ROSEMONT, Ill., Oct. 17, 2016 (GLOBE NEWSWIRE)
-- Wintrust Financial Corporation (“Wintrust” or “the Company”)
(Nasdaq:WTFC) announced net income of $53.1 million or $0.92 per
diluted common share for the third quarter of 2016 compared to net
income of $50.0 million or $0.90 per diluted common share for the
second quarter of 2016 and $38.4 million or $0.69 per diluted
common share for the third quarter of 2015. The Company recorded
net income of $152.3 million or $2.72 per diluted common share for
the first nine months of 2016 compared to net income of $121.2
million or $2.29 per diluted common share for the same period of
2015.
Highlights of the Third Quarter of 2016
*:
- Total assets increased by 15% on an annualized basis and now
exceed $25 billion.
- Total loans, excluding covered loans and mortgage loans
held-for-sale, increased by $927 million, or 20% on an annualized
basis, to $19.1 billion. Loan growth included $555 million of
select performing loans acquired from an affiliate of GE Capital
Franchise Finance, which was completed in mid-August.
- Total deposits increased by $1.1 billion, or 22% on an
annualized basis, to $21.1 billion. Non-interest bearing deposit
accounts comprise 27% of total deposits.
- Mortgage banking revenue remained strong, totaling $34.7
million during the third quarter as origination volumes increased
to $1.3 billion in the third quarter compared to $1.2 billion in
the second quarter.
- Net overhead ratio improved to 1.44% from 1.46% remaining below
our stated goal of 1.50%.
- Non-performing loans as a percentage of total loans, excluding
covered loans, decreased to 0.44% from 0.48% and the allowance for
loan losses as a percentage of total non-performing loans,
excluding covered loans, increased to 142% from 130%.
- Net interest income increased $9.4 million primarily as a
result of earning assets growth. Although loan yields increased,
net interest margin dropped 3 basis points primarily due to a
decrease in yields on liquidity management assets brought about by
market conditions.
- Gains on investment securities totaled $3.3 million.
- Recorded a $2.5 million negative fair value adjustment related
to mortgage servicing rights assets.
- Recorded a $1.8 million charge related to outstanding legal
disputes, including a $1.5 million adverse arbitration award
relating to a previously disclosed claim.
* See "Supplemental Financial
Measures/Ratios" on pages 10-11 for more information on
non-GAAP measures.
Edward J. Wehmer, President and Chief Executive
Officer, commented, “The growth engine at Wintrust continued its
momentum into the third quarter as we recorded nearly $1 billion of
asset growth while controlling operating expenses as evidenced by
the improvement of our net overhead ratio to 1.44% for the quarter.
All aspects of our business performed solidly in the third quarter
as evidenced by our record level of net income. Continued strong
loan growth and mortgage banking operations, improved credit
quality metrics and an improved net overhead ratio fueled the
record results this quarter."
Mr. Wehmer continued, “Excluding covered loans
and mortgage loans held-for-sale, our loan portfolio grew by $927
million during the third quarter, which included $555 million of
select performing loans and related relationships acquired from an
affiliate of GE Capital Franchise Finance. The increased loan
volumes offset compression in the net interest margin during the
quarter due to a reduction in yield on liquidity management assets,
resulting in an increase in net interest income of $9.4 million.
Our loan pipelines remain consistently strong and we are well
positioned for rising interest rates in the future. Deposit growth
continued to be strong in the third quarter of 2016 as deposits
increased $1.1 billion and exceeded $21 billion as of the end of
the third quarter. Total deposit growth included $343 million of
growth from demand deposits, which now totals $5.7 billion and
comprises 27% of our overall deposit base."
Commenting on credit quality, Mr. Wehmer noted,
“During the third quarter of 2016, the Company has continued its
practice of timely addressing and resolving non-performing credits.
Total non-performing assets, excluding covered assets, decreased by
$8.0 million during the third quarter of 2016 resulting in
non-performing assets as a percentage of total assets dropping from
0.52% to 0.47% during the period. Additionally, the allowance for
loan losses as a percentage of non-performing loans, excluding
covered loans, increased to 142% during the third quarter,
exhibiting greater coverage for those non-performing credits. We
believe that the Company's reserves remain appropriate."
Mr. Wehmer further commented, “Mortgage banking
revenue in the third quarter totaled $34.7 million, a decrease of
$2.1 million compared to the second quarter of 2016. Revenue for
the third quarter of 2016 was negatively impacted by a $2.5 million
valuation adjustment on mortgage servicing rights assets. Our
mortgage operations experienced record origination volumes in the
third quarter totaling $1.3 billion for the period compared to $1.2
billion during the second quarter of 2016. We expect normal
seasonality in the fourth quarter, although our mortgage loan
pipelines remain strong."
Turning to the future, Mr. Wehmer stated,
“Wintrust is continuing 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. We expect continued growth and momentum in all
areas of our business. The acquisition of select performing loans
from an affiliate of GE Capital Franchise Finance is expected to
help expand our franchise lending business. Also, the previously
announced acquisition of First Community Financial Corporation
located in Elgin, Illinois is expected to be completed in the
fourth quarter of 2016. 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."
The graphs below illustrate certain highlights of the third
quarter of 2016.
http://www.globenewswire.com/NewsRoom/AttachmentNg/bb0f7074-45ca-4514-885d-01698412ae61
Wintrust’s key operating measures and growth
rates for the third quarter of 2016, as compared to the
sequential and linked quarters, are shown in the table below:
|
|
|
|
|
|
|
|
% or(4)
basis point (bp)change from
2nd Quarter
2016 |
|
% or
basis point (bp)
change from
3rd Quarter
2015 |
|
|
Three Months Ended |
|
|
(Dollars in thousands) |
|
September 30,
2016 |
|
June 30,
2016 |
|
September 30,
2015 |
|
|
Net income |
|
$ |
53,115 |
|
|
$ |
50,041 |
|
|
$ |
38,355 |
|
|
6 |
|
% |
|
38 |
|
% |
Net income per common
share – diluted |
|
$ |
0.92 |
|
|
$ |
0.90 |
|
|
$ |
0.69 |
|
|
2 |
|
% |
|
33 |
|
% |
Net revenue
(1) |
|
$ |
271,240 |
|
|
$ |
260,069 |
|
|
$ |
230,493 |
|
|
4 |
|
% |
|
18 |
|
% |
Net interest income |
|
$ |
184,636 |
|
|
$ |
175,270 |
|
|
$ |
165,540 |
|
|
5 |
|
% |
|
12 |
|
% |
Net interest
margin |
|
3.21 |
% |
|
3.24 |
% |
|
3.31 |
% |
|
(3 |
) |
bp |
|
(10 |
) |
bp |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
|
3.24 |
% |
|
3.27 |
% |
|
3.33 |
% |
|
(3 |
) |
bp |
|
(9 |
) |
bp |
Net overhead ratio
(3) |
|
1.44 |
% |
|
1.46 |
% |
|
1.74 |
% |
|
(2 |
) |
bp |
|
(30 |
) |
bp |
Return on average
assets |
|
0.85 |
% |
|
0.85 |
% |
|
0.70 |
% |
|
— |
|
bp |
|
15 |
|
bp |
Return on average common
equity |
|
8.20 |
% |
|
8.43 |
% |
|
6.60 |
% |
|
(23 |
) |
bp |
|
160 |
|
bp |
Return on average tangible common equity (non-GAAP)
(2) |
|
10.55 |
% |
|
11.12 |
% |
|
8.88 |
% |
|
(57 |
) |
bp |
|
167 |
|
bp |
At end of
period |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
25,321,759 |
|
|
$ |
24,420,616 |
|
|
$ |
22,035,216 |
|
|
15 |
|
% |
|
15 |
|
% |
Total loans, excluding
loans held-for-sale, excluding covered loans |
|
19,101,261 |
|
|
18,174,655 |
|
|
16,316,211 |
|
|
20 |
|
% |
|
17 |
|
% |
Total loans, including
loans held-for-sale, excluding covered loans |
|
19,660,895 |
|
|
18,728,911 |
|
|
16,663,216 |
|
|
20 |
|
% |
|
18 |
|
% |
Total deposits |
|
21,147,655 |
|
|
20,041,750 |
|
|
18,228,469 |
|
|
22 |
|
% |
|
16 |
|
% |
Total shareholders’ equity |
|
2,674,474 |
|
|
2,623,595 |
|
|
2,335,736 |
|
|
8 |
|
% |
|
15 |
|
% |
|
(1 |
) |
Net
revenue is net interest income plus non-interest
income.
|
|
(2 |
) |
See
"Supplemental Financial Measures/Ratios" for additional information
on this performance measure/ratio.
|
|
(3 |
) |
The net
overhead ratio is calculated by netting total non-interest expense
and total non-interest income, annualizing this amount, and
dividing by that period's average total assets. A lower ratio
indicates a higher degree of efficiency.
|
|
(4 |
) |
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.”
WINTRUST FINANCIAL CORPORATION
Selected Financial Highlights
|
|
Three Months Ended |
|
Nine Months Ended |
(Dollars in thousands, except per
share data) |
|
September 30,
2016 |
|
June 30,
2016 |
|
September 30,
2015 |
|
September 30,
2016 |
|
September 30,
2015 |
Selected Financial
Condition Data (at end of period): |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
25,321,759 |
|
|
$ |
24,420,616 |
|
|
$ |
22,035,216 |
|
|
|
|
|
Total loans, excluding
loans held-for-sale and covered loans |
|
19,101,261 |
|
|
18,174,655 |
|
|
16,316,211 |
|
|
|
|
|
Total deposits |
|
21,147,655 |
|
|
20,041,750 |
|
|
18,228,469 |
|
|
|
|
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
268,566 |
|
|
|
|
|
Total shareholders’
equity |
|
2,674,474 |
|
|
2,623,595 |
|
|
2,335,736 |
|
|
|
|
|
Selected
Statements of Income Data: |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
184,636 |
|
|
$ |
175,270 |
|
|
$ |
165,540 |
|
|
$ |
531,415 |
|
|
$ |
474,323 |
|
Net revenue
(1) |
|
271,240 |
|
|
260,069 |
|
|
230,493 |
|
|
771,570 |
|
|
680,830 |
|
Net income |
|
53,115 |
|
|
50,041 |
|
|
38,355 |
|
|
152,267 |
|
|
121,238 |
|
Net income per common
share – Basic |
|
$ |
0.96 |
|
|
$ |
0.94 |
|
|
$ |
0.71 |
|
|
$ |
2.84 |
|
|
$ |
2.39 |
|
Net income per common
share – Diluted |
|
$ |
0.92 |
|
|
$ |
0.90 |
|
|
$ |
0.69 |
|
|
$ |
2.72 |
|
|
$ |
2.29 |
|
Selected Financial
Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
3.21 |
% |
|
3.24 |
% |
|
3.31 |
% |
|
3.25 |
% |
|
3.36 |
% |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
|
3.24 |
% |
|
3.27 |
% |
|
3.33 |
% |
|
3.27 |
% |
|
3.39 |
% |
Non-interest income to
average assets |
|
1.38 |
% |
|
1.44 |
% |
|
1.19 |
% |
|
1.35 |
% |
|
1.34 |
% |
Non-interest expense to
average assets |
|
2.82 |
% |
|
2.89 |
% |
|
2.93 |
% |
|
2.81 |
% |
|
3.00 |
% |
Net overhead ratio
(3) |
|
1.44 |
% |
|
1.46 |
% |
|
1.74 |
% |
|
1.46 |
% |
|
1.66 |
% |
Return on average
assets |
|
0.85 |
% |
|
0.85 |
% |
|
0.70 |
% |
|
0.85 |
% |
|
0.79 |
% |
Return on average common
equity |
|
8.20 |
% |
|
8.43 |
% |
|
6.60 |
% |
|
8.39 |
% |
|
7.53 |
% |
Return on average tangible
common equity (non-GAAP) (2) |
|
10.55 |
% |
|
11.12 |
% |
|
8.88 |
% |
|
10.98 |
% |
|
9.90 |
% |
Average total assets |
|
$ |
24,879,252 |
|
|
$ |
23,754,755 |
|
|
$ |
21,679,062 |
|
|
$ |
23,849,412 |
|
|
$ |
20,586,924 |
|
Average total
shareholders’ equity |
|
2,651,684 |
|
|
2,465,732 |
|
|
2,310,511 |
|
|
2,502,940 |
|
|
2,194,384 |
|
Average loans to average
deposits ratio (excluding loans held-for-sale, excluding covered
loans) |
|
89.8 |
% |
|
92.4 |
% |
|
89.7 |
% |
|
91.4 |
% |
|
89.8 |
% |
Average loans to average
deposits ratio (excluding loans held-for-sale, including covered
loans) |
|
90.3 |
% |
|
92.9 |
% |
|
90.6 |
% |
|
92.0 |
% |
|
91.0 |
% |
Common Share Data at
end of period: |
|
|
|
|
|
|
|
|
|
|
Market price per common
share |
|
$ |
55.57 |
|
|
$ |
51.00 |
|
|
$ |
53.43 |
|
|
|
|
|
Book value per common
share (2) |
|
$ |
46.86 |
|
|
$ |
45.96 |
|
|
$ |
43.12 |
|
|
|
|
|
Tangible common book
value per share (2) |
|
$ |
37.06 |
|
|
$ |
36.12 |
|
|
$ |
32.83 |
|
|
|
|
|
Common shares
outstanding |
|
51,714,683 |
|
|
51,619,155 |
|
|
48,336,870 |
|
|
|
|
|
Other Data at end
of period:(6) |
|
|
|
|
|
|
|
|
|
|
Leverage Ratio
(4) |
|
9.0 |
% |
|
9.2 |
% |
|
9.2 |
% |
|
|
|
|
Tier 1 capital to
risk-weighted assets (4) |
|
9.8 |
% |
|
10.1 |
% |
|
10.3 |
% |
|
|
|
|
Common equity Tier 1
capital to risk-weighted assets (4) |
|
8.7 |
% |
|
8.9 |
% |
|
8.6 |
% |
|
|
|
|
Total capital to
risk-weighted assets (4) |
|
12.1 |
% |
|
12.4 |
% |
|
12.6 |
% |
|
|
|
|
Allowance for credit
losses (5) |
|
$ |
119,341 |
|
|
$ |
115,426 |
|
|
$ |
103,922 |
|
|
|
|
|
Non-performing loans |
|
$ |
83,128 |
|
|
$ |
88,119 |
|
|
$ |
85,976 |
|
|
|
|
|
Allowance for credit
losses to total loans (5) |
|
0.62 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
|
|
|
Non-performing loans to
total loans |
|
0.44 |
% |
|
0.48 |
% |
|
0.53 |
% |
|
|
|
|
Number of: |
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
|
|
|
Banking offices |
|
152 |
|
|
153 |
|
|
160 |
|
|
|
|
|
|
(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 |
) |
Capital
ratios for current quarter-end are estimated. As of January
1, 2015 capital ratios are calculated under the requirements of
Basel III.
|
|
(5 |
) |
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.
|
|
(6 |
) |
Asset
quality ratios exclude covered loans.
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
|
|
(Unaudited) |
|
|
|
(Unaudited) |
(In thousands) |
|
September 30,
2016 |
|
December 31,
2015 |
|
September 30,
2015 |
Assets |
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
242,825 |
|
|
$ |
271,454 |
|
|
$ |
247,341 |
|
Federal funds sold and
securities purchased under resale agreements |
|
4,122 |
|
|
4,341 |
|
|
3,314 |
|
Interest bearing deposits
with banks |
|
816,104 |
|
|
607,782 |
|
|
701,106 |
|
Available-for-sale
securities, at fair value |
|
1,650,096 |
|
|
1,716,388 |
|
|
2,214,281 |
|
Held-to-maturity
securities, at amortized cost |
|
932,767 |
|
|
884,826 |
|
|
— |
|
Trading account
securities |
|
1,092 |
|
|
448 |
|
|
3,312 |
|
Federal Home Loan Bank and
Federal Reserve Bank stock |
|
129,630 |
|
|
101,581 |
|
|
90,308 |
|
Brokerage customer
receivables |
|
25,511 |
|
|
27,631 |
|
|
28,293 |
|
Mortgage loans
held-for-sale |
|
559,634 |
|
|
388,038 |
|
|
347,005 |
|
Loans, net of unearned
income, excluding covered loans |
|
19,101,261 |
|
|
17,118,117 |
|
|
16,316,211 |
|
Covered loans |
|
95,940 |
|
|
148,673 |
|
|
168,609 |
|
Total loans |
|
19,197,201 |
|
|
17,266,790 |
|
|
16,484,820 |
|
Allowance for loan losses |
|
(117,693 |
) |
|
(105,400 |
) |
|
(102,996 |
) |
Allowance for covered loan
losses |
|
(1,422 |
) |
|
(3,026 |
) |
|
(2,918 |
) |
Net loans |
|
19,078,086 |
|
|
17,158,364 |
|
|
16,378,906 |
|
Premises and equipment,
net |
|
597,263 |
|
|
592,256 |
|
|
587,348 |
|
Lease investments,
net |
|
116,355 |
|
|
63,170 |
|
|
29,111 |
|
Accrued interest
receivable and other assets |
|
660,923 |
|
|
597,099 |
|
|
629,211 |
|
Trade date securities
receivable |
|
677 |
|
|
— |
|
|
277,981 |
|
Goodwill |
|
485,938 |
|
|
471,761 |
|
|
472,166 |
|
Other intangible
assets |
|
20,736 |
|
|
24,209 |
|
|
25,533 |
|
Total assets |
|
$ |
25,321,759 |
|
|
$ |
22,909,348 |
|
|
$ |
22,035,216 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,711,042 |
|
|
$ |
4,836,420 |
|
|
$ |
4,705,994 |
|
Interest bearing |
|
15,436,613 |
|
|
13,803,214 |
|
|
13,522,475 |
|
Total deposits |
|
21,147,655 |
|
|
18,639,634 |
|
|
18,228,469 |
|
Federal Home Loan Bank
advances |
|
419,632 |
|
|
853,431 |
|
|
443,955 |
|
Other borrowings |
|
241,366 |
|
|
265,785 |
|
|
259,805 |
|
Subordinated notes |
|
138,943 |
|
|
138,861 |
|
|
138,834 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
268,566 |
|
|
268,566 |
|
Trade date securities
payable |
|
— |
|
|
538 |
|
|
617 |
|
Accrued interest payable
and other liabilities |
|
446,123 |
|
|
390,259 |
|
|
359,234 |
|
Total liabilities |
|
22,647,285 |
|
|
20,557,074 |
|
|
19,699,480 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
Preferred stock |
|
251,257 |
|
|
251,287 |
|
|
251,312 |
|
Common stock |
|
51,811 |
|
|
48,469 |
|
|
48,422 |
|
Surplus |
|
1,356,759 |
|
|
1,190,988 |
|
|
1,187,407 |
|
Treasury stock |
|
(4,522 |
) |
|
(3,973 |
) |
|
(3,964 |
) |
Retained earnings |
|
1,051,748 |
|
|
928,211 |
|
|
901,652 |
|
Accumulated other comprehensive
loss |
|
(32,579 |
) |
|
(62,708 |
) |
|
(49,093 |
) |
Total shareholders’ equity |
|
2,674,474 |
|
|
2,352,274 |
|
|
2,335,736 |
|
Total liabilities and
shareholders’ equity |
|
$ |
25,321,759 |
|
|
$ |
22,909,348 |
|
|
$ |
22,035,216 |
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|
Three Months Ended |
|
Nine Months Ended |
(In thousands, except per share
data) |
September 30,
2016 |
|
June 30,
2016 |
|
September 30,
2015 |
|
September 30,
2016 |
|
September 30,
2015 |
Interest
income |
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
190,189 |
|
|
$ |
178,530 |
|
|
$ |
167,831 |
|
|
$ |
541,846 |
|
|
$ |
482,330 |
|
Interest bearing deposits with
banks |
1,156 |
|
|
793 |
|
|
372 |
|
|
2,695 |
|
|
993 |
|
Federal funds sold and securities
purchased under resale agreements |
1 |
|
|
1 |
|
|
1 |
|
|
3 |
|
|
4 |
|
Investment securities |
15,496 |
|
|
16,398 |
|
|
16,130 |
|
|
49,084 |
|
|
44,601 |
|
Trading account securities |
18 |
|
|
14 |
|
|
19 |
|
|
43 |
|
|
83 |
|
Federal Home Loan Bank and Federal
Reserve Bank stock |
1,094 |
|
|
1,112 |
|
|
821 |
|
|
3,143 |
|
|
2,375 |
|
Brokerage customer receivables |
195 |
|
|
216 |
|
|
205 |
|
|
630 |
|
|
591 |
|
Total interest income |
208,149 |
|
|
197,064 |
|
|
185,379 |
|
|
597,444 |
|
|
530,977 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
Interest on deposits |
15,621 |
|
|
13,594 |
|
|
12,436 |
|
|
41,996 |
|
|
36,246 |
|
Interest on Federal Home Loan Bank
advances |
2,577 |
|
|
2,984 |
|
|
2,458 |
|
|
8,447 |
|
|
6,426 |
|
Interest on other borrowings |
1,137 |
|
|
1,086 |
|
|
1,045 |
|
|
3,281 |
|
|
2,620 |
|
Interest on subordinated notes |
1,778 |
|
|
1,777 |
|
|
1,776 |
|
|
5,332 |
|
|
5,328 |
|
Interest on junior subordinated
debentures |
2,400 |
|
|
2,353 |
|
|
2,124 |
|
|
6,973 |
|
|
6,034 |
|
Total interest expense |
23,513 |
|
|
21,794 |
|
|
19,839 |
|
|
66,029 |
|
|
56,654 |
|
Net interest
income |
184,636 |
|
|
175,270 |
|
|
165,540 |
|
|
531,415 |
|
|
474,323 |
|
Provision for credit
losses |
9,571 |
|
|
9,129 |
|
|
8,322 |
|
|
26,734 |
|
|
23,883 |
|
Net interest income after
provision for credit losses |
175,065 |
|
|
166,141 |
|
|
157,218 |
|
|
504,681 |
|
|
450,440 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
Wealth management |
19,334 |
|
|
18,852 |
|
|
18,243 |
|
|
56,506 |
|
|
54,819 |
|
Mortgage banking |
34,712 |
|
|
36,807 |
|
|
27,887 |
|
|
93,254 |
|
|
91,694 |
|
Service charges on deposit
accounts |
8,024 |
|
|
7,726 |
|
|
7,403 |
|
|
23,156 |
|
|
20,174 |
|
Gains (losses) on investment
securities, net |
3,305 |
|
|
1,440 |
|
|
(98 |
) |
|
6,070 |
|
|
402 |
|
Fees from covered call options |
3,633 |
|
|
4,649 |
|
|
2,810 |
|
|
9,994 |
|
|
11,735 |
|
Trading losses, net |
(432 |
) |
|
(316 |
) |
|
(135 |
) |
|
(916 |
) |
|
(452 |
) |
Operating lease income, net |
4,459 |
|
|
4,005 |
|
|
613 |
|
|
11,270 |
|
|
755 |
|
Other |
13,569 |
|
|
11,636 |
|
|
8,230 |
|
|
40,821 |
|
|
27,380 |
|
Total non-interest income |
86,604 |
|
|
84,799 |
|
|
64,953 |
|
|
240,155 |
|
|
206,507 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
103,718 |
|
|
100,894 |
|
|
97,749 |
|
|
300,423 |
|
|
282,300 |
|
Equipment |
9,449 |
|
|
9,307 |
|
|
8,456 |
|
|
27,523 |
|
|
24,090 |
|
Operating lease equipment
depreciation |
3,605 |
|
|
3,385 |
|
|
431 |
|
|
9,040 |
|
|
547 |
|
Occupancy, net |
12,767 |
|
|
11,943 |
|
|
12,066 |
|
|
36,658 |
|
|
35,818 |
|
Data processing |
7,432 |
|
|
7,138 |
|
|
8,127 |
|
|
21,089 |
|
|
19,656 |
|
Advertising and marketing |
7,365 |
|
|
6,941 |
|
|
6,237 |
|
|
18,085 |
|
|
16,550 |
|
Professional fees |
5,508 |
|
|
5,419 |
|
|
4,100 |
|
|
14,986 |
|
|
13,838 |
|
Amortization of other intangible
assets |
1,085 |
|
|
1,248 |
|
|
1,350 |
|
|
3,631 |
|
|
3,297 |
|
FDIC insurance |
3,686 |
|
|
4,040 |
|
|
3,035 |
|
|
11,339 |
|
|
9,069 |
|
OREO expense, net |
1,436 |
|
|
1,348 |
|
|
(367 |
) |
|
3,344 |
|
|
1,885 |
|
Other |
20,564 |
|
|
19,306 |
|
|
18,790 |
|
|
55,196 |
|
|
54,539 |
|
Total non-interest expense |
176,615 |
|
|
170,969 |
|
|
159,974 |
|
|
501,314 |
|
|
461,589 |
|
Income before taxes |
85,054 |
|
|
79,971 |
|
|
62,197 |
|
|
243,522 |
|
|
195,358 |
|
Income tax expense |
31,939 |
|
|
29,930 |
|
|
23,842 |
|
|
91,255 |
|
|
74,120 |
|
Net
income |
$ |
53,115 |
|
|
$ |
50,041 |
|
|
$ |
38,355 |
|
|
$ |
152,267 |
|
|
$ |
121,238 |
|
Preferred stock dividends
and discount accretion |
3,628 |
|
|
3,628 |
|
|
4,079 |
|
|
10,884 |
|
|
7,240 |
|
Net income
applicable to common shares |
$ |
49,487 |
|
|
$ |
46,413 |
|
|
$ |
34,276 |
|
|
$ |
141,383 |
|
|
$ |
113,998 |
|
Net income per
common share - Basic |
$ |
0.96 |
|
|
$ |
0.94 |
|
|
$ |
0.71 |
|
|
$ |
2.84 |
|
|
$ |
2.39 |
|
Net income per
common share - Diluted |
$ |
0.92 |
|
|
$ |
0.90 |
|
|
$ |
0.69 |
|
|
$ |
2.72 |
|
|
$ |
2.29 |
|
Cash dividends
declared per common share |
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.11 |
|
|
$ |
0.36 |
|
|
$ |
0.33 |
|
Weighted average common
shares outstanding |
51,679 |
|
|
49,140 |
|
|
48,158 |
|
|
49,763 |
|
|
47,658 |
|
Dilutive potential common
shares |
4,047 |
|
|
3,965 |
|
|
4,049 |
|
|
3,931 |
|
|
4,141 |
|
Average common shares and
dilutive common shares |
55,726 |
|
|
53,105 |
|
|
52,207 |
|
|
53,694 |
|
|
51,799 |
|
EARNINGS PER SHARE
The following table shows the computation of
basic and diluted earnings per share for the periods indicated:
|
|
|
Three Months Ended |
|
Nine Months Ended |
(In thousands, except per share
data) |
|
|
September 30,
2016 |
|
June 30,
2016 |
|
September 30,
2015 |
|
September 30,
2016 |
|
September 30,
2015 |
Net income |
|
|
$ |
53,115 |
|
|
$ |
50,041 |
|
|
$ |
38,355 |
|
|
$ |
152,267 |
|
|
$ |
121,238 |
|
Less: Preferred stock
dividends and discount accretion |
|
|
3,628 |
|
|
3,628 |
|
|
4,079 |
|
|
10,884 |
|
|
7,240 |
|
Net income applicable to
common shares—Basic |
(A) |
|
49,487 |
|
|
46,413 |
|
|
34,276 |
|
|
141,383 |
|
|
113,998 |
|
Add: Dividends on
convertible preferred stock, if dilutive |
|
|
1,578 |
|
|
1,578 |
|
|
1,579 |
|
|
4,735 |
|
|
4,740 |
|
Net income applicable to
common shares—Diluted |
(B) |
|
51,065 |
|
|
47,991 |
|
|
35,855 |
|
|
146,118 |
|
|
118,738 |
|
Weighted average common
shares outstanding |
(C) |
|
51,679 |
|
|
49,140 |
|
|
48,158 |
|
|
49,763 |
|
|
47,658 |
|
Effect of dilutive
potential common shares: |
|
|
|
|
|
|
|
|
|
|
|
Common stock equivalents |
|
|
938 |
|
|
856 |
|
|
978 |
|
|
822 |
|
|
1,070 |
|
Convertible preferred stock, if
dilutive |
|
|
3,109 |
|
|
3,109 |
|
|
3,071 |
|
|
3,109 |
|
|
3,071 |
|
Weighted average common
shares and effect of dilutive potential common shares |
(D) |
|
55,726 |
|
|
53,105 |
|
|
52,207 |
|
|
53,694 |
|
|
51,799 |
|
Net income per common
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
(A/C) |
|
$ |
0.96 |
|
|
$ |
0.94 |
|
|
$ |
0.71 |
|
|
$ |
2.84 |
|
|
$ |
2.39 |
|
Diluted |
(B/D) |
|
$ |
0.92 |
|
|
$ |
0.90 |
|
|
$ |
0.69 |
|
|
$ |
2.72 |
|
|
$ |
2.29 |
|
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.
