ROSEMONT, Ill., July 15, 2019 (GLOBE NEWSWIRE) --
Wintrust Financial Corporation (“Wintrust” or “the Company”)
(Nasdaq: WTFC) announced net income of $81.5 million or $1.38 per
diluted common share for the second quarter of 2019, a decrease in
diluted earnings per common share of 9.2% compared to the prior
quarter and 9.8% compared to the second quarter of 2018. The
Company recorded net income of $170.6 million or $2.91 per diluted
common share for the first six months of 2019 compared to net
income of $171.6 million or $2.93 per diluted common share for the
same period of 2018.
Highlights of the Second Quarter of
2019:
Comparative information to the first quarter of 2019
- Total assets increased by $1.3 billion, including $220 million
from the acquisition of Rush-Oak Corporation ("ROC"), the parent
company of Oak Bank (the "Oak Bank Acquisition"), or 16% on an
annualized basis.
- Total loans increased by $1.1 billion, including $114 million
from the Oak Bank Acquisition, or 18% on an annualized basis.
- Total deposits increased by $714 million, including $158
million from the Oak Bank Acquisition, or 11% on an annualized
basis.
- Net interest income increased by $4.2 million as the impact of
a $797 million increase in average earning assets was partially
offset by an eight basis point decline in net interest margin.
- Mortgage banking production revenue increased by $13.3 million
as mortgage originations for sale totaled $1.2 billion in the
second quarter of 2019 as compared to $678 million in the first
quarter of 2019.
Other highlights of the second quarter of
2019
- Total period end loans were $751 million higher than average
total loans in the current quarter.
- Recorded the following activity related to mortgage servicing
rights:
- Current period capitalization of $9.8 million;
- Reduction in value related to payoffs and paydowns of $4.1
million; and
- Reduction in value related to changes in fair value model
assumptions, net of derivative contract activity held as an
economic hedge, of $3.4 million.
- Recognized $24.6 million of provision for credit losses and
$22.3 million of net charge-offs, of which $15.2 million of
provision for credit losses and $18.4 million of net charge-offs
related to three credits.
- Completed a subordinated debt issuance which generated proceeds
of $297.5 million, net of the underwriting discount, and
contributed to increase the total capital ratio to approximately
12.3%.
- Opened a new branch in Waukegan, Illinois, as well as completed
the Oak Bank Acquisition, with one branch in the city of
Chicago.
- Announced an agreement to acquire STC Bancshares Corp., the
parent company of STC Capital Bank, which is expected to close in
the third quarter of 2019.
Edward J. Wehmer, President and Chief Executive
Officer, commented, "Wintrust reported net income of $81.5 million
for the second quarter of 2019, down from $89.1 million in the
first quarter of 2019. The Company experienced strong balance sheet
growth as total assets were $1.3 billion higher than the prior
quarter end and $4.2 billion higher than the second quarter of
2018. The second quarter was characterized by strong balance sheet
growth, increased mortgage banking revenue, resolution of
problem credits, and a continued focus to increase franchise value
in our market area."
Mr. Wehmer continued, "This quarter demonstrated
our asset-driven mentality as we generated high quality assets
while leveraging our retail banking footprint to grow core deposit
funding. The Company experienced significant loan growth in the
quarter as total loans grew by $1.1 billion and the yield on loans
remained relatively flat to the prior quarter. Additionally, the
loan growth was diversified across various loan portfolios as we
experienced growth of $380 million of commercial premium finance
receivables, $303 million of commercial real estate loans and $277
million of commercial loans. Total deposits increased by $714
million in the current quarter although the rate on interest
bearing deposits increased by eight basis points. We remain
aggressive in growing quality assets that meet our standards and
will seek to fund that by expanding deposit market share and
household penetration."
Mr. Wehmer noted, “Our mortgage banking business
production increased dramatically in the current quarter as loan
volumes originated for sale increased to $1.2 billion from $678
million in the first quarter of 2019. The favorable increase
in origination volume was a result of the seasonal purchase market
combined with increased refinance activity due to the declining
interest rate environment. Declining long-term interest rates also
contributed to a $4.1 million reduction in our mortgage servicing
rights portfolio related to payoffs and paydowns as well as a $3.4
million reduction due to changes in fair value assumptions, net of
hedging gain. However, those declines were more than offset
by capitalization of retained servicing rights of $9.8 million in
the current quarter. We continue to focus on efficiencies in our
delivery channels and our operating costs in our mortgage banking
area. We believe that the mortgage rate outlook bodes well for
mortgage origination demand in future quarters."
Commenting on credit quality, Mr. Wehmer stated,
"During the current quarter, the Company recorded $24.6 million of
provision for credit losses and $22.3 million of net charge-offs,
of which $15.2 million of provision for credit losses and $18.4
million of net charge-offs related to three credits. This
contributed to a four basis point reduction in non-performing loans
as a percent of total loans to 0.45%. The Company recorded
additional provision expense during the current quarter in
recognition of the significant loan growth as well as certain
specific reserves on other non-performing loans. We believe that
the Company’s reserves remain appropriate and we remain diligent in
our review of credit. We do not believe that the charges taken
during the current quarter represent any pervasive issues that may
have broader implications on the credit quality of our loan
portfolio."
Turning to the future, Mr. Wehmer stated, “We
have experienced significant franchise growth in the first two
quarters of 2019 and believe that our opportunities for both
internal and external growth remain consistently strong. Total
period-end loans exceeded total average loans by $751 million in
the current quarter, providing momentum for an increase in net
interest income in the third quarter of 2019 despite market
conditions that are applying pressure to the net interest margin.
We plan to continue to emphasize core deposit growth and we will
remain diligent in monitoring the interest rate environment to
ensure that we react quickly in adjusting deposit pricing in the
event of further interest rate reductions. We plan to continue in
our steady and measured approach to achieve our main objectives of
growing franchise value, increasing profitability, leveraging our
expense infrastructure and continuing to increase shareholder
value. Evaluating strategic acquisitions, like the Oak Bank
Acquisition and the announced acquisition of STC Bancshares Corp.,
and organic branch growth will continue to be a part of our overall
growth strategy with the goal of becoming Chicago’s bank and
Wisconsin’s bank."
The graphs below illustrate certain highlights of the second
quarter of 2019.
http://ml.globenewswire.com/Resource/Download/dd8200b6-3ef9-46d7-a9e0-472e4a79dfcc
*See Table 16 in this report for the MSR Valuation Adjustment,
net of gain on derivative contract held as an economic hedge.
SUMMARY OF RESULTS:
BALANCE SHEET
Total assets grew by $1.3 billion in the second
quarter of 2019 primarily driven by $1.1 billion of loan growth as
well as an increase in mortgage loans held-for-sale of $146.4
million. There were no material additions to the Company's
investment portfolio during the current quarter due to the lack of
acceptable financial returns given the current interest rate
environment. The Company held $1.4 billion of interest
bearing cash as of June 30, 2019 in order to maintain adequate
liquidity.
Total liabilities grew by $1.2 billion in the
second quarter of 2019 primarily comprised of growth in total
deposits of $714.1 million and an increase of $296.8 million in
subordinated notes. Management believes in substantially funding
the balance sheet with core deposits and utilizes brokered or
wholesale funding sources as appropriate to manage its liquidity
position as well as for interest rate risk management purposes.
For more information regarding changes in the
Company’s balance sheet, see Consolidated Statements of Condition
and Tables 1 through 4 in this report.
NET INTEREST INCOME
For the second quarter of 2019, net interest
income totaled $266.2 million, an increase of $4.2 million as
compared to the first quarter of 2019 and an increase of $28.0
million as compared to the second quarter of 2018. The $4.2 million
increase in net interest income in the second quarter of 2019
compared to the first quarter of 2019 was attributable to a $6.6
million increase related to balance sheet growth and a $2.9 million
increase from one more day in the quarter partially offset by a
$5.3 million decrease due to a reduction in net interest
margin.
Net interest margin was 3.62% (3.64% on a fully
taxable-equivalent basis, non-GAAP) during the second quarter of
2019 compared to 3.70% (3.72% on a fully taxable-equivalent basis,
non-GAAP) during the first quarter of 2019 and 3.61% (3.63% on a
fully taxable-equivalent basis, non-GAAP) during the second quarter
of 2018. The eight basis point decrease in net interest margin in
the second quarter of 2019 as compared to the first quarter of 2019
is primarily due to an increase in the rate on interest bearing
liabilities of 11 basis points partially offset by a three basis
point increase in the contribution of net free funds. The 11
basis point increase in the rate on interest bearing liabilities
was primarily due to an eight basis point increase in deposit
pricing related to promotional efforts to expand our market
penetration, including at new branches. Additionally, the rate on
interest bearing liabilities was negatively impacted by three basis
points due to a higher mix of wholesale borrowings including the
subordinated debt issuance in the current quarter and the
utilization of Federal Home Loan Bank borrowings to fund asset
growth. The yield on earning assets remained unchanged in the
second quarter as compared to first quarter as the yield on loans
remained relatively consistent quarter over quarter.
For the first six months of 2019, net interest
income totaled $528.2 million, an increase of $64.9 million as
compared to the first six months of 2018. Net interest margin was
3.66% (3.68% on a fully taxable-equivalent basis) for the first six
months of 2019 compared to 3.58% (3.60% on a fully
taxable-equivalent basis) for the first six months of 2018.
For more information regarding net interest
income, see Tables 5 through 10 in this report.
ASSET QUALITY
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 average total
loans, in the second quarter of 2019 totaled 36 basis points on an
annualized basis compared to nine basis points on an annualized
basis in the first quarter of 2019 and two basis points on an
annualized basis in the second quarter of 2018. Net
charge-offs totaled $22.3 million in the second quarter of 2019, a
$17.2 million increase from $5.1 million in the first quarter of
2019 and a $21.2 million increase from $1.1 million in the second
quarter of 2018. The provision for credit losses totaled
$24.6 million for the second quarter of 2019 compared to $10.6
million for the first quarter of 2019 and $5.0 million for the
second quarter of 2018. Of the $24.6 million of provision for
credit losses and $22.3 million of net charge-offs recognized in
the current quarter, $18.4 million of net charge-offs and $15.2
million of provision expense, respectively, related to three
credits. For more information regarding net charge-offs, see
Table 11 in this report.
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.
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 as of
June 30, 2019 and March 31, 2019 is shown on Table 12 of
this report.
As of June 30, 2019, $54.9 million of all
loans, or 0.2%, were 60 to 89 days past due and $129.1 million, or
0.5%, were 30 to 59 days (or one payment) past due. 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. 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.
The Company’s home equity and residential loan
portfolios continue to exhibit low delinquency ratios. Home equity
loans at June 30, 2019 that are current with regard to the
contractual terms of the loan agreement represent 97.9% of the
total home equity portfolio. Residential real estate loans at
June 30, 2019 that are current with regards to the contractual
terms of the loan agreements comprise 98.2% of total residential
real estate loans outstanding. For more information regarding past
due loans, see Table 13 in this report.
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 $160.4 million of allowance for loan
losses, there was $6.9 million of non-accretable credit discount on
purchased loans reported in accordance with ASC 310-30 that is
available to absorb credit losses as of June 30, 2019.
The ratio of non-performing assets to total
assets was 0.40% as of June 30, 2019, compared to 0.43% at
March 31, 2019, and 0.40% at June 30, 2018.
Non-performing assets, excluding PCI loans, totaled $133.5 million
at June 30, 2019, compared to $139.4 million at March 31,
2019 and $118.9 million at June 30, 2018. Non-performing
loans, excluding PCI loans, totaled $113.4 million, or 0.45% of
total loans, at June 30, 2019 compared to $117.6 million, or
0.49% of total loans, at March 31, 2019 and $83.3 million, or
0.37% of total loans, at June 30, 2018. Other real estate
owned ("OREO") of $19.8 million at June 30, 2019 decreased
$1.7 million compared to $21.5 million at March 31, 2019 and
decreased $15.5 million compared to $35.3 million at June 30,
2018. Management is pursuing the resolution of all non-performing
assets. 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.
For more information regarding non-performing assets, see Table 14
in this report.
NON-INTEREST INCOME
Wealth management revenue increased by $162,000
during the second quarter of 2019 as compared to the first quarter
of 2019 primarily due to increased brokerage commissions and asset
management fees. 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 the
Chicago Deferred Exchange Company.
Mortgage banking revenue increased by $19.3
million in the second quarter of 2019 as compared to the first
quarter of 2019 primarily as a result of higher production revenues
and an increase in the fair value of the mortgage servicing rights
portfolio in the second quarter of 2019. Production revenue
increased by $13.3 million in the second quarter of 2019 as
compared to the first quarter of 2019 primarily due to a
significant increase in origination volumes as a result of the
seasonal purchase market and increased refinancing activity.
The percentage of origination volume from refinancing activities
was 37% in the second quarter of 2019 as compared to 33% in the
first quarter of 2019. Mortgage banking revenue includes revenue
from activities related to originating, selling and servicing
residential real estate loans for the secondary market.
During the second quarter of 2019, the fair
value of the mortgage servicing rights portfolio increased as
retained servicing rights led to the capitalization of $9.8 million
partially offset by negative fair value adjustments of $4.3 million
and a reduction in value of $4.1 million due to payoffs and
paydowns of the existing portfolio. The Company purchased an option
at the beginning of the second quarter of 2019 to economically
hedge a portion of the potential negative fair value changes
recorded in earnings related to its mortgage servicing rights
portfolio. The option was exercised during the current quarter
resulting in a net gain of $920,000 which was recorded in mortgage
banking revenue.
The net gains recognized on investment
securities in the second quarter of 2019 and first quarter of 2019,
respectively, were primarily due to unrealized gains recognized on
equity securities held by the Company, including a large cap value
mutual fund.
The Company recorded $643,000 of fees from
covered call options in the second quarter of 2019 as compared to
$1.8 million in the first quarter of 2019. 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 June 30, 2019,
March 31, 2019 or June 30, 2018.
Miscellaneous non-interest income decreased by
$2.3 million in the second quarter of 2019 as compared to
the first quarter of 2019 primarily due to reduced income
from investments in partnerships.
For more information regarding non-interest
income, see Tables 15 and 16 in this report.
NON-INTEREST EXPENSE
Salaries and employee benefits expense increased
by $8.0 million in the second quarter of 2019 as compared to the
first quarter of 2019. The $8.0 million increase is comprised of an
increase of $1.3 million in salaries expense, $4.9 million in
commissions and incentive compensation and $1.8 million in benefits
expense. The increase in salaries expense is primarily due to
increased staffing as the Company grows, including additional
salaries from the Oak Bank Acquisition as well as a full quarter
impact of annual merit increases that were effective in
February. Commissions and incentive compensation increased in
the current quarter primarily related to the increased volume of
mortgage originations for sale. The increase in benefits
expense relates primarily to increases in employee insurance
expense in the current quarter.
Equipment expense totaled $12.8 million in the
second quarter of 2019, an increase of $1.0 million as compared to
the first quarter of 2019. The increase in the current quarter
relates primarily to increased software depreciation and licensing
expenses and maintenance and repairs.
Data processing expenses decreased by $1.3
million in the second quarter of 2019 as compared to the first
quarter of 2019 primarily due to the realization of a full quarter
impact of favorable contract negotiations on various data
processing contracts which were completed in the first quarter of
2019.
Advertising and marketing expenses in the second
quarter of 2019 increased by $3.0 million as compared to the first
quarter of 2019 primarily related to higher corporate sponsorship
costs, which are typically higher in the spring and summer due to
our marketing efforts related to baseball sponsorships, as well as
increased spending related to deposit generation and brand
awareness to grow our loan and deposit portfolios.
Miscellaneous expenses increased by $2.4 million
during the second quarter of 2019 as compared to the first quarter
of 2019 primarily as a result of loan expenses and travel and
entertainment expenses. Miscellaneous expense includes ATM
expenses, correspondent bank charges, directors' fees, telephone,
travel and entertainment, corporate insurance, dues and
subscriptions, problem loan expenses, operating losses and lending
origination costs that are not deferred.
For more information regarding non-interest
income, see Table 17 in this report.
INCOME TAXES
The Company recorded income tax expense of $28.7
million in the second quarter of 2019 compared to $29.5 million in
the first quarter of 2019 and $32.0 million in the second quarter
of 2018. The effective tax rates were 26.06% in the second quarter
of 2019 compared to 24.86% in the first quarter of 2019 and 26.33%
in the second quarter of 2018. During the first six months of 2019,
the Company recorded income tax expense of $58.2 million compared
to $58.1 million for the first six months of 2018. The effective
tax rates were 25.44% for the first six months of 2019 and 25.30%
for the first six months of 2018.
The quarterly and year-to-date effective tax
rates were impacted by excess tax benefits related to share-based
compensation. These excess tax benefits were $69,000 in the second
quarter of 2019 and $1.6 million in the first quarter of 2019
compared to $712,000 in the second 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.
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 second quarter of 2019, revenue within
this unit was primarily driven by increased net interest income due
to increased earning assets and one additional day in the second
quarter, partially offset by higher rates on interest bearing
liabilities. Mortgage banking revenue increased significantly
from $18.2 million for the first quarter of 2019 to $37.4 million
for the second quarter of 2019. Services charges on deposit
accounts totaled $9.3 million in the second quarter of 2019 an
increase of $429,000 as compared to the first quarter of 2019
primarily due to higher account analysis fees. The Company's gross
commercial and commercial real estate loan pipelines remain strong.
Before the impact of scheduled payments and prepayments, gross
commercial and commercial real estate loan pipelines were estimated
to be approximately $1.2 billion to $1.3 billion at June 30,
2019. When adjusted for the probability of closing, the pipelines
were estimated to be approximately $750 million to $800 million at
June 30, 2019.
