ROSEMONT, Ill., April 15, 2019 (GLOBE NEWSWIRE)
-- Wintrust Financial Corporation (“Wintrust” or “the Company”)
(Nasdaq: WTFC) announced net income of $89.1 million or $1.52 per
diluted common share for the first quarter of 2019, an increase in
diluted earnings per share of 13% compared to the prior quarter and
9% compared to the first quarter of 2018.
Highlights of the First Quarter of 2019:
- Net interest margin increased by nine basis points from the
prior quarter as the yield on earning assets increased by 16 basis
points partially offset by a seven basis point increase on the rate
paid on interest bearing liabilities.
- Total loans increased by $394 million from the prior
quarter.
- Total deposits increased by $710 million from the prior
quarter.
- Non-performing assets to total assets declined by one basis
point and now comprise 0.43% of total assets.
- Recorded nine basis points of annualized net charge-offs down
from 12 basis points in the prior quarter.
- Market and interest rate volatility resulted in the following
items impacting first quarter 2019 pre-tax earnings:
° An $8.7 million negative fair value adjustment recognized
on mortgage servicing rights related to changes in valuation
assumptions.
° Recognized unrealized gains on equity securities of $1.4
million.
° Recognized a $464,000 foreign currency remeasurement gain,
primarily related to changes in the Canadian currency.
- Incurred a $1.0 million non-tax-deductible settlement
recorded within miscellaneous non-interest expense.
- Mortgage banking revenue declined by $6.0 million primarily due
to lower production revenue and mortgage servicing rights
capitalization as mortgage originations for sale totaled $678.5
million in the first quarter of 2019 as compared to $927.8 million
in the fourth quarter of 2018.
- Opened branches in Naples, Florida and the Fulton Market
neighborhood of Chicago, as well as completed the acquisition of a
Milwaukee branch from PyraMax Bank, FSB.
- Announced an agreement to buy Rush-Oak Corporation, the parent
company of Oak Bank.
Edward J. Wehmer, President and Chief Executive
Officer, commented, "Wintrust reported net income of $89.1 million
for the first quarter of 2019, up from $79.7 million in the fourth
quarter of 2018. The Company experienced strong balance sheet
growth as total assets were $1.1 billion higher than the prior
quarter end and $3.9 billion higher than the first quarter of
2018. The first quarter was characterized by net interest
margin expansion, loan and deposit growth, stable credit quality,
market volatility impacting the mortgage division and cost
control."
Mr. Wehmer continued, "Net interest margin for
the Company increased considerably as earning assets
benefited from the increase in short term interest rates in
late 2018. Additionally, the Company managed deposits costs
which continued to moderate as the rate paid on interest bearing
deposits increased by nine basis points from the prior quarter or a
calculated beta of 36% on the December 2018 rate hike. While this
quarter demonstrates the benefit of Wintrust having maintained a
rate sensitive position, the Company has taken action in recent
quarters to reduce the asset sensitivity of its balance sheet given
the recent increase in rates. Given the shape of the interest
rate curve and projected interest rate environment, we expect some
pressure on net interest margin in the upcoming quarter.
Growing low cost deposits in our market area remains a significant
focus of the Company which we believe will be the key in mitigating
net interest margin compression."
Mr. Wehmer added, "We experienced strong loan
growth in our commercial and commercial premium finance receivables
portfolios during the first quarter, increasing our total loans
outstanding by $394 million. Our loan pipelines remain
consistently strong, and reflect opportunities to continue to grow
loans across most of our portfolio segments. Deposits grew by
$710 million in the first quarter, lowering our loans to deposits
ratio to 90.3%. We expect that we will be able to grow our
retail and commercial deposit base while further supplementing
deposit growth with deposits generated from the 1031 exchanges
facilitated by our Chicago Deferred Exchange Company
subsidiary."
Commenting on credit quality, Mr. Wehmer noted,
"During the first quarter of 2019, the Company continued its
practice of addressing and resolving non-performing credits in a
timely fashion. Total non-performing assets increased
slightly by $1.0 million during the first quarter, but declined to
0.43% of total assets. Non-performing loans increased by $4.4
million while other real-estate owned declined by $3.3 million
during the quarter. Additionally, near-term 60 to 89 day
delinquent loans declined to $19.2 million or only 0.1% of total
loans in the first quarter of 2019. The allowance for loan
losses as a percentage of non-performing loans remained flat to the
prior quarter at 135%. As a percentage of average total
loans, annualized net charge-offs for the first quarter were nine
basis points down from 12 basis points in the prior quarter.
We believe that the Company’s reserves remain appropriate and we
remain diligent in our review of credit."
Mr. Wehmer further commented, “Our mortgage
banking business was impacted by seasonal demand in the first
quarter as loan volumes originated for sale decreased to $678.5
million, down from $927.8 million in the fourth quarter of
2018. The decline in origination volume resulted in lower
production revenue and a decrease in mortgage servicing rights
capitalization revenue. Declining long-term interest rates led to
an increase in refinance activity, however home purchase activity
continues to make up the majority of our originations accounting
for 67% of loan volumes originated for sale in the first quarter.
The decrease in long-term mortgage rates resulted in a negative
fair value adjustment on our mortgage servicing rights portfolio of
$8.7 million related to changes in valuation assumptions as
compared to a $7.6 million negative fair value adjustment in the
fourth quarter of 2018. These valuation adjustments
negatively impacted the net overhead ratio by 11 basis points in
the first quarter of 2019 and 10 basis points in the fourth quarter
of 2018. We continue to focus on efficiencies in our delivery
channels and our operating costs in our mortgage banking area. We
believe that the lower mortgage rate outlook bodes well for
mortgage origination demand in future quarters."
Turning to the future, Mr. Wehmer stated, “We
believe 2019 got off to a strong start as we grew assets
significantly while expanding net interest margin, maintaining
strong credit quality and managing operating costs. We expect
continued organic growth in all areas of our businesses. We
will remain diligent in monitoring changes to the interest rate
environment and managing the balance sheet to maximize net interest
margin and net income. 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, like the announced acquisition
of Oak Bank, 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 first quarter of 2019.
http://ml.globenewswire.com/Resource/Download/00fe74d7-f93f-4e19-ab97-d67e97fd6911
Wintrust’s key operating measures and growth
rates for the first quarter of 2019, as compared to the fourth
quarter of 2018 (sequential quarter) and first quarter of 2018
(linked quarter), are shown in the table below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% or(4)
basis point (bp)
change from
4th Quarter
2018 |
|
% or
basis point (bp)
change from
1st Quarter
2018 |
|
Three Months Ended |
|
|
(Dollars in
thousands) |
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
|
|
Net income |
$ |
89,146 |
|
|
$ |
79,657 |
|
|
$ |
81,981 |
|
|
12 |
|
% |
|
9 |
|
% |
Net income per common
share – diluted |
$ |
1.52 |
|
|
$ |
1.35 |
|
|
$ |
1.40 |
|
|
13 |
|
% |
|
9 |
|
% |
Net revenue
(1) |
$ |
343,643 |
|
|
$ |
329,396 |
|
|
$ |
310,761 |
|
|
4 |
|
% |
|
11 |
|
% |
Net interest income |
261,986 |
|
|
254,088 |
|
|
225,082 |
|
|
3 |
|
% |
|
16 |
|
% |
Net interest
margin |
3.70 |
% |
|
3.61 |
% |
|
3.54 |
% |
|
9 |
|
bp |
|
16 |
|
bp |
Net interest margin -
fully taxable equivalent (non-GAAP) (2) |
3.72 |
% |
|
3.63 |
% |
|
3.56 |
% |
|
9 |
|
bp |
|
16 |
|
bp |
Net overhead ratio
(3) |
1.72 |
% |
|
1.79 |
% |
|
1.58 |
% |
|
(7) |
|
bp |
|
14 |
|
bp |
Return on average
assets |
1.16 |
% |
|
1.05 |
% |
|
1.20 |
% |
|
11 |
|
bp |
|
(4) |
|
bp |
Return on average common
equity |
11.09 |
% |
|
10.01 |
% |
|
11.29 |
% |
|
108 |
|
bp |
|
(20) |
|
bp |
Return on average tangible common equity (non-GAAP)
(2) |
14.14 |
% |
|
12.48 |
% |
|
14.02 |
% |
|
166 |
|
bp |
|
12 |
|
bp |
At end of
period |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
28,456,772 |
|
|
14 |
|
% |
|
14 |
|
% |
Total loans
(5) |
24,214,629 |
|
|
23,820,691 |
|
|
22,062,134 |
|
|
7 |
|
% |
|
10 |
|
% |
Total deposits |
26,804,742 |
|
|
26,094,678 |
|
|
23,279,327 |
|
|
11 |
|
% |
|
15 |
|
% |
Total shareholders’ equity |
3,371,972 |
|
|
3,267,570 |
|
|
3,031,250 |
|
|
13 |
|
% |
|
11 |
|
% |
(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 |
(Dollars in
thousands, except per share data) |
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
Selected Financial
Condition Data (at end of period): |
|
|
|
|
|
Total assets |
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
28,456,772 |
|
Total loans
(1) |
24,214,629 |
|
|
23,820,691 |
|
|
22,062,134 |
|
Total deposits |
26,804,742 |
|
|
26,094,678 |
|
|
23,279,327 |
|
Junior subordinated
debentures |
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Total shareholders’
equity |
3,371,972 |
|
|
3,267,570 |
|
|
3,031,250 |
|
Selected
Statements of Income Data: |
|
|
|
|
|
Net interest income |
$ |
261,986 |
|
|
$ |
254,088 |
|
|
$ |
225,082 |
|
Net revenue
(2) |
343,643 |
|
|
329,396 |
|
|
310,761 |
|
Net income |
89,146 |
|
|
79,657 |
|
|
81,981 |
|
Net income per common
share – Basic |
$ |
1.54 |
|
|
$ |
1.38 |
|
|
$ |
1.42 |
|
Net income per common
share – Diluted |
$ |
1.52 |
|
|
$ |
1.35 |
|
|
$ |
1.40 |
|
Selected Financial
Ratios and Other Data: |
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
Net interest
margin |
3.70 |
% |
|
3.61 |
% |
|
3.54 |
% |
Net interest margin -
fully taxable equivalent (non-GAAP) (3) |
3.72 |
% |
|
3.63 |
% |
|
3.56 |
% |
Non-interest income to
average assets |
1.06 |
% |
|
0.99 |
% |
|
1.25 |
% |
Non-interest expense to
average assets |
2.79 |
% |
|
2.78 |
% |
|
2.83 |
% |
Net overhead ratio
(4) |
1.72 |
% |
|
1.79 |
% |
|
1.58 |
% |
Return on average
assets |
1.16 |
% |
|
1.05 |
% |
|
1.20 |
% |
Return on average common
equity |
11.09 |
% |
|
10.01 |
% |
|
11.29 |
% |
Return on average tangible
common equity (non-GAAP) (3) |
14.14 |
% |
|
12.48 |
% |
|
14.02 |
% |
Average total assets |
$ |
31,216,171 |
|
|
$ |
30,179,887 |
|
|
$ |
27,809,597 |
|
Average total
shareholders’ equity |
3,309,078 |
|
|
3,200,654 |
|
|
2,995,592 |
|
Average loans to average
deposits ratio |
92.7 |
% |
|
92.4 |
% |
|
95.2 |
% |
Period-end loans to
deposits ratio |
90.3 |
% |
|
91.3 |
% |
|
94.8 |
% |
Common Share Data at
end of period: |
|
|
|
|
|
Market price per common
share |
$ |
67.33 |
|
|
$ |
66.49 |
|
|
$ |
86.05 |
|
Book value per common
share |
$ |
57.33 |
|
|
$ |
55.71 |
|
|
$ |
51.66 |
|
Tangible book value per
common share (non-GAAP) (3) |
$ |
46.38 |
|
|
$ |
44.67 |
|
|
$ |
42.17 |
|
Common shares
outstanding |
56,638,968 |
|
|
56,407,558 |
|
|
56,256,498 |
|
Other Data at end
of period: |
|
|
|
|
|
Leverage Ratio
(5) |
9.1 |
% |
|
9.1 |
% |
|
9.3 |
% |
Tier 1 capital to
risk-weighted assets (5) |
9.7 |
% |
|
9.7 |
% |
|
10.0 |
% |
Common equity Tier 1
capital to risk-weighted assets (5) |
9.3 |
% |
|
9.3 |
% |
|
9.5 |
% |
Total capital to
risk-weighted assets (5) |
11.6 |
% |
|
11.6 |
% |
|
12.0 |
% |
Allowance for credit
losses (6) |
$ |
159,622 |
|
|
$ |
154,164 |
|
|
$ |
140,746 |
|
Non-performing loans |
117,586 |
|
|
113,234 |
|
|
89,690 |
|
Allowance for credit
losses to total loans (6) |
0.66 |
% |
|
0.65 |
% |
|
0.64 |
% |
Non-performing loans to
total loans |
0.49 |
% |
|
0.48 |
% |
|
0.41 |
% |
Number of: |
|
|
|
|
|
Bank
subsidiaries |
15 |
|
|
15 |
|
|
15 |
|
Banking offices |
170 |
|
|
167 |
|
|
157 |
|
(1)
Excludes mortgage loans held-for-sale. |
(2) Net revenue includes net interest income and
non-interest income. |
(3) See “Supplemental Financial Measures/Ratios” for
additional information on this performance measure/ratio. |
(4)
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. |
(5) Capital ratios for current quarter-end are
estimated. |
(6) The allowance for credit losses includes both the
allowance for loan losses and the allowance for unfunded
lending-related commitments. |
|
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CONDITION |
|
|
(Unaudited) |
|
|
|
(Unaudited) |
(In
thousands) |
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
Assets |
|
|
|
|
|
Cash and due from
banks |
$ |
270,765 |
|
|
$ |
392,142 |
|
|
$ |
231,407 |
|
Federal funds sold and
securities purchased under resale agreements |
58 |
|
|
58 |
|
|
57 |
|
Interest bearing deposits
with banks |
1,609,852 |
|
|
1,099,594 |
|
|
980,380 |
|
Available-for-sale
securities, at fair value |
2,185,782 |
|
|
2,126,081 |
|
|
1,895,688 |
|
Held-to-maturity
securities, at amortized cost |
1,051,542 |
|
|
1,067,439 |
|
|
892,937 |
|
Trading account
securities |
559 |
|
|
1,692 |
|
|
1,682 |
|
Equity securities with
readily determinable fair value |
47,653 |
|
|
34,717 |
|
|
37,832 |
|
Federal Home Loan Bank and
Federal Reserve Bank stock |
89,013 |
|
|
91,354 |
|
|
104,956 |
|
Brokerage customer
receivables |
14,219 |
|
|
12,609 |
|
|
24,531 |
|
Mortgage loans
held-for-sale |
248,557 |
|
|
264,070 |
|
|
411,505 |
|
Loans, net of unearned
income |
24,214,629 |
|
|
23,820,691 |
|
|
22,062,134 |
|
Allowance for loan
losses |
(158,212 |
) |
|
(152,770 |
) |
|
(139,503 |
) |
Net
loans |
24,056,417 |
|
|
23,667,921 |
|
|
21,922,631 |
|
Premises and equipment,
net |
676,037 |
|
|
671,169 |
|
|
626,687 |
|
Lease investments,
net |
224,240 |
|
|
233,208 |
|
|
190,775 |
|
Accrued interest
receivable and other assets |
888,492 |
|
|
696,707 |
|
|
601,794 |
|
Trade date securities
receivable |
375,211 |
|
|
263,523 |
|
|
— |
|
Goodwill |
573,658 |
|
|
573,141 |
|
|
511,497 |
|
Other intangible
assets |
46,566 |
|
|
49,424 |
|
|
22,413 |
|
Total assets |
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
28,456,772 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
Deposits: |
|
|
|
|
|
Non-interest
bearing |
$ |
6,353,456 |
|
|
$ |
6,569,880 |
|
|
$ |
6,612,319 |
|
Interest
bearing |
20,451,286 |
|
|
19,524,798 |
|
|
16,667,008 |
|
Total
deposits |
26,804,742 |
|
|
26,094,678 |
|
|
23,279,327 |
|
Federal Home Loan Bank
advances |
576,353 |
|
|
426,326 |
|
|
915,000 |
|
Other borrowings |
372,194 |
|
|
393,855 |
|
|
247,092 |
|
Subordinated notes |
139,235 |
|
|
139,210 |
|
|
139,111 |
|
Junior subordinated
debentures |
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Accrued interest payable
and other liabilities |
840,559 |
|
|
669,644 |
|
|
591,426 |
|
Total
liabilities |
28,986,649 |
|
|
27,977,279 |
|
|
25,425,522 |
|
Shareholders’ Equity: |
|
|
|
|
|
Preferred
stock |
125,000 |
|
|
125,000 |
|
|
125,000 |
|
Common
stock |
56,765 |
|
|
56,518 |
|
|
56,364 |
|
Surplus |
1,565,185 |
|
|
1,557,984 |
|
|
1,540,673 |
|
Treasury
stock |
(6,650 |
) |
|
(5,634 |
) |
|
(5,355 |
) |
Retained
earnings |
1,682,016 |
|
|
1,610,574 |
|
|
1,387,663 |
|
Accumulated
other comprehensive loss |
(50,344 |
) |
|
(76,872 |
) |
|
(73,095 |
) |
Total
shareholders’ equity |
3,371,972 |
|
|
3,267,570 |
|
|
3,031,250 |
|
Total liabilities and shareholders’ equity |
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
28,456,772 |
|
|
|
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED) |
|
|
Three Months Ended |
(In thousands,
except per share data) |
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
Interest
income |
|
|
|
|
|
Interest and
fees on loans |
$ |
296,987 |
|
|
$ |
283,311 |
|
|
$ |
234,994 |
|
Mortgage
loans held-for-sale |
2,209 |
|
|
3,409 |
|
|
2,818 |
|
Interest
bearing deposits with banks |
5,300 |
|
|
5,628 |
|
|
2,796 |
|
Federal
funds sold and securities purchased under resale agreements |
— |
|
|
— |
|
|
— |
|
Investment
securities |
27,956 |
|
|
26,656 |
|
|
19,128 |
|
Trading
account securities |
8 |
|
|
14 |
|
|
14 |
|
Federal Home
Loan Bank and Federal Reserve Bank stock |
1,355 |
|
|
1,343 |
|
|
1,298 |
|
Brokerage
customer receivables |
155 |
|
|
235 |
|
|
157 |
|
Total
interest income |
333,970 |
|
|
320,596 |
|
|
261,205 |
|
Interest
expense |
|
|
|
|
|
Interest on
deposits |
60,976 |
|
|
55,975 |
|
|
26,549 |
|
Interest on
Federal Home Loan Bank advances |
2,450 |
|
|
2,563 |
|
|
3,639 |
|
Interest on
other borrowings |
3,633 |
|
|
3,199 |
|
|
1,699 |
|
Interest on
subordinated notes |
1,775 |
|
|
1,788 |
|
|
1,773 |
|
Interest on
junior subordinated debentures |
3,150 |
|
|
2,983 |
|
|
2,463 |
|
Total
interest expense |
71,984 |
|
|
66,508 |
|
|
36,123 |
|
Net interest
income |
261,986 |
|
|
254,088 |
|
|
225,082 |
|
Provision for credit
losses |
10,624 |
|
|
10,401 |
|
|
8,346 |
|
Net interest income after
provision for credit losses |
251,362 |
|
|
243,687 |
|
|
216,736 |
|
Non-interest
income |
|
|
|
|
|
Wealth
management |
23,977 |
|
|
22,726 |
|
|
22,986 |
|
Mortgage
banking |
18,158 |
|
|
24,182 |
|
|
30,960 |
|
Service
charges on deposit accounts |
8,848 |
|
|
9,065 |
|
|
8,857 |
|
Gains
(losses) on investment securities, net |
1,364 |
|
|
(2,649 |
) |
|
(351 |
) |
Fees from
covered call options |
1,784 |
|
|
626 |
|
|
1,597 |
|
Trading
(losses) gains, net |
(171 |
) |
|
(155 |
) |
|
103 |
|
Operating
lease income, net |
10,796 |
|
|
10,882 |
|
|
9,691 |
|
Other |
16,901 |
|
|
10,631 |
|
|
11,836 |
|
Total
non-interest income |
81,657 |
|
|
75,308 |
|
|
85,679 |
|
Non-interest
expense |
|
|
|
|
|
Salaries and
employee benefits |
125,723 |
|
|
122,111 |
|
|
112,436 |
|
Equipment |
11,770 |
|
|
11,523 |
|
|
10,072 |
|
Operating
lease equipment depreciation |
8,319 |
|
|
8,462 |
|
|
6,533 |
|
Occupancy,
net |
16,245 |
|
|
15,980 |
|
|
13,767 |
|
Data
processing |
7,525 |
|
|
8,447 |
|
|
8,493 |
|
Advertising
and marketing |
9,858 |
|
|
9,414 |
|
|
8,824 |
|
Professional
fees |
5,556 |
|
|
9,259 |
|
|
6,649 |
|
Amortization
of other intangible assets |
2,942 |
|
|
1,407 |
|
|
1,004 |
|
FDIC
insurance |
3,576 |
|
|
4,044 |
|
|
4,362 |
|
OREO
expense, net |
632 |
|
|
1,618 |
|
|
2,926 |
|
Other |
22,228 |
|
|
19,068 |
|
|
19,283 |
|
Total
non-interest expense |
214,374 |
|
|
211,333 |
|
|
194,349 |
|
Income before taxes |
118,645 |
|
|
107,662 |
|
|
108,066 |
|
Income tax expense |
29,499 |
|
|
28,005 |
|
|
26,085 |
|
Net
income |
$ |
89,146 |
|
|
$ |
79,657 |
|
|
$ |
81,981 |
|
Preferred stock
dividends |
2,050 |
|
|
2,050 |
|
|
2,050 |
|
Net income
applicable to common shares |
$ |
87,096 |
|
|
$ |
77,607 |
|
|
$ |
79,931 |
|
Net income per
common share - Basic |
$ |
1.54 |
|
|
$ |
1.38 |
|
|
$ |
1.42 |
|
Net income per
common share - Diluted |
$ |
1.52 |
|
|
$ |
1.35 |
|
|
$ |
1.40 |
|
Cash dividends
declared per common share |
$ |
0.25 |
|
|
$ |
0.19 |
|
|
$ |
0.19 |
|
Weighted average common
shares outstanding |
56,529 |
|
|
56,395 |
|
|
56,137 |
|
Dilutive potential common
shares |
699 |
|
|
892 |
|
|
888 |
|
Average common shares and dilutive common shares |
57,228 |
|
|
57,287 |
|
|
57,025 |
|
|
|
EARNINGS PER SHARE
The following table shows the computation of
basic and diluted earnings per share for the periods indicated:
|
|
|
Three Months Ended |
(In thousands,
except per share data) |
|
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
Net income |
|
$ |
89,146 |
|
|
$ |
79,657 |
|
|
$ |
81,981 |
|
Less: Preferred stock
dividends |
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
Net income applicable to
common shares |
(A) |
87,096 |
|
|
77,607 |
|
|
79,931 |
|
Weighted average common
shares outstanding |
(B) |
56,529 |
|
|
56,395 |
|
|
56,137 |
|
Effect of dilutive
potential common shares: |
|
|
|
|
|
|
Common stock
equivalents |
|
699 |
|
|
892 |
|
|
888 |
|
Weighted average common
shares and effect of dilutive potential common shares |
(C) |
57,228 |
|
|
57,287 |
|
|
57,025 |
|
Net income per common
share: |
|
|
|
|
|
|
Basic |
(A/B) |
$ |
1.54 |
|
|
$ |
1.38 |
|
|
$ |
1.42 |
|
Diluted |
(A/C) |
$ |
1.52 |
|
|
$ |
1.35 |
|
|
$ |
1.40 |
|
|
|
Potentially dilutive common shares can result
from stock options, restricted stock unit awards, stock warrants,
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.
