ROSEMONT, Ill., Oct. 17, 2018 (GLOBE NEWSWIRE)
-- Wintrust Financial Corporation (“Wintrust” or “the Company”)
(Nasdaq: WTFC) announced net income of $91.9 million or $1.57 per
diluted common share for the third quarter of 2018 compared to net
income of $89.6 million or $1.53 per diluted common share for the
second quarter of 2018 and $65.6 million or $1.12 per diluted
common share for the third quarter of 2017. The Company recorded
net income of $263.5 million or $4.50 per diluted common share for
the first nine months of 2018 compared to net income of $188.9
million or $3.23 per diluted common share for the same period of
2017.
Highlights of the Third Quarter of 2018
*:
- Total loans increased by $513
million from the prior quarter, which included $151 million of
loans acquired in relation to the previously-announced acquisition
of Delaware Place Bank and its parent ("Delaware Place Bank")
completed in early August.
- Total assets now exceed $30
billion, increasing $678 million from the prior quarter. Asset
growth included $280 million of assets acquired in relation to the
acquisition of Delaware Place Bank.
- Total deposits increased by $551
million from the prior quarter to $24.9 billion. This increase
included $213 million from the acquisition of Delaware Place
Bank.
- Net interest income increased by
$9.4 million from the prior quarter as a result of earning assets
growth and one additional day in the quarter, partially offset by a
two basis point reduction in net interest margin. The net interest
margin decreased during the quarter primarily as a result of higher
deposit costs from retail certificate of deposit and money market
accounts, partially offset by increased yields on our loan
portfolio.
- Mortgage banking revenue increased
to $42.0 million, up $2.2 million over the second quarter of 2018
primarily due to increased revenue from loans originated and sold
during the third quarter, offset by lower production margins and a
smaller positive fair market value adjustment to mortgage servicing
rights.
- Professional fees were impacted by
certain consulting agreements paid in relation to the acquisition
of Delaware Place Bank totaling $2.1 million. Approximately
$147,000 of additional payments will be made in the fourth quarter
related to these agreements. Other Delaware Place Bank related
expenses in the third quarter were $64,000 of severance and
$130,000 of system conversion-related costs.
- Non-performing loans increased to
$127.2 million. The increase from the prior quarter was primarily
the result of four credit relationships totaling $46.6 million
becoming non-performing during the third quarter.
- Provision for credit losses totaled
$11.0 million in the third quarter, increasing $6.0 million from
the prior quarter. This increase was driven by $7.5 million of
specific reserves on the four non-performing credit relationships
noted above.
- Opened three new branches,
including two locations in Wisconsin and one location in Illinois.
These locations along with the one location acquired from Delaware
Place Bank in the Gold Coast/Streeterville neighborhood of Chicago,
Illinois increase our total branches to 166 locations.
* 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 net income of $91.9 million
for the third quarter of 2018, the eleventh consecutive quarter of
record net income, and net income of $263.5 million for the first
nine months of 2018. These results reflected the steady strength of
our internal growth engine at Wintrust as we grew assets by $678
million compared to the prior quarter. The third quarter of
2018 was also characterized by strong deposit growth, increased
deposit costs, higher levels of liquidity and the acquisition of
Delaware Place Bank."
Mr. Wehmer continued, "We grew our loan portfolio by $513 million
during the third quarter, which included $151 million of loans
acquired in relation to the acquisition of Delaware Place Bank. We
experienced strong loan growth among our various loan categories
during the period, including our commercial, commercial real estate
and premium financing portfolios. We continue to take a measured
approach in evaluating new loan opportunities. Our strategy to
reduce our average loan to average deposit ratio below 90%
continued in the third quarter. As part of this strategy, liquidity
was accumulated and held to be invested at times that would yield
appropriate spreads. During most of the third quarter, yields
were not in an acceptable range to allow immediate significant
deployment of short-term liquidity into longer-term, higher
yielding securities. Thus, levels of liquidity were higher in
the third quarter compared to the prior quarter. Had the
excess interest-bearing cash accumulated during the quarter been
invested in the longer-term, higher yielding securities, the net
interest margin would have been positively impacted by
approximately 2 basis points, negating the reported net interest
margin decline during the current quarter. Despite the reduction in
net interest margin, net interest income increased by $9.4 million
in the third quarter of 2018 primarily as a result of growth in
outstanding loans and one additional day in the third quarter
compared to the second quarter. Our loan pipelines remain
consistently strong. Total deposits increased $551 million over the
second quarter of 2018 to $24.9 billion as strong deposit growth
continued in the third quarter of 2018. This increase in deposits
included $213 million from the acquisition of Delaware Place Bank.
Organic deposit growth was primarily related to money market
accounts and certificate of deposit accounts as active marketing
campaigns continued into the third quarter."
Commenting on credit quality, Mr. Wehmer noted,
"The Company continued its practice of addressing and resolving
non-performing credits in a timely fashion in the third quarter of
2018. Non-performing loans totaled $127.2 million, or 0.55% of
total loans, an increase of $43.9 million compared to the most
recent quarter. This increase during the third quarter of 2018 was
primarily the result of four relationships totaling $46.6 million
within the commercial loan portfolio becoming non-performing during
the period. These four credit relationships are well reserved at
the end of the quarter and are expected to be substantially
resolved by the end of the first quarter of 2019. We believe these
specific relationships are not characteristic of the entire
portfolio and do not represent a trend within our overall loan
portfolio. As a result of the increase in non-performing loans, the
allowance for loan losses as a percentage of non-performing loans
decreased to 118% at the end of the third quarter from 172% at the
end of the second quarter. Net charge-offs totaled $4.7 million in
the current quarter, increasing $3.6 million from the second
quarter of 2018. Additionally, net charge-offs as a percentage of
average total loans increased to eight basis points from two basis
points in the second quarter. The increase in net charge-offs
during the third quarter was primarily the result of higher
recoveries within the commercial real estate and residential real
estate portfolios during the second quarter. The specific reserves
recognized on the four noted non-performing credit relationships,
net charge-offs during the period and additional reserves
established for loan growth during the period primarily drove the
$11.0 million of provision for credit losses recognized in the
third quarter of 2018. We believe that the Company's reserves
remain appropriate."
Mr. Wehmer further commented, "Mortgage banking
revenue in the third quarter of 2018 totaled $42.0 million, an
increase of $2.2 million compared to the second quarter of 2018.
Mortgage loan origination volumes in the third quarter of 2018
increased slightly to $1.2 billion from $1.1 billion in the second
quarter of 2018. The increase in mortgage banking revenue was
primarily due to increased revenue from loans originated and sold
during the third quarter, tempered by smaller positive fair market
value adjustment to mortgage servicing rights and reduction of
production margin. We continue to focus on efficiencies in our
delivery channels and operating costs in our mortgage banking area.
Home purchase activity represented 76% of the volume for the third
quarter of 2018 compared to 80% in the second quarter of 2018. We
expect lower origination volumes in the fourth quarter due to
normal seasonality and higher mortgage rates."
Turning to the future, Mr. Wehmer stated, "As
our growth engine continues its momentum towards the end of 2018,
we expect continued organic growth in all areas of our business.
Loan growth at the end of the third quarter should add to momentum
into the fourth quarter as period-end loan balances exceeded the
third quarter average balances by approximately $301 million.
Wintrust continues to take a steady and measured approach to
achieving our main objectives of growing franchise value,
increasing profitability, leveraging our expense infrastructure and
continuing to increase shareholder value. We remain well-positioned
for a rising interest rate environment in the future, which,
coupled with this loan growth and investing our liquidity, should
continue to grow net interest income. Evaluating strategic
acquisitions and organic branch growth will also be a part of our
overall growth strategy with the goal of becoming Chicago’s bank
and Wisconsin’s bank. To that end, in addition to the location
acquired through the Delaware Place Bank, the Company opened three
new branches in the third quarter of 2018 and will continue to
evaluate future locations in our market area. Our opportunities for
both internal growth and external growth remain consistently
strong."
The graphs below illustrate certain highlights
of the third quarter of 2018.
http://resource.globenewswire.com/Resource/Download/2b9ea558-a9ee-48d1-81fb-2ac15f603416
Wintrust’s key operating measures and growth
rates for the third quarter of 2018, as compared to the
sequential and linked quarters, are shown in the table below:
|
|
|
|
|
|
|
|
%
or(4)
basis point (bp) change from
2nd Quarter
2018 |
|
%
or
basis point (bp)
change from
3rd Quarter
2017 |
|
|
Three Months
Ended |
|
|
(Dollars in thousands) |
|
September 30,
2018 |
|
June 30,
2018 |
|
September 30,
2017 |
|
|
Net income |
|
$ |
91,948 |
|
|
$ |
89,580 |
|
|
$ |
65,626 |
|
|
3 |
|
% |
|
40 |
|
% |
Net income per common share – diluted |
|
$ |
1.57 |
|
|
$ |
1.53 |
|
|
$ |
1.12 |
|
|
3 |
|
% |
|
40 |
|
% |
Net revenue (1) |
|
$ |
347,493 |
|
|
$ |
333,403 |
|
|
$ |
295,719 |
|
|
4 |
|
% |
|
18 |
|
% |
Net interest income |
|
247,563 |
|
|
238,170 |
|
|
215,988 |
|
|
4 |
|
% |
|
15 |
|
% |
Net interest margin |
|
3.59 |
% |
|
3.61 |
% |
|
3.43 |
% |
|
(2 |
) |
bp |
|
16 |
|
bp |
Net interest margin - fully taxable equivalent (non-GAAP)
(2) |
|
3.61 |
% |
|
3.63 |
% |
|
3.46 |
% |
|
(2 |
) |
bp |
|
15 |
|
bp |
Net overhead ratio (3) |
|
1.53 |
% |
|
1.57 |
% |
|
1.53 |
% |
|
(4 |
) |
bp |
|
— |
|
bp |
Return on average assets |
|
1.24 |
% |
|
1.26 |
% |
|
0.96 |
% |
|
(2 |
) |
bp |
|
28 |
|
bp |
Return on average common equity |
|
11.86 |
% |
|
11.94 |
% |
|
9.15 |
% |
|
(8 |
) |
bp |
|
271 |
|
bp |
Return on average tangible common equity
(non-GAAP) (2) |
|
14.64 |
% |
|
14.72 |
% |
|
11.39 |
% |
|
(8 |
) |
bp |
|
325 |
|
bp |
At end of period |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
$ |
27,358,162 |
|
|
9 |
|
% |
|
10 |
|
% |
Total loans, excluding covered loans (5) |
|
23,123,951 |
|
|
22,610,560 |
|
|
20,912,781 |
|
|
9 |
|
% |
|
11 |
|
% |
Total deposits |
|
24,916,715 |
|
|
24,365,479 |
|
|
22,895,063 |
|
|
9 |
|
% |
|
9 |
|
% |
Total shareholders’ equity |
|
3,179,822 |
|
|
3,106,871 |
|
|
2,908,925 |
|
|
9 |
|
% |
|
9 |
|
% |
(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.
(5) Excludes mortgage loans held-for-sale.
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 |
|
Nine Months
Ended |
(Dollars in thousands, except per share data) |
|
September 30,
2018 |
|
June 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
September 30,
2017 |
Selected Financial Condition Data (at end of
period): |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
$ |
27,358,162 |
|
|
|
|
|
Total loans, excluding covered loans(7) |
|
23,123,951 |
|
|
22,610,560 |
|
|
20,912,781 |
|
|
|
|
|
Total deposits |
|
24,916,715 |
|
|
24,365,479 |
|
|
22,895,063 |
|
|
|
|
|
Junior subordinated debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
|
|
|
Total shareholders’ equity |
|
3,179,822 |
|
|
3,106,871 |
|
|
2,908,925 |
|
|
|
|
|
Selected Statements of Income Data: |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
247,563 |
|
|
$ |
238,170 |
|
|
$ |
215,988 |
|
|
$ |
710,815 |
|
|
$ |
612,977 |
|
Net revenue (1) |
|
347,493 |
|
|
333,403 |
|
|
295,719 |
|
|
991,657 |
|
|
851,445 |
|
Net income |
|
91,948 |
|
|
89,580 |
|
|
65,626 |
|
|
263,509 |
|
|
188,901 |
|
Net income per common share – Basic |
|
$ |
1.59 |
|
|
$ |
1.55 |
|
|
$ |
1.14 |
|
|
$ |
4.57 |
|
|
$ |
3.34 |
|
Net income per common share – Diluted |
|
$ |
1.57 |
|
|
$ |
1.53 |
|
|
$ |
1.12 |
|
|
$ |
4.50 |
|
|
$ |
3.23 |
|
Selected Financial Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
3.59 |
% |
|
3.61 |
% |
|
3.43 |
% |
|
3.58 |
% |
|
3.40 |
% |
Net interest margin - fully taxable equivalent (non-GAAP)
(2) |
|
3.61 |
% |
|
3.63 |
% |
|
3.46 |
% |
|
3.60 |
% |
|
3.43 |
% |
Non-interest income to average assets |
|
1.34 |
% |
|
1.34 |
% |
|
1.17 |
% |
|
1.31 |
% |
|
1.22 |
% |
Non-interest expense to average assets |
|
2.87 |
% |
|
2.90 |
% |
|
2.70 |
% |
|
2.87 |
% |
|
2.74 |
% |
Net overhead ratio (3) |
|
1.53 |
% |
|
1.57 |
% |
|
1.53 |
% |
|
1.56 |
% |
|
1.52 |
% |
Return on average assets |
|
1.24 |
% |
|
1.26 |
% |
|
0.96 |
% |
|
1.23 |
% |
|
0.97 |
% |
Return on average common equity |
|
11.86 |
% |
|
11.94 |
% |
|
9.15 |
% |
|
11.71 |
% |
|
9.21 |
% |
Return on average tangible common equity (non-GAAP)
(2) |
|
14.64 |
% |
|
14.72 |
% |
|
11.39 |
% |
|
14.47 |
% |
|
11.62 |
% |
Average total assets |
|
$ |
29,525,109 |
|
|
$ |
28,567,579 |
|
|
$ |
27,012,295 |
|
|
$ |
28,640,380 |
|
|
$ |
26,096,809 |
|
Average total shareholders’ equity |
|
3,131,943 |
|
|
3,064,154 |
|
|
2,882,682 |
|
|
3,064,396 |
|
|
2,808,072 |
|
Average loans to average deposits ratio (excluding covered
loans) |
|
92.2 |
% |
|
95.5 |
% |
|
91.8 |
% |
|
94.2 |
% |
|
92.8 |
% |
Period-end loans to deposits ratio (excluding covered loans) |
|
92.8 |
% |
|
92.8 |
% |
|
92.1 |
% |
|
|
|
|
Common Share Data at end of period: |
|
|
|
|
|
|
|
|
|
|
Market price per common share |
|
$ |
84.94 |
|
|
$ |
87.05 |
|
|
$ |
78.31 |
|
|
|
|
|
Book value per common share (2) |
|
$ |
54.19 |
|
|
$ |
52.94 |
|
|
$ |
49.86 |
|
|
|
|
|
Tangible common book value per share (2) |
|
$ |
44.16 |
|
|
$ |
43.50 |
|
|
$ |
40.53 |
|
|
|
|
|
Common shares outstanding |
|
56,377,169 |
|
|
56,329,276 |
|
|
55,838,063 |
|
|
|
|
|
Other Data at end of period:(6) |
|
|
|
|
|
|
|
|
|
|
Leverage Ratio (4) |
|
9.3 |
% |
|
9.4 |
% |
|
9.2 |
% |
|
|
|
|
Tier 1 capital to risk-weighted assets (4) |
|
9.9 |
% |
|
10.0 |
% |
|
10.0 |
% |
|
|
|
|
Common equity Tier 1 capital to risk-weighted assets
(4) |
|
9.5 |
% |
|
9.6 |
% |
|
9.5 |
% |
|
|
|
|
Total capital to risk-weighted assets (4) |
|
11.9 |
% |
|
12.1 |
% |
|
12.2 |
% |
|
|
|
|
Allowance for credit losses (5) |
|
$ |
151,001 |
|
|
$ |
144,645 |
|
|
$ |
134,395 |
|
|
|
|
|
Non-performing loans |
|
127,227 |
|
|
83,282 |
|
|
77,983 |
|
|
|
|
|
Allowance for credit losses to total loans (5) |
|
0.65 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
|
|
|
Non-performing loans to total loans |
|
0.55 |
% |
|
0.37 |
% |
|
0.37 |
% |
|
|
|
|
Number of: |
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
|
|
|
Banking offices |
|
166 |
|
|
162 |
|
|
156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
(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.
(7) Excludes mortgage loans held-for-sale.
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION
|
|
(Unaudited) |
|
|
|
(Unaudited) |
(In thousands) |
|
September 30,
2018 |
|
December 31,
2017 |
|
September 30,
2017 |
Assets |
|
|
|
|
|
|
Cash and due from banks |
|
$ |
279,936 |
|
|
$ |
277,534 |
|
|
$ |
251,896 |
|
Federal funds sold and securities purchased under resale
agreements |
|
57 |
|
|
57 |
|
|
56 |
|
Interest bearing deposits with banks |
|
1,137,044 |
|
|
1,063,242 |
|
|
1,218,728 |
|
Available-for-sale securities, at fair value |
|
2,164,985 |
|
|
1,803,666 |
|
|
1,665,903 |
|
Held-to-maturity securities, at amortized cost |
|
966,438 |
|
|
826,449 |
|
|
819,340 |
|
Trading account securities |
|
688 |
|
|
995 |
|
|
643 |
|
Equity securities with readily determinable fair value |
|
36,414 |
|
|
— |
|
|
— |
|
Federal Home Loan Bank and Federal Reserve Bank stock |
|
99,998 |
|
|
89,989 |
|
|
87,192 |
|
Brokerage customer receivables |
|
15,649 |
|
|
26,431 |
|
|
23,631 |
|
Mortgage loans held-for-sale |
|
338,111 |
|
|
313,592 |
|
|
370,282 |
|
Loans, net of unearned income, excluding covered loans |
|
23,123,951 |
|
|
21,640,797 |
|
|
20,912,781 |
|
Covered loans |
|
— |
|
|
— |
|
|
46,601 |
|
Total loans |
|
23,123,951 |
|
|
21,640,797 |
|
|
20,959,382 |
|
Allowance for loan losses |
|
(149,756 |
) |
|
(137,905 |
) |
|
(133,119 |
) |
Allowance for covered loan losses |
|
— |
|
|
— |
|
|
(758 |
) |
Net loans |
|
22,974,195 |
|
|
21,502,892 |
|
|
20,825,505 |
|
Premises and equipment, net |
|
664,469 |
|
|
621,895 |
|
|
609,978 |
|
Lease investments, net |
|
199,241 |
|
|
212,335 |
|
|
193,828 |
|
Accrued interest receivable and other assets |
|
700,568 |
|
|
567,374 |
|
|
580,612 |
|
Trade date securities receivable |
|
— |
|
|
90,014 |
|
|
189,896 |
|
Goodwill |
|
537,560 |
|
|
501,884 |
|
|
502,021 |
|
Other intangible assets |
|
27,378 |
|
|
17,621 |
|
|
18,651 |
|
Total assets |
|
$ |
30,142,731 |
|
|
$ |
27,915,970 |
|
|
$ |
27,358,162 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Non-interest bearing |
|
$ |
6,399,213 |
|
|
$ |
6,792,497 |
|
|
$ |
6,502,409 |
|
Interest bearing |
|
18,517,502 |
|
|
16,390,850 |
|
|
16,392,654 |
|
Total deposits |
|
24,916,715 |
|
|
23,183,347 |
|
|
22,895,063 |
|
Federal Home Loan Bank advances |
|
615,000 |
|
|
559,663 |
|
|
468,962 |
|
Other borrowings |
|
373,571 |
|
|
266,123 |
|
|
251,680 |
|
Subordinated notes |
|
139,172 |
|
|
139,088 |
|
|
139,052 |
|
Junior subordinated debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Trade date securities payable |
|
— |
|
|
— |
|
|
880 |
|
Accrued interest payable and other liabilities |
|
664,885 |
|
|
537,244 |
|
|
440,034 |
|
Total liabilities |
|
26,962,909 |
|
|
24,939,031 |
|
|
24,449,237 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
Preferred stock |
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
Common stock |
|
56,486 |
|
|
56,068 |
|
|
55,940 |
|
Surplus |
|
1,553,353 |
|
|
1,529,035 |
|
|
1,519,596 |
|
Treasury stock |
|
(5,547 |
) |
|
(4,986 |
) |
|
(4,884 |
) |
Retained earnings |
|
1,543,680 |
|
|
1,313,657 |
|
|
1,254,759 |
|
Accumulated other comprehensive loss |
|
(93,150 |
) |
|
(41,835 |
) |
|
(41,486 |
) |
Total shareholders’ equity |
|
3,179,822 |
|
|
2,976,939 |
|
|
2,908,925 |
|
Total liabilities and shareholders’
equity |
|
$ |
30,142,731 |
|
|
$ |
27,915,970 |
|
|
$ |
27,358,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|
Three Months
Ended |
|
Nine Months
Ended |
(In thousands, except per share data) |
September 30,
2018 |
|
June 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
September 30,
2017 |
Interest income |
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
271,134 |
|
|
255,063 |
|
|
223,897 |
|
|
761,191 |
|
|
628,876 |
|
Mortgage loans held-for-sale |
5,285 |
|
|
4,226 |
|
|
3,223 |
|
|
12,329 |
|
|
10,267 |
|
Interest bearing deposits with banks |
5,423 |
|
|
3,243 |
|
|
3,272 |
|
|
11,462 |
|
|
6,529 |
|
Federal funds sold and securities purchased under
resale agreements |
— |
|
|
1 |
|
|
— |
|
|
1 |
|
|
2 |
|
Investment securities |
21,710 |
|
|
19,888 |
|
|
16,058 |
|
|
60,726 |
|
|
45,155 |
|
Trading account securities |
11 |
|
|
4 |
|
|
8 |
|
|
29 |
|
|
23 |
|
Federal Home Loan Bank and Federal Reserve Bank
stock |
1,235 |
|
|
1,455 |
|
|
1,080 |
|
|
3,988 |
|
|
3,303 |
|
Brokerage customer receivables |
164 |
|
|
167 |
|
|
150 |
|
|
488 |
|
|
473 |
|
Total interest income |
304,962 |
|
|
284,047 |
|
|
247,688 |
|
|
850,214 |
|
|
694,628 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
Interest on deposits |
48,736 |
|
|
35,293 |
|
|
23,655 |
|
|
110,578 |
|
|
58,396 |
|
Interest on Federal Home Loan Bank advances |
1,947 |
|
|
4,263 |
|
|
2,151 |
|
|
9,849 |
|
|
6,674 |
|
Interest on other borrowings |
2,003 |
|
|
1,698 |
|
|
1,482 |
|
|
5,400 |
|
|
3,770 |
|
Interest on subordinated notes |
1,773 |
|
|
1,787 |
|
|
1,772 |
|
|
5,333 |
|
|
5,330 |
|
Interest on junior subordinated debentures |
2,940 |
|
|
2,836 |
|
|
2,640 |
|
|
8,239 |
|
|
7,481 |
|
Total interest expense |
57,399 |
|
|
45,877 |
|
|
31,700 |
|
|
139,399 |
|
|
81,651 |
|
Net interest income |
247,563 |
|
|
238,170 |
|
|
215,988 |
|
|
710,815 |
|
|
612,977 |
|
Provision for credit losses |
11,042 |
|
|
5,043 |
|
|
7,896 |
|
|
24,431 |
|
|
21,996 |
|
Net interest income after provision for credit losses |
236,521 |
|
|
233,127 |
|
|
208,092 |
|
|
686,384 |
|
|
590,981 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
Wealth management |
22,634 |
|
|
22,617 |
|
|
19,803 |
|
|
68,237 |
|
|
59,856 |
|
Mortgage banking |
42,014 |
|
|
39,834 |
|
|
28,184 |
|
|
112,808 |
|
|
86,061 |
|
Service charges on deposit accounts |
9,331 |
|
|
9,151 |
|
|
8,645 |
|
|
27,339 |
|
|
25,606 |
|
Gains (losses) on investment securities, net |
90 |
|
|
12 |
|
|
39 |
|
|
(249 |
) |
|
31 |
|
Fees from covered call options |
627 |
|
|
669 |
|
|
1,143 |
|
|
2,893 |
|
|
2,792 |
|
Trading (losses) gains, net |
(61 |
) |
|
124 |
|
|
(129 |
) |
|
166 |
|
|
(869 |
) |
Operating lease income, net |
9,132 |
|
|
8,746 |
|
|
8,461 |
|
|
27,569 |
|
|
21,048 |
|
Other |
16,163 |
|
|
14,080 |
|
|
13,585 |
|
|
42,079 |
|
|
43,943 |
|
Total non-interest income |
99,930 |
|
|
95,233 |
|
|
79,731 |
|
|
280,842 |
|
|
238,468 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
123,855 |
|
|
121,675 |
|
|
106,251 |
|
|
357,966 |
|
|
312,069 |
|
Equipment |
10,827 |
|
|
10,527 |
|
|
9,947 |
|
|
31,426 |
|
|
28,858 |
|
Operating lease equipment depreciation |
7,370 |
|
|
6,940 |
|
|
6,794 |
|
|
20,843 |
|
|
17,092 |
|
Occupancy, net |
14,404 |
|
|
13,663 |
|
|
13,079 |
|
|
41,834 |
|
|
38,766 |
|
Data processing |
9,335 |
|
|
8,752 |
|
|
7,851 |
|
|
26,580 |
|
|
23,580 |
|
Advertising and marketing |
11,120 |
|
|
11,782 |
|
|
9,572 |
|
|
31,726 |
|
|
23,448 |
|
Professional fees |
9,914 |
|
|
6,484 |
|
|
6,786 |
|
|
23,047 |
|
|
18,956 |
|
Amortization of other intangible assets |
1,163 |
|
|
997 |
|
|
1,068 |
|
|
3,164 |
|
|
3,373 |
|
FDIC insurance |
4,205 |
|
|
4,598 |
|
|
3,877 |
|
|
13,165 |
|
|
11,907 |
|
OREO expense, net |
596 |
|
|
980 |
|
|
590 |
|
|
4,502 |
|
|
2,994 |
|
Other |
20,848 |
|
|
20,371 |
|
|
17,760 |
|
|
60,502 |
|
|
54,194 |
|
Total non-interest expense |
213,637 |
|
|
206,769 |
|
|
183,575 |
|
|
614,755 |
|
|
535,237 |
|
Income before taxes |
122,814 |
|
|
121,591 |
|
|
104,248 |
|
|
352,471 |
|
|
294,212 |
|
Income tax expense |
30,866 |
|
|
32,011 |
|
|
38,622 |
|
|
88,962 |
|
|
105,311 |
|
Net income |
$ |
91,948 |
|
|
$ |
89,580 |
|
|
$ |
65,626 |
|
|
$ |
263,509 |
|
|
$ |
188,901 |
|
Preferred stock dividends |
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
6,150 |
|
|
7,728 |
|
Net income applicable to common shares |
$ |
89,898 |
|
|
$ |
87,530 |
|
|
$ |
63,576 |
|
|
$ |
257,359 |
|
|
$ |
181,173 |
|
Net income per common share - Basic |
$ |
1.59 |
|
|
$ |
1.55 |
|
|
$ |
1.14 |
|
|
$ |
4.57 |
|
|
$ |
3.34 |
|
Net income per common share - Diluted |
$ |
1.57 |
|
|
$ |
1.53 |
|
|
$ |
1.12 |
|
|
$ |
4.50 |
|
|
$ |
3.23 |
|
Cash dividends declared per common share |
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
0.14 |
|
|
$ |
0.57 |
|
|
$ |
0.42 |
|
Weighted average common shares outstanding |
56,366 |
|
|
56,299 |
|
|
55,796 |
|
|
56,268 |
|
|
54,292 |
|
Dilutive potential common shares |
918 |
|
|
928 |
|
|
966 |
|
|
912 |
|
|
2,305 |
|
Average common shares and dilutive common shares |
57,284 |
|
|
57,227 |
|
|
56,762 |
|
|
57,180 |
|
|
56,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
The following table shows the computation of
basic and diluted earnings per share for the periods indicated:
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
(In thousands, except per share data) |
|
|
September 30,
2018 |
|
June 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
September 30,
2017 |
Net income |
|
|
$ |
91,948 |
|
|
$ |
89,580 |
|
|
$ |
65,626 |
|
|
$ |
263,509 |
|
|
$ |
188,901 |
|
Less: Preferred stock dividends |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
6,150 |
|
|
7,728 |
|
Net income applicable to common shares—Basic |
(A) |
|
89,898 |
|
|
87,530 |
|
|
63,576 |
|
|
257,359 |
|
|
181,173 |
|
Add: Dividends on convertible preferred stock, if dilutive |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,578 |
|
Net income applicable to common shares—Diluted |
(B) |
|
89,898 |
|
|
87,530 |
|
|
63,576 |
|
|
257,359 |
|
|
182,751 |
|
Weighted average common shares outstanding |
(C) |
|
56,366 |
|
|
56,299 |
|
|
55,796 |
|
|
56,268 |
|
|
54,292 |
|
Effect of dilutive potential common shares: |
|
|
|
|
|
|
|
|
|
|
|
Common stock equivalents |
|
|
918 |
|
|
928 |
|
|
966 |
|
|
912 |
|
|
988 |
|
Convertible preferred stock, if dilutive |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,317 |
|
Weighted average common shares and effect of dilutive potential
common shares |
(D) |
|
57,284 |
|
|
57,227 |
|
|
56,762 |
|
|
57,180 |
|
|
56,597 |
|
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
(A/C) |
|
$ |
1.59 |
|
|
$ |
1.55 |
|
|
$ |
1.14 |
|
|
$ |
4.57 |
|
|
$ |
3.34 |
|
Diluted |
(B/D) |
|
$ |
1.57 |
|
|
$ |
1.53 |
|
|
$ |
1.12 |
|
|
$ |
4.50 |
|
|
$ |
3.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Potentially dilutive common shares can result
from stock options, restricted stock unit awards, stock warrants,
the Company’s convertible preferred stock and shares to be issued
under the Employee Stock Purchase Plan and the Directors Deferred
Fee and Stock Plan, being treated as if they had been either
exercised or issued, computed by application of the treasury stock
method. While potentially dilutive common shares are typically
included in the computation of diluted earnings per share,
potentially dilutive common shares are excluded from this
computation in periods in which the effect would reduce the loss
per share or increase the income per share. For diluted earnings
per share, net income applicable to common shares can be affected
by the conversion of the Company’s convertible preferred stock.