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 second quarter of 2019, the
specialty finance unit experienced higher revenue primarily 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 $2.4 billion
during the second quarter of 2019 and average balances increased by
$228.0 million as compared to the first quarter of 2019. The
increase in average balances along with higher yields on these
loans resulted in a $5.2 million increase in interest income
attributed to the insurance premium finance receivables portfolio.
The Company's leasing business grew during the second quarter of
2019, with its portfolio of assets, including capital leases, loans
and equipment on operating leases, increasing $80.4 million to $1.4
billion at the end of the second quarter of 2019. Revenues from the
Company's out-sourced administrative services business remained
relatively steady, totaling approximately $1.0 million in both the
first quarter and the second quarter of 2019.
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 $162,000 in the
second quarter of 2019 compared to the first quarter of 2019,
totaling $24.1 million in the current period. At June 30,
2019, the Company’s wealth management subsidiaries had
approximately $25.9 billion of assets under administration, which
included $3.6 billion of assets owned by the Company and its
subsidiary banks, representing a $772.9 million increase from the
$25.1 billion of assets under administration at March 31,
2019. The increase in the second quarter of 2019 was primarily due
to market appreciation as well as increased business.
ITEMS IMPACTING COMPARATIVE FINANCIAL
RESULTS
Acquisitions
On May 24, 2019, the Company completed the Oak
Bank Acquisition. Through this business combination, the Company
acquired Oak Bank's one banking location in Chicago, Illinois, as
well as approximately $223.8 million in assets, including
approximately $126.1 million in loans, and approximately $161.2
million in deposits. The Company recorded goodwill of $10.7 million
on the acquisition.
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 as well as 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 $26.6 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 FINANCIAL CORPORATION
Key Operating Measures
Wintrust’s key operating measures and growth
rates for the second quarter of 2019, as compared to the first
quarter of 2019 (sequential quarter) and second quarter of 2018
(linked quarter), are shown in the table below:
|
|
|
|
|
|
|
% or(4)
basis point (bp) change from
1st Quarter
2019 |
|
% or
basis point (bp)
change from
2nd Quarter
2018 |
|
|
Three Months Ended |
|
(Dollars in thousands, except per share data) |
|
June 30,
2019 |
|
March 31,
2019 |
|
June 30,
2018 |
|
Net
income |
|
$ |
81,466 |
|
|
$ |
89,146 |
|
|
$ |
89,580 |
|
(9 |
) |
% |
|
(9 |
) |
% |
Net
income per common share – diluted |
|
1.38 |
|
|
1.52 |
|
|
1.53 |
|
(9 |
) |
|
|
(10 |
) |
|
Net
revenue (1) |
|
364,360 |
|
|
343,643 |
|
|
333,403 |
|
6 |
|
|
|
9 |
|
|
Net
interest income |
|
266,202 |
|
|
261,986 |
|
|
238,170 |
|
2 |
|
|
|
12 |
|
|
Net
interest margin |
|
3.62 |
% |
|
3.70 |
% |
|
3.61 |
% |
(8 |
) |
bp |
|
1 |
|
bp |
Net
interest margin - fully taxable equivalent (non-GAAP)
(2) |
|
3.64 |
|
|
3.72 |
|
|
3.63 |
|
(8 |
) |
|
|
1 |
|
|
Net
overhead ratio (3) |
|
1.64 |
|
|
1.72 |
|
|
1.57 |
|
(8 |
) |
|
|
7 |
|
|
Return on
average assets |
|
1.02 |
|
|
1.16 |
|
|
1.26 |
|
(14 |
) |
|
|
(24 |
) |
|
Return on
average common equity |
|
9.68 |
|
|
11.09 |
|
|
11.94 |
|
(141 |
) |
|
|
(226 |
) |
|
Return on average tangible common equity (non-GAAP)
(2) |
|
12.28 |
|
|
14.14 |
|
|
14.72 |
|
(186 |
) |
|
|
(244 |
) |
|
At end of period |
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
33,641,769 |
|
|
$ |
32,358,621 |
|
|
$ |
29,464,588 |
|
16 |
|
% |
|
14 |
|
% |
Total
loans (5) |
|
25,304,659 |
|
|
24,214,629 |
|
|
22,610,560 |
|
18 |
|
|
|
12 |
|
|
Total
deposits |
|
27,518,815 |
|
|
26,804,742 |
|
|
24,365,479 |
|
11 |
|
|
|
13 |
|
|
Total shareholders’ equity |
|
3,446,950 |
|
|
3,371,972 |
|
|
3,106,871 |
|
9 |
|
|
|
11 |
|
|
- Net revenue is net interest income plus non-interest
income.
- See "Supplemental Non-GAAP Financial Measures/Ratios" at
Table 18 for additional information on this performance
measure/ratio.
- 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.
- Period-end balance sheet percentage changes are
annualized.
- 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 |
Six Months Ended |
(Dollars in thousands, except per share data) |
|
June 30,
2019 |
|
March 31,
2019 |
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
June 30,
2019 |
|
June 30,
2018 |
Selected Financial Condition Data (at end of
period): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
33,641,769 |
|
|
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
|
|
Total
loans (1) |
|
25,304,659 |
|
|
24,214,629 |
|
|
23,820,691 |
|
|
23,123,951 |
|
|
22,610,560 |
|
|
|
|
Total
deposits |
|
27,518,815 |
|
|
26,804,742 |
|
|
26,094,678 |
|
|
24,916,715 |
|
|
24,365,479 |
|
|
|
|
Junior
subordinated debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
|
|
Total shareholders’ equity |
|
3,446,950 |
|
|
3,371,972 |
|
|
3,267,570 |
|
|
3,179,822 |
|
|
3,106,871 |
|
|
|
|
Selected Statements of Income Data: |
|
|
|
Net
interest income |
|
$ |
266,202 |
|
|
$ |
261,986 |
|
|
$ |
254,088 |
|
|
$ |
247,563 |
|
|
$ |
238,170 |
|
$ |
528,188 |
|
|
$ |
463,252 |
|
Net
revenue (2) |
|
364,360 |
|
|
343,643 |
|
|
329,396 |
|
|
347,493 |
|
|
333,403 |
|
708,003 |
|
|
644,164 |
|
Net
income |
|
81,466 |
|
|
89,146 |
|
|
79,657 |
|
|
91,948 |
|
|
89,580 |
|
170,612 |
|
|
171,561 |
|
Net
income per common share – Basic |
|
1.40 |
|
|
1.54 |
|
|
1.38 |
|
|
1.59 |
|
|
1.55 |
|
2.94 |
|
|
2.98 |
|
Net income per common share – Diluted |
|
1.38 |
|
|
1.52 |
|
|
1.35 |
|
|
1.57 |
|
|
1.53 |
|
2.91 |
|
|
2.93 |
|
Selected Financial Ratios and Other Data: |
|
|
|
Performance Ratios: |
|
|
|
Net
interest margin |
|
3.62 |
% |
|
3.70 |
% |
|
3.61 |
% |
|
3.59 |
% |
|
3.61 |
% |
3.66 |
% |
|
3.58 |
% |
Net
interest margin - fully taxable equivalent (non-GAAP)
(3) |
|
3.64 |
|
|
3.72 |
|
|
3.63 |
|
|
3.61 |
|
|
3.63 |
|
3.68 |
|
|
3.60 |
|
Non-interest income to average assets |
|
1.23 |
|
|
1.06 |
|
|
0.99 |
|
|
1.34 |
|
|
1.34 |
|
1.15 |
|
|
1.29 |
|
Non-interest expense to average assets |
|
2.87 |
|
|
2.79 |
|
|
2.78 |
|
|
2.87 |
|
|
2.90 |
|
2.83 |
|
|
2.87 |
|
Net
overhead ratio (4) |
|
1.64 |
|
|
1.72 |
|
|
1.79 |
|
|
1.53 |
|
|
1.57 |
|
1.68 |
|
|
1.58 |
|
Return on
average assets |
|
1.02 |
|
|
1.16 |
|
|
1.05 |
|
|
1.24 |
|
|
1.26 |
|
1.09 |
|
|
1.23 |
|
Return on
average common equity |
|
9.68 |
|
|
11.09 |
|
|
10.01 |
|
|
11.86 |
|
|
11.94 |
|
10.37 |
|
|
11.62 |
|
Return on
average tangible common equity (non-GAAP) (3) |
|
12.28 |
|
|
14.14 |
|
|
12.48 |
|
|
14.64 |
|
|
14.72 |
|
13.19 |
|
|
14.38 |
|
Average
total assets |
|
$ |
32,055,769 |
|
|
$ |
31,216,171 |
|
|
$ |
30,179,887 |
|
|
$ |
29,525,109 |
|
|
$ |
28,567,579 |
|
$ |
31,638,289 |
|
|
$ |
28,190,683 |
|
Average
total shareholders’ equity |
|
3,414,340 |
|
|
3,309,078 |
|
|
3,200,654 |
|
|
3,131,943 |
|
|
3,064,154 |
|
3,362,000 |
|
|
3,030,062 |
|
Average
loans to average deposits ratio |
|
93.9 |
% |
|
92.7 |
% |
|
92.4 |
% |
|
92.2 |
% |
|
95.5 |
% |
93.3 |
% |
|
95.3 |
% |
Period-end loans to deposits ratio |
|
92.0 |
|
|
90.3 |
|
|
91.3 |
|
|
92.8 |
|
|
92.8 |
|
|
|
|
Common Share Data at end of period: |
|
|
|
Market
price per common share |
|
$ |
73.16 |
|
|
$ |
67.33 |
|
|
$ |
66.49 |
|
|
$ |
84.94 |
|
|
$ |
87.05 |
|
|
|
|
Book
value per common share |
|
58.62 |
|
|
57.33 |
|
|
55.71 |
|
|
54.19 |
|
|
52.94 |
|
|
|
|
Tangible
book value per common share (non-GAAP) (3) |
|
47.48 |
|
|
46.38 |
|
|
44.67 |
|
|
44.16 |
|
|
43.50 |
|
|
|
|
Common shares outstanding |
|
56,667,846 |
|
|
56,638,968 |
|
|
56,407,558 |
|
|
56,377,169 |
|
|
56,329,276 |
|
|
|
|
Other
Data at end of period: |
|
|
|
Tier 1
leverage ratio (5) |
|
9.1 |
% |
|
9.1 |
% |
|
9.1 |
% |
|
9.3 |
% |
|
9.4 |
% |
|
|
|
Risk-based capital ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1
capital ratio (5) |
|
9.6 |
|
|
9.8 |
|
|
9.7 |
|
|
10.0 |
|
|
10.0 |
|
|
|
|
Common
equity tier 1 capital ratio(5) |
|
9.2 |
|
|
9.3 |
|
|
9.3 |
|
|
9.5 |
|
|
9.6 |
|
|
|
|
Total
capital ratio (5) |
|
12.3 |
|
|
11.7 |
|
|
11.6 |
|
|
12.0 |
|
|
12.1 |
|
|
|
|
Allowance
for credit losses (6) |
|
$ |
161,901 |
|
|
$ |
159,622 |
|
|
$ |
154,164 |
|
|
$ |
151,001 |
|
|
$ |
144,645 |
|
|
|
|
Non-performing loans |
|
113,447 |
|
|
117,586 |
|
|
113,234 |
|
|
127,227 |
|
|
83,282 |
|
|
|
|
Allowance
for credit losses to total loans (6) |
|
0.64 |
% |
|
0.66 |
% |
|
0.65 |
% |
|
0.65 |
% |
|
0.64 |
% |
|
|
|
Non-performing loans to total loans |
|
0.45 |
|
|
0.49 |
|
|
0.48 |
|
|
0.55 |
|
|
0.37 |
|
|
|
|
Number
of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank subsidiaries |
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
15 |
|
|
|
|
Banking offices |
|
172 |
|
|
170 |
|
|
167 |
|
|
166 |
|
|
162 |
|
|
|
|
- Excludes mortgage loans held-for-sale.
- Net revenue includes net interest income and non-interest
income.
- See “Supplemental Non-GAAP Financial Measures/Ratios” at
Table 18 for additional information on this performance
measure/ratio.
- 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.
- Capital ratios for current quarter-end are
estimated.
- 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) |
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
(Unaudited) |
|
|
|
|
June 30, |
|
|
|
March 31, |
|
|
|
December 31, |
|
|
|
September 30, |
|
|
|
June 30, |
|
(In thousands) |
|
|
2019 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2018 |
|
|
|
2018 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
300,934 |
|
|
$ |
270,765 |
|
|
$ |
392,142 |
|
|
$ |
279,936 |
|
|
$ |
304,580 |
|
Federal funds sold and securities purchased under resale
agreements |
|
58 |
|
|
58 |
|
|
58 |
|
|
57 |
|
|
62 |
|
Interest bearing deposits with banks |
|
1,437,105 |
|
|
1,609,852 |
|
|
1,099,594 |
|
|
1,137,044 |
|
|
1,221,407 |
|
Available-for-sale securities, at fair value |
|
2,186,154 |
|
|
2,185,782 |
|
|
2,126,081 |
|
|
2,164,985 |
|
|
1,940,787 |
|
Held-to-maturity securities, at amortized cost |
|
1,191,634 |
|
|
1,051,542 |
|
|
1,067,439 |
|
|
966,438 |
|
|
890,834 |
|
Trading account securities |
|
2,430 |
|
|
559 |
|
|
1,692 |
|
|
688 |
|
|
862 |
|
Equity securities with readily determinable fair value |
|
44,319 |
|
|
47,653 |
|
|
34,717 |
|
|
36,414 |
|
|
37,839 |
|
Federal Home Loan Bank and Federal Reserve Bank stock |
|
92,026 |
|
|
89,013 |
|
|
91,354 |
|
|
99,998 |
|
|
96,699 |
|
Brokerage customer receivables |
|
13,569 |
|
|
14,219 |
|
|
12,609 |
|
|
15,649 |
|
|
16,649 |
|
Mortgage loans held-for-sale |
|
394,975 |
|
|
248,557 |
|
|
264,070 |
|
|
338,111 |
|
|
455,712 |
|
Loans, net of unearned income |
|
25,304,659 |
|
|
24,214,629 |
|
|
23,820,691 |
|
|
23,123,951 |
|
|
22,610,560 |
|
Allowance for loan losses |
|
(160,421 |
) |
|
(158,212 |
) |
|
(152,770 |
) |
|
(149,756 |
) |
|
(143,402 |
) |
Net loans |
|
25,144,238 |
|
|
24,056,417 |
|
|
23,667,921 |
|
|
22,974,195 |
|
|
22,467,158 |
|
Premises and equipment, net |
|
711,214 |
|
|
676,037 |
|
|
671,169 |
|
|
664,469 |
|
|
639,345 |
|
Lease investments, net |
|
230,111 |
|
|
224,240 |
|
|
233,208 |
|
|
199,241 |
|
|
194,160 |
|
Accrued interest receivable and other assets |
|
1,023,896 |
|
|
888,492 |
|
|
696,707 |
|
|
700,568 |
|
|
666,673 |
|
Trade date securities receivable |
|
237,607 |
|
|
375,211 |
|
|
263,523 |
|
|
— |
|
|
450 |
|
Goodwill |
|
584,911 |
|
|
573,658 |
|
|
573,141 |
|
|
537,560 |
|
|
509,957 |
|
Other intangible assets |
|
46,588 |
|
|
46,566 |
|
|
49,424 |
|
|
27,378 |
|
|
21,414 |
|
Total assets |
|
$ |
33,641,769 |
|
|
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
6,719,958 |
|
|
$ |
6,353,456 |
|
|
$ |
6,569,880 |
|
|
$ |
6,399,213 |
|
|
$ |
6,520,724 |
|
Interest bearing |
|
20,798,857 |
|
|
20,451,286 |
|
|
19,524,798 |
|
|
18,517,502 |
|
|
17,844,755 |
|
Total deposits |
|
27,518,815 |
|
|
26,804,742 |
|
|
26,094,678 |
|
|
24,916,715 |
|
|
24,365,479 |
|
Federal Home Loan Bank advances |
|
574,823 |
|
|
576,353 |
|
|
426,326 |
|
|
615,000 |
|
|
667,000 |
|
Other borrowings |
|
418,057 |
|
|
372,194 |
|
|
393,855 |
|
|
373,571 |
|
|
255,701 |
|
Subordinated notes |
|
436,021 |
|
|
139,235 |
|
|
139,210 |
|
|
139,172 |
|
|
139,148 |
|
Junior subordinated debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Accrued interest payable and other liabilities |
|
993,537 |
|
|
840,559 |
|
|
669,644 |
|
|
664,885 |
|
|
676,823 |
|
Total liabilities |
|
30,194,819 |
|
|
28,986,649 |
|
|
27,977,279 |
|
|
26,962,909 |
|
|
26,357,717 |
|
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
|
125,000 |
|
Common stock |
|
56,794 |
|
|
56,765 |
|
|
56,518 |
|
|
56,486 |
|
|
