ROSEMONT, Ill., Jan. 22, 2019 (GLOBE NEWSWIRE)
-- Wintrust Financial Corporation (“Wintrust” or “the Company”)
(Nasdaq: WTFC) announced record net income of $343.2 million or
$5.86 per diluted common share for the year ended December 31, 2018
compared to net income of $257.7 million or $4.40 per diluted
common share for the same period of 2017. The Company recorded net
income of $79.7 million or $1.35 per diluted common share for the
fourth quarter of 2018 compared to net income of $91.9 million or
$1.57 per diluted common share for the third quarter of 2018 and
$68.8 million or $1.17 per diluted common share for the fourth
quarter of 2017.
Highlights of the Fourth Quarter of 2018
*:
- Total period-end loans increased by $697 million from the prior
quarter. The increase included $119 million of loans acquired in
relation to the previously-announced acquisition of certain assets
and assumption of certain liabilities of American Enterprise Bank
("AEB") completed in early December.
- Total deposits increased by $1.2 billion from the prior
quarter. This increase included $151 million of deposits assumed in
relation to AEB as well as additional incremental deposits
generated subsequent to the previously-announced acquisition of
Elektra Holding Company, LLC ("Elektra"), the parent company of
Chicago Deferred Exchange Company, LLC ("CDEC"), offset by a
reduction in brokered funds.
- Period-end total loans outstanding ended the year $657 million
higher than total average loans outstanding during the fourth
quarter of 2018, providing positive momentum for net interest
income in the first quarter of 2019.
- Net interest margin increased by two basis points from the
prior quarter which combined with $580 million of average earning
asset growth created an increase in net interest income of $6.5
million from the prior quarter.
- Market volatility and recent acquisitions resulted in the
following items negatively impacting fourth quarter 2018 pre-tax
earnings:
- An $8.5 million negative fair value adjustment recognized on
mortgage servicing rights related to changes in valuation
assumptions and pay-offs contributed to mortgage banking revenue
decreasing by $17.8 million compared to the third quarter of
2018. Production revenue decreased due to lower origination
volumes and lower revenue margins.
- Recognized unrealized losses on equity securities of $2.6
million.
- Recognized a $1.1 million foreign currency remeasurement loss,
primarily related to weakness in Canadian currency.
- Incurred $1.6 million of acquisition-related expenses.
- Non-performing assets decreased by $17.5 million, now
representing 0.44% of total assets. Non-performing loans decreased
by $14.0 million while other real-estate owned decreased $3.5
million compared to the end of the third quarter of 2018.
- Opened one new branch in the Brighton Park neighborhood of
Chicago, Illinois, increasing our total branches to 167
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 record net income of $343.2
million for the year ended December 31, 2018, the eighth
consecutive year of record net income. Net income was $79.7
million for the fourth quarter of 2018, down from the third quarter
of 2018 primarily due to market related adjustments resulting from
quickly declining interest rates and lower equity markets late in
the year. These market related adjustments and
acquisition-related expenses incurred in the fourth quarter
negatively impacted our net overhead ratio by 18 basis
points. During the fourth quarter, total assets and
deposits grew by over $1 billion while we
leveraged acquisitions to enhance our deposit mix. A
substantial amount of the balance sheet growth occurred near the
end of the quarter, which positions us well for the first quarter
of 2019. Additionally, we improved our net interest margin by
two basis points and have seen deposit costs stabilizing. The
improvement in our funding mix should allow for further net
interest margin expansion in the first quarter of 2019."
Mr. Wehmer continued, "We experienced strong
loan growth in our commercial, commercial real-estate and premium
finance receivables portfolios during the fourth quarter,
increasing our total loans outstanding by $697 million. Our
loan pipelines remain consistently strong, and reflect
opportunities to continue to grow loan balances during 2019.
Deposit growth outpaced loan growth during the fourth quarter,
lowering our loan to deposit ratio to 91.3% at year-end.
Organic deposit growth in the fourth quarter occurred across all
deposit categories, except time certificates of deposit. The
previously mentioned CDEC acquisition allowed the Company to
bring $1.1 billion of low cost funding into our banks. The
new deposit source was utilized to optimize the balance sheet by
reducing outstanding wholesale funding positions, including $696
million of wholesale wealth management deposits, $75 million of
maturing brokered CDs and $200 million of short-term Federal Home
Loan Bank advances. We believe that we can continue to grow
the CDEC deposit base which will further drive down the Company’s
loan to deposit ratio to our desired operating range and enable us
to expand our investment portfolio if opportunities and market
conditions that meet our standards arise."
Commenting on credit quality, Mr. Wehmer noted,
"During the fourth quarter of 2018, the Company continued its
practice of addressing and resolving non-performing credits in a
timely fashion. Total non-performing assets declined $17.5
million during the fourth quarter, dropping to 0.44% of total
assets. Both non-performing loans and other real-estate owned
declined during the quarter. Additionally, near-term 60 to 89
day delinquent loans declined to $34.2 million or only 0.1% of
total loans in the fourth quarter of 2018. The allowance for
loan losses as a percentage of non-performing loans ended the year
at 135%. Net charge-offs for the fourth quarter were 12 basis
points of total average loan balances with full year net
charge-offs at a historically low level of nine basis points of
total average loan balances. We believe that the Company’s
reserves remain appropriate. The Company begins 2019 with
credit quality in a very strong position but will continue to be
diligent in its review of credit."
Mr. Wehmer further commented, “Our mortgage
banking and wealth management businesses were both impacted by
volatile markets in the fourth quarter. Mortgage banking
revenue decreased $17.8 million. The mortgage origination
environment in the fourth quarter was challenging as normal
seasonality was further pressured by declining demand leading to
lower origination volumes and production margins. Origination
volumes decreased to $927.8 million, down from $1.2 billion in the
third quarter. Home purchase activity continues to make up
the bulk of our originations accounting for 71% of origination
volumes in the fourth quarter. For much of the fourth quarter,
mortgage rates increased, however, during the closing weeks of
2018, a sudden shift downward in rates contributed to the negative
fair value adjustment on our mortgage servicing rights portfolio of
$8.5 million related to changes in valuation assumptions and
pay-offs. We continue to focus on efficiencies in our
delivery channels and our operating costs in our mortgage banking
area. Our wealth management businesses experienced headwinds
in the fourth quarter due to declining equity prices. Despite
these headwinds, wealth management revenue was essentially flat to
the third quarter of 2018."
Turning to the future, Mr. Wehmer stated, “As
2019 begins, we expect our growth engines to continue their
momentum. We expect continued organic growth in all areas of
our businesses. Total period-end loans outstanding exceeded
fourth quarter total average loans by $657 million, providing
momentum for net interest income into the first quarter of
2019. Net interest margin is expected to improve in first
quarter of 2019 fueled by the CDEC acquisition and stabilizing
retail deposit costs. We will continue 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.
Evaluating strategic acquisitions and organic branch growth will
also be a part of our overall growth strategy with the continued
goal of becoming Chicago’s bank and Wisconsin’s bank. We
believe our opportunities for both internal growth and
external growth remain consistently strong."
The graphs below illustrate certain highlights
of the fourth quarter of 2018 and the year ended December 31,
2018.
http://resource.globenewswire.com/Resource/Download/34219f8f-0c04-4502-9e45-6f5f0582ff85
Wintrust’s key operating measures and growth
rates for the fourth quarter of 2018, as compared to the
sequential and linked quarters, are shown in the table below:
|
|
|
|
|
|
|
|
% or(4)
basis point (bp)
change from
3rd Quarter
2018 |
|
% or
basis point (bp)
change from
4th Quarter
2017 |
|
|
Three Months Ended |
|
|
(Dollars in
thousands) |
|
December 31,
2018 |
|
September 30,
2018 |
|
December 31,
2017 |
|
|
Net income |
|
$ |
79,657 |
|
|
$ |
91,948 |
|
|
$ |
68,781 |
|
|
(13 |
) |
% |
|
16 |
|
% |
Net income per common
share – diluted |
|
$ |
1.35 |
|
|
$ |
1.57 |
|
|
$ |
1.17 |
|
|
(14 |
) |
% |
|
15 |
|
% |
Net revenue
(1) |
|
$ |
329,396 |
|
|
$ |
347,493 |
|
|
$ |
300,137 |
|
|
(5 |
) |
% |
|
10 |
|
% |
Net interest
income |
|
254,088 |
|
|
247,563 |
|
|
219,099 |
|
|
3 |
|
% |
|
16 |
|
% |
Net interest
margin |
|
3.61 |
% |
|
3.59 |
% |
|
3.45 |
% |
|
2 |
|
bp |
|
16 |
|
bp |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
|
3.63 |
% |
|
3.61 |
% |
|
3.49 |
% |
|
2 |
|
bp |
|
14 |
|
bp |
Net overhead ratio
(3) |
|
1.79 |
% |
|
1.53 |
% |
|
1.69 |
% |
|
26 |
|
bp |
|
10 |
|
bp |
Return on average
assets |
|
1.05 |
% |
|
1.24 |
% |
|
1.00 |
% |
|
(19 |
) |
bp |
|
5 |
|
bp |
Return on average
common equity |
|
10.01 |
% |
|
11.86 |
% |
|
9.39 |
% |
|
(185 |
) |
bp |
|
62 |
|
bp |
Return on
average tangible common equity (non-GAAP) (2) |
|
12.48 |
% |
|
14.64 |
% |
|
11.65 |
% |
|
(216 |
) |
bp |
|
83 |
|
bp |
At end of
period |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
31,241,521 |
|
|
$ |
30,142,731 |
|
|
$ |
27,915,970 |
|
|
14 |
|
% |
|
12 |
|
% |
Total loans
(5) |
|
23,820,691 |
|
|
23,123,951 |
|
|
21,640,797 |
|
|
12 |
|
% |
|
10 |
|
% |
Total deposits |
|
26,094,678 |
|
|
24,916,715 |
|
|
23,183,347 |
|
|
19 |
|
% |
|
13 |
|
% |
Total
shareholders’ equity |
|
3,267,570 |
|
|
3,179,822 |
|
|
2,976,939 |
|
|
11 |
|
% |
|
10 |
|
% |
(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 |
|
Years Ended |
(Dollars in
thousands, except per share data) |
|
December 31,
2018 |
|
September 30,
2018 |
|
December 31,
2017 |
|
December 31,
2018 |
|
December 31,
2017 |
Selected
Financial Condition Data (at end of period): |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
31,241,521 |
|
|
$ |
30,142,731 |
|
|
$ |
27,915,970 |
|
|
|
|
|
Total loans
(7) |
|
23,820,691 |
|
|
23,123,951 |
|
|
21,640,797 |
|
|
|
|
|
Total deposits |
|
26,094,678 |
|
|
24,916,715 |
|
|
23,183,347 |
|
|
|
|
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
|
|
|
Total shareholders’
equity |
|
3,267,570 |
|
|
3,179,822 |
|
|
2,976,939 |
|
|
|
|
|
Selected
Statements of Income Data: |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
254,088 |
|
|
$ |
247,563 |
|
|
$ |
219,099 |
|
|
$ |
964,903 |
|
|
$ |
832,076 |
|
Net revenue
(1) |
|
329,396 |
|
|
347,493 |
|
|
300,137 |
|
|
1,321,053 |
|
|
1,151,582 |
|
Net income |
|
79,657 |
|
|
91,948 |
|
|
68,781 |
|
|
343,166 |
|
|
257,682 |
|
Net income per common
share – Basic |
|
$ |
1.38 |
|
|
$ |
1.59 |
|
|
$ |
1.19 |
|
|
$ |
5.95 |
|
|
$ |
4.53 |
|
Net income per common
share – Diluted |
|
$ |
1.35 |
|
|
$ |
1.57 |
|
|
$ |
1.17 |
|
|
$ |
5.86 |
|
|
$ |
4.40 |
|
Selected
Financial Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
3.61 |
% |
|
3.59 |
% |
|
3.45 |
% |
|
3.59 |
% |
|
3.41 |
% |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
|
3.63 |
% |
|
3.61 |
% |
|
3.49 |
% |
|
3.61 |
% |
|
3.44 |
% |
Non-interest income to
average assets |
|
0.99 |
% |
|
1.34 |
% |
|
1.18 |
% |
|
1.23 |
% |
|
1.21 |
% |
Non-interest expense to
average assets |
|
2.78 |
% |
|
2.87 |
% |
|
2.87 |
% |
|
2.85 |
% |
|
2.78 |
% |
Net overhead ratio
(3) |
|
1.79 |
% |
|
1.53 |
% |
|
1.69 |
% |
|
1.62 |
% |
|
1.56 |
% |
Return on average
assets |
|
1.05 |
% |
|
1.24 |
% |
|
1.00 |
% |
|
1.18 |
% |
|
0.98 |
% |
Return on average
common equity |
|
10.01 |
% |
|
11.86 |
% |
|
9.39 |
% |
|
11.26 |
% |
|
9.26 |
% |
Return on average
tangible common equity (non-GAAP) (2) |
|
12.48 |
% |
|
14.64 |
% |
|
11.65 |
% |
|
13.95 |
% |
|
11.63 |
% |
Average total
assets |
|
$ |
30,179,887 |
|
|
$ |
29,525,109 |
|
|
$ |
27,179,484 |
|
|
$ |
29,028,420 |
|
|
$ |
26,369,702 |
|
Average total
shareholders’ equity |
|
3,200,654 |
|
|
3,131,943 |
|
|
2,942,999 |
|
|
3,098,740 |
|
|
2,842,081 |
|
Average loans to
average deposits ratio (excluding covered loans) |
|
92.4 |
% |
|
92.2 |
% |
|
92.3 |
% |
|
93.7 |
% |
|
92.7 |
% |
Period-end loans to
deposits ratio (excluding covered loans) |
|
91.3 |
% |
|
92.8 |
% |
|
93.3 |
% |
|
|
|
|
Common Share Data
at end of period: |
|
|
|
|
|
|
|
|
|
|
Market price per common
share |
|
$ |
66.49 |
|
|
$ |
84.94 |
|
|
$ |
82.37 |
|
|
|
|
|
Book value per common
share (2) |
|
$ |
55.71 |
|
|
$ |
54.19 |
|
|
$ |
50.96 |
|
|
|
|
|
Tangible common book
value per share (2) |
|
$ |
44.73 |
|
|
$ |
44.16 |
|
|
$ |
41.68 |
|
|
|
|
|
Common shares
outstanding |
|
56,407,558 |
|
|
56,377,169 |
|
|
55,965,207 |
|
|
|
|
|
Other Data at end
of period:(6) |
|
|
|
|
|
|
|
|
|
|
Leverage Ratio
(4) |
|
9.1 |
% |
|
9.3 |
% |
|
9.3 |
% |
|
|
|
|
Tier 1 capital to
risk-weighted assets (4) |
|
9.6 |
% |
|
10.0 |
% |
|
9.9 |
% |
|
|
|
|
Common equity Tier 1
capital to risk-weighted assets (4) |
|
9.2 |
% |
|
9.5 |
% |
|
9.4 |
% |
|
|
|
|
Total capital to
risk-weighted assets (4) |
|
11.6 |
% |
|
12.0 |
% |
|
12.0 |
% |
|
|
|
|
Allowance for credit
losses (5) |
|
$ |
154,164 |
|
|
$ |
151,001 |
|
|
$ |
139,174 |
|
|
|
|
|
Non-performing
loans |
|
113,234 |
|
|
127,227 |
|
|
90,162 |
|
|
|
|
|
Allowance for credit
losses to total loans (5) |
|
0.65 |
% |
|
0.65 |
% |
|
0.64 |
% |
|
|
|
|
Non-performing loans to
total loans |
|
0.48 |
% |
|
0.55 |
% |
|
0.42 |
% |
|
|
|
|
Number of: |
|
|
|
|
|
|
|
|
|
|
Bank
subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
|
|
|
Banking
offices |
|
167 |
|
|
166 |
|
|
157 |
|
|
|
|
|
(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) |
|
December 31,
2018 |
|
September 30,
2018 |
|
December 31,
2017 |
Assets |
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
392,142 |
|
|
$ |
279,936 |
|
|
$ |
277,534 |
|
Federal funds sold and
securities purchased under resale agreements |
|
58 |
|
|
57 |
|
|
57 |
|
Interest bearing
deposits with banks |
|
1,099,594 |
|
|
1,137,044 |
|
|
1,063,242 |
|
Available-for-sale
securities, at fair value |
|
2,126,081 |
|
|
2,164,985 |
|
|
1,803,666 |
|
Held-to-maturity
securities, at amortized cost |
|
1,067,439 |
|
|
966,438 |
|
|
826,449 |
|
Trading account
securities |
|
1,692 |
|
|
688 |
|
|
995 |
|
Equity securities with
readily determinable fair value |
|
34,717 |
|
|
36,414 |
|
|
— |
|
Federal Home Loan Bank
and Federal Reserve Bank stock |
|
91,354 |
|
|
99,998 |
|
|
89,989 |
|
Brokerage customer
receivables |
|
12,609 |
|
|
15,649 |
|
|
26,431 |
|
Mortgage loans
held-for-sale |
|
264,070 |
|
|
338,111 |
|
|
313,592 |
|
Loans, net of unearned
income |
|
23,820,691 |
|
|
23,123,951 |
|
|
21,640,797 |
|
Allowance for loan
losses |
|
(152,770 |
) |
|
(149,756 |
) |
|
(137,905 |
) |
Net
loans |
|
23,667,921 |
|
|
22,974,195 |
|
|
21,502,892 |
|
Premises and equipment,
net |
|
671,169 |
|
|
664,469 |
|
|
621,895 |
|
Lease investments,
net |
|
233,208 |
|
|
199,241 |
|
|
212,335 |
|
Accrued interest
receivable and other assets |
|
696,707 |
|
|
700,568 |
|
|
567,374 |
|
Trade date securities
receivable |
|
263,523 |
|
|
— |
|
|
90,014 |
|
Goodwill and other
intangible assets |
|
619,237 |
|
|
564,938 |
|
|
519,505 |
|
Total assets |
|
$ |
31,241,521 |
|
|
$ |
30,142,731 |
|
|
$ |
27,915,970 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Non-interest bearing |
|
$ |
6,569,880 |
|
|
$ |
6,399,213 |
|
|
$ |
6,792,497 |
|
Interest
bearing |
|
19,524,798 |
|
|
18,517,502 |
|
|
16,390,850 |
|
Total deposits |
|
26,094,678 |
|
|
24,916,715 |
|
|
23,183,347 |
|
Federal Home Loan Bank
advances |
|
426,326 |
|
|
615,000 |
|
|
559,663 |
|
Other borrowings |
|
393,855 |
|
|
373,571 |
|
|
266,123 |
|
Subordinated notes |
|
139,210 |
|
|
139,172 |
|
|
139,088 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Accrued interest