Where the effect of this conversion would reduce the loss per share
or increase the income per share for a period, net income
applicable to common shares is not adjusted by the associated
preferred dividends. On April 25, 2017, 2,073 shares of the Series
C Preferred Stock were converted at the option of the respective
holder into 51,244 shares of the Company's common stock, pursuant
to the terms of the Series C Preferred Stock. On April 27,
2017, the Company caused a mandatory conversion of its outstanding
124,184 shares of Series C Preferred Stock into 3,069,828 shares of
the Company's common stock at a conversion rate of 24.72 shares of
common stock per share of Series C Preferred Stock. Cash was
paid in lieu of fractional shares for an amount considered
insignificant.
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 using tax rates effective as of the end of the period. This
measure ensures comparability of net interest income arising from
both taxable and tax-exempt sources. Net interest income on a FTE
basis is also used in the calculation of the Company’s efficiency
ratio. The efficiency ratio, which is calculated by dividing
non-interest expense by total taxable-equivalent net revenue (less
securities gains or losses), measures how much it costs to produce
one dollar of revenue. Securities gains or losses are excluded from
this calculation to better match revenue from daily operations to
operational expenses. Management considers the tangible common
equity ratio and tangible book value per common share as useful
measurements of the Company’s equity. The Company references
the return on average tangible common equity as a measurement of
profitability.
The following table presents a reconciliation of
certain non-GAAP performance measures and ratios used by the
Company to evaluate and measure the Company’s performance to the
most directly comparable GAAP financial measures for the last five
quarters.
|
Three Months
Ended |
|
Nine Months
Ended |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
September 30, |
|
September 30, |
(Dollars and shares in thousands) |
2018 |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
|
2018 |
|
2017 |
Calculation of Net Interest Margin and Efficiency
Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Interest Income (GAAP) |
$ |
304,962 |
|
|
$ |
284,047 |
|
|
$ |
261,205 |
|
|
$ |
251,840 |
|
|
$ |
247,688 |
|
|
$ |
850,214 |
|
|
$ |
694,628 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
- Loans |
941 |
|
|
812 |
|
|
670 |
|
|
1,106 |
|
|
1,033 |
|
|
2,423 |
|
|
2,654 |
|
- Liquidity Management Assets |
575 |
|
|
566 |
|
|
531 |
|
|
1,019 |
|
|
921 |
|
|
1,672 |
|
|
2,694 |
|
- Other Earning Assets |
3 |
|
|
1 |
|
|
3 |
|
|
2 |
|
|
5 |
|
|
7 |
|
|
12 |
|
(B) Interest Income - FTE |
$ |
306,481 |
|
|
$ |
285,426 |
|
|
$ |
262,409 |
|
|
$ |
253,967 |
|
|
$ |
249,647 |
|
|
$ |
854,316 |
|
|
$ |
699,988 |
|
(C) Interest Expense (GAAP) |
57,399 |
|
|
45,877 |
|
|
36,123 |
|
|
32,741 |
|
|
31,700 |
|
|
139,399 |
|
|
81,651 |
|
(D) Net Interest Income - FTE (B minus C) |
$ |
249,082 |
|
|
$ |
239,549 |
|
|
$ |
226,286 |
|
|
$ |
221,226 |
|
|
$ |
217,947 |
|
|
$ |
714,917 |
|
|
$ |
618,337 |
|
(E) Net Interest Income (GAAP) (A minus C) |
$ |
247,563 |
|
|
$ |
238,170 |
|
|
$ |
225,082 |
|
|
$ |
219,099 |
|
|
$ |
215,988 |
|
|
$ |
710,815 |
|
|
$ |
612,977 |
|
Net interest margin (GAAP-derived) |
3.59 |
% |
|
3.61 |
% |
|
3.54 |
% |
|
3.45 |
% |
|
3.43 |
% |
|
3.58 |
% |
|
3.40 |
% |
Net interest margin - FTE |
3.61 |
% |
|
3.63 |
% |
|
3.56 |
% |
|
3.49 |
% |
|
3.46 |
% |
|
3.60 |
% |
|
3.43 |
% |
(F) Non-interest income |
$ |
99,930 |
|
|
$ |
95,233 |
|
|
$ |
85,679 |
|
|
$ |
81,038 |
|
|
$ |
79,731 |
|
|
$ |
280,842 |
|
|
$ |
238,468 |
|
(G) Gains (losses) on investment securities, net |
90 |
|
|
12 |
|
|
(351 |
) |
|
14 |
|
|
39 |
|
|
(249 |
) |
|
31 |
|
(H) Non-interest expense |
213,637 |
|
|
206,769 |
|
|
194,349 |
|
|
196,580 |
|
|
183,575 |
|
|
614,755 |
|
|
535,237 |
|
Efficiency ratio (H/(E+F-G)) |
61.50 |
% |
|
62.02 |
% |
|
62.47 |
% |
|
65.50 |
% |
|
62.09 |
% |
|
61.98 |
% |
|
62.86 |
% |
Efficiency ratio - FTE (H/(D+F-G)) |
61.23 |
% |
|
61.76 |
% |
|
62.23 |
% |
|
65.04 |
% |
|
61.68 |
% |
|
61.72 |
% |
|
62.47 |
% |
Calculation of Tangible Common Equity ratio (at period
end) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity |
$ |
3,179,822 |
|
|
$ |
3,106,871 |
|
|
$ |
3,031,250 |
|
|
$ |
2,976,939 |
|
|
$ |
2,908,925 |
|
|
|
|
|
Less: Non-convertible preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
|
|
|
Less: Intangible assets |
(564,938 |
) |
|
(531,371 |
) |
|
(533,910 |
) |
|
(519,505 |
) |
|
(520,672 |
) |
|
|
|
|
(I) Total tangible common shareholders’ equity |
$ |
2,489,884 |
|
|
$ |
2,450,500 |
|
|
$ |
2,372,340 |
|
|
$ |
2,332,434 |
|
|
$ |
2,263,253 |
|
|
|
|
|
Total assets |
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
|
$ |
27,915,970 |
|
|
$ |
27,358,162 |
|
|
|
|
|
Less: Intangible assets |
(564,938 |
) |
|
(531,371 |
) |
|
(533,910 |
) |
|
(519,505 |
) |
|
(520,672 |
) |
|
|
|
|
(J) Total tangible assets |
$ |
29,577,793 |
|
|
$ |
28,933,217 |
|
|
$ |
27,922,862 |
|
|
$ |
27,396,465 |
|
|
$ |
26,837,490 |
|
|
|
|
|
Tangible common equity ratio (I/J) |
8.4 |
% |
|
8.5 |
% |
|
8.5 |
% |
|
8.5 |
% |
|
8.4 |
% |
|
|
|
|
Calculation of book value per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity |
$ |
3,179,822 |
|
|
$ |
3,106,871 |
|
|
$ |
3,031,250 |
|
|
$ |
2,976,939 |
|
|
$ |
2,908,925 |
|
|
|
|
|
Less: Preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
|
|
|
(K) Total common equity |
$ |
3,054,822 |
|
|
$ |
2,981,871 |
|
|
$ |
2,906,250 |
|
|
$ |
2,851,939 |
|
|
$ |
2,783,925 |
|
|
|
|
|
(L) Actual common shares outstanding |
56,377 |
|
|
56,329 |
|
|
56,256 |
|
|
55,965 |
|
|
55,838 |
|
|
|
|
|
Book value per common share (K/L) |
$ |
54.19 |
|
|
$ |
52.94 |
|
|
$ |
51.66 |
|
|
$ |
50.96 |
|
|
$ |
49.86 |
|
|
|
|
|
Tangible common book value per share (I/L) |
$ |
44.16 |
|
|
$ |
43.50 |
|
|
$ |
42.17 |
|
|
$ |
41.68 |
|
|
$ |
40.53 |
|
|
|
|
|
Calculation of return on average common
equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
(M) Net income applicable to common shares |
$ |
89,898 |
|
|
$ |
87,530 |
|
|
$ |
79,931 |
|
|
$ |
66,731 |
|
|
$ |
63,576 |
|
|
$ |
257,359 |
|
|
$ |
181,173 |
|
Add: After-tax intangible asset amortization |
871 |
|
|
734 |
|
|
761 |
|
|
738 |
|
|
672 |
|
|
2,366 |
|
|
2,169 |
|
(N) Tangible net income applicable to common shares |
$ |
90,769 |
|
|
$ |
88,264 |
|
|
$ |
80,692 |
|
|
$ |
67,469 |
|
|
$ |
64,248 |
|
|
$ |
259,725 |
|
|
$ |
183,342 |
|
Total average shareholders' equity |
$ |
3,131,943 |
|
|
$ |
3,064,154 |
|
|
$ |
2,995,592 |
|
|
$ |
2,942,999 |
|
|
$ |
2,882,682 |
|
|
$ |
3,064,396 |
|
|
$ |
2,808,072 |
|
Less: Average preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(178,632 |
) |
(O) Total average common shareholders' equity |
$ |
3,006,943 |
|
|
$ |
2,939,154 |
|
|
$ |
2,870,592 |
|
|
$ |
2,817,999 |
|
|
$ |
2,757,682 |
|
|
$ |
2,939,396 |
|
|
$ |
2,629,440 |
|
Less: Average intangible assets |
(547,552 |
) |
|
(533,496 |
) |
|
(536,676 |
) |
|
(519,626 |
) |
|
(520,333 |
) |
|
(539,281 |
) |
|
(520,006 |
) |
(P) Total average tangible common shareholders’ equity |
$ |
2,459,391 |
|
|
$ |
2,405,658 |
|
|
$ |
2,333,916 |
|
|
$ |
2,298,373 |
|
|
$ |
2,237,349 |
|
|
$ |
2,400,115 |
|
|
$ |
2,109,434 |
|
Return on average common equity, annualized
(M/O) |
11.86 |
% |
|
11.94 |
% |
|
11.29 |
% |
|
9.39 |
% |
|
9.15 |
% |
|
11.71 |
% |
|
9.21 |
% |
Return on average tangible common equity, annualized
(N/P) |
14.64 |
% |
|
14.72 |
% |
|
14.02 |
% |
|
11.65 |
% |
|
11.39 |
% |
|
14.47 |
% |
|
11.62 |
% |
BUSINESS UNIT SUMMARY
Community Banking
Through its community banking unit, the Company
provides banking and financial services primarily to individuals,
small to mid-sized businesses, local governmental units and
institutional clients residing primarily in the local areas the
Company services. In the third quarter of 2018, revenue within this
unit was primarily driven by increased net interest income due to
increased earning assets and one additional day in the third
quarter. The net interest margin decreased in the third quarter of
2018 compared to the second quarter of 2018 primarily as a result
of higher deposit costs, partially offset by higher yields within
the loan portfolio. Mortgage banking revenue increased by $2.2
million from $39.8 million for the second quarter of 2018 to $42.0
million for the third quarter of 2018. The higher revenue was
primarily due to increased revenue from loans originated and sold
during the third quarter, offset by lower production margins and
smaller positive fair market value adjustment to mortgage servicing
rights. Originations during the current period increased slightly
to $1.2 billion from $1.1 billion in the second quarter of 2018.
Home purchases represented 76% of loan origination volume for the
third quarter of 2018. The Company's gross commercial and
commercial real estate loan pipelines remain strong. Before the
impact of scheduled payments and prepayments, at September 30,
2018, gross commercial and commercial real estate loan pipelines
totaled $1.1 billion, or $693.5 million when adjusted for the
probability of closing, compared to $1.3 billion, or $847.4 million
when adjusted for the probability of closing, at June 30,
2018.
Specialty Finance
Through its specialty finance unit, the Company
offers financing of insurance premiums for businesses and
individuals, equipment financing through structured loans and lease
products to customers in a variety of industries and accounts
receivable financing, value-added, out-sourced administrative
services, and other services. In the third quarter of 2018, the
specialty finance unit experienced higher revenue as a result of
increased volumes and higher yields within its insurance premium
financing receivables portfolio. Originations of $1.9 billion
during the third quarter of 2018 resulted in a $345.2 million
increase in average balances. The increase in average balances
along with higher yields on these loans resulted in an $8.7 million
increase in interest income attributed to this portfolio. The
Company's leasing business showed steady growth during the third
quarter of 2018, with its portfolio of assets, including capital
leases, loans and equipment on operating leases, totaling $1.1
billion at the end of the third quarter of 2018. Revenues from the
Company's out-sourced administrative services business remained
steady, totaling approximately $1.1 million in the third quarter of
2018 and $1.2 million in the second quarter of 2018.
Wealth Management
Through three separate subsidiaries within its
wealth management unit, the Company offers a full range of wealth
management services, including trust and investment services, asset
management, securities brokerage services and 401(k) and retirement
plan services. Wealth management revenue remained flat in the third
quarter of 2018 compared to the second quarter of 2018, totaling
$22.6 million in the current period. At September 30, 2018,
the Company’s wealth management subsidiaries had approximately
$26.0 billion of assets under administration, which includes $3.2
billion of assets owned by the Company and its subsidiary banks,
representing a $1.4 billion increase from the $24.6 billion of
assets under administration at June 30, 2018. In August, our
brokerage services subsidiary, Wayne Hummer Investments, LLC, was
renamed to Wintrust Investments, LLC to better align with our
Wintrust brand.
LOANS
Loan Portfolio Mix and Growth Rates
|
|
|
|
|
|
|
|
% Growth |
(Dollars in thousands) |
|
September 30,
2018 |
|
December 31,
2017 |
|
September 30,
2017 |
|
From (1) December
31,
2017 |
|
From
September 30,
2017 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
7,473,958 |
|
|
$ |
6,787,677 |
|
|
$ |
6,456,034 |
|
|
14 |
% |
|
16 |
% |
Commercial real estate |
|
6,746,774 |
|
|
6,580,618 |
|
|
6,400,781 |
|
|
3 |
|
|
5 |
|
Home equity |
|
578,844 |
|
|
663,045 |
|
|
672,969 |
|
|
(17 |
) |
|
(14 |
) |
Residential real estate |
|
924,250 |
|
|
832,120 |
|
|
789,499 |
|
|
15 |
|
|
17 |
|
Premium finance receivables - commercial |
|
2,885,327 |
|
|
2,634,565 |
|
|
2,664,912 |
|
|
13 |
|
|
8 |
|
Premium finance receivables - life insurance |
|
4,398,971 |
|
|
4,035,059 |
|
|
3,795,474 |
|
|
12 |
|
|
16 |
|
Consumer and other |
|
115,827 |
|
|
107,713 |
|
|
133,112 |
|
|
10 |
|
|
(13 |
) |
Total loans, net of unearned income, excluding
covered loans |
|
$ |
23,123,951 |
|
|
$ |
21,640,797 |
|
|
$ |
20,912,781 |
|
|
9 |
% |
|
11 |
% |
Covered loans |
|
— |
|
|
— |
|
|
46,601 |
|
|
— |
|
|
(100 |
) |
Total loans, net of unearned income |
|
$ |
23,123,951 |
|
|
$ |
21,640,797 |
|
|
$ |
20,959,382 |
|
|
9 |
% |
|
10 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
32 |
% |
|
31 |
% |
|
31 |
% |
|
|
|
|
Commercial real estate |
|
29 |
|
|
30 |
|
|
31 |
|
|
|
|
|
Home equity |
|
3 |
|
|
3 |
|
|
3 |
|
|
|
|
|
Residential real estate |
|
4 |
|
|
4 |
|
|
3 |
|
|
|
|
|
Premium finance receivables - commercial |
|
12 |
|
|
12 |
|
|
13 |
|
|
|
|
|
Premium finance receivables - life insurance |
|
19 |
|
|
19 |
|
|
18 |
|
|
|
|
|
Consumer and other |
|
1 |
|
|
1 |
|
|
1 |
|
|
|
|
|
Total loans, net of unearned income, excluding
covered loans |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
Covered loans |
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
Total loans, net of unearned income |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized
Commercial and Commercial Real Estate Loan
Portfolios
|
|
As of September 30,
2018 |
|
|
|
|
%
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 |
|
$ |
4,805,486 |
|
|
33.8 |
% |
|
$ |
41,322 |
|
|
$ |
— |
|
|
$ |
45,111 |
|
Franchise |
|
937,290 |
|
|
6.6 |
|
|
16,351 |
|
|
5,122 |
|
|
8,962 |
|
Mortgage warehouse lines of credit |
|
171,860 |
|
|
1.2 |
|
|
— |
|
|
— |
|
|
1,350 |
|
Asset-based lending |
|
1,033,851 |
|
|
7.3 |
|
|
910 |
|
|
— |
|
|
9,389 |
|
Leases |
|
509,675 |
|
|
3.6 |
|
|
4 |
|
|
— |
|
|
1,338 |
|
PCI - commercial loans (1) |
|
15,796 |
|
|
0.1 |
|
|
— |
|
|
3,372 |
|
|
594 |
|
Total commercial |
|
$ |
7,473,958 |
|
|
52.6 |
% |
|
$ |
58,587 |
|
|
$ |
8,494 |
|
|
$ |
66,744 |
|
Commercial Real Estate: |
|
|
|
|
|
|
|
|
|
|
Construction |
|
$ |
798,330 |
|
|
5.6 |
% |
|
$ |
1,554 |
|
|
$ |
— |
|
|
$ |
9,259 |
|
Land |
|
119,004 |
|
|
0.9 |
|
|
228 |
|
|
— |
|
|
3,816 |
|
Office |
|
940,777 |
|
|
6.6 |
|
|
1,532 |
|
|
— |
|
|
6,339 |
|
Industrial |
|
885,931 |
|
|
6.2 |
|
|
178 |
|
|
— |
|
|
6,002 |
|
Retail |
|
887,702 |
|
|
6.2 |
|
|
10,586 |
|
|
— |
|
|
8,195 |
|
Multi-family |
|
923,893 |
|
|
6.5 |
|
|
318 |
|
|
— |
|
|
8,900 |
|
Mixed use and other |
|
2,086,455 |
|
|
14.7 |
|
|
3,119 |
|
|
— |
|
|
15,717 |
|
PCI - commercial real estate (1) |
|
104,682 |
|
|
0.7 |
|
|
— |
|
|
5,578 |
|
|
18 |
|
Total commercial real estate |
|
$ |
6,746,774 |
|
|
47.4 |
% |
|
$ |
17,515 |
|
|
$ |
5,578 |
|
|
$ |
58,246 |
|
Total commercial and commercial real
estate |
|
$ |
14,220,732 |
|
|
100.0 |
% |
|
$ |
76,102 |
|
|
$ |
14,072 |
|
|
$ |
124,990 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate - collateral location by state: |
|
|
|
|
|
|
|
|
|
|
Illinois |
|
$ |
5,213,719 |
|
|
77.3 |
% |
|
|
|
|
|
|
Wisconsin |
|
694,205 |
|
|
10.3 |
|
|
|
|
|
|
|
Total primary markets |
|
$ |
5,907,924 |
|
|
87.6 |
% |
|
|
|
|
|
|
Indiana |
|
151,725 |
|
|
2.2 |
|
|
|
|
|
|
|
Florida |
|
50,819 |
|
|
0.8 |
|
|
|
|
|
|
|
Arizona |
|
58,880 |
|
|
0.9 |
|
|
|
|
|
|
|
Michigan |
|
45,502 |
|
|
0.7 |
|
|
|
|
|
|
|
California |
|
54,692 |
|
|
0.8 |
|
|
|
|
|
|
|
Other (no individual state greater than 0.6%) |
|
477,232 |
|
|
7.0 |
|
|
|
|
|
|
|
Total |
|
$ |
6,746,774 |
|
|
100.0 |
% |
|
|
|
|
|
|
(1) Purchased credit impaired ("PCI") loans
represent loans acquired with evidence of credit quality
deterioration since origination, in accordance with ASC 310-30.