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 |
|
Nine Months Ended |
(Dollars and shares in
thousands) |
September 30,
2016 |
|
June 30,
2016 |
|
March 31,
2016 |
|
December 31,
2015 |
|
September 30,
2015 |
|
September 30,
2016 |
|
September 30,
2015 |
Calculation of Net
Interest Margin and Efficiency Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Interest
Income (GAAP) |
$ |
208,149 |
|
|
$ |
197,064 |
|
|
$ |
192,231 |
|
|
$ |
187,487 |
|
|
$ |
185,379 |
|
|
$ |
597,444 |
|
|
$ |
530,977 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
- Loans |
584 |
|
|
523 |
|
|
509 |
|
|
430 |
|
|
346 |
|
|
1,616 |
|
|
1,001 |
|
- Liquidity Management Assets |
963 |
|
|
932 |
|
|
920 |
|
|
866 |
|
|
841 |
|
|
2,815 |
|
|
2,355 |
|
- Other Earning Assets |
9 |
|
|
8 |
|
|
6 |
|
|
13 |
|
|
10 |
|
|
23 |
|
|
44 |
|
(B) Interest
Income - FTE |
$ |
209,705 |
|
|
$ |
198,527 |
|
|
$ |
193,666 |
|
|
$ |
188,796 |
|
|
$ |
186,576 |
|
|
$ |
601,898 |
|
|
$ |
534,377 |
|
(C) Interest
Expense (GAAP) |
23,513 |
|
|
21,794 |
|
|
20,722 |
|
|
20,281 |
|
|
19,839 |
|
|
66,029 |
|
|
56,654 |
|
(D) Net Interest
Income - FTE (B minus C) |
$ |
186,192 |
|
|
$ |
176,733 |
|
|
$ |
172,944 |
|
|
$ |
168,515 |
|
|
$ |
166,737 |
|
|
$ |
535,869 |
|
|
$ |
477,723 |
|
(E) Net Interest
Income (GAAP) (A minus C) |
$ |
184,636 |
|
|
$ |
175,270 |
|
|
$ |
171,509 |
|
|
$ |
167,206 |
|
|
$ |
165,540 |
|
|
$ |
531,415 |
|
|
$ |
474,323 |
|
Net interest
margin (GAAP-derived) |
3.21 |
% |
|
3.24 |
% |
|
3.29 |
% |
|
3.26 |
% |
|
3.31 |
% |
|
3.25 |
% |
|
3.36 |
% |
Net interest margin - FTE |
3.24 |
% |
|
3.27 |
% |
|
3.32 |
% |
|
3.29 |
% |
|
3.33 |
% |
|
3.27 |
% |
|
3.39 |
% |
(F) Non-interest
income |
$ |
86,604 |
|
|
$ |
84,799 |
|
|
$ |
68,752 |
|
|
$ |
65,090 |
|
|
$ |
64,953 |
|
|
$ |
240,155 |
|
|
$ |
206,507 |
|
(G) Gains (losses) on
investment securities, net |
3,305 |
|
|
1,440 |
|
|
1,325 |
|
|
(79 |
) |
|
(98 |
) |
|
6,070 |
|
|
402 |
|
(H) Non-interest
expense |
176,615 |
|
|
170,969 |
|
|
153,730 |
|
|
166,829 |
|
|
159,974 |
|
|
501,314 |
|
|
461,589 |
|
Efficiency ratio
(H/(E+F-G)) |
65.92 |
% |
|
66.11 |
% |
|
64.34 |
% |
|
71.79 |
% |
|
69.38 |
% |
|
65.49 |
% |
|
67.84 |
% |
Efficiency ratio -
FTE (H/(D+F-G)) |
65.54 |
% |
|
65.73 |
% |
|
63.96 |
% |
|
71.39 |
% |
|
69.02 |
% |
|
65.11 |
% |
|
67.50 |
% |
Calculation of Tangible Common Equity
ratio (at period end) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
2,674,474 |
|
|
$ |
2,623,595 |
|
|
$ |
2,418,442 |
|
|
$ |
2,352,274 |
|
|
$ |
2,335,736 |
|
|
|
|
|
(I) Less: Convertible
preferred stock |
(126,257 |
) |
|
(126,257 |
) |
|
(126,257 |
) |
|
(126,287 |
) |
|
(126,312 |
) |
|
|
|
|
Less:
Non-convertible preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
|
|
|
Less: Intangible
assets |
(506,674 |
) |
|
(507,916 |
) |
|
(508,005 |
) |
|
(495,970 |
) |
|
(497,699 |
) |
|
|
|
|
(J) Total tangible common
shareholders’ equity |
$ |
1,916,543 |
|
|
$ |
1,864,422 |
|
|
$ |
1,659,180 |
|
|
$ |
1,605,017 |
|
|
$ |
1,586,725 |
|
|
|
|
|
Total assets |
$ |
25,321,759 |
|
|
$ |
24,420,616 |
|
|
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
|
$ |
22,035,216 |
|
|
|
|
|
Less: Intangible
assets |
(506,674 |
) |
|
(507,916 |
) |
|
(508,005 |
) |
|
(495,970 |
) |
|
(497,699 |
) |
|
|
|
|
(K) Total tangible
assets |
$ |
24,815,085 |
|
|
$ |
23,912,700 |
|
|
$ |
22,980,163 |
|
|
$ |
22,413,378 |
|
|
$ |
21,537,517 |
|
|
|
|
|
Tangible common
equity ratio (J/K) |
7.7 |
% |
|
7.8 |
% |
|
7.2 |
% |
|
7.2 |
% |
|
7.4 |
% |
|
|
|
|
Tangible common
equity ratio, assuming full conversion of convertible preferred
stock ((J-I)/K) |
8.2 |
% |
|
8.3 |
% |
|
7.8 |
% |
|
7.7 |
% |
|
8.0 |
% |
|
|
|
|
Calculation of
book value per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
2,674,474 |
|
|
$ |
2,623,595 |
|
|
$ |
2,418,442 |
|
|
$ |
2,352,274 |
|
|
$ |
2,335,736 |
|
|
|
|
|
Less: Preferred stock |
(251,257 |
) |
|
(251,257 |
) |
|
(251,257 |
) |
|
(251,287 |
) |
|
(251,312 |
) |
|
|
|
|
(L) Total common
equity |
$ |
2,423,217 |
|
|
$ |
2,372,338 |
|
|
$ |
2,167,185 |
|
|
$ |
2,100,987 |
|
|
$ |
2,084,424 |
|
|
|
|
|
(M) Actual common shares
outstanding |
51,715 |
|
|
51,619 |
|
|
48,519 |
|
|
48,383 |
|
|
48,337 |
|
|
|
|
|
Book value per
common share (L/M) |
$ |
46.86 |
|
|
$ |
45.96 |
|
|
$ |
44.67 |
|
|
$ |
43.42 |
|
|
$ |
43.12 |
|
|
|
|
|
Tangible common
book value per share (J/M) |
$ |
37.06 |
|
|
$ |
36.12 |
|
|
$ |
34.20 |
|
|
$ |
33.17 |
|
|
$ |
32.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
return on average common equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
(N) Net income applicable
to common shares |
49,487 |
|
|
46,413 |
|
|
45,483 |
|
|
31,883 |
|
|
34,276 |
|
|
141,383 |
|
|
113,998 |
|
Add: After-tax intangible
asset amortization |
677 |
|
|
781 |
|
|
812 |
|
|
834 |
|
|
833 |
|
|
2,270 |
|
|
2,046 |
|
(O) Tangible net income
applicable to common shares |
50,164 |
|
|
47,194 |
|
|
46,295 |
|
|
32,717 |
|
|
35,109 |
|
|
143,653 |
|
|
116,044 |
|
Total average
shareholders' equity |
2,651,684 |
|
|
2,465,732 |
|
|
2,389,770 |
|
|
2,347,545 |
|
|
2,310,511 |
|
|
2,502,940 |
|
|
2,194,384 |
|
Less: Average preferred
stock |
(251,257 |
) |
|
(251,257 |
) |
|
(251,262 |
) |
|
(251,293 |
) |
|
(251,312 |
) |
|
(251,259 |
) |
|
(171,238 |
) |
(P) Total average common
shareholders' equity |
2,400,427 |
|
|
2,214,475 |
|
|
2,138,508 |
|
|
2,096,252 |
|
|
2,059,199 |
|
|
2,251,681 |
|
|
2,023,146 |
|
Less: Average intangible
assets |
(508,812 |
) |
|
(507,439 |
) |
|
(495,594 |
) |
|
(497,199 |
) |
|
(490,583 |
) |
|
(503,966 |
) |
|
(455,787 |
) |
(Q) Total average tangible
common shareholders’ equity |
1,891,615 |
|
|
1,707,036 |
|
|
1,642,914 |
|
|
1,599,053 |
|
|
1,568,616 |
|
|
1,747,715 |
|
|
1,567,359 |
|
Return on average
common equity, annualized (N/P) |
8.20 |
% |
|
8.43 |
% |
|
8.55 |
% |
|
6.03 |
% |
|
6.60 |
% |
|
8.39 |
% |
|
7.53 |
% |
Return on average
tangible common equity, annualized (O/Q) |
10.55 |
% |
|
11.12 |
% |
|
11.33 |
% |
|
8.12 |
% |
|
8.88 |
% |
|
10.98 |
% |
|
9.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOANS
Loan Portfolio Mix and Growth Rates
|
|
|
|
|
|
|
|
% Growth |
(Dollars in thousands) |
|
September 30,
2016 |
|
December 31,
2015 |
|
September 30,
2015 |
|
From (1)
December 31,
2015 |
|
From
September 30,
2015 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
5,951,544 |
|
|
$ |
4,713,909 |
|
|
$ |
4,400,185 |
|
|
35 |
% |
|
35 |
% |
Commercial real estate |
|
5,908,684 |
|
|
5,529,289 |
|
|
5,307,566 |
|
|
9 |
|
|
11 |
|
Home equity |
|
742,868 |
|
|
784,675 |
|
|
797,465 |
|
|
(7 |
) |
|
(7 |
) |
Residential real estate |
|
663,598 |
|
|
607,451 |
|
|
571,743 |
|
|
12 |
|
|
16 |
|
Premium finance receivables -
commercial |
|
2,430,233 |
|
|
2,374,921 |
|
|
2,407,075 |
|
|
3 |
|
|
1 |
|
Premium finance receivables - life
insurance |
|
3,283,359 |
|
|
2,961,496 |
|
|
2,700,275 |
|
|
15 |
|
|
22 |
|
Consumer and other |
|
120,975 |
|
|
146,376 |
|
|
131,902 |
|
|
(23 |
) |
|
(8 |
) |
Total loans, net of unearned
income, excluding covered loans |
|
$ |
19,101,261 |
|
|
$ |
17,118,117 |
|
|
$ |
16,316,211 |
|
|
15 |
% |
|
17 |
% |
Covered loans |
|
95,940 |
|
|
148,673 |
|
|
168,609 |
|
|
(47 |
) |
|
(43 |
) |
Total loans, net of unearned
income |
|
$ |
19,197,201 |
|
|
$ |
17,266,790 |
|
|
$ |
16,484,820 |
|
|
15 |
% |
|
16 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
31 |
% |
|
27 |
% |
|
27 |
% |
|
|
|
|
Commercial real estate |
|
31 |
|
|
32 |
|
|
32 |
|
|
|
|
|
Home equity |
|
4 |
|
|
5 |
|
|
5 |
|
|
|
|
|
Residential real estate |
|
3 |
|
|
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 |
|
100 |
% |
|
99 |
% |
|
99 |
% |
|
|
|
|
Covered loans |
|
— |
|
|
1 |
|
|
1 |
|
|
|
|
|
Total loans, net of unearned
income |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
Commercial and Commercial Real Estate Loan
Portfolios
|
|
|
|
|
|
|
|
|
|
|
As of September
30, 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 |
|
$ |
3,605,516 |
|
|
30.4 |
% |
|
$ |
15,809 |
|
|
$ |
— |
|
|
$ |
29,087 |
|
Franchise |
|
874,745 |
|
|
7.4 |
|
|
— |
|
|
— |
|
|
3,357 |
|
Mortgage warehouse lines of
credit |
|
309,632 |
|
|
2.6 |
|
|
— |
|
|
— |
|
|
2,241 |
|
Asset-based lending |
|
845,719 |
|
|
7.2 |
|
|
234 |
|
|
— |
|
|
6,728 |
|
Leases |
|
299,953 |
|
|
2.5 |
|
|
375 |
|
|
— |
|
|
893 |
|
PCI - commercial loans
(1) |
|
15,979 |
|
|
0.1 |
|
|
— |
|
|
1,783 |
|
|
732 |
|
Total
commercial |
|
$ |
5,951,544 |
|
|
50.2 |
% |
|
$ |
16,418 |
|
|
$ |
1,783 |
|
|
$ |
43,038 |
|
Commercial Real
Estate: |
|
|
|
|
|
|
|
|
|
|
Construction |
|
$ |
451,477 |
|
|
3.8 |
% |
|
$ |
400 |
|
|
$ |
— |
|
|
$ |
4,778 |
|
Land |
|
107,701 |
|
|
0.9 |
|
|
1,208 |
|
|
— |
|
|
3,577 |
|
Office |
|
884,082 |
|
|
7.5 |
|
|
3,609 |
|
|
— |
|
|
6,003 |
|
Industrial |
|
767,504 |
|
|
6.5 |
|
|
9,967 |
|
|
— |
|
|
6,353 |
|
Retail |
|
895,341 |
|
|
7.5 |
|
|
909 |
|
|
— |
|
|
6,063 |
|
Multi-family |
|
794,955 |
|
|
6.7 |
|
|
90 |
|
|
— |
|
|
7,966 |
|
Mixed use and other |
|
1,851,507 |
|
|
15.6 |
|
|
6,442 |
|
|
— |
|
|
13,586 |
|
PCI - commercial real estate
(1) |
|
156,117 |
|
|
1.3 |
|
|
— |
|
|
21,433 |
|
|
22 |
|
Total commercial real
estate |
|
$ |
5,908,684 |
|
|
49.8 |
% |
|
$ |
22,625 |
|
|
$ |
21,433 |
|
|
$ |
48,348 |
|
Total commercial and
commercial real estate |
|
$ |
11,860,228 |
|
|
100.0 |
% |
|
$ |
39,043 |
|
|
$ |
23,216 |
|
|
$ |
91,386 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate -
collateral location by state: |
|
|
|
|
|
|
|
|
|
|
Illinois |
|
$ |
4,652,758 |
|
|
78.8 |
% |
|
|
|
|
|
|
Wisconsin |
|
646,116 |
|
|
10.9 |
|
|
|
|
|
|
|
Total primary
markets |
|
$ |
5,298,874 |
|
|
89.7 |
% |
|
|
|
|
|
|
Indiana |
|
111,206 |
|
|
1.9 |
|
|
|
|
|
|
|
Florida |
|
77,836 |
|
|
1.3 |
|
|
|
|
|
|
|
Arizona |
|
45,620 |
|
|
0.8 |
|
|
|
|
|
|
|
California |
|
38,195 |
|
|
0.6 |
|
|
|
|
|
|
|
Other (no individual state greater
than 0.7%) |
|
336,953 |
|
|
5.7 |
|
|
|
|
|
|
|
Total |
|
$ |
5,908,684 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
(1 |
) |
Purchased credit impaired ("PCI") loans represent loans
acquired with evidence of credit quality deterioration since
origination, in accordance with ASC 310-30. Loan agings are based
upon contractually required payments. |
DEPOSITS
Deposit Portfolio Mix and Growth Rates
|
|
|
|
|
|
|
|
% Growth |
(Dollars in thousands) |
|
September 30,
2016 |
|
December 31,
2015 |
|
September 30,
2015 |
|
From (1)
December 31,
2015 |
|
From
September 30,
2015 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,711,042 |
|
|
$ |
4,836,420 |
|
|
$ |
4,705,994 |
|
|
24 |
% |
|
21 |
% |
NOW and interest bearing demand
deposits |
|
2,552,611 |
|
|
2,390,217 |
|
|
2,231,258 |
|
|
9 |
|
|
14 |
|
Wealth management deposits
(2) |
|
2,283,233 |
|
|
1,643,653 |
|
|
1,469,920 |
|
|
52 |
|
|
55 |
|
Money market |
|
4,421,631 |
|
|
4,041,300 |
|
|
4,001,518 |
|
|
13 |
|
|
10 |
|
Savings |
|
1,977,661 |
|
|
1,723,367 |
|
|
1,684,007 |
|
|
20 |
|
|
17 |
|
Time certificates of deposit |
|
4,201,477 |
|
|
4,004,677 |
|
|
4,135,772 |
|
|
7 |
|
|
2 |
|
Total deposits |
|
$ |
21,147,655 |
|
|
$ |
18,639,634 |
|
|
$ |
18,228,469 |
|
|
18 |
% |
|
16 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
27 |
% |
|
26 |
% |
|
26 |
% |
|
|
|
|
NOW and interest bearing demand
deposits |
|
12 |
|
|
13 |
|
|
12 |
|
|
|
|
|
Wealth management deposits
(2) |
|
11 |
|
|
9 |
|
|
8 |
|
|
|
|
|
Money market |
|
21 |
|
|
22 |
|
|
22 |
|
|
|
|
|
Savings |
|
9 |
|
|
9 |
|
|
9 |
|
|
|
|
|
Time certificates of deposit |
|
20 |
|
|
21 |
|
|
23 |
|
|
|
|
|
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.
