ROSEMONT, Ill., Jan. 18, 2017 (GLOBE NEWSWIRE)
-- Wintrust Financial Corporation (“Wintrust” or “the Company”)
(Nasdaq:WTFC) announced net income of $54.6 million or $0.94 per
diluted common share for the fourth quarter of 2016 compared to net
income of $53.1 million or $0.92 per diluted common share for the
third quarter of 2016 and $35.5 million or $0.64 per diluted common
share for the fourth quarter of 2015. The Company recorded net
income of $206.9 million or $3.66 per diluted common share for the
year ended 2016 compared to net income of $156.7 million or $2.93
per diluted common share for the same period of 2015.
Highlights of the Fourth Quarter of 2016
*:
- Total loans, excluding covered loans and mortgage loans
held-for-sale, increased by $602 million, or 13% on an annualized
basis, to $19.7 billion. Loan growth included $79 million of loans
acquired in relation to the acquisition of First Community
Financial Corporation ("FCFC"), which was completed in
mid-November.
- Total assets increased by $347 million and now total $25.7
billion.
- Total deposits increased by $511 million to $21.7 billion.
Non-interest bearing deposit accounts comprise 27% of total
deposits.
- Mortgage banking revenue remained strong, totaling $35.5
million during the fourth quarter, which included a $1.2 million
positive fair value adjustment related to mortgage servicing rights
assets. Origination volumes totaled $1.2 billion in that
period.
- Net charge-offs, excluding covered loans, decreased to $2.8
million. Net charge-offs as a percentage of average total loans,
excluding covered loans, decreased to 6 bps compared to 12 bps
during the third quarter.
- Net interest income increased $6.1 million primarily as a
result of earning assets growth.
- Acquisition and non-operating compensation charges totaled $1.0
million during the quarter.
- Recorded a $717,000 loss on extinguishment of debt as a result
of the prepayment of $262 million of Federal Home Loan Bank
advances.
* 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, “Wintrust reported record net income of $54.6
million for the fourth quarter 2016 and record annual net income of
$206.9 million for the full year of 2016. These results were driven
by our continued strong asset growth throughout 2016 while
maintaining our commitment to controlling operating expenses with
our net overhead ratio ending 2016 at 1.47%, which is below our
previously stated goal of 1.50%. The fourth quarter of 2016 was
also characterized by continued deposit growth, strong performance
from our mortgage banking activities, stable credit quality metrics
and the acquisition of First Community Financial Corporation."
Mr. Wehmer continued, “Excluding covered loans
and mortgage loans held-for-sale, we grew our loan portfolio by
$602 million during the fourth quarter, which included $79 million
of loans acquired in relation to the acquisition of First Community
Financial Corporation. The increased loan volumes and stable net
interest margin during the quarter resulted in an increase in net
interest income of $6.1 million. Our loan pipelines remain
consistently strong and we are well positioned for rising interest
rates in the future. Strong deposit growth continued in the fourth
quarter of 2016 as deposits increased $511 million over the third
quarter of 2016, which included $150 million from the acquisition
of First Community Financial Corporation, with total deposits
reaching $21.7 billion as of the end of the fourth quarter. Demand
deposits increased $216 million in the fourth quarter, now totaling
$5.9 billion and comprising 27% of our overall deposit base."
Commenting on credit quality, Mr. Wehmer noted,
“During the fourth quarter of 2016, the Company has continued its
practice of timely addressing and resolving non-performing credits.
Excluding covered loans, net charge-offs totaled $2.8 million in
the current quarter, decreasing $2.9 million from the third quarter
of 2016. Additionally, net charge-offs as a percentage of average
total loans decreased to 0.06% from 0.12% in the third quarter.
Total non-performing loans as a percentage of total loans,
excluding covered loans, remained steady at 0.44% at the end of the
year. Additionally, the allowance for loan losses as a
percentage of non-performing loans, excluding covered loans,
remained strong at 140%. We believe that the Company's reserves
remain appropriate."
Mr. Wehmer further commented, “Mortgage banking
revenue in the fourth quarter totaled $35.5 million, a slight
increase of $777,000 compared to the third quarter of 2016. Revenue
for the fourth quarter of 2016 was impacted by a $1.2 million
positive fair value adjustment on mortgage servicing rights assets.
Despite typical seasonality, our mortgage operations experienced
strong origination volumes in the fourth quarter totaling $1.2
billion for the period compared to $1.3 billion during the third
quarter of 2016 and $808.9 million during the fourth quarter of
2015. Given the recent rise in interest rates and typical
seasonality, we expect originations to decrease in the first
quarter of 2017. However, we continue to look for opportunities to
further enhance the mortgage banking business both organically and
through acquisitions."
Turning to the future, Mr. Wehmer stated, “The
past year marked the 25th anniversary of the founding of Wintrust's
first bank. Since our beginning in 1991, we have focused on serving
our customers, communities, employees and shareholders, and will
continue to take a steady and measured approach to achieve our main
objectives of growing franchise value, increasing profitability,
leveraging our expense infrastructure and increasing shareholder
value. We expect our growth engine to continue its momentum into
2017 in all areas of our business. Loan growth at the end of the
current quarter should add to this momentum as period-end loan
balances, excluding loans held-for-sale and covered loans, exceeded
the fourth quarter average balances by approximately $472 million.
Additionally, investing excess liquidity held at year-end and the
benefit from anticipated interest rate increases should have a
positive impact on net interest margin and net interest income.
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 fourth quarter of 2016.
http://www.globenewswire.com/NewsRoom/AttachmentNg/820c4ce1-6da8-4a78-bd15-19f2cc4c06d5
Wintrust’s key operating measures and growth rates for the
fourth quarter of 2016, as compared to the sequential and
linked quarters, are shown in the table below:
|
|
|
|
|
|
|
|
% or(4)
basis point (bp) change from
3rd Quarter
2016 |
|
% or
basis point (bp)
change from
4th Quarter
2015 |
|
|
Three Months Ended |
|
|
(Dollars in thousands) |
|
December 31,
2016 |
|
September 30,
2016 |
|
December 31,
2015 |
|
|
Net income |
|
$ |
54,608 |
|
|
$ |
53,115 |
|
|
$ |
35,512 |
|
|
3 |
|
% |
|
54 |
|
% |
Net income per common
share – diluted |
|
$ |
0.94 |
|
|
$ |
0.92 |
|
|
$ |
0.64 |
|
|
2 |
|
% |
|
47 |
|
% |
Net revenue
(1) |
|
$ |
276,053 |
|
|
$ |
271,240 |
|
|
$ |
232,296 |
|
|
2 |
|
% |
|
19 |
|
% |
Net interest
income |
|
$ |
190,778 |
|
|
$ |
184,636 |
|
|
$ |
167,206 |
|
|
3 |
|
% |
|
14 |
|
% |
Net interest
margin |
|
3.21 |
% |
|
3.21 |
% |
|
3.26 |
% |
|
— |
|
bp |
|
(5 |
) |
bp |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
|
3.23 |
% |
|
3.24 |
% |
|
3.29 |
% |
|
(1 |
) |
bp |
|
(6 |
) |
bp |
Net overhead ratio
(3) |
|
1.48 |
% |
|
1.44 |
% |
|
1.82 |
% |
|
4 |
|
bp |
|
(34 |
) |
bp |
Return on average
assets |
|
0.85 |
% |
|
0.85 |
% |
|
0.63 |
% |
|
— |
|
bp |
|
22 |
|
bp |
Return on average
common equity |
|
8.32 |
% |
|
8.20 |
% |
|
6.03 |
% |
|
12 |
|
bp |
|
229 |
|
bp |
Return on
average tangible common equity (non-GAAP) (2) |
|
10.68 |
% |
|
10.55 |
% |
|
8.12 |
% |
|
13 |
|
bp |
|
256 |
|
bp |
At end of
period |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
25,668,553 |
|
|
$ |
25,321,759 |
|
|
$ |
22,909,348 |
|
|
5 |
|
% |
|
12 |
|
% |
Total loans, excluding
loans held-for-sale, excluding covered loans |
|
19,703,172 |
|
|
19,101,261 |
|
|
17,118,117 |
|
|
13 |
|
% |
|
15 |
|
% |
Total loans, including
loans held-for-sale, excluding covered loans |
|
20,121,546 |
|
|
19,660,895 |
|
|
17,506,155 |
|
|
9 |
|
% |
|
15 |
|
% |
Total deposits |
|
21,658,632 |
|
|
21,147,655 |
|
|
18,639,634 |
|
|
10 |
|
% |
|
16 |
|
% |
Total
shareholders’ equity |
|
2,695,617 |
|
|
2,674,474 |
|
|
2,352,274 |
|
|
3 |
|
% |
|
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 website 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 |
|
Years Ended |
(Dollars in thousands, except per
share data) |
|
December 31,
2016 |
|
September 30,
2016 |
|
December 31,
2015 |
|
December 31,
2016 |
|
December 31,
2015 |
Selected
Financial Condition Data (at end of period): |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
25,668,553 |
|
|
$ |
25,321,759 |
|
|
$ |
22,909,348 |
|
|
|
|
|
Total loans, excluding
loans held-for-sale and covered loans |
|
19,703,172 |
|
|
19,101,261 |
|
|
17,118,117 |
|
|
|
|
|
Total deposits |
|
21,658,632 |
|
|
21,147,655 |
|
|
18,639,634 |
|
|
|
|
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
268,566 |
|
|
|
|
|
Total shareholders’
equity |
|
2,695,617 |
|
|
2,674,474 |
|
|
2,352,274 |
|
|
|
|
|
Selected
Statements of Income Data: |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
190,778 |
|
|
$ |
184,636 |
|
|
$ |
167,206 |
|
|
$ |
722,193 |
|
|
$ |
641,529 |
|
Net revenue
(1) |
|
276,053 |
|
|
271,240 |
|
|
232,296 |
|
|
1,047,623 |
|
|
913,126 |
|
Net income |
|
54,608 |
|
|
53,115 |
|
|
35,512 |
|
|
206,875 |
|
|
156,749 |
|
Net income per common
share – Basic |
|
$ |
0.98 |
|
|
$ |
0.96 |
|
|
$ |
0.66 |
|
|
$ |
3.83 |
|
|
$ |
3.05 |
|
Net income per common
share – Diluted |
|
$ |
0.94 |
|
|
$ |
0.92 |
|
|
$ |
0.64 |
|
|
$ |
3.66 |
|
|
$ |
2.93 |
|
Selected
Financial Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
3.21 |
% |
|
3.21 |
% |
|
3.26 |
% |
|
3.24 |
% |
|
3.34 |
% |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
|
3.23 |
% |
|
3.24 |
% |
|
3.29 |
% |
|
3.26 |
% |
|
3.36 |
% |
Non-interest income to
average assets |
|
1.32 |
% |
|
1.38 |
% |
|
1.16 |
% |
|
1.34 |
% |
|
1.29 |
% |
Non-interest expense to
average assets |
|
2.80 |
% |
|
2.82 |
% |
|
2.98 |
% |
|
2.81 |
% |
|
2.99 |
% |
Net overhead ratio
(3) |
|
1.48 |
% |
|
1.44 |
% |
|
1.82 |
% |
|
1.47 |
% |
|
1.70 |
% |
Return on average
assets |
|
0.85 |
% |
|
0.85 |
% |
|
0.63 |
% |
|
0.85 |
% |
|
0.75 |
% |
Return on average
common equity |
|
8.32 |
% |
|
8.20 |
% |
|
6.03 |
% |
|
8.37 |
% |
|
7.15 |
% |
Return on average
tangible common equity (non-GAAP) (2) |
|
10.68 |
% |
|
10.55 |
% |
|
8.12 |
% |
|
10.90 |
% |
|
9.44 |
% |
Average total
assets |
|
$ |
25,611,060 |
|
|
$ |
24,879,252 |
|
|
$ |
22,225,112 |
|
|
$ |
24,292,231 |
|
|
$ |
20,999,837 |
|
Average total
shareholders’ equity |
|
2,689,876 |
|
|
2,651,684 |
|
|
2,347,545 |
|
|
2,549,929 |
|
|
2,232,989 |
|
Average loans to
average deposits ratio (excluding loans held-for-sale, excluding
covered loans) |
|
89.6 |
% |
|
89.8 |
% |
|
90.2 |
% |
|
90.9 |
% |
|
89.9 |
% |
Average loans to
average deposits ratio (excluding loans held-for-sale, including
covered loans) |
|
89.9 |
% |
|
90.3 |
% |
|
91.0 |
% |
|
91.4 |
% |
|
91.0 |
% |
Common Share Data
at end of period: |
|
|
|
|
|
|
|
|
|
|
Market price per common
share |
|
$ |
72.57 |
|
|
$ |
55.57 |
|
|
$ |
48.52 |
|
|
|
|
|
Book value per common
share (2) |
|
$ |
47.12 |
|
|
$ |
46.86 |
|
|
$ |
43.42 |
|
|
|
|
|
Tangible common book
value per share (2) |
|
$ |
37.08 |
|
|
$ |
37.06 |
|
|
$ |
33.17 |
|
|
|
|
|
Common shares
outstanding |
|
51,880,540 |
|
|
51,714,683 |
|
|
48,383,279 |
|
|
|
|
|
Other Data at end
of period:(6) |
|
|
|
|
|
|
|
|
|
|
Leverage Ratio
(4) |
|
8.9 |
% |
|
9.0 |
% |
|
9.1 |
% |
|
|
|
|
Tier 1 capital to
risk-weighted assets (4) |
|
9.7 |
% |
|
9.8 |
% |
|
10.0 |
% |
|
|
|
|
Common equity Tier 1
capital to risk-weighted assets (4) |
|
8.6 |
% |
|
8.7 |
% |
|
8.4 |
% |
|
|
|
|
Total capital to
risk-weighted assets (4) |
|
11.9 |
% |
|
12.1 |
% |
|
12.2 |
% |
|
|
|
|
Allowance for credit
losses (5) |
|
$ |
123,964 |
|
|
$ |
119,341 |
|
|
$ |
106,349 |
|
|
|
|
|
Non-performing
loans |
|
87,454 |
|
|
83,128 |
|
|
84,057 |
|
|
|
|
|
Allowance for credit
losses to total loans (5) |
|
0.63 |
% |
|
0.62 |
% |
|
0.62 |
% |
|
|
|
|
Non-performing loans to
total loans |
|
0.44 |
% |
|
0.44 |
% |
|
0.49 |
% |
|
|
|
|
Number of: |
|
|
|
|
|
|
|
|
|
|
Bank
subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
|
|
|
Banking
offices |
|
155 |
|
|
152 |
|
|
152 |
|
|
|
|
|
|
(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) |
|
December 31,
2016 |
|
September 30,
2016 |
|
December 31,
2015 |
Assets |
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
267,194 |
|
|
$ |
242,825 |
|
|
$ |
271,454 |
|
Federal funds sold and
securities purchased under resale agreements |
|
2,851 |
|
|
4,122 |
|
|
4,341 |
|
Interest bearing
deposits with banks |
|
980,457 |
|
|
816,104 |
|
|
607,782 |
|
Available-for-sale
securities, at fair value |
|
1,724,667 |
|
|
1,650,096 |
|
|
1,716,388 |
|
Held-to-maturity
securities, at amortized cost |
|
635,705 |
|
|
932,767 |
|
|
884,826 |
|
Trading account
securities |
|
1,989 |
|
|
1,092 |
|
|
448 |
|
Federal Home Loan Bank
and Federal Reserve Bank stock |
|
133,494 |
|
|
129,630 |
|
|
101,581 |
|
Brokerage customer
receivables |
|
25,181 |
|
|
25,511 |
|
|
27,631 |
|
Mortgage loans
held-for-sale |
|
418,374 |
|
|
559,634 |
|
|
388,038 |
|
Loans, net of unearned
income, excluding covered loans |
|
19,703,172 |
|
|
19,101,261 |
|
|
17,118,117 |
|
Covered loans |
|
58,145 |
|
|
95,940 |
|
|
148,673 |
|
Total
loans |
|
19,761,317 |
|
|
19,197,201 |
|
|
17,266,790 |
|
Allowance
for loan losses |
|
(122,291 |
) |
|
(117,693 |
) |
|
(105,400 |
) |
Allowance
for covered loan losses |
|
(1,322 |
) |
|
(1,422 |
) |
|
(3,026 |
) |
Net
loans |
|
19,637,704 |
|
|
19,078,086 |
|
|
17,158,364 |
|
Premises and equipment,
net |
|
597,301 |
|
|
597,263 |
|
|
592,256 |
|
Lease investments,
net |
|
129,402 |
|
|
116,355 |
|
|
63,170 |
|
Accrued interest
receivable and other assets |
|
593,796 |
|
|
660,923 |
|
|
597,099 |
|
Trade date securities
receivable |
|
— |
|
|
677 |
|
|
— |
|
Goodwill |
|
498,587 |
|
|
485,938 |
|
|
471,761 |
|
Other intangible
assets |
|
21,851 |
|
|
20,736 |
|
|
24,209 |
|
Total assets |
|
$ |
25,668,553 |
|
|
$ |
25,321,759 |
|
|
$ |
22,909,348 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,927,377 |
|
|
$ |
5,711,042 |
|
|
$ |
4,836,420 |
|
Interest
bearing |
|
15,731,255 |
|
|
15,436,613 |
|
|
13,803,214 |
|
Total deposits |
|
21,658,632 |
|
|
21,147,655 |
|
|
18,639,634 |
|