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 book value per common 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 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 fully
taxable-equivalent basis is also used in the calculation of the
Company’s efficiency ratio. The efficiency ratio, which is
calculated by dividing non-interest expense by total
taxable-equivalent net revenue (less securities gains or losses),
measures how much it costs to produce one dollar of revenue.
Securities gains or losses are excluded from this calculation to
better match revenue from daily operations to operational expenses.
Management considers the tangible common equity ratio and tangible
book value per common share as useful measurements of the Company’s
equity. The Company references the return on average tangible
common equity as a measurement of profitability.
The following table presents a reconciliation of
certain non-GAAP performance measures and ratios used by the
Company to evaluate and measure the Company’s performance to the
most directly comparable GAAP financial measures for the last five
quarters.
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars and shares
in thousands) |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Calculation of Net
Interest Margin and Efficiency Ratio |
|
|
|
|
|
|
|
|
|
(A) Interest
Income (GAAP) |
$ |
333,970 |
|
|
$ |
320,596 |
|
|
$ |
304,962 |
|
|
$ |
284,047 |
|
|
$ |
261,205 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
- Loans |
1,034 |
|
|
980 |
|
|
941 |
|
|
812 |
|
|
670 |
|
- Liquidity
Management Assets |
565 |
|
|
586 |
|
|
575 |
|
|
566 |
|
|
531 |
|
- Other
Earning Assets |
2 |
|
|
4 |
|
|
3 |
|
|
1 |
|
|
3 |
|
(B) Interest
Income (non-GAAP) |
$ |
335,571 |
|
|
$ |
322,166 |
|
|
$ |
306,481 |
|
|
$ |
285,426 |
|
|
$ |
262,409 |
|
(C) Interest
Expense (GAAP) |
$ |
71,984 |
|
|
$ |
66,508 |
|
|
$ |
57,399 |
|
|
$ |
45,877 |
|
|
$ |
36,123 |
|
(D) Net Interest
Income (GAAP) (A minus C) |
$ |
261,986 |
|
|
$ |
254,088 |
|
|
$ |
247,563 |
|
|
$ |
238,170 |
|
|
$ |
225,082 |
|
(E) Net Interest
Income (non-GAAP) (B minus C) |
$ |
263,587 |
|
|
$ |
255,658 |
|
|
$ |
249,082 |
|
|
$ |
239,549 |
|
|
$ |
226,286 |
|
Net interest
margin (GAAP) |
3.70 |
% |
|
3.61 |
% |
|
3.59 |
% |
|
3.61 |
% |
|
3.54 |
% |
Net interest
margin (non-GAAP) |
3.72 |
% |
|
3.63 |
% |
|
3.61 |
% |
|
3.63 |
% |
|
3.56 |
% |
(F) Non-interest
income |
$ |
81,657 |
|
|
$ |
75,308 |
|
|
$ |
99,930 |
|
|
$ |
95,233 |
|
|
$ |
85,679 |
|
(G) Gains (losses) on
investment securities, net |
1,364 |
|
|
(2,649 |
) |
|
90 |
|
|
12 |
|
|
(351 |
) |
(H) Non-interest
expense |
214,374 |
|
|
211,333 |
|
|
213,637 |
|
|
206,769 |
|
|
194,349 |
|
Efficiency ratio
(H/(D+F-G)) |
62.63 |
% |
|
63.65 |
% |
|
61.50 |
% |
|
62.02 |
% |
|
62.47 |
% |
Efficiency ratio
(non-GAAP) (H/(E+F-G)) |
62.34 |
% |
|
63.35 |
% |
|
61.23 |
% |
|
61.76 |
% |
|
62.23 |
% |
|
|
|
|
|
|
|
|
|
|
Calculation of Tangible Common Equity
Ratio (at period end) |
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
3,371,972 |
|
|
$ |
3,267,570 |
|
|
$ |
3,179,822 |
|
|
$ |
3,106,871 |
|
|
$ |
3,031,250 |
|
Less: Non-convertible
preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
Less: Intangible
assets |
(620,224 |
) |
|
(622,565 |
) |
|
(564,938 |
) |
|
(531,371 |
) |
|
(533,910 |
) |
(I) Total
tangible common shareholders’ equity |
$ |
2,626,748 |
|
|
$ |
2,520,005 |
|
|
$ |
2,489,884 |
|
|
$ |
2,450,500 |
|
|
$ |
2,372,340 |
|
(J) Total assets |
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
Less: Intangible
assets |
(620,224 |
) |
|
(622,565 |
) |
|
(564,938 |
) |
|
(531,371 |
) |
|
(533,910 |
) |
(K) Total
tangible assets |
$ |
31,738,397 |
|
|
$ |
30,622,284 |
|
|
$ |
29,577,793 |
|
|
$ |
28,933,217 |
|
|
$ |
27,922,862 |
|
Common equity to
assets ratio (GAAP) (L/J) |
10.0 |
% |
|
10.1 |
% |
|
10.1 |
% |
|
10.1 |
% |
|
10.2 |
% |
Tangible common
equity ratio (non-GAAP) (I/K) |
8.3 |
% |
|
8.2 |
% |
|
8.4 |
% |
|
8.5 |
% |
|
8.5 |
% |
|
|
|
|
|
|
|
|
|
|
Calculation of
Tangible Book Value per Common Share |
|
|
|
|
|
|
|
|
|
Total shareholders’
equity |
$ |
3,371,972 |
|
|
$ |
3,267,570 |
|
|
$ |
3,179,822 |
|
|
$ |
3,106,871 |
|
|
$ |
3,031,250 |
|
Less: Preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
(L) Total
common equity |
$ |
3,246,972 |
|
|
$ |
3,142,570 |
|
|
$ |
3,054,822 |
|
|
$ |
2,981,871 |
|
|
$ |
2,906,250 |
|
(M) Actual common shares
outstanding |
56,639 |
|
|
56,408 |
|
|
56,377 |
|
|
56,329 |
|
|
56,256 |
|
Book value per
common share (L/M) |
$ |
57.33 |
|
|
$ |
55.71 |
|
|
$ |
54.19 |
|
|
$ |
52.94 |
|
|
$ |
51.66 |
|
Tangible book
value per common share (non-GAAP) (I/M) |
$ |
46.38 |
|
|
$ |
44.67 |
|
|
$ |
44.16 |
|
|
$ |
43.50 |
|
|
$ |
42.17 |
|
Calculation of Return on Average Tangible
Common Equity |
|
|
|
|
|
|
|
|
|
(N) Net income
applicable to common shares |
$ |
87,096 |
|
|
$ |
77,607 |
|
|
$ |
89,898 |
|
|
$ |
87,530 |
|
|
$ |
79,931 |
|
Add: Intangible asset
amortization |
2,942 |
|
|
1,407 |
|
|
1,163 |
|
|
997 |
|
|
1,004 |
|
Less: Tax effect of
intangible asset amortization |
(731 |
) |
|
(366 |
) |
|
(292 |
) |
|
(263 |
) |
|
(243 |
) |
After-tax
intangible asset amortization |
2,211 |
|
|
1,041 |
|
|
871 |
|
|
734 |
|
|
761 |
|
(O) Tangible
net income applicable to common shares (non-GAAP) |
$ |
89,307 |
|
|
$ |
78,648 |
|
|
$ |
90,769 |
|
|
$ |
88,264 |
|
|
$ |
80,692 |
|
Total average
shareholders' equity |
$ |
3,309,078 |
|
|
$ |
3,200,654 |
|
|
$ |
3,131,943 |
|
|
$ |
3,064,154 |
|
|
$ |
2,995,592 |
|
Less: Average preferred
stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
(P) Total
average common shareholders' equity |
$ |
3,184,078 |
|
|
$ |
3,075,654 |
|
|
$ |
3,006,943 |
|
|
$ |
2,939,154 |
|
|
$ |
2,870,592 |
|
Less:
Average intangible assets |
(622,240 |
) |
|
(574,757 |
) |
|
(547,552 |
) |
|
(533,496 |
) |
|
(536,676 |
) |
(Q) Total
average tangible common shareholders’ equity (non-GAAP) |
$ |
2,561,838 |
|
|
$ |
2,500,897 |
|
|
$ |
2,459,391 |
|
|
$ |
2,405,658 |
|
|
$ |
2,333,916 |
|
Return on average
common equity, annualized (N/P) |
11.09 |
% |
|
10.01 |
% |
|
11.86 |
% |
|
11.94 |
% |
|
11.29 |
% |
Return on average tangible common equity, annualized
(non-GAAP) (O/Q) |
14.14 |
% |
|
12.48 |
% |
|
14.64 |
% |
|
14.72 |
% |
|
14.02 |
% |
|
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 first quarter of 2019, revenue within this
unit was primarily driven by increased net interest income due to
increased earning assets and a higher net interest margin,
partially offset by the impact of having two fewer days in the
period. The net interest margin increased in the first quarter of
2019 compared to the fourth quarter of 2018 primarily as a result
of higher yields within the loan portfolio. Mortgage banking
revenue decreased by $6.0 million from $24.2 million for the fourth
quarter of 2018 to $18.2 million for the first quarter of 2019. The
lower revenue was primarily due to to lower origination volumes,
negative fair value adjustments recognized on mortgage servicing
rights related to changes in valuation assumptions and pay-offs,
partially offset by higher production margins. Mortgage loans
originated for sale during the current period decreased to $678.5
million from $927.8 million in the fourth quarter of 2018. Home
purchases represented 67% of loan volume originated for sale for
the first quarter of 2019. The Company's gross commercial and
commercial real estate loan pipelines remain strong. Before the
impact of scheduled payments and prepayments, at March 31,
2019, gross commercial and commercial real estate loan pipelines
totaled $1.3 billion, or $812.9 million when adjusted for the
probability of closing, compared to $1.1 billion, or $671.1 million
when adjusted for the probability of closing, at December 31,
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 first quarter of 2019, the
specialty finance unit experienced higher revenue as a result of
increased volumes and higher yields within its insurance premium
financing receivables portfolio. Originations within the insurance
premium financing receivables portfolio were $2.1 billion during
the first quarter of 2019 and average balances increased by $186.1
million. The increase in average balances along with higher yields
on these loans resulted in a $5.9 million increase in interest
income attributed to this portfolio. The Company's leasing business
showed steady growth during the first quarter of 2019, with its
portfolio of assets, including capital leases, loans and equipment
on operating leases, increasing $65.4 million to $1.3 billion at
the end of the first quarter of 2019. Revenues from the Company's
out-sourced administrative services business remained relatively
steady, totaling approximately $1.0 million in the first quarter of
2019 and $1.3 million in the fourth 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 increased by $1.3 million in
the first quarter of 2019 compared to the fourth quarter of 2018,
totaling $24.0 million in the current period. At March 31,
2019, the Company’s wealth management subsidiaries had
approximately $25.1 billion of assets under administration, which
includes $3.7 billion of assets owned by the Company and its
subsidiary banks, representing a $883.1 million increase from the
$24.2 billion of assets under administration at December 31,
2018. The increase in the first quarter of 2019 was primarily due
to the impact of market conditions on the value of assets under
administration. Tax-deferred like-kind exchange services provided
by CDEC, our Qualified Intermediary for taxpayers seeking to
structure tax-deferred like-kind exchanges under Internal Revenue
Code Section 1031, resulted in average deposit balances from these
transactions totaling $821.1 million during the first quarter of
2019.