payable and other liabilities |
|
666,316 |
|
|
664,885 |
|
|
537,244 |
|
Total
liabilities |
|
27,973,951 |
|
|
26,962,909 |
|
|
24,939,031 |
|
Shareholders’
Equity: |
|
|
|
|
|
|
Preferred
stock |
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
Common
stock |
|
56,518 |
|
|
56,486 |
|
|
56,068 |
|
Surplus |
|
1,557,984 |
|
|
1,553,353 |
|
|
1,529,035 |
|
Treasury
stock |
|
(5,634 |
) |
|
(5,547 |
) |
|
(4,986 |
) |
Retained
earnings |
|
1,610,574 |
|
|
1,543,680 |
|
|
1,313,657 |
|
Accumulated other comprehensive loss |
|
(76,872 |
) |
|
(93,150 |
) |
|
(41,835 |
) |
Total
shareholders’ equity |
|
3,267,570 |
|
|
3,179,822 |
|
|
2,976,939 |
|
Total liabilities and shareholders’ equity |
|
$ |
31,241,521 |
|
|
$ |
30,142,731 |
|
|
$ |
27,915,970 |
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
|
Three Months Ended |
|
Years Ended |
(In thousands,
except per share data) |
December 31,
2018 |
|
September 30,
2018 |
|
December 31,
2017 |
|
December 31,
2018 |
|
December 31,
2017 |
Interest
income |
|
|
|
|
|
|
|
|
|
Interest
and fees on loans |
$ |
283,311 |
|
|
$ |
271,134 |
|
|
$ |
226,447 |
|
|
$ |
1,044,502 |
|
|
$ |
856,549 |
|
Mortgage
loans held-for-sale |
3,409 |
|
|
5,285 |
|
|
3,291 |
|
|
15,738 |
|
|
12,332 |
|
Interest
bearing deposits with banks |
5,628 |
|
|
5,423 |
|
|
2,723 |
|
|
17,090 |
|
|
9,252 |
|
Federal
funds sold and securities purchased under resale agreements |
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
2 |
|
Investment securities |
26,656 |
|
|
21,710 |
|
|
18,160 |
|
|
87,382 |
|
|
63,315 |
|
Trading
account securities |
14 |
|
|
11 |
|
|
2 |
|
|
43 |
|
|
25 |
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
1,343 |
|
|
1,235 |
|
|
1,067 |
|
|
5,331 |
|
|
4,370 |
|
Brokerage
customer receivables |
235 |
|
|
164 |
|
|
150 |
|
|
723 |
|
|
623 |
|
Total
interest income |
320,596 |
|
|
304,962 |
|
|
251,840 |
|
|
1,170,810 |
|
|
946,468 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
Interest
on deposits |
55,975 |
|
|
48,736 |
|
|
24,930 |
|
|
166,553 |
|
|
83,326 |
|
Interest
on Federal Home Loan Bank advances |
2,563 |
|
|
1,947 |
|
|
2,124 |
|
|
12,412 |
|
|
8,798 |
|
Interest
on other borrowings |
3,199 |
|
|
2,003 |
|
|
1,600 |
|
|
8,599 |
|
|
5,370 |
|
Interest
on subordinated notes |
1,788 |
|
|
1,773 |
|
|
1,786 |
|
|
7,121 |
|
|
7,116 |
|
Interest
on junior subordinated debentures |
2,983 |
|
|
2,940 |
|
|
2,301 |
|
|
11,222 |
|
|
9,782 |
|
Total
interest expense |
66,508 |
|
|
57,399 |
|
|
32,741 |
|
|
205,907 |
|
|
114,392 |
|
Net interest
income |
254,088 |
|
|
247,563 |
|
|
219,099 |
|
|
964,903 |
|
|
832,076 |
|
Provision for credit
losses |
10,401 |
|
|
11,042 |
|
|
7,772 |
|
|
34,832 |
|
|
29,768 |
|
Net interest income
after provision for credit losses |
243,687 |
|
|
236,521 |
|
|
211,327 |
|
|
930,071 |
|
|
802,308 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
Wealth
management |
22,726 |
|
|
22,634 |
|
|
21,910 |
|
|
90,963 |
|
|
81,766 |
|
Mortgage
banking |
24,182 |
|
|
42,014 |
|
|
27,411 |
|
|
136,990 |
|
|
113,472 |
|
Service
charges on deposit accounts |
9,065 |
|
|
9,331 |
|
|
8,907 |
|
|
36,404 |
|
|
34,513 |
|
(Losses)
gains on investment securities, net |
(2,649 |
) |
|
90 |
|
|
14 |
|
|
(2,898 |
) |
|
45 |
|
Fees from
covered call options |
626 |
|
|
627 |
|
|
1,610 |
|
|
3,519 |
|
|
4,402 |
|
Trading
(losses) gains, net |
(155 |
) |
|
(61 |
) |
|
24 |
|
|
11 |
|
|
(845 |
) |
Operating
lease income, net |
10,882 |
|
|
9,132 |
|
|
8,598 |
|
|
38,451 |
|
|
29,646 |
|
Other |
10,631 |
|
|
16,163 |
|
|
12,564 |
|
|
52,710 |
|
|
56,507 |
|
Total
non-interest income |
75,308 |
|
|
99,930 |
|
|
81,038 |
|
|
356,150 |
|
|
319,506 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
122,111 |
|
|
123,855 |
|
|
118,009 |
|
|
480,077 |
|
|
430,078 |
|
Equipment |
11,523 |
|
|
10,827 |
|
|
9,500 |
|
|
42,949 |
|
|
38,358 |
|
Operating
lease equipment depreciation |
8,462 |
|
|
7,370 |
|
|
7,015 |
|
|
29,305 |
|
|
24,107 |
|
Occupancy, net |
15,980 |
|
|
14,404 |
|
|
14,154 |
|
|
57,814 |
|
|
52,920 |
|
Data
processing |
8,447 |
|
|
9,335 |
|
|
7,915 |
|
|
35,027 |
|
|
31,495 |
|
Advertising and marketing |
9,414 |
|
|
11,120 |
|
|
7,382 |
|
|
41,140 |
|
|
30,830 |
|
Professional fees |
9,259 |
|
|
9,914 |
|
|
8,879 |
|
|
32,306 |
|
|
27,835 |
|
Amortization of other intangible assets |
1,407 |
|
|
1,163 |
|
|
1,028 |
|
|
4,571 |
|
|
4,401 |
|
FDIC
insurance |
4,044 |
|
|
4,205 |
|
|
4,324 |
|
|
17,209 |
|
|
16,231 |
|
OREO
expense, net |
1,618 |
|
|
596 |
|
|
599 |
|
|
6,120 |
|
|
3,593 |
|
Other |
19,068 |
|
|
20,848 |
|
|
17,775 |
|
|
79,570 |
|
|
71,969 |
|
Total
non-interest expense |
211,333 |
|
|
213,637 |
|
|
196,580 |
|
|
826,088 |
|
|
731,817 |
|
Income before
taxes |
107,662 |
|
|
122,814 |
|
|
95,785 |
|
|
460,133 |
|
|
389,997 |
|
Income tax expense |
28,005 |
|
|
30,866 |
|
|
27,004 |
|
|
116,967 |
|
|
132,315 |
|
Net
income |
$ |
79,657 |
|
|
$ |
91,948 |
|
|
$ |
68,781 |
|
|
$ |
343,166 |
|
|
$ |
257,682 |
|
Preferred stock
dividends |
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
8,200 |
|
|
9,778 |
|
Net income
applicable to common shares |
$ |
77,607 |
|
|
$ |
89,898 |
|
|
$ |
66,731 |
|
|
$ |
334,966 |
|
|
$ |
247,904 |
|
Net income per
common share - Basic |
$ |
1.38 |
|
|
$ |
1.59 |
|
|
$ |
1.19 |
|
|
$ |
5.95 |
|
|
$ |
4.53 |
|
Net income per
common share - Diluted |
$ |
1.35 |
|
|
$ |
1.57 |
|
|
$ |
1.17 |
|
|
$ |
5.86 |
|
|
$ |
4.40 |
|
Cash dividends
declared per common share |
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
0.14 |
|
|
$ |
0.76 |
|
|
$ |
0.56 |
|
Weighted average common
shares outstanding |
56,395 |
|
|
56,366 |
|
|
55,924 |
|
|
56,300 |
|
|
54,703 |
|
Dilutive potential
common shares |
892 |
|
|
918 |
|
|
1,010 |
|
|
908 |
|
|
1,983 |
|
Average common shares
and dilutive common shares |
57,287 |
|
|
57,284 |
|
|
56,934 |
|
|
57,208 |
|
|
56,686 |
|
EARNINGS PER SHARE
The following table shows the computation of
basic and diluted earnings per share for the periods indicated:
|
|
|
Three Months Ended |
|
Years Ended |
(In thousands,
except per share data) |
|
|
December 31,
2018 |
|
September 30,
2018 |
|
December 31,
2017 |
|
December 31,
2018 |
|
December 31,
2017 |
Net income |
|
|
$ |
79,657 |
|
|
$ |
91,948 |
|
|
$ |
68,781 |
|
|
$ |
343,166 |
|
|
$ |
257,682 |
|
Less: Preferred stock
dividends |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
8,200 |
|
|
9,778 |
|
Net income applicable
to common shares—Basic |
(A) |
|
77,607 |
|
|
89,898 |
|
|
66,731 |
|
|
334,966 |
|
|
247,904 |
|
Add: Dividends on
convertible preferred stock, if dilutive |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,578 |
|
Net income applicable
to common shares—Diluted |
(B) |
|
77,607 |
|
|
89,898 |
|
|
66,731 |
|
|
334,966 |
|
|
249,482 |
|
Weighted average common
shares outstanding |
(C) |
|
56,395 |
|
|
56,366 |
|
|
55,924 |
|
|
56,300 |
|
|
54,703 |
|
Effect of dilutive
potential common shares: |
|
|
|
|
|
|
|
|
|
|
|
Common
stock equivalents |
|
|
892 |
|
|
918 |
|
|
1,010 |
|
|
908 |
|
|
998 |
|
Convertible preferred stock, if dilutive |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
985 |
|
Weighted average common
shares and effect of dilutive potential common shares |
(D) |
|
57,287 |
|
|
57,284 |
|
|
56,934 |
|
|
57,208 |
|
|
56,686 |
|
Net income per common
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
(A/C) |
|
$ |
1.38 |
|
|
$ |
1.59 |
|
|
$ |
1.19 |
|
|
$ |
5.95 |
|
|
$ |
4.53 |
|
Diluted |
(B/D) |
|
$ |
1.35 |
|
|
$ |
1.57 |
|
|
$ |
1.17 |
|
|
$ |
5.86 |
|
|
$ |
4.40 |
|
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 |
|
Years Ended |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
(Dollars and shares
in thousands) |
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Calculation of
Net Interest Margin and Efficiency Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Interest
Income (GAAP) |
$ |
320,596 |
|
|
$ |
304,962 |
|
|
$ |
284,047 |
|
|
$ |
261,205 |
|
|
$ |
251,840 |
|
|
$ |
1,170,810 |
|
|
$ |
946,468 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Loans |
980 |
|
|
941 |
|
|
812 |
|
|
670 |
|
|
1,106 |
|
|
3,403 |
|
|
3,760 |
|
-
Liquidity Management Assets |
586 |
|
|
575 |
|
|
566 |
|
|
531 |
|
|
1,019 |
|
|
2,258 |
|
|
3,713 |
|
-
Other Earning Assets |
4 |
|
|
3 |
|
|
1 |
|
|
3 |
|
|
2 |
|
|
11 |
|
|
14 |
|
(B) Interest
Income - FTE |
$ |
322,166 |
|
|
$ |
306,481 |
|
|
$ |
285,426 |
|
|
$ |
262,409 |
|
|
$ |
253,967 |
|
|
$ |
1,176,482 |
|
|
$ |
953,955 |
|
(C) Interest
Expense (GAAP) |
66,508 |
|
|
57,399 |
|
|
45,877 |
|
|
36,123 |
|
|
32,741 |
|
|
205,907 |
|
|
114,392 |
|
(D) Net
Interest Income - FTE (B minus C) |
$ |
255,658 |
|
|
$ |
249,082 |
|
|
$ |
239,549 |
|
|
$ |
226,286 |
|
|
$ |
221,226 |
|
|
$ |
970,575 |
|
|
$ |
839,563 |
|
(E) Net
Interest Income (GAAP) (A minus C) |
$ |
254,088 |
|
|
$ |
247,563 |
|
|
$ |
238,170 |
|
|
$ |
225,082 |
|
|
$ |
219,099 |
|
|
$ |
964,903 |
|
|
$ |
832,076 |
|
Net interest
margin (GAAP-derived) |
3.61 |
% |
|
3.59 |
% |
|
3.61 |
% |
|
3.54 |
% |
|
3.45 |
% |
|
3.59 |
% |
|
3.41 |
% |
Net
interest margin - FTE |
3.63 |
% |
|
3.61 |
% |
|
3.63 |
% |
|
3.56 |
% |
|
3.49 |
% |
|
3.61 |
% |
|
3.44 |
% |
(F) Non-interest
income |
$ |
75,308 |
|
|
$ |
99,930 |
|
|
$ |
95,233 |
|
|
$ |
85,679 |
|
|
$ |
81,038 |
|
|
$ |
356,150 |
|
|
$ |
319,506 |
|
(G) (Losses) gains on
investment securities, net |
(2,649 |
) |
|
90 |
|
|
12 |
|
|
(351 |
) |
|
14 |
|
|
(2,898 |
) |
|
45 |
|
(H) Non-interest
expense |
211,333 |
|
|
213,637 |
|
|
206,769 |
|
|
194,349 |
|
|
196,580 |
|
|
826,088 |
|
|
731,817 |
|
Efficiency
ratio (H/(E+F-G)) |
63.65 |
% |
|
61.50 |
% |
|
62.02 |
% |
|
62.47 |
% |
|
65.50 |
% |
|
62.40 |
% |
|
63.55 |
% |
Efficiency
ratio - FTE (H/(D+F-G)) |
63.35 |
% |
|
61.23 |
% |
|
61.76 |
% |
|
62.23 |
% |
|
65.04 |
% |
|
62.13 |
% |
|
63.14 |
% |
Calculation of
Tangible Common Equity ratio (at period end) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
3,267,570 |
|
|
$ |
3,179,822 |
|
|
$ |
3,106,871 |
|
|
$ |
3,031,250 |
|
|
$ |
2,976,939 |
|
|
|
|
|
Less: Non-convertible
preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
|
|
|
Less: Intangible
assets |
(619,237 |
) |
|
(564,938 |
) |
|
(531,371 |
) |
|
(533,910 |
) |
|
(519,505 |
) |
|
|
|
|
(I) Total tangible
common shareholders’ equity |
$ |
2,523,333 |
|
|
$ |
2,489,884 |
|
|
$ |
2,450,500 |
|
|
$ |
2,372,340 |
|
|
$ |
2,332,434 |
|
|
|
|
|
Total assets |
$ |
31,241,521 |
|
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
|
$ |
27,915,970 |
|
|
|
|
|
Less: Intangible
assets |
(619,237 |
) |
|
(564,938 |
) |
|
(531,371 |
) |
|
(533,910 |
) |
|
(519,505 |
) |
|
|
|
|
(J) Total tangible
assets |
$ |
30,622,284 |
|
|
$ |
29,577,793 |
|
|
$ |
28,933,217 |
|
|
$ |
27,922,862 |
|
|
$ |
27,396,465 |
|
|
|
|
|
Tangible common
equity ratio (I/J) |
8.2 |
% |
|
8.4 |
% |
|
8.5 |
% |
|
8.5 |
% |
|
8.5 |
% |
|
|
|
|
Calculation of
book value per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
3,267,570 |
|
|
$ |
3,179,822 |
|
|
$ |
3,106,871 |
|
|
$ |
3,031,250 |
|
|
$ |
2,976,939 |
|
|
|
|
|
Less: Preferred
stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
|
|
|
(K) Total common
equity |
$ |
3,142,570 |
|
|
$ |
3,054,822 |
|
|
$ |
2,981,871 |
|
|
$ |
2,906,250 |
|
|
$ |
2,851,939 |
|
|
|
|
|
(L) Actual common
shares outstanding |
56,408 |
|
|
56,377 |
|
|
56,329 |
|
|
56,256 |
|
|
55,965 |
|
|
|
|
|
Book value per
common share (K/L) |
$ |
55.71 |
|
|
$ |
54.19 |
|
|
$ |
52.94 |
|
|
$ |
51.66 |
|
|
$ |
50.96 |
|
|
|
|
|
Tangible common
book value per share (I/L) |
$ |
44.73 |
|
|
$ |
44.16 |
|
|
$ |
43.50 |
|
|
$ |
42.17 |
|
|
$ |
41.68 |
|
|
|
|
|
Calculation of
return on average common equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
(M) Net income
applicable to common shares |
$ |
77,607 |
|
|
$ |
89,898 |
|
|
$ |
87,530 |
|
|
$ |
79,931 |
|
|
$ |
66,731 |
|
|
$ |
334,966 |
|
|
$ |
247,904 |
|
Add: After-tax
intangible asset amortization |
1,041 |
|
|
871 |
|
|
734 |
|
|
761 |
|
|
738 |
|
|
3,407 |
|
|
2,907 |
|
(N) Tangible net income
applicable to common shares |
$ |
78,648 |
|
|
$ |
90,769 |
|
|
$ |
88,264 |
|
|
$ |
80,692 |
|
|
$ |
67,469 |
|
|
$ |
338,373 |
|
|
$ |
250,811 |
|
Total average
shareholders' equity |
$ |
3,200,654 |
|
|
$ |
3,131,943 |
|
|
$ |
3,064,154 |
|
|
$ |
2,995,592 |
|
|
$ |
2,942,999 |
|
|
$ |
3,098,740 |
|
|
$ |
2,842,081 |
|
Less: Average preferred
stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(165,114 |
) |
(O) Total average
common shareholders' equity |
$ |
3,075,654 |
|
|
$ |
3,006,943 |
|
|
$ |
2,939,154 |
|
|
$ |
2,870,592 |
|
|
$ |
2,817,999 |
|
|
$ |
2,973,740 |
|
|
$ |
2,676,967 |
|
Less: Average
intangible assets |
(574,757 |
) |
|
(547,552 |
) |
|
(533,496 |
) |
|
(536,676 |
) |
|
(519,626 |
) |
|
(548,223 |
) |
|
(519,910 |
) |
(P) Total average
tangible common shareholders’ equity |
$ |
2,500,897 |
|
|
$ |
2,459,391 |
|
|
$ |
2,405,658 |
|
|
$ |
2,333,916 |
|
|
$ |
2,298,373 |
|
|
$ |
2,425,517 |
|
|
$ |
2,157,057 |
|
Return on
average common equity, annualized (M/O) |
10.01 |
% |
|
11.86 |
% |
|
11.94 |
% |
|
11.29 |
% |
|
9.39 |
% |
|
11.26 |
% |
|
9.26 |
% |
Return on
average tangible common equity, annualized (N/P) |
12.48 |
% |
|
14.64 |
% |
|
14.72 |
% |
|
14.02 |
% |
|
11.65 |
% |
|
13.95 |
% |
|
11.63 |
% |
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 fourth quarter of 2018, revenue within
this unit was primarily driven by increased net interest income due
to increased earning assets and a higher net interest margin. The
net interest margin increased in the fourth quarter of 2018
compared to the third quarter of 2018 primarily as a result of
higher yields within the loan portfolio. Mortgage banking revenue
decreased by $17.8 million from $42.0 million for the third quarter
of 2018 to $24.2 million for the fourth quarter of 2018. The lower
revenue was primarily due to to lower origination volumes, lower
revenue margins and a $8.5 million negative fair value adjustment
recognized on mortgage servicing rights related to changes in
valuation assumptions and pay-offs. Originations during the current
period decreased to $927.8 million from $1.2 billion in the third
quarter of 2018. Home purchases represented 71% of loan origination
volume for the fourth 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
December 31, 2018, gross commercial and commercial real estate
loan pipelines totaled $1.1 billion, or $671.1 million when
adjusted for the probability of closing, compared to $1.1 billion,
or $693.5 million when adjusted for the probability of closing, at
September 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 fourth 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 $2.1 billion
during the fourth quarter of 2018 resulted in a $25.1 million
increase in average balances. The increase in average balances
along with higher yields on these loans resulted in a $2.8 million
increase in interest income attributed to this portfolio. The
Company's leasing business showed steady growth during the fourth
quarter of 2018, with its portfolio of assets, including capital
leases, loans and equipment on operating leases, increasing $132.7
million to $1.2 billion at the end of the fourth quarter of 2018.
Revenues from the Company's out-sourced administrative services
business remained steady, totaling approximately $1.3 million in
the fourth quarter of 2018 and $1.1 million in the third quarter of
2018.
Wealth Management
Through four separate subsidiaries within its
wealth management unit, the Company offers a full range of wealth
management services, including trust and investment services,
tax-deferred like-kind exchange services, asset management,
securities brokerage services and 401(k) and retirement plan
services. Wealth management revenue remained flat in the fourth
quarter of 2018 compared to the third quarter of 2018, totaling
$22.7 million in the current period. At December 31, 2018, the
Company’s wealth management subsidiaries had approximately $24.2
billion of assets under administration, which includes $3.6 billion
of assets owned by the Company and its subsidiary banks,
representing a $1.8 billion decrease from the $26.0 billion of
assets under administration at September 30, 2018. The
decrease in the fourth quarter of 2018 was primarily due to the
impact of market conditions on the value of assets under
administration. In December, the Company acquired CDEC, which
provides Qualified Intermediary services (as defined by U.S.
Treasury regulations) for taxpayers seeking to structure
tax-deferred like-kind exchanges under Internal Revenue Code
Section 1031.