Federal Home Loan Bank
advances |
|
153,831 |
|
|
419,632 |
|
|
853,431 |
|
Other borrowings |
|
262,486 |
|
|
241,366 |
|
|
265,785 |
|
Subordinated notes |
|
138,971 |
|
|
138,943 |
|
|
138,861 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
268,566 |
|
Trade date securities
payable |
|
— |
|
|
— |
|
|
538 |
|
Accrued interest
payable and other liabilities |
|
505,450 |
|
|
446,123 |
|
|
390,259 |
|
Total
liabilities |
|
22,972,936 |
|
|
22,647,285 |
|
|
20,557,074 |
|
Shareholders’
Equity: |
|
|
|
|
|
|
Preferred
stock |
|
251,257 |
|
|
251,257 |
|
|
251,287 |
|
Common
stock |
|
51,978 |
|
|
51,811 |
|
|
48,469 |
|
Surplus |
|
1,365,781 |
|
|
1,356,759 |
|
|
1,190,988 |
|
Treasury
stock |
|
(4,589 |
) |
|
(4,522 |
) |
|
(3,973 |
) |
Retained
earnings |
|
1,096,518 |
|
|
1,051,748 |
|
|
928,211 |
|
Accumulated other comprehensive loss |
|
(65,328 |
) |
|
(32,579 |
) |
|
(62,708 |
) |
Total
shareholders’ equity |
|
2,695,617 |
|
|
2,674,474 |
|
|
2,352,274 |
|
Total liabilities and shareholders’ equity |
|
$ |
25,668,553 |
|
|
$ |
25,321,759 |
|
|
$ |
22,909,348 |
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|
Three Months Ended |
|
Years Ended |
(In thousands, except per share
data) |
December 31,
2016 |
|
September 30,
2016 |
|
December 31,
2015 |
|
December 31,
2016 |
|
December 31,
2015 |
Interest
income |
|
|
|
|
|
|
|
|
|
Interest
and fees on loans |
$ |
199,155 |
|
|
$ |
190,189 |
|
|
$ |
169,501 |
|
|
$ |
741,001 |
|
|
$ |
651,831 |
|
Interest
bearing deposits with banks |
1,541 |
|
|
1,156 |
|
|
493 |
|
|
4,236 |
|
|
1,486 |
|
Federal
funds sold and securities purchased under resale agreements |
1 |
|
|
1 |
|
|
— |
|
|
4 |
|
|
4 |
|
Investment securities |
12,954 |
|
|
15,496 |
|
|
16,405 |
|
|
62,038 |
|
|
61,006 |
|
Trading
account securities |
32 |
|
|
18 |
|
|
25 |
|
|
75 |
|
|
108 |
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
1,144 |
|
|
1,094 |
|
|
857 |
|
|
4,287 |
|
|
3,232 |
|
Brokerage
customer receivables |
186 |
|
|
195 |
|
|
206 |
|
|
816 |
|
|
797 |
|
Total
interest income |
215,013 |
|
|
208,149 |
|
|
187,487 |
|
|
812,457 |
|
|
718,464 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
Interest
on deposits |
16,413 |
|
|
15,621 |
|
|
12,617 |
|
|
58,409 |
|
|
48,863 |
|
Interest
on Federal Home Loan Bank advances |
2,439 |
|
|
2,577 |
|
|
2,684 |
|
|
10,886 |
|
|
9,110 |
|
Interest
on other borrowings |
1,074 |
|
|
1,137 |
|
|
1,007 |
|
|
4,355 |
|
|
3,627 |
|
Interest
on subordinated notes |
1,779 |
|
|
1,778 |
|
|
1,777 |
|
|
7,111 |
|
|
7,105 |
|
Interest
on junior subordinated debentures |
2,530 |
|
|
2,400 |
|
|
2,196 |
|
|
9,503 |
|
|
8,230 |
|
Total
interest expense |
24,235 |
|
|
23,513 |
|
|
20,281 |
|
|
90,264 |
|
|
76,935 |
|
Net interest
income |
190,778 |
|
|
184,636 |
|
|
167,206 |
|
|
722,193 |
|
|
641,529 |
|
Provision for credit
losses |
7,350 |
|
|
9,571 |
|
|
9,059 |
|
|
34,084 |
|
|
32,942 |
|
Net interest income
after provision for credit losses |
183,428 |
|
|
175,065 |
|
|
158,147 |
|
|
688,109 |
|
|
608,587 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
Wealth
management |
19,512 |
|
|
19,334 |
|
|
18,634 |
|
|
76,018 |
|
|
73,452 |
|
Mortgage
banking |
35,489 |
|
|
34,712 |
|
|
23,317 |
|
|
128,743 |
|
|
115,011 |
|
Service
charges on deposit accounts |
8,054 |
|
|
8,024 |
|
|
7,210 |
|
|
31,210 |
|
|
27,384 |
|
Gains
(losses) on investment securities, net |
1,575 |
|
|
3,305 |
|
|
(79 |
) |
|
7,645 |
|
|
323 |
|
Fees from
covered call options |
1,476 |
|
|
3,633 |
|
|
3,629 |
|
|
11,470 |
|
|
15,364 |
|
Trading
gains (losses), net |
1,007 |
|
|
(432 |
) |
|
205 |
|
|
91 |
|
|
(247 |
) |
Operating
lease income, net |
5,171 |
|
|
4,459 |
|
|
1,973 |
|
|
16,441 |
|
|
2,728 |
|
Other |
12,991 |
|
|
13,569 |
|
|
10,201 |
|
|
53,812 |
|
|
37,582 |
|
Total
non-interest income |
85,275 |
|
|
86,604 |
|
|
65,090 |
|
|
325,430 |
|
|
271,597 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
104,735 |
|
|
103,718 |
|
|
99,780 |
|
|
405,158 |
|
|
382,080 |
|
Equipment |
9,532 |
|
|
9,449 |
|
|
8,799 |
|
|
37,055 |
|
|
32,889 |
|
Operating
lease equipment depreciation |
4,219 |
|
|
3,605 |
|
|
1,202 |
|
|
13,259 |
|
|
1,749 |
|
Occupancy, net |
14,254 |
|
|
12,767 |
|
|
13,062 |
|
|
50,912 |
|
|
48,880 |
|
Data
processing |
7,687 |
|
|
7,432 |
|
|
7,284 |
|
|
28,776 |
|
|
26,940 |
|
Advertising and marketing |
6,691 |
|
|
7,365 |
|
|
5,373 |
|
|
24,776 |
|
|
21,924 |
|
Professional fees |
5,425 |
|
|
5,508 |
|
|
4,387 |
|
|
20,411 |
|
|
18,225 |
|
Amortization of other intangible assets |
1,158 |
|
|
1,085 |
|
|
1,324 |
|
|
4,789 |
|
|
4,621 |
|
FDIC
insurance |
4,726 |
|
|
3,686 |
|
|
3,317 |
|
|
16,065 |
|
|
12,386 |
|
OREO
expense, net |
1,843 |
|
|
1,436 |
|
|
2,598 |
|
|
5,187 |
|
|
4,483 |
|
Other |
20,101 |
|
|
20,564 |
|
|
19,703 |
|
|
75,297 |
|
|
74,242 |
|
Total
non-interest expense |
180,371 |
|
|
176,615 |
|
|
166,829 |
|
|
681,685 |
|
|
628,419 |
|
Income before
taxes |
88,332 |
|
|
85,054 |
|
|
56,408 |
|
|
331,854 |
|
|
251,765 |
|
Income tax expense |
33,724 |
|
|
31,939 |
|
|
20,896 |
|
|
124,979 |
|
|
95,016 |
|
Net
income |
$ |
54,608 |
|
|
$ |
53,115 |
|
|
$ |
35,512 |
|
|
$ |
206,875 |
|
|
$ |
156,749 |
|
Preferred stock
dividends and discount accretion |
3,629 |
|
|
3,628 |
|
|
3,629 |
|
|
14,513 |
|
|
10,869 |
|
Net income
applicable to common shares |
$ |
50,979 |
|
|
$ |
49,487 |
|
|
$ |
31,883 |
|
|
$ |
192,362 |
|
|
$ |
145,880 |
|
Net income per
common share - Basic |
$ |
0.98 |
|
|
$ |
0.96 |
|
|
$ |
0.66 |
|
|
$ |
3.83 |
|
|
$ |
3.05 |
|
Net income per
common share - Diluted |
$ |
0.94 |
|
|
$ |
0.92 |
|
|
$ |
0.64 |
|
|
$ |
3.66 |
|
|
$ |
2.93 |
|
Cash dividends
declared per common share |
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.11 |
|
|
$ |
0.48 |
|
|
$ |
0.44 |
|
Weighted average common
shares outstanding |
51,812 |
|
|
51,679 |
|
|
48,371 |
|
|
50,278 |
|
|
47,838 |
|
Dilutive potential
common shares |
4,152 |
|
|
4,047 |
|
|
4,005 |
|
|
3,994 |
|
|
4,099 |
|
Average common shares
and dilutive common shares |
55,964 |
|
|
55,726 |
|
|
52,376 |
|
|
54,272 |
|
|
51,937 |
|
EARNINGS PER SHARE
The following table shows the computation of
basic and diluted earnings per share for the periods indicated:
|
|
|
Three Months Ended |
|
Years Ended |
(In thousands, except per share
data) |
|
|
December 31,
2016 |
|
September 30,
2016 |
|
December 31,
2015 |
|
December 31,
2016 |
|
December 31,
2015 |
Net income |
|
|
$ |
54,608 |
|
|
$ |
53,115 |
|
|
$ |
35,512 |
|
|
$ |
206,875 |
|
|
$ |
156,749 |
|
Less: Preferred stock
dividends and discount accretion |
|
|
3,629 |
|
|
3,628 |
|
|
3,629 |
|
|
14,513 |
|
|
10,869 |
|
Net income applicable
to common shares—Basic |
(A) |
|
50,979 |
|
|
49,487 |
|
|
31,883 |
|
|
192,362 |
|
|
145,880 |
|
Add: Dividends on
convertible preferred stock, if dilutive |
|
|
1,578 |
|
|
1,578 |
|
|
1,579 |
|
|
6,313 |
|
|
6,314 |
|
Net income applicable
to common shares—Diluted |
(B) |
|
52,557 |
|
|
51,065 |
|
|
33,462 |
|
|
198,675 |
|
|
152,194 |
|
Weighted average common
shares outstanding |
(C) |
|
51,812 |
|
|
51,679 |
|
|
48,371 |
|
|
50,278 |
|
|
47,838 |
|
Effect of dilutive
potential common shares: |
|
|
|
|
|
|
|
|
|
|
|
Common
stock equivalents |
|
|
1,052 |
|
|
938 |
|
|
935 |
|
|
894 |
|
|
1,029 |
|
Convertible preferred stock, if dilutive |
|
|
3,100 |
|
|
3,109 |
|
|
3,070 |
|
|
3,100 |
|
|
3,070 |
|
Weighted average common
shares and effect of dilutive potential common shares |
(D) |
|
55,964 |
|
|
55,726 |
|
|
52,376 |
|
|
54,272 |
|
|
51,937 |
|
Net income per common
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
(A/C) |
|
$ |
0.98 |
|
|
$ |
0.96 |
|
|
$ |
0.66 |
|
|
$ |
3.83 |
|
|
$ |
3.05 |
|
Diluted |
(B/D) |
|
$ |
0.94 |
|
|
$ |
0.92 |
|
|
$ |
0.64 |
|
|
$ |
3.66 |
|
|
$ |
2.93 |
|
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),
taxable-equivalent net interest margin (including its individual
components), the taxable-equivalent 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
Company's 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 |
|
Years Ended |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
(Dollars and shares in
thousands) |
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Calculation of
Net Interest Margin and Efficiency Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Interest
Income (GAAP) |
$ |
215,013 |
|
|
$ |
208,149 |
|
|
$ |
197,064 |
|
|
$ |
192,231 |
|
|
$ |
187,487 |
|
|
$ |
812,457 |
|
|
$ |
718,464 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Loans |
666 |
|
|
584 |
|
|
523 |
|
|
509 |
|
|
430 |
|
|
2,282 |
|
|
1,431 |
|
-
Liquidity Management Assets |
815 |
|
|
963 |
|
|
932 |
|
|
920 |
|
|
866 |
|
|
3,630 |
|
|
3,221 |
|
-
Other Earning Assets |
17 |
|
|
9 |
|
|
8 |
|
|
6 |
|
|
13 |
|
|
40 |
|
|
57 |
|
(B) Interest
Income - FTE |
$ |
216,511 |
|
|
$ |
209,705 |
|
|
$ |
198,527 |
|
|
$ |
193,666 |
|
|
$ |
188,796 |
|
|
$ |
818,409 |
|
|
$ |
723,173 |
|
(C) Interest
Expense (GAAP) |
24,235 |
|
|
23,513 |
|
|
21,794 |
|
|
20,722 |
|
|
20,281 |
|
|
90,264 |
|
|
76,935 |
|
(D) Net
Interest Income - FTE (B minus C) |
$ |
192,276 |
|
|
$ |
186,192 |
|
|
$ |
176,733 |
|
|
$ |
172,944 |
|
|
$ |
168,515 |
|
|
$ |
728,145 |
|
|
$ |
646,238 |
|
(E) Net
Interest Income (GAAP) (A minus C) |
$ |
190,778 |
|
|
$ |
184,636 |
|
|
$ |
175,270 |
|
|
$ |
171,509 |
|
|
$ |
167,206 |
|
|
$ |
722,193 |
|
|
$ |
641,529 |
|
Net interest
margin (GAAP-derived) |
3.21 |
% |
|
3.21 |
% |
|
3.24 |
% |
|
3.29 |
% |
|
3.26 |
% |
|
3.24 |
% |
|
3.34 |
% |
Net
interest margin - FTE |
3.23 |
% |
|
3.24 |
% |
|
3.27 |
% |
|
3.32 |
% |
|
3.29 |
% |
|
3.26 |
% |
|
3.36 |
% |
(F) Non-interest
income |
$ |
85,275 |
|
|
$ |
86,604 |
|
|
$ |
84,799 |
|
|
$ |
68,752 |
|
|
$ |
65,090 |
|
|
$ |
325,430 |
|
|
$ |
271,597 |
|
(G) Gains (losses) on
investment securities, net |
1,575 |
|
|
3,305 |
|
|
1,440 |
|
|
1,325 |
|
|
(79 |
) |
|
7,645 |
|
|
323 |
|
(H) Non-interest
expense |
180,371 |
|
|
176,615 |
|
|
170,969 |
|
|
153,730 |
|
|
166,829 |
|
|
681,685 |
|
|
628,419 |
|
Efficiency
ratio (H/(E+F-G)) |
65.71 |
% |
|
65.92 |
% |
|
66.11 |
% |
|
64.34 |
% |
|
71.79 |
% |
|
65.55 |
% |
|
68.84 |
% |
Efficiency
ratio - FTE (H/(D+F-G)) |
65.36 |
% |
|
65.54 |
% |
|
65.73 |
% |
|
63.96 |
% |
|
71.39 |
% |
|
65.18 |
% |
|
68.49 |
% |
Calculation of
Tangible Common Equity ratio (at period end) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
2,695,617 |
|
|
$ |
2,674,474 |
|
|
$ |
2,623,595 |
|
|
$ |
2,418,442 |
|
|
$ |
2,352,274 |
|
|
|
|
|
(I) Less: Convertible
preferred stock |
(126,257 |
) |
|
(126,257 |
) |
|
(126,257 |
) |
|
(126,257 |
) |
|
(126,287 |
) |
|
|
|
|
Less:
Non-convertible preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
|
|
|
Less: Intangible
assets |
(520,438 |
) |
|
(506,674 |
) |
|
(507,916 |
) |
|
(508,005 |
) |
|
(495,970 |
) |
|
|
|
|
(J) Total tangible
common shareholders’ equity |
$ |
1,923,922 |
|
|
$ |
1,916,543 |
|
|
$ |
1,864,422 |
|
|
$ |
1,659,180 |
|
|
$ |
1,605,017 |
|
|
|
|
|
Total assets |
$ |
25,668,553 |
|
|
$ |
25,321,759 |
|
|
$ |
24,420,616 |
|
|
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
|
|
|
|
Less: Intangible
assets |
(520,438 |
) |
|
(506,674 |
) |
|
(507,916 |
) |
|
(508,005 |
) |
|
(495,970 |
) |
|
|
|
|
(K) Total tangible
assets |
$ |
25,148,115 |
|
|
$ |
24,815,085 |
|
|
$ |
23,912,700 |
|
|
$ |
22,980,163 |
|
|
$ |
22,413,378 |
|
|
|
|
|
Tangible common
equity ratio (J/K) |
7.7 |
% |
|
7.7 |
% |
|
7.8 |
% |
|
7.2 |
% |
|
7.2 |
% |
|
|
|
|
Tangible common
equity ratio, assuming full conversion of convertible preferred
stock ((J-I)/K) |
8.2 |
% |
|
8.2 |
% |
|
8.3 |
% |
|
7.8 |
% |
|
7.7 |
% |
|
|
|
|
Calculation of
book value per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
2,695,617 |
|
|
$ |
2,674,474 |
|
|
$ |
2,623,595 |
|
|
$ |
2,418,442 |
|
|
$ |
2,352,274 |
|
|
|
|
|
Less: Preferred
stock |
(251,257 |
) |
|
(251,257 |
) |
|
(251,257 |
) |
|
(251,257 |
) |
|
(251,287 |
) |
|
|
|
|
(L) Total common
equity |
$ |
2,444,360 |
|
|
$ |
2,423,217 |
|
|
$ |
2,372,338 |
|
|
$ |
2,167,185 |
|
|
$ |
2,100,987 |
|
|
|
|
|
(M) Actual common
shares outstanding |
51,881 |
|
|
51,715 |
|
|
51,619 |
|
|
48,519 |
|
|
48,383 |
|
|
|
|
|
Book value per
common share (L/M) |
$ |
47.12 |
|
|
$ |
46.86 |
|
|
$ |
45.96 |
|
|
$ |
44.67 |
|
|
$ |
43.42 |
|
|
|
|
|
Tangible common
book value per share (J/M) |
$ |
37.08 |
|
|
$ |
37.06 |
|
|
$ |
36.12 |
|
|
$ |
34.20 |
|
|
$ |
33.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
return on average common equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
(N) Net income
applicable to common shares |
50,979 |
|
|
49,487 |
|
|
46,413 |
|
|
45,483 |
|
|
31,883 |
|
|
192,362 |
|
|
145,880 |
|
Add: After-tax
intangible asset amortization |
716 |
|
|
677 |
|
|
781 |
|
|
812 |
|
|
834 |
|
|
2,986 |
|
|
2,879 |
|
(O) Tangible net income
applicable to common shares |
51,695 |
|
|
50,164 |
|
|
47,194 |
|
|
46,295 |
|
|
32,717 |
|
|
195,348 |
|
|
148,759 |
|
Total average
shareholders' equity |
2,689,876 |
|
|
2,651,684 |
|
|
2,465,732 |
|
|
2,389,770 |
|
|
2,347,545 |
|
|
2,549,929 |
|
|
2,232,989 |
|
Less: Average preferred
stock |
(251,257 |
) |
|
(251,257 |
) |
|
(251,257 |
) |
|
(251,262 |
) |
|
(251,293 |
) |
|
(251,258 |
) |
|
(191,416 |
) |
(P) Total average
common shareholders' equity |
2,438,619 |
|
|
2,400,427 |
|
|
2,214,475 |
|
|
2,138,508 |
|
|
2,096,252 |
|
|
2,298,671 |
|
|
2,041,573 |
|
Less: Average
intangible assets |
(513,017 |
) |
|
(508,812 |
) |
|
(507,439 |
) |
|
(495,594 |
) |
|
(497,199 |
) |
|
(506,241 |
) |
|
(466,225 |
) |
(Q) Total average
tangible common shareholders’ equity |
1,925,602 |
|
|
1,891,615 |
|
|
1,707,036 |
|
|
1,642,914 |
|
|
1,599,053 |
|
|
1,792,430 |
|
|
1,575,348 |
|
Return on
average common equity, annualized (N/P) |
8.32 |
% |
|
8.20 |
% |
|
8.43 |
% |
|
8.55 |
% |
|
6.03 |
% |
|
8.37 |
% |
|
7.15 |
% |
Return on
average tangible common equity, annualized (O/Q) |
10.68 |
% |
|
10.55 |
% |
|
11.12 |
% |
|
11.33 |
% |
|
8.12 |
% |
|
10.90 |
% |
|
9.44 |
% |
LOANS
Loan Portfolio Mix and Growth Rates
|
|
|
|
|
|
|
|
% Growth |
(Dollars in thousands) |
|
December 31,
2016 |
|
September 30,
2016 |
|
December 31,
2015 |
|
From (1)
September 30,
2016 |
|
From
December 31,
2015 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
6,005,422 |
|
|
$ |
5,951,544 |
|
|
$ |
4,713,909 |
|
|
4 |
% |
|
27 |
% |
Commercial real estate |
|
6,196,087 |
|
|
5,908,684 |
|
|
5,529,289 |
|
|
19 |
|
|
12 |
|
Home
equity |
|
725,793 |
|
|
742,868 |
|
|
784,675 |
|
|
(9 |
) |
|
(8 |
) |
Residential real estate |
|
705,221 |
|
|
663,598 |
|
|
607,451 |
|
|
25 |
|
|
16 |
|
Premium
finance receivables - commercial |
|
2,478,581 |
|
|
2,430,233 |
