208 |
|
|
$ |
21,875 |
|
|
0.85 |
% |
Asset-based lending |
|
797,301 |
|
|
6,282 |
|
|
0.79 |
|
Tax exempt |
|
230,878 |
|
|
1,303 |
|
|
0.56 |
|
Leases |
|
205,612 |
|
|
169 |
|
|
0.08 |
|
Other |
|
1,953 |
|
|
12 |
|
|
0.61 |
|
Commercial
real-estate:(1) |
|
|
|
|
|
|
Residential construction |
|
60,072 |
|
|
753 |
|
|
1.25 |
|
Commercial construction |
|
283,689 |
|
|
2,995 |
|
|
1.06 |
|
Land |
|
73,923 |
|
|
2,550 |
|
|
3.45 |
|
Office |
|
762,734 |
|
|
7,154 |
|
|
0.94 |
|
Industrial |
|
614,619 |
|
|
5,515 |
|
|
0.90 |
|
Retail |
|
753,009 |
|
|
5,254 |
|
|
0.70 |
|
Multi-family |
|
650,287 |
|
|
6,951 |
|
|
1.07 |
|
Mixed use and other |
|
1,517,265 |
|
|
12,077 |
|
|
0.80 |
|
Home
equity(1) |
|
694,203 |
|
|
12,205 |
|
|
1.76 |
|
Residential
real-estate(1) |
|
518,756 |
|
|
4,580 |
|
|
0.88 |
|
Total core loan
portfolio |
|
$ |
9,743,509 |
|
|
$ |
89,675 |
|
|
0.92 |
% |
Commercial: |
|
|
|
|
|
|
Franchise |
|
$ |
222,001 |
|
|
$ |
3,145 |
|
|
1.42 |
% |
Mortgage warehouse lines of
credit |
|
136,614 |
|
|
1,022 |
|
|
0.75 |
|
Community Advantage - homeowner
associations |
|
123,209 |
|
|
3 |
|
|
— |
|
Aircraft |
|
6,371 |
|
|
8 |
|
|
0.13 |
|
Purchased non-covered commercial
loans (2) |
|
97,038 |
|
|
171 |
|
|
0.18 |
|
Commercial
real-estate: |
|
|
|
|
|
|
Purchased non-covered commercial
real-estate (2) |
|
591,968 |
|
|
812 |
|
|
0.14 |
|
Purchased non-covered
home equity (2) |
|
103,262 |
|
|
18 |
|
|
0.02 |
|
Purchased non-covered
residential real-estate (2) |
|
52,987 |
|
|
6 |
|
|
0.01 |
|
Premium finance
receivables |
|
|
|
|
|
|
U.S. commercial insurance
loans |
|
2,127,969 |
|
|
5,458 |
|
|
0.26 |
|
Canada commercial insurance loans
(2) |
|
279,106 |
|
|
583 |
|
|
0.21 |
|
Life insurance loans
(1) |
|
2,326,689 |
|
|
1,040 |
|
|
0.04 |
|
Purchased life insurance loans
(2) |
|
373,586 |
|
|
— |
|
|
— |
|
Consumer and other
(1) |
|
127,011 |
|
|
1,054 |
|
|
0.83 |
|
Purchased non-covered
consumer and other (2) |
|
4,891 |
|
|
1 |
|
|
0.02 |
|
Total consumer, niche and
purchased loan portfolio |
|
$ |
6,572,702 |
|
|
$ |
13,321 |
|
|
0.20 |
% |
Total loans, net of
unearned income, excluding covered loans |
|
$ |
16,316,211 |
|
|
$ |
102,996 |
|
|
0.63 |
% |
Non-accretable credit
discounts on purchased loans reported in accordance with ASC
310-30, excluding covered loans |
|
|
|
$ |
30,405 |
|
|
|
Total allowance for loan
losses and non-accretable credit discounts on purchased loans,
excluding covered loans |
|
|
|
$ |
133,401 |
|
|
0.82 |
% |
(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 June 30, 2015 |
|
|
Recorded |
|
Calculated |
|
As a percentage
of its own respective |
(Dollars in thousands) |
|
Investment |
|
Allowance |
|
category’s balance |
Commercial:(1) |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
2,486,860 |
|
|
$ |
21,691 |
|
|
0.87 |
% |
Asset-based lending |
|
830,378 |
|
|
6,382 |
|
|
0.77 |
|
Tax exempt |
|
198,520 |
|
|
1,186 |
|
|
0.60 |
|
Leases |
|
187,630 |
|
|
166 |
|
|
0.09 |
|
Other |
|
2,772 |
|
|
20 |
|
|
0.72 |
|
Commercial
real-estate:(1) |
|
|
|
|
|
|
Residential construction |
|
56,500 |
|
|
687 |
|
|
1.22 |
|
Commercial construction |
|
247,982 |
|
|
2,656 |
|
|
1.07 |
|
Land |
|
81,630 |
|
|
2,513 |
|
|
3.08 |
|
Office |
|
726,155 |
|
|
7,127 |
|
|
0.98 |
|
Industrial |
|
608,566 |
|
|
4,524 |
|
|
0.74 |
|
Retail |
|
718,990 |
|
|
5,002 |
|
|
0.70 |
|
Multi-family |
|
634,144 |
|
|
7,172 |
|
|
1.13 |
|
Mixed use and other |
|
1,466,366 |
|
|
12,164 |
|
|
0.83 |
|
Home
equity(1) |
|
692,692 |
|
|
12,270 |
|
|
1.77 |
|
Residential
real-estate(1) |
|
469,265 |
|
|
4,966 |
|
|
1.06 |
|
Total core loan
portfolio |
|
$ |
9,408,450 |
|
|
$ |
88,526 |
|
|
0.94 |
% |
Commercial: |
|
|
|
|
|
|
Franchise |
|
$ |
228,599 |
|
|
$ |
1,852 |
|
|
0.81 |
% |
Mortgage warehouse lines of
credit |
|
213,797 |
|
|
1,571 |
|
|
0.73 |
|
Community Advantage - homeowner
associations |
|
114,883 |
|
|
3 |
|
|
— |
|
Aircraft |
|
6,831 |
|
|
9 |
|
|
0.13 |
|
Purchased non-covered commercial
loans (2) |
|
60,074 |
|
|
20 |
|
|
0.03 |
|
Commercial
real-estate: |
|
|
|
|
|
|
Purchased non-covered commercial
real-estate (2) |
|
310,257 |
|
|
353 |
|
|
0.11 |
|
Purchased non-covered
home equity (2) |
|
19,658 |
|
|
18 |
|
|
0.09 |
|
Purchased non-covered
residential real-estate (2) |
|
33,750 |
|
|
53 |
|
|
0.16 |
|
Premium finance
receivables |
|
|
|
|
|
|
U.S. commercial insurance
loans |
|
2,163,089 |
|
|
5,502 |
|
|
0.25 |
|
Canada commercial insurance loans
(2) |
|
297,319 |
|
|
620 |
|
|
0.21 |
|
Life insurance loans
(1) |
|
2,153,155 |
|
|
799 |
|
|
0.04 |
|
Purchased life insurance loans
(2) |
|
384,320 |
|
|
— |
|
|
— |
|
Consumer and other
(1) |
|
115,675 |
|
|
877 |
|
|
0.76 |
|
Purchased non-covered
consumer and other (2) |
|
|
3,793 |
|
|
|
1 |
|
|
0.03 |
|
Total consumer, niche and
purchased loan portfolio |
|
$ |
6,105,200 |
|
|
$ |
11,678 |
|
|
0.19 |
% |
Total loans, net of
unearned income, excluding covered loans |
|
$ |
15,513,650 |
|
|
$ |
100,204 |
|
|
0.65 |
% |
Non-accretable credit
discounts on purchased loans reported in accordance with ASC
310-30, excluding covered loans |
|
|
|
$ |
14,474 |
|
|
|
Total allowance for loan
losses and non-accretable credit discounts on purchased loans,
excluding covered loans |
|
|
|
$ |
114,678 |
|
|
0.74 |
% |
(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 the regular 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 September 30, 2015 and June 30,
2015.
The decrease in the allowance for loan losses to
core loans in the third quarter of 2015 compared to the second
quarter of 2015 was attributable to a decrease in required ASC 310
reserves (specific reserves) within the core portfolio.
Current credit quality metrics are comparable to
the pre-credit crisis levels reported between 2005 and 2008.
However, we are able to carry a slightly lower ratio of allowance
for loan losses to total loans than during the pre-credit crisis
period as the result of the fact that the mix of the Company's loan
portfolio is now more heavily weighted toward niche and purchased
loans which historically require lower reserves. The niche
and purchased components of our total loan portfolio now comprise
40% as compared to 23% of the total loan portfolio at December 31,
2005. Our current loan portfolio is comprised of a core
portion totaling $9.7 billion with a 0.92% of allowance for loan
losses and a niche and purchased component totaling $6.6 billion
that requires 0.20% of allowance for loan losses.
Purchased loans acquired in a business
combination are recorded at estimated fair value on their purchase
date. In accordance with accounting guidance, credit deterioration
on purchased loans is recorded as a credit discount at the time of
purchase instead of as an increase to the allowance for loan
losses. For analysis purposes, the Company has combined the
non-accretable credit discounts recorded on purchased loans with
the total allowance for loan losses in the previous tables to
present the total credit reserves available on its loan portfolio.
The total allowance for loan losses and non-accretable credit
discounts on purchased loans was 0.82% of the total loan portfolio
as of September 30, 2015 as compared to 0.74% as of June 30, 2015.
The Company expects the total allowance for loan losses and
non-accretable credit discounts on purchased loans to total loans
ratio to increase in periods that have acquisitions and decrease in
periods without acquisitions, based on the performance of the
purchased loan portfolios.
The table below shows the aging of the Company’s
loan portfolio at September 30, 2015:
|
|
|
|
90+ days |
|
60-89 |
|
30-59 |
|
|
|
|
As of September
30, 2015 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
12,006 |
|
|
$ |
— |
|
|
$ |
2,731 |
|
|
$ |
9,331 |
|
|
$ |
2,622,207 |
|
|
$ |
2,646,275 |
|
Franchise |
|
— |
|
|
— |
|
|
80 |
|
|
376 |
|
|
221,545 |
|
|
222,001 |
|
Mortgage warehouse lines of
credit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
136,614 |
|
|
136,614 |
|
Community Advantage - homeowners
association |
|
— |
|
|
— |
|
|
44 |
|
|
— |
|
|
123,165 |
|
|
123,209 |
|
Aircraft |
|
— |
|
|
— |
|
|
— |
|
|
378 |
|
|
5,993 |
|
|
6,371 |
|
Asset-based lending |
|
12 |
|
|
— |
|
|
1,313 |
|
|
247 |
|
|
800,798 |
|
|
802,370 |
|
Tax exempt |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
232,667 |
|
|
232,667 |
|
Leases |
|
— |
|
|
— |
|
|
— |
|
|
89 |
|
|
205,697 |
|
|
205,786 |
|
Other |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,953 |
|
|
1,953 |
|
PCI - commercial
(1) |
|
— |
|
|
217 |
|
|
— |
|
|
39 |
|
|
22,683 |
|
|
22,939 |
|
Total commercial |
|
12,018 |
|
|
217 |
|
|
4,168 |
|
|
10,460 |
|
|
4,373,322 |
|
|
4,400,185 |
|
Commercial
real-estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential construction |
|
— |
|
|
— |
|
|
— |
|
|
1,141 |
|
|
60,130 |
|
|
61,271 |
|
Commercial construction |
|
31 |
|
|
— |
|
|
— |
|
|
2,394 |
|
|
283,538 |
|
|
285,963 |
|
Land |
|
1,756 |
|
|
— |
|
|
— |
|
|
2,207 |
|
|
75,113 |
|
|
79,076 |
|
Office |
|
4,045 |
|
|
— |
|
|
10,861 |
|
|
2,362 |
|
|
773,043 |
|
|
790,311 |
|
Industrial |
|
11,637 |
|
|
— |
|
|
786 |
|
|
897 |
|
|
622,804 |
|
|
636,124 |
|
Retail |
|
2,022 |
|
|
— |
|
|
1,536 |
|
|
821 |
|
|
781,463 |
|
|
785,842 |
|
Multi-family |
|
1,525 |
|
|
— |
|
|
512 |
|
|
744 |
|
|
684,878 |
|
|
687,659 |
|
Mixed use and other |
|
7,601 |
|
|
— |
|
|
2,340 |
|
|
12,871 |
|
|
1,797,516 |
|
|
1,820,328 |
|
PCI - commercial real-estate
(1) |
|
— |
|
|
13,547 |
|
|
299 |
|
|
583 |
|
|
146,563 |
|
|
160,992 |
|
Total commercial real-estate |
|
28,617 |
|
|
13,547 |
|
|
16,334 |
|
|
24,020 |
|
|
5,225,048 |
|
|
5,307,566 |
|
Home equity |
|
8,365 |
|
|
— |
|
|
811 |
|
|
4,124 |
|
|
784,165 |
|
|
797,465 |
|
Residential real
estate |
|
14,557 |
|
|
— |
|
|
1,017 |
|
|
1,195 |
|
|
551,292 |
|
|
568,061 |
|
PCI - residential real
estate (1) |
|
— |
|
|
424 |
|
|
323 |
|
|
411 |
|
|
2,524 |
|
|
3,682 |
|
Premium finance
receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
13,751 |
|
|
8,231 |
|
|
6,664 |
|
|
13,659 |
|
|
2,364,770 |
|
|
2,407,075 |
|
Life insurance loans |
|
— |
|
|
— |
|
|
9,656 |
|
|
2,627 |
|
|
2,314,406 |
|
|
2,326,689 |
|
PCI - life insurance loans
(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
373,586 |
|
|
373,586 |
|
Consumer and other |
|
297 |
|
|
140 |
|
|
56 |
|
|
935 |
|
|
130,474 |
|
|
131,902 |
|
Total loans, net of unearned
income, excluding covered loans |
|
$ |
77,605 |
|
|
$ |
22,559 |
|
|
$ |
39,029 |
|
|
$ |
57,431 |
|
|
$ |
16,119,587 |
|
|
$ |
16,316,211 |
|
Covered loans |
|
6,540 |
|
|
7,626 |
|
|
1,392 |
|
|
802 |
|
|
152,249 |
|
|
168,609 |
|
Total loans, net of unearned
income |
|
$ |
84,145 |
|
|
$ |
30,185 |
|
|
$ |
40,421 |
|
|
$ |
58,233 |
|
|
$ |
16,271,836 |
|
|
$ |
16,484,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) PCI 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.