Loan agings are based upon contractually required
payments.
DEPOSITS
Deposit Portfolio Mix and Growth Rates
|
|
|
|
|
|
|
|
% Growth |
(Dollars in thousands) |
|
September 30,
2018 |
|
December 31,
2017 |
|
September 30,
2017 |
|
From (1) December
31,
2017 |
|
From
September 30,
2017 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
6,399,213 |
|
|
$ |
6,792,497 |
|
|
$ |
6,502,409 |
|
|
(8 |
)% |
|
(2 |
)% |
NOW and interest bearing demand deposits |
|
2,512,259 |
|
|
2,315,055 |
|
|
2,273,025 |
|
|
11 |
|
|
11 |
|
Wealth management deposits (2) |
|
2,520,120 |
|
|
2,323,699 |
|
|
2,171,758 |
|
|
11 |
|
|
16 |
|
Money market |
|
5,429,921 |
|
|
4,515,353 |
|
|
4,607,995 |
|
|
27 |
|
|
18 |
|
Savings |
|
2,595,164 |
|
|
2,829,373 |
|
|
2,673,201 |
|
|
(11 |
) |
|
(3 |
) |
Time certificates of deposit |
|
5,460,038 |
|
|
4,407,370 |
|
|
4,666,675 |
|
|
32 |
|
|
17 |
|
Total deposits |
|
$ |
24,916,715 |
|
|
$ |
23,183,347 |
|
|
$ |
22,895,063 |
|
|
10 |
% |
|
9 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
26 |
% |
|
29 |
% |
|
28 |
% |
|
|
|
|
NOW and interest bearing demand deposits |
|
10 |
|
|
10 |
|
|
10 |
|
|
|
|
|
Wealth management deposits (2) |
|
10 |
|
|
10 |
|
|
10 |
|
|
|
|
|
Money market |
|
22 |
|
|
20 |
|
|
20 |
|
|
|
|
|
Savings |
|
10 |
|
|
12 |
|
|
12 |
|
|
|
|
|
Time certificates of deposit |
|
22 |
|
|
19 |
|
|
20 |
|
|
|
|
|
Total deposits |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
(1) Annualized
(2) Represents
deposit balances of the Company’s subsidiary banks from brokerage
customers of Wintrust Investments, trust and asset management
customers of the Company and brokerage customers from unaffiliated
companies which have been placed into deposit
accounts.
Time Certificates of Deposit
Maturity/Re-pricing Analysis
As of September 30, 2018
(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 |
|
$ |
75,033 |
|
|
$ |
38,489 |
|
|
$ |
107,833 |
|
|
$ |
880,119 |
|
|
$ |
1,101,474 |
|
|
1.39 |
% |
4-6 months |
|
59 |
|
|
27,323 |
|
|
— |
|
|
831,304 |
|
|
858,686 |
|
|
1.45 |
% |
7-9 months |
|
249 |
|
|
22,001 |
|
|
— |
|
|
817,515 |
|
|
839,765 |
|
|
1.63 |
% |
10-12 months |
|
75,019 |
|
|
22,576 |
|
|
— |
|
|
641,856 |
|
|
739,451 |
|
|
1.71 |
% |
13-18 months |
|
— |
|
|
19,863 |
|
|
— |
|
|
670,023 |
|
|
689,886 |
|
|
1.78 |
% |
19-24 months |
|
— |
|
|
4,859 |
|
|
— |
|
|
582,323 |
|
|
587,182 |
|
|
2.35 |
% |
24+ months |
|
1,000 |
|
|
19,346 |
|
|
— |
|
|
623,248 |
|
|
643,594 |
|
|
2.46 |
% |
Total |
|
$ |
151,360 |
|
|
$ |
154,457 |
|
|
$ |
107,833 |
|
|
$ |
5,046,388 |
|
|
$ |
5,460,038 |
|
|
1.76 |
% |
(1) This category of certificates of deposit
is shown by contractual maturity date.
(2) This category includes variable rate certificates
of deposit and savings certificates with the majority repricing on
at least a monthly basis.
(3) Weighted-average rate excludes the impact of
purchase accounting fair value adjustments.
NET INTEREST INCOME
The following table presents a summary of
Wintrust’s average balances, net interest income and related net
interest margins, calculated on a fully tax-equivalent basis, for
the third quarter of 2018 compared to the second quarter of 2018
(sequential quarters) and third quarter of 2017 (linked quarters),
respectively:
|
Average Balance
for three months ended, |
|
Interest
for three months ended, |
|
Yield/Rate
for three months ended, |
(Dollars in thousands) |
September 30,
2018 |
|
June 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
June 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
June 30,
2018 |
|
September 30,
2017 |
Interest-bearing deposits with banks and cash
equivalents(1) |
$ |
998,004 |
|
|
$ |
759,425 |
|
|
$ |
1,003,572 |
|
|
$ |
5,423 |
|
|
$ |
3,244 |
|
|
$ |
3,272 |
|
|
2.16 |
% |
|
1.71 |
% |
|
1.29 |
% |
Investment securities(2) |
3,046,272 |
|
|
2,890,828 |
|
|
2,652,119 |
|
|
22,285 |
|
|
20,454 |
|
|
16,979 |
|
|
2.90 |
|
|
2.84 |
|
|
2.54 |
|
FHLB and FRB stock |
88,335 |
|
|
115,119 |
|
|
81,928 |
|
|
1,235 |
|
|
1,455 |
|
|
1,080 |
|
|
5.54 |
|
|
5.07 |
|
|
5.23 |
|
Liquidity management assets(3)(8) |
$ |
4,132,611 |
|
|
$ |
3,765,372 |
|
|
$ |
3,737,619 |
|
|
$ |
28,943 |
|
|
$ |
25,153 |
|
|
$ |
21,331 |
|
|
2.78 |
% |
|
2.68 |
% |
|
2.26 |
% |
Other earning assets(3)(4)(8) |
17,862 |
|
|
21,244 |
|
|
25,844 |
|
|
178 |
|
|
172 |
|
|
163 |
|
|
3.95 |
|
|
3.24 |
|
|
2.49 |
|
Mortgage loans held-for-sale |
380,235 |
|
|
403,967 |
|
|
336,604 |
|
|
5,285 |
|
|
4,226 |
|
|
3,223 |
|
|
5.51 |
|
|
4.20 |
|
|
3.80 |
|
Loans, net of unearned
income(3)(5)(8) |
22,823,378 |
|
|
22,283,541 |
|
|
20,858,618 |
|
|
272,075 |
|
|
255,875 |
|
|
224,330 |
|
|
4.73 |
|
|
4.61 |
|
|
4.27 |
|
Covered loans |
— |
|
|
— |
|
|
48,415 |
|
|
— |
|
|
— |
|
|
600 |
|
|
— |
|
|
— |
|
|
4.91 |
|
Total earning assets(8) |
$ |
27,354,086 |
|
|
$ |
26,474,124 |
|
|
$ |
25,007,100 |
|
|
$ |
306,481 |
|
|
$ |
285,426 |
|
|
$ |
249,647 |
|
|
4.45 |
% |
|
4.32 |
% |
|
3.96 |
% |
Allowance for loan and covered loan losses |
(148,503 |
) |
|
(147,192 |
) |
|
(135,519 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
268,006 |
|
|
270,240 |
|
|
242,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
2,051,520 |
|
|
1,970,407 |
|
|
1,898,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
29,525,109 |
|
|
$ |
28,567,579 |
|
|
$ |
27,012,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest bearing demand deposits |
$ |
2,519,445 |
|
|
$ |
2,295,268 |
|
|
$ |
2,344,848 |
|
|
$ |
2,479 |
|
|
$ |
1,901 |
|
|
$ |
1,313 |
|
|
0.39 |
% |
|
0.33 |
% |
|
0.22 |
% |
Wealth management deposits |
2,517,141 |
|
|
2,365,191 |
|
|
2,320,674 |
|
|
8,287 |
|
|
6,992 |
|
|
4,715 |
|
|
1.31 |
|
|
1.19 |
|
|
0.81 |
|
Money market accounts |
5,369,324 |
|
|
4,883,645 |
|
|
4,471,342 |
|
|
13,260 |
|
|
8,111 |
|
|
3,505 |
|
|
0.98 |
|
|
0.67 |
|
|
0.31 |
|
Savings accounts |
2,672,077 |
|
|
2,702,665 |
|
|
2,581,946 |
|
|
2,907 |
|
|
2,709 |
|
|
2,162 |
|
|
0.43 |
|
|
0.40 |
|
|
0.33 |
|
Time deposits |
5,214,637 |
|
|
4,557,187 |
|
|
4,573,081 |
|
|
21,803 |
|
|
15,580 |
|
|
11,960 |
|
|
1.66 |
|
|
1.37 |
|
|
1.04 |
|
Interest-bearing deposits |
$ |
18,292,624 |
|
|
$ |
16,803,956 |
|
|
$ |
16,291,891 |
|
|
$ |
48,736 |
|
|
$ |
35,293 |
|
|
$ |
23,655 |
|
|
1.06 |
% |
|
0.84 |
% |
|
0.58 |
% |
Federal Home Loan Bank advances |
429,739 |
|
|
1,006,407 |
|
|
324,996 |
|
|
1,947 |
|
|
4,263 |
|
|
2,151 |
|
|
1.80 |
|
|
1.70 |
|
|
2.63 |
|
Other borrowings |
268,278 |
|
|
240,066 |
|
|
268,850 |
|
|
2,003 |
|
|
1,698 |
|
|
1,482 |
|
|
2.96 |
|
|
2.84 |
|
|
2.19 |
|
Subordinated notes |
139,155 |
|
|
139,125 |
|
|
139,035 |
|
|
1,773 |
|
|
1,787 |
|
|
1,772 |
|
|
5.10 |
|
|
5.14 |
|
|
5.10 |
|
Junior subordinated debentures |
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
2,940 |
|
|
2,836 |
|
|
2,640 |
|
|
4.54 |
|
|
4.42 |
|
|
4.07 |
|
Total interest-bearing liabilities |
$ |
19,383,362 |
|
|
$ |
18,443,120 |
|
|
$ |
17,278,338 |
|
|
$ |
57,399 |
|
|
$ |
45,877 |
|
|
$ |
31,700 |
|
|
1.17 |
% |
|
1.00 |
% |
|
0.73 |
% |
Non-interest bearing deposits |
6,461,195 |
|
|
6,539,731 |
|
|
6,419,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
548,609 |
|
|
520,574 |
|
|
431,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
3,131,943 |
|
|
3,064,154 |
|
|
2,882,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
29,525,109 |
|
|
$ |
28,567,579 |
|
|
$ |
27,012,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread(6)(8) |
|
|
|
|
|
|
|
|
|
|
|
|
3.28 |
% |
|
3.32 |
% |
|
3.23 |
% |
Less: Fully tax-equivalent adjustment |
|
|
|
|
|
|
(1,519 |
) |
|
(1,379 |
) |
|
(1,959 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.03 |
) |
Net free funds/contribution(7) |
$ |
7,970,724 |
|
|
$ |
8,031,004 |
|
|
$ |
7,728,762 |
|
|
|
|
|
|
|
|
0.33 |
|
|
0.31 |
|
|
0.23 |
|
Net interest income/ margin(8) (GAAP) |
|
|
|
|
|
|
$ |
247,563 |
|
|
$ |
238,170 |
|
|
$ |
215,988 |
|
|
3.59 |
% |
|
3.61 |
% |
|
3.43 |
% |
Fully tax-equivalent adjustment |
|
|
|
|
|
|
1,519 |
|
|
1,379 |
|
|
1,959 |
|
|
0.02 |
|
|
0.02 |
|
|
0.03 |
|
Net interest income/ margin - FTE (8) |
|
|
|
|
|
|
$ |
249,082 |
|
|
$ |
239,549 |
|
|
$ |
217,947 |
|
|
3.61 |
% |
|
3.63 |
% |
|
3.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes interest-bearing deposits from
banks, federal funds sold and securities purchased under resale
agreements.
(2) Investment securities includes
investment securities classified as available-for-sale and
held-to-maturity, and equity securities with readily determinable
fair values. Equity securities without readily determinable fair
values are included within other
assets.
(3) Interest income on
tax-advantaged loans, trading securities and investment securities
reflects a tax-equivalent adjustment based on the marginal federal
corporate tax rate in effect as of the applicable period. The total
adjustments for the three months ended September 30, 2018,
June 30, 2018 and September 30, 2017 were $1.5 million, $1.4
million and $2.0 million, respectively.
(4) Other earning assets include brokerage customer
receivables and trading account securities.
(5) Loans, net of unearned income, include
non-accrual loans.
(6) Interest rate spread is the difference between
the yield earned on earning assets and the rate paid on
interest-bearing liabilities.
(7) 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.
(8) See “Supplemental Financial Measures/Ratios” for
additional information on this performance ratio.
For the third quarter of 2018, net interest
income totaled $247.6 million, an increase of $9.4 million as
compared to the second quarter of 2018 and an increase of $31.6
million as compared to the third quarter of 2017. Net interest
margin was 3.59% (3.61% on a fully tax-equivalent basis) during the
third quarter of 2018 compared to 3.61% (3.63% on a fully
tax-equivalent basis) during the second quarter of 2018 and 3.43%
(3.46% on a fully tax-equivalent basis) during the third quarter of
2017. The $9.4 million increase in net interest income in the third
quarter of 2018 compared to the second quarter of 2018 was
attributable to a $9.1 million increase from higher levels of
earning assets and a $2.6 million increase due to one more day in
the quarter, partially offset by a $2.3 million decrease due to a
lower net interest margin during the period.
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
nine months ended September 30, 2018 compared to nine months
ended September 30, 2017:
|
Average Balance
for nine months ended, |
|
Interest
for nine months ended, |
|
Yield/Rate
for nine months ended, |
(Dollars in thousands) |
September 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
September 30,
2017 |
Interest-bearing deposits with banks and cash equivalents
(1) |
$ |
836,710 |
|
|
$ |
836,373 |
|
|
$ |
11,463 |
|
|
$ |
6,531 |
|
|
1.83 |
% |
|
1.04 |
% |
Investment securities (2) |
2,943,802 |
|
|
2,541,061 |
|
|
62,398 |
|
|
47,849 |
|
|
2.83 |
|
|
2.52 |
|
FHLB and FRB stock |
102,893 |
|
|
91,774 |
|
|
3,988 |
|
|
3,303 |
|
|
5.18 |
|
|
4.81 |
|
Liquidity management assets(3)(8) |
$ |
3,883,405 |
|
|
$ |
3,469,208 |
|
|
$ |
77,849 |
|
|
$ |
57,683 |
|
|
2.68 |
% |
|
2.22 |
% |
Other earning assets(3)(4)(8) |
22,190 |
|
|
25,612 |
|
|
524 |
|
|
508 |
|
|
3.15 |
|
|
2.65 |
|
Mortgage loans held-for-sale |
355,491 |
|
|
313,675 |
|
|
12,329 |
|
|
9,041 |
|
|
4.64 |
|
|
3.85 |
|
Loans, net of unearned income(3)(5)(8) |
22,276,827 |
|
|
20,263,832 |
|
|
763,614 |
|
|
630,591 |
|
|
4.58 |
|
|
4.16 |
|
Covered loans |
— |
|
|
52,339 |
|
|
— |
|
|
2,165 |
|
|
— |
|
|
5.53 |
|
Total earning assets(8) |
$ |
26,537,913 |
|
|
$ |
24,124,666 |
|
|
$ |
854,316 |
|
|
$ |
699,988 |
|
|
4.30 |
% |
|
3.88 |
% |
Allowance for loan and covered loan losses |
(146,287 |
) |
|
(131,695 |
) |
|
|
|
|
|
|
|
|
Cash and due from banks |
264,294 |
|
|
238,136 |
|
|
|
|
|
|
|
|
|
Other assets |
1,984,460 |
|
|
1,865,702 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
28,640,380 |
|
|
$ |
26,096,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest bearing demand deposits |
$ |
2,357,768 |
|
|
$ |
2,441,911 |
|
|
$ |
5,765 |
|
|
$ |
3,620 |
|
|
0.33 |
% |
|
0.20 |
% |
Wealth management deposits |
2,378,468 |
|
|
2,165,610 |
|
|
20,721 |
|
|
9,894 |
|
|
1.16 |
|
|
0.61 |
|
Money market accounts |
4,927,639 |
|
|
4,438,537 |
|
|
26,038 |
|
|
8,433 |
|
|
0.71 |
|
|
0.25 |
|
Savings accounts |
2,728,986 |
|
|
2,380,688 |
|
|
8,348 |
|
|
4,999 |
|
|
0.41 |
|
|
0.28 |
|
Time deposits |
4,701,247 |
|
|
4,369,688 |
|
|
49,706 |
|
|
31,450 |
|
|
1.41 |
|
|
0.96 |
|
Interest-bearing deposits |
$ |
17,094,108 |
|
|
$ |
15,796,434 |
|
|
$ |
110,578 |
|
|
$ |
58,396 |
|
|
0.86 |
% |
|
0.49 |
% |
Federal Home Loan Bank advances |
768,029 |
|
|
399,171 |
|
|
9,849 |
|
|
6,674 |
|
|
1.71 |
|
|
2.24 |
|
Other borrowings |
257,175 |
|
|
254,854 |
|
|
5,400 |
|
|
3,770 |
|
|
2.81 |
|
|
1.98 |
|
Subordinated notes |
139,125 |
|
|
139,008 |
|
|
5,333 |
|
|
5,330 |
|
|
5.11 |
|
|
5.11 |
|
Junior subordinated debentures |
253,566 |
|
|
253,566 |
|
|
8,239 |
|
|
7,481 |
|
|
4.28 |
|
|
3.89 |
|
Total interest-bearing liabilities |
$ |
18,512,003 |
|
|
$ |
16,843,033 |
|
|
$ |
139,399 |
|
|
$ |
81,651 |
|
|
1.01 |
% |
|
0.65 |
% |
Non-interest bearing deposits |
6,546,269 |
|
|
6,039,329 |
|
|
|
|
|
|
|
|
|
Other liabilities |
517,712 |
|
|
406,375 |
|
|
|
|
|
|
|
|
|
Equity |
3,064,396 |
|
|
2,808,072 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
28,640,380 |
|
|
$ |
26,096,809 |
|
|
|
|
|
|
|
|
|
Interest rate spread(6)(8) |
|
|
|
|
|
|
|
|
3.29 |
% |
|
3.23 |
% |
Less: Fully tax-equivalent adjustment |
|
|
|
|
(4,102 |
) |
|
(5,360 |
) |
|
(0.02 |
) |
|
(0.03 |
) |
Net free funds/contribution(7) |
$ |
8,025,910 |
|
|
$ |
7,281,633 |
|
|
|
|
|
|
0.31 |
|
|
0.20 |
|
Net interest income/ margin(8) (GAAP) |
|
|
|
|
$ |
710,815 |
|
|
$ |
612,977 |
|
|
3.58 |
% |
|
3.40 |
% |
Fully tax-equivalent adjustment |
|
|
|
|
4,102 |
|
|
5,360 |
|
|
0.02 |
|
|
0.03 |
|
Net interest income/ margin - FTE (8) |
|
|
|
|
$ |
714,917 |
|
|
$ |
618,337 |
|
|
3.60 |
% |
|
3.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes interest-bearing deposits from
banks, federal funds sold and securities purchased under resale
agreements.
(2) Investment securities includes investment
securities classified as available-for-sale and held-to-maturity,
and equity securities with readily determinable fair values. Equity
securities without readily determinable fair values are included
within other assets.
(3) Interest income on tax-advantaged loans, trading
securities and investment securities reflects a tax-equivalent
adjustment based on a marginal federal corporate tax rate in effect
as of the applicable period. The total adjustments for the nine
months ended September 30, 2018 and 2017 were $4.1 million and
$5.4 million respectively.
(4) Other earning assets include brokerage customer
receivables and trading account securities.
(5) Loans, net of unearned income, include
non-accrual loans.
(6) Interest rate spread is the difference between
the yield earned on earning assets and the rate paid on
interest-bearing liabilities.
(7) 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.
(8) See “Supplemental Financial Measures/Ratios” for
additional information on this performance ratio.
For the first nine months of 2018 net interest
income totaled $710.8 million, an increase of $97.8 million as
compared to the first nine months of 2017. Net interest margin was
3.58% (3.60% on a fully tax-equivalent basis) for the first nine
months of 2018 compared to 3.40% (3.43% on a fully tax-equivalent
basis) for the first nine months of 2017. The $97.8 million
increase in net interest income in the first nine months of 2018
compared to the same period of 2017 was attributable to a $60.1
million increase from higher levels of earning assets and a $37.8
million increase from rising rates.
Interest Rate Sensitivity
As an ongoing part of its financial strategy,
the Company attempts to manage the impact of fluctuations in market
interest rates on net interest income. Management measures its
exposure to changes in interest rates by modeling many different
interest rate scenarios.
