ROSEMONT, Ill., April 18, 2016 (GLOBE NEWSWIRE) -- Wintrust
Financial Corporation (“Wintrust” or “the Company”) (Nasdaq:WTFC)
announced net income of $49.1 million or $0.90 per diluted common
share for the first quarter of 2016 compared to net income of $35.5
million or $0.64 per diluted common share for the fourth quarter of
2015 and $39.1 million or $0.76 per diluted common share for the
first quarter of 2015.
Highlights compared with the Fourth Quarter of
2015*:
- Total loans, excluding covered loans and mortgage loans
held-for-sale, increased by $328 million, or 8% on annualized
basis, to $17.4 billion.
- Total assets increased by 10% on an annualized basis to $23.5
billion.
- Total deposits increased by $577 million, or 12% on an
annualized basis, to $19.2 billion. Non-interest bearing deposit
accounts now comprise 27% of total deposits compared to 26% of
total deposits at the prior quarter end.
- Net interest margin increased 3 basis points primarily as a
result of higher yields on earning assets.
- Net charge-offs, excluding covered loans, decreased by $3.1
million to $3.5 million. Net charge-offs as a percentage of average
total loans, excluding covered loans, decreased to 8 bps.
- Maintained strong capital ratios with a tangible common equity
ratio, assuming full conversion of convertible preferred stock, of
7.8%.
- Completed the acquisition of Generations Bancorp, Inc.
("Generations") at the end of March, adding $123 million in assets
prior to purchase accounting adjustments.
- Extinguished $15.0 million of junior subordinated debentures
resulting in a $4.3 million pre-tax gain, or $2.6 million on an
after-tax basis.
- Net overhead ratio decreased to 1.49% from 1.82%. Excluding the
impact of the gain from the extinguishment of junior subordinated
debentures, the net overhead ratio was 1.57%.
* See "Supplemental Financial
Measures/Ratios" on pages 13-14 for more information on
non-GAAP measures.
Edward J. Wehmer, President and Chief Executive
Officer, commented, “Wintrust reported record net income of $49.1
million for the first quarter of 2016, a 38% increase over the
fourth quarter of 2015 and a 26% increase over the first quarter of
2015. Excluding a $4.3 million gain from the extinguishment of debt
and $285,000 of acquisition related charges, net income totaled
$46.7 million for the quarter. The first quarter of 2016 was
characterized by positive momentum from continued loan and deposit
growth, improvement in the net interest margin, stable credit
quality metrics, the acquisition of Generations and decreased
operating costs, including those related to recent
acquisitions."
Mr. Wehmer continued, “Excluding covered loans
and mortgage loans held-for-sale, we grew our loan portfolio by
$328 million in the first quarter, which included $73 million of
loans, prior to purchase accounting adjustments, acquired in
relation to the acquisition of Generations. This increased loan
volume along with improvement in net interest margin during the
quarter resulted in an increase in net interest income of $4.3
million. Our loan pipelines remain consistently strong. Deposit
growth continued in the first quarter of 2016 as total deposits
increased $577 million, which included $100 million, prior to
purchase accounting adjustments, assumed from the acquisition of
Generations. Demand deposits increased $369 million and now
comprise 27% of our overall deposit base compared to 26% at the end
of the fourth quarter of 2015."
Commenting on credit quality, Mr. Wehmer noted,
“During the quarter, the Company has continued its practice of
timely addressing and resolving non-performing credits. Excluding
covered loans, low net charge-offs continued in the current quarter
with net charge-offs totaling $3.5 million in the first quarter
compared to $6.6 million in the fourth quarter. Additionally, net
charge-offs as a percentage of average total loans decreased to
0.08% from 0.15% in the fourth quarter of 2015. Total
non-performing assets, excluding covered assets, as a percentage of
total assets remained stable at 0.56%. Excluding covered loans,
non-performing loans as a percentage of total loans was 0.51% at
the end of the first quarter. The allowance for loan losses as a
percentage of total loans, excluding covered loans, increased to
0.63% compared to 0.62% at the end of the fourth quarter of 2015.
As a percentage of non-performing loans, the allowance for loan
losses, excluding covered loans, remained strong at 123%. We
believe that the Company's reserves remain appropriate."
Mr. Wehmer further commented, “Mortgage banking
revenue in the first quarter totaled $21.7 million, a decrease of
$1.6 million compared to the fourth quarter of 2015 and decrease of
$6.1 million compared to the first quarter of 2015. The decreased
revenue from the fourth quarter resulted from origination volumes
declining to $736.6 million from $808.9 million as a result of
unfavorable changes in product and channel mix, more competitive
pricing and seasonally slower sales in January and February.
Our mortgage pipeline strengthened considerably in March and is
expected to continue strong throughout the second quarter. We
believe that our mortgage banking business remains well positioned
for growth both organically and through acquisitions."
Turning to the future, Mr. Wehmer stated, “We
anticipate the positive momentum realized in the first quarter to
continue into the remainder of 2016. We have realized the expected
cost savings from the acquisitions in 2015 and continue to monitor
other opportunities to leverage our existing infrastructure 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."
The graphs below illustrate certain highlights
of the first quarter of 2016.
http://resource.globenewswire.com/Resource/Download/abd60ed6-8ee8-4846-8700-30eab7fd53a5?size=o
Wintrust’s key operating measures and growth
rates for the first quarter of 2016, as compared to the
sequential and linked quarters, are shown in the table
below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% or(5)
basis point (bp) change from
4nd Quarter
2015 |
|
% or
basis point (bp)
change from
1st Quarter
2015 |
|
|
Three Months Ended |
|
|
(Dollars in thousands) |
|
March 31,
2016 |
|
December 31,
2015 |
|
March 31,
2015 |
|
|
Net income |
|
$ |
49,111 |
|
|
$ |
35,512 |
|
|
$ |
39,052 |
|
|
38 |
|
% |
|
26 |
|
% |
Net income per common
share – diluted |
|
$ |
0.90 |
|
|
$ |
0.64 |
|
|
$ |
0.76 |
|
|
41 |
|
% |
|
18 |
|
% |
Net revenue
(1) |
|
$ |
240,261 |
|
|
$ |
232,296 |
|
|
$ |
216,432 |
|
|
3 |
|
% |
|
11 |
|
% |
Net interest income |
|
$ |
171,509 |
|
|
$ |
167,206 |
|
|
$ |
151,891 |
|
|
3 |
|
% |
|
13 |
|
% |
Net interest margin
(2) |
|
3.32 |
% |
|
3.29 |
% |
|
3.42 |
% |
|
3 |
|
bp |
|
(10 |
) |
bp |
Net overhead ratio
(2) (3) |
|
1.49 |
% |
|
1.82 |
% |
|
1.69 |
% |
|
(33 |
) |
bp |
|
(20 |
) |
bp |
Efficiency ratio (2)
(4) |
|
63.96 |
% |
|
71.39 |
% |
|
67.90 |
% |
|
(743 |
) |
bp |
|
(394 |
) |
bp |
Return on average
assets |
|
0.86 |
% |
|
0.63 |
% |
|
0.80 |
% |
|
23 |
|
bp |
|
6 |
|
bp |
Return on average common
equity |
|
8.55 |
% |
|
6.03 |
% |
|
7.64 |
% |
|
252 |
|
bp |
|
91 |
|
bp |
Return on average tangible common equity |
|
11.33 |
% |
|
8.12 |
% |
|
9.96 |
% |
|
321 |
|
bp |
|
137 |
|
bp |
At end of
period |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
|
$ |
20,371,566 |
|
|
10 |
|
% |
|
15 |
|
% |
Total loans, excluding
loans held-for-sale, excluding covered loans |
|
$ |
17,446,413 |
|
|
$ |
17,118,117 |
|
|
$ |
14,953,059 |
|
|
8 |
|
% |
|
17 |
|
% |
Total loans, including
loans held-for-sale, excluding covered loans |
|
$ |
17,760,967 |
|
|
$ |
17,506,155 |
|
|
$ |
15,399,414 |
|
|
6 |
|
% |
|
15 |
|
% |
Total deposits |
|
$ |
19,217,071 |
|
|
$ |
18,639,634 |
|
|
$ |
16,938,769 |
|
|
12 |
|
% |
|
13 |
|
% |
Total shareholders’ equity |
|
$ |
2,418,442 |
|
|
$ |
2,352,274 |
|
|
$ |
2,131,074 |
|
|
11 |
|
% |
|
13 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
– First Quarter 2016
For the first quarter of 2016, net interest
income totaled $171.5 million, an increase of $4.3 million as
compared to the fourth quarter of 2015 and an increase of $19.6
million as compared to the first quarter of 2015. The changes
in net interest income on both a sequential and linked quarter
basis are the result of the following:
- Net interest income increased $4.3 million in the first quarter
of 2016 compared to the fourth quarter of 2015, due to:
- An increase in total interest income of $4.7 million resulting
primarily from loan growth during the period and an increase in the
yield on earning assets, partially offset by one less day in the
quarter.
- Interest expense increased $441,000 primarily as a result of an
increase in the average balance of interest-bearing liabilities,
partially offset by one less day in the quarter.
- Combined, the increase in interest income of $4.7 million and
the increase in interest expense of $441,000 created the $4.3
million increase in net interest income.
- Net interest income increased $19.6 million in the first
quarter of 2016 compared to the first quarter of 2015, due to:
- Average loans, excluding covered loans, increased by $2.5
billion compared to the first quarter of 2015. The growth in
average loans, excluding covered loans, as well as one additional
day in the quarter was partially offset by a 12 basis point decline
in the yield on earning assets, resulting in an increase in total
interest income of $21.9 million.
- An increase in interest bearing deposits, an increase in FHLB
advances and borrowings under the Company's term credit facility at
the end of the second quarter of 2015 resulted in a $2.3 million
increase in interest expense.
- Combined, the increase in interest income of $21.9 million and
the increase in interest expense of $2.3 million created the $19.6
million increase in net interest income in the first quarter of
2016 compared to the first quarter of 2015.
The net interest margin, on a fully taxable
equivalent basis, for the first quarter of 2016 was 3.32% compared
to 3.29% for the fourth quarter of 2015 and 3.42% for the first
quarter of 2015 (see "Net Interest Income" section later in this
release for further detail).
Non-interest income totaled $68.8 million in the
first quarter of 2016, increasing $3.7 million, or 6%, compared to
the fourth quarter of 2015 and increasing $4.2 million, or 7%,
compared to the first quarter of 2015. The increase in non-interest
income in the first quarter of 2016 compared to the fourth quarter
of 2015 is primarily attributable to gains on sales of investment
securities, increased operating lease income and a $4.3 million
gain from an extinguishment of debt, partially offset by decreased
mortgage banking revenue and decreased fees from covered call
options. The increase in non-interest income in the first
quarter of 2016 compared to the first quarter of 2015 was primarily
attributable to gains on sales of investments securities, increased
operating lease income, higher service charges on deposits and a
$4.3 million gain from an extinguishment of debt, partially offset
by decreased mortgage banking revenue and decreased fees from
covered call options (see "Non-Interest Income" section later in
this release for further detail).
Non-interest expense totaled $153.7 million in
the first quarter of 2016, decreasing $13.1 million, or 8%,
compared to the fourth quarter of 2015 and increasing $6.4 million,
or 4%, compared to the first quarter of 2015. The decrease in
the current quarter compared to the fourth quarter of 2015 can be
primarily attributed to lower salary and employee benefit costs,
lower advertising and marketing expenses and a decrease in OREO
expenses. The increase in the first quarter of 2016 compared
to the first quarter of 2015 was primarily attributable to 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 data processing, 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 0.56% as of March 31, 2016, compared to 0.56% at
December 31, 2015, and 0.61% at March 31, 2015.
Non-performing assets, excluding covered assets, totaled $130.7
million at March 31, 2016, compared to $128.2 million at
December 31, 2015 and $124.3 million at March 31,
2015.
Non-performing loans, excluding covered loans,
totaled $89.5 million, or 0.51% of total loans, at March 31,
2016, compared to $84.1 million, or 0.49% of total loans, at
December 31, 2015 and $81.8 million, or 0.55% of total loans,
at March 31, 2015. The increase in non-performing loans,
excluding covered loans, compared to December 31, 2015 is
primarily the result of a $2.5 million increase in the home equity
portfolio and a $1.6 million increase in the life insurance premium
finance receivables portfolio. Compared to March 31, 2015, the
increase is primarily the result of a $7.1 million increase in the
commercial loan portfolio and a $1.6 million increase in the life
insurance premium finance receivables portfolio. OREO, excluding
covered OREO, of $41.0 million at March 31, 2016 decreased
$2.9 million compared to $43.9 million at December 31, 2015
and decreased $1.3 million compared to $42.3 million at
March 31, 2015.
The provision for credit losses, excluding the
provision for covered loan losses, totaled $8.4 million for the
first quarter of 2016 compared to $9.2 million for the fourth
quarter of 2015 and $6.2 million for the first quarter of 2015. The
higher provision for credit losses in the first quarter of 2016
compared to the same period of 2015 was primarily due to increased
reserves on the additional non-performing loans during the period.
Net charge-offs as a percentage of loans,
excluding covered loans, for the first quarter of 2016 totaled 8
basis points on an annualized basis compared to 15 basis points on
an annualized basis in the fourth quarter of 2015 and 8 basis
points on an annualized basis in the first quarter of 2015.
Net charge-offs totaled $3.5 million in the first quarter of 2016,
a $3.1 million decrease from $6.6 million in the fourth quarter of
2015 and a $410,000 increase from $3.1 million in the first quarter
of 2015.
Excluding the allowance for covered loan losses,
the allowance for credit losses at March 31, 2016 totaled
$111.2 million, or 0.64% of total loans, compared to $106.3
million, or 0.62% of total loans, at December 31, 2015 and
$95.3 million, or 0.64% of total loans, at March 31,
2015.
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 |
(In thousands, except per share
data) |
|
|
March 31,
2016 |
|
December 31,
2015 |
|
March 31,
2015 |
Net income |
|
|
$ |
49,111 |
|
|
$ |
35,512 |
|
|
$ |
39,052 |
|
Less: Preferred stock
dividends and discount accretion |
|
|
3,628 |
|
|
3,629 |
|
|
1,581 |
|
Net income applicable to
common shares—Basic |
(A) |
|
45,483 |
|
|
31,883 |
|
|
37,471 |
|
Add: Dividends on
convertible preferred stock, if dilutive |
|
|
1,578 |
|
|
1,579 |
|
|
1,581 |
|
Net income applicable to
common shares—Diluted |
(B) |
|
47,061 |
|
|
33,462 |
|
|
39,052 |
|
Weighted average common
shares outstanding |
(C) |
|
48,448 |
|
|
48,371 |
|
|
47,239 |
|
Effect of dilutive
potential common shares: |
|
|
|
|
|
|
|
Common stock equivalents |
|
|
750 |
|
|
935 |
|
|
1,158 |
|
Convertible preferred stock, if
dilutive |
|
|
3,070 |
|
|
3,070 |
|
|
3,075 |
|
Weighted average common
shares and effect of dilutive potential common shares |
(D) |
|
52,268 |
|
|
52,376 |
|
|
51,472 |
|
Net income per common
share: |
|
|
|
|
|
|
|
Basic |
(A/C) |
|
$ |
0.94 |
|
|
$ |
0.66 |
|
|
$ |
0.79 |
|
Diluted |
(B/D) |
|
$ |
0.90 |
|
|
$ |
0.64 |
|
|
$ |
0.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights
|
|
|
|
|
Three Months Ended |
(Dollars in thousands, except per
share data) |
|
March 31,
2016 |
|
December 31,
2015 |
|
March 31,
2015 |
Selected Financial
Condition Data (at end of period): |
|
|
|
|
|
|
Total assets |
|
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
|
$ |
20,371,566 |
|
Total loans, excluding
loans held-for-sale and covered loans |
|
17,446,413 |
|
|
17,118,117 |
|
|
14,953,059 |
|
Total deposits |
|
19,217,071 |
|
|
18,639,634 |
|
|
16,938,769 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
268,566 |
|
|
249,493 |
|
Total shareholders’
equity |
|
2,418,442 |
|
|
2,352,274 |
|
|
2,131,074 |
|
Selected
Statements of Income Data: |
|
|
|
|
|
|
Net interest income |
|
$ |
171,509 |
|
|
$ |
167,206 |
|
|
$ |
151,891 |
|
Net revenue
(1) |
|
240,261 |
|
|
232,296 |
|
|
216,432 |
|
Net income |
|
49,111 |
|
|
35,512 |
|
|
39,052 |
|
Net income per common
share – Basic |
|
$ |
0.94 |
|
|
$ |
0.66 |
|
|
$ |
0.79 |
|
Net income per common
share – Diluted |
|
$ |
0.90 |
|
|
$ |
0.64 |
|
|
$ |
0.76 |
|
Selected Financial
Ratios and Other Data: |
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
Net interest margin
(2) |
|
3.32 |
% |
|
3.29 |
% |
|
3.42 |
% |
Non-interest income to
average assets |
|
1.21 |
% |
|
1.16 |
% |
|
1.32 |
% |
Non-interest expense to
average assets |
|
2.70 |
% |
|
2.98 |
% |
|
3.02 |
% |
Net overhead ratio
(2) (3) |
|
1.49 |
% |
|
1.82 |
% |
|
1.69 |
% |
Efficiency ratio
(2) (4) |
|
63.96 |
% |
|
71.39 |
% |
|
67.90 |
% |
Return on average
assets |
|
0.86 |
% |
|
0.63 |
% |
|
0.80 |
% |
Return on average common
equity |
|
8.55 |
% |
|
6.03 |
% |
|
7.64 |
% |
Return on average tangible
common equity (2) |
|
11.33 |
% |
|
8.12 |
% |
|
9.96 |
% |
Average total assets |
|
$ |
22,902,913 |
|
|
$ |
22,225,112 |
|
|
$ |
19,814,606 |
|
Average total
shareholders’ equity |
|
2,389,770 |
|
|
2,347,545 |
|
|
2,114,356 |
|
Average loans to average
deposits ratio (excluding covered loans) |
|
93.8 |
% |
|
91.9 |
% |
|
91.4 |
% |
Average loans to average
deposits ratio (including covered loans) |
|
94.6 |
% |
|
92.7 |
% |
|
92.7 |
% |
Common Share Data at
end of period: |
|
|
|
|
|
|
Market price per common
share |
|
$ |
44.34 |
|
|
$ |
48.52 |
|
|
$ |
47.68 |
|
Book value per common
share (2) |
|
$ |
44.67 |
|
|
$ |
43.42 |
|
|
$ |
42.30 |
|
Tangible common book
value per share (2) |
|
$ |
34.20 |
|
|
$ |
33.17 |
|
|
$ |
33.04 |
|
Common shares
outstanding |
|
48,518,998 |
|
|
48,383,279 |
|
|
47,389,608 |
|
Other Data at end
of period:(8) |
|
|
|
|
|
|
Leverage Ratio
(5) |
|
8.7 |
% |
|
9.1 |
% |
|
9.2 |
% |
Tier 1 capital to
risk-weighted assets (5) |
|
9.5 |
% |
|
10.0 |
% |
|
10.1 |
% |
Common equity Tier 1
capital to risk-weighted assets (5) |
|
8.3 |
% |
|
8.4 |
% |
|
9.1 |
% |
Total capital to
risk-weighted assets (5) |