As of September
30, 2015
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 |
|
0.5 |
% |
|
— |
% |
|
0.1 |
% |
|
0.4 |
% |
|
99.0 |
% |
|
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 |
|
— |
|
|
— |
|
|
— |
|
|
5.9 |
|
|
94.1 |
|
|
100.0 |
|
Asset-based lending |
|
— |
|
|
— |
|
|
0.2 |
|
|
— |
|
|
99.8 |
|
|
100.0 |
|
Tax exempt |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Leases |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Other |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
PCI - commercial(1) |
|
— |
|
|
0.9 |
|
|
— |
|
|
0.2 |
|
|
98.9 |
|
|
100.0 |
|
Total commercial |
|
0.3 |
|
|
— |
|
|
0.1 |
|
|
0.2 |
|
|
99.4 |
|
|
100.0 |
|
Commercial
real-estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential construction |
|
— |
|
|
— |
|
|
— |
|
|
1.9 |
|
|
98.1 |
|
|
100.0 |
|
Commercial construction |
|
— |
|
|
— |
|
|
— |
|
|
0.8 |
|
|
99.2 |
|
|
100.0 |
|
Land |
|
2.2 |
|
|
— |
|
|
— |
|
|
2.8 |
|
|
95.0 |
|
|
100.0 |
|
Office |
|
0.5 |
|
|
— |
|
|
1.4 |
|
|
0.3 |
|
|
97.8 |
|
|
100.0 |
|
Industrial |
|
1.8 |
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
98.0 |
|
|
100.0 |
|
Retail |
|
0.3 |
|
|
— |
|
|
0.2 |
|
|
0.1 |
|
|
99.4 |
|
|
100.0 |
|
Multi-family |
|
0.2 |
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
99.6 |
|
|
100.0 |
|
Mixed use and other |
|
0.4 |
|
|
— |
|
|
0.1 |
|
|
0.7 |
|
|
98.8 |
|
|
100.0 |
|
PCI - commercial
real-estate (1) |
|
— |
|
|
8.4 |
|
|
0.2 |
|
|
0.4 |
|
|
91.0 |
|
|
100.0 |
|
Total commercial real-estate |
|
0.5 |
|
|
0.3 |
|
|
0.3 |
|
|
0.5 |
|
|
98.4 |
|
|
100.0 |
|
Home equity |
|
1.0 |
|
|
— |
|
|
0.1 |
|
|
0.5 |
|
|
98.4 |
|
|
100.0 |
|
Residential real
estate |
|
2.6 |
|
|
— |
|
|
0.2 |
|
|
0.2 |
|
|
97.0 |
|
|
100.0 |
|
PCI - residential real
estate(1) |
|
— |
|
|
11.5 |
|
|
8.8 |
|
|
11.2 |
|
|
68.5 |
|
|
100.0 |
|
Premium finance
receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
0.6 |
|
|
0.4 |
|
|
0.3 |
|
|
0.6 |
|
|
98.1 |
|
|
100.0 |
|
Life insurance loans |
|
— |
|
|
— |
|
|
0.4 |
|
|
0.1 |
|
|
99.5 |
|
|
100.0 |
|
PCI - life insurance loans
(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Consumer and other |
|
0.2 |
|
|
0.1 |
|
|
— |
|
|
0.7 |
|
|
99.0 |
|
|
100.0 |
|
Total loans, net of unearned
income, excluding covered loans |
|
0.5 |
% |
|
0.1 |
% |
|
0.2 |
% |
|
0.4 |
% |
|
98.8 |
% |
|
100.0 |
% |
Covered loans |
|
3.9 |
|
|
4.5 |
|
|
0.8 |
|
|
0.5 |
|
|
90.3 |
|
|
100.0 |
|
Total loans, net of unearned
income |
|
0.5 |
% |
|
0.2 |
% |
|
0.2 |
% |
|
0.4 |
% |
|
98.7 |
% |
|
100.0 |
% |
As of September 30, 2015, $39.0 million of
all loans, excluding covered loans, or 0.2%, were 60 to 89 days
past due and $57.4 million, or 0.4%, were 30 to 59 days (or one
payment) past due. As of June 30, 2015, $21.0 million of all
loans, excluding covered loans, or 0.1%, were 60 to 89 days past
due and $52.2 million, or 0.3%, were 30 to 59 days (or one payment)
past due. The majority of the commercial and commercial real estate
loans shown as 60 to 89 days and 30 to 59 days past due are
included on the Company’s internal problem loan reporting system.
Loans on this system are closely monitored by management on a
monthly basis.
The Company’s home equity and residential loan
portfolios continue to exhibit low delinquency ratios. Home equity
loans at September 30, 2015 that are current with regard to
the contractual terms of the loan agreement represent 98.4% of the
total home equity portfolio. Residential real estate loans at
September 30, 2015 that are current with regards to the
contractual terms of the loan agreements comprise 96.9% 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 June 30, 2015:
|
|
|
|
90+ days |
|
60-89 |
|
30-59 |
|
|
|
|
As of June 30,
2015 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
4,424 |
|
|
$ |
— |
|
|
$ |
1,846 |
|
|
$ |
6,027 |
|
|
$ |
2,522,162 |
|
|
$ |
2,534,459 |
|
Franchise |
|
905 |
|
|
— |
|
|
113 |
|
|
396 |
|
|
227,185 |
|
|
228,599 |
|
Mortgage warehouse lines of
credit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
213,797 |
|
|
213,797 |
|
Community Advantage - homeowners
association |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
114,883 |
|
|
114,883 |
|
Aircraft |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
6,831 |
|
|
6,831 |
|
Asset-based lending |
|
— |
|
|
— |
|
|
1,767 |
|
|
7,423 |
|
|
823,265 |
|
|
832,455 |
|
Tax exempt |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
199,185 |
|
|
199,185 |
|
Leases |
|
65 |
|
|
— |
|
|
— |
|
|
— |
|
|
187,565 |
|
|
187,630 |
|
Other |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,772 |
|
|
2,772 |
|
PCI - commercial(1) |
|
— |
|
|
474 |
|
|
— |
|
|
233 |
|
|
9,026 |
|
|
9,733 |
|
Total commercial |
|
5,394 |
|
|
474 |
|
|
3,726 |
|
|
14,079 |
|
|
4,306,671 |
|
|
4,330,344 |
|
Commercial
real-estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential construction |
|
— |
|
|
— |
|
|
— |
|
|
4 |
|
|
57,598 |
|
|
57,602 |
|
Commercial construction |
|
19 |
|
|
— |
|
|
— |
|
|
— |
|
|
249,524 |
|
|
249,543 |
|
Land |
|
2,035 |
|
|
— |
|
|
1,123 |
|
|
2,399 |
|
|
82,280 |
|
|
87,837 |
|
Office |
|
6,360 |
|
|
701 |
|
|
163 |
|
|
2,601 |
|
|
744,992 |
|
|
754,817 |
|
Industrial |
|
2,568 |
|
|
— |
|
|
18 |
|
|
484 |
|
|
624,337 |
|
|
627,407 |
|
Retail |
|
2,352 |
|
|
— |
|
|
896 |
|
|
2,458 |
|
|
744,285 |
|
|
749,991 |
|
Multi-family |
|
1,730 |
|
|
— |
|
|
933 |
|
|
223 |
|
|
665,562 |
|
|
668,448 |
|
Mixed use and other |
|
8,119 |
|
|
— |
|
|
2,405 |
|
|
3,752 |
|
|
1,577,846 |
|
|
1,592,122 |
|
PCI - commercial
real-estate (1) |
|
— |
|
|
15,646 |
|
|
3,490 |
|
|
2,798 |
|
|
40,889 |
|
|
62,823 |
|
Total commercial real-estate |
|
23,183 |
|
|
16,347 |
|
|
9,028 |
|
|
14,719 |
|
|
4,787,313 |
|
|
4,850,590 |
|
Home equity |
|
5,695 |
|
|
— |
|
|
511 |
|
|
3,365 |
|
|
702,779 |
|
|
712,350 |
|
Residential real
estate |
|
16,631 |
|
|
— |
|
|
2,410 |
|
|
1,205 |
|
|
480,427 |
|
|
500,673 |
|
PCI - residential real
estate (1) |
|
— |
|
|
264 |
|
|
84 |
|
|
— |
|
|
1,994 |
|
|
2,342 |
|
Premium finance
receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
15,156 |
|
|
9,053 |
|
|
5,048 |
|
|
11,071 |
|
|
2,420,080 |
|
|
2,460,408 |
|
Life insurance loans |
|
— |
|
|
351 |
|
|
— |
|
|
6,823 |
|
|
2,145,981 |
|
|
2,153,155 |
|
PCI - life insurance loans
(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
384,320 |
|
|
384,320 |
|
Consumer and other |
|
280 |
|
|
110 |
|
|
196 |
|
|
919 |
|
|
117,963 |
|
|
119,468 |
|
Total loans, net of unearned
income, excluding covered loans |
|
$ |
66,339 |
|
|
$ |
26,599 |
|
|
$ |
21,003 |
|
|
$ |
52,181 |
|
|
$ |
15,347,528 |
|
|
$ |
15,513,650 |
|
Covered loans |
|
6,353 |
|
|
10,030 |
|
|
1,333 |
|
|
1,720 |
|
|
173,974 |
|
|
193,410 |
|
Total loans, net of unearned
income |
|
$ |
72,692 |
|
|
$ |
36,629 |
|
|
$ |
22,336 |
|
|
$ |
53,901 |
|
|
$ |
15,521,502 |
|
|
$ |
15,707,060 |
|
(1) PCI 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.
As of June 30,
2015
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 |
|
0.2 |
% |
|
— |
% |
|
0.1 |
% |
|
0.2 |
% |
|
99.5 |
% |
|
100.0 |
% |
Franchise |
|
0.4 |
|
|
— |
|
|
— |
|
|
0.2 |
|
|
99.4 |
|
|
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 |
|
|
0.9 |
|
|
98.9 |
|
|
100.0 |
|
Tax exempt |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Leases |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Other |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
PCI - commercial(1) |
|
— |
|
|
4.9 |
|
|
— |
|
|
2.4 |
|
|
92.7 |
|
|
100.0 |
|
Total commercial |
|
0.1 |
|
|
— |
|
|
0.1 |
|
|
0.3 |
|
|
99.5 |
|
|
100.0 |
|
Commercial
real-estate |
|
|
|
|
|
|
|
|
|
|
|
|
Residential construction |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Commercial construction |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Land |
|
2.3 |
|
|
— |
|
|
1.3 |
|
|
2.7 |
|
|
93.7 |
|
|
100.0 |
|
Office |
|
0.8 |
|
|
0.1 |
|
|
— |
|
|
0.3 |
|
|
98.8 |
|
|
100.0 |
|
Industrial |
|
0.4 |
|
|
— |
|
|
— |
|
|
0.1 |
|
|
99.5 |
|
|
100.0 |
|
Retail |
|
0.3 |
|
|
— |
|
|
0.1 |
|
|
0.3 |
|
|
99.3 |
|
|
100.0 |
|
Multi-family |
|
0.3 |
|
|
— |
|
|
0.1 |
|
|
— |
|
|
99.6 |
|
|
100.0 |
|
Mixed use and other |
|
0.5 |
|
|
— |
|
|
0.2 |
|
|
0.2 |
|
|
99.1 |
|
|
100.0 |
|
PCI - commercial real-estate
(1) |
|
— |
|
|
24.9 |
|
|
5.6 |
|
|
4.5 |
|
|
65.0 |
|
|
100.0 |
|
Total commercial real-estate |
|
0.5 |
|
|
0.3 |
|
|
0.2 |
|
|
0.3 |
|
|
98.7 |
|
|
100.0 |
|
Home equity |
|
0.8 |
|
|
— |
|
|
0.1 |
|
|
0.5 |
|
|
98.6 |
|
|
100.0 |
|
Residential real
estate |
|
3.3 |
|
|
— |
|
|
0.5 |
|
|
0.2 |
|
|
96.0 |
|
|
100.0 |
|
PCI - residential real
estate (1) |
|
— |
|
|
11.3 |
|
|
3.6 |
|
|
— |
|
|
85.1 |
|
|
100.0 |
|
Premium finance
receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
0.6 |
|
|
0.5 |
|
|
0.2 |
|
|
0.4 |
|
|
98.3 |
|
|
100.0 |
|
Life insurance loans |
|
— |
|
|
— |
|
|
— |
|
|
0.3 |
|
|
99.7 |
|
|
100.0 |
|
PCI - life insurance loans
(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Consumer and other |
|
0.2 |
|
|
0.1 |
|
|
0.2 |
|
|
0.8 |
|
|
98.7 |
|
|
100.0 |
|
Total loans, net of unearned
income, excluding covered loans |
|
0.4 |
% |
|
0.2 |
% |
|
0.1 |
% |
|
0.3 |
% |
|
99.0 |
% |
|
100.0 |
% |
Covered loans |
|
3.3 |
|
|
5.2 |
|
|
0.7 |
|
|
0.9 |
|
|
89.9 |
|
|
100.0 |
|
Total loans, net of unearned
income |
|
0.5 |
% |
|
0.2 |
% |
|
0.1 |
% |
|
0.3 |
% |
|
98.9 |
% |
|
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 non-covered PCI loans, at
the dates indicated.