56,437 |
|
Surplus |
|
1,569,969 |
|
|
1,565,185 |
|
|
1,557,984 |
|
|
1,553,353 |
|
|
1,547,511 |
|
Treasury stock |
|
(6,650 |
) |
|
(6,650 |
) |
|
(5,634 |
) |
|
(5,547 |
) |
|
(5,355 |
) |
Retained earnings |
|
1,747,266 |
|
|
1,682,016 |
|
|
1,610,574 |
|
|
1,543,680 |
|
|
1,464,494 |
|
Accumulated other comprehensive loss |
|
(45,429 |
) |
|
(50,344 |
) |
|
(76,872 |
) |
|
(93,150 |
) |
|
(81,216 |
) |
Total shareholders’ equity |
|
3,446,950 |
|
|
3,371,972 |
|
|
3,267,570 |
|
|
3,179,822 |
|
|
3,106,871 |
|
Total liabilities and shareholders’ equity |
|
$ |
33,641,769 |
|
|
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
WINTRUST FINANCIAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
Three Months Ended |
|
Six Months Ended
|
(In
thousands, except per share data) |
June 30,
2019 |
|
March 31,
2019 |
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
|
June 30,
2019 |
|
June 30,
2018 |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
309,161 |
|
|
$ |
296,987 |
|
|
$ |
283,311 |
|
|
$ |
271,134 |
|
|
$ |
255,063 |
|
|
$ |
606,148 |
|
|
$ |
490,057 |
|
Mortgage loans held-for-sale |
3,104 |
|
|
2,209 |
|
|
3,409 |
|
|
5,285 |
|
|
4,226 |
|
|
5,313 |
|
|
7,044 |
|
Interest bearing deposits with banks |
5,206 |
|
|
5,300 |
|
|
5,628 |
|
|
5,423 |
|
|
3,243 |
|
|
10,506 |
|
|
6,039 |
|
Federal funds sold and securities purchased under resale
agreements |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
— |
|
|
1 |
|
Investment securities |
27,721 |
|
|
27,956 |
|
|
26,656 |
|
|
21,710 |
|
|
19,888 |
|
|
55,677 |
|
|
39,016 |
|
Trading account securities |
5 |
|
|
8 |
|
|
14 |
|
|
11 |
|
|
4 |
|
|
13 |
|
|
18 |
|
Federal Home Loan Bank and Federal Reserve Bank stock |
1,439 |
|
|
1,355 |
|
|
1,343 |
|
|
1,235 |
|
|
1,455 |
|
|
2,794 |
|
|
2,753 |
|
Brokerage customer receivables |
178 |
|
|
155 |
|
|
235 |
|
|
164 |
|
|
167 |
|
|
333 |
|
|
324 |
|
Total interest income |
346,814 |
|
|
333,970 |
|
|
320,596 |
|
|
304,962 |
|
|
284,047 |
|
|
680,784 |
|
|
545,252 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
67,024 |
|
|
60,976 |
|
|
55,975 |
|
|
48,736 |
|
|
35,293 |
|
|
128,000 |
|
|
61,842 |
|
Interest on Federal Home Loan Bank advances |
4,193 |
|
|
2,450 |
|
|
2,563 |
|
|
1,947 |
|
|
4,263 |
|
|
6,643 |
|
|
7,902 |
|
Interest on other borrowings |
3,525 |
|
|
3,633 |
|
|
3,199 |
|
|
2,003 |
|
|
1,698 |
|
|
7,158 |
|
|
3,397 |
|
Interest on subordinated notes |
2,806 |
|
|
1,775 |
|
|
1,788 |
|
|
1,773 |
|
|
1,787 |
|
|
4,581 |
|
|
3,560 |
|
Interest on junior subordinated debentures |
3,064 |
|
|
3,150 |
|
|
2,983 |
|
|
2,940 |
|
|
2,836 |
|
|
6,214 |
|
|
5,299 |
|
Total interest expense |
80,612 |
|
|
71,984 |
|
|
66,508 |
|
|
57,399 |
|
|
45,877 |
|
|
152,596 |
|
|
82,000 |
|
Net interest income |
266,202 |
|
|
261,986 |
|
|
254,088 |
|
|
247,563 |
|
|
238,170 |
|
|
528,188 |
|
|
463,252 |
|
Provision for credit losses |
24,580 |
|
|
10,624 |
|
|
10,401 |
|
|
11,042 |
|
|
5,043 |
|
|
35,204 |
|
|
13,389 |
|
Net interest income after provision for credit losses |
241,622 |
|
|
251,362 |
|
|
243,687 |
|
|
236,521 |
|
|
233,127 |
|
|
492,984 |
|
|
449,863 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management |
24,139 |
|
|
23,977 |
|
|
22,726 |
|
|
22,634 |
|
|
22,617 |
|
|
48,116 |
|
|
45,603 |
|
Mortgage banking |
37,411 |
|
|
18,158 |
|
|
24,182 |
|
|
42,014 |
|
|
39,834 |
|
|
55,569 |
|
|
70,794 |
|
Service charges on deposit accounts |
9,277 |
|
|
8,848 |
|
|
9,065 |
|
|
9,331 |
|
|
9,151 |
|
|
18,125 |
|
|
18,008 |
|
Gains (losses) on investment securities, net |
864 |
|
|
1,364 |
|
|
(2,649 |
) |
|
90 |
|
|
12 |
|
|
2,228 |
|
|
(339 |
) |
Fees from covered call options |
643 |
|
|
1,784 |
|
|
626 |
|
|
627 |
|
|
669 |
|
|
2,427 |
|
|
2,266 |
|
Trading (losses) gains, net |
(44 |
) |
|
(171 |
) |
|
(155 |
) |
|
(61 |
) |
|
124 |
|
|
(215 |
) |
|
227 |
|
Operating lease income, net |
11,733 |
|
|
10,796 |
|
|
10,882 |
|
|
9,132 |
|
|
8,746 |
|
|
22,529 |
|
|
18,437 |
|
Other |
14,135 |
|
|
16,901 |
|
|
10,631 |
|
|
16,163 |
|
|
14,080 |
|
|
31,036 |
|
|
25,916 |
|
Total non-interest income |
98,158 |
|
|
81,657 |
|
|
75,308 |
|
|
99,930 |
|
|
95,233 |
|
|
179,815 |
|
|
180,912 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
133,732 |
|
|
125,723 |
|
|
122,111 |
|
|
123,855 |
|
|
121,675 |
|
|
259,455 |
|
|
234,111 |
|
Equipment |
12,759 |
|
|
11,770 |
|
|
11,523 |
|
|
10,827 |
|
|
10,527 |
|
|
24,529 |
|
|
20,599 |
|
Operating lease equipment depreciation |
8,768 |
|
|
8,319 |
|
|
8,462 |
|
|
7,370 |
|
|
6,940 |
|
|
17,087 |
|
|
13,473 |
|
Occupancy, net |
15,921 |
|
|
16,245 |
|
|
15,980 |
|
|
14,404 |
|
|
13,663 |
|
|
32,166 |
|
|
27,430 |
|
Data processing |
6,204 |
|
|
7,525 |
|
|
8,447 |
|
|
9,335 |
|
|
8,752 |
|
|
13,729 |
|
|
17,245 |
|
Advertising and marketing |
12,845 |
|
|
9,858 |
|
|
9,414 |
|
|
11,120 |
|
|
11,782 |
|
|
22,703 |
|
|
20,606 |
|
Professional fees |
6,228 |
|
|
5,556 |
|
|
9,259 |
|
|
9,914 |
|
|
6,484 |
|
|
11,784 |
|
|
13,133 |
|
Amortization of other intangible assets |
2,957 |
|
|
2,942 |
|
|
1,407 |
|
|
1,163 |
|
|
997 |
|
|
5,899 |
|
|
2,001 |
|
FDIC insurance |
4,127 |
|
|
3,576 |
|
|
4,044 |
|
|
4,205 |
|
|
4,598 |
|
|
7,703 |
|
|
8,960 |
|
OREO expense, net |
1,290 |
|
|
632 |
|
|
1,618 |
|
|
596 |
|
|
980 |
|
|
1,922 |
|
|
3,906 |
|
Other |
24,776 |
|
|
22,228 |
|
|
19,068 |
|
|
20,848 |
|
|
20,371 |
|
|
47,004 |
|
|
39,654 |
|
Total non-interest expense |
229,607 |
|
|
214,374 |
|
|
211,333 |
|
|
213,637 |
|
|
206,769 |
|
|
443,981 |
|
|
401,118 |
|
Income before taxes |
110,173 |
|
|
118,645 |
|
|
107,662 |
|
|
122,814 |
|
|
121,591 |
|
|
228,818 |
|
|
229,657 |
|
Income tax expense |
28,707 |
|
|
29,499 |
|
|
28,005 |
|
|
30,866 |
|
|
32,011 |
|
|
58,206 |
|
|
58,096 |
|
Net income |
$ |
81,466 |
|
|
$ |
89,146 |
|
|
$ |
79,657 |
|
|
$ |
91,948 |
|
|
$ |
89,580 |
|
|
$ |
170,612 |
|
|
$ |
171,561 |
|
Preferred stock dividends |
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
2,050 |
|
|
4,100 |
|
|
4,100 |
|
Net income applicable to common shares |
$ |
79,416 |
|
|
$ |
87,096 |
|
|
$ |
77,607 |
|
|
$ |
89,898 |
|
|
$ |
87,530 |
|
|
$ |
166,512 |
|
|
$ |
167,461 |
|
Net income per common share - Basic |
$ |
1.40 |
|
|
$ |
1.54 |
|
|
$ |
1.38 |
|
|
$ |
1.59 |
|
|
$ |
1.55 |
|
|
$ |
2.94 |
|
|
$ |
2.98 |
|
Net income per common share - Diluted |
$ |
1.38 |
|
|
$ |
1.52 |
|
|
$ |
1.35 |
|
|
$ |
1.57 |
|
|
$ |
1.53 |
|
|
$ |
2.91 |
|
|
$ |
2.93 |
|
Cash dividends declared per common share |
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
0.19 |
|
|
$ |
0.50 |
|
|
$ |
0.38 |
|
Weighted average common shares outstanding |
56,662 |
|
|
56,529 |
|
|
56,395 |
|
|
56,366 |
|
|
56,299 |
|
|
56,596 |
|
|
56,218 |
|
Dilutive potential common shares |
699 |
|
|
699 |
|
|
892 |
|
|
918 |
|
|
928 |
|
|
700 |
|
|
909 |
|
Average common shares and dilutive common shares |
57,361 |
|
|
57,228 |
|
|
57,287 |
|
|
57,284 |
|
|
57,227 |
|
|
57,296 |
|
|
57,127 |
|
TABLE 1: LOAN PORTFOLIO MIX AND GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
% Growth From |
(Dollars in thousands) |
June 30,
2019 |
|
March 31,
2019 |
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
December 31, 2018 (1) |
|
June 30,
2018 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
8,270,774 |
|
|
$ |
7,994,191 |
|
|
$ |
7,828,538 |
|
|
$ |
7,473,958 |
|
|
$ |
7,289,060 |
|
11 |
% |
|
13 |
% |
Commercial real estate |
7,276,244 |
|
|
6,973,505 |
|
|
6,933,252 |
|
|
6,746,774 |
|
|
6,575,084 |
|
10 |
|
|
11 |
|
Home equity |
527,370 |
|
|
528,448 |
|
|
552,343 |
|
|
578,844 |
|
|
593,500 |
|
(9 |
) |
|
(11 |
) |
Residential real estate |
1,118,178 |
|
|
1,053,524 |
|
|
1,002,464 |
|
|
924,250 |
|
|
895,470 |
|
23 |
|
|
25 |
|
Premium finance receivables - commercial |
3,368,423 |
|
|
2,988,788 |
|
|
2,841,659 |
|
|
2,885,327 |
|
|
2,833,452 |
|
37 |
|
|
19 |
|
Premium finance receivables - life insurance |
4,634,478 |
|
|
4,555,369 |
|
|
4,541,794 |
|
|
4,398,971 |
|
|
4,302,288 |
|
4 |
|
|
8 |
|
Consumer and other |
109,192 |
|
|
120,804 |
|
|
120,641 |
|
|
115,827 |
|
|
121,706 |
|
(19 |
) |
|
(10 |
) |
Total loans, net of unearned income |
$ |
25,304,659 |
|
|
$ |
24,214,629 |
|
|
$ |
23,820,691 |
|
|
$ |
23,123,951 |
|
|
$ |
22,610,560 |
|
13 |
% |
|
12 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
33 |
% |
|
33 |
% |
|
33 |
% |
|
32 |
% |
|
32 |
% |
|
|
|
Commercial real estate |
29 |
|
|
29 |
|
|
29 |
|
|
29 |
|
|
29 |
|
|
|
|
Home equity |
2 |
|
|
2 |
|
|
2 |
|
|
3 |
|
|
3 |
|
|
|
|
Residential real estate |
4 |
|
|
4 |
|
|
4 |
|
|
4 |
|
|
4 |
|
|
|
|
Premium finance receivables - commercial |
13 |
|
|
12 |
|
|
12 |
|
|
12 |
|
|
12 |
|
|
|
|
Premium finance receivables - life insurance |
18 |
|
|
19 |
|
|
19 |
|
|
19 |
|
|
19 |
|
|
|
|
Consumer and other |
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
|
|
Total loans, net of unearned income |
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
- Annualized.
TABLE 2: COMMERCIAL AND COMMERCIAL REAL ESTATE LOAN
PORTFOLIOS
|
As of June 30, 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 |
$ |
5,295,775 |
|
|
34.0 |
% |
|
$ |
35,902 |
|
|
$ |
488 |
|
|
$ |
52,756 |
|
Franchise |
926,521 |
|
|
6.0 |
|
|
11,076 |
|
|
— |
|
|
8,314 |
|
Mortgage warehouse lines of credit |
275,170 |
|
|
1.8 |
|
|
— |
|
|
— |
|
|
2,195 |
|
Asset-based lending |
1,068,226 |
|
|
6.9 |
|
|
568 |
|
|
— |
|
|
9,335 |
|
Leases |
680,757 |
|
|
4.4 |
|
|
58 |
|
|
— |
|
|
1,879 |
|
PCI - commercial loans (1) |
24,325 |
|
|
0.2 |
|
|
— |
|
|
1,451 |
|
|
414 |
|
Total commercial |
$ |
8,270,774 |
|
|
53.3 |
% |
|
$ |
47,604 |
|
|
$ |
1,939 |
|
|
$ |
74,893 |
|
Commercial Real Estate: |
|
|
|
|
|
|
|
|
|
Construction |
$ |
838,499 |
|
|
5.3 |
% |
|
$ |
1,030 |
|
|
$ |
— |
|
|
$ |
9,343 |
|
Land |
145,639 |
|
|
0.9 |
|
|
1,226 |
|
|
— |
|
|
4,193 |
|
Office |
957,218 |
|
|
6.2 |
|
|
8,981 |
|
|
— |
|
|
9,778 |
|
Industrial |
956,530 |
|
|
6.2 |
|
|
368 |
|
|
— |
|
|
6,591 |
|
Retail |
976,201 |
|
|
6.3 |
|
|
6,867 |
|
|
— |
|
|
6,515 |
|
Multi-family |
1,240,067 |
|
|
8.0 |
|
|
296 |
|
|
— |
|
|
11,983 |
|
Mixed use and other |
2,035,099 |
|
|
13.0 |
|
|
2,107 |
|
|
— |
|
|
14,813 |
|
PCI - commercial real estate (1) |
126,991 |
|
|
0.8 |
|
|
— |
|
|
5,124 |
|
|
54 |
|
Total commercial real estate |
$ |
7,276,244 |
|
|
46.7 |
% |
|
$ |
20,875 |
|
|
$ |
5,124 |
|
|
$ |
63,270 |
|
Total commercial and commercial real estate |
$ |
15,547,018 |
|
|
100.0 |
% |
|
$ |
68,479 |
|
|
$ |
7,063 |
|
|
$ |
138,163 |
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate - collateral location by
state: |
|
|
|
|
|
|
|
|
|
Illinois |
$ |
5,505,290 |
|
|
75.7 |
% |
|
|
|
|
|
|
Wisconsin |
740,288 |
|
|
10.2 |
|
|
|
|
|
|
|
Total primary markets |
$ |
6,245,578 |
|
|
85.9 |
% |
|
|
|
|
|
|
Indiana |
179,977 |
|
|
2.5 |
|
|
|
|
|
|
|
Florida |
60,343 |
|
|
0.8 |
|
|
|
|
|
|
|
Arizona |
62,607 |
|
|
0.9 |
|
|
|
|
|
|
|
Michigan |
37,271 |
|
|
0.5 |
|
|
|
|
|
|
|
California |
68,497 |
|
|
0.9 |
|
|
|
|
|
|
|
Other |
621,971 |
|
|
8.5 |
|
|
|
|
|
|
|
Total commercial real estate |
$ |
7,276,244 |
|
|
100.0 |
% |
|
|
|
|
|
|
- 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.
TABLE 3: DEPOSIT PORTFOLIO MIX AND GROWTH
RATES
|
|
|
|
|
|
|
|
|
|
% Growth From |
(Dollars in thousands) |
June 30,
2019 |
|
March 31,
2019 |
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
December 31, 2018 (1) |
|
June 30,
2018 |
Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
$ |
6,719,958 |
|
|
$ |
6,353,456 |
|
|
$ |
6,569,880 |
|
|
$ |
6,399,213 |
|
|
$ |
6,520,724 |
|
5 |
% |
|
3 |
% |
NOW and interest bearing demand deposits |
2,788,976 |
|
|
2,948,576 |
|
|
2,897,133 |
|
|
2,512,259 |
|
|
2,452,474 |
|
(8 |
) |
|
14 |
|
Wealth management deposits (2) |
3,220,256 |
|
|
3,328,781 |
|
|
2,996,764 |
|
|
2,520,120 |
|
|
2,523,572 |
|
15 |
|
|
28 |
|
Money market |
6,460,098 |
|
|
6,093,596 |
|
|
5,704,866 |
|
|
5,429,921 |
|
|
5,205,678 |
|
27 |
|
|
24 |
|
Savings |
2,823,904 |
|
|
2,729,626 |
|
|
2,665,194 |
|
|
2,595,164 |
|
|
2,763,062 |
|
12 |
|
|
2 |
|
Time certificates of deposit |
5,505,623 |
|
|
5,350,707 |
|
|
5,260,841 |
|
|
5,460,038 |
|
|
4,899,969 |
|
9 |
|
|
12 |
|
Total deposits |
$ |
27,518,815 |
|
|
$ |
26,804,742 |
|
|
$ |
26,094,678 |
|
|
$ |
24,916,715 |
|
|
$ |
24,365,479 |
|
11 |
% |
|
13 |
% |
Mix: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
24 |
% |
|
24 |
% |
|
25 |
% |
|
26 |
% |
|
27 |
% |
|
|
|
NOW and interest bearing demand deposits |
10 |
|
|
11 |
|
|
11 |
|
|
10 |
|
|
10 |
|
|
|
|
Wealth management deposits (2) |
12 |
|
|
12 |
|
|
12 |
|
|
10 |
|
|
11 |
|
|
|
|
Money market |
24 |
|
|
23 |
|
|
22 |
|
|
22 |
|
|
21 |
|
|
|
|
Savings |
10 |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
11 |
|
|
|
|
Time certificates of deposit |
20 |
|
|
20 |
|
|
20 |
|
|
22 |
|
|
20 |
|
|
|
|
Total deposits |
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
- Annualized.