|
|
|
Time Certificates of Deposit
Maturity/Re-pricing Analysis
As of September 30, 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 |
|
$ |
— |
|
|
$ |
53,575 |
|
|
$ |
138,228 |
|
|
$ |
697,340 |
|
|
$ |
889,143 |
|
|
0.62 |
% |
4-6 months |
|
— |
|
|
33,497 |
|
|
— |
|
|
655,169 |
|
|
688,666 |
|
|
0.72 |
% |
7-9 months |
|
43,570 |
|
|
24,529 |
|
|
— |
|
|
503,267 |
|
|
571,366 |
|
|
0.75 |
% |
10-12 months |
|
531 |
|
|
21,464 |
|
|
— |
|
|
530,905 |
|
|
552,900 |
|
|
0.81 |
% |
13-18 months |
|
2,744 |
|
|
16,479 |
|
|
— |
|
|
1,016,558 |
|
|
1,035,781 |
|
|
1.10 |
% |
19-24 months |
|
3,021 |
|
|
8,259 |
|
|
— |
|
|
162,251 |
|
|
173,531 |
|
|
0.91 |
% |
24+ months |
|
1,249 |
|
|
13,232 |
|
|
— |
|
|
275,609 |
|
|
290,090 |
|
|
1.29 |
% |
Total |
|
$ |
51,115 |
|
|
$ |
171,035 |
|
|
$ |
138,228 |
|
|
$ |
3,841,099 |
|
|
$ |
4,201,477 |
|
|
0.86 |
% |
|
(1 |
) |
This
category of certificates of deposit is shown by contractual
maturity date.
|
|
(2 |
) |
This
category includes variable rate certificates of deposit and savings
certificates with the majority repricing on at least a monthly
basis.
|
|
(3 |
) |
Weighted-average rate excludes the impact of purchase
accounting fair value adjustments.
|
NET INTEREST INCOME
The following table presents a summary of
Wintrust’s average balances, net interest income and related net
interest margins, calculated on a fully tax-equivalent basis, for
the third quarter of 2016 compared to the second quarter of 2016
(sequential quarters) and third 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) |
September 30,
2016 |
|
June 30,
2016 |
|
September 30,
2015 |
|
September 30,
2016 |
|
June 30,
2016 |
|
September 30,
2015 |
|
September 30,
2016 |
|
June 30,
2016 |
|
September 30,
2015 |
Liquidity management
assets(1)(2)(7) |
$ |
3,671,577 |
|
|
$ |
3,413,113 |
|
|
$ |
3,140,782 |
|
|
$ |
18,710 |
|
|
$ |
19,236 |
|
|
$ |
18,165 |
|
|
2.03 |
% |
|
2.27 |
% |
|
2.29 |
% |
Other earning
assets(2)(3)(7) |
29,875 |
|
|
29,759 |
|
|
30,990 |
|
|
222 |
|
|
238 |
|
|
234 |
|
|
2.96 |
|
|
3.21 |
|
|
3.00 |
|
Loans, net of unearned
income(2)(4)(7) |
19,071,621 |
|
|
18,204,552 |
|
|
16,509,001 |
|
|
189,637 |
|
|
177,571 |
|
|
165,572 |
|
|
3.96 |
|
|
3.92 |
|
|
3.98 |
|
Covered loans |
101,570 |
|
|
109,533 |
|
|
174,768 |
|
|
1,136 |
|
|
1,482 |
|
|
2,605 |
|
|
4.45 |
|
|
5.44 |
|
|
5.91 |
|
Total earning
assets(7) |
$ |
22,874,643 |
|
|
$ |
21,756,957 |
|
|
$ |
19,855,541 |
|
|
$ |
209,705 |
|
|
$ |
198,527 |
|
|
$ |
186,576 |
|
|
3.65 |
% |
|
3.67 |
% |
|
3.73 |
% |
Allowance for loan and
covered loan losses |
(121,156 |
) |
|
(116,984 |
) |
|
(106,091 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
240,239 |
|
|
272,935 |
|
|
251,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
1,885,526 |
|
|
1,841,847 |
|
|
1,678,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
24,879,252 |
|
|
$ |
23,754,755 |
|
|
$ |
21,679,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
$ |
15,117,102 |
|
|
$ |
14,065,995 |
|
|
$ |
13,489,651 |
|
|
$ |
15,621 |
|
|
$ |
13,594 |
|
|
$ |
12,436 |
|
|
0.41 |
% |
|
0.39 |
% |
|
0.37 |
% |
Federal Home Loan Bank
advances |
459,198 |
|
|
946,081 |
|
|
394,666 |
|
|
2,577 |
|
|
2,984 |
|
|
2,458 |
|
|
2.23 |
|
|
1.27 |
|
|
2.47 |
|
Other borrowings |
249,307 |
|
|
248,233 |
|
|
272,549 |
|
|
1,137 |
|
|
1,086 |
|
|
1,045 |
|
|
1.81 |
|
|
1.76 |
|
|
1.52 |
|
Subordinated notes |
138,925 |
|
|
138,898 |
|
|
138,825 |
|
|
1,778 |
|
|
1,777 |
|
|
1,776 |
|
|
5.12 |
|
|
5.12 |
|
|
5.12 |
|
Junior subordinated
debentures |
253,566 |
|
|
253,566 |
|
|
264,974 |
|
|
2,400 |
|
|
2,353 |
|
|
2,124 |
|
|
3.70 |
|
|
3.67 |
|
|
3.14 |
|
Total interest-bearing
liabilities |
$ |
16,218,098 |
|
|
$ |
15,652,773 |
|
|
$ |
14,560,665 |
|
|
$ |
23,513 |
|
|
$ |
21,794 |
|
|
$ |
19,839 |
|
|
0.58 |
% |
|
0.56 |
% |
|
0.54 |
% |
Non-interest bearing
deposits |
5,566,983 |
|
|
5,223,384 |
|
|
4,473,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
442,487 |
|
|
412,866 |
|
|
334,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
2,651,684 |
|
|
2,465,732 |
|
|
2,310,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’
equity |
$ |
24,879,252 |
|
|
$ |
23,754,755 |
|
|
$ |
21,679,062 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread(5)(7) |
|
|
|
|
|
|
|
|
|
|
|
|
3.07 |
% |
|
3.11 |
% |
|
3.19 |
% |
Less: Fully
tax-equivalent adjustment |
|
|
|
|
|
|
(1,556 |
) |
|
(1,463 |
) |
|
(1,197 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.02 |
) |
Net free
funds/contribution(6) |
$ |
6,656,545 |
|
|
$ |
6,104,184 |
|
|
$ |
5,294,876 |
|
|
|
|
|
|
|
|
0.17 |
|
|
0.16 |
|
|
0.14 |
|
Net interest income/
margin(7) (GAAP) |
|
|
|
|
|
|
$ |
184,636 |
|
|
$ |
175,270 |
|
|
$ |
165,540 |
|
|
3.21 |
% |
|
3.24 |
% |
|
3.31 |
% |
Fully tax-equivalent
adjustment |
|
|
|
|
|
|
1,556 |
|
|
1,463 |
|
|
1,197 |
|
|
0.03 |
|
|
0.03 |
|
|
0.02 |
|
Net interest income/
margin - FTE (7) |
|
|
|
|
|
|
$ |
186,192 |
|
|
$ |
176,733 |
|
|
$ |
166,737 |
|
|
3.24 |
% |
|
3.27 |
% |
|
3.33 |
% |
|
(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 September 30, 2016,
June 30, 2016 and September 30, 2015 were $1.6 million, $1.5
million and $1.2 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.
|
|
|
For the third quarter of 2016, net interest
income totaled $184.6 million, an increase of $9.4 million as
compared to the second quarter of 2016 and an increase of $19.1
million as compared to the third quarter of 2015. Net interest
margin was 3.21% (3.24% on a fully tax-equivalent basis) during the
third quarter of 2016 compared to 3.24% (3.27% on a fully
tax-equivalent basis) during the second quarter of 2016 and 3.31%
(3.33% on a fully tax-equivalent basis) during the third quarter of
2015. The reduction in net interest margin compared to the second
quarter of 2016 is primarily the result of a decline in yields on
mortgage-backed securities.
The following table presents a summary of
Wintrust's average balances, net interest income and related
interest margins, calculated on a fully tax-equivalent basis, for
the nine months ended September 30, 2016 compared to the nine
months ended September 30, 2015:
|
Average Balance for nine months
ended, |
|
Interest for nine months
ended, |
|
Yield/Rate for nine months
ended, |
(Dollars in thousands) |
September 30,
2016 |
|
September 30,
2015 |
|
September 30,
2016 |
|
September 30,
2015 |
|
September 30,
2016 |
|
September 30,
2015 |
Liquidity management
assets(1)(2)(7) |
$ |
3,462,375 |
|
|
$ |
2,907,284 |
|
|
$ |
57,740 |
|
|
$ |
50,328 |
|
|
2.23 |
% |
|
2.31 |
% |
Other earning
assets(2)(3)(7) |
29,457 |
|
|
30,286 |
|
|
696 |
|
|
718 |
|
|
3.16 |
|
|
3.17 |
|
Loans, net of unearned
income(2)(4)(7) |
18,264,545 |
|
|
15,730,009 |
|
|
538,833 |
|
|
473,857 |
|
|
3.94 |
|
|
4.03 |
|
Covered loans |
117,427 |
|
|
197,069 |
|
|
4,629 |
|
|
9,474 |
|
|
5.27 |
|
|
6.43 |
|
Total earning
assets(7) |
$ |
21,873,804 |
|
|
$ |
18,864,648 |
|
|
$ |
601,898 |
|
|
$ |
534,377 |
|
|
3.68 |
% |
|
3.79 |
% |
Allowance for loan and
covered loan losses |
(116,739 |
) |
|
(101,440 |
) |
|
|
|
|
|
|
|
|
Cash and due from
banks |
257,443 |
|
|
245,745 |
|
|
|
|
|
|
|
|
|
Other assets |
1,834,904 |
|
|
1,577,971 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
23,849,412 |
|
|
$ |
20,586,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
$ |
14,303,125 |
|
|
$ |
13,158,498 |
|
|
$ |
41,996 |
|
|
$ |
36,246 |
|
|
0.39 |
% |
|
0.37 |
% |
Federal Home Loan Bank
advances |
742,423 |
|
|
360,470 |
|
|
8,447 |
|
|
6,426 |
|
|
1.52 |
|
|
2.38 |
|
Other borrowings |
251,633 |
|
|
220,478 |
|
|
3,281 |
|
|
2,620 |
|
|
1.74 |
|
|
1.59 |
|
Subordinated notes |
138,898 |
|
|
138,799 |
|
|
5,332 |
|
|
5,328 |
|
|
5.12 |
|
|
5.12 |
|
Junior subordinated
debentures |
254,935 |
|
|
254,710 |
|
|
6,973 |
|
|
6,034 |
|
|
3.59 |
|
|
3.12 |
|
Total interest-bearing
liabilities |
$ |
15,691,014 |
|
|
$ |
14,132,955 |
|
|
$ |
66,029 |
|
|
$ |
56,654 |
|
|
0.56 |
% |
|
0.54 |
% |
Non-interest bearing
deposits |
5,244,552 |
|
|
3,931,194 |
|
|
|
|
|
|
|
|
|
Other liabilities |
410,906 |
|
|
328,391 |
|
|
|
|
|
|
|
|
|
Equity |
2,502,940 |
|
|
2,194,384 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’
equity |
$ |
23,849,412 |
|
|
$ |
20,586,924 |
|
|
|
|
|
|
|
|
|
Interest rate
spread(5)(7) |
|
|
|
|
|
|
|
|
3.12 |
% |
|
3.25 |
% |
Less: Fully
tax-equivalent adjustment |
|
|
|
|
(4,454 |
) |
|
(3,400 |
) |
|
(0.02 |
) |
|
(0.03 |
) |
Net free
funds/contribution(6) |
$ |
6,182,790 |
|
|
$ |
4,731,693 |
|
|
|
|
|
|
0.15 |
|
|
0.14 |
|
Net interest income/
margin(7) (GAAP) |
|
|
|
|
$ |
531,415 |
|
|
$ |
474,323 |
|
|
3.25 |
% |
|
3.36 |
% |
Fully tax-equivalent
adjustment |
|
|
|
|
4,454 |
|
|
3,400 |
|
|
0.02 |
|
|
0.03 |
|
Net interest income/
margin - FTE (7) |
|
|
|
|
$ |
535,869 |
|
|
$ |
477,723 |
|
|
3.27 |
% |
|
3.39 |
% |
|
(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 nine months ended September 30, 2016 and
September 30, 2015 were $4.5 million and $3.4 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.
|
|
|
For the first nine months of 2016, net interest
income totaled $531.4 million, an increase of $57.1 million as
compared to the first nine months of 2015. Net interest margin was
3.25% (3.27% on a fully tax-equivalent basis) for the first
nine months of 2016 compared to 3.36% (3.39% on a fully
tax-equivalent basis) for the same period of 2015. The reduction in
net interest margin compared to the first nine months of 2015 is
primarily the result of a decline in loan yields, including less
accretion recognized on purchased loans, and an increase on the
rate of interest bearing liabilities.
Interest Rate Sensitivity
As an ongoing part of its financial strategy,
the Company attempts to manage the impact of fluctuations in market
interest rates on net interest income. Management measures
its exposure to changes in interest rates by modeling many
different interest rate scenarios.
The following interest rate scenarios display
the percentage change in net interest income over a one-year time
horizon assuming increases of 100 and 200 basis points and a
decrease of 100 basis points. The Static Shock Scenario results
incorporate actual cash flows and repricing characteristics for
balance sheet instruments following an instantaneous, parallel
change in market rates based upon a static (i.e. no growth or
constant) balance sheet. Conversely, the Ramp Scenario
results incorporate management’s projections of future volume and
pricing of each of the product lines following a gradual, parallel
change in market rates over twelve months. Actual results may
differ from these simulated results due to timing, magnitude, and
frequency of interest rate changes as well as changes in market
conditions and management strategies. The interest rate sensitivity
for both the Static Shock and Ramp Scenario at September 30,
2016, June 30, 2016 and September 30, 2015 is as
follows:
|
|
|
|
|
|
Static Shock Scenario |
|
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
September 30,
2016 |
|
19.6 |
% |
|
10.1 |
% |
|
(10.4 |
)% |
June 30, 2016 |
|
16.9 |
% |
|
8.9 |
% |
|
(8.9 |
)% |
September 30, 2015 |
|
15.6 |
% |
|
8.0 |
% |
|
(11.1 |
)% |
Ramp Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
September 30,
2016 |
7.8 |
% |
|
3.9 |
% |
|
(4.1 |
)% |
June 30, 2016 |
7.0 |
% |
|
3.5 |
% |
|
(3.7 |
)% |
September 30, 2015 |
6.7 |
% |
|
3.6 |
% |
|
(4.0 |
)% |
|
|
|
|
|
|
|
|
|
These results indicate that the Company has
positioned its balance sheet to benefit from a rise in interest
rates. This analysis also indicates that the Company would
benefit to a greater magnitude should a rise in interest rates be
significant (i.e., 200 basis points) and immediate (Static Shock
Scenario).
NON-INTEREST INCOME
The following table presents non-interest income by category for
the periods presented:
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
|
September 30, |
|
June 30, |
|
September 30, |
|
Q3 2016 compared to
Q2 2016 |
|
Q3 2016 compared to
Q3 2015 |
|
|
2016 |
|
2016 |
|
2015 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
|
$ |
6,752 |
|
|
$ |
6,302 |
|
|
$ |
6,579 |
|
|
$ |
450 |
|
|
7 |
% |
|
$ |
173 |
|
|
3 |
% |
Trust and asset
management |
|
12,582 |
|
|
12,550 |
|
|
11,664 |
|
|
32 |
|
|
— |
|
|
918 |
|
|
8 |
|
Total wealth management |
|
19,334 |
|
|
18,852 |
|
|
18,243 |
|
|
482 |
|
|
3 |
|
|
1,091 |
|
|
6 |
|
Mortgage banking |
|
34,712 |
|
|
36,807 |
|
|
27,887 |
|
|
(2,095 |
) |
|
(6 |
) |
|
6,825 |
|
|
24 |
|
Service charges on deposit
accounts |
|
8,024 |
|
|
7,726 |
|
|
7,403 |
|
|
298 |
|
|
4 |
|
|
621 |
|
|
8 |
|
Gains (losses) on
investment securities, net |
|
3,305 |
|
|
1,440 |
|
|
(98 |
) |
|
1,865 |
|
|
NM |
|
|
3,403 |
|
|
NM |
|
Fees from covered call
options |
|
3,633 |
|
|
4,649 |
|
|
2,810 |
|
|
(1,016 |
) |
|
(22 |
) |
|
823 |
|
|
29 |
|
Trading losses, net |
|
(432 |
) |
|
(316 |
) |
|
(135 |
) |
|
(116 |
) |
|
37 |
|
|
(297 |
) |
|
NM |
|
Operating lease income,
net |
|
4,459 |
|
|
4,005 |
|
|
613 |
|
|
454 |
|
|
11 |
|
|
3,846 |
|
|
NM |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
2,881 |
|
|
1,835 |
|
|
2,606 |
|
|
1,046 |
|
|
57 |
|
|
275 |
|
|
11 |
|
BOLI |
|
884 |
|
|
1,257 |
|
|
212 |
|
|
(373 |
) |
|
(30 |
) |
|
672 |
|
|
NM |
|
Administrative services |
|
1,151 |
|
|
1,074 |
|
|
1,072 |
|
|
77 |
|
|
7 |
|
|
79 |
|
|
7 |
|
Gain on extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
NM |
|
|
— |
|
|
NM |
|
Miscellaneous |
|
8,653 |
|
|
7,470 |
|
|
4,340 |
|
|
1,183 |
|
|
16 |
|
|
4,313 |
|
|
99 |
|
Total Other |
|
13,569 |
|
|
11,636 |
|
|
8,230 |
|
|
1,933 |
|
|
17 |
|
|
5,339 |
|
|
65 |
|
Total Non-Interest
Income |
|
$ |
86,604 |
|
|
$ |
84,799 |
|
|
$ |
64,953 |
|
|
$ |
1,805 |
|
|
2 |
% |
|
$ |
21,651 |
|
|
33 |
% |
NM - Not Meaningful
|
|
Nine Months Ended |
|
|
|
|
|
|
September 30, |
|
September 30, |
|
$ |
|
% |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
Change |
|
Change |
Brokerage |
|
$ |
19,111 |
|
|
$ |
20,181 |
|
|
$ |
(1,070 |
) |
|
(5 |
)% |
Trust and asset
management |
|
37,395 |
|
|
34,638 |
|
|
2,757 |
|
|
8 |
|
Total wealth management |
|
56,506 |
|
|
54,819 |
|
|
1,687 |
|
|
3 |
|
Mortgage banking |
|
93,254 |
|
|
91,694 |
|
|
1,560 |
|
|
2 |
|
Service charges on deposit
accounts |
|
23,156 |
|
|
20,174 |
|
|
2,982 |
|
|
15 |
|
Gains on investment
securities, net |
|
6,070 |
|
|
402 |
|
|
5,668 |
|
|
NM |
|
Fees from covered call
options |
|
9,994 |
|
|
11,735 |
|
|
(1,741 |
) |
|
(15 |
) |
Trading losses, net |
|
(916 |
) |
|
(452 |
) |
|
(464 |
) |
|
NM |
|
Operating lease income,
net |
|
11,270 |
|
|
755 |
|
|
10,515 |
|
|
NM |
|
Other: |
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
9,154 |
|
|
7,144 |
|
|
2,010 |
|
|
28 |
|
BOLI |
|
2,613 |
|
|
3,158 |
|
|
(545 |
) |
|
(17 |
) |
Administrative services |
|
3,294 |
|
|
3,151 |
|
|
143 |
|
|
5 |
|
Gain on extinguishment of debt |
|
4,305 |
|
|
— |
|
|
4,305 |
|
|
NM |
|
Miscellaneous |
|
21,455 |
|
|
13,927 |
|
|
7,528 |
|
|
54 |
|
Total Other |
|
40,821 |
|
|
27,380 |
|
|
13,441 |
|
|
49 |
|
Total Non-Interest
Income |
|
$ |
240,155 |
|
|
$ |
206,507 |
|
|
$ |
33,648 |
|
|
16 |
% |
NM - Not Meaningful
Notable contributions to the change in
non-interest income are as follows:
The increase in wealth management revenue during
the current period as compared to the second quarter of 2016 and
third 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 most recent quarter resulted
primarily from a $2.5 million negative fair value adjustment on
mortgage servicing rights assets ("MSRs") during the period as a
result of actual prepayments in the third quarter of 2016 and
higher projected prepayment speeds. Mortgage loans originated or
purchased for sale remained steady during the period totaling $1.3
billion in the current quarter as compared to $1.2 billion in the
second quarter of 2016 and $973.7 million in the third quarter of
2015. Mortgage banking revenue includes revenue from activities
related to originating, selling and servicing residential real
estate loans for the secondary market. Mortgage revenue is also
impacted by changes in the fair value of MSRs as the Company does
not hedge this change in fair value. The Company typically
originates mortgage loans held-for-sale with associated MSRs either
retained or released. The Company records MSRs at fair value on a
recurring basis. The table below presents additional selected
information regarding mortgage banking revenue for the respective
periods.