|
|
2,374,921 |
|
|
8 |
|
|
4 |
|
Premium
finance receivables - life insurance |
|
3,470,027 |
|
|
3,283,359 |
|
|
2,961,496 |
|
|
23 |
|
|
17 |
|
Consumer
and other |
|
122,041 |
|
|
120,975 |
|
|
146,376 |
|
|
4 |
|
|
(17 |
) |
Total
loans, net of unearned income, excluding covered loans |
|
$ |
19,703,172 |
|
|
$ |
19,101,261 |
|
|
$ |
17,118,117 |
|
|
13 |
% |
|
15 |
% |
Covered
loans |
|
58,145 |
|
|
95,940 |
|
|
148,673 |
|
|
(157 |
) |
|
(61 |
) |
Total
loans, net of unearned income |
|
$ |
19,761,317 |
|
|
$ |
19,197,201 |
|
|
$ |
17,266,790 |
|
|
12 |
% |
|
14 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
30 |
% |
|
31 |
% |
|
27 |
% |
|
|
|
|
Commercial real estate |
|
31 |
|
|
31 |
|
|
32 |
|
|
|
|
|
Home
equity |
|
4 |
|
|
4 |
|
|
5 |
|
|
|
|
|
Residential real estate |
|
4 |
|
|
3 |
|
|
3 |
|
|
|
|
|
Premium
finance receivables - commercial |
|
12 |
|
|
13 |
|
|
14 |
|
|
|
|
|
Premium
finance receivables - life insurance |
|
18 |
|
|
17 |
|
|
17 |
|
|
|
|
|
Consumer
and other |
|
1 |
|
|
1 |
|
|
1 |
|
|
|
|
|
Total
loans, net of unearned income, excluding covered loans |
|
100 |
% |
|
100 |
% |
|
99 |
% |
|
|
|
|
Covered
loans |
|
— |
|
|
— |
|
|
1 |
|
|
|
|
|
Total
loans, net of unearned income |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and Commercial Real Estate Loan
Portfolios
|
|
|
|
|
|
|
|
|
|
|
As of December
31, 2016 |
|
|
|
% of
Total
Balance |
|
Nonaccrual |
|
> 90 Days
Past Due
and Still
Accruing |
|
Allowance
For Loan
Losses
Allocation |
|
|
|
|
(Dollars in thousands) |
|
Balance |
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
Commercial, industrial and other |
|
$ |
3,744,712 |
|
|
30.7 |
% |
|
$ |
13,441 |
|
|
$ |
174 |
|
|
$ |
29,831 |
|
Franchise |
|
869,721 |
|
|
7.1 |
|
|
— |
|
|
— |
|
|
4,744 |
|
Mortgage
warehouse lines of credit |
|
204,225 |
|
|
1.7 |
|
|
— |
|
|
— |
|
|
1,548 |
|
Asset-based lending |
|
875,070 |
|
|
7.2 |
|
|
1,924 |
|
|
— |
|
|
6,860 |
|
Leases |
|
294,914 |
|
|
2.4 |
|
|
510 |
|
|
— |
|
|
858 |
|
PCI -
commercial loans (1) |
|
16,780 |
|
|
0.1 |
|
|
— |
|
|
1,689 |
|
|
652 |
|
Total commercial |
|
$ |
6,005,422 |
|
|
49.2 |
% |
|
$ |
15,875 |
|
|
$ |
1,863 |
|
|
$ |
44,493 |
|
Commercial Real
Estate: |
|
|
|
|
|
|
|
|
|
|
Construction |
|
$ |
610,239 |
|
|
5.0 |
% |
|
$ |
2,408 |
|
|
$ |
— |
|
|
$ |
7,304 |
|
Land |
|
104,801 |
|
|
0.9 |
|
|
394 |
|
|
— |
|
|
3,679 |
|
Office |
|
867,674 |
|
|
7.1 |
|
|
4,337 |
|
|
— |
|
|
5,769 |
|
Industrial |
|
770,601 |
|
|
6.3 |
|
|
7,047 |
|
|
— |
|
|
6,660 |
|
Retail |
|
912,593 |
|
|
7.5 |
|
|
597 |
|
|
— |
|
|
5,948 |
|
Multi-family |
|
807,624 |
|
|
6.6 |
|
|
643 |
|
|
— |
|
|
8,070 |
|
Mixed use
and other |
|
1,952,175 |
|
|
16.0 |
|
|
6,498 |
|
|
— |
|
|
13,953 |
|
PCI -
commercial real estate (1) |
|
170,380 |
|
|
1.4 |
|
|
— |
|
|
16,188 |
|
|
39 |
|
Total commercial real estate |
|
$ |
6,196,087 |
|
|
50.8 |
% |
|
$ |
21,924 |
|
|
$ |
16,188 |
|
|
$ |
51,422 |
|
Total commercial and commercial real estate |
|
$ |
12,201,509 |
|
|
100.0 |
% |
|
$ |
37,799 |
|
|
$ |
18,051 |
|
|
$ |
95,915 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
- collateral location by state: |
|
|
|
|
|
|
|
|
|
|
Illinois |
|
$ |
4,927,270 |
|
|
79.4 |
% |
|
|
|
|
|
|
Wisconsin |
|
646,429 |
|
|
10.4 |
|
|
|
|
|
|
|
Total primary markets |
|
$ |
5,573,699 |
|
|
89.8 |
% |
|
|
|
|
|
|
Indiana |
|
120,999 |
|
|
2.0 |
|
|
|
|
|
|
|
Florida |
|
77,528 |
|
|
1.3 |
|
|
|
|
|
|
|
Arizona |
|
53,512 |
|
|
0.9 |
|
|
|
|
|
|
|
California |
|
42,590 |
|
|
0.7 |
|
|
|
|
|
|
|
Other (no
individual state greater than 0.7%) |
|
327,759 |
|
|
5.3 |
|
|
|
|
|
|
|
Total |
|
$ |
6,196,087 |
|
|
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) |
|
December 31,
2016 |
|
September 30,
2016 |
|
December 31,
2015 |
|
From (1)
September 30,
2016 |
|
From
December 31,
2015 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,927,377 |
|
|
$ |
5,711,042 |
|
|
$ |
4,836,420 |
|
|
15 |
% |
|
23 |
% |
NOW and
interest bearing demand deposits |
|
2,624,442 |
|
|
2,552,611 |
|
|
2,390,217 |
|
|
11 |
|
|
10 |
|
Wealth
management deposits (2) |
|
2,209,617 |
|
|
2,283,233 |
|
|
1,643,653 |
|
|
(13 |
) |
|
34 |
|
Money
market |
|
4,441,811 |
|
|
4,421,631 |
|
|
4,041,300 |
|
|
2 |
|
|
10 |
|
Savings |
|
2,180,482 |
|
|
1,977,661 |
|
|
1,723,367 |
|
|
41 |
|
|
27 |
|
Time
certificates of deposit |
|
4,274,903 |
|
|
4,201,477 |
|
|
4,004,677 |
|
|
7 |
|
|
7 |
|
Total
deposits |
|
$ |
21,658,632 |
|
|
$ |
21,147,655 |
|
|
$ |
18,639,634 |
|
|
10 |
% |
|
16 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
27 |
% |
|
27 |
% |
|
26 |
% |
|
|
|
|
NOW and
interest bearing demand deposits |
|
12 |
|
|
12 |
|
|
13 |
|
|
|
|
|
Wealth
management deposits (2) |
|
10 |
|
|
11 |
|
|
9 |
|
|
|
|
|
Money
market |
|
21 |
|
|
21 |
|
|
22 |
|
|
|
|
|
Savings |
|
10 |
|
|
9 |
|
|
9 |
|
|
|
|
|
Time
certificates of deposit |
|
20 |
|
|
20 |
|
|
21 |
|
|
|
|
|
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 December 31, 2016
(Dollars in thousands) |
|
CDARs &
Brokered
Certificates
of Deposit (1) |
|
MaxSafe
Certificates
of Deposit (1) |
|
Variable Rate
Certificates
of Deposit (2) |
|
Other Fixed
Rate Certificates
of Deposit (1) |
|
Total Time
Certificates of
Deposit |
|
Weighted-Average
Rate of Maturing
Time Certificates
of Deposit (3) |
1-3 months |
|
$ |
— |
|
|
$ |
47,173 |
|
|
$ |
135,859 |
|
|
$ |
704,448 |
|
|
$ |
887,480 |
|
|
0.62 |
% |
4-6 months |
|
43,576 |
|
|
35,674 |
|
|
— |
|
|
567,313 |
|
|
646,563 |
|
|
0.70 |
% |
7-9 months |
|
533 |
|
|
23,503 |
|
|
— |
|
|
535,359 |
|
|
559,395 |
|
|
0.81 |
% |
10-12 months |
|
1,252 |
|
|
18,696 |
|
|
— |
|
|
690,123 |
|
|
710,071 |
|
|
0.94 |
% |
13-18 months |
|
4,524 |
|
|
12,826 |
|
|
— |
|
|
1,006,160 |
|
|
1,023,510 |
|
|
1.11 |
% |
19-24 months |
|
— |
|
|
8,814 |
|
|
— |
|
|
141,364 |
|
|
150,178 |
|
|
0.96 |
% |
24+ months |
|
1,249 |
|
|
19,797 |
|
|
— |
|
|
276,660 |
|
|
297,706 |
|
|
1.30 |
% |
Total |
|
$ |
51,134 |
|
|
$ |
166,483 |
|
|
$ |
135,859 |
|
|
$ |
3,921,427 |
|
|
$ |
4,274,903 |
|
|
0.89 |
% |
|
(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 fourth quarter of 2016 compared to the third quarter of 2016
(sequential quarters) and fourth 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) |
December 31,
2016 |
|
September 30,
2016 |
|
December 31,
2015 |
|
December 31,
2016 |
|
September 30,
2016 |
|
December 31,
2015 |
|
December 31,
2016 |
|
September 30,
2016 |
|
December 31,
2015 |
Liquidity management
assets(1)(2)(7) |
$ |
3,860,616 |
|
|
$ |
3,671,577 |
|
|
$ |
3,245,393 |
|
|
$ |
16,455 |
|
|
$ |
18,710 |
|
|
$ |
18,621 |
|
|
1.70 |
% |
|
2.03 |
% |
|
2.28 |
% |
Other earning
assets(2)(3)(7) |
27,608 |
|
|
29,875 |
|
|
29,792 |
|
|
235 |
|
|
222 |
|
|
244 |
|
|
3.37 |
|
|
2.96 |
|
|
3.26 |
|
Loans, net of unearned
income(2)(4)(7) |
19,711,504 |
|
|
19,071,621 |
|
|
16,889,922 |
|
|
198,861 |
|
|
189,637 |
|
|
168,060 |
|
|
4.01 |
|
|
3.96 |
|
|
3.95 |
|
Covered loans |
59,827 |
|
|
101,570 |
|
|
154,846 |
|
|
960 |
|
|
1,136 |
|
|
1,871 |
|
|
6.38 |
|
|
4.45 |
|
|
4.79 |
|
Total
earning assets(7) |
$ |
23,659,555 |
|
|
$ |
22,874,643 |
|
|
$ |
20,319,953 |
|
|
$ |
216,511 |
|
|
$ |
209,705 |
|
|
$ |
188,796 |
|
|
3.64 |
% |
|
3.65 |
% |
|
3.69 |
% |
Allowance for loan and
covered loan losses |
(122,665 |
) |
|
(121,156 |
) |
|
(109,448 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
221,892 |
|
|
240,239 |
|
|
260,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
1,852,278 |
|
|
1,885,526 |
|
|
1,754,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
25,611,060 |
|
|
$ |
24,879,252 |
|
|
$ |
22,225,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
$ |
15,567,263 |
|
|
$ |
15,117,102 |
|
|
$ |
13,606,046 |
|
|
$ |
16,413 |
|
|
$ |
15,621 |
|
|
$ |
12,617 |
|
|
0.42 |
% |
|
0.41 |
% |
|
0.37 |
% |
Federal Home Loan Bank
advances |
388,780 |
|
|
459,198 |
|
|
441,669 |
|
|
2,439 |
|
|
2,577 |
|
|
2,684 |
|
|
2.50 |
|
|
2.23 |
|
|
2.41 |
|
Other borrowings |
240,174 |
|
|
249,307 |
|
|
269,738 |
|
|
1,074 |
|
|
1,137 |
|
|
1,007 |
|
|
1.78 |
|
|
1.81 |
|
|
1.48 |
|
Subordinated notes |
138,953 |
|
|
138,925 |
|
|
138,852 |
|
|
1,779 |
|
|
1,778 |
|
|
1,777 |
|
|
5.12 |
|
|
5.12 |
|
|
5.12 |
|
Junior subordinated
debentures |
253,566 |
|
|
253,566 |
|
|
268,566 |
|
|
2,530 |
|
|
2,400 |
|
|
2,196 |
|
|
3.90 |
|
|
3.70 |
|
|
3.20 |
|
Total
interest-bearing liabilities |
$ |
16,588,736 |
|
|
$ |
16,218,098 |
|
|
$ |
14,724,871 |
|
|
$ |
24,235 |
|
|
$ |
23,513 |
|
|
$ |
20,281 |
|
|
0.58 |
% |
|
0.58 |
% |
|
0.55 |
% |
Non-interest bearing
deposits |
5,902,439 |
|
|
5,566,983 |
|
|
4,776,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
430,009 |
|
|
442,487 |
|
|
375,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
2,689,876 |
|
|
2,651,684 |
|
|
2,347,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders’ equity |
$ |
25,611,060 |
|
|
$ |
24,879,252 |
|
|
$ |
22,225,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread(5)(7) |
|
|
|
|
|
|
|
|
|
|
|
|
3.06 |
% |
|
3.07 |
% |
|
3.14 |
% |
Less: Fully
tax-equivalent adjustment |
|
|
|
|
|
|
(1,498 |
) |
|
(1,556 |
) |
|
(1,309 |
) |
|
(0.02 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
Net free
funds/ contribution(6) |
$ |
7,070,819 |
|
|
$ |
6,656,545 |
|
|
$ |
5,595,082 |
|
|
|
|
|
|
|
|
0.17 |
|
|
0.17 |
|
|
0.15 |
|
Net interest income/
margin(7) (GAAP) |
|
|
|
|
|
|
$ |
190,778 |
|
|
$ |
184,636 |
|
|
$ |
167,206 |
|
|
3.21 |
% |
|
3.21 |
% |
|
3.26 |
% |
Fully tax-equivalent
adjustment |
|
|
|
|
|
|
1,498 |
|
|
1,556 |
|
|
1,309 |
|
|
0.02 |
|
|
0.03 |
|
|
0.03 |
|
Net interest income/
margin - FTE (7) |
|
|
|
|
|
|
$ |
192,276 |
|
|
$ |
186,192 |
|
|
$ |
168,515 |
|
|
3.23 |
% |
|
3.24 |
% |
|
3.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 investment securities reflects a tax-equivalent
adjustment based on a marginal federal corporate tax rate of 35%.
The total adjustments for the three months ended December 31,
2016, September 30, 2016 and December 31, 2015 were $1.5
million, $1.6 million and $1.3 million, respectively.
|
(3) Other earning assets include brokerage customer
receivables and trading account securities.
|
(4) Loans, net of unearned income, include loans
held-for-sale and non-accrual loans.
|
(5) Interest rate spread is the difference between
the yield earned on earning assets and the rate paid on
interest-bearing liabilities.
|
(6) Net free funds are the difference between total
average earning assets and total average interest-bearing
liabilities. The estimated contribution to net interest margin from
net free funds is calculated using the rate paid for total
interest-bearing liabilities.
|
(7) See “Supplemental Financial Measures/Ratios” for
additional information on this performance ratio. |
For the fourth quarter of 2016, net interest income totaled $190.8
million, an increase of $6.1 million as compared to the third
quarter of 2016 and an increase of $23.6 million as compared to the
fourth quarter of 2015. Net interest margin was 3.21% (3.23% on a
fully tax-equivalent basis) during the fourth quarter of 2016
compared to 3.21% (3.24% on a fully tax-equivalent basis) during
the third quarter of 2016 and 3.26% (3.29% on a fully
tax-equivalent basis) during the fourth quarter of 2015.
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 year ended December 31, 2016 compared to the year ended
December 31, 2015:
|
Average Balance
for Year Ended, |
|
Interest
for Year Ended, |
|
Yield/Rate
for Year Ended, |
(Dollars in thousands) |
December 31,
2016 |
|
December 31,
2015 |
|
December 31,
2016 |
|
December 31,
2015 |
|
December 31,
2016 |
|
December 31,
2015 |
Liquidity management
assets(1)(2)(7) |
$ |
3,562,480 |
|
|
$ |
2,992,506 |
|
|
$ |
74,195 |
|
|
$ |
68,949 |
|
|
2.08 |
% |
|
2.30 |
% |
Other earning
assets(2)(3)(7) |
28,992 |
|
|
30,161 |
|
|
931 |
|
|
962 |
|
|
3.21 |
|
|
3.19 |
|
Loans, net of unearned
income(2)(4)(7) |
18,628,261 |
|
|
16,022,371 |
|
|
737,694 |
|
|
641,917 |
|
|
3.96 |
|
|
4.01 |
|
Covered loans |
102,948 |
|
|
186,427 |
|
|
5,589 |
|
|
11,345 |
|
|
5.43 |
|
|
6.09 |
|
Total
earning assets(7) |
$ |
22,322,681 |
|
|
$ |
19,231,465 |
|
|
$ |
818,409 |
|
|
$ |
723,173 |
|
|
3.67 |
% |
|
3.76 |
% |
Allowance for loan and
covered loan losses |
(118,229 |
) |
|
(103,459 |
) |
|
|
|
|
|
|
|
|
Cash and due from
banks |
248,507 |
|
|
249,488 |
|
|
|
|
|
|
|
|
|
Other assets |
1,839,272 |
|
|
1,622,343 |
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
24,292,231 |
|
|
$ |
20,999,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
$ |
14,620,886 |
|
|
$ |
13,271,304 |
|
|
$ |
58,409 |
|
|
$ |
48,863 |
|
|
0.40 |
% |
|
0.37 |
% |
Federal Home Loan Bank
advances |
653,529 |
|
|
380,936 |
|
|
10,886 |
|
|
9,110 |
|
|
1.67 |
|
|
2.39 |
|
Other borrowings |
248,753 |
|
|
232,895 |
|
|
4,355 |
|
|
3,627 |
|
|
1.75 |
|
|
1.56 |
|
Subordinated notes |
138,912 |
|
|
138,812 |
|
|
7,111 |
|
|
7,105 |
|
|
5.12 |
|
|
5.12 |
|
Junior subordinated
debentures |
254,591 |
|
|
258,203 |
|
|
9,503 |
|
|
8,230 |
|
|
3.67 |
|
|
3.14 |
|
Total
interest-bearing liabilities |
$ |
15,916,671 |
|
|
$ |
14,282,150 |
|
|
$ |
90,264 |
|
|
$ |
76,935 |
|
|
0.57 |
% |
|
0.54 |
% |
Non-interest bearing
deposits |
5,409,923 |
|
|
4,144,378 |
|
|
|
|
|
|
|
|
|
Other liabilities |
415,708 |
|
|
340,321 |
|
|
|
|
|
|
|
|
|
Equity |
2,549,929 |
|
|
2,232,989 |
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders’ equity |
$ |
24,292,231 |
|
|
$ |
20,999,837 |
|
|
|
|
|
|
|
|
|
Interest rate
spread(5)(7) |
|
|
|
|
|
|
|
|
3.10 |
% |
|
3.22 |
% |
Less: Fully
tax-equivalent adjustment |
|
|
|
|
(5,952 |
) |
|
(4,709 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
Net free
funds/contribution(6) |
$ |
6,406,010 |
|
|
$ |
4,949,315 |
|
|
|
|
|
|
0.16 |
|
|
0.14 |
|
Net interest income/
margin(7) (GAAP) |
|
|
|
|
$ |
722,193 |
|
|
$ |
641,529 |
|
|
3.24 |
% |
|
3.34 |
% |
Fully tax-equivalent
adjustment |
|
|
|
|
5,952 |
|
|
4,709 |
|
|
0.02 |
|
|
0.02 |
|
Net interest income/
margin - FTE (7) |
|
|
|
|
$ |
728,145 |
|
|
$ |
646,238 |
|
|
3.26 |
% |
|
3.36 |
% |
|
(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 investment securities reflects a tax-equivalent
adjustment based on a marginal federal corporate tax rate of 35%.
The total adjustments for the years ended December 31, 2016 and
2015 were $6.0 million and $4.7 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 year ended 2016, net interest income totaled $722.2
million, an increase of $80.7 million as compared to the year ended
2015. Net interest margin was 3.24% (3.26% on a fully
tax-equivalent basis) for the year ended 2016 compared to 3.34%
(3.36% on a fully tax-equivalent basis) for the year ended 2015.