The following interest rate scenarios display
the percentage change in net interest income over a one-year time
horizon assuming increases of 100 and 200 basis points and a
decrease of 100 basis points. The Static Shock Scenario results
incorporate actual cash flows and repricing characteristics for
balance sheet instruments following an instantaneous, parallel
change in market rates based upon a static (i.e. no growth or
constant) balance sheet. Conversely, the Ramp Scenario results
incorporate management’s projections of future volume and pricing
of each of the product lines following a gradual, parallel change
in market rates over twelve months. Actual results may differ
from these simulated results due to timing, magnitude, and
frequency of interest rate changes as well as changes in market
conditions and management strategies. The interest rate sensitivity
for both the Static Shock and Ramp Scenario at September 30,
2018, June 30, 2018 and September 30, 2017 is as
follows:
|
|
|
|
|
|
Static Shock Scenario |
|
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
September 30, 2018 |
|
18.1 |
% |
|
9.1 |
% |
|
(10.0 |
)% |
June 30, 2018 |
|
19.3 |
% |
|
9.7 |
% |
|
(10.7 |
)% |
September 30, 2017 |
|
19.5 |
% |
|
9.8 |
% |
|
(12.9 |
)% |
Ramp Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
September 30, 2018 |
8.5 |
% |
|
4.3 |
% |
|
(4.2 |
)% |
June 30, 2018 |
8.7 |
% |
|
4.5 |
% |
|
(4.4 |
)% |
September 30, 2017 |
9.0 |
% |
|
4.6 |
% |
|
(5.3 |
)% |
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).
Maturities and Sensitivities of Loans to
Changes in Interest Rates
The following table classifies the loan
portfolio at September 30, 2018 by date at which the loans
reprice or mature, and the type of rate exposure:
As of September 30, 2018 |
One year or
less |
|
From one to
five
years |
|
Over five
years |
|
|
(Dollars in thousands) |
|
|
|
Total |
Commercial |
|
|
|
|
|
|
|
Fixed rate |
$ |
140,679 |
|
|
$ |
1,016,116 |
|
|
$ |
691,306 |
|
|
$ |
1,848,101 |
|
Variable rate |
5,619,143 |
|
|
6,714 |
|
|
— |
|
|
5,625,857 |
|
Total commercial |
$ |
5,759,822 |
|
|
$ |
1,022,830 |
|
|
$ |
691,306 |
|
|
$ |
7,473,958 |
|
Commercial real estate |
|
|
|
|
|
|
|
Fixed rate |
378,163 |
|
|
1,860,693 |
|
|
283,884 |
|
|
2,522,740 |
|
Variable rate |
4,194,363 |
|
|
28,461 |
|
|
1,210 |
|
|
4,224,034 |
|
Total commercial real estate |
$ |
4,572,526 |
|
|
$ |
1,889,154 |
|
|
$ |
285,094 |
|
|
$ |
6,746,774 |
|
Home equity |
|
|
|
|
|
|
|
Fixed rate |
10,787 |
|
|
11,906 |
|
|
27,167 |
|
|
49,860 |
|
Variable rate |
528,984 |
|
|
— |
|
|
— |
|
|
528,984 |
|
Total home equity |
$ |
539,771 |
|
|
$ |
11,906 |
|
|
$ |
27,167 |
|
|
$ |
578,844 |
|
Residential real estate |
|
|
|
|
|
|
|
Fixed rate |
32,621 |
|
|
23,239 |
|
|
206,214 |
|
|
262,074 |
|
Variable rate |
60,733 |
|
|
274,323 |
|
|
327,120 |
|
|
662,176 |
|
Total residential real estate |
$ |
93,354 |
|
|
$ |
297,562 |
|
|
$ |
533,334 |
|
|
$ |
924,250 |
|
Premium finance receivables - commercial |
|
|
|
|
|
|
|
Fixed rate |
2,811,527 |
|
|
73,800 |
|
|
— |
|
|
2,885,327 |
|
Variable rate |
— |
|
|
— |
|
|
— |
|
|
— |
|
Total premium finance receivables - commercial |
$ |
2,811,527 |
|
|
$ |
73,800 |
|
|
$ |
— |
|
|
$ |
2,885,327 |
|
Premium finance receivables - life insurance |
|
|
|
|
|
|
|
Fixed rate |
12,739 |
|
|
2,855 |
|
|
3,955 |
|
|
19,549 |
|
Variable rate |
4,379,422 |
|
|
— |
|
|
— |
|
|
4,379,422 |
|
Total premium finance receivables - life
insurance |
$ |
4,392,161 |
|
|
$ |
2,855 |
|
|
$ |
3,955 |
|
|
$ |
4,398,971 |
|
Consumer and other |
|
|
|
|
|
|
|
Fixed rate |
70,151 |
|
|
9,729 |
|
|
2,313 |
|
|
82,193 |
|
Variable rate |
33,592 |
|
|
42 |
|
|
— |
|
|
33,634 |
|
Total consumer and other |
$ |
103,743 |
|
|
$ |
9,771 |
|
|
$ |
2,313 |
|
|
$ |
115,827 |
|
Total per category |
|
|
|
|
|
|
|
Fixed rate |
3,456,667 |
|
|
2,998,338 |
|
|
1,214,839 |
|
|
7,669,844 |
|
Variable rate |
14,816,237 |
|
|
309,540 |
|
|
328,330 |
|
|
15,454,107 |
|
Total loans, net of unearned income |
$ |
18,272,904 |
|
|
$ |
3,307,878 |
|
|
$ |
1,543,169 |
|
|
$ |
23,123,951 |
|
Variable Rate Loan Pricing by Index: |
|
|
|
|
|
|
|
Prime |
$ |
2,457,259 |
|
|
|
|
|
|
|
One- month LIBOR |
7,772,158 |
|
|
|
|
|
|
|
Three- month LIBOR |
457,638 |
|
|
|
|
|
|
|
Twelve- month LIBOR |
4,529,883 |
|
|
|
|
|
|
|
Other |
237,169 |
|
|
|
|
|
|
|
Total variable rate |
$ |
15,454,107 |
|
|
|
|
|
|
|
http://resource.globenewswire.com/Resource/Download/12b5f87f-f7c8-4ae2-a269-936951a4e3f6
As noted in the table on the previous page, the
majority of the Company’s portfolio is tied to LIBOR indices which,
as shown in the table above, do not mirror the same increases as
the Prime rate when the Federal Reserve raises interest
rates. Specifically, the Company has $7.8 billion of variable
rate loans tied to one-month LIBOR and $4.5 billion of variable
rate loans tied to twelve-month LIBOR. The above chart shows:
|
|
Changes in |
|
|
Prime |
|
1-month
LIBOR |
|
12-month
LIBOR |
Fourth Quarter 2017 |
|
+25 bps |
|
+33 bps |
|
+33 bps |
First Quarter 2018 |
|
+25 bps |
|
+32 bps |
|
+55 bps |
Second Quarter 2018 |
|
+25 bps |
|
+21 bps |
|
+10 bps |
Third Quarter 2018 |
|
+25 bps |
|
+17 bps |
|
+16 bps |
NON-INTEREST INCOME
The following table presents non-interest income by category for
the periods presented:
|
|
Three Months
Ended |
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
Q3 2018 compared to
Q2 2018 |
|
Q3 2018 compared to
Q3 2017 |
(Dollars in thousands) |
|
2018 |
|
2018 |
|
2017 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
|
$ |
5,579 |
|
|
$ |
5,784 |
|
|
$ |
5,127 |
|
|
$ |
(205 |
) |
|
(4 |
)% |
|
$ |
452 |
|
|
9 |
% |
Trust and asset management |
|
17,055 |
|
|
16,833 |
|
|
14,676 |
|
|
222 |
|
|
1 |
|
|
2,379 |
|
|
16 |
|
Total wealth management |
|
$ |
22,634 |
|
|
$ |
22,617 |
|
|
$ |
19,803 |
|
|
$ |
17 |
|
|
— |
% |
|
$ |
2,831 |
|
|
14 |
% |
Mortgage banking |
|
42,014 |
|
|
39,834 |
|
|
28,184 |
|
|
2,180 |
|
|
5 |
|
|
13,830 |
|
|
49 |
|
Service charges on deposit accounts |
|
9,331 |
|
|
9,151 |
|
|
8,645 |
|
|
180 |
|
|
2 |
|
|
686 |
|
|
8 |
|
Gains on investment securities, net |
|
90 |
|
|
12 |
|
|
39 |
|
|
78 |
|
|
NM |
|
51 |
|
|
NM |
Fees from covered call options |
|
627 |
|
|
669 |
|
|
1,143 |
|
|
(42 |
) |
|
(6 |
) |
|
(516 |
) |
|
(45 |
) |
Trading (losses) gains, net |
|
(61 |
) |
|
124 |
|
|
(129 |
) |
|
(185 |
) |
|
NM |
|
68 |
|
|
(53 |
) |
Operating lease income, net |
|
9,132 |
|
|
8,746 |
|
|
8,461 |
|
|
386 |
|
|
4 |
|
|
671 |
|
|
8 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
2,359 |
|
|
3,829 |
|
|
1,762 |
|
|
(1,470 |
) |
|
(38 |
) |
|
597 |
|
|
34 |
|
BOLI |
|
3,190 |
|
|
1,544 |
|
|
897 |
|
|
1,646 |
|
|
NM |
|
2,293 |
|
|
NM |
Administrative services |
|
1,099 |
|
|
1,205 |
|
|
1,052 |
|
|
(106 |
) |
|
(9 |
) |
|
47 |
|
|
4 |
|
Early pay-offs of capital leases |
|
11 |
|
|
554 |
|
|
— |
|
|
(543 |
) |
|
(98 |
) |
|
11 |
|
|
NM |
Miscellaneous |
|
9,504 |
|
|
6,948 |
|
|
9,874 |
|
|
2,556 |
|
|
37 |
|
|
(370 |
) |
|
(4 |
) |
Total Other |
|
$ |
16,163 |
|
|
$ |
14,080 |
|
|
$ |
13,585 |
|
|
$ |
2,083 |
|
|
15 |
% |
|
$ |
2,578 |
|
|
19 |
% |
Total Non-Interest Income |
|
$ |
99,930 |
|
|
$ |
95,233 |
|
|
$ |
79,731 |
|
|
$ |
4,697 |
|
|
5 |
% |
|
$ |
20,199 |
|
|
25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended |
|
|
|
|
|
|
September 30, |
|
September 30, |
|
$ |
|
% |
(Dollars in thousands) |
|
2018 |
|
2017 |
|
Change |
|
Change |
Brokerage |
|
$ |
17,394 |
|
|
$ |
16,796 |
|
|
$ |
598 |
|
|
4 |
% |
Trust and asset management |
|
50,843 |
|
|
43,060 |
|
|
7,783 |
|
|
18 |
|
Total wealth management |
|
$ |
68,237 |
|
|
$ |
59,856 |
|
|
$ |
8,381 |
|
|
14 |
% |
Mortgage banking |
|
112,808 |
|
|
86,061 |
|
|
26,747 |
|
|
31 |
|
Service charges on deposit accounts |
|
27,339 |
|
|
25,606 |
|
|
1,733 |
|
|
7 |
|
(Losses) gains on investment securities, net |
|
(249 |
) |
|
31 |
|
|
(280 |
) |
|
NM |
Fees from covered call options |
|
2,893 |
|
|
2,792 |
|
|
101 |
|
|
4 |
|
Trading gains (losses), net |
|
166 |
|
|
(869 |
) |
|
1,035 |
|
|
NM |
Operating lease income, net |
|
27,569 |
|
|
21,048 |
|
|
6,521 |
|
|
31 |
|
Other: |
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
8,425 |
|
|
5,416 |
|
|
3,009 |
|
|
56 |
|
BOLI |
|
5,448 |
|
|
2,770 |
|
|
2,678 |
|
|
97 |
|
Administrative services |
|
3,365 |
|
|
3,062 |
|
|
303 |
|
|
10 |
|
Early pay-offs of capital leases |
|
598 |
|
|
1,221 |
|
|
(623 |
) |
|
(51 |
) |
Miscellaneous |
|
24,243 |
|
|
31,474 |
|
|
(7,231 |
) |
|
(23 |
) |
Total Other |
|
$ |
42,079 |
|
|
$ |
43,943 |
|
|
$ |
(1,864 |
) |
|
(4 |
)% |
Total Non-Interest Income |
|
$ |
280,842 |
|
|
$ |
238,468 |
|
|
$ |
42,374 |
|
|
18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not meaningful
Notable contributions to the change in
non-interest income are as follows:
The increase in mortgage banking revenue in the
current quarter as compared to the second quarter of 2018 resulted
primarily from increased revenue from loans originated and sold,
offset by lower production margins and smaller positive fair market
value adjustment to mortgage servicing rights. Mortgage loans
originated or purchased for sale totaled $1.2 billion in the third
quarter of 2018 as compared to $1.1 billion in the second quarter
of 2018 and $956.0 million in the third quarter of 2017. 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 mortgage servicing rights as the
Company does not hedge this change in fair value. The Company
typically originates mortgage loans held-for-sale with associated
mortgage servicing rights ("MSRs") retained or released.
Additionally, through the acquisition of Veterans First, the
Company acquired approximately $13.8 million of MSRs in the first
quarter of 2018. The Company records MSRs at fair value on a
recurring basis. The table below presents additional selected
information regarding mortgage banking revenue for the respective
periods.
|
|
Three Months
Ended |
|
Nine Months
Ended |
(Dollars in thousands) |
|
September 30,
2018 |
|
June 30,
2018 |
|
September 30,
2017 |
|
September 30,
2018 |
|
September 30,
2017 |
Originations: |
|
|
|
|
|
|
|
|
|
|
Retail originations |
|
$ |
642,213 |
|
|
769,279 |
|
|
$ |
809,961 |
|
|
$ |
1,949,036 |
|
|
$ |
2,398,328 |
|
Correspondent originations |
|
310,446 |
|
|
122,986 |
|
|
145,999 |
|
|
559,896 |
|
|
414,357 |
|
Veterans First originations |
|
199,774 |
|
|
204,108 |
|
|
— |
|
|
518,726 |
|
|
— |
|
Total originations (A) |
|
$ |
1,152,433 |
|
|
1,096,373 |
|
|
$ |
955,960 |
|
|
$ |
3,027,658 |
|
|
$ |
2,812,685 |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases as a percentage of originations |
|
76 |
% |
|
80 |
% |
|
80 |
% |
|
77 |
% |
|
78 |
% |
Refinances as a percentage of originations |
|
24 |
|
|
20 |
|
|
20 |
|
|
23 |
|
|
22 |
|
Total |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
Production Margin: |
|
|
|
|
|
|
|
|
|
|
Production revenue (B) (1) |
|
$ |
25,253 |
|
|
$ |
27,814 |
|
|
$ |
24,038 |
|
|
$ |
73,593 |
|
|
$ |
69,855 |
|
Production margin (B / A) |
|
2.19 |
% |
|
2.54 |
% |
|
2.51 |
% |
|
2.43 |
% |
|
2.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
Mortgage Servicing: |
|
|
|
|
|
|
|
|
|
|
Loans serviced for others (C) |
|
$ |
5,904,300 |
|
|
$ |
5,228,699 |
|
|
$ |
2,622,411 |
|
|
|
|
|
MSRs, at fair value (D) |
|
74,530 |
|
|
63,194 |
|
|
29,414 |
|
|
|
|
|
Percentage of MSRs to loans serviced for others (D / C) |
|
1.26 |
% |
|
1.21 |
% |
|
1.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Mortgage Banking Revenue: |
|
|
|
|
|
|
|
|
|
|
Production revenue |
|
$ |
25,253 |
|
|
$ |
27,814 |
|
|
$ |
24,038 |
|
|
$ |
73,593 |
|
|
$ |
69,855 |
|
MSR capitalization, net of payoffs and paydowns |
|
10,249 |
|
|
6,525 |
|
|
4,308 |
|
|
19,731 |
|
|
11,531 |
|
MSR fair value adjustments |
|
1,077 |
|
|
2,097 |
|
|
(2,201 |
) |
|
7,307 |
|
|
(1,220 |
) |
Servicing income |
|
3,942 |
|
|
3,505 |
|
|
1,702 |
|
|
10,352 |
|
|
4,475 |
|
Other |
|
1,493 |
|
|
(107 |
) |
|
337 |
|
|
1,825 |
|
|
1,420 |
|
Total mortgage banking revenue |
|
$ |
42,014 |
|
|
$ |
39,834 |
|
|
$ |
28,184 |
|
|
$ |
112,808 |
|
|
$ |
86,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 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. There were no outstanding call option
contracts at September 30, 2018, June 30, 2018 or
September 30, 2017.
The increase in miscellaneous non-interest income in
the current quarter as compared to the second quarter of
2018 is primarily due to higher card-based fees and higher
income from investments in partnerships.
NON-INTEREST EXPENSE
The following table presents non-interest expense by category
for the periods presented:
|
|
Three Months
Ended |
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
Q3 2018 compared to
Q2 2018 |
|
Q3 2018 compared to
Q3 2017 |
(Dollars in thousands) |
|
2018 |
|
2018 |
|
2017 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
69,893 |
|
|
$ |
66,976 |
|
|
$ |
57,689 |
|
|
$ |
2,917 |
|
|
4 |
% |
|
$ |
12,204 |
|
|
21 |
% |
Commissions and incentive compensation |
|
34,046 |
|
|
35,907 |
|
|
32,095 |
|
|
(1,861 |
) |
|
(5 |
) |
|
1,951 |
|
|
6 |
|
Benefits |
|
19,916 |
|
|
18,792 |
|
|
16,467 |
|
|
1,124 |
|
|
6 |
|
|
3,449 |
|
|
21 |
|
Total salaries and employee benefits |
|
123,855 |
|
|
121,675 |
|
|
106,251 |
|
|
2,180 |
|
|
2 |
|
|
17,604 |
|
|
17 |
|
Equipment |
|
10,827 |
|
|
10,527 |
|
|
9,947 |
|
|
300 |
|
|
3 |
|
|
880 |
|
|
9 |
|
Operating lease equipment depreciation |
|
7,370 |
|
|
6,940 |
|
|
6,794 |
|
|
430 |
|
|
6 |
|
|
576 |
|
|
8 |
|
Occupancy, net |
|
14,404 |
|
|
13,663 |
|
|
13,079 |
|
|
741 |
|
|
5 |
|
|
1,325 |
|
|
10 |
|
Data processing |
|
9,335 |
|
|
8,752 |
|
|
7,851 |
|
|
583 |
|
|
7 |
|
|
1,484 |
|
|
19 |
|
Advertising and marketing |
|
11,120 |
|
|
11,782 |
|
|
9,572 |
|
|
(662 |
) |
|
(6 |
) |
|
1,548 |
|
|
16 |
|
Professional fees |
|
9,914 |
|
|
6,484 |
|
|
6,786 |
|
|
3,430 |
|
|
53 |
|
|
3,128 |
|
|
46 |
|
Amortization of other intangible assets |
|
1,163 |
|
|
997 |
|
|
1,068 |
|
|
166 |
|
|
17 |
|
|
95 |
|
|
9 |
|
FDIC insurance |
|
4,205 |
|
|
4,598 |
|
|
3,877 |
|
|
(393 |
) |
|
(9 |
) |
|
328 |
|
|
8 |
|
OREO expense, net |
|
596 |
|
|
980 |
|
|
590 |
|
|
(384 |
) |
|
(39 |
) |
|
6 |
|
|
1 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
1,059 |
|
|
1,174 |
|
|
990 |
|
|
(115 |
) |
|
(10 |
) |
|
69 |
|
|
7 |
|
Postage |
|
2,205 |
|
|
2,567 |
|
|
1,814 |
|
|
(362 |
) |
|
(14 |
) |
|
391 |
|
|
22 |
|
Miscellaneous |
|
17,584 |
|
|
16,630 |
|
|
14,956 |
|
|
954 |
|
|
6 |
|
|
2,628 |
|
|
18 |
|
Total other |
|
20,848 |
|
|
20,371 |
|
|
17,760 |
|
|
477 |
|
|
2 |
|
|
3,088 |
|
|
17 |
|
Total Non-Interest Expense |
|
$ |
213,637 |
|
|
$ |
206,769 |
|
|
$ |
183,575 |
|
|
$ |
6,868 |
|
|
3 |
% |
|
$ |
30,062 |
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended |
|
|
|
|
|
|
September 30, |
|
September 30, |
|
$ |
|
% |
(Dollars in thousands) |
|
2018 |
|
2017 |
|
Change |
|
Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
|
Salaries |
|
$ |
198,855 |
|
|
$ |
167,912 |
|
|
$ |
30,943 |
|
|
18 |
% |
Commissions and incentive compensation |
|
101,902 |
|
|
92,788 |
|
|
9,114 |
|
|
10 |
|
Benefits |
|
57,209 |
|
|
51,369 |
|
|
5,840 |
|
|
11 |
|
Total salaries and employee benefits |
|
357,966 |
|
|
312,069 |
|
|
45,897 |
|
|
15 |
|
Equipment |
|
31,426 |
|
|
28,858 |
|
|
2,568 |
|
|
9 |
|
Operating lease equipment depreciation |
|
20,843 |
|
|
17,092 |
|
|
3,751 |
|
|
22 |
|
Occupancy, net |
|
41,834 |
|
|
38,766 |
|
|
3,068 |
|
|
8 |
|
Data processing |
|
26,580 |
|
|
23,580 |
|
|
3,000 |
|
|
13 |
|
Advertising and marketing |
|
31,726 |
|
|
23,448 |
|
|
8,278 |
|
|
35 |
|
Professional fees |
|
23,047 |
|
|
18,956 |
|
|
4,091 |
|
|
22 |
|
Amortization of other intangible assets |
|
3,164 |
|
|
3,373 |
|
|
(209 |
) |
|
(6 |
) |
FDIC insurance |
|
13,165 |
|
|
11,907 |
|
|
1,258 |
|
|
11 |
|
OREO expense, net |
|
4,502 |
|
|
2,994 |
|
|
1,508 |
|
|
50 |
|
Other: |
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
3,485 |
|
|
3,121 |
|
|
364 |
|
|
12 |
|
Postage |
|
6,638 |
|
|
5,336 |
|
|
1,302 |
|
|
24 |
|
Miscellaneous |
|
50,379 |
|
|
45,737 |
|
|
4,642 |
|
|
10 |
|
Total other |
|
60,502 |
|
|
54,194 |
|
|
6,308 |
|
|
12 |
|
Total Non-Interest Expense |
|
$ |
614,755 |
|
|
$ |
535,237 |
|
|
$ |
79,518 |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notable contributions to the change in
non-interest expense are as follows:
Salaries and employee benefits expense increased
in the current quarter compared to the second quarter of 2018
primarily as a result of higher salaries and benefits. The increase
in salaries is primarily due to additional salaries as the Company
grows as well as the acquisition of Delaware Place Bank. The
increase in employee benefits expense was primarily the result of
higher employee insurance costs.
The increase in professional fees during the
third quarter of 2018 compared to the second quarter of 2018
related primarily to higher consulting fees. The increase in
consulting fees was driven by certain consulting agreements paid in
relation to the acquisition of Delaware Place Bank totaling $2.1
million. Approximately $147,000 of additional payments will be made
in the fourth quarter related to these agreements. Professional
fees include legal, audit and tax fees, external loan review costs,
consulting and regulatory exam assessments.
INCOME TAXES
The Company recorded income tax expense of $30.9
million in the third quarter of 2018 compared to $32.0 million in
the second quarter of 2018 and $38.6 million in the third quarter
of 2017. The effective tax rates were 25.13% in the third quarter
of 2018, 26.33% in the second quarter of 2018 and 37.05% in the
third quarter of 2017. During the nine months ended September 30,
2018, the Company recorded income tax expense of $89.0 million
(25.24% effective tax rate) compared to $105.3 million (35.79%
effective tax rate) for the same period of 2017. The lower
effective tax rates for the 2018 quarterly and year-to-date periods
as compared to 2017 were primarily due to the reduction of the
federal corporate income tax rate effective in 2018 as a result of
the enactment of the Tax Cuts and Jobs Act on December 22, 2017.