|
12.0 |
% |
|
12.2 |
% |
|
12.5 |
% |
Tangible common equity
ratio (TCE) (2)(7) |
|
7.2 |
% |
|
7.2 |
% |
|
7.9 |
% |
Tangible common equity
ratio, assuming full conversion of convertible preferred stock
(2) (7) |
|
7.8 |
% |
|
7.7 |
% |
|
8.5 |
% |
Allowance for credit
losses (6) |
|
$ |
111,201 |
|
|
$ |
106,349 |
|
|
$ |
95,334 |
|
Non-performing loans |
|
$ |
89,499 |
|
|
$ |
84,057 |
|
|
$ |
81,772 |
|
Allowance for credit
losses to total loans (6) |
|
0.64 |
% |
|
0.62 |
% |
|
0.64 |
% |
Non-performing loans to
total loans |
|
0.51 |
% |
|
0.49 |
% |
|
0.55 |
% |
Number of: |
|
|
|
|
|
|
Bank subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
Banking offices |
|
153 |
|
|
152 |
|
|
146 |
|
|
|
|
|
|
|
|
|
|
|
(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)
March 31,
2016 |
|
December 31,
2015 |
|
(Unaudited)
March 31,
2015 |
Assets |
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
208,480 |
|
|
$ |
271,454 |
|
|
$ |
286,743 |
|
Federal funds sold and
securities purchased under resale agreements |
|
3,820 |
|
|
4,341 |
|
|
4,129 |
|
Interest bearing deposits
with banks |
|
817,013 |
|
|
607,782 |
|
|
697,799 |
|
Available-for-sale
securities, at fair value |
|
770,983 |
|
|
1,716,388 |
|
|
1,721,030 |
|
Held-to-maturity
securities, at amortized cost |
|
911,715 |
|
|
884,826 |
|
|
— |
|
Trading account
securities |
|
2,116 |
|
|
448 |
|
|
7,811 |
|
Federal Home Loan Bank and
Federal Reserve Bank stock |
|
113,222 |
|
|
101,581 |
|
|
92,948 |
|
Brokerage customer
receivables |
|
28,266 |
|
|
27,631 |
|
|
25,287 |
|
Mortgage loans
held-for-sale |
|
314,554 |
|
|
388,038 |
|
|
446,355 |
|
Loans, net of unearned
income, excluding covered loans |
|
17,446,413 |
|
|
17,118,117 |
|
|
14,953,059 |
|
Covered loans |
|
138,848 |
|
|
148,673 |
|
|
209,694 |
|
Total loans |
|
17,585,261 |
|
|
17,266,790 |
|
|
15,162,753 |
|
Less: Allowance for loan
losses |
|
110,171 |
|
|
105,400 |
|
|
94,446 |
|
Less: Allowance for covered loan
losses |
|
2,507 |
|
|
3,026 |
|
|
1,878 |
|
Net loans |
|
17,472,583 |
|
|
17,158,364 |
|
|
15,066,429 |
|
Premises and equipment,
net |
|
591,608 |
|
|
592,256 |
|
|
559,281 |
|
Lease investments,
net |
|
89,337 |
|
|
63,170 |
|
|
383 |
|
FDIC indemnification
asset |
|
— |
|
|
— |
|
|
10,224 |
|
Accrued interest
receivable and other assets |
|
647,853 |
|
|
597,099 |
|
|
526,029 |
|
Trade date securities
receivable |
|
1,008,613 |
|
|
— |
|
|
488,063 |
|
Goodwill |
|
484,280 |
|
|
471,761 |
|
|
420,197 |
|
Other intangible
assets |
|
23,725 |
|
|
24,209 |
|
|
18,858 |
|
Total assets |
|
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
|
$ |
20,371,566 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,205,410 |
|
|
$ |
4,836,420 |
|
|
$ |
3,779,609 |
|
Interest bearing |
|
14,011,661 |
|
|
13,803,214 |
|
|
13,159,160 |
|
Total deposits |
|
19,217,071 |
|
|
18,639,634 |
|
|
16,938,769 |
|
Federal Home Loan Bank
advances |
|
799,482 |
|
|
853,431 |
|
|
406,839 |
|
Other borrowings |
|
253,126 |
|
|
265,785 |
|
|
186,716 |
|
Subordinated notes |
|
138,888 |
|
|
138,861 |
|
|
138,782 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
268,566 |
|
|
249,493 |
|
Trade date securities
payable |
|
— |
|
|
538 |
|
|
2,929 |
|
Accrued interest payable
and other liabilities |
|
407,593 |
|
|
390,259 |
|
|
316,964 |
|
Total liabilities |
|
21,069,726 |
|
|
20,557,074 |
|
|
18,240,492 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
Preferred stock |
|
251,257 |
|
|
251,287 |
|
|
126,427 |
|
Common stock |
|
48,608 |
|
|
48,469 |
|
|
47,475 |
|
Surplus |
|
1,194,750 |
|
|
1,190,988 |
|
|
1,156,542 |
|
Treasury stock |
|
(4,145 |
) |
|
(3,973 |
) |
|
(3,948 |
) |
Retained earnings |
|
967,882 |
|
|
928,211 |
|
|
835,669 |
|
Accumulated other comprehensive
loss |
|
(39,910 |
) |
|
(62,708 |
) |
|
(31,091 |
) |
Total shareholders’ equity |
|
2,418,442 |
|
|
2,352,274 |
|
|
2,131,074 |
|
Total liabilities and
shareholders’ equity |
|
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
|
$ |
20,371,566 |
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
|
|
Three Months Ended |
(In thousands, except per share
data) |
March 31
2016 |
|
December 31,
2015 |
|
March 31,
2015 |
Interest
income |
|
|
|
|
|
Interest and fees on loans |
$ |
173,127 |
|
|
$ |
169,501 |
|
|
$ |
154,676 |
|
Interest bearing deposits with
banks |
746 |
|
|
493 |
|
|
316 |
|
Federal funds sold and securities
purchased under resale agreements |
1 |
|
|
— |
|
|
2 |
|
Investment securities |
17,190 |
|
|
16,405 |
|
|
14,400 |
|
Trading account securities |
11 |
|
|
25 |
|
|
13 |
|
Federal Home Loan Bank and Federal
Reserve Bank stock |
937 |
|
|
857 |
|
|
769 |
|
Brokerage customer receivables |
219 |
|
|
206 |
|
|
181 |
|
Total interest income |
192,231 |
|
|
187,487 |
|
|
170,357 |
|
Interest
expense |
|
|
|
|
|
Interest on deposits |
12,781 |
|
|
12,617 |
|
|
11,814 |
|
Interest on Federal Home Loan Bank
advances |
2,886 |
|
|
2,684 |
|
|
2,156 |
|
Interest on other borrowings |
1,058 |
|
|
1,007 |
|
|
788 |
|
Interest on subordinated notes |
1,777 |
|
|
1,777 |
|
|
1,775 |
|
Interest on junior subordinated
debentures |
2,220 |
|
|
2,196 |
|
|
1,933 |
|
Total interest expense |
20,722 |
|
|
20,281 |
|
|
18,466 |
|
Net interest
income |
171,509 |
|
|
167,206 |
|
|
151,891 |
|
Provision for credit
losses |
8,034 |
|
|
9,059 |
|
|
6,079 |
|
Net interest income after
provision for credit losses |
163,475 |
|
|
158,147 |
|
|
145,812 |
|
Non-interest
income |
|
|
|
|
|
Wealth management |
18,320 |
|
|
18,634 |
|
|
18,100 |
|
Mortgage banking |
21,735 |
|
|
23,317 |
|
|
27,800 |
|
Service charges on deposit
accounts |
7,406 |
|
|
7,210 |
|
|
6,297 |
|
Gains (losses) on
available-for-sale securities, net |
1,325 |
|
|
(79 |
) |
|
524 |
|
Fees from covered call options |
1,712 |
|
|
3,629 |
|
|
4,360 |
|
Trading (losses) gains, net |
(168 |
) |
|
205 |
|
|
(477 |
) |
Operating lease income, net |
2,806 |
|
|
1,973 |
|
|
65 |
|
Other |
15,616 |
|
|
10,201 |
|
|
7,872 |
|
Total non-interest income |
68,752 |
|
|
65,090 |
|
|
64,541 |
|
Non-interest
expense |
|
|
|
|
|
Salaries and employee benefits |
95,811 |
|
|
99,780 |
|
|
90,130 |
|
Equipment |
8,767 |
|
|
8,799 |
|
|
7,779 |
|
Operating lease equipment
depreciation |
2,050 |
|
|
1,202 |
|
|
57 |
|
Occupancy, net |
11,948 |
|
|
13,062 |
|
|
12,351 |
|
Data processing |
6,519 |
|
|
7,284 |
|
|
5,448 |
|
Advertising and marketing |
3,779 |
|
|
5,373 |
|
|
3,907 |
|
Professional fees |
4,059 |
|
|
4,387 |
|
|
4,664 |
|
Amortization of other intangible
assets |
1,298 |
|
|
1,324 |
|
|
1,013 |
|
FDIC insurance |
3,613 |
|
|
3,317 |
|
|
2,987 |
|
OREO expense, net |
560 |
|
|
2,598 |
|
|
1,411 |
|
Other |
15,326 |
|
|
19,703 |
|
|
17,571 |
|
Total non-interest expense |
153,730 |
|
|
166,829 |
|
|
147,318 |
|
Income before taxes |
78,497 |
|
|
56,408 |
|
|
63,035 |
|
Income tax expense |
29,386 |
|
|
20,896 |
|
|
23,983 |
|
Net
income |
$ |
49,111 |
|
|
$ |
35,512 |
|
|
$ |
39,052 |
|
Preferred stock dividends
and discount accretion |
3,628 |
|
|
3,629 |
|
|
1,581 |
|
Net income
applicable to common shares |
$ |
45,483 |
|
|
$ |
31,883 |
|
|
$ |
37,471 |
|
Net income per
common share - Basic |
$ |
0.94 |
|
|
$ |
0.66 |
|
|
$ |
0.79 |
|
Net income per
common share - Diluted |
$ |
0.90 |
|
|
$ |
0.64 |
|
|
$ |
0.76 |
|
Cash dividends
declared per common share |
$ |
0.12 |
|
|
$ |
0.11 |
|
|
$ |
0.11 |
|
Weighted average common
shares outstanding |
48,448 |
|
|
48,371 |
|
|
47,239 |
|
Dilutive potential common
shares |
3,820 |
|
|
4,005 |
|
|
4,233 |
|
Average common shares and
dilutive common shares |
52,268 |
|
|
52,376 |
|
|
51,472 |
|
|
|
|
|
|
|
|
|
|
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. 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.
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 |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars and shares in
thousands) |
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Calculation of Net
Interest Margin and Efficiency Ratio |
|
|
|
|
|
|
|
|
|
(A) Interest
Income (GAAP) |
$ |
192,231 |
|
|
$ |
187,487 |
|
|
$ |
185,379 |
|
|
$ |
175,241 |
|
|
$ |
170,357 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
- Loans |
509 |
|
|
430 |
|
|
346 |
|
|
328 |
|
|
327 |
|
- Liquidity Management
Assets |
920 |
|
|
866 |
|
|
841 |
|
|
787 |
|
|
727 |
|
- Other Earning Assets |
6 |
|
|
13 |
|
|
10 |
|
|
27 |
|
|
7 |
|
Interest Income - FTE |
$ |
193,666 |
|
|
$ |
188,796 |
|
|
$ |
186,576 |
|
|
$ |
176,383 |
|
|
$ |
171,418 |
|
(B) Interest
Expense (GAAP) |
20,722 |
|
|
20,281 |
|
|
19,839 |
|
|
18,349 |
|
|
18,466 |
|
Net interest income - FTE |
$ |
172,944 |
|
|
$ |
168,515 |
|
|
$ |
166,737 |
|
|
$ |
158,034 |
|
|
$ |
152,952 |
|
(C) Net Interest
Income (GAAP) (A minus B) |
$ |
171,509 |
|
|
$ |
167,206 |
|
|
$ |
165,540 |
|
|
$ |
156,892 |
|
|
$ |
151,891 |
|
(D) Net interest
margin (GAAP-derived) |
3.29 |
% |
|
3.26 |
% |
|
3.31 |
% |
|
3.39 |
% |
|
3.40 |
% |
Net interest margin - FTE |
3.32 |
% |
|
3.29 |
% |
|
3.33 |
% |
|
3.41 |
% |
|
3.42 |
% |
(E) Efficiency
ratio (GAAP-derived) |
64.34 |
% |
|
71.79 |
% |
|
69.38 |
% |
|
65.96 |
% |
|
68.23 |
% |
Efficiency ratio - FTE |
63.96 |
% |
|
71.39 |
% |
|
69.02 |
% |
|
65.64 |
% |
|
67.90 |
% |
(F) Net Overhead
Ratio (GAAP-derived) |
1.49 |
% |
|
1.82 |
% |
|
1.74 |
% |
|
1.53 |
% |
|
1.69 |
% |
Calculation of Tangible Common Equity
ratio (at period end) |
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
2,418,442 |
|
|
$ |
2,352,274 |
|
|
$ |
2,335,736 |
|
|
$ |
2,264,982 |
|
|
$ |
2,131,074 |
|
(G) Less: Convertible
preferred stock |
(126,257 |
) |
|
(126,287 |
) |
|
(126,312 |
) |
|
(126,312 |
) |
|
(126,427 |
) |
Less:
Non-convertible preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
— |
|
Less: Intangible
assets |
(508,005 |
) |
|
(495,970 |
) |
|
(497,699 |
) |
|
(439,570 |
) |
|
(439,055 |
) |
(H) Total tangible common
shareholders’ equity |
$ |
1,659,180 |
|
|
$ |
1,605,017 |
|
|
$ |
1,586,725 |
|
|
$ |
1,574,100 |
|
|
$ |
1,565,592 |
|
Total assets |
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
|
$ |
22,035,216 |
|
|
$ |
20,790,202 |
|
|
$ |
20,371,566 |
|
Less: Intangible
assets |
(508,005 |
) |
|
(495,970 |
) |
|
(497,699 |
) |
|
(439,570 |
) |
|
(439,055 |
) |
(I) Total tangible
assets |
$ |
22,980,163 |
|
|
$ |
22,413,378 |
|
|
$ |
21,537,517 |
|
|
$ |
20,350,632 |
|
|
$ |
19,932,511 |
|
Tangible common
equity ratio (H/I) |
7.2 |
% |
|
7.2 |
% |
|
7.4 |
% |
|
7.7 |
% |
|
7.9 |
% |
Tangible common
equity ratio, assuming full conversion of convertible preferred
stock ((H-G)/I) |
7.8 |
% |
|
7.7 |
% |
|
8.0 |
% |
|
8.4 |
% |
|
8.5 |
% |
Calculation of
book value per share |
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
2,418,442 |
|
|
$ |
2,352,274 |
|
|
$ |
2,335,736 |
|
|
$ |
2,264,982 |
|
|
$ |
2,131,074 |
|
Less: Preferred stock |
(251,257 |
) |
|
(251,287 |
) |
|
(251,312 |
) |
|
(251,312 |
) |
|
(126,427 |
) |
(J) Total common
equity |
$ |
2,167,185 |
|
|
$ |
2,100,987 |
|
|
$ |
2,084,424 |
|
|
$ |
2,013,670 |
|
|
$ |
2,004,647 |
|
(K) Actual common shares
outstanding |
48,519 |
|
|
48,383 |
|
|
48,337 |
|
|
47,677 |
|
|
47,390 |
|
Book value per
common share (J/K) |
$ |
44.67 |
|
|
$ |
43.42 |
|
|
$ |
43.12 |
|
|
$ |
42.24 |
|
|
$ |
42.30 |
|
Tangible common
book value per share (H/K) |
$ |
34.20 |
|
|
$ |
33.17 |
|
|
$ |
32.83 |
|
|
$ |
33.02 |
|
|
$ |
33.04 |
|
|
|
|
|
|
|
|
|
|
|
Calculation of return on average common
equity |
|
|
|
|
|
|
|
|
|
(L) Net income
applicable to common shares |
45,483 |
|
|
31,883 |
|
|
34,276 |
|
|
42,251 |
|
|
37,471 |
|
Add: After-tax
intangible asset amortization |
812 |
|
|
834 |
|
|
833 |
|
|
597 |
|
|
615 |
|
(M) Tangible
net income applicable to common shares |
46,295 |
|
|
32,717 |
|
|
35,109 |
|
|
42,848 |
|
|
38,086 |
|
Total average
shareholders' equity |
2,389,770 |
|
|
2,347,545 |
|
|
2,310,511 |
|
|
2,156,128 |
|
|
2,114,356 |
|
Less: Average
preferred stock |
(251,262 |
) |
|
(251,293 |
) |
|
(251,312 |
) |
|
(134,586 |
) |
|
(126,445 |
) |
(N) Total
average common shareholders' equity |
2,138,508 |
|
|
2,096,252 |
|
|
2,059,199 |
|
|
2,021,542 |
|
|
1,987,911 |
|
Less: Average
intangible assets |
(495,594 |
) |
|
(497,199 |
) |
|
(490,583 |
) |
|
(439,455 |
) |
|
(436,456 |
) |
(O) Total
average tangible common shareholders’ equity |
1,642,914 |
|
|
1,599,053 |
|
|
1,568,616 |
|
|
1,582,087 |
|
|
1,551,455 |
|
Return
on average common equity, annualized (L/N) |
8.55 |
% |
|
6.03 |
% |
|
6.60 |
% |
|
8.38 |
% |
|
7.64 |
% |
Return
on average tangible common equity, annualized (M/O) |
11.33 |
% |
|
8.12 |
% |
|
8.88 |
% |
|
10.86 |
% |
|
9.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOANS
Loan Portfolio Mix and Growth Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Growth |
(Dollars in thousands) |
|
March 31,
2016 |
|
December 31,
2015 |
|
March 31,
2015 |
|
From (1)
December 31,
2015 |
|
From
March 31,
2015 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
4,890,246 |
|
|
$ |
4,713,909 |
|
|
$ |
4,211,932 |
|
|
15 |
% |
|
16 |
% |
Commercial real estate |
|
5,737,959 |
|
|
5,529,289 |
|
|
4,710,486 |
|
|
15 |
|
|
22 |
|
Home equity |
|
774,342 |
|
|
784,675 |
|
|
709,283 |
|
|
(5 |
) |
|
9 |
|
Residential real estate |
|
626,043 |
|
|
607,451 |
|
|
495,925 |
|
|
12 |
|
|
26 |
|
Premium finance receivables -
commercial |
|
2,320,987 |
|
|
2,374,921 |
|
|
2,319,623 |
|
|
(9 |
) |
|
— |
|
Premium finance receivables - life
insurance |
|
2,976,934 |
|
|
2,961,496 |
|
|
2,375,654 |
|
|
2 |
|
|
25 |
|
Consumer and other |
|
119,902 |
|
|
146,376 |
|
|
130,156 |
|
|
(73 |
) |
|
(8 |
) |
Total loans, net of unearned
income, excluding covered loans |
|
$ |
17,446,413 |
|
|
$ |
17,118,117 |
|
|
$ |
14,953,059 |
|
|
8 |
% |
|
17 |
% |
Covered loans |
|
138,848 |
|
|
148,673 |
|
|
209,694 |
|
|
(27 |
) |
|
(34 |
) |
Total loans, net of unearned
income |
|
$ |
17,585,261 |
|
|
$ |
17,266,790 |
|
|
$ |
15,162,753 |
|
|
7 |
% |
|
16 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
28 |
% |
|
27 |
% |
|
28 |
% |
|
|
|
|
Commercial real estate |
|
32 |
|
|
32 |
|
|
31 |
|
|
|
|
|
Home equity |
|
4 |
|
|
5 |
|
|
5 |
|
|
|
|
|
Residential real estate |
|
4 |
|
|
3 |
|
|
3 |
|
|
|
|
|
Premium finance receivables -
commercial |
|
13 |
|
|
14 |
|
|
15 |
|
|
|
|
|
Premium finance receivables - life
insurance |
|
17 |
|
|
17 |
|
|
16 |
|
|
|
|
|
Consumer and other |
|
1 |
|
|
1 |
|
|
1 |
|
|
|
|
|
Total loans, net of unearned
income, excluding covered loans |
|
99 |
% |
|
99 |
% |
|
99 |
% |
|
|
|
|
Covered loans |
|
1 |
|
|
1 |
|
|
1 |
|
|
|
|
|
Total loans, net of unearned
income |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized
|
|
|
|
|
|
|
|
|
|
|
As of March 31,
2016 |
|
|
|
% of
Total
Balance |
|
Nonaccrual |
|
> 90 Days
Past Due
and Still
Accruing |
|
Allowance
For Loan
Losses
Allocation |
|
|
|
|
(Dollars in thousands) |
|
Balance |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
Commercial, industrial and
other |
|
$ |
3,404,555 |
|
|
32.0 |
% |
|
$ |
12,370 |
|
|
$ |
338 |
|
|
$ |
26,932 |
|
Franchise |
|
274,558 |
|
|
2.6 |
|
|
— |
|
|
— |
|
|
3,213 |
|
Mortgage warehouse lines of
credit |
|
193,735 |
|
|
1.8 |
|
|
— |
|
|
— |
|
|
1,411 |
|
Asset-based lending |
|
747,901 |
|
|
7.0 |
|
|
3 |
|
|
— |
|
|
5,963 |
|
Leases |
|
249,418 |
|
|
2.3 |
|
|
— |
|
|
— |
|
|
248 |
|
PCI - commercial loans
(1) |
|
20,079 |
|
|
0.2 |
|
|
— |
|
|
1,893 |
|
|
668 |
|
Total
commercial |
|
$ |
4,890,246 |
|
|
45.9 |
% |
|
$ |
12,373 |
|
|
$ |
2,231 |
|
|
$ |
38,435 |
|
Commercial Real
Estate: |
|
|
|
|
|
|
|
|
|
|
Construction |
|
$ |
391,322 |
|
|
3.7 |
% |
|
$ |
273 |
|
|
$ |
— |
|
|
$ |
4,236 |
|
Land |
|
95,580 |
|
|
0.9 |
|
|
1,746 |
|
|
— |
|
|
3,233 |
|
Office |
|
888,494 |
|
|
8.4 |
|
|
7,729 |
|
|
1,260 |
|
|
5,824 |
|
Industrial |
|
742,956 |
|
|
7.0 |
|
|
10,960 |
|
|
— |
|
|
6,440 |
|
Retail |
|
897,467 |
|
|
8.4 |
|
|
1,633 |
|
|
— |
|
|
5,829 |
|
Multi-family |
|
763,073 |
|
|
7.2 |
|
|
287 |
|
|
— |
|
|
7,581 |
|
Mixed use and other |
|
1,795,717 |
|
|
17.0 |
|
|
4,368 |
|
|
— |
|
|
12,116 |
|
PCI - commercial real estate
(1) |
|
163,350 |
|
|
1.5 |
|
|
— |
|
|
24,738 |
|
|
4 |
|
Total commercial real
estate |
|
$ |
5,737,959 |
|
|
54.1 |
% |
|
$ |
26,996 |
|
|
$ |
25,998 |
|
|
$ |
45,263 |
|
Total commercial and
commercial real estate |
|
$ |
10,628,205 |
|
|
100.0 |
% |
|
$ |
39,369 |
|
|
$ |
28,229 |
|
|
$ |
83,698 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate -
collateral location by state: |
|
|
|
|
|
|
|
|
|
|
Illinois |
|
$ |
4,533,361 |
|
|
79.0 |
% |
|
|
|
|
|
|
Wisconsin |
|
585,809 |
|
|
10.2 |
|
|
|
|
|
|
|
Total primary
markets |
|
$ |
5,119,170 |
|
|
89.2 |
% |
|
|
|
|
|
|
Florida |
|
52,649 |
|
|
0.9 |
|
|
|
|
|
|
|
California |
|
59,877 |
|
|
1.0 |
|
|
|
|
|
|
|
Arizona |
|
39,705 |
|
|
0.7 |
|
|
|
|
|
|
|
Indiana |
|
131,762 |
|
|
2.3 |
|
|
|
|
|
|
|
Other (no individual state greater
than 0.6%) |
|
334,796 |
|
|
5.9 |
|
|
|
|
|
|
|
Total |
|
$ |
5,737,959 |
|
|
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) |
|
March 31,
2016 |
|
December 31,
2015 |
|
March 31,
2015 |
|
From (1)
December 31,
2015 |
|
From
March 31,
2015 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,205,410 |
|
|
$ |
4,836,420 |
|
|
$ |
3,779,609 |
|
|
31 |
% |
|
38 |
% |
NOW and interest bearing demand
deposits |
|
2,369,474 |
|
|
2,390,217 |
|
|
2,262,928 |
|
|
(3 |
) |
|
5 |
|
Wealth management deposits
(2) |
|
1,761,710 |
|
|
1,643,653 |
|
|
1,528,963 |
|
|
29 |
|
|
15 |
|
Money market |
|
4,157,083 |
|
|
4,041,300 |
|
|
3,791,762 |
|
|
12 |
|
|
10 |
|
Savings |
|
1,766,552 |
|
|
1,723,367 |
|
|
1,563,752 |
|
|
10 |
|
|
13 |
|
Time certificates of deposit |
|
3,956,842 |
|
|
4,004,677 |
|
|
4,011,755 |
|
|
(5 |
) |
|
(1 |
) |
Total deposits |
|
$ |
19,217,071 |
|
|
$ |
18,639,634 |
|
|
$ |
16,938,769 |
|
|
12 |
% |
|
13 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
27 |
% |
|
26 |
% |
|
22 |
% |
|
|
|
|
NOW and interest bearing demand
deposits |
|
12 |
|
|
13 |
|
|
13 |
|
|
|
|
|
Wealth management deposits
(2) |
|
9 |
|
|
9 |
|
|
9 |
|
|
|
|
|
Money market |
|
22 |
|
|
22 |
|
|
23 |
|
|
|
|
|
Savings |
|
9 |
|
|
9 |
|
|
9 |
|
|
|
|
|
Time certificates of deposit |
|
21 |
|
|
21 |
|
|
24 |
|
|
|
|
|
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 Company and brokerage
customers from unaffiliated companies which have been placed into
deposit accounts of the Banks.