|
|
Three Months Ended |
|
Nine Months Ended |
(Dollars in thousands) |
|
September 30,
2016 |
|
June 30,
2016 |
|
September 30,
2015 |
|
September 30,
2016 |
|
September 30,
2015 |
Retail
originations |
|
$ |
1,138,571 |
|
|
1,135,082 |
|
|
$ |
900,302 |
|
|
$ |
2,978,643 |
|
|
$ |
2,906,508 |
|
Correspondent
originations |
|
121,007 |
|
|
77,160 |
|
|
73,362 |
|
|
229,825 |
|
|
188,393 |
|
(A) Total
originations |
|
$ |
1,259,578 |
|
|
1,212,242 |
|
|
$ |
973,664 |
|
|
$ |
3,208,468 |
|
|
$ |
3,094,901 |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases as a
percentage of originations |
|
57 |
% |
|
65 |
% |
|
72 |
% |
|
60 |
% |
|
60 |
% |
Refinances as a
percentage of originations |
|
43 |
|
|
35 |
|
|
28 |
|
|
40 |
|
|
40 |
|
Total |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
(B) Production revenue
(1) |
|
$ |
32,889 |
|
|
$ |
32,221 |
|
|
$ |
27,211 |
|
|
$ |
85,040 |
|
|
$ |
90,640 |
|
Production margin (B /
A) |
|
2.61 |
% |
|
2.66 |
% |
|
2.79 |
% |
|
2.65 |
% |
|
2.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
Loans serviced for
others (C) |
|
$ |
1,508,469 |
|
|
$ |
1,250,062 |
|
|
$ |
853,286 |
|
|
|
|
|
MSRs, at fair value
(D) |
|
13,901 |
|
|
13,382 |
|
|
7,875 |
|
|
|
|
|
Percentage of mortgage
servicing rights to loans serviced for others (D/C) |
|
0.92 |
% |
|
1.07 |
% |
|
0.92 |
% |
|
|
|
|
|
(1 |
) |
Production revenue represents revenue earned from the
origination and subsequent sale of mortgages, including gains on
loans sold and fees from originations, processing and other related
activities, and excludes servicing fees, changes in the fair value
of servicing rights and changes to the mortgage recourse
obligation. |
|
|
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 Company has typically written call options
with terms of less than three months against certain U.S. Treasury
and agency securities held in its portfolio for liquidity and other
purposes. Management has effectively entered into these
transactions with the goal of economically hedging security
positions and enhancing its overall return on its investment
portfolio by using fees generated from these options to compensate
for net interest margin compression. These option transactions are
designed to mitigate overall interest rate risk and do not qualify
as hedges pursuant to accounting guidance. Fees from covered call
options decreased in the current quarter compared to the second
quarter of 2016 primarily as a result of selling call options
against a smaller value of underlying securities resulting in lower
premiums received by the Company. There were no outstanding call
option contracts at September 30, 2016, June 30, 2016 and
September 30, 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 second quarter of 2016 is
primarily due to 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 gains recognized on the purchase and sale of certain assets,
partially offset by 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 |
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
September 30, |
|
June 30, |
|
September 30, |
|
Q3 2016 compared to
Q2 2016 |
|
Q3 2016 compared to
Q3 2015 |
|
|
2016 |
|
2016 |
|
2015 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
54,309 |
|
|
$ |
52,924 |
|
|
$ |
53,028 |
|
|
$ |
1,385 |
|
|
3 |
% |
|
$ |
1,281 |
|
|
2 |
% |
Commissions and incentive
compensation |
|
33,740 |
|
|
32,531 |
|
|
30,035 |
|
|
1,209 |
|
|
4 |
|
|
3,705 |
|
|
12 |
|
Benefits |
|
15,669 |
|
|
15,439 |
|
|
14,686 |
|
|
230 |
|
|
1 |
|
|
983 |
|
|
7 |
|
Total salaries and employee
benefits |
|
103,718 |
|
|
100,894 |
|
|
97,749 |
|
|
2,824 |
|
|
3 |
|
|
5,969 |
|
|
6 |
|
Equipment |
|
9,449 |
|
|
9,307 |
|
|
8,456 |
|
|
142 |
|
|
2 |
|
|
993 |
|
|
12 |
|
Operating lease equipment
depreciation |
|
3,605 |
|
|
3,385 |
|
|
431 |
|
|
220 |
|
|
6 |
|
|
3,174 |
|
|
NM |
|
Occupancy, net |
|
12,767 |
|
|
11,943 |
|
|
12,066 |
|
|
824 |
|
|
7 |
|
|
701 |
|
|
6 |
|
Data processing |
|
7,432 |
|
|
7,138 |
|
|
8,127 |
|
|
294 |
|
|
4 |
|
|
(695 |
) |
|
(9 |
) |
Advertising and
marketing |
|
7,365 |
|
|
6,941 |
|
|
6,237 |
|
|
424 |
|
|
6 |
|
|
1,128 |
|
|
18 |
|
Professional fees |
|
5,508 |
|
|
5,419 |
|
|
4,100 |
|
|
89 |
|
|
2 |
|
|
1,408 |
|
|
34 |
|
Amortization of other
intangible assets |
|
1,085 |
|
|
1,248 |
|
|
1,350 |
|
|
(163 |
) |
|
(13 |
) |
|
(265 |
) |
|
(20 |
) |
FDIC insurance |
|
3,686 |
|
|
4,040 |
|
|
3,035 |
|
|
(354 |
) |
|
(9 |
) |
|
651 |
|
|
21 |
|
OREO expense, net |
|
1,436 |
|
|
1,348 |
|
|
(367 |
) |
|
88 |
|
|
7 |
|
|
1,803 |
|
|
NM |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party
brokers |
|
1,362 |
|
|
1,324 |
|
|
1,364 |
|
|
38 |
|
|
3 |
|
|
(2 |
) |
|
— |
|
Postage |
|
1,889 |
|
|
2,038 |
|
|
1,927 |
|
|
(149 |
) |
|
(7 |
) |
|
(38 |
) |
|
(2 |
) |
Miscellaneous |
|
17,313 |
|
|
15,944 |
|
|
15,499 |
|
|
1,369 |
|
|
9 |
|
|
1,814 |
|
|
12 |
|
Total other |
|
20,564 |
|
|
19,306 |
|
|
18,790 |
|
|
1,258 |
|
|
7 |
|
|
1,774 |
|
|
9 |
|
Total Non-Interest
Expense |
|
$ |
176,615 |
|
|
$ |
170,969 |
|
|
$ |
159,974 |
|
|
$ |
5,646 |
|
|
3 |
% |
|
$ |
16,641 |
|
|
10 |
% |
NM - Not Meaningful
|
|
Nine Months Ended |
|
|
|
|
|
|
September 30, |
|
September 30, |
|
$ |
|
% |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
Change |
|
Change |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
Salaries |
|
$ |
157,515 |
|
|
$ |
146,493 |
|
|
$ |
11,022 |
|
|
8 |
% |
Commissions and incentive
compensation |
|
92,646 |
|
|
88,916 |
|
|
3,730 |
|
|
4 |
|
Benefits |
|
50,262 |
|
|
46,891 |
|
|
3,371 |
|
|
7 |
|
Total salaries and employee
benefits |
|
300,423 |
|
|
282,300 |
|
|
18,123 |
|
|
6 |
|
Equipment |
|
27,523 |
|
|
24,090 |
|
|
3,433 |
|
|
14 |
|
Operating lease equipment
depreciation |
|
9,040 |
|
|
547 |
|
|
8,493 |
|
|
NM |
|
Occupancy, net |
|
36,658 |
|
|
35,818 |
|
|
840 |
|
|
2 |
|
Data processing |
|
21,089 |
|
|
19,656 |
|
|
1,433 |
|
|
7 |
|
Advertising and
marketing |
|
18,085 |
|
|
16,550 |
|
|
1,535 |
|
|
9 |
|
Professional fees |
|
14,986 |
|
|
13,838 |
|
|
1,148 |
|
|
8 |
|
Amortization of other
intangible assets |
|
3,631 |
|
|
3,297 |
|
|
334 |
|
|
10 |
|
FDIC insurance |
|
11,339 |
|
|
9,069 |
|
|
2,270 |
|
|
25 |
|
OREO expense, net |
|
3,344 |
|
|
1,885 |
|
|
1,459 |
|
|
77 |
|
Other: |
|
|
|
|
|
|
|
|
Commissions - 3rd party
brokers |
|
3,996 |
|
|
4,153 |
|
|
(157 |
) |
|
(4 |
) |
Postage |
|
5,229 |
|
|
5,138 |
|
|
91 |
|
|
2 |
|
Miscellaneous |
|
45,971 |
|
|
45,248 |
|
|
723 |
|
|
2 |
|
Total other |
|
55,196 |
|
|
54,539 |
|
|
657 |
|
|
1 |
|
Total Non-Interest
Expense |
|
$ |
501,314 |
|
|
$ |
461,589 |
|
|
$ |
39,725 |
|
|
9 |
% |
NM - Not Meaningful
Notable contributions to the change in
non-interest expense are as follows:
Salaries and employee benefits expense increased
in the current quarter compared to the second quarter of 2016
primarily as a result of increased staffing as the Company grows
and higher commissions and incentive compensation on variable pay
based arrangements. Salaries and employee benefits expense
increased in the current quarter compared to the third quarter of
2015 primarily as a result of the addition of employees from
acquisitions, increased staffing as the Company grows, higher
commissions and incentive compensation on variable pay based
arrangements and an increase in employee benefits (primarily
payroll tax related).
The increase in advertising and marketing
expenses during the current quarter compared to the second quarter
of 2016 is primarily related to higher expenses from mass market
media promotions. 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 increase in miscellaneous expenses in the
current quarter as compared to the second quarter of 2016 is
primarily a result of a $1.8 million charge related to outstanding
legal disputes recognized during the period, including a $1.5
million adverse arbitration award relating to a previously
disclosed claim arising out of the hiring of a wealth management
financial advisor by Wayne Hummer Investments LLC. Miscellaneous
expense includes such items as 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 |
|
Nine Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Allowance for loan
losses at beginning of period |
|
$ |
114,356 |
|
|
$ |
110,171 |
|
|
$ |
100,204 |
|
|
$ |
105,400 |
|
|
$ |
91,705 |
|
Provision for
credit losses |
|
9,741 |
|
|
9,269 |
|
|
8,665 |
|
|
27,433 |
|
|
24,551 |
|
Other
adjustments |
|
(112 |
) |
|
(134 |
) |
|
(153 |
) |
|
(324 |
) |
|
(494 |
) |
Reclassification
(to) from allowance for unfunded lending-related
commitments |
|
(579 |
) |
|
(40 |
) |
|
(42 |
) |
|
(700 |
) |
|
(151 |
) |
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
3,469 |
|
|
721 |
|
|
964 |
|
|
4,861 |
|
|
2,884 |
|
Commercial real estate |
|
382 |
|
|
502 |
|
|
1,948 |
|
|
1,555 |
|
|
3,809 |
|
Home equity |
|
574 |
|
|
2,046 |
|
|
1,116 |
|
|
3,672 |
|
|
3,547 |
|
Residential real estate |
|
134 |
|
|
693 |
|
|
1,138 |
|
|
1,320 |
|
|
2,692 |
|
Premium finance receivables -
commercial |
|
1,959 |
|
|
1,911 |
|
|
1,595 |
|
|
6,350 |
|
|
4,384 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
389 |
|
|
224 |
|
|
116 |
|
|
720 |
|
|
342 |
|
Total charge-offs |
|
6,907 |
|
|
6,097 |
|
|
6,877 |
|
|
18,478 |
|
|
17,658 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
176 |
|
|
121 |
|
|
462 |
|
|
926 |
|
|
1,117 |
|
Commercial real estate |
|
364 |
|
|
296 |
|
|
213 |
|
|
1,029 |
|
|
2,349 |
|
Home equity |
|
65 |
|
|
71 |
|
|
42 |
|
|
184 |
|
|
129 |
|
Residential real estate |
|
61 |
|
|
31 |
|
|
136 |
|
|
204 |
|
|
228 |
|
Premium finance receivables -
commercial |
|
456 |
|
|
633 |
|
|
278 |
|
|
1,876 |
|
|
1,065 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
16 |
|
|
— |
|
|
16 |
|
Consumer and other |
|
72 |
|
|
35 |
|
|
52 |
|
|
143 |
|
|
139 |
|
Total recoveries |
|
1,194 |
|
|
1,187 |
|
|
1,199 |
|
|
4,362 |
|
|
5,043 |
|
Net
charge-offs |
|
(5,713 |
) |
|
(4,910 |
) |
|
(5,678 |
) |
|
(14,116 |
) |
|
(12,615 |
) |
Allowance for loan losses
at period end |
|
$ |
117,693 |
|
|
$ |
114,356 |
|
|
$ |
102,996 |
|
|
$ |
117,693 |
|
|
$ |
102,996 |
|
Allowance for unfunded
lending-related commitments at period end |
|
1,648 |
|
|
1,070 |
|
|
926 |
|
|
1,648 |
|
|
926 |
|
Allowance for credit losses
at period end |
|
$ |
119,341 |
|
|
$ |
115,426 |
|
|
$ |
103,922 |
|
|
$ |
119,341 |
|
|
$ |
103,922 |
|
Annualized net charge-offs
by category as a percentage of its own respective
category’s average: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
0.24 |
% |
|
0.05 |
% |
|
0.05 |
% |
|
0.10 |
% |
|
0.06 |
% |
Commercial real estate |
|
0.00 |
|
|
0.01 |
|
|
0.13 |
|
|
0.01 |
|
|
0.04 |
|
Home equity |
|
0.27 |
|
|
1.03 |
|
|
0.55 |
|
|
0.61 |
|
|
0.62 |
|
Residential real estate |
|
0.03 |
|
|
0.26 |
|
|
0.42 |
|
|
0.14 |
|
|
0.37 |
|
Premium finance receivables -
commercial |
|
0.24 |
|
|
0.21 |
|
|
0.21 |
|
|
0.25 |
|
|
0.18 |
|
Premium finance receivables - life
insurance |
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
Consumer and other |
|
0.92 |
|
|
0.57 |
|
|
0.17 |
|
|
0.56 |
|
|
0.17 |
|
Total loans, net of unearned
income, excluding covered loans |
|
0.12 |
% |
|
0.11 |
% |
|
0.14 |
% |
|
0.10 |
% |
|
0.11 |
% |
Net charge-offs as a
percentage of the provision for credit losses |
|
58.65 |
% |
|
52.97 |
% |
|
65.53 |
% |
|
51.46 |
% |
|
51.39 |
% |
Loans at period-end,
excluding covered loans |
|
$ |
19,101,261 |
|
|
$ |
18,174,655 |
|
|
$ |
16,316,211 |
|
|
|
|
|
Allowance for loan losses
as a percentage of loans at period end |
|
0.62 |
% |
|
0.63 |
% |
|
0.63 |
% |
|
|
|
|
Allowance for credit losses
as a percentage of loans at period end |
|
0.62 |
% |
|
0.64 |
% |
|
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 third quarter of 2016 totaled 12
basis points on an annualized basis compared to 11 basis points on
an annualized basis in the second quarter of 2016 and 14 basis
points on an annualized basis in the third quarter of 2015.
Net charge-offs totaled $5.7 million in the third quarter of 2016,
an $803,000 increase from $4.9 million in the second quarter of
2016 and remained steady when compared to the third quarter of
2015.
The provision for credit losses, excluding the
provision for covered loan losses, totaled $9.7 million for the
third quarter of 2016 compared to $9.3 million for the second
quarter of 2016 and $8.7 million for the third quarter of 2015. The
higher provision for credit losses in the third quarter of 2016
compared to the second quarter of 2016 was partly due to loan
growth, excluding covered loans and mortgage loans held-for-sale,
during the third quarter of 2016.
Management believes the allowance for credit
losses is appropriate to provide for inherent losses in the
portfolio. There can be no assurances however, that future losses
will not exceed the amounts provided for, thereby affecting future
results of operations. The amount of future additions to the
allowance for credit losses will be dependent upon management’s
assessment of the appropriateness of the allowance based on its
evaluation of economic conditions, changes in real estate values,
interest rates, the regulatory environment, the level of past-due
and non-performing loans, and other factors.
The Company also provides a provision for
covered loan losses on covered loans and maintains an allowance for
covered loan losses on covered loans. Please see “Covered Assets”
later in this document for more detail.
The following table presents the provision for
credit losses and allowance for credit losses by component for the
periods presented:
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Provision for loan
losses |
|
$ |
9,162 |
|
|
$ |
9,229 |
|
|
$ |
8,623 |
|
|
$ |
26,733 |
|
|
$ |
24,400 |
|
Provision for unfunded
lending-related commitments |
|
579 |
|
|
40 |
|
|
42 |
|
|
700 |
|
|
151 |
|
Provision for covered loan
losses |
|
(170 |
) |
|
(140 |
) |
|
(343 |
) |
|
(699 |
) |
|
(668 |
) |
Provision for credit
losses |
|
$ |
9,571 |
|
|
$ |
9,129 |
|
|
$ |
8,322 |
|
|
$ |
26,734 |
|
|
$ |
23,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
|
|
|
|
|
2016 |
|
2016 |
|
2015 |
Allowance for loan
losses |
|
|
|
|
|
$ |
117,693 |
|
|
$ |
114,356 |
|
|
$ |
102,996 |
|
Allowance for unfunded
lending-related commitments |
|
|
|
|
|
1,648 |
|
|
1,070 |
|
|
926 |
|
Allowance for covered loan
losses |
|
|
|
|
|
1,422 |
|
|
2,412 |
|
|
2,918 |
|
Allowance for credit
losses |
|
|
|
|
|
$ |
120,763 |
|
|
$ |
117,838 |
|
|
$ |
106,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The tables below summarize the calculation of
allowance for loan losses for the Company’s core loan portfolio and
consumer, niche and purchased loan portfolio as of
September 30, 2016 and June 30, 2016.
|
|
As of September 30, 2016 |
|
|
Recorded |
|
Calculated |
|
As a percentage
of its own respective |
(Dollars in thousands) |
|
Investment |
|
Allowance |
|
category’s balance |
Commercial:(1) |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
3,111,891 |
|
|
$ |
26,440 |
|
|
0.85 |
% |
Asset-based lending |
|
844,357 |
|
|
6,728 |
|
|
0.80 |
|
Tax exempt |
|
316,343 |
|
|
2,229 |
|
|
0.70 |
|
Leases |
|
299,534 |
|
|
893 |
|
|
0.30 |
|
Commercial real
estate:(1) |
|
|
|
|
|
|
Residential construction |
|
64,986 |
|
|
736 |
|
|
1.13 |
|
Commercial construction |
|
386,275 |
|
|
4,042 |
|
|
1.05 |
|
Land |
|
103,109 |
|
|
3,577 |
|
|
3.47 |
|
Office |
|
834,123 |
|
|
6,002 |
|
|
0.72 |
|
Industrial |
|
719,470 |
|
|
6,349 |
|
|
0.88 |
|
Retail |
|
834,507 |
|
|
6,045 |
|
|
0.72 |
|
Multi-family |
|
752,106 |
|
|
7,956 |
|
|
1.06 |
|
Mixed use and other |
|
1,731,583 |
|
|
13,545 |
|
|
0.78 |
|
Home
equity(1) |
|
664,811 |
|
|
11,678 |
|
|
1.76 |
|
Residential real
estate(1) |
|
615,312 |
|
|
6,027 |
|
|
0.98 |
|
Total core loan
portfolio |
|
$ |
11,278,407 |
|
|
$ |
102,247 |
|
|
0.91 |
% |
Commercial: |
|
|
|
|
|
|
Franchise |
|
$ |
334,910 |
|
|
$ |
3,357 |
|
|
1.00 |
% |
Mortgage warehouse lines of
credit |
|
309,632 |
|
|
2,241 |
|
|
0.72 |
|
Community Advantage - homeowner
associations |
|
141,351 |
|
|
353 |
|
|
0.25 |
|
Aircraft |
|
4,498 |
|
|
53 |
|
|
1.18 |
|
Purchased non-covered commercial
loans (2) |
|
589,028 |
|
|
744 |
|
|
0.13 |
|
Commercial real
estate: |
|
|
|
|
|
|
Purchased non-covered commercial
real estate (2) |
|
482,525 |
|
|
96 |
|
|
0.02 |
|
Purchased non-covered
home equity (2) |
|
78,057 |
|
|
6 |
|
|
0.01 |
|
Purchased non-covered
residential real estate (2) |
|
48,286 |
|
|
76 |
|
|
0.16 |
|
Premium finance
receivables |
|
|
|
|
|
|
U.S. commercial insurance
loans |
|
2,139,966 |
|
|
5,416 |
|
|
0.25 |
|
Canada commercial insurance loans
(2) |
|
290,267 |
|
|
554 |
|
|
0.19 |
|
Life insurance loans
(1) |
|
3,020,472 |
|
|
1,305 |
|
|
0.04 |
|
Purchased life insurance loans
(2) |
|
262,887 |
|
|
— |
|
|
— |
|
Consumer and other
(1) |
|
117,897 |
|
|
1,244 |
|
|
1.06 |
|
Purchased non-covered
consumer and other (2) |
|
3,078 |
|
|
1 |
|
|
0.03 |
|
Total consumer, niche and
purchased loan portfolio |
|
$ |
7,822,854 |
|
|
$ |
15,446 |
|
|
0.20 |
% |
Total loans, net of
unearned income, excluding covered loans |
|
$ |
19,101,261 |
|
|
$ |
117,693 |
|
|
0.62 |
% |
Non-accretable credit
discounts on purchased loans reported in accordance with ASC
310-30, excluding covered loans |
|
|
|
$ |
20,940 |
|
|
|
Total allowance for loan
losses and non-accretable credit discounts on purchased loans,
excluding covered loans |
|
|
|
$ |
138,633 |
|
|
0.72 |
% |
|
(1 |
) |
Excludes
purchased loans reported in accordance with ASC 310-20 and ASC
310-30. |
|
(2 |
) |
Purchased loans represent loans reported in accordance with ASC
310-20 and ASC 310-30. |
|
|
|
|
As of June 30, 2016 |
|
|
Recorded |
|
Calculated |
|
As a percentage
of its own respective |
(Dollars in thousands) |
|
Investment |
|
Allowance |
|
category’s balance |
Commercial:(1) |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
2,986,178 |
|
|
$ |
26,037 |
|
|
0.87 |
% |
Asset-based lending |
|
841,028 |
|
|
6,735 |
|
|
0.80 |
|
Tax exempt |
|
288,091 |
|
|
2,027 |
|
|
0.70 |
|
Leases |
|
267,686 |
|
|
807 |
|
|
0.30 |
|
Commercial real
estate:(1) |
|
|
|
|
|
|
Residential construction |
|
67,006 |
|
|
768 |
|
|
1.15 |
|
Commercial construction |
|
336,486 |
|
|
3,551 |
|
|
1.06 |
|
Land |
|
100,187 |
|
|
3,455 |
|
|
3.45 |
|
Office |
|
856,193 |
|
|
6,099 |
|
|
0.71 |
|
Industrial |
|
717,313 |
|
|
6,439 |
|
|
0.90 |
|
Retail |
|
830,284 |
|
|
6,040 |
|
|
0.73 |
|
Multi-family |
|
732,449 |
|
|
7,736 |
|
|
1.06 |
|
Mixed use and other |
|
1,678,829 |
|
|
12,622 |
|
|
0.75 |
|
Home
equity(1) |
|
673,741 |
|
|
11,367 |
|
|
1.69 |
|
Residential real
estate(1) |
|
599,262 |
|
|
5,333 |
|
|
0.89 |
|
Total core loan
portfolio |
|
$ |
10,974,733 |
|
|
$ |
99,016 |
|
|
0.90 |
% |
Commercial: |
|
|
|
|
|
|
Franchise |
|
$ |
289,905 |
|
|
$ |
3,337 |
|
|
1.15 |
% |
Mortgage warehouse lines of
credit |
|
270,586 |
|
|
1,976 |
|
|
0.73 |
|
Community Advantage - homeowner
associations |
|
134,273 |
|
|
3 |
|
|
0.00 |
|
Aircraft |
|
4,597 |
|
|
54 |
|
|
1.17 |
|
Purchased non-covered commercial
loans (2) |
|
62,189 |
|
|
678 |
|
|
1.09 |
|
Commercial real
estate: |
|
|
|
|
|
|
Purchased non-covered commercial
real estate (2) |
|
529,587 |
|
|
114 |
|
|
0.02 |
|
Purchased non-covered
home equity (2) |
|
87,163 |
|
|
16 |
|
|
0.02 |
|
Purchased non-covered
residential real estate (2) |
|
54,402 |
|
|
72 |
|
|
0.13 |
|
Premium finance
receivables |
|
|
|
|
|
|
U.S. commercial insurance
loans |
|
2,181,222 |
|
|
5,776 |
|
|
0.26 |
|
Canada commercial insurance loans
(2) |
|
297,058 |
|
|
598 |
|
|
0.20 |
|
Life insurance loans
(1) |
|
2,869,960 |
|
|
1,440 |
|
|
0.05 |
|
Purchased life insurance loans
(2) |
|
291,602 |
|
|
— |
|
|
— |
|
Consumer and other
(1) |
|
123,944 |
|
|
1,275 |
|
|
1.03 |
|
Purchased non-covered
consumer and other (2) |
|
3,434 |
|
|
1 |
|
|
0.03 |
|
Total consumer, niche and
purchased loan portfolio |
|
$ |
7,199,922 |
|
|
$ |
15,340 |
|
|
0.21 |
% |
Total loans, net of
unearned income, excluding covered loans |
|
$ |
18,174,655 |
|
|
$ |
114,356 |
|
|
0.63 |
% |
Non-accretable credit
discounts on purchased loans reported in accordance with ASC
310-30, excluding covered loans |
|
|
|
$ |
27,039 |
|
|
|
Total allowance for loan
losses and non-accretable credit discounts on purchased loans,
excluding covered loans |
|
|
|
$ |
141,395 |
|
|
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 part of the regular quarterly review
performed by management to determine if the Company’s allowance for
loan losses is appropriate, an analysis is prepared on the loan
portfolio based upon a breakout of core loans and consumer, niche
and purchased loans. A summary of the allowance for loan losses
calculated for the loan components in both the core loan portfolio
and the consumer, niche and purchased loan portfolio was shown on
the previous pages as of September 30, 2016 and June 30,
2016.