|
|
September 30, |
|
June 30, |
|
September 30, |
(Dollars in thousands) |
|
2015 |
|
2015 |
|
2014 |
Loans past due
greater than 90 days and still
accruing(1): |
|
|
|
|
|
|
Commercial |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Commercial real-estate |
|
— |
|
|
701 |
|
|
— |
|
Home equity |
|
— |
|
|
— |
|
|
— |
|
Residential real-estate |
|
— |
|
|
— |
|
|
— |
|
Premium finance receivables -
commercial |
|
8,231 |
|
|
9,053 |
|
|
7,115 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
351 |
|
|
— |
|
Consumer and other |
|
140 |
|
|
110 |
|
|
175 |
|
Total loans past due greater than
90 days and still accruing |
|
8,371 |
|
|
10,215 |
|
|
7,290 |
|
Non-accrual
loans(2): |
|
|
|
|
|
|
Commercial |
|
12,018 |
|
|
5,394 |
|
|
10,455 |
|
Commercial real-estate |
|
28,617 |
|
|
23,183 |
|
|
27,363 |
|
Home equity |
|
8,365 |
|
|
5,695 |
|
|
5,696 |
|
Residential real-estate |
|
14,557 |
|
|
16,631 |
|
|
15,730 |
|
Premium finance receivables -
commercial |
|
13,751 |
|
|
15,156 |
|
|
14,110 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
297 |
|
|
280 |
|
|
426 |
|
Total non-accrual loans |
|
77,605 |
|
|
66,339 |
|
|
73,780 |
|
Total
non-performing loans: |
|
|
|
|
|
|
Commercial |
|
12,018 |
|
|
5,394 |
|
|
10,455 |
|
Commercial real-estate |
|
28,617 |
|
|
23,884 |
|
|
27,363 |
|
Home equity |
|
8,365 |
|
|
5,695 |
|
|
5,696 |
|
Residential real-estate |
|
14,557 |
|
|
16,631 |
|
|
15,730 |
|
Premium finance receivables -
commercial |
|
21,982 |
|
|
24,209 |
|
|
21,225 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
351 |
|
|
— |
|
Consumer and other |
|
437 |
|
|
390 |
|
|
601 |
|
Total non-performing loans |
|
$ |
85,976 |
|
|
$ |
76,554 |
|
|
$ |
81,070 |
|
Other real estate owned |
|
29,053 |
|
|
33,044 |
|
|
41,506 |
|
Other real estate owned - from
acquisitions |
|
22,827 |
|
|
9,036 |
|
|
8,871 |
|
Other repossessed assets |
|
193 |
|
|
231 |
|
|
292 |
|
Total non-performing assets |
|
$ |
138,049 |
|
|
$ |
118,865 |
|
|
$ |
131,739 |
|
TDRs performing under the
contractual terms of the loan agreement |
|
$ |
49,173 |
|
|
$ |
52,174 |
|
|
$ |
69,868 |
|
Total
non-performing loans by category as a percent of its own
respective category’s period-end balance: |
|
|
|
|
|
|
Commercial |
|
0.27 |
% |
|
0.12 |
% |
|
0.28 |
% |
Commercial real-estate |
|
0.54 |
|
|
0.49 |
|
|
0.61 |
|
Home equity |
|
1.05 |
|
|
0.80 |
|
|
0.79 |
|
Residential real-estate |
|
2.55 |
|
|
3.31 |
|
|
3.34 |
|
Premium finance receivables -
commercial |
|
0.91 |
|
|
0.98 |
|
|
0.89 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
0.01 |
|
|
— |
|
Consumer and other |
|
0.33 |
|
|
0.33 |
|
|
0.40 |
|
Total loans, net of unearned
income |
|
0.53 |
% |
|
0.49 |
% |
|
0.58 |
% |
Total
non-performing assets as a percentage of total
assets |
|
0.63 |
% |
|
0.57 |
% |
|
0.69 |
% |
Allowance for loan
losses as a percentage of total non-performing
loans |
|
119.79 |
% |
|
130.89 |
% |
|
112.27 |
% |
(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 $10.1 million,
$10.6 million, and $13.5 million as of September 30,
2015, June 30, 2015, and September 30, 2014,
respectively.
Non-performing Commercial and Commercial Real
Estate
Non-performing commercial and commercial real
estate loans totaled $40.6 million as of September 30, 2015
compared to $29.3 million at June 30, 2015 and $37.8 million at
September 30, 2014. The increase compared to June 30,
2015 is primarily the result of a single customer relationship
totaling $9.3 million being placed in nonaccrual status at
quarter-end.
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 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 $22.9 million as of September 30,
2015. The balance remained relatively unchanged compared to
$22.3 million and $21.4 million at June 30, 2015 and
September 30, 2014, respectively. The September 30,
2015 non-performing balance is comprised of $14.6 million of
residential real estate (71 individual credits) and $8.4 million of
home equity loans (50 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 are expected 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 September 30, 2015, June 30, 2015 and
September 30, 2014 and the amount of net charge-offs for the
quarters then ended.
|
|
September 30, |
|
June 30, |
|
September 30, |
(Dollars in thousands) |
|
2015 |
|
2015 |
|
2014 |
Non-performing premium
finance receivables - commercial |
|
$ |
21,982 |
|
|
$ |
24,209 |
|
|
$ |
21,225 |
|
- as a percent of premium finance
receivables - commercial outstanding |
|
0.91 |
% |
|
0.98 |
% |
|
0.89 |
% |
Net charge-offs of premium
finance receivables - commercial |
|
$ |
1,317 |
|
|
$ |
1,068 |
|
|
$ |
1,268 |
|
- annualized as a percent of
average premium finance receivables - commercial |
|
0.21 |
% |
|
0.18 |
% |
|
0.20 |
% |
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 are expected
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 right 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 periods presented:
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
(Dollars in thousands) |
|
2015 |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Balance at beginning of
period |
|
$ |
76,554 |
|
|
$ |
81,772 |
|
|
$ |
88,650 |
|
|
$ |
78,677 |
|
|
$ |
103,334 |
|
Additions, net |
|
24,333 |
|
|
8,828 |
|
|
10,389 |
|
|
42,141 |
|
|
31,187 |
|
Return to performing status |
|
(1,028 |
) |
|
(847 |
) |
|
(3,745 |
) |
|
(2,591 |
) |
|
(6,812 |
) |
Payments received |
|
(5,468 |
) |
|
(6,580 |
) |
|
(4,792 |
) |
|
(16,417 |
) |
|
(11,605 |
) |
Transfer to OREO and other
repossessed assets |
|
(1,773 |
) |
|
(4,365 |
) |
|
(2,782 |
) |
|
(8,678 |
) |
|
(22,536 |
) |
Charge-offs |
|
(4,081 |
) |
|
(2,755 |
) |
|
(4,751 |
) |
|
(8,637 |
) |
|
(14,127 |
) |
Net change for niche loans
(1) |
|
(2,561 |
) |
|
501 |
|
|
(1,899 |
) |
|
1,481 |
|
|
1,629 |
|
Balance at end of
period |
|
$ |
85,976 |
|
|
$ |
76,554 |
|
|
$ |
81,070 |
|
|
$ |
85,976 |
|
|
$ |
81,070 |
|
(1) This includes activity for premium finance
receivables and indirect consumer loans.
TDRs
The table below presents a summary of TDRs as of
the respective date, presented by loan category and accrual
status:
|
|
September 30, |
|
June 30, |
|
September 30, |
(Dollars in thousands) |
|
2015 |
|
2015 |
|
2014 |
Accruing
TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
5,717 |
|
|
$ |
6,039 |
|
|
$ |
5,517 |
|
Commercial real estate |
|
39,867 |
|
|
42,210 |
|
|
61,288 |
|
Residential real estate and
other |
|
3,589 |
|
|
3,925 |
|
|
3,063 |
|
Total accrual |
|
$ |
49,173 |
|
|
$ |
52,174 |
|
|
$ |
69,868 |
|
Non-accrual
TDRs: (1) |
|
|
|
|
|
|
Commercial |
|
$ |
147 |
|
|
$ |
165 |
|
|
$ |
927 |
|
Commercial real estate |
|
5,778 |
|
|
6,240 |
|
|
9,153 |
|
Residential real estate and
other |
|
4,222 |
|
|
4,197 |
|
|
3,437 |
|
Total non-accrual |
|
$ |
10,147 |
|
|
$ |
10,602 |
|
|
$ |
13,517 |
|
Total
TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
5,864 |
|
|
$ |
6,204 |
|
|
$ |
6,444 |
|
Commercial real estate |
|
45,645 |
|
|
48,450 |
|
|
70,441 |
|
Residential real estate and
other |
|
7,811 |
|
|
8,122 |
|
|
6,500 |
|
Total TDRs |
|
$ |
59,320 |
|
|
$ |
62,776 |
|
|
$ |
83,385 |
|
Weighted-average
contractual interest rate of TDRs |
|
4.04 |
% |
|
4.05 |
% |
|
4.05 |
% |
(1) Included in total non-performing
loans.
At September 30, 2015, the Company had
$59.3 million in loans modified in TDRs. The $59.3 million in
TDRs represents 114 credits in which economic concessions were
granted to certain borrowers to better align the terms of their
loans with their current ability to pay. The balance
decreased from $62.8 million representing 122 credits at
June 30, 2015 and decreased from $83.4 million representing
145 credits at September 30, 2014.
The table below presents a summary of TDRs as of
September 30, 2015 and September 30, 2014, and shows the
changes in the balance during the periods presented:
Three Months Ended September 30,
2015 |
|
(Dollars in thousands) |
|
Commercial |
|
Commercial
Real Estate |
|
Residential
Real Estate
and Other |
|
Total |
Balance at beginning of
period |
|
$ |
6,204 |
|
|
$ |
48,450 |
|
|
$ |
8,122 |
|
|
$ |
62,776 |
|
Additions during the
period |
|
— |
|
|
|
|
222 |
|
|
222 |
|
Reductions: |
|
|
|
|
|
|
|
|
Charge-offs |
|
— |
|
|
(267 |
) |
|
(52 |
) |
|
(319 |
) |
Transferred to OREO and other
repossessed assets |
|
— |
|
|
— |
|
|
(175 |
) |
|
(175 |
) |
Removal of TDR loan status
(1) |
|
(234 |
) |
|
(1,581 |
) |
|
— |
|
|
(1,815 |
) |
Payments received, net |
|
(106 |
) |
|
(957 |
) |
|
(306 |
) |
|
(1,369 |
) |
Balance at period
end |
|
$ |
5,864 |
|
|
$ |
45,645 |
|
|
$ |
7,811 |
|
|
$ |
59,320 |
|
Three Months Ended September 30,
2014 |
|
(Dollars in thousands) |
|
Commercial |
|
Commercial
Real Estate |
|
Residential
Real Estate
and Other |
|
Total |
Balance at beginning of
period |
|
$ |
6,417 |
|
|
$ |
75,834 |
|
|
$ |
5,856 |
|
|
$ |
88,107 |
|
Additions during the
period |
|
— |
|
|
— |
|
|
667 |
|
|
667 |
|
Reductions: |
|
|
|
|
|
|
|
|
Charge-offs |
|
(28 |
) |
|
(2,584 |
) |
|
— |
|
|
(2,612 |
) |
Transferred to OREO and other
repossessed assets |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Removal of TDR loan status
(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Payments received, net |
|
55 |
|
|
(2,809 |
) |
|
(23 |
) |
|
(2,777 |
) |
Balance at period
end |
|
$ |
6,444 |
|
|
$ |
70,441 |
|
|
$ |
6,500 |
|
|
$ |
83,385 |
|
Nine Months Ended September 30, 2015 |
|
(Dollars in thousands) |
|
Commercial |
|
Commercial
Real Estate |
|
Residential
Real Estate
and Other |
|
Total |
Balance at beginning of
period |
|
$ |
7,576 |
|
|
$ |
67,623 |
|
|
$ |
7,076 |
|
|
$ |
82,275 |
|
Additions during the
period |
|
— |
|
|
169 |
|
|
1,664 |
|
|
1,833 |
|
Reductions: |
|
|
|
|
|
|
|
|
Charge-offs |
|
(397 |
) |
|
(268 |
) |
|
(92 |
) |
|
(757 |
) |
Transferred to OREO and other
repossessed assets |
|
(562 |
) |
|
(2,290 |
) |
|
(279 |
) |
|
(3,131 |
) |
Removal of TDR loan status
(1) |
|
(471 |
) |
|
(10,151 |
) |
|
— |
|
|
(10,622 |
) |
Payments received, net |
|
(282 |
) |
|
(9,438 |
) |
|
(558 |
) |
|
(10,278 |
) |
Balance at period
end |
|
$ |
5,864 |
|
|
$ |
45,645 |
|
|
$ |
7,811 |
|
|
$ |
59,320 |
|
(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.