Time Certificates of Deposit
Maturity/Re-pricing Analysis
As of March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
$ |
39,008 |
|
|
$ |
55,793 |
|
|
$ |
149,291 |
|
|
$ |
651,559 |
|
|
$ |
895,651 |
|
|
0.51 |
% |
4-6 months |
|
165,622 |
|
|
43,096 |
|
|
— |
|
|
618,340 |
|
|
827,058 |
|
|
0.75 |
% |
7-9 months |
|
— |
|
|
40,380 |
|
|
— |
|
|
555,172 |
|
|
595,552 |
|
|
0.78 |
% |
10-12 months |
|
— |
|
|
21,783 |
|
|
— |
|
|
516,014 |
|
|
537,797 |
|
|
0.79 |
% |
13-18 months |
|
43,836 |
|
|
10,977 |
|
|
— |
|
|
565,103 |
|
|
619,916 |
|
|
0.95 |
% |
19-24 months |
|
2,743 |
|
|
6,161 |
|
|
— |
|
|
171,296 |
|
|
180,200 |
|
|
0.92 |
% |
24+ months |
|
3,197 |
|
|
14,895 |
|
|
— |
|
|
282,576 |
|
|
300,668 |
|
|
1.27 |
% |
Total |
|
$ |
254,406 |
|
|
$ |
193,085 |
|
|
$ |
149,291 |
|
|
$ |
3,360,060 |
|
|
$ |
3,956,842 |
|
|
0.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This category of certificates of deposit is shown by
contractual maturity date.
(2) This category includes variable rate certificates of
deposit and savings certificates with the majority repricing on at
least a monthly basis.
(3) Weighted-average rate excludes the impact of purchase
accounting fair value adjustments.
NET INTEREST INCOME
The following table presents a summary of
Wintrust’s average balances, net interest income and related net
interest margins, calculated on a fully tax-equivalent basis, for
the first quarter of 2016 compared to the fourth quarter of 2015
(sequential quarters) and first quarter of 2015 (linked quarters),
respectively:
|
|
|
|
|
|
|
Average Balance
for three months ended, |
|
Interest
for three months ended, |
|
Yield/Rate
for three months ended, |
(Dollars in thousands) |
March 31,
2016 |
|
December 31,
2015 |
|
March 31,
2015 |
|
March 31,
2016 |
|
December 31,
2015 |
|
March 31,
2015 |
|
March 31,
2016 |
|
December 31,
2015 |
|
March 31,
2015 |
Liquidity management
assets(1)(2)(7) |
$ |
3,300,138 |
|
|
$ |
3,245,393 |
|
|
$ |
2,868,906 |
|
|
$ |
19,794 |
|
|
$ |
18,621 |
|
|
$ |
16,214 |
|
|
2.41 |
% |
|
2.28 |
% |
|
2.29 |
% |
Other earning
assets(2)(3)(7) |
28,731 |
|
|
29,792 |
|
|
27,717 |
|
|
236 |
|
|
244 |
|
|
201 |
|
|
3.31 |
|
|
3.26 |
|
|
2.94 |
|
Loans, net of unearned
income(2)(4)(7) |
17,508,593 |
|
|
16,889,922 |
|
|
15,031,917 |
|
|
171,625 |
|
|
168,060 |
|
|
151,316 |
|
|
3.94 |
|
|
3.95 |
|
|
4.08 |
|
Covered loans |
141,351 |
|
|
154,846 |
|
|
214,211 |
|
|
2,011 |
|
|
1,871 |
|
|
3,687 |
|
|
5.72 |
|
|
4.79 |
|
|
6.98 |
|
Total earning
assets(7) |
$ |
20,978,813 |
|
|
$ |
20,319,953 |
|
|
$ |
18,142,751 |
|
|
$ |
193,666 |
|
|
$ |
188,796 |
|
|
$ |
171,418 |
|
|
3.71 |
% |
|
3.69 |
% |
|
3.83 |
% |
Allowance for loan and
covered loan losses |
(112,028 |
) |
|
(109,448 |
) |
|
(96,918 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
259,343 |
|
|
260,593 |
|
|
249,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
1,776,785 |
|
|
1,754,014 |
|
|
1,519,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
22,902,913 |
|
|
$ |
22,225,112 |
|
|
$ |
19,814,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
$ |
13,717,333 |
|
|
$ |
13,606,046 |
|
|
$ |
12,863,507 |
|
|
$ |
12,781 |
|
|
$ |
12,617 |
|
|
$ |
11,814 |
|
|
0.37 |
% |
|
0.37 |
% |
|
0.37 |
% |
Federal Home Loan Bank
advances |
825,104 |
|
|
441,669 |
|
|
347,456 |
|
|
2,886 |
|
|
2,684 |
|
|
2,156 |
|
|
1.41 |
|
|
2.41 |
|
|
2.52 |
|
Other borrowings |
257,384 |
|
|
269,738 |
|
|
194,663 |
|
|
1,058 |
|
|
1,007 |
|
|
788 |
|
|
1.65 |
|
|
1.48 |
|
|
1.64 |
|
Subordinated notes |
138,870 |
|
|
138,852 |
|
|
138,773 |
|
|
1,777 |
|
|
1,777 |
|
|
1,775 |
|
|
5.12 |
|
|
5.12 |
|
|
5.12 |
|
Junior subordinated
debentures |
257,687 |
|
|
268,566 |
|
|
249,493 |
|
|
2,220 |
|
|
2,196 |
|
|
1,933 |
|
|
3.41 |
|
|
3.20 |
|
|
3.10 |
|
Total interest-bearing
liabilities |
$ |
15,196,378 |
|
|
$ |
14,724,871 |
|
|
$ |
13,793,892 |
|
|
$ |
20,722 |
|
|
$ |
20,281 |
|
|
$ |
18,466 |
|
|
0.55 |
% |
|
0.55 |
% |
|
0.54 |
% |
Non-interest bearing
deposits |
4,939,746 |
|
|
4,776,977 |
|
|
3,584,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
377,019 |
|
|
375,719 |
|
|
321,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
2,389,770 |
|
|
2,347,545 |
|
|
2,114,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’
equity |
$ |
22,902,913 |
|
|
$ |
22,225,112 |
|
|
$ |
19,814,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread(5)(7) |
|
|
|
|
|
|
|
|
|
|
|
|
3.16 |
% |
|
3.14 |
% |
|
3.29 |
% |
Net free
funds/contribution(6) |
$ |
5,782,435 |
|
|
$ |
5,595,082 |
|
|
$ |
4,348,859 |
|
|
|
|
|
|
|
|
0.16 |
% |
|
0.15 |
% |
|
0.13 |
% |
Net interest income/
margin(7) |
|
|
|
|
|
|
$ |
172,944 |
|
|
$ |
168,515 |
|
|
$ |
152,952 |
|
|
3.32 |
% |
|
3.29 |
% |
|
3.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Liquidity management assets include available-for-sale
and held-to-maturity 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
March 31, 2016, December 31, 2015 and March 31, 2015 were
$1.4 million, $1.3 million and $1.1 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 March 31,
2016, December 31, 2015 and March 31, 2015 is as
follows:
|
|
|
|
|
|
Static Shock Scenario |
|
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
March 31,
2016 |
|
16.4 |
% |
|
8.9 |
% |
|
(8.7 |
)% |
December 31, 2015 |
|
16.1 |
% |
|
8.7 |
% |
|
(10.6 |
)% |
March 31, 2015 |
|
16.7 |
% |
|
8.4 |
% |
|
(9.3 |
)% |
Ramp Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
March 31,
2016 |
7.5 |
% |
|
3.7 |
% |
|
(3.7 |
)% |
December 31, 2015 |
7.3 |
% |
|
3.9 |
% |
|
(4.4 |
)% |
March 31, 2015 |
6.8 |
% |
|
3.0 |
% |
|
(3.7 |
)% |
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 |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
Q1 2016 compared to
Q4 2015 |
|
Q1 2016 compared to
Q1 2015 |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2015 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
|
$ |
6,057 |
|
|
$ |
6,850 |
|
|
$ |
6,852 |
|
|
$ |
(793 |
) |
|
(12 |
)% |
|
$ |
(795 |
) |
|
(12 |
)% |
Trust and asset
management |
|
12,263 |
|
|
11,784 |
|
|
11,248 |
|
|
479 |
|
|
4 |
|
|
1,015 |
|
|
9 |
|
Total wealth management |
|
18,320 |
|
|
18,634 |
|
|
18,100 |
|
|
(314 |
) |
|
(2 |
) |
|
220 |
|
|
1 |
|
Mortgage banking |
|
21,735 |
|
|
23,317 |
|
|
27,800 |
|
|
(1,582 |
) |
|
(7 |
) |
|
(6,065 |
) |
|
(22 |
) |
Service charges on deposit
accounts |
|
7,406 |
|
|
7,210 |
|
|
6,297 |
|
|
196 |
|
|
3 |
|
|
1,109 |
|
|
18 |
|
Gains (losses) on
available-for-sale securities, net |
|
1,325 |
|
|
(79 |
) |
|
524 |
|
|
1,404 |
|
|
NM |
|
|
801 |
|
|
NM |
|
Fees from covered call
options |
|
1,712 |
|
|
3,629 |
|
|
4,360 |
|
|
(1,917 |
) |
|
(53 |
) |
|
(2,648 |
) |
|
(61 |
) |
Trading (losses) gains,
net |
|
(168 |
) |
|
205 |
|
|
(477 |
) |
|
(373 |
) |
|
NM |
|
|
309 |
|
|
NM |
|
Operating lease income,
net |
|
2,806 |
|
|
1,973 |
|
|
65 |
|
|
833 |
|
|
42 |
|
|
2,741 |
|
|
NM |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
4,438 |
|
|
2,343 |
|
|
2,191 |
|
|
2,095 |
|
|
89 |
|
|
2,247 |
|
|
NM |
|
BOLI |
|
472 |
|
|
1,463 |
|
|
766 |
|
|
(991 |
) |
|
(68 |
) |
|
(294 |
) |
|
(38 |
) |
Administrative services |
|
1,069 |
|
|
1,101 |
|
|
1,026 |
|
|
(32 |
) |
|
(3 |
) |
|
43 |
|
|
4 |
|
Gain on extinguishment of debt |
|
4,305 |
|
|
— |
|
|
— |
|
|
4,305 |
|
|
NM |
|
|
4,305 |
|
|
NM |
|
Miscellaneous |
|
5,332 |
|
|
5,294 |
|
|
3,889 |
|
|
38 |
|
|
1 |
|
|
1,443 |
|
|
37 |
|
Total Other |
|
15,616 |
|
|
10,201 |
|
|
7,872 |
|
|
5,415 |
|
|
53 |
|
|
7,744 |
|
|
98 |
|
Total Non-Interest
Income |
|
$ |
68,752 |
|
|
$ |
65,090 |
|
|
$ |
64,541 |
|
|
$ |
3,662 |
|
|
6 |
% |
|
$ |
4,211 |
|
|
7 |
% |
NM - Not Meaningful
Notable contributions to the change in
non-interest income are as follows:
The decrease in wealth management revenue during
the current period as compared to the fourth quarter of 2015 is
primarily attributable to volatile market conditions and lower
customer activity in the current quarter. The increase during
the current period as compared to the first quarter of 2015 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.
The decrease in mortgage banking revenue in the
current quarter as compared to the prior quarters resulted
primarily from lower origination volumes in the current quarter.
Mortgage loans originated or purchased for sale were $736.6 million
in the current quarter as compared to $808.9 million in the fourth
quarter of 2015 and $941.7 million in the first quarter of 2015.
Mortgage banking revenue includes revenue from activities related
to originating, selling and servicing residential real estate loans
for the secondary market.
The increase in service charges on deposit
accounts 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 as well as
additional service charges on deposit accounts from acquired
institutions.
The increase in net gains on available-for-sale
securities in the current quarter primarily relate to the sale of
mortgage-backed securities that were held in the Company's
available-for-sale securities portfolio.
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 fourth and
first quarters 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 March 31, 2016, December 31,
2015 and March 31, 2015.
The increase in operating lease income in the
current quarter compared to the prior period quarters is primarily
related to growth in business from the Company's leasing
divisions.
The increase in other non-interest income in the
current quarter as compared to the prior quarters is primarily due
to the gain on the extinguishment of junior subordinated
debentures, higher 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 and
higher foreign currency re-measurement gains, partially offset by
net losses on partnership investments and lower income on
bank-owned life insurance.
NON-INTEREST EXPENSE
The following table presents non-interest expense by category
for the periods present:
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
Q1 2016 compared to
Q4 2015 |
|
Q1 2016 compared to
Q1 2015 |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2015 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
50,282 |
|
|
$ |
50,982 |
|
|
$ |
46,848 |
|
|
$ |
(700 |
) |
|
(1 |
)% |
|
$ |
3,434 |
|
|
7 |
% |
Commissions and incentive
compensation |
|
26,375 |
|
|
31,222 |
|
|
25,494 |
|
|
(4,847 |
) |
|
(16 |
) |
|
881 |
|
|
3 |
|
Benefits |
|
19,154 |
|
|
17,576 |
|
|
17,788 |
|
|
1,578 |
|
|
9 |
|
|
1,366 |
|
|
8 |
|
Total salaries and employee
benefits |
|
95,811 |
|
|
99,780 |
|
|
90,130 |
|
|
(3,969 |
) |
|
(4 |
) |
|
5,681 |
|
|
6 |
|
Equipment |
|
8,767 |
|
|
8,799 |
|
|
7,779 |
|
|
(32 |
) |
|
— |
|
|
988 |
|
|
13 |
|
Operating lease equipment
depreciation |
|
2,050 |
|
|
1,202 |
|
|
57 |
|
|
848 |
|
|
71 |
|
|
1,993 |
|
|
NM |
|
Occupancy, net |
|
11,948 |
|
|
13,062 |
|
|
12,351 |
|
|
(1,114 |
) |
|
(9 |
) |
|
(403 |
) |
|
(3 |
) |
Data processing |
|
6,519 |
|
|
7,284 |
|
|
5,448 |
|
|
(765 |
) |
|
(11 |
) |
|
1,071 |
|
|
20 |
|
Advertising and
marketing |
|
3,779 |
|
|
5,373 |
|
|
3,907 |
|
|
(1,594 |
) |
|
(30 |
) |
|
(128 |
) |
|
(3 |
) |
Professional fees |
|
4,059 |
|
|
4,387 |
|
|
4,664 |
|
|
(328 |
) |
|
(7 |
) |
|
(605 |
) |
|
(13 |
) |
Amortization of other
intangible assets |
|
1,298 |
|
|
1,324 |
|
|
1,013 |
|
|
(26 |
) |
|
(2 |
) |
|
285 |
|
|
28 |
|
FDIC insurance |
|
3,613 |
|
|
3,317 |
|
|
2,987 |
|
|
296 |
|
|
9 |
|
|
626 |
|
|
21 |
|
OREO expense, net |
|
560 |
|
|
2,598 |
|
|
1,411 |
|
|
(2,038 |
) |
|
(78 |
) |
|
(851 |
) |
|
(60 |
) |
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party
brokers |
|
1,310 |
|
|
1,321 |
|
|
1,386 |
|
|
(11 |
) |
|
(1 |
) |
|
(76 |
) |
|
(5 |
) |
Postage |
|
1,302 |
|
|
1,892 |
|
|
1,633 |
|
|
(590 |
) |
|
(31 |
) |
|
(331 |
) |
|
(20 |
) |
Miscellaneous |
|
12,714 |
|
|
16,490 |
|
|
14,552 |
|
|
(3,776 |
) |
|
(23 |
) |
|
(1,838 |
) |
|
(13 |
) |
Total other |
|
15,326 |
|
|
19,703 |
|
|
17,571 |
|
|
(4,377 |
) |
|
(22 |
) |
|
(2,245 |
) |
|
(13 |
) |
Total Non-Interest
Expense |
|
$ |
153,730 |
|
|
$ |
166,829 |
|
|
$ |
147,318 |
|
|
$ |
(13,099 |
) |
|
(8 |
)% |
|
$ |
6,412 |
|
|
4 |
% |
Notable contributions to the change in non-interest expense are as
follows:
Salaries and employee benefits expense decreased
in the current quarter compared to the fourth quarter of 2015
primarily as a result of lower commissions and incentive
compensation on variable pay based arrangements and lower
acquisition-related expenses and severance charges, partially
offset by an increase in employee benefits (primarily a $3.7
million increase related to payroll taxes). Salaries and
employee benefits expense increased in the current quarter compared
to the first quarter of 2015 primarily as a result of the addition
of employees from acquisitions, increased staffing as the Company
grows and an increase in employee benefits (primarily health plan
and payroll taxes related).
Operating lease equipment depreciation increased
in the current quarter compared to the prior periods as a result of
growth in business from the Company's leasing divisions.
The decrease in occupancy expenses in the
current quarter compared to the fourth quarter of 2015 is primarily
as result of acquisition-related charges incurred in the fourth
quarter of 2015 to exit certain banking locations. There were
no acquisition-related charges incurred in the current
quarter. The decrease in occupancy expenses in the current
quarter compared to the first quarter of 2015 is primarily related
to higher rental income for leased premises in the current
quarter. Occupancy expense includes depreciation on premises,
real estate taxes, utilities and maintenance of premises, as well
as net rent expense for leased premises.