LOANS
Loan Portfolio Mix and Growth Rates
|
|
|
|
|
|
|
|
% Growth |
(Dollars in
thousands) |
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
|
From (1) December 31,
2018 |
|
From
March 31,
2018 |
Balance: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
7,994,191 |
|
|
$ |
7,828,538 |
|
|
$ |
7,060,871 |
|
|
9 |
% |
|
13 |
% |
Commercial
real estate |
6,973,505 |
|
|
6,933,252 |
|
|
6,633,520 |
|
|
2 |
|
|
5 |
|
Home
equity |
528,448 |
|
|
552,343 |
|
|
626,547 |
|
|
(18 |
) |
|
(16 |
) |
Residential
real estate |
1,053,524 |
|
|
1,002,464 |
|
|
869,104 |
|
|
21 |
|
|
21 |
|
Premium
finance receivables - commercial |
2,988,788 |
|
|
2,841,659 |
|
|
2,576,150 |
|
|
21 |
|
|
16 |
|
Premium
finance receivables - life insurance |
4,555,369 |
|
|
4,541,794 |
|
|
4,189,961 |
|
|
1 |
|
|
9 |
|
Consumer and
other |
120,804 |
|
|
120,641 |
|
|
105,981 |
|
|
1 |
|
|
14 |
|
Total loans,
net of unearned income |
$ |
24,214,629 |
|
|
$ |
23,820,691 |
|
|
$ |
22,062,134 |
|
|
7 |
% |
|
10 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
Commercial |
33 |
% |
|
33 |
% |
|
32 |
% |
|
|
|
|
Commercial
real estate |
29 |
|
|
29 |
|
|
30 |
|
|
|
|
|
Home
equity |
2 |
|
|
2 |
|
|
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 |
|
|
— |
|
|
|
|
|
Total loans, net of unearned income |
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
(1) Annualized. |
Commercial and Commercial Real Estate Loan Portfolios
|
|
As of March 31, 2019 |
|
|
|
% 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 |
$ |
5,250,953 |
|
|
35.0 |
% |
|
$ |
38,858 |
|
|
$ |
— |
|
|
$ |
50,178 |
|
Franchise |
879,906 |
|
|
5.9 |
|
|
15,799 |
|
|
— |
|
|
12,055 |
|
Mortgage
warehouse lines of credit |
174,284 |
|
|
1.2 |
|
|
— |
|
|
— |
|
|
1,399 |
|
Asset-based
lending |
1,040,834 |
|
|
7.0 |
|
|
1,135 |
|
|
— |
|
|
8,868 |
|
Leases |
622,884 |
|
|
4.2 |
|
|
— |
|
|
— |
|
|
1,675 |
|
PCI -
commercial loans (1) |
25,330 |
|
|
0.1 |
|
|
— |
|
|
2,499 |
|
|
463 |
|
Total commercial |
$ |
7,994,191 |
|
|
53.4 |
% |
|
$ |
55,792 |
|
|
$ |
2,499 |
|
|
$ |
74,638 |
|
Commercial Real
Estate: |
|
|
|
|
|
|
|
|
|
Construction |
$ |
803,669 |
|
|
5.4 |
% |
|
$ |
1,030 |
|
|
$ |
— |
|
|
$ |
9,142 |
|
Land |
147,701 |
|
|
1.0 |
|
|
54 |
|
|
— |
|
|
4,194 |
|
Office |
926,375 |
|
|
6.2 |
|
|
4,482 |
|
|
— |
|
|
6,267 |
|
Industrial |
964,960 |
|
|
6.4 |
|
|
267 |
|
|
— |
|
|
6,534 |
|
Retail |
895,267 |
|
|
6.0 |
|
|
7,645 |
|
|
— |
|
|
6,065 |
|
Multi-family |
1,117,385 |
|
|
7.5 |
|
|
303 |
|
|
— |
|
|
10,875 |
|
Mixed use
and other |
2,007,487 |
|
|
13.4 |
|
|
2,152 |
|
|
— |
|
|
14,653 |
|
PCI -
commercial real estate (1) |
110,661 |
|
|
0.7 |
|
|
— |
|
|
4,265 |
|
|
120 |
|
Total commercial real estate |
$ |
6,973,505 |
|
|
46.6 |
% |
|
$ |
15,933 |
|
|
$ |
4,265 |
|
|
$ |
57,850 |
|
Total commercial and commercial real estate |
$ |
14,967,696 |
|
|
100.0 |
% |
|
$ |
71,725 |
|
|
$ |
6,764 |
|
|
$ |
132,488 |
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate - collateral location by state: |
|
|
|
|
|
|
|
|
|
Illinois |
$ |
5,331,784 |
|
|
76.5 |
% |
|
|
|
|
|
|
Wisconsin |
758,097 |
|
|
10.9 |
|
|
|
|
|
|
|
Total primary markets |
$ |
6,089,881 |
|
|
87.4 |
% |
|
|
|
|
|
|
Indiana |
175,350 |
|
|
2.5 |
|
|
|
|
|
|
|
Florida |
55,528 |
|
|
0.8 |
|
|
|
|
|
|
|
Arizona |
61,375 |
|
|
0.9 |
|
|
|
|
|
|
|
Michigan |
35,650 |
|
|
0.5 |
|
|
|
|
|
|
|
California |
67,545 |
|
|
1.0 |
|
|
|
|
|
|
|
Other |
488,176 |
|
|
6.9 |
|
|
|
|
|
|
|
Total |
$ |
6,973,505 |
|
|
100.0 |
% |
|
|
|
|
|
|
(1)
Purchased credit impaired ("PCI") loans represent loans acquired
with evidence of credit quality deterioration since origination, in
accordance with ASC 310-30. Loan agings are based upon
contractually required payments. |
|
DEPOSITS
Deposit Portfolio Mix and Growth Rates
|
|
|
|
|
|
|
|
% Growth |
(Dollars in
thousands) |
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
|
From (1)
December 31,
2018 |
|
From
March 31,
2018 |
Balance: |
|
|
|
|
|
|
|
|
|
Non-interest
bearing |
$ |
6,353,456 |
|
|
$ |
6,569,880 |
|
|
$ |
6,612,319 |
|
|
(13 |
)% |
|
(4 |
)% |
NOW and
interest bearing demand deposits |
2,948,576 |
|
|
2,897,133 |
|
|
2,315,122 |
|
|
7 |
|
|
27 |
|
Wealth
management deposits (2) |
3,328,781 |
|
|
2,996,764 |
|
|
2,495,134 |
|
|
45 |
|
|
33 |
|
Money
market |
6,093,596 |
|
|
5,704,866 |
|
|
4,617,122 |
|
|
28 |
|
|
32 |
|
Savings |
2,729,626 |
|
|
2,665,194 |
|
|
2,901,504 |
|
|
10 |
|
|
(6 |
) |
Time
certificates of deposit |
5,350,707 |
|
|
5,260,841 |
|
|
4,338,126 |
|
|
7 |
|
|
23 |
|
Total
deposits |
$ |
26,804,742 |
|
|
$ |
26,094,678 |
|
|
$ |
23,279,327 |
|
|
11 |
% |
|
15 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
Non-interest
bearing |
24 |
% |
|
25 |
% |
|
28 |
% |
|
|
|
|
NOW and
interest bearing demand deposits |
11 |
|
|
11 |
|
|
10 |
|
|
|
|
|
Wealth
management deposits (2) |
12 |
|
|
12 |
|
|
11 |
|
|
|
|
|
Money
market |
23 |
|
|
22 |
|
|
20 |
|
|
|
|
|
Savings |
10 |
|
|
10 |
|
|
12 |
|
|
|
|
|
Time
certificates of deposit |
20 |
|
|
20 |
|
|
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 March 31, 2019 |
|
(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 |
$ |
249 |
|
|
$ |
32,771 |
|
|
$ |
99,466 |
|
|
$ |
874,080 |
|
|
$ |
1,006,566 |
|
|
1.52 |
% |
4-6 months |
75,064 |
|
|
30,871 |
|
|
— |
|
|
701,663 |
|
|
807,598 |
|
|
1.74 |
% |
7-9 months |
— |
|
|
13,019 |
|
|
— |
|
|
583,211 |
|
|
596,230 |
|
|
1.80 |
% |
10-12 months |
— |
|
|
22,078 |
|
|
— |
|
|
686,059 |
|
|
708,137 |
|
|
1.98 |
% |
13-18 months |
— |
|
|
7,181 |
|
|
— |
|
|
909,809 |
|
|
916,990 |
|
|
2.24 |
% |
19-24 months |
— |
|
|
15,942 |
|
|
— |
|
|
459,659 |
|
|
475,601 |
|
|
2.70 |
% |
24+ months |
1,000 |
|
|
9,496 |
|
|
— |
|
|
829,089 |
|
|
839,585 |
|
|
2.65 |
% |
Total |
$ |
76,313 |
|
|
$ |
131,358 |
|
|
$ |
99,466 |
|
|
$ |
5,043,570 |
|
|
$ |
5,350,707 |
|
|
2.05 |
% |
(1) This category of certificates of deposit is shown by
contractual maturity date. |
(2) This category includes variable rate certificates of
deposit and savings certificates with the majority repricing on at
least a monthly basis. |
(3) Weighted-average rate excludes the impact of purchase
accounting fair value adjustments. |
|
NET INTEREST INCOME
The following table presents a summary of
Wintrust’s average balances, net interest income and related net
interest margins, calculated on a fully tax-equivalent basis, for
the first quarter of 2019 compared to the fourth quarter of 2018
(sequential quarter) and first quarter of 2018 (linked quarter),
respectively:
|
|
Average Balance
for three months ended, |
|
Interest
for three months ended, |
|
Yield/Rate
for three months ended, |
(Dollars in
thousands) |
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
|
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
|
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
Interest-bearing
deposits with banks and cash equivalents (1) |
$ |
897,629 |
|
|
$ |
1,042,860 |
|
|
$ |
749,973 |
|
|
$ |
5,300 |
|
|
$ |
5,628 |
|
|
$ |
2,796 |
|
|
2.39 |
% |
|
2.14 |
% |
|
1.51 |
% |
Investment securities
(2) |
3,630,577 |
|
|
3,347,496 |
|
|
2,892,617 |
|
|
28,521 |
|
|
27,242 |
|
|
19,659 |
|
|
3.19 |
|
|
3.23 |
|
|
2.76 |
|
FHLB and FRB stock |
94,882 |
|
|
98,084 |
|
|
105,414 |
|
|
1,355 |
|
|
1,343 |
|
|
1,298 |
|
|
5.79 |
|
|
5.43 |
|
|
4.99 |
|
Liquidity management
assets (3)(8) |
$ |
4,623,088 |
|
|
$ |
4,488,440 |
|
|
$ |
3,748,004 |
|
|
$ |
35,176 |
|
|
$ |
34,213 |
|
|
$ |
23,753 |
|
|
3.09 |
% |
|
3.02 |
% |
|
2.57 |
% |
Other earning assets
(3)(4)(8) |
13,591 |
|
|
16,204 |
|
|
27,571 |
|
|
165 |
|
|
253 |
|
|
174 |
|
|
4.91 |
|
|
6.19 |
|
|
2.56 |
|
Mortgage loans
held-for-sale |
188,190 |
|
|
265,717 |
|
|
281,181 |
|
|
2,209 |
|
|
3,409 |
|
|
2,818 |
|
|
4.76 |
|
|
5.09 |
|
|
4.06 |
|
Loans, net of unearned
income (3)(5)(8) |
23,880,916 |
|
|
23,164,154 |
|
|
21,711,342 |
|
|
298,021 |
|
|
284,291 |
|
|
235,664 |
|
|
5.06 |
|
|
4.87 |
|
|
4.40 |
|
Total
earning assets (8) |
$ |
28,705,785 |
|
|
$ |
27,934,515 |
|
|
$ |
25,768,098 |
|
|
$ |
335,571 |
|
|
$ |
322,166 |
|
|
$ |
262,409 |
|
|
4.74 |
% |
|
4.58 |
% |
|
4.13 |
% |
Allowance for loan
losses |
(157,782 |
) |
|
(154,438 |
) |
|
(143,108 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
283,019 |
|
|
271,403 |
|
|
254,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
2,385,149 |
|
|
2,128,407 |
|
|
1,930,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
31,216,171 |
|
|
$ |
30,179,887 |
|
|
$ |
27,809,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest bearing
demand deposits |
$ |
2,803,338 |
|
|
$ |
2,671,283 |
|
|
$ |
2,255,692 |
|
|
$ |
4,613 |
|
|
$ |
4,007 |
|
|
$ |
1,386 |
|
|
0.67 |
% |
|
0.60 |
% |
|
0.25 |
% |
Wealth management
deposits |
2,614,035 |
|
|
2,289,904 |
|
|
2,250,139 |
|
|
7,000 |
|
|
7,119 |
|
|
5,441 |
|
|
1.09 |
|
|
1.23 |
|
|
0.98 |
|
Money market accounts |
5,915,525 |
|
|
5,632,268 |
|
|
4,520,620 |
|
|
19,460 |
|
|
16,936 |
|
|
4,667 |
|
|
1.33 |
|
|
1.19 |
|
|
0.42 |
|
Savings accounts |
2,715,422 |
|
|
2,553,133 |
|
|
2,813,772 |
|
|
4,249 |
|
|
3,096 |
|
|
2,732 |
|
|
0.63 |
|
|
0.48 |
|
|
0.39 |
|
Time deposits |
5,267,796 |
|
|
5,381,029 |
|
|
4,322,111 |
|
|
25,654 |
|
|
24,817 |
|
|
12,323 |
|
|
1.98 |
|
|
1.83 |
|
|
1.16 |
|
Interest-bearing
deposits |
$ |
19,316,116 |
|
|
$ |
18,527,617 |
|
|
$ |
16,162,334 |
|
|
$ |
60,976 |
|
|
$ |
55,975 |
|
|
$ |
26,549 |
|
|
1.29 |
% |
|
1.20 |
% |
|
0.67 |
% |
Federal Home Loan Bank
advances |
594,335 |
|
|
551,846 |
|
|
872,811 |
|
|
2,450 |
|
|
2,563 |
|
|
3,639 |
|
|
1.67 |
|
|
1.84 |
|
|
1.69 |
|
Other borrowings |
465,571 |
|
|
385,878 |
|
|
263,125 |
|
|
3,633 |
|
|
3,199 |
|
|
1,699 |
|
|
3.16 |
|
|
3.29 |
|
|
2.62 |
|
Subordinated notes |
139,217 |
|
|
139,186 |
|
|
139,094 |
|
|
1,775 |
|
|
1,788 |
|
|
1,773 |
|
|
5.10 |
|
|
5.14 |
|
|
5.10 |
|
Junior subordinated
debentures |
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
3,150 |
|
|
2,983 |
|
|
2,463 |
|
|
4.97 |
|
|
4.60 |
|
|
3.89 |
|
Total
interest-bearing liabilities |
$ |
20,768,805 |
|
|
$ |
19,858,093 |
|
|
$ |
17,690,930 |
|
|
$ |
71,984 |
|
|
$ |
66,508 |
|
|
$ |
36,123 |
|
|
1.40 |
% |
|
1.33 |
% |
|
0.83 |
% |
Non-interest bearing
deposits |
6,444,378 |
|
|
6,542,228 |
|
|
6,639,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities |
693,910 |
|
|
578,912 |
|
|
483,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
3,309,078 |
|
|
3,200,654 |
|
|
2,995,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders’ equity |
$ |
31,216,171 |
|
|
$ |
30,179,887 |
|
|
$ |
27,809,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread
(6)(8) |
|
|
|
|
|
|
|
|
|
|
|
|
3.34 |
% |
|
3.25 |
% |
|
3.30 |
% |
Less: Fully
tax-equivalent adjustment |
|
|
|
|
|
|
(1,601 |
) |
|
(1,570 |
) |
|
(1,204 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
Net free
funds/contribution (7) |
$ |
7,936,980 |
|
|
$ |
8,076,422 |
|
|
$ |
8,077,168 |
|
|
|
|
|
|
|
|
0.38 |
|
|
0.38 |
|
|
0.26 |
|
Net interest income/
margin (GAAP) (8) |
|
|
|
|
|
|
$ |
261,986 |
|
|
$ |
254,088 |
|
|
$ |
225,082 |
|
|
3.70 |
% |
|
3.61 |
% |
|
3.54 |
% |
Fully tax-equivalent
adjustment |
|
|
|
|
|
|
1,601 |
|
|
1,570 |
|
|
1,204 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
Net interest income/ margin (non-GAAP) (8) |
|
|
|
|
|
|
$ |
263,587 |
|
|
$ |
255,658 |
|
|
$ |
226,286 |
|
|
3.72 |
% |
|
3.63 |
% |
|
3.56 |
% |
(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 March 31, 2019, December 31, 2018 and
March 31, 2018 were $1.6 million, $1.6 million and $1.2
million, respectively. |
(4) Other earning assets include brokerage customer
receivables and trading account securities. |
(5) Loans, net of unearned income, include non-accrual
loans. |
(6) Interest rate spread is the difference between the
yield earned on earning assets and the rate paid on
interest-bearing liabilities. |
(7) Net free funds are the difference between total
average earning assets and total average interest-bearing
liabilities. The estimated contribution to net interest margin from
net free funds is calculated using the rate paid for total
interest-bearing liabilities. |
(8) See “Supplemental Financial Measures/Ratios” for
additional information on this performance ratio. |
|
For the first quarter of 2019, net interest income totaled $262.0
million, an increase of $7.9 million as compared to the fourth
quarter of 2018 and an increase of $36.9 million as compared to the
first quarter of 2018. Net interest margin was 3.70% (3.72% on a
fully taxable-equivalent basis, non-GAAP) during the first quarter
of 2019 compared to 3.61% (3.63% on a fully taxable-equivalent
basis, non-GAAP) during the fourth quarter of 2018 and 3.54% (3.56%
on a fully taxable-equivalent basis, non-GAAP) during the first
quarter of 2018. The $7.9 million increase in net interest income
in the first quarter of 2019 compared to the fourth quarter of 2018
was attributable to a $5.5 million increase from higher levels of
earning assets and a $8.0 million increase due to a higher net
interest margin, partially offset by a $5.6 million decrease due to
two less days in the quarter.
Interest Rate Sensitivity
As an ongoing part of its financial strategy,
the Company attempts to manage the impact of fluctuations in market
interest rates on net interest income. Management measures its
exposure to changes in interest rates by modeling many different
interest rate scenarios.