Nine Months Ended September 30, 2014 |
|
(Dollars in thousands) |
|
Commercial |
|
Commercial
Real Estate |
|
Residential
Real Estate
and Other |
|
Total |
Balance at beginning of
period |
|
$ |
7,388 |
|
|
$ |
93,535 |
|
|
$ |
6,180 |
|
|
$ |
107,103 |
|
Additions during the
period |
|
88 |
|
|
7,177 |
|
|
887 |
|
|
8,152 |
|
Reductions: |
|
|
|
|
|
|
|
|
Charge-offs |
|
(51 |
) |
|
(6,316 |
) |
|
(479 |
) |
|
(6,846 |
) |
Transferred to OREO and other
repossessed assets |
|
(252 |
) |
|
(16,057 |
) |
|
— |
|
|
(16,309 |
) |
Removal of TDR loan status (1) |
|
(383 |
) |
|
— |
|
|
— |
|
|
(383 |
) |
Payments received, net |
|
(346 |
) |
|
(7,898 |
) |
|
(88 |
) |
|
(8,332 |
) |
Balance at period
end |
|
$ |
6,444 |
|
|
$ |
70,441 |
|
|
$ |
6,500 |
|
|
$ |
83,385 |
|
(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.
Each TDR was reviewed for impairment at
September 30, 2015 and approximately $3.4 million of
impairment was present and appropriately reserved for through the
Company’s normal reserving methodology in the Company’s allowance
for loan losses. 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
September 30, 2015 and 2014, the Company recorded $98,000 and
$294,000, respectively, in interest income representing this
decrease in impairment. For the nine months ended September 30,
2015 and 2014, the Company recorded $385,000 and $529,000,
respectively, in interest income.
Other Real Estate Owned
The table below presents a summary of other real
estate owned, excluding covered other real estate owned, as of
September 30, 2015, June 30, 2015 and September 30,
2014, and shows the activity for the respective period and the
balance for each property type:
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
(Dollars in thousands) |
|
2015 |
|
2015 |
|
2014 |
Balance at beginning of
period |
|
$ |
42,080 |
|
|
$ |
42,257 |
|
|
$ |
59,588 |
|
Disposals/resolved |
|
(7,611 |
) |
|
(6,075 |
) |
|
(12,196 |
) |
Transfers in at fair value, less
costs to sell |
|
6,159 |
|
|
6,412 |
|
|
3,150 |
|
Transfers in from covered OREO
subsequent to loss share expiration |
|
7,316 |
|
|
— |
|
|
— |
|
Additions from acquisition |
|
4,617 |
|
|
— |
|
|
— |
|
Fair value adjustments |
|
(681 |
) |
|
(514 |
) |
|
(165 |
) |
Balance at end of
period |
|
$ |
51,880 |
|
|
$ |
42,080 |
|
|
$ |
50,377 |
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
September 30, |
|
June 30, |
|
September 30, |
Balance by
Property Type |
|
2015 |
|
2015 |
|
2014 |
Residential real
estate |
|
$ |
12,577 |
|
|
$ |
6,408 |
|
|
$ |
8,754 |
|
Residential real estate
development |
|
3,147 |
|
|
3,031 |
|
|
3,135 |
|
Commercial real
estate |
|
36,156 |
|
|
32,641 |
|
|
38,488 |
|
Total |
|
$ |
51,880 |
|
|
$ |
42,080 |
|
|
$ |
50,377 |
|
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 and require the Company to record loss
share assets and liabilities that 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 and
liabilities are also separately measured from the related loans and
foreclosed real estate and recorded on the Consolidated Statements
of Condition. Subsequent to the acquisition date, reimbursements
received from the FDIC for actual incurred losses will reduce any
loss share assets. 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
also reduce any loss share asset and, if necessary, increase any
loss share liability when necessary reductions exceed the current
value of the loss share asset. The increases in cash flows for the
purchased loans are recognized as interest income prospectively. In
accordance with clawback provisions included in loss share
agreements with the FDIC, the Company may be required to reimburse
the FDIC when actual losses are less than certain thresholds
established for each loss share agreement. The balance of these
estimated reimbursements in accordance with clawback provisions and
any related amortization are adjusted periodically for changes in
the expected losses on covered assets. Estimated reimbursements
from clawback provisions are recorded as a reduction to the loss
share asset or, if necessary, an increase to the loss share
liability on the Consolidated Statements of Condition. 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.
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.
|
|
September 30, |
|
June 30, |
|
September 30, |
(Dollars in thousands) |
|
2015 |
|
2015 |
|
2014 |
Period End
Balances: |
|
|
|
|
|
|
Loans |
|
$ |
168,609 |
|
|
$ |
193,410 |
|
|
$ |
254,605 |
|
Other real estate owned |
|
28,644 |
|
|
35,419 |
|
|
48,568 |
|
Other assets |
|
686 |
|
|
686 |
|
|
2,242 |
|
FDIC Indemnification (liability)
asset |
|
(3,033 |
) |
|
3,429 |
|
|
27,359 |
|
Total net covered assets |
|
$ |
194,906 |
|
|
$ |
232,944 |
|
|
$ |
332,774 |
|
Allowance for
Covered Loan Losses Rollforward: |
|
|
|
|
|
|
Balance at beginning of
quarter: |
|
$ |
2,215 |
|
|
$ |
1,878 |
|
|
$ |
1,667 |
|
Provision for covered loan losses
before benefit attributable to FDIC loss share agreements |
|
(1,716 |
) |
|
(1,094 |
) |
|
(818 |
) |
Benefit attributable to FDIC loss
share agreements |
|
1,373 |
|
|
875 |
|
|
654 |
|
Net provision for covered loan
losses |
|
(343 |
) |
|
(219 |
) |
|
(164 |
) |
Decrease in FDIC indemnification
asset |
|
(1,373 |
) |
|
(875 |
) |
|
(654 |
) |
Loans charged-off |
|
(287 |
) |
|
(140 |
) |
|
(293 |
) |
Recoveries of loans
charged-off |
|
2,706 |
|
|
1,571 |
|
|
2,099 |
|
Net recoveries |
|
2,419 |
|
|
1,431 |
|
|
1,806 |
|
Balance at end of quarter |
|
$ |
2,918 |
|
|
$ |
2,215 |
|
|
$ |
2,655 |
|
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 |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
(Dollars in thousands) |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Accretable yield,
beginning balance |
|
$ |
63,643 |
|
|
$ |
97,281 |
|
|
$ |
79,102 |
|
|
$ |
115,909 |
|
Acquisitions |
|
10,407 |
|
|
— |
|
|
11,305 |
|
|
— |
|
Accretable yield amortized
to interest income |
|
(5,939 |
) |
|
(7,847 |
) |
|
(18,359 |
) |
|
(28,438 |
) |
Accretable yield
amortized to indemnification asset(1) |
|
(3,280 |
) |
|
(8,784 |
) |
|
(10,945 |
) |
|
(25,593 |
) |
Reclassification from
non-accretable difference(2) |
|
2,298 |
|
|
2,584 |
|
|
5,154 |
|
|
29,092 |
|
(Decreases) increases in
interest cash flows due to payments and changes in interest
rates |
|
(610 |
) |
|
4,675 |
|
|
262 |
|
|
(3,061 |
) |
Accretable yield,
ending balance (3) |
|
$ |
66,519 |
|
|
$ |
87,909 |
|
|
$ |
66,519 |
|
|
$ |
87,909 |
|
(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 September 30, 2015, the Company estimates that the
remaining accretable yield balance to be amortized to the
indemnification asset for the bank acquisitions is $10.0 million.
The remainder of the accretable yield related to bank acquisitions
is expected to be amortized to interest income.
Accretion to interest income accounted for under ASC 310-30
totaled $5.9 million and $7.8 million in the third quarter of 2015
and 2014, respectively. For the nine months ended September 30,
2015 and 2014, the Company recorded accretion to interest income of
$18.4 million and $28.4 million, respectively. These amounts
include accretion from both covered and non-covered loans, and are
included together within interest and fees on loans in the
Consolidated Statements of Income.
Items Impacting Comparative Financial
Results:
Acquisitions
On July 24, 2015, the Company completed its
acquisition of Community Financial Shares, Inc ("CFIS"). CFIS was
the parent company of Community Bank - Wheaton/Glen Ellyn
("CBWGE"). Through this transaction, prior to purchase accounting
adjustments, the Company acquired CBWGE's four banking locations in
Wheaton and Glen Ellyn, Illinois, approximately $327 million in
assets and approximately $301 million in deposits.
On July 17, 2015, the Company completed its acquisition of Suburban
Illinois Bancorp, Inc. ("Suburban"). Suburban was the parent
company of Suburban Bank & Trust Company ("SBT"). Through this
transaction, prior to purchase accounting adjustments, the Company
acquired SBT's ten banking locations in Chicago and its suburbs,
approximately $480 million in assets and approximately $417 million
in deposits.
On July 1, 2015, the Company, through its
wholly-owned subsidiary Wintrust Bank, completed its acquisition of
North Bank. Through this transaction, prior to purchase
accounting adjustments, Wintrust Bank acquired two banking
locations, $112 million in assets and approximately $100 million in
deposits.
On January 16, 2015 the Company completed its
acquisition of Delavan Bancshares, Inc. ("Delavan"). Delavan was
the parent company of Community Bank CBD. Through this transaction,
Town Bank acquired four banking locations, approximately $224
million in assets and approximately $170 million in deposits.
On August 8, 2014, the Company, through its
subsidiary Town Bank, completed its acquisition of certain branch
offices and deposits of Talmer Bank & Trust. Through this
transaction, Town Bank acquired 11 branch offices and approximately
$355 million in deposits.
On July 11, 2014, the Company, through its
subsidiary Town Bank, completed its acquisition of the Pewaukee,
Wisconsin branch of THE National Bank. In addition to the banking
facility, Town Bank acquired approximately $75 million in
loans and approximately $36 million in deposits.
On May 16, 2014, the Company, through its
subsidiary Hinsdale Bank and Trust Company ("Hinsdale Bank"),
completed its acquisition of the Stone Park branch office and
certain related deposits of Urban Partnership Bank.
On April 28, 2014, the Company, through its
subsidiary First Insurance Funding of Canada, Inc., completed its
acquisition of 100% of the shares of each of Policy Billing
Services Inc. and Equity Premium Finance Inc., two affiliated
Canadian insurance premium funding and payment services
companies.
On February 28, 2014, the Company, through its subsidiary Lake
Forest Bank and Trust Company ("Lake Forest Bank"), completed its
acquisition of a bank branch from Baytree National Bank & Trust
Company. In addition to the banking facility, Lake Forest Bank
acquired certain assets and approximately $15 million of 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, Wintrust Bank in Chicago, Libertyville Bank &
Trust Company, Barrington Bank & Trust Company, N.A.,
Crystal Lake Bank & Trust Company, N.A., Northbrook
Bank & Trust Company, Schaumburg Bank & Trust
Company, N.A., Village Bank & Trust in Arlington Heights,
Beverly Bank & Trust Company, N.A. 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, Aurora,
Bloomingdale, Buffalo Grove, Cary, Chicago, Clarendon Hills, Crete,
Deerfield, Downers Grove, Elgin, Elmhurst, Evergreen Park,
Frankfort, Geneva, Glen Ellyn, Glencoe, Glenview, Gurnee,
Grayslake, Hanover Park, Highland Park, Highwood, Hoffman Estates,
Island Lake, Itasca, Joliet, Lake Bluff, Lake Villa, Lansing,
Lemont, Lindenhurst, Lynwood, Markham, McHenry, Mokena, Mount
Prospect, Mundelein, Naperville, North Chicago, Northfield,
Norridge, Oak Lawn, Orland Park, Palatine, Park Ridge, Plainfield,
Prospect Heights, Ravinia, Riverside, Rogers Park, Roselle,
Shorewood, Skokie, South Holland, Spring Grove, Steger, Stone Park,
Vernon Hills, Wauconda, Western Springs, Willowbrook, Wilmette,
Winnetka and Wood Dale and in Albany, Burlington, Clinton,
Darlington, Delafield, Delavan, Elm Grove, Genoa City, Kenosha,
Lake Geneva, Madison, Menomenee Falls, Monroe, Pewaukee, Sharon,
Wales, Walworth and Wind Lake, 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.