The Company recorded $370,000 of excess tax benefits in the third
quarter of 2018 related to share-based compensation and $712,000 in
the second quarter of 2018, compared to $1.1 million in the third
quarter of 2017. Excess tax benefits are expected to be higher in
the first quarter when the majority of the Company's share-based
awards vest, and will fluctuate throughout the year based on the
Company's stock price and timing of employee stock option exercises
and vesting of other share-based awards.
ASSET QUALITY
Allowance for Credit Losses, excluding covered
loans
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
(Dollars in thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Allowance for loan losses at beginning of
period |
|
$ |
143,402 |
|
|
$ |
139,503 |
|
|
$ |
129,591 |
|
|
$ |
137,905 |
|
|
$ |
122,291 |
|
Provision for credit losses |
|
11,042 |
|
|
5,043 |
|
|
7,942 |
|
|
24,431 |
|
|
22,210 |
|
Other adjustments (1) |
|
(18 |
) |
|
(44 |
) |
|
(39 |
) |
|
(102 |
) |
|
(125 |
) |
Reclassification (to) from allowance for unfunded
lending-related commitments |
|
(2 |
) |
|
— |
|
|
94 |
|
|
24 |
|
|
62 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
3,219 |
|
|
2,210 |
|
|
2,265 |
|
|
8,116 |
|
|
3,819 |
|
Commercial real estate |
|
208 |
|
|
155 |
|
|
989 |
|
|
1,176 |
|
|
3,235 |
|
Home equity |
|
561 |
|
|
612 |
|
|
968 |
|
|
1,530 |
|
|
3,224 |
|
Residential real estate |
|
337 |
|
|
180 |
|
|
267 |
|
|
1,088 |
|
|
742 |
|
Premium finance receivables - commercial |
|
2,512 |
|
|
3,254 |
|
|
1,716 |
|
|
10,487 |
|
|
5,021 |
|
Premium finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
144 |
|
|
459 |
|
|
213 |
|
|
732 |
|
|
522 |
|
Total charge-offs |
|
6,981 |
|
|
6,870 |
|
|
6,418 |
|
|
23,129 |
|
|
16,563 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
304 |
|
|
666 |
|
|
801 |
|
|
1,232 |
|
|
1,635 |
|
Commercial real estate |
|
193 |
|
|
2,387 |
|
|
323 |
|
|
4,267 |
|
|
1,153 |
|
Home equity |
|
142 |
|
|
171 |
|
|
178 |
|
|
436 |
|
|
387 |
|
Residential real estate |
|
466 |
|
|
1,522 |
|
|
55 |
|
|
2,028 |
|
|
287 |
|
Premium finance receivables - commercial |
|
1,142 |
|
|
975 |
|
|
499 |
|
|
2,502 |
|
|
1,515 |
|
Premium finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
66 |
|
|
49 |
|
|
93 |
|
|
162 |
|
|
267 |
|
Total recoveries |
|
2,313 |
|
|
5,770 |
|
|
1,949 |
|
|
10,627 |
|
|
5,244 |
|
Net charge-offs |
|
(4,668 |
) |
|
(1,100 |
) |
|
(4,469 |
) |
|
(12,502 |
) |
|
(11,319 |
) |
Allowance for loan losses at period
end |
|
$ |
149,756 |
|
|
$ |
143,402 |
|
|
$ |
133,119 |
|
|
$ |
149,756 |
|
|
$ |
133,119 |
|
Allowance for unfunded
lending-related commitments at period end |
|
1,245 |
|
|
1,243 |
|
|
1,276 |
|
|
1,245 |
|
|
1,276 |
|
Allowance for credit losses at period
end |
|
$ |
151,001 |
|
|
$ |
144,645 |
|
|
$ |
134,395 |
|
|
$ |
151,001 |
|
|
$ |
134,395 |
|
Annualized net charge-offs (recoveries) by
category as a percentage of its own respective
category’s average: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
0.16 |
% |
|
0.09 |
% |
|
0.09 |
% |
|
0.13 |
% |
|
0.05 |
% |
Commercial real estate |
|
0.00 |
|
|
(0.14 |
) |
|
0.04 |
|
|
(0.06 |
) |
|
0.04 |
|
Home equity |
|
0.28 |
|
|
0.29 |
|
|
0.46 |
|
|
0.24 |
|
|
0.54 |
|
Residential real estate |
|
(0.06 |
) |
|
(0.64 |
) |
|
0.11 |
|
|
(0.15 |
) |
|
0.08 |
|
Premium finance receivables - commercial |
|
0.19 |
|
|
0.34 |
|
|
0.18 |
|
|
0.39 |
|
|
0.18 |
|
Premium finance receivables - life insurance |
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
Consumer and other |
|
0.23 |
|
|
1.21 |
|
|
0.37 |
|
|
0.58 |
|
|
0.27 |
|
Total loans, net of unearned
income, excluding covered loans |
|
0.08 |
% |
|
0.02 |
% |
|
0.08 |
% |
|
0.08 |
% |
|
0.07 |
% |
Net charge-offs as a percentage of
the provision for credit losses |
|
42.27 |
% |
|
21.80 |
% |
|
56.27 |
% |
|
51.17 |
% |
|
50.96 |
% |
Loans at period-end, excluding covered
loans |
|
$ |
23,123,951 |
|
|
$ |
22,610,560 |
|
|
$ |
20,912,781 |
|
|
|
|
|
Allowance for loan losses as a percentage of
loans at period end |
|
0.65 |
% |
|
0.63 |
% |
|
0.64 |
% |
|
|
|
|
Allowance for credit losses as a percentage
of loans at period end |
|
0.65 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
|
|
|
(1) Includes $742,000 of allowance
for covered loan losses reclassified as a result of the termination
of all existing loss share agreements with the FDIC during the
fourth quarter of 2017.
The allowance for credit losses, excluding the
allowance for covered loan losses, is comprised of the allowance
for loan losses and the allowance for unfunded lending-related
commitments. The allowance for loan losses is a reserve against
loan amounts that are actually funded and outstanding while the
allowance for unfunded lending-related commitments (separate
liability account) relates to certain amounts that Wintrust is
committed to lend but for which funds have not yet been disbursed.
The provision for credit losses, excluding the provision for
covered loan losses, may contain both a component related to funded
loans (provision for loan losses) and a component related to
lending-related commitments (provision for unfunded loan
commitments and letters of credit).
Net charge-offs as a percentage of loans,
excluding covered loans, for the third quarter of 2018 totaled
eight basis points on an annualized basis compared to two basis
points on an annualized basis in the second quarter of 2018 and
eight basis points on an annualized basis in the third quarter of
2017. Net charge-offs totaled $4.7 million in the third
quarter of 2018, a $3.6 million increase from $1.1 million in the
second quarter of 2018 and a slight increase from $4.5 million in
the third quarter of 2017. The increase in net charge-offs in the
third quarter of 2018 compared to second quarter of 2018 is
primarily the result of higher recoveries within the commercial
real estate and residential real estate portfolios in the second
quarter of 2018. The provision for credit losses, excluding the
provision for covered loan losses, totaled $11.0 million for the
third quarter of 2018 compared to $5.0 million for the second
quarter of 2018 and $7.9 million for the third quarter of 2017. The
provision for credit losses in the third quarter was driven by $7.5
million of specific reserves related to four non-performing credit
relationships.
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 provided a provision for
covered loan losses on covered loans when applicable.
The following table presents the provision for
credit losses and allowance for credit losses by component for the
periods presented, including covered loans:
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
(Dollars in thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Provision for loan losses |
|
$ |
11,040 |
|
|
$ |
5,043 |
|
|
$ |
8,036 |
|
|
$ |
24,455 |
|
|
$ |
22,272 |
|
Provision for unfunded lending-related commitments |
|
2 |
|
|
— |
|
|
(94 |
) |
|
(24 |
) |
|
(62 |
) |
Provision for covered loan losses |
|
— |
|
|
— |
|
|
(46 |
) |
|
— |
|
|
(214 |
) |
Provision for credit losses |
|
$ |
11,042 |
|
|
$ |
5,043 |
|
|
$ |
7,896 |
|
|
$ |
24,431 |
|
|
$ |
21,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
|
|
|
|
September 30, |
|
June 30, |
|
September 30, |
|
|
|
|
|
|
2018 |
|
2018 |
|
2017 |
Allowance for loan losses |
|
|
|
|
|
$ |
149,756 |
|
|
$ |
143,402 |
|
|
$ |
133,119 |
|
Allowance for unfunded lending-related commitments |
|
|
|
|
|
1,245 |
|
|
1,243 |
|
|
1,276 |
|
Allowance for covered loan losses |
|
|
|
|
|
— |
|
|
— |
|
|
758 |
|
Allowance for credit losses |
|
|
|
|
|
$ |
151,001 |
|
|
$ |
144,645 |
|
|
$ |
135,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, excluding covered
loans, as of September 30, 2018 and June 30, 2018.
|
|
As of September 30,
2018 |
|
|
Recorded |
|
Calculated |
|
As a percentage
of its own respective |
(Dollars in thousands) |
|
Investment |
|
Allowance |
|
category’s
balance |
Commercial:(1) |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
4,073,911 |
|
|
$ |
41,543 |
|
|
1.02 |
% |
Asset-based lending |
|
1,032,850 |
|
|
9,389 |
|
|
0.91 |
|
Tax exempt |
|
478,547 |
|
|
3,098 |
|
|
0.65 |
|
Leases |
|
500,052 |
|
|
1,338 |
|
|
0.27 |
|
Commercial real estate:(1) |
|
|
|
|
|
|
Residential construction |
|
39,289 |
|
|
784 |
|
|
2.00 |
|
Commercial construction |
|
754,842 |
|
|
8,452 |
|
|
1.12 |
|
Land |
|
117,616 |
|
|
3,814 |
|
|
3.24 |
|
Office |
|
909,517 |
|
|
6,332 |
|
|
0.70 |
|
Industrial |
|
853,351 |
|
|
5,995 |
|
|
0.70 |
|
Retail |
|
852,351 |
|
|
8,152 |
|
|
0.96 |
|
Multi-family |
|
891,654 |
|
|
8,891 |
|
|
1.00 |
|
Mixed use and other |
|
2,009,861 |
|
|
15,671 |
|
|
0.78 |
|
Home equity(1) |
|
538,209 |
|
|
9,051 |
|
|
1.68 |
|
Residential real estate(1) |
|
887,336 |
|
|
6,121 |
|
|
0.69 |
|
Total core loan
portfolio |
|
$ |
13,939,386 |
|
|
$ |
128,631 |
|
|
0.92 |
% |
Commercial: |
|
|
|
|
|
|
Franchise |
|
$ |
866,885 |
|
|
$ |
8,879 |
|
|
1.02 |
% |
Mortgage warehouse lines of credit |
|
171,860 |
|
|
1,350 |
|
|
0.79 |
|
Community Advantage - homeowner associations |
|
166,941 |
|
|
442 |
|
|
0.26 |
|
Aircraft |
|
2,498 |
|
|
4 |
|
|
0.16 |
|
Purchased non-covered commercial loans
(2) |
|
180,414 |
|
|
702 |
|
|
0.39 |
|
Commercial real estate: |
|
|
|
|
|
|
Purchased non-covered commercial real estate
(2) |
|
318,293 |
|
|
156 |
|
|
0.05 |
|
Purchased non-covered home equity (2) |
|
40,635 |
|
|
92 |
|
|
0.23 |
|
Purchased non-covered residential real estate (2) |
|
36,914 |
|
|
170 |
|
|
0.46 |
|
Premium finance receivables |
|
|
|
|
|
|
U.S. commercial insurance loans |
|
2,532,584 |
|
|
6,027 |
|
|
0.24 |
|
Canada commercial insurance loans
(2) |
|
352,743 |
|
|
541 |
|
|
0.15 |
|
Life insurance loans (1) |
|
4,225,481 |
|
|
1,606 |
|
|
0.04 |
|
Purchased life insurance loans (2) |
|
173,490 |
|
|
— |
|
|
— |
|
Consumer and other (1) |
|
113,320 |
|
|
1,153 |
|
|
1.02 |
|
Purchased non-covered consumer and other (2) |
|
2,507 |
|
|
3 |
|
|
0.12 |
|
Total consumer, niche and
purchased loan portfolio |
|
$ |
9,184,565 |
|
|
$ |
21,125 |
|
|
0.23 |
% |
Total loans, net of unearned
income, excluding covered loans |
|
$ |
23,123,951 |
|
|
$ |
149,756 |
|
|
0.65 |
% |
(1) Excludes purchased loans reported in accordance
with ASC 310-20 and ASC 310-30.
(2) Purchased loans represent loans reported in
accordance with ASC 310-20 and ASC 310-30.
|
|
As of June 30,
2018 |
|
|
Recorded |
|
Calculated |
|
As a percentage
of its own respective |
(Dollars in thousands) |
|
Investment |
|
Allowance |
|
category’s
balance |
Commercial:(1) |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
4,000,272 |
|
|
$ |
36,381 |
|
|
0.91 |
% |
Asset-based lending |
|
1,041,894 |
|
|
8,957 |
|
|
0.86 |
|
Tax exempt |
|
432,435 |
|
|
2,856 |
|
|
0.66 |
|
Leases |
|
456,906 |
|
|
1,237 |
|
|
0.27 |
|
Commercial real estate:(1) |
|
|
|
|
|
|
Residential construction |
|
34,350 |
|
|
709 |
|
|
2.06 |
|
Commercial construction |
|
770,314 |
|
|
8,606 |
|
|
1.12 |
|
Land |
|
113,937 |
|
|
3,714 |
|
|
3.26 |
|
Office |
|
863,448 |
|
|
5,967 |
|
|
0.69 |
|
Industrial |
|
851,584 |
|
|
5,896 |
|
|
0.69 |
|
Retail |
|
836,901 |
|
|
8,047 |
|
|
0.96 |
|
Multi-family |
|
926,475 |
|
|
9,679 |
|
|
1.04 |
|
Mixed use and other |
|
1,876,807 |
|
|
14,811 |
|
|
0.79 |
|
Home equity(1) |
|
547,836 |
|
|
9,437 |
|
|
1.72 |
|
Residential real estate(1) |
|
854,176 |
|
|
6,199 |
|
|
0.73 |
|
Total core loan
portfolio |
|
$ |
13,607,335 |
|
|
$ |
122,496 |
|
|
0.90 |
% |
Commercial: |
|
|
|
|
|
|
Franchise |
|
$ |
881,921 |
|
|
$ |
8,661 |
|
|
0.98 |
% |
Mortgage warehouse lines of credit |
|
200,060 |
|
|
1,598 |
|
|
0.80 |
|
Community Advantage - homeowner associations |
|
169,443 |
|
|
424 |
|
|
0.25 |
|
Aircraft |
|
2,586 |
|
|
3 |
|
|
0.12 |
|
Purchased non-covered commercial loans
(2) |
|
103,543 |
|
|
610 |
|
|
0.59 |
|
Commercial real estate: |
|
|
|
|
|
|
Purchased non-covered commercial real estate
(2) |
|
301,268 |
|
|
231 |
|
|
0.08 |
|
Purchased non-covered home equity (2) |
|
45,664 |
|
|
114 |
|
|
0.25 |
|
Purchased non-covered residential real estate (2) |
|
41,294 |
|
|
137 |
|
|
0.33 |
|
Premium finance receivables |
|
|
|
|
|
|
U.S. commercial insurance loans |
|
2,487,886 |
|
|
5,759 |
|
|
0.23 |
|
Canada commercial insurance loans
(2) |
|
345,566 |
|
|
513 |
|
|
0.15 |
|
Life insurance loans (1) |
|
4,118,666 |
|
|
1,462 |
|
|
0.04 |
|
Purchased life insurance loans (2) |
|
183,622 |
|
|
— |
|
|
— |
|
Consumer and other (1) |
|
119,143 |
|
|
1,390 |
|
|
1.17 |
|
Purchased non-covered consumer and other (2) |
|
2,563 |
|
|
4 |
|
|
0.14 |
|
Total consumer, niche and
purchased loan portfolio |
|
$ |
9,003,225 |
|
|
$ |
20,906 |
|
|
0.23 |
% |
Total loans, net of unearned
income, excluding covered loans |
|
$ |
22,610,560 |
|
|
$ |
143,402 |
|
|
0.63 |
% |
(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 September 30, 2018 and
June 30, 2018.
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.
In addition to the $149.8 million of allowance
for loan losses, there is $3.7 million of non-accretable credit
discount on purchased loans reported in accordance with ASC 310-30
that is available to absorb credit losses.
The tables below show the aging of the Company’s
loan portfolio at September 30, 2018 and June 30,
2018:
|
|
|
|
90+ days |
|
60-89 |
|
30-59 |
|
|
|
|
As of September 30, 2018 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial (1) |
|
$ |
58,587 |
|
|
$ |
8,494 |
|
|
$ |
6,140 |
|
|
$ |
25,614 |
|
|
$ |
7,375,123 |
|
|
$ |
7,473,958 |
|
Commercial real estate (1) |
|
17,515 |
|
|
5,578 |
|
|
27,040 |
|
|
44,084 |
|
|
6,652,557 |
|
|
6,746,774 |
|
Home equity |
|
8,523 |
|
|
— |
|
|
1,075 |
|
|
3,478 |
|
|
565,768 |
|
|
578,844 |
|
Residential real estate (1) |
|
16,062 |
|
|
1,865 |
|
|
1,714 |
|
|
603 |
|
|
904,006 |
|
|
924,250 |
|
Premium finance receivables - commercial |
|
13,802 |
|
|
7,028 |
|
|
5,945 |
|
|
13,239 |
|
|
2,845,313 |
|
|
2,885,327 |
|
Premium finance receivables - life insurance (1) |
|
— |
|
|
— |
|
|
— |
|
|
22,016 |
|
|
4,376,955 |
|
|
4,398,971 |
|
Consumer and other (1) |
|
355 |
|
|
295 |
|
|
430 |
|
|
329 |
|
|
114,418 |
|
|
115,827 |
|
Total loans, net of unearned income |
|
$ |
114,844 |
|
|
$ |
23,260 |
|
|
$ |
42,344 |
|
|
$ |
109,363 |
|
|
$ |
22,834,140 |
|
|
$ |
23,123,951 |
|
As of September 30, 2018
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 (1) |
|
0.8 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.3 |
% |
|
98.7 |
% |
|
100.0 |
% |
Commercial real estate (1) |
|
0.3 |
|
|
0.1 |
|
|
0.4 |
|
|
0.7 |
|
|
98.5 |
|
|
100.0 |
|
Home equity |
|
1.5 |
|
|
— |
|
|
0.2 |
|
|
0.6 |
|
|
97.7 |
|
|
100.0 |
|
Residential real estate (1) |
|
1.7 |
|
|
0.2 |
|
|
0.2 |
|
|
0.1 |
|
|
97.8 |
|
|
100.0 |
|
Premium finance receivables - commercial |
|
0.5 |
|
|
0.2 |
|
|
0.2 |
|
|
0.5 |
|
|
98.6 |
|
|
100.0 |
|
Premium finance receivables - life insurance (1) |
|
— |
|
|
— |
|
|
— |
|
|
0.5 |
|
|
99.5 |
|
|
100.0 |
|
Consumer and other (1) |
|
0.3 |
|
|
0.3 |
|
|
0.4 |
|
|
0.3 |
|
|
98.7 |
|
|
100.0 |
|
Total loans, net of unearned income |
|
0.5 |
% |
|
0.1 |
% |
|
0.2 |
% |
|
0.5 |
% |
|
98.7 |
% |
|
100.0 |
% |
(1) Including PCI loans. PCI loans represent loans acquired
with evidence of credit quality deterioration since origination, in
accordance with ASC 310-30. Loan agings are based upon
contractually required payments.
|
|
|
|
90+ days |
|
60-89 |
|
30-59 |
|
|
|
|
As of June 30, 2018 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial (1) |
|
$ |
18,388 |
|
|
$ |
882 |
|
|
$ |
3,064 |
|
|
$ |
15,923 |
|
|
$ |
7,250,803 |
|
|
$ |
7,289,060 |
|
Commercial real estate (1) |
|
19,195 |
|
|
3,194 |
|
|
4,119 |
|
|
27,682 |
|
|
6,520,894 |
|
|
6,575,084 |
|
Home equity |
|
9,096 |
|
|
— |
|
|
— |
|
3,226 |
|
|
581,178 |
|
|
593,500 |
|
Residential real estate (1) |
|
15,825 |
|
|
1,472 |
|
|
3,637 |
|
|
1,534 |
|
|
873,002 |
|
|
895,470 |
|
Premium finance receivables - commercial |
|
14,832 |
|
|
5,159 |
|
|
8,848 |
|
|
10,535 |
|
|
2,794,078 |
|
|
2,833,452 |
|
Premium finance receivables - life insurance (1) |
|
— |
|
|
— |
|
|
26,770 |
|
|
17,211 |
|
|
4,258,307 |
|
|
4,302,288 |
|
Consumer and other (1) |
|
563 |
|
|
286 |
|
|
150 |
|
|
310 |
|
|
120,397 |
|
|
121,706 |
|
Total loans, net of unearned income |
|
$ |
77,899 |
|
|
$ |
10,993 |
|
|
$ |
46,588 |
|
|
$ |
76,421 |
|
|
$ |
22,398,659 |
|
|
$ |
22,610,560 |
|
As of June 31, 2018
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 (1) |
|
0.3 |
% |
|
— |
% |
|
— |
% |
|
0.2 |
% |
|
99.5 |
% |
|
100.0 |
% |
Commercial real estate (1) |
|
0.3 |
|
|
— |
|
|
0.1 |
|
|
0.4 |
|
|
99.2 |
|
|
100.0 |
|
Home equity |
|
1.5 |
|
|
— |
|
|
— |
|
|
0.5 |
|
|
98.0 |
|
|
100.0 |
|
Residential real estate (1) |
|
1.8 |
|
|
0.2 |
|
|
0.4 |
|
|
0.2 |
|
|
97.4 |
|
|
100.0 |
|
Premium finance receivables - commercial |
|
0.5 |
|
|
0.2 |
|
|
0.3 |
|
|
0.4 |
|
|
98.6 |
|
|
100.0 |
|
Premium finance receivables - life insurance (1) |
|
— |
|
|
— |
|
|
0.6 |
|
|
0.4 |
|
|
99.0 |
|
|
100.0 |
|
Consumer and other (1) |
|
0.5 |
|
|
0.2 |
|
|
0.1 |
|
|
0.3 |
|
|
98.9 |
|
|
100.0 |
|
Total loans, net of unearned income |
|
0.3 |
% |
|
— |
% |
|
0.2 |
% |
|
0.3 |
% |
|
99.2 |
% |
|
100.0 |
% |
(1) Including PCI loans. PCI loans represent
loans acquired with evidence of credit quality deterioration since
origination, in accordance with ASC 310-30. Loan agings are
based upon contractually required payments.
As of September 30, 2018, $42.3 million of
all loans, or 0.2%, were 60 to 89 days past due and $109.4 million,
or 0.5%, were 30 to 59 days (or one payment) past due. As of
June 30, 2018, $46.6 million of all loans, or 0.2%, were 60 to
89 days past due and $76.4 million, or 0.3%, were 30 to 59 days (or
one payment) past due. The majority of the commercial and
commercial real estate loans shown as 60 to 89 days and 30 to 59
days past due are included on the Company’s internal problem loan
reporting system. Loans on this system are closely monitored by
management on a monthly basis. All loans within the life insurance
premium financing portfolio shown as 60 to 89 days and 30 to 59
days past due (four and nine credits, respectively) remain fully
secured.
The Company’s home equity and residential loan
portfolios continue to exhibit low delinquency ratios. Home equity
loans at September 30, 2018 that are current with regard to
the contractual terms of the loan agreement represent 97.7% of the
total home equity portfolio. Residential real estate loans at
September 30, 2018 that are current with regards to the
contractual terms of the loan agreements comprise 97.8% of total
residential real estate loans outstanding.