The following interest rate scenarios display
the percentage change in net interest income over a one-year time
horizon assuming increases of 100 and 200 basis points and a
decrease of 100 basis points. The Static Shock Scenario results
incorporate actual cash flows and repricing characteristics for
balance sheet instruments following an instantaneous, parallel
change in market rates based upon a static (i.e. no growth or
constant) balance sheet. Conversely, the Ramp Scenario results
incorporate management’s projections of future volume and pricing
of each of the product lines following a gradual, parallel change
in market rates over twelve months. Actual results may differ
from these simulated results due to timing, magnitude, and
frequency of interest rate changes as well as changes in market
conditions and management strategies. The interest rate sensitivity
for both the Static Shock and Ramp Scenario at March 31,
2019, December 31, 2018 and March 31, 2018 is as
follows:
|
|
|
|
|
|
Static Shock
Scenario |
|
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
March 31,
2019 |
|
14.9 |
% |
|
7.8 |
% |
|
(8.5 |
)% |
December 31, 2018 |
|
15.6 |
% |
|
7.9 |
% |
|
(8.6 |
)% |
March 31, 2018 |
|
18.8 |
% |
|
9.7 |
% |
|
(11.6 |
)% |
Ramp
Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
March 31,
2019 |
6.7 |
% |
|
3.5 |
% |
|
(3.3 |
)% |
December 31, 2018 |
7.4 |
% |
|
3.8 |
% |
|
(3.6 |
)% |
March 31, 2018 |
9.0 |
% |
|
4.6 |
% |
|
(4.8 |
)% |
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 March 31, 2019 by date at which the loans reprice
or mature, and the type of rate exposure:
|
As of March 31,
2019 |
One year or less |
|
From one to five
years |
|
Over five years |
|
|
(Dollars in
thousands) |
|
|
|
Total |
Commercial |
|
|
|
|
|
|
|
Fixed
rate |
$ |
164,370 |
|
|
$ |
1,149,701 |
|
|
$ |
755,402 |
|
|
$ |
2,069,473 |
|
Variable
rate |
5,917,650 |
|
|
6,923 |
|
|
145 |
|
|
5,924,718 |
|
Total
commercial |
$ |
6,082,020 |
|
|
$ |
1,156,624 |
|
|
$ |
755,547 |
|
|
$ |
7,994,191 |
|
Commercial real
estate |
|
|
|
|
|
|
|
Fixed
rate |
419,045 |
|
|
1,956,704 |
|
|
332,469 |
|
|
2,708,218 |
|
Variable
rate |
4,237,177 |
|
|
28,102 |
|
|
8 |
|
|
4,265,287 |
|
Total
commercial real estate |
$ |
4,656,222 |
|
|
$ |
1,984,806 |
|
|
$ |
332,477 |
|
|
$ |
6,973,505 |
|
Home equity |
|
|
|
|
|
|
|
Fixed
rate |
16,272 |
|
|
12,934 |
|
|
4,981 |
|
|
34,187 |
|
Variable
rate |
494,261 |
|
|
— |
|
|
— |
|
|
494,261 |
|
Total home
equity |
$ |
510,533 |
|
|
$ |
12,934 |
|
|
$ |
4,981 |
|
|
$ |
528,448 |
|
Residential real
estate |
|
|
|
|
|
|
|
Fixed
rate |
30,648 |
|
|
20,501 |
|
|
235,107 |
|
|
286,256 |
|
Variable
rate |
49,860 |
|
|
314,090 |
|
|
403,318 |
|
|
767,268 |
|
Total
residential real estate |
$ |
80,508 |
|
|
$ |
334,591 |
|
|
$ |
638,425 |
|
|
$ |
1,053,524 |
|
Premium finance
receivables - commercial |
|
|
|
|
|
|
|
Fixed
rate |
2,928,872 |
|
|
59,916 |
|
|
— |
|
|
2,988,788 |
|
Variable
rate |
— |
|
|
— |
|
|
— |
|
|
— |
|
Total
premium finance receivables - commercial |
$ |
2,928,872 |
|
|
$ |
59,916 |
|
|
$ |
— |
|
|
$ |
2,988,788 |
|
Premium finance
receivables - life insurance |
|
|
|
|
|
|
|
Fixed
rate |
19,925 |
|
|
66,737 |
|
|
6,087 |
|
|
92,749 |
|
Variable
rate |
4,462,620 |
|
|
— |
|
|
— |
|
|
4,462,620 |
|
Total
premium finance receivables - life insurance |
$ |
4,482,545 |
|
|
$ |
66,737 |
|
|
$ |
6,087 |
|
|
$ |
4,555,369 |
|
Consumer and other |
|
|
|
|
|
|
|
Fixed
rate |
80,068 |
|
|
11,236 |
|
|
2,072 |
|
|
93,376 |
|
Variable
rate |
27,387 |
|
|
41 |
|
|
— |
|
|
27,428 |
|
Total
consumer and other |
$ |
107,455 |
|
|
$ |
11,277 |
|
|
$ |
2,072 |
|
|
$ |
120,804 |
|
Total per category |
|
|
|
|
|
|
|
Fixed
rate |
3,659,200 |
|
|
3,277,729 |
|
|
1,336,118 |
|
|
8,273,047 |
|
Variable
rate |
15,188,955 |
|
|
349,156 |
|
|
403,471 |
|
|
15,941,582 |
|
Total loans,
net of unearned income |
$ |
18,848,155 |
|
|
$ |
3,626,885 |
|
|
$ |
1,739,589 |
|
|
$ |
24,214,629 |
|
Variable Rate
Loan Pricing by Index: |
|
|
|
|
|
|
|
Prime |
$ |
2,307,308 |
|
|
|
|
|
|
|
One- month
LIBOR |
8,188,860 |
|
|
|
|
|
|
|
Three- month
LIBOR |
381,204 |
|
|
|
|
|
|
|
Twelve-
month LIBOR |
4,836,490 |
|
|
|
|
|
|
|
Other |
227,720 |
|
|
|
|
|
|
|
Total variable rate |
$ |
15,941,582 |
|
|
|
|
|
|
|
http://ml.globenewswire.com/Resource/Download/56f85e52-e126-403a-9736-e900730297bc
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 $8.2 billion of variable
rate loans tied to one-month LIBOR and $4.8 billion of variable
rate loans tied to twelve-month LIBOR. The above chart shows:
|
Changes in |
|
Prime |
|
1-month
LIBOR |
|
12-month
LIBOR |
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 |
First
Quarter 2019 |
+0 bps |
|
-1 bps |
|
-30 bps |
|
NON-INTEREST INCOME
The following table presents non-interest income by category for
the periods presented:
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
Q1 2019 compared to
Q4 2018 |
|
Q1 2019 compared to
Q1 2018 |
(Dollars in
thousands) |
|
2019 |
|
2018 |
|
2018 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
|
$ |
4,516 |
|
|
$ |
4,997 |
|
|
$ |
6,031 |
|
|
$ |
(481 |
) |
|
(10 |
)% |
|
$ |
(1,515 |
) |
|
(25 |
)% |
Trust and asset
management |
|
19,461 |
|
|
17,729 |
|
|
16,955 |
|
|
1,732 |
|
|
10 |
|
|
2,506 |
|
|
15 |
|
Total wealth
management |
|
$ |
23,977 |
|
|
$ |
22,726 |
|
|
$ |
22,986 |
|
|
$ |
1,251 |
|
|
6 |
% |
|
$ |
991 |
|
|
4 |
% |
Mortgage banking |
|
18,158 |
|
|
24,182 |
|
|
30,960 |
|
|
(6,024 |
) |
|
(25 |
) |
|
(12,802 |
) |
|
(41 |
) |
Service charges on deposit
accounts |
|
8,848 |
|
|
9,065 |
|
|
8,857 |
|
|
(217 |
) |
|
(2 |
) |
|
(9 |
) |
|
— |
|
Gains (losses) on
investment securities, net |
|
1,364 |
|
|
(2,649 |
) |
|
(351 |
) |
|
4,013 |
|
|
N |
M |
|
1,715 |
|
|
N |
M |
Fees from covered call
options |
|
1,784 |
|
|
626 |
|
|
1,597 |
|
|
1,158 |
|
|
N |
M |
|
187 |
|
|
12 |
|
Trading (losses) gains,
net |
|
(171 |
) |
|
(155 |
) |
|
103 |
|
|
(16 |
) |
|
10 |
|
|
(274 |
) |
|
N |
M |
Operating lease income,
net |
|
10,796 |
|
|
10,882 |
|
|
9,691 |
|
|
(86 |
) |
|
(1 |
) |
|
1,105 |
|
|
11 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
rate swap fees |
|
2,831 |
|
|
2,602 |
|
|
2,237 |
|
|
229 |
|
|
9 |
|
|
594 |
|
|
27 |
|
BOLI |
|
1,591 |
|
|
(466 |
) |
|
714 |
|
|
2,057 |
|
|
N |
M |
|
877 |
|
|
N |
M |
Administrative services |
|
1,030 |
|
|
1,260 |
|
|
1,061 |
|
|
(230 |
) |
|
(18 |
) |
|
(31 |
) |
|
(3 |
) |
Foreign
currency remeasurement gains (losses) |
|
464 |
|
|
(1,149 |
) |
|
(328 |
) |
|
1,613 |
|
|
N |
M |
|
792 |
|
|
N |
M |
Early
pay-offs of capital leases |
|
5 |
|
|
3 |
|
|
33 |
|
|
2 |
|
|
67 |
|
|
(28 |
) |
|
(85 |
) |
Miscellaneous |
|
10,980 |
|
|
8,381 |
|
|
8,119 |
|
|
2,599 |
|
|
31 |
|
|
2,861 |
|
|
35 |
|
Total
Other |
|
$ |
16,901 |
|
|
$ |
10,631 |
|
|
$ |
11,836 |
|
|
$ |
6,270 |
|
|
59 |
% |
|
$ |
5,065 |
|
|
43 |
% |
Total Non-Interest Income |
|
$ |
81,657 |
|
|
$ |
75,308 |
|
|
$ |
85,679 |
|
|
$ |
6,349 |
|
|
8 |
% |
|
$ |
(4,022 |
) |
|
(5 |
)% |
NM - Not
meaningful. |
|
Notable contributions to the change in non-interest income are as
follows:
The increase in wealth management revenue during
the current period as compared to the fourth quarter of 2018 is
primarily attributable to higher fees on tax-deferred like-kind
exchange services and market appreciation related to managed money
accounts with fees based on assets under management. Wealth
management revenue is comprised of the trust and asset management
revenue of The Chicago Trust Company and Great Lakes Advisors, the
brokerage commissions, managed money fees and insurance product
commissions at Wintrust Investments and fees from tax-deferred
like-kind exchange services provided by CDEC.
The decrease in mortgage banking revenue in the
first quarter of 2019 as compared to the fourth quarter of 2018
resulted primarily from lower origination volumes and negative fair
value adjustments recognized on mortgage servicing rights related
to changes in valuation assumptions and pay-offs, partially offset
by higher production margins. Mortgage loans originated for
sale totaled $678.5 million in the first quarter of 2019 as
compared to $927.8 million in the fourth quarter of 2018 and $778.9
million in the first quarter of 2018. 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. 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 |
(Dollars in
thousands) |
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2018 |
|
|
Originations: |
|
Retail originations |
$ |
365,602 |
|
|
$ |
463,196 |
|
|
$ |
539,911 |
|
Correspondent
originations |
148,100 |
|
|
289,101 |
|
|
126,464 |
|
Veterans First
originations |
164,762 |
|
|
175,483 |
|
|
112,477 |
|
Total
originations for sale (A) |
$ |
678,464 |
|
|
$ |
927,780 |
|
|
$ |
778,852 |
|
Originations for
investment |
93,689
|
|
|
93,275
|
|
|
43,249
|
|
Total
originations |
$ |
772,153 |
|
|
$ |
1,021,055 |
|
|
$ |
822,101 |
|
|
|
|
|
|
|
Purchases as a
percentage of originations for sale |
67 |
% |
|
71 |
% |
|
73 |
% |
Refinances as a
percentage of originations for sale |
33 |
|
|
29 |
|
|
27 |
|
Total |
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
Production
Margin: |
|
|
|
|
|
Production revenue (B)
(1) |
$ |
16,606 |
|
|
$ |
18,657 |
|
|
$ |
20,526 |
|
Production margin (B /
A) |
2.45 |
% |
|
2.01 |
% |
|
2.64 |
% |
|
|
|
|
|
|
Mortgage
Servicing: |
|
|
|
|
|
Loans serviced for
others (C) |
$ |
7,014,269 |
|
|
$ |
6,545,870 |
|
|
$ |
4,795,335 |
|
MSRs, at fair value
(D) |
71,022 |
|
|
75,183 |
|
|
54,572 |
|
Percentage of MSRs to
loans serviced for others (D / C) |
1.01 |
% |
|
1.15 |
% |
|
1.14 |
% |
|
|
|
|
|
|
Components of
Mortgage Banking Revenue: |
|
|
|
|
|
Production revenue |
$ |
16,606 |
|
|
$ |
18,657 |
|
|
$ |
20,526 |
|
MSR - current period
capitalization |
6,580 |
|
|
9,683 |
|
|
4,159 |
|
MSR - collection of
expected cash flows - paydowns |
(505 |
) |
|
(496 |
) |
|
(443 |
) |
MSR - collection of
expected cash flows - payoffs |
(1,492 |
) |
|
(896 |
) |
|
(759 |
) |
MSR - changes in fair
value model assumptions |
(8,744 |
) |
|
(7,638 |
) |
|
4,133 |
|
Servicing income |
5,460 |
|
|
4,917 |
|
|
2,905 |
|
Other |
253 |
|
|
(45 |
) |
|
439 |
|
Total mortgage banking revenue |
$ |
18,158 |
|
|
$ |
24,182 |
|
|
$ |
30,960 |
|
(1) Production revenue represents revenue earned from the
origination and subsequent sale of mortgages, including gains on
loans sold and fees from originations, processing and other related
activities, and excludes servicing fees, changes in the fair value
of servicing rights and changes to the mortgage recourse
obligation. |
|
The net gains and net losses recognized on investment securities in
the first quarter of 2019 and fourth quarter of 2018, respectively,
were primarily due to unrealized gains and losses recognized on
equity securities held by the Company, including a large cap value
mutual fund.
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 March 31, 2019, December 31, 2018 or
March 31, 2018.
The increase in BOLI income was primarily the
result of higher market returns during the first quarter of 2019 on
certain investments supporting deferred compensation plan
benefits.
The increase in miscellaneous
non-interest income in the first quarter of 2019 as compared to
the fourth quarter of 2018 is primarily due to income
from investments in partnerships and positive adjustments from
foreign currency remeasurement of the Company's Canadian
subsidiary.
NON-INTEREST EXPENSE
The following table presents non-interest expense by category
for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
Q1 2019 compared to
Q4 2018 |
|
Q1 2019 compared to
Q1 2018 |
(Dollars in
thousands) |
2019 |
|
2018 |
|
2018 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
$ |
74,037 |
|
|
$ |
67,708 |
|
|
$ |
61,986 |
|
|
$ |
6,329 |
|
|
9 |
% |
|
$ |
12,051 |
|
|
19 |
% |
Commissions
and incentive compensation |
31,599 |
|
|
33,656 |
|
|
31,949 |
|
|
(2,057 |
) |
|
(6 |
) |
|
(350 |
) |
|
(1 |
) |
Benefits |
20,087 |
|
|
20,747 |
|
|
18,501 |
|
|
(660 |
) |
|
(3 |
) |
|
1,586 |
|
|
9 |
|
Total
salaries and employee benefits |
125,723 |
|
|
122,111 |
|
|
112,436 |
|
|
3,612 |
|
|
3 |
|
|
13,287 |
|
|
12 |
|
Equipment |
11,770 |
|
|
11,523 |
|
|
10,072 |
|
|
247 |
|
|
2 |
|
|
1,698 |
|
|
17 |
|
Operating lease equipment
depreciation |
8,319 |
|
|
8,462 |
|
|
6,533 |
|
|
(143 |
) |
|
(2 |
) |
|
1,786 |
|
|
27 |
|
Occupancy, net |
16,245 |
|
|
15,980 |
|
|
13,767 |
|
|
265 |
|
|
2 |
|
|
2,478 |
|
|
18 |
|
Data processing |
7,525 |
|
|
8,447 |
|
|
8,493 |
|
|
(922 |
) |
|
(11 |
) |
|
(968 |
) |
|
(11 |
) |
Advertising and
marketing |
9,858 |
|
|
9,414 |
|
|
8,824 |
|
|
444 |
|
|
5 |
|
|
1,034 |
|
|
12 |
|
Professional fees |
5,556 |
|
|
9,259 |
|
|
6,649 |
|
|
(3,703 |
) |
|
(40 |
) |
|
(1,093 |
) |
|
(16 |
) |
Amortization of other
intangible assets |
2,942 |
|
|
1,407 |
|
|
1,004 |
|
|
1,535 |
|
|
N |
M |
|
1,938 |
|
|
N |
M |
FDIC insurance |
3,576 |
|
|
4,044 |
|
|
4,362 |
|
|
(468 |
) |
|
(12 |
) |
|
(786 |
) |
|
(18 |
) |
OREO expense, net |
632 |
|
|
1,618 |
|
|
2,926 |
|
|
(986 |
) |
|
(61 |
) |
|
(2,294 |
) |
|
(78 |
) |
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions
- 3rd party brokers |
718 |
|
|
779 |
|
|
1,252 |
|
|
(61 |
) |
|
(8 |
) |
|
(534 |
) |
|
(43 |
) |
Postage |
2,450 |
|
|
2,047 |
|
|
1,866 |
|
|
403 |
|
|
20 |
|
|
584 |
|
|
31 |
|
Miscellaneous |
19,060 |
|
|
16,242 |
|
|
16,165 |
|
|
2,818 |
|
|
17 |
|
|
2,895 |
|
|
18 |
|
Total
other |
22,228 |
|
|
19,068 |
|
|
19,283 |
|
|
3,160 |
|
|
17 |
|
|
2,945 |
|
|
15 |
|
Total Non-Interest Expense |
$ |
214,374 |
|
|
$ |
211,333 |
|
|
$ |
194,349 |
|
|
$ |
3,041 |
|
|
1 |
% |
|
$ |
20,025 |
|
|
10 |
% |
NM - Not
meaningful. |
|
Notable contributions to the change in non-interest expense are as
follows:
Salaries and employee benefits expense increased
in the first quarter of 2019 compared to the fourth quarter of 2018
primarily as a result of lower salary deferrals related to loan
origination costs and an increase in costs related to deferred
compensation plans impacted by market returns of related BOLI
investments.
Professional fees decreased in the first quarter
of 2019 compared to the fourth quarter of 2018 primarily due to
lower legal and consulting fees during the current period.
The increase in amortization of intangible
assets in the first quarter of 2019 compared to the fourth quarter
of 2018 was primarily due to the amortization of certain acquired
intangible assets related to the acquisition of CDEC in
mid-December of 2018.
Other miscellaneous expense increased during the
first quarter of 2019 compared to the fourth quarter of 2018
as a result of various other expenses, including a $1.0
million non-tax-deductible settlement in the first quarter of
2019.