- 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.
TABLE 4: TIME CERTIFICATES OF DEPOSIT
MATURITY/RE-PRICING ANALYSIS
As of June 30, 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 |
$ |
75,122 |
|
|
$ |
32,378 |
|
|
$ |
103,079 |
|
|
$ |
745,645 |
|
|
$ |
956,224 |
|
|
1.68 |
% |
4-6 months |
— |
|
|
22,108 |
|
|
— |
|
|
653,009 |
|
|
675,117 |
|
|
1.78 |
|
7-9 months |
— |
|
|
22,094 |
|
|
— |
|
|
778,564 |
|
|
800,658 |
|
|
2.04 |
|
10-12 months |
— |
|
|
10,439 |
|
|
— |
|
|
1,072,876 |
|
|
1,083,315 |
|
|
2.19 |
|
13-18 months |
— |
|
|
15,064 |
|
|
— |
|
|
520,874 |
|
|
535,938 |
|
|
2.17 |
|
19-24 months |
— |
|
|
9,844 |
|
|
— |
|
|
850,748 |
|
|
860,592 |
|
|
2.71 |
|
24+ months |
1,000 |
|
|
9,301 |
|
|
— |
|
|
583,478 |
|
|
593,779 |
|
|
2.60 |
|
Total |
$ |
76,122 |
|
|
$ |
121,228 |
|
|
$ |
103,079 |
|
|
$ |
5,205,194 |
|
|
$ |
5,505,623 |
|
|
2.15 |
% |
- This category of certificates of deposit is shown by
contractual maturity date.
- This category includes variable rate certificates of
deposit and savings certificates with the majority repricing on at
least a monthly basis.
- Weighted-average rate excludes the impact of purchase
accounting fair value adjustments.
TABLE 5: QUARTERLY AVERAGE BALANCES
|
|
Average Balance for three months ended, |
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(In thousands) |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
Interest-bearing deposits with banks and cash equivalents
(1) |
|
$ |
893,332 |
|
|
$ |
897,629 |
|
|
$ |
1,042,860 |
|
|
$ |
998,004 |
|
|
$ |
759,425 |
|
Investment securities (2) |
|
3,653,580 |
|
|
3,630,577 |
|
|
3,347,496 |
|
|
3,046,272 |
|
|
2,890,828 |
|
FHLB and FRB stock |
|
105,491 |
|
|
94,882 |
|
|
98,084 |
|
|
88,335 |
|
|
115,119 |
|
Liquidity management assets (6) |
|
4,652,403 |
|
|
4,623,088 |
|
|
4,488,440 |
|
|
4,132,611 |
|
|
3,765,372 |
|
Other earning assets (3)(6) |
|
15,719 |
|
|
13,591 |
|
|
16,204 |
|
|
17,862 |
|
|
21,244 |
|
Mortgage loans held-for-sale |
|
281,732 |
|
|
188,190 |
|
|
265,717 |
|
|
380,235 |
|
|
403,967 |
|
Loans, net of unearned income (4)(6) |
|
24,553,263 |
|
|
23,880,916 |
|
|
23,164,154 |
|
|
22,823,378 |
|
|
22,283,541 |
|
Total earning assets (6) |
|
29,503,117 |
|
|
28,705,785 |
|
|
27,934,515 |
|
|
27,354,086 |
|
|
26,474,124 |
|
Allowance for loan losses |
|
(164,231 |
) |
|
(157,782 |
) |
|
(154,438 |
) |
|
(148,503 |
) |
|
(147,192 |
) |
Cash and due from banks |
|
273,679 |
|
|
283,019 |
|
|
271,403 |
|
|
268,006 |
|
|
270,240 |
|
Other assets |
|
2,443,204 |
|
|
2,385,149 |
|
|
2,128,407 |
|
|
2,051,520 |
|
|
1,970,407 |
|
Total assets |
|
$ |
32,055,769 |
|
|
$ |
31,216,171 |
|
|
$ |
30,179,887 |
|
|
$ |
29,525,109 |
|
|
$ |
28,567,579 |
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest bearing demand deposits |
|
$ |
2,878,021 |
|
|
$ |
2,803,338 |
|
|
$ |
2,671,283 |
|
|
$ |
2,519,445 |
|
|
$ |
2,295,268 |
|
Wealth management deposits |
|
2,605,690 |
|
|
2,614,035 |
|
|
2,289,904 |
|
|
2,517,141 |
|
|
2,365,191 |
|
Money market accounts |
|
6,095,285 |
|
|
5,915,525 |
|
|
5,632,268 |
|
|
5,369,324 |
|
|
4,883,645 |
|
Savings accounts |
|
2,752,828 |
|
|
2,715,422 |
|
|
2,553,133 |
|
|
2,672,077 |
|
|
2,702,665 |
|
Time deposits |
|
5,322,384 |
|
|
5,267,796 |
|
|
5,381,029 |
|
|
5,214,637 |
|
|
4,557,187 |
|
Interest-bearing deposits |
|
19,654,208 |
|
|
19,316,116 |
|
|
18,527,617 |
|
|
18,292,624 |
|
|
16,803,956 |
|
Federal Home Loan Bank advances |
|
869,812 |
|
|
594,335 |
|
|
551,846 |
|
|
429,739 |
|
|
1,006,407 |
|
Other borrowings |
|
419,064 |
|
|
465,571 |
|
|
385,878 |
|
|
268,278 |
|
|
240,066 |
|
Subordinated notes |
|
220,771 |
|
|
139,217 |
|
|
139,186 |
|
|
139,155 |
|
|
139,125 |
|
Junior subordinated debentures |
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
|
253,566 |
|
Total interest-bearing liabilities |
|
21,417,421 |
|
|
20,768,805 |
|
|
19,858,093 |
|
|
19,383,362 |
|
|
18,443,120 |
|
Non-interest bearing deposits |
|
6,487,627 |
|
|
6,444,378 |
|
|
6,542,228 |
|
|
6,461,195 |
|
|
6,539,731 |
|
Other liabilities |
|
736,381 |
|
|
693,910 |
|
|
578,912 |
|
|
548,609 |
|
|
520,574 |
|
Equity |
|
3,414,340 |
|
|
3,309,078 |
|
|
3,200,654 |
|
|
3,131,943 |
|
|
3,064,154 |
|
Total liabilities and shareholders’ equity |
|
$ |
32,055,769 |
|
|
$ |
31,216,171 |
|
|
$ |
30,179,887 |
|
|
$ |
29,525,109 |
|
|
$ |
28,567,579 |
|
|
|
|
|
|
|
|
|
|
|
|
Net free funds/contribution (5) |
|
$ |
8,085,696 |
|
|
$ |
7,936,980 |
|
|
$ |
8,076,422 |
|
|
$ |
7,970,724 |
|
|
$ |
8,031,004 |
|
- Includes interest-bearing deposits from banks, federal
funds sold and securities purchased under resale
agreements.
- 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.
- Other earning assets include brokerage customer receivables
and trading account securities.
- Loans, net of unearned income, include non-accrual
loans.
- 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.
- See "Supplemental Non-GAAP Financial Measures/Ratios" at
Table 18 for additional information on this performance
measure/ratio.
TABLE 6: QUARTERLY NET INTEREST
INCOME
|
|
Net Interest Income for three months ended, |
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(In thousands) |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
Interest income: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks and cash equivalents |
|
$ |
5,206 |
|
|
$ |
5,300 |
|
|
$ |
5,628 |
|
|
$ |
5,423 |
|
|
$ |
3,244 |
|
Investment securities |
|
28,290 |
|
|
28,521 |
|
|
27,242 |
|
|
22,285 |
|
|
20,454 |
|
FHLB and FRB stock |
|
1,439 |
|
|
1,355 |
|
|
1,343 |
|
|
1,235 |
|
|
1,455 |
|
Liquidity management assets (2) |
|
34,935 |
|
|
35,176 |
|
|
34,213 |
|
|
28,943 |
|
|
25,153 |
|
Other earning assets (2) |
|
184 |
|
|
165 |
|
|
253 |
|
|
178 |
|
|
172 |
|
Mortgage loans held-for-sale |
|
3,104 |
|
|
2,209 |
|
|
3,409 |
|
|
5,285 |
|
|
4,226 |
|
Loans, net of unearned income (2) |
|
310,191 |
|
|
298,021 |
|
|
284,291 |
|
|
272,075 |
|
|
255,875 |
|
Total interest income |
|
$ |
348,414 |
|
|
$ |
335,571 |
|
|
$ |
322,166 |
|
|
$ |
306,481 |
|
|
$ |
285,426 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
NOW and interest bearing demand deposits |
|
$ |
5,553 |
|
|
$ |
4,613 |
|
|
$ |
4,007 |
|
|
$ |
2,479 |
|
|
$ |
1,901 |
|
Wealth management deposits |
|
7,091 |
|
|
7,000 |
|
|
7,119 |
|
|
8,287 |
|
|
6,992 |
|
Money market accounts |
|
21,451 |
|
|
19,460 |
|
|
16,936 |
|
|
13,260 |
|
|
8,111 |
|
Savings accounts |
|
4,959 |
|
|
4,249 |
|
|
3,096 |
|
|
2,907 |
|
|
2,709 |
|
Time deposits |
|
27,970 |
|
|
25,654 |
|
|
24,817 |
|
|
21,803 |
|
|
15,580 |
|
Interest-bearing deposits |
|
67,024 |
|
|
60,976 |
|
|
55,975 |
|
|
48,736 |
|
|
35,293 |
|
Federal Home Loan Bank advances |
|
4,193 |
|
|
2,450 |
|
|
2,563 |
|
|
1,947 |
|
|
4,263 |
|
Other borrowings |
|
3,525 |
|
|
3,633 |
|
|
3,199 |
|
|
2,003 |
|
|
1,698 |
|
Subordinated notes |
|
2,806 |
|
|
1,775 |
|
|
1,788 |
|
|
1,773 |
|
|
1,787 |
|
Junior subordinated debentures |
|
3,064 |
|
|
3,150 |
|
|
2,983 |
|
|
2,940 |
|
|
2,836 |
|
Total interest expense |
|
$ |
80,612 |
|
|
$ |
71,984 |
|
|
$ |
66,508 |
|
|
$ |
57,399 |
|
|
$ |
45,877 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: Fully taxable-equivalent adjustment |
|
(1,600 |
) |
|
(1,601 |
) |
|
(1,570 |
) |
|
(1,519 |
) |
|
(1,379 |
) |
Net interest income (GAAP) (1) |
|
266,202 |
|
|
261,986 |
|
|
254,088 |
|
|
247,563 |
|
|
238,170 |
|
Fully taxable-equivalent adjustment |
|
1,600 |
|
|
1,601 |
|
|
1,570 |
|
|
1,519 |
|
|
1,379 |
|
Net interest income, fully taxable-equivalent (non-GAAP)
(1) |
|
$ |
267,802 |
|
|
$ |
263,587 |
|
|
$ |
255,658 |
|
|
$ |
249,082 |
|
|
$ |
239,549 |
|
- See "Supplemental Non-GAAP Financial Measures/Ratios" at
Table 18 for additional information on this performance
measure/ratio.
- Interest income on tax-advantaged loans, trading securities
and investment securities reflects a taxable-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 June 30, 2019, March 31, 2019, December 31, 2018,
September 30, 2018 and June 30, 2018 were $1.6 million, $1.6
million, $1.6 million, $1.5 million and $1.4 million,
respectively.
TABLE 7: QUARTERLY NET INTEREST
MARGIN
|
|
Net Interest Margin for three months ended, |
|
|
June 30,
2019 |
|
March 31,
2019 |
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
Yield earned on: |
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks and cash equivalents |
|
2.34 |
% |
|
2.39 |
% |
|
2.14 |
% |
|
2.16 |
% |
|
1.71 |
% |
Investment securities |
|
3.11 |
|
|
3.19 |
|
|
3.23 |
|
|
2.90 |
|
|
2.84 |
|
FHLB and FRB stock |
|
5.47 |
|
|
5.79 |
|
|
5.43 |
|
|
5.54 |
|
|
5.07 |
|
Liquidity management assets |
|
3.01 |
|
|
3.09 |
|
|
3.02 |
|
|
2.78 |
|
|
2.68 |
|
Other earning assets |
|
4.68 |
|
|
4.91 |
|
|
6.19 |
|
|
3.95 |
|
|
3.24 |
|
Mortgage loans held-for-sale |
|
4.42 |
|
|
4.76 |
|
|
5.09 |
|
|
5.51 |
|
|
4.20 |
|
Loans, net of unearned income |
|
5.07 |
|
|
5.06 |
|
|
4.87 |
|
|
4.73 |
|
|
4.61 |
|
Total earning assets |
|
4.74 |
% |
|
4.74 |
% |
|
4.58 |
% |
|
4.45 |
% |
|
4.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
Rate paid on: |
|
|
|
|
|
|
|
|
|
|
NOW and interest bearing demand deposits |
|
0.77 |
% |
|
0.67 |
% |
|
0.60 |
% |
|
0.39 |
% |
|
0.33 |
% |
Wealth management deposits |
|
1.09 |
|
|
1.09 |
|
|
1.23 |
|
|
1.31 |
|
|
1.19 |
|
Money market accounts |
|
1.41 |
|
|
1.33 |
|
|
1.19 |
|
|
0.98 |
|
|
0.67 |
|
Savings accounts |
|
0.72 |
|
|
0.63 |
|
|
0.48 |
|
|
0.43 |
|
|
0.40 |
|
Time deposits |
|
2.11 |
|
|
1.98 |
|
|
1.83 |
|
|
1.66 |
|
|
1.37 |
|
Interest-bearing deposits |
|
1.37 |
|
|
1.29 |
|
|
1.20 |
|
|
1.06 |
|
|
0.84 |
|
Federal Home Loan Bank advances |
|
1.93 |
|
|
1.67 |
|
|
1.84 |
|
|
1.80 |
|
|
1.70 |
|
Other borrowings |
|
3.37 |
|
|
3.16 |
|
|
3.29 |
|
|
2.96 |
|
|
2.84 |
|
Subordinated notes |
|
5.08 |
|
|
5.10 |
|
|
5.14 |
|
|
5.10 |
|
|
5.14 |
|
Junior subordinated debentures |
|
4.78 |
|
|
4.97 |
|
|
4.60 |
|
|
4.54 |
|
|
4.42 |
|
Total interest-bearing liabilities |
|
1.51 |
% |
|
1.40 |
% |
|
1.33 |
% |
|
1.17 |
% |
|
1.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread (1)(3) |
|
3.23 |
% |
|
3.34 |
% |
|
3.25 |
% |
|
3.28 |
% |
|
3.32 |
% |
Less: Fully taxable-equivalent adjustment |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
Net free funds/contribution (2) |
|
0.41 |
|
|
0.38 |
|
|
0.38 |
|
|
0.33 |
|
|
0.31 |
|
Net interest margin (GAAP) (3) |
|
3.62 |
% |
|
3.70 |
% |
|
3.61 |
% |
|
3.59 |
% |
|
3.61 |
% |
Fully taxable-equivalent adjustment |
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
|
0.02 |
|
Net interest margin, fully taxable-equivalent (non-GAAP)
(3) |
|
3.64 |
% |
|
3.72 |
% |
|
3.63 |
% |
|
3.61 |
% |
|
3.63 |
% |
- Interest rate spread is the difference between the yield
earned on earning assets and the rate paid on interest-bearing
liabilities.
- 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.
- See "Supplemental Non-GAAP Financial Measures/Ratios" at
Table 18 for additional information on this performance
measure/ratio.