The increase in the allowance for loan losses to
core loans in the third quarter of 2016 compared to the second
quarter of 2016 was attributable to $303.7 million core loan
portfolio growth.
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 0.72% of the total loan portfolio
as of September 30, 2016 and 0.78% of the total loan portfolio
as of June 30, 2016.
The tables below show the aging of the Company’s
loan portfolio at September 30, 2016 and June 30,
2016:
|
|
|
|
90+ days |
|
60-89 |
|
30-59 |
|
|
|
|
As of September
30, 2016 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, industrial and
other |
|
$ |
15,809 |
|
|
$ |
— |
|
|
$ |
7,324 |
|
|
$ |
8,987 |
|
|
$ |
3,573,396 |
|
|
$ |
3,605,516 |
|
Franchise |
|
— |
|
|
— |
|
|
458 |
|
|
1,626 |
|
|
872,661 |
|
|
874,745 |
|
Mortgage warehouse lines of
credit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
309,632 |
|
|
309,632 |
|
Asset-based lending |
|
234 |
|
|
— |
|
|
3,772 |
|
|
3,741 |
|
|
837,972 |
|
|
845,719 |
|
Leases |
|
375 |
|
|
— |
|
|
239 |
|
|
— |
|
|
299,339 |
|
|
299,953 |
|
PCI - commercial
(1) |
|
— |
|
|
1,783 |
|
|
— |
|
|
1,036 |
|
|
13,160 |
|
|
15,979 |
|
Total commercial |
|
16,418 |
|
|
1,783 |
|
|
11,793 |
|
|
15,390 |
|
|
5,906,160 |
|
|
5,951,544 |
|
Commercial real
estate |
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
400 |
|
|
— |
|
|
— |
|
|
3,775 |
|
|
447,302 |
|
|
451,477 |
|
Land |
|
1,208 |
|
|
— |
|
|
787 |
|
|
300 |
|
|
105,406 |
|
|
107,701 |
|
Office |
|
3,609 |
|
|
— |
|
|
6,457 |
|
|
8,062 |
|
|
865,954 |
|
|
884,082 |
|
Industrial |
|
9,967 |
|
|
— |
|
|
940 |
|
|
2,961 |
|
|
753,636 |
|
|
767,504 |
|
Retail |
|
909 |
|
|
— |
|
|
1,340 |
|
|
8,723 |
|
|
884,369 |
|
|
895,341 |
|
Multi-family |
|
90 |
|
|
— |
|
|
3,051 |
|
|
2,169 |
|
|
789,645 |
|
|
794,955 |
|
Mixed use and other |
|
6,442 |
|
|
— |
|
|
2,157 |
|
|
5,184 |
|
|
1,837,724 |
|
|
1,851,507 |
|
PCI - commercial real estate
(1) |
|
— |
|
|
21,433 |
|
|
1,509 |
|
|
4,066 |
|
|
129,109 |
|
|
156,117 |
|
Total commercial real estate |
|
22,625 |
|
|
21,433 |
|
|
16,241 |
|
|
35,240 |
|
|
5,813,145 |
|
|
5,908,684 |
|
Home equity |
|
9,309 |
|
|
— |
|
|
1,728 |
|
|
3,842 |
|
|
727,989 |
|
|
742,868 |
|
Residential real estate,
including PCI |
|
12,205 |
|
|
1,496 |
|
|
2,232 |
|
|
1,088 |
|
|
646,577 |
|
|
663,598 |
|
Premium finance
receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
14,214 |
|
|
7,754 |
|
|
6,968 |
|
|
10,291 |
|
|
2,391,006 |
|
|
2,430,233 |
|
Life insurance loans |
|
— |
|
|
— |
|
|
9,960 |
|
|
3,717 |
|
|
3,006,795 |
|
|
3,020,472 |
|
PCI - life insurance loans
(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
262,887 |
|
|
262,887 |
|
Consumer and other,
including PCI |
|
543 |
|
|
124 |
|
|
204 |
|
|
871 |
|
|
119,233 |
|
|
120,975 |
|
Total loans, net of unearned
income, excluding covered loans |
|
$ |
75,314 |
|
|
$ |
32,590 |
|
|
$ |
49,126 |
|
|
$ |
70,439 |
|
|
$ |
18,873,792 |
|
|
$ |
19,101,261 |
|
Covered loans |
|
2,331 |
|
|
4,806 |
|
|
1,545 |
|
|
2,456 |
|
|
84,802 |
|
|
95,940 |
|
Total loans, net of unearned
income |
|
$ |
77,645 |
|
|
$ |
37,396 |
|
|
$ |
50,671 |
|
|
$ |
72,895 |
|
|
$ |
18,958,594 |
|
|
$ |
19,197,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September
30, 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 |
% |
|
— |
% |
|
0.2 |
% |
|
0.2 |
% |
|
99.2 |
% |
|
100.0 |
% |
Franchise |
|
— |
|
|
— |
|
|
0.1 |
|
|
0.2 |
|
|
99.7 |
|
|
100.0 |
|
Mortgage warehouse lines of
credit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Asset-based lending |
|
— |
|
|
— |
|
|
0.4 |
|
|
0.4 |
|
|
99.2 |
|
|
100.0 |
|
Leases |
|
0.1 |
|
|
— |
|
|
0.1 |
|
|
— |
|
|
99.8 |
|
|
100.0 |
|
PCI - commercial(1) |
|
— |
|
|
11.2 |
|
|
— |
|
|
6.5 |
|
|
82.3 |
|
|
100.0 |
|
Total commercial |
|
0.3 |
|
|
— |
|
|
0.2 |
|
|
0.3 |
|
|
99.2 |
|
|
100.0 |
|
Commercial real
estate |
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
0.1 |
|
|
— |
|
|
— |
|
|
0.8 |
|
|
99.1 |
|
|
100.0 |
|
Land |
|
1.1 |
|
|
— |
|
|
0.7 |
|
|
0.3 |
|
|
97.9 |
|
|
100.0 |
|
Office |
|
0.4 |
|
|
— |
|
|
0.7 |
|
|
0.9 |
|
|
98.0 |
|
|
100.0 |
|
Industrial |
|
1.3 |
|
|
— |
|
|
0.1 |
|
|
0.4 |
|
|
98.2 |
|
|
100.0 |
|
Retail |
|
0.1 |
|
|
— |
|
|
0.1 |
|
|
1.0 |
|
|
98.8 |
|
|
100.0 |
|
Multi-family |
|
— |
|
|
— |
|
|
0.4 |
|
|
0.3 |
|
|
99.3 |
|
|
100.0 |
|
Mixed use and other |
|
0.3 |
|
|
— |
|
|
0.1 |
|
|
0.3 |
|
|
99.3 |
|
|
100.0 |
|
PCI - commercial real
estate (1) |
|
— |
|
|
13.7 |
|
|
1.0 |
|
|
2.6 |
|
|
82.7 |
|
|
100.0 |
|
Total commercial real estate |
|
0.4 |
|
|
0.4 |
|
|
0.3 |
|
|
0.6 |
|
|
98.3 |
|
|
100.0 |
|
Home equity |
|
1.3 |
|
|
— |
|
|
0.2 |
|
|
0.5 |
|
|
98.0 |
|
|
100.0 |
|
Residential real estate,
including PCI |
|
1.8 |
|
|
0.2 |
|
|
0.3 |
|
|
0.2 |
|
|
97.5 |
|
|
100.0 |
|
Premium finance
receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
0.6 |
|
|
0.3 |
|
|
0.3 |
|
|
0.4 |
|
|
98.4 |
|
|
100.0 |
|
Life insurance loans |
|
— |
|
|
— |
|
|
0.3 |
|
|
0.1 |
|
|
99.6 |
|
|
100.0 |
|
PCI - life insurance loans
(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Consumer and other,
including PCI |
|
0.4 |
|
|
0.1 |
|
|
0.2 |
|
|
0.7 |
|
|
98.6 |
|
|
100.0 |
|
Total loans, net of unearned
income, excluding covered loans |
|
0.4 |
% |
|
0.2 |
% |
|
0.3 |
% |
|
0.4 |
% |
|
98.7 |
% |
|
100.0 |
% |
Covered loans |
|
2.4 |
|
|
5.0 |
|
|
1.6 |
|
|
2.6 |
|
|
88.4 |
|
|
100.0 |
|
Total loans, net of unearned
income |
|
0.4 |
% |
|
0.2 |
% |
|
0.3 |
% |
|
0.4 |
% |
|
98.7 |
% |
|
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.
|
|
|
|
|
|
|
90+ days |
|
60-89 |
|
30-59 |
|
|
|
|
As of June 30,
2016 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, industrial and
other |
|
$ |
16,414 |
|
|
$ |
— |
|
|
$ |
1,412 |
|
|
$ |
22,317 |
|
|
$ |
3,416,432 |
|
|
$ |
3,456,575 |
|
Franchise |
|
— |
|
|
— |
|
|
560 |
|
|
87 |
|
|
289,258 |
|
|
289,905 |
|
Mortgage warehouse lines of
credit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
270,586 |
|
|
270,586 |
|
Asset-based lending |
|
— |
|
|
235 |
|
|
1,899 |
|
|
6,421 |
|
|
834,112 |
|
|
842,667 |
|
Leases |
|
387 |
|
|
— |
|
|
48 |
|
|
— |
|
|
267,639 |
|
|
268,074 |
|
PCI - commercial(1) |
|
— |
|
|
1,956 |
|
|
630 |
|
|
1,426 |
|
|
12,714 |
|
|
16,726 |
|
Total commercial |
|
16,801 |
|
|
2,191 |
|
|
4,549 |
|
|
30,251 |
|
|
5,090,741 |
|
|
5,144,533 |
|
Commercial real
estate |
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
673 |
|
|
— |
|
|
46 |
|
|
7,922 |
|
|
396,264 |
|
|
404,905 |
|
Land |
|
1,725 |
|
|
— |
|
|
— |
|
|
340 |
|
|
103,816 |
|
|
105,881 |
|
Office |
|
6,274 |
|
|
— |
|
|
5,452 |
|
|
4,936 |
|
|
892,791 |
|
|
909,453 |
|
Industrial |
|
10,295 |
|
|
— |
|
|
1,108 |
|
|
719 |
|
|
754,647 |
|
|
766,769 |
|
Retail |
|
916 |
|
|
— |
|
|
535 |
|
|
6,450 |
|
|
889,945 |
|
|
897,846 |
|
Multi-family |
|
90 |
|
|
— |
|
|
2,077 |
|
|
1,275 |
|
|
775,075 |
|
|
778,517 |
|
Mixed use and other |
|
4,442 |
|
|
— |
|
|
4,285 |
|
|
8,007 |
|
|
1,795,931 |
|
|
1,812,665 |
|
PCI - commercial real
estate (1) |
|
— |
|
|
27,228 |
|
|
1,663 |
|
|
2,608 |
|
|
140,799 |
|
|
172,298 |
|
Total commercial real estate |
|
24,415 |
|
|
27,228 |
|
|
15,166 |
|
|
32,257 |
|
|
5,749,268 |
|
|
5,848,334 |
|
Home equity |
|
8,562 |
|
|
— |
|
|
380 |
|
|
4,709 |
|
|
747,253 |
|
|
760,904 |
|
Residential real estate,
including PCI |
|
12,413 |
|
|
1,479 |
|
|
1,367 |
|
|
299 |
|
|
638,106 |
|
|
653,664 |
|
Premium finance
receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
14,497 |
|
|
10,558 |
|
|
6,966 |
|
|
9,456 |
|
|
2,436,803 |
|
|
2,478,280 |
|
Life insurance loans |
|
— |
|
|
— |
|
|
46,651 |
|
|
11,953 |
|
|
2,811,356 |
|
|
2,869,960 |
|
PCI - life insurance loans
(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
291,602 |
|
|
291,602 |
|
Consumer and other,
including PCI |
|
475 |
|
|
226 |
|
|
610 |
|
|
1,451 |
|
|
124,616 |
|
|
127,378 |
|
Total loans, net of unearned
income, excluding covered loans |
|
$ |
77,163 |
|
|
$ |
41,682 |
|
|
$ |
75,689 |
|
|
$ |
90,376 |
|
|
$ |
17,889,745 |
|
|
$ |
18,174,655 |
|
Covered loans |
|
2,651 |
|
|
6,810 |
|
|
697 |
|
|
1,610 |
|
|
93,480 |
|
|
105,248 |
|
Total loans, net of unearned
income |
|
$ |
79,814 |
|
|
$ |
48,492 |
|
|
$ |
76,386 |
|
|
$ |
91,986 |
|
|
$ |
17,983,225 |
|
|
$ |
18,279,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30,
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 |
|
0.5 |
% |
|
— |
% |
|
— |
% |
|
0.6 |
% |
|
98.9 |
% |
|
100.0 |
% |
Franchise |
|
— |
|
|
— |
|
|
0.2 |
|
|
— |
|
|
99.8 |
|
|
100.0 |
|
Mortgage warehouse lines of
credit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Asset-based lending |
|
— |
|
|
— |
|
|
0.2 |
|
|
0.8 |
|
|
99.0 |
|
|
100.0 |
|
Leases |
|
0.1 |
|
|
— |
|
|
— |
|
|
— |
|
|
99.9 |
|
|
100.0 |
|
PCI - commercial(1) |
|
— |
|
|
11.7 |
|
|
3.8 |
|
|
8.5 |
|
|
76.0 |
|
|
100.0 |
|
Total commercial |
|
0.3 |
|
|
— |
|
|
0.1 |
|
|
0.6 |
|
|
99.0 |
|
|
100.0 |
|
Commercial real
estate |
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
0.2 |
|
|
— |
|
|
— |
|
|
2.0 |
|
|
97.8 |
|
|
100.0 |
|
Land |
|
1.6 |
|
|
— |
|
|
— |
|
|
0.3 |
|
|
98.1 |
|
|
100.0 |
|
Office |
|
0.7 |
|
|
— |
|
|
0.6 |
|
|
0.5 |
|
|
98.2 |
|
|
100.0 |
|
Industrial |
|
1.3 |
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
98.5 |
|
|
100.0 |
|
Retail |
|
0.1 |
|
|
— |
|
|
0.1 |
|
|
0.7 |
|
|
99.1 |
|
|
100.0 |
|
Multi-family |
|
— |
|
|
— |
|
|
0.3 |
|
|
0.2 |
|
|
99.5 |
|
|
100.0 |
|
Mixed use and other |
|
0.2 |
|
|
— |
|
|
0.2 |
|
|
0.4 |
|
|
99.2 |
|
|
100.0 |
|
PCI - commercial real estate
(1) |
|
— |
|
|
15.8 |
|
|
1.0 |
|
|
1.5 |
|
|
81.7 |
|
|
100.0 |
|
Total commercial real estate |
|
0.4 |
|
|
0.5 |
|
|
0.3 |
|
|
0.6 |
|
|
98.2 |
|
|
100.0 |
|
Home equity |
|
1.1 |
|
|
— |
|
|
— |
|
|
0.6 |
|
|
98.3 |
|
|
100.0 |
|
Residential real estate,
including PCI |
|
1.9 |
|
|
0.2 |
|
|
0.2 |
|
|
— |
|
|
97.7 |
|
|
100.0 |
|
Premium finance
receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
0.6 |
|
|
0.4 |
|
|
0.3 |
|
|
0.4 |
|
|
98.3 |
|
|
100.0 |
|
Life insurance loans |
|
— |
|
|
— |
|
|
1.6 |
|
|
0.4 |
|
|
98.0 |
|
|
100.0 |
|
PCI - life insurance loans
(1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Consumer and other,
including PCI |
|
0.4 |
|
|
0.2 |
|
|
0.5 |
|
|
1.1 |
|
|
97.8 |
|
|
100.0 |
|
Total loans, net of unearned
income, excluding covered loans |
|
0.4 |
% |
|
0.2 |
% |
|
0.4 |
% |
|
0.5 |
% |
|
98.5 |
% |
|
100.0 |
% |
Covered loans |
|
2.5 |
|
|
6.5 |
|
|
0.7 |
|
|
1.5 |
|
|
88.8 |
|
|
100.0 |
|
Total loans, net of unearned
income |
|
0.4 |
% |
|
0.3 |
% |
|
0.4 |
% |
|
0.5 |
% |
|
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 September 30, 2016, $49.1 million of
all loans, excluding covered loans, or 0.3%, were 60 to 89 days
past due and $70.4 million, or 0.4%, were 30 to 59 days (or one
payment) past due. As of June 30, 2016, $75.7 million of all
loans, excluding covered loans, or 0.4%, were 60 to 89 days past
due and $90.4 million, or 0.5%, were 30 to 59 days (or one payment)
past due. The majority of the commercial and commercial real estate
loans shown as 60 to 89 days and 30 to 59 days past due are
included on the Company’s internal problem loan reporting system.
Loans on this system are closely monitored by management on a
monthly basis.
The Company’s home equity and residential loan
portfolios continue to exhibit low delinquency ratios. Home equity
loans at September 30, 2016 that are current with regard to
the contractual terms of the loan agreement represent 98.0% of the
total home equity portfolio. Residential real estate loans at
September 30, 2016 that are current with regards to the
contractual terms of the loan agreements comprise 97.5% of total
residential real estate loans outstanding.
Non-performing Assets, excluding
covered assets
The following table sets forth Wintrust’s
non-performing assets and troubled debt restructurings
("TDRs") performing under the contractual terms of the loan
agreement, excluding covered assets and non-covered PCI loans, at
the dates indicated.
|
|
September 30, |
|
June 30, |
|
September 30, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
Loans past due
greater than 90 days and still
accruing(1): |
|
|
|
|
|
|
Commercial |
|
$ |
— |
|
|
$ |
235 |
|
|
$ |
— |
|
Commercial real estate |
|
— |
|
|
— |
|
|
— |
|
Home equity |
|
— |
|
|
— |
|
|
— |
|
Residential real estate |
|
— |
|
|
— |
|
|
— |
|
Premium finance receivables -
commercial |
|
7,754 |
|
|
10,558 |
|
|
8,231 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
60 |
|
|
163 |
|
|
140 |
|
Total loans past due greater than
90 days and still accruing |
|
7,814 |
|
|
10,956 |
|
|
8,371 |
|
Non-accrual
loans(2): |
|
|
|
|
|
|
Commercial |
|
16,418 |
|
|
16,801 |
|
|
12,018 |
|
Commercial real estate |
|
22,625 |
|
|
24,415 |
|
|
28,617 |
|
Home equity |
|
9,309 |
|
|
8,562 |
|
|
8,365 |
|
Residential real estate |
|
12,205 |
|
|
12,413 |
|
|
14,557 |
|
Premium finance receivables -
commercial |
|
14,214 |
|
|
14,497 |
|
|
13,751 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
543 |
|
|
475 |
|
|
297 |
|
Total non-accrual loans |
|
75,314 |
|
|
77,163 |
|
|
77,605 |
|
Total
non-performing loans: |
|
|
|
|
|
|
Commercial |
|
16,418 |
|
|
17,036 |
|
|
12,018 |
|
Commercial real estate |
|
22,625 |
|
|
24,415 |
|
|
28,617 |
|
Home equity |
|
9,309 |
|
|
8,562 |
|
|
8,365 |
|
Residential real estate |
|
12,205 |
|
|
12,413 |
|
|
14,557 |
|
Premium finance receivables -
commercial |
|
21,968 |
|
|
25,055 |
|
|
21,982 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
603 |
|
|
638 |
|
|
437 |
|
Total non-performing loans |
|
$ |
83,128 |
|
|
$ |
88,119 |
|
|
$ |
85,976 |
|
Other real estate owned |
|
19,933 |
|
|
22,154 |
|
|
29,053 |
|
Other real estate owned - from
acquisitions |
|
15,117 |
|
|
15,909 |
|
|
22,827 |
|
Other repossessed assets |
|
428 |
|
|
420 |
|
|
193 |
|
Total non-performing assets |
|
$ |
118,606 |
|
|
$ |
126,602 |
|
|
$ |
138,049 |
|
TDRs performing under the
contractual terms of the loan agreement |
|
$ |
29,440 |
|
|
$ |
33,310 |
|
|
$ |
49,173 |
|
Total
non-performing loans by category as a percent of its own
respective category’s period-end balance: |
|
|
|
|
|
|
Commercial |
|
0.28 |
% |
|
0.33 |
% |
|
0.27 |
% |
Commercial real estate |
|
0.38 |
|
|
0.42 |
|
|
0.54 |
|
Home equity |
|
1.25 |
|
|
1.13 |
|
|
1.05 |
|
Residential real estate |
|
1.84 |
|
|
1.90 |
|
|
2.55 |
|
Premium finance receivables -
commercial |
|
0.90 |
|
|
1.01 |
|
|
0.91 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
0.50 |
|
|
0.50 |
|
|
0.33 |
|
Total loans, net of unearned
income |
|
0.44 |
% |
|
0.48 |
% |
|
0.53 |
% |
Total
non-performing assets as a percentage of total
assets |
|
0.47 |
% |
|
0.52 |
% |
|
0.63 |
% |
Allowance for loan
losses as a percentage of total non-performing
loans |
|
141.58 |
% |
|
129.78 |
% |
|
119.79 |
% |
|
(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 $14.8 million, $16.3
million, and $10.1 million as of September 30, 2016,
June 30, 2016, and September 30, 2015,
respectively. |
|
|
The ratio of non-performing assets to total
assets was 0.47% as of September 30, 2016, compared to 0.52%
at June 30, 2016, and 0.63% at September 30, 2015.