The reduction in net interest margin compared to the year ended
2015 is primarily the result of a decline in yields on
liquidity management assets and 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 December 31,
2016, September 30, 2016 and December 31, 2015 is as
follows:
|
|
|
|
|
|
Static Shock Scenario |
|
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
December 31,
2016 |
|
18.5 |
% |
|
9.6 |
% |
|
(13.2 |
)% |
September 30, 2016 |
|
19.6 |
% |
|
10.1 |
% |
|
(10.4 |
)% |
December 31, 2015 |
|
16.1 |
% |
|
8.7 |
% |
|
(10.6 |
)% |
Ramp Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
December 31,
2016 |
7.6 |
% |
|
4.0 |
% |
|
(5.0 |
)% |
September 30, 2016 |
7.8 |
% |
|
3.9 |
% |
|
(4.1 |
)% |
December 31, 2015 |
7.3 |
% |
|
3.9 |
% |
|
(4.4 |
)% |
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 |
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
Q4 2016 compared to
Q3 2016 |
|
Q4 2016 compared to
Q4 2015 |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
|
$ |
6,408 |
|
|
$ |
6,752 |
|
|
$ |
6,850 |
|
|
$ |
(344 |
) |
|
(5 |
)% |
|
$ |
(442 |
) |
|
(6 |
)% |
Trust and asset
management |
|
13,104 |
|
|
12,582 |
|
|
11,784 |
|
|
522 |
|
|
4 |
|
|
1,320 |
|
|
11 |
|
Total
wealth management |
|
19,512 |
|
|
19,334 |
|
|
18,634 |
|
|
178 |
|
|
1 |
|
|
878 |
|
|
5 |
|
Mortgage banking |
|
35,489 |
|
|
34,712 |
|
|
23,317 |
|
|
777 |
|
|
2 |
|
|
12,172 |
|
|
52 |
|
Service charges on
deposit accounts |
|
8,054 |
|
|
8,024 |
|
|
7,210 |
|
|
30 |
|
|
— |
|
|
844 |
|
|
12 |
|
Gains (losses) on
investment securities, net |
|
1,575 |
|
|
3,305 |
|
|
(79 |
) |
|
(1,730 |
) |
|
NM |
|
|
1,654 |
|
|
NM |
|
Fees from covered call
options |
|
1,476 |
|
|
3,633 |
|
|
3,629 |
|
|
(2,157 |
) |
|
(59 |
) |
|
(2,153 |
) |
|
(59 |
) |
Trading gains (losses),
net |
|
1,007 |
|
|
(432 |
) |
|
205 |
|
|
1,439 |
|
|
NM |
|
|
802 |
|
|
NM |
|
Operating lease income,
net |
|
5,171 |
|
|
4,459 |
|
|
1,973 |
|
|
712 |
|
|
16 |
|
|
3,198 |
|
|
NM |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
rate swap fees |
|
2,870 |
|
|
2,881 |
|
|
2,343 |
|
|
(11 |
) |
|
— |
|
|
527 |
|
|
22 |
|
BOLI |
|
981 |
|
|
884 |
|
|
1,463 |
|
|
97 |
|
|
11 |
|
|
(482 |
) |
|
(33 |
) |
Administrative services |
|
1,115 |
|
|
1,151 |
|
|
1,101 |
|
|
(36 |
) |
|
(3 |
) |
|
14 |
|
|
1 |
|
Loss on
extinguishment of debt |
|
(717 |
) |
|
— |
|
|
— |
|
|
(717 |
) |
|
NM |
|
|
(717 |
) |
|
NM |
|
Miscellaneous |
|
8,742 |
|
|
8,653 |
|
|
5,294 |
|
|
89 |
|
|
1 |
|
|
3,448 |
|
|
65 |
|
Total
Other |
|
12,991 |
|
|
13,569 |
|
|
10,201 |
|
|
(578 |
) |
|
(4 |
) |
|
2,790 |
|
|
27 |
|
Total Non-Interest
Income |
|
$ |
85,275 |
|
|
$ |
86,604 |
|
|
$ |
65,090 |
|
|
$ |
(1,329 |
) |
|
(2 |
)% |
|
$ |
20,185 |
|
|
31 |
% |
NM - Not Meaningful
|
|
|
|
|
|
|
|
|
Years Ended |
|
|
|
|
|
|
December 31, |
|
December 31, |
|
$ |
|
% |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
Change |
|
Change |
Brokerage |
|
$ |
25,519 |
|
|
$ |
27,030 |
|
|
$ |
(1,511 |
) |
|
(6 |
)% |
Trust and asset
management |
|
50,499 |
|
|
46,422 |
|
|
4,077 |
|
|
9 |
|
Total
wealth management |
|
76,018 |
|
|
73,452 |
|
|
2,566 |
|
|
3 |
|
Mortgage banking |
|
128,743 |
|
|
115,011 |
|
|
13,732 |
|
|
12 |
|
Service charges on
deposit accounts |
|
31,210 |
|
|
27,384 |
|
|
3,826 |
|
|
14 |
|
Gains on investment
securities, net |
|
7,645 |
|
|
323 |
|
|
7,322 |
|
|
NM |
|
Fees from covered call
options |
|
11,470 |
|
|
15,364 |
|
|
(3,894 |
) |
|
(25 |
) |
Trading gains (losses),
net |
|
91 |
|
|
(247 |
) |
|
338 |
|
|
NM |
|
Operating lease income,
net |
|
16,441 |
|
|
2,728 |
|
|
13,713 |
|
|
NM |
|
Other: |
|
|
|
|
|
|
|
|
Interest
rate swap fees |
|
12,024 |
|
|
9,487 |
|
|
2,537 |
|
|
27 |
|
BOLI |
|
3,594 |
|
|
4,622 |
|
|
(1,028 |
) |
|
(22 |
) |
Administrative services |
|
4,409 |
|
|
4,252 |
|
|
157 |
|
|
4 |
|
Gain on
extinguishment of debt |
|
3,588 |
|
|
— |
|
|
3,588 |
|
|
NM |
|
Miscellaneous |
|
30,197 |
|
|
19,221 |
|
|
10,976 |
|
|
57 |
|
Total
Other |
|
53,812 |
|
|
37,582 |
|
|
16,230 |
|
|
43 |
|
Total Non-Interest
Income |
|
$ |
325,430 |
|
|
$ |
271,597 |
|
|
$ |
53,833 |
|
|
20 |
% |
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 third quarter of 2016 and
fourth 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 increase in mortgage banking revenue in the
current quarter as compared to the most recent quarter resulted
from a $1.2 million positive fair value adjustment on mortgage
servicing rights assets ("MSRs") during the period as a result of
lower projected prepayment speeds due to rising market interest
rates, partially offset by lower origination volumes. Mortgage
loans originated or purchased for sale decreased during the current
quarter, totaling $1.2 billion in the fourth quarter of 2016 as
compared to $1.3 billion in the third quarter of 2016 and $808.9
million in the fourth 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 |
|
Years Ended |
(Dollars in thousands) |
|
December 31,
2016 |
|
September 30,
2016 |
|
December 31,
2015 |
|
December 31,
2016 |
|
December 31,
2015 |
Retail
originations |
|
$ |
1,042,145 |
|
|
1,138,571 |
|
|
$ |
740,510 |
|
|
$ |
4,020,788 |
|
|
$ |
3,647,018 |
|
Correspondent
originations |
|
135,726 |
|
|
121,007 |
|
|
68,366 |
|
|
365,551 |
|
|
256,759 |
|
(A) Total
originations |
|
$ |
1,177,871 |
|
|
1,259,578 |
|
|
$ |
808,876 |
|
|
$ |
4,386,339 |
|
|
$ |
3,903,777 |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases as a
percentage of originations |
|
52 |
% |
|
57 |
% |
|
68 |
% |
|
58 |
% |
|
61 |
% |
Refinances as a
percentage of originations |
|
48 |
|
|
43 |
|
|
32 |
|
|
42 |
|
|
39 |
|
Total |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
(B) Production revenue
(1) |
|
$ |
28,320 |
|
|
$ |
32,889 |
|
|
$ |
22,043 |
|
|
$ |
113,360 |
|
|
$ |
112,683 |
|
Production margin (B /
A) |
|
2.40 |
% |
|
2.61 |
% |
|
2.73 |
% |
|
2.58 |
% |
|
2.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
Loans serviced for
others (C) |
|
$ |
1,784,760 |
|
|
$ |
1,508,469 |
|
|
$ |
939,819 |
|
|
|
|
|
MSRs, at fair value
(D) |
|
19,103 |
|
|
13,901 |
|
|
9,092 |
|
|
|
|
|
Percentage of mortgage
servicing rights to loans serviced for others (D/C) |
|
1.07 |
% |
|
0.92 |
% |
|
0.97 |
% |
|
|
|
|
(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 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 third
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 December 31, 2016, September 30, 2016
and December 31, 2015.
The increase in operating lease income in the
current quarter compared to the prior period quarters is primarily
related to growth in business from the Company's leasing divisions
during the fourth quarter of 2016.
The decrease in other non-interest income in the
current quarter as compared to the third quarter of 2016 is
primarily due to a loss on extinguishment of debt as a result of
the prepayment of $262 million of Federal Home Loan Bank advances
with a weighted-average interest rate of approximately 1.38%.
NON-INTEREST EXPENSE
The following table presents non-interest expense by category
for the periods present:
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
Q4 2016 compared to
Q3 2016 |
|
Q4 2016 compared to
Q4 2015 |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
53,108 |
|
|
$ |
54,309 |
|
|
$ |
50,982 |
|
|
$ |
(1,201 |
) |
|
(2 |
)% |
|
$ |
2,126 |
|
|
4 |
% |
Commissions and incentive compensation |
|
35,744 |
|
|
33,740 |
|
|
31,222 |
|
|
2,004 |
|
|
6 |
|
|
4,522 |
|
|
14 |
|
Benefits |
|
15,883 |
|
|
15,669 |
|
|
17,576 |
|
|
214 |
|
|
1 |
|
|
(1,693 |
) |
|
(10 |
) |
Total
salaries and employee benefits |
|
104,735 |
|
|
103,718 |
|
|
99,780 |
|
|
1,017 |
|
|
1 |
|
|
4,955 |
|
|
5 |
|
Equipment |
|
9,532 |
|
|
9,449 |
|
|
8,799 |
|
|
83 |
|
|
1 |
|
|
733 |
|
|
8 |
|
Operating lease
equipment depreciation |
|
4,219 |
|
|
3,605 |
|
|
1,202 |
|
|
614 |
|
|
17 |
|
|
3,017 |
|
|
NM |
|
Occupancy, net |
|
14,254 |
|
|
12,767 |
|
|
13,062 |
|
|
1,487 |
|
|
12 |
|
|
1,192 |
|
|
9 |
|
Data processing |
|
7,687 |
|
|
7,432 |
|
|
7,284 |
|
|
255 |
|
|
3 |
|
|
403 |
|
|
6 |
|
Advertising and
marketing |
|
6,691 |
|
|
7,365 |
|
|
5,373 |
|
|
(674 |
) |
|
(9 |
) |
|
1,318 |
|
|
25 |
|
Professional fees |
|
5,425 |
|
|
5,508 |
|
|
4,387 |
|
|
(83 |
) |
|
(2 |
) |
|
1,038 |
|
|
24 |
|
Amortization of other
intangible assets |
|
1,158 |
|
|
1,085 |
|
|
1,324 |
|
|
73 |
|
|
7 |
|
|
(166 |
) |
|
(13 |
) |
FDIC insurance |
|
4,726 |
|
|
3,686 |
|
|
3,317 |
|
|
1,040 |
|
|
28 |
|
|
1,409 |
|
|
42 |
|
OREO expense, net |
|
1,843 |
|
|
1,436 |
|
|
2,598 |
|
|
407 |
|
|
28 |
|
|
(755 |
) |
|
(29 |
) |
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
1,165 |
|
|
1,362 |
|
|
1,321 |
|
|
(197 |
) |
|
(14 |
) |
|
(156 |
) |
|
(12 |
) |
Postage |
|
1,955 |
|
|
1,889 |
|
|
1,892 |
|
|
66 |
|
|
3 |
|
|
63 |
|
|
3 |
|
Miscellaneous |
|
16,981 |
|
|
17,313 |
|
|
16,490 |
|
|
(332 |
) |
|
(2 |
) |
|
491 |
|
|
3 |
|
Total
other |
|
20,101 |
|
|
20,564 |
|
|
19,703 |
|
|
(463 |
) |
|
(2 |
) |
|
398 |
|
|
2 |
|
Total Non-Interest Expense |
|
$ |
180,371 |
|
|
$ |
176,615 |
|
|
$ |
166,829 |
|
|
$ |
3,756 |
|
|
2 |
% |
|
$ |
13,542 |
|
|
8 |
% |
NM - Not Meaningful
|
|
Years Ended |
|
|
|
|
|
|
December 31, |
|
December 31, |
|
$ |
|
% |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
Change |
|
Change |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
Salaries |
|
$ |
210,623 |
|
|
$ |
197,475 |
|
|
$ |
13,148 |
|
|
7 |
% |
Commissions and incentive compensation |
|
128,390 |
|
|
120,138 |
|
|
8,252 |
|
|
7 |
|
Benefits |
|
66,145 |
|
|
64,467 |
|
|
1,678 |
|
|
3 |
|
Total
salaries and employee benefits |
|
405,158 |
|
|
382,080 |
|
|
23,078 |
|
|
6 |
|
Equipment |
|
37,055 |
|
|
32,889 |
|
|
4,166 |
|
|
13 |
|
Operating lease
equipment depreciation |
|
13,259 |
|
|
1,749 |
|
|
11,510 |
|
|
NM |
|
Occupancy, net |
|
50,912 |
|
|
48,880 |
|
|
2,032 |
|
|
4 |
|
Data processing |
|
28,776 |
|
|
26,940 |
|
|
1,836 |
|
|
7 |
|
Advertising and
marketing |
|
24,776 |
|
|
21,924 |
|
|
2,852 |
|
|
13 |
|
Professional fees |
|
20,411 |
|
|
18,225 |
|
|
2,186 |
|
|
12 |
|
Amortization of other
intangible assets |
|
4,789 |
|
|
4,621 |
|
|
168 |
|
|
4 |
|
FDIC insurance |
|
16,065 |
|
|
12,386 |
|
|
3,679 |
|
|
30 |
|
OREO expense, net |
|
5,187 |
|
|
4,483 |
|
|
704 |
|
|
16 |
|
Other: |
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
5,161 |
|
|
5,474 |
|
|
(313 |
) |
|
(6 |
) |
Postage |
|
7,184 |
|
|
7,030 |
|
|
154 |
|
|
2 |
|
Miscellaneous |
|
62,952 |
|
|
61,738 |
|
|
1,214 |
|
|
2 |
|
Total
other |
|
75,297 |
|
|
74,242 |
|
|
1,055 |
|
|
1 |
|
Total Non-Interest Expense |
|
$ |
681,685 |
|
|
$ |
628,419 |
|
|
$ |
53,266 |
|
|
8 |
% |
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 third quarter of 2016
primarily as a result of higher incentive compensation on variable
pay based arrangements, partially offset by lower salaries.
Additionally salaries and employee benefits expense included
$832,000 of acquisition and non-operating compensation charges
consisting primarily of a $492,000 adjustment of pension
obligations assumed in previous acquisitions and $329,000 of
severance charges.
Occupancy expense increased in the current
quarter compared to the third quarter of 2016 due to increased net
rent expense on leased properties as well as higher maintenance and
repair costs. Occupancy expense includes depreciation on premises,
real estate taxes, utilities and maintenance of premises, as well
as net rent expense for lease premises.
Data processing expenses increased in the
current quarter compared to the third quarter of 2016 primarily due
to a $155,000 increase in acquisition-related charges related to
recent bank acquisitions.
FDIC insurance increased in the current quarter
compared to the third quarter of 2016 and fourth quarter of 2015
primarily as a result of increased assessment rates during the
fourth quarter of 2016 and the change in FDIC assessment
methodology.
ASSET QUALITY
Allowance for Credit Losses,
excluding covered loans
|
|
Three Months Ended |
|
Years Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Allowance for
loan losses at beginning of period |
|
$ |
117,693 |
|
|
$ |
114,356 |
|
|
$ |
102,996 |
|
|
$ |
105,400 |
|
|
$ |
91,705 |
|
Provision for
credit losses |
|
7,357 |
|
|
9,741 |
|
|
9,196 |
|
|
34,790 |
|
|
33,747 |
|
Other
adjustments |
|
33 |
|
|
(112 |
) |
|
(243 |
) |
|
(291 |
) |
|
(737 |
) |
Reclassification (to) from allowance for unfunded
lending-related commitments |
|
(25 |
) |
|
(579 |
) |
|
13 |
|
|
(725 |
) |
|
(138 |
) |
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
3,054 |
|
|
3,469 |
|
|
1,369 |
|
|
7,915 |
|
|
4,253 |
|
Commercial real estate |
|
375 |
|
|
382 |
|
|
2,734 |
|
|
1,930 |
|
|
6,543 |
|
Home
equity |
|
326 |
|
|
574 |
|
|
680 |
|
|
3,998 |
|
|
4,227 |
|
Residential real estate |
|
410 |
|
|
134 |
|
|
211 |
|
|
1,730 |
|
|
2,903 |
|
Premium
finance receivables - commercial |
|
1,843 |
|
|
1,959 |
|
|
2,676 |
|
|
8,193 |
|
|
7,060 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
205 |
|
|
389 |
|
|
179 |
|
|
925 |
|
|
521 |
|
Total
charge-offs |
|
6,213 |
|
|
6,907 |
|
|
7,849 |
|
|
24,691 |
|
|
25,507 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
668 |
|
|
176 |
|
|
315 |
|
|
1,594 |
|
|
1,432 |
|
Commercial real estate |
|
1,916 |
|
|
364 |
|
|
491 |
|
|
2,945 |
|
|
2,840 |
|
Home
equity |
|
300 |
|
|
65 |
|
|
183 |
|
|
484 |
|
|
312 |
|
Residential real estate |
|
21 |
|
|
61 |
|
|
55 |
|
|
225 |
|
|
283 |
|
Premium
finance receivables - commercial |
|
498 |
|
|
456 |
|
|
223 |
|
|
2,374 |
|
|
1,288 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
16 |
|
Consumer
and other |
|
43 |
|
|
72 |
|
|
20 |
|
|
186 |
|
|
159 |
|
Total
recoveries |
|
3,446 |
|
|
1,194 |
|
|
1,287 |
|
|
7,808 |
|
|
6,330 |
|
Net charge-offs |
|
(2,767 |
) |
|
(5,713 |
) |
|
(6,562 |
) |
|
(16,883 |
) |
|
(19,177 |
) |
Allowance for loan losses at period end |
|
$ |
122,291 |
|
|
$ |
117,693 |
|
|
$ |
105,400 |
|
|
$ |
122,291 |
|
|
$ |
105,400 |
|
Allowance for unfunded lending-related commitments at
period end |
|
1,673 |
|
|
1,648 |
|
|
949 |
|
|
1,673 |
|
|
949 |
|
Allowance for credit losses at period end |
|
$ |
123,964 |
|
|
$ |
119,341 |
|
|
$ |
106,349 |
|
|
$ |
123,964 |
|
|
$ |
106,349 |
|
Annualized net charge-offs by category as a percentage of
its own respective category’s average: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
0.16 |
% |
|
0.24 |
% |
|
0.09 |
% |
|
0.12 |
% |
|
0.07 |
% |
Commercial real estate |
|
(0.10 |
) |
|
0.00 |
|
|
0.16 |
|
|
(0.02 |
) |
|
0.07 |
|
Home
equity |
|
0.01 |
|
|
0.27 |
|
|
0.25 |
|
|
0.46 |
|
|
0.52 |
|
Residential real estate |
|
0.13 |
|
|
0.03 |
|
|
0.07 |
|
|
0.14 |
|
|
0.29 |
|
Premium
finance receivables - commercial |
|
0.22 |
|
|
0.24 |
|
|
0.41 |
|
|
0.24 |
|
|
0.24 |
|
Premium
finance receivables - life insurance |
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
Consumer
and other |
|
0.47 |
|
|
0.92 |
|
|
0.37 |
|
|
0.54 |
|
|
0.23 |
|
Total
loans, net of unearned income, excluding covered loans |
|
0.06 |
% |
|
0.12 |
% |
|
0.15 |
% |
|
0.09 |
% |
|
0.12 |
% |
Net charge-offs as a percentage of the provision for
credit losses |
|
37.61 |
% |
|
58.65 |
% |
|
71.35 |
% |
|
48.53 |
% |
|
56.83 |
% |
Loans at period-end, excluding covered loans |
|
$ |
19,703,172 |
|
|
$ |
19,101,261 |
|
|
$ |
17,118,117 |
|
|
|
|
|
Allowance for loan losses as a percentage of loans at
period end |
|
0.62 |
% |
|
0.62 |
% |
|
0.62 |
% |
|
|
|
|
Allowance for credit losses as a percentage of loans at
period end |
|
0.63 |
% |
|
0.62 |
% |
|
0.62 |
% |
|
|
|
|
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 fourth quarter of 2016 totaled 6
basis points on an annualized basis compared to 12 basis points on
an annualized basis in the third quarter of 2016 and 15 basis
points on an annualized basis in the fourth quarter of 2015.
Net charge-offs totaled $2.8 million in the fourth quarter of 2016,
a $2.9 million decrease from $5.7 million in the third quarter of
2016 and a $3.8 million decrease from $6.6 million in the fourth
quarter of 2015. The provision for credit losses, excluding the
provision for covered loan losses, totaled $7.4 million for the
fourth quarter of 2016 compared to $9.7 million for the third
quarter of 2016 and $9.2 million for the fourth quarter of
2015.