- 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 2014 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 and southern Wisconsin;
- 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;
- inaccurate assumptions in our analytical and forecasting models
used to manage our loan portfolio;
- 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;
- adverse effects of failures by our vendors to provide agreed
upon services in the manner and at the cost agreed, particularly
our information technology vendors;
- increased costs as a result of protecting our customers from
the impact of stolen debit card information;
- 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 expenses and delayed returns inherent in opening new
branches and de novo banks;
- 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;
- a lowering of our credit rating;
- changes in U.S. monetary policy;
- 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;
- the impact of heightened 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;
- delinquencies or fraud with respect to the Company's commercial
equipment finance and leasing business;
- 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 2:00
p.m. (CT) Thursday, October 15, 2015 regarding third quarter and
year-to-date 2015 results. Individuals interested in listening
should call (877) 363-5049 and enter Conference ID #54092655.
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 third
quarter and year-to-date 2015 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 |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
2015 |
|
2015 |
|
2015 |
|
2014 |
|
2014 |
Selected Financial
Condition Data (at end of period): |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
22,043,930 |
|
|
$ |
20,799,924 |
|
|
$ |
20,382,271 |
|
|
$ |
20,010,727 |
|
|
$ |
19,169,345 |
|
Total loans, excluding
loans held-for-sale and covered loans |
|
16,316,211 |
|
|
15,513,650 |
|
|
14,953,059 |
|
|
14,409,398 |
|
|
14,052,059 |
|
Total deposits |
|
18,228,469 |
|
|
17,082,418 |
|
|
16,938,769 |
|
|
16,281,844 |
|
|
16,065,246 |
|
Junior subordinated
debentures |
|
268,566 |
|
|
249,493 |
|
|
249,493 |
|
|
249,493 |
|
|
249,493 |
|
Total shareholders’
equity |
|
2,335,736 |
|
|
2,264,982 |
|
|
2,131,074 |
|
|
2,069,822 |
|
|
2,028,508 |
|
Selected
Statements of Income Data: |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
165,540 |
|
|
156,892 |
|
|
151,891 |
|
|
153,719 |
|
|
151,670 |
|
Net revenue
(1) |
|
230,493 |
|
|
233,905 |
|
|
216,432 |
|
|
211,376 |
|
|
209,622 |
|
Net income |
|
38,355 |
|
|
43,831 |
|
|
39,052 |
|
|
38,133 |
|
|
40,224 |
|
Net income per common
share – Basic |
|
$ |
0.71 |
|
|
$ |
0.89 |
|
|
$ |
0.79 |
|
|
$ |
0.78 |
|
|
$ |
0.83 |
|
Net income per common
share – Diluted |
|
$ |
0.69 |
|
|
$ |
0.85 |
|
|
$ |
0.76 |
|
|
$ |
0.75 |
|
|
$ |
0.79 |
|
Selected Financial
Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest margin
(2) |
|
3.33 |
% |
|
3.41 |
% |
|
3.42 |
% |
|
3.46 |
% |
|
3.46 |
% |
Non-interest income to
average assets |
|
1.19 |
% |
|
1.52 |
% |
|
1.32 |
% |
|
1.18 |
% |
|
1.20 |
% |
Non-interest expense to
average assets |
|
2.93 |
% |
|
3.06 |
% |
|
3.01 |
% |
|
2.94 |
% |
|
2.87 |
% |
Net overhead ratio
(2) (3) |
|
1.74 |
% |
|
1.53 |
% |
|
1.69 |
% |
|
1.76 |
% |
|
1.67 |
% |
Efficiency ratio - FTE
(2) (4) |
|
69.02 |
% |
|
65.64 |
% |
|
67.90 |
% |
|
67.59 |
% |
|
65.76 |
% |
Return on average
assets |
|
0.70 |
% |
|
0.87 |
% |
|
0.80 |
% |
|
0.78 |
% |
|
0.83 |
% |
Return on average common
equity |
|
6.60 |
% |
|
8.38 |
% |
|
7.64 |
% |
|
7.51 |
% |
|
8.09 |
% |
Return on average tangible
common equity |
|
8.88 |
% |
|
10.86 |
% |
|
9.96 |
% |
|
9.82 |
% |
|
10.59 |
% |
Average total assets |
|
$ |
21,688,450 |
|
|
$ |
20,256,996 |
|
|
$ |
19,826,240 |
|
|
$ |
19,366,670 |
|
|
$ |
19,127,346 |
|
Average total
shareholders’ equity |
|
2,310,511 |
|
|
2,156,128 |
|
|
2,114,356 |
|
|
2,057,855 |
|
|
2,020,903 |
|
Average loans to average
deposits ratio (excluding covered loans) |
|
91.9 |
% |
|
92.8 |
% |
|
91.4 |
% |
|
89.5 |
% |
|
90.1 |
% |
Average loans to average
deposits ratio (including covered loans) |
|
92.9 |
|
|
94.0 |
|
|
92.7 |
|
|
91.0 |
|
|
91.8 |
|
Common Share Data at
end of period: |
|
|
|
|
|
|
|
|
|
|
Market price per common
share |
|
$ |
53.43 |
|
|
$ |
53.38 |
|
|
$ |
47.68 |
|
|
$ |
46.76 |
|
|
$ |
44.67 |
|
Book value per common
share (2) |
|
$ |
43.12 |
|
|
$ |
42.24 |
|
|
$ |
42.30 |
|
|
$ |
41.52 |
|
|
$ |
40.74 |
|
Tangible common book
value per share (2) |
|
$ |
32.83 |
|
|
$ |
33.02 |
|
|
$ |
33.04 |
|
|
$ |
32.45 |
|
|
$ |
31.60 |
|
Common shares
outstanding |
|
48,336,870 |
|
|
47,677,257 |
|
|
47,389,608 |
|
|
46,805,055 |
|
|
46,691,047 |
|
Other Data at end
of period:(8) |
|
|
|
|
|
|
|
|
|
|
Leverage
Ratio(5) |
|
9.4 |
% |
|
9.8 |
% |
|
9.2 |
% |
|
10.2 |
% |
|
10.0 |
% |
Tier 1 Capital to
risk-weighted assets (5) |
|
10.4 |
% |
|
10.7 |
% |
|
10.1 |
% |
|
11.6 |
% |
|
11.7 |
% |
Common equity Tier 1
capital to risk-weighted assets (5) |
|
8.8 |
% |
|
9.0 |
% |
|
9.1 |
% |
|
N/A |
|
N/A |
Total capital to
risk-weighted assets (5) |
|
12.7 |
% |
|
13.1 |
% |
|
12.5 |
% |
|
13.0 |
% |
|
13.1 |
% |
Tangible common equity
ratio (TCE) (2) (7) |
|
7.4 |
% |
|
7.7 |
% |
|
7.9 |
% |
|
7.8 |
% |
|
7.9 |
% |
Tangible common equity
ratio, assuming full conversion of convertible preferred stock
(2) (7) |
|
8.0 |
% |
|
8.4 |
% |
|
8.5 |
% |
|
8.4 |
% |
|
8.6 |
% |
Allowance for credit
losses (6) |
|
$ |
103,922 |
|
|
$ |
101,088 |
|
|
$ |
95,334 |
|
|
$ |
92,480 |
|
|
$ |
91,841 |
|
Non-performing loans |
|
85,976 |
|
|
76,554 |
|
|
81,772 |
|
|
78,677 |
|
|
81,070 |
|
Allowance for credit
losses to total loans (6) |
|
0.64 |
% |
|
0.65 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.65 |
% |
Non-performing loans to
total loans |
|
0.53 |
% |
|
0.49 |
% |
|
0.55 |
% |
|
0.55 |
% |
|
0.58 |
% |
Number of: |
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
Banking offices |
|
160 |
|
|
147 |
|
|
146 |
|
|
140 |
|
|
139 |
|
(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. As of
January 1, 2015 capital ratios are calculated under the
requirements of Basel III.
(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) |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(In thousands) |
|
2015 |
|
2015 |
|
2015 |
|
2014 |
|
2014 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
247,341 |
|
|
$ |
248,094 |
|
|
$ |
286,743 |
|
|
$ |
225,136 |
|
|
$ |
260,694 |
|
Federal funds sold and
securities purchased under resale agreements |
|
3,314 |
|
|
4,115 |
|
|
4,129 |
|
|
5,571 |
|
|
26,722 |
|
Interest bearing deposits
with banks |
|
701,106 |
|
|
591,721 |
|
|
697,799 |
|
|
998,437 |
|
|
620,370 |
|
Available-for-sale
securities, at fair value |
|
2,214,281 |
|
|
2,162,061 |
|
|
1,721,030 |
|
|
1,792,078 |
|
|
1,782,648 |
|
Trading account
securities |
|
3,312 |
|
|
1,597 |
|
|
7,811 |
|
|
1,206 |
|
|
6,015 |
|
Federal Home Loan Bank and
Federal Reserve Bank stock |
|
90,308 |
|
|
89,818 |
|
|
92,948 |
|
|
91,582 |
|
|
80,951 |
|
Brokerage customer
receivables |
|
28,293 |
|
|
29,753 |
|
|
25,287 |
|
|
24,221 |
|
|
26,624 |
|
Mortgage loans
held-for-sale |
|
347,005 |
|
|
497,283 |
|
|
446,355 |
|
|
351,290 |
|
|
363,303 |
|
Loans, net of unearned
income, excluding covered loans |
|
16,316,211 |
|
|
15,513,650 |
|
|
14,953,059 |
|
|
14,409,398 |
|
|
14,052,059 |
|
Covered loans |
|
168,609 |
|
|
193,410 |
|
|
209,694 |
|
|
226,709 |
|
|
254,605 |
|
Total loans |
|
16,484,820 |
|
|
15,707,060 |
|
|
15,162,753 |
|
|
14,636,107 |
|
|
14,306,664 |
|
Less: Allowance for loan
losses |
|
102,996 |
|
|
100,204 |
|
|
94,446 |
|
|
91,705 |
|
|
91,019 |
|
Less: Allowance for covered loan
losses |
|
2,918 |
|
|
2,215 |
|
|
1,878 |
|
|
2,131 |
|
|
2,655 |
|
Net loans |
|
16,378,906 |
|
|
15,604,641 |
|
|
15,066,429 |
|
|
14,542,271 |
|
|
14,212,990 |
|
Premises and equipment,
net |
|
587,348 |
|
|
571,498 |
|
|
559,281 |
|
|
555,228 |
|
|
555,241 |
|
FDIC indemnification
asset |
|
— |
|
|
3,429 |
|
|
10,224 |
|
|
11,846 |
|
|
27,359 |
|
Accrued interest
receivable and other assets |
|
667,036 |
|
|
556,344 |
|
|
537,117 |
|
|
501,882 |
|
|
494,213 |
|
Trade date securities
receivable |
|
277,981 |
|
|
— |
|
|
488,063 |
|
|
485,534 |
|
|
285,627 |
|
Goodwill |
|
472,166 |
|
|
421,646 |
|
|
420,197 |
|
|
405,634 |
|
|
406,604 |
|
Other intangible
assets |
|
25,533 |
|
|
17,924 |
|
|
18,858 |
|
|
18,811 |
|
|
19,984 |
|
Total assets |
|
$ |
22,043,930 |
|
|
$ |
20,799,924 |
|
|
$ |
20,382,271 |
|
|
$ |
20,010,727 |
|
|
$ |
19,169,345 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
4,705,994 |
|
|
$ |
3,910,310 |
|
|
$ |
3,779,609 |
|
|
$ |
3,518,685 |
|
|
$ |
3,253,477 |
|
Interest bearing |
|
13,522,475 |
|
|
13,172,108 |
|
|
13,159,160 |
|
|