LOANS
Loan Portfolio Mix and Growth Rates
|
|
|
|
|
|
|
|
% Growth |
(Dollars in
thousands) |
|
December 31,
2018 |
|
September 30,
2018 |
|
December 31,
2017 |
|
From (1) September 30,
2018 |
|
From
December 31,
2017 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
7,828,538 |
|
|
$ |
7,473,958 |
|
|
$ |
6,787,677 |
|
|
19 |
% |
|
15 |
% |
Commercial real estate |
|
6,933,252 |
|
|
6,746,774 |
|
|
6,580,618 |
|
|
11 |
|
|
5 |
|
Home
equity |
|
552,343 |
|
|
578,844 |
|
|
663,045 |
|
|
(18 |
) |
|
(17 |
) |
Residential real estate |
|
1,002,464 |
|
|
924,250 |
|
|
832,120 |
|
|
34 |
|
|
20 |
|
Premium
finance receivables - commercial |
|
2,841,659 |
|
|
2,885,327 |
|
|
2,634,565 |
|
|
(6 |
) |
|
8 |
|
Premium
finance receivables - life insurance |
|
4,541,794 |
|
|
4,398,971 |
|
|
4,035,059 |
|
|
13 |
|
|
13 |
|
Consumer
and other |
|
120,641 |
|
|
115,827 |
|
|
107,713 |
|
|
16 |
|
|
12 |
|
Total
loans, net of unearned income |
|
$ |
23,820,691 |
|
|
$ |
23,123,951 |
|
|
$ |
21,640,797 |
|
|
12 |
% |
|
10 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
33 |
% |
|
32 |
% |
|
31 |
% |
|
|
|
|
Commercial real estate |
|
29 |
|
|
29 |
|
|
30 |
|
|
|
|
|
Home
equity |
|
2 |
|
|
3 |
|
|
3 |
|
|
|
|
|
Residential real estate |
|
4 |
|
|
4 |
|
|
4 |
|
|
|
|
|
Premium
finance receivables - commercial |
|
12 |
|
|
12 |
|
|
12 |
|
|
|
|
|
Premium
finance receivables - life insurance |
|
19 |
|
|
19 |
|
|
19 |
|
|
|
|
|
Consumer
and other |
|
1 |
|
|
1 |
|
|
1 |
|
|
|
|
|
Total
loans, net of unearned income |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
(1) Annualized
Commercial and Commercial Real Estate Loan
Portfolios
|
|
As of December 31, 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 |
|
$ |
5,120,096 |
|
|
34.6 |
% |
|
$ |
34,298 |
|
|
$ |
— |
|
|
$ |
46,586 |
|
Franchise |
|
948,979 |
|
|
6.4 |
|
|
16,051 |
|
|
— |
|
|
8,919 |
|
Mortgage
warehouse lines of credit |
|
144,199 |
|
|
1.0 |
|
|
— |
|
|
— |
|
|
1,162 |
|
Asset-based lending |
|
1,026,056 |
|
|
7.0 |
|
|
635 |
|
|
— |
|
|
9,138 |
|
Leases |
|
565,680 |
|
|
3.8 |
|
|
— |
|
|
— |
|
|
1,502 |
|
PCI -
commercial loans (1) |
|
23,528 |
|
|
0.2 |
|
|
— |
|
|
3,313 |
|
|
519 |
|
Total commercial |
|
$ |
7,828,538 |
|
|
53.0 |
% |
|
$ |
50,984 |
|
|
$ |
3,313 |
|
|
$ |
67,826 |
|
Commercial Real
Estate: |
|
|
|
|
|
|
|
|
|
|
Construction |
|
$ |
760,824 |
|
|
5.2 |
% |
|
$ |
1,554 |
|
|
$ |
— |
|
|
$ |
8,999 |
|
Land |
|
141,481 |
|
|
1.0 |
|
|
107 |
|
|
— |
|
|
3,953 |
|
Office |
|
939,322 |
|
|
6.4 |
|
|
3,629 |
|
|
— |
|
|
6,239 |
|
Industrial |
|
902,248 |
|
|
6.1 |
|
|
285 |
|
|
— |
|
|
6,088 |
|
Retail |
|
892,478 |
|
|
6.0 |
|
|
10,753 |
|
|
— |
|
|
9,338 |
|
Multi-family |
|
976,560 |
|
|
6.6 |
|
|
311 |
|
|
— |
|
|
9,395 |
|
Mixed use
and other |
|
2,205,195 |
|
|
14.9 |
|
|
2,490 |
|
|
— |
|
|
16,210 |
|
PCI -
commercial real estate (1) |
|
115,144 |
|
|
0.8 |
|
|
— |
|
|
6,241 |
|
|
45 |
|
Total commercial real estate |
|
$ |
6,933,252 |
|
|
47.0 |
% |
|
$ |
19,129 |
|
|
$ |
6,241 |
|
|
$ |
60,267 |
|
Total commercial and commercial real estate |
|
$ |
14,761,790 |
|
|
100.0 |
% |
|
$ |
70,113 |
|
|
$ |
9,554 |
|
|
$ |
128,093 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
- collateral location by state: |
|
|
|
|
|
|
|
|
|
|
Illinois |
|
$ |
5,336,454 |
|
|
77.0 |
% |
|
|
|
|
|
|
Wisconsin |
|
684,425 |
|
|
9.9 |
|
|
|
|
|
|
|
Total primary markets |
|
$ |
6,020,879 |
|
|
86.9 |
% |
|
|
|
|
|
|
Indiana |
|
169,817 |
|
|
2.4 |
|
|
|
|
|
|
|
Florida |
|
52,237 |
|
|
0.8 |
|
|
|
|
|
|
|
Michigan |
|
40,110 |
|
|
0.6 |
|
|
|
|
|
|
|
Other (no
individual state greater than 0.6%) |
|
650,209 |
|
|
9.3 |
|
|
|
|
|
|
|
Total |
|
$ |
6,933,252 |
|
|
100.0 |
% |
|
|
|
|
|
|
(1) Purchased credit impaired
("PCI") loans represent loans acquired with evidence of credit
quality deterioration since origination, in accordance with ASC
310-30. Loan agings are based upon contractually required
payments.
DEPOSITS
Deposit Portfolio Mix and Growth Rates
|
|
|
|
|
|
|
|
% Growth |
(Dollars in
thousands) |
|
December 31,
2018 |
|
September 30,
2018 |
|
December 31,
2017 |
|
From (1)
September 30,
2018 |
|
From
December 31,
2017 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
6,569,880 |
|
|
$ |
6,399,213 |
|
|
$ |
6,792,497 |
|
|
11 |
% |
|
(3 |
)% |
NOW and
interest bearing demand deposits |
|
2,897,133 |
|
|
2,512,259 |
|
|
2,315,055 |
|
|
61 |
|
|
25 |
|
Wealth
management deposits (2) |
|
2,996,764 |
|
|
2,520,120 |
|
|
2,323,699 |
|
|
75 |
|
|
29 |
|
Money
market |
|
5,704,866 |
|
|
5,429,921 |
|
|
4,515,353 |
|
|
20 |
|
|
26 |
|
Savings |
|
2,665,194 |
|
|
2,595,164 |
|
|
2,829,373 |
|
|
11 |
|
|
(6 |
) |
Time
certificates of deposit |
|
5,260,841 |
|
|
5,460,038 |
|
|
4,407,370 |
|
|
(14 |
) |
|
19 |
|
Total
deposits |
|
$ |
26,094,678 |
|
|
$ |
24,916,715 |
|
|
$ |
23,183,347 |
|
|
19 |
% |
|
13 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
25 |
% |
|
26 |
% |
|
29 |
% |
|
|
|
|
NOW and
interest bearing demand deposits |
|
11 |
|
|
10 |
|
|
10 |
|
|
|
|
|
Wealth
management deposits (2) |
|
12 |
|
|
10 |
|
|
10 |
|
|
|
|
|
Money
market |
|
22 |
|
|
22 |
|
|
20 |
|
|
|
|
|
Savings |
|
10 |
|
|
10 |
|
|
12 |
|
|
|
|
|
Time
certificates of deposit |
|
20 |
|
|
22 |
|
|
19 |
|
|
|
|
|
Total
deposits |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
(1) Annualized
(2)
Represents deposit balances of the Company’s subsidiary banks from
brokerage customers of Wintrust Investments, CDEC, trust and asset
management customers of the Company and brokerage customers from
unaffiliated companies which have been placed into deposit
accounts.
Time Certificates of Deposit
Maturity/Re-pricing Analysis
As of December 31, 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 |
|
$ |
59 |
|
|
$ |
31,471 |
|
|
$ |
102,531 |
|
|
$ |
847,039 |
|
|
$ |
981,100 |
|
|
1.39 |
% |
4-6 months |
|
249 |
|
|
30,229 |
|
|
— |
|
|
862,207 |
|
|
892,685 |
|
|
1.59 |
% |
7-9 months |
|
75,077 |
|
|
24,145 |
|
|
— |
|
|
666,487 |
|
|
765,709 |
|
|
1.76 |
% |
10-12 months |
|
— |
|
|
12,813 |
|
|
— |
|
|
563,031 |
|
|
575,844 |
|
|
1.75 |
% |
13-18 months |
|
— |
|
|
19,315 |
|
|
— |
|
|
941,117 |
|
|
960,432 |
|
|
2.10 |
% |
19-24 months |
|
— |
|
|
14,684 |
|
|
— |
|
|
274,076 |
|
|
288,760 |
|
|
2.42 |
% |
24+ months |
|
1,000 |
|
|
10,228 |
|
|
— |
|
|
785,083 |
|
|
796,311 |
|
|
2.60 |
% |
Total |
|
$ |
76,385 |
|
|
$ |
142,885 |
|
|
$ |
102,531 |
|
|
$ |
4,939,040 |
|
|
$ |
5,260,841 |
|
|
1.88 |
% |
(1) This category of certificates of deposit
is shown by contractual maturity date.
(2) This
category includes variable rate certificates of deposit and savings
certificates with the majority repricing on at least a monthly
basis.
(3) Weighted-average rate excludes the
impact of purchase accounting fair value adjustments.
NET INTEREST INCOME
The following table presents a summary of
Wintrust’s average balances, net interest income and related net
interest margins, calculated on a fully tax-equivalent basis, for
the fourth quarter of 2018 compared to the third quarter of 2018
(sequential quarters) and fourth 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) |
December 31,
2018 |
|
September 30,
2018 |
|
December 31,
2017 |
|
December 31,
2018 |
|
September 30,
2018 |
|
December 31,
2017 |
|
December 31,
2018 |
|
September 30,
2018 |
|
December 31,
2017 |
Interest-bearing
deposits with banks and cash equivalents(1) |
$ |
1,042,860 |
|
|
$ |
998,004 |
|
|
$ |
914,319 |
|
|
$ |
5,628 |
|
|
$ |
5,423 |
|
|
$ |
2,723 |
|
|
2.14 |
% |
|
2.16 |
% |
|
1.18 |
% |
Investment
securities(2) |
3,347,496 |
|
|
3,046,272 |
|
|
2,736,253 |
|
|
27,242 |
|
|
22,285 |
|
|
19,179 |
|
|
3.23 |
|
|
2.90 |
|
|
2.78 |
|
FHLB and FRB stock |
98,084 |
|
|
88,335 |
|
|
82,092 |
|
|
1,343 |
|
|
1,235 |
|
|
1,067 |
|
|
5.43 |
|
|
5.54 |
|
|
5.15 |
|
Liquidity management
assets(3)(8) |
$ |
4,488,440 |
|
|
$ |
4,132,611 |
|
|
$ |
3,732,664 |
|
|
$ |
34,213 |
|
|
$ |
28,943 |
|
|
$ |
22,969 |
|
|
3.02 |
% |
|
2.78 |
% |
|
2.44 |
% |
Other earning
assets(3)(4)(8) |
16,204 |
|
|
17,862 |
|
|
26,955 |
|
|
253 |
|
|
178 |
|
|
154 |
|
|
6.19 |
|
|
3.95 |
|
|
2.27 |
|
Mortgage loans
held-for-sale |
265,717 |
|
|
380,235 |
|
|
335,385 |
|
|
3,409 |
|
|
5,285 |
|
|
3,291 |
|
|
5.09 |
|
|
5.51 |
|
|
3.89 |
|
Loans, net of
unearned
income(3)(5)(8) |
23,164,154 |
|
|
22,823,378 |
|
|
21,080,984 |
|
|
284,291 |
|
|
272,075 |
|
|
227,467 |
|
|
4.87 |
|
|
4.73 |
|
|
4.28 |
|
Covered loans |
— |
|
|
— |
|
|
6,025 |
|
|
— |
|
|
— |
|
|
86 |
|
|
— |
|
|
— |
|
|
5.66 |
|
Total
earning assets(8) |
$ |
27,934,515 |
|
|
$ |
27,354,086 |
|
|
$ |
25,182,013 |
|
|
$ |
322,166 |
|
|
$ |
306,481 |
|
|
$ |
253,967 |
|
|
4.58 |
% |
|
4.45 |
% |
|
4.00 |
% |
Allowance for loan and
covered loan losses |
(154,438 |
) |
|
(148,503 |
) |
|
(138,584 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
271,403 |
|
|
268,006 |
|
|
244,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
2,128,407 |
|
|
2,051,520 |
|
|
1,891,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
30,179,887 |
|
|
$ |
29,525,109 |
|
|
$ |
27,179,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest
bearing demand deposits |
$ |
2,671,283 |
|
|
$ |
2,519,445 |
|
|
$ |
2,284,576 |
|
|
$ |
4,007 |
|
|
$ |
2,479 |
|
|
$ |
1,407 |
|
|
0.60 |
% |
|
0.39 |
% |
|
0.24 |
% |
Wealth management
deposits |
2,289,904 |
|
|
2,517,141 |
|
|
2,005,197 |
|
|
7,119 |
|
|
8,287 |
|
|
4,059 |
|
|
1.23 |
|
|
1.31 |
|
|
0.80 |
|
Money market
accounts |
5,632,268 |
|
|
5,369,324 |
|
|
4,611,515 |
|
|
16,936 |
|
|
13,260 |
|
|
4,154 |
|
|
1.19 |
|
|
0.98 |
|
|
0.36 |
|
Savings accounts |
2,553,133 |
|
|
2,672,077 |
|
|
2,741,621 |
|
|
3,096 |
|
|
2,907 |
|
|
2,716 |
|
|
0.48 |
|
|
0.43 |
|
|
0.39 |
|
Time deposits |
5,381,029 |
|
|
5,214,637 |
|
|
4,581,464 |
|
|
24,817 |
|
|
21,803 |
|
|
12,594 |
|
|
1.83 |
|
|
1.66 |
|
|
1.09 |
|
Interest-bearing
deposits |
$ |
18,527,617 |
|
|
$ |
18,292,624 |
|
|
$ |
16,224,373 |
|
|
$ |
55,975 |
|
|
$ |
48,736 |
|
|
$ |
24,930 |
|
|
1.20 |
% |
|
1.06 |
% |
|
0.61 |
% |
Federal Home Loan Bank
advances |
551,846 |
|
|
429,739 |
|
|
324,748 |
|
|
2,563 |
|
|
1,947 |
|
|
2,124 |
|
|
1.84 |
|
|
1.80 |
|
|
2.59 |
|
Other borrowings |
385,878 |
|
|
268,278 |
|
|
255,972 |
|
|
3,199 |
|
|
2,003 |
|
|
1,600 |
|
|
3.29 |
|
|
2.96 |
|
|
2.48 |
|
Subordinated notes |
139,186 |
|
|
139,155 |
|
|
139,065 |
|
|
1,788 |
|
|
1,773 |
|
|
1,786 |
|
|
5.14 |
|
|
5.10 |
|
|
5.14 |
|
Junior subordinated
debentures |
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
2,983 |
|
|
2,940 |
|
|
2,301 |
|
|
4.60 |
|
|
4.54 |
|
|
3.55 |
|
Total
interest-bearing liabilities |
$ |
19,858,093 |
|
|
$ |
19,383,362 |
|
|
$ |
17,197,724 |
|
|
$ |
66,508 |
|
|
$ |
57,399 |
|
|
$ |
32,741 |
|
|
1.33 |
% |
|
1.17 |
% |
|
0.75 |
% |
Non-interest bearing
deposits |
6,542,228 |
|
|
6,461,195 |
|
|
6,605,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
578,912 |
|
|
548,609 |
|
|
433,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
3,200,654 |
|
|
3,131,943 |
|
|
2,942,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders’ equity |
$ |
30,179,887 |
|
|
$ |
29,525,109 |
|
|
$ |
27,179,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread(6)(8) |
|
|
|
|
|
|
|
|
|
|
|
|
3.25 |
% |
|
3.28 |
% |
|
3.25 |
% |
Less: Fully
tax-equivalent adjustment |
|
|
|
|
|
|
(1,570 |
) |
|
(1,519 |
) |
|
(2,127 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.04 |
) |
Net free
funds/contribution(7) |
$ |
8,076,422 |
|
|
$ |
7,970,724 |
|
|
$ |
7,984,289 |
|
|
|
|
|
|
|
|
0.38 |
|
|
0.33 |
|
|
0.24 |
|
Net interest income/
margin(8) (GAAP) |
|
|
|
|
|
|
$ |
254,088 |
|
|
$ |
247,563 |
|
|
$ |
219,099 |
|
|
3.61 |
% |
|
3.59 |
% |
|
3.45 |
% |
Fully tax-equivalent
adjustment |
|
|
|
|
|
|
1,570 |
|
|
1,519 |
|
|
2,127 |
|
|
0.02 |
|
|
0.02 |
|
|
0.04 |
|
Net interest income/
margin - FTE (8) |
|
|
|
|
|
|
$ |
255,658 |
|
|
$ |
249,082 |
|
|
$ |
221,226 |
|
|
3.63 |
% |
|
3.61 |
% |
|
3.49 |
% |
(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 December 31, 2018,
September 30, 2018 and December 31, 2017 were $1.6 million,
$1.5 million and $2.1 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 fourth quarter of 2018, net interest
income totaled $254.1 million, an increase of $6.5 million as
compared to the third quarter of 2018 and an increase of $35.0
million as compared to the fourth quarter of 2017. Net interest
margin was 3.61% (3.63% on a fully tax-equivalent basis) during the
fourth quarter of 2018 compared to 3.59% (3.61% on a fully
tax-equivalent basis) during the third quarter of 2018 and 3.45%
(3.49% on a fully tax-equivalent basis) during the fourth quarter
of 2017. The $6.5 million increase in net interest income in the
fourth quarter of 2018 compared to the third quarter of 2018 was
attributable to a $2.6 million increase from higher levels of
earning assets and a $3.9 million increase due to a higher 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
year ended December 31, 2018 compared to year ended
December 31, 2017:
|
Average Balance
for year ended, |
|
Interest
for year ended, |
|
Yield/Rate
for year ended, |
(Dollars in
thousands) |
December 31,
2018 |
|
December 31,
2017 |
|
December 31,
2018 |
|
December 31,
2017 |
|
December 31,
2018 |
|
December 31,
2017 |
Interest-bearing
deposits with banks and cash equivalents (1) |
$ |
888,671 |
|
|
$ |
856,020 |
|
|
$ |
17,091 |
|
|
$ |
9,254 |
|
|
1.92 |
% |
|
1.08 |
% |
Investment securities
(2) |
3,045,555 |
|
|
2,590,260 |
|
|
89,640 |
|
|
67,028 |
|
|
2.94 |
|
|
2.59 |
|
FHLB and FRB stock |
101,681 |
|
|
89,333 |
|
|
5,331 |
|
|
4,370 |
|
|
5.24 |
|
|
4.89 |
|
Liquidity management
assets(3)(8) |
$ |
4,035,907 |
|
|
$ |
3,535,613 |
|
|
$ |
112,062 |
|
|
$ |
80,652 |
|
|
2.78 |
% |
|
2.28 |
% |
Other earning
assets(3)(4)(8) |
20,681 |
|
|
25,951 |
|
|
777 |
|
|
662 |
|
|
3.75 |
|
|
2.55 |
|
Mortgage loans
held-for-sale |
332,863 |
|
|
319,147 |
|
|
15,738 |
|
|
12,332 |
|
|
4.73 |
|
|
3.86 |
|
Loans, net of unearned
income(3)(5)(8) |
22,500,482 |
|
|
20,469,799 |
|
|
1,047,905 |
|
|
858,058 |
|
|
4.66 |
|
|
4.19 |
|
Covered loans |
— |
|
|
40,665 |
|
|
— |
|
|
2,251 |
|
|
— |
|
|
5.54 |
|
Total
earning assets(8) |
$ |
26,889,933 |
|
|
$ |
24,391,175 |
|
|
$ |
1,176,482 |
|
|
$ |
953,955 |
|
|
4.38 |
% |
|
3.91 |
% |
Allowance for loan and
covered loan losses |
(148,342 |
) |
|
(133,432 |
) |
|
|
|
|
|
|
|
|
Cash and due from
banks |
266,086 |
|
|
239,638 |
|
|
|
|
|
|
|
|
|
Other assets |
2,020,743 |
|
|
1,872,321 |
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
29,028,420 |
|
|
$ |
26,369,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest
bearing demand deposits |
$ |
2,436,791 |
|
|
$ |
2,402,254 |
|
|
$ |
9,773 |