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 |
|
Years Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Provision for loan
losses |
|
$ |
7,332 |
|
|
$ |
9,162 |
|
|
$ |
9,209 |
|
|
$ |
34,065 |
|
|
$ |
33,609 |
|
Provision for unfunded
lending-related commitments |
|
25 |
|
|
579 |
|
|
(13 |
) |
|
725 |
|
|
138 |
|
Provision for covered
loan losses |
|
(7 |
) |
|
(170 |
) |
|
(137 |
) |
|
(706 |
) |
|
(805 |
) |
Provision for credit
losses |
|
$ |
7,350 |
|
|
$ |
9,571 |
|
|
$ |
9,059 |
|
|
$ |
34,084 |
|
|
$ |
32,942 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
|
|
|
|
2016 |
|
2016 |
|
2015 |
Allowance for loan
losses |
|
|
|
|
|
$ |
122,291 |
|
|
$ |
117,693 |
|
|
$ |
105,400 |
|
Allowance for unfunded
lending-related commitments |
|
|
|
|
|
1,673 |
|
|
1,648 |
|
|
949 |
|
Allowance for covered
loan losses |
|
|
|
|
|
1,322 |
|
|
1,422 |
|
|
3,026 |
|
Allowance for credit
losses |
|
|
|
|
|
$ |
125,286 |
|
|
$ |
120,763 |
|
|
$ |
109,375 |
|
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
December 31, 2016 and September 30, 2016.
|
|
As of December 31, 2016 |
|
|
Recorded |
|
Calculated |
|
As a percentage
of its own respective |
(Dollars in thousands) |
|
Investment |
|
Allowance |
|
category’s balance |
Commercial:(1) |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
3,234,629 |
|
|
$ |
27,112 |
|
|
0.84 |
% |
Asset-based lending |
|
867,697 |
|
|
6,859 |
|
|
0.79 |
|
Tax
exempt |
|
327,694 |
|
|
2,299 |
|
|
0.70 |
|
Leases |
|
294,124 |
|
|
858 |
|
|
0.29 |
|
Commercial real
estate:(1) |
|
|
|
|
|
|
Residential construction |
|
46,235 |
|
|
1,045 |
|
|
2.26 |
|
Commercial construction |
|
563,001 |
|
|
6,259 |
|
|
1.11 |
|
Land |
|
99,194 |
|
|
3,677 |
|
|
3.71 |
|
Office |
|
808,322 |
|
|
5,757 |
|
|
0.71 |
|
Industrial |
|
716,480 |
|
|
6,643 |
|
|
0.93 |
|
Retail |
|
855,787 |
|
|
5,928 |
|
|
0.69 |
|
Multi-family |
|
766,146 |
|
|
8,052 |
|
|
1.05 |
|
Mixed use
and other |
|
1,815,573 |
|
|
13,867 |
|
|
0.76 |
|
Home
equity(1) |
|
649,129 |
|
|
11,767 |
|
|
1.81 |
|
Residential real
estate(1) |
|
658,487 |
|
|
5,634 |
|
|
0.86 |
|
Total core loan portfolio |
|
$ |
11,702,498 |
|
|
$ |
105,757 |
|
|
0.90 |
% |
Commercial: |
|
|
|
|
|
|
Franchise |
|
$ |
565,588 |
|
|
$ |
4,744 |
|
|
0.84 |
% |
Mortgage
warehouse lines of credit |
|
204,225 |
|
|
1,548 |
|
|
0.76 |
|
Community
Advantage - homeowner associations |
|
145,717 |
|
|
365 |
|
|
0.25 |
|
Aircraft |
|
3,356 |
|
|
42 |
|
|
1.25 |
|
Purchased
non-covered commercial loans (2) |
|
362,392 |
|
|
666 |
|
|
0.18 |
|
Commercial real
estate: |
|
|
|
|
|
|
Purchased
non-covered commercial real estate (2) |
|
525,349 |
|
|
194 |
|
|
0.04 |
|
Purchased non-covered
home equity (2) |
|
76,664 |
|
|
7 |
|
|
0.01 |
|
Purchased non-covered
residential real estate (2) |
|
46,734 |
|
|
80 |
|
|
0.17 |
|
Premium finance
receivables |
|
|
|
|
|
|
U.S.
commercial insurance loans |
|
2,170,844 |
|
|
5,521 |
|
|
0.25 |
|
Canada
commercial insurance loans (2) |
|
307,737 |
|
|
604 |
|
|
0.20 |
|
Life
insurance loans (1) |
|
3,220,370 |
|
|
1,500 |
|
|
0.05 |
|
Purchased
life insurance loans (2) |
|
249,657 |
|
|
— |
|
|
— |
|
Consumer and other
(1) |
|
119,073 |
|
|
1,261 |
|
|
1.06 |
|
Purchased non-covered
consumer and other (2) |
|
2,968 |
|
|
2 |
|
|
0.07 |
|
Total consumer, niche and purchased loan
portfolio |
|
$ |
8,000,674 |
|
|
$ |
16,534 |
|
|
0.21 |
% |
Total loans, net of unearned income, excluding covered
loans |
|
$ |
19,703,172 |
|
|
$ |
122,291 |
|
|
0.62 |
% |
Non-accretable credit
discounts on purchased loans reported in accordance with ASC
310-30, excluding covered loans |
|
|
|
$ |
12,324 |
|
|
|
Total allowance for loan losses and non-accretable credit
discounts on purchased loans, excluding covered loans |
|
|
|
$ |
134,615 |
|
|
0.68 |
% |
(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 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 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 preceding tables as of December 31, 2016 and
September 30, 2016.
The increase in the allowance for loan losses to
core loans in the fourth quarter of 2016 compared to the third
quarter of 2016 was primarily attributable to $424.1 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 0.68% of the total loan portfolio
as of December 31, 2016 and 0.72% of the total loan portfolio
as of September 30, 2016.
The tables below show the aging of the Company’s
loan portfolio at December 31, 2016 and September 30,
2016:
|
|
|
|
90+ days |
|
60-89 |
|
30-59 |
|
|
|
|
As of December
31, 2016 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, industrial and other |
|
$ |
13,441 |
|
|
$ |
174 |
|
|
$ |
2,341 |
|
|
$ |
11,779 |
|
|
$ |
3,716,977 |
|
|
$ |
3,744,712 |
|
Franchise |
|
— |
|
|
— |
|
|
— |
|
|
493 |
|
|
869,228 |
|
|
869,721 |
|
Mortgage
warehouse lines of credit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
204,225 |
|
|
204,225 |
|
Asset-based lending |
|
1,924 |
|
|
— |
|
|
135 |
|
|
1,609 |
|
|
871,402 |
|
|
875,070 |
|
Leases |
|
510 |
|
|
— |
|
|
— |
|
|
1,331 |
|
|
293,073 |
|
|
294,914 |
|
PCI -
commercial (1) |
|
— |
|
|
1,689 |
|
|
100 |
|
|
2,428 |
|
|
12,563 |
|
|
16,780 |
|
Total
commercial |
|
15,875 |
|
|
1,863 |
|
|
2,576 |
|
|
17,640 |
|
|
5,967,468 |
|
|
6,005,422 |
|
Commercial real
estate |
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
2,408 |
|
|
— |
|
|
— |
|
|
1,824 |
|
|
606,007 |
|
|
610,239 |
|
Land |
|
394 |
|
|
— |
|
|
188 |
|
|
— |
|
|
104,219 |
|
|
104,801 |
|
Office |
|
4,337 |
|
|
— |
|
|
4,506 |
|
|
1,232 |
|
|
857,599 |
|
|
867,674 |
|
Industrial |
|
7,047 |
|
|
— |
|
|
4,516 |
|
|
2,436 |
|
|
756,602 |
|
|
770,601 |
|
Retail |
|
597 |
|
|
— |
|
|
760 |
|
|
3,364 |
|
|
907,872 |
|
|
912,593 |
|
Multi-family |
|
643 |
|
|
— |
|
|
322 |
|
|
1,347 |
|
|
805,312 |
|
|
807,624 |
|
Mixed use
and other |
|
6,498 |
|
|
— |
|
|
1,186 |
|
|
12,632 |
|
|
1,931,859 |
|
|
1,952,175 |
|
PCI -
commercial real estate (1) |
|
— |
|
|
16,188 |
|
|
3,775 |
|
|
8,888 |
|
|
141,529 |
|
|
170,380 |
|
Total
commercial real estate |
|
21,924 |
|
|
16,188 |
|
|
15,253 |
|
|
31,723 |
|
|
6,110,999 |
|
|
6,196,087 |
|
Home equity |
|
9,761 |
|
|
— |
|
|
1,630 |
|
|
6,515 |
|
|
707,887 |
|
|
725,793 |
|
Residential real
estate, including PCI |
|
12,749 |
|
|
1,309 |
|
|
936 |
|
|
8,271 |
|
|
681,956 |
|
|
705,221 |
|
Premium finance
receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
14,709 |
|
|
7,962 |
|
|
5,646 |
|
|
14,580 |
|
|
2,435,684 |
|
|
2,478,581 |
|
Life
insurance loans |
|
— |
|
|
3,717 |
|
|
17,514 |
|
|
16,204 |
|
|
3,182,935 |
|
|
3,220,370 |
|
PCI -
life insurance loans (1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
249,657 |
|
|
249,657 |
|
Consumer and other,
including PCI |
|
439 |
|
|
207 |
|
|
100 |
|
|
887 |
|
|
120,408 |
|
|
122,041 |
|
Total
loans, net of unearned income, excluding covered loans |
|
$ |
75,457 |
|
|
$ |
31,246 |
|
|
$ |
43,655 |
|
|
$ |
95,820 |
|
|
$ |
19,456,994 |
|
|
$ |
19,703,172 |
|
Covered loans |
|
2,121 |
|
|
2,492 |
|
|
225 |
|
|
1,553 |
|
|
51,754 |
|
|
58,145 |
|
Total
loans, net of unearned income |
|
$ |
77,578 |
|
|
$ |
33,738 |
|
|
$ |
43,880 |
|
|
$ |
97,373 |
|
|
$ |
19,508,748 |
|
|
$ |
19,761,317 |
|
As of December
31, 2016
Aging as a % of Loan Balance |
|
Nonaccrual |
|
90+ days
and still
accruing |
|
60-89
days past
due |
|
30-59
days past
due |
|
Current |
|
Total Loans |
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, industrial and other |
|
0.4 |
% |
|
— |
% |
|
0.1 |
% |
|
0.3 |
% |
|
99.2 |
% |
|
100.0 |
% |
Franchise |
|
— |
|
|
— |
|
|
— |
|
|
0.1 |
|
|
99.9 |
|
|
100.0 |
|
Mortgage
warehouse lines of credit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Asset-based lending |
|
0.2 |
|
|
— |
|
|
— |
|
|
0.2 |
|
|
99.6 |
|
|
100.0 |
|
Leases |
|
0.2 |
|
|
— |
|
|
— |
|
|
0.5 |
|
|
99.3 |
|
|
100.0 |
|
PCI -
commercial(1) |
|
— |
|
|
10.1 |
|
|
0.6 |
|
|
14.5 |
|
|
74.8 |
|
|
100.0 |
|
Total
commercial |
|
0.3 |
|
|
— |
|
|
— |
|
|
0.3 |
|
|
99.4 |
|
|
100.0 |
|
Commercial real
estate |
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
|
0.4 |
|
|
— |
|
|
— |
|
|
0.3 |
|
|
99.3 |
|
|
100.0 |
|
Land |
|
0.4 |
|
|
— |
|
|
0.2 |
|
|
— |
|
|
99.4 |
|
|
100.0 |
|
Office |
|
0.5 |
|
|
— |
|
|
0.5 |
|
|
0.1 |
|
|
98.9 |
|
|
100.0 |
|
Industrial |
|
0.9 |
|
|
— |
|
|
0.6 |
|
|
0.3 |
|
|
98.2 |
|
|
100.0 |
|
Retail |
|
0.1 |
|
|
— |
|
|
0.1 |
|
|
0.4 |
|
|
99.4 |
|
|
100.0 |
|
Multi-family |
|
0.1 |
|
|
— |
|
|
— |
|
|
0.2 |
|
|
99.7 |
|
|
100.0 |
|
Mixed use
and other |
|
0.3 |
|
|
— |
|
|
0.1 |
|
|
0.6 |
|
|
99.0 |
|
|
100.0 |
|
PCI -
commercial real estate (1) |
|
— |
|
|
9.5 |
|
|
2.2 |
|
|
5.2 |
|
|
83.1 |
|
|
100.0 |
|
Total
commercial real estate |
|
0.4 |
|
|
0.3 |
|
|
0.2 |
|
|
0.5 |
|
|
98.6 |
|
|
100.0 |
|
Home equity |
|
1.3 |
|
|
— |
|
|
0.2 |
|
|
0.9 |
|
|
97.6 |
|
|
100.0 |
|
Residential real
estate, including PCI |
|
1.8 |
|
|
0.2 |
|
|
0.1 |
|
|
1.2 |
|
|
96.7 |
|
|
100.0 |
|
Premium finance
receivables |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial insurance loans |
|
0.6 |
|
|
0.3 |
|
|
0.2 |
|
|
0.6 |
|
|
98.3 |
|
|
100.0 |
|
Life
insurance loans |
|
— |
|
|
0.1 |
|
|
0.5 |
|
|
0.5 |
|
|
98.9 |
|
|
100.0 |
|
PCI -
life insurance loans (1) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
100.0 |
|
|
100.0 |
|
Consumer and other,
including PCI |
|
0.4 |
|
|
0.2 |
|
|
0.1 |
|
|
0.7 |
|
|
98.6 |
|
|
100.0 |
|
Total
loans, net of unearned income, excluding covered loans |
|
0.4 |
% |
|
0.2 |
% |
|
0.2 |
% |
|
0.5 |
% |
|
98.7 |
% |
|
100.0 |
% |
Covered loans |
|
3.6 |
|
|
4.3 |
|
|
0.4 |
|
|
2.7 |
|
|
89.0 |
|
|
100.0 |
|
Total
loans, net of unearned income |
|
0.4 |
% |
|
0.2 |
% |
|
0.2 |
% |
|
0.5 |
% |
|
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 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.
As of December 31, 2016, $43.7 million of
all loans, excluding covered loans, or 0.2%, were 60 to 89 days
past due and $95.8 million, or 0.5%, were 30 to 59 days (or one
payment) past due. 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. 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 December 31, 2016 that are current with regard to the
contractual terms of the loan agreement represent 97.6% of the
total home equity portfolio. Residential real estate loans at
December 31, 2016 that are current with regards to the
contractual terms of the loan agreements comprise 96.7% 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.
|
|
December 31, |
|
September 30, |
|
December 31, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
Loans past due
greater than 90 days and still
accruing(1): |
|
|
|
|
|
|
Commercial |
|
$ |
174 |
|
|
$ |
— |
|
|
$ |
541 |
|
Commercial real estate |
|
— |
|
|
— |
|
|
— |
|
Home
equity |
|
— |
|
|
— |
|
|
— |
|
Residential real estate |
|
— |
|
|
— |
|
|
— |
|
Premium
finance receivables - commercial |
|
7,962 |
|
|
7,754 |
|
|
10,294 |
|
Premium
finance receivables - life insurance |
|
3,717 |
|
|
— |
|
|
— |
|
Consumer
and other |
|
144 |
|
|
60 |
|
|
150 |
|
Total
loans past due greater than 90 days and still accruing |
|
11,997 |
|
|
7,814 |
|
|
10,985 |
|
Non-accrual
loans(2): |
|
|
|
|
|
|
Commercial |
|
15,875 |
|
|
16,418 |
|
|
12,712 |
|
Commercial real estate |
|
21,924 |
|
|
22,625 |
|
|
26,645 |
|
Home
equity |
|
9,761 |
|
|
9,309 |
|
|
6,848 |
|
Residential real estate |
|
12,749 |
|
|
12,205 |
|
|
12,043 |
|
Premium
finance receivables - commercial |
|
14,709 |
|
|
14,214 |
|
|
14,561 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
439 |
|
|
543 |
|
|
263 |
|
Total
non-accrual loans |
|
75,457 |
|
|
75,314 |
|
|
73,072 |
|
Total
non-performing loans: |
|
|
|
|
|
|
Commercial |
|
16,049 |
|
|
16,418 |
|
|
13,253 |
|
Commercial real estate |
|
21,924 |
|
|
22,625 |
|
|
26,645 |
|
Home
equity |
|
9,761 |
|
|
9,309 |
|
|
6,848 |
|
Residential real estate |
|
12,749 |
|
|
12,205 |
|
|
12,043 |
|
Premium
finance receivables - commercial |
|
22,671 |
|
|
21,968 |
|
|
24,855 |
|
Premium
finance receivables - life insurance |
|
3,717 |
|
|
— |
|
|
— |
|
Consumer
and other |
|
583 |
|
|
603 |
|
|
413 |
|
Total
non-performing loans |
|
$ |
87,454 |
|
|
$ |
83,128 |
|
|
$ |
84,057 |
|
Other
real estate owned |
|
17,699 |
|
|
19,933 |
|
|
26,849 |
|
Other
real estate owned - from acquisitions |
|
22,583 |
|
|
15,117 |
|
|
17,096 |
|
Other
repossessed assets |
|
581 |
|
|
428 |
|
|
174 |
|
Total
non-performing assets |
|
$ |
128,317 |
|
|
$ |
118,606 |
|
|
$ |
128,176 |
|
TDRs
performing under the contractual terms of the loan agreement |
|
$ |
29,911 |
|
|
$ |
29,440 |
|
|
$ |
42,744 |
|
Total
non-performing loans by category as a percent of its own
respective category’s period-end balance: |
|
|
|
|
|
|
Commercial |
|
0.27 |
% |
|
0.28 |
% |
|
0.28 |
% |
Commercial real estate |
|
0.35 |
|
|
0.38 |
|
|
0.48 |
|
Home
equity |
|
1.34 |
|
|
1.25 |
|
|
0.87 |
|
Residential real estate |
|
1.81 |
|
|
1.84 |
|
|
1.98 |
|
Premium
finance receivables - commercial |
|
0.91 |
|
|
0.90 |
|
|
1.05 |
|
Premium
finance receivables - life insurance |
|
0.11 |
|
|
— |
|
|
— |
|
Consumer
and other |
|
0.48 |
|
|
0.50 |
|
|
0.28 |
|
Total
loans, net of unearned income |
|
0.44 |
% |
|
0.44 |
% |
|
0.49 |
% |
Total
non-performing assets as a percentage of total
assets |
|
0.50 |
% |
|
0.47 |
% |
|
0.56 |
% |
Allowance for
loan losses as a percentage of total non-performing
loans |
|
139.83 |
% |
|
141.58 |
% |
|
125.39 |
% |
(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
$11.8 million, $14.8 million, and $9.1 million as of
December 31, 2016, September 30, 2016, and
December 31, 2015, respectively.
The ratio of non-performing assets to total
assets was 0.50% as of December 31, 2016, compared to 0.47% at
September 30, 2016, and 0.56% at December 31, 2015.
Non-performing assets, excluding covered assets and non-covered PCI
loans, totaled $128.3 million at December 31, 2016, compared
to $118.6 million at September 30, 2016 and $128.2 million at
December 31, 2015. The increase in non-performing assets,
excluding covered assets and non-covered PCI loans, compared to
September 30, 2016 is primarily the result of $7.2 million of OREO
acquired through acquisitions and $4.2 million of OREO from
FDIC-covered transactions with expiring loss share agreements
during the fourth quarter of 2016. Non-performing loans, excluding
covered loans and non-covered PCI loans, totaled $87.5 million, or
0.44% of total loans, at December 31, 2016 compared to $83.1
million, or 0.44% of total loans, at September 30, 2016 and
$84.1 million, or 0.49% of total loans, at December 31, 2015.
OREO, excluding covered OREO, of $40.3 million at December 31,
2016 increased $5.2 million compared to $35.1 million at
September 30, 2016 and decreased $3.7 million compared to
$43.9 million at December 31, 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 |
|
Years Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Balance at beginning of
period |
|
$ |
83,128 |
|
|
$ |
88,119 |
|
|
$ |
85,976 |
|
|
$ |
84,057 |
|
|
$ |
78,677 |
|
Additions, net |
|
10,969 |
|
|
9,522 |
|
|
5,983 |
|
|
43,008 |
|
|
48,124 |
|
Return to
performing status |
|
(150 |
) |
|
(231 |
) |
|
(1,152 |
) |
|
(3,260 |
) |
|
(3,743 |
) |
Payments
received |
|
(6,623 |
) |
|
(5,235 |
) |
|
(6,387 |
) |
|
(19,976 |
) |
|
(22,804 |
) |
Transfer
to OREO and other repossessed assets |
|
(878 |
) |
|
(2,270 |
) |
|
(1,903 |
) |
|
(7,046 |
) |
|
(10,581 |
) |
Charge-offs |
|
(3,494 |
) |
|
(3,353 |
) |
|
(1,882 |
) |
|
(10,323 |
) |
|
(10,519 |
) |
Net
change for niche loans (1) |
|
4,502 |
|
|
(3,424 |
) |
|
3,422 |
|
|
994 |
|
|
4,903 |
|
Balance at end
of period |
|
$ |
87,454 |
|
|
$ |
83,128 |
|
|
$ |
84,057 |
|
|
$ |
87,454 |
|
|
$ |
84,057 |
|
(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:
|
|
December 31, |
|
September 30, |
|
December 31, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
Accruing
TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
4,643 |
|
|
$ |
2,285 |
|
|
$ |
5,613 |
|
Commercial real estate |
|
19,993 |
|
|
22,261 |
|
|
32,777 |
|
Residential real estate and other |
|
5,275 |
|
|
4,894 |
|
|
4,354 |
|
Total
accrual |
|
$ |
29,911 |
|
|
$ |
29,440 |
|
|
$ |
42,744 |
|
Non-accrual
TDRs: (1) |
|
|
|
|
|
|
Commercial |
|
$ |
1,487 |
|
|
$ |
2,134 |
|
|
$ |
134 |
|
Commercial real estate |
|
8,153 |
|
|
10,610 |
|
|
5,930 |
|
Residential real estate and other |
|
2,157 |
|
|
2,092 |
|
|
3,045 |
|
Total
non-accrual |
|
$ |
11,797 |
|
|
$ |
14,836 |
|
|
$ |
9,109 |
|
Total
TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
6,130 |
|
|
$ |
4,419 |
|
|
$ |
5,747 |
|
Commercial real estate |
|
28,146 |
|
|
32,871 |
|
|
38,707 |
|
Residential real estate and other |
|
7,432 |
|
|
6,986 |
|
|
7,399 |
|
Total
TDRs |
|
$ |
41,708 |
|
|
$ |
44,276 |
|
|
$ |
51,853 |
|
Weighted-average contractual interest rate of
TDRs |
|
4.33 |
% |
|
4.33 |
% |
|
4.13 |
% |
(1) Included in total non-performing
loans.