12,763,159 |
|
|
12,811,769 |
|
Total deposits |
|
18,228,469 |
|
|
17,082,418 |
|
|
16,938,769 |
|
|
16,281,844 |
|
|
16,065,246 |
|
Federal Home Loan Bank
advances |
|
451,330 |
|
|
444,017 |
|
|
416,036 |
|
|
733,050 |
|
|
347,500 |
|
Other borrowings |
|
259,978 |
|
|
261,908 |
|
|
187,006 |
|
|
196,465 |
|
|
51,483 |
|
Subordinated notes |
|
140,000 |
|
|
140,000 |
|
|
140,000 |
|
|
140,000 |
|
|
140,000 |
|
Junior subordinated
debentures |
|
268,566 |
|
|
249,493 |
|
|
249,493 |
|
|
249,493 |
|
|
249,493 |
|
Trade date securities
payable |
|
617 |
|
|
— |
|
|
2,929 |
|
|
3,828 |
|
|
— |
|
Accrued interest payable
and other liabilities |
|
359,234 |
|
|
357,106 |
|
|
316,964 |
|
|
336,225 |
|
|
287,115 |
|
Total liabilities |
|
19,708,194 |
|
|
18,534,942 |
|
|
18,251,197 |
|
|
17,940,905 |
|
|
17,140,837 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
251,312 |
|
|
251,312 |
|
|
126,427 |
|
|
126,467 |
|
|
126,467 |
|
Common stock |
|
48,422 |
|
|
47,763 |
|
|
47,475 |
|
|
46,881 |
|
|
46,766 |
|
Surplus |
|
1,187,407 |
|
|
1,159,052 |
|
|
1,156,542 |
|
|
1,133,955 |
|
|
1,129,975 |
|
Treasury stock |
|
(3,964 |
) |
|
(3,964 |
) |
|
(3,948 |
) |
|
(3,549 |
) |
|
(3,519 |
) |
Retained earnings |
|
901,652 |
|
|
872,690 |
|
|
835,669 |
|
|
803,400 |
|
|
771,519 |
|
Accumulated other comprehensive
loss |
|
(49,093 |
) |
|
(61,871 |
) |
|
(31,091 |
) |
|
(37,332 |
) |
|
(42,700 |
) |
Total shareholders’ equity |
|
2,335,736 |
|
|
2,264,982 |
|
|
2,131,074 |
|
|
2,069,822 |
|
|
2,028,508 |
|
Total liabilities and
shareholders’ equity |
|
$ |
22,043,930 |
|
|
$ |
20,799,924 |
|
|
$ |
20,382,271 |
|
|
$ |
20,010,727 |
|
|
$ |
19,169,345 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Consolidated Statements of Income (Unaudited) - 5 Quarter
Trends |
|
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(In thousands, except per share
data) |
|
2015 |
|
2015 |
|
2015 |
|
2014 |
|
2014 |
Interest
income |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
167,831 |
|
|
$ |
159,823 |
|
|
$ |
154,676 |
|
|
$ |
157,476 |
|
|
$ |
156,534 |
|
Interest bearing deposits with
banks |
|
372 |
|
|
305 |
|
|
316 |
|
|
495 |
|
|
409 |
|
Federal funds sold and securities
purchased under resale agreements |
|
1 |
|
|
1 |
|
|
2 |
|
|
3 |
|
|
12 |
|
Available-for-sale securities |
|
16,130 |
|
|
14,071 |
|
|
14,400 |
|
|
13,761 |
|
|
12,767 |
|
Trading account securities |
|
19 |
|
|
51 |
|
|
13 |
|
|
45 |
|
|
20 |
|
Federal Home Loan Bank and Federal
Reserve Bank stock |
|
821 |
|
|
785 |
|
|
769 |
|
|
749 |
|
|
733 |
|
Brokerage customer receivables |
|
205 |
|
|
205 |
|
|
181 |
|
|
186 |
|
|
201 |
|
Total interest income |
|
185,379 |
|
|
175,241 |
|
|
170,357 |
|
|
172,715 |
|
|
170,676 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
12,436 |
|
|
11,996 |
|
|
11,814 |
|
|
12,431 |
|
|
12,298 |
|
Interest on Federal Home Loan Bank
advances |
|
2,458 |
|
|
1,812 |
|
|
2,156 |
|
|
2,534 |
|
|
2,641 |
|
Interest on other borrowings |
|
1,045 |
|
|
787 |
|
|
788 |
|
|
313 |
|
|
200 |
|
Interest on subordinated notes |
|
1,776 |
|
|
1,777 |
|
|
1,775 |
|
|
1,776 |
|
|
1,776 |
|
Interest on junior subordinated
debentures |
|
2,124 |
|
|
1,977 |
|
|
1,933 |
|
|
1,942 |
|
|
2,091 |
|
Total interest expense |
|
19,839 |
|
|
18,349 |
|
|
18,466 |
|
|
18,996 |
|
|
19,006 |
|
Net interest
income |
|
165,540 |
|
|
156,892 |
|
|
151,891 |
|
|
153,719 |
|
|
151,670 |
|
Provision for credit
losses |
|
8,322 |
|
|
9,482 |
|
|
6,079 |
|
|
6,133 |
|
|
5,864 |
|
Net interest income after
provision for credit losses |
|
157,218 |
|
|
147,410 |
|
|
145,812 |
|
|
147,586 |
|
|
145,806 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
|
Wealth management |
|
18,243 |
|
|
18,476 |
|
|
18,100 |
|
|
18,649 |
|
|
17,659 |
|
Mortgage banking |
|
27,887 |
|
|
36,007 |
|
|
27,800 |
|
|
24,694 |
|
|
26,691 |
|
Service charges on deposit
accounts |
|
7,403 |
|
|
6,474 |
|
|
6,297 |
|
|
6,189 |
|
|
6,084 |
|
(Losses) gains on
available-for-sale securities, net |
|
(98 |
) |
|
(24 |
) |
|
524 |
|
|
18 |
|
|
(153 |
) |
Fees from covered call options |
|
2,810 |
|
|
4,565 |
|
|
4,360 |
|
|
2,966 |
|
|
2,107 |
|
Trading (losses) gains, net |
|
(135 |
) |
|
160 |
|
|
(477 |
) |
|
(507 |
) |
|
293 |
|
Other |
|
8,843 |
|
|
11,355 |
|
|
7,937 |
|
|
5,648 |
|
|
5,271 |
|
Total non-interest income |
|
64,953 |
|
|
77,013 |
|
|
64,541 |
|
|
57,657 |
|
|
57,952 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
97,749 |
|
|
94,421 |
|
|
90,130 |
|
|
87,633 |
|
|
85,976 |
|
Equipment |
|
8,887 |
|
|
7,914 |
|
|
7,836 |
|
|
7,555 |
|
|
7,570 |
|
Occupancy, net |
|
12,066 |
|
|
11,401 |
|
|
12,351 |
|
|
11,600 |
|
|
10,446 |
|
Data processing |
|
8,127 |
|
|
6,081 |
|
|
5,448 |
|
|
5,313 |
|
|
4,765 |
|
Advertising and marketing |
|
6,237 |
|
|
6,406 |
|
|
3,907 |
|
|
3,669 |
|
|
3,528 |
|
Professional fees |
|
4,100 |
|
|
5,074 |
|
|
4,664 |
|
|
4,039 |
|
|
4,035 |
|
Amortization of other intangible
assets |
|
1,350 |
|
|
934 |
|
|
1,013 |
|
|
1,171 |
|
|
1,202 |
|
FDIC insurance |
|
3,035 |
|
|
3,047 |
|
|
2,987 |
|
|
2,810 |
|
|
3,211 |
|
OREO expense, net |
|
(367 |
) |
|
841 |
|
|
1,411 |
|
|
2,320 |
|
|
581 |
|
Other |
|
18,790 |
|
|
18,178 |
|
|
17,571 |
|
|
17,331 |
|
|
17,186 |
|
Total non-interest expense |
|
159,974 |
|
|
154,297 |
|
|
147,318 |
|
|
143,441 |
|
|
138,500 |
|
Income before taxes |
|
62,197 |
|
|
70,126 |
|
|
63,035 |
|
|
61,802 |
|
|
65,258 |
|
Income tax expense |
|
23,842 |
|
|
26,295 |
|
|
23,983 |
|
|
23,669 |
|
|
25,034 |
|
Net
income |
|
$ |
38,355 |
|
|
$ |
43,831 |
|
|
$ |
39,052 |
|
|
$ |
38,133 |
|
|
$ |
40,224 |
|
Preferred stock dividends
and discount accretion |
|
4,079 |
|
|
1,580 |
|
|
1,581 |
|
|
1,580 |
|
|
1,581 |
|
Net income
applicable to common shares |
|
$ |
34,276 |
|
|
$ |
42,251 |
|
|
$ |
37,471 |
|
|
$ |
36,553 |
|
|
$ |
38,643 |
|
Net income per
common share - Basic |
|
$ |
0.71 |
|
|
$ |
0.89 |
|
|
$ |
0.79 |
|
|
$ |
0.78 |
|
|
$ |
0.83 |
|
Net income per
common share - Diluted |
|
$ |
0.69 |
|
|
$ |
0.85 |
|
|
$ |
0.76 |
|
|
$ |
0.75 |
|
|
$ |
0.79 |
|
Cash dividends
declared per common share |
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
Weighted average common
shares outstanding |
|
48,158 |
|
|
47,567 |
|
|
47,239 |
|
|
46,734 |
|
|
46,639 |
|
Dilutive potential common
shares |
|
4,049 |
|
|
4,156 |
|
|
4,233 |
|
|
4,243 |
|
|
4,241 |
|
Average common shares and
dilutive common shares |
|
52,207 |
|
|
51,723 |
|
|
51,472 |
|
|
50,977 |
|
|
50,880 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Period End Loan Balances - 5 Quarter Trends |
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
|
2015 |
|
2015 |
|
2015 |
|
2014 |
|
2014 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
4,400,185 |
|
|
$ |
4,330,344 |
|
|
$ |
4,211,932 |
|
|
$ |
3,924,394 |
|
|
$ |
3,689,671 |
|
Commercial real estate |
|
5,307,566 |
|
|
4,850,590 |
|
|
4,710,486 |
|
|
4,505,753 |
|
|
4,510,375 |
|
Home equity |
|
797,465 |
|
|
712,350 |
|
|
709,283 |
|
|
716,293 |
|
|
720,058 |
|
Residential real-estate |
|
571,743 |
|
|
503,015 |
|
|
495,925 |
|
|
483,542 |
|
|
470,319 |
|
Premium finance receivables -
commercial |
|
2,407,075 |
|
|
2,460,408 |
|
|
2,319,623 |
|
|
2,350,833 |
|
|
2,377,892 |
|
Premium finance receivables - life
insurance |
|
2,700,275 |
|
|
2,537,475 |
|
|
2,375,654 |
|
|
2,277,571 |
|
|
2,134,405 |
|
Consumer and other
(1) |
|
131,902 |
|
|
119,468 |
|
|
130,156 |
|
|
151,012 |
|
|
149,339 |
|
Total loans, net of unearned
income, excluding covered loans |
|
$ |
16,316,211 |
|
|
$ |
15,513,650 |
|
|
$ |
14,953,059 |
|
|
$ |
14,409,398 |
|
|
$ |
14,052,059 |
|
Covered loans |
|
168,609 |
|
|
193,410 |
|
|
209,694 |
|
|
226,709 |
|
|
254,605 |
|
Total loans, net of unearned
income |
|
$ |
16,484,820 |
|
|
$ |
15,707,060 |
|
|
$ |
15,162,753 |
|
|
$ |
14,636,107 |
|
|
$ |
14,306,664 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
27 |
% |
|
27 |
% |
|
28 |
% |
|
26 |
% |
|
26 |
% |
Commercial real estate |
|
32 |
|
|
31 |
|
|
31 |
|
|
31 |
|
|
31 |
|
Home equity |
|
5 |
|
|
5 |
|
|
5 |
|
|
5 |
|
|
5 |
|
Residential real-estate |
|
3 |
|
|
3 |
|
|
3 |
|
|
3 |
|
|
3 |
|
Premium finance receivables -
commercial |
|
15 |
|
|
16 |
|
|
15 |
|
|
16 |
|
|
17 |
|
Premium finance receivables - life
insurance |
|
16 |
|
|
16 |
|
|
16 |
|
|
16 |
|
|
15 |
|
Consumer and other
(1) |
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
Total loans, net of unearned
income, excluding covered loans |
|
99 |
% |
|
99 |
% |
|
99 |
% |
|
98 |
% |
|
98 |
% |
Covered loans |
|
1 |
|
|
1 |
|
|
1 |
|
|
2 |
|
|
2 |
|
Total loans, net of unearned
income |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
(1) Includes autos, boats, snowmobiles and other indirect
consumer loans as well as short-term accounts receivable
financing.