Excluding the effect of acquisition-related
charges, the amount of data processing expenses incurred increased
in the current quarter compared to the prior quarters due to the
overall growth of loan and deposit accounts.
The decrease in advertising and marketing
expenses during the current quarter compared to the fourth quarter
of 2015 is primarily related to lower expenses for mass market
media promotions and printing costs. 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.
The decrease in OREO expense in the current
quarter compared to the prior quarters is primarily the result of
higher gains recorded on OREO sales, fewer negative valuation
adjustments of OREO properties and lower expenses to maintain OREO
properties. OREO costs include all costs related to
obtaining, maintaining and selling other real estate owned
properties and are shown net of any gains from the sale of such
properties.
The decrease in miscellaneous expenses in the
current quarter as compared to the fourth quarter of 2015 is
primarily a result of lower travel and entertainment expenses, loan
expenses, supplies and donations. The decrease in miscellaneous
expenses in the current quarter as compared to the first quarter of
2015 is primarily a result of lower loan expenses, covered asset
expenses and operating losses. Miscellaneous expense includes
ATM expenses, correspondent bank charges, directors' fees,
telephone, travel and entertainment, corporate insurance, dues and
subscriptions, problem loan expenses, operating losses and lending
origination costs that are not deferred.
ASSET QUALITY
Allowance for Credit Losses,
excluding covered loans
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2015 |
Allowance for loan
losses at beginning of period |
|
$ |
105,400 |
|
|
$ |
102,996 |
|
|
$ |
91,705 |
|
Provision for
credit losses |
|
8,423 |
|
|
9,196 |
|
|
6,185 |
|
Other
adjustments |
|
(78 |
) |
|
(243 |
) |
|
(248 |
) |
Reclassification
(to) from allowance for unfunded lending-related
commitments |
|
(81 |
) |
|
13 |
|
|
(113 |
) |
Charge-offs: |
|
|
|
|
|
|
Commercial |
|
671 |
|
|
1,369 |
|
|
677 |
|
Commercial real estate |
|
671 |
|
|
2,734 |
|
|
1,005 |
|
Home equity |
|
1,052 |
|
|
680 |
|
|
584 |
|
Residential real estate |
|
493 |
|
|
211 |
|
|
631 |
|
Premium finance receivables -
commercial |
|
2,480 |
|
|
2,676 |
|
|
1,263 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
107 |
|
|
179 |
|
|
111 |
|
Total charge-offs |
|
5,474 |
|
|
7,849 |
|
|
4,271 |
|
Recoveries: |
|
|
|
|
|
|
Commercial |
|
629 |
|
|
315 |
|
|
370 |
|
Commercial real estate |
|
369 |
|
|
491 |
|
|
312 |
|
Home equity |
|
48 |
|
|
183 |
|
|
48 |
|
Residential real estate |
|
112 |
|
|
55 |
|
|
76 |
|
Premium finance receivables -
commercial |
|
787 |
|
|
223 |
|
|
329 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
36 |
|
|
20 |
|
|
53 |
|
Total recoveries |
|
1,981 |
|
|
1,287 |
|
|
1,188 |
|
Net
charge-offs |
|
(3,493 |
) |
|
(6,562 |
) |
|
(3,083 |
) |
Allowance for loan losses
at period end |
|
$ |
110,171 |
|
|
$ |
105,400 |
|
|
$ |
94,446 |
|
Allowance for unfunded
lending-related commitments at period end |
|
1,030 |
|
|
949 |
|
|
888 |
|
Allowance for credit losses
at period end |
|
$ |
111,201 |
|
|
$ |
106,349 |
|
|
$ |
95,334 |
|
Annualized net charge-offs
by category as a percentage of its own respective
category’s average: |
|
|
|
|
|
|
Commercial |
|
0.00 |
% |
|
0.09 |
% |
|
0.03 |
% |
Commercial real estate |
|
0.02 |
|
|
0.16 |
|
|
0.06 |
|
Home equity |
|
0.52 |
|
|
0.25 |
|
|
0.30 |
|
Residential real estate |
|
0.17 |
|
|
0.07 |
|
|
0.28 |
|
Premium finance receivables -
commercial |
|
0.29 |
|
|
0.41 |
|
|
0.16 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
0.20 |
|
|
0.37 |
|
|
0.13 |
|
Total loans, net of unearned
income, excluding covered loans |
|
0.08 |
% |
|
0.15 |
% |
|
0.08 |
% |
Net charge-offs as a
percentage of the provision for credit losses |
|
41.47 |
% |
|
71.35 |
% |
|
49.87 |
% |
Loans at period-end,
excluding covered loans |
|
$ |
17,446,413 |
|
|
$ |
17,118,117 |
|
|
$ |
14,953,059 |
|
Allowance for loan losses
as a percentage of loans at period end |
|
0.63 |
% |
|
0.62 |
% |
|
0.63 |
% |
Allowance for credit losses
as a percentage of loans at period end |
|
0.64 |
% |
|
0.62 |
% |
|
0.64 |
% |
|
|
|
|
|
|
|
|
|
|
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).
Net charge-offs as a percentage of loans,
excluding covered loans, for the first quarter of 2016 totaled 8
basis points on an annualized basis compared to 15 basis points on
an annualized basis in the fourth quarter of 2015 and 8 basis
points on an annualized basis in the first quarter of 2015.
Net charge-offs totaled $3.5 million in the first quarter of 2016,
a $3.1 million decrease from $6.6 million in the fourth quarter of
2015 and a $410,000 increase from $3.1 million in the first quarter
of 2015.
The provision for credit losses, excluding the
provision for covered loan losses, totaled $8.4 million for the
first quarter of 2016 compared to $9.2 million for the fourth
quarter of 2015 and $6.2 million for the first quarter of 2015
primarily due to increased reserves on additional non-performing
loans during the period.
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 |
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2015 |
Provision for loan
losses |
|
$ |
8,342 |
|
|
$ |
9,209 |
|
|
$ |
6,072 |
|
Provision for unfunded
lending-related commitments |
|
81 |
|
|
(13 |
) |
|
113 |
|
Provision for covered loan
losses |
|
(389 |
) |
|
(137 |
) |
|
(106 |
) |
Provision for credit
losses |
|
$ |
8,034 |
|
|
$ |
9,059 |
|
|
$ |
6,079 |
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2016 |
|
2015 |
|
2015 |
Allowance for loan
losses |
|
$ |
110,171 |
|
|
$ |
105,400 |
|
|
$ |
94,446 |
|
Allowance for unfunded
lending-related commitments |
|
1,030 |
|
|
949 |
|
|
888 |
|
Allowance for covered loan
losses |
|
2,507 |
|
|
3,026 |
|
|
1,878 |
|
Allowance for credit
losses |
|
$ |
113,708 |
|
|
$ |
109,375 |
|
|
$ |
97,212 |
|
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 March 31, 2016 and
December 31, 2015.
|
|
As of March 31, 2016 |
|
|
Recorded |
|
Calculated |
|
As a percentage
of its own respective |
(Dollars in thousands) |
|
Investment |
|
Allowance |
|
category’s balance |
Commercial:(1) |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
2,918,955 |
|
|
$ |
24,926 |
|
|
0.85 |
% |
Asset-based lending |
|
743,033 |
|
|
5,963 |
|
|
0.80 |
|
Tax exempt |
|
294,741 |
|
|
1,993 |
|
|
0.68 |
|
Leases |
|
249,114 |
|
|
248 |
|
|
0.10 |
|
Commercial real
estate:(1) |
|
|
|
|
|
|
Residential construction |
|
69,161 |
|
|
876 |
|
|
1.27 |
|
Commercial construction |
|
317,969 |
|
|
3,360 |
|
|
1.06 |
|
Land |
|
89,353 |
|
|
3,233 |
|
|
3.62 |
|
Office |
|
823,774 |
|
|
5,824 |
|
|
0.71 |
|
Industrial |
|
691,811 |
|
|
6,436 |
|
|
0.93 |
|
Retail |
|
823,925 |
|
|
5,829 |
|
|
0.71 |
|
Multi-family |
|
713,724 |
|
|
7,573 |
|
|
1.06 |
|
Mixed use and other |
|
1,645,810 |
|
|
12,116 |
|
|
0.74 |
|
Home
equity(1) |
|
680,077 |
|
|
12,899 |
|
|
1.90 |
|
Residential real
estate(1) |
|
567,541 |
|
|
5,097 |
|
|
0.90 |
|
Total core loan
portfolio |
|
$ |
10,628,988 |
|
|
$ |
96,373 |
|
|
0.91 |
% |
Commercial: |
|
|
|
|
|
|
Franchise |
|
$ |
274,558 |
|
|
$ |
3,213 |
|
|
1.17 |
% |
Mortgage warehouse lines of
credit |
|
193,735 |
|
|
1,411 |
|
|
0.73 |
|
Community Advantage - homeowner
associations |
|
130,044 |
|
|
3 |
|
|
0.00 |
|
Aircraft |
|
5,088 |
|
|
9 |
|
|
0.18 |
|
Purchased non-covered commercial
loans (2) |
|
80,978 |
|
|
669 |
|
|
0.83 |
|
Commercial real
estate: |
|
|
|
|
|
|
Purchased non-covered commercial
real estate (2) |
|
562,432 |
|
|
16 |
|
|
0.00 |
|
Purchased non-covered
home equity (2) |
|
94,265 |
|
|
16 |
|
|
0.02 |
|
Purchased non-covered
residential real estate (2) |
|
58,502 |
|
|
67 |
|
|
0.11 |
|
Premium finance
receivables |
|
|
|
|
|
|
U.S. commercial insurance
loans |
|
2,041,307 |
|
|
5,570 |
|
|
0.27 |
|
Canada commercial insurance loans
(2) |
|
279,680 |
|
|
598 |
|
|
0.21 |
|
Life insurance loans
(1) |
|
2,680,796 |
|
|
1,037 |
|
|
0.04 |
|
Purchased life insurance loans
(2) |
|
296,138 |
|
|
— |
|
|
— |
|
Consumer and other
(1) |
|
115,324 |
|
|
1,188 |
|
|
1.03 |
|
Purchased non-covered
consumer and other (2) |
|
4,578 |
|
|
1 |
|
|
0.02 |
|
Total consumer, niche and
purchased loan portfolio |
|
$ |
6,817,425 |
|
|
$ |
13,798 |
|
|
0.20 |
% |
Total loans, net of
unearned income, excluding covered loans |
|
$ |
17,446,413 |
|
|
$ |
110,171 |
|
|
0.63 |
% |
Non-accretable credit
discounts on purchased loans reported in accordance with ASC
310-30, excluding covered loans |
|
|
|
$ |
26,405 |
|
|
|
Total allowance for loan
losses and non-accretable credit discounts on purchased loans,
excluding covered loans |
|
|
|
$ |
136,576 |
|
|
0.78 |
% |
(1) Excludes purchased loans reported in
accordance with ASC 310-20 and ASC 310-30.
(2) Purchased loans represent loans reported
in accordance with ASC 310-20 and ASC 310-30.
|
|
|
As of December 31, 2015 |
|
|
Recorded |
|
Calculated |
|
As a percentage
of its own respective |
(Dollars in thousands) |
|
Investment |
|
Allowance |
|
category’s balance |
Commercial:(1) |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
2,796,584 |
|
|
$ |
23,475 |
|
|
0.84 |
% |
Asset-based lending |
|
740,234 |
|
|
5,859 |
|
|
0.79 |
|
Tax exempt |
|
265,264 |
|
|
1,759 |
|
|
0.66 |
|
Leases |
|
225,805 |
|
|
232 |
|
|
0.10 |
|
Commercial real
estate:(1) |
|
|
|
|
|
|
Residential construction |
|
69,407 |
|
|
895 |
|
|
1.29 |
|
Commercial construction |
|
286,777 |
|
|
3,018 |
|
|
1.05 |
|
Land |
|
72,114 |
|
|
2,467 |
|
|
3.42 |
|
Office |
|
802,274 |
|
|
5,890 |
|
|
0.73 |
|
Industrial |
|
679,538 |
|
|
6,373 |
|
|
0.94 |
|
Retail |
|
794,442 |
|
|
5,597 |
|
|
0.70 |
|
Multi-family |
|
685,217 |
|
|
7,348 |
|
|
1.07 |
|
Mixed use and other |
|
1,581,024 |
|
|
11,809 |
|
|
0.75 |
|
Home
equity(1) |
|
688,160 |
|
|
11,993 |
|
|
1.74 |
|
Residential real
estate(1) |
|
559,532 |
|
|
4,726 |
|
|
0.84 |
|
Total core loan
portfolio |
|
$ |
10,246,372 |
|
|
$ |
91,441 |
|
|
0.89 |
% |
Commercial: |
|
|
|
|
|
|
Franchise |
|
$ |
245,228 |
|
|
$ |
3,086 |
|
|
1.26 |
% |
Mortgage warehouse lines of
credit |
|
222,806 |
|
|
1,628 |
|
|
0.73 |
|
Community Advantage - homeowner
associations |
|
130,986 |
|
|
3 |
|
|
— |
|
Aircraft |
|
5,327 |
|
|
7 |
|
|
0.13 |
|
Purchased non-covered commercial
loans (2) |
|
81,675 |
|
|
86 |
|
|
0.11 |
|
Commercial real
estate: |
|
|
|
|
|
|
Purchased non-covered commercial
real estate (2) |
|
558,496 |
|
|
361 |
|
|
0.06 |
|
Purchased non-covered
home equity (2) |
|
96,515 |
|
|
19 |
|
|
0.02 |
|
Purchased non-covered
residential real estate (2) |
|
47,919 |
|
|
8 |
|
|
0.02 |
|
Premium finance
receivables |
|
|
|
|
|
|
U.S. commercial insurance
loans |
|
2,096,604 |
|
|
5,449 |
|
|
0.26 |
|
Canada commercial insurance loans
(2) |
|
278,317 |
|
|
567 |
|
|
0.20 |
|
Life insurance loans
(1) |
|
2,593,204 |
|
|
1,217 |
|
|
0.05 |
|
Purchased life insurance loans
(2) |
|
368,292 |
|
|
— |
|
|
— |
|
Consumer and other
(1) |
|
141,743 |
|
|
1,527 |
|
|
1.08 |
|
Purchased non-covered
consumer and other (2) |
|
4,633 |
|
|
1 |
|
|
0.02 |
|
Total consumer, niche and
purchased loan portfolio |
|
$ |
6,871,745 |
|
|
$ |
13,959 |
|
|
0.20 |
% |
Total loans, net of
unearned income, excluding covered loans |
|
$ |
17,118,117 |
|
|
$ |
105,400 |
|
|
0.62 |
% |
Non-accretable credit
discounts on purchased loans reported in accordance with ASC
310-30, excluding covered loans |
|
|
|
$ |
29,502 |
|
|
|
Total allowance for loan
losses and non-accretable credit discounts on purchased loans,
excluding covered loans |
|
|
|
$ |
134,902 |
|
|
0.79 |
% |
(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 March 31, 2016 and December 31,
2015.
The increase in the allowance for loan losses to
core loans in the first quarter of 2016 compared to the fourth
quarter of 2015 was attributable to a larger population of core
loans requiring ASC 310 reserves (specific reserves). Loans
requiring ASC 310 reserves typically have higher reserve factors as
compared to core loans requiring ASC 450 reserves (general
reserves). ASC 310 reserves are maintained on impaired
loans.
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 0.78% of the total loan portfolio
as of March 31, 2016 as compared to 0.79% as of December 31, 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 March 31, 2016:
|
|
|
|
90+ days |
|
60-89 |
|
30-59 |
|
|
|
|
As of March 31,
2016 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, industrial and
other |
|
$ |
12,370 |
|
|
$ |
338 |
|
|
$ |
3,228 |
|
|
$ |
25,608 |
|
|
$ |
3,363,011 |
|
|
$ |
3,404,555 |
|
Franchise |
|
— |
|
|
— |
|
|
— |
|
|
1,400 |
|
|
273,158 |
|
|
274,558 |
|
Mortgage warehouse lines of
credit |
|
— |
|
|
— |
|
|
— |
|
|
1,491 |
|
|
192,244 |
|
|
193,735 |
|
Asset-based lending |
|
3 |
|
|
— |
|
|
117 |
|
|
10,597 |
|
|
737,184 |
|
|
747,901 |
|
Leases |
|
— |
|
|
— |
|
|
— |
|
|
5,177 |
|
|
244,241 |
|
|
249,418 |
|
PCI - commercial
(1) |
|
— |
|
|
1,893 |
|
|
— |
|
|
128 |
|
|
18,058 |
|
|
20,079 |
|
Total commercial |
|
12,373 |
|
|
2,231 |
|
|
3,345 |
|
|
44,401 |
|
|
4,827,896 |
|
|
4,890,246 |
|
Commercial real
estate |
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
273 |
|
|
— |
|
|
— |
|
|
2,023 |
|
|
389,026 |
|
|
391,322 |
|
Land |
|
1,746 |
|
|
— |
|
|
— |
|
|
— |
|
|
93,834 |
|
|
95,580 |
|
Office |
|
7,729 |
|
|
1,260 |
|
|
980 |
|
|
12,571 |
|
|
865,954 |
|
|
888,494 |
|
Industrial |
|
10,960 |
|
|
— |
|
|
— |
|
|
3,935 |
|
|
728,061 |
|
|
742,956 |
|
Retail |
|
1,633 |
|
|
— |
|
|
2,397 |
|
|
2,657 |
|
|
890,780 |
|
|
897,467 |
|
Multi-family |
|
287 |
|
|
— |
|
|
655 |
|
|
2,047 |
|
|
760,084 |
|
|
763,073 |
|
Mixed use and other |
|
4,368 |
|
|
— |
|
|
187 |
|
|
12,312 |
|
|
1,778,850 |
|
|
1,795,717 |
|
PCI - commercial real estate
(1) |
|
— |
|
|
24,738 |
|
|
1,573 |
|
|
10,344 |
|
|
126,695 |
|
|
163,350 |
|
Total commercial real estate |
|
26,996 |
|
|
25,998 |
|
|
5,792 |
|
|
45,889 |
|
|
5,633,284 |
|
|
5,737,959 |
|
Home equity |
|
9,365 |
|
|
— |
|
|
791 |
|
|
4,474 |
|
|
759,712 |
|
|
774,342 |
|
Residential real estate,
including PCI |
|
11,964 |
|
|
406 |
|
|
193 |
|
|
10,108 |
|
|
603,372 |
|
|
626,043 |
|
Premium finance
receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
15,350 |
|
|
9,548 |
|
|
5,583 |
|
|
15,086 |
|
|
2,275,420 |
|
|
2,320,987 |
|
Life insurance loans |
|
— |
|
|
1,641 |
|
|
3,432 |
|
|
198 |
|
|
2,675,525 |
|
|
2,680,796 |
|
PCI - life insurance loans
(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
296,138 |
|
|
296,138 |
|
Consumer and other,
including PCI |
|
484 |
|
|
245 |
|
|
118 |
|
|
364 |
|
|
118,691 |
|
|
119,902 |
|
Total loans, net of unearned
income, excluding covered loans |
|
$ |
76,532 |
|
|
$ |
40,069 |
|
|
$ |
19,254 |
|
|
$ |
120,520 |
|
|
$ |
17,190,038 |
|
|
$ |
17,446,413 |
|
Covered loans |
|
5,324 |
|
|
7,995 |
|
|
349 |
|
|
6,491 |
|
|
118,689 |
|
|
138,848 |
|
Total loans, net of unearned
income |
|
$ |
81,856 |
|
|
$ |
48,064 |
|
|
$ |
19,603 |
|
|
$ |
127,011 |
|
|
$ |
17,308,727 |
|
|
$ |
17,585,261 |
|
As of March 31,
2016
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, industrial and
other |
|
0.4 |
% |
|
— |
% |
|
0.1 |
% |
|
0.8 |
% |
|
98.7 |
% |
|
100.0 |
% |
Franchise |
|
— |
|
|
— |
|
|
— |
|
|
0.5 |
|
|
99.5 |
|
|
100.0 |
|
Mortgage warehouse lines of
credit |
|
— |
|
|
— |
|
|
— |
|
|
0.8 |
|
|
99.2 |
|
|
100.0 |
|
Asset-based lending |
|
— |
|
|
— |
|
|
— |
|
|
1.4 |
|
|
98.6 |
|
|
100.0 |
|
Leases |
|
— |
|
|
— |
|
|
— |
|
|
2.1 |
|
|
97.9 |
|
|
100.0 |
|
PCI - commercial(1) |
|
— |
|
|
9.4 |
|
|
— |
|
|
0.6 |
|
|
90.0 |
|
|
100.0 |
|
Total commercial |
|
0.3 |
|
|
— |
|
|
0.1 |
|
|
0.9 |
|
|
98.7 |
|
|
100.0 |
|
Commercial real
estate |
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
0.1 |
|
|
— |
|
|
— |
|
|
0.5 |
|
|
99.4 |
|
|
100.0 |
|
Land |
|
1.8 |
|
|
— |
|
|
— |
|
|
— |
|
|
98.2 |
|
|
100.0 |
|
Office |
|
0.9 |
|
|
0.1 |
|
|
0.1 |
|
|
1.4 |
|
|
97.5 |
|
|
100.0 |
|
Industrial |
|
1.5 |
|
|
— |
|
|
— |
|
|
0.5 |
|
|
98.0 |
|
|
100.0 |
|
Retail |
|
0.2 |
|
|
— |
|
|
0.3 |
|
|
0.3 |
|
|
99.2 |
|
|
100.0 |
|
Multi-family |
|
— |
|
|
— |
|
|
0.1 |
|
|
0.3 |
|
|
99.6 |
|
|
100.0 |
|
Mixed use and other |
|
0.2 |
|
|
— |
|
|
— |
|
|
0.7 |
|
|
99.1 |
|
|
100.0 |
|
PCI - commercial real
estate (1) |
|
— |
|
|
15.1 |
|
|
1.0 |
|
|
6.3 |
|
|
77.6 |
|
|
100.0 |
|
Total commercial real estate |
|
0.5 |
|
|
0.5 |
|
|
0.1 |
|
|
0.8 |
|
|
98.1 |
|
|
100.0 |
|
Home equity |
|
1.2 |
|
|
— |
|
|
0.1 |
|
|
0.6 |
|
|
98.1 |
|
|
100.0 |
|
Residential real estate,
including PCI |
|
1.9 |
|
|
0.1 |
|
|
— |
|
|
1.6 |
|
|
96.4 |
|
|
100.0 |
|
Premium finance
receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
0.7 |
|
|
0.5 |
|
|
0.2 |
|
|
0.6 |
|
|
98.0 |
|
|
100.0 |
|
Life insurance loans |
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
— |
|
|
99.8 |
|
|
100.0 |
|
PCI - life insurance loans
(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Consumer and other,
including PCI |
|
0.4 |
|
|
0.2 |
|
|
0.1 |
|
|
0.3 |
|
|
99.0 |
|
|
100.0 |
|
Total loans, net of unearned
income, excluding covered loans |
|
0.4 |
% |
|
0.2 |
% |
|
0.1 |
% |
|
0.7 |
% |
|
98.6 |
% |
|
100.0 |
% |
Covered loans |
|
3.8 |
|
|
5.8 |
|
|
0.3 |
|
|
4.7 |
|
|
85.4 |
|
|
100.0 |
|
Total loans, net of unearned
income |
|
0.5 |
% |
|
0.3 |
% |
|
0.1 |
% |
|
0.7 |
% |
|
98.4 |
% |
|
100.0 |
% |
(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 March 31, 2016, $19.3 million of all
loans, excluding covered loans, or 0.1%, were 60 to 89 days past
due and $120.5 million, or 0.7%, were 30 to 59 days (or one
payment) past due. As of December 31, 2015, $42.1 million of
all loans, excluding covered loans, or 0.2%, were 60 to 89 days
past due and $104.1 million, or 0.6%, were 30 to 59 days (or one
payment) past due. The majority of the commercial and commercial
real estate loans shown as 60 to 89 days and 30 to 59 days past due
are included on the Company’s internal problem loan reporting
system. Loans on this system are closely monitored by management on
a monthly basis.