|
|
$ |
5,027 |
|
|
0.40 |
% |
|
0.21 |
% |
Wealth management
deposits |
2,356,145 |
|
|
2,125,177 |
|
|
27,839 |
|
|
13,952 |
|
|
1.18 |
|
|
0.66 |
|
Money market
accounts |
5,105,244 |
|
|
4,482,137 |
|
|
42,973 |
|
|
12,588 |
|
|
0.84 |
|
|
0.28 |
|
Savings accounts |
2,684,661 |
|
|
2,471,663 |
|
|
11,444 |
|
|
7,715 |
|
|
0.43 |
|
|
0.31 |
|
Time deposits |
4,872,590 |
|
|
4,423,067 |
|
|
74,524 |
|
|
44,044 |
|
|
1.53 |
|
|
1.00 |
|
Interest-bearing
deposits |
$ |
17,455,431 |
|
|
$ |
15,904,298 |
|
|
$ |
166,553 |
|
|
$ |
83,326 |
|
|
0.95 |
% |
|
0.52 |
% |
Federal Home Loan Bank
advances |
713,539 |
|
|
380,412 |
|
|
12,412 |
|
|
8,798 |
|
|
1.74 |
|
|
2.31 |
|
Other borrowings |
289,615 |
|
|
255,136 |
|
|
8,599 |
|
|
5,370 |
|
|
2.97 |
|
|
2.10 |
|
Subordinated notes |
139,140 |
|
|
139,022 |
|
|
7,121 |
|
|
7,116 |
|
|
5.12 |
|
|
5.12 |
|
Junior subordinated
debentures |
253,566 |
|
|
253,566 |
|
|
11,222 |
|
|
9,782 |
|
|
4.37 |
|
|
3.81 |
|
Total
interest-bearing liabilities |
$ |
18,851,291 |
|
|
$ |
16,932,434 |
|
|
$ |
205,907 |
|
|
$ |
114,392 |
|
|
1.09 |
% |
|
0.67 |
% |
Non-interest bearing
deposits |
6,545,251 |
|
|
6,182,048 |
|
|
|
|
|
|
|
|
|
Other liabilities |
533,138 |
|
|
413,139 |
|
|
|
|
|
|
|
|
|
Equity |
3,098,740 |
|
|
2,842,081 |
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders’ equity |
$ |
29,028,420 |
|
|
$ |
26,369,702 |
|
|
|
|
|
|
|
|
|
Interest rate
spread(6)(8) |
|
|
|
|
|
|
|
|
3.29 |
% |
|
3.24 |
% |
Less: Fully
tax-equivalent adjustment |
|
|
|
|
(5,672 |
) |
|
(7,487 |
) |
|
(0.02 |
) |
|
(0.03 |
) |
Net free
funds/contribution(7) |
$ |
8,038,642 |
|
|
$ |
7,458,741 |
|
|
|
|
|
|
0.32 |
|
|
0.20 |
|
Net interest income/
margin(8) (GAAP) |
|
|
|
|
$ |
964,903 |
|
|
$ |
832,076 |
|
|
3.59 |
% |
|
3.41 |
% |
Fully tax-equivalent
adjustment |
|
|
|
|
5,672 |
|
|
7,487 |
|
|
0.02 |
|
|
0.03 |
|
Net interest income/
margin - FTE (8) |
|
|
|
|
$ |
970,575 |
|
|
$ |
839,563 |
|
|
3.61 |
% |
|
3.44 |
% |
(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 twelve months ended December 31, 2018 and
2017 were $5.7 million and $7.5 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 year ended December 31, 2018, net
interest income totaled $964.9 million, an increase of $132.8
million as compared to the year ended December 31, 2017. Net
interest margin was 3.59% (3.61% on a fully tax-equivalent basis)
for the year ended December 31, 2018 compared to 3.41% (3.44%
on a fully tax-equivalent basis) for the year ended December
31, 2017. The $132.8 million increase in net interest income in the
year ended 2018 compared to the same period of 2017 was
attributable to a $81.5 million increase from higher levels of
earning assets and a $51.3 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 December 31,
2018, September 30, 2018 and December 31, 2017 is as
follows:
|
|
|
|
|
|
Static Shock
Scenario |
|
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
December 31,
2018 |
|
15.6 |
% |
|
7.9 |
% |
|
(8.6 |
)% |
September 30, 2018 |
|
18.1 |
% |
|
9.1 |
% |
|
(10.0 |
)% |
December 31, 2017 |
|
17.7 |
% |
|
9.0 |
% |
|
(11.8 |
)% |
Ramp
Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
December 31,
2018 |
7.4 |
% |
|
3.8 |
% |
|
(3.6 |
)% |
September 30, 2018 |
8.5 |
% |
|
4.3 |
% |
|
(4.2 |
)% |
December 31, 2017 |
8.9 |
% |
|
4.6 |
% |
|
(5.1 |
)% |
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 December 31, 2018 by date at which the loans
reprice or mature, and the type of rate exposure:
As of December
31, 2018 |
One year or less |
|
From one to five
years |
|
Over five years |
|
|
(Dollars in
thousands) |
|
|
|
Total |
Commercial |
|
|
|
|
|
|
|
Fixed
rate |
$ |
154,368 |
|
|
$ |
1,105,414 |
|
|
$ |
665,595 |
|
|
$ |
1,925,377 |
|
Variable
rate |
5,896,481 |
|
|
6,531 |
|
|
149 |
|
|
5,903,161 |
|
Total
commercial |
$ |
6,050,849 |
|
|
$ |
1,111,945 |
|
|
$ |
665,744 |
|
|
$ |
7,828,538 |
|
Commercial real
estate |
|
|
|
|
|
|
|
Fixed
rate |
369,120 |
|
|
1,930,892 |
|
|
315,343 |
|
|
2,615,355 |
|
Variable
rate |
4,288,293 |
|
|
29,455 |
|
|
149 |
|
|
4,317,897 |
|
Total
commercial real estate |
$ |
4,657,413 |
|
|
$ |
1,960,347 |
|
|
$ |
315,492 |
|
|
$ |
6,933,252 |
|
Home equity |
|
|
|
|
|
|
|
Fixed
rate |
11,712 |
|
|
15,125 |
|
|
18,543 |
|
|
45,380 |
|
Variable
rate |
506,963 |
|
|
— |
|
|
— |
|
|
506,963 |
|
Total
home equity |
$ |
518,675 |
|
|
$ |
15,125 |
|
|
$ |
18,543 |
|
|
$ |
552,343 |
|
Residential real
estate |
|
|
|
|
|
|
|
Fixed
rate |
30,724 |
|
|
22,568 |
|
|
229,433 |
|
|
282,725 |
|
Variable
rate |
55,329 |
|
|
303,383 |
|
|
361,027 |
|
|
719,739 |
|
Total
residential real estate |
$ |
86,053 |
|
|
$ |
325,951 |
|
|
$ |
590,460 |
|
|
$ |
1,002,464 |
|
Premium finance
receivables - commercial |
|
|
|
|
|
|
|
Fixed
rate |
2,762,211 |
|
|
79,448 |
|
|
— |
|
|
2,841,659 |
|
Variable
rate |
— |
|
|
— |
|
|
— |
|
|
— |
|
Total
premium finance receivables - commercial |
$ |
2,762,211 |
|
|
$ |
79,448 |
|
|
$ |
— |
|
|
$ |
2,841,659 |
|
Premium finance
receivables - life insurance |
|
|
|
|
|
|
|
Fixed
rate |
15,303 |
|
|
10,977 |
|
|
3,690 |
|
|
29,970 |
|
Variable
rate |
4,511,824 |
|
|
— |
|
|
— |
|
|
4,511,824 |
|
Total
premium finance receivables - life insurance |
$ |
4,527,127 |
|
|
$ |
10,977 |
|
|
$ |
3,690 |
|
|
$ |
4,541,794 |
|
Consumer and other |
|
|
|
|
|
|
|
Fixed
rate |
75,263 |
|
|
10,312 |
|
|
2,176 |
|
|
87,751 |
|
Variable
rate |
32,848 |
|
|
42 |
|
|
— |
|
|
32,890 |
|
Total
consumer and other |
$ |
108,111 |
|
|
$ |
10,354 |
|
|
$ |
2,176 |
|
|
$ |
120,641 |
|
Total per category |
|
|
|
|
|
|
|
Fixed
rate |
3,418,701 |
|
|
3,174,736 |
|
|
1,234,780 |
|
|
7,828,217 |
|
Variable
rate |
15,291,738 |
|
|
339,411 |
|
|
361,325 |
|
|
15,992,474 |
|
Total
loans, net of unearned income |
$ |
18,710,439 |
|
|
$ |
3,514,147 |
|
|
$ |
1,596,105 |
|
|
$ |
23,820,691 |
|
Variable
Rate Loan Pricing by Index: |
|
|
|
|
|
|
|
Prime |
$ |
2,480,764 |
|
|
|
|
|
|
|
One-
month LIBOR |
8,076,230 |
|
|
|
|
|
|
|
Three-
month LIBOR |
458,994 |
|
|
|
|
|
|
|
Twelve-
month LIBOR |
4,741,121 |
|
|
|
|
|
|
|
Other |
235,365 |
|
|
|
|
|
|
|
Total
variable rate |
$ |
15,992,474 |
|
|
|
|
|
|
|
http://resource.globenewswire.com/Resource/Download/23ff1660-84db-4ebe-8d4a-50f6b99bed74
Source: Bloomberg
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 $8.1 billion of variable
rate loans tied to one-month LIBOR and $4.7 billion of variable
rate loans tied to twelve-month LIBOR. The above chart shows:
|
|
Changes in |
|
|
Prime |
|
1-month
LIBOR |
|
12-month
LIBOR |
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 |
Fourth Quarter
2018 |
|
+25
bps |
|
+24
bps |
|
+9
bps |
NON-INTEREST INCOME
The following table presents non-interest income by category for
the periods presented:
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
Q4 2018 compared to
Q3 2018 |
|
Q4 2018 compared to
Q4 2017 |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
|
$ |
4,997 |
|
|
$ |
5,579 |
|
|
$ |
6,067 |
|
|
$ |
(582 |
) |
|
(10 |
)% |
|
$ |
(1,070 |
) |
|
(18 |
)% |
Trust and asset
management |
|
17,729 |
|
|
17,055 |
|
|
15,843 |
|
|
674 |
|
|
4 |
|
|
1,886 |
|
|
12 |
|
Total
wealth management |
|
$ |
22,726 |
|
|
$ |
22,634 |
|
|
$ |
21,910 |
|
|
$ |
92 |
|
|
— |
% |
|
$ |
816 |
|
|
4 |
% |
Mortgage banking |
|
24,182 |
|
|
42,014 |
|
|
27,411 |
|
|
(17,832 |
) |
|
(42 |
) |
|
(3,229 |
) |
|
(12 |
) |
Service charges on
deposit accounts |
|
9,065 |
|
|
9,331 |
|
|
8,907 |
|
|
(266 |
) |
|
(3 |
) |
|
158 |
|
|
2 |
|
(Losses) gains on
investment securities, net |
|
(2,649 |
) |
|
90 |
|
|
14 |
|
|
(2,739 |
) |
|
NM |
|
|
(2,663 |
) |
|
NM |
|
Fees from covered call
options |
|
626 |
|
|
627 |
|
|
1,610 |
|
|
(1 |
) |
|
— |
|
|
(984 |
) |
|
(61 |
) |
Trading (losses) gains,
net |
|
(155 |
) |
|
(61 |
) |
|
24 |
|
|
(94 |
) |
|
NM |
|
|
(179 |
) |
|
NM |
|
Operating lease income,
net |
|
10,882 |
|
|
9,132 |
|
|
8,598 |
|
|
1,750 |
|
|
19 |
|
|
2,284 |
|
|
27 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
rate swap fees |
|
2,602 |
|
|
2,359 |
|
|
1,963 |
|
|
243 |
|
|
10 |
|
|
639 |
|
|
33 |
|
BOLI |
|
(466 |
) |
|
3,190 |
|
|
754 |
|
|
(3,656 |
) |
|
NM |
|
|
(1,220 |
) |
|
NM |
|
Administrative services |
|
1,260 |
|
|
1,099 |
|
|
1,103 |
|
|
161 |
|
|
15 |
|
|
157 |
|
|
14 |
|
Early
pay-offs of capital leases |
|
3 |
|
|
11 |
|
|
7 |
|
|
(8 |
) |
|
(73 |
) |
|
(4 |
) |
|
(57 |
) |
Miscellaneous |
|
7,232 |
|
|
9,504 |
|
|
8,737 |
|
|
(2,272 |
) |
|
(24 |
) |
|
(1,505 |
) |
|
(17 |
) |
Total
Other |
|
$ |
10,631 |
|
|
$ |
16,163 |
|
|
$ |
12,564 |
|
|
$ |
(5,532 |
) |
|
(34 |
)% |
|
$ |
(1,933 |
) |
|
(15 |
)% |
Total Non-Interest
Income |
|
$ |
75,308 |
|
|
$ |
99,930 |
|
|
$ |
81,038 |
|
|
$ |
(24,622 |
) |
|
(25 |
)% |
|
$ |
(5,730 |
) |
|
(7 |
)% |
|
|
Years Ended |
|
|
|
|
|
|
December 31, |
|
December 31, |
|
$ |
|
% |
(Dollars in
thousands) |
|
2018 |
|
2017 |
|
Change |
|
Change |
Brokerage |
|
$ |
22,391 |
|
|
$ |
22,863 |
|
|
$ |
(472 |
) |
|
(2 |
)% |
Trust and asset
management |
|
68,572 |
|
|
58,903 |
|
|
9,669 |
|
|
16 |
|
Total
wealth management |
|
$ |
90,963 |
|
|
$ |
81,766 |
|
|
$ |
9,197 |
|
|
11 |
% |
Mortgage banking |
|
136,990 |
|
|
113,472 |
|
|
23,518 |
|
|
21 |
|
Service charges on
deposit accounts |
|
36,404 |
|
|
34,513 |
|
|
1,891 |
|
|
5 |
|
(Losses) gains on
investment securities, net |
|
(2,898 |
) |
|
45 |
|
|
(2,943 |
) |
|
NM |
|
Fees from covered call
options |
|
3,519 |
|
|
4,402 |
|
|
(883 |
) |
|
(20 |
) |
Trading gains (losses),
net |
|
11 |
|
|
(845 |
) |
|
856 |
|
|
NM |
|
Operating lease income,
net |
|
38,451 |
|
|
29,646 |
|
|
8,805 |
|
|
30 |
|
Other: |
|
|
|
|
|
|
|
|
Interest
rate swap fees |
|
11,027 |
|
|
7,379 |
|
|
3,648 |
|
|
49 |
|
BOLI |
|
4,982 |
|
|
3,524 |
|
|
1,458 |
|
|
41 |
|
Administrative services |
|
4,625 |
|
|
4,165 |
|
|
460 |
|
|
11 |
|
Early
pay-offs of capital leases |
|
601 |
|
|
1,228 |
|
|
(627 |
) |
|
(51 |
) |
Miscellaneous |
|
31,475 |
|
|
40,211 |
|
|
(8,736 |
) |
|
(22 |
) |
Total
Other |
|
$ |
52,710 |
|
|
$ |
56,507 |
|
|
$ |
(3,797 |
) |
|
(7 |
)% |
Total Non-Interest
Income |
|
$ |
356,150 |
|
|
$ |
319,506 |
|
|
$ |
36,644 |
|
|
11 |
% |
NM - Not meaningful
Notable contributions to the change in
non-interest income are as follows:
The decrease in mortgage banking revenue in the
fourth quarter of 2018 as compared to the third quarter of 2018
resulted primarily from lower origination volumes, lower revenue
margins and a $8.5 million negative fair value adjustment
recognized on mortgage servicing rights related to changes in
valuation assumptions and pay-offs. Mortgage loans originated or
purchased for sale totaled $927.8 million in the fourth quarter of
2018 as compared to $1.2 billion in the third quarter of 2018 and
$879.4 million in the fourth 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 ("MSRs") as the Company
does not hedge this change in fair value. 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 |
|
Years Ended |
(Dollars in
thousands) |
|
December 31,
2018 |
|
September 30,
2018 |
|
December 31,
2017 |
|
December 31,
2018 |
|
December 31,
2017 |
Originations: |
|
|
|
|
|
|
|
|
|
|
Retail
originations |
|
$ |
463,196 |
|
|
$ |
642,213 |
|
|
$ |
744,496 |
|
|
$ |
2,412,232 |
|
|
$ |
3,142,824 |
|
Correspondent
originations |
|
289,101 |
|
|
310,446 |
|
|
134,904 |
|
|
848,997 |
|
|
549,261 |
|
Veterans First
originations |
|
175,483 |
|
|
199,774 |
|
|
— |
|
|
694,209 |
|
|
— |
|
Total
originations (A) |
|
$ |
927,780 |
|
|
$ |
1,152,433 |
|
|
$ |
879,400 |
|
|
$ |
3,955,438 |
|
|
$ |
3,692,085 |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases as a
percentage of originations |
|
71 |
% |
|
76 |
% |
|
67 |
% |
|
75 |
% |
|
75 |
% |
Refinances as a
percentage of originations |
|
29 |
|
|
24 |
|
|
33 |
|
|
25 |
|
|
25 |
|
Total |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
Production
Margin: |
|
|
|
|
|
|
|
|
|
|
Production revenue (B)
(1) |
|
$ |
18,657 |
|
|
$ |
25,253 |
|
|
$ |
20,603 |
|
|
$ |
92,250 |
|
|
$ |
90,458 |
|
Production margin (B /
A) |
|
2.01 |
% |
|
2.19 |
% |
|
2.34 |
% |
|
2.33 |
% |
|
2.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
Mortgage
Servicing: |
|
|
|
|
|
|
|
|
|
|
Loans serviced for
others (C) |
|
$ |
6,545,870 |
|
|
$ |
5,904,300 |
|
|
$ |
2,929,133 |
|
|
|
|
|
MSRs, at fair value
(D) |
|
75,183 |
|
|
74,530 |
|
|
33,676 |
|
|
|
|
|
Percentage of MSRs to
loans serviced for others (D / C) |
|
1.15 |
% |
|
1.26 |
% |
|
1.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of
Mortgage Banking Revenue: |
|
|
|
|
|
|
|
|
|
|
Production revenue |
|
$ |
18,657 |
|
|
$ |
25,253 |
|
|
$ |
20,603 |
|
|
$ |
92,250 |
|
|
$ |
90,458 |
|
MSR - current period
capitalization |
|
9,683 |
|
|
11,340 |
|
|
5,179 |
|
|
33,071 |
|
|
18,341 |
|
MSR - collection of
expected cash flows - paydowns (2) |
|
(496 |
) |
|
(282 |
) |
|
— |
|
|
(1,910 |
) |
|
— |
|
MSR - collection of
expected cash flows - payoffs |
|
(896 |
) |
|
(799 |
) |
|
(963 |
) |
|
(3,129 |
) |
|
(2,595 |
) |
MSR - changes in fair
value model assumptions |
|
(7,638 |
) |
|
1,077 |
|
|
46 |
|
|
(331 |
) |
|
(1,173 |
) |
Servicing income |
|
4,917 |
|
|
3,942 |
|
|
1,942 |
|
|
15,268 |
|
|
6,417 |
|
Other |
|
(45 |
) |
|
1,483 |
|
|
604 |
|
|
1,771 |
|
|
2,024 |
|
Total
mortgage banking revenue |
|
$ |
24,182 |
|
|
$ |
42,014 |
|
|
$ |
27,411 |
|
|
$ |
136,990 |
|
|
$ |
113,472 |
|
(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.
(2) Change in
MSR value due to collection of expected cash flows from paydowns
and payoffs in 2017 is combined and shown in total in the payoff
line. The component detail is not available for
2017.
The net losses recognized in the fourth quarter
of 2018 on investment securities are primarily due to $2.6 million
of unrealized losses on equity securities held by the Company,
including a large cap value mutual fund.
The increase in operating lease income
in the fourth quarter of 2018 compared to the third quarter of
2018 is primarily related to growth in business from the Company's
leasing divisions during the period.
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 December 31, 2018, September 30, 2018 or
December 31, 2017.
The decrease in BOLI income was primarily the
result of higher income in the third quarter of 2018 due to death
benefits received during that period on certain insurance policies
and lower market returns during the fourth quarter of 2018 on
certain investments supporting deferred compensation plan
benefits.
The decrease in miscellaneous
non-interest income in the fourth quarter of 2018 as compared
to the third quarter of 2018 is primarily due to negative
adjustments from foreign currency remeasurement and losses from
investments in partnerships.