Non-performing Assets, excluding covered
assets
The following table sets forth Wintrust’s
non-performing assets and troubled debt restructurings ("TDRs")
performing under the contractual terms of the loan agreement,
excluding covered assets and non-covered PCI loans, at the dates
indicated.
|
|
September 30, |
|
June 30, |
|
September 30, |
(Dollars in thousands) |
|
2018 |
|
2018 |
|
2017 |
Loans past due greater than 90 days and still
accruing(1): |
|
|
|
|
|
|
Commercial |
|
$ |
5,122 |
|
|
$ |
— |
|
|
$ |
— |
|
Commercial real estate |
|
— |
|
|
— |
|
|
— |
|
Home equity |
|
— |
|
|
— |
|
|
— |
|
Residential real estate |
|
— |
|
|
— |
|
|
— |
|
Premium finance receivables - commercial |
|
7,028 |
|
|
5,159 |
|
|
9,584 |
|
Premium finance receivables - life insurance |
|
— |
|
|
— |
|
|
6,740 |
|
Consumer and other |
|
233 |
|
|
224 |
|
|
159 |
|
Total loans past due greater than 90 days and still
accruing |
|
12,383 |
|
|
5,383 |
|
|
16,483 |
|
Non-accrual loans(2): |
|
|
|
|
|
|
Commercial |
|
58,587 |
|
|
18,388 |
|
|
13,931 |
|
Commercial real estate |
|
17,515 |
|
|
19,195 |
|
|
14,878 |
|
Home equity |
|
8,523 |
|
|
9,096 |
|
|
7,581 |
|
Residential real estate |
|
16,062 |
|
|
15,825 |
|
|
14,743 |
|
Premium finance receivables - commercial |
|
13,802 |
|
|
14,832 |
|
|
9,827 |
|
Premium finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
355 |
|
|
563 |
|
|
540 |
|
Total non-accrual loans |
|
114,844 |
|
|
77,899 |
|
|
61,500 |
|
Total non-performing loans: |
|
|
|
|
|
|
Commercial |
|
63,709 |
|
|
18,388 |
|
|
13,931 |
|
Commercial real estate |
|
17,515 |
|
|
19,195 |
|
|
14,878 |
|
Home equity |
|
8,523 |
|
|
9,096 |
|
|
7,581 |
|
Residential real estate |
|
16,062 |
|
|
15,825 |
|
|
14,743 |
|
Premium finance receivables - commercial |
|
20,830 |
|
|
19,991 |
|
|
19,411 |
|
Premium finance receivables - life insurance |
|
— |
|
|
— |
|
|
6,740 |
|
Consumer and other |
|
588 |
|
|
787 |
|
|
699 |
|
Total non-performing loans |
|
$ |
127,227 |
|
|
$ |
83,282 |
|
|
$ |
77,983 |
|
Other real estate owned |
|
14,924 |
|
|
18,925 |
|
|
17,312 |
|
Other real estate owned - from acquisitions |
|
13,379 |
|
|
16,406 |
|
|
20,066 |
|
Other repossessed assets |
|
294 |
|
|
305 |
|
|
301 |
|
Total non-performing assets |
|
$ |
155,824 |
|
|
$ |
118,918 |
|
|
$ |
115,662 |
|
TDRs performing under the contractual terms of the
loan agreement |
|
$ |
31,487 |
|
|
$ |
57,249 |
|
|
$ |
26,972 |
|
Total non-performing loans by category as a percent
of its own respective category’s period-end
balance: |
|
|
|
|
|
|
Commercial |
|
0.85 |
% |
|
0.25 |
% |
|
0.22 |
% |
Commercial real estate |
|
0.26 |
|
|
0.29 |
|
|
0.23 |
|
Home equity |
|
1.47 |
|
|
1.53 |
|
|
1.13 |
|
Residential real estate |
|
1.74 |
|
|
1.77 |
|
|
1.87 |
|
Premium finance receivables - commercial |
|
0.72 |
|
|
0.71 |
|
|
0.73 |
|
Premium finance receivables - life insurance |
|
— |
|
|
— |
|
|
0.18 |
|
Consumer and other |
|
0.51 |
|
|
0.65 |
|
|
0.53 |
|
Total loans, net of unearned income |
|
0.55 |
% |
|
0.37 |
% |
|
0.37 |
% |
Total non-performing assets as a percentage of total
assets |
|
0.52 |
% |
|
0.40 |
% |
|
0.42 |
% |
Allowance for loan losses as a percentage of total
non-performing loans |
|
117.71 |
% |
|
172.19 |
% |
|
170.70 |
% |
(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 $34.7 million, $8.1 million and $6.2 million as of
September 30, 2018, June 30, 2018 and September 30,
2017, respectively.
The ratio of non-performing assets to total
assets was 0.52% as of September 30, 2018, compared to 0.40%
at June 30, 2018, and 0.42% at September 30, 2017.
Non-performing assets, excluding covered assets and non-covered PCI
loans, totaled $155.8 million at September 30, 2018, compared
to $118.9 million at June 30, 2018 and $115.7 million at
September 30, 2017. Non-performing loans, excluding covered
loans and non-covered PCI loans, totaled $127.2 million, or 0.55%
of total loans, at September 30, 2018 compared to $83.3
million, or 0.37% of total loans, at June 30, 2018 and $78.0
million, or 0.37% of total loans, at September 30, 2017. The
increase in the current quarter is primarily the result of four
credit relationships within the commercial portfolio totaling $46.6
million becoming non-performing during the third quarter. OREO,
excluding covered OREO, of $28.3 million at September 30, 2018
decreased $7.0 million compared to $35.3 million at June 30,
2018 and decreased $9.1 million compared to $37.4 million at
September 30, 2017.
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 and non-covered PCI loans, for the periods presented:
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
September 30, |
(Dollars in thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Balance at beginning of period |
|
$ |
83,282 |
|
|
$ |
89,690 |
|
|
$ |
69,050 |
|
|
$ |
90,162 |
|
|
$ |
87,454 |
|
Additions, net, from non-covered portfolio |
|
56,864 |
|
|
10,403 |
|
|
10,622 |
|
|
73,875 |
|
|
30,119 |
|
Return to performing status |
|
(3,782 |
) |
|
(759 |
) |
|
(603 |
) |
|
(8,294 |
) |
|
(3,170 |
) |
Payments received |
|
(6,212 |
) |
|
(4,589 |
) |
|
(6,633 |
) |
|
(13,370 |
) |
|
(22,931 |
) |
Transfer to OREO and other repossessed assets |
|
(659 |
) |
|
(3,528 |
) |
|
(1,072 |
) |
|
(6,168 |
) |
|
(5,276 |
) |
Charge-offs |
|
(3,108 |
) |
|
(1,968 |
) |
|
(2,295 |
) |
|
(8,631 |
) |
|
(7,919 |
) |
Net change for niche loans (1) |
|
842 |
|
|
(5,967 |
) |
|
8,914 |
|
|
(347 |
) |
|
(294 |
) |
Balance at end of period |
|
$ |
127,227 |
|
|
$ |
83,282 |
|
|
$ |
77,983 |
|
|
$ |
127,227 |
|
|
$ |
77,983 |
|
(1) This includes activity for premium finance
receivables and indirect consumer loans.
TDRs
The table below presents a summary of TDRs as of
the respective date, presented by loan category and accrual
status:
|
|
September 30, |
|
June 30, |
|
September 30, |
(Dollars in thousands) |
|
2018 |
|
2018 |
|
2017 |
Accruing TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
8,794 |
|
|
$ |
37,560 |
|
|
$ |
3,774 |
|
Commercial real estate |
|
14,160 |
|
|
15,086 |
|
|
16,475 |
|
Residential real estate and other |
|
8,533 |
|
|
4,603 |
|
|
6,723 |
|
Total accrual |
|
$ |
31,487 |
|
|
$ |
57,249 |
|
|
$ |
26,972 |
|
Non-accrual TDRs: (1) |
|
|
|
|
|
|
Commercial |
|
$ |
30,452 |
|
|
$ |
1,671 |
|
|
$ |
2,493 |
|
Commercial real estate |
|
1,326 |
|
|
1,362 |
|
|
1,492 |
|
Residential real estate and other |
|
2,954 |
|
|
5,028 |
|
|
2,226 |
|
Total non-accrual |
|
$ |
34,732 |
|
|
$ |
8,061 |
|
|
$ |
6,211 |
|
Total TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
39,246 |
|
|
$ |
39,231 |
|
|
$ |
6,267 |
|
Commercial real estate |
|
15,486 |
|
|
16,448 |
|
|
17,967 |
|
Residential real estate and other |
|
11,487 |
|
|
9,631 |
|
|
8,949 |
|
Total TDRs |
|
$ |
66,219 |
|
|
$ |
65,310 |
|
|
$ |
33,183 |
|
Weighted-average contractual interest rate of
TDRs |
|
5.48 |
% |
|
5.46 |
% |
|
4.39 |
% |
(1) Included in total non-performing
loans.
Other Real Estate Owned
The table below presents a summary of other real
estate owned, excluding covered other real estate owned, as of
September 30, 2018, June 30, 2018 and September 30,
2017, and shows the activity for the respective period and the
balance for each property type:
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
(Dollars in thousands) |
|
2018 |
|
2018 |
|
2017 |
Balance at beginning of period |
|
$ |
35,331 |
|
|
$ |
36,598 |
|
|
$ |
39,361 |
|
Disposals/resolved |
|
(7,291 |
) |
|
(4,557 |
) |
|
(2,391 |
) |
Transfers in at fair value, less costs to sell |
|
349 |
|
|
4,801 |
|
|
898 |
|
Additions from acquisition |
|
1,418 |
|
|
— |
|
|
— |
|
Fair value adjustments |
|
(1,504 |
) |
|
(1,511 |
) |
|
(490 |
) |
Balance at end of period |
|
$ |
28,303 |
|
|
$ |
35,331 |
|
|
$ |
37,378 |
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
September 30, |
|
June 30, |
|
September 30, |
Balance by Property Type |
|
2018 |
|
2018 |
|
2017 |
Residential real estate |
|
$ |
3,735 |
|
|
$ |
5,155 |
|
|
$ |
7,236 |
|
Residential real estate development |
|
1,952 |
|
|
2,205 |
|
|
676 |
|
Commercial real estate |
|
22,616 |
|
|
27,971 |
|
|
29,466 |
|
Total |
|
$ |
28,303 |
|
|
$ |
35,331 |
|
|
$ |
37,378 |
|
Items Impacting Comparative Financial
Results:
Acquisitions
On August 1, 2018, the Company completed its
acquisition of Chicago Shore Corporation ("CSC"). CSC was the
parent company of Delaware Place Bank. Through this transaction,
the Company acquired Delaware Place Bank's one banking location in
Chicago, Illinois, approximately $280 million in assets and
approximately $213 million in deposits.
On January 4, 2018, the Company acquired certain
assets and assumed certain liabilities of the mortgage banking
business of Veterans First, in a business combination. The Company
also acquired mortgage servicing rights assets from Veterans First
on approximately 10,000 loans, totaling an estimated $1.6 billion
in unpaid principal balance. Veterans First is a consumer direct
lender with three offices, operating two in Salt Lake City and one
in San Diego, and originated in excess of $800 million in loans in
2017.
On February 14, 2017, the Company acquired
certain assets and assumed certain liabilities of the mortgage
banking business of American Homestead Mortgage, LLC ("AHM"), in a
business combination. AHM is located in Montana's Flathead Valley
and originated approximately $55 million of residential mortgage
loans in 2016.
Termination of Loss Share
Agreements
On October 16, 2017, the Company entered in
agreements with the FDIC that terminated all existing loss share
agreements with the FDIC. The loss share agreements were
related to the Company’s acquisition of assets and assumption of
liabilities of eight failed banks through FDIC assisted
transactions in 2010, 2011 and 2012.
Under terms of the agreements, the Company made
a net payment of $15.2 million to the FDIC as consideration for the
early termination of the loss share agreements. The Company
recorded a pre-tax gain of approximately $0.4 million in the fourth
quarter of 2017 to write off the remaining loss share asset,
relieve the claw-back liability and recognize the payment to the
FDIC.
Approximately $0.2 million of the remaining net
indemnification liabilities that were scheduled to be amortized
against future earnings did not occur for the remainder of the
fourth quarter of 2017. Additionally, $0.8 million, $0.8 million
and $0.7 million each year in 2018, 2019 and 2020, respectively, of
previously scheduled amortization will not occur.
The termination of the FDIC loss share
agreements has no effect on yields of the loans that were
previously covered under these agreements. Subsequent to this
transaction, the Company is solely responsible for all future
charge-offs, recoveries, gains, losses and expenses related to the
previously covered assets as the FDIC will no longer share in those
amounts.
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, N.A., 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
Addison, Algonquin, Aurora, Bloomingdale, Buffalo Grove, Cary,
Clarendon Hills, Crete, Deerfield, Des Plaines, Downers Grove,
Elgin, Elk Grove Village, Elmhurst, Evanston, 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, Rolling Meadows, 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, Menomonee Falls,
Milwaukee, Monroe, Pewaukee, Racine, Sharon, Wales, Walworth and
Wind Lake, Wisconsin and Dyer, Indiana.
Additionally, the Company operates various non-bank business
units:
- FIRST Insurance Funding, a division
of Lake Forest Bank & Trust Company, N.A., and Wintrust Life
Finance, a division of Lake Forest Bank & Trust Company, N.A.,
serve commercial and life insurance loan customers, respectively,
throughout the United States.
- 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, N.A., 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.
- Wintrust 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 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,” “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 2017
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:
- economic conditions that affect the
economy, housing prices, the job market and other factors that may
adversely affect the Company’s liquidity and the performance of its
loan portfolios, particularly in the markets in which it
operates;
- the extent of defaults and losses
on the Company’s loan portfolio, which may require further
increases in its allowance for credit losses;
- estimates of fair value of certain
of the Company’s assets and liabilities, which could change in
value significantly from period to period;
- the financial success and economic
viability of the borrowers of our commercial loans;
- commercial real estate market
conditions in the Chicago metropolitan area and southern
Wisconsin;
- the extent of commercial and
consumer delinquencies and declines in real estate values, which
may require further increases in the Company’s allowance for loan
and lease losses;
- inaccurate assumptions in our
analytical and forecasting models used to manage our loan
portfolio;
- changes in the level and volatility
of interest rates, the capital markets and other market indices
that may affect, among other things, the Company’s liquidity and
the value of its assets and liabilities;
- competitive pressures in the
financial services business which may affect the pricing of the
Company’s loan and deposit products as well as its services
(including wealth management services), which may result in loss of
market share and reduced income from deposits, loans, advisory fees
and income from other products;
- failure to identify and complete favorable acquisitions in the
future or unexpected difficulties or developments related to the
integration of the Company’s recent or future acquisitions;
- unexpected difficulties and losses
related to FDIC-assisted acquisitions;
- harm to the Company’s
reputation;
- any negative perception of the
Company’s financial strength;
- ability of the Company to raise
additional capital on acceptable terms when needed;
- disruption in capital markets,
which may lower fair values for the Company’s investment
portfolio;
- ability of the Company to use
technology to provide products and services that will satisfy
customer demands and create efficiencies in operations and to
manage risks associated therewith;
- failure or breaches of our security
systems or infrastructure, or those of third parties;
- security breaches, including denial
of service attacks, hacking, social engineering attacks, malware
intrusion or data corruption attempts and identity theft;
- adverse effects on our information
technology systems resulting from failures, human error or
cyberattacks;
- adverse effects of failures by our
vendors to provide agreed upon services in the manner and at the
cost agreed, particularly our information technology vendors;
- increased costs as a result of
protecting our customers from the impact of stolen debit card
information;
- accuracy and completeness of
information the Company receives about customers and counterparties
to make credit decisions;
- ability of the Company to attract
and retain senior management experienced in the banking and
financial services industries;
- environmental liability risk
associated with lending activities;
- the impact of any claims or legal
actions to which the Company is subject, including any effect on
our reputation;
- losses incurred in connection with
repurchases and indemnification payments related to mortgages and
increases in reserves associated therewith;
- the loss of customers as a result
of technological changes allowing consumers to complete their
financial transactions without the use of a bank;
- the soundness of other financial
institutions;
- the expenses and delayed returns
inherent in opening new branches and de novo banks;
- examinations and challenges by tax
authorities, and any unanticipated impact of the Tax Act;
- changes in accounting standards,
rules and interpretations such as the new CECL standard, and the
impact on the Company’s financial statements;
- the ability of the Company to
receive dividends from its subsidiaries;
- uncertainty about the future of
LIBOR;
- a decrease in the Company’s capital
ratios, including as a result of declines in the value of its loan
portfolios, or otherwise;
- legislative or regulatory changes,
particularly changes in regulation of financial services companies
and/or the products and services offered by financial services
companies;
- a lowering of our credit
rating;
- changes in U.S. monetary policy and
changes to the Federal Reserve’s balance sheet as a result of the
end of its program of quantitative easing or otherwise;
- restrictions upon our ability to
market our products to consumers and limitations on our ability to
profitably operate our mortgage business resulting from the
Dodd-Frank Act;
- increased costs of compliance,
heightened regulatory capital requirements and other risks
associated with changes in regulation and the regulatory
environment;
- the impact of heightened capital
requirements;
- increases in the Company’s FDIC
insurance premiums, or the collection of special assessments by the
FDIC;
- delinquencies or fraud with respect
to the Company’s premium finance business;
- credit downgrades among commercial
and life insurance providers that could negatively affect the value
of collateral securing the Company’s premium finance loans;
- the Company’s ability to comply
with covenants under its credit facility; and
- fluctuations in the stock market,
which may have an adverse impact on the Company’s wealth management
business and brokerage operation.
Therefore, there can be no assurances that
future actual results will correspond to these forward-looking
statements. The reader is cautioned not to place undue reliance on
any forward-looking statement made by the Company. Any such
statement speaks only as of the date the statement was made or as
of such date that may be referenced within the statement. The
Company undertakes no obligation to update any forward-looking
statement to reflect the impact of circumstances 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 10:00
a.m. (Central Time) on Thursday, October 18, 2018 regarding third
quarter and year-to-date 2018 results. Individuals interested in
listening should call (877) 363-5049 and enter Conference ID
#9544149. 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
third quarter and year-to-date 2018 earnings press release will be
available on the home page of the Company’s website at
http://www.wintrust.com and at the Investor Relations, Investor
News and Events, Press Releases link on its website.
WINTRUST FINANCIAL
CORPORATION
Supplemental Financial
Information
5 Quarter Trends
WINTRUST FINANCIAL CORPORATION -
Supplemental Financial Information
Selected Financial Highlights - 5 Quarter
Trends
(Dollars in thousands, except per share data)
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
2018 |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
Selected Financial Condition Data (at end of
period): |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
|
$ |
27,915,970 |
|
|
$ |
27,358,162 |
|
Total loans, excluding covered loans (7) |
|
23,123,951 |
|
|
22,610,560 |
|
|
22,062,134 |
|
|
21,640,797 |
|
|
20,912,781 |
|
Total deposits |
|
24,916,715 |
|
|
24,365,479 |
|
|
23,279,327 |
|
|
23,183,347 |
|
|
22,895,063 |
|
Junior subordinated debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Total shareholders’ equity |
|
3,179,822 |
|
|
3,106,871 |
|
|
3,031,250 |
|
|
2,976,939 |
|
|
2,908,925 |
|
Selected Statements of Income Data: |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
247,563 |
|
|
238,170 |
|
|
225,082 |
|
|
219,099 |
|
|
215,988 |
|
Net revenue (1) |
|
347,493 |
|
|
333,403 |
|
|
310,761 |
|
|
300,137 |
|
|
295,719 |
|
Net income |
|
91,948 |
|
|
89,580 |
|
|
81,981 |
|
|
68,781 |
|
|
65,626 |
|
Net income per common share – Basic |
|
$ |
1.59 |
|
|
$ |
1.55 |
|
|
$ |
1.42 |
|
|
$ |
1.19 |
|
|
$ |
1.14 |
|
Net income per common share – Diluted |
|
$ |
1.57 |
|
|
$ |
1.53 |
|
|
$ |
1.40 |
|
|
$ |
1.17 |
|
|
$ |
1.12 |
|
Selected Financial Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
3.59 |
% |
|
3.61 |
% |
|
3.54 |
% |
|
3.45 |
% |
|
3.43 |
% |
Net interest margin - fully taxable equivalent (non-GAAP)
(2) |
|
3.61 |
% |
|
3.63 |
% |
|
3.56 |
% |
|
3.49 |
% |
|
3.46 |
% |
Non-interest income to average assets |
|
1.34 |
% |
|
1.34 |
% |
|
1.25 |
% |
|
1.18 |
% |
|
1.17 |
% |
Non-interest expense to average assets |
|
2.87 |
% |
|
2.90 |
% |
|
2.83 |
% |
|
2.87 |
% |
|
2.70 |
% |
Net overhead ratio (3) |
|
1.53 |
% |
|
1.57 |
% |
|
1.58 |
% |
|
1.69 |
% |
|
1.53 |
% |
Return on average assets |
|
1.24 |
% |
|
1.26 |
% |
|
1.20 |
% |
|
1.00 |
% |
|
0.96 |
% |
Return on average common equity |
|
11.86 |
% |
|
11.94 |
% |
|
11.29 |
% |
|
9.39 |
% |
|
9.15 |
% |
Return on average tangible common equity (non-GAAP)
(2) |
|
14.64 |
% |
|
14.72 |
% |
|
14.02 |
% |
|
11.65 |
% |
|
11.39 |
% |
Average total assets |
|
$ |
29,525,109 |
|
|
$ |
28,567,579 |
|
|
$ |
27,809,597 |
|
|
$ |
27,179,484 |
|
|
$ |
27,012,295 |
|
Average total shareholders’ equity |
|
3,131,943 |
|
|
3,064,154 |
|
|
2,995,592 |
|
|
2,942,999 |
|
|
2,882,682 |
|
Average loans to average deposits ratio (excluding covered
loans) |
|
92.2 |
% |
|
95.5 |
% |
|
95.2 |
% |
|
92.3 |
% |
|
91.8 |
% |
Period-end loans to deposits ratio (excluding covered loans) |
|
92.8 |
|
|
92.8 |
|
|
94.8 |
|
|
93.3 |
|
|
92.1 |
|
Common Share Data at end of period: |
|
|
|
|
|
|
|
|
|
|
Market price per common share |
|
$ |
84.94 |
|
|
$ |
87.05 |
|
|
$ |
86.05 |
|
|
$ |
82.37 |
|
|
$ |
78.31 |
|
Book value per common share (2) |
|
$ |
54.19 |
|
|
$ |
52.94 |
|
|
$ |
51.66 |
|
|
$ |
50.96 |
|
|
$ |
49.86 |
|
Tangible common book value per share (2) |
|
$ |
44.16 |
|
|
$ |
43.50 |
|
|
$ |
42.17 |
|
|
$ |
41.68 |
|
|
$ |
40.53 |
|
Common shares outstanding |
|
56,377,169 |
|
|
56,329,276 |
|
|
56,256,498 |
|
|
55,965,207 |
|
|
55,838,063 |
|
Other Data at end of period:(6) |
|
|
|
|
|
|
|
|
|
|
Leverage Ratio(4) |
|
9.3 |
% |
|
9.4 |
% |
|
9.3 |
% |
|
9.3 |
% |
|
9.2 |
% |
Tier 1 Capital to risk-weighted assets (4) |
|
9.9 |
% |
|
10.0 |
% |
|
10.0 |
% |
|
9.9 |
% |
|
10.0 |
% |
Common equity Tier 1 capital to risk-weighted assets
(4) |
|
9.5 |
% |
|
9.6 |
% |
|
9.5 |
% |
|
9.4 |
% |
|
9.5 |
% |
Total capital to risk-weighted assets (4) |
|
11.9 |
% |
|
12.1 |
% |
|
12.0 |
% |
|
12.0 |
% |
|
12.2 |
% |
Allowance for credit losses (5) |
|
$ |
151,001 |
|
|
$ |
144,645 |
|
|
$ |
140,746 |
|
|
$ |
139,174 |
|
|
$ |
134,395 |
|
Non-performing loans |
|
127,227 |
|
|
83,282 |
|
|
89,690 |
|
|
90,162 |
|
|
77,983 |
|
Allowance for credit losses to total loans (5) |
|
0.65 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.64 |
% |
Non-performing loans to total loans |
|
0.55 |
% |
|
0.37 |
% |
|
0.41 |
% |
|
0.42 |
% |
|
0.37 |
% |
Number of: |
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
Banking offices |
|
166 |
|
|
162 |
|
|
157 |
|
|
157 |
|
|
156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
(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.