The Company’s home equity and residential loan
portfolios continue to exhibit low delinquency ratios. Home equity
loans at March 31, 2016 that are current with regard to the
contractual terms of the loan agreement represent 98.1% of the
total home equity portfolio. Residential real estate loans at
March 31, 2016 that are current with regards to the
contractual terms of the loan agreements comprise 96.4% of total
residential real estate loans outstanding.
The table below shows the aging of the Company’s
loan portfolio at December 31, 2015:
|
|
|
|
90+ days |
|
60-89 |
|
30-59 |
|
|
|
|
As of December
31, 2015 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, industrial and
other |
|
$ |
12,704 |
|
|
$ |
6 |
|
|
$ |
6,749 |
|
|
$ |
12,930 |
|
|
$ |
3,226,139 |
|
|
$ |
3,258,528 |
|
Franchise |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
245,228 |
|
|
245,228 |
|
Mortgage warehouse lines of
credit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
222,806 |
|
|
222,806 |
|
Asset-based lending |
|
8 |
|
|
— |
|
|
3,864 |
|
|
1,844 |
|
|
736,968 |
|
|
742,684 |
|
Leases |
|
— |
|
|
535 |
|
|
748 |
|
|
4,192 |
|
|
220,599 |
|
|
226,074 |
|
PCI - commercial(1) |
|
— |
|
|
892 |
|
|
— |
|
|
2,510 |
|
|
15,187 |
|
|
18,589 |
|
Total commercial |
|
12,712 |
|
|
1,433 |
|
|
11,361 |
|
|
21,476 |
|
|
4,666,927 |
|
|
4,713,909 |
|
Commercial real
estate |
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
306 |
|
|
— |
|
|
1,371 |
|
|
1,645 |
|
|
355,338 |
|
|
358,660 |
|
Land |
|
1,751 |
|
|
— |
|
|
— |
|
|
120 |
|
|
76,546 |
|
|
78,417 |
|
Office |
|
4,619 |
|
|
— |
|
|
764 |
|
|
3,817 |
|
|
853,801 |
|
|
863,001 |
|
Industrial |
|
9,564 |
|
|
— |
|
|
1,868 |
|
|
1,009 |
|
|
715,207 |
|
|
727,648 |
|
Retail |
|
1,760 |
|
|
— |
|
|
442 |
|
|
2,310 |
|
|
863,887 |
|
|
868,399 |
|
Multi-family |
|
1,954 |
|
|
— |
|
|
597 |
|
|
6,568 |
|
|
733,230 |
|
|
742,349 |
|
Mixed use and other |
|
6,691 |
|
|
— |
|
|
6,723 |
|
|
7,215 |
|
|
1,712,187 |
|
|
1,732,816 |
|
PCI - commercial real
estate (1) |
|
— |
|
|
22,111 |
|
|
4,662 |
|
|
16,559 |
|
|
114,667 |
|
|
157,999 |
|
Total commercial real estate |
|
26,645 |
|
|
22,111 |
|
|
16,427 |
|
|
39,243 |
|
|
5,424,863 |
|
|
5,529,289 |
|
Home equity |
|
6,848 |
|
|
— |
|
|
1,889 |
|
|
5,517 |
|
|
770,421 |
|
|
784,675 |
|
Residential real estate,
including PCI |
|
12,043 |
|
|
488 |
|
|
2,166 |
|
|
3,903 |
|
|
588,851 |
|
|
607,451 |
|
Premium finance
receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
14,561 |
|
|
10,294 |
|
|
6,624 |
|
|
21,656 |
|
|
2,321,786 |
|
|
2,374,921 |
|
Life insurance loans |
|
— |
|
|
— |
|
|
3,432 |
|
|
11,140 |
|
|
2,578,632 |
|
|
2,593,204 |
|
PCI - life insurance loans
(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
368,292 |
|
|
368,292 |
|
Consumer and other,
including PCI |
|
263 |
|
|
211 |
|
|
204 |
|
|
1,187 |
|
|
144,511 |
|
|
146,376 |
|
Total loans, net of unearned
income, excluding covered loans |
|
$ |
73,072 |
|
|
$ |
34,537 |
|
|
$ |
42,103 |
|
|
$ |
104,122 |
|
|
$ |
16,864,283 |
|
|
$ |
17,118,117 |
|
Covered loans |
|
5,878 |
|
|
7,335 |
|
|
703 |
|
|
5,774 |
|
|
128,983 |
|
|
148,673 |
|
Total loans, net of unearned
income |
|
$ |
78,950 |
|
|
$ |
41,872 |
|
|
$ |
42,806 |
|
|
$ |
109,896 |
|
|
$ |
16,993,266 |
|
|
$ |
17,266,790 |
|
(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 December
31, 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, industrial and
other |
|
0.4 |
% |
|
— |
% |
|
0.2 |
% |
|
0.4 |
% |
|
99.0 |
% |
|
100.0 |
% |
Franchise |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Mortgage warehouse lines of
credit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Asset-based lending |
|
— |
|
|
— |
|
|
0.5 |
|
|
0.3 |
|
|
99.2 |
|
|
100.0 |
|
Leases |
|
— |
|
|
0.2 |
|
|
0.3 |
|
|
1.9 |
|
|
97.6 |
|
|
100.0 |
|
PCI - commercial(1) |
|
— |
|
|
4.8 |
|
|
— |
|
|
13.5 |
|
|
81.7 |
|
|
100.0 |
|
Total commercial |
|
0.3 |
|
|
— |
|
|
0.2 |
|
|
0.5 |
|
|
99.0 |
|
|
100.0 |
|
Commercial real
estate |
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
0.1 |
|
|
— |
|
|
0.4 |
|
|
0.5 |
|
|
99.0 |
|
|
100.0 |
|
Land |
|
2.2 |
|
|
— |
|
|
— |
|
|
0.2 |
|
|
97.6 |
|
|
100.0 |
|
Office |
|
0.5 |
|
|
— |
|
|
0.1 |
|
|
0.4 |
|
|
99.0 |
|
|
100.0 |
|
Industrial |
|
1.3 |
|
|
— |
|
|
0.3 |
|
|
0.1 |
|
|
98.3 |
|
|
100.0 |
|
Retail |
|
0.2 |
|
|
— |
|
|
0.1 |
|
|
0.3 |
|
|
99.4 |
|
|
100.0 |
|
Multi-family |
|
0.3 |
|
|
— |
|
|
0.1 |
|
|
0.9 |
|
|
98.7 |
|
|
100.0 |
|
Mixed use and other |
|
0.4 |
|
|
— |
|
|
0.4 |
|
|
0.4 |
|
|
98.8 |
|
|
100.0 |
|
PCI - commercial real estate
(1) |
|
— |
|
|
14.0 |
|
|
3.0 |
|
|
10.5 |
|
|
72.5 |
|
|
100.0 |
|
Total commercial real estate |
|
0.5 |
|
|
0.4 |
|
|
0.3 |
|
|
0.7 |
|
|
98.1 |
|
|
100.0 |
|
Home equity |
|
0.9 |
|
|
— |
|
|
0.2 |
|
|
0.7 |
|
|
98.2 |
|
|
100.0 |
|
Residential real estate,
including PCI |
|
2.0 |
|
|
0.1 |
|
|
0.4 |
|
|
0.6 |
|
|
96.9 |
|
|
100.0 |
|
Premium finance
receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
0.6 |
|
|
0.4 |
|
|
0.3 |
|
|
0.9 |
|
|
97.8 |
|
|
100.0 |
|
Life insurance loans |
|
— |
|
|
— |
|
|
0.1 |
|
|
0.4 |
|
|
99.5 |
|
|
100.0 |
|
PCI - life insurance loans
(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Consumer and other,
including PCI |
|
0.2 |
|
|
0.1 |
|
|
0.1 |
|
|
0.8 |
|
|
98.8 |
|
|
100.0 |
|
Total loans, net of unearned
income, excluding covered loans |
|
0.4 |
% |
|
0.2 |
% |
|
0.2 |
% |
|
0.6 |
% |
|
98.6 |
% |
|
100.0 |
% |
Covered loans |
|
4.0 |
|
|
4.9 |
|
|
0.5 |
|
|
3.9 |
|
|
86.7 |
|
|
100.0 |
|
Total loans, net of unearned
income |
|
0.5 |
% |
|
0.2 |
% |
|
0.2 |
% |
|
0.6 |
% |
|
98.5 |
% |
|
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.
|
|
March
31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2015 |
Loans past due
greater than 90 days and still
accruing(1): |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
338 |
|
|
$ |
541 |
|
|
$ |
— |
|
Commercial real estate |
|
1,260 |
|
|
— |
|
|
— |
|
Home equity |
|
— |
|
|
— |
|
|
— |
|
Residential real estate |
|
— |
|
|
— |
|
|
— |
|
Premium finance receivables -
commercial |
|
9,548 |
|
|
10,294 |
|
|
8,062 |
|
Premium finance receivables - life
insurance |
|
1,641 |
|
|
— |
|
|
— |
|
Consumer and other |
|
180 |
|
|
150 |
|
|
91 |
|
Total loans past due greater than
90 days and still accruing |
|
12,967 |
|
|
10,985 |
|
|
8,153 |
|
Non-accrual
loans(2): |
|
|
|
|
|
|
Commercial |
|
12,373 |
|
|
12,712 |
|
|
5,586 |
|
Commercial real estate |
|
26,996 |
|
|
26,645 |
|
|
29,982 |
|
Home equity |
|
9,365 |
|
|
6,848 |
|
|
7,665 |
|
Residential real estate |
|
11,964 |
|
|
12,043 |
|
|
14,248 |
|
Premium finance receivables -
commercial |
|
15,350 |
|
|
14,561 |
|
|
15,902 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
484 |
|
|
263 |
|
|
236 |
|
Total non-accrual loans |
|
76,532 |
|
|
73,072 |
|
|
73,619 |
|
Total
non-performing loans: |
|
|
|
|
|
|
Commercial |
|
12,711 |
|
|
13,253 |
|
|
5,586 |
|
Commercial real estate |
|
28,256 |
|
|
26,645 |
|
|
29,982 |
|
Home equity |
|
9,365 |
|
|
6,848 |
|
|
7,665 |
|
Residential real estate |
|
11,964 |
|
|
12,043 |
|
|
14,248 |
|
Premium finance receivables -
commercial |
|
24,898 |
|
|
24,855 |
|
|
23,964 |
|
Premium finance receivables - life
insurance |
|
1,641 |
|
|
— |
|
|
— |
|
Consumer and other |
|
664 |
|
|
413 |
|
|
327 |
|
Total non-performing loans |
|
$ |
89,499 |
|
|
$ |
84,057 |
|
|
$ |
81,772 |
|
Other real estate owned |
|
24,022 |
|
|
26,849 |
|
|
33,131 |
|
Other real estate owned - from
acquisitions |
|
16,980 |
|
|
17,096 |
|
|
9,126 |
|
Other repossessed assets |
|
171 |
|
|
174 |
|
|
259 |
|
Total non-performing assets |
|
$ |
130,672 |
|
|
$ |
128,176 |
|
|
$ |
124,288 |
|
TDRs performing under the
contractual terms of the loan agreement |
|
$ |
34,949 |
|
|
$ |
42,744 |
|
|
$ |
54,687 |
|
Total
non-performing loans by category as a percent of its own
respective category’s period-end balance: |
|
|
|
|
|
|
Commercial |
|
0.26 |
% |
|
0.28 |
% |
|
0.13 |
% |
Commercial real estate |
|
0.49 |
|
|
0.48 |
|
|
0.64 |
|
Home equity |
|
1.21 |
|
|
0.87 |
|
|
1.08 |
|
Residential real estate |
|
1.91 |
|
|
1.98 |
|
|
2.87 |
|
Premium finance receivables -
commercial |
|
1.07 |
|
|
1.05 |
|
|
1.03 |
|
Premium finance receivables - life
insurance |
|
0.06 |
|
|
— |
|
|
— |
|
Consumer and other |
|
0.55 |
|
|
0.28 |
|
|
0.25 |
|
Total loans, net of unearned
income |
|
0.51 |
% |
|
0.49 |
% |
|
0.55 |
% |
Total
non-performing assets as a percentage of total
assets |
|
0.56 |
% |
|
0.56 |
% |
|
0.61 |
% |
Allowance for loan
losses as a percentage of total non-performing
loans |
|
123.10 |
% |
|
125.39 |
% |
|
115.50 |
% |
(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
$17.6 million, $9.1 million, and $12.5 million as of March 31,
2016, December 31, 2015, and March 31, 2015,
respectively.
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.
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 |
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2015 |
Balance at beginning of
period |
|
$ |
84,057 |
|
|
$ |
85,976 |
|
|
$ |
78,677 |
|
Additions, net |
|
12,166 |
|
|
5,983 |
|
|
8,980 |
|
Return to performing status |
|
(2,006 |
) |
|
(1,152 |
) |
|
(716 |
) |
Payments received |
|
(3,308 |
) |
|
(6,387 |
) |
|
(4,369 |
) |
Transfer to OREO and other
repossessed assets |
|
(2,080 |
) |
|
(1,903 |
) |
|
(2,540 |
) |
Charge-offs |
|
(533 |
) |
|
(1,882 |
) |
|
(1,801 |
) |
Net change for niche loans
(1) |
|
1,203 |
|
|
3,422 |
|
|
3,541 |
|
Balance at end of
period |
|
$ |
89,499 |
|
|
$ |
84,057 |
|
|
$ |
81,772 |
|
(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:
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2015 |
Accruing
TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
5,143 |
|
|
$ |
5,613 |
|
|
$ |
6,273 |
|
Commercial real estate |
|
25,548 |
|
|
32,777 |
|
|
45,417 |
|
Residential real estate and
other |
|
4,258 |
|
|
4,354 |
|
|
2,997 |
|
Total accrual |
|
$ |
34,949 |
|
|
$ |
42,744 |
|
|
$ |
54,687 |
|
Non-accrual
TDRs: (1) |
|
|
|
|
|
|
Commercial |
|
$ |
82 |
|
|
$ |
134 |
|
|
$ |
184 |
|
Commercial real estate |
|
14,340 |
|
|
5,930 |
|
|
8,229 |
|
Residential real estate and
other |
|
3,184 |
|
|
3,045 |
|
|
4,118 |
|
Total non-accrual |
|
$ |
17,606 |
|
|
$ |
9,109 |
|
|
$ |
12,531 |
|
Total
TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
5,225 |
|
|
$ |
5,747 |
|
|
$ |
6,457 |
|
Commercial real estate |
|
39,888 |
|
|
38,707 |
|
|
53,646 |
|
Residential real estate and
other |
|
7,442 |
|
|
7,399 |
|
|
7,115 |
|
Total TDRs |
|
$ |
52,555 |
|
|
$ |
51,853 |
|
|
$ |
67,218 |
|
Weighted-average
contractual interest rate of TDRs |
|
4.35 |
% |
|
4.13 |
% |
|
4.04 |
% |
(1) Included in total non-performing
loans.
At March 31, 2016, the Company had $52.6
million in loans modified in TDRs. The $52.6 million in TDRs
represents 102 credits in which economic concessions were granted
to certain borrowers to better align the terms of their loans with
their current ability to pay. The balance increased slightly
from $51.9 million representing 102 credits at December 31,
2015 and decreased from $67.2 million representing 125 credits at
March 31, 2015.
The table below presents a summary of TDRs as of
March 31, 2016 and March 31, 2015, and shows the changes
in the balance during the periods presented:
Three Months Ended March 31, 2016
(Dollars in thousands) |
|
Commercial |
|
Commercial
Real Estate |
|
Residential
Real Estate
and Other |
|
Total |
Balance at beginning of
period |
|
$ |
5,747 |
|
|
$ |
38,707 |
|
|
$ |
7,399 |
|
|
$ |
51,853 |
|
Additions during the
period |
|
42 |
|
|
8,521 |
|
|
160 |
|
|
8,723 |
|
Reductions: |
|
|
|
|
|
|
|
|
Charge-offs |
|
(20 |
) |
|
(424 |
) |
|
— |
|
|
(444 |
) |
Transferred to OREO and other
repossessed assets |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Removal of TDR loan status
(1) |
|
— |
|
|
(4,417 |
) |
|
— |
|
|
(4,417 |
) |
Payments received, net |
|
(544 |
) |
|
(2,499 |
) |
|
(117 |
) |
|
(3,160 |
) |
Balance at period
end |
|
$ |
5,225 |
|
|
$ |
39,888 |
|
|
$ |
7,442 |
|
|
$ |
52,555 |
|
Three Months Ended March 31, 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 |
|
— |
|
|
— |
|
|
294 |
|
|
294 |
|
Reductions: |
|
|
|
|
|
|
|
|
Charge-offs |
|
(397 |
) |
|
(1 |
) |
|
(33 |
) |
|
(431 |
) |
Transferred to OREO and other
repossessed assets |
|
(562 |
) |
|
(1,519 |
) |
|
— |
|
|
(2,081 |
) |
Removal of TDR loan status
(1) |
|
(76 |
) |
|
(8,382 |
) |
|
— |
|
|
(8,458 |
) |
Payments received, net |
|
(84 |
) |
|
(4,075 |
) |
|
(222 |
) |
|
(4,381 |
) |
Balance at period
end |
|
$ |
6,457 |
|
|
$ |
53,646 |
|
|
$ |
7,115 |
|
|
$ |
67,218 |
|
(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
March 31, 2016 and approximately $3.1 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 March 31,
2016 and 2015, the Company recorded $90,000 and $193,000,
respectively, in interest income representing this decrease in
impairment.