NON-INTEREST EXPENSE
The following table presents non-interest expense by category
for the periods presented:
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
Q4 2018 compared to
Q3 2018 |
|
Q4 2018 compared to
Q4 2017 |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
67,708 |
|
|
$ |
69,893 |
|
|
$ |
58,239 |
|
|
$ |
(2,185 |
) |
|
(3 |
)% |
|
$ |
9,469 |
|
|
16 |
% |
Commissions and incentive compensation |
|
33,656 |
|
|
34,046 |
|
|
40,723 |
|
|
(390 |
) |
|
(1 |
) |
|
(7,067 |
) |
|
(17 |
) |
Benefits |
|
20,747 |
|
|
19,916 |
|
|
19,047 |
|
|
831 |
|
|
4 |
|
|
1,700 |
|
|
9 |
|
Total
salaries and employee benefits |
|
122,111 |
|
|
123,855 |
|
|
118,009 |
|
|
(1,744 |
) |
|
(1 |
) |
|
4,102 |
|
|
3 |
|
Equipment |
|
11,523 |
|
|
10,827 |
|
|
9,500 |
|
|
696 |
|
|
6 |
|
|
2,023 |
|
|
21 |
|
Operating lease
equipment depreciation |
|
8,462 |
|
|
7,370 |
|
|
7,015 |
|
|
1,092 |
|
|
15 |
|
|
1,447 |
|
|
21 |
|
Occupancy, net |
|
15,980 |
|
|
14,404 |
|
|
14,154 |
|
|
1,576 |
|
|
11 |
|
|
1,826 |
|
|
13 |
|
Data processing |
|
8,447 |
|
|
9,335 |
|
|
7,915 |
|
|
(888 |
) |
|
(10 |
) |
|
532 |
|
|
7 |
|
Advertising and
marketing |
|
9,414 |
|
|
11,120 |
|
|
7,382 |
|
|
(1,706 |
) |
|
(15 |
) |
|
2,032 |
|
|
28 |
|
Professional fees |
|
9,259 |
|
|
9,914 |
|
|
8,879 |
|
|
(655 |
) |
|
(7 |
) |
|
380 |
|
|
4 |
|
Amortization of other
intangible assets |
|
1,407 |
|
|
1,163 |
|
|
1,028 |
|
|
244 |
|
|
21 |
|
|
379 |
|
|
37 |
|
FDIC insurance |
|
4,044 |
|
|
4,205 |
|
|
4,324 |
|
|
(161 |
) |
|
(4 |
) |
|
(280 |
) |
|
(6 |
) |
OREO expense, net |
|
1,618 |
|
|
596 |
|
|
599 |
|
|
1,022 |
|
|
NM |
|
|
1,019 |
|
|
NM |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
779 |
|
|
1,059 |
|
|
1,057 |
|
|
(280 |
) |
|
(26 |
) |
|
(278 |
) |
|
(26 |
) |
Postage |
|
2,047 |
|
|
2,205 |
|
|
1,427 |
|
|
(158 |
) |
|
(7 |
) |
|
620 |
|
|
43 |
|
Miscellaneous |
|
16,242 |
|
|
17,584 |
|
|
15,291 |
|
|
(1,342 |
) |
|
(8 |
) |
|
951 |
|
|
6 |
|
Total
other |
|
19,068 |
|
|
20,848 |
|
|
17,775 |
|
|
(1,780 |
) |
|
(9 |
) |
|
1,293 |
|
|
7 |
|
Total Non-Interest Expense |
|
$ |
211,333 |
|
|
$ |
213,637 |
|
|
$ |
196,580 |
|
|
$ |
(2,304 |
) |
|
(1 |
)% |
|
$ |
14,753 |
|
|
8 |
% |
|
|
Years Ended |
|
|
|
|
|
|
December 31, |
|
December 31, |
|
$ |
|
% |
(Dollars in
thousands) |
|
2018 |
|
2017 |
|
Change |
|
Change |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
Salaries |
|
$ |
266,563 |
|
|
$ |
226,151 |
|
|
$ |
40,412 |
|
|
18 |
% |
Commissions and incentive compensation |
|
135,558 |
|
|
133,511 |
|
|
2,047 |
|
|
2 |
|
Benefits |
|
77,956 |
|
|
70,416 |
|
|
7,540 |
|
|
11 |
|
Total
salaries and employee benefits |
|
480,077 |
|
|
430,078 |
|
|
49,999 |
|
|
12 |
|
Equipment |
|
42,949 |
|
|
38,358 |
|
|
4,591 |
|
|
12 |
|
Operating lease
equipment depreciation |
|
29,305 |
|
|
24,107 |
|
|
5,198 |
|
|
22 |
|
Occupancy, net |
|
57,814 |
|
|
52,920 |
|
|
4,894 |
|
|
9 |
|
Data processing |
|
35,027 |
|
|
31,495 |
|
|
3,532 |
|
|
11 |
|
Advertising and
marketing |
|
41,140 |
|
|
30,830 |
|
|
10,310 |
|
|
33 |
|
Professional fees |
|
32,306 |
|
|
27,835 |
|
|
4,471 |
|
|
16 |
|
Amortization of other
intangible assets |
|
4,571 |
|
|
4,401 |
|
|
170 |
|
|
4 |
|
FDIC insurance |
|
17,209 |
|
|
16,231 |
|
|
978 |
|
|
6 |
|
OREO expense, net |
|
6,120 |
|
|
3,593 |
|
|
2,527 |
|
|
70 |
|
Other: |
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
4,264 |
|
|
4,178 |
|
|
86 |
|
|
2 |
|
Postage |
|
8,685 |
|
|
6,763 |
|
|
1,922 |
|
|
28 |
|
Miscellaneous |
|
66,621 |
|
|
61,028 |
|
|
5,593 |
|
|
9 |
|
Total
other |
|
79,570 |
|
|
71,969 |
|
|
7,601 |
|
|
11 |
|
Total Non-Interest Expense |
|
$ |
826,088 |
|
|
$ |
731,817 |
|
|
$ |
94,271 |
|
|
13 |
% |
Notable contributions to the change in
non-interest expense are as follows:
Salaries and employee benefits expense decreased
in the fourth quarter of 2018 compared to the third quarter of
2018 primarily as a result of lower commissions related to mortgage
loan originations, higher salary deferrals related to loan
origination costs and a reduction in costs related to deferred
compensation plans impacted by market returns of related BOLI
investments.
The increase in operating lease
equipment depreciation in the fourth quarter of 2018 compared
to the third quarter of 2018 is primarily related to growth in
business from the Company's leasing divisions during the
period.
The decrease in advertising and
marketing expenses during the fourth quarter of 2018 compared
to the third quarter of 2018 is primarily related to
lower expenses for community advertisements and sponsorships.
Marketing costs are incurred to promote the Company's brand,
commercial banking capabilities, the Company's various products, to
attract loans and deposits and to announce new branch openings as
well as the expansion of the Company's non-bank businesses. The
level of marketing expenditures depends on the timing of
sponsorship programs and type of marketing programs utilized which
are determined based on the market area, targeted audience,
competition and various other factors.
INCOME TAXES
The Company recorded income tax expense of $28.0
million in the fourth quarter of 2018 compared to $30.9 million in
the third quarter of 2018 and $27.0 million in the fourth quarter
of 2017. The effective tax rates were 26.01% in the fourth quarter
of 2018, 25.13% in the third quarter of 2018 and 28.19% in the
fourth quarter of 2017. For the year ended December 31, 2018, the
Company recorded income tax expense of $117.0 million (25.42%
effective tax rate) compared to $132.3 million (33.93% effective
tax rate) for the same period of 2017. The lower effective tax rate
for the 2018 year-to-date period as compared to the same period of
2017 was 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. During the fourth
quarter of 2017, the Company recorded a provisional tax benefit of
$7.6 million related to the enactment of the Tax Cuts and Jobs Act,
and during the third quarter of 2018, the Company finalized the
provisional amounts and recorded an additional net tax benefit of
$1.2 million. The effective tax rates were also impacted by excess
tax benefits related to share-based compensation. These excess tax
benefits were $160,000 in the fourth quarter of 2018 and $370,000
in the third quarter of 2018, compared to $1.2 million in the
fourth quarter of 2017. Excess tax benefits were $3.9 million and
$6.2 million for the years ended 2018 and 2017, respectively.
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 |
|
Years Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Allowance for
loan losses at beginning of period |
|
$ |
149,756 |
|
|
$ |
143,402 |
|
|
$ |
133,119 |
|
|
$ |
137,905 |
|
|
$ |
122,291 |
|
Provision for
credit losses |
|
10,401 |
|
|
11,042 |
|
|
7,772 |
|
|
34,832 |
|
|
29,982 |
|
Other
adjustments (1) |
|
(79 |
) |
|
(18 |
) |
|
698 |
|
|
(181 |
) |
|
573 |
|
Reclassification (to) from allowance for unfunded
lending-related commitments |
|
(150 |
) |
|
(2 |
) |
|
7 |
|
|
(126 |
) |
|
69 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
6,416 |
|
|
3,219 |
|
|
1,340 |
|
|
14,532 |
|
|
5,159 |
|
Commercial real estate |
|
219 |
|
|
208 |
|
|
1,001 |
|
|
1,395 |
|
|
4,236 |
|
Home
equity |
|
715 |
|
|
561 |
|
|
728 |
|
|
2,245 |
|
|
3,952 |
|
Residential real estate |
|
267 |
|
|
337 |
|
|
542 |
|
|
1,355 |
|
|
1,284 |
|
Premium
finance receivables - commercial |
|
1,741 |
|
|
2,512 |
|
|
2,314 |
|
|
12,228 |
|
|
7,335 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
148 |
|
|
144 |
|
|
207 |
|
|
880 |
|
|
729 |
|
Total
charge-offs |
|
9,506 |
|
|
6,981 |
|
|
6,132 |
|
|
32,635 |
|
|
22,695 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
225 |
|
|
304 |
|
|
235 |
|
|
1,457 |
|
|
1,870 |
|
Commercial real estate |
|
1,364 |
|
|
193 |
|
|
1,037 |
|
|
5,631 |
|
|
2,190 |
|
Home
equity |
|
105 |
|
|
142 |
|
|
359 |
|
|
541 |
|
|
746 |
|
Residential real estate |
|
47 |
|
|
466 |
|
|
165 |
|
|
2,075 |
|
|
452 |
|
Premium
finance receivables - commercial |
|
567 |
|
|
1,142 |
|
|
613 |
|
|
3,069 |
|
|
2,128 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
40 |
|
|
66 |
|
|
32 |
|
|
202 |
|
|
299 |
|
Total
recoveries |
|
2,348 |
|
|
2,313 |
|
|
2,441 |
|
|
12,975 |
|
|
7,685 |
|
Net charge-offs |
|
(7,158 |
) |
|
(4,668 |
) |
|
(3,691 |
) |
|
(19,660 |
) |
|
(15,010 |
) |
Allowance for loan losses at period end |
|
$ |
152,770 |
|
|
$ |
149,756 |
|
|
$ |
137,905 |
|
|
$ |
152,770 |
|
|
$ |
137,905 |
|
Allowance for unfunded lending-related commitments at
period end |
|
1,394 |
|
|
1,245 |
|
|
1,269 |
|
|
1,394 |
|
|
1,269 |
|
Allowance for credit losses at period end |
|
$ |
154,164 |
|
|
$ |
151,001 |
|
|
$ |
139,174 |
|
|
$ |
154,164 |
|
|
$ |
139,174 |
|
Annualized net charge-offs (recoveries) by category as a
percentage of its own respective
category’s average: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
0.33 |
% |
|
0.16 |
% |
|
0.07 |
% |
|
0.18 |
% |
|
0.05 |
% |
Commercial real estate |
|
(0.07 |
) |
|
0.00 |
|
|
0.00 |
|
|
(0.06 |
) |
|
0.03 |
|
Home
equity |
|
0.43 |
|
|
0.28 |
|
|
0.22 |
|
|
0.28 |
|
|
0.46 |
|
Residential real estate |
|
0.10 |
|
|
(0.06 |
) |
|
0.18 |
|
|
(0.08 |
) |
|
0.11 |
|
Premium
finance receivables - commercial |
|
0.16 |
|
|
0.19 |
|
|
0.26 |
|
|
0.33 |
|
|
0.20 |
|
Premium
finance receivables - life insurance |
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
Consumer
and other |
|
0.30 |
|
|
0.23 |
|
|
0.52 |
|
|
0.50 |
|
|
0.34 |
|
Total
loans, net of unearned income, excluding covered loans |
|
0.12 |
% |
|
0.08 |
% |
|
0.07 |
% |
|
0.09 |
% |
|
0.07 |
% |
Net charge-offs as a percentage of the provision for
credit losses |
|
68.82 |
% |
|
42.27 |
% |
|
47.49 |
% |
|
56.44 |
% |
|
50.06 |
% |
Loans at period-end, excluding covered loans |
|
$ |
23,820,691 |
|
|
$ |
23,123,951 |
|
|
$ |
21,640,797 |
|
|
|
|
|
Allowance for loan losses as a percentage of loans at
period end |
|
0.64 |
% |
|
0.65 |
% |
|
0.64 |
% |
|
|
|
|
Allowance for credit losses as a percentage of loans at
period end |
|
0.65 |
% |
|
0.65 |
% |
|
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 fourth quarter of 2018 totaled 12
basis points on an annualized basis compared to eight basis points
on an annualized basis in the third quarter of 2018 and seven basis
points on an annualized basis in the fourth quarter of 2017.
Net charge-offs totaled $7.2 million in the fourth quarter of 2018,
a $2.5 million increase from $4.7 million in the third quarter of
2018 and a $3.5 million increase from $3.7 million in the fourth
quarter of 2017. The increase in net charge-offs in the fourth
quarter of 2018 compared to third quarter of 2018 is primarily the
result of higher charge-offs within the commercial portfolio during
the current period. The provision for credit losses, excluding the
provision for covered loan losses, totaled $10.4 million for the
fourth quarter of 2018 compared to $11.0 million for the third
quarter of 2018 and $7.8 million for the fourth quarter of
2017.
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 by component for the periods presented, including
covered loans:
|
|
Three Months Ended |
|
Years Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Provision for loan
losses |
|
$ |
10,251 |
|
|
$ |
11,040 |
|
|
$ |
7,779 |
|
|
$ |
34,706 |
|
|
$ |
30,051 |
|
Provision for unfunded
lending-related commitments |
|
150 |
|
|
2 |
|
|
(7 |
) |
|
126 |
|
|
(69 |
) |
Provision for covered
loan losses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(214 |
) |
Provision for credit
losses |
|
$ |
10,401 |
|
|
$ |
11,042 |
|
|
$ |
7,772 |
|
|
$ |
34,832 |
|
|
$ |
29,768 |
|
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 December 31, 2018 and September 30,
2018.
|
|
As of December 31, 2018 |
|
|
Recorded |
|
Calculated |
|
As a percentage
of its own respective |
(Dollars in
thousands) |
|
Investment |
|
Allowance |
|
category’s balance |
Commercial:(1) |
|
|
|
|
|
|
Commercial and industrial |
|
$ |
4,339,618 |
|
|
$ |
42,948 |
|
|
0.99 |
% |
Asset-based lending |
|
1,025,805 |
|
|
9,138 |
|
|
0.89 |
|
Tax
exempt |
|
495,896 |
|
|
3,150 |
|
|
0.64 |
|
Leases |
|
556,808 |
|
|
1,502 |
|
|
0.27 |
|
Commercial real
estate:(1) |
|
|
|
|
|
|
Residential construction |
|
39,569 |
|
|
773 |
|
|
1.95 |
|
Commercial construction |
|
715,260 |
|
|
8,203 |
|
|
1.15 |
|
Land |
|
140,409 |
|
|
3,953 |
|
|
2.82 |
|
Office |
|
903,559 |
|
|
6,235 |
|
|
0.69 |
|
Industrial |
|
867,676 |
|
|
6,083 |
|
|
0.70 |
|
Retail |
|
856,114 |
|
|
9,312 |
|
|
1.09 |
|
Multi-family |
|
933,362 |
|
|
9,386 |
|
|
1.01 |
|
Mixed use
and other |
|
2,120,361 |
|
|
16,183 |
|
|
0.76 |
|
Home
equity(1) |
|
518,814 |
|
|
8,428 |
|
|
1.62 |
|
Residential real
estate(1) |
|
975,750 |
|
|
7,001 |
|
|
0.72 |
|
Total core loan portfolio |
|
$ |
14,489,001 |
|
|
$ |
132,295 |
|
|
0.91 |
% |
Commercial: |
|
|
|
|
|
|
Franchise |
|
$ |
885,882 |
|
|
$ |
8,772 |
|
|
0.99 |
% |
Mortgage
warehouse lines of credit |
|
144,199 |
|
|
1,162 |
|
|
0.81 |
|
Community
Advantage - homeowner associations |
|
180,757 |
|
|
453 |
|
|
0.25 |
|
Aircraft |
|
12,218 |
|
|
17 |
|
|
0.14 |
|
Purchased
non-covered commercial loans (2) |
|
187,355 |
|
|
684 |
|
|
0.37 |
|
Commercial real
estate: |
|
|
|
|
|
|
Purchased
non-covered commercial real estate (2) |
|
356,942 |
|
|
139 |
|
|
0.04 |
|
Purchased non-covered
home equity (2) |
|
33,529 |
|
|
79 |
|
|
0.24 |
|
Purchased non-covered
residential real estate (2) |
|
26,714 |
|
|
193 |
|
|
0.72 |
|
Premium finance
receivables |
|
|
|
|
|
|
U.S.
commercial insurance loans |
|
2,504,515 |
|
|
5,629 |
|
|
0.22 |
|
Canada
commercial insurance loans (2) |
|
337,144 |
|
|
515 |
|
|
0.15 |
|
Life
insurance loans (1) |
|
4,373,891 |
|
|
1,571 |
|
|
0.04 |
|
Purchased
life insurance loans (2) |
|
167,903 |
|
|
— |
|
|
— |
|
Consumer and other
(1) |
|
117,251 |
|
|
1,258 |
|
|
1.07 |
|
Purchased non-covered
consumer and other (2) |
|
3,390 |
|
|
3 |
|
|
0.09 |
|
Total consumer, niche and purchased loan
portfolio |
|
$ |
9,331,690 |
|
|
$ |
20,475 |
|
|
0.22 |
% |
Total loans, net of unearned income, excluding covered
loans |
|
$ |
23,820,691 |
|
|
$ |
152,770 |
|
|
0.64 |
% |
(1) Excludes purchased loans
reported in accordance with ASC 310-20 and ASC 310-30.
(2) Purchased loans represent loans reported in
accordance with ASC 310-20 and ASC 310-30.
|
|
As of September 30, 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 |
|
|
0.10 |
|
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 part of the regular quarterly review
performed by management to determine if the Company’s allowance for
loan losses is appropriate, an analysis is prepared on the loan
portfolio based upon a breakout of core loans and consumer, niche
and purchased loans. A summary of the allowance for loan losses
calculated for the loan components in both the core loan portfolio
and the consumer, niche and purchased loan portfolio was shown on
the preceding tables as of December 31, 2018 and
September 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.
In addition to the $152.8 million of allowance
for loan losses, there is $6.7 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 December 31, 2018 and September 30,
2018:
|
|
|
|
90+ days |
|
60-89 |
|
30-59 |
|
|
|
|
As of December
31, 2018 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in
thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan
Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
(1) |
|
$ |
50,984 |
|
|
$ |
3,313 |
|
|
$ |
1,651 |
|
|
$ |
34,861 |
|
|
$ |
7,737,729 |
|
|
$ |
7,828,538 |
|
Commercial real estate
(1) |
|
19,129 |
|
|
6,241 |
|
|
10,826 |
|
|
51,566 |
|
|
6,845,490 |
|
|
6,933,252 |
|
Home equity |
|
7,147 |
|
|
— |
|
|
131 |
|
|
3,105 |
|
|
541,960 |
|
|
552,343 |
|
Residential real estate
(1) |
|
16,383 |
|
|
1,292 |
|
|
1,692 |
|
|
6,171 |
|
|
976,926 |
|
|
1,002,464 |
|
Premium finance
receivables - commercial |
|
11,335 |
|
|
7,799 |
|
|
11,382 |
|
|
15,085 |
|
|
2,796,058 |
|
|
2,841,659 |
|
Premium finance
receivables - life insurance (1) |
|
— |
|
|
— |
|
|
8,407 |
|
|
24,628 |
|
|
4,508,759 |
|
|
4,541,794 |
|
Consumer and other
(1) |
|
348 |
|
|
227 |
|
|
87 |
|
|
733 |
|
|
119,246 |
|
|
120,641 |
|
Total
loans, net of unearned income |
|
$ |
105,326 |
|
|
$ |
18,872 |
|
|
$ |
34,176 |
|
|
$ |
136,149 |
|
|
$ |
23,526,168 |
|
|
$ |
23,820,691 |
|
As of December
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) |
|
0.7 |
% |
|
— |
% |
|
— |
% |
|
0.4 |
% |
|
98.9 |
% |
|
100.0 |
% |
Commercial real estate
(1) |
|
0.3 |
|
|
0.1 |
|
|
0.2 |
|
|
0.7 |
|
|
98.7 |
|
|
100.0 |
|
Home equity |
|
1.3 |
|
|
— |
|
|
— |
|
|
0.6 |
|
|
98.1 |
|
|
100.0 |
|
Residential real estate
(1) |
|
1.6 |
|
|
0.1 |
|
|
0.2 |
|
|
0.6 |
|
|
97.5 |
|
|
100.0 |
|
Premium finance
receivables - commercial |
|
0.4 |
|
|
0.3 |
|
|
0.4 |
|
|
0.5 |
|
|
98.4 |
|
|
100.0 |
|
Premium finance
receivables - life insurance (1) |
|
— |
|
|
— |
|
|
0.2 |
|
|
0.5 |
|
|
99.3 |
|
|
100.0 |
|
Consumer and other
(1) |
|
0.3 |
|
|
0.2 |
|
|
0.1 |
|
|
0.6 |
|
|
98.8 |
|
|
100.0 |
|
Total
loans, net of unearned income |
|
0.4 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.6 |
% |
|
98.8 |
% |
|
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 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.