Non-performing assets, excluding covered assets, totaled $118.6
million at September 30, 2016, compared to $126.6 million at
June 30, 2016 and $138.0 million at September 30, 2015.
Non-performing loans, excluding covered loans, totaled $83.1
million, or 0.44% of total loans, at September 30, 2016
compared to $88.1 million, or 0.48% of total loans, at
June 30, 2016 and $86.0 million, or 0.53% of total loans, at
September 30, 2015. The decrease in non-performing loans,
excluding covered loans, compared to June 30, 2016 is
primarily the result of a $3.1 million decrease in the commercial
premium finance receivables portfolio and a $1.8 million decrease
in the commercial real estate loan portfolio. OREO, excluding
covered OREO, of $35.1 million at September 30, 2016 decreased
$3.0 million compared to $38.1 million at June 30, 2016 and
decreased $16.8 million compared to $51.9 million at
September 30, 2015.
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 |
|
Nine Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Balance at beginning of
period |
|
$ |
88,119 |
|
|
$ |
89,499 |
|
|
$ |
76,554 |
|
|
$ |
84,057 |
|
|
$ |
78,677 |
|
Additions, net |
|
9,522 |
|
|
10,351 |
|
|
24,333 |
|
|
32,039 |
|
|
42,141 |
|
Return to performing status |
|
(231 |
) |
|
(873 |
) |
|
(1,028 |
) |
|
(3,110 |
) |
|
(2,591 |
) |
Payments received |
|
(5,235 |
) |
|
(4,810 |
) |
|
(5,468 |
) |
|
(13,353 |
) |
|
(16,417 |
) |
Transfer to OREO and other
repossessed assets |
|
(2,270 |
) |
|
(1,818 |
) |
|
(1,773 |
) |
|
(6,168 |
) |
|
(8,678 |
) |
Charge-offs |
|
(3,353 |
) |
|
(2,943 |
) |
|
(4,081 |
) |
|
(6,829 |
) |
|
(8,637 |
) |
Net change for niche loans
(1) |
|
(3,424 |
) |
|
(1,287 |
) |
|
(2,561 |
) |
|
(3,508 |
) |
|
1,481 |
|
Balance at end of
period |
|
$ |
83,128 |
|
|
$ |
88,119 |
|
|
$ |
85,976 |
|
|
$ |
83,128 |
|
|
$ |
85,976 |
|
|
(1 |
) |
This
includes activity for premium finance receivables and indirect
consumer loans. |
|
|
TDRs
The table below presents a summary of TDRs as of
the respective date, presented by loan category and accrual
status:
|
|
September 30, |
|
June 30, |
|
September 30, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
Accruing
TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
2,285 |
|
|
$ |
3,931 |
|
|
$ |
5,717 |
|
Commercial real estate |
|
22,261 |
|
|
24,450 |
|
|
39,867 |
|
Residential real estate and
other |
|
4,894 |
|
|
4,929 |
|
|
3,589 |
|
Total accrual |
|
$ |
29,440 |
|
|
$ |
33,310 |
|
|
$ |
49,173 |
|
Non-accrual
TDRs: (1) |
|
|
|
|
|
|
Commercial |
|
$ |
2,134 |
|
|
$ |
1,477 |
|
|
$ |
147 |
|
Commercial real estate |
|
10,610 |
|
|
12,240 |
|
|
5,778 |
|
Residential real estate and
other |
|
2,092 |
|
|
2,608 |
|
|
4,222 |
|
Total non-accrual |
|
$ |
14,836 |
|
|
$ |
16,325 |
|
|
$ |
10,147 |
|
Total
TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
4,419 |
|
|
$ |
5,408 |
|
|
$ |
5,864 |
|
Commercial real estate |
|
32,871 |
|
|
36,690 |
|
|
45,645 |
|
Residential real estate and
other |
|
6,986 |
|
|
7,537 |
|
|
7,811 |
|
Total TDRs |
|
$ |
44,276 |
|
|
$ |
49,635 |
|
|
$ |
59,320 |
|
Weighted-average
contractual interest rate of TDRs |
|
4.33 |
% |
|
4.31 |
% |
|
4.04 |
% |
|
(1 |
) |
Included
in total non-performing loans. |
|
|
At September 30, 2016, the Company had
$44.3 million in loans modified in TDRs. The $44.3 million in
TDRs represents 89 credits in which economic concessions were
granted to certain borrowers to better align the terms of their
loans with their current ability to pay. The balance
decreased from $49.6 million representing 97 credits at
June 30, 2016 and decreased from $59.3 million representing
114 credits at September 30, 2015.
The table below presents a summary of TDRs as of
September 30, 2016 and September 30, 2015, and shows the
changes in the balance during the periods presented:
Three Months Ended
September 30, 2016
(Dollars in thousands) |
|
Commercial |
|
Commercial
Real Estate |
|
Residential
Real Estate
and Other |
|
Total |
Balance at beginning of
period |
|
$ |
5,408 |
|
|
$ |
36,690 |
|
|
$ |
7,537 |
|
|
$ |
49,635 |
|
Additions during the
period |
|
28 |
|
|
— |
|
|
43 |
|
|
71 |
|
Reductions: |
|
|
|
|
|
|
|
|
Charge-offs |
|
(761 |
) |
|
(204 |
) |
|
— |
|
|
(965 |
) |
Transferred to OREO and other
repossessed assets |
|
— |
|
|
(681 |
) |
|
(535 |
) |
|
(1,216 |
) |
Removal of TDR loan status
(1) |
|
— |
|
|
(1,323 |
) |
|
— |
|
|
(1,323 |
) |
Payments received, net |
|
(256 |
) |
|
(1,611 |
) |
|
(59 |
) |
|
(1,926 |
) |
Balance at period
end |
|
$ |
4,419 |
|
|
$ |
32,871 |
|
|
$ |
6,986 |
|
|
$ |
44,276 |
|
|
(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.
|
|
|
Three Months Ended September 30,
2015
(Dollars in thousands) |
|
Commercial |
|
Commercial
Real Estate |
|
Residential
Real Estate
and Other |
|
Total |
Balance at beginning of
period |
|
$ |
6,204 |
|
|
$ |
48,450 |
|
|
$ |
8,122 |
|
|
$ |
62,776 |
|
Additions during the
period |
|
— |
|
|
— |
|
|
222 |
|
|
222 |
|
Reductions: |
|
|
|
|
|
|
|
|
Charge-offs |
|
— |
|
|
(267 |
) |
|
(52 |
) |
|
(319 |
) |
Transferred to OREO and other
repossessed assets |
|
— |
|
|
— |
|
|
(175 |
) |
|
(175 |
) |
Removal of TDR loan status
(1) |
|
(234 |
) |
|
(1,581 |
) |
|
- |
|
(1,815 |
) |
Payments received, net |
|
(106 |
) |
|
(957 |
) |
|
(306 |
) |
|
(1,369 |
) |
Balance at period
end |
|
$ |
5,864 |
|
|
$ |
45,645 |
|
|
$ |
7,811 |
|
|
$ |
59,320 |
|
Nine Months Ended September 30,
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 |
|
345 |
|
|
8,521 |
|
|
583 |
|
|
9,449 |
|
Reductions: |
|
|
|
|
|
|
|
|
Charge-offs |
|
(781 |
) |
|
(1,038 |
) |
|
(212 |
) |
|
(2,031 |
) |
Transferred to OREO and other
repossessed assets |
|
— |
|
|
(1,365 |
) |
|
(535 |
) |
|
(1,900 |
) |
Removal of TDR loan status
(1) |
|
— |
|
|
(6,479 |
) |
|
— |
|
|
(6,479 |
) |
Payments received, net |
|
(892 |
) |
|
(5,475 |
) |
|
(249 |
) |
|
(6,616 |
) |
Balance at period
end |
|
$ |
4,419 |
|
|
$ |
32,871 |
|
|
$ |
6,986 |
|
|
$ |
44,276 |
|
Nine Months Ended September 30,
2015
(Dollars in thousands) |
|
Commercial |
|
Commercial
Real Estate |
|
Residential
Real Estate
and Other |
|
Total |
Balance at beginning of
period |
|
$ |
7,576 |
|
|
$ |
67,623 |
|
|
$ |
7,076 |
|
|
$ |
82,275 |
|
Additions during the
period |
|
— |
|
|
169 |
|
|
1,664 |
|
|
1,833 |
|
Reductions: |
|
|
|
|
|
|
|
|
Charge-offs |
|
(397 |
) |
|
(268 |
) |
|
(92 |
) |
|
(757 |
) |
Transferred to OREO and other
repossessed assets |
|
(562 |
) |
|
(2,290 |
) |
|
(279 |
) |
|
(3,131 |
) |
Removal of TDR loan status
(1) |
|
(471 |
) |
|
(10,151 |
) |
|
— |
|
|
(10,622 |
) |
Payments received, net |
|
(282 |
) |
|
(9,438 |
) |
|
(558 |
) |
|
(10,278 |
) |
Balance at period
end |
|
$ |
5,864 |
|
|
$ |
45,645 |
|
|
$ |
7,811 |
|
|
$ |
59,320 |
|
|
(1 |
) |
Loan was
previously classified as a troubled debt restructuring and
subsequently performed in compliance with the loan’s modified terms
for a period of six months (including over a calendar year-end) at
a modified interest rate which represented a market rate at the
time of restructuring. Per our TDR policy, the TDR classification
is removed.
|
|
|
Each TDR was reviewed for impairment at
September 30, 2016 and approximately $2.8 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 both the three months ending September
30, 2016 and 2015, the Company recorded $98,000 in interest income
representing this decrease in impairment. For the nine months ended
September 30, 2016 and 2015, the Company recorded $323,000 and
$385,000, respectively, in interest income.
Other Real Estate Owned
The table below presents a summary of other real
estate owned, excluding covered other real estate owned, as of
September 30, 2016, June 30, 2016 and September 30,
2015, and shows the activity for the respective period and the
balance for each property type:
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
Balance at beginning of
period |
|
$ |
38,063 |
|
|
$ |
41,002 |
|
|
$ |
42,080 |
|
Disposals/resolved |
|
(5,967 |
) |
|
(6,591 |
) |
|
(7,611 |
) |
Transfers in at fair value, less
costs to sell |
|
3,958 |
|
|
1,309 |
|
|
6,159 |
|
Transfers in from covered OREO
subsequent to loss share expiration |
|
— |
|
|
3,300 |
|
|
7,316 |
|
Additions from acquisition |
|
— |
|
|
— |
|
|
4,617 |
|
Fair value adjustments |
|
(1,004 |
) |
|
(957 |
) |
|
(681 |
) |
Balance at end of
period |
|
$ |
35,050 |
|
|
$ |
38,063 |
|
|
$ |
51,880 |
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
September 30, |
|
June 30, |
|
September 30, |
Balance by
Property Type |
|
2016 |
|
2016 |
|
2015 |
Residential real
estate |
|
$ |
9,602 |
|
|
$ |
9,153 |
|
|
$ |
12,577 |
|
Residential real estate
development |
|
2,114 |
|
|
2,133 |
|
|
3,147 |
|
Commercial real
estate |
|
23,334 |
|
|
26,777 |
|
|
36,156 |
|
Total |
|
$ |
35,050 |
|
|
$ |
38,063 |
|
|
$ |
51,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
September 30, |
|
June 30, |
|
September 30, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
Period End
Balances: |
|
|
|
|
|
|
Loans |
|
$ |
95,940 |
|
|
$ |
105,248 |
|
|
$ |
168,609 |
|
Other real estate owned |
|
10,399 |
|
|
12,983 |
|
|
28,644 |
|
Other assets |
|
216 |
|
|
238 |
|
|
686 |
|
FDIC indemnification (liability)
asset |
|
(17,945 |
) |
|
(11,729 |
) |
|
(3,033 |
) |
Total net covered assets |
|
$ |
88,610 |
|
|
$ |
106,740 |
|
|
$ |
194,906 |
|
Allowance for
Covered Loan Losses Rollforward: |
|
|
|
|
|
|
Balance at beginning of
quarter: |
|
$ |
2,412 |
|
|
$ |
2,507 |
|
|
$ |
2,215 |
|
Provision for covered loan losses
before benefit attributable to FDIC loss share agreements |
|
(847 |
) |
|
(702 |
) |
|
(1,716 |
) |
Benefit attributable to FDIC loss
share agreements |
|
677 |
|
|
562 |
|
|
1,373 |
|
Net provision for covered loan
losses |
|
(170 |
) |
|
(140 |
) |
|
(343 |
) |
Decrease in FDIC indemnification
liability/asset |
|
(677 |
) |
|
(562 |
) |
|
(1,373 |
) |
Loans charged-off |
|
(918 |
) |
|
(143 |
) |
|
(287 |
) |
Recoveries of loans
charged-off |
|
775 |
|
|
750 |
|
|
2,706 |
|
Net (charge-offs) recoveries |
|
(143 |
) |
|
607 |
|
|
2,419 |
|
Balance at end of quarter |
|
$ |
1,422 |
|
|
$ |
2,412 |
|
|
$ |
2,918 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
September 30, |
|
September 30, |
(Dollars in thousands) |
|
2016 |
|
2015 |
Accretable yield,
beginning balance |
|
$ |
55,630 |
|
|
$ |
63,643 |
|
Acquisitions |
|
— |
|
|
10,407 |
|
Accretable yield amortized
to interest income |
|
(6,449 |
) |
|
(5,939 |
) |
Accretable yield
amortized to indemnification asset/liability (1) |
|
(1,744 |
) |
|
(3,280 |
) |
Reclassification from
non-accretable difference(2) |
|
5,370 |
|
|
2,298 |
|
Increases (decreases) in
interest cash flows due to payments and changes in interest
rates |
|
170 |
|
|
(610 |
) |
Accretable yield,
ending balance (3) |
|
$ |
52,977 |
|
|
$ |
66,519 |
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
(Dollars in thousands) |
|
2016 |
|
2015 |
Accretable yield,
beginning balance |
|
$ |
63,902 |
|
|
$ |
79,102 |
|
Acquisitions |
|
1,266 |
|
|
11,305 |
|
Accretable yield amortized
to interest income |
|
(17,105 |
) |
|
(18,359 |
) |
Accretable yield
amortized to indemnification asset/liability (1) |
|
(5,539 |
) |
|
(10,945 |
) |
Reclassification from
non-accretable difference(2) |
|
12,099 |
|
|
5,154 |
|
(Decreases) increases in
interest cash flows due to payments and changes in interest
rates |
|
(1,646 |
) |
|
262 |
|
Accretable yield,
ending balance (3) |
|
$ |
52,977 |
|
|
$ |
66,519 |
|
|
(1 |
) |
Represents the portion of the current period accreted yield,
resulting from lower expected losses, applied to reduce the loss
share indemnification asset. |
|
(2 |
) |
Reclassification is the result of subsequent increases in
expected principal cash flows. |
|
(3 |
) |
As of
September 30, 2016, the Company estimates that the remaining
accretable yield balance to be amortized to the indemnification
asset for the bank acquisitions is $1.5 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 $6.4 million and $5.9 million in the third
quarter of 2016 and 2015, respectively. For the nine months ended
September 30, 2016 and 2015, the Company recorded accretion to
interest income of $17.1 million and $18.4 million, respectively.
These amounts include accretion from both covered and non-covered
loans, and are included together within interest and fees on loans
in the Consolidated Statements of Income.
Items Impacting Comparative
Financial Results:
Acquisitions
On August 19, 2016, the Company, through its wholly-owned
subsidiary Lake Forest Bank & Trust Company, completed its
acquisition of approximately $555 million in select performing
loans and related relationships from an affiliate of GE Capital
Franchise Finance. The loans are to franchise operators (primarily
quick service restaurant concepts) in the Midwest and in the
Western portion of the United States.
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, the Company acquired Foundations' banking
location in Pewaukee, Wisconsin, approximately $131 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.
Previously Announced
Acquisitions
On July 6, 2016, the Company announced the signing of a
definitive agreement to acquire First Community Financial
Corporation ("FCFC"). FCFC is the parent company of First Community
Bank, an Illinois state-chartered bank, which operates two banking
locations in Elgin, Illinois. As of June 30, 2016, First Community
Bank had approximately $177 million in assets, approximately $79
million in loans and approximately $154 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, 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,
Milwaukee, 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;
- 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 or events after
the date of the press release. Persons are advised, however, to
consult further disclosures management makes on related subjects in
its reports filed with the Securities and Exchange Commission and
in its press releases.
CONFERENCE CALL, WEB CAST AND
REPLAY
The Company will hold a conference call at 2:00
p.m. (CT) Tuesday, October 18, 2016 regarding third quarter and
year-to-date 2016 results. Individuals interested in listening
should call (877) 363-5049 and enter Conference ID #91910010.
A simultaneous audio-only web cast and replay of the conference
call may be accessed via the Company’s web site at (http://www.wintrust.com),
Investor Relations, Investor News and Events,
Presentations & Conference Calls. The text of the third
quarter and year-to-date 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 |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Selected Financial
Condition Data (at end of period): |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
25,321,759 |
|
|
$ |
24,420,616 |
|
|
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
|
$ |
22,035,216 |
|
Total loans, excluding
loans held-for-sale and covered loans |
|
19,101,261 |
|
|
18,174,655 |
|
|
17,446,413 |
|
|
17,118,117 |
|
|
16,316,211 |
|
Total deposits |
|
21,147,655 |
|
|
20,041,750 |
|
|
19,217,071 |
|
|
18,639,634 |
|
|
18,228,469 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
268,566 |
|
|
268,566 |
|
Total shareholders’
equity |
|
2,674,474 |
|
|
2,623,595 |
|
|
2,418,442 |
|
|
2,352,274 |
|
|
2,335,736 |
|
Selected
Statements of Income Data: |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
184,636 |
|
|
175,270 |
|
|
171,509 |
|
|
167,206 |
|
|
165,540 |
|
Net revenue
(1) |
|
271,240 |
|
|
260,069 |
|
|
240,261 |
|
|
232,296 |
|
|
230,493 |
|
Net income |
|
53,115 |
|
|
50,041 |
|
|
49,111 |
|
|
35,512 |
|
|
38,355 |
|
Net income per common
share – Basic |
|
$ |
0.96 |
|
|
$ |
0.94 |
|
|
$ |
0.94 |
|
|
$ |
0.66 |
|
|
$ |
0.71 |
|
Net income per common
share – Diluted |
|
$ |
0.92 |
|
|
$ |
0.90 |
|
|
$ |
0.90 |
|
|
$ |
0.64 |
|
|
$ |
0.69 |
|
Selected Financial
Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
3.21 |
% |
|
3.24 |
% |
|
3.29 |
% |
|
3.26 |
% |
|
3.31 |
% |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
|
3.24 |
% |
|
3.27 |
% |
|
3.32 |
% |
|
3.29 |
% |
|
3.33 |
% |
Non-interest income to
average assets |
|
1.38 |
% |
|
1.44 |
% |
|
1.21 |
% |
|
1.16 |
% |
|
1.19 |
% |
Non-interest expense to
average assets |
|
2.82 |
% |
|
2.89 |
% |
|
2.70 |
% |
|
2.98 |
% |
|
2.93 |
% |
Net overhead ratio
(3) |
|
1.44 |
% |
|
1.46 |
% |
|
1.49 |
% |
|
1.82 |
% |
|
1.74 |
% |
Return on average
assets |
|
0.85 |
% |
|
0.85 |
% |
|
0.86 |
% |
|
0.63 |
% |
|
0.70 |
% |
Return on average common
equity |
|
8.20 |
% |
|
8.43 |
% |
|
8.55 |
% |
|
6.03 |
% |
|
6.60 |
% |
Return on average tangible
common equity (non-GAAP) (2) |
|
10.55 |
% |
|
11.12 |
% |
|
11.33 |
% |
|
8.12 |
% |
|
8.88 |
% |
Average total assets |
|
$ |
24,879,252 |
|
|
$ |
23,754,755 |
|
|
$ |
22,902,913 |
|
|
$ |
22,225,112 |
|
|
$ |
21,679,062 |
|
Average total
shareholders’ equity |
|
2,651,684 |
|
|
2,465,732 |
|
|
2,389,770 |
|
|
2,347,545 |
|
|
2,310,511 |
|
Average loans to average
deposits ratio (excluding loans held-for-sale, excluding covered
loans) |
|
89.8 |
% |
|
92.4 |
% |
|
92.2 |
% |
|
90.2 |
% |
|
89.7 |
% |
Average loans to average
deposits ratio (excluding loans held-for-sale, including covered
loans) |
|
90.3 |
|
|
92.9 |
|
|
93.0 |
|
|
91.0 |
|
|
90.6 |
|
Common Share Data at
end of period: |
|
|
|
|
|
|
|
|
|
|
Market price per common
share |
|
$ |
55.57 |
|
|
$ |
51.00 |
|
|
$ |
44.34 |
|
|
$ |
48.52 |
|
|
$ |
53.43 |
|
Book value per common
share (2) |
|
$ |
46.86 |
|
|
$ |
45.96 |
|
|
$ |
44.67 |
|
|
$ |
43.42 |
|
|
$ |
43.12 |
|
Tangible common book
value per share (2) |
|
$ |
37.06 |
|
|
$ |
36.12 |
|
|
$ |
34.20 |
|
|
$ |
33.17 |
|
|
$ |
32.83 |
|
Common shares
outstanding |
|
51,714,683 |
|
|
51,619,155 |
|
|
48,518,998 |
|
|
48,383,279 |
|
|
48,336,870 |
|
Other Data at end
of period:(6) |
|
|
|
|
|
|
|
|
|
|
Leverage
Ratio(4) |
|
9.0 |
% |
|
9.2 |
% |
|
8.7 |
% |
|
9.1 |
% |
|
9.2 |
% |
Tier 1 Capital to
risk-weighted assets (4) |
|
9.8 |
% |
|
10.1 |
% |
|
9.6 |
% |
|
10.0 |
% |
|
10.3 |
% |
Common equity Tier 1
capital to risk-weighted assets (4) |
|
8.7 |
% |
|
8.9 |
% |
|
8.4 |
% |
|
8.4 |
% |
|
8.6 |
% |
Total capital to
risk-weighted assets (4) |
|
12.1 |
% |
|
12.4 |
% |
|
12.1 |
% |
|
12.2 |
% |
|
12.6 |
% |
Allowance for credit
losses (5) |
|
$ |
119,341 |
|
|
$ |
115,426 |
|
|
$ |
111,201 |
|
|
$ |
106,349 |
|
|
$ |
103,922 |
|
Non-performing loans |
|
83,128 |
|
|
88,119 |
|
|
89,499 |
|
|
84,057 |
|
|
85,976 |
|
Allowance for credit
losses to total loans (5) |
|
0.62 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.62 |
% |
|
0.64 |
% |
Non-performing loans to
total loans |
|
0.44 |
% |
|
0.48 |
% |
|
0.51 |
% |
|
0.49 |
% |
|
0.53 |
% |
Number of: |
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
Banking offices |
|
152 |
|
|
153 |
|
|
153 |
|
|
152 |
|
|
160 |
|
|
(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 |
) |
Capital
ratios for current quarter-end are estimated. As of January 1, 2015
capital ratios are calculated under the requirements of Basel
III.
|
|
(5 |
) |
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.
|
|
(6 |
) |
Asset
quality ratios exclude covered loans.