Other Real Estate Owned
The table below presents a summary of other real
estate owned, excluding covered other real estate owned, as of
March 31, 2016, December 31, 2015 and March 31,
2015, and shows the activity for the respective period and the
balance for each property type:
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2015 |
Balance at beginning of
period |
|
$ |
43,945 |
|
|
$ |
51,880 |
|
|
$ |
45,642 |
|
Disposals/resolved |
|
(6,766 |
) |
|
(9,156 |
) |
|
(6,846 |
) |
Transfers in at fair value, less
costs to sell |
|
3,291 |
|
|
2,345 |
|
|
3,831 |
|
Transfers in from covered OREO
subsequent to loss share expiration |
|
— |
|
|
69 |
|
|
— |
|
Additions from acquisition |
|
1,064 |
|
|
— |
|
|
761 |
|
Fair value adjustments |
|
(532 |
) |
|
(1,193 |
) |
|
(1,131 |
) |
Balance at end of
period |
|
$ |
41,002 |
|
|
$ |
43,945 |
|
|
$ |
42,257 |
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
March 31, |
|
December 31, |
|
March 31, |
Balance by
Property Type |
|
2016 |
|
2015 |
|
2015 |
Residential real
estate |
|
$ |
11,006 |
|
|
$ |
11,322 |
|
|
$ |
7,250 |
|
Residential real estate
development |
|
2,320 |
|
|
2,914 |
|
|
2,687 |
|
Commercial real
estate |
|
27,676 |
|
|
29,709 |
|
|
32,320 |
|
Total |
|
$ |
41,002 |
|
|
$ |
43,945 |
|
|
$ |
42,257 |
|
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 covered assets and any
changes in the allowance for covered loan losses. The Company
expects covered assets and the allowance for covered loan losses to
continue to decrease in periods without FDIC-assisted
acquisitions.
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2015 |
Period End
Balances: |
|
|
|
|
|
|
Loans |
|
$ |
138,848 |
|
|
$ |
148,673 |
|
|
$ |
209,694 |
|
Other real estate owned |
|
17,976 |
|
|
21,383 |
|
|
38,785 |
|
Other assets |
|
296 |
|
|
411 |
|
|
757 |
|
FDIC Indemnification (liability)
asset |
|
(10,029 |
) |
|
(6,100 |
) |
|
10,224 |
|
Total net covered assets |
|
$ |
147,091 |
|
|
$ |
164,367 |
|
|
$ |
259,460 |
|
Allowance for
Covered Loan Losses Rollforward: |
|
|
|
|
|
|
Balance at beginning of
quarter: |
|
$ |
3,026 |
|
|
$ |
2,918 |
|
|
$ |
2,131 |
|
Provision for covered loan losses
before benefit attributable to FDIC loss share agreements |
|
(1,946 |
) |
|
(2,011 |
) |
|
(529 |
) |
Benefit attributable to FDIC loss
share agreements |
|
1,557 |
|
|
1,874 |
|
|
423 |
|
Net provision for covered loan
losses |
|
(389 |
) |
|
(137 |
) |
|
(106 |
) |
Decrease in FDIC indemnification
asset |
|
(1,557 |
) |
|
(1,874 |
) |
|
(423 |
) |
Loans charged-off |
|
(230 |
) |
|
(163 |
) |
|
(237 |
) |
Recoveries of loans
charged-off |
|
1,657 |
|
|
2,282 |
|
|
513 |
|
Net recoveries |
|
1,427 |
|
|
2,119 |
|
|
276 |
|
Balance at end of quarter |
|
$ |
2,507 |
|
|
$ |
3,026 |
|
|
$ |
1,878 |
|
Changes in Accretable Yield
The excess of cash flows expected to be
collected over the carrying value of loans accounted for under ASC
310-30 is referred to as the accretable yield and is recognized in
interest income using an effective yield method over the remaining
life of the pool of loans. The accretable yield is affected by:
- Changes in interest rate indices for variable rate loans
accounted for under ASC 310-30 – Expected future cash flows are
based on the variable rates in effect at the time of the regular
evaluations of cash flows expected to be collected;
- Changes in prepayment assumptions – Prepayments affect the
estimated life of loans accounted for under ASC 310-30 which may
change the amount of interest income, and possibly principal,
expected to be collected; and
- Changes in the expected principal and interest payments over
the estimated life – Updates to expected cash flows are driven by
the credit outlook and actions taken with borrowers. Changes in
expected future cash flows from loan modifications are included in
the regular evaluations of cash flows expected to be
collected.
The following table provides activity for the
accretable yield of loans accounted for under ASC 310-30.
|
|
Three Months Ended |
|
|
March 31, |
|
March 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
Accretable yield,
beginning balance |
|
$ |
63,902 |
|
|
$ |
79,102 |
|
Acquisitions |
|
1,141 |
|
|
898 |
|
Accretable yield amortized
to interest income |
|
(5,457 |
) |
|
(6,105 |
) |
Accretable yield
amortized to indemnification asset(1) |
|
(2,171 |
) |
|
(3,576 |
) |
Reclassification from
non-accretable difference(2) |
|
4,193 |
|
|
1,103 |
|
(Decreases) increases in
interest cash flows due to payments and changes in interest
rates |
|
(2,390 |
) |
|
(1,224 |
) |
Accretable yield,
ending balance (3) |
|
$ |
59,218 |
|
|
$ |
70,198 |
|
(1) Represents the portion of the current
period accreted yield, resulting from lower expected losses,
applied to reduce the loss share indemnification asset.
(2) Reclassification is the result of subsequent increases in
expected principal cash flows.
(3) As of March 31, 2016, the Company estimates that the
remaining accretable yield balance to be amortized to the
indemnification asset for the bank acquisitions is $4.8 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 $5.5 million and $6.1 million in the first
quarter of 2016 and 2015, 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 March 31, 2016, the Company completed its
acquisition of Generations Bancorp. Inc. ("Generations").
Generations was the parent company of Foundations Bank
("Foundations"). Through this transaction, prior to purchase
accounting adjustments, the Company acquired Foundations' banking
location in Pewaukee, Wisconsin, approximately $123 million in
assets and approximately $100 million in deposits.
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, the Company acquired CBWGE's
four banking locations in Wheaton and Glen Ellyn, Illinois,
approximately $351 million in assets and approximately $290 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, the Company acquired
SBT's ten banking locations in Chicago and its suburbs,
approximately $495 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, Wintrust Bank acquired
two banking locations, $118 million in assets and approximately
$101 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.
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, Des Plaines, Downers Grove, Elgin, Elk Grove Village,
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, Round Lake Beach, 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.
- Wintrust Asset Finance which offers direct leasing
opportunities.
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 2015 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:
- difficult economic conditions have adversely affected our
company and the financial services industry in general and further
deterioration in economic conditions may materially adversely
affect our business, financial condition, results of operations and
cash flows;
- since our business is concentrated in the Chicago metropolitan
and southern Wisconsin market areas, further declines in the
economy of this region could adversely affect our business;
- if our allowance for loan losses is not sufficient to absorb
losses that may occur in our loan portfolio, our financial
condition and liquidity could suffer;
- a significant portion of our loan portfolio is comprised of
commercial loans, the repayment of which is largely dependent upon
the financial success and economic viability of the borrower;
- a substantial portion of our loan portfolio is secured by real
estate, in particular commercial real estate. Deterioration in the
real estate markets could lead to additional losses, which could
have a material adverse effect on our financial condition and
results of operations;
- any inaccurate assumptions in our analytical and forecasting
models could cause us to miscalculate our projected revenue or
losses, which could adversely affect our financial condition;
- unanticipated changes in prevailing interest rates and the
effects of changing regulation could adversely affect our net
interest income, which is our largest source of income;
- our liquidity position may be negatively impacted if economic
conditions continue to suffer;
- the financial services industry is very competitive, and if we
are not able to compete effectively, we may lose market share and
our business could suffer;
- if we are unable to compete effectively, we will lose market
share and income from deposits, loans and other products may be
reduced. This could adversely affect our profitability and have a
material adverse effect on our business, financial condition and
results of operations;
- if we are unable to continue to identify favorable acquisitions
or successfully integrate our acquisitions, our growth may be
limited and our results of operations could suffer;
- our participation in FDIC-assisted acquisitions may present
additional risks to our financial condition and results of
operations;
- an actual or perceived reduction in our financial strength may
cause others to reduce or cease doing business with us, which could
result in a decrease in our net interest income and fee
revenues;
- if our growth requires us to raise additional capital, that
capital may not be available when it is needed or the cost of that
capital may be very high;
- disruption in the financial markets could result in lower fair
values for our investment securities portfolio;
- our controls and procedures may fail or be circumvented;
- new lines of business and new products and services are
essential to our ability to compete but may subject us to
additional risks;
- failures of our information technology systems may adversely
affect our operations;
- failures by or of our vendors may adversely affect our
operations;
- we issue debit cards, and debit card transactions pose a
particular cybersecurity risk that is outside of our control;
- we depend on the accuracy and completeness of information we
receive about our customers and counterparties to make credit
decisions;
- if we are unable to attract and retain experienced and
qualified personnel, our ability to provide high quality service
will be diminished, we may lose key customer relationships, and our
results of operations may suffer;
- we are subject to environmental liability risk associated with
lending activities;
- we are subject to claims and legal actions which could
negatively affect our results of operations or financial
condition;
- losses incurred in connection with actual or projected
repurchases and indemnification payments related to mortgages that
we have sold into the secondary market may exceed our financial
statement reserves and we may be required to increase such reserves
in the future. Increases to our reserves and losses incurred in
connection with actual loan repurchases and indemnification
payments could have a material adverse effect on our business,
financial condition, results of operations or cash flows;
- consumers may decide not to use banks to complete their
financial transactions, which could adversely affect our business
and results of operations;
- we may be adversely impacted by the soundness of other
financial institutions;
- de novo operations often involve significant expenses and
delayed returns and may negatively impact Wintrust's
profitability;
- we are subject to examinations and challenges by tax
authorities, and changes in federal and state tax laws and changes
in interpretation of existing laws can impact our financial
results;
- changes in accounting policies or accounting standards could
materially adversely affect how we report our financial results and
financial condition;
- we are a bank holding company, and our sources of funds,
including to pay dividends, are limited;
- anti-takeover provisions could negatively impact our
shareholders;
- if we fail to meet our regulatory capital ratios, we may be
forced to raise capital or sell assets;
- if our credit rating is lowered, our financing costs could
increase;
- changes in the United States’ monetary policy may restrict our
ability to conduct our business in a profitable manner;
- legislative and regulatory actions taken now or in the future
regarding the financial services industry may significantly
increase our costs or limit our ability to conduct our business in
a profitable manner;
- financial reform legislation and increased regulatory rigor
around mortgage-related issues may reduce our ability to market our
products to consumers and may limit our ability to profitably
operate our mortgage business;
- federal, state and local consumer lending laws may restrict our
ability to originate certain mortgage loans or increase our risk of
liability with respect to such loans and could increase our cost of
doing business;
- regulatory initiatives regarding bank capital requirements may
require heightened capital;
- our FDIC insurance premiums may increase, which could
negatively impact our results of operations;
- non-compliance with the USA PATRIOT Act, Bank Secrecy Act or
other laws and regulations could result in fines or sanctions;
- our premium finance business may involve a higher risk of
delinquency or collection than our other lending operations, and
could expose us to losses;
- widespread financial difficulties or credit downgrades among
commercial and life insurance providers could lessen the value of
the collateral securing our premium finance loans and impair the
financial condition and liquidity of FIFC and FIFC Canada;
- proposed regulatory changes could significantly reduce loan
volume and impair the financial condition of FIFC; and
- our wealth management business in general, and WHI's brokerage
operation, in particular, exposes us to certain risks associated
with the securities industry.
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 1:00
p.m. (CT) Tuesday, April 19, 2016 regarding first quarter 2016
results. Individuals interested in listening should call
(877) 363-5049 and enter Conference ID #81087974. A
simultaneous audio-only web cast and replay of the conference call
may be accessed via the Company’s web site at (http://www.wintrust.com),
Investor Relations, Investor News and Events,
Presentations & Conference Calls. The text of the first
quarter 2016 earnings press release will be available on the home
page of the Company’s website at (http://www.wintrust.com) and at
the Investor Relations, Investor News and Events, Press Releases
link on its website.
WINTRUST FINANCIAL
CORPORATION
Supplemental Financial
Information
5 Quarter Trends
WINTRUST FINANCIAL CORPORATION - Supplemental Financial
Information |
Selected Financial Highlights - 5 Quarter
Trends |
(Dollars in thousands, except per share data) |
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Selected Financial
Condition Data (at end of period): |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
|
$ |
22,035,216 |
|
|
$ |
20,790,202 |
|
|
$ |
20,371,566 |
|
Total loans, excluding
loans held-for-sale and covered loans |
|
17,446,413 |
|
|
17,118,117 |
|
|
16,316,211 |
|
|
15,513,650 |
|
|
14,953,059 |
|
Total deposits |
|
19,217,071 |
|
|
18,639,634 |
|
|
18,228,469 |
|
|
17,082,418 |
|
|
16,938,769 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
268,566 |
|
|
268,566 |
|
|
249,493 |
|
|
249,493 |
|
Total shareholders’
equity |
|
2,418,442 |
|
|
2,352,274 |
|
|
2,335,736 |
|
|
2,264,982 |
|
|
2,131,074 |
|
Selected
Statements of Income Data: |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
171,509 |
|
|
167,206 |
|
|
165,540 |
|
|
156,892 |
|
|
151,891 |
|
Net revenue
(1) |
|
240,261 |
|
|
232,296 |
|
|
230,493 |
|
|
233,905 |
|
|
216,432 |
|
Net income |
|
49,111 |
|
|
35,512 |
|
|
38,355 |
|
|
43,831 |
|
|
39,052 |
|
Net income per common
share – Basic |
|
$ |
0.94 |
|
|
$ |
0.66 |
|
|
$ |
0.71 |
|
|
$ |
0.89 |
|
|
$ |
0.79 |
|
Net income per common
share – Diluted |
|
$ |
0.90 |
|
|
$ |
0.64 |
|
|
$ |
0.69 |
|
|
$ |
0.85 |
|
|
$ |
0.76 |
|
Selected Financial
Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest margin
(2) |
|
3.32 |
% |
|