As of December 31, 2018, $34.2 million of
all loans, or 0.1%, were 60 to 89 days past due and $136.1 million,
or 0.6%, were 30 to 59 days (or one payment) past due. 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. 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 December 31, 2018 that are current with regard to the
contractual terms of the loan agreement represent 98.1% of the
total home equity portfolio. Residential real estate loans at
December 31, 2018 that are current with regards to the
contractual terms of the loan agreements comprise 97.5% of total
residential real estate loans outstanding.
Non-performing Assets
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 PCI loans, at the dates indicated.
|
|
December 31, |
|
September 30, |
|
December 31, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017(3) |
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 |
|
7,799 |
|
|
7,028 |
|
|
9,242 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
109 |
|
|
233 |
|
|
40 |
|
Total
loans past due greater than 90 days and still accruing |
|
7,908 |
|
|
12,383 |
|
|
12,560 |
|
Non-accrual
loans(2): |
|
|
|
|
|
|
Commercial |
|
50,984 |
|
|
58,587 |
|
|
15,696 |
|
Commercial real estate |
|
19,129 |
|
|
17,515 |
|
|
22,048 |
|
Home
equity |
|
7,147 |
|
|
8,523 |
|
|
8,978 |
|
Residential real estate |
|
16,383 |
|
|
16,062 |
|
|
17,977 |
|
Premium
finance receivables - commercial |
|
11,335 |
|
|
13,802 |
|
|
12,163 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
348 |
|
|
355 |
|
|
740 |
|
Total
non-accrual loans |
|
105,326 |
|
|
114,844 |
|
|
77,602 |
|
Total
non-performing loans: |
|
|
|
|
|
|
Commercial |
|
50,984 |
|
|
63,709 |
|
|
15,696 |
|
Commercial real estate |
|
19,129 |
|
|
17,515 |
|
|
22,048 |
|
Home
equity |
|
7,147 |
|
|
8,523 |
|
|
8,978 |
|
Residential real estate |
|
16,383 |
|
|
16,062 |
|
|
21,255 |
|
Premium
finance receivables - commercial |
|
19,134 |
|
|
20,830 |
|
|
21,405 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
457 |
|
|
588 |
|
|
780 |
|
Total
non-performing loans |
|
$ |
113,234 |
|
|
$ |
127,227 |
|
|
$ |
90,162 |
|
Other
real estate owned |
|
11,968 |
|
|
14,924 |
|
|
20,244 |
|
Other
real estate owned - from acquisitions |
|
12,852 |
|
|
13,379 |
|
|
20,402 |
|
Other
repossessed assets |
|
280 |
|
|
294 |
|
|
153 |
|
Total
non-performing assets |
|
$ |
138,334 |
|
|
$ |
155,824 |
|
|
$ |
130,961 |
|
TDRs
performing under the contractual terms of the loan agreement |
|
$ |
33,281 |
|
|
$ |
31,487 |
|
|
$ |
39,683 |
|
Total
non-performing loans by category as a percent of its own
respective category’s period-end balance: |
|
|
|
|
|
|
Commercial |
|
0.65 |
% |
|
0.85 |
% |
|
0.23 |
% |
Commercial real estate |
|
0.28 |
|
|
0.26 |
|
|
0.34 |
|
Home
equity |
|
1.29 |
|
|
1.47 |
|
|
1.35 |
|
Residential real estate |
|
1.63 |
|
|
1.74 |
|
|
2.55 |
|
Premium
finance receivables - commercial |
|
0.67 |
|
|
0.72 |
|
|
0.81 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
0.38 |
|
|
0.51 |
|
|
0.72 |
|
Total
loans, net of unearned income |
|
0.48 |
% |
|
0.55 |
% |
|
0.42 |
% |
Total
non-performing assets as a percentage of total
assets |
|
0.44 |
% |
|
0.52 |
% |
|
0.47 |
% |
Allowance for
loan losses as a percentage of total non-performing
loans |
|
134.92 |
% |
|
117.71 |
% |
|
152.95 |
% |
(1) Loans past due greater than 90 days and
still accruing interest included TDRs totaling $5.1
million as of September 30, 2018. As of December 31,
2018 and December 31, 2017, no TDRs were past due greater
than 90 days and still accruing
interest.
(2) Non-accrual loans included
TDRs totaling $32.8 million, $34.7 million and $10.1 million as of
December 31, 2018, September 30, 2018 and
December 31, 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.
The ratio of non-performing assets to total
assets was 0.44% as of December 31, 2018, compared to 0.52% at
September 30, 2018, and 0.47% at December 31, 2017.
Non-performing assets, excluding PCI loans, totaled $138.3 million
at December 31, 2018, compared to $155.8 million at
September 30, 2018 and $131.0 million at December 31,
2017. Non-performing loans, excluding PCI loans, totaled $113.2
million, or 0.48% of total loans, at December 31, 2018
compared to $127.2 million, or 0.55% of total loans, at
September 30, 2018 and $90.2 million, or 0.42% of total loans,
at December 31, 2017. OREO of $24.8 million at
December 31, 2018 decreased $3.5 million compared to $28.3
million at September 30, 2018 and decreased $15.8 million
compared to $40.6 million at December 31, 2017.
Management is pursuing the resolution of all
credits in this category. At this time, management believes
reserves are appropriate to absorb inherent losses and OREO is
appropriately valued at the lower of carrying value or fair value
less estimated costs to sell.
Nonperforming Loans Rollforward
The table below presents a summary of the
changes in the balance of non-performing loans, excluding PCI
loans, for the periods presented:
|
|
Three Months Ended |
|
Years Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Balance at beginning of
period |
|
$ |
127,227 |
|
|
$ |
83,282 |
|
|
$ |
77,983 |
|
|
$ |
90,162 |
|
|
$ |
87,454 |
|
Additions, net, from non-covered portfolio |
|
18,553 |
|
|
56,864 |
|
|
25,619 |
|
|
92,428 |
|
|
55,738 |
|
Additions, net, from covered non-performing loans subsequent to
loss share expiration |
|
— |
|
|
— |
|
|
2,572 |
|
|
— |
|
|
2,572 |
|
Return to
performing status |
|
(6,155 |
) |
|
(3,782 |
) |
|
(426 |
) |
|
(14,449 |
) |
|
(3,596 |
) |
Payments
received |
|
(16,437 |
) |
|
(6,212 |
) |
|
(4,271 |
) |
|
(29,807 |
) |
|
(27,202 |
) |
Transfer
to OREO and other repossessed assets |
|
(970 |
) |
|
(659 |
) |
|
(3,960 |
) |
|
(7,138 |
) |
|
(9,236 |
) |
Charge-offs |
|
(7,161 |
) |
|
(3,108 |
) |
|
(2,443 |
) |
|
(15,792 |
) |
|
(10,362 |
) |
Net
change for niche loans (1) |
|
(1,823 |
) |
|
842 |
|
|
(4,912 |
) |
|
(2,170 |
) |
|
(5,206 |
) |
Balance at end
of period |
|
$ |
113,234 |
|
|
$ |
127,227 |
|
|
$ |
90,162 |
|
|
$ |
113,234 |
|
|
$ |
90,162 |
|
(1) This includes activity for premium finance
receivables and indirect consumer loans.
TDRs
The table below presents a summary of TDRs as of
the respective date, presented by loan category and accrual
status:
|
|
December 31, |
|
September 30, |
|
December 31, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
Accruing
TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
8,545 |
|
|
$ |
8,794 |
|
|
$ |
19,917 |
|
Commercial real estate |
|
13,895 |
|
|
14,160 |
|
|
16,160 |
|
Residential real estate and other |
|
10,841 |
|
|
8,533 |
|
|
3,606 |
|
Total
accrual |
|
$ |
33,281 |
|
|
$ |
31,487 |
|
|
$ |
39,683 |
|
Non-accrual
TDRs: (1) |
|
|
|
|
|
|
Commercial |
|
$ |
27,774 |
|
|
$ |
30,452 |
|
|
$ |
4,000 |
|
Commercial real estate |
|
1,552 |
|
|
1,326 |
|
|
1,340 |
|
Residential real estate and other |
|
3,495 |
|
|
2,954 |
|
|
4,763 |
|
Total
non-accrual |
|
$ |
32,821 |
|
|
$ |
34,732 |
|
|
$ |
10,103 |
|
Total
TDRs: |
|
|
|
|
|
|
Commercial |
|
$ |
36,319 |
|
|
$ |
39,246 |
|
|
$ |
23,917 |
|
Commercial real estate |
|
15,447 |
|
|
15,486 |
|
|
17,500 |
|
Residential real estate and other |
|
14,336 |
|
|
11,487 |
|
|
8,369 |
|
Total
TDRs |
|
$ |
66,102 |
|
|
$ |
66,219 |
|
|
$ |
49,786 |
|
Weighted-average contractual interest rate of
TDRs |
|
5.54 |
% |
|
5.48 |
% |
|
4.40 |
% |
(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
December 31, 2018, September 30, 2018 and
December 31, 2017, and shows the activity for the respective
period and the balance for each property type:
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2017 |
Balance at beginning of
period |
|
$ |
28,303 |
|
|
$ |
35,331 |
|
|
$ |
37,378 |
|
Disposals/resolved |
|
(3,848 |
) |
|
(7,291 |
) |
|
(6,107 |
) |
Transfers
in at fair value, less costs to sell |
|
997 |
|
|
349 |
|
|
6,733 |
|
Transfers
in from covered OREO subsequent to loss share expiration |
|
— |
|
|
— |
|
|
2,851 |
|
Additions
from acquisition |
|
160 |
|
|
1,418 |
|
|
— |
|
Fair
value adjustments |
|
(792 |
) |
|
(1,504 |
) |
|
(209 |
) |
Balance at end of
period |
|
$ |
24,820 |
|
|
$ |
28,303 |
|
|
$ |
40,646 |
|
|
|
|
|
|
|
|
|
|
Period End |
|
|
December 31, |
|
September 30, |
|
December 31, |
Balance by
Property Type |
|
2018 |
|
2018 |
|
2017 |
Residential real
estate |
|
$ |
3,446 |
|
|
$ |
3,735 |
|
|
$ |
7,515 |
|
Residential real estate
development |
|
1,426 |
|
|
1,952 |
|
|
2,221 |
|
Commercial real
estate |
|
19,948 |
|
|
22,616 |
|
|
30,910 |
|
Total |
|
$ |
24,820 |
|
|
$ |
28,303 |
|
|
$ |
40,646 |
|
Items Impacting Comparative Financial
Results:
Acquisitions
On December 14, 2018, the Company acquired
Elektra, the parent company of CDEC. CDEC is a provider of
Qualified Intermediary services (as defined by U.S. Treasury
regulations) for taxpayers seeking to structure tax-deferred
like-kind exchanges under Internal Revenue Code Section 1031.
CDEC has successfully facilitated more than 8,000 like-kind
exchanges in the past decade for taxpayers nationwide. These
transactions typically generate customer deposits during the period
following the sale of the property until such proceeds are used to
purchase a replacement property. During 2018, deposits from
CDEC customers averaged over $1 billion.
On December 7, 2018, the Company completed its acquisition of
certain assets and the assumption of certain liabilities of AEB.
Through this asset acquisition, the Company acquired approximately
$164 million in assets, including approximately $119 million in
loans, and approximately $151 million in deposits.
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 business
combination, the Company acquired Delaware Place Bank's one banking
location in Chicago, Illinois, approximately $283 million in
assets, including approximately $152 million in loans, 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.
- CDEC provides Qualified Intermediary services (as defined by
U.S. Treasury regulations) for taxpayers seeking to structure
tax-deferred like-kind exchanges under Internal Revenue Code
Section 1031.
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 9:00
a.m. (Central Time) on Wednesday, January 23, 2019 regarding fourth
quarter and full year 2018 results. Individuals interested in
listening should call (877) 363-5049 and enter Conference ID
#3897075. A simultaneous audio-only web cast and replay of the
conference call may be accessed via the Company’s website at
http://www.wintrust.com,
Investor Relations, Investor News and Events,
Presentations & Conference Calls. The text of the fourth
quarter and full year 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 |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
Selected
Financial Condition Data (at end of period): |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
31,241,521 |
|
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
|
$ |
27,915,970 |
|
Total loans
(7) |
|
23,820,691 |
|
|
23,123,951 |
|
|
22,610,560 |
|
|
22,062,134 |
|
|
21,640,797 |
|
Total deposits |
|
26,094,678 |
|
|
24,916,715 |
|
|
24,365,479 |
|
|
23,279,327 |
|
|
23,183,347 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Total shareholders’
equity |
|
3,267,570 |
|
|
3,179,822 |
|
|
3,106,871 |
|
|
3,031,250 |
|
|
2,976,939 |
|
Selected
Statements of Income Data: |
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
254,088 |
|
|
247,563 |
|
|
238,170 |
|
|
225,082 |
|
|
219,099 |
|
Net revenue
(1) |
|
329,396 |
|
|
347,493 |
|
|
333,403 |
|
|
310,761 |
|
|
300,137 |
|
Net income |
|
79,657 |
|
|
91,948 |
|
|
89,580 |
|
|
81,981 |
|
|
68,781 |
|
Net income per common
share – Basic |
|
$ |
1.38 |
|
|
$ |
1.59 |
|
|
$ |
1.55 |
|
|
$ |
1.42 |
|
|
$ |
1.19 |
|
Net income per common
share – Diluted |
|
$ |
1.35 |
|
|
$ |
1.57 |
|
|
$ |
1.53 |
|
|
$ |
1.40 |
|
|
$ |
1.17 |
|
Selected
Financial Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
3.61 |
% |
|
3.59 |
% |
|
3.61 |
% |
|
3.54 |
% |
|
3.45 |
% |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
|
3.63 |
% |
|
3.61 |
% |
|
3.63 |
% |
|
3.56 |
% |
|
3.49 |
% |
Non-interest income to
average assets |
|
0.99 |
% |
|
1.34 |
% |
|
1.34 |
% |
|
1.25 |
% |
|
1.18 |
% |
Non-interest expense to
average assets |
|
2.78 |
% |
|
2.87 |
% |
|
2.90 |
% |
|
2.83 |
% |
|
2.87 |
% |
Net overhead ratio
(3) |
|
1.79 |
% |
|
1.53 |
% |
|
1.57 |
% |
|
1.58 |
% |
|
1.69 |
% |
Return on average
assets |
|
1.05 |
% |
|
1.24 |
% |
|
1.26 |
% |
|
1.20 |
% |
|
1.00 |
% |
Return on average
common equity |
|
10.01 |
% |
|
11.86 |
% |
|
11.94 |
% |
|
11.29 |
% |
|
9.39 |
% |
Return on average
tangible common equity (non-GAAP) (2) |
|
12.48 |
% |
|
14.64 |
% |
|
14.72 |
% |
|
14.02 |
% |
|
11.65 |
% |
Average total
assets |
|
$ |
30,179,887 |
|
|
$ |
29,525,109 |
|
|
$ |
28,567,579 |
|
|
$ |
27,809,597 |
|
|
$ |
27,179,484 |
|
Average total
shareholders’ equity |
|
3,200,654 |
|
|
3,131,943 |
|
|
3,064,154 |
|
|
2,995,592 |
|
|
2,942,999 |
|
Average loans to
average deposits ratio (excluding covered loans) |
|
92.4 |
% |
|
92.2 |
% |
|
95.5 |
% |
|
95.2 |
% |
|
92.3 |
% |
Period-end loans to
deposits ratio (excluding covered loans) |
|
91.3 |
|
|
92.8 |
|
|
92.8 |
|
|
94.8 |
|
|
93.3 |
|
Common Share Data
at end of period: |
|
|
|
|
|
|
|
|
|
|
Market price per common
share |
|
$ |
66.49 |
|
|
$ |
84.94 |
|
|
$ |
87.05 |
|
|
$ |
86.05 |
|
|
$ |
82.37 |
|
Book value per common
share (2) |
|
$ |
55.71 |
|
|
$ |
54.19 |
|
|
$ |
52.94 |
|
|
$ |
51.66 |
|
|
$ |
50.96 |
|
Tangible common book
value per share (2) |
|
$ |
44.73 |
|
|
$ |
44.16 |
|
|
$ |
43.50 |
|
|
$ |
42.17 |
|
|
$ |
41.68 |
|
Common shares
outstanding |
|
56,407,558 |
|
|
56,377,169 |
|
|
56,329,276 |
|
|
56,256,498 |
|
|
55,965,207 |
|
Other Data at end
of period:(6) |
|
|
|
|
|
|
|
|
|
|
Leverage
Ratio(4) |
|
9.1 |
% |
|
9.3 |
% |
|
9.4 |
% |
|
9.3 |
% |
|
9.3 |
% |
Tier 1 Capital to
risk-weighted assets (4) |
|
9.6 |
% |
|
10.0 |
% |
|
10.0 |
% |
|
10.0 |
% |
|
9.9 |
% |
Common equity Tier 1
capital to risk-weighted assets (4) |
|
9.2 |
% |
|
9.5 |
% |
|
9.6 |
% |
|
9.5 |
% |
|
9.4 |
% |
Total capital to
risk-weighted assets (4) |
|
11.6 |
% |
|
12.0 |
% |
|
12.1 |
% |
|
12.0 |
% |
|
12.0 |
% |
Allowance for credit
losses (5) |
|
$ |
154,164 |
|
|
$ |
151,001 |
|
|
$ |
144,645 |
|
|
$ |
140,746 |
|
|
$ |
139,174 |
|
Non-performing
loans |
|
113,234 |
|
|
127,227 |
|
|
83,282 |
|
|
89,690 |
|
|
90,162 |
|
Allowance for credit
losses to total loans (5) |
|
0.65 |
% |
|
0.65 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
0.64 |
% |
Non-performing loans to
total loans |
|
0.48 |
% |
|
0.55 |
% |
|
0.37 |
% |
|
0.41 |
% |
|
0.42 |
% |
Number of: |
|
|
|
|
|
|
|
|
|
|
Bank
subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
Banking
offices |
|
167 |
|
|
166 |
|
|
162 |
|
|
157 |
|
|
157 |
|
(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) |
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(In
thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
392,142 |
|
|
$ |
279,936 |
|
|
$ |
304,580 |
|
|
$ |
231,407 |
|
|
$ |
277,534 |
|
Federal funds sold and
securities purchased under resale agreements |
|
58 |
|
|
57 |
|
|
62 |
|
|
57 |
|
|
57 |
|
Interest bearing
deposits with banks |
|
1,099,594 |
|
|
1,137,044 |
|
|
1,221,407 |
|
|
980,380 |
|
|
1,063,242 |
|
Available-for-sale
securities, at fair value |
|
2,126,081 |
|
|
2,164,985 |
|
|
1,940,787 |
|
|
1,895,688 |
|
|
1,803,666 |
|
Held-to-maturity
securities, at amortized cost |
|
1,067,439 |
|
|
966,438 |
|
|
890,834 |
|
|
892,937 |
|
|
826,449 |
|
Trading account
securities |
|
1,692 |
|
|
688 |
|
|
862 |
|
|
1,682 |
|
|
995 |
|
Equity securities with