(7) Excludes mortgage loans
held-for-sale.
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Consolidated Statements of Condition - 5 Quarter
Trends
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(In thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
279,936 |
|
|
$ |
304,580 |
|
|
$ |
231,407 |
|
|
$ |
277,534 |
|
|
$ |
251,896 |
|
Federal funds sold and securities purchased under resale
agreements |
|
57 |
|
|
62 |
|
|
57 |
|
|
57 |
|
|
56 |
|
Interest bearing deposits with banks |
|
1,137,044 |
|
|
1,221,407 |
|
|
980,380 |
|
|
1,063,242 |
|
|
1,218,728 |
|
Available-for-sale securities, at fair value |
|
2,164,985 |
|
|
1,940,787 |
|
|
1,895,688 |
|
|
1,803,666 |
|
|
1,665,903 |
|
Held-to-maturity securities, at amortized cost |
|
966,438 |
|
|
890,834 |
|
|
892,937 |
|
|
826,449 |
|
|
819,340 |
|
Trading account securities |
|
688 |
|
|
862 |
|
|
1,682 |
|
|
995 |
|
|
643 |
|
Equity securities with readily determinable fair value |
|
36,414 |
|
|
37,839 |
|
|
37,832 |
|
|
— |
|
|
— |
|
Federal Home Loan Bank and Federal Reserve Bank stock |
|
99,998 |
|
|
96,699 |
|
|
104,956 |
|
|
89,989 |
|
|
87,192 |
|
Brokerage customer receivables |
|
15,649 |
|
|
16,649 |
|
|
24,531 |
|
|
26,431 |
|
|
23,631 |
|
Mortgage loans held-for-sale |
|
338,111 |
|
|
455,712 |
|
|
411,505 |
|
|
313,592 |
|
|
370,282 |
|
Loans, net of unearned income, excluding covered loans |
|
23,123,951 |
|
|
22,610,560 |
|
|
22,062,134 |
|
|
21,640,797 |
|
|
20,912,781 |
|
Covered loans |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
46,601 |
|
Total loans |
|
23,123,951 |
|
|
22,610,560 |
|
|
22,062,134 |
|
|
21,640,797 |
|
|
20,959,382 |
|
Allowance for loan losses |
|
(149,756 |
) |
|
(143,402 |
) |
|
(139,503 |
) |
|
(137,905 |
) |
|
(133,119 |
) |
Allowance for covered loan losses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(758 |
) |
Net loans |
|
22,974,195 |
|
|
22,467,158 |
|
|
21,922,631 |
|
|
21,502,892 |
|
|
20,825,505 |
|
Premises and equipment, net |
|
664,469 |
|
|
639,345 |
|
|
626,687 |
|
|
621,895 |
|
|
609,978 |
|
Lease investments, net |
|
199,241 |
|
|
194,160 |
|
|
190,775 |
|
|
212,335 |
|
|
193,828 |
|
Accrued interest receivable and other assets |
|
700,568 |
|
|
666,673 |
|
|
601,794 |
|
|
567,374 |
|
|
580,612 |
|
Trade date securities receivable |
|
— |
|
|
450 |
|
|
— |
|
|
90,014 |
|
|
189,896 |
|
Goodwill |
|
537,560 |
|
|
509,957 |
|
|
511,497 |
|
|
501,884 |
|
|
502,021 |
|
Other intangible assets |
|
27,378 |
|
|
21,414 |
|
|
22,413 |
|
|
17,621 |
|
|
18,651 |
|
Total assets |
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
|
$ |
27,915,970 |
|
|
$ |
27,358,162 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
6,399,213 |
|
|
$ |
6,520,724 |
|
|
$ |
6,612,319 |
|
|
$ |
6,792,497 |
|
|
$ |
6,502,409 |
|
Interest bearing |
|
18,517,502 |
|
|
17,844,755 |
|
|
16,667,008 |
|
|
16,390,850 |
|
|
16,392,654 |
|
Total deposits |
|
24,916,715 |
|
|
24,365,479 |
|
|
23,279,327 |
|
|
23,183,347 |
|
|
22,895,063 |
|
Federal Home Loan Bank advances |
|
615,000 |
|
|
667,000 |
|
|
915,000 |
|
|
559,663 |
|
|
468,962 |
|
Other borrowings |
|
373,571 |
|
|
255,701 |
|
|
247,092 |
|
|
266,123 |
|
|
251,680 |
|
Subordinated notes |
|
139,172 |
|
|
139,148 |
|
|
139,111 |
|
|
139,088 |
|
|
139,052 |
|
Junior subordinated debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Trade date securities payable |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
880 |
|
Accrued interest payable and other liabilities |
|
664,885 |
|
|
676,823 |
|
|
591,426 |
|
|
537,244 |
|
|
440,034 |
|
Total liabilities |
|
26,962,909 |
|
|
26,357,717 |
|
|
25,425,522 |
|
|
24,939,031 |
|
|
24,449,237 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
Common stock |
|
56,486 |
|
|
56,437 |
|
|
56,364 |
|
|
56,068 |
|
|
55,940 |
|
Surplus |
|
1,553,353 |
|
|
1,547,511 |
|
|
1,540,673 |
|
|
1,529,035 |
|
|
1,519,596 |
|
Treasury stock |
|
(5,547 |
) |
|
(5,355 |
) |
|
(5,355 |
) |
|
(4,986 |
) |
|
(4,884 |
) |
Retained earnings |
|
1,543,680 |
|
|
1,464,494 |
|
|
1,387,663 |
|
|
1,313,657 |
|
|
1,254,759 |
|
Accumulated other comprehensive loss |
|
(93,150 |
) |
|
(81,216 |
) |
|
(73,095 |
) |
|
(41,835 |
) |
|
(41,486 |
) |
Total shareholders’ equity |
|
3,179,822 |
|
|
3,106,871 |
|
|
3,031,250 |
|
|
2,976,939 |
|
|
2,908,925 |
|
Total liabilities and shareholders’
equity |
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
|
$ |
27,915,970 |
|
|
$ |
27,358,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Consolidated Statements of Income (Unaudited) - 5 Quarter
Trends
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(In thousands, except per share data) |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
Interest income |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
271,134 |
|
|
255,063 |
|
|
234,994 |
|
|
226,447 |
|
|
223,897 |
|
Mortgage loans held-for-sale |
|
5,285 |
|
|
4,226 |
|
|
2,818 |
|
|
3,291 |
|
|
3,223 |
|
Interest bearing deposits with banks |
|
5,423 |
|
|
3,243 |
|
|
2,796 |
|
|
2,723 |
|
|
3,272 |
|
Federal funds sold and securities purchased under
resale agreements |
|
— |
|
|
1 |
|
|
— |
|
|
— |
|
|
— |
|
Investment securities |
|
21,710 |
|
|
19,888 |
|
|
19,128 |
|
|
18,160 |
|
|
16,058 |
|
Trading account securities |
|
11 |
|
|
4 |
|
|
14 |
|
|
2 |
|
|
8 |
|
Federal Home Loan Bank and Federal Reserve Bank
stock |
|
1,235 |
|
|
1,455 |
|
|
1,298 |
|
|
1,067 |
|
|
1,080 |
|
Brokerage customer receivables |
|
164 |
|
|
167 |
|
|
157 |
|
|
150 |
|
|
150 |
|
Total interest income |
|
304,962 |
|
|
284,047 |
|
|
261,205 |
|
|
251,840 |
|
|
247,688 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
48,736 |
|
|
35,293 |
|
|
26,549 |
|
|
24,930 |
|
|
23,655 |
|
Interest on Federal Home Loan Bank advances |
|
1,947 |
|
|
4,263 |
|
|
3,639 |
|
|
2,124 |
|
|
2,151 |
|
Interest on other borrowings |
|
2,003 |
|
|
1,698 |
|
|
1,699 |
|
|
1,600 |
|
|
1,482 |
|
Interest on subordinated notes |
|
1,773 |
|
|
1,787 |
|
|
1,773 |
|
|
1,786 |
|
|
1,772 |
|
Interest on junior subordinated debentures |
|
2,940 |
|
|
2,836 |
|
|
2,463 |
|
|
2,301 |
|
|
2,640 |
|
Total interest expense |
|
57,399 |
|
|
45,877 |
|
|
36,123 |
|
|
32,741 |
|
|
31,700 |
|
Net interest income |
|
247,563 |
|
|
238,170 |
|
|
225,082 |
|
|
219,099 |
|
|
215,988 |
|
Provision for credit losses |
|
11,042 |
|
|
5,043 |
|
|
8,346 |
|
|
7,772 |
|
|
7,896 |
|
Net interest income after provision for credit losses |
|
236,521 |
|
|
233,127 |
|
|
216,736 |
|
|
211,327 |
|
|
208,092 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
Wealth management |
|
22,634 |
|
|
22,617 |
|
|
22,986 |
|
|
21,910 |
|
|
19,803 |
|
Mortgage banking |
|
42,014 |
|
|
39,834 |
|
|
30,960 |
|
|
27,411 |
|
|
28,184 |
|
Service charges on deposit accounts |
|
9,331 |
|
|
9,151 |
|
|
8,857 |
|
|
8,907 |
|
|
8,645 |
|
Gains (losses) on investment securities, net |
|
90 |
|
|
12 |
|
|
(351 |
) |
|
14 |
|
|
39 |
|
Fees from covered call options |
|
627 |
|
|
669 |
|
|
1,597 |
|
|
1,610 |
|
|
1,143 |
|
Trading (losses) gains, net |
|
(61 |
) |
|
124 |
|
|
103 |
|
|
24 |
|
|
(129 |
) |
Operating lease income, net |
|
9,132 |
|
|
8,746 |
|
|
9,691 |
|
|
8,598 |
|
|
8,461 |
|
Other |
|
16,163 |
|
|
14,080 |
|
|
11,836 |
|
|
12,564 |
|
|
13,585 |
|
Total non-interest income |
|
99,930 |
|
|
95,233 |
|
|
85,679 |
|
|
81,038 |
|
|
79,731 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
123,855 |
|
|
121,675 |
|
|
112,436 |
|
|
118,009 |
|
|
106,251 |
|
Equipment |
|
10,827 |
|
|
10,527 |
|
|
10,072 |
|
|
9,500 |
|
|
9,947 |
|
Operating lease equipment depreciation |
|
7,370 |
|
|
6,940 |
|
|
6,533 |
|
|
7,015 |
|
|
6,794 |
|
Occupancy, net |
|
14,404 |
|
|
13,663 |
|
|
13,767 |
|
|
14,154 |
|
|
13,079 |
|
Data processing |
|
9,335 |
|
|
8,752 |
|
|
8,493 |
|
|
7,915 |
|
|
7,851 |
|
Advertising and marketing |
|
11,120 |
|
|
11,782 |
|
|
8,824 |
|
|
7,382 |
|
|
9,572 |
|
Professional fees |
|
9,914 |
|
|
6,484 |
|
|
6,649 |
|
|
8,879 |
|
|
6,786 |
|
Amortization of other intangible assets |
|
1,163 |
|
|
997 |
|
|
1,004 |
|
|
1,028 |
|
|
1,068 |
|
FDIC insurance |
|
4,205 |
|
|
4,598 |
|
|
4,362 |
|
|
4,324 |
|
|
3,877 |
|
OREO expense, net |
|
596 |
|
|
980 |
|
|
2,926 |
|
|
599 |
|
|
590 |
|
Other |
|
20,848 |
|
|
20,371 |
|
|
19,283 |
|
|
17,775 |
|
|
17,760 |
|
Total non-interest expense |
|
213,637 |
|
|
206,769 |
|
|
194,349 |
|
|
196,580 |
|
|
183,575 |
|
Income before taxes |
|
122,814 |
|
|
121,591 |
|
|
108,066 |
|
|
95,785 |
|
|
104,248 |
|
Income tax expense |
|
30,866 |
|
|
32,011 |
|
|
26,085 |
|
|
27,004 |
|
|
38,622 |
|
Net income |
|
$ |
91,948 |
|
|
$ |
89,580 |
|
|
$ |
81,981 |
|
|
$ |
68,781 |
|
|
$ |
65,626 |
|
Preferred stock dividends |
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
Net income applicable to common shares |
|
$ |
89,898 |
|
|
$ |
87,530 |
|
|
$ |
79,931 |
|
|
$ |
66,731 |
|
|
$ |
63,576 |
|
Net income per common share - Basic |
|
$ |
1.59 |
|
|
$ |
1.55 |
|
|
$ |
1.42 |
|
|
$ |
1.19 |
|
|
$ |
1.14 |
|
Net income per common share - Diluted |
|
$ |
1.57 |
|
|
$ |
1.53 |
|
|
$ |
1.40 |
|
|
$ |
1.17 |
|
|
$ |
1.12 |
|
Cash dividends declared per common share |
|
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
0.14 |
|
|
$ |
0.14 |
|
Weighted average common shares outstanding |
|
56,366 |
|
|
56,299 |
|
|
56,137 |
|
|
55,924 |
|
|
55,796 |
|
Dilutive potential common shares |
|
918 |
|
|
928 |
|
|
888 |
|
|
1,010 |
|
|
966 |
|
Average common shares and dilutive common shares |
|
57,284 |
|
|
57,227 |
|
|
57,025 |
|
|
56,934 |
|
|
56,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Period End Loan Balances - 5 Quarter Trends
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
7,473,958 |
|
|
$ |
7,289,060 |
|
|
$ |
7,060,871 |
|
|
$ |
6,787,677 |
|
|
$ |
6,456,034 |
|
Commercial real estate |
|
6,746,774 |
|
|
6,575,084 |
|
|
6,633,520 |
|
|
6,580,618 |
|
|
6,400,781 |
|
Home equity |
|
578,844 |
|
|
593,500 |
|
|
626,547 |
|
|
663,045 |
|
|
672,969 |
|
Residential real estate |
|
924,250 |
|
|
895,470 |
|
|
869,104 |
|
|
832,120 |
|
|
789,499 |
|
Premium finance receivables - commercial |
|
2,885,327 |
|
|
2,833,452 |
|
|
2,576,150 |
|
|
2,634,565 |
|
|
2,664,912 |
|
Premium finance receivables - life insurance |
|
4,398,971 |
|
|
4,302,288 |
|
|
4,189,961 |
|
|
4,035,059 |
|
|
3,795,474 |
|
Consumer and other |
|
115,827 |
|
|
121,706 |
|
|
105,981 |
|
|
107,713 |
|
|
133,112 |
|
Total loans, net of unearned income, excluding
covered loans |
|
$ |
23,123,951 |
|
|
$ |
22,610,560 |
|
|
$ |
22,062,134 |
|
|
$ |
21,640,797 |
|
|
$ |
20,912,781 |
|
Covered loans |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
46,601 |
|
Total loans, net of unearned income |
|
$ |
23,123,951 |
|
|
$ |
22,610,560 |
|
|
$ |
22,062,134 |
|
|
$ |
21,640,797 |
|
|
$ |
20,959,382 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
32 |
% |
|
32 |
% |
|
32 |
% |
|
31 |
% |
|
31 |
% |
Commercial real estate |
|
29 |
|
|
29 |
|
|
30 |
|
|
30 |
|
|
31 |
|
Home equity |
|
3 |
|
|
3 |
|
|
3 |
|
|
3 |
|
|
3 |
|
Residential real estate |
|
4 |
|
|
4 |
|
|
4 |
|
|
4 |
|
|
3 |
|
Premium finance receivables - commercial |
|
12 |
|
|
12 |
|
|
12 |
|
|
12 |
|
|
13 |
|
Premium finance receivables - life insurance |
|
19 |
|
|
19 |
|
|
19 |
|
|
19 |
|
|
18 |
|
Consumer and other |
|
1 |
|
|
1 |
|
|
— |
|
|
1 |
|
|
1 |
|
Total loans, net of unearned income, excluding
covered loans |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
Covered loans |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total loans, net of unearned income |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Period End Deposits Balances - 5 Quarter
Trends
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
6,399,213 |
|
|
$ |
6,520,724 |
|
|
$ |
6,612,319 |
|
|
$ |
6,792,497 |
|
|
$ |
6,502,409 |
|
NOW and interest bearing demand deposits |
|
2,512,259 |
|
|
2,452,474 |
|
|
2,315,122 |
|
|
2,315,055 |
|
|
2,273,025 |
|
Wealth management deposits (1) |
|
2,520,120 |
|
|
2,523,572 |
|
|
2,495,134 |
|
|
2,323,699 |
|
|
2,171,758 |
|
Money market |
|
5,429,921 |
|
|
5,205,678 |
|
|
4,617,122 |
|
|
4,515,353 |
|
|
4,607,995 |
|
Savings |
|
2,595,164 |
|
|
2,763,062 |
|
|
2,901,504 |
|
|
2,829,373 |
|
|
2,673,201 |
|
Time certificates of deposit |
|
5,460,038 |
|
|
4,899,969 |
|
|
4,338,126 |
|
|
4,407,370 |
|
|
4,666,675 |
|
Total deposits |
|
$ |
24,916,715 |
|
|
$ |
24,365,479 |
|
|
$ |
23,279,327 |
|
|
$ |
23,183,347 |
|
|
$ |
22,895,063 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
26 |
% |
|
27 |
% |
|
28 |
% |
|
29 |
% |
|
28 |
% |
NOW and interest bearing demand deposits |
|
10 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
10 |
|
Wealth management deposits (1) |
|
10 |
|
|
11 |
|
|
11 |
|
|
10 |
|
|
10 |
|
Money market |
|
22 |
|
|
21 |
|
|
20 |
|
|
20 |
|
|
20 |
|
Savings |
|
10 |
|
|
11 |
|
|
12 |
|
|
12 |
|
|
12 |
|
Time certificates of deposit |
|
22 |
|
|
20 |
|
|
19 |
|
|
19 |
|
|
20 |
|
Total deposits |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents deposit balances of the Company’s subsidiary
banks from brokerage customers of Wintrust Investments, trust and
asset management customers of the Company and brokerage customers
from unaffiliated companies which have been placed into deposit
accounts of the Banks.