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Period End Deposits Balances - 5 Quarter
Trends |
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
|
2015 |
|
2015 |
|
2015 |
|
2014 |
|
2014 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
4,705,994 |
|
|
$ |
3,910,310 |
|
|
$ |
3,779,609 |
|
|
$ |
3,518,685 |
|
|
$ |
3,253,477 |
|
NOW and interest bearing demand
deposits |
|
2,231,258 |
|
|
2,240,832 |
|
|
2,262,928 |
|
|
2,236,089 |
|
|
2,086,099 |
|
Wealth management deposits
(1) |
|
1,469,920 |
|
|
1,591,251 |
|
|
1,528,963 |
|
|
1,226,916 |
|
|
1,212,317 |
|
Money market |
|
4,001,518 |
|
|
3,898,495 |
|
|
3,791,762 |
|
|
3,651,467 |
|
|
3,744,682 |
|
Savings |
|
1,684,007 |
|
|
1,504,654 |
|
|
1,563,752 |
|
|
1,508,877 |
|
|
1,465,250 |
|
Time certificates of deposit |
|
4,135,772 |
|
|
3,936,876 |
|
|
4,011,755 |
|
|
4,139,810 |
|
|
4,303,421 |
|
Total deposits |
|
$ |
18,228,469 |
|
|
$ |
17,082,418 |
|
|
$ |
16,938,769 |
|
|
$ |
16,281,844 |
|
|
$ |
16,065,246 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
26 |
% |
|
23 |
% |
|
22 |
% |
|
22 |
% |
|
20 |
% |
NOW and interest bearing demand
deposits |
|
12 |
|
|
13 |
|
|
13 |
|
|
14 |
|
|
13 |
|
Wealth management deposits
(1) |
|
8 |
|
|
9 |
|
|
9 |
|
|
8 |
|
|
8 |
|
Money market |
|
22 |
|
|
23 |
|
|
23 |
|
|
22 |
|
|
23 |
|
Savings |
|
9 |
|
|
9 |
|
|
9 |
|
|
9 |
|
|
9 |
|
Time certificates of deposit |
|
23 |
|
|
23 |
|
|
24 |
|
|
25 |
|
|
27 |
|
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 |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
|
2015 |
|
2015 |
|
2015 |
|
2014 |
|
2014 |
Net interest income |
|
$ |
166,737 |
|
|
$ |
158,034 |
|
|
$ |
152,952 |
|
|
$ |
154,599 |
|
|
$ |
152,498 |
|
Call option income |
|
2,810 |
|
|
4,565 |
|
|
4,360 |
|
|
2,966 |
|
|
2,107 |
|
Net interest income
including call option income |
|
$ |
169,547 |
|
|
$ |
162,599 |
|
|
$ |
157,312 |
|
|
$ |
157,565 |
|
|
$ |
154,605 |
|
Yield on earning
assets |
|
3.73 |
% |
|
3.81 |
% |
|
3.83 |
% |
|
3.89 |
% |
|
3.90 |
% |
Rate on interest-bearing
liabilities |
|
0.54 |
|
|
0.52 |
|
|
0.54 |
|
|
0.55 |
|
|
0.56 |
|
Rate spread |
|
3.19 |
% |
|
3.29 |
% |
|
3.29 |
% |
|
3.34 |
% |
|
3.34 |
% |
Net free funds
contribution |
|
0.14 |
|
|
0.12 |
|
|
0.13 |
|
|
0.12 |
|
|
0.12 |
|
Net interest margin |
|
3.33 |
|
|
3.41 |
|
|
3.42 |
|
|
3.46 |
|
|
3.46 |
|
Call option income |
|
0.06 |
|
|
0.10 |
|
|
0.10 |
|
|
0.07 |
|
|
0.05 |
|
Net interest margin
including call option income |
|
3.39 |
% |
|
3.51 |
% |
|
3.52 |
% |
|
3.53 |
% |
|
3.51 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Net Interest Margin (Including Call Option Income - YTD
Trends) |
|
|
|
Nine Months Ended,
September 30, |
|
Years Ended
December 31, |
(Dollars in thousands) |
|
2015 |
|
2014 |
|
2013 |
|
2012 |
|
2011 |
Net interest income |
|
$ |
477,723 |
|
|
$ |
601,744 |
|
|
$ |
552,887 |
|
|
$ |
521,463 |
|
|
$ |
463,071 |
|
Call option income |
|
11,735 |
|
|
7,859 |
|
|
4,773 |
|
|
10,476 |
|
|
13,570 |
|
Net interest income
including call option income |
|
$ |
489,458 |
|
|
$ |
609,603 |
|
|
$ |
557,660 |
|
|
$ |
531,939 |
|
|
$ |
476,641 |
|
Yield on earning
assets |
|
3.79 |
% |
|
3.96 |
% |
|
4.01 |
% |
|
4.21 |
% |
|
4.49 |
% |
Rate on interest-bearing
liabilities |
|
0.53 |
|
|
0.55 |
|
|
0.62 |
|
|
0.86 |
|
|
1.23 |
|
Rate spread |
|
3.26 |
% |
|
3.41 |
% |
|
3.39 |
% |
|
3.35 |
% |
|
3.26 |
% |
Net free funds
contribution |
|
0.13 |
|
|
0.12 |
|
|
0.11 |
|
|
0.14 |
|
|
0.16 |
|
Net interest margin |
|
3.39 |
|
|
3.53 |
|
|
3.50 |
|
|
3.49 |
|
|
3.42 |
|
Call option income |
|
0.08 |
|
|
0.05 |
|
|
0.03 |
|
|
0.07 |
|
|
0.10 |
|
Net interest margin
including call option income |
|
3.47 |
% |
|
3.58 |
% |
|
3.53 |
% |
|
3.56 |
% |
|
3.52 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Quarterly Average Balances - 5 Quarter Trends |
|
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(In thousands) |
|
2015 |
|
2015 |
|
2015 |
|
2014 |
|
2014 |
Liquidity management
assets |
|
$ |
3,140,782 |
|
|
$ |
2,709,176 |
|
|
$ |
2,868,906 |
|
|
$ |
2,972,220 |
|
|
$ |
2,814,720 |
|
Other earning assets |
|
30,990 |
|
|
32,115 |
|
|
27,717 |
|
|
29,699 |
|
|
28,702 |
|
Loans, net of unearned
income |
|
16,509,001 |
|
|
15,632,875 |
|
|
15,031,917 |
|
|
14,469,745 |
|
|
14,359,467 |
|
Covered loans |
|
174,768 |
|
|
202,663 |
|
|
214,211 |
|
|
244,139 |
|
|
262,310 |
|
Total earning assets |
|
$ |
19,855,541 |
|
|
$ |
18,576,829 |
|
|
$ |
18,142,751 |
|
|
$ |
17,715,803 |
|
|
$ |
17,465,199 |
|
Allowance for loan and
covered loan losses |
|
(106,091 |
) |
|
(101,211 |
) |
|
(96,918 |
) |
|
(97,506 |
) |
|
(96,463 |
) |
Cash and due from
banks |
|
251,289 |
|
|
236,242 |
|
|
249,687 |
|
|
243,080 |
|
|
237,402 |
|
Other assets |
|
1,687,711 |
|
|
1,545,136 |
|
|
1,530,720 |
|
|
1,505,293 |
|
|
1,521,208 |
|
Total assets |
|
$ |
21,688,450 |
|
|
$ |
20,256,996 |
|
|
$ |
19,826,240 |
|
|
$ |
19,366,670 |
|
|
$ |
19,127,346 |
|
Interest-bearing
deposits |
|
$ |
13,489,651 |
|
|
$ |
13,115,453 |
|
|
$ |
12,863,507 |
|
|
$ |
12,771,359 |
|
|
$ |
12,695,780 |
|
Federal Home Loan Bank
advances |
|
402,646 |
|
|
347,656 |
|
|
357,532 |
|
|
335,198 |
|
|
380,083 |
|
Other borrowings |
|
272,782 |
|
|
193,660 |
|
|
194,994 |
|
|
84,795 |
|
|
54,653 |
|
Subordinated notes |
|
140,000 |
|
|
140,000 |
|
|
140,000 |
|
|
140,000 |
|
|
140,000 |
|
Junior subordinated
debentures |
|
264,974 |
|
|
249,493 |
|
|
249,493 |
|
|
249,493 |
|
|
249,493 |
|
Total interest-bearing
liabilities |
|
$ |
14,570,053 |
|
|
$ |
14,046,262 |
|
|
$ |
13,805,526 |
|
|
$ |
13,580,845 |
|
|
$ |
13,520,009 |
|
Non-interest bearing
deposits |
|
4,473,632 |
|
|
3,725,728 |
|
|
3,584,452 |
|
|
3,398,774 |
|
|
3,233,937 |
|
Other liabilities |
|
334,254 |
|
|
328,878 |
|
|
321,906 |
|
|
329,196 |
|
|
352,497 |
|
Equity |
|
2,310,511 |
|
|
2,156,128 |
|
|
2,114,356 |
|
|
2,057,855 |
|
|
2,020,903 |
|
Total liabilities and shareholders’
equity |
|
$ |
21,688,450 |
|
|
$ |
20,256,996 |
|
|
$ |
19,826,240 |
|
|
$ |
19,366,670 |
|
|
$ |
19,127,346 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Net Interest Margin - 5 Quarter Trends |
|
|
|
Three Months Ended |
|
|
September 30, 2015 |
|
June 30, 2015 |
|
March 31, 2015 |
|
December 31, 2014 |
|
September 30, 2014 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Liquidity management
assets |
|
2.29 |
% |
|
2.36 |
% |
|
2.29 |
% |
|
2.08 |
% |
|
2.03 |
% |
Other earning assets |
|
3.00 |
|
|
3.54 |
|
|
2.94 |
|
|
3.40 |
|
|
3.21 |
|
Loans, net of unearned
income |
|
3.98 |
|
|
4.03 |
|
|
4.08 |
|
|
4.21 |
|
|
4.19 |
|
Covered loans |
|
5.91 |
|
|
6.30 |
|
|
6.98 |
|
|
6.80 |
|
|
8.03 |
|
Total earning assets |
|
3.73 |
% |
|
3.81 |
% |
|
3.83 |
% |
|
3.89 |
% |
|
3.90 |
% |
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
|
0.37 |
% |
|
0.37 |
% |
|
0.37 |
% |
|
0.39 |
% |
|
0.38 |
% |
Federal Home Loan Bank
advances |
|
2.42 |
|
|
2.09 |
|
|
2.45 |
|
|
3.00 |
|
|
2.76 |
|
Other borrowings |
|
1.52 |
|
|
1.63 |
|
|
1.64 |
|
|
1.47 |
|
|
1.45 |
|
Subordinated notes |
|
5.08 |
|
|
5.07 |
|
|
5.07 |
|
|
5.07 |
|
|
5.07 |
|
Junior subordinated
debentures |
|
3.14 |
|
|
3.13 |
|
|
3.10 |
|
|
3.04 |
|
|
3.28 |
|
Total interest-bearing
liabilities |
|
0.54 |
% |
|
0.52 |
% |
|
0.54 |
% |
|
0.55 |
% |
|
0.56 |
% |
Interest rate spread |
|
3.19 |
% |
|
3.29 |
% |
|
3.29 |
% |
|
3.34 |
% |
|
3.34 |
% |
Net free
funds/contribution |
|
0.14 |
|
|
0.12 |
|
|
0.13 |
|
|
0.12 |
|
|
0.12 |
|
Net interest income/Net
interest margin |
|
3.33 |
% |
|
3.41 |
% |
|
3.42 |
% |
|
3.46 |
% |
|
3.46 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Non-Interest Income - 5 Quarter Trends |
|
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(In thousands) |
|
2015 |
|
2015 |
|
2015 |
|
2014 |
|
2014 |
Brokerage |
|
$ |
6,579 |
|
|
$ |
6,750 |
|
|
$ |
6,852 |
|
|
$ |
7,892 |
|
|
$ |
7,185 |
|
Trust and asset
management |
|
11,664 |
|
|
11,726 |
|
|
11,248 |
|
|
10,757 |
|
|
10,474 |
|
Total wealth management |
|
18,243 |
|
|
18,476 |
|
|
18,100 |
|
|
18,649 |
|
|
17,659 |
|
Mortgage banking |
|
27,887 |
|
|
36,007 |
|
|
27,800 |
|
|
24,694 |
|
|
26,691 |
|
Service charges on deposit
accounts |
|
7,403 |
|
|
6,474 |
|
|
6,297 |
|
|
6,189 |
|
|
6,084 |
|
(Losses) gains on
available-for-sale securities, net |
|
(98 |
) |
|
(24 |
) |
|
524 |
|
|
18 |
|
|
(153 |
) |
Fees from covered call
options |
|
2,810 |
|
|
4,565 |
|
|
4,360 |
|
|
2,966 |
|
|
2,107 |
|
Trading (losses) gains,
net |
|
(135 |
) |
|
160 |
|
|
(477 |
) |
|
(507 |
) |
|
293 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
2,606 |
|
|
2,347 |
|
|
2,191 |
|
|
1,119 |
|
|
1,207 |
|
BOLI |
|
212 |
|
|
2,180 |
|
|
766 |
|
|
661 |
|
|
652 |
|
Administrative services |
|
1,072 |
|
|
1,053 |
|
|
1,026 |
|
|
1,107 |
|
|
990 |
|
Miscellaneous |
|
4,953 |
|
|
5,775 |
|
|
3,954 |
|
|
2,761 |
|
|
2,422 |
|
Total other income |
|
8,843 |
|
|
11,355 |
|
|
7,937 |
|
|
5,648 |
|
|
5,271 |
|
Total Non-Interest
Income |
|
$ |
64,953 |
|
|
$ |
77,013 |
|
|
$ |
64,541 |
|
|
$ |
57,657 |
|
|
$ |
57,952 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Non-Interest Expense - 5 Quarter Trends |
|
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(In thousands) |
|
2015 |
|
2015 |
|
2015 |
|
2014 |
|
2014 |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
53,028 |
|
|
$ |
46,617 |
|
|
$ |
46,848 |
|
|
$ |
45,255 |
|
|
$ |
45,471 |
|
Commissions and incentive
compensation |
|
30,035 |
|
|
33,387 |
|
|
25,494 |
|
|
28,369 |
|
|
27,885 |
|
Benefits |
|
14,686 |
|
|
14,417 |
|
|
17,788 |
|
|
14,009 |
|
|