3.29 |
% |
|
3.33 |
% |
|
3.41 |
% |
|
3.42 |
% |
Non-interest income to
average assets |
|
1.21 |
% |
|
1.16 |
% |
|
1.19 |
% |
|
1.52 |
% |
|
1.32 |
% |
Non-interest expense to
average assets |
|
2.70 |
% |
|
2.98 |
% |
|
2.93 |
% |
|
3.06 |
% |
|
3.02 |
% |
Net overhead ratio
(2) (3) |
|
1.49 |
% |
|
1.82 |
% |
|
1.74 |
% |
|
1.53 |
% |
|
1.69 |
% |
Efficiency ratio - FTE
(2) (4) |
|
63.96 |
% |
|
71.39 |
% |
|
69.02 |
% |
|
65.64 |
% |
|
67.90 |
% |
Return on average
assets |
|
0.86 |
% |
|
0.63 |
% |
|
0.70 |
% |
|
0.87 |
% |
|
0.80 |
% |
Return on average common
equity |
|
8.55 |
% |
|
6.03 |
% |
|
6.60 |
% |
|
8.38 |
% |
|
7.64 |
% |
Return on average tangible
common equity |
|
11.33 |
% |
|
8.12 |
% |
|
8.88 |
% |
|
10.86 |
% |
|
9.96 |
% |
Average total assets |
|
$ |
22,902,913 |
|
|
$ |
22,225,112 |
|
|
$ |
21,679,062 |
|
|
$ |
20,246,614 |
|
|
$ |
19,814,606 |
|
Average total
shareholders’ equity |
|
2,389,770 |
|
|
2,347,545 |
|
|
2,310,511 |
|
|
2,156,128 |
|
|
2,114,356 |
|
Average loans to average
deposits ratio (excluding covered loans) |
|
93.8 |
% |
|
91.9 |
% |
|
91.9 |
% |
|
92.8 |
% |
|
91.4 |
% |
Average loans to average
deposits ratio (including covered loans) |
|
94.6 |
|
|
92.7 |
|
|
92.9 |
|
|
94.0 |
|
|
92.7 |
|
Common Share Data at
end of period: |
|
|
|
|
|
|
|
|
|
|
Market price per common
share |
|
$ |
44.34 |
|
|
$ |
48.52 |
|
|
$ |
53.43 |
|
|
$ |
53.38 |
|
|
$ |
47.68 |
|
Book value per common
share (2) |
|
$ |
44.67 |
|
|
$ |
43.42 |
|
|
$ |
43.12 |
|
|
$ |
42.24 |
|
|
$ |
42.30 |
|
Tangible common book
value per share (2) |
|
$ |
34.20 |
|
|
$ |
33.17 |
|
|
$ |
32.83 |
|
|
$ |
33.02 |
|
|
$ |
33.04 |
|
Common shares
outstanding |
|
48,518,998 |
|
|
48,383,279 |
|
|
48,336,870 |
|
|
47,677,257 |
|
|
47,389,608 |
|
Other Data at end
of period:(8) |
|
|
|
|
|
|
|
|
|
|
Leverage
Ratio(5) |
|
8.7 |
% |
|
9.1 |
% |
|
9.2 |
% |
|
9.8 |
% |
|
9.2 |
% |
Tier 1 Capital to
risk-weighted assets (5) |
|
9.5 |
% |
|
10.0 |
% |
|
10.3 |
% |
|
10.7 |
% |
|
10.1 |
% |
Common equity Tier 1
capital to risk-weighted assets (5) |
|
8.3 |
% |
|
8.4 |
% |
|
8.6 |
% |
|
9.0 |
% |
|
9.1 |
% |
Total capital to
risk-weighted assets (5) |
|
12.0 |
% |
|
12.2 |
% |
|
12.6 |
% |
|
13.1 |
% |
|
12.5 |
% |
Tangible common equity
ratio (TCE) (2) (7) |
|
7.2 |
% |
|
7.2 |
% |
|
7.4 |
% |
|
7.7 |
% |
|
7.9 |
% |
Tangible common equity
ratio, assuming full conversion of convertible preferred stock
(2) (7) |
|
7.8 |
% |
|
7.7 |
% |
|
8.0 |
% |
|
8.4 |
% |
|
8.5 |
% |
Allowance for credit
losses (6) |
|
$ |
111,201 |
|
|
$ |
106,349 |
|
|
$ |
103,922 |
|
|
$ |
101,088 |
|
|
$ |
95,334 |
|
Non-performing loans |
|
89,499 |
|
|
84,057 |
|
|
85,976 |
|
|
76,554 |
|
|
81,772 |
|
Allowance for credit
losses to total loans (6) |
|
0.64 |
% |
|
0.62 |
% |
|
0.64 |
% |
|
0.65 |
% |
|
0.64 |
% |
Non-performing loans to
total loans |
|
0.51 |
% |
|
0.49 |
% |
|
0.53 |
% |
|
0.49 |
% |
|
0.55 |
% |
Number of: |
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
Banking offices |
|
153 |
|
|
152 |
|
|
160 |
|
|
147 |
|
|
146 |
|
(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) |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands) |
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
208,480 |
|
|
$ |
271,454 |
|
|
$ |
247,341 |
|
|
$ |
248,094 |
|
|
$ |
286,743 |
|
Federal funds sold and
securities purchased under resale agreements |
|
3,820 |
|
|
4,341 |
|
|
3,314 |
|
|
4,115 |
|
|
4,129 |
|
Interest bearing deposits
with banks |
|
817,013 |
|
|
607,782 |
|
|
701,106 |
|
|
591,721 |
|
|
697,799 |
|
Available-for-sale
securities, at fair value |
|
770,983 |
|
|
1,716,388 |
|
|
2,214,281 |
|
|
2,162,061 |
|
|
1,721,030 |
|
Held-to-maturity
securities, at amortized cost |
|
911,715 |
|
|
884,826 |
|
|
— |
|
|
— |
|
|
— |
|
Trading account
securities |
|
2,116 |
|
|
448 |
|
|
3,312 |
|
|
1,597 |
|
|
7,811 |
|
Federal Home Loan Bank and
Federal Reserve Bank stock |
|
113,222 |
|
|
101,581 |
|
|
90,308 |
|
|
89,818 |
|
|
92,948 |
|
Brokerage customer
receivables |
|
28,266 |
|
|
27,631 |
|
|
28,293 |
|
|
29,753 |
|
|
25,287 |
|
Mortgage loans
held-for-sale |
|
314,554 |
|
|
388,038 |
|
|
347,005 |
|
|
497,283 |
|
|
446,355 |
|
Loans, net of unearned
income, excluding covered loans |
|
17,446,413 |
|
|
17,118,117 |
|
|
16,316,211 |
|
|
15,513,650 |
|
|
14,953,059 |
|
Covered loans |
|
138,848 |
|
|
148,673 |
|
|
168,609 |
|
|
193,410 |
|
|
209,694 |
|
Total loans |
|
17,585,261 |
|
|
17,266,790 |
|
|
16,484,820 |
|
|
15,707,060 |
|
|
15,162,753 |
|
Less: Allowance for loan
losses |
|
110,171 |
|
|
105,400 |
|
|
102,996 |
|
|
100,204 |
|
|
94,446 |
|
Less: Allowance for covered loan
losses |
|
2,507 |
|
|
3,026 |
|
|
2,918 |
|
|
2,215 |
|
|
1,878 |
|
Net loans |
|
17,472,583 |
|
|
17,158,364 |
|
|
16,378,906 |
|
|
15,604,641 |
|
|
15,066,429 |
|
Premises and equipment,
net |
|
591,608 |
|
|
592,256 |
|
|
587,348 |
|
|
571,498 |
|
|
559,281 |
|
Lease investments,
net |
|
89,337 |
|
|
63,170 |
|
|
29,111 |
|
|
13,447 |
|
|
383 |
|
FDIC indemnification
asset |
|
— |
|
|
— |
|
|
— |
|
|
3,429 |
|
|
10,224 |
|
Accrued interest
receivable and other assets |
|
647,853 |
|
|
597,099 |
|
|
629,211 |
|
|
533,175 |
|
|
526,029 |
|
Trade date securities
receivable |
|
1,008,613 |
|
|
— |
|
|
277,981 |
|
|
— |
|
|
488,063 |
|
Goodwill |
|
484,280 |
|
|
471,761 |
|
|
472,166 |
|
|
421,646 |
|
|
420,197 |
|
Other intangible
assets |
|
23,725 |
|
|
24,209 |
|
|
25,533 |
|
|
17,924 |
|
|
18,858 |
|
Total assets |
|
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
|
$ |
22,035,216 |
|
|
$ |
20,790,202 |
|
|
$ |
20,371,566 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,205,410 |
|
|
$ |
4,836,420 |
|
|
$ |
4,705,994 |
|
|
$ |
3,910,310 |
|
|
$ |
3,779,609 |
|
Interest bearing |
|
14,011,661 |
|
|
13,803,214 |
|
|
13,522,475 |
|
|
13,172,108 |
|
|
13,159,160 |
|
Total deposits |
|
19,217,071 |
|
|
18,639,634 |
|
|
18,228,469 |
|
|
17,082,418 |
|
|
16,938,769 |
|
Federal Home Loan Bank
advances |
|
799,482 |
|
|
853,431 |
|
|
443,955 |
|
|
435,721 |
|
|
406,839 |
|
Other borrowings |
|
253,126 |
|
|
265,785 |
|
|
259,805 |
|
|
261,674 |
|
|
186,716 |
|
Subordinated notes |
|
138,888 |
|
|
138,861 |
|
|
138,834 |
|
|
138,808 |
|
|
138,782 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
268,566 |
|
|
268,566 |
|
|
249,493 |
|
|
249,493 |
|
Trade date securities
payable |
|
— |
|
|
538 |
|
|
617 |
|
|
— |
|
|
2,929 |
|
Accrued interest payable
and other liabilities |
|
407,593 |
|
|
390,259 |
|
|
359,234 |
|
|
357,106 |
|
|
316,964 |
|
Total liabilities |
|
21,069,726 |
|
|
20,557,074 |
|
|
19,699,480 |
|
|
18,525,220 |
|
|
18,240,492 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
251,257 |
|
|
251,287 |
|
|
251,312 |
|
|
251,312 |
|
|
126,427 |
|
Common stock |
|
48,608 |
|
|
48,469 |
|
|
48,422 |
|
|
47,763 |
|
|
47,475 |
|
Surplus |
|
1,194,750 |
|
|
1,190,988 |
|
|
1,187,407 |
|
|
1,159,052 |
|
|
1,156,542 |
|
Treasury stock |
|
(4,145 |
) |
|
(3,973 |
) |
|
(3,964 |
) |
|
(3,964 |
) |
|
(3,948 |
) |
Retained earnings |
|
967,882 |
|
|
928,211 |
|
|
901,652 |
|
|
872,690 |
|
|
835,669 |
|
Accumulated other comprehensive
loss |
|
(39,910 |
) |
|
(62,708 |
) |
|
(49,093 |
) |
|
(61,871 |
) |
|
(31,091 |
) |
Total shareholders’ equity |
|
2,418,442 |
|
|
2,352,274 |
|
|
2,335,736 |
|
|
2,264,982 |
|
|
2,131,074 |
|
Total liabilities and
shareholders’ equity |
|
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
|
$ |
22,035,216 |
|
|
$ |
20,790,202 |
|
|
$ |
20,371,566 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Consolidated Statements of Income (Unaudited) - 5 Quarter
Trends |
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands, except per share
data) |
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Interest
income |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
173,127 |
|
|
$ |
169,501 |
|
|
$ |
167,831 |
|
|
$ |
159,823 |
|
|
$ |
154,676 |
|
Interest bearing deposits with
banks |
|
746 |
|
|
493 |
|
|
372 |
|
|
305 |
|
|
316 |
|
Federal funds sold and securities
purchased under resale agreements |
|
1 |
|
|
— |
|
|
1 |
|
|
1 |
|
|
2 |
|
Investment securities |
|
17,190 |
|
|
16,405 |
|
|
16,130 |
|
|
14,071 |
|
|
14,400 |
|
Trading account securities |
|
11 |
|
|
25 |
|
|
19 |
|
|
51 |
|
|
13 |
|
Federal Home Loan Bank and Federal
Reserve Bank stock |
|
937 |
|
|
857 |
|
|
821 |
|
|
785 |
|
|
769 |
|
Brokerage customer receivables |
|
219 |
|
|
206 |
|
|
205 |
|
|
205 |
|
|
181 |
|
Total interest income |
|
192,231 |
|
|
187,487 |
|
|
185,379 |
|
|
175,241 |
|
|
170,357 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
12,781 |
|
|
12,617 |
|
|
12,436 |
|
|
11,996 |
|
|
11,814 |
|
Interest on Federal Home Loan Bank
advances |
|
2,886 |
|
|
2,684 |
|
|
2,458 |
|
|
1,812 |
|
|
2,156 |
|
Interest on other borrowings |
|
1,058 |
|
|
1,007 |
|
|
1,045 |
|
|
787 |
|
|
788 |
|
Interest on subordinated notes |
|
1,777 |
|
|
1,777 |
|
|
1,776 |
|
|
1,777 |
|
|
1,775 |
|
Interest on junior subordinated
debentures |
|
2,220 |
|
|
2,196 |
|
|
2,124 |
|
|
1,977 |
|
|
1,933 |
|
Total interest expense |
|
20,722 |
|
|
20,281 |
|
|
19,839 |
|
|
18,349 |
|
|
18,466 |
|
Net interest
income |
|
171,509 |
|
|
167,206 |
|
|
165,540 |
|
|
156,892 |
|
|
151,891 |
|
Provision for credit
losses |
|
8,034 |
|
|
9,059 |
|
|
8,322 |
|
|
9,482 |
|
|
6,079 |
|
Net interest income after
provision for credit losses |
|
163,475 |
|
|
158,147 |
|
|
157,218 |
|
|
147,410 |
|
|
145,812 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
|
Wealth management |
|
18,320 |
|
|
18,634 |
|
|
18,243 |
|
|
18,476 |
|
|
18,100 |
|
Mortgage banking |
|
21,735 |
|
|
23,317 |
|
|
27,887 |
|
|
36,007 |
|
|
27,800 |
|
Service charges on deposit
accounts |
|
7,406 |
|
|
7,210 |
|
|
7,403 |
|
|
6,474 |
|
|
6,297 |
|
Gains (losses) on
available-for-sale securities, net |
|
1,325 |
|
|
(79 |
) |
|
(98 |
) |
|
(24 |
) |
|
524 |
|
Fees from covered call options |
|
1,712 |
|
|
3,629 |
|
|
2,810 |
|
|
4,565 |
|
|
4,360 |
|
Trading (losses) gains, net |
|
(168 |
) |
|
205 |
|
|
(135 |
) |
|
160 |
|
|
(477 |
) |
Operating lease income, net |
|
2,806 |
|
|
1,973 |
|
|
613 |
|
|
77 |
|
|
65 |
|
Other |
|
15,616 |
|
|
10,201 |
|
|
8,230 |
|
|
11,278 |
|
|
7,872 |
|
Total non-interest income |
|
68,752 |
|
|
65,090 |
|
|
64,953 |
|
|
77,013 |
|
|
64,541 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
95,811 |
|
|
99,780 |
|
|
97,749 |
|
|
94,421 |
|
|
90,130 |
|
Equipment |
|
8,767 |
|
|
8,799 |
|
|
8,456 |
|
|
7,855 |
|
|
7,779 |
|
Operating lease equipment
depreciation |
|
2,050 |
|
|
1,202 |
|
|
431 |
|
|
59 |
|
|
57 |
|
Occupancy, net |
|
11,948 |
|
|
13,062 |
|
|
12,066 |
|
|
11,401 |
|
|
12,351 |
|
Data processing |
|
6,519 |
|
|
7,284 |
|
|
8,127 |
|
|
6,081 |
|
|
5,448 |
|
Advertising and marketing |
|
3,779 |
|
|
5,373 |
|
|
6,237 |
|
|
6,406 |
|
|
3,907 |
|
Professional fees |
|
4,059 |
|
|
4,387 |
|
|
4,100 |
|
|
5,074 |
|
|
4,664 |
|
Amortization of other intangible
assets |
|
1,298 |
|
|
1,324 |
|
|
1,350 |
|
|
934 |
|
|
1,013 |
|
FDIC insurance |
|
3,613 |
|
|
3,317 |
|
|
3,035 |
|
|
3,047 |
|
|
2,987 |
|
OREO expense, net |
|
560 |
|
|
2,598 |
|
|
(367 |
) |
|
841 |
|
|
1,411 |
|
Other |
|
15,326 |
|
|
19,703 |
|
|
18,790 |
|
|
18,178 |
|
|
17,571 |
|
Total non-interest expense |
|
153,730 |
|
|
166,829 |
|
|
159,974 |
|
|
154,297 |
|
|
147,318 |
|
Income before taxes |
|
78,497 |
|
|
56,408 |
|
|
62,197 |
|
|
70,126 |
|
|
63,035 |
|
Income tax expense |
|
29,386 |
|
|
20,896 |
|
|
23,842 |
|
|
26,295 |
|
|
23,983 |
|
Net
income |
|
$ |
49,111 |
|
|
$ |
35,512 |
|
|
$ |
38,355 |
|
|
$ |
43,831 |
|
|
$ |
39,052 |
|
Preferred stock dividends
and discount accretion |
|
3,628 |
|
|
3,629 |
|
|
4,079 |
|
|
1,580 |
|
|
1,581 |
|
Net income
applicable to common shares |
|
$ |
45,483 |
|
|
$ |
31,883 |
|
|
$ |
34,276 |
|
|
$ |
42,251 |
|
|
$ |
37,471 |
|
Net income per
common share - Basic |
|
$ |
0.94 |
|
|
$ |
0.66 |
|
|
$ |
0.71 |
|
|
$ |
0.89 |
|
|
$ |
0.79 |
|
Net income per
common share - Diluted |
|
$ |
0.90 |
|
|
$ |
0.64 |
|
|
$ |
0.69 |
|
|
$ |
0.85 |
|
|
$ |
0.76 |
|
Cash dividends
declared per common share |
|
$ |
0.12 |
|
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
$ |
0.11 |
|
|
$ |
0.11 |
|
Weighted average common
shares outstanding |
|
48,448 |
|
|
48,371 |
|
|
48,158 |
|
|
47,567 |
|
|
47,239 |
|
Dilutive potential common
shares |
|
3,820 |
|
|
4,005 |
|
|
4,049 |
|
|
4,156 |
|
|
4,233 |
|
Average common shares and
dilutive common shares |
|
52,268 |
|
|
52,376 |
|
|
52,207 |
|
|
51,723 |
|
|
51,472 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Period End Loan Balances - 5 Quarter Trends |
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
4,890,246 |
|
|
$ |
4,713,909 |
|
|
$ |
4,400,185 |
|
|
$ |
4,330,344 |
|
|
$ |
4,211,932 |
|
Commercial real estate |
|
5,737,959 |
|
|
5,529,289 |
|
|
5,307,566 |
|
|
4,850,590 |
|
|
4,710,486 |
|
Home equity |
|
774,342 |
|
|
784,675 |
|
|
797,465 |
|
|
712,350 |
|
|
709,283 |
|
Residential real estate |
|
626,043 |
|
|
607,451 |
|
|
571,743 |
|
|
503,015 |
|
|
495,925 |
|
Premium finance receivables -
commercial |
|
2,320,987 |
|
|
2,374,921 |
|
|
2,407,075 |
|
|
2,460,408 |
|
|
2,319,623 |
|
Premium finance receivables - life
insurance |
|
2,976,934 |
|
|
2,961,496 |
|
|
2,700,275 |
|
|
2,537,475 |
|
|
2,375,654 |
|
Consumer and other
(1) |
|
119,902 |
|
|
146,376 |
|
|
131,902 |
|
|
119,468 |
|
|
130,156 |
|
Total loans, net of unearned
income, excluding covered loans |
|
$ |
17,446,413 |
|
|
$ |
17,118,117 |
|
|
$ |
16,316,211 |
|
|
$ |
15,513,650 |
|
|
$ |
14,953,059 |
|
Covered loans |
|
138,848 |
|
|
148,673 |
|
|
168,609 |
|
|
193,410 |
|
|
209,694 |
|
Total loans, net of unearned
income |
|
$ |
17,585,261 |
|
|
$ |
17,266,790 |
|
|
$ |
16,484,820 |
|
|
$ |
15,707,060 |
|
|
$ |
15,162,753 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
28 |
% |
|
27 |
% |
|
27 |
% |
|
27 |
% |
|
28 |
% |
Commercial real estate |
|
32 |
|
|
32 |
|
|
32 |
|
|
31 |
|
|
31 |
|
Home equity |
|
4 |
|
|
5 |
|
|
5 |
|
|
5 |
|
|
5 |
|
Residential real estate |
|
4 |
|
|
3 |
|
|
3 |
|
|
3 |
|
|
3 |
|
Premium finance receivables -
commercial |
|
13 |
|
|
14 |
|
|
15 |
|
|
16 |
|
|
15 |
|
Premium finance receivables - life
insurance |
|
17 |
|
|
17 |
|
|
16 |
|
|
16 |
|
|
16 |
|
Consumer and other
(1) |
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
Total loans, net of unearned
income, excluding covered loans |
|
99 |
% |
|
99 |
% |
|
99 |
% |
|
99 |
% |
|
99 |
% |
Covered loans |
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
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 |
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,205,410 |
|
|
$ |
4,836,420 |
|
|
$ |
4,705,994 |
|
|
$ |
3,910,310 |
|
|
$ |
3,779,609 |
|
NOW and interest bearing demand
deposits |
|
2,369,474 |
|
|
2,390,217 |
|
|
2,231,258 |
|
|
2,240,832 |
|
|
2,262,928 |
|
Wealth management deposits
(1) |
|
1,761,710 |
|
|
1,643,653 |
|
|
1,469,920 |
|
|
1,591,251 |
|
|
1,528,963 |
|
Money market |
|
4,157,083 |
|
|
4,041,300 |
|
|
4,001,518 |
|
|
3,898,495 |
|
|
3,791,762 |
|
Savings |
|
1,766,552 |
|
|
1,723,367 |
|
|
1,684,007 |
|
|
1,504,654 |
|
|
1,563,752 |
|
Time certificates of deposit |
|
3,956,842 |
|
|
4,004,677 |
|
|
4,135,772 |
|
|
3,936,876 |
|
|
4,011,755 |
|
Total deposits |
|
$ |
19,217,071 |
|
|
$ |
18,639,634 |
|
|
$ |
18,228,469 |
|
|
$ |
17,082,418 |
|
|
$ |
16,938,769 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
27 |
% |
|
26 |
% |
|
26 |
% |
|
23 |
% |
|
22 |
% |
NOW and interest bearing demand
deposits |
|
12 |
|
|
13 |
|
|
12 |
|
|
13 |
|
|
13 |
|
Wealth management deposits
(1) |
|
9 |
|
|
9 |
|
|
8 |
|
|
9 |
|
|
9 |
|
Money market |
|
22 |
|
|
22 |
|
|
22 |
|
|
23 |
|
|
23 |
|
Savings |
|
9 |
|
|
9 |
|
|
9 |
|
|
9 |
|
|
9 |
|
Time certificates of deposit |
|
21 |
|
|
21 |
|
|
23 |
|
|
23 |
|
|
24 |
|
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 Company and brokerage
customers from unaffiliated companies which have been placed into
deposit accounts of the Banks.