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Net Interest Margin (Including Call Option Income) - 5
Quarter Trends
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
Net interest income - FTE |
|
$ |
249,082 |
|
|
$ |
239,549 |
|
|
$ |
226,286 |
|
|
$ |
221,226 |
|
|
$ |
217,947 |
|
Call option income |
|
627 |
|
|
669 |
|
|
1,597 |
|
|
1,610 |
|
|
1,143 |
|
Net interest income including call option income |
|
$ |
249,709 |
|
|
$ |
240,218 |
|
|
$ |
227,883 |
|
|
$ |
222,836 |
|
|
$ |
219,090 |
|
Yield on earning assets |
|
4.45 |
% |
|
4.32 |
% |
|
4.13 |
% |
|
4.00 |
% |
|
3.96 |
% |
Rate on interest-bearing liabilities |
|
1.17 |
|
|
1.00 |
|
|
0.83 |
|
|
0.75 |
|
|
0.73 |
|
Rate spread |
|
3.28 |
% |
|
3.32 |
% |
|
3.30 |
% |
|
3.25 |
% |
|
3.23 |
% |
Less: Fully tax-equivalent adjustment |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.04 |
) |
|
(0.03 |
) |
Net free funds contribution |
|
0.33 |
|
|
0.31 |
|
|
0.26 |
|
|
0.24 |
|
|
0.23 |
|
Net interest margin (GAAP-derived) |
|
3.59 |
% |
|
3.61 |
% |
|
3.54 |
% |
|
3.45 |
% |
|
3.43 |
% |
Fully tax-equivalent adjustment |
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.04 |
|
|
0.03 |
|
Net interest margin - FTE |
|
3.61 |
% |
|
3.63 |
% |
|
3.56 |
% |
|
3.49 |
% |
|
3.46 |
% |
Call option income |
|
0.01 |
|
|
0.01 |
|
|
0.03 |
|
|
0.03 |
|
|
0.02 |
|
Net interest margin - FTE, including call option income |
|
3.62 |
% |
|
3.64 |
% |
|
3.59 |
% |
|
3.52 |
% |
|
3.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Net Interest Margin (Including Call Option Income - YTD
Trends)
|
|
Nine Months Ended
September 30, |
|
Years Ended
December 31, |
(Dollars in thousands) |
|
2018 |
|
2017 |
|
2016 |
|
2015 |
|
2014 |
Net interest income - FTE |
|
$ |
714,917 |
|
|
$ |
839,563 |
|
|
$ |
728,145 |
|
|
$ |
646,238 |
|
|
$ |
601,744 |
|
Call option income |
|
2,893 |
|
|
4,402 |
|
|
11,470 |
|
|
15,364 |
|
|
7,859 |
|
Net interest income including call option income |
|
$ |
717,810 |
|
|
$ |
843,965 |
|
|
$ |
739,615 |
|
|
$ |
661,602 |
|
|
$ |
609,603 |
|
Yield on earning assets |
|
4.30 |
% |
|
3.91 |
% |
|
3.67 |
% |
|
3.76 |
% |
|
3.96 |
% |
Rate on interest-bearing liabilities |
|
1.01 |
|
|
0.67 |
|
|
0.57 |
|
|
0.54 |
|
|
0.55 |
|
Rate spread |
|
3.29 |
% |
|
3.24 |
% |
|
3.10 |
% |
|
3.22 |
% |
|
3.41 |
% |
Less: Fully tax-equivalent adjustment |
|
(0.02 |
) |
|
(0.03 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
Net free funds contribution |
|
0.31 |
|
|
0.20 |
|
|
0.16 |
|
|
0.14 |
|
|
0.12 |
|
Net interest margin (GAAP-derived) |
|
3.58 |
% |
|
3.41 |
% |
|
3.24 |
% |
|
3.34 |
% |
|
3.51 |
% |
Fully tax-equivalent adjustment |
|
0.02 |
|
|
0.03 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
Net interest margin - FTE |
|
3.60 |
% |
|
3.44 |
% |
|
3.26 |
% |
|
3.36 |
% |
|
3.53 |
% |
Call option income |
|
0.01 |
|
|
0.02 |
|
|
0.05 |
|
|
0.08 |
|
|
0.05 |
|
Net interest margin - FTE, including call option income |
|
3.61 |
% |
|
3.46 |
% |
|
3.31 |
% |
|
3.44 |
% |
|
3.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Quarterly Average Balances - 5 Quarter Trends
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(In thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
Interest-bearing deposits with banks and cash equivalents |
|
$ |
998,004 |
|
|
$ |
759,425 |
|
|
$ |
749,973 |
|
|
$ |
914,319 |
|
|
$ |
1,003,572 |
|
Investment securities |
|
3,046,272 |
|
|
2,890,828 |
|
|
2,892,617 |
|
|
2,736,253 |
|
|
2,652,119 |
|
FHLB and FRB stock |
|
88,335 |
|
|
115,119 |
|
|
105,414 |
|
|
82,092 |
|
|
81,928 |
|
Liquidity management assets |
|
$ |
4,132,611 |
|
|
$ |
3,765,372 |
|
|
$ |
3,748,004 |
|
|
$ |
3,732,664 |
|
|
$ |
3,737,619 |
|
Other earning assets |
|
17,862 |
|
|
21,244 |
|
|
27,571 |
|
|
26,955 |
|
|
25,844 |
|
Mortgage loans held-for-sale |
|
380,235 |
|
|
403,967 |
|
|
281,181 |
|
|
335,385 |
|
|
336,604 |
|
Loans, net of unearned income |
|
22,823,378 |
|
|
22,283,541 |
|
|
21,711,342 |
|
|
21,080,984 |
|
|
20,858,618 |
|
Covered loans |
|
— |
|
|
— |
|
|
— |
|
|
6,025 |
|
|
48,415 |
|
Total earning assets |
|
$ |
27,354,086 |
|
|
$ |
26,474,124 |
|
|
$ |
25,768,098 |
|
|
$ |
25,182,013 |
|
|
$ |
25,007,100 |
|
Allowance for loan and covered loan losses |
|
(148,503 |
) |
|
(147,192 |
) |
|
(143,108 |
) |
|
(138,584 |
) |
|
(135,519 |
) |
Cash and due from banks |
|
268,006 |
|
|
270,240 |
|
|
254,489 |
|
|
244,097 |
|
|
242,186 |
|
Other assets |
|
2,051,520 |
|
|
1,970,407 |
|
|
1,930,118 |
|
|
1,891,958 |
|
|
1,898,528 |
|
Total assets |
|
$ |
29,525,109 |
|
|
$ |
28,567,579 |
|
|
$ |
27,809,597 |
|
|
$ |
27,179,484 |
|
|
$ |
27,012,295 |
|
NOW and interest bearing demand deposits |
|
$ |
2,519,445 |
|
|
$ |
2,295,268 |
|
|
$ |
2,255,692 |
|
|
$ |
2,284,576 |
|
|
$ |
2,344,848 |
|
Wealth management deposits |
|
2,517,141 |
|
|
2,365,191 |
|
|
2,250,139 |
|
|
2,005,197 |
|
|
2,320,674 |
|
Money market accounts |
|
5,369,324 |
|
|
4,883,645 |
|
|
4,520,620 |
|
|
4,611,515 |
|
|
4,471,342 |
|
Savings accounts |
|
2,672,077 |
|
|
2,702,665 |
|
|
2,813,772 |
|
|
2,741,621 |
|
|
2,581,946 |
|
Time deposits |
|
5,214,637 |
|
|
4,557,187 |
|
|
4,322,111 |
|
|
4,581,464 |
|
|
4,573,081 |
|
Interest-bearing deposits |
|
$ |
18,292,624 |
|
|
$ |
16,803,956 |
|
|
$ |
16,162,334 |
|
|
$ |
16,224,373 |
|
|
$ |
16,291,891 |
|
Federal Home Loan Bank advances |
|
429,739 |
|
|
1,006,407 |
|
|
872,811 |
|
|
324,748 |
|
|
324,996 |
|
Other borrowings |
|
268,278 |
|
|
240,066 |
|
|
263,125 |
|
|
255,972 |
|
|
268,850 |
|
Subordinated notes |
|
139,155 |
|
|
139,125 |
|
|
139,094 |
|
|
139,065 |
|
|
139,035 |
|
Junior subordinated debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Total interest-bearing liabilities |
|
$ |
19,383,362 |
|
|
$ |
18,443,120 |
|
|
$ |
17,690,930 |
|
|
$ |
17,197,724 |
|
|
$ |
17,278,338 |
|
Non-interest bearing deposits |
|
6,461,195 |
|
|
6,539,731 |
|
|
6,639,845 |
|
|
6,605,553 |
|
|
6,419,326 |
|
Other liabilities |
|
548,609 |
|
|
520,574 |
|
|
483,230 |
|
|
433,208 |
|
|
431,949 |
|
Equity |
|
3,131,943 |
|
|
3,064,154 |
|
|
2,995,592 |
|
|
2,942,999 |
|
|
2,882,682 |
|
Total liabilities and shareholders’ equity |
|
$ |
29,525,109 |
|
|
$ |
28,567,579 |
|
|
$ |
27,809,597 |
|
|
$ |
27,179,484 |
|
|
$ |
27,012,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Net Interest Margin - 5 Quarter Trends
|
|
Three Months Ended |
|
|
September 30,
2018 |
|
June 30,
2018 |
|
March 31,
2018 |
|
December 31,
2017 |
|
September 30,
2017 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks and cash equivalents |
|
2.16 |
% |
|
1.71 |
% |
|
1.51 |
% |
|
1.18 |
% |
|
1.29 |
% |
Investment securities |
|
2.90 |
|
|
2.84 |
|
|
2.76 |
|
|
2.78 |
|
|
2.54 |
|
FHLB and FRB stock |
|
5.54 |
|
|
5.07 |
|
|
4.99 |
|
|
5.15 |
|
|
5.23 |
|
Liquidity management assets |
|
2.78 |
% |
|
2.68 |
% |
|
2.57 |
% |
|
2.44 |
% |
|
2.26 |
% |
Other earning assets |
|
3.95 |
|
|
3.24 |
|
|
2.56 |
|
|
2.27 |
|
|
2.49 |
|
Mortgage loans held-for-sale |
|
5.51 |
|
|
4.20 |
|
|
4.06 |
|
|
3.89 |
|
|
3.80 |
|
Loans, net of unearned income |
|
4.73 |
|
|
4.61 |
|
|
4.40 |
|
|
4.28 |
|
|
4.27 |
|
Covered loans |
|
— |
|
|
— |
|
|
— |
|
|
5.66 |
|
|
4.91 |
|
Total earning assets |
|
4.45 |
% |
|
4.32 |
% |
|
4.13 |
% |
|
4.00 |
% |
|
3.96 |
% |
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
NOW and interest bearing demand deposits |
|
0.39 |
% |
|
0.33 |
% |
|
0.25 |
% |
|
0.24 |
% |
|
0.22 |
% |
Wealth management deposits |
|
1.31 |
|
|
1.19 |
|
|
0.98 |
|
|
0.80 |
|
|
0.81 |
|
Money market accounts |
|
0.98 |
|
|
0.67 |
|
|
0.42 |
|
|
0.36 |
|
|
0.31 |
|
Savings accounts |
|
0.43 |
|
|
0.40 |
|
|
0.39 |
|
|
0.39 |
|
|
0.33 |
|
Time deposits |
|
1.66 |
|
|
1.37 |
|
|
1.16 |
|
|
1.09 |
|
|
1.04 |
|
Interest-bearing deposits |
|
1.06 |
% |
|
0.84 |
% |
|
0.67 |
% |
|
0.61 |
% |
|
0.58 |
% |
Federal Home Loan Bank advances |
|
1.80 |
|
|
1.70 |
|
|
1.69 |
|
|
2.59 |
|
|
2.63 |
|
Other borrowings |
|
2.96 |
|
|
2.84 |
|
|
2.62 |
|
|
2.48 |
|
|
2.19 |
|
Subordinated notes |
|
5.10 |
|
|
5.14 |
|
|
5.10 |
|
|
5.14 |
|
|
5.10 |
|
Junior subordinated debentures |
|
4.54 |
|
|
4.42 |
|
|
3.89 |
|
|
3.55 |
|
|
4.07 |
|
Total interest-bearing liabilities |
|
1.17 |
% |
|
1.00 |
% |
|
0.83 |
% |
|
0.75 |
% |
|
0.73 |
% |
Interest rate spread |
|
3.28 |
% |
|
3.32 |
% |
|
3.30 |
% |
|
3.25 |
% |
|
3.23 |
% |
Less: Fully tax-equivalent adjustment |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.04 |
) |
|
(0.03 |
) |
Net free funds/contribution |
|
0.33 |
|
|
0.31 |
|
|
0.26 |
|
|
0.24 |
|
|
0.23 |
|
Net interest margin (GAAP) |
|
3.59 |
% |
|
3.61 |
% |
|
3.54 |
% |
|
3.45 |
% |
|
3.43 |
% |
Fully tax-equivalent adjustment |
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.04 |
|
|
0.03 |
|
Net interest margin - FTE |
|
3.61 |
% |
|
3.63 |
% |
|
3.56 |
% |
|
3.49 |
% |
|
3.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Interest Income - 5 Quarter Trends
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(In thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
Brokerage |
|
$ |
5,579 |
|
|
$ |
5,784 |
|
|
$ |
6,031 |
|
|
$ |
6,067 |
|
|
$ |
5,127 |
|
Trust and asset management |
|
17,055 |
|
|
16,833 |
|
|
16,955 |
|
|
15,843 |
|
|
14,676 |
|
Total wealth management |
|
22,634 |
|
|
22,617 |
|
|
22,986 |
|
|
21,910 |
|
|
19,803 |
|
Mortgage banking |
|
42,014 |
|
|
39,834 |
|
|
30,960 |
|
|
27,411 |
|
|
28,184 |
|
Service charges on deposit accounts |
|
9,331 |
|
|
9,151 |
|
|
8,857 |
|
|
8,907 |
|
|
8,645 |
|
Gains (losses) on investment securities, net |
|
90 |
|
|
12 |
|
|
(351 |
) |
|
14 |
|
|
39 |
|
Fees from covered call options |
|
627 |
|
|
669 |
|
|
1,597 |
|
|
1,610 |
|
|
1,143 |
|
Trading gains (losses), net |
|
(61 |
) |
|
124 |
|
|
103 |
|
|
24 |
|
|
(129 |
) |
Operating lease income, net |
|
9,132 |
|
|
8,746 |
|
|
9,691 |
|
|
8,598 |
|
|
8,461 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
2,359 |
|
|
3,829 |
|
|
2,237 |
|
|
1,963 |
|
|
1,762 |
|
BOLI |
|
3,190 |
|
|
1,544 |
|
|
714 |
|
|
754 |
|
|
897 |
|
Administrative services |
|
1,099 |
|
|
1,205 |
|
|
1,061 |
|
|
1,103 |
|
|
1,052 |
|
Early pay-offs of capital leases |
|
11 |
|
|
554 |
|
|
33 |
|
|
7 |
|
|
— |
|
Miscellaneous |
|
9,504 |
|
|
6,948 |
|
|
7,791 |
|
|
8,737 |
|
|
9,874 |
|
Total other income |
|
16,163 |
|
|
14,080 |
|
|
11,836 |
|
|
12,564 |
|
|
13,585 |
|
Total Non-Interest Income |
|
$ |
99,930 |
|
|
$ |
95,233 |
|
|
$ |
85,679 |
|
|
$ |
81,038 |
|
|
$ |
79,731 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Interest Expense - 5 Quarter Trends
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(In thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
Salaries and employee benefits: |
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
69,893 |
|
|
$ |
66,976 |
|
|
$ |
61,986 |
|
|
$ |
58,239 |
|
|
$ |
57,689 |
|
Commissions and incentive compensation |
|
34,046 |
|
|
35,907 |
|
|
31,949 |
|
|
40,723 |
|
|
32,095 |
|
Benefits |
|
19,916 |
|
|
18,792 |
|
|
18,501 |
|
|
19,047 |
|
|
16,467 |
|
Total salaries and employee benefits |
|
123,855 |
|
|
121,675 |
|
|
112,436 |
|
|
118,009 |
|
|
106,251 |
|
Equipment |
|
10,827 |
|
|
10,527 |
|
|
10,072 |
|
|
9,500 |
|
|
9,947 |
|
Operating lease equipment depreciation |
|
7,370 |
|
|
6,940 |
|
|
6,533 |
|
|
7,015 |
|
|
6,794 |
|
Occupancy, net |
|
14,404 |
|
|
13,663 |
|
|
13,767 |
|
|
14,154 |
|
|
13,079 |
|
Data processing |
|
9,335 |
|
|
8,752 |
|
|
8,493 |
|
|
7,915 |
|
|
7,851 |
|
Advertising and marketing |
|
11,120 |
|
|
11,782 |
|
|
8,824 |
|
|
7,382 |
|
|
9,572 |
|
Professional fees |
|
9,914 |
|
|
6,484 |
|
|
6,649 |
|
|
8,879 |
|
|
6,786 |
|
Amortization of other intangible assets |
|
1,163 |
|
|
997 |
|
|
1,004 |
|
|
1,028 |
|
|
1,068 |
|
FDIC insurance |
|
4,205 |
|
|
4,598 |
|
|
4,362 |
|
|
4,324 |
|
|
3,877 |
|
OREO expense, net |
|
596 |
|
|
980 |
|
|
2,926 |
|
|
599 |
|
|
590 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
1,059 |
|
|
1,174 |
|
|
1,252 |
|
|
1,057 |
|
|
990 |
|
Postage |
|
2,205 |
|
|
2,567 |
|
|
1,866 |
|
|
1,427 |
|
|
1,814 |
|
Miscellaneous |
|
17,584 |
|
|
16,630 |
|
|
16,165 |
|
|
15,291 |
|
|
14,956 |
|
Total other expense |
|
20,848 |
|
|
20,371 |
|
|
19,283 |
|
|
17,775 |
|
|
17,760 |
|
Total Non-Interest Expense |
|
$ |
213,637 |
|
|
$ |
206,769 |
|
|
$ |
194,349 |
|
|
$ |
196,580 |
|
|
$ |
183,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Allowance for Credit Losses, excluding covered loans - 5
Quarter Trends
|
|
Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
|
2017 |
Allowance for loan losses at beginning of
period |
|
$ |
143,402 |
|
|
$ |
139,503 |
|
|
$ |
137,905 |
|
|
$ |
133,119 |
|
|
$ |
129,591 |
|
Provision for credit losses |
|
11,042 |
|
|
5,043 |
|
|
8,346 |
|
|
7,772 |
|
|
7,942 |
|
Other adjustments (1) |
|
(18 |
) |
|
(44 |
) |
|
(40 |
) |
|
698 |
|
|
(39 |
) |
Reclassification (to) from allowance for unfunded
lending-related commitments |
|
(2 |
) |
|
— |
|
|
26 |
|
|
7 |
|
|
94 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
3,219 |
|
|
2,210 |
|
|
2,687 |
|
|
1,340 |
|
|
2,265 |
|
Commercial real estate |
|
208 |
|
|
155 |
|
|
813 |
|
|
1,001 |
|
|
989 |
|
Home equity |
|
561 |
|
|
612 |
|
|
357 |
|
|
728 |
|
|
968 |
|
Residential real estate |
|
337 |
|
|
180 |
|
|
571 |
|
|
542 |
|
|
267 |
|
Premium finance receivables - commercial |
|
2,512 |
|
|
3,254 |
|
|
4,721 |
|
|
2,314 |
|
|
1,716 |
|
Premium finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
144 |
|
|
459 |
|
|
129 |
|
|
207 |
|
|
213 |
|
Total charge-offs |
|
6,981 |
|
|
6,870 |
|
|
9,278 |
|
|
6,132 |
|
|
6,418 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
304 |
|
|
666 |
|
|
262 |
|
|
235 |
|
|
801 |
|
Commercial real estate |
|
193 |
|
|
2,387 |
|
|
1,687 |
|
|
1,037 |
|
|
323 |
|
Home equity |
|
142 |
|
|
171 |
|
|
123 |
|
|
359 |
|
|
178 |
|
Residential real estate |
|
466 |
|
|
1,522 |
|
|
40 |
|
|
165 |
|
|
55 |
|
Premium finance receivables - commercial |
|
1,142 |
|
|
975 |
|
|
385 |
|
|
613 |
|
|
499 |
|
Premium finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
66 |
|
|
49 |
|
|
47 |
|
|
32 |
|
|
93 |
|
Total recoveries |
|
2,313 |
|
|
5,770 |
|
|
2,544 |
|
|
2,441 |
|
|
1,949 |
|
Net charge-offs |
|
(4,668 |
) |
|
(1,100 |
) |
|
(6,734 |
) |
|
(3,691 |
) |
|
(4,469 |
) |
Allowance for loan losses at period end |
|
$ |
149,756 |
|
|
$ |
143,402 |
|
|
$ |
139,503 |
|
|
$ |
137,905 |
|
|
$ |
133,119 |
|
Allowance for unfunded lending-related commitments at
period end |
|
1,245 |
|
|
1,243 |
|
|
1,243 |
|
|
1,269 |
|
|
1,276 |
|
Allowance for credit losses at period end |
|
$ |
151,001 |
|
|
$ |
144,645 |
|
|
$ |
140,746 |
|
|
$ |
139,174 |
|
|
$ |
134,395 |
|
Annualized net charge-offs (recoveries) by category as a
percentage of its own respective category’s average: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
0.16 |
% |
|
0.09 |
% |
|
0.14 |
% |
|
0.07 |
% |
|
0.09 |
% |
Commercial real estate |
|
0.00 |
|
|
(0.14 |
) |
|
(0.05 |
) |
|
0.00 |
|
|
0.04 |
|
Home equity |
|
0.28 |
|
|
0.29 |
|
|
0.15 |
|
|
0.22 |
|
|
0.46 |
|
Residential real estate |
|
(0.06 |
) |
|
(0.64 |
) |
|
0.26 |
|
|
0.18 |
|
|
0.11 |
|
Premium finance receivables - commercial |
|
0.19 |
|
|
0.34 |
|
|
0.68 |
|
|
0.26 |
|
|
0.18 |
|
Premium finance receivables - life insurance |
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
Consumer and other |
|
0.23 |
|
|
1.21 |
|
|
0.26 |
|
|
0.52 |
|
|
0.37 |
|
Total loans, net of unearned income, excluding
covered loans |
|
0.08 |
% |
|
0.02 |
% |
|
0.13 |
% |
|
0.07 |
% |
|
0.08 |
% |
Net charge-offs as a percentage of the provision for credit
losses |
|
42.27 |
% |
|
21.81 |
% |
|
80.69 |
% |
|
47.49 |
% |
|
56.27 |
% |
Loans at period-end |
|
$ |
23,123,951 |
|
|
$ |
22,610,560 |
|
|
$ |
22,062,134 |
|
|
$ |
21,640,797 |
|
|
$ |
20,912,781 |
|
Allowance for loan losses as a percentage of loans at
period end |
|
0.65 |
% |
|
0.63 |
% |
|
0.63 |
% |
|
0.64 |
% |
|
0.64 |
% |
Allowance for credit losses as a percentage of loans at
period end |
|
0.65 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.64 |
% |
(1) Includes $742,000 of allowance
for covered loan losses reclassified as a result of the termination
of all existing loss share agreements with the FDIC during the
fourth quarter of 2017.
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Performing Assets, excluding covered assets - 5 Quarter
Trends
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
(Dollars in thousands) |
2018 |
|
2018 |
|
2017 (3) |
|
2017 |
|
2017 |
Loans past due greater than 90 days and still
accruing(1): |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
5,122 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Commercial real estate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Home equity |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential real estate |
— |
|
|
— |
|
|
— |
|
|
3,278 |
|
|
— |
|
Premium finance receivables - commercial |
7,028 |
|
|
5,159 |
|
|
8,547 |
|
|
9,242 |
|
|
9,584 |
|
Premium finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
6,740 |
|
Consumer and other |
233 |
|
|
224 |
|
|
207 |
|
|
40 |
|
|
159 |
|
Total loans past due greater than 90 days and still
accruing |
12,383 |
|
|
5,383 |
|
|
8,754 |
|
|
12,560 |
|
|
16,483 |
|
Non-accrual loans(2): |
|
|
|
|
|
|
|
|
|
Commercial |
58,587 |
|
|
18,388 |
|
|
14,007 |
|
|
15,696 |
|
|
13,931 |
|
Commercial real estate |
17,515 |
|
|
19,195 |
|
|
21,825 |
|
|
22,048 |
|
|
14,878 |
|
Home equity |
8,523 |
|
|
9,096 |
|
|
9,828 |
|
|
8,978 |
|
|
7,581 |
|
Residential real estate |
16,062 |
|
|
15,825 |
|
|
17,214 |
|
|
17,977 |
|
|
14,743 |
|
Premium finance receivables - commercial |
13,802 |
|
|
14,832 |
|
|
17,342 |
|
|
12,163 |
|
|
9,827 |
|
Premium finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
355 |
|
|
563 |
|
|
720 |
|
|
740 |
|
|
540 |
|
Total non-accrual loans |
114,844 |
|
|
77,899 |
|
|
80,936 |
|
|
77,602 |
|
|
61,500 |
|
Total non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
63,709 |
|
|
18,388 |
|
|
14,007 |
|
|
15,696 |
|
|
13,931 |
|
Commercial real estate |
17,515 |
|
|
19,195 |
|
|
21,825 |
|
|
22,048 |
|
|
14,878 |
|
Home equity |
8,523 |
|
|
9,096 |
|
|
9,828 |
|
|
8,978 |
|
|
7,581 |
|
Residential real estate |
16,062 |
|
|
15,825 |
|
|
17,214 |
|
|
21,255 |
|
|
14,743 |
|
Premium finance receivables - commercial |
20,830 |
|
|
19,991 |
|
|
25,889 |
|
|
21,405 |
|
|
19,411 |
|
Premium finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
6,740 |
|
Consumer and other |
588 |
|
|
787 |
|
|
927 |
|
|
780 |
|
|
699 |
|
Total non-performing loans |
$ |
127,227 |
|
|
$ |
83,282 |
|
|
$ |
89,690 |
|
|
$ |
90,162 |
|
|
$ |
77,983 |
|
Other real estate owned |
14,924 |
|
|
18,925 |
|
|
18,481 |
|
|
20,244 |
|
|
17,312 |
|
Other real estate owned - from acquisitions |
13,379 |
|
|
16,406 |
|
|
18,117 |
|
|
20,402 |
|
|
20,066 |
|
Other repossessed assets |
294 |
|
|
305 |
|
|
113 |
|
|
153 |
|
|
301 |
|
Total non-performing assets |
$ |
155,824 |
|
|
$ |
118,918 |
|
|
$ |
126,401 |
|
|
$ |
130,961 |
|
|
$ |
115,662 |
|
TDRs performing under the contractual terms of the
loan agreement |
$ |
31,487 |
|
|
$ |
57,249 |
|
|
$ |
39,562 |
|
|
$ |
39,683 |
|
|
$ |
26,972 |
|
Total non-performing loans by category as a percent of its
own respective category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
0.85 |
% |
|
0.25 |
% |
|
0.20 |
% |
|
0.23 |
% |
|
0.22 |
% |
Commercial real estate |
0.26 |
|
|
0.29 |
|
|
0.33 |
|
|
0.34 |
|
|
0.23 |
|
Home equity |
1.47 |
|
|
1.53 |
|
|
1.57 |
|
|
1.35 |
|
|
1.13 |
|
Residential real estate |
1.74 |
|
|
1.77 |
|
|
1.98 |
|
|
2.55 |
|
|
1.87 |
|
Premium finance receivables - commercial |
0.72 |
|
|
0.71 |
|
|
1.00 |
|
|
0.81 |
|
|
0.73 |
|
Premium finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.18 |
|
Consumer and other |
0.51 |
|
|
0.65 |
|
|
0.87 |
|
|
0.72 |
|
|
0.53 |
|
Total loans, net of unearned income |
0.55 |
% |
|
0.37 |
% |
|
0.41 |
% |
|
0.42 |
% |
|
0.37 |
% |
Total non-performing assets as a percentage
of total assets |
0.52 |
% |
|
0.40 |
% |
|
0.44 |
% |
|
0.47 |
% |
|
0.42 |
% |
Allowance for loan losses as a percentage of
total non-performing loans |
117.71 |
% |
|
172.19 |
% |
|
155.54 |
% |
|
152.95 |
% |
|
170.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $34.7
million, $8.1 million, $8.1 million, $10.1 million and $6.2 million
as of September 30, 2018, June 30, 2018, March 31, 2018,
December 31, 2017 and September 30, 2017, respectively.
(3) Includes $2.6 million of non-performing loans and
$2.9 million of other real estate owned reclassified from covered
assets as a result of the termination of all existing loss share
agreements with the FDIC during the fourth quarter of
2017.
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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