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Consolidated Statements of Condition - 5 Quarter
Trends
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(In thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
242,825 |
|
|
$ |
267,551 |
|
|
$ |
208,480 |
|
|
$ |
271,454 |
|
|
$ |
247,341 |
|
Federal funds sold and
securities purchased under resale agreements |
|
4,122 |
|
|
4,024 |
|
|
3,820 |
|
|
4,341 |
|
|
3,314 |
|
Interest bearing deposits
with banks |
|
816,104 |
|
|
693,269 |
|
|
817,013 |
|
|
607,782 |
|
|
701,106 |
|
Available-for-sale
securities, at fair value |
|
1,650,096 |
|
|
637,663 |
|
|
770,983 |
|
|
1,716,388 |
|
|
2,214,281 |
|
Held-to-maturity
securities, at amortized cost |
|
932,767 |
|
|
992,211 |
|
|
911,715 |
|
|
884,826 |
|
|
— |
|
Trading account
securities |
|
1,092 |
|
|
3,613 |
|
|
2,116 |
|
|
448 |
|
|
3,312 |
|
Federal Home Loan Bank and
Federal Reserve Bank stock |
|
129,630 |
|
|
121,319 |
|
|
113,222 |
|
|
101,581 |
|
|
90,308 |
|
Brokerage customer
receivables |
|
25,511 |
|
|
26,866 |
|
|
28,266 |
|
|
27,631 |
|
|
28,293 |
|
Mortgage loans
held-for-sale |
|
559,634 |
|
|
554,256 |
|
|
314,554 |
|
|
388,038 |
|
|
347,005 |
|
Loans, net of unearned
income, excluding covered loans |
|
19,101,261 |
|
|
18,174,655 |
|
|
17,446,413 |
|
|
17,118,117 |
|
|
16,316,211 |
|
Covered loans |
|
95,940 |
|
|
105,248 |
|
|
138,848 |
|
|
148,673 |
|
|
168,609 |
|
Total loans |
|
19,197,201 |
|
|
18,279,903 |
|
|
17,585,261 |
|
|
17,266,790 |
|
|
16,484,820 |
|
Allowance for loan losses |
|
(117,693 |
) |
|
(114,356 |
) |
|
(110,171 |
) |
|
(105,400 |
) |
|
(102,996 |
) |
Allowance for covered loan
losses |
|
(1,422 |
) |
|
(2,412 |
) |
|
(2,507 |
) |
|
(3,026 |
) |
|
(2,918 |
) |
Net loans |
|
19,078,086 |
|
|
18,163,135 |
|
|
17,472,583 |
|
|
17,158,364 |
|
|
16,378,906 |
|
Premises and equipment,
net |
|
597,263 |
|
|
595,792 |
|
|
591,608 |
|
|
592,256 |
|
|
587,348 |
|
Lease investments,
net |
|
116,355 |
|
|
103,749 |
|
|
89,337 |
|
|
63,170 |
|
|
29,111 |
|
Accrued interest
receivable and other assets |
|
660,923 |
|
|
670,014 |
|
|
647,853 |
|
|
597,099 |
|
|
629,211 |
|
Trade date securities
receivable |
|
677 |
|
|
1,079,238 |
|
|
1,008,613 |
|
|
— |
|
|
277,981 |
|
Goodwill |
|
485,938 |
|
|
486,095 |
|
|
484,280 |
|
|
471,761 |
|
|
472,166 |
|
Other intangible
assets |
|
20,736 |
|
|
21,821 |
|
|
23,725 |
|
|
24,209 |
|
|
25,533 |
|
Total assets |
|
$ |
25,321,759 |
|
|
$ |
24,420,616 |
|
|
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
|
$ |
22,035,216 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,711,042 |
|
|
$ |
5,367,672 |
|
|
$ |
5,205,410 |
|
|
$ |
4,836,420 |
|
|
$ |
4,705,994 |
|
Interest bearing |
|
15,436,613 |
|
|
14,674,078 |
|
|
14,011,661 |
|
|
13,803,214 |
|
|
13,522,475 |
|
Total deposits |
|
21,147,655 |
|
|
20,041,750 |
|
|
19,217,071 |
|
|
18,639,634 |
|
|
18,228,469 |
|
Federal Home Loan Bank
advances |
|
419,632 |
|
|
588,055 |
|
|
799,482 |
|
|
853,431 |
|
|
443,955 |
|
Other borrowings |
|
241,366 |
|
|
252,611 |
|
|
253,126 |
|
|
265,785 |
|
|
259,805 |
|
Subordinated notes |
|
138,943 |
|
|
138,915 |
|
|
138,888 |
|
|
138,861 |
|
|
138,834 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
268,566 |
|
|
268,566 |
|
Trade date securities
payable |
|
— |
|
|
40,000 |
|
|
— |
|
|
538 |
|
|
617 |
|
Accrued interest payable
and other liabilities |
|
446,123 |
|
|
482,124 |
|
|
407,593 |
|
|
390,259 |
|
|
359,234 |
|
Total liabilities |
|
22,647,285 |
|
|
21,797,021 |
|
|
21,069,726 |
|
|
20,557,074 |
|
|
19,699,480 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
251,257 |
|
|
251,257 |
|
|
251,257 |
|
|
251,287 |
|
|
251,312 |
|
Common stock |
|
51,811 |
|
|
51,708 |
|
|
48,608 |
|
|
48,469 |
|
|
48,422 |
|
Surplus |
|
1,356,759 |
|
|
1,350,751 |
|
|
1,194,750 |
|
|
1,190,988 |
|
|
1,187,407 |
|
Treasury stock |
|
(4,522 |
) |
|
(4,145 |
) |
|
(4,145 |
) |
|
(3,973 |
) |
|
(3,964 |
) |
Retained earnings |
|
1,051,748 |
|
|
1,008,464 |
|
|
967,882 |
|
|
928,211 |
|
|
901,652 |
|
Accumulated other comprehensive
loss |
|
(32,579 |
) |
|
(34,440 |
) |
|
(39,910 |
) |
|
(62,708 |
) |
|
(49,093 |
) |
Total shareholders’ equity |
|
2,674,474 |
|
|
2,623,595 |
|
|
2,418,442 |
|
|
2,352,274 |
|
|
2,335,736 |
|
Total liabilities and
shareholders’ equity |
|
$ |
25,321,759 |
|
|
$ |
24,420,616 |
|
|
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
|
$ |
22,035,216 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Consolidated Statements of Income (Unaudited) - 5 Quarter
Trends
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(In thousands, except per share
data) |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Interest
income |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
190,189 |
|
|
$ |
178,530 |
|
|
$ |
173,127 |
|
|
$ |
169,501 |
|
|
$ |
167,831 |
|
Interest bearing deposits with
banks |
|
1,156 |
|
|
793 |
|
|
746 |
|
|
493 |
|
|
372 |
|
Federal funds sold and securities
purchased under resale agreements |
|
1 |
|
|
1 |
|
|
1 |
|
|
— |
|
|
1 |
|
Investment securities |
|
15,496 |
|
|
16,398 |
|
|
17,190 |
|
|
16,405 |
|
|
16,130 |
|
Trading account securities |
|
18 |
|
|
14 |
|
|
11 |
|
|
25 |
|
|
19 |
|
Federal Home Loan Bank and Federal
Reserve Bank stock |
|
1,094 |
|
|
1,112 |
|
|
937 |
|
|
857 |
|
|
821 |
|
Brokerage customer receivables |
|
195 |
|
|
216 |
|
|
219 |
|
|
206 |
|
|
205 |
|
Total interest income |
|
208,149 |
|
|
197,064 |
|
|
192,231 |
|
|
187,487 |
|
|
185,379 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
15,621 |
|
|
13,594 |
|
|
12,781 |
|
|
12,617 |
|
|
12,436 |
|
Interest on Federal Home Loan Bank
advances |
|
2,577 |
|
|
2,984 |
|
|
2,886 |
|
|
2,684 |
|
|
2,458 |
|
Interest on other borrowings |
|
1,137 |
|
|
1,086 |
|
|
1,058 |
|
|
1,007 |
|
|
1,045 |
|
Interest on subordinated notes |
|
1,778 |
|
|
1,777 |
|
|
1,777 |
|
|
1,777 |
|
|
1,776 |
|
Interest on junior subordinated
debentures |
|
2,400 |
|
|
2,353 |
|
|
2,220 |
|
|
2,196 |
|
|
2,124 |
|
Total interest expense |
|
23,513 |
|
|
21,794 |
|
|
20,722 |
|
|
20,281 |
|
|
19,839 |
|
Net interest
income |
|
184,636 |
|
|
175,270 |
|
|
171,509 |
|
|
167,206 |
|
|
165,540 |
|
Provision for credit
losses |
|
9,571 |
|
|
9,129 |
|
|
8,034 |
|
|
9,059 |
|
|
8,322 |
|
Net interest income after
provision for credit losses |
|
175,065 |
|
|
166,141 |
|
|
163,475 |
|
|
158,147 |
|
|
157,218 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
|
Wealth management |
|
19,334 |
|
|
18,852 |
|
|
18,320 |
|
|
18,634 |
|
|
18,243 |
|
Mortgage banking |
|
34,712 |
|
|
36,807 |
|
|
21,735 |
|
|
23,317 |
|
|
27,887 |
|
Service charges on deposit
accounts |
|
8,024 |
|
|
7,726 |
|
|
7,406 |
|
|
7,210 |
|
|
7,403 |
|
Gains (losses) on investment
securities, net |
|
3,305 |
|
|
1,440 |
|
|
1,325 |
|
|
(79 |
) |
|
(98 |
) |
Fees from covered call options |
|
3,633 |
|
|
4,649 |
|
|
1,712 |
|
|
3,629 |
|
|
2,810 |
|
Trading (losses) gains, net |
|
(432 |
) |
|
(316 |
) |
|
(168 |
) |
|
205 |
|
|
(135 |
) |
Operating lease income, net |
|
4,459 |
|
|
4,005 |
|
|
2,806 |
|
|
1,973 |
|
|
613 |
|
Other |
|
13,569 |
|
|
11,636 |
|
|
15,616 |
|
|
10,201 |
|
|
8,230 |
|
Total non-interest income |
|
86,604 |
|
|
84,799 |
|
|
68,752 |
|
|
65,090 |
|
|
64,953 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
103,718 |
|
|
100,894 |
|
|
95,811 |
|
|
99,780 |
|
|
97,749 |
|
Equipment |
|
9,449 |
|
|
9,307 |
|
|
8,767 |
|
|
8,799 |
|
|
8,456 |
|
Operating lease equipment
depreciation |
|
3,605 |
|
|
3,385 |
|
|
2,050 |
|
|
1,202 |
|
|
431 |
|
Occupancy, net |
|
12,767 |
|
|
11,943 |
|
|
11,948 |
|
|
13,062 |
|
|
12,066 |
|
Data processing |
|
7,432 |
|
|
7,138 |
|
|
6,519 |
|
|
7,284 |
|
|
8,127 |
|
Advertising and marketing |
|
7,365 |
|
|
6,941 |
|
|
3,779 |
|
|
5,373 |
|
|
6,237 |
|
Professional fees |
|
5,508 |
|
|
5,419 |
|
|
4,059 |
|
|
4,387 |
|
|
4,100 |
|
Amortization of other intangible
assets |
|
1,085 |
|
|
1,248 |
|
|
1,298 |
|
|
1,324 |
|
|
1,350 |
|
FDIC insurance |
|
3,686 |
|
|
4,040 |
|
|
3,613 |
|
|
3,317 |
|
|
3,035 |
|
OREO expense, net |
|
1,436 |
|
|
1,348 |
|
|
560 |
|
|
2,598 |
|
|
(367 |
) |
Other |
|
20,564 |
|
|
19,306 |
|
|
15,326 |
|
|
19,703 |
|
|
18,790 |
|
Total non-interest expense |
|
176,615 |
|
|
170,969 |
|
|
153,730 |
|
|
166,829 |
|
|
159,974 |
|
Income before taxes |
|
85,054 |
|
|
79,971 |
|
|
78,497 |
|
|
56,408 |
|
|
62,197 |
|
Income tax expense |
|
31,939 |
|
|
29,930 |
|
|
29,386 |
|
|
20,896 |
|
|
23,842 |
|
Net
income |
|
$ |
53,115 |
|
|
$ |
50,041 |
|
|
$ |
49,111 |
|
|
$ |
35,512 |
|
|
$ |
38,355 |
|
Preferred stock dividends
and discount accretion |
|
3,628 |
|
|
3,628 |
|
|
3,628 |
|
|
3,629 |
|
|
4,079 |
|
Net income
applicable to common shares |
|
$ |
49,487 |
|
|
$ |
46,413 |
|
|
$ |
45,483 |
|
|
$ |
31,883 |
|
|
$ |
34,276 |
|
Net income per
common share - Basic |
|
$ |
0.96 |
|
|
$ |
0.94 |
|
|
$ |
0.94 |
|
|
$ |
0.66 |
|
|
$ |
0.71 |
|
Net income per
common share - Diluted |
|
$ |
0.92 |
|
|
$ |
0.90 |
|
|
$ |
0.90 |
|
|
$ |
0.64 |
|
|
$ |
0.69 |
|
Cash dividends
declared per common share |
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.11 |
|
|
$ |
0.11 |
|
Weighted average common
shares outstanding |
|
51,679 |
|
|
49,140 |
|
|
48,448 |
|
|
48,371 |
|
|
48,158 |
|
Dilutive potential common
shares |
|
4,047 |
|
|
3,965 |
|
|
3,820 |
|
|
4,005 |
|
|
4,049 |
|
Average common shares and
dilutive common shares |
|
55,726 |
|
|
53,105 |
|
|
52,268 |
|
|
52,376 |
|
|
52,207 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Period End Loan Balances - 5 Quarter Trends
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
5,951,544 |
|
|
$ |
5,144,533 |
|
|
$ |
4,890,246 |
|
|
$ |
4,713,909 |
|
|
$ |
4,400,185 |
|
Commercial real estate |
|
5,908,684 |
|
|
5,848,334 |
|
|
5,737,959 |
|
|
5,529,289 |
|
|
5,307,566 |
|
Home equity |
|
742,868 |
|
|
760,904 |
|
|
774,342 |
|
|
784,675 |
|
|
797,465 |
|
Residential real estate |
|
663,598 |
|
|
653,664 |
|
|
626,043 |
|
|
607,451 |
|
|
571,743 |
|
Premium finance receivables -
commercial |
|
2,430,233 |
|
|
2,478,280 |
|
|
2,320,987 |
|
|
2,374,921 |
|
|
2,407,075 |
|
Premium finance receivables - life
insurance |
|
3,283,359 |
|
|
3,161,562 |
|
|
2,976,934 |
|
|
2,961,496 |
|
|
2,700,275 |
|
Consumer and other |
|
120,975 |
|
|
127,378 |
|
|
119,902 |
|
|
146,376 |
|
|
131,902 |
|
Total loans, net of unearned
income, excluding covered loans |
|
$ |
19,101,261 |
|
|
$ |
18,174,655 |
|
|
$ |
17,446,413 |
|
|
$ |
17,118,117 |
|
|
$ |
16,316,211 |
|
Covered loans |
|
95,940 |
|
|
105,248 |
|
|
138,848 |
|
|
148,673 |
|
|
168,609 |
|
Total loans, net of unearned
income |
|
$ |
19,197,201 |
|
|
$ |
18,279,903 |
|
|
$ |
17,585,261 |
|
|
$ |
17,266,790 |
|
|
$ |
16,484,820 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
31 |
% |
|
28 |
% |
|
28 |
% |
|
27 |
% |
|
27 |
% |
Commercial real estate |
|
31 |
|
|
31 |
|
|
32 |
|
|
32 |
|
|
32 |
|
Home equity |
|
4 |
|
|
4 |
|
|
4 |
|
|
5 |
|
|
5 |
|
Residential real estate |
|
3 |
|
|
4 |
|
|
4 |
|
|
3 |
|
|
3 |
|
Premium finance receivables -
commercial |
|
13 |
|
|
14 |
|
|
13 |
|
|
14 |
|
|
15 |
|
Premium finance receivables - life
insurance |
|
17 |
|
|
17 |
|
|
17 |
|
|
17 |
|
|
16 |
|
Consumer and other |
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
Total loans, net of unearned
income, excluding covered loans |
|
100 |
% |
|
99 |
% |
|
99 |
% |
|
99 |
% |
|
99 |
% |
Covered loans |
|
— |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
Total loans, net of unearned
income |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Period End Deposits Balances - 5 Quarter
Trends
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,711,042 |
|
|
$ |
5,367,672 |
|
|
$ |
5,205,410 |
|
|
$ |
4,836,420 |
|
|
$ |
4,705,994 |
|
NOW and interest bearing demand
deposits |
|
2,552,611 |
|
|
2,450,710 |
|
|
2,369,474 |
|
|
2,390,217 |
|
|
2,231,258 |
|
Wealth management deposits
(1) |
|
2,283,233 |
|
|
1,904,121 |
|
|
1,761,710 |
|
|
1,643,653 |
|
|
1,469,920 |
|
Money market |
|
4,421,631 |
|
|
4,384,134 |
|
|
4,157,083 |
|
|
4,041,300 |
|
|
4,001,518 |
|
Savings |
|
1,977,661 |
|
|
1,851,863 |
|
|
1,766,552 |
|
|
1,723,367 |
|
|
1,684,007 |
|
Time certificates of deposit |
|
4,201,477 |
|
|
4,083,250 |
|
|
3,956,842 |
|
|
4,004,677 |
|
|
4,135,772 |
|
Total deposits |
|
$ |
21,147,655 |
|
|
$ |
20,041,750 |
|
|
$ |
19,217,071 |
|
|
$ |
18,639,634 |
|
|
$ |
18,228,469 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
27 |
% |
|
27 |
% |
|
27 |
% |
|
26 |
% |
|
26 |
% |
NOW and interest bearing demand
deposits |
|
12 |
|
|
12 |
|
|
12 |
|
|
13 |
|
|
12 |
|
Wealth management deposits
(1) |
|
11 |
|
|
10 |
|
|
9 |
|
|
9 |
|
|
8 |
|
Money market |
|
21 |
|
|
22 |
|
|
22 |
|
|
22 |
|
|
22 |
|
Savings |
|
9 |
|
|
9 |
|
|
9 |
|
|
9 |
|
|
9 |
|
Time certificates of deposit |
|
20 |
|
|
20 |
|
|
21 |
|
|
21 |
|
|
23 |
|
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 |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Net interest income -
FTE |
|
$ |
186,192 |
|
|
$ |
176,733 |
|
|
$ |
172,944 |
|
|
$ |
168,515 |
|
|
$ |
166,737 |
|
Call option income |
|
3,633 |
|
|
4,649 |
|
|
1,712 |
|
|
3,629 |
|
|
2,810 |
|
Net interest income
including call option income |
|
$ |
189,825 |
|
|
$ |
181,382 |
|
|
$ |
174,656 |
|
|
$ |
172,144 |
|
|
$ |
169,547 |
|
Yield on earning
assets |
|
3.65 |
% |
|
3.67 |
% |
|
3.71 |
% |
|
3.69 |
% |
|
3.73 |
% |
Rate on interest-bearing
liabilities |
|
0.58 |
% |
|
0.56 |
% |
|
0.55 |
|
|
0.55 |
% |
|
0.54 |
|
Rate spread |
|
3.07 |
% |
|
3.11 |
% |
|
3.16 |
% |
|
3.14 |
% |
|
3.19 |
% |
Less: Fully
tax-equivalent adjustment |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.02 |
) |
Net free funds
contribution |
|
0.17 |
% |
|
0.16 |
|
|
0.16 |
|
|
0.15 |
% |
|
0.14 |
|
Net interest margin
(GAAP-derived) |
|
3.21 |
% |
|
3.24 |
% |
|
3.29 |
% |
|
3.26 |
% |
|
3.31 |
% |
Fully tax-equivalent
adjustment |
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
|
0.02 |
|
Net interest margin -
FTE |
|
3.24 |
% |
|
3.27 |
% |
|
3.32 |
% |
|
3.29 |
% |
|
3.33 |
% |
Call option income |
|
0.06 |
% |
|
0.09 |
% |
|
0.03 |
|
|
0.07 |
% |
|
0.06 |
|
Net interest margin - FTE,
including call option income |
|
3.30 |
% |
|
3.36 |
% |
|
3.35 |
% |
|
3.36 |
% |
|
3.39 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Net Interest Margin (Including Call Option Income - YTD
Trends)
|
|
Nine months ended
September 30, |
|
Years Ended
December 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2014 |
|
2013 |
|
2012 |
Net interest income -
FTE |
|
$ |
535,869 |
|
|
$ |
646,238 |
|
|
$ |
601,744 |
|
|
$ |
552,887 |
|
|
$ |
521,463 |
|
Call option income |
|
9,994 |
|
|
15,364 |
|
|
7,859 |
|
|
4,773 |
|
|
10,476 |
|
Net interest income
including call option income |
|
$ |
545,863 |
|
|
$ |
661,602 |
|
|
$ |
609,603 |
|
|
$ |
557,660 |
|
|
$ |
531,939 |
|
Yield on earning
assets |
|
3.68 |
% |
|
3.76 |
% |
|
3.96 |
% |
|
4.01 |
% |
|
4.21 |
% |
Rate on interest-bearing
liabilities |
|
0.56 |
% |
|
0.54 |
|
|
0.55 |
|
|
0.63 |
|
|
0.86 |
|
Rate spread |
|
3.12 |
% |
|
3.22 |
% |
|
3.41 |
% |
|
3.38 |
% |
|
3.35 |
% |
Less: Fully
tax-equivalent adjustment |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
Net free funds
contribution |
|
0.15 |
|
|
0.14 |
|
|
0.12 |
|
|
0.12 |
|
|
0.14 |
|
Net interest margin
(GAAP-derived) |
|
3.25 |
% |
|
3.34 |
% |
|
3.51 |
% |
|
3.49 |
% |
|
3.47 |
% |
Fully tax-equivalent
adjustment |
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.01 |
|
|
0.02 |
|
Net interest margin -
FTE |
|
3.27 |
% |
|
3.36 |
% |
|
3.53 |
% |
|
3.50 |
% |
|
3.49 |
% |
Call option income |
|
0.06 |
% |
|
0.08 |
|
|
0.05 |
|
|
0.03 |
|
|
0.07 |
|
Net interest margin - FTE,