TABLE 8: YEAR-TO-DATE AVERAGE BALANCES,
AND NET INTEREST INCOME AND MARGIN
|
Average Balance for six months ended, |
Interest for six months ended, |
Yield/Rate for six months ended, |
(Dollars in thousands) |
June 30,
2019 |
|
June 30,
2018 |
June 30,
2019 |
|
June 30,
2018 |
June 30,
2019 |
|
June 30,
2018 |
Interest-bearing deposits with banks and cash equivalents
(1) |
$ |
895,497 |
|
|
$ |
754,725 |
|
$ |
10,506 |
|
|
$ |
6,040 |
|
2.37 |
% |
|
1.61 |
% |
Investment securities (2) |
3,642,142 |
|
|
2,891,718 |
|
56,811 |
|
|
40,113 |
|
3.15 |
|
|
2.80 |
|
FHLB and FRB stock |
100,187 |
|
|
110,293 |
|
2,794 |
|
|
2,753 |
|
5.62 |
|
|
5.04 |
|
Liquidity management assets (3)(8) |
$ |
4,637,826 |
|
|
$ |
3,756,736 |
|
$ |
70,111 |
|
|
$ |
48,906 |
|
3.05 |
% |
|
2.63 |
% |
Other earning assets (3)(4)(8) |
14,661 |
|
|
24,390 |
|
349 |
|
|
346 |
|
4.79 |
|
|
2.86 |
|
Mortgage loans held-for-sale |
235,220 |
|
|
342,914 |
|
5,313 |
|
|
7,044 |
|
4.55 |
|
|
4.14 |
|
Loans, net of unearned income (3)(5)(8) |
24,218,946 |
|
|
21,999,022 |
|
608,212 |
|
|
491,539 |
|
5.06 |
|
|
4.51 |
|
Total earning assets (8) |
$ |
29,106,653 |
|
|
$ |
26,123,062 |
|
$ |
683,985 |
|
|
$ |
547,835 |
|
4.74 |
% |
|
4.23 |
% |
Allowance for loan losses |
(161,024 |
) |
|
(145,161 |
) |
|
|
|
|
|
|
Cash and due from banks |
278,324 |
|
|
262,408 |
|
|
|
|
|
|
|
Other assets |
2,414,336 |
|
|
1,950,374 |
|
|
|
|
|
|
|
Total assets |
$ |
31,638,289 |
|
|
$ |
28,190,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW and interest bearing demand deposits |
$ |
2,840,886 |
|
|
$ |
2,275,589 |
|
$ |
10,166 |
|
|
$ |
3,286 |
|
0.72 |
% |
|
0.29 |
% |
Wealth management deposits |
2,609,839 |
|
|
2,307,983 |
|
14,091 |
|
|
12,433 |
|
1.09 |
|
|
1.09 |
|
Money market accounts |
6,005,902 |
|
|
4,703,135 |
|
40,911 |
|
|
12,778 |
|
1.37 |
|
|
0.55 |
|
Savings accounts |
2,734,228 |
|
|
2,757,911 |
|
9,208 |
|
|
5,440 |
|
0.68 |
|
|
0.40 |
|
Time deposits |
5,295,241 |
|
|
4,440,299 |
|
53,624 |
|
|
27,905 |
|
2.04 |
|
|
1.27 |
|
Interest-bearing deposits |
$ |
19,486,096 |
|
|
$ |
16,484,917 |
|
$ |
128,000 |
|
|
$ |
61,842 |
|
1.32 |
% |
|
0.76 |
% |
Federal Home Loan Bank advances |
732,834 |
|
|
939,978 |
|
6,643 |
|
|
7,902 |
|
1.83 |
|
|
1.70 |
|
Other borrowings |
442,189 |
|
|
251,532 |
|
7,158 |
|
|
3,397 |
|
3.26 |
|
|
2.72 |
|
Subordinated notes |
180,219 |
|
|
139,110 |
|
4,581 |
|
|
3,560 |
|
5.08 |
|
|
5.12 |
|
Junior subordinated debentures |
253,566 |
|
|
253,566 |
|
6,214 |
|
|
5,299 |
|
4.88 |
|
|
4.16 |
|
Total interest-bearing liabilities |
$ |
21,094,904 |
|
|
$ |
18,069,103 |
|
$ |
152,596 |
|
|
$ |
82,000 |
|
1.46 |
% |
|
0.91 |
% |
Non-interest bearing deposits |
6,466,122 |
|
|
6,589,511 |
|
|
|
|
|
|
|
Other liabilities |
715,263 |
|
|
502,007 |
|
|
|
|
|
|
|
Equity |
3,362,000 |
|
|
3,030,062 |
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
31,638,289 |
|
|
$ |
28,190,683 |
|
|
|
|
|
|
|
Interest rate spread (6)(8) |
|
|
|
|
|
|
3.28 |
% |
|
3.32 |
% |
Less: Fully taxable-equivalent adjustment |
|
|
|
(3,201 |
) |
|
(2,583 |
) |
(0.02 |
) |
|
(0.02 |
) |
Net free funds/contribution (7) |
$ |
8,011,749 |
|
|
$ |
8,053,959 |
|
|
|
|
0.40 |
|
|
0.28 |
|
Net interest income/ margin (GAAP) (8) |
|
|
|
$ |
528,188 |
|
|
$ |
463,252 |
|
3.66 |
% |
|
3.58 |
% |
Fully taxable-equivalent adjustment |
|
|
|
3,201 |
|
|
2,583 |
|
0.02 |
|
|
0.02 |
|
Net interest income/ margin, fully taxable-equivalent (non-GAAP)
(8) |
|
|
|
$ |
531,389 |
|
|
$ |
465,835 |
|
3.68 |
% |
|
3.60 |
% |
- Includes interest-bearing deposits from banks, federal
funds sold and securities purchased under resale
agreements.
- 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.
- Interest income on tax-advantaged loans, trading securities
and investment securities reflects a taxable-equivalent adjustment
based on a marginal federal corporate tax rate in effect as of the
applicable period. The total adjustments for the six months ended
June 30, 2019 and 2018 were $3.2 million and $2.6 million
respectively.
- Other earning assets include brokerage customer receivables
and trading account securities.
- Loans, net of unearned income, include non-accrual
loans.
- Interest rate spread is the difference between the yield
earned on earning assets and the rate paid on interest-bearing
liabilities.
- 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.
- See “Supplemental Non-GAAP Financial Measures/Ratios” at
Table 18 for additional information on this performance
ratio.
TABLE 9: 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 is as follows:
Static Shock Scenario |
|
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
June 30, 2019 |
|
17.3 |
% |
|
8.9 |
% |
|
(10.2 |
)% |
March 31, 2019 |
|
14.9 |
|
|
7.8 |
|
|
(8.5 |
) |
December 31, 2018 |
|
15.6 |
|
|
7.9 |
|
|
(8.6 |
) |
September 30, 2018 |
|
18.1 |
|
|
9.1 |
|
|
(10.0 |
) |
June 30, 2018 |
|
19.3 |
|
|
9.7 |
|
|
(10.7 |
) |
Ramp Scenario |
+200
Basis
Points |
|
+100
Basis
Points |
|
-100
Basis
Points |
June 30, 2019 |
8.3 |
% |
|
4.3 |
% |
|
(4.6 |
)% |
March 31, 2019 |
6.7 |
|
|
3.5 |
|
|
(3.3 |
) |
December 31, 2018 |
7.4 |
|
|
3.8 |
|
|
(3.6 |
) |
September 30, 2018 |
8.5 |
|
|
4.3 |
|
|
(4.2 |
) |
June 30, 2018 |
8.7 |
|
|
4.5 |
|
|
(4.4 |
) |
These results indicate that the Company has
positioned its balance sheet to benefit from a rise in interest
rates. This analysis also indicates that the Company would
benefit to a greater magnitude should a rise in interest rates be
significant (i.e., 200 basis points) and immediate (Static Shock
Scenario).
TABLE 10: MATURITIES AND SENSITIVITIES
TO CHANGES IN INTEREST RATES
|
Loans repricing or maturity period |
|
|
As of June 30, 2019 |
One year or less |
|
From one to five years |
|
Over five years |
|
|
(In thousands) |
|
|
|
Total |
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
Fixed rate |
174,882 |
|
|
1,151,480 |
|
|
795,619 |
|
|
2,121,981 |
|
Variable rate |
6,142,234 |
|
|
6,418 |
|
|
141 |
|
|
6,148,793 |
|
Total commercial |
$ |
6,317,116 |
|
|
$ |
1,157,898 |
|
|
$ |
795,760 |
|
|
$ |
8,270,774 |
|
Commercial real estate |
|
|
|
|
|
|
|
Fixed rate |
436,317 |
|
|
2,047,111 |
|
|
327,794 |
|
|
2,811,222 |
|
Variable rate |
4,435,060 |
|
|
29,954 |
|
|
8 |
|
|
4,465,022 |
|
Total commercial real estate |
$ |
4,871,377 |
|
|
$ |
2,077,065 |
|
|
$ |
327,802 |
|
|
$ |
7,276,244 |
|
Home equity |
|
|
|
|
|
|
|
Fixed rate |
21,140 |
|
|
8,325 |
|
|
9,019 |
|
|
38,484 |
|
Variable rate |
488,886 |
|
|
— |
|
|
— |
|
|
488,886 |
|
Total home equity |
$ |
510,026 |
|
|
$ |
8,325 |
|
|
$ |
9,019 |
|
|
$ |
527,370 |
|
Residential real estate |
|
|
|
|
|
|
|
Fixed rate |
28,796 |
|
|
20,535 |
|
|
238,940 |
|
|
288,271 |
|
Variable rate |
50,646 |
|
|
336,681 |
|
|
442,580 |
|
|
829,907 |
|
Total residential real estate |
$ |
79,442 |
|
|
$ |
357,216 |
|
|
$ |
681,520 |
|
|
$ |
1,118,178 |
|
Premium finance receivables - commercial |
|
|
|
|
|
|
|
Fixed rate |
3,302,806 |
|
|
65,617 |
|
|
— |
|
|
3,368,423 |
|
Variable rate |
— |
|
|
— |
|
|
— |
|
|
— |
|
Total premium finance receivables - commercial |
$ |
3,302,806 |
|
|
$ |
65,617 |
|
|
$ |
— |
|
|
$ |
3,368,423 |
|
Premium finance receivables - life insurance |
|
|
|
|
|
|
|
Fixed rate |
12,537 |
|
|
116,560 |
|
|
10,389 |
|
|
139,486 |
|
Variable rate |
4,494,992 |
|
|
— |
|
|
— |
|
|
4,494,992 |
|
Total premium finance receivables - life insurance |
$ |
4,507,529 |
|
|
$ |
116,560 |
|
|
$ |
10,389 |
|
|
$ |
4,634,478 |
|
Consumer and other |
|
|
|
|
|
|
|
Fixed rate |
71,568 |
|
|
10,562 |
|
|
1,988 |
|
|
84,118 |
|
Variable rate |
25,074 |
|
|
— |
|
|
— |
|
|
25,074 |
|
Total consumer and other |
$ |
96,642 |
|
|
$ |
10,562 |
|
|
$ |
1,988 |
|
|
$ |
109,192 |
|
|
|
|
|
|
|
|
|
Total per category |
|
|
|
|
|
|
|
Fixed rate |
4,048,046 |
|
|
3,420,190 |
|
|
1,383,749 |
|
|
8,851,985 |
|
Variable rate |
15,636,892 |
|
|
373,053 |
|
|
442,729 |
|
|
16,452,674 |
|
Total loans, net of unearned income |
$ |
19,684,938 |
|
|
$ |
3,793,243 |
|
|
$ |
1,826,478 |
|
|
$ |
25,304,659 |
|
|
|
|
|
|
|
|
|
Variable Rate Loan Pricing by Index: |
|
|
|
|
|
|
|
Prime |
|
|
|
|
|
|
$ |
2,308,201 |
|
One- month LIBOR |
|
|
|
|
|
|
8,507,875 |
|
Three- month LIBOR |
|
|
|
|
|
|
417,452 |
|
Twelve- month LIBOR |
|
|
|
|
|
|
4,988,875 |
|
Other |
|
|
|
|
|
|
230,271 |
|
Total variable rate |
|
|
|
|
|
|
$ |
16,452,674 |
|
http://ml.globenewswire.com/Resource/Download/2af2045d-0af5-4205-b37e-afe936036c86
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 $8.5 billion of variable
rate loans tied to one-month LIBOR and $5.0 billion of variable
rate loans tied to twelve-month LIBOR. The above chart shows:
|
|
Basis Points (bps) Change in |
|
|
Prime |
|
1-month
LIBOR |
|
12-month
LIBOR |
|
Second Quarter 2019 |
|
+0 |
bps |
-9 |
bps |
-53 |
bps |
First
Quarter 2019 |
|
+0 |
|
-1 |
|
-30 |
|
Fourth
Quarter 2018 |
|
+25 |
|
+24 |
|
+9 |
|
Third
Quarter 2018 |
|
+25 |
|
+17 |
|
+16 |
|
Second Quarter 2018 |
|
+25 |
|
+21 |
|
+10 |
|
TABLE 11: ALLOWANCE FOR CREDIT LOSSES
|
|
Three Months Ended |
Six Months Ended |
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
June 30, |
|
June 30, |
(Dollars in thousands) |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
2019 |
|
2018 |
Allowance for loan losses at beginning of
period |
|
$ |
158,212 |
|
|
$ |
152,770 |
|
|
$ |
149,756 |
|
|
$ |
143,402 |
|
|
$ |
139,503 |
|
$ |
152,770 |
|
|
$ |
137,905 |
|
Provision for credit losses |
|
24,580 |
|
|
10,624 |
|
|
10,401 |
|
|
11,042 |
|
|
5,043 |
|
35,204 |
|
|
13,389 |
|
Other adjustments |
|
(11 |
) |
|
(27 |
) |
|
(79 |
) |
|
(18 |
) |
|
(44 |
) |
(38 |
) |
|
(84 |
) |
Reclassification (to) from allowance for unfunded
lending-related commitments |
|
(70 |
) |
|
(16 |
) |
|
(150 |
) |
|
(2 |
) |
|
— |
|
(86 |
) |
|
26 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
17,380 |
|
|
503 |
|
|
6,416 |
|
|
3,219 |
|
|
2,210 |
|
17,883 |
|
|
4,897 |
|
Commercial real estate |
|
326 |
|
|
3,734 |
|
|
219 |
|
|
208 |
|
|
155 |
|
4,060 |
|
|
968 |
|
Home equity |
|
690 |
|
|
88 |
|
|
715 |
|
|
561 |
|
|
612 |
|
778 |
|
|
969 |
|
Residential real estate |
|
287 |
|
|
3 |
|
|
267 |
|
|
337 |
|
|
180 |
|
290 |
|
|
751 |
|
Premium finance receivables - commercial |
|
5,009 |
|
|
2,210 |
|
|
1,741 |
|
|
2,512 |
|
|
3,254 |
|
7,219 |
|
|
7,975 |
|
Premium finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
Consumer and other |
|
136 |
|
|
102 |
|
|
148 |
|
|
144 |
|
|
459 |
|
238 |
|
|
588 |
|
Total charge-offs |
|
23,828 |
|
|
6,640 |
|
|
9,506 |
|
|
6,981 |
|
|
6,870 |
|
30,468 |
|
|
16,148 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
289 |
|
|
318 |
|
|
225 |
|
|
304 |
|
|
666 |
|
607 |
|
|
928 |
|
Commercial real estate |
|
247 |
|
|
480 |
|
|
1,364 |
|
|
193 |
|
|
2,387 |
|
727 |
|
|
4,074 |
|
Home equity |
|
68 |
|
|
62 |
|
|
105 |
|
|
142 |
|
|
171 |
|
130 |
|
|
294 |
|
Residential real estate |
|
140 |
|
|
29 |
|
|
47 |
|
|
466 |
|
|
1,522 |
|
169 |
|
|
1,562 |
|
Premium finance receivables - commercial |
|
734 |
|
|
556 |
|
|
567 |
|
|
1,142 |
|
|
975 |
|
1,290 |
|
|
1,360 |
|
Premium finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
Consumer and other |
|
60 |
|
|
56 |
|
|
40 |
|
|
66 |
|
|
49 |
|
116 |
|
|
96 |
|
Total recoveries |
|
1,538 |
|
|
1,501 |
|
|
2,348 |
|
|
2,313 |
|
|
5,770 |
|
3,039 |
|
|
8,314 |
|
Net charge-offs |
|
(22,290 |
) |
|
(5,139 |
) |
|
(7,158 |
) |
|
(4,668 |
) |
|
(1,100 |
) |
(27,429 |
) |
|
(7,834 |
) |
Allowance for loan losses at period end |
|
$ |
160,421 |
|
|
$ |
158,212 |
|
|
$ |
152,770 |
|
|
$ |
149,756 |
|
|
$ |
143,402 |
|
$ |
160,421 |
|
|
$ |
143,402 |
|
Allowance for unfunded lending-related commitments at
period end |
|
1,480 |
|
|
1,410 |
|
|
1,394 |
|
|
1,245 |
|
|
1,243 |
|
1,480 |
|
|
1,243 |
|
Allowance for credit losses at period end |
|
$ |
161,901 |
|
|
$ |
159,622 |
|
|
$ |
154,164 |
|
|
$ |
151,001 |
|
|
$ |
144,645 |
|
$ |
161,901 |
|
|
$ |
144,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge-offs (recoveries) by category as a
percentage of its own respective
category’s average: |
|
|
|
Commercial |
|
0.85 |
% |
|
0.01 |
% |
|
0.33 |
% |
|
0.16 |
% |
|
0.09 |
% |
0.44 |
% |
|
0.11 |
% |
Commercial real estate |
|
0.00 |
|
|
0.19 |
|
|
(0.07 |
) |
|
0.00 |
|
|
(0.14 |
) |
0.10 |
|
|
(0.09 |
) |
Home equity |
|
0.47 |
|
|
0.02 |
|
|
0.43 |
|
|
0.28 |
|
|
0.29 |
|
0.25 |
|
|
0.22 |
|
Residential real estate |
|
0.06 |
|
|
(0.01 |
) |
|
0.10 |
|
|
(0.06 |
) |
|
(0.64 |
) |
0.03 |
|
|
(0.20 |
) |
Premium finance receivables - commercial |
|
0.55 |
|
|
0.23 |
|
|
0.16 |
|
|
0.19 |
|
|
0.34 |
|
0.40 |
|
|
0.51 |
|
Premium finance receivables - life insurance |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
Consumer and other |
|
0.30 |
|
|
0.16 |
|
|
0.30 |
|
|
0.23 |
|
|
1.21 |
|
0.23 |
|
|
0.76 |
|
Total loans, net of unearned income |
|
0.36 |
% |
|
0.09 |
% |
|
0.12 |
% |
|
0.08 |
% |
|
0.02 |
% |
0.23 |
% |
|
0.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs as a percentage of the provision for
credit losses |
|
90.68 |
% |
|
48.37 |
% |
|
68.82 |
% |
|
42.27 |
% |
|
21.80 |
% |
77.92 |
% |
|
58.51 |
% |
Loans at period-end |
|
$ |
25,304,659 |
|
|
$ |
24,214,629 |
|
|
$ |
23,820,691 |
|
|
$ |
23,123,951 |
|
|
$ |
22,610,560 |
|
|
|
|
Allowance for loan losses as a percentage of loans at
period end |
|
0.63 |
% |
|
0.65 |
% |
|
0.64 |
% |
|
0.65 |
% |
|
0.63 |
% |
|
|
|
Allowance for credit losses as a percentage of loans at
period end |
|
0.64 |
|
|
0.66 |
|
|
0.65 |
|
|
0.65 |
|
|
0.64 |
|
|
|
|
Provision for credit losses by component for
the periods presented:
|
|
Three Months Ended |
Six Months Ended |
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
June 30, |
|
June 30, |
(Dollars in thousands) |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
2019 |
|
2018 |
Provision for loan losses |
|
$ |
24,510 |
|
|
$ |
10,608 |
|
|
$ |
10,251 |
|
|
$ |
11,040 |
|
|
$ |
5,043 |
|
$ |
35,118 |
|
|
$ |
13,415 |
|
Provision for unfunded lending-related commitments |
|
70 |
|
|
16 |
|
|
150 |
|
|
2 |
|
|
— |
|
86 |
|
|
(26 |
) |
Provision for credit losses |
|
$ |
24,580 |
|
|
$ |
10,624 |
|
|
$ |
10,401 |
|
|
$ |
11,042 |
|
|
$ |
5,043 |
|
$ |
35,204 |
|
|
$ |
13,389 |
|
TABLE 12: ALLOWANCE BY LOAN
PORTFOLIO
The table below summarizes the calculation of
allowance for loan losses for the Company’s core loan portfolio and
consumer, niche and purchased loan portfolio, as of June 30,
2019 and March 31, 2019.