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Net Interest Margin (Including Call Option Income) - 5
Quarter Trends |
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Net interest income |
|
$ |
172,944 |
|
|
$ |
168,515 |
|
|
$ |
166,737 |
|
|
$ |
158,034 |
|
|
$ |
152,952 |
|
Call option income |
|
1,712 |
|
|
3,629 |
|
|
2,810 |
|
|
4,565 |
|
|
4,360 |
|
Net interest income
including call option income |
|
$ |
174,656 |
|
|
$ |
172,144 |
|
|
$ |
169,547 |
|
|
$ |
162,599 |
|
|
$ |
157,312 |
|
Yield on earning
assets |
|
3.71 |
% |
|
3.69 |
% |
|
3.73 |
% |
|
3.81 |
% |
|
3.83 |
% |
Rate on interest-bearing
liabilities |
|
0.55 |
|
|
0.55 |
|
|
0.54 |
|
|
0.52 |
|
|
0.54 |
|
Rate spread |
|
3.16 |
% |
|
3.14 |
% |
|
3.19 |
% |
|
3.29 |
% |
|
3.29 |
% |
Net free funds
contribution |
|
0.16 |
|
|
0.15 |
|
|
0.14 |
|
|
0.12 |
|
|
0.13 |
|
Net interest margin |
|
3.32 |
|
|
3.29 |
|
|
3.33 |
|
|
3.41 |
|
|
3.42 |
|
Call option income |
|
0.03 |
|
|
0.07 |
|
|
0.06 |
|
|
0.10 |
|
|
0.10 |
|
Net interest margin
including call option income |
|
3.35 |
% |
|
3.36 |
% |
|
3.39 |
% |
|
3.51 |
% |
|
3.52 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Net Interest Margin (Including Call Option Income - YTD
Trends) |
|
|
|
Three Months Ended
March 31, |
|
Years Ended
December 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2014 |
|
2013 |
|
2012 |
Net interest income |
|
$ |
172,944 |
|
|
$ |
646,238 |
|
|
$ |
601,744 |
|
|
$ |
552,887 |
|
|
$ |
521,463 |
|
Call option income |
|
1,712 |
|
|
15,364 |
|
|
7,859 |
|
|
4,773 |
|
|
10,476 |
|
Net interest income
including call option income |
|
$ |
174,656 |
|
|
$ |
661,602 |
|
|
$ |
609,603 |
|
|
$ |
557,660 |
|
|
$ |
531,939 |
|
Yield on earning
assets |
|
3.71 |
% |
|
3.76 |
% |
|
3.96 |
% |
|
4.01 |
% |
|
4.21 |
% |
Rate on interest-bearing
liabilities |
|
0.55 |
|
|
0.54 |
|
|
0.55 |
|
|
0.63 |
|
|
0.86 |
|
Rate spread |
|
3.16 |
% |
|
3.22 |
% |
|
3.41 |
% |
|
3.38 |
% |
|
3.35 |
% |
Net free funds
contribution |
|
0.16 |
|
|
0.14 |
|
|
0.12 |
|
|
0.12 |
|
|
0.14 |
|
Net interest margin |
|
3.32 |
|
|
3.36 |
|
|
3.53 |
|
|
3.50 |
|
|
3.49 |
|
Call option income |
|
0.03 |
|
|
0.08 |
|
|
0.05 |
|
|
0.03 |
|
|
0.07 |
|
Net interest margin
including call option income |
|
3.35 |
% |
|
3.44 |
% |
|
3.58 |
% |
|
3.53 |
% |
|
3.56 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Quarterly Average Balances - 5 Quarter Trends |
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands) |
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Liquidity management
assets |
|
$ |
3,300,138 |
|
|
$ |
3,245,393 |
|
|
$ |
3,140,782 |
|
|
$ |
2,709,176 |
|
|
$ |
2,868,906 |
|
Other earning assets |
|
28,731 |
|
|
29,792 |
|
|
30,990 |
|
|
32,115 |
|
|
27,717 |
|
Loans, net of unearned
income |
|
17,508,593 |
|
|
16,889,922 |
|
|
16,509,001 |
|
|
15,632,875 |
|
|
15,031,917 |
|
Covered loans |
|
141,351 |
|
|
154,846 |
|
|
174,768 |
|
|
202,663 |
|
|
214,211 |
|
Total earning assets |
|
$ |
20,978,813 |
|
|
$ |
20,319,953 |
|
|
$ |
19,855,541 |
|
|
$ |
18,576,829 |
|
|
$ |
18,142,751 |
|
Allowance for loan and
covered loan losses |
|
(112,028 |
) |
|
(109,448 |
) |
|
(106,091 |
) |
|
(101,211 |
) |
|
(96,918 |
) |
Cash and due from
banks |
|
259,343 |
|
|
260,593 |
|
|
251,289 |
|
|
236,242 |
|
|
249,687 |
|
Other assets |
|
1,776,785 |
|
|
1,754,014 |
|
|
1,678,323 |
|
|
1,534,754 |
|
|
1,519,086 |
|
Total assets |
|
$ |
22,902,913 |
|
|
$ |
22,225,112 |
|
|
$ |
21,679,062 |
|
|
$ |
20,246,614 |
|
|
$ |
19,814,606 |
|
Interest-bearing
deposits |
|
$ |
13,717,333 |
|
|
$ |
13,606,046 |
|
|
$ |
13,489,651 |
|
|
$ |
13,115,453 |
|
|
$ |
12,863,507 |
|
Federal Home Loan Bank
advances |
|
825,104 |
|
|
441,669 |
|
|
394,666 |
|
|
338,768 |
|
|
347,456 |
|
Other borrowings |
|
257,384 |
|
|
269,738 |
|
|
272,549 |
|
|
193,367 |
|
|
194,663 |
|
Subordinated notes |
|
138,870 |
|
|
138,852 |
|
|
138,825 |
|
|
138,799 |
|
|
138,773 |
|
Junior subordinated
debentures |
|
257,687 |
|
|
268,566 |
|
|
264,974 |
|
|
249,493 |
|
|
249,493 |
|
Total interest-bearing
liabilities |
|
$ |
15,196,378 |
|
|
$ |
14,724,871 |
|
|
$ |
14,560,665 |
|
|
$ |
14,035,880 |
|
|
$ |
13,793,892 |
|
Non-interest bearing
deposits |
|
4,939,746 |
|
|
4,776,977 |
|
|
4,473,632 |
|
|
3,725,728 |
|
|
3,584,452 |
|
Other liabilities |
|
377,019 |
|
|
375,719 |
|
|
334,254 |
|
|
328,878 |
|
|
321,906 |
|
Equity |
|
2,389,770 |
|
|
2,347,545 |
|
|
2,310,511 |
|
|
2,156,128 |
|
|
2,114,356 |
|
Total liabilities and shareholders’
equity |
|
$ |
22,902,913 |
|
|
$ |
22,225,112 |
|
|
$ |
21,679,062 |
|
|
$ |
20,246,614 |
|
|
$ |
19,814,606 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Net Interest Margin - 5 Quarter Trends |
|
|
|
Three Months Ended |
|
|
March 31,
2016 |
|
December 31,
2015 |
|
September 30,
2015 |
|
June 30,
2015 |
|
March 31,
2015 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Liquidity management
assets |
|
2.41 |
% |
|
2.28 |
% |
|
2.29 |
% |
|
2.36 |
% |
|
2.29 |
% |
Other earning assets |
|
3.31 |
|
|
3.26 |
|
|
3.00 |
|
|
3.54 |
|
|
2.94 |
|
Loans, net of unearned
income |
|
3.94 |
|
|
3.95 |
|
|
3.98 |
|
|
4.03 |
|
|
4.08 |
|
Covered loans |
|
5.72 |
|
|
4.79 |
|
|
5.91 |
|
|
6.30 |
|
|
6.98 |
|
Total earning assets |
|
3.71 |
% |
|
3.69 |
% |
|
3.73 |
% |
|
3.81 |
% |
|
3.83 |
% |
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
|
0.37 |
% |
|
0.37 |
% |
|
0.37 |
% |
|
0.37 |
% |
|
0.37 |
% |
Federal Home Loan Bank
advances |
|
1.41 |
|
|
2.41 |
|
|
2.47 |
|
|
2.15 |
|
|
2.52 |
|
Other borrowings |
|
1.65 |
|
|
1.48 |
|
|
1.52 |
|
|
1.63 |
|
|
1.64 |
|
Subordinated notes |
|
5.12 |
|
|
5.12 |
|
|
5.12 |
|
|
5.12 |
|
|
5.12 |
|
Junior subordinated
debentures |
|
3.41 |
|
|
3.20 |
|
|
3.14 |
|
|
3.13 |
|
|
3.10 |
|
Total interest-bearing
liabilities |
|
0.55 |
% |
|
0.55 |
% |
|
0.54 |
% |
|
0.52 |
% |
|
0.54 |
% |
Interest rate spread |
|
3.16 |
% |
|
3.14 |
% |
|
3.19 |
% |
|
3.29 |
% |
|
3.29 |
% |
Net free
funds/contribution |
|
0.16 |
|
|
0.15 |
|
|
0.14 |
|
|
0.12 |
|
|
0.13 |
|
Net interest income/Net
interest margin |
|
3.32 |
% |
|
3.29 |
% |
|
3.33 |
% |
|
3.41 |
% |
|
3.42 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Non-Interest Income - 5 Quarter Trends |
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands) |
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Brokerage |
|
$ |
6,057 |
|
|
$ |
6,850 |
|
|
$ |
6,579 |
|
|
$ |
6,750 |
|
|
$ |
6,852 |
|
Trust and asset
management |
|
12,263 |
|
|
11,784 |
|
|
11,664 |
|
|
11,726 |
|
|
11,248 |
|
Total wealth management |
|
18,320 |
|
|
18,634 |
|
|
18,243 |
|
|
18,476 |
|
|
18,100 |
|
Mortgage banking |
|
21,735 |
|
|
23,317 |
|
|
27,887 |
|
|
36,007 |
|
|
27,800 |
|
Service charges on deposit
accounts |
|
7,406 |
|
|
7,210 |
|
|
7,403 |
|
|
6,474 |
|
|
6,297 |
|
Gains (losses) on
available-for-sale securities, net |
|
1,325 |
|
|
(79 |
) |
|
(98 |
) |
|
(24 |
) |
|
524 |
|
Fees from covered call
options |
|
1,712 |
|
|
3,629 |
|
|
2,810 |
|
|
4,565 |
|
|
4,360 |
|
Trading (losses) gains,
net |
|
(168 |
) |
|
205 |
|
|
(135 |
) |
|
160 |
|
|
(477 |
) |
Operating lease income,
net |
|
2,806 |
|
|
1,973 |
|
|
613 |
|
|
77 |
|
|
65 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
4,438 |
|
|
2,343 |
|
|
2,606 |
|
|
2,347 |
|
|
2,191 |
|
BOLI |
|
472 |
|
|
1,463 |
|
|
212 |
|
|
2,180 |
|
|
766 |
|
Administrative services |
|
1,069 |
|
|
1,101 |
|
|
1,072 |
|
|
1,053 |
|
|
1,026 |
|
Gain on extinguishment of debt |
|
4,305 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Miscellaneous |
|
5,332 |
|
|
5,294 |
|
|
4,340 |
|
|
5,698 |
|
|
3,889 |
|
Total other income |
|
15,616 |
|
|
10,201 |
|
|
8,230 |
|
|
11,278 |
|
|
7,872 |
|
Total Non-Interest
Income |
|
$ |
68,752 |
|
|
$ |
65,090 |
|
|
$ |
64,953 |
|
|
$ |
77,013 |
|
|
$ |
64,541 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Non-Interest Expense - 5 Quarter Trends |
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands) |
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
50,282 |
|
|
$ |
50,982 |
|
|
$ |
53,028 |
|
|
$ |
46,617 |
|
|
$ |
46,848 |
|
Commissions and incentive
compensation |
|
26,375 |
|
|
31,222 |
|
|
30,065 |
|
|
33,387 |
|
|
25,494 |
|
Benefits |
|
19,154 |
|
|
17,576 |
|
|
14,686 |
|
|
14,417 |
|
|
17,788 |
|
Total salaries and
employee benefits |
|
95,811 |
|
|
99,780 |
|
|
97,749 |
|
|
94,421 |
|
|
90,130 |
|
Equipment |
|
8,767 |
|
|
8,799 |
|
|
8,456 |
|
|
7,855 |
|
|
7,779 |
|
Operating lease equipment
depreciation |
|
2,050 |
|
|
1,202 |
|
|
431 |
|
|
59 |
|
|
57 |
|
Occupancy, net |
|
11,948 |
|
|
13,062 |
|
|
12,066 |
|
|
11,401 |
|
|
12,351 |
|
Data processing |
|
6,519 |
|
|
7,284 |
|
|
8,127 |
|
|
6,081 |
|
|
5,448 |
|
Advertising and
marketing |
|
3,779 |
|
|
5,373 |
|
|
6,237 |
|
|
6,406 |
|
|
3,907 |
|
Professional fees |
|
4,059 |
|
|
4,387 |
|
|
4,100 |
|
|
5,074 |
|
|
4,664 |
|
Amortization of other
intangible assets |
|
1,298 |
|
|
1,324 |
|
|
1,350 |
|
|
934 |
|
|
1,013 |
|
FDIC insurance |
|
3,613 |
|
|
3,317 |
|
|
3,035 |
|
|
3,047 |
|
|
2,987 |
|
OREO expense, net |
|
560 |
|
|
2,598 |
|
|
(367 |
) |
|
841 |
|
|
1,411 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party
brokers |
|
1,310 |
|
|
1,321 |
|
|
1,364 |
|
|
1,403 |
|
|
1,386 |
|
Postage |
|
1,302 |
|
|
1,892 |
|
|
1,927 |
|
|
1,578 |
|
|
1,633 |
|
Miscellaneous |
|
12,714 |
|
|
16,490 |
|
|
15,499 |
|
|
15,197 |
|
|
14,552 |
|
Total other expense |
|
15,326 |
|
|
19,703 |
|
|
18,790 |
|
|
18,178 |
|
|
17,571 |
|
Total Non-Interest
Expense |
|
$ |
153,730 |
|
|
$ |
166,829 |
|
|
$ |
159,974 |
|
|
$ |
154,297 |
|
|
$ |
147,318 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Allowance for Credit Losses, excluding covered loans - 5
Quarter Trends |
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Allowance for loan
losses at beginning of period |
|
$ |
105,400 |
|
|
$ |
102,996 |
|
|
$ |
100,204 |
|
|
$ |
94,446 |
|
|
$ |
91,705 |
|
Provision for
credit losses |
|
8,423 |
|
|
9,196 |
|
|
8,665 |
|
|
9,701 |
|
|
6,185 |
|
Other
adjustments |
|
(78 |
) |
|
(243 |
) |
|
(153 |
) |
|
(93 |
) |
|
(248 |
) |
Reclassification
(to) from allowance for unfunded lending-related
commitments |
|
(81 |
) |
|
13 |
|
|
(42 |
) |
|
4 |
|
|
(113 |
) |
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
671 |
|
|
1,369 |
|
|
964 |
|
|
1,243 |
|
|
677 |
|
Commercial real estate |
|
671 |
|
|
2,734 |
|
|
1,948 |
|
|
856 |
|
|
1,005 |
|
Home equity |
|
1,052 |
|
|
680 |
|
|
1,116 |
|
|
1,847 |
|
|
584 |
|
Residential real estate |
|
493 |
|
|
211 |
|
|
1,138 |
|
|
923 |
|
|
631 |
|
Premium finance receivables -
commercial |
|
2,480 |
|
|
2,676 |
|
|
1,595 |
|
|
1,526 |
|
|
1,263 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
107 |
|
|
179 |
|
|
116 |
|
|
115 |
|
|
111 |
|
Total charge-offs |
|
5,474 |
|
|
7,849 |
|
|
6,877 |
|
|
6,510 |
|
|
4,271 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
629 |
|
|
315 |
|
|
462 |
|
|
285 |
|
|
370 |
|
Commercial real estate |
|
369 |
|
|
491 |
|
|
213 |
|
|
1,824 |
|
|
312 |
|
Home equity |
|
48 |
|
|
183 |
|
|
42 |
|
|
39 |
|
|
48 |
|
Residential real estate |
|
112 |
|
|
55 |
|
|
136 |
|
|
16 |
|
|
76 |
|
Premium finance receivables -
commercial |
|
787 |
|
|
223 |
|
|
278 |
|
|
458 |
|
|
329 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
16 |
|
|
— |
|
|
— |
|
Consumer and other |
|
36 |
|
|
20 |
|
|
52 |
|
|
34 |
|
|
53 |
|
Total recoveries |
|
1,981 |
|
|
1,287 |
|
|
1,199 |
|
|
2,656 |
|
|
1,118 |
|
Net
charge-offs |
|
(3,493 |
) |
|
(6,562 |
) |
|
(5,678 |
) |
|
(3,854 |
) |
|
(3,083 |
) |
Allowance for loan losses
at period end |
|
$ |
110,171 |
|
|
$ |
105,400 |
|
|
$ |
102,996 |
|
|
$ |
100,204 |
|
|
$ |
94,446 |
|
Allowance for unfunded
lending-related commitments at period end |
|
1,030 |
|
|
949 |
|
|
926 |
|
|
884 |
|
|
888 |
|
Allowance for credit losses
at period end |
|
$ |
111,201 |
|
|
$ |
106,349 |
|
|
$ |
103,922 |
|
|
$ |
101,088 |
|
|
$ |
95,334 |
|
Annualized net charge-offs
by category as a percentage of its own respective category’s
average: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
0.00 |
% |
|
0.09 |
% |
|
0.05 |
% |
|
0.09 |
% |
|
0.03 |
% |
Commercial real estate |
|
0.02 |
|
|
0.16 |
|
|
0.13 |
|
|
(0.08 |
) |
|
0.06 |
|
Home equity |
|
0.52 |
|
|
0.25 |
|
|
0.55 |
|
|
1.01 |
|
|
0.30 |
|
Residential real estate |
|
0.17 |
|
|
0.07 |
|
|
0.42 |
|
|
0.39 |
|
|
0.28 |
|
Premium finance receivables -
commercial |
|
0.29 |
|
|
0.41 |
|
|
0.21 |
|
|
0.18 |
|
|
0.16 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
0.20 |
|
|
0.37 |
|
|
0.17 |
|
|
0.23 |
|
|
0.13 |
|
Total loans, net of unearned
income, excluding covered loans |
|
0.08 |
% |
|
0.15 |
% |
|
0.14 |
% |
|
0.10 |
% |
|
0.08 |
% |
Net charge-offs as a
percentage of the provision for credit losses |
|
41.47 |
% |
|
71.35 |
% |
|
65.53 |
% |
|
39.73 |
% |
|
49.87 |
% |
Loans at
period-end |
|
$ |
17,446,413 |
|
|
$ |
17,118,117 |
|
|
$ |
16,316,211 |
|
|
$ |
15,513,650 |
|
|
$ |
14,953,059 |
|
Allowance for loan losses
as a percentage of loans at period end |
|
0.63 |
% |
|
0.62 |
% |
|
0.63 |
% |
|
0.65 |
% |
|
0.63 |
% |
Allowance for credit losses
as a percentage of loans at period end |
|
0.64 |
% |
|
0.62 |
% |
|
0.64 |
% |
|
0.65 |
% |
|
0.64 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Non-Performing Assets, excluding covered assets - 5 Quarter
Trends |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in thousands) |
2016 |
|
2015 |
|
2015 |
|
2015 |
|
2015 |
Loans past due
greater than 90 days and still
accruing(1): |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
338 |
|
|
$ |
541 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Commercial real estate |
1,260 |
|
|
— |
|
|
— |
|
|
701 |
|
|
— |
|
Home equity |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential real estate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Premium finance receivables -
commercial |
9,548 |
|
|
10,294 |
|
|
8,231 |
|
|
9,053 |
|
|
8,062 |
|
Premium finance receivables - life
insurance |
1,641 |
|
|
— |
|
|
— |
|
|
351 |
|
|
— |
|
Consumer and other |
180 |
|
|
150 |
|
|
140 |
|
|
110 |
|
|
91 |
|
Total loans past due greater than
90 days and still accruing |
12,967 |
|
|
10,985 |
|
|
8,371 |
|
|
10,215 |
|
|
8,153 |
|
Non-accrual
loans(2): |
|
|
|
|
|
|
|
|
|
Commercial |
12,373 |
|
|
12,712 |
|
|
12,018 |
|
|
5,394 |
|
|
5,586 |
|
Commercial real estate |
26,996 |
|
|
26,645 |
|
|
28,617 |
|
|
23,183 |
|
|
29,982 |
|
Home equity |
9,365 |
|
|
6,848 |
|
|
8,365 |
|
|
5,695 |
|
|
7,665 |
|
Residential real estate |
11,964 |
|
|
12,043 |
|
|
14,557 |
|
|
16,631 |
|
|
14,248 |
|
Premium finance receivables -
commercial |
15,350 |
|
|
14,561 |
|
|
13,751 |
|
|
15,156 |
|
|
15,902 |
|
Premium finance receivables - life
insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
484 |
|
|
263 |
|
|
297 |
|
|
280 |
|
|
236 |
|
Total non-accrual loans |
76,532 |
|
|
73,072 |
|
|
77,605 |
|
|
66,339 |
|
|
73,619 |
|
Total
non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
12,711 |
|
|
13,253 |
|
|
12,018 |
|
|
5,394 |
|
|
5,586 |
|
Commercial real estate |
28,256 |
|
|
26,645 |
|
|
28,617 |
|
|
23,884 |
|
|
29,982 |
|
Home equity |
9,365 |
|
|
6,848 |
|
|
8,365 |
|
|
5,695 |
|
|
7,665 |
|
Residential real estate |
11,964 |
|
|
12,043 |
|
|
14,557 |
|
|
16,631 |
|
|
14,248 |
|
Premium finance receivables -
commercial |
24,898 |
|
|
24,855 |
|
|
21,982 |
|
|
24,209 |
|
|
23,964 |
|
Premium finance receivables - life
insurance |
1,641 |
|
|
— |
|
|
— |
|
|
351 |
|
|
— |
|
Consumer and other |
664 |
|
|
413 |
|
|
437 |
|
|
390 |
|
|
327 |
|
Total non-performing loans |
$ |
89,499 |
|
|
$ |
84,057 |
|
|
$ |
85,976 |
|
|
$ |
76,554 |
|
|
$ |
81,772 |
|
Other real estate owned |
24,022 |
|
|
26,849 |
|
|
29,053 |
|
|
33,044 |
|
|
33,131 |
|
Other real estate owned - from
acquisitions |
16,980 |
|
|
17,096 |
|
|
22,827 |
|
|
9,036 |
|
|
9,126 |
|
Other repossessed assets |
171 |
|
|
174 |
|
|
193 |
|
|
231 |
|
|
259 |
|
Total non-performing assets |
$ |
130,672 |
|
|
$ |
128,176 |
|
|
$ |
138,049 |
|
|
$ |
118,865 |
|
|
$ |
124,288 |
|
TDRs performing under the
contractual terms of the loan agreement |
34,949 |
|
|
42,744 |
|
|
49,173 |
|
|
52,174 |
|
|
54,687 |
|
Total
non-performing loans by category as a percent of its own respective
category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
0.26 |
% |
|
0.28 |
% |
|
0.27 |
% |
|
0.12 |
% |
|
0.13 |
% |
Commercial real estate |
0.49 |
|
|
0.48 |
|
|
0.54 |
|
|
0.49 |
|
|
0.64 |
|
Home equity |
1.21 |
|
|
0.87 |
|
|
1.05 |
|
|
0.80 |
|
|
1.08 |
|
Residential real estate |
1.91 |
|
|
1.98 |
|
|
2.55 |
|
|
3.31 |
|
|
2.87 |
|
Premium finance receivables -
commercial |
1.07 |
|
|
1.05 |
|
|
0.91 |
|
|
0.98 |
|
|
1.03 |
|
Premium finance receivables - life
insurance |
0.06 |
|
|
— |
|
|
— |
|
|
0.01 |
|
|
— |
|
Consumer and other |
0.55 |
|
|
0.28 |
|
|
0.33 |
|
|
0.33 |
|
|
0.25 |
|
Total loans, net of unearned
income |
0.51 |
% |
|
0.49 |
% |
|
0.53 |
% |
|
0.49 |
% |
|
0.55 |
% |
Total non-performing assets
as a percentage of total assets |
0.56 |
% |
|
0.56 |
% |
|
0.63 |
% |
|
0.57 |
% |
|
0.61 |
% |
Allowance for loan losses
as a percentage of total non-performing loans |
123.10 |
% |
|
125.39 |
% |
|
119.79 |
% |
|
130.89 |
% |
|
115.50 |
% |
(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 $17.6
million, $9.1 million, $10.1 million, $10.6 million and $12.5
million as of March 31, 2016, December 31, 2015,
September 30, 2015, June 30, 2015 and March 31, 2015,
respectively.
FOR MORE INFORMATION CONTACT:
Edward J. Wehmer, President & Chief Executive Officer
David A. Dykstra, Senior Executive Vice President & Chief Operating Officer
(847) 939-9000
Web site address: www.wintrust.com
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