INCOME TAXES
The Company recorded income tax expense of $29.5
million in the first quarter of 2019 compared to $28.0 million in
the fourth quarter of 2018 and $26.1 million in the first quarter
of 2018. The effective tax rates were 24.86% in the first quarter
of 2019, 26.01% in the fourth quarter of 2018 and 24.14% in the
first quarter of 2018. The effective tax rates were impacted by
excess tax benefits related to share-based compensation. These
excess tax benefits were $1.6 million in the first quarter of 2019
compared to $160,000 in the fourth quarter of 2018 and $2.6 million
in the first quarter of 2018. Excess tax benefits are expected to
be higher in the first quarter when the majority of the Company's
shared-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 |
|
|
|
Three Months Ended |
|
March
31, |
|
December
31, |
|
March 31, |
(Dollars in
thousands) |
2019 |
|
2018 |
|
2018 |
Allowance for loan
losses at beginning of period |
$ |
152,770 |
|
|
$ |
149,756 |
|
|
$ |
137,905 |
|
Provision for
credit losses |
10,624 |
|
|
10,401 |
|
|
8,346 |
|
Other
adjustments |
(27 |
) |
|
(79 |
) |
|
(40 |
) |
Reclassification
(to) from allowance for unfunded lending-related
commitments |
(16 |
) |
|
(150 |
) |
|
26 |
|
Charge-offs: |
|
|
|
|
|
Commercial |
503 |
|
|
6,416 |
|
|
2,687 |
|
Commercial
real estate |
3,734 |
|
|
219 |
|
|
813 |
|
Home
equity |
88 |
|
|
715 |
|
|
357 |
|
Residential
real estate |
3 |
|
|
267 |
|
|
571 |
|
Premium
finance receivables - commercial |
2,210 |
|
|
1,741 |
|
|
4,721 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
Consumer and
other |
102 |
|
|
148 |
|
|
129 |
|
Total
charge-offs |
6,640 |
|
|
9,506 |
|
|
9,278 |
|
Recoveries: |
|
|
|
|
|
Commercial |
318 |
|
|
225 |
|
|
262 |
|
Commercial
real estate |
480 |
|
|
1,364 |
|
|
1,687 |
|
Home
equity |
62 |
|
|
105 |
|
|
123 |
|
Residential
real estate |
29 |
|
|
47 |
|
|
40 |
|
Premium
finance receivables - commercial |
556 |
|
|
567 |
|
|
385 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
Consumer and
other |
56 |
|
|
40 |
|
|
47 |
|
Total
recoveries |
1,501 |
|
|
2,348 |
|
|
2,544 |
|
Net
charge-offs |
(5,139 |
) |
|
(7,158 |
) |
|
(6,734 |
) |
Allowance for loan losses at period end |
$ |
158,212 |
|
|
$ |
152,770 |
|
|
$ |
139,503 |
|
Allowance for unfunded lending-related commitments at
period end |
1,410 |
|
|
1,394 |
|
|
1,243 |
|
Allowance for credit losses at period end |
$ |
159,622 |
|
|
$ |
154,164 |
|
|
$ |
140,746 |
|
|
|
|
|
|
|
Annualized net
charge-offs (recoveries) by category as a percentage of its own
respective category’s average: |
|
|
|
|
|
Commercial |
0.01 |
% |
|
0.33 |
% |
|
0.14 |
% |
Commercial
real estate |
0.19 |
|
|
(0.07 |
) |
|
(0.05 |
) |
Home
equity |
0.02 |
|
|
0.43 |
|
|
0.15 |
|
Residential
real estate |
(0.01 |
) |
|
0.10 |
|
|
0.26 |
|
Premium
finance receivables - commercial |
0.23 |
|
|
0.16 |
|
|
0.68 |
|
Premium
finance receivables - life insurance |
0.00 |
|
|
0.00 |
|
|
0.00 |
|
Consumer and
other |
0.16 |
|
|
0.30 |
|
|
0.26 |
|
Total loans,
net of unearned income |
0.09 |
% |
|
0.12 |
% |
|
0.13 |
% |
Net charge-offs as
a percentage of the provision for credit losses |
48.37 |
% |
|
68.82 |
% |
|
80.69 |
% |
|
|
|
|
|
|
Loans at
period-end |
$ |
24,214,629 |
|
|
$ |
23,820,691 |
|
|
$ |
22,062,134 |
|
Allowance for loan
losses as a percentage of loans at period end |
0.65 |
% |
|
0.64 |
% |
|
0.63 |
% |
Allowance for credit losses as a percentage of loans at
period end |
0.66 |
% |
|
0.65 |
% |
|
0.64 |
% |
|
The allowance for credit 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 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, for
the first quarter of 2019 totaled nine basis points on an
annualized basis compared to 12 basis points on an annualized basis
in the fourth quarter of 2018 and 13 basis points on an annualized
basis in the first quarter of 2018. Net charge-offs totaled
$5.1 million in the first quarter of 2019, a $2.0 million decrease
from $7.2 million in the fourth quarter of 2018 and a $1.6 million
decrease from $6.7 million in the first quarter of 2018. The
decrease in net charge-offs in the first quarter of 2019 compared
to fourth quarter of 2018 is primarily the result of lower
charge-offs within the commercial portfolio, partially offset by an
increase in charge-offs within the commercial real estate
portfolio, during the current period. The provision for credit
losses, totaled $10.6 million for the first quarter of 2019
compared to $10.4 million for the fourth quarter of 2018 and $8.3
million for the first quarter of 2018.
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 following table presents the provision for
credit losses by component for the periods presented:
|
|
|
Three Months Ended |
|
March 31, |
|
|
December 31, |
|
|
March 31, |
(Dollars in
thousands) |
2019 |
|
|
2018 |
|
|
2018 |
Provision for loan
losses |
$ |
10,608 |
|
|
$ |
10,251 |
|
|
$ |
8,372 |
|
Provision for unfunded
lending-related commitments |
16 |
|
|
150 |
|
|
(26 |
) |
Provision for credit losses |
$ |
10,624 |
|
|
$ |
10,401 |
|
|
$ |
8,346 |
|
|
The tables below summarize the calculation of
allowance for loan losses for the Company’s core loan portfolio and
consumer, niche and purchased loan portfolio, as of March 31,
2019 and December 31, 2018.
|
|
As of March 31, 2019 |
|
Recorded |
|
Calculated |
|
As a percentage
of its own respective |
(Dollars in
thousands) |
Investment |
|
Allowance |
|
category’s balance |
Commercial:(1) |
|
|
|
|
|
Commercial and
industrial |
$ |
4,460,202 |
|
|
$ |
46,436 |
|
|
1.04 |
% |
Asset-based
lending |
1,037,632 |
|
|
8,868 |
|
|
0.85 |
|
Tax
exempt |
514,789 |
|
|
3,255 |
|
|
0.63 |
|
Leases |
615,015 |
|
|
1,675 |
|
|
0.27 |
|
Commercial real
estate:(1) |
|
|
|
|
|
Residential
construction |
38,986 |
|
|
879 |
|
|
2.25 |
|
Commercial
construction |
759,826 |
|
|
8,240 |
|
|
1.08 |
|
Land |
146,654 |
|
|
4,194 |
|
|
2.86 |
|
Office |
891,365 |
|
|
6,266 |
|
|
0.70 |
|
Industrial |
931,343 |
|
|
6,532 |
|
|
0.70 |
|
Retail |
863,435 |
|
|
6,065 |
|
|
0.70 |
|
Multi-family |
1,073,431 |
|
|
10,874 |
|
|
1.01 |
|
Mixed use
and other |
1,931,079 |
|
|
14,641 |
|
|
0.76 |
|
Home
equity(1) |
500,636 |
|
|
8,584 |
|
|
1.71 |
|
Residential real
estate(1) |
1,027,586 |
|
|
7,524 |
|
|
0.73 |
|
Total core loan portfolio |
$ |
14,791,979 |
|
|
$ |
134,033 |
|
|
0.91 |
% |
Commercial: |
|
|
|
|
|
Franchise |
$ |
834,911 |
|
|
$ |
11,975 |
|
|
1.43 |
% |
Mortgage
warehouse lines of credit |
174,284 |
|
|
1,399 |
|
|
0.80 |
|
Community
Advantage - homeowner associations |
185,488 |
|
|
465 |
|
|
0.25 |
|
Aircraft |
11,491 |
|
|
15 |
|
|
0.13 |
|
Purchased
commercial loans (2) |
160,379 |
|
|
550 |
|
|
0.34 |
|
Commercial real
estate: |
|
|
|
|
|
Purchased
commercial real estate (2) |
337,386 |
|
|
159 |
|
|
0.05 |
|
Purchased home equity
(2) |
27,812 |
|
|
43 |
|
|
0.15 |
|
Purchased residential
real estate (2) |
25,938 |
|
|
106 |
|
|
0.41 |
|
Premium finance
receivables |
|
|
|
|
|
U.S.
commercial insurance loans |
2,620,703 |
|
|
6,251 |
|
|
0.24 |
|
Canada
commercial insurance loans (2) |
368,085 |
|
|
592 |
|
|
0.16 |
|
Life
insurance loans (1) |
4,389,599 |
|
|
1,376 |
|
|
0.03 |
|
Purchased
life insurance loans (2) |
165,770 |
|
|
— |
|
|
— |
|
Consumer and other
(1) |
117,561 |
|
|
1,246 |
|
|
1.06 |
|
Purchased consumer and
other (2) |
3,243 |
|
|
2 |
|
|
0.06 |
|
Total consumer, niche and purchased loan
portfolio |
$ |
9,422,650 |
|
|
$ |
24,179 |
|
|
0.26 |
% |
Total loans, net of unearned income |
$ |
24,214,629 |
|
|
$ |
158,212 |
|
|
0.65 |
% |
(1) Excludes purchased loans reported in accordance with
ASC 310-20 and ASC 310-30. |
(2) Purchased loans represent loans reported in accordance
with ASC 310-20 and ASC 310-30. |
|
|
|
|
As of 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
commercial loans (2) |
187,355 |
|
|
684 |
|
|
0.37 |
|
Commercial real
estate: |
|
|
|
|
|
Purchased
commercial real estate (2) |
356,942 |
|
|
139 |
|
|
0.04 |
|
Purchased home equity
(2) |
33,529 |
|
|
79 |
|
|
0.24 |
|
Purchased 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 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 |
$ |
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 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 March 31, 2019 and December 31,
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 $158.2 million of allowance
for loan losses, there is $6.1 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 March 31, 2019 and December 31,
2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90+ days |
|
60-89 |
|
30-59 |
|
|
|
|
As of March 31,
2019 |
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in
thousands) |
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan
Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
(1) |
$ |
55,792 |
|
|
$ |
2,499 |
|
|
$ |
1,787 |
|
|
$ |
49,700 |
|
|
$ |
7,884,413 |
|
|
$ |
7,994,191 |
|
Commercial real estate
(1) |
15,933 |
|
|
4,265 |
|
|
5,612 |
|
|
54,872 |
|
|
6,892,823 |
|
|
6,973,505 |
|
Home equity |
7,885 |
|
|
— |
|
|
810 |
|
|
4,315 |
|
|
515,438 |
|
|
528,448 |
|
Residential real estate
(1) |
15,879 |
|
|
1,481 |
|
|
509 |
|
|
11,112 |
|
|
1,024,543 |
|
|
1,053,524 |
|
Premium finance
receivables - commercial |
14,797 |
|
|
6,558 |
|
|
5,628 |
|
|
20,767 |
|
|
2,941,038 |
|
|
2,988,788 |
|
Premium finance
receivables - life insurance (1) |
— |
|
|
168 |
|
|
4,788 |
|
|
35,046 |
|
|
4,515,367 |
|
|
4,555,369 |
|
Consumer and other
(1) |
326 |
|
|
280 |
|
|
47 |
|
|
350 |
|
|
119,801 |
|
|
120,804 |
|
Total loans, net of unearned income |
$ |
110,612 |
|
|
$ |
15,251 |
|
|
$ |
19,181 |
|
|
$ |
176,162 |
|
|
$ |
23,893,423 |
|
|
$ |
24,214,629 |
|
As of March 31,
2019
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 |
% |
|
0.0 |
% |
|
0.0 |
% |
|
0.6 |
% |
|
98.7 |
% |
|
100.0 |
% |
Commercial real estate
(1) |
0.2 |
|
|
0.1 |
|
|
0.1 |
|
|
0.8 |
|
|
98.8 |
|
|
100.0 |
|
Home equity |
1.5 |
|
|
— |
|
|
0.2 |
|
|
0.8 |
|
|
97.5 |
|
|
100.0 |
|
Residential real estate
(1) |
1.5 |
|
|
0.1 |
|
|
0.0 |
|
|
1.1 |
|
|
97.3 |
|
|
100.0 |
|
Premium finance
receivables - commercial |
0.5 |
|
|
0.2 |
|
|
0.2 |
|
|
0.7 |
|
|
98.4 |
|
|
100.0 |
|
Premium finance
receivables - life insurance (1) |
— |
|
|
0.0 |
|
|
0.1 |
|
|
0.8 |
|
|
99.1 |
|
|
100.0 |
|
Consumer and other
(1) |
0.3 |
|
|
0.2 |
|
|
0.0 |
|
|
0.3 |
|
|
99.2 |
|
|
100.0 |
|
Total loans, net of unearned income |
0.5 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.7 |
% |
|
98.6 |
% |
|
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 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 |
% |
|
0.0 |
% |
|
0.0 |
% |
|
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 |
|
|
— |
|
|
0.0 |
|
|
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. |
|
As of March 31, 2019, $19.2 million of all loans, or 0.1%,
were 60 to 89 days past due and $176.2 million, or 0.7%, were 30 to
59 days (or one payment) past due. 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. Many 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 March 31, 2019 that are current with regard to the
contractual terms of the loan agreement represent 97.5% of the
total home equity portfolio. Residential real estate loans at
March 31, 2019 that are current with regards to the
contractual terms of the loan agreements comprise 97.3% 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.
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in
thousands) |
2019 |
|
2018 |
|
2018 |
Loans past due greater than 90 days and
still accruing(1): |
Commercial |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Commercial
real estate |
— |
|
|
— |
|
|
— |
|
Home
equity |
— |
|
|
— |
|
|
— |
|
Residential
real estate |
30 |
|
|
— |
|
|
— |
|
Premium
finance receivables - commercial |
6,558 |
|
|
7,799 |
|
|
8,547 |
|
Premium
finance receivables - life insurance |
168 |
|
|
— |
|
|
— |
|
Consumer and
other |
218 |
|
|
109 |
|
|
207 |
|
Total loans
past due greater than 90 days and still accruing |
6,974 |
|
|
7,908 |
|
|
8,754 |
|
Non-accrual
loans(2): |
|
|
|
|
|
Commercial |
55,792 |
|
|
50,984 |
|
|
14,007 |
|
Commercial
real estate |
15,933 |
|
|
19,129 |
|
|
21,825 |
|
Home
equity |
7,885 |
|
|
7,147 |
|
|
9,828 |
|
Residential
real estate |
15,879 |
|
|
16,383 |
|
|
17,214 |
|
Premium
finance receivables - commercial |
14,797 |
|
|
11,335 |
|
|
17,342 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
Consumer and
other |
326 |
|
|
348 |
|
|
720 |
|
Total
non-accrual loans |
110,612 |
|
|
105,326 |
|
|
80,936 |
|
Total
non-performing loans: |
|
|
|
|
|
Commercial |
55,792 |
|
|
50,984 |
|
|
14,007 |
|
Commercial
real estate |
15,933 |
|
|
19,129 |
|
|
21,825 |
|
Home
equity |
7,885 |
|
|
7,147 |
|
|
9,828 |
|
Residential
real estate |
15,909 |
|
|
16,383 |
|
|
17,214 |
|
Premium
finance receivables - commercial |
21,355 |
|
|
19,134 |
|
|
25,889 |
|
Premium
finance receivables - life insurance |
168 |
|
|
— |
|
|
— |
|
Consumer and
other |
544 |
|
|
457 |
|
|
927 |
|
Total
non-performing loans |
$ |
117,586 |
|
|
$ |
113,234 |
|
|
$ |
89,690 |
|
Other real
estate owned |
9,154 |
|
|
11,968 |
|
|
18,481 |
|
Other real
estate owned - from acquisitions |
12,366 |
|
|
12,852 |
|
|
18,117 |
|
Other
repossessed assets |
270 |
|
|
280 |
|
|
113 |
|
Total
non-performing assets |
$ |
139,376 |
|
|
$ |
138,334 |
|
|
$ |
126,401 |
|
TDRs
performing under the contractual terms of the loan agreement |
$ |
48,305 |
|
|
$ |
33,281 |
|
|
$ |
39,562 |
|
Total
non-performing loans by category as a percent of its own
respective category’s period-end balance: |
|
|
|
|
|
Commercial |
0.70 |
% |
|
0.65 |
% |
|
0.20 |
% |
Commercial
real estate |
0.23 |
|
|
0.28 |
|
|
0.33 |
|
Home
equity |
1.49 |
|
|
1.29 |
|
|
1.57 |
|
Residential
real estate |
1.51 |
|
|
1.63 |
|
|
1.98 |
|
Premium
finance receivables - commercial |
0.71 |
|
|
0.67 |
|
|
1.00 |
|
Premium
finance receivables - life insurance |
0.00 |
|
|
— |
|
|
— |
|
Consumer and
other |
0.45 |
|
|
0.38 |
|
|
0.87 |
|
Total loans,
net of unearned income |
0.49 |
% |
|
0.48 |
% |
|
0.41 |
% |
Total
non-performing assets as a percentage of total
assets |
0.43 |
% |
|
0.44 |
% |
|
0.44 |
% |
Allowance for loan losses as a percentage of total
non-performing loans |
134.55 |
% |
|
134.92 |
% |
|
155.54 |
% |
(1) As of the dates shown, no TDRs were past due greater
than 90 days and still accruing interest. |
(2) Non-accrual loans included TDRs totaling $40.1
million, $32.8 million and $8.1 million as of March 31, 2019,
December 31, 2018 and March 31, 2018,
respectively. |
|
The ratio of non-performing assets to total
assets was 0.43% as of March 31, 2019, compared to 0.44% at
December 31, 2018, and 0.44% at March 31, 2018.
Non-performing assets, excluding PCI loans, totaled $139.4 million
at March 31, 2019, compared to $138.3 million at
December 31, 2018 and $126.4 million at March 31, 2018.
Non-performing loans, excluding PCI loans, totaled $117.6 million,
or 0.49% of total loans, at March 31, 2019 compared to $113.2
million, or 0.48% of total loans, at December 31, 2018 and
$89.7 million, or 0.41% of total loans, at March 31, 2018.
OREO of $21.5 million at March 31, 2019 decreased $3.3 million
compared to $24.8 million at December 31, 2018 and decreased
$15.1 million compared to $36.6 million at March 31, 2018.