readily determinable fair value |
|
34,717 |
|
|
36,414 |
|
|
37,839 |
|
|
37,832 |
|
|
— |
|
Federal Home Loan Bank
and Federal Reserve Bank stock |
|
91,354 |
|
|
99,998 |
|
|
96,699 |
|
|
104,956 |
|
|
89,989 |
|
Brokerage customer
receivables |
|
12,609 |
|
|
15,649 |
|
|
16,649 |
|
|
24,531 |
|
|
26,431 |
|
Mortgage loans
held-for-sale |
|
264,070 |
|
|
338,111 |
|
|
455,712 |
|
|
411,505 |
|
|
313,592 |
|
Loans, net of unearned
income |
|
23,820,691 |
|
|
23,123,951 |
|
|
22,610,560 |
|
|
22,062,134 |
|
|
21,640,797 |
|
Allowance for loan
losses |
|
(152,770 |
) |
|
(149,756 |
) |
|
(143,402 |
) |
|
(139,503 |
) |
|
(137,905 |
) |
Net
loans |
|
23,667,921 |
|
|
22,974,195 |
|
|
22,467,158 |
|
|
21,922,631 |
|
|
21,502,892 |
|
Premises and equipment,
net |
|
671,169 |
|
|
664,469 |
|
|
639,345 |
|
|
626,687 |
|
|
621,895 |
|
Lease investments,
net |
|
233,208 |
|
|
199,241 |
|
|
194,160 |
|
|
190,775 |
|
|
212,335 |
|
Accrued interest
receivable and other assets |
|
696,707 |
|
|
700,568 |
|
|
666,673 |
|
|
601,794 |
|
|
567,374 |
|
Trade date securities
receivable |
|
263,523 |
|
|
— |
|
|
450 |
|
|
— |
|
|
90,014 |
|
Goodwill and other
intangible assets |
|
619,237 |
|
|
564,938 |
|
|
531,371 |
|
|
533,910 |
|
|
519,505 |
|
Total assets |
|
$ |
31,241,521 |
|
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
|
$ |
27,915,970 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
6,569,880 |
|
|
$ |
6,399,213 |
|
|
$ |
6,520,724 |
|
|
$ |
6,612,319 |
|
|
$ |
6,792,497 |
|
Interest
bearing |
|
19,524,798 |
|
|
18,517,502 |
|
|
17,844,755 |
|
|
16,667,008 |
|
|
16,390,850 |
|
Total
deposits |
|
26,094,678 |
|
|
24,916,715 |
|
|
24,365,479 |
|
|
23,279,327 |
|
|
23,183,347 |
|
Federal Home Loan Bank
advances |
|
426,326 |
|
|
615,000 |
|
|
667,000 |
|
|
915,000 |
|
|
559,663 |
|
Other borrowings |
|
393,855 |
|
|
373,571 |
|
|
255,701 |
|
|
247,092 |
|
|
266,123 |
|
Subordinated notes |
|
139,210 |
|
|
139,172 |
|
|
139,148 |
|
|
139,111 |
|
|
139,088 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Accrued interest
payable and other liabilities |
|
666,316 |
|
|
664,885 |
|
|
676,823 |
|
|
591,426 |
|
|
537,244 |
|
Total
liabilities |
|
27,973,951 |
|
|
26,962,909 |
|
|
26,357,717 |
|
|
25,425,522 |
|
|
24,939,031 |
|
Shareholders’
Equity: |
|
|
|
|
|
|
|
|
|
|
Preferred
stock |
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
Common
stock |
|
56,518 |
|
|
56,486 |
|
|
56,437 |
|
|
56,364 |
|
|
56,068 |
|
Surplus |
|
1,557,984 |
|
|
1,553,353 |
|
|
1,547,511 |
|
|
1,540,673 |
|
|
1,529,035 |
|
Treasury
stock |
|
(5,634 |
) |
|
(5,547 |
) |
|
(5,355 |
) |
|
(5,355 |
) |
|
(4,986 |
) |
Retained
earnings |
|
1,610,574 |
|
|
1,543,680 |
|
|
1,464,494 |
|
|
1,387,663 |
|
|
1,313,657 |
|
Accumulated other comprehensive loss |
|
(76,872 |
) |
|
(93,150 |
) |
|
(81,216 |
) |
|
(73,095 |
) |
|
(41,835 |
) |
Total
shareholders’ equity |
|
3,267,570 |
|
|
3,179,822 |
|
|
3,106,871 |
|
|
3,031,250 |
|
|
2,976,939 |
|
Total liabilities and shareholders’ equity |
|
$ |
31,241,521 |
|
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
|
$ |
27,915,970 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Consolidated Statements of Income (Unaudited) - 5 Quarter
Trends
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(In thousands,
except per share data) |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
Interest
income |
|
|
|
|
|
|
|
|
|
|
Interest
and fees on loans |
|
283,311 |
|
|
271,134 |
|
|
255,063 |
|
|
234,994 |
|
|
226,447 |
|
Mortgage
loans held-for-sale |
|
3,409 |
|
|
5,285 |
|
|
4,226 |
|
|
2,818 |
|
|
3,291 |
|
Interest
bearing deposits with banks |
|
5,628 |
|
|
5,423 |
|
|
3,243 |
|
|
2,796 |
|
|
2,723 |
|
Federal
funds sold and securities purchased under resale agreements |
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
|
— |
|
Investment securities |
|
26,656 |
|
|
21,710 |
|
|
19,888 |
|
|
19,128 |
|
|
18,160 |
|
Trading
account securities |
|
14 |
|
|
11 |
|
|
4 |
|
|
14 |
|
|
2 |
|
Federal
Home Loan Bank and Federal Reserve Bank stock |
|
1,343 |
|
|
1,235 |
|
|
1,455 |
|
|
1,298 |
|
|
1,067 |
|
Brokerage
customer receivables |
|
235 |
|
|
164 |
|
|
167 |
|
|
157 |
|
|
150 |
|
Total
interest income |
|
320,596 |
|
|
304,962 |
|
|
284,047 |
|
|
261,205 |
|
|
251,840 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
Interest
on deposits |
|
55,975 |
|
|
48,736 |
|
|
35,293 |
|
|
26,549 |
|
|
24,930 |
|
Interest
on Federal Home Loan Bank advances |
|
2,563 |
|
|
1,947 |
|
|
4,263 |
|
|
3,639 |
|
|
2,124 |
|
Interest
on other borrowings |
|
3,199 |
|
|
2,003 |
|
|
1,698 |
|
|
1,699 |
|
|
1,600 |
|
Interest
on subordinated notes |
|
1,788 |
|
|
1,773 |
|
|
1,787 |
|
|
1,773 |
|
|
1,786 |
|
Interest
on junior subordinated debentures |
|
2,983 |
|
|
2,940 |
|
|
2,836 |
|
|
2,463 |
|
|
2,301 |
|
Total
interest expense |
|
66,508 |
|
|
57,399 |
|
|
45,877 |
|
|
36,123 |
|
|
32,741 |
|
Net interest
income |
|
254,088 |
|
|
247,563 |
|
|
238,170 |
|
|
225,082 |
|
|
219,099 |
|
Provision for credit
losses |
|
10,401 |
|
|
11,042 |
|
|
5,043 |
|
|
8,346 |
|
|
7,772 |
|
Net interest income
after provision for credit losses |
|
243,687 |
|
|
236,521 |
|
|
233,127 |
|
|
216,736 |
|
|
211,327 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
|
Wealth
management |
|
22,726 |
|
|
22,634 |
|
|
22,617 |
|
|
22,986 |
|
|
21,910 |
|
Mortgage
banking |
|
24,182 |
|
|
42,014 |
|
|
39,834 |
|
|
30,960 |
|
|
27,411 |
|
Service
charges on deposit accounts |
|
9,065 |
|
|
9,331 |
|
|
9,151 |
|
|
8,857 |
|
|
8,907 |
|
(Losses)
gains on investment securities, net |
|
(2,649 |
) |
|
90 |
|
|
12 |
|
|
(351 |
) |
|
14 |
|
Fees from
covered call options |
|
626 |
|
|
627 |
|
|
669 |
|
|
1,597 |
|
|
1,610 |
|
Trading
(losses) gains, net |
|
(155 |
) |
|
(61 |
) |
|
124 |
|
|
103 |
|
|
24 |
|
Operating
lease income, net |
|
10,882 |
|
|
9,132 |
|
|
8,746 |
|
|
9,691 |
|
|
8,598 |
|
Other |
|
10,631 |
|
|
16,163 |
|
|
14,080 |
|
|
11,836 |
|
|
12,564 |
|
Total
non-interest income |
|
75,308 |
|
|
99,930 |
|
|
95,233 |
|
|
85,679 |
|
|
81,038 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
122,111 |
|
|
123,855 |
|
|
121,675 |
|
|
112,436 |
|
|
118,009 |
|
Equipment |
|
11,523 |
|
|
10,827 |
|
|
10,527 |
|
|
10,072 |
|
|
9,500 |
|
Operating
lease equipment depreciation |
|
8,462 |
|
|
7,370 |
|
|
6,940 |
|
|
6,533 |
|
|
7,015 |
|
Occupancy, net |
|
15,980 |
|
|
14,404 |
|
|
13,663 |
|
|
13,767 |
|
|
14,154 |
|
Data
processing |
|
8,447 |
|
|
9,335 |
|
|
8,752 |
|
|
8,493 |
|
|
7,915 |
|
Advertising and marketing |
|
9,414 |
|
|
11,120 |
|
|
11,782 |
|
|
8,824 |
|
|
7,382 |
|
Professional fees |
|
9,259 |
|
|
9,914 |
|
|
6,484 |
|
|
6,649 |
|
|
8,879 |
|
Amortization of other intangible assets |
|
1,407 |
|
|
1,163 |
|
|
997 |
|
|
1,004 |
|
|
1,028 |
|
FDIC
insurance |
|
4,044 |
|
|
4,205 |
|
|
4,598 |
|
|
4,362 |
|
|
4,324 |
|
OREO
expense, net |
|
1,618 |
|
|
596 |
|
|
980 |
|
|
2,926 |
|
|
599 |
|
Other |
|
19,068 |
|
|
20,848 |
|
|
20,371 |
|
|
19,283 |
|
|
17,775 |
|
Total
non-interest expense |
|
211,333 |
|
|
213,637 |
|
|
206,769 |
|
|
194,349 |
|
|
196,580 |
|
Income before
taxes |
|
107,662 |
|
|
122,814 |
|
|
121,591 |
|
|
108,066 |
|
|
95,785 |
|
Income tax expense |
|
28,005 |
|
|
30,866 |
|
|
32,011 |
|
|
26,085 |
|
|
27,004 |
|
Net
income |
|
$ |
79,657 |
|
|
$ |
91,948 |
|
|
$ |
89,580 |
|
|
$ |
81,981 |
|
|
$ |
68,781 |
|
Preferred stock
dividends |
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
Net income
applicable to common shares |
|
$ |
77,607 |
|
|
$ |
89,898 |
|
|
$ |
87,530 |
|
|
$ |
79,931 |
|
|
$ |
66,731 |
|
Net income per
common share - Basic |
|
$ |
1.38 |
|
|
$ |
1.59 |
|
|
$ |
1.55 |
|
|
$ |
1.42 |
|
|
$ |
1.19 |
|
Net income per
common share - Diluted |
|
$ |
1.35 |
|
|
$ |
1.57 |
|
|
$ |
1.53 |
|
|
$ |
1.40 |
|
|
$ |
1.17 |
|
Cash dividends
declared per common share |
|
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
0.14 |
|
Weighted average common
shares outstanding |
|
56,395 |
|
|
56,366 |
|
|
56,299 |
|
|
56,137 |
|
|
55,924 |
|
Dilutive potential
common shares |
|
892 |
|
|
918 |
|
|
928 |
|
|
888 |
|
|
1,010 |
|
Average common shares
and dilutive common shares |
|
57,287 |
|
|
57,284 |
|
|
57,227 |
|
|
57,025 |
|
|
56,934 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Period End Loan Balances - 5 Quarter Trends
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
7,828,538 |
|
|
$ |
7,473,958 |
|
|
$ |
7,289,060 |
|
|
$ |
7,060,871 |
|
|
$ |
6,787,677 |
|
Commercial real estate |
|
6,933,252 |
|
|
6,746,774 |
|
|
6,575,084 |
|
|
6,633,520 |
|
|
6,580,618 |
|
Home
equity |
|
552,343 |
|
|
578,844 |
|
|
593,500 |
|
|
626,547 |
|
|
663,045 |
|
Residential real estate |
|
1,002,464 |
|
|
924,250 |
|
|
895,470 |
|
|
869,104 |
|
|
832,120 |
|
Premium
finance receivables - commercial |
|
2,841,659 |
|
|
2,885,327 |
|
|
2,833,452 |
|
|
2,576,150 |
|
|
2,634,565 |
|
Premium
finance receivables - life insurance |
|
4,541,794 |
|
|
4,398,971 |
|
|
4,302,288 |
|
|
4,189,961 |
|
|
4,035,059 |
|
Consumer
and other |
|
120,641 |
|
|
115,827 |
|
|
121,706 |
|
|
105,981 |
|
|
107,713 |
|
Total
loans, net of unearned income |
|
$ |
23,820,691 |
|
|
$ |
23,123,951 |
|
|
$ |
22,610,560 |
|
|
$ |
22,062,134 |
|
|
$ |
21,640,797 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
33 |
% |
|
32 |
% |
|
32 |
% |
|
32 |
% |
|
31 |
% |
Commercial real estate |
|
29 |
|
|
29 |
|
|
29 |
|
|
30 |
|
|
30 |
|
Home
equity |
|
2 |
|
|
3 |
|
|
3 |
|
|
3 |
|
|
3 |
|
Residential real estate |
|
4 |
|
|
4 |
|
|
4 |
|
|
4 |
|
|
4 |
|
Premium
finance receivables - commercial |
|
12 |
|
|
12 |
|
|
12 |
|
|
12 |
|
|
12 |
|
Premium
finance receivables - life insurance |
|
19 |
|
|
19 |
|
|
19 |
|
|
19 |
|
|
19 |
|
Consumer
and other |
|
1 |
|
|
1 |
|
|
1 |
|
|
— |
|
|
1 |
|
Total
loans, net of unearned income |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Period End Deposits Balances - 5 Quarter
Trends
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
Balance: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
6,569,880 |
|
|
$ |
6,399,213 |
|
|
$ |
6,520,724 |
|
|
$ |
6,612,319 |
|
|
$ |
6,792,497 |
|
NOW and
interest bearing demand deposits |
|
2,897,133 |
|
|
2,512,259 |
|
|
2,452,474 |
|
|
2,315,122 |
|
|
2,315,055 |
|
Wealth
management deposits (1) |
|
2,996,764 |
|
|
2,520,120 |
|
|
2,523,572 |
|
|
2,495,134 |
|
|
2,323,699 |
|
Money
market |
|
5,704,866 |
|
|
5,429,921 |
|
|
5,205,678 |
|
|
4,617,122 |
|
|
4,515,353 |
|
Savings |
|
2,665,194 |
|
|
2,595,164 |
|
|
2,763,062 |
|
|
2,901,504 |
|
|
2,829,373 |
|
Time
certificates of deposit |
|
5,260,841 |
|
|
5,460,038 |
|
|
4,899,969 |
|
|
4,338,126 |
|
|
4,407,370 |
|
Total
deposits |
|
$ |
26,094,678 |
|
|
$ |
24,916,715 |
|
|
$ |
24,365,479 |
|
|
$ |
23,279,327 |
|
|
$ |
23,183,347 |
|
Mix: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
25 |
% |
|
26 |
% |
|
27 |
% |
|
28 |
% |
|
29 |
% |
NOW and
interest bearing demand deposits |
|
11 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
10 |
|
Wealth
management deposits (1) |
|
12 |
|
|
10 |
|
|
11 |
|
|
11 |
|
|
10 |
|
Money
market |
|
22 |
|
|
22 |
|
|
21 |
|
|
20 |
|
|
20 |
|
Savings |
|
10 |
|
|
10 |
|
|
11 |
|
|
12 |
|
|
12 |
|
Time
certificates of deposit |
|
20 |
|
|
22 |
|
|
20 |
|
|
19 |
|
|
19 |
|
Total
deposits |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
(1) Represents deposit balances of the
Company’s subsidiary banks from brokerage customers of Wintrust
Investments, CDEC, trust and asset management customers of the
Company and brokerage customers from unaffiliated companies which
have been placed into deposit accounts of the Banks.
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Net Interest Margin (Including Call Option Income) - 5
Quarter Trends
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
Net interest income -
FTE |
|
$ |
255,658 |
|
|
$ |
249,082 |
|
|
$ |
239,549 |
|
|
$ |
226,286 |
|
|
$ |
221,226 |
|
Call option income |
|
626 |
|
|
627 |
|
|
669 |
|
|
1,597 |
|
|
1,610 |
|
Net interest income
including call option income |
|
$ |
256,284 |
|
|
$ |
249,709 |
|
|
$ |
240,218 |
|
|
$ |
227,883 |
|
|
$ |
222,836 |
|
Yield on earning
assets |
|
4.58 |
% |
|
4.45 |
% |
|
4.32 |
% |
|
4.13 |
% |
|
4.00 |
% |
Rate on
interest-bearing liabilities |
|
1.33 |
|
|
1.17 |
|
|
1.00 |
|
|
0.83 |
|
|
0.75 |
|
Rate spread |
|
3.25 |
% |
|
3.28 |
% |
|
3.32 |
% |
|
3.30 |
% |
|
3.25 |
% |
Less: Fully
tax-equivalent adjustment |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.04 |
) |
Net free funds
contribution |
|
0.38 |
|
|
0.33 |
|
|
0.31 |
|
|
0.26 |
|
|
0.24 |
|
Net interest margin
(GAAP-derived) |
|
3.61 |
% |
|
3.59 |
% |
|
3.61 |
% |
|
3.54 |
% |
|
3.45 |
% |
Fully tax-equivalent
adjustment |
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.04 |
|
Net interest margin -
FTE |
|
3.63 |
% |
|
3.61 |
% |
|
3.63 |
% |
|
3.56 |
% |
|
3.49 |
% |
Call option income |
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
0.03 |
|
|
0.03 |
|
Net interest margin -
FTE, including call option income |
|
3.64 |
% |
|
3.62 |
% |
|
3.64 |
% |
|
3.59 |
% |
|
3.52 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Net Interest Margin (Including Call Option Income - YTD
Trends)
|
|
Years Ended December 31, |
(Dollars in
thousands) |
|
2018 |
|
2017 |
|
2016 |
|
2015 |
|
2014 |
Net interest income -
FTE |
|
$ |
970,575 |
|
|
$ |
839,563 |
|
|
$ |
728,145 |
|
|
$ |
646,238 |
|
|
$ |
601,744 |
|
Call option income |
|
3,519 |
|
|
4,402 |
|
|
11,470 |
|
|
15,364 |
|
|
7,859 |
|
Net interest income
including call option income |
|
$ |
974,094 |
|
|
$ |
843,965 |
|
|
$ |
739,615 |
|
|
$ |
661,602 |
|
|
$ |
609,603 |
|
Yield on earning
assets |
|
4.38 |
% |
|
3.91 |
% |
|
3.67 |
% |
|
3.76 |
% |
|
3.96 |
% |
Rate on
interest-bearing liabilities |
|
1.09 |
|
|
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 |
|
0.32 |
|
|
0.20 |
|
|
0.16 |
|
|
0.14 |
|
|
0.12 |
|
Net interest margin
(GAAP-derived) |
|
3.59 |
% |
|
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 |
|
3.61 |
% |
|
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 |
|
3.62 |
% |
|
3.46 |
% |
|
3.31 |
% |
|
3.44 |
% |
|
3.58 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Quarterly Average Balances - 5 Quarter Trends
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(In
thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
Interest-bearing
deposits with banks and cash equivalents |
|
$ |
1,042,860 |
|
|
$ |
998,004 |
|
|
$ |
759,425 |
|
|
$ |
749,973 |
|
|
$ |
914,319 |
|
Investment
securities |
|
3,347,496 |
|
|
3,046,272 |
|
|
2,890,828 |
|
|
2,892,617 |
|
|
2,736,253 |
|
FHLB and FRB stock |
|
98,084 |
|
|
88,335 |
|
|
115,119 |
|
|
105,414 |
|
|
82,092 |
|
Liquidity management
assets |
|
$ |
4,488,440 |
|
|
$ |
4,132,611 |
|
|
$ |
3,765,372 |
|
|
$ |
3,748,004 |
|
|
$ |
3,732,664 |
|
Other earning
assets |
|
16,204 |
|
|
17,862 |
|
|
21,244 |
|
|
27,571 |
|
|
26,955 |
|
Mortgage loans
held-for-sale |
|
265,717 |
|
|
380,235 |
|
|
403,967 |
|
|
281,181 |
|
|
335,385 |
|
Loans, net of unearned
income |
|
23,164,154 |
|
|
22,823,378 |
|
|
22,283,541 |
|
|
21,711,342 |
|
|
21,080,984 |
|
Covered loans |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
6,025 |
|
Total
earning assets |
|
$ |
27,934,515 |
|
|
$ |
27,354,086 |
|
|
$ |
26,474,124 |
|
|
$ |
25,768,098 |
|
|
$ |
25,182,013 |
|
Allowance for loan and
covered loan losses |
|
(154,438 |
) |
|
(148,503 |
) |
|
(147,192 |
) |
|
(143,108 |
) |
|
(138,584 |
) |
Cash and due from
banks |
|
271,403 |
|
|
268,006 |
|
|
270,240 |
|
|
254,489 |
|
|
244,097 |
|
Other assets |
|
2,128,407 |
|
|
2,051,520 |
|
|
1,970,407 |
|
|
1,930,118 |
|
|
1,891,958 |