|
As of June 30, 2019 |
As of March 31, 2019 |
(Dollars in thousands) |
Recorded
Investment |
|
Calculated
Allowance |
|
% of its
category’s balance |
Recorded
Investment |
|
Calculated
Allowance |
|
% of its
category’s balance |
Commercial: (1) |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
4,529,952 |
|
|
$ |
49,451 |
|
|
1.09 |
% |
$ |
4,460,202 |
|
|
$ |
46,436 |
|
|
1.04 |
% |
Asset-based lending |
1,066,231 |
|
|
9,335 |
|
|
0.88 |
|
1,037,632 |
|
|
8,868 |
|
|
0.85 |
|
Tax exempt |
489,524 |
|
|
2,808 |
|
|
0.57 |
|
514,789 |
|
|
3,255 |
|
|
0.63 |
|
Leases |
674,251 |
|
|
1,879 |
|
|
0.28 |
|
615,015 |
|
|
1,675 |
|
|
0.27 |
|
Commercial real estate: (1) |
|
|
|
|
|
|
|
|
|
|
Residential construction |
39,633 |
|
|
797 |
|
|
2.01 |
|
38,986 |
|
|
879 |
|
|
2.25 |
|
Commercial construction |
792,782 |
|
|
8,523 |
|
|
1.08 |
|
759,826 |
|
|
8,240 |
|
|
1.08 |
|
Land |
138,255 |
|
|
4,193 |
|
|
3.03 |
|
146,654 |
|
|
4,194 |
|
|
2.86 |
|
Office |
925,150 |
|
|
9,778 |
|
|
1.06 |
|
891,365 |
|
|
6,266 |
|
|
0.70 |
|
Industrial |
921,116 |
|
|
6,589 |
|
|
0.72 |
|
931,343 |
|
|
6,532 |
|
|
0.70 |
|
Retail |
930,594 |
|
|
6,515 |
|
|
0.70 |
|
863,435 |
|
|
6,065 |
|
|
0.70 |
|
Multi-family |
1,184,025 |
|
|
11,983 |
|
|
1.01 |
|
1,073,431 |
|
|
10,874 |
|
|
1.01 |
|
Mixed use and other |
1,944,182 |
|
|
14,800 |
|
|
0.76 |
|
1,931,079 |
|
|
14,641 |
|
|
0.76 |
|
Home equity (1) |
489,813 |
|
|
3,595 |
|
|
0.73 |
|
500,636 |
|
|
8,584 |
|
|
1.71 |
|
Residential real estate (1) |
1,089,496 |
|
|
8,042 |
|
|
0.74 |
|
1,027,586 |
|
|
7,524 |
|
|
0.73 |
|
Total core loan portfolio |
$ |
15,215,004 |
|
|
$ |
138,288 |
|
|
0.91 |
% |
$ |
14,791,979 |
|
|
$ |
134,033 |
|
|
0.91 |
% |
Commercial: |
|
|
|
|
|
|
|
|
|
|
Franchise |
$ |
891,481 |
|
|
$ |
8,255 |
|
|
0.93 |
% |
$ |
834,911 |
|
|
$ |
11,975 |
|
|
1.43 |
% |
Mortgage warehouse lines of credit |
275,170 |
|
|
2,195 |
|
|
0.80 |
|
174,284 |
|
|
1,399 |
|
|
0.80 |
|
Community Advantage - homeowner associations |
192,056 |
|
|
481 |
|
|
0.25 |
|
185,488 |
|
|
465 |
|
|
0.25 |
|
Aircraft |
11,305 |
|
|
9 |
|
|
0.08 |
|
11,491 |
|
|
15 |
|
|
0.13 |
|
Purchased commercial loans (2) |
140,804 |
|
|
480 |
|
|
0.34 |
|
160,379 |
|
|
550 |
|
|
0.34 |
|
Purchased commercial real estate (2) |
400,507 |
|
|
92 |
|
|
0.02 |
|
337,386 |
|
|
159 |
|
|
0.05 |
|
Purchased home equity (2) |
37,557 |
|
|
36 |
|
|
0.10 |
|
27,812 |
|
|
43 |
|
|
0.15 |
|
Purchased residential real estate (2) |
28,682 |
|
|
104 |
|
|
0.36 |
|
25,938 |
|
|
106 |
|
|
0.41 |
|
Premium finance receivables |
|
|
|
|
|
|
|
|
|
|
U.S. commercial insurance loans |
2,914,625 |
|
|
6,789 |
|
|
0.23 |
|
2,620,703 |
|
|
6,251 |
|
|
0.24 |
|
Canada commercial insurance loans (2) |
453,798 |
|
|
725 |
|
|
0.16 |
|
368,085 |
|
|
592 |
|
|
0.16 |
|
Life insurance loans (1) |
4,487,921 |
|
|
1,426 |
|
|
0.03 |
|
4,389,599 |
|
|
1,376 |
|
|
0.03 |
|
Purchased life insurance loans (2) |
146,557 |
|
|
— |
|
|
— |
|
165,770 |
|
|
— |
|
|
— |
|
Consumer and other (1) |
105,966 |
|
|
1,538 |
|
|
1.45 |
|
117,561 |
|
|
1,246 |
|
|
1.06 |
|
Purchased consumer and other (2) |
3,226 |
|
|
3 |
|
|
0.09 |
|
3,243 |
|
|
2 |
|
|
0.06 |
|
Total consumer, niche and purchased loan
portfolio |
$ |
10,089,655 |
|
|
$ |
22,133 |
|
|
0.22 |
% |
$ |
9,422,650 |
|
|
$ |
24,179 |
|
|
0.26 |
% |
Total loans, net of unearned income |
$ |
25,304,659 |
|
|
$ |
160,421 |
|
|
0.63 |
% |
$ |
24,214,629 |
|
|
$ |
158,212 |
|
|
0.65 |
% |
- Excludes purchased loans reported in accordance with ASC
310-20 and ASC 310-30.
- Purchased loans represent loans reported in accordance with
ASC 310-20 and ASC 310-30.
TABLE 13: LOAN PORTFOLIO
AGING
|
|
|
|
90+ days |
|
60-89 |
|
30-59 |
|
|
|
|
As of June 30, 2019 |
|
|
|
and still |
|
days past |
|
days past |
|
|
|
|
(Dollars in thousands) |
|
Nonaccrual |
|
accruing |
|
due |
|
due |
|
Current |
|
Total Loans |
Loan Balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial (1) |
|
$ |
47,604 |
|
|
$ |
1,939 |
|
|
$ |
5,283 |
|
|
$ |
16,102 |
|
|
$ |
8,199,846 |
|
|
$ |
8,270,774 |
|
Commercial real estate (1) |
|
20,875 |
|
|
5,124 |
|
|
11,199 |
|
|
72,987 |
|
|
7,166,059 |
|
|
7,276,244 |
|
Home equity |
|
8,489 |
|
|
— |
|
|
321 |
|
|
2,155 |
|
|
516,405 |
|
|
527,370 |
|
Residential real estate (1) |
|
14,236 |
|
|
1,867 |
|
|
1,306 |
|
|
1,832 |
|
|
1,098,937 |
|
|
1,118,178 |
|
Premium finance receivables - commercial |
|
13,833 |
|
|
6,940 |
|
|
17,977 |
|
|
16,138 |
|
|
3,313,535 |
|
|
3,368,423 |
|
Premium finance receivables - life insurance (1) |
|
590 |
|
|
— |
|
|
18,580 |
|
|
19,673 |
|
|
4,595,635 |
|
|
4,634,478 |
|
Consumer and other (1) |
|
220 |
|
|
235 |
|
|
242 |
|
|
227 |
|
|
108,268 |
|
|
109,192 |
|
Total loans, net of unearned income |
|
$ |
105,847 |
|
|
$ |
16,105 |
|
|
$ |
54,908 |
|
|
$ |
129,114 |
|
|
$ |
24,998,685 |
|
|
$ |
25,304,659 |
|
Aging as a % of Loan Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial (1) |
|
0.6 |
% |
|
— |
% |
|
0.1 |
% |
|
0.2 |
% |
|
99.1 |
% |
|
100.0 |
% |
Commercial real estate (1) |
|
0.3 |
|
|
0.1 |
|
|
0.2 |
|
|
1.0 |
|
|
98.4 |
|
|
100.0 |
|
Home equity |
|
1.6 |
|
|
— |
|
|
0.1 |
|
|
0.4 |
|
|
97.9 |
|
|
100.0 |
|
Residential real estate (1) |
|
1.3 |
|
|
0.2 |
|
|
0.1 |
|
|
0.2 |
|
|
98.2 |
|
|
100.0 |
|
Premium finance receivables - commercial |
|
0.4 |
|
|
0.2 |
|
|
0.5 |
|
|
0.5 |
|
|
98.4 |
|
|
100.0 |
|
Premium finance receivables - life insurance (1) |
|
— |
|
|
— |
|
|
0.4 |
|
|
0.4 |
|
|
99.2 |
|
|
100.0 |
|
Consumer and other (1) |
|
0.2 |
|
|
0.2 |
|
|
0.2 |
|
|
0.2 |
|
|
99.2 |
|
|
100.0 |
|
Total loans, net of unearned income |
|
0.4 |
% |
|
0.1 |
% |
|
0.2 |
% |
|
0.5 |
% |
|
98.8 |
% |
|
100.0 |
% |
- 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 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 |
|
Aging as a % of Loan Balance: |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
— |
|
|
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) |
|
— |
|
|
— |
|
|
0.1 |
|
|
0.8 |
|
|
99.1 |
|
|
100.0 |
|
Consumer and other (1) |
|
0.3 |
|
|
0.2 |
|
|
— |
|
|
0.3 |
|
|
99.2 |
|
|
100.0 |
|
Total loans, net of unearned income |
|
0.5 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
0.7 |
% |
|
98.6 |
% |
|
100.0 |
% |
TABLE 14: NON-PERFORMING ASSETS AND TROUBLED DEBT
RESTRUCTURINGS ("TDRs")
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in thousands) |
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
Loans past due greater than 90 days and still accruing
(1): |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
488 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,122 |
|
|
$ |
— |
|
Commercial real estate |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Home equity |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential real estate |
— |
|
|
30 |
|
|
— |
|
|
— |
|
|
— |
|
Premium finance receivables - commercial |
6,940 |
|
|
6,558 |
|
|
7,799 |
|
|
7,028 |
|
|
5,159 |
|
Premium finance receivables - life insurance |
— |
|
|
168 |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
172 |
|
|
218 |
|
|
109 |
|
|
233 |
|
|
224 |
|
Total loans past due greater than 90 days and still accruing |
7,600 |
|
|
6,974 |
|
|
7,908 |
|
|
12,383 |
|
|
5,383 |
|
Non-accrual loans (2): |
|
|
|
|
|
|
|
|
|
Commercial |
47,604 |
|
|
55,792 |
|
|
50,984 |
|
|
58,587 |
|
|
18,388 |
|
Commercial real estate |
20,875 |
|
|
15,933 |
|
|
19,129 |
|
|
17,515 |
|
|
19,195 |
|
Home equity |
8,489 |
|
|
7,885 |
|
|
7,147 |
|
|
8,523 |
|
|
9,096 |
|
Residential real estate |
14,236 |
|
|
15,879 |
|
|
16,383 |
|
|
16,062 |
|
|
15,825 |
|
Premium finance receivables - commercial |
13,833 |
|
|
14,797 |
|
|
11,335 |
|
|
13,802 |
|
|
14,832 |
|
Premium finance receivables - life insurance |
590 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
220 |
|
|
326 |
|
|
348 |
|
|
355 |
|
|
563 |
|
Total non-accrual loans |
105,847 |
|
|
110,612 |
|
|
105,326 |
|
|
114,844 |
|
|
77,899 |
|
Total non-performing loans: |
|
|
|
|
|
|
|
|
|
Commercial |
48,092 |
|
|
55,792 |
|
|
50,984 |
|
|
63,709 |
|
|
18,388 |
|
Commercial real estate |
20,875 |
|
|
15,933 |
|
|
19,129 |
|
|
17,515 |
|
|
19,195 |
|
Home equity |
8,489 |
|
|
7,885 |
|
|
7,147 |
|
|
8,523 |
|
|
9,096 |
|
Residential real estate |
14,236 |
|
|
15,909 |
|
|
16,383 |
|
|
16,062 |
|
|
15,825 |
|
Premium finance receivables - commercial |
20,773 |
|
|
21,355 |
|
|
19,134 |
|
|
20,830 |
|
|
19,991 |
|
Premium finance receivables - life insurance |
590 |
|
|
168 |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
392 |
|
|
544 |
|
|
457 |
|
|
588 |
|
|
787 |
|
Total non-performing loans |
$ |
113,447 |
|
|
$ |
117,586 |
|
|
$ |
113,234 |
|
|
$ |
127,227 |
|
|
$ |
83,282 |
|
Other real estate owned |
9,920 |
|
|
9,154 |
|
|
11,968 |
|
|
14,924 |
|
|
18,925 |
|
Other real estate owned - from acquisitions |
9,917 |
|
|
12,366 |
|
|
12,852 |
|
|
13,379 |
|
|
16,406 |
|
Other repossessed assets |
263 |
|
|
270 |
|
|
280 |
|
|
294 |
|
|
305 |
|
Total non-performing assets |
$ |
133,547 |
|
|
$ |
139,376 |
|
|
$ |
138,334 |
|
|
$ |
155,824 |
|
|
$ |
118,918 |
|
TDRs performing under the contractual terms of the loan
agreement |
$ |
45,862 |
|
|
$ |
48,305 |
|
|
$ |
33,281 |
|
|
$ |
31,487 |
|
|
$ |
57,249 |
|
Total non-performing loans by category as a percent of its
own respective category’s period-end balance: |
|
|
|
|
|
|
|
|
|
Commercial |
0.58 |
% |
|
0.70 |
% |
|
0.65 |
% |
|
0.85 |
% |
|
0.25 |
% |
Commercial real estate |
0.29 |
|
|
0.23 |
|
|
0.28 |
|
|
0.26 |
|
|
0.29 |
|
Home equity |
1.61 |
|
|
1.49 |
|
|
1.29 |
|
|
1.47 |
|
|
1.53 |
|
Residential real estate |
1.27 |
|
|
1.51 |
|
|
1.63 |
|
|
1.74 |
|
|
1.77 |
|
Premium finance receivables - commercial |
0.62 |
|
|
0.71 |
|
|
0.67 |
|
|
0.72 |
|
|
0.71 |
|
Premium finance receivables - life insurance |
0.01 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
0.36 |
|
|
0.45 |
|
|
0.38 |
|
|
0.51 |
|
|
0.65 |
|
Total loans, net of unearned income |
0.45 |
% |
|
0.49 |
% |
|
0.48 |
% |
|
0.55 |
% |
|
0.37 |
% |
Total non-performing assets as a percentage of total
assets |
0.40 |
% |
|
0.43 |
% |
|
0.44 |
% |
|
0.52 |
% |
|
0.40 |
% |
Allowance for loan losses as a percentage of total
non-performing loans |
141.41 |
% |
|
134.55 |
% |
|
134.92 |
% |
|
117.71 |
% |
|
172.19 |
% |
- Loans past due greater than 90 days and still accruing
interest included TDRs totaling $5.1 million as of September 30,
2018. As of June 30, 2019, March 31, 2019, December 31,
2018 and June 30, 2018, no TDRs were past due greater than 90 days
and still accruing interest.