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 |
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in
thousands) |
2019 |
|
2018 |
|
2018 |
Balance at beginning of
period |
$ |
113,234 |
|
|
$ |
127,227 |
|
|
$ |
90,162 |
|
Additions,
net |
|
24,030 |
|
|
|
18,553 |
|
|
|
6,608 |
|
Return to
performing status |
|
(14,077 |
) |
|
|
(6,155 |
) |
|
|
(3,753 |
) |
Payments
received |
|
(4,024 |
) |
|
|
(16,437 |
) |
|
|
(2,569 |
) |
Transfer to
OREO and other repossessed assets |
|
(82 |
) |
|
|
(970 |
) |
|
|
(1,981 |
) |
Charge-offs |
|
(3,992 |
) |
|
|
(7,161 |
) |
|
|
(3,555 |
) |
Net change
for niche loans (1) |
|
2,497 |
|
|
|
(1,823 |
) |
|
|
4,778 |
|
Balance at end of period |
$ |
117,586 |
|
|
$ |
113,234 |
|
|
$ |
89,690 |
|
(1) This includes activity for premium finance receivables
and indirect consumer loans. |
|
TDRs
The table below presents a summary of TDRs as of
the respective date, presented by loan category and accrual
status:
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in
thousands) |
2019 |
|
2018 |
|
2018 |
Accruing
TDRs: |
|
|
|
|
|
Commercial |
$ |
19,650 |
|
|
$ |
8,545 |
|
|
$ |
19,803 |
|
Commercial
real estate |
14,123 |
|
|
13,895 |
|
|
16,087 |
|
Residential
real estate and other |
14,532 |
|
|
10,841 |
|
|
3,672 |
|
Total
accrual |
$ |
48,305 |
|
|
$ |
33,281 |
|
|
$ |
39,562 |
|
Non-accrual
TDRs: (1) |
|
|
|
|
|
Commercial |
$ |
34,390 |
|
|
$ |
27,774 |
|
|
$ |
1,741 |
|
Commercial
real estate |
1,517 |
|
|
1,552 |
|
|
1,304 |
|
Residential
real estate and other |
4,150 |
|
|
3,495 |
|
|
5,069 |
|
Total
non-accrual |
$ |
40,057 |
|
|
$ |
32,821 |
|
|
$ |
8,114 |
|
Total
TDRs: |
|
|
|
|
|
Commercial |
$ |
54,040 |
|
|
$ |
36,319 |
|
|
$ |
21,544 |
|
Commercial
real estate |
15,640 |
|
|
15,447 |
|
|
17,391 |
|
Residential
real estate and other |
18,682 |
|
|
14,336 |
|
|
8,741 |
|
Total TDRs |
$ |
88,362 |
|
|
$ |
66,102 |
|
|
$ |
47,676 |
|
(1) Included in total non-performing loans. |
|
|
|
|
|
|
|
|
|
|
|
|
Other Real Estate Owned
The table below presents a summary of other real
estate owned, as of March 31, 2019, December 31, 2018 and
March 31, 2018, and shows the activity for the respective
period and the balance for each property type:
|
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in
thousands) |
2019 |
|
2018 |
|
2018 |
Balance at beginning of
period |
$ |
24,820 |
|
|
$ |
28,303 |
|
|
$ |
40,646 |
|
Disposals/resolved |
|
(2,758 |
) |
|
|
(3,848 |
) |
|
|
(3,679 |
) |
Transfers in
at fair value, less costs to sell |
|
32 |
|
|
|
997 |
|
|
|
1,789 |
|
Additions
from acquisition |
|
— |
|
|
|
160 |
|
|
|
— |
|
Fair value
adjustments |
|
(574 |
) |
|
|
(792 |
) |
|
|
(2,158 |
) |
Balance at end of period |
$ |
21,520 |
|
|
$ |
24,820 |
|
|
$ |
36,598 |
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
March 31, |
|
December 31, |
|
March 31, |
Balance by
Property Type |
2019 |
|
2018 |
|
2018 |
Residential real
estate |
$ |
3,037 |
|
|
$ |
3,446 |
|
|
$ |
6,407 |
|
Residential real estate
development |
|
1,139 |
|
|
|
1,426 |
|
|
|
2,229 |
|
Commercial real
estate |
|
17,344 |
|
|
|
19,948 |
|
|
|
27,962 |
|
Total |
$ |
21,520 |
|
|
$ |
24,820 |
|
|
$ |
36,598 |
|
|
Items Impacting Comparative Financial
Results:
Acquisitions
On December 14, 2018, the Company acquired
Elektra Holding Company, LLC ("Elektra"), the parent company of
Chicago Deferred Exchange Company, LLC ("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. The Company recorded
goodwill of $37.6 million on the acquisition.
On December 7, 2018, the Company completed its
acquisition of certain assets and the assumption of certain
liabilities of American Enterprise Bank ("AEB"). Through this asset
acquisition, the Company acquired approximately $164.0 million in
assets, including approximately $119.3 million in loans, and
approximately $150.8 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 $282.8 million in
assets, including approximately $152.7 million in loans, and
approximately $213.1 million in deposits. The Company recorded
goodwill of $26.5 million on the acquisition.
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 two offices, operating one in Salt Lake City and one in
San Diego. The Company recorded goodwill of $9.1 million on the
acquisition.
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, 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, in Dyer, Indiana and in Naples, Florida.
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 2018
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;
- negative effects suffered by us or our customers resulting from
changes in U.S. trade policies;
- 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, WEBCAST AND REPLAY
The Company will hold a conference call at 2:00
p.m. (Central Time) on Tuesday, April 16, 2019 regarding first
quarter 2019 results. Individuals interested in listening should
call (877) 363-5049 and enter Conference ID #5868367. A
simultaneous audio-only webcast and replay of the conference call
may be accessed via the Company’s website at
https://www.wintrust.com, Investor Relations, Investor News and
Events, Presentations & Conference Calls. The text of the
first quarter 2019 earnings press release will be available on the
home page of the Company’s website at https://www.wintrust.com and
at the Investor Relations, Investor News and Events, Press Releases
link on its website.
WINTRUST FINANCIAL
CORPORATION
Supplemental Financial
Information
5 Quarter Trends
|
WINTRUST FINANCIAL CORPORATION - Supplemental Financial
Information |
Selected Financial Highlights - 5 Quarter
Trends |
(Dollars in thousands, except per share data) |
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Selected Financial
Condition Data (at end of period): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
Total loans
(1) |
24,214,629 |
|
|
23,820,691 |
|
|
23,123,951 |
|
|
22,610,560 |
|
|
22,062,134 |
|
Total deposits |
26,804,742 |
|
|
26,094,678 |
|
|
24,916,715 |
|
|
24,365,479 |
|
|
23,279,327 |
|
Junior subordinated
debentures |
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Total shareholders’
equity |
3,371,972 |
|
|
3,267,570 |
|
|
3,179,822 |
|
|
3,106,871 |
|
|
3,031,250 |
|
Selected
Statements of Income Data: |
|
|
|
|
|
|
|
|
|
Net interest income |
261,986 |
|
|
254,088 |
|
|
247,563 |
|
|
238,170 |
|
|
225,082 |
|
Net revenue
(2) |
343,643 |
|
|
329,396 |
|
|
347,493 |
|
|
333,403 |
|
|
310,761 |
|
Net income |
89,146 |
|
|
79,657 |
|
|
91,948 |
|
|
89,580 |
|
|
81,981 |
|
Net income per common
share – Basic |
$ |
1.54 |
|
|
$ |
1.38 |
|
|
$ |
1.59 |
|
|
$ |
1.55 |
|
|
$ |
1.42 |
|
Net income per common
share – Diluted |
$ |
1.52 |
|
|
$ |
1.35 |
|
|
$ |
1.57 |
|
|
$ |
1.53 |
|
|
$ |
1.40 |
|
Selected Financial
Ratios and Other Data: |
|
|
|
|
|
|
|
|
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
Net interest
margin |
3.70 |
% |
|
3.61 |
% |
|
3.59 |
% |
|
3.61 |
% |
|
3.54 |
% |
Net interest margin -
fully taxable equivalent (non-GAAP) (3) |
3.72 |
% |
|
3.63 |
% |
|
3.61 |
% |
|
3.63 |
% |
|
3.56 |
% |
Non-interest income to
average assets |
1.06 |
% |
|
0.99 |
% |
|
1.34 |
% |
|
1.34 |
% |
|
1.25 |
% |
Non-interest expense to
average assets |
2.79 |
% |
|
2.78 |
% |
|
2.87 |
% |
|
2.90 |
% |
|
2.83 |
% |
Net overhead ratio
(4) |
1.72 |
% |
|
1.79 |
% |
|
1.53 |
% |
|
1.57 |
% |
|
1.58 |
% |
Return on average
assets |
1.16 |
% |
|
1.05 |
% |
|
1.24 |
% |
|
1.26 |
% |
|
1.20 |
% |
Return on average common
equity |
11.09 |
% |
|
10.01 |
% |
|
11.86 |
% |
|
11.94 |
% |
|
11.29 |
% |
Return on average tangible
common equity (non-GAAP) (3) |
14.14 |
% |
|
12.48 |
% |
|
14.64 |
% |
|
14.72 |
% |
|
14.02 |
% |
Average total assets |
$ |
31,216,171 |
|
|
$ |
30,179,887 |
|
|
$ |
29,525,109 |
|
|
$ |
28,567,579 |
|
|
$ |
27,809,597 |
|
Average total
shareholders’ equity |
3,309,078 |
|
|
3,200,654 |
|
|
3,131,943 |
|
|
3,064,154 |
|
|
2,995,592 |
|
Average loans to average
deposits ratio |
92.7 |
% |
|
92.4 |
% |
|
92.2 |
% |
|
95.5 |
% |
|
95.2 |
% |
Period-end loans to
deposits ratio |
90.3 |
|
|
91.3 |
|
|
92.8 |
|
|
92.8 |
|
|
94.8 |
|
Common Share Data at
end of period: |
|
|
|
|
|
|
|
|
|
Market price per common
share |
$ |
67.33 |
|
|
$ |
66.49 |
|
|
$ |
84.94 |
|
|
$ |
87.05 |
|
|
$ |
86.05 |
|
Book value per common
share |
$ |
57.33 |
|
|
$ |
55.71 |
|
|
$ |
54.19 |
|
|
$ |
52.94 |
|
|
$ |
51.66 |
|
Tangible common book
value per share (3) |
$ |
46.38 |
|
|
$ |
44.67 |
|
|
$ |
44.16 |
|
|
$ |
43.50 |
|
|
$ |
42.17 |
|
Common shares
outstanding |
56,638,968 |
|
|
56,407,558 |
|
|
56,377,169 |
|
|
56,329,276 |
|
|
56,256,498 |
|
Other Data at end
of period: |
|
|
|
|
|
|
|
|
|
Leverage
Ratio(5) |
9.1 |
% |
|
9.1 |
% |
|
9.3 |
% |
|
9.4 |
% |
|
9.3 |
% |
Tier 1 Capital to
risk-weighted assets (5) |
9.7 |
% |
|
9.7 |
% |
|
10.0 |
% |
|
10.0 |
% |
|
10.0 |
% |
Common equity Tier 1
capital to risk-weighted assets (5) |
9.3 |
% |
|
9.3 |
% |
|
9.5 |
% |
|
9.6 |
% |
|
9.5 |
% |
Total capital to
risk-weighted assets (5) |
11.6 |
% |
|
11.6 |
% |
|
12.0 |
% |
|
12.1 |
% |
|
12.0 |
% |
Allowance for credit
losses (6) |
$ |
159,622 |
|
|
$ |
154,164 |
|
|
$ |
151,001 |
|
|
$ |
144,645 |
|
|
$ |
140,746 |
|
Non-performing loans |
117,586 |
|
|
113,234 |
|
|
127,227 |
|
|
83,282 |
|
|
89,690 |
|
Allowance for credit
losses to total loans (6) |
0.66 |
% |
|
0.65 |
% |
|
0.65 |
% |
|
0.64 |
% |
|
0.64 |
% |
Non-performing loans to
total loans |
0.49 |
% |
|
0.48 |
% |
|
0.55 |
% |
|
0.37 |
% |
|
0.41 |
% |
Number of: |
|
|
|
|
|
|
|
|
|
Bank
subsidiaries |
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
Banking offices |
170 |
|
|
167 |
|
|
166 |
|
|
162 |
|
|
157 |
|
(1)
Excludes mortgage loans held-for-sale. |
(2) Net revenue includes net interest income and
non-interest income. |
(3) See “Supplemental Financial Measures/Ratios” for
additional information on this performance measure/ratio. |
(4) 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. |
(5) Capital ratios for current quarter-end are
estimated. |
(6) The allowance for credit losses includes both the
allowance for loan losses and the allowance for unfunded
lending-related commitments. |
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Consolidated Statements of Condition - 5 Quarter
Trends |
|
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands) |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
$ |
270,765 |
|
|
$ |
392,142 |
|
|
$ |
279,936 |
|
|
$ |
304,580 |
|
|
$ |
231,407 |
|
Federal funds sold and
securities purchased under resale agreements |
58 |
|
|
58 |
|
|
57 |
|
|
62 |
|
|
57 |
|
Interest bearing deposits
with banks |
1,609,852 |
|
|
1,099,594 |
|
|
1,137,044 |
|
|
1,221,407 |
|
|
980,380 |
|
Available-for-sale
securities, at fair value |
2,185,782 |
|
|
2,126,081 |
|
|
2,164,985 |
|
|
1,940,787 |
|
|
1,895,688 |
|
Held-to-maturity
securities, at amortized cost |
1,051,542 |
|
|
1,067,439 |
|
|
966,438 |
|
|
890,834 |
|
|
892,937 |
|
Trading account
securities |
559 |
|
|
1,692 |
|
|
688 |
|
|
862 |
|
|
1,682 |
|
Equity securities with
readily determinable fair value |
47,653 |
|
|
34,717 |
|
|
36,414 |
|
|
37,839 |
|
|
37,832 |
|
Federal Home Loan Bank and
Federal Reserve Bank stock |
89,013 |
|
|
91,354 |
|
|
99,998 |
|
|
96,699 |
|
|
104,956 |
|
Brokerage customer
receivables |
14,219 |
|
|
12,609 |
|
|
15,649 |
|
|
16,649 |
|
|
24,531 |
|
Mortgage loans
held-for-sale |
248,557 |
|
|
264,070 |
|
|
338,111 |
|
|
455,712 |
|
|
411,505 |
|
Loans, net of unearned
income |
24,214,629 |
|
|
23,820,691 |
|
|
23,123,951 |
|
|
22,610,560 |
|
|
22,062,134 |
|
Allowance for loan
losses |
(158,212 |
) |
|
(152,770 |
) |
|
(149,756 |
) |
|
(143,402 |
) |
|
(139,503 |
) |
Net
loans |
24,056,417 |
|
|
23,667,921 |
|
|
22,974,195 |
|
|
22,467,158 |
|
|
21,922,631 |
|
Premises and equipment,
net |
676,037 |
|
|
671,169 |
|
|
664,469 |
|
|
639,345 |
|
|
626,687 |
|
Lease investments,
net |
224,240 |
|
|
233,208 |
|
|
199,241 |
|
|
194,160 |
|
|
190,775 |
|
Accrued interest
receivable and other assets |
888,492 |
|
|
696,707 |
|
|
700,568 |
|
|
666,673 |
|
|
601,794 |
|
Trade date securities
receivable |
375,211 |
|
|
263,523 |
|
|
— |
|
|
450 |
|
|
— |
|
Goodwill |
573,658 |
|
|
573,141 |
|
|
537,560 |
|
|
509,957 |
|
|
511,497 |
|
Other intangible
assets |
46,566 |
|
|
49,424 |
|
|
27,378 |
|
|
21,414 |
|
|
22,413 |
|
Total assets |
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
Liabilities and
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Non-interest
bearing |
$ |
6,353,456 |
|
|
$ |
6,569,880 |
|
|
$ |
6,399,213 |
|
|
$ |
6,520,724 |
|
|
$ |
6,612,319 |
|
Interest
bearing |
20,451,286 |
|
|
19,524,798 |
|
|
18,517,502 |
|
|
17,844,755 |
|
|
16,667,008 |
|
Total
deposits |
26,804,742 |
|
|
26,094,678 |
|
|
24,916,715 |
|
|
24,365,479 |
|
|
23,279,327 |
|
Federal Home Loan Bank
advances |
576,353 |
|
|
426,326 |
|
|
615,000 |
|
|
667,000 |
|
|
915,000 |
|
Other borrowings |
372,194 |
|
|
393,855 |
|
|
373,571 |
|
|
255,701 |
|
|
247,092 |
|
Subordinated notes |
139,235 |
|
|
139,210 |
|
|
139,172 |
|
|
139,148 |
|
|
139,111 |
|
Junior subordinated
debentures |
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Accrued interest payable
and other liabilities |
840,559 |
|
|
669,644 |
|
|
664,885 |
|
|
676,823 |
|
|
591,426 |
|
Total
liabilities |
28,986,649 |
|
|
27,977,279 |
|
|
26,962,909 |
|
|
26,357,717 |
|
|
25,425,522 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
Preferred
stock |
125,000 |
|
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
Common
stock |
56,765 |
|
|
56,518 |
|
|
56,486 |
|
|
56,437 |
|
|
56,364 |
|
Surplus |
1,565,185 |
|
|
1,557,984 |
|
|
1,553,353 |
|
|
1,547,511 |
|
|
1,540,673 |
|
Treasury
stock |
(6,650 |
) |
|
(5,634 |
) |
|
(5,547 |
) |
|
(5,355 |
) |
|
(5,355 |
) |
Retained
earnings |
1,682,016 |
|
|
1,610,574 |
|
|
1,543,680 |
|
|
1,464,494 |
|
|
1,387,663 |
|
Accumulated
other comprehensive loss |
(50,344 |
) |
|
(76,872 |
) |
|
(93,150 |
) |
|
(81,216 |
) |
|
(73,095 |
) |
Total
shareholders’ equity |
3,371,972 |
|
|
3,267,570 |
|
|
3,179,822 |
|
|
3,106,871 |
|
|
3,031,250 |
|
Total liabilities and shareholders’ equity |
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