12,620 |
|
Total salaries and
employee benefits |
|
97,749 |
|
|
94,421 |
|
|
90,130 |
|
|
87,633 |
|
|
85,976 |
|
Equipment |
|
8,887 |
|
|
7,914 |
|
|
7,836 |
|
|
7,555 |
|
|
7,570 |
|
Occupancy, net |
|
12,066 |
|
|
11,401 |
|
|
12,351 |
|
|
11,600 |
|
|
10,446 |
|
Data processing |
|
8,127 |
|
|
6,081 |
|
|
5,448 |
|
|
5,313 |
|
|
4,765 |
|
Advertising and
marketing |
|
6,237 |
|
|
6,406 |
|
|
3,907 |
|
|
3,669 |
|
|
3,528 |
|
Professional fees |
|
4,100 |
|
|
5,074 |
|
|
4,664 |
|
|
4,039 |
|
|
4,035 |
|
Amortization of other
intangible assets |
|
1,350 |
|
|
934 |
|
|
1,013 |
|
|
1,171 |
|
|
1,202 |
|
FDIC insurance |
|
3,035 |
|
|
3,047 |
|
|
2,987 |
|
|
2,810 |
|
|
3,211 |
|
OREO expense, net |
|
(367 |
) |
|
841 |
|
|
1,411 |
|
|
2,320 |
|
|
581 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party
brokers |
|
1,364 |
|
|
1,403 |
|
|
1,386 |
|
|
1,470 |
|
|
1,621 |
|
Postage |
|
1,927 |
|
|
1,578 |
|
|
1,633 |
|
|
1,724 |
|
|
1,427 |
|
Miscellaneous |
|
15,499 |
|
|
15,197 |
|
|
14,552 |
|
|
14,137 |
|
|
14,138 |
|
Total other expense |
|
18,790 |
|
|
18,178 |
|
|
17,571 |
|
|
17,331 |
|
|
17,186 |
|
Total Non-Interest
Expense |
|
$ |
159,974 |
|
|
$ |
154,297 |
|
|
$ |
147,318 |
|
|
$ |
143,441 |
|
|
$ |
138,500 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Allowance for Credit Losses, excluding covered loans - 5
Quarter Trends |
|
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
|
2015 |
|
2015 |
|
2015 |
|
2014 |
|
2014 |
Allowance for loan
losses at beginning of period |
|
$ |
100,204 |
|
|
$ |
94,446 |
|
|
$ |
91,705 |
|
|
$ |
91,019 |
|
|
$ |
92,253 |
|
Provision for
credit losses |
|
8,665 |
|
|
9,701 |
|
|
6,185 |
|
|
6,744 |
|
|
6,028 |
|
Other
adjustments |
|
(153 |
) |
|
(93 |
) |
|
(248 |
) |
|
(236 |
) |
|
(335 |
) |
Reclassification
(to) from allowance for unfunded lending-related
commitments |
|
(42 |
) |
|
4 |
|
|
(113 |
) |
|
46 |
|
|
62 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
964 |
|
|
1,243 |
|
|
677 |
|
|
289 |
|
|
832 |
|
Commercial real estate |
|
1,948 |
|
|
856 |
|
|
1,005 |
|
|
4,434 |
|
|
4,510 |
|
Home equity |
|
1,116 |
|
|
1,847 |
|
|
584 |
|
|
150 |
|
|
748 |
|
Residential real estate |
|
1,138 |
|
|
923 |
|
|
631 |
|
|
630 |
|
|
205 |
|
Premium finance receivables -
commercial |
|
1,595 |
|
|
1,526 |
|
|
1,263 |
|
|
1,463 |
|
|
1,557 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
|
4 |
|
|
— |
|
Consumer and other |
|
116 |
|
|
115 |
|
|
111 |
|
|
156 |
|
|
250 |
|
Total charge-offs |
|
6,877 |
|
|
6,510 |
|
|
4,271 |
|
|
7,126 |
|
|
8,102 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
462 |
|
|
285 |
|
|
370 |
|
|
315 |
|
|
296 |
|
Commercial real estate |
|
213 |
|
|
1,824 |
|
|
312 |
|
|
572 |
|
|
275 |
|
Home equity |
|
42 |
|
|
39 |
|
|
48 |
|
|
57 |
|
|
99 |
|
Residential real estate |
|
136 |
|
|
16 |
|
|
76 |
|
|
19 |
|
|
111 |
|
Premium finance receivables -
commercial |
|
278 |
|
|
458 |
|
|
329 |
|
|
219 |
|
|
289 |
|
Premium finance receivables - life
insurance |
|
16 |
|
|
— |
|
|
— |
|
|
6 |
|
|
1 |
|
Consumer and other |
|
52 |
|
|
34 |
|
|
53 |
|
|
70 |
|
|
42 |
|
Total recoveries |
|
1,199 |
|
|
2,656 |
|
|
1,188 |
|
|
1,258 |
|
|
1,113 |
|
Net
charge-offs |
|
(5,678 |
) |
|
(3,854 |
) |
|
(3,083 |
) |
|
(5,868 |
) |
|
(6,989 |
) |
Allowance for loan losses
at period end |
|
$ |
102,996 |
|
|
$ |
100,204 |
|
|
$ |
94,446 |
|
|
$ |
91,705 |
|
|
$ |
91,019 |
|
Allowance for unfunded
lending-related commitments at period end |
|
926 |
|
|
884 |
|
|
888 |
|
|
775 |
|
|
822 |
|
Allowance for credit losses
at period end |
|
$ |
103,922 |
|
|
$ |
101,088 |
|
|
$ |
95,334 |
|
|
$ |
92,480 |
|
|
$ |
91,841 |
|
Annualized net charge-offs
by category as a percentage of its own respective category’s
average: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
0.05 |
% |
|
0.09 |
% |
|
0.03 |
% |
|
— |
% |
|
0.06 |
% |
Commercial real estate |
|
0.13 |
|
|
(0.08 |
) |
|
0.06 |
|
|
0.34 |
|
|
0.38 |
|
Home equity |
|
0.55 |
|
|
1.01 |
|
|
0.30 |
|
|
0.05 |
|
|
0.36 |
|
Residential real estate |
|
0.42 |
|
|
0.39 |
|
|
0.28 |
|
|
0.30 |
|
|
0.05 |
|
Premium finance receivables -
commercial |
|
0.21 |
|
|
0.18 |
|
|
0.16 |
|
|
0.21 |
|
|
0.20 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
0.17 |
|
|
0.23 |
|
|
0.13 |
|
|
0.19 |
|
|
0.49 |
|
Total loans, net of unearned
income, excluding covered loans |
|
0.14 |
% |
|
0.10 |
% |
|
0.08 |
% |
|
0.16 |
% |
|
0.19 |
% |
Net charge-offs as a
percentage of the provision for credit losses |
|
65.53 |
% |
|
39.73 |
% |
|
49.87 |
% |
|
86.98 |
% |
|
115.95 |
% |
Loans at
period-end |
|
$ |
16,316,211 |
|
|
$ |
15,513,650 |
|
|
$ |
14,953,059 |
|
|
$ |
14,409,398 |
|
|
$ |
14,052,059 |
|
Allowance for loan losses
as a percentage of loans at period end |
|
0.63 |
% |
|
0.65 |
% |
|
0.63 |
% |
|
0.64 |
% |
|
0.65 |
% |
Allowance for credit losses
as a percentage of loans at period end |
|
0.64 |
% |
|
0.65 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.65 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Non-Performing Assets, excluding covered assets - 5 Quarter
Trends
|
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
2015 |
|
2015 |
|
2015 |
|
2014 |
|
2014 |
Loans past due
greater than 90 days and still
accruing(1): |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
474 |
|
|
$ |
— |
|
Commercial real-estate |
— |
|
|
701 |
|
|
— |
|
|
— |
|
|
— |
|
Home equity |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential real-estate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Premium finance receivables -
commercial |
8,231 |
|
|
9,053 |
|
|
8,062 |
|
|
7,665 |
|
|
7,115 |
|
Premium finance receivables - life
insurance |
— |
|
|
351 |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
140 |
|
|
110 |
|
|
91 |
|
|
119 |
|
|
175 |
|
Total loans past due greater than
90 days and still accruing |
8,371 |
|
|
10,215 |
|
|
8,153 |
|
|
8,258 |
|
|
7,290 |
|
Non-accrual
loans(2): |
|
|
|
|
|
|
|
|
|
Commercial |
12,018 |
|
|
5,394 |
|
|
5,586 |
|
|
9,157 |
|
|
10,455 |
|
Commercial real-estate |
28,617 |
|
|
23,183 |
|
|
29,982 |
|
|
26,605 |
|
|
27,363 |
|
Home equity |
8,365 |
|
|
5,695 |
|
|
7,665 |
|
|
6,174 |
|
|
5,696 |
|
Residential real-estate |
14,557 |
|
|
16,631 |
|
|
14,248 |
|
|
15,502 |
|
|
15,730 |
|
Premium finance receivables -
commercial |
13,751 |
|
|
15,156 |
|
|
15,902 |
|
|
12,705 |
|
|
14,110 |
|
Premium finance receivables - life
insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
297 |
|
|
280 |
|
|
236 |
|
|
277 |
|
|
426 |
|
Total non-accrual loans |
77,605 |
|
|
66,339 |
|
|
73,619 |
|
|
70,420 |
|
|
73,780 |
|
Total
non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
12,018 |
|
|
5,394 |
|
|
5,586 |
|
|
9,631 |
|
|
10,455 |
|
Commercial real-estate |
28,617 |
|
|
23,884 |
|
|
29,982 |
|
|
26,605 |
|
|
27,363 |
|
Home equity |
8,365 |
|
|
5,695 |
|
|
7,665 |
|
|
6,174 |
|
|
5,696 |
|
Residential real-estate |
14,557 |
|
|
16,631 |
|
|
14,248 |
|
|
15,502 |
|
|
15,730 |
|
Premium finance receivables -
commercial |
21,982 |
|
|
24,209 |
|
|
23,964 |
|
|
20,370 |
|
|
21,225 |
|
Premium finance receivables - life
insurance |
— |
|
|
351 |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
437 |
|
|
390 |
|
|
327 |
|
|
395 |
|
|
601 |
|
Total non-performing loans |
$ |
85,976 |
|
|
$ |
76,554 |
|
|
$ |
81,772 |
|
|
$ |
78,677 |
|
|
$ |
81,070 |
|
Other real estate owned |
29,053 |
|
|
33,044 |
|
|
33,131 |
|
|
36,419 |
|
|
41,506 |
|
Other real estate owned - from
acquisitions |
22,827 |
|
|
9,036 |
|
|
9,126 |
|
|
9,223 |
|
|
8,871 |
|
Other repossessed assets |
193 |
|
|
231 |
|
|
259 |
|
|
303 |
|
|
292 |
|
Total non-performing assets |
$ |
138,049 |
|
|
$ |
118,865 |
|
|
$ |
124,288 |
|
|
$ |
124,622 |
|
|
$ |
131,739 |
|
TDRs performing under the
contractual terms of the loan agreement |
49,173 |
|
|
52,174 |
|
|
54,687 |
|
|
69,697 |
|
|
69,868 |
|
Total
non-performing loans by category as a percent of its own respective
category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
0.27 |
% |
|
0.12 |
% |
|
0.13 |
% |
|
0.25 |
% |
|
0.28 |
% |
Commercial real-estate |
0.54 |
|
|
0.49 |
|
|
0.64 |
|
|
0.59 |
|
|
0.61 |
|
Home equity |
1.05 |
|
|
0.80 |
|
|
1.08 |
|
|
0.86 |
|
|
0.79 |
|
Residential real-estate |
2.55 |
|
|
3.31 |
|
|
2.87 |
|
|
3.21 |
|
|
3.34 |
|
Premium finance receivables -
commercial |
0.91 |
|
|
0.98 |
|
|
1.03 |
|
|
0.87 |
|
|
0.89 |
|
Premium finance receivables - life
insurance |
— |
|
|
0.01 |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
0.33 |
|
|
0.33 |
|
|
0.25 |
|
|
0.26 |
|
|
0.40 |
|
Total loans, net of unearned
income |
0.53 |
% |
|
0.49 |
% |
|
0.55 |
% |
|
0.55 |
% |
|
0.58 |
% |
Total non-performing assets
as a percentage of total assets |
0.63 |
% |
|
0.57 |
% |
|
0.61 |
% |
|
0.62 |
% |
|
0.69 |
% |
Allowance for loan losses
as a percentage of total non-performing loans |
119.79 |
% |
|
130.89 |
% |
|
115.50 |
% |
|
116.56 |
% |
|
112.27 |
% |
(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 $10.1 million,
$10.6 million, $12.5 million, $12.6 million and $13.5 million as of
September 30, 2015, June 30, 2015, March 31, 2015,
December 31, 2014 and September 30, 2014,
respectively.
FOR MORE INFORMATION CONTACT:
Edward J. Wehmer, President & Chief Executive Officer
David A. Dykstra, Senior Executive Vice President, Chief Operating Officer & Treasurer
(847) 939-9000
Web site address: www.wintrust.com
Wintrust Financial (NASDAQ:WTFC)
Historical Stock Chart
From Jul 2024 to Aug 2024
Wintrust Financial (NASDAQ:WTFC)
Historical Stock Chart
From Aug 2023 to Aug 2024