At December 31, 2016, the Company had $41.7
million in loans modified in TDRs. The $41.7 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
$44.3 million representing 89 credits at September, 2016 and
decreased from $51.9 million representing 102 credits at
December 31, 2015.
The table below presents a summary of TDRs as of
December 31, 2016 and December 31, 2015, and shows the
changes in the balance during the periods presented:
Three Months Ended December 31,
2016
(Dollars in thousands) |
|
Commercial |
|
Commercial
Real Estate |
|
Residential
Real Estate
and Other |
|
Total |
Balance at beginning of
period |
|
$ |
4,419 |
|
|
$ |
32,871 |
|
|
$ |
6,986 |
|
|
$ |
44,276 |
|
Additions during the
period |
|
2,949 |
|
|
— |
|
|
499 |
|
|
3,448 |
|
Reductions: |
|
|
|
|
|
|
|
|
Charge-offs |
|
(701 |
) |
|
(13 |
) |
|
— |
|
|
(714 |
) |
Transferred to OREO and other repossessed assets |
|
— |
|
|
(68 |
) |
|
— |
|
|
(68 |
) |
Removal
of TDR loan status (1) |
|
— |
|
|
(1,337 |
) |
|
— |
|
|
(1,337 |
) |
Payments
received, net |
|
(537 |
) |
|
(3,307 |
) |
|
(53 |
) |
|
(3,897 |
) |
Balance at
period end |
|
$ |
6,130 |
|
|
$ |
28,146 |
|
|
$ |
7,432 |
|
|
$ |
41,708 |
|
(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 December 31,
2015
(Dollars in thousands) |
|
Commercial |
|
Commercial
Real Estate |
|
Residential
Real Estate
and Other |
|
Total |
Balance at beginning of
period |
|
$ |
5,864 |
|
|
$ |
45,645 |
|
|
$ |
7,811 |
|
|
$ |
59,320 |
|
Additions during the
period |
|
— |
|
|
201 |
|
|
— |
|
|
201 |
|
Reductions: |
|
|
|
|
|
|
|
|
Charge-offs |
|
— |
|
|
(1,707 |
) |
|
(48 |
) |
|
(1,755 |
) |
Transferred to OREO and other repossessed assets |
|
— |
|
|
— |
|
|
(135 |
) |
|
(135 |
) |
Removal
of TDR loan status (1) |
|
(19 |
) |
|
(2,868 |
) |
|
- |
|
(2,887 |
) |
Payments
received, net |
|
(98 |
) |
|
(2,564 |
) |
|
(229 |
) |
|
(2,891 |
) |
Balance at
period end |
|
$ |
5,747 |
|
|
$ |
38,707 |
|
|
$ |
7,399 |
|
|
$ |
51,853 |
|
Year Ended
December 31, 2016
(Dollars in thousands) |
|
Commercial |
|
Commercial
Real Estate |
|
Residential
Real Estate
and Other |
|
Total |
Balance at beginning of
period |
|
$ |
5,747 |
|
|
$ |
38,707 |
|
|
$ |
7,399 |
|
|
$ |
51,853 |
|
Additions during the
period |
|
3,294 |
|
|
8,521 |
|
|
1,082 |
|
|
12,897 |
|
Reductions: |
|
|
|
|
|
|
|
|
Charge-offs |
|
(1,482 |
) |
|
(1,051 |
) |
|
(212 |
) |
|
(2,745 |
) |
Transferred to OREO and other repossessed assets |
|
— |
|
|
(1,433 |
) |
|
(535 |
) |
|
(1,968 |
) |
Removal
of TDR loan status (1) |
|
— |
|
|
(7,816 |
) |
|
— |
|
|
(7,816 |
) |
Payments
received, net |
|
(1,429 |
) |
|
(8,782 |
) |
|
(302 |
) |
|
(10,513 |
) |
Balance at
period end |
|
$ |
6,130 |
|
|
$ |
28,146 |
|
|
$ |
7,432 |
|
|
$ |
41,708 |
|
Year Ended December 31, 2015
(Dollars in thousands) |
|
Commercial |
|
Commercial
Real Estate |
|
Residential
Real Estate
and Other |
|
Total |
Balance at beginning of
period |
|
$ |
7,576 |
|
|
$ |
67,623 |
|
|
$ |
7,076 |
|
|
$ |
82,275 |
|
Additions during the
period |
|
— |
|
|
370 |
|
|
1,664 |
|
|
2,034 |
|
Reductions: |
|
|
|
|
|
|
|
|
Charge-offs |
|
(397 |
) |
|
(1,975 |
) |
|
(140 |
) |
|
(2,512 |
) |
Transferred to OREO and other repossessed assets |
|
(562 |
) |
|
(2,290 |
) |
|
(414 |
) |
|
(3,266 |
) |
Removal
of TDR loan status (1) |
|
(490 |
) |
|
(13,019 |
) |
|
— |
|
|
(13,509 |
) |
Payments
received, net |
|
(380 |
) |
|
(12,002 |
) |
|
(787 |
) |
|
(13,169 |
) |
Balance at
period end |
|
$ |
5,747 |
|
|
$ |
38,707 |
|
|
$ |
7,399 |
|
|
$ |
51,853 |
|
(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
December 31, 2016 and approximately $2.7 million of impairment
was present and appropriately reserved for through the Company’s
normal reserving methodology in the Company’s allowance for loan
losses. For TDRs in which impairment is calculated by the
present value of future cash flows, the Company records interest
income representing the decrease in impairment resulting from the
passage of time during the respective period, which differs from
interest income from contractually required interest on these
specific loans. For the three months ended December 31, 2016
and 2015, the Company recorded $98,000 and $188,000, respectively
in interest income representing this decrease in impairment. For
the years ended December 31, 2016 and 2015, the Company
recorded $421,000 and $573,000, 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
December 31, 2016, September 30, 2016 and
December 31, 2015, and shows the activity for the respective
period and the balance for each property type:
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
Balance at beginning of
period |
|
$ |
35,050 |
|
|
$ |
38,063 |
|
|
$ |
51,880 |
|
Disposals/resolved |
|
(5,850 |
) |
|
(5,967 |
) |
|
(9,156 |
) |
Transfers
in at fair value, less costs to sell |
|
667 |
|
|
3,958 |
|
|
2,345 |
|
Transfers
in from covered OREO subsequent to loss share expiration |
|
4,213 |
|
|
— |
|
|
69 |
|
Additions
from acquisition |
|
7,230 |
|
|
— |
|
|
— |
|
Fair
value adjustments |
|
(1,028 |
) |
|
(1,004 |
) |
|
(1,193 |
) |
Balance at end of
period |
|
$ |
40,282 |
|
|
$ |
35,050 |
|
|
$ |
43,945 |
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
December 31, |
|
September 30, |
|
December 31, |
Balance by
Property Type |
|
2016 |
|
2016 |
|
2015 |
Residential real
estate |
|
$ |
8,063 |
|
|
$ |
9,602 |
|
|
$ |
11,322 |
|
Residential real estate
development |
|
1,349 |
|
|
2,114 |
|
|
2,914 |
|
Commercial real
estate |
|
30,870 |
|
|
23,334 |
|
|
29,709 |
|
Total |
|
$ |
40,282 |
|
|
$ |
35,050 |
|
|
$ |
43,945 |
|
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.
|
|
December 31, |
|
September 30, |
|
December 31, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2015 |
Period End
Balances: |
|
|
|
|
|
|
Loans |
|
$ |
58,145 |
|
|
$ |
95,940 |
|
|
$ |
148,673 |
|
Other
real estate owned |
|
5,302 |
|
|
10,399 |
|
|
21,383 |
|
Other
assets |
|
— |
|
|
216 |
|
|
411 |
|
FDIC
indemnification liability |
|
(16,701 |
) |
|
(17,945 |
) |
|
(6,100 |
) |
Total net
covered assets |
|
$ |
46,746 |
|
|
$ |
88,610 |
|
|
$ |
164,367 |
|
Allowance for
Covered Loan Losses Rollforward: |
|
|
|
|
|
|
Balance
at beginning of quarter: |
|
$ |
1,422 |
|
|
$ |
2,412 |
|
|
$ |
2,918 |
|
Allowance
for covered loan losses transferred to allowance for loan losses
subsequent to loss share expiration |
|
(156 |
) |
|
— |
|
|
— |
|
Provision
for covered loan losses before benefit attributable to FDIC loss
share agreements |
|
(35 |
) |
|
(847 |
) |
|
(2,011 |
) |
Benefit
attributable to FDIC loss share agreements |
|
153 |
|
|
677 |
|
|
1,874 |
|
Net
provision for covered loan losses and transfer from allowance for
covered loan losses to allowance for loan losses |
|
(38 |
) |
|
(170 |
) |
|
(137 |
) |
Increase/decrease in FDIC indemnification liability/asset |
|
(153 |
) |
|
(677 |
) |
|
(1,874 |
) |
Loans
charged-off |
|
(119 |
) |
|
(918 |
) |
|
(163 |
) |
Recoveries of loans charged-off |
|
210 |
|
|
775 |
|
|
2,282 |
|
Net
recoveries (charge-offs) |
|
91 |
|
|
(143 |
) |
|
2,119 |
|
Balance
at end of quarter |
|
$ |
1,322 |
|
|
$ |
1,422 |
|
|
$ |
3,026 |
|
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 |
|
|
December 31, |
|
December 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
Accretable yield,
beginning balance |
|
$ |
52,977 |
|
|
$ |
65,207 |
|
Acquisitions |
|
1,380 |
|
|
— |
|
Accretable yield
amortized to interest income |
|
(6,113 |
) |
|
(5,756 |
) |
Accretable yield
amortized to indemnification asset/liability (1) |
|
(207 |
) |
|
(2,550 |
) |
Reclassification from
non-accretable difference(2) |
|
1,634 |
|
|
2,236 |
|
Increases (decreases)
in interest cash flows due to payments and changes in interest
rates |
|
(263 |
) |
|
4,765 |
|
Accretable yield,
ending balance (3) |
|
$ |
49,408 |
|
|
$ |
63,902 |
|
|
|
Years Ended |
|
|
December 31, |
|
December 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
Accretable yield,
beginning balance |
|
$ |
63,902 |
|
|
$ |
79,102 |
|
Acquisitions |
|
2,462 |
|
|
9,993 |
|
Accretable yield
amortized to interest income |
|
(23,218 |
) |
|
(24,115 |
) |
Accretable yield
amortized to indemnification asset/liability (1) |
|
(5,746 |
) |
|
(13,495 |
) |
Reclassification from
non-accretable difference(2) |
|
13,733 |
|
|
7,390 |
|
(Decreases) increases
in interest cash flows due to payments and changes in interest
rates |
|
(1,725 |
) |
|
5,027 |
|
Accretable yield,
ending balance (3) |
|
$ |
49,408 |
|
|
$ |
63,902 |
|
(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 December 31, 2016, the Company estimates that
the remaining accretable yield balance to be amortized to the
indemnification asset for the bank acquisitions is $1.1 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 $6.1 million and $5.8 million in the fourth
quarter of 2016 and 2015, respectively. For the years ended
December 31, 2016 and 2015, the Company recorded accretion to
interest income of $23.2 million and $24.1 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 November 18, 2016, the Company completed its
acquisition of FCFC. FCFC was the parent company of First Community
Bank. Through this transaction, the Company acquired First
Community Bank's two banking locations in Elgin, Illinois,
approximately $185 million in assets and approximately $150 million
in deposits.
On August 19, 2016, the Company, through its
wholly-owned subsidiary Lake Forest Bank & Trust Company,
completed its acquisition of approximately $561 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.
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;
- uncertainty regarding future legislative and regulatory actions
may be disruptive to our operations;
- 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 1:00
p.m. (CT) Thursday, January 19, 2017 regarding fourth quarter and
year-end 2016 results. Individuals interested in listening should
call (877) 363-5049 and enter Conference ID #47899456. A
simultaneous audio-only web cast and replay of the conference call
may be accessed via the Company’s website at (http://www.wintrust.com), Investor
Relations, Investor News and Events, Presentations &
Conference Calls. The text of the fourth quarter and year-end 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 |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Selected
Financial Condition Data (at end of period): |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
25,668,553 |
|
|
$ |
25,321,759 |
|
|
$ |
24,420,616 |
|
|
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
Total loans, excluding
loans held-for-sale and covered loans |
|
19,703,172 |
|
|
19,101,261 |
|
|
18,174,655 |
|
|
17,446,413 |
|
|
17,118,117 |
|
Total deposits |
|
21,658,632 |
|
|
21,147,655 |
|
|
20,041,750 |
|
|
19,217,071 |
|
|
18,639,634 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
268,566 |
|
Total shareholders’
equity |
|
2,695,617 |
|
|
2,674,474 |
|
|
2,623,595 |
|
|
2,418,442 |
|
|
2,352,274 |
|
Selected
Statements of Income Data: |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
190,778 |
|
|
184,636 |
|
|
175,270 |
|
|
171,509 |
|
|
167,206 |
|
Net revenue
(1) |
|
276,053 |
|
|
271,240 |
|
|
260,069 |
|
|
240,261 |
|
|
232,296 |
|
Net income |
|
54,608 |
|
|
53,115 |
|
|
50,041 |
|
|
49,111 |
|
|
35,512 |
|
Net income per common
share – Basic |
|
$ |
0.98 |
|
|
$ |
0.96 |
|
|
$ |
0.94 |
|
|
$ |
0.94 |
|
|
$ |
0.66 |
|
Net income per common
share – Diluted |
|
$ |
0.94 |
|
|
$ |
0.92 |
|
|
$ |
0.90 |
|
|
$ |
0.90 |
|
|
$ |
0.64 |
|
Selected
Financial Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
3.21 |
% |
|
3.21 |
% |
|
3.24 |
% |
|
3.29 |
% |
|
3.26 |
% |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
|
3.23 |
% |
|
3.24 |
% |
|
3.27 |
% |
|
3.32 |
% |
|
3.29 |
% |
Non-interest income to
average assets |
|
1.32 |
% |
|
1.38 |
% |
|
1.44 |
% |
|
1.21 |
% |
|
1.16 |
% |
Non-interest expense to
average assets |
|
2.80 |
% |
|
2.82 |
% |
|
2.89 |
% |
|
2.70 |
% |
|
2.98 |
% |
Net overhead ratio
(3) |
|
1.48 |
% |
|
1.44 |
% |
|
1.46 |
% |
|
1.49 |
% |
|
1.82 |
% |
Return on average
assets |
|
0.85 |
% |
|
0.85 |
% |
|
0.85 |
% |
|
0.86 |
% |
|
0.63 |
% |
Return on average
common equity |
|
8.32 |
% |
|
8.20 |
% |
|
8.43 |
% |
|
8.55 |
% |
|
6.03 |
% |
Return on average
tangible common equity (non-GAAP) (2) |
|
10.68 |
% |
|
10.55 |
% |
|
11.12 |
% |
|
11.33 |
% |
|
8.12 |
% |
Average total
assets |
|
$ |
25,611,060 |
|
|
$ |
24,879,252 |
|
|
$ |
23,754,755 |
|
|
$ |
22,902,913 |
|
|
$ |
22,225,112 |
|
Average total
shareholders’ equity |
|
2,689,876 |
|
|
2,651,684 |
|
|
2,465,732 |
|
|
2,389,770 |
|
|
2,347,545 |
|
Average loans to
average deposits ratio (excluding loans held-for-sale, excluding
covered loans) |
|
89.6 |
% |
|
89.8 |
% |
|
92.4 |
% |
|
92.2 |
% |
|
90.2 |
% |
Average loans to
average deposits ratio (excluding loans held-for-sale, including
covered loans) |
|
89.9 |
|
|
90.3 |
|
|
92.9 |
|
|
93.0 |
|
|
91.0 |
|
Common Share Data
at end of period: |
|
|
|
|
|
|
|
|
|
|
Market price per common
share |
|
$ |
72.57 |
|
|
$ |
55.57 |
|
|
$ |
51.00 |
|
|
$ |
44.34 |
|
|
$ |
48.52 |
|
Book value per common
share (2) |
|
$ |
47.12 |
|
|
$ |
46.86 |
|
|
$ |
45.96 |
|
|
$ |
44.67 |
|
|
$ |
43.42 |
|
Tangible common book
value per share (2) |
|
$ |
37.08 |
|
|
$ |
37.06 |
|
|
$ |
36.12 |
|
|
$ |
34.20 |
|
|
$ |
33.17 |
|
Common shares
outstanding |
|
51,880,540 |
|
|
51,714,683 |
|
|
51,619,155 |
|
|
48,518,998 |
|
|
48,383,279 |
|
Other Data at end
of period:(6) |
|
|
|
|
|
|
|
|
|
|
Leverage
Ratio(4) |
|
8.9 |
% |
|
9.0 |
% |
|
9.2 |
% |
|
8.7 |
% |
|
9.1 |
% |
Tier 1 Capital to
risk-weighted assets (4) |
|
9.7 |
% |
|
9.8 |
% |
|
10.1 |
% |
|
9.6 |
% |
|
10.0 |
% |
Common equity Tier 1
capital to risk-weighted assets (4) |
|
8.6 |
% |
|
8.7 |
% |
|
8.9 |
% |
|
8.4 |
% |
|
8.4 |
% |
Total capital to
risk-weighted assets (4) |
|
11.9 |
% |
|
12.1 |
% |
|
12.4 |
% |
|
12.1 |
% |
|
12.2 |
% |
Allowance for credit
losses (5) |
|
$ |
123,964 |
|
|
$ |
119,341 |
|
|
$ |
115,426 |
|
|
$ |
111,201 |
|
|
$ |
106,349 |
|
Non-performing
loans |
|
87,454 |
|
|
83,128 |
|
|
88,119 |
|
|
89,499 |
|
|
84,057 |
|
Allowance for credit
losses to total loans (5) |
|
0.63 |
% |
|
0.62 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.62 |
% |
Non-performing loans to
total loans |
|
0.44 |
% |
|
0.44 |
% |
|
0.48 |
% |
|
0.51 |
% |
|
0.49 |
% |
Number of: |
|
|
|
|
|
|
|
|
|
|
Bank
subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
Banking
offices |
|
155 |
|
|
152 |
|
|
153 |
|
|
153 |
|
|
152 |
|
(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) |
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(In thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
267,194 |
|
|
$ |
242,825 |
|
|
$ |
267,551 |
|
|
$ |
208,480 |
|
|
$ |
271,454 |
|
Federal funds sold and
securities purchased under resale agreements |
|
2,851 |
|
|
4,122 |
|
|
4,024 |
|
|
3,820 |
|
|
4,341 |
|
Interest bearing
deposits with banks |
|
980,457 |
|
|
816,104 |
|
|
693,269 |
|
|
817,013 |
|
|
607,782 |
|
Available-for-sale
securities, at fair value |
|
1,724,667 |
|
|
1,650,096 |
|
|
637,663 |
|
|
770,983 |
|
|
1,716,388 |
|
Held-to-maturity
securities, at amortized cost |
|
635,705 |