$ |
28,456,772 |
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Consolidated Statements of Income (Unaudited) - 5 Quarter
Trends |
|
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands, except
per share data) |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Interest
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
fees on loans |
$ |
296,987 |
|
|
$ |
283,311 |
|
|
$ |
271,134 |
|
|
$ |
255,063 |
|
|
$ |
234,994 |
|
Mortgage
loans held-for-sale |
2,209 |
|
|
3,409 |
|
|
5,285 |
|
|
4,226 |
|
|
2,818 |
|
Interest
bearing deposits with banks |
5,300 |
|
|
5,628 |
|
|
5,423 |
|
|
3,243 |
|
|
2,796 |
|
Federal
funds sold and securities purchased under resale agreements |
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
Investment
securities |
27,956 |
|
|
26,656 |
|
|
21,710 |
|
|
19,888 |
|
|
19,128 |
|
Trading
account securities |
8 |
|
|
14 |
|
|
11 |
|
|
4 |
|
|
14 |
|
Federal Home
Loan Bank and Federal Reserve Bank stock |
1,355 |
|
|
1,343 |
|
|
1,235 |
|
|
1,455 |
|
|
1,298 |
|
Brokerage
customer receivables |
155 |
|
|
235 |
|
|
164 |
|
|
167 |
|
|
157 |
|
Total
interest income |
333,970 |
|
|
320,596 |
|
|
304,962 |
|
|
284,047 |
|
|
261,205 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
Interest on
deposits |
60,976 |
|
|
55,975 |
|
|
48,736 |
|
|
35,293 |
|
|
26,549 |
|
Interest on
Federal Home Loan Bank advances |
2,450 |
|
|
2,563 |
|
|
1,947 |
|
|
4,263 |
|
|
3,639 |
|
Interest on
other borrowings |
3,633 |
|
|
3,199 |
|
|
2,003 |
|
|
1,698 |
|
|
1,699 |
|
Interest on
subordinated notes |
1,775 |
|
|
1,788 |
|
|
1,773 |
|
|
1,787 |
|
|
1,773 |
|
Interest on
junior subordinated debentures |
3,150 |
|
|
2,983 |
|
|
2,940 |
|
|
2,836 |
|
|
2,463 |
|
Total
interest expense |
71,984 |
|
|
66,508 |
|
|
57,399 |
|
|
45,877 |
|
|
36,123 |
|
Net interest
income |
261,986 |
|
|
254,088 |
|
|
247,563 |
|
|
238,170 |
|
|
225,082 |
|
Provision for credit
losses |
10,624 |
|
|
10,401 |
|
|
11,042 |
|
|
5,043 |
|
|
8,346 |
|
Net interest income after
provision for credit losses |
251,362 |
|
|
243,687 |
|
|
236,521 |
|
|
233,127 |
|
|
216,736 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
Wealth
management |
23,977 |
|
|
22,726 |
|
|
22,634 |
|
|
22,617 |
|
|
22,986 |
|
Mortgage
banking |
18,158 |
|
|
24,182 |
|
|
42,014 |
|
|
39,834 |
|
|
30,960 |
|
Service
charges on deposit accounts |
8,848 |
|
|
9,065 |
|
|
9,331 |
|
|
9,151 |
|
|
8,857 |
|
Gains
(losses) on investment securities, net |
1,364 |
|
|
(2,649 |
) |
|
90 |
|
|
12 |
|
|
(351 |
) |
Fees from
covered call options |
1,784 |
|
|
626 |
|
|
627 |
|
|
669 |
|
|
1,597 |
|
Trading
(losses) gains, net |
(171 |
) |
|
(155 |
) |
|
(61 |
) |
|
124 |
|
|
103 |
|
Operating
lease income, net |
10,796 |
|
|
10,882 |
|
|
9,132 |
|
|
8,746 |
|
|
9,691 |
|
Other |
16,901 |
|
|
10,631 |
|
|
16,163 |
|
|
14,080 |
|
|
11,836 |
|
Total
non-interest income |
81,657 |
|
|
75,308 |
|
|
99,930 |
|
|
95,233 |
|
|
85,679 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits |
125,723 |
|
|
122,111 |
|
|
123,855 |
|
|
121,675 |
|
|
112,436 |
|
Equipment |
11,770 |
|
|
11,523 |
|
|
10,827 |
|
|
10,527 |
|
|
10,072 |
|
Operating
lease equipment depreciation |
8,319 |
|
|
8,462 |
|
|
7,370 |
|
|
6,940 |
|
|
6,533 |
|
Occupancy,
net |
16,245 |
|
|
15,980 |
|
|
14,404 |
|
|
13,663 |
|
|
13,767 |
|
Data
processing |
7,525 |
|
|
8,447 |
|
|
9,335 |
|
|
8,752 |
|
|
8,493 |
|
Advertising
and marketing |
9,858 |
|
|
9,414 |
|
|
11,120 |
|
|
11,782 |
|
|
8,824 |
|
Professional
fees |
5,556 |
|
|
9,259 |
|
|
9,914 |
|
|
6,484 |
|
|
6,649 |
|
Amortization
of other intangible assets |
2,942 |
|
|
1,407 |
|
|
1,163 |
|
|
997 |
|
|
1,004 |
|
FDIC
insurance |
3,576 |
|
|
4,044 |
|
|
4,205 |
|
|
4,598 |
|
|
4,362 |
|
OREO
expense, net |
632 |
|
|
1,618 |
|
|
596 |
|
|
980 |
|
|
2,926 |
|
Other |
22,228 |
|
|
19,068 |
|
|
20,848 |
|
|
20,371 |
|
|
19,283 |
|
Total
non-interest expense |
214,374 |
|
|
211,333 |
|
|
213,637 |
|
|
206,769 |
|
|
194,349 |
|
Income before taxes |
118,645 |
|
|
107,662 |
|
|
122,814 |
|
|
121,591 |
|
|
108,066 |
|
Income tax expense |
29,499 |
|
|
28,005 |
|
|
30,866 |
|
|
32,011 |
|
|
26,085 |
|
Net
income |
$ |
89,146 |
|
|
$ |
79,657 |
|
|
$ |
91,948 |
|
|
$ |
89,580 |
|
|
$ |
81,981 |
|
Preferred stock
dividends |
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
Net income
applicable to common shares |
$ |
87,096 |
|
|
$ |
77,607 |
|
|
$ |
89,898 |
|
|
$ |
87,530 |
|
|
$ |
79,931 |
|
Net income per
common share - Basic |
$ |
1.54 |
|
|
$ |
1.38 |
|
|
$ |
1.59 |
|
|
$ |
1.55 |
|
|
$ |
1.42 |
|
Net income per
common share - Diluted |
$ |
1.52 |
|
|
$ |
1.35 |
|
|
$ |
1.57 |
|
|
$ |
1.53 |
|
|
$ |
1.40 |
|
Cash dividends
declared per common share |
$ |
0.25 |
|
|
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
0.19 |
|
Weighted average common
shares outstanding |
56,529 |
|
|
56,395 |
|
|
56,366 |
|
|
56,299 |
|
|
56,137 |
|
Dilutive potential common
shares |
699 |
|
|
892 |
|
|
918 |
|
|
928 |
|
|
888 |
|
Average common shares and dilutive common shares |
57,228 |
|
|
57,287 |
|
|
57,284 |
|
|
57,227 |
|
|
57,025 |
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Period End Loan Balances - 5 Quarter Trends |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in
thousands) |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
7,994,191 |
|
|
$ |
7,828,538 |
|
|
$ |
7,473,958 |
|
|
$ |
7,289,060 |
|
|
$ |
7,060,871 |
|
Commercial
real estate |
6,973,505 |
|
|
6,933,252 |
|
|
6,746,774 |
|
|
6,575,084 |
|
|
6,633,520 |
|
Home
equity |
528,448 |
|
|
552,343 |
|
|
578,844 |
|
|
593,500 |
|
|
626,547 |
|
Residential
real estate |
1,053,524 |
|
|
1,002,464 |
|
|
924,250 |
|
|
895,470 |
|
|
869,104 |
|
Premium
finance receivables - commercial |
2,988,788 |
|
|
2,841,659 |
|
|
2,885,327 |
|
|
2,833,452 |
|
|
2,576,150 |
|
Premium
finance receivables - life insurance |
4,555,369 |
|
|
4,541,794 |
|
|
4,398,971 |
|
|
4,302,288 |
|
|
4,189,961 |
|
Consumer and
other |
120,804 |
|
|
120,641 |
|
|
115,827 |
|
|
121,706 |
|
|
105,981 |
|
Total loans,
net of unearned income |
$ |
24,214,629 |
|
|
$ |
23,820,691 |
|
|
$ |
23,123,951 |
|
|
$ |
22,610,560 |
|
|
$ |
22,062,134 |
|
Mix: |
|
|
|
|
|
|
|
|
|
Commercial |
33 |
% |
|
33 |
% |
|
32 |
% |
|
32 |
% |
|
32 |
% |
Commercial
real estate |
29 |
|
|
29 |
|
|
29 |
|
|
29 |
|
|
30 |
|
Home
equity |
2 |
|
|
2 |
|
|
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 |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in
thousands) |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
bearing |
$ |
6,353,456 |
|
|
$ |
6,569,880 |
|
|
$ |
6,399,213 |
|
|
$ |
6,520,724 |
|
|
$ |
6,612,319 |
|
NOW and
interest bearing demand deposits |
2,948,576 |
|
|
2,897,133 |
|
|
2,512,259 |
|
|
2,452,474 |
|
|
2,315,122 |
|
Wealth
management deposits (1) |
3,328,781 |
|
|
2,996,764 |
|
|
2,520,120 |
|
|
2,523,572 |
|
|
2,495,134 |
|
Money
market |
6,093,596 |
|
|
5,704,866 |
|
|
5,429,921 |
|
|
5,205,678 |
|
|
4,617,122 |
|
Savings |
2,729,626 |
|
|
2,665,194 |
|
|
2,595,164 |
|
|
2,763,062 |
|
|
2,901,504 |
|
Time
certificates of deposit |
5,350,707 |
|
|
5,260,841 |
|
|
5,460,038 |
|
|
4,899,969 |
|
|
4,338,126 |
|
Total
deposits |
$ |
26,804,742 |
|
|
$ |
26,094,678 |
|
|
$ |
24,916,715 |
|
|
$ |
24,365,479 |
|
|
$ |
23,279,327 |
|
Mix: |
|
|
|
|
|
|
|
|
|
Non-interest
bearing |
24 |
% |
|
25 |
% |
|
26 |
% |
|
27 |
% |
|
28 |
% |
NOW and
interest bearing demand deposits |
11 |
|
|
11 |
|
|
10 |
|
|
10 |
|
|
10 |
|
Wealth
management deposits (1) |
12 |
|
|
12 |
|
|
10 |
|
|
11 |
|
|
11 |
|
Money
market |
23 |
|
|
22 |
|
|
22 |
|
|
21 |
|
|
20 |
|
Savings |
10 |
|
|
10 |
|
|
10 |
|
|
11 |
|
|
12 |
|
Time
certificates of deposit |
20 |
|
|
20 |
|
|
22 |
|
|
20 |
|
|
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 |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in
thousands) |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Net interest income
(non-GAAP) |
$ |
263,587 |
|
|
$ |
255,658 |
|
|
$ |
249,082 |
|
|
$ |
239,549 |
|
|
$ |
226,286 |
|
Call option income |
1,784 |
|
|
626 |
|
|
627 |
|
|
669 |
|
|
1,597 |
|
Net interest income
(non-GAAP), including call option income |
$ |
265,371 |
|
|
$ |
256,284 |
|
|
$ |
249,709 |
|
|
$ |
240,218 |
|
|
$ |
227,883 |
|
Yield on earning
assets |
4.74 |
% |
|
4.58 |
% |
|
4.45 |
% |
|
4.32 |
% |
|
4.13 |
% |
Rate on interest-bearing
liabilities |
1.40 |
|
|
1.33 |
|
|
1.17 |
|
|
1.00 |
|
|
0.83 |
|
Rate spread |
3.34 |
% |
|
3.25 |
% |
|
3.28 |
% |
|
3.32 |
% |
|
3.30 |
% |
Less: Fully
tax-equivalent adjustment |
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
Net free funds
contribution |
0.38 |
|
|
0.38 |
|
|
0.33 |
|
|
0.31 |
|
|
0.26 |
|
Net interest margin
(GAAP) |
3.70 |
% |
|
3.61 |
% |
|
3.59 |
% |
|
3.61 |
% |
|
3.54 |
% |
Fully tax-equivalent
adjustment |
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
Net interest margin
(non-GAAP) |
3.72 |
% |
|
3.63 |
% |
|
3.61 |
% |
|
3.63 |
% |
|
3.56 |
% |
Call option income |
0.03 |
|
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
0.03 |
|
Net interest margin (non-GAAP), including call option income |
3.75 |
% |
|
3.64 |
% |
|
3.62 |
% |
|
3.64 |
% |
|
3.59 |
% |
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Net Interest Margin (Including Call Option Income) - YTD
Trends |
|
|
|
Three Months Ended |
|
|
|
|
March 31, |
|
Years Ended December 31, |
(Dollars in
thousands) |
|
2019 |
|
2018 |
|
2017 |
|
2016 |
|
2015 |
Net interest income
(non-GAAP) |
|
$ |
263,587 |
|
|
$ |
970,575 |
|
|
$ |
839,563 |
|
|
$ |
728,145 |
|
|
$ |
646,238 |
|
Call option income |
|
1,784 |
|
|
3,519 |
|
|
4,402 |
|
|
11,470 |
|
|
15,364 |
|
Net interest income
(non-GAAP), including call option income |
|
$ |
265,371 |
|
|
$ |
974,094 |
|
|
$ |
843,965 |
|
|
$ |
739,615 |
|
|
$ |
661,602 |
|
Yield on earning
assets |
|
4.74 |
% |
|
4.38 |
% |
|
3.91 |
% |
|
3.67 |
% |
|
3.76 |
% |
Rate on
interest-bearing liabilities |
|
1.40 |
|
|
1.09 |
|
|
0.67 |
|
|
0.57 |
|
|
0.54 |
|
Rate spread |
|
3.34 |
% |
|
3.29 |
% |
|
3.24 |
% |
|
3.10 |
% |
|
3.22 |
% |
Less: Fully
tax-equivalent adjustment |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.03 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
Net free funds
contribution |
|
0.38 |
|
|
0.32 |
|
|
0.20 |
|
|
0.16 |
|
|
0.14 |
|
Net interest margin
(GAAP) |
|
3.70 |
% |
|
3.59 |
% |
|
3.41 |
% |
|
3.24 |
% |
|
3.34 |
% |
Fully tax-equivalent
adjustment |
|
0.02 |
|
|
0.02 |
|
|
0.03 |
|
|
0.02 |
|
|
0.02 |
|
Net interest margin
(non-GAAP) |
|
3.72 |
% |
|
3.61 |
% |
|
3.44 |
% |
|
3.26 |
% |
|
3.36 |
% |
Call option income |
|
0.03 |
|
|
0.01 |
|
|
0.02 |
|
|
0.05 |
|
|
0.08 |
|
Net
interest margin (non-GAAP), including call option income |
|
3.75 |
% |
|
3.62 |
% |
|
3.46 |
% |
|
3.31 |
% |
|
3.44 |
% |
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Quarterly Average Balances - 5 Quarter Trends |
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands) |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Interest-bearing deposits
with banks and cash equivalents |
$ |
897,629 |
|
|
$ |
1,042,860 |
|
|
$ |
998,004 |
|
|
$ |
759,425 |
|
|
$ |
749,973 |
|
Investment securities |
3,630,577 |
|
|
3,347,496 |
|
|
3,046,272 |
|
|
2,890,828 |
|
|
2,892,617 |
|
FHLB and FRB stock |
94,882 |
|
|
98,084 |
|
|
88,335 |
|
|
115,119 |
|
|
105,414 |
|
Liquidity management
assets |
$ |
4,623,088 |
|
|
$ |
4,488,440 |
|
|
$ |
4,132,611 |
|
|
$ |
3,765,372 |
|
|
$ |
3,748,004 |
|
Other earning assets |
13,591 |
|
|
16,204 |
|
|
17,862 |
|
|
21,244 |
|
|
27,571 |
|
Mortgage loans
held-for-sale |
188,190 |
|
|
265,717 |
|
|
380,235 |
|
|
403,967 |
|
|
281,181 |
|
Loans, net of unearned
income |
23,880,916 |
|
|
23,164,154 |
|
|
22,823,378 |
|
|
22,283,541 |
|
|
21,711,342 |
|
Total
earning assets |
$ |
28,705,785 |
|
|
$ |
27,934,515 |
|
|
$ |
27,354,086 |
|
|
$ |
26,474,124 |
|
|
$ |
25,768,098 |
|
Allowance for loan
losses |
(157,782 |
) |
|
(154,438 |
) |
|
(148,503 |
) |
|
(147,192 |
) |
|
(143,108 |
) |
Cash and due from
banks |
283,019 |
|
|
271,403 |
|
|
268,006 |
|
|
270,240 |
|
|
254,489 |
|
Other assets |
2,385,149 |
|
|
2,128,407 |
|
|
2,051,520 |
|
|
1,970,407 |
|
|
1,930,118 |
|
Total
assets |
$ |
31,216,171 |
|
|
$ |
30,179,887 |
|
|
$ |
29,525,109 |
|
|
$ |
28,567,579 |
|
|
$ |
27,809,597 |
|
NOW and interest bearing
demand deposits |
$ |
2,803,338 |
|
|
$ |
2,671,283 |
|
|
$ |
2,519,445 |
|
|
$ |
2,295,268 |
|
|
$ |
2,255,692 |
|
Wealth management
deposits |
2,614,035 |
|
|
2,289,904 |
|
|
2,517,141 |
|
|
2,365,191 |
|
|
2,250,139 |
|
Money market accounts |
5,915,525 |
|
|
5,632,268 |
|
|
5,369,324 |
|
|
4,883,645 |
|
|
4,520,620 |
|
Savings accounts |
2,715,422 |
|
|
2,553,133 |
|
|
2,672,077 |
|
|
2,702,665 |
|
|
2,813,772 |
|
Time deposits |
5,267,796 |
|
|
5,381,029 |
|
|
5,214,637 |
|
|
4,557,187 |
|
|
4,322,111 |
|
Interest-bearing
deposits |
$ |
19,316,116 |
|
|
$ |
18,527,617 |
|
|
$ |
18,292,624 |
|
|
$ |
16,803,956 |
|
|
$ |
16,162,334 |
|
Federal Home Loan Bank
advances |
594,335 |
|
|
551,846 |
|
|
429,739 |
|
|
1,006,407 |
|
|
872,811 |
|
Other borrowings |
465,571 |
|
|
385,878 |
|
|
268,278 |
|
|
240,066 |
|
|
263,125 |
|
Subordinated notes |
139,217 |
|
|
139,186 |
|
|
139,155 |
|
|
139,125 |
|
|
139,094 |
|
Junior subordinated
debentures |
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Total
interest-bearing liabilities |
$ |
20,768,805 |
|
|
$ |
19,858,093 |
|
|
$ |
19,383,362 |
|
|
$ |
18,443,120 |
|
|
$ |
17,690,930 |
|
Non-interest bearing
deposits |
6,444,378 |
|
|
6,542,228 |
|
|
6,461,195 |
|
|
6,539,731 |
|
|
6,639,845 |
|
Other liabilities |
693,910 |
|
|
578,912 |
|
|
548,609 |
|
|
520,574 |
|
|
483,230 |
|
Equity |
3,309,078 |
|
|
3,200,654 |
|
|
3,131,943 |
|
|
3,064,154 |
|
|
2,995,592 |
|
Total liabilities and shareholders’ equity |
$ |
31,216,171 |
|
|
$ |
30,179,887 |
|
|
$ |
29,525,109 |
|
|
$ |
28,567,579 |
|
|
$ |
27,809,597 |
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Net Interest Margin - 5 Quarter Trends |
|
|
Three Months Ended |
|
March 31,
2019 |
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
|
March 31,
2018 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks and cash equivalents |