- Non-accrual loans included TDRs totaling $30.1 million,
$40.1 million, $32.8 million, $34.7 million and $8.1 million as of
June 30, 2019, March 31, 2019, December 31, 2018,
September 30, 2018 and June 30, 2018, respectively.
Non-performing Loans Rollforward, excluding PCI
loans:
|
Three Months Ended |
Six Months Ended |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
June 30, |
|
June 30, |
(Dollars in thousands) |
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
2019 |
|
2018 |
Balance at beginning of period |
$ |
117,586 |
|
|
$ |
113,234 |
|
|
$ |
127,227 |
|
|
$ |
83,282 |
|
|
$ |
89,690 |
|
$ |
113,234 |
|
|
$ |
90,162 |
|
Additions, net |
20,567 |
|
|
24,030 |
|
|
18,553 |
|
|
56,864 |
|
|
10,403 |
|
44,597 |
|
|
17,011 |
|
Return to performing status |
(47 |
) |
|
(14,077 |
) |
|
(6,155 |
) |
|
(3,782 |
) |
|
(759 |
) |
(14,124 |
) |
|
(4,512 |
) |
Payments received |
(5,438 |
) |
|
(4,024 |
) |
|
(16,437 |
) |
|
(6,212 |
) |
|
(4,589 |
) |
(9,462 |
) |
|
(7,158 |
) |
Transfer to OREO and other repossessed assets |
(1,486 |
) |
|
(82 |
) |
|
(970 |
) |
|
(659 |
) |
|
(3,528 |
) |
(1,568 |
) |
|
(5,509 |
) |
Charge-offs |
(16,817 |
) |
|
(3,992 |
) |
|
(7,161 |
) |
|
(3,108 |
) |
|
(1,968 |
) |
(20,809 |
) |
|
(5,523 |
) |
Net change for niche loans (1) |
(918 |
) |
|
2,497 |
|
|
(1,823 |
) |
|
842 |
|
|
(5,967 |
) |
1,579 |
|
|
(1,189 |
) |
Balance at end of period |
$ |
113,447 |
|
|
$ |
117,586 |
|
|
$ |
113,234 |
|
|
$ |
127,227 |
|
|
$ |
83,282 |
|
$ |
113,447 |
|
|
$ |
83,282 |
|
- This includes activity for premium finance receivables and
indirect consumer loans.
TDRs
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in thousands) |
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
Accruing TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
15,923 |
|
|
$ |
19,650 |
|
|
$ |
8,545 |
|
|
$ |
8,794 |
|
|
$ |
37,560 |
|
Commercial real estate |
12,646 |
|
|
14,123 |
|
|
13,895 |
|
|
14,160 |
|
|
15,086 |
|
Residential real estate and other |
17,293 |
|
|
14,532 |
|
|
10,841 |
|
|
8,533 |
|
|
4,603 |
|
Total accrual |
$ |
45,862 |
|
|
$ |
48,305 |
|
|
$ |
33,281 |
|
|
$ |
31,487 |
|
|
$ |
57,249 |
|
Non-accrual TDRs: (1) |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
21,850 |
|
|
$ |
34,390 |
|
|
$ |
27,774 |
|
|
$ |
30,452 |
|
|
$ |
1,671 |
|
Commercial real estate |
2,854 |
|
|
1,517 |
|
|
1,552 |
|
|
1,326 |
|
|
1,362 |
|
Residential real estate and other |
5,435 |
|
|
4,150 |
|
|
3,495 |
|
|
2,954 |
|
|
5,028 |
|
Total non-accrual |
$ |
30,139 |
|
|
$ |
40,057 |
|
|
$ |
32,821 |
|
|
$ |
34,732 |
|
|
$ |
8,061 |
|
Total TDRs: |
|
|
|
|
|
|
|
|
|
Commercial |
$ |
37,773 |
|
|
$ |
54,040 |
|
|
$ |
36,319 |
|
|
$ |
39,246 |
|
|
$ |
39,231 |
|
Commercial real estate |
15,500 |
|
|
15,640 |
|
|
15,447 |
|
|
15,486 |
|
|
16,448 |
|
Residential real estate and other |
22,728 |
|
|
18,682 |
|
|
14,336 |
|
|
11,487 |
|
|
9,631 |
|
Total TDRs |
$ |
76,001 |
|
|
$ |
88,362 |
|
|
$ |
66,102 |
|
|
$ |
66,219 |
|
|
$ |
65,310 |
|
- Included in total non-performing loans.
Other Real Estate Owned
|
Three Months Ended |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in thousands) |
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
Balance at beginning of period |
$ |
21,520 |
|
|
$ |
24,820 |
|
|
$ |
28,303 |
|
|
$ |
35,331 |
|
|
$ |
36,598 |
|
Disposals/resolved |
(2,397 |
) |
|
(2,758 |
) |
|
(3,848 |
) |
|
(7,291 |
) |
|
(4,557 |
) |
Transfers in at fair value, less costs to sell |
1,746 |
|
|
32 |
|
|
997 |
|
|
349 |
|
|
4,801 |
|
Additions from acquisition |
— |
|
|
— |
|
|
160 |
|
|
1,418 |
|
|
— |
|
Fair value adjustments |
(1,032 |
) |
|
(574 |
) |
|
(792 |
) |
|
(1,504 |
) |
|
(1,511 |
) |
Balance at end of period |
$ |
19,837 |
|
|
$ |
21,520 |
|
|
$ |
24,820 |
|
|
$ |
28,303 |
|
|
$ |
35,331 |
|
|
|
|
|
|
|
|
|
|
|
|
Period End |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
Balance by Property Type: |
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
Residential real estate |
$ |
1,312 |
|
|
$ |
3,037 |
|
|
$ |
3,446 |
|
|
$ |
3,735 |
|
|
$ |
5,155 |
|
Residential real estate development |
1,282 |
|
|
1,139 |
|
|
1,426 |
|
|
1,952 |
|
|
2,205 |
|
Commercial real estate |
17,243 |
|
|
17,344 |
|
|
19,948 |
|
|
22,616 |
|
|
27,971 |
|
Total |
$ |
19,837 |
|
|
$ |
21,520 |
|
|
$ |
24,820 |
|
|
$ |
28,303 |
|
|
$ |
35,331 |
|
TABLE 15: NON-INTEREST INCOME
|
Three Months Ended |
|
Q2 2019 compared to
Q1 2019 |
|
Q2 2019 compared to
Q2 2018 |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
(Dollars in thousands) |
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Brokerage |
$ |
4,764 |
|
|
$ |
4,516 |
|
|
$ |
4,997 |
|
|
$ |
5,579 |
|
|
$ |
5,784 |
|
|
$ |
248 |
|
|
5 |
% |
|
$ |
(1,020 |
) |
|
(18 |
)% |
Trust and asset management |
19,375 |
|
|
19,461 |
|
|
17,729 |
|
|
17,055 |
|
|
16,833 |
|
|
(86 |
) |
|
— |
|
|
2,542 |
|
|
15 |
|
Total wealth management |
$ |
24,139 |
|
|
$ |
23,977 |
|
|
$ |
22,726 |
|
|
$ |
22,634 |
|
|
$ |
22,617 |
|
|
$ |
162 |
|
|
1 |
% |
|
$ |
1,522 |
|
|
7 |
% |
Mortgage banking |
37,411 |
|
|
18,158 |
|
|
24,182 |
|
|
42,014 |
|
|
39,834 |
|
|
19,253 |
|
|
106 |
% |
|
(2,423 |
) |
|
(6 |
) |
Service charges on deposit accounts |
9,277 |
|
|
8,848 |
|
|
9,065 |
|
|
9,331 |
|
|
9,151 |
|
|
429 |
|
|
5 |
|
|
126 |
|
|
1 |
|
Gains (losses) on investment securities, net |
864 |
|
|
1,364 |
|
|
(2,649 |
) |
|
90 |
|
|
12 |
|
|
(500 |
) |
|
(37 |
) |
|
852 |
|
|
NM |
Fees from covered call options |
643 |
|
|
1,784 |
|
|
626 |
|
|
627 |
|
|
669 |
|
|
(1,141 |
) |
|
(64 |
) |
|
(26 |
) |
|
(4 |
) |
Trading (losses) gains, net |
(44 |
) |
|
(171 |
) |
|
(155 |
) |
|
(61 |
) |
|
124 |
|
|
127 |
|
|
(74 |
) |
|
(168 |
) |
|
NM |
Operating lease income, net |
11,733 |
|
|
10,796 |
|
|
10,882 |
|
|
9,132 |
|
|
8,746 |
|
|
937 |
|
|
9 |
|
|
2,987 |
|
|
34 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap fees |
3,224 |
|
|
2,831 |
|
|
2,602 |
|
|
2,359 |
|
|
3,829 |
|
|
393 |
|
|
14 |
|
|
(605 |
) |
|
(16 |
) |
BOLI |
1,149 |
|
|
1,591 |
|
|
(466 |
) |
|
3,190 |
|
|
1,544 |
|
|
(442 |
) |
|
(28 |
) |
|
(395 |
) |
|
NM |
Administrative services |
1,009 |
|
|
1,030 |
|
|
1,260 |
|
|
1,099 |
|
|
1,205 |
|
|
(21 |
) |
|
(2 |
) |
|
(196 |
) |
|
(16 |
) |
Foreign currency remeasurement gains (losses) |
113 |
|
|
464 |
|
|
(1,149 |
) |
|
348 |
|
|
(544 |
) |
|
(351 |
) |
|
(76 |
) |
|
657 |
|
|
NM |
Early pay-offs of capital leases |
— |
|
|
5 |
|
|
3 |
|
|
11 |
|
|
554 |
|
|
(5 |
) |
|
(100 |
) |
|
(554 |
) |
|
(100 |
) |
Miscellaneous |
8,640 |
|
|
10,980 |
|
|
8,381 |
|
|
9,156 |
|
|
7,492 |
|
|
(2,340 |
) |
|
(21 |
) |
|
1,148 |
|
|
15 |
|
Total Other |
$ |
14,135 |
|
|
$ |
16,901 |
|
|
$ |
10,631 |
|
|
$ |
16,163 |
|
|
$ |
14,080 |
|
|
$ |
(2,766 |
) |
|
(16 |
)% |
|
$ |
55 |
|
|
— |
% |
Total Non-Interest Income |
$ |
98,158 |
|
|
$ |
81,657 |
|
|
$ |
75,308 |
|
|
$ |
99,930 |
|
|
$ |
95,233 |
|
|
$ |
16,501 |
|
|
20 |
% |
|
$ |
2,925 |
|
|
3 |
% |
NM - Not meaningful.
|
|
Six Months Ended |
|
|
|
|
|
|
June 30, |
|
June 30, |
|
$ |
|
% |
(Dollars in thousands) |
|
2019 |
|
2018 |
|
Change |
|
Change |
Brokerage |
|
$ |
9,280 |
|
|
$ |
11,815 |
|
|
$ |
(2,535 |
) |
|
(21 |
)% |
Trust and asset management |
|
38,836 |
|
|
33,788 |
|
|
5,048 |
|
|
15 |
|
Total wealth management |
|
48,116 |
|
|
45,603 |
|
|
2,513 |
|
|
6 |
|
Mortgage banking |
|
55,569 |
|
|
70,794 |
|
|
(15,225 |
) |
|
(22 |
) |
Service charges on deposit accounts |
|
18,125 |
|
|
18,008 |
|
|
117 |
|
|
1 |
|
Gains on investment securities, net |
|
2,228 |
|
|
(339 |
) |
|
2,567 |
|
|
NM |
Fees from covered call options |
|
2,427 |
|
|
2,266 |
|
|
161 |
|
|
7 |
|
Trading (losses) gains, net |
|
(215 |
) |
|
227 |
|
|
(442 |
) |
|
NM |
Operating lease income, net |
|
22,529 |
|
|
18,437 |
|
|
4,092 |
|
|
22 |
|
Other: |
|
|
|
|
|
|
|
|
Interest rate swap fees |
|
6,055 |
|
|
6,066 |
|
|
(11 |
) |
|
— |
|
BOLI |
|
2,740 |
|
|
2,258 |
|
|
482 |
|
|
21 |
|
Administrative services |
|
2,039 |
|
|
2,266 |
|
|
(227 |
) |
|
(10 |
) |
Foreign currency remeasurement gain (loss) |
|
577 |
|
|
(872 |
) |
|
1,449 |
|
|
NM |
Early pay-offs of leases |
|
5 |
|
|
587 |
|
|
(582 |
) |
|
(99 |
) |
Miscellaneous |
|
19,620 |
|
|
15,611 |
|
|
4,009 |
|
|
26 |
|
Total Other |
|
31,036 |
|
|
25,916 |
|
|
5,120 |
|
|
20 |
|
Total Non-Interest Income |
|
$ |
179,815 |
|
|
$ |
180,912 |
|
|
$ |
(1,097 |
) |
|
(1 |
)% |
NM - Not meaningful.
TABLE 16: MORTGAGE BANKING
REVENUE
|
Three Months Ended |
Six Months Ended |
(Dollars in thousands) |
June 30,
2019 |
|
March 31,
2019 |
|
December 31,
2018 |
|
September 30,
2018 |
|
June 30,
2018 |
June 30,
2019 |
|
June 30,
2018 |
Originations: |
|
|
|
|
|
|
|
|
|
|
|
|
Retail originations |
$ |
669,510 |
|
|
$ |
365,602 |
|
|
$ |
463,196 |
|
|
$ |
642,213 |
|
|
$ |
769,279 |
|
$ |
1,035,112 |
|
|
$ |
1,309,190 |
|
Correspondent originations |
182,966 |
|
|
148,100 |
|
|
289,101 |
|
|
310,446 |
|
|
122,986 |
|
331,066 |
|
|
249,450 |
|
Veterans First originations |
301,324 |
|
|
164,762 |
|
|
175,483 |
|
|
199,774 |
|
|
204,108 |
|
466,086 |
|
|
316,585 |
|
Total originations for sale (A) |
$ |
1,153,800 |
|
|
$ |
678,464 |
|
|
$ |
927,780 |
|
|
$ |
1,152,433 |
|
|
$ |
1,096,373 |
|
$ |
1,832,264 |
|
|
$ |
1,875,225 |
|
Originations for investment |
106,237 |
|
|
93,689 |
|
|
93,275 |
|
|
54,172 |
|
|
68,234 |
|
199,926 |
|
|
111,483 |
|
Total originations |
$ |
1,260,037 |
|
|
$ |
772,153 |
|
|
$ |
1,021,055 |
|
|
$ |
1,206,605 |
|
|
$ |
1,164,607 |
|
$ |
2,032,190 |
|
|
$ |
1,986,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases as a percentage of originations for sale |
63 |
% |
|
67 |
% |
|
71 |
% |
|
76 |
% |
|
80 |
% |
64 |
% |
|
77 |
% |
Refinances as a percentage of originations for sale |
37 |
|
|
33 |
|
|
29 |
|
|
24 |
|
|
20 |
|
36 |
|
|
23 |
|
Total |
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Production Margin: |
|
|
|
|
|
|
|
|
|
|
|
|
Production revenue (B) (1) |
$ |
29,895 |
|
|
$ |
16,606 |
|
|
$ |
18,657 |
|
|
$ |
25,253 |
|
|
$ |
27,814 |
|
$ |
46,501 |
|
|
$ |
48,340 |
|
Production margin (B / A) |
2.59 |
% |
|
2.45 |
% |
|
2.01 |
% |
|
2.19 |
% |
|
2.54 |
% |
2.54 |
% |
|
2.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Servicing: |
|
|
|
|
|
|
|
|
|
|
|
|
Loans serviced for others (C) |
$ |
7,515,186 |
|
|
$ |
7,014,269 |
|
|
$ |
6,545,870 |
|
|
$ |
5,904,300 |
|
|
$ |
5,228,699 |
|
|
|
|
MSRs, at fair value (D) |
72,850 |
|
|
71,022 |
|
|
75,183 |
|
|
74,530 |
|
|
63,194 |
|
|
|
|
Percentage of MSRs to loans serviced for others (D / C) |
0.97 |
% |
|
1.01 |
% |
|
1.15 |
% |
|
1.26 |
% |
|
1.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Mortgage Banking Revenue: |
|
|
|
Production revenue |
$ |
29,895 |
|
|
$ |
16,606 |
|
|
$ |
18,657 |
|
|
$ |
25,253 |
|
|
$ |
27,814 |
|
$ |
46,501 |
|
|
$ |
48,340 |
|
MSR - current period capitalization |
9,802 |
|
|
6,580 |
|
|
9,683 |
|
|
11,340 |
|
|
7,889 |
|
16,382 |
|
|
12,048 |
|
MSR - collection of expected cash flows - paydowns |
(457 |
) |
|
(505 |
) |
|
(496 |
) |
|
(689 |
) |
|
(639 |
) |
(962 |
) |
|
(1,082 |
) |
MSR - collection of expected cash flows - payoffs |
(3,619 |
) |
|
(1,492 |
) |
|
(896 |
) |
|
(392 |
) |
|
(725 |
) |
(5,111 |
) |
|
(1,484 |
) |
MSR - changes in fair value model assumptions |
(4,305 |
) |
|
(8,744 |
) |
|
(7,638 |
) |
|
1,077 |
|
|
2,097 |
|
(13,049 |
) |
|
6,230 |
|
Gain on derivative contract held as an economic hedge, net |
920 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
920 |
|
|
— |
|
MSR valuation adjustment, net of gain on derivative contract
held as an economic hedge |
(3,385 |
) |
|
(8,744 |
) |
|
(7,638 |
) |
|
1,077 |
|
|
2,097 |
|
(12,129 |
) |
|
6,230 |
|
Servicing income |
5,460 |
|
|
5,460 |
|
|
4,917 |
|
|
3,942 |
|
|
3,505 |
|
10,920 |
|
|
6,410 |
|
Other |
(285 |
) |
|
253 |
|
|
(45 |
) |
|
1,483 |
|
|
(107 |
) |
(32 |
) |
|
332 |
|
Total mortgage banking revenue |
$ |
37,411 |
|
|
$ |
18,158 |
|
|
$ |
24,182 |
|
|
$ |
42,014 |
|
|
$ |
39,834 |
|
$ |
55,569 |
|
|
$ |
70,794 |
|
- 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.