|
|
932,767 |
|
|
992,211 |
|
|
911,715 |
|
|
884,826 |
|
Trading account
securities |
|
1,989 |
|
|
1,092 |
|
|
3,613 |
|
|
2,116 |
|
|
448 |
|
Federal Home Loan Bank
and Federal Reserve Bank stock |
|
133,494 |
|
|
129,630 |
|
|
121,319 |
|
|
113,222 |
|
|
101,581 |
|
Brokerage customer
receivables |
|
25,181 |
|
|
25,511 |
|
|
26,866 |
|
|
28,266 |
|
|
27,631 |
|
Mortgage loans
held-for-sale |
|
418,374 |
|
|
559,634 |
|
|
554,256 |
|
|
314,554 |
|
|
388,038 |
|
Loans, net of unearned
income, excluding covered loans |
|
19,703,172 |
|
|
19,101,261 |
|
|
18,174,655 |
|
|
17,446,413 |
|
|
17,118,117 |
|
Covered loans |
|
58,145 |
|
|
95,940 |
|
|
105,248 |
|
|
138,848 |
|
|
148,673 |
|
Total
loans |
|
19,761,317 |
|
|
19,197,201 |
|
|
18,279,903 |
|
|
17,585,261 |
|
|
17,266,790 |
|
Allowance
for loan losses |
|
(122,291 |
) |
|
(117,693 |
) |
|
(114,356 |
) |
|
(110,171 |
) |
|
(105,400 |
) |
Allowance
for covered loan losses |
|
(1,322 |
) |
|
(1,422 |
) |
|
(2,412 |
) |
|
(2,507 |
) |
|
(3,026 |
) |
Net
loans |
|
19,637,704 |
|
|
19,078,086 |
|
|
18,163,135 |
|
|
17,472,583 |
|
|
17,158,364 |
|
Premises and equipment,
net |
|
597,301 |
|
|
597,263 |
|
|
595,792 |
|
|
591,608 |
|
|
592,256 |
|
Lease investments,
net |
|
129,402 |
|
|
116,355 |
|
|
103,749 |
|
|
89,337 |
|
|
63,170 |
|
Accrued interest
receivable and other assets |
|
593,796 |
|
|
660,923 |
|
|
670,014 |
|
|
647,853 |
|
|
597,099 |
|
Trade date securities
receivable |
|
— |
|
|
677 |
|
|
1,079,238 |
|
|
1,008,613 |
|
|
— |
|
Goodwill |
|
498,587 |
|
|
485,938 |
|
|
486,095 |
|
|
484,280 |
|
|
471,761 |
|
Other intangible
assets |
|
21,851 |
|
|
20,736 |
|
|
21,821 |
|
|
23,725 |
|
|
24,209 |
|
Total assets |
|
$ |
25,668,553 |
|
|
$ |
25,321,759 |
|
|
$ |
24,420,616 |
|
|
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,927,377 |
|
|
$ |
5,711,042 |
|
|
$ |
5,367,672 |
|
|
$ |
5,205,410 |
|
|
$ |
4,836,420 |
|
Interest
bearing |
|
15,731,255 |
|
|
15,436,613 |
|
|
14,674,078 |
|
|
14,011,661 |
|
|
13,803,214 |
|
Total
deposits |
|
21,658,632 |
|
|
21,147,655 |
|
|
20,041,750 |
|
|
19,217,071 |
|
|
18,639,634 |
|
Federal Home Loan Bank
advances |
|
153,831 |
|
|
419,632 |
|
|
588,055 |
|
|
799,482 |
|
|
853,431 |
|
Other borrowings |
|
262,486 |
|
|
241,366 |
|
|
252,611 |
|
|
253,126 |
|
|
265,785 |
|
Subordinated notes |
|
138,971 |
|
|
138,943 |
|
|
138,915 |
|
|
138,888 |
|
|
138,861 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
268,566 |
|
Trade date securities
payable |
|
— |
|
|
— |
|
|
40,000 |
|
|
— |
|
|
538 |
|
Accrued interest
payable and other liabilities |
|
505,450 |
|
|
446,123 |
|
|
482,124 |
|
|
407,593 |
|
|
390,259 |
|
Total
liabilities |
|
22,972,936 |
|
|
22,647,285 |
|
|
21,797,021 |
|
|
21,069,726 |
|
|
20,557,074 |
|
Shareholders’
Equity: |
|
|
|
|
|
|
|
|
|
|
Preferred
stock |
|
251,257 |
|
|
251,257 |
|
|
251,257 |
|
|
251,257 |
|
|
251,287 |
|
Common
stock |
|
51,978 |
|
|
51,811 |
|
|
51,708 |
|
|
48,608 |
|
|
48,469 |
|
Surplus |
|
1,365,781 |
|
|
1,356,759 |
|
|
1,350,751 |
|
|
1,194,750 |
|
|
1,190,988 |
|
Treasury
stock |
|
(4,589 |
) |
|
(4,522 |
) |
|
(4,145 |
) |
|
(4,145 |
) |
|
(3,973 |
) |
Retained
earnings |
|
1,096,518 |
|
|
1,051,748 |
|
|
1,008,464 |
|
|
967,882 |
|
|
928,211 |
|
Accumulated other comprehensive loss |
|
(65,328 |
) |
|
(32,579 |
) |
|
(34,440 |
) |
|
(39,910 |
) |
|
(62,708 |
) |
Total
shareholders’ equity |
|
2,695,617 |
|
|
2,674,474 |
|
|
2,623,595 |
|
|
2,418,442 |
|
|
2,352,274 |
|
Total liabilities and shareholders’ equity |
|
$ |
25,668,553 |
|
|
$ |
25,321,759 |
|
|
$ |
24,420,616 |
|
|
$ |
23,488,168 |
|
|
$ |
22,909,348 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Consolidated Statements of Income (Unaudited) - 5 Quarter
Trends
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(In thousands, except per share
data) |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Interest
income |
|
|
|
|
|
|
|
|
|
|
Interest
and fees on loans |
|
$ |
199,155 |
|
|
$ |
190,189 |
|
|
$ |
178,530 |
|
|
$ |
173,127 |
|
|
$ |
169,501 |
|
Interest
bearing deposits with banks |
|
1,541 |
|
|
1,156 |
|
|
793 |
|
|
746 |
|
|
493 |
|
Federal
funds sold and securities purchased under resale agreements |
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
— |
|
Investment securities |
|
12,954 |
|
|
15,496 |
|
|
16,398 |
|
|
17,190 |
|
|
16,405 |
|
Trading
account securities |
|
32 |
|
|
18 |
|
|
14 |
|
|
11 |
|
|
25 |
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
|
1,144 |
|
|
1,094 |
|
|
1,112 |
|
|
937 |
|
|
857 |
|
Brokerage
customer receivables |
|
186 |
|
|
195 |
|
|
216 |
|
|
219 |
|
|
206 |
|
Total
interest income |
|
215,013 |
|
|
208,149 |
|
|
197,064 |
|
|
192,231 |
|
|
187,487 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
Interest
on deposits |
|
16,413 |
|
|
15,621 |
|
|
13,594 |
|
|
12,781 |
|
|
12,617 |
|
Interest
on Federal Home Loan Bank advances |
|
2,439 |
|
|
2,577 |
|
|
2,984 |
|
|
2,886 |
|
|
2,684 |
|
Interest
on other borrowings |
|
1,074 |
|
|
1,137 |
|
|
1,086 |
|
|
1,058 |
|
|
1,007 |
|
Interest
on subordinated notes |
|
1,779 |
|
|
1,778 |
|
|
1,777 |
|
|
1,777 |
|
|
1,777 |
|
Interest
on junior subordinated debentures |
|
2,530 |
|
|
2,400 |
|
|
2,353 |
|
|
2,220 |
|
|
2,196 |
|
Total
interest expense |
|
24,235 |
|
|
23,513 |
|
|
21,794 |
|
|
20,722 |
|
|
20,281 |
|
Net interest
income |
|
190,778 |
|
|
184,636 |
|
|
175,270 |
|
|
171,509 |
|
|
167,206 |
|
Provision for credit
losses |
|
7,350 |
|
|
9,571 |
|
|
9,129 |
|
|
8,034 |
|
|
9,059 |
|
Net interest income
after provision for credit losses |
|
183,428 |
|
|
175,065 |
|
|
166,141 |
|
|
163,475 |
|
|
158,147 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
|
Wealth
management |
|
19,512 |
|
|
19,334 |
|
|
18,852 |
|
|
18,320 |
|
|
18,634 |
|
Mortgage
banking |
|
35,489 |
|
|
34,712 |
|
|
36,807 |
|
|
21,735 |
|
|
23,317 |
|
Service
charges on deposit accounts |
|
8,054 |
|
|
8,024 |
|
|
7,726 |
|
|
7,406 |
|
|
7,210 |
|
Gains
(losses) on investment securities, net |
|
1,575 |
|
|
3,305 |
|
|
1,440 |
|
|
1,325 |
|
|
(79 |
) |
Fees from
covered call options |
|
1,476 |
|
|
3,633 |
|
|
4,649 |
|
|
1,712 |
|
|
3,629 |
|
Trading
gains (losses), net |
|
1,007 |
|
|
(432 |
) |
|
(316 |
) |
|
(168 |
) |
|
205 |
|
Operating
lease income, net |
|
5,171 |
|
|
4,459 |
|
|
4,005 |
|
|
2,806 |
|
|
1,973 |
|
Other |
|
12,991 |
|
|
13,569 |
|
|
11,636 |
|
|
15,616 |
|
|
10,201 |
|
Total
non-interest income |
|
85,275 |
|
|
86,604 |
|
|
84,799 |
|
|
68,752 |
|
|
65,090 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
104,735 |
|
|
103,718 |
|
|
100,894 |
|
|
95,811 |
|
|
99,780 |
|
Equipment |
|
9,532 |
|
|
9,449 |
|
|
9,307 |
|
|
8,767 |
|
|
8,799 |
|
Operating
lease equipment depreciation |
|
4,219 |
|
|
3,605 |
|
|
3,385 |
|
|
2,050 |
|
|
1,202 |
|
Occupancy, net |
|
14,254 |
|
|
12,767 |
|
|
11,943 |
|
|
11,948 |
|
|
13,062 |
|
Data
processing |
|
7,687 |
|
|
7,432 |
|
|
7,138 |
|
|
6,519 |
|
|
7,284 |
|
Advertising and marketing |
|
6,691 |
|
|
7,365 |
|
|
6,941 |
|
|
3,779 |
|
|
5,373 |
|
Professional fees |
|
5,425 |
|
|
5,508 |
|
|
5,419 |
|
|
4,059 |
|
|
4,387 |
|
Amortization of other intangible assets |
|
1,158 |
|
|
1,085 |
|
|
1,248 |
|
|
1,298 |
|
|
1,324 |
|
FDIC
insurance |
|
4,726 |
|
|
3,686 |
|
|
4,040 |
|
|
3,613 |
|
|
3,317 |
|
OREO
expense, net |
|
1,843 |
|
|
1,436 |
|
|
1,348 |
|
|
560 |
|
|
2,598 |
|
Other |
|
20,101 |
|
|
20,564 |
|
|
19,306 |
|
|
15,326 |
|
|
19,703 |
|
Total
non-interest expense |
|
180,371 |
|
|
176,615 |
|
|
170,969 |
|
|
153,730 |
|
|
166,829 |
|
Income before
taxes |
|
88,332 |
|
|
85,054 |
|
|
79,971 |
|
|
78,497 |
|
|
56,408 |
|
Income tax expense |
|
33,724 |
|
|
31,939 |
|
|
29,930 |
|
|
29,386 |
|
|
20,896 |
|
Net
income |
|
$ |
54,608 |
|
|
$ |
53,115 |
|
|
$ |
50,041 |
|
|
$ |
49,111 |
|
|
$ |
35,512 |
|
Preferred stock
dividends and discount accretion |
|
3,629 |
|
|
3,628 |
|
|
3,628 |
|
|
3,628 |
|
|
3,629 |
|
Net income
applicable to common shares |
|
$ |
50,979 |
|
|
$ |
49,487 |
|
|
$ |
46,413 |
|
|
$ |
45,483 |
|
|
$ |
31,883 |
|
Net income per
common share - Basic |
|
$ |
0.98 |
|
|
$ |
0.96 |
|
|
$ |
0.94 |
|
|
$ |
0.94 |
|
|
$ |
0.66 |
|
Net income per
common share - Diluted |
|
$ |
0.94 |
|
|
$ |
0.92 |
|
|
$ |
0.90 |
|
|
$ |
0.90 |
|
|
$ |
0.64 |
|
Cash dividends
declared per common share |
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.11 |
|
Weighted average common
shares outstanding |
|
51,812 |
|
|
51,679 |
|
|
49,140 |
|
|
48,448 |
|
|
48,371 |
|
Dilutive potential
common shares |
|
4,152 |
|
|
4,047 |
|
|
3,965 |
|
|
3,820 |
|
|
4,005 |
|
Average common shares
and dilutive common shares |
|
55,964 |
|
|
55,726 |
|
|
53,105 |
|
|
52,268 |
|
|
52,376 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Period End Loan Balances - 5 Quarter Trends
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
6,005,422 |
|
|
$ |
5,951,544 |
|
|
$ |
5,144,533 |
|
|
$ |
4,890,246 |
|
|
$ |
4,713,909 |
|
Commercial real estate |
|
6,196,087 |
|
|
5,908,684 |
|
|
5,848,334 |
|
|
5,737,959 |
|
|
5,529,289 |
|
Home
equity |
|
725,793 |
|
|
742,868 |
|
|
760,904 |
|
|
774,342 |
|
|
784,675 |
|
Residential real estate |
|
705,221 |
|
|
663,598 |
|
|
653,664 |
|
|
626,043 |
|
|
607,451 |
|
Premium
finance receivables - commercial |
|
2,478,581 |
|
|
2,430,233 |
|
|
2,478,280 |
|
|
2,320,987 |
|
|
2,374,921 |
|
Premium
finance receivables - life insurance |
|
3,470,027 |
|
|
3,283,359 |
|
|
3,161,562 |
|
|
2,976,934 |
|
|
2,961,496 |
|
Consumer
and other |
|
122,041 |
|
|
120,975 |
|
|
127,378 |
|
|
119,902 |
|
|
146,376 |
|
Total
loans, net of unearned income, excluding covered loans |
|
$ |
19,703,172 |
|
|
$ |
19,101,261 |
|
|
$ |
18,174,655 |
|
|
$ |
17,446,413 |
|
|
$ |
17,118,117 |
|
Covered
loans |
|
58,145 |
|
|
95,940 |
|
|
105,248 |
|
|
138,848 |
|
|
148,673 |
|
Total
loans, net of unearned income |
|
$ |
19,761,317 |
|
|
$ |
19,197,201 |
|
|
$ |
18,279,903 |
|
|
$ |
17,585,261 |
|
|
$ |
17,266,790 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
30 |
% |
|
31 |
% |
|
28 |
% |
|
28 |
% |
|
27 |
% |
Commercial real estate |
|
31 |
|
|
31 |
|
|
31 |
|
|
32 |
|
|
32 |
|
Home
equity |
|
4 |
|
|
4 |
|
|
4 |
|
|
4 |
|
|
5 |
|
Residential real estate |
|
4 |
|
|
3 |
|
|
4 |
|
|
4 |
|
|
3 |
|
Premium
finance receivables - commercial |
|
12 |
|
|
13 |
|
|
14 |
|
|
13 |
|
|
14 |
|
Premium
finance receivables - life insurance |
|
18 |
|
|
17 |
|
|
17 |
|
|
17 |
|
|
17 |
|
Consumer
and other |
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
Total
loans, net of unearned income, excluding covered loans |
|
100 |
% |
|
100 |
% |
|
99 |
% |
|
99 |
% |
|
99 |
% |
Covered
loans |
|
— |
|
|
— |
|
|
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
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
5,927,377 |
|
|
$ |
5,711,042 |
|
|
$ |
5,367,672 |
|
|
$ |
5,205,410 |
|
|
$ |
4,836,420 |
|
NOW and
interest bearing demand deposits |
|
2,624,442 |
|
|
2,552,611 |
|
|
2,450,710 |
|
|
2,369,474 |
|
|
2,390,217 |
|
Wealth
management deposits (1) |
|
2,209,617 |
|
|
2,283,233 |
|
|
1,904,121 |
|
|
1,761,710 |
|
|
1,643,653 |
|
Money
market |
|
4,441,811 |
|
|
4,421,631 |
|
|
4,384,134 |
|
|
4,157,083 |
|
|
4,041,300 |
|
Savings |
|
2,180,482 |
|
|
1,977,661 |
|
|
1,851,863 |
|
|
1,766,552 |
|
|
1,723,367 |
|
Time
certificates of deposit |
|
4,274,903 |
|
|
4,201,477 |
|
|
4,083,250 |
|
|
3,956,842 |
|
|
4,004,677 |
|
Total
deposits |
|
$ |
21,658,632 |
|
|
$ |
21,147,655 |
|
|
$ |
20,041,750 |
|
|
$ |
19,217,071 |
|
|
$ |
18,639,634 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
27 |
% |
|
27 |
% |
|
27 |
% |
|
27 |
% |
|
26 |
% |
NOW and
interest bearing demand deposits |
|
12 |
|
|
12 |
|
|
12 |
|
|
12 |
|
|
13 |
|
Wealth
management deposits (1) |
|
10 |
|
|
11 |
|
|
10 |
|
|
9 |
|
|
9 |
|
Money
market |
|
21 |
|
|
21 |
|
|
22 |
|
|
22 |
|
|
22 |
|
Savings |
|
10 |
|
|
9 |
|
|
9 |
|
|
9 |
|
|
9 |
|
Time
certificates of deposit |
|
20 |
|
|
20 |
|
|
20 |
|
|
21 |
|
|
21 |
|
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 |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Net interest income -
FTE |
|
$ |
192,276 |
|
|
$ |
186,192 |
|
|
$ |
176,733 |
|
|
$ |
172,944 |
|
|
$ |
168,515 |
|
Call option income |
|
1,476 |
|
|
3,633 |
|
|
4,649 |
|
|
1,712 |
|
|
3,629 |
|
Net interest income
including call option income |
|
$ |
193,752 |
|
|
$ |
189,825 |
|
|
$ |
181,382 |
|
|
$ |
174,656 |
|
|
$ |
172,144 |
|
Yield on earning
assets |
|
3.64 |
% |
|
3.65 |
% |
|
3.67 |
% |
|
3.71 |
% |
|
3.69 |
% |
Rate on
interest-bearing liabilities |
|
0.58 |
|
|
0.58 |
|
|
0.56 |
|
|
0.55 |
|
|
0.55 |
|
Rate spread |
|
3.06 |
% |
|
3.07 |
% |
|
3.11 |
% |
|
3.16 |
% |
|
3.14 |
% |
Less: Fully
tax-equivalent adjustment |
|
(0.02 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
Net free funds
contribution |
|
0.17 |
|
|
0.17 |
|
|
0.16 |
|
|
0.16 |
|
|
0.15 |
|
Net interest margin
(GAAP-derived) |
|
3.21 |
% |
|
3.21 |
% |
|
3.24 |
% |
|
3.29 |
% |
|
3.26 |
% |
Fully tax-equivalent
adjustment |
|
0.02 |
|
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
Net interest margin -
FTE |
|
3.23 |
% |
|
3.24 |
% |
|
3.27 |
% |
|
3.32 |
% |
|
3.29 |
% |
Call option income |
|
0.02 |
|
|
0.06 |
|
|
0.09 |
|
|
0.03 |
|
|
0.07 |
|
Net interest margin -
FTE, including call option income |
|
3.25 |
% |
|
3.30 |
% |
|
3.36 |
% |
|
3.35 |
% |
|
3.36 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Net Interest Margin (Including Call Option Income - YTD
Trends)
|
|
Years Ended
December 31, |
(Dollars in thousands) |
|
2016 |
|
2015 |
|
2014 |
|
2013 |
|
2012 |
Net interest income -
FTE |
|
$ |
728,145 |
|
|
$ |
646,238 |
|
|
$ |
601,744 |
|
|
$ |
552,887 |
|
|
$ |
521,463 |
|
Call option income |
|
11,470 |
|
|
15,364 |
|
|
7,859 |
|
|
4,773 |
|
|
10,476 |
|
Net interest income
including call option income |
|
$ |
739,615 |
|
|
$ |
661,602 |
|
|
$ |
609,603 |
|
|
$ |
557,660 |
|
|
$ |
531,939 |
|
Yield on earning
assets |
|
3.67 |
% |
|
3.76 |
% |
|
3.96 |
% |
|
4.01 |
% |
|
4.21 |
% |
Rate on
interest-bearing liabilities |
|
0.57 |
|
|
0.54 |
|
|
0.55 |
|
|
0.63 |
|
|
0.86 |
|
Rate spread |
|
3.10 |
% |
|
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 |
|
0.16 |
|
|
0.14 |
|
|
0.12 |
|
|
0.12 |
|
|
0.14 |
|
Net interest margin
(GAAP-derived) |
|
3.24 |
% |
|
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 |
|
3.26 |
% |
|
3.36 |
% |
|
3.53 |
% |
|
3.50 |
% |
|
3.49 |
% |
Call option income |
|
0.05 |
|
|
0.08 |
|
|
0.05 |
|
|
0.03 |
|
|
0.07 |
|
Net interest margin -
FTE, including call option income |
|
3.31 |
% |
|
3.44 |
% |
|
3.58 |
% |
|
3.53 |
% |
|
3.56 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Quarterly Average Balances - 5 Quarter Trends
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(In thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Liquidity management
assets |
|
$ |
3,860,616 |
|
|
$ |
3,671,577 |
|
|
$ |
3,413,113 |
|
|
$ |
3,300,138 |
|
|
$ |
3,245,393 |
|
Other earning
assets |
|
27,608 |
|
|
29,875 |
|
|
29,759 |
|
|
28,731 |
|
|
29,792 |
|
Loans, net of unearned
income |
|
19,711,504 |
|
|
19,071,621 |
|
|
18,204,552 |
|
|
17,508,593 |
|
|
16,889,922 |
|
Covered loans |
|
59,827 |
|
|
101,570 |
|
|
109,533 |
|
|
141,351 |