including call option income |
|
3.33 |
% |
|
3.44 |
% |
|
3.58 |
% |
|
3.53 |
% |
|
3.56 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Quarterly Average Balances - 5 Quarter Trends
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(In thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Liquidity management
assets |
|
$ |
3,671,577 |
|
|
$ |
3,413,113 |
|
|
$ |
3,300,138 |
|
|
$ |
3,245,393 |
|
|
$ |
3,140,782 |
|
Other earning assets |
|
29,875 |
|
|
29,759 |
|
|
28,731 |
|
|
29,792 |
|
|
30,990 |
|
Loans, net of unearned
income |
|
19,071,621 |
|
|
18,204,552 |
|
|
17,508,593 |
|
|
16,889,922 |
|
|
16,509,001 |
|
Covered loans |
|
101,570 |
|
|
109,533 |
|
|
141,351 |
|
|
154,846 |
|
|
174,768 |
|
Total earning assets |
|
$ |
22,874,643 |
|
|
$ |
21,756,957 |
|
|
$ |
20,978,813 |
|
|
$ |
20,319,953 |
|
|
$ |
19,855,541 |
|
Allowance for loan and
covered loan losses |
|
(121,156 |
) |
|
(116,984 |
) |
|
(112,028 |
) |
|
(109,448 |
) |
|
(106,091 |
) |
Cash and due from
banks |
|
240,239 |
|
|
272,935 |
|
|
259,343 |
|
|
260,593 |
|
|
251,289 |
|
Other assets |
|
1,885,526 |
|
|
1,841,847 |
|
|
1,776,785 |
|
|
1,754,014 |
|
|
1,678,323 |
|
Total assets |
|
$ |
24,879,252 |
|
|
$ |
23,754,755 |
|
|
$ |
22,902,913 |
|
|
$ |
22,225,112 |
|
|
$ |
21,679,062 |
|
Interest-bearing
deposits |
|
$ |
15,117,102 |
|
|
$ |
14,065,995 |
|
|
$ |
13,717,333 |
|
|
$ |
13,606,046 |
|
|
$ |
13,489,651 |
|
Federal Home Loan Bank
advances |
|
459,198 |
|
|
946,081 |
|
|
825,104 |
|
|
441,669 |
|
|
394,666 |
|
Other borrowings |
|
249,307 |
|
|
248,233 |
|
|
257,384 |
|
|
269,738 |
|
|
272,549 |
|
Subordinated notes |
|
138,925 |
|
|
138,898 |
|
|
138,870 |
|
|
138,852 |
|
|
138,825 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
257,687 |
|
|
268,566 |
|
|
264,974 |
|
Total interest-bearing
liabilities |
|
$ |
16,218,098 |
|
|
$ |
15,652,773 |
|
|
$ |
15,196,378 |
|
|
$ |
14,724,871 |
|
|
$ |
14,560,665 |
|
Non-interest bearing
deposits |
|
5,566,983 |
|
|
5,223,384 |
|
|
4,939,746 |
|
|
4,776,977 |
|
|
4,473,632 |
|
Other liabilities |
|
442,487 |
|
|
412,866 |
|
|
377,019 |
|
|
375,719 |
|
|
334,254 |
|
Equity |
|
2,651,684 |
|
|
2,465,732 |
|
|
2,389,770 |
|
|
2,347,545 |
|
|
2,310,511 |
|
Total liabilities and shareholders’
equity |
|
$ |
24,879,252 |
|
|
$ |
23,754,755 |
|
|
$ |
22,902,913 |
|
|
$ |
22,225,112 |
|
|
$ |
21,679,062 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Net Interest Margin - 5 Quarter Trends
|
|
Three Months Ended |
|
|
September 30,
2016 |
|
June 30,
2016 |
|
March 31,
2016 |
|
December 31,
2015 |
|
September 30,
2015 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Liquidity management
assets |
|
2.03 |
% |
|
2.27 |
% |
|
2.41 |
% |
|
2.28 |
% |
|
2.29 |
% |
Other earning assets |
|
2.96 |
% |
|
3.21 |
% |
|
3.31 |
% |
|
3.26 |
% |
|
3.00 |
% |
Loans, net of unearned
income |
|
3.96 |
% |
|
3.92 |
% |
|
3.94 |
% |
|
3.95 |
% |
|
3.98 |
% |
Covered loans |
|
4.45 |
% |
|
5.44 |
% |
|
5.72 |
% |
|
4.79 |
% |
|
5.91 |
% |
Total earning assets |
|
3.65 |
% |
|
3.67 |
% |
|
3.71 |
% |
|
3.69 |
% |
|
3.73 |
% |
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
|
0.41 |
% |
|
0.39 |
% |
|
0.37 |
% |
|
0.37 |
% |
|
0.37 |
% |
Federal Home Loan Bank
advances |
|
2.23 |
% |
|
1.27 |
% |
|
1.41 |
% |
|
2.41 |
% |
|
2.47 |
% |
Other borrowings |
|
1.81 |
% |
|
1.76 |
% |
|
1.65 |
% |
|
1.48 |
% |
|
1.52 |
% |
Subordinated notes |
|
5.12 |
% |
|
5.12 |
% |
|
5.12 |
% |
|
5.12 |
% |
|
5.12 |
% |
Junior subordinated
debentures |
|
3.70 |
% |
|
3.67 |
% |
|
3.41 |
% |
|
3.20 |
% |
|
3.14 |
% |
Total interest-bearing
liabilities |
|
0.58 |
% |
|
0.56 |
% |
|
0.55 |
% |
|
0.55 |
% |
|
0.54 |
% |
Interest rate spread |
|
3.07 |
% |
|
3.11 |
% |
|
3.16 |
% |
|
3.14 |
% |
|
3.19 |
% |
Less: Fully
tax-equivalent adjustment |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.02 |
) |
Net free
funds/contribution |
|
0.17 |
|
|
0.16 |
|
|
0.16 |
|
|
0.15 |
|
|
0.14 |
|
Net interest margin
(GAAP) |
|
3.21 |
% |
|
3.24 |
% |
|
3.29 |
% |
|
3.26 |
% |
|
3.31 |
% |
Fully tax-equivalent
adjustment |
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
|
0.02 |
|
Net interest margin -
FTE |
|
3.24 |
% |
|
3.27 |
% |
|
3.32 |
% |
|
3.29 |
% |
|
3.33 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Interest Income - 5 Quarter Trends
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(In thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Brokerage |
|
$ |
6,752 |
|
|
$ |
6,302 |
|
|
$ |
6,057 |
|
|
$ |
6,850 |
|
|
$ |
6,579 |
|
Trust and asset
management |
|
12,582 |
|
|
12,550 |
|
|
12,263 |
|
|
11,784 |
|
|
11,664 |
|
Total wealth management |
|
19,334 |
|
|
18,852 |
|
|
18,320 |
|
|
18,634 |
|
|
18,243 |
|
Mortgage banking |
|
34,712 |
|
|
36,807 |
|
|
21,735 |
|
|
23,317 |
|
|
27,887 |
|
Service charges on deposit
accounts |
|
8,024 |
|
|
7,726 |
|
|
7,406 |
|
|
7,210 |
|
|
7,403 |
|
Gains (losses) on
investment securities, net |
|
3,305 |
|
|
1,440 |
|
|
1,325 |
|
|
(79 |
) |
|
(98 |
) |
Fees from covered call
options |
|
3,633 |
|
|
4,649 |
|
|
1,712 |
|
|
3,629 |
|
|
2,810 |
|
Trading (losses) gains,
net |
|
(432 |
) |
|
(316 |
) |
|
(168 |
) |
|
205 |
|
|
(135 |
) |
Operating lease income,
net |
|
4,459 |
|
|
4,005 |
|
|
2,806 |
|
|
1,973 |
|
|
613 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
2,881 |
|
|
1,835 |
|
|
4,438 |
|
|
2,343 |
|
|
2,606 |
|
BOLI |
|
884 |
|
|
1,257 |
|
|
472 |
|
|
1,463 |
|
|
212 |
|
Administrative services |
|
1,151 |
|
|
1,074 |
|
|
1,069 |
|
|
1,101 |
|
|
1,072 |
|
Gain on extinguishment of debt |
|
— |
|
|
— |
|
|
4,305 |
|
|
— |
|
|
— |
|
Miscellaneous |
|
8,653 |
|
|
7,470 |
|
|
5,332 |
|
|
5,294 |
|
|
4,340 |
|
Total other income |
|
13,569 |
|
|
11,636 |
|
|
15,616 |
|
|
10,201 |
|
|
8,230 |
|
Total Non-Interest
Income |
|
$ |
86,604 |
|
|
$ |
84,799 |
|
|
$ |
68,752 |
|
|
$ |
65,090 |
|
|
$ |
64,953 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Interest Expense - 5 Quarter Trends
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(In thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
54,309 |
|
|
$ |
52,924 |
|
|
$ |
50,282 |
|
|
$ |
50,982 |
|
|
$ |
53,028 |
|
Commissions and incentive
compensation |
|
33,740 |
|
|
32,531 |
|
|
26,375 |
|
|
31,222 |
|
|
30,035 |
|
Benefits |
|
15,669 |
|
|
15,439 |
|
|
19,154 |
|
|
17,576 |
|
|
14,686 |
|
Total salaries and
employee benefits |
|
103,718 |
|
|
100,894 |
|
|
95,811 |
|
|
99,780 |
|
|
97,749 |
|
Equipment |
|
9,449 |
|
|
9,307 |
|
|
8,767 |
|
|
8,799 |
|
|
8,456 |
|
Operating lease equipment
depreciation |
|
3,605 |
|
|
3,385 |
|
|
2,050 |
|
|
1,202 |
|
|
431 |
|
Occupancy, net |
|
12,767 |
|
|
11,943 |
|
|
11,948 |
|
|
13,062 |
|
|
12,066 |
|
Data processing |
|
7,432 |
|
|
7,138 |
|
|
6,519 |
|
|
7,284 |
|
|
8,127 |
|
Advertising and
marketing |
|
7,365 |
|
|
6,941 |
|
|
3,779 |
|
|
5,373 |
|
|
6,237 |
|
Professional fees |
|
5,508 |
|
|
5,419 |
|
|
4,059 |
|
|
4,387 |
|
|
4,100 |
|
Amortization of other
intangible assets |
|
1,085 |
|
|
1,248 |
|
|
1,298 |
|
|
1,324 |
|
|
1,350 |
|
FDIC insurance |
|
3,686 |
|
|
4,040 |
|
|
3,613 |
|
|
3,317 |
|
|
3,035 |
|
OREO expense, net |
|
1,436 |
|
|
1,348 |
|
|
560 |
|
|
2,598 |
|
|
(367 |
) |
Other: |
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party
brokers |
|
1,362 |
|
|
1,324 |
|
|
1,310 |
|
|
1,321 |
|
|
1,364 |
|
Postage |
|
1,889 |
|
|
2,038 |
|
|
1,302 |
|
|
1,892 |
|
|
1,927 |
|
Miscellaneous |
|
17,313 |
|
|
15,944 |
|
|
12,714 |
|
|
16,490 |
|
|
15,499 |
|
Total other expense |
|
20,564 |
|
|
19,306 |
|
|
15,326 |
|
|
19,703 |
|
|
18,790 |
|
Total Non-Interest
Expense |
|
$ |
176,615 |
|
|
$ |
170,969 |
|
|
$ |
153,730 |
|
|
$ |
166,829 |
|
|
$ |
159,974 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Allowance for Credit Losses, excluding covered loans - 5
Quarter Trends
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Allowance for loan
losses at beginning of period |
|
$ |
114,356 |
|
|
$ |
110,171 |
|
|
$ |
105,400 |
|
|
$ |
102,996 |
|
|
$ |
100,204 |
|
Provision for
credit losses |
|
9,741 |
|
|
9,269 |
|
|
8,423 |
|
|
9,196 |
|
|
8,665 |
|
Other
adjustments |
|
(112 |
) |
|
(134 |
) |
|
(78 |
) |
|
(243 |
) |
|
(153 |
) |
Reclassification
(to) from allowance for unfunded lending-related
commitments |
|
(579 |
) |
|
(40 |
) |
|
(81 |
) |
|
13 |
|
|
(42 |
) |
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
3,469 |
|
|
721 |
|
|
671 |
|
|
1,369 |
|
|
964 |
|
Commercial real estate |
|
382 |
|
|
502 |
|
|
671 |
|
|
2,734 |
|
|
1,948 |
|
Home equity |
|
574 |
|
|
2,046 |
|
|
1,052 |
|
|
680 |
|
|
1,116 |
|
Residential real estate |
|
134 |
|
|
693 |
|
|
493 |
|
|
211 |
|
|
1,138 |
|
Premium finance receivables -
commercial |
|
1,959 |
|
|
1,911 |
|
|
2,480 |
|
|
2,676 |
|
|
1,595 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
389 |
|
|
224 |
|
|
107 |
|
|
179 |
|
|
116 |
|
Total charge-offs |
|
6,907 |
|
|
6,097 |
|
|
5,474 |
|
|
7,849 |
|
|
6,877 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
176 |
|
|
121 |
|
|
629 |
|
|
315 |
|
|
462 |
|
Commercial real estate |
|
364 |
|
|
296 |
|
|
369 |
|
|
491 |
|
|
213 |
|
Home equity |
|
65 |
|
|
71 |
|
|
48 |
|
|
183 |
|
|
42 |
|
Residential real estate |
|
61 |
|
|
31 |
|
|
112 |
|
|
55 |
|
|
136 |
|
Premium finance receivables -
commercial |
|
456 |
|
|
633 |
|
|
787 |
|
|
223 |
|
|
278 |
|
Premium finance receivables - life
insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
16 |
|
Consumer and other |
|
72 |
|
|
35 |
|
|
36 |
|
|
20 |
|
|
52 |
|
Total recoveries |
|
1,194 |
|
|
1,187 |
|
|
1,981 |
|
|
1,287 |
|
|
1,199 |
|
Net
charge-offs |
|
(5,713 |
) |
|
(4,910 |
) |
|
(3,493 |
) |
|
(6,562 |
) |
|
(5,678 |
) |
Allowance for loan losses
at period end |
|
$ |
117,693 |
|
|
$ |
114,356 |
|
|
$ |
110,171 |
|
|
$ |
105,400 |
|
|
$ |
102,996 |
|
Allowance for unfunded
lending-related commitments at period end |
|
1,648 |
|
|
1,070 |
|
|
1,030 |
|
|
949 |
|
|
926 |
|
Allowance for credit losses
at period end |
|
$ |
119,341 |
|
|
$ |
115,426 |
|
|
$ |
111,201 |
|
|
$ |
106,349 |
|
|
$ |
103,922 |
|
Annualized net charge-offs
by category as a percentage of its own respective category’s
average: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
0.24 |
% |
|
0.05 |
% |
|
0.00 |
% |
|
0.09 |
% |
|
0.05 |
% |
Commercial real estate |
|
0.00 |
|
|
0.01 |
|
|
0.02 |
|
|
0.16 |
|
|
0.13 |
|
Home equity |
|
0.27 |
|
|
1.03 |
|
|
0.52 |
|
|
0.25 |
|
|
0.55 |
|
Residential real estate |
|
0.03 |
|
|
0.26 |
|
|
0.17 |
|
|
0.07 |
|
|
0.42 |
|
Premium finance receivables -
commercial |
|
0.24 |
|
|
0.21 |
|
|
0.29 |
|
|
0.41 |
|
|
0.21 |
|
Premium finance receivables - life
insurance |
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
Consumer and other |
|
0.92 |
|
|
0.57 |
|
|
0.20 |
|
|
0.37 |
|
|
0.17 |
|
Total loans, net of unearned
income, excluding covered loans |
|
0.12 |
% |
|
0.11 |
% |
|
0.08 |
% |
|
0.15 |
% |
|
0.14 |
% |
Net charge-offs as a
percentage of the provision for credit losses |
|
58.65 |
% |
|
52.97 |
% |
|
41.47 |
% |
|
71.35 |
% |
|
65.53 |
% |
Loans at
period-end |
|
$ |
19,101,261 |
|
|
$ |
18,174,655 |
|
|
$ |
17,446,413 |
|
|
$ |
17,118,117 |
|
|
$ |
16,316,211 |
|
Allowance for loan losses
as a percentage of loans at period end |
|
0.62 |
% |
|
0.63 |
% |
|
0.63 |
% |
|
0.62 |
% |
|
0.63 |
% |
Allowance for credit losses
as a percentage of loans at period end |
|
0.62 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.62 |
% |
|
0.64 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Performing Assets, excluding covered assets - 5 Quarter
Trends
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
Loans past due
greater than 90 days and still
accruing(1): |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
— |
|
|
$ |
235 |
|
|
$ |
338 |
|
|
$ |
541 |
|
|
$ |
— |
|
Commercial real estate |
— |
|
|
— |
|
|
1,260 |
|
|
— |
|
|
— |
|
Home equity |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential real estate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Premium finance receivables -
commercial |
7,754 |
|
|
10,558 |
|
|
9,548 |
|
|
10,294 |
|
|
8,231 |
|
Premium finance receivables - life
insurance |
— |
|
|
— |
|
|
1,641 |
|
|
— |
|
|
— |
|
Consumer and other |
60 |
|
|
163 |
|
|
180 |
|
|
150 |
|
|
140 |
|
Total loans past due greater than
90 days and still accruing |
7,814 |
|
|
10,956 |
|
|
12,967 |
|
|
10,985 |
|
|
8,371 |
|
Non-accrual
loans(2): |
|
|
|
|
|
|
|
|
|
Commercial |
16,418 |
|
|
16,801 |
|
|
12,373 |
|
|
12,712 |
|
|
12,018 |
|
Commercial real estate |
22,625 |
|
|
24,415 |
|
|
26,996 |
|
|
26,645 |
|
|
28,617 |
|
Home equity |
9,309 |
|
|
8,562 |
|
|
9,365 |
|
|
6,848 |
|
|
8,365 |
|
Residential real estate |
12,205 |
|
|
12,413 |
|
|
11,964 |
|
|
12,043 |
|
|
14,557 |
|
Premium finance receivables -
commercial |
14,214 |
|
|
14,497 |
|
|
15,350 |
|
|
14,561 |
|
|
13,751 |
|
Premium finance receivables - life
insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
543 |
|
|
475 |
|
|
484 |
|
|
263 |
|
|
297 |
|
Total non-accrual loans |
75,314 |
|
|
77,163 |
|
|
76,532 |
|
|
73,072 |
|
|
77,605 |
|
Total
non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
16,418 |
|
|
17,036 |
|
|
12,711 |
|
|
13,253 |
|
|
12,018 |
|
Commercial real estate |
22,625 |
|
|
24,415 |
|
|
28,256 |
|
|
26,645 |
|
|
28,617 |
|
Home equity |
9,309 |
|
|
8,562 |
|
|
9,365 |
|
|
6,848 |
|
|
8,365 |
|
Residential real estate |
12,205 |
|
|
12,413 |
|
|
11,964 |
|
|
12,043 |
|
|
14,557 |
|
Premium finance receivables -
commercial |
21,968 |
|
|
25,055 |
|
|
24,898 |
|
|
24,855 |
|
|
21,982 |
|
Premium finance receivables - life
insurance |
— |
|
|
— |
|
|
1,641 |
|
|
— |
|
|
— |
|
Consumer and other |
603 |
|
|
638 |
|
|
664 |
|
|
413 |
|
|
437 |
|
Total non-performing loans |
$ |
83,128 |
|
|
$ |
88,119 |
|
|
$ |
89,499 |
|
|
$ |
84,057 |
|
|
$ |
85,976 |
|
Other real estate owned |
19,933 |
|
|
22,154 |
|
|
24,022 |
|
|
26,849 |
|
|
29,053 |
|
Other real estate owned - from
acquisitions |
15,117 |
|
|
15,909 |
|
|
16,980 |
|
|
17,096 |
|
|
22,827 |
|
Other repossessed assets |
428 |
|
|
420 |
|
|
171 |
|
|
174 |
|
|
193 |
|
Total non-performing assets |
$ |
118,606 |
|
|
$ |
126,602 |
|
|
$ |
130,672 |
|
|
$ |
128,176 |
|
|
$ |
138,049 |
|
TDRs performing under the
contractual terms of the loan agreement |
29,440 |
|
|
33,310 |
|
|
34,949 |
|
|
42,744 |
|
|
49,173 |
|
Total
non-performing loans by category as a percent of its own respective
category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
0.28 |
% |
|
0.33 |
% |
|
0.26 |
% |
|
0.28 |
% |
|
0.27 |
% |
Commercial real estate |
0.38 |
|
|
0.42 |
|
|
0.49 |
|
|
0.48 |
|
|
0.54 |
|
Home equity |
1.25 |
|
|
1.13 |
|
|
1.21 |
|
|
0.87 |
|
|
1.05 |
|
Residential real estate |
1.84 |
|
|
1.90 |
|
|
1.91 |
|
|
1.98 |
|
|
2.55 |
|
Premium finance receivables -
commercial |
0.90 |
|
|
1.01 |
|
|
1.07 |
|
|
1.05 |
|
|
0.91 |
|
Premium finance receivables - life
insurance |
— |
|
|
— |
|
|
0.06 |
|
|
— |
|
|
— |
|
Consumer and other |
0.50 |
|
|
0.50 |
|
|
0.55 |
|
|
0.28 |
|
|
0.33 |
|
Total loans, net of unearned
income |
0.44 |
% |
|
0.48 |
% |
|
0.51 |
% |
|
0.49 |
% |
|
0.53 |
% |
Total non-performing assets
as a percentage of total assets |
0.47 |
% |
|
0.52 |
% |
|
0.56 |
% |
|
0.56 |
% |
|
0.63 |
% |
Allowance for loan losses
as a percentage of total non-performing loans |
141.58 |
% |
|
129.78 |
% |
|
123.10 |
% |
|
125.39 |
% |
|
119.79 |
% |
|
(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 $14.8 million, $16.3 million, $17.6 million, $9.1 million
and $10.1 million as of September 30, 2016, June 30,
2016, March 31, 2016, December 31, 2015 and September 30, 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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