TABLE 17: NON-INTEREST EXPENSE
|
Three Months Ended |
|
Q2 2019 compared to
Q1 2019 |
|
Q2 2019 compared to
Q2 2018 |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|
(Dollars in thousands) |
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
$ Change |
|
% Change |
|
$ Change |
|
% Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries |
$ |
75,360 |
|
|
$ |
74,037 |
|
|
$ |
67,708 |
|
|
$ |
69,893 |
|
|
$ |
66,976 |
|
|
$ |
1,323 |
|
|
2 |
% |
|
$ |
8,384 |
|
|
13 |
% |
Commissions and incentive compensation |
36,486 |
|
|
31,599 |
|
|
33,656 |
|
|
34,046 |
|
|
35,907 |
|
|
4,887 |
|
|
15 |
|
|
579 |
|
|
2 |
|
Benefits |
21,886 |
|
|
20,087 |
|
|
20,747 |
|
|
19,916 |
|
|
18,792 |
|
|
1,799 |
|
|
9 |
|
|
3,094 |
|
|
16 |
|
Total salaries and employee benefits |
133,732 |
|
|
125,723 |
|
|
122,111 |
|
|
123,855 |
|
|
121,675 |
|
|
8,009 |
|
|
6 |
|
|
12,057 |
|
|
10 |
|
Equipment |
12,759 |
|
|
11,770 |
|
|
11,523 |
|
|
10,827 |
|
|
10,527 |
|
|
989 |
|
|
8 |
|
|
2,232 |
|
|
21 |
|
Operating lease equipment depreciation |
8,768 |
|
|
8,319 |
|
|
8,462 |
|
|
7,370 |
|
|
6,940 |
|
|
449 |
|
|
5 |
|
|
1,828 |
|
|
26 |
|
Occupancy, net |
15,921 |
|
|
16,245 |
|
|
15,980 |
|
|
14,404 |
|
|
13,663 |
|
|
(324 |
) |
|
(2 |
) |
|
2,258 |
|
|
17 |
|
Data processing |
6,204 |
|
|
7,525 |
|
|
8,447 |
|
|
9,335 |
|
|
8,752 |
|
|
(1,321 |
) |
|
(18 |
) |
|
(2,548 |
) |
|
(29 |
) |
Advertising and marketing |
12,845 |
|
|
9,858 |
|
|
9,414 |
|
|
11,120 |
|
|
11,782 |
|
|
2,987 |
|
|
30 |
|
|
1,063 |
|
|
9 |
|
Professional fees |
6,228 |
|
|
5,556 |
|
|
9,259 |
|
|
9,914 |
|
|
6,484 |
|
|
672 |
|
|
12 |
|
|
(256 |
) |
|
(4 |
) |
Amortization of other intangible assets |
2,957 |
|
|
2,942 |
|
|
1,407 |
|
|
1,163 |
|
|
997 |
|
|
15 |
|
|
1 |
|
|
1,960 |
|
|
NM |
FDIC insurance |
4,127 |
|
|
3,576 |
|
|
4,044 |
|
|
4,205 |
|
|
4,598 |
|
|
551 |
|
|
15 |
|
|
(471 |
) |
|
(10 |
) |
OREO expense, net |
1,290 |
|
|
632 |
|
|
1,618 |
|
|
596 |
|
|
980 |
|
|
658 |
|
|
NM |
|
310 |
|
|
32 |
|
Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
749 |
|
|
718 |
|
|
779 |
|
|
1,059 |
|
|
1,174 |
|
|
31 |
|
|
4 |
|
|
(425 |
) |
|
(36 |
) |
Postage |
2,606 |
|
|
2,450 |
|
|
2,047 |
|
|
2,205 |
|
|
2,567 |
|
|
156 |
|
|
6 |
|
|
39 |
|
|
2 |
|
Miscellaneous |
21,421 |
|
|
19,060 |
|
|
16,242 |
|
|
17,584 |
|
|
16,630 |
|
|
2,361 |
|
|
12 |
|
|
4,791 |
|
|
29 |
|
Total other |
24,776 |
|
|
22,228 |
|
|
19,068 |
|
|
20,848 |
|
|
20,371 |
|
|
2,548 |
|
|
11 |
|
|
4,405 |
|
|
22 |
|
Total Non-Interest Expense |
$ |
229,607 |
|
|
$ |
214,374 |
|
|
$ |
211,333 |
|
|
$ |
213,637 |
|
|
$ |
206,769 |
|
|
$ |
15,233 |
|
|
7 |
% |
|
$ |
22,838 |
|
|
11 |
% |
NM - Not meaningful.
|
|
Six Months Ended |
|
|
|
|
|
June 30, |
|
June 30, |
$ |
|
% |
(Dollars in thousands) |
|
2019 |
|
2018 |
Change |
|
Change |
Salaries and employee benefits: |
|
|
|
|
|
|
|
Salaries |
|
$ |
149,397 |
|
|
$ |
128,962 |
|
$ |
20,435 |
|
|
16 |
% |
Commissions and incentive compensation |
|
68,085 |
|
|
67,856 |
|
229 |
|
|
— |
|
Benefits |
|
41,973 |
|
|
37,293 |
|
4,680 |
|
|
13 |
|
Total salaries and employee benefits |
|
259,455 |
|
|
234,111 |
|
25,344 |
|
|
11 |
|
Equipment |
|
24,529 |
|
|
20,599 |
|
3,930 |
|
|
19 |
|
Operating lease equipment depreciation |
|
17,087 |
|
|
13,473 |
|
3,614 |
|
|
27 |
|
Occupancy, net |
|
32,166 |
|
|
27,430 |
|
4,736 |
|
|
17 |
|
Data processing |
|
13,729 |
|
|
17,245 |
|
(3,516 |
) |
|
(20 |
) |
Advertising and marketing |
|
22,703 |
|
|
20,606 |
|
2,097 |
|
|
10 |
|
Professional fees |
|
11,784 |
|
|
13,133 |
|
(1,349 |
) |
|
(10 |
) |
Amortization of other intangible assets |
|
5,899 |
|
|
2,001 |
|
3,898 |
|
|
NM |
|
|
FDIC insurance |
|
7,703 |
|
|
8,960 |
|
(1,257 |
) |
|
(14 |
) |
OREO expense, net |
|
1,922 |
|
|
3,906 |
|
(1,984 |
) |
|
(51 |
) |
Other: |
|
|
|
|
|
|
|
Commissions - 3rd party brokers |
|
1,467 |
|
|
2,426 |
|
(959 |
) |
|
(40 |
) |
Postage |
|
5,056 |
|
|
4,433 |
|
623 |
|
|
14 |
|
Miscellaneous |
|
40,481 |
|
|
32,795 |
|
7,686 |
|
|
23 |
|
Total other |
|
47,004 |
|
|
39,654 |
|
7,350 |
|
|
19 |
|
Total Non-Interest Expense |
|
$ |
443,981 |
|
|
$ |
401,118 |
|
$ |
42,863 |
|
|
11 |
% |
NM - Not meaningful.
TABLE 18: SUPPLEMENTAL NON-GAAP 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.
|
Three Months Ended |
Six Months Ended |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
June 30, |
|
June 30, |
(Dollars and shares in thousands) |
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
2019 |
|
2018 |
Reconciliation of Non-GAAP Net Interest Margin and
Efficiency Ratio: |
|
|
|
(A) Interest Income (GAAP) |
$ |
346,814 |
|
|
$ |
333,970 |
|
|
$ |
320,596 |
|
|
$ |
304,962 |
|
|
$ |
284,047 |
|
$ |
680,784 |
|
|
$ |
545,252 |
|
Taxable-equivalent adjustment: |
|
|
|
|
|
|
|
|
|
|
|
|
- Loans |
1,031 |
|
|
1,034 |
|
|
980 |
|
|
941 |
|
|
812 |
|
2,065 |
|
|
1,482 |
|
- Liquidity Management Assets |
568 |
|
|
565 |
|
|
586 |
|
|
575 |
|
|
566 |
|
1,133 |
|
|
1,097 |
|
- Other Earning Assets |
1 |
|
|
2 |
|
|
4 |
|
|
3 |
|
|
1 |
|
3 |
|
|
4 |
|
(B) Interest Income (non-GAAP) |
$ |
348,414 |
|
|
$ |
335,571 |
|
|
$ |
322,166 |
|
|
$ |
306,481 |
|
|
$ |
285,426 |
|
$ |
683,985 |
|
|
$ |
547,835 |
|
(C) Interest Expense (GAAP) |
$ |
80,612 |
|
|
$ |
71,984 |
|
|
$ |
66,508 |
|
|
$ |
57,399 |
|
|
$ |
45,877 |
|
$ |
152,596 |
|
|
$ |
82,000 |
|
(D) Net Interest Income (GAAP) (A minus C) |
$ |
266,202 |
|
|
$ |
261,986 |
|
|
$ |
254,088 |
|
|
$ |
247,563 |
|
|
$ |
238,170 |
|
$ |
528,188 |
|
|
$ |
463,252 |
|
(E) Net Interest Income (non-GAAP) (B minus
C) |
$ |
267,802 |
|
|
$ |
263,587 |
|
|
$ |
255,658 |
|
|
$ |
249,082 |
|
|
$ |
239,549 |
|
$ |
531,389 |
|
|
$ |
465,835 |
|
Net interest margin (GAAP) |
3.62 |
% |
|
3.70 |
% |
|
3.61 |
% |
|
3.59 |
% |
|
3.61 |
% |
3.66 |
% |
|
3.58 |
% |
Net interest margin, fully taxable-equivalent
(non-GAAP) |
3.64 |
% |
|
3.72 |
% |
|
3.63 |
% |
|
3.61 |
% |
|
3.63 |
% |
3.68 |
% |
|
3.60 |
% |
(F) Non-interest income |
$ |
98,158 |
|
|
$ |
81,657 |
|
|
$ |
75,308 |
|
|
$ |
99,930 |
|
|
$ |
95,233 |
|
$ |
179,815 |
|
|
$ |
180,912 |
|
(G) Gains (losses) on investment securities, net |
864 |
|
|
1,364 |
|
|
(2,649 |
) |
|
90 |
|
|
12 |
|
2,228 |
|
|
(339 |
) |
(H) Non-interest expense |
229,607 |
|
|
214,374 |
|
|
211,333 |
|
|
213,637 |
|
|
206,769 |
|
443,981 |
|
|
401,118 |
|
Efficiency ratio (H/(D+F-G)) |
63.17 |
% |
|
62.63 |
% |
|
63.65 |
% |
|
61.50 |
% |
|
62.02 |
% |
62.91 |
% |
|
62.24 |
% |
Efficiency ratio (non-GAAP) (H/(E+F-G)) |
62.89 |
% |
|
62.34 |
% |
|
63.35 |
% |
|
61.23 |
% |
|
61.76 |
% |
62.62 |
% |
|
61.99 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Tangible Common Equity
Ratio: |
|
|
|
Total shareholders’ equity |
$ |
3,446,950 |
|
|
$ |
3,371,972 |
|
|
$ |
3,267,570 |
|
|
$ |
3,179,822 |
|
|
$ |
3,106,871 |
|
|
|
|
Less: Non-convertible preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
|
|
Less: Intangible assets |
(631,499 |
) |
|
(620,224 |
) |
|
(622,565 |
) |
|
(564,938 |
) |
|
(531,371 |
) |
|
|
|
(I) Total tangible common shareholders’ equity |
$ |
2,690,451 |
|
|
$ |
2,626,748 |
|
|
$ |
2,520,005 |
|
|
$ |
2,489,884 |
|
|
$ |
2,450,500 |
|
|
|
|
(J) Total assets |
$ |
33,641,769 |
|
|
$ |
32,358,621 |
|
|
$ |
31,244,849 |
|
|
$ |
30,142,731 |
|
|
$ |
29,464,588 |
|
|
|
|
Less: Intangible assets |
(631,499 |
) |
|
(620,224 |
) |
|
(622,565 |
) |
|
(564,938 |
) |
|
(531,371 |
) |
|
|
|
(K) Total tangible assets |
$ |
33,010,270 |
|
|
$ |
31,738,397 |
|
|
$ |
30,622,284 |
|
|
$ |
29,577,793 |
|
|
$ |
28,933,217 |
|
|
|
|
Common equity to assets ratio (GAAP) (L/J) |
9.9 |
% |
|
10.0 |
% |
|
10.1 |
% |
|
10.1 |
% |
|
10.1 |
% |
|
|
|
Tangible common equity ratio (non-GAAP) (I/K) |
8.2 |
% |
|
8.3 |
% |
|
8.2 |
% |
|
8.4 |
% |
|
8.5 |
% |
|
|
|
|
Three Months Ended |
Six Months Ended |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
June 30, |
|
June 30, |
(Dollars and shares in thousands) |
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
2019 |
|
2018 |
Reconciliation of Non-GAAP Tangible Book Value per Common
Share: |
|
|
|
Total shareholders’ equity |
$ |
3,446,950 |
|
|
$ |
3,371,972 |
|
|
$ |
3,267,570 |
|
|
$ |
3,179,822 |
|
|
$ |
3,106,871 |
|
|
|
|
Less: Preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
|
|
(L) Total common equity |
$ |
3,321,950 |
|
|
$ |
3,246,972 |
|
|
$ |
3,142,570 |
|
|
$ |
3,054,822 |
|
|
$ |
2,981,871 |
|
|
|
|
(M) Actual common shares outstanding |
56,668 |
|
|
56,639 |
|
|
56,408 |
|
|
56,377 |
|
|
56,329 |
|
|
|
|
Book value per common share (L/M) |
$ |
58.62 |
|
|
$ |
57.33 |
|
|
$ |
55.71 |
|
|
$ |
54.19 |
|
|
$ |
52.94 |
|
|
|
|
Tangible book value per common share (non-GAAP)
(I/M) |
$ |
47.48 |
|
|
$ |
46.38 |
|
|
$ |
44.67 |
|
|
$ |
44.16 |
|
|
$ |
43.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Return on Average Tangible
Common Equity: |
|
|
|
(N) Net income applicable to common shares |
$ |
79,416 |
|
|
$ |
87,096 |
|
|
$ |
77,607 |
|
|
$ |
89,898 |
|
|
$ |
87,530 |
|
$ |
166,512 |
|
|
$ |
167,461 |
|
Add: Intangible asset amortization |
2,957 |
|
|
2,942 |
|
|
1,407 |
|
|
1,163 |
|
|
997 |
|
5,899 |
|
|
2,001 |
|
Less: Tax effect of intangible asset amortization |
(771 |
) |
|
(731 |
) |
|
(366 |
) |
|
(292 |
) |
|
(263 |
) |
(1,502 |
) |
|
(506 |
) |
After-tax intangible asset amortization |
2,186 |
|
|
2,211 |
|
|
1,041 |
|
|
871 |
|
|
734 |
|
4,397 |
|
|
1,495 |
|
(O) Tangible net income applicable to common shares (non-GAAP) |
$ |
81,602 |
|
|
$ |
89,307 |
|
|
$ |
78,648 |
|
|
$ |
90,769 |
|
|
$ |
88,264 |
|
$ |
170,909 |
|
|
$ |
168,956 |
|
Total average shareholders' equity |
$ |
3,414,340 |
|
|
$ |
3,309,078 |
|
|
$ |
3,200,654 |
|
|
$ |
3,131,943 |
|
|
$ |
3,064,154 |
|
$ |
3,362,000 |
|
|
$ |
3,030,062 |
|
Less: Average preferred stock |
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
|
(125,000 |
) |
(125,000 |
) |
|
(125,000 |
) |
(P) Total average common shareholders' equity |
$ |
3,289,340 |
|
|
$ |
3,184,078 |
|
|
$ |
3,075,654 |
|
|
$ |
3,006,943 |
|
|
$ |
2,939,154 |
|
$ |
3,237,000 |
|
|
$ |
2,905,062 |
|
Less: Average intangible assets |
(624,794 |
) |
|
(622,240 |
) |
|
(574,757 |
) |
|
(547,552 |
) |
|
(533,496 |
) |
(623,524 |
) |
|
(535,077 |
) |
(Q) Total average tangible common shareholders’ equity
(non-GAAP) |
$ |
2,664,546 |
|
|
$ |
2,561,838 |
|
|
$ |
2,500,897 |
|
|
$ |
2,459,391 |
|
|
$ |
2,405,658 |
|
$ |
2,613,476 |
|
|
$ |
2,369,985 |
|
Return on average common equity, annualized
(N/P) |
9.68 |
% |
|
11.09 |
% |
|
10.01 |
% |
|
11.86 |
% |
|
11.94 |
% |
10.37 |
% |
|
11.62 |
% |
Return on average tangible common equity, annualized
(non-GAAP) (O/Q) |
12.28 |
% |
|
14.14 |
% |
|
12.48 |
% |
|
14.64 |
% |
|
14.72 |
% |
13.19 |
% |
|
14.38 |
% |
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, Waukegan, 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 1:00
p.m. (Central Time) on Tuesday, July 16, 2019 regarding second
quarter 2019 results. Individuals interested in listening should
call (877) 363-5049 and enter Conference ID #2183197. A
simultaneous audio-only webcast and replay of the conference call
as well as an accompanying slide presentation 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 second 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.
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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