|
|
154,846 |
|
Total
earning assets |
|
$ |
23,659,555 |
|
|
$ |
22,874,643 |
|
|
$ |
21,756,957 |
|
|
$ |
20,978,813 |
|
|
$ |
20,319,953 |
|
Allowance for loan and
covered loan losses |
|
(122,665 |
) |
|
(121,156 |
) |
|
(116,984 |
) |
|
(112,028 |
) |
|
(109,448 |
) |
Cash and due from
banks |
|
221,892 |
|
|
240,239 |
|
|
272,935 |
|
|
259,343 |
|
|
260,593 |
|
Other assets |
|
1,852,278 |
|
|
1,885,526 |
|
|
1,841,847 |
|
|
1,776,785 |
|
|
1,754,014 |
|
Total
assets |
|
$ |
25,611,060 |
|
|
$ |
24,879,252 |
|
|
$ |
23,754,755 |
|
|
$ |
22,902,913 |
|
|
$ |
22,225,112 |
|
Interest-bearing
deposits |
|
$ |
15,567,263 |
|
|
$ |
15,117,102 |
|
|
$ |
14,065,995 |
|
|
$ |
13,717,333 |
|
|
$ |
13,606,046 |
|
Federal Home Loan Bank
advances |
|
388,780 |
|
|
459,198 |
|
|
946,081 |
|
|
825,104 |
|
|
441,669 |
|
Other borrowings |
|
240,174 |
|
|
249,307 |
|
|
248,233 |
|
|
257,384 |
|
|
269,738 |
|
Subordinated notes |
|
138,953 |
|
|
138,925 |
|
|
138,898 |
|
|
138,870 |
|
|
138,852 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
257,687 |
|
|
268,566 |
|
Total
interest-bearing liabilities |
|
$ |
16,588,736 |
|
|
$ |
16,218,098 |
|
|
$ |
15,652,773 |
|
|
$ |
15,196,378 |
|
|
$ |
14,724,871 |
|
Non-interest bearing
deposits |
|
5,902,439 |
|
|
5,566,983 |
|
|
5,223,384 |
|
|
4,939,746 |
|
|
4,776,977 |
|
Other liabilities |
|
430,009 |
|
|
442,487 |
|
|
412,866 |
|
|
377,019 |
|
|
375,719 |
|
Equity |
|
2,689,876 |
|
|
2,651,684 |
|
|
2,465,732 |
|
|
2,389,770 |
|
|
2,347,545 |
|
Total
liabilities and shareholders’ equity |
|
$ |
25,611,060 |
|
|
$ |
24,879,252 |
|
|
$ |
23,754,755 |
|
|
$ |
22,902,913 |
|
|
$ |
22,225,112 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Net Interest Margin - 5 Quarter Trends
|
|
Three Months Ended |
|
|
December 31,
2016 |
|
September 30,
2016 |
|
June 30,
2016 |
|
March 31,
2016 |
|
December 31,
2015 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Liquidity management
assets |
|
1.70 |
% |
|
2.03 |
% |
|
2.27 |
% |
|
2.41 |
% |
|
2.28 |
% |
Other earning
assets |
|
3.37 |
% |
|
2.96 |
% |
|
3.21 |
% |
|
3.31 |
% |
|
3.26 |
% |
Loans, net of unearned
income |
|
4.01 |
% |
|
3.96 |
% |
|
3.92 |
% |
|
3.94 |
% |
|
3.95 |
% |
Covered loans |
|
6.38 |
% |
|
4.45 |
% |
|
5.44 |
% |
|
5.72 |
% |
|
4.79 |
% |
Total
earning assets |
|
3.64 |
% |
|
3.65 |
% |
|
3.67 |
% |
|
3.71 |
% |
|
3.69 |
% |
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits |
|
0.42 |
% |
|
0.41 |
% |
|
0.39 |
% |
|
0.37 |
% |
|
0.37 |
% |
Federal Home Loan Bank
advances |
|
2.50 |
% |
|
2.23 |
% |
|
1.27 |
% |
|
1.41 |
% |
|
2.41 |
% |
Other borrowings |
|
1.78 |
% |
|
1.81 |
% |
|
1.76 |
% |
|
1.65 |
% |
|
1.48 |
% |
Subordinated notes |
|
5.12 |
% |
|
5.12 |
% |
|
5.12 |
% |
|
5.12 |
% |
|
5.12 |
% |
Junior subordinated
debentures |
|
3.90 |
% |
|
3.70 |
% |
|
3.67 |
% |
|
3.41 |
% |
|
3.20 |
% |
Total
interest-bearing liabilities |
|
0.58 |
% |
|
0.58 |
% |
|
0.56 |
% |
|
0.55 |
% |
|
0.55 |
% |
Interest rate
spread |
|
3.06 |
% |
|
3.07 |
% |
|
3.11 |
% |
|
3.16 |
% |
|
3.14 |
% |
Less: Fully
tax-equivalent adjustment |
|
(0.02 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
Net free
funds/contribution |
|
0.17 |
|
|
0.17 |
|
|
0.16 |
|
|
0.16 |
|
|
0.15 |
|
Net interest margin
(GAAP) |
|
3.21 |
% |
|
3.21 |
% |
|
3.24 |
% |
|
3.29 |
% |
|
3.26 |
% |
Fully tax-equivalent
adjustment |
|
0.02 |
|
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
Net interest margin -
FTE |
|
3.23 |
% |
|
3.24 |
% |
|
3.27 |
% |
|
3.32 |
% |
|
3.29 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Interest Income - 5 Quarter Trends
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(In thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Brokerage |
|
$ |
6,408 |
|
|
$ |
6,752 |
|
|
$ |
6,302 |
|
|
$ |
6,057 |
|
|
$ |
6,850 |
|
Trust and asset
management |
|
13,104 |
|
|
12,582 |
|
|
12,550 |
|
|
12,263 |
|
|
11,784 |
|
Total
wealth management |
|
19,512 |
|
|
19,334 |
|
|
18,852 |
|
|
18,320 |
|
|
18,634 |
|
Mortgage banking |
|
35,489 |
|
|
34,712 |
|
|
36,807 |
|
|
21,735 |
|
|
23,317 |
|
Service charges on
deposit accounts |
|
8,054 |
|
|
8,024 |
|
|
7,726 |
|
|
7,406 |
|
|
7,210 |
|
Gains (losses) on
investment securities, net |
|
1,575 |
|
|
3,305 |
|
|
1,440 |
|
|
1,325 |
|
|
(79 |
) |
Fees from covered call
options |
|
1,476 |
|
|
3,633 |
|
|
4,649 |
|
|
1,712 |
|
|
3,629 |
|
Trading gains (losses),
net |
|
1,007 |
|
|
(432 |
) |
|
(316 |
) |
|
(168 |
) |
|
205 |
|
Operating lease income,
net |
|
5,171 |
|
|
4,459 |
|
|
4,005 |
|
|
2,806 |
|
|
1,973 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
Interest
rate swap fees |
|
2,870 |
|
|
2,881 |
|
|
1,835 |
|
|
4,438 |
|
|
2,343 |
|
BOLI |
|
981 |
|
|
884 |
|
|
1,257 |
|
|
472 |
|
|
1,463 |
|
Administrative services |
|
1,115 |
|
|
1,151 |
|
|
1,074 |
|
|
1,069 |
|
|
1,101 |
|
(Loss)
gain on extinguishment of debt |
|
(717 |
) |
|
— |
|
|
— |
|
|
4,305 |
|
|
— |
|
Miscellaneous |
|
8,742 |
|
|
8,653 |
|
|
7,470 |
|
|
5,332 |
|
|
5,294 |
|
Total
other income |
|
12,991 |
|
|
13,569 |
|
|
11,636 |
|
|
15,616 |
|
|
10,201 |
|
Total Non-Interest Income |
|
$ |
85,275 |
|
|
$ |
86,604 |
|
|
$ |
84,799 |
|
|
$ |
68,752 |
|
|
$ |
65,090 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Interest Expense - 5 Quarter Trends
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(In thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
53,108 |
|
|
$ |
54,309 |
|
|
$ |
52,924 |
|
|
$ |
50,282 |
|
|
$ |
50,982 |
|
Commissions and
incentive compensation |
|
35,744 |
|
|
33,740 |
|
|
32,531 |
|
|
26,375 |
|
|
31,222 |
|
Benefits |
|
15,883 |
|
|
15,669 |
|
|
15,439 |
|
|
19,154 |
|
|
17,576 |
|
Total salaries and
employee benefits |
|
104,735 |
|
|
103,718 |
|
|
100,894 |
|
|
95,811 |
|
|
99,780 |
|
Equipment |
|
9,532 |
|
|
9,449 |
|
|
9,307 |
|
|
8,767 |
|
|
8,799 |
|
Operating lease
equipment depreciation |
|
4,219 |
|
|
3,605 |
|
|
3,385 |
|
|
2,050 |
|
|
1,202 |
|
Occupancy, net |
|
14,254 |
|
|
12,767 |
|
|
11,943 |
|
|
11,948 |
|
|
13,062 |
|
Data processing |
|
7,687 |
|
|
7,432 |
|
|
7,138 |
|
|
6,519 |
|
|
7,284 |
|
Advertising and
marketing |
|
6,691 |
|
|
7,365 |
|
|
6,941 |
|
|
3,779 |
|
|
5,373 |
|
Professional fees |
|
5,425 |
|
|
5,508 |
|
|
5,419 |
|
|
4,059 |
|
|
4,387 |
|
Amortization of other
intangible assets |
|
1,158 |
|
|
1,085 |
|
|
1,248 |
|
|
1,298 |
|
|
1,324 |
|
FDIC insurance |
|
4,726 |
|
|
3,686 |
|
|
4,040 |
|
|
3,613 |
|
|
3,317 |
|
OREO expense, net |
|
1,843 |
|
|
1,436 |
|
|
1,348 |
|
|
560 |
|
|
2,598 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
1,165 |
|
|
1,362 |
|
|
1,324 |
|
|
1,310 |
|
|
1,321 |
|
Postage |
|
1,955 |
|
|
1,889 |
|
|
2,038 |
|
|
1,302 |
|
|
1,892 |
|
Miscellaneous |
|
16,981 |
|
|
17,313 |
|
|
15,944 |
|
|
12,714 |
|
|
16,490 |
|
Total
other expense |
|
20,101 |
|
|
20,564 |
|
|
19,306 |
|
|
15,326 |
|
|
19,703 |
|
Total Non-Interest Expense |
|
$ |
180,371 |
|
|
$ |
176,615 |
|
|
$ |
170,969 |
|
|
$ |
153,730 |
|
|
$ |
166,829 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Allowance for Credit Losses, excluding covered loans - 5
Quarter Trends
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in thousands) |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Allowance for
loan losses at beginning of period |
|
$ |
117,693 |
|
|
$ |
114,356 |
|
|
$ |
110,171 |
|
|
$ |
105,400 |
|
|
$ |
102,996 |
|
Provision for
credit losses |
|
7,357 |
|
|
9,741 |
|
|
9,269 |
|
|
8,423 |
|
|
9,196 |
|
Other
adjustments |
|
33 |
|
|
(112 |
) |
|
(134 |
) |
|
(78 |
) |
|
(243 |
) |
Reclassification (to) from allowance for unfunded
lending-related commitments |
|
(25 |
) |
|
(579 |
) |
|
(40 |
) |
|
(81 |
) |
|
13 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
3,054 |
|
|
3,469 |
|
|
721 |
|
|
671 |
|
|
1,369 |
|
Commercial real estate |
|
375 |
|
|
382 |
|
|
502 |
|
|
671 |
|
|
2,734 |
|
Home
equity |
|
326 |
|
|
574 |
|
|
2,046 |
|
|
1,052 |
|
|
680 |
|
Residential real estate |
|
410 |
|
|
134 |
|
|
693 |
|
|
493 |
|
|
211 |
|
Premium
finance receivables - commercial |
|
1,843 |
|
|
1,959 |
|
|
1,911 |
|
|
2,480 |
|
|
2,676 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
205 |
|
|
389 |
|
|
224 |
|
|
107 |
|
|
179 |
|
Total
charge-offs |
|
6,213 |
|
|
6,907 |
|
|
6,097 |
|
|
5,474 |
|
|
7,849 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
668 |
|
|
176 |
|
|
121 |
|
|
629 |
|
|
315 |
|
Commercial real estate |
|
1,916 |
|
|
364 |
|
|
296 |
|
|
369 |
|
|
491 |
|
Home
equity |
|
300 |
|
|
65 |
|
|
71 |
|
|
48 |
|
|
183 |
|
Residential real estate |
|
21 |
|
|
61 |
|
|
31 |
|
|
112 |
|
|
55 |
|
Premium
finance receivables - commercial |
|
498 |
|
|
456 |
|
|
633 |
|
|
787 |
|
|
223 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
43 |
|
|
72 |
|
|
35 |
|
|
36 |
|
|
20 |
|
Total
recoveries |
|
3,446 |
|
|
1,194 |
|
|
1,187 |
|
|
1,981 |
|
|
1,287 |
|
Net charge-offs |
|
(2,767 |
) |
|
(5,713 |
) |
|
(4,910 |
) |
|
(3,493 |
) |
|
(6,562 |
) |
Allowance for loan losses at period end |
|
$ |
122,291 |
|
|
$ |
117,693 |
|
|
$ |
114,356 |
|
|
$ |
110,171 |
|
|
$ |
105,400 |
|
Allowance for unfunded lending-related commitments at
period end |
|
1,673 |
|
|
1,648 |
|
|
1,070 |
|
|
1,030 |
|
|
949 |
|
Allowance for credit losses at period end |
|
$ |
123,964 |
|
|
$ |
119,341 |
|
|
$ |
115,426 |
|
|
$ |
111,201 |
|
|
$ |
106,349 |
|
Annualized net charge-offs by category as a percentage of
its own respective category’s average: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
0.16 |
% |
|
0.24 |
% |
|
0.05 |
% |
|
0.00 |
% |
|
0.09 |
% |
Commercial real estate |
|
(0.10 |
) |
|
0.00 |
|
|
0.01 |
|
|
0.02 |
|
|
0.16 |
|
Home
equity |
|
0.01 |
|
|
0.27 |
|
|
1.03 |
|
|
0.52 |
|
|
0.25 |
|
Residential real estate |
|
0.13 |
|
|
0.03 |
|
|
0.26 |
|
|
0.17 |
|
|
0.07 |
|
Premium
finance receivables - commercial |
|
0.22 |
|
|
0.24 |
|
|
0.21 |
|
|
0.29 |
|
|
0.41 |
|
Premium
finance receivables - life insurance |
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
Consumer
and other |
|
0.47 |
|
|
0.92 |
|
|
0.57 |
|
|
0.20 |
|
|
0.37 |
|
Total
loans, net of unearned income, excluding covered loans |
|
0.06 |
% |
|
0.12 |
% |
|
0.11 |
% |
|
0.08 |
% |
|
0.15 |
% |
Net charge-offs as a percentage of the provision for credit
losses |
|
37.61 |
% |
|
58.65 |
% |
|
52.97 |
% |
|
41.47 |
% |
|
71.35 |
% |
Loans at period-end |
|
$ |
19,703,172 |
|
|
$ |
19,101,261 |
|
|
$ |
18,174,655 |
|
|
$ |
17,446,413 |
|
|
$ |
17,118,117 |
|
Allowance for loan losses as a percentage of loans at
period end |
|
0.62 |
% |
|
0.62 |
% |
|
0.63 |
% |
|
0.63 |
% |
|
0.62 |
% |
Allowance for credit losses as a percentage of loans at
period end |
|
0.63 |
% |
|
0.62 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.62 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Performing Assets, excluding covered assets - 5 Quarter
Trends
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in thousands) |
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
Loans past due
greater than 90 days and still
accruing(1): |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
174 |
|
|
$ |
— |
|
|
$ |
235 |
|
|
$ |
338 |
|
|
$ |
541 |
|
Commercial real estate |
— |
|
|
— |
|
|
— |
|
|
1,260 |
|
|
— |
|
Home
equity |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential real estate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Premium
finance receivables - commercial |
7,962 |
|
|
7,754 |
|
|
10,558 |
|
|
9,548 |
|
|
10,294 |
|
Premium
finance receivables - life insurance |
3,717 |
|
|
— |
|
|
— |
|
|
1,641 |
|
|
— |
|
Consumer
and other |
144 |
|
|
60 |
|
|
163 |
|
|
180 |
|
|
150 |
|
Total
loans past due greater than 90 days and still accruing |
11,997 |
|
|
7,814 |
|
|
10,956 |
|
|
12,967 |
|
|
10,985 |
|
Non-accrual
loans(2): |
|
|
|
|
|
|
|
|
|
Commercial |
15,875 |
|
|
16,418 |
|
|
16,801 |
|
|
12,373 |
|
|
12,712 |
|
Commercial real estate |
21,924 |
|
|
22,625 |
|
|
24,415 |
|
|
26,996 |
|
|
26,645 |
|
Home
equity |
9,761 |
|
|
9,309 |
|
|
8,562 |
|
|
9,365 |
|
|
6,848 |
|
Residential real estate |
12,749 |
|
|
12,205 |
|
|
12,413 |
|
|
11,964 |
|
|
12,043 |
|
Premium
finance receivables - commercial |
14,709 |
|
|
14,214 |
|
|
14,497 |
|
|
15,350 |
|
|
14,561 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
439 |
|
|
543 |
|
|
475 |
|
|
484 |
|
|
263 |
|
Total
non-accrual loans |
75,457 |
|
|
75,314 |
|
|
77,163 |
|
|
76,532 |
|
|
73,072 |
|
Total
non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
16,049 |
|
|
16,418 |
|
|
17,036 |
|
|
12,711 |
|
|
13,253 |
|
Commercial real estate |
21,924 |
|
|
22,625 |
|
|
24,415 |
|
|
28,256 |
|
|
26,645 |
|
Home
equity |
9,761 |
|
|
9,309 |
|
|
8,562 |
|
|
9,365 |
|
|
6,848 |
|
Residential real estate |
12,749 |
|
|
12,205 |
|
|
12,413 |
|
|
11,964 |
|
|
12,043 |
|
Premium
finance receivables - commercial |
22,671 |
|
|
21,968 |
|
|
25,055 |
|
|
24,898 |
|
|
24,855 |
|
Premium
finance receivables - life insurance |
3,717 |
|
|
— |
|
|
— |
|
|
1,641 |
|
|
— |
|
Consumer
and other |
583 |
|
|
603 |
|
|
638 |
|
|
664 |
|
|
413 |
|
Total
non-performing loans |
$ |
87,454 |
|
|
$ |
83,128 |
|
|
$ |
88,119 |
|
|
$ |
89,499 |
|
|
$ |
84,057 |
|
Other
real estate owned |
17,699 |
|
|
19,933 |
|
|
22,154 |
|
|
24,022 |
|
|
26,849 |
|
Other
real estate owned - from acquisitions |
22,583 |
|
|
15,117 |
|
|
15,909 |
|
|
16,980 |
|
|
17,096 |
|
Other
repossessed assets |
581 |
|
|
428 |
|
|
420 |
|
|
171 |
|
|
174 |
|
Total
non-performing assets |
$ |
128,317 |
|
|
$ |
118,606 |
|
|
$ |
126,602 |
|
|
$ |
130,672 |
|
|
$ |
128,176 |
|
TDRs
performing under the contractual terms of the loan agreement |
29,911 |
|
|
29,440 |
|
|
33,310 |
|
|
34,949 |
|
|
42,744 |
|
Total
non-performing loans by category as a percent of its own respective
category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
0.27 |
% |
|
0.28 |
% |
|
0.33 |
% |
|
0.26 |
% |
|
0.28 |
% |
Commercial real estate |
0.35 |
|
|
0.38 |
|
|
0.42 |
|
|
0.49 |
|
|
0.48 |
|
Home
equity |
1.34 |
|
|
1.25 |
|
|
1.13 |
|
|
1.21 |
|
|
0.87 |
|
Residential real estate |
1.81 |
|
|
1.84 |
|
|
1.90 |
|
|
1.91 |
|
|
1.98 |
|
Premium
finance receivables - commercial |
0.91 |
|
|
0.90 |
|
|
1.01 |
|
|
1.07 |
|
|
1.05 |
|
Premium
finance receivables - life insurance |
0.11 |
|
|
— |
|
|
— |
|
|
0.06 |
|
|
— |
|
Consumer
and other |
0.48 |
|
|
0.50 |
|
|
0.50 |
|
|
0.55 |
|
|
0.28 |
|
Total
loans, net of unearned income |
0.44 |
% |
|
0.44 |
% |
|
0.48 |
% |
|
0.51 |
% |
|
0.49 |
% |
Total non-performing assets as a percentage of total
assets |
0.50 |
% |
|
0.47 |
% |
|
0.52 |
% |
|
0.56 |
% |
|
0.56 |
% |
Allowance for loan losses as a percentage of total
non-performing loans |
139.83 |
% |
|
141.58 |
% |
|
129.78 |
% |
|
123.10 |
% |
|
125.39 |
% |
(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 $11.8 million,
$14.8 million, $16.3 million, $17.6 million and $9.1 million as of
December 31, 2016, September 30, 2016, June 30, 2016,
March 31, 2016 and December 31, 2015, respectively.
FOR MORE INFORMATION CONTACT:
Edward J. Wehmer, President & Chief Executive Officer
David A. Dykstra, Senior Executive Vice President & Chief Operating Officer
(847) 939-9000
Web site address: www.wintrust.com
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