2.39 |
% |
|
2.14 |
% |
|
2.16 |
% |
|
1.71 |
% |
|
1.51 |
% |
Investment securities |
3.19 |
|
|
3.23 |
|
|
2.90 |
|
|
2.84 |
|
|
2.76 |
|
FHLB and FRB stock |
5.79 |
|
|
5.43 |
|
|
5.54 |
|
|
5.07 |
|
|
4.99 |
|
Liquidity management
assets |
3.09 |
% |
|
3.02 |
% |
|
2.78 |
% |
|
2.68 |
% |
|
2.57 |
% |
Other earning assets |
4.91 |
|
|
6.19 |
|
|
3.95 |
|
|
3.24 |
|
|
2.56 |
|
Mortgage loans
held-for-sale |
4.76 |
|
|
5.09 |
|
|
5.51 |
|
|
4.20 |
|
|
4.06 |
|
Loans, net of unearned
income |
5.06 |
|
|
4.87 |
|
|
4.73 |
|
|
4.61 |
|
|
4.40 |
|
Total
earning assets |
4.74 |
% |
|
4.58 |
% |
|
4.45 |
% |
|
4.32 |
% |
|
4.13 |
% |
Rate paid on: |
|
|
|
|
|
|
|
|
|
NOW and interest bearing
demand deposits |
0.67 |
% |
|
0.60 |
% |
|
0.39 |
% |
|
0.33 |
% |
|
0.25 |
% |
Wealth management
deposits |
1.09 |
|
|
1.23 |
|
|
1.31 |
|
|
1.19 |
|
|
0.98 |
|
Money market accounts |
1.33 |
|
|
1.19 |
|
|
0.98 |
|
|
0.67 |
|
|
0.42 |
|
Savings accounts |
0.63 |
|
|
0.48 |
|
|
0.43 |
|
|
0.40 |
|
|
0.39 |
|
Time deposits |
1.98 |
|
|
1.83 |
|
|
1.66 |
|
|
1.37 |
|
|
1.16 |
|
Interest-bearing
deposits |
1.29 |
% |
|
1.20 |
% |
|
1.06 |
% |
|
0.84 |
% |
|
0.67 |
% |
Federal Home Loan Bank
advances |
1.67 |
|
|
1.84 |
|
|
1.80 |
|
|
1.70 |
|
|
1.69 |
|
Other borrowings |
3.16 |
|
|
3.29 |
|
|
2.96 |
|
|
2.84 |
|
|
2.62 |
|
Subordinated notes |
5.10 |
|
|
5.14 |
|
|
5.10 |
|
|
5.14 |
|
|
5.10 |
|
Junior subordinated
debentures |
4.97 |
|
|
4.60 |
|
|
4.54 |
|
|
4.42 |
|
|
3.89 |
|
Total
interest-bearing liabilities |
1.40 |
% |
|
1.33 |
% |
|
1.17 |
% |
|
1.00 |
% |
|
0.83 |
% |
Interest rate spread |
3.34 |
% |
|
3.25 |
% |
|
3.28 |
% |
|
3.32 |
% |
|
3.30 |
% |
Less: Fully
tax-equivalent adjustment |
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
Net free
funds/contribution |
0.38 |
|
|
0.38 |
|
|
0.33 |
|
|
0.31 |
|
|
0.26 |
|
Net interest margin
(GAAP) |
3.70 |
% |
|
3.61 |
% |
|
3.59 |
% |
|
3.61 |
% |
|
3.54 |
% |
Fully tax-equivalent
adjustment |
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
Net interest margin (non-GAAP) |
3.72 |
% |
|
3.63 |
% |
|
3.61 |
% |
|
3.63 |
% |
|
3.56 |
% |
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Non-Interest Income - 5 Quarter Trends |
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands) |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Brokerage |
$ |
4,516 |
|
|
$ |
4,997 |
|
|
$ |
5,579 |
|
|
$ |
5,784 |
|
|
$ |
6,031 |
|
Trust and asset
management |
19,461 |
|
|
17,729 |
|
|
17,055 |
|
|
16,833 |
|
|
16,955 |
|
Total wealth
management |
23,977 |
|
|
22,726 |
|
|
22,634 |
|
|
22,617 |
|
|
22,986 |
|
Mortgage banking |
18,158 |
|
|
24,182 |
|
|
42,014 |
|
|
39,834 |
|
|
30,960 |
|
Service charges on deposit
accounts |
8,848 |
|
|
9,065 |
|
|
9,331 |
|
|
9,151 |
|
|
8,857 |
|
Gains (losses) on
investment securities, net |
1,364 |
|
|
(2,649 |
) |
|
90 |
|
|
12 |
|
|
(351 |
) |
Fees from covered call
options |
1,784 |
|
|
626 |
|
|
627 |
|
|
669 |
|
|
1,597 |
|
Trading (losses) gains,
net |
(171 |
) |
|
(155 |
) |
|
(61 |
) |
|
124 |
|
|
103 |
|
Operating lease income,
net |
10,796 |
|
|
10,882 |
|
|
9,132 |
|
|
8,746 |
|
|
9,691 |
|
Other: |
|
|
|
|
|
|
|
|
|
Interest
rate swap fees |
2,831 |
|
|
2,602 |
|
|
2,359 |
|
|
3,829 |
|
|
2,237 |
|
BOLI |
1,591 |
|
|
(466 |
) |
|
3,190 |
|
|
1,544 |
|
|
714 |
|
Administrative services |
1,030 |
|
|
1,260 |
|
|
1,099 |
|
|
1,205 |
|
|
1,061 |
|
Foreign
currency remeasurement gain (loss) |
464 |
|
|
(1,149 |
) |
|
348 |
|
|
(544 |
) |
|
(328 |
) |
Early
pay-offs of capital leases |
5 |
|
|
3 |
|
|
11 |
|
|
554 |
|
|
33 |
|
Miscellaneous |
10,980 |
|
|
8,381 |
|
|
9,156 |
|
|
7,492 |
|
|
8,119 |
|
Total other
income |
16,901 |
|
|
10,631 |
|
|
16,163 |
|
|
14,080 |
|
|
11,836 |
|
Total Non-Interest Income |
$ |
81,657 |
|
|
$ |
75,308 |
|
|
$ |
99,930 |
|
|
$ |
95,233 |
|
|
$ |
85,679 |
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Non-Interest Expense - 5 Quarter Trends |
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands) |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Salaries and employee
benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
$ |
74,037 |
|
|
$ |
67,708 |
|
|
$ |
69,893 |
|
|
$ |
66,976 |
|
|
$ |
61,986 |
|
Commissions
and incentive compensation |
31,599 |
|
|
33,656 |
|
|
34,046 |
|
|
35,907 |
|
|
31,949 |
|
Benefits |
20,087 |
|
|
20,747 |
|
|
19,916 |
|
|
18,792 |
|
|
18,501 |
|
Total
salaries and employee benefits |
125,723 |
|
|
122,111 |
|
|
123,855 |
|
|
121,675 |
|
|
112,436 |
|
Equipment |
11,770 |
|
|
11,523 |
|
|
10,827 |
|
|
10,527 |
|
|
10,072 |
|
Operating lease equipment
depreciation |
8,319 |
|
|
8,462 |
|
|
7,370 |
|
|
6,940 |
|
|
6,533 |
|
Occupancy, net |
16,245 |
|
|
15,980 |
|
|
14,404 |
|
|
13,663 |
|
|
13,767 |
|
Data processing |
7,525 |
|
|
8,447 |
|
|
9,335 |
|
|
8,752 |
|
|
8,493 |
|
Advertising and
marketing |
9,858 |
|
|
9,414 |
|
|
11,120 |
|
|
11,782 |
|
|
8,824 |
|
Professional fees |
5,556 |
|
|
9,259 |
|
|
9,914 |
|
|
6,484 |
|
|
6,649 |
|
Amortization of other
intangible assets |
2,942 |
|
|
1,407 |
|
|
1,163 |
|
|
997 |
|
|
1,004 |
|
FDIC insurance |
3,576 |
|
|
4,044 |
|
|
4,205 |
|
|
4,598 |
|
|
4,362 |
|
OREO expense, net |
632 |
|
|
1,618 |
|
|
596 |
|
|
980 |
|
|
2,926 |
|
Other: |
|
|
|
|
|
|
|
|
|
Commissions
- 3rd party brokers |
718 |
|
|
779 |
|
|
1,059 |
|
|
1,174 |
|
|
1,252 |
|
Postage |
2,450 |
|
|
2,047 |
|
|
2,205 |
|
|
2,567 |
|
|
1,866 |
|
Miscellaneous |
19,060 |
|
|
16,242 |
|
|
17,584 |
|
|
16,630 |
|
|
16,165 |
|
Total other
expense |
22,228 |
|
|
19,068 |
|
|
20,848 |
|
|
20,371 |
|
|
19,283 |
|
Total Non-Interest Expense |
$ |
214,374 |
|
|
$ |
211,333 |
|
|
$ |
213,637 |
|
|
$ |
206,769 |
|
|
$ |
194,349 |
|
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Allowance for Credit Losses - 5 Quarter
Trends |
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in
thousands) |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Allowance for loan
losses at beginning of period |
$ |
152,770 |
|
|
$ |
149,756 |
|
|
$ |
143,402 |
|
|
$ |
139,503 |
|
|
$ |
137,905 |
|
Provision for
credit losses |
10,624 |
|
|
10,401 |
|
|
11,042 |
|
|
5,043 |
|
|
8,346 |
|
Other
adjustments |
(27 |
) |
|
(79 |
) |
|
(18 |
) |
|
(44 |
) |
|
(40 |
) |
Reclassification
(to) from allowance for unfunded lending-related
commitments |
(16 |
) |
|
(150 |
) |
|
(2 |
) |
|
— |
|
|
26 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
Commercial |
503 |
|
|
6,416 |
|
|
3,219 |
|
|
2,210 |
|
|
2,687 |
|
Commercial
real estate |
3,734 |
|
|
219 |
|
|
208 |
|
|
155 |
|
|
813 |
|
Home
equity |
88 |
|
|
715 |
|
|
561 |
|
|
612 |
|
|
357 |
|
Residential
real estate |
3 |
|
|
267 |
|
|
337 |
|
|
180 |
|
|
571 |
|
Premium
finance receivables - commercial |
2,210 |
|
|
1,741 |
|
|
2,512 |
|
|
3,254 |
|
|
4,721 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and
other |
102 |
|
|
148 |
|
|
144 |
|
|
459 |
|
|
129 |
|
Total
charge-offs |
6,640 |
|
|
9,506 |
|
|
6,981 |
|
|
6,870 |
|
|
9,278 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
Commercial |
318 |
|
|
225 |
|
|
304 |
|
|
666 |
|
|
262 |
|
Commercial
real estate |
480 |
|
|
1,364 |
|
|
193 |
|
|
2,387 |
|
|
1,687 |
|
Home
equity |
62 |
|
|
105 |
|
|
142 |
|
|
171 |
|
|
123 |
|
Residential
real estate |
29 |
|
|
47 |
|
|
466 |
|
|
1,522 |
|
|
40 |
|
Premium
finance receivables - commercial |
556 |
|
|
567 |
|
|
1,142 |
|
|
975 |
|
|
385 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and
other |
56 |
|
|
40 |
|
|
66 |
|
|
49 |
|
|
47 |
|
Total
recoveries |
1,501 |
|
|
2,348 |
|
|
2,313 |
|
|
5,770 |
|
|
2,544 |
|
Net
charge-offs |
(5,139 |
) |
|
(7,158 |
) |
|
(4,668 |
) |
|
(1,100 |
) |
|
(6,734 |
) |
Allowance for loan
losses at period end |
$ |
158,212 |
|
|
$ |
152,770 |
|
|
$ |
149,756 |
|
|
$ |
143,402 |
|
|
$ |
139,503 |
|
Allowance for
unfunded lending-related commitments at period end |
1,410 |
|
|
1,394 |
|
|
1,245 |
|
|
1,243 |
|
|
1,243 |
|
Allowance for
credit losses at period end |
$ |
159,622 |
|
|
$ |
154,164 |
|
|
$ |
151,001 |
|
|
$ |
144,645 |
|
|
$ |
140,746 |
|
Annualized net
charge-offs (recoveries) by category as a percentage of its own
respective category’s average: |
|
|
|
|
|
|
|
|
|
Commercial |
0.01 |
% |
|
0.33 |
% |
|
0.16 |
% |
|
0.09 |
% |
|
0.14 |
% |
Commercial
real estate |
0.19 |
|
|
(0.07 |
) |
|
0.00 |
|
|
(0.14 |
) |
|
(0.05 |
) |
Home
equity |
0.02 |
|
|
0.43 |
|
|
0.28 |
|
|
0.29 |
|
|
0.15 |
|
Residential
real estate |
(0.01 |
) |
|
0.10 |
|
|
(0.06 |
) |
|
(0.64 |
) |
|
0.26 |
|
Premium
finance receivables - commercial |
0.23 |
|
|
0.16 |
|
|
0.19 |
|
|
0.34 |
|
|
0.68 |
|
Premium
finance receivables - life insurance |
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
|
0.00 |
|
Consumer and
other |
0.16 |
|
|
0.30 |
|
|
0.23 |
|
|
1.21 |
|
|
0.26 |
|
Total loans,
net of unearned income |
0.09 |
% |
|
0.12 |
% |
|
0.08 |
% |
|
0.02 |
% |
|
0.13 |
% |
Net charge-offs as
a percentage of the provision for credit losses |
48.37 |
% |
|
68.82 |
% |
|
42.27 |
% |
|
21.81 |
% |
|
80.69 |
% |
Loans at
period-end |
$ |
24,214,629 |
|
|
$ |
23,820,691 |
|
|
$ |
23,123,951 |
|
|
$ |
22,610,560 |
|
|
$ |
22,062,134 |
|
Allowance for loan
losses as a percentage of loans at period end |
0.65 |
% |
|
0.64 |
% |
|
0.65 |
% |
|
0.63 |
% |
|
0.63 |
% |
Allowance for credit losses as a percentage of loans at
period end |
0.66 |
% |
|
0.65 |
% |
|
0.65 |
% |
|
0.64 |
% |
|
0.64 |
% |
|
|
WINTRUST FINANCIAL CORPORATION - SUPPLEMENTAL FINANCIAL
INFORMATION |
Non-Performing Assets - 5 Quarter Trends |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in
thousands) |
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Loans past due
greater than 90 days and still
accruing(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
— |
|
|
$ |
— |
|
|
$ |
5,122 |
|
|
$ |
— |
|
|
$ |
— |
|
Commercial
real estate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Home
equity |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential
real estate |
30 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Premium
finance receivables - commercial |
6,558 |
|
|
7,799 |
|
|
7,028 |
|
|
5,159 |
|
|
8,547 |
|
Premium
finance receivables - life insurance |
168 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and
other |
218 |
|
|
109 |
|
|
233 |
|
|
224 |
|
|
207 |
|
Total loans
past due greater than 90 days and still accruing |
6,974 |
|
|
7,908 |
|
|
12,383 |
|
|
5,383 |
|
|
8,754 |
|
Non-accrual
loans(2): |
|
|
|
|
|
|
|
|
|
Commercial |
55,792 |
|
|
50,984 |
|
|
58,587 |
|
|
18,388 |
|
|
14,007 |
|
Commercial
real estate |
15,933 |
|
|
19,129 |
|
|
17,515 |
|
|
19,195 |
|
|
21,825 |
|
Home
equity |
7,885 |
|
|
7,147 |
|
|
8,523 |
|
|
9,096 |
|
|
9,828 |
|
Residential
real estate |
15,879 |
|
|
16,383 |
|
|
16,062 |
|
|
15,825 |
|
|
17,214 |
|
Premium
finance receivables - commercial |
14,797 |
|
|
11,335 |
|
|
13,802 |
|
|
14,832 |
|
|
17,342 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and
other |
326 |
|
|
348 |
|
|
355 |
|
|
563 |
|
|
720 |
|
Total
non-accrual loans |
110,612 |
|
|
105,326 |
|
|
114,844 |
|
|
77,899 |
|
|
80,936 |
|
Total
non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
55,792 |
|
|
50,984 |
|
|
63,709 |
|
|
18,388 |
|
|
14,007 |
|
Commercial
real estate |
15,933 |
|
|
19,129 |
|
|
17,515 |
|
|
19,195 |
|
|
21,825 |
|
Home
equity |
7,885 |
|
|
7,147 |
|
|
8,523 |
|
|
9,096 |
|
|
9,828 |
|
Residential
real estate |
15,909 |
|
|
16,383 |
|
|
16,062 |
|
|
15,825 |
|
|
17,214 |
|
Premium
finance receivables - commercial |
21,355 |
|
|
19,134 |
|
|
20,830 |
|
|
19,991 |
|
|
25,889 |
|
Premium
finance receivables - life insurance |
168 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and
other |
544 |
|
|
457 |
|
|
588 |
|
|
787 |
|
|
927 |
|
Total
non-performing loans |
$ |
117,586 |
|
|
$ |
113,234 |
|
|
$ |
127,227 |
|
|
$ |
83,282 |
|
|
$ |
89,690 |
|
Other real
estate owned |
9,154 |
|
|
11,968 |
|
|
14,924 |
|
|
18,925 |
|
|
18,481 |
|
Other real
estate owned - from acquisitions |
12,366 |
|
|
12,852 |
|
|
13,379 |
|
|
16,406 |
|
|
18,117 |
|
Other
repossessed assets |
270 |
|
|
280 |
|
|
294 |
|
|
305 |
|
|
113 |
|
Total
non-performing assets |
$ |
139,376 |
|
|
$ |
138,334 |
|
|
$ |
155,824 |
|
|
$ |
118,918 |
|
|
$ |
126,401 |
|
TDRs
performing under the contractual terms of the loan agreement |
$ |
48,305 |
|
|
$ |
33,281 |
|
|
$ |
31,487 |
|
|
$ |
57,249 |
|
|
$ |
39,562 |
|
Total
non-performing loans by category as a percent of its own respective
category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
0.70 |
% |
|
0.65 |
% |
|
0.85 |
% |
|
0.25 |
% |
|
0.20 |
% |
Commercial
real estate |
0.23 |
|
|
0.28 |
|
|
0.26 |
|
|
0.29 |
|
|
0.33 |
|
Home
equity |
1.49 |
|
|
1.29 |
|
|
1.47 |
|
|
1.53 |
|
|
1.57 |
|
Residential
real estate |
1.51 |
|
|
1.63 |
|
|
1.74 |
|
|
1.77 |
|
|
1.98 |
|
Premium
finance receivables - commercial |
0.71 |
|
|
0.67 |
|
|
0.72 |
|
|
0.71 |
|
|
1.00 |
|
Premium
finance receivables - life insurance |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and
other |
0.45 |
|
|
0.38 |
|
|
0.51 |
|
|
0.65 |
|
|
0.87 |
|
Total loans,
net of unearned income |
0.49 |
% |
|
0.48 |
% |
|
0.55 |
% |
|
0.37 |
% |
|
0.41 |
% |
Total
non-performing assets as a percentage of total assets |
0.43 |
% |
|
0.44 |
% |
|
0.52 |
% |
|
0.40 |
% |
|
0.44 |
% |
Allowance for loan losses as a percentage of total
non-performing loans |
134.55 |
% |
|
134.92 |
% |
|
117.71 |
% |
|
172.19 |
% |
|
155.54 |
% |
(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 March 31, 2019, December 31, 2018, June 30,
2018 and March 31, 2018, no TDRs were past due greater than 90 days
and still accruing interest. |
(2) Non-accrual loans included TDRs totaling $40.1
million, $32.8 million, $34.7 million, $8.1 million and $8.1
million as of March 31, 2019, December 31, 2018,
September 30, 2018, June 30, 2018 and March 31, 2018,
respectively. |
|
FOR MORE INFORMATION CONTACT:
Edward J. Wehmer, President & Chief Executive Officer
David A. Dykstra, Senior Executive Vice President & Chief Operating Officer
(847) 939-9000
Web site address: www.wintrust.com
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