|
Total
assets |
|
$ |
30,179,887 |
|
|
$ |
29,525,109 |
|
|
$ |
28,567,579 |
|
|
$ |
27,809,597 |
|
|
$ |
27,179,484 |
|
NOW and interest
bearing demand deposits |
|
$ |
2,671,283 |
|
|
$ |
2,519,445 |
|
|
$ |
2,295,268 |
|
|
$ |
2,255,692 |
|
|
$ |
2,284,576 |
|
Wealth management
deposits |
|
2,289,904 |
|
|
2,517,141 |
|
|
2,365,191 |
|
|
2,250,139 |
|
|
2,005,197 |
|
Money market
accounts |
|
5,632,268 |
|
|
5,369,324 |
|
|
4,883,645 |
|
|
4,520,620 |
|
|
4,611,515 |
|
Savings accounts |
|
2,553,133 |
|
|
2,672,077 |
|
|
2,702,665 |
|
|
2,813,772 |
|
|
2,741,621 |
|
Time deposits |
|
5,381,029 |
|
|
5,214,637 |
|
|
4,557,187 |
|
|
4,322,111 |
|
|
4,581,464 |
|
Interest-bearing
deposits |
|
$ |
18,527,617 |
|
|
$ |
18,292,624 |
|
|
$ |
16,803,956 |
|
|
$ |
16,162,334 |
|
|
$ |
16,224,373 |
|
Federal Home Loan Bank
advances |
|
551,846 |
|
|
429,739 |
|
|
1,006,407 |
|
|
872,811 |
|
|
324,748 |
|
Other borrowings |
|
385,878 |
|
|
268,278 |
|
|
240,066 |
|
|
263,125 |
|
|
255,972 |
|
Subordinated notes |
|
139,186 |
|
|
139,155 |
|
|
139,125 |
|
|
139,094 |
|
|
139,065 |
|
Junior subordinated
debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Total
interest-bearing liabilities |
|
$ |
19,858,093 |
|
|
$ |
19,383,362 |
|
|
$ |
18,443,120 |
|
|
$ |
17,690,930 |
|
|
$ |
17,197,724 |
|
Non-interest bearing
deposits |
|
6,542,228 |
|
|
6,461,195 |
|
|
6,539,731 |
|
|
6,639,845 |
|
|
6,605,553 |
|
Other liabilities |
|
578,912 |
|
|
548,609 |
|
|
520,574 |
|
|
483,230 |
|
|
433,208 |
|
Equity |
|
3,200,654 |
|
|
3,131,943 |
|
|
3,064,154 |
|
|
2,995,592 |
|
|
2,942,999 |
|
Total
liabilities and shareholders’ equity |
|
$ |
30,179,887 |
|
|
$ |
29,525,109 |
|
|
$ |
28,567,579 |
|
|
$ |
27,809,597 |
|
|
$ |
27,179,484 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Net Interest Margin - 5 Quarter Trends
|
|
Three Months Ended |
|
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
|
March 31,
2018 |
|
December 31,
2017 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks and cash equivalents |
|
2.14 |
% |
|
2.16 |
% |
|
1.71 |
% |
|
1.51 |
% |
|
1.18 |
% |
Investment
securities |
|
3.23 |
|
|
2.90 |
|
|
2.84 |
|
|
2.76 |
|
|
2.78 |
|
FHLB and FRB stock |
|
5.43 |
|
|
5.54 |
|
|
5.07 |
|
|
4.99 |
|
|
5.15 |
|
Liquidity management
assets |
|
3.02 |
% |
|
2.78 |
% |
|
2.68 |
% |
|
2.57 |
% |
|
2.44 |
% |
Other earning
assets |
|
6.19 |
|
|
3.95 |
|
|
3.24 |
|
|
2.56 |
|
|
2.27 |
|
Mortgage loans
held-for-sale |
|
5.09 |
|
|
5.51 |
|
|
4.20 |
|
|
4.06 |
|
|
3.89 |
|
Loans, net of unearned
income |
|
4.87 |
|
|
4.73 |
|
|
4.61 |
|
|
4.40 |
|
|
4.28 |
|
Covered loans |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
5.66 |
|
Total
earning assets |
|
4.58 |
% |
|
4.45 |
% |
|
4.32 |
% |
|
4.13 |
% |
|
4.00 |
% |
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
NOW and interest
bearing demand deposits |
|
0.60 |
% |
|
0.39 |
% |
|
0.33 |
% |
|
0.25 |
% |
|
0.24 |
% |
Wealth management
deposits |
|
1.23 |
|
|
1.31 |
|
|
1.19 |
|
|
0.98 |
|
|
0.80 |
|
Money market
accounts |
|
1.19 |
|
|
0.98 |
|
|
0.67 |
|
|
0.42 |
|
|
0.36 |
|
Savings accounts |
|
0.48 |
|
|
0.43 |
|
|
0.40 |
|
|
0.39 |
|
|
0.39 |
|
Time deposits |
|
1.83 |
|
|
1.66 |
|
|
1.37 |
|
|
1.16 |
|
|
1.09 |
|
Interest-bearing
deposits |
|
1.20 |
% |
|
1.06 |
% |
|
0.84 |
% |
|
0.67 |
% |
|
0.61 |
% |
Federal Home Loan Bank
advances |
|
1.84 |
|
|
1.80 |
|
|
1.70 |
|
|
1.69 |
|
|
2.59 |
|
Other borrowings |
|
3.29 |
|
|
2.96 |
|
|
2.84 |
|
|
2.62 |
|
|
2.48 |
|
Subordinated notes |
|
5.14 |
|
|
5.10 |
|
|
5.14 |
|
|
5.10 |
|
|
5.14 |
|
Junior subordinated
debentures |
|
4.60 |
|
|
4.54 |
|
|
4.42 |
|
|
3.89 |
|
|
3.55 |
|
Total
interest-bearing liabilities |
|
1.33 |
% |
|
1.17 |
% |
|
1.00 |
% |
|
0.83 |
% |
|
0.75 |
% |
Interest rate
spread |
|
3.25 |
% |
|
3.28 |
% |
|
3.32 |
% |
|
3.30 |
% |
|
3.25 |
% |
Less: Fully
tax-equivalent adjustment |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.04 |
) |
Net free
funds/contribution |
|
0.38 |
|
|
0.33 |
|
|
0.31 |
|
|
0.26 |
|
|
0.24 |
|
Net interest margin
(GAAP) |
|
3.61 |
% |
|
3.59 |
% |
|
3.61 |
% |
|
3.54 |
% |
|
3.45 |
% |
Fully tax-equivalent
adjustment |
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.04 |
|
Net interest margin -
FTE |
|
3.63 |
% |
|
3.61 |
% |
|
3.63 |
% |
|
3.56 |
% |
|
3.49 |
% |
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Interest Income - 5 Quarter Trends
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(In
thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
Brokerage |
|
$ |
4,997 |
|
|
$ |
5,579 |
|
|
$ |
5,784 |
|
|
$ |
6,031 |
|
|
$ |
6,067 |
|
Trust and asset
management |
|
17,729 |
|
|
17,055 |
|
|
16,833 |
|
|
16,955 |
|
|
15,843 |
|
Total
wealth management |
|
22,726 |
|
|
22,634 |
|
|
22,617 |
|
|
22,986 |
|
|
21,910 |
|
Mortgage banking |
|
24,182 |
|
|
42,014 |
|
|
39,834 |
|
|
30,960 |
|
|
27,411 |
|
Service charges on
deposit accounts |
|
9,065 |
|
|
9,331 |
|
|
9,151 |
|
|
8,857 |
|
|
8,907 |
|
Gains (losses) on
investment securities, net |
|
(2,649 |
) |
|
90 |
|
|
12 |
|
|
(351 |
) |
|
14 |
|
Fees from covered call
options |
|
626 |
|
|
627 |
|
|
669 |
|
|
1,597 |
|
|
1,610 |
|
Trading gains (losses),
net |
|
(155 |
) |
|
(61 |
) |
|
124 |
|
|
103 |
|
|
24 |
|
Operating lease income,
net |
|
10,882 |
|
|
9,132 |
|
|
8,746 |
|
|
9,691 |
|
|
8,598 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
Interest
rate swap fees |
|
2,602 |
|
|
2,359 |
|
|
3,829 |
|
|
2,237 |
|
|
1,963 |
|
BOLI |
|
(466 |
) |
|
3,190 |
|
|
1,544 |
|
|
714 |
|
|
754 |
|
Administrative services |
|
1,260 |
|
|
1,099 |
|
|
1,205 |
|
|
1,061 |
|
|
1,103 |
|
Early
pay-offs of capital leases |
|
3 |
|
|
11 |
|
|
554 |
|
|
33 |
|
|
7 |
|
Miscellaneous |
|
7,232 |
|
|
9,504 |
|
|
6,948 |
|
|
7,791 |
|
|
8,737 |
|
Total
other income |
|
10,631 |
|
|
16,163 |
|
|
14,080 |
|
|
11,836 |
|
|
12,564 |
|
Total Non-Interest Income |
|
$ |
75,308 |
|
|
$ |
99,930 |
|
|
$ |
95,233 |
|
|
$ |
85,679 |
|
|
$ |
81,038 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Non-Interest Expense - 5 Quarter Trends
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(In
thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
Salaries |
|
$ |
67,708 |
|
|
$ |
69,893 |
|
|
$ |
66,976 |
|
|
$ |
61,986 |
|
|
$ |
58,239 |
|
Commissions and
incentive compensation |
|
33,656 |
|
|
34,046 |
|
|
35,907 |
|
|
31,949 |
|
|
40,723 |
|
Benefits |
|
20,747 |
|
|
19,916 |
|
|
18,792 |
|
|
18,501 |
|
|
19,047 |
|
Total salaries and
employee benefits |
|
122,111 |
|
|
123,855 |
|
|
121,675 |
|
|
112,436 |
|
|
118,009 |
|
Equipment |
|
11,523 |
|
|
10,827 |
|
|
10,527 |
|
|
10,072 |
|
|
9,500 |
|
Operating lease
equipment depreciation |
|
8,462 |
|
|
7,370 |
|
|
6,940 |
|
|
6,533 |
|
|
7,015 |
|
Occupancy, net |
|
15,980 |
|
|
14,404 |
|
|
13,663 |
|
|
13,767 |
|
|
14,154 |
|
Data processing |
|
8,447 |
|
|
9,335 |
|
|
8,752 |
|
|
8,493 |
|
|
7,915 |
|
Advertising and
marketing |
|
9,414 |
|
|
11,120 |
|
|
11,782 |
|
|
8,824 |
|
|
7,382 |
|
Professional fees |
|
9,259 |
|
|
9,914 |
|
|
6,484 |
|
|
6,649 |
|
|
8,879 |
|
Amortization of other
intangible assets |
|
1,407 |
|
|
1,163 |
|
|
997 |
|
|
1,004 |
|
|
1,028 |
|
FDIC insurance |
|
4,044 |
|
|
4,205 |
|
|
4,598 |
|
|
4,362 |
|
|
4,324 |
|
OREO expense, net |
|
1,618 |
|
|
596 |
|
|
980 |
|
|
2,926 |
|
|
599 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
779 |
|
|
1,059 |
|
|
1,174 |
|
|
1,252 |
|
|
1,057 |
|
Postage |
|
2,047 |
|
|
2,205 |
|
|
2,567 |
|
|
1,866 |
|
|
1,427 |
|
Miscellaneous |
|
16,242 |
|
|
17,584 |
|
|
16,630 |
|
|
16,165 |
|
|
15,291 |
|
Total
other expense |
|
19,068 |
|
|
20,848 |
|
|
20,371 |
|
|
19,283 |
|
|
17,775 |
|
Total Non-Interest Expense |
|
$ |
211,333 |
|
|
$ |
213,637 |
|
|
$ |
206,769 |
|
|
$ |
194,349 |
|
|
$ |
196,580 |
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION
Allowance for Credit Losses, excluding covered loans - 5
Quarter Trends
|
|
Three Months Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(Dollars in
thousands) |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
|
2017 |
Allowance for
loan losses at beginning of period |
|
$ |
149,756 |
|
|
$ |
143,402 |
|
|
$ |
139,503 |
|
|
$ |
137,905 |
|
|
$ |
133,119 |
|
Provision for
credit losses |
|
10,401 |
|
|
11,042 |
|
|
5,043 |
|
|
8,346 |
|
|
7,772 |
|
Other
adjustments (1) |
|
(79 |
) |
|
(18 |
) |
|
(44 |
) |
|
(40 |
) |
|
698 |
|
Reclassification (to) from allowance for unfunded
lending-related commitments |
|
(150 |
) |
|
(2 |
) |
|
— |
|
|
26 |
|
|
7 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
6,416 |
|
|
3,219 |
|
|
2,210 |
|
|
2,687 |
|
|
1,340 |
|
Commercial real estate |
|
219 |
|
|
208 |
|
|
155 |
|
|
813 |
|
|
1,001 |
|
Home
equity |
|
715 |
|
|
561 |
|
|
612 |
|
|
357 |
|
|
728 |
|
Residential real estate |
|
267 |
|
|
337 |
|
|
180 |
|
|
571 |
|
|
542 |
|
Premium
finance receivables - commercial |
|
1,741 |
|
|
2,512 |
|
|
3,254 |
|
|
4,721 |
|
|
2,314 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
148 |
|
|
144 |
|
|
459 |
|
|
129 |
|
|
207 |
|
Total
charge-offs |
|
9,506 |
|
|
6,981 |
|
|
6,870 |
|
|
9,278 |
|
|
6,132 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
225 |
|
|
304 |
|
|
666 |
|
|
262 |
|
|
235 |
|
Commercial real estate |
|
1,364 |
|
|
193 |
|
|
2,387 |
|
|
1,687 |
|
|
1,037 |
|
Home
equity |
|
105 |
|
|
142 |
|
|
171 |
|
|
123 |
|
|
359 |
|
Residential real estate |
|
47 |
|
|
466 |
|
|
1,522 |
|
|
40 |
|
|
165 |
|
Premium
finance receivables - commercial |
|
567 |
|
|
1,142 |
|
|
975 |
|
|
385 |
|
|
613 |
|
Premium
finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
|
40 |
|
|
66 |
|
|
49 |
|
|
47 |
|
|
32 |
|
Total
recoveries |
|
2,348 |
|
|
2,313 |
|
|
5,770 |
|
|
2,544 |
|
|
2,441 |
|
Net
charge-offs |
|
(7,158 |
) |
|
(4,668 |
) |
|
(1,100 |
) |
|
(6,734 |
) |
|
(3,691 |
) |
Allowance for
loan losses at period end |
|
$ |
152,770 |
|
|
$ |
149,756 |
|
|
$ |
143,402 |
|
|
$ |
139,503 |
|
|
$ |
137,905 |
|
Allowance for
unfunded lending-related commitments at period end |
|
1,394 |
|
|
1,245 |
|
|
1,243 |
|
|
1,243 |
|
|
1,269 |
|
Allowance for
credit losses at period end |
|
$ |
154,164 |
|
|
$ |
151,001 |
|
|
$ |
144,645 |
|
|
$ |
140,746 |
|
|
$ |
139,174 |
|
Annualized net
charge-offs (recoveries) by category as a percentage of its own
respective category’s average: |
|
|
|
|
|
|
|
|
|
|
Commercial |
|
0.33 |
% |
|
0.16 |
% |
|
0.09 |
% |
|
0.14 |
% |
|
0.07 |
% |
Commercial real estate |
|
(0.07 |
) |
|
0.00 |
|
|
(0.14 |
) |
|
(0.05 |
) |
|
0.00 |
|
Home
equity |
|
0.43 |
|
|
0.28 |
|
|
0.29 |
|
|
0.15 |
|
|
0.22 |
|
Residential real estate |
|
0.10 |
|
|
(0.06 |
) |
|
(0.64 |
) |
|
0.26 |
|
|
0.18 |
|
Premium
finance receivables - commercial |
|
0.16 |
|
|
0.19 |
|
|
0.34 |
|
|
0.68 |
|
|
0.26 |
|
Premium
finance receivables - life insurance |
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
Consumer
and other |
|
0.30 |
|
|
0.23 |
|
|
1.21 |
|
|
0.26 |
|
|
0.52 |
|
Total
loans, net of unearned income, excluding covered loans |
|
0.12 |
% |
|
0.08 |
% |
|
0.02 |
% |
|
0.13 |
% |
|
0.07 |
% |
Net charge-offs
as a percentage of the provision for credit losses |
|
68.82 |
% |
|
42.27 |
% |
|
21.81 |
% |
|
80.69 |
% |
|
47.49 |
% |
Loans at
period-end |
|
$ |
23,820,691 |
|
|
$ |
23,123,951 |
|
|
$ |
22,610,560 |
|
|
$ |
22,062,134 |
|
|
$ |
21,640,797 |
|
Allowance for
loan losses as a percentage of loans at period end |
|
0.64 |
% |
|
0.65 |
% |
|
0.63 |
% |
|
0.63 |
% |
|
0.64 |
% |
Allowance for
credit losses as a percentage of loans at period end |
|
0.65 |
% |
|
0.65 |
% |
|
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
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31,(3) |
(Dollars in
thousands) |
2018 |
|
2018 |
|
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 |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,278 |
|
Premium
finance receivables - commercial |
7,799 |
|
|
7,028 |
|
|
5,159 |
|
|
8,547 |
|
|
9,242 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
109 |
|
|
233 |
|
|
224 |
|
|
207 |
|
|
40 |
|
Total
loans past due greater than 90 days and still accruing |
7,908 |
|
|
12,383 |
|
|
5,383 |
|
|
8,754 |
|
|
12,560 |
|
Non-accrual
loans(2): |
|
|
|
|
|
|
|
|
|
Commercial |
50,984 |
|
|
58,587 |
|
|
18,388 |
|
|
14,007 |
|
|
15,696 |
|
Commercial real estate |
19,129 |
|
|
17,515 |
|
|
19,195 |
|
|
21,825 |
|
|
22,048 |
|
Home
equity |
7,147 |
|
|
8,523 |
|
|
9,096 |
|
|
9,828 |
|
|
8,978 |
|
Residential real estate |
16,383 |
|
|
16,062 |
|
|
15,825 |
|
|
17,214 |
|
|
17,977 |
|
Premium
finance receivables - commercial |
11,335 |
|
|
13,802 |
|
|
14,832 |
|
|
17,342 |
|
|
12,163 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
348 |
|
|
355 |
|
|
563 |
|
|
720 |
|
|
740 |
|
Total
non-accrual loans |
105,326 |
|
|
114,844 |
|
|
77,899 |
|
|
80,936 |
|
|
77,602 |
|
Total
non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
50,984 |
|
|
63,709 |
|
|
18,388 |
|
|
14,007 |
|
|
15,696 |
|
Commercial real estate |
19,129 |
|
|
17,515 |
|
|
19,195 |
|
|
21,825 |
|
|
22,048 |
|
Home
equity |
7,147 |
|
|
8,523 |
|
|
9,096 |
|
|
9,828 |
|
|
8,978 |
|
Residential real estate |
16,383 |
|
|
16,062 |
|
|
15,825 |
|
|
17,214 |
|
|
21,255 |
|
Premium
finance receivables - commercial |
19,134 |
|
|
20,830 |
|
|
19,991 |
|
|
25,889 |
|
|
21,405 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
457 |
|
|
588 |
|
|
787 |
|
|
927 |
|
|
780 |
|
Total
non-performing loans |
$ |
113,234 |
|
|
$ |
127,227 |
|
|
$ |
83,282 |
|
|
$ |
89,690 |
|
|
$ |
90,162 |
|
Other
real estate owned |
11,968 |
|
|
14,924 |
|
|
18,925 |
|
|
18,481 |
|
|
20,244 |
|
Other
real estate owned - from acquisitions |
12,852 |
|
|
13,379 |
|
|
16,406 |
|
|
18,117 |
|
|
20,402 |
|
Other
repossessed assets |
280 |
|
|
294 |
|
|
305 |
|
|
113 |
|
|
153 |
|
Total
non-performing assets |
$ |
138,334 |
|
|
$ |
155,824 |
|
|
$ |
118,918 |
|
|
$ |
126,401 |
|
|
$ |
130,961 |
|
TDRs
performing under the contractual terms of the loan agreement |
$ |
33,281 |
|
|
$ |
31,487 |
|
|
$ |
57,249 |
|
|
$ |
39,562 |
|
|
$ |
39,683 |
|
Total
non-performing loans by category as a percent of its own respective
category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
0.65 |
% |
|
0.85 |
% |
|
0.25 |
% |
|
0.20 |
% |
|
0.23 |
% |
Commercial real estate |
0.28 |
|
|
0.26 |
|
|
0.29 |
|
|
0.33 |
|
|
0.34 |
|
Home
equity |
1.29 |
|
|
1.47 |
|
|
1.53 |
|
|
1.57 |
|
|
1.35 |
|
Residential real estate |
1.63 |
|
|
1.74 |
|
|
1.77 |
|
|
1.98 |
|
|
2.55 |
|
Premium
finance receivables - commercial |
0.67 |
|
|
0.72 |
|
|
0.71 |
|
|
1.00 |
|
|
0.81 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer
and other |
0.38 |
|
|
0.51 |
|
|
0.65 |
|
|
0.87 |
|
|
0.72 |
|
Total
loans, net of unearned income |
0.48 |
% |
|
0.55 |
% |
|
0.37 |
% |
|
0.41 |
% |
|
0.42 |
% |
Total non-performing assets as a percentage of total
assets |
0.44 |
% |
|
0.52 |
% |
|
0.40 |
% |
|
0.44 |
% |
|
0.47 |
% |
Allowance for loan losses as a percentage of total
non-performing loans |
134.92 |
% |
|
117.71 |
% |
|
172.19 |
% |
|
155.54 |
% |
|
152.95 |
% |
(1) Loans past due greater than 90 days and
still accruing interest included TDRs totaling $5.1
million as of September 30, 2018. As of December 31,
2018, June 30, 2018, March 31, 2018 and December 31,
2017, no TDRs were past due greater than 90 days and
still accruing interest.
(2) Non-accrual loans
included TDRs totaling $32.8 million, $34.7 million, $8.1 million,
$8.1 million and $10.1 million as of December 31, 2018,
September 30, 2018, June 30, 2018, March 31, 2018 and